By james art C-stores continue to play in the everyday shopping space.
7-Eleven, the largest C-store chain in the US, plans to open 600 large-format grocery stores in North America by the end of 2027.
Highlighted by CEO Joe DePinto in a recent investor presentation, these “New Standard” stores will offer expanded food options, beverages and self-service vending machines.
The move builds on 7-Eleven’s rollout of its Evolution store prototypes, which first debuted in Dallas in 2019. Those stores included Laredo Taco Company restaurants and a drive-thru. 7-Eleven acquired Laredo Taco Company Restaurants in 2018 and today has seven Evolution stores in the US
DePinto says the food-focused New Standard centers have already delivered an 11 percent return on invested capital, though it’s unclear how many are currently open. The plans are for 115 to be opened by the end of 2025.
7-Eleven is no stranger to getting guests on the go with a desire. It has offered its 7NOW app for many years, which allows users to order food delivery using third-party services such as DoorDash or Grubhub for example. It also provides free shipping through the 7NOW Gold Pass subscription.
In addition, the C-store chain is testing autonomous delivery. It teamed up with Serve Robotics to test its sidewalk delivery robots in Los Angeles in 2023 and previously tested autonomous delivery with robotic vehicle maker Nuro.
It’s also unclear how much autonomous delivery is currently happening for 7-Eleven, but it’s clear the company is eyeing the space, as various restaurant brands continue to do.
Navigational challenges
Despite the new store expansions, 7-Eleven faces challenges, especially in the US market. The company recently closed 444 underperforming stores, citing inflation. However, it is possible that a focus on improving food supply could help improve margins.
This may be the right strategy. According to research by Placer.ai, consumers continue to choose C-stores over other dining establishments.
The study found that from 2019 to 2023, the share of visits to convenience stores compared to other dining establishments increased from 24.2 percent to 27 percent
The relative share of visits to breakfast, coffee, bakery and dessert shops also increased slightly over the period. Meanwhile, the share of restaurant visits fell from 13.8% to 11.7%, and visits to fast food and quick service restaurants fell from 51.8% to 50.6%.
Several factors may be driving these statistics. Most restaurants temporarily closed their doors during the height of the pandemic, while C-stores remained open, allowing consumers to better familiarize themselves with food options away from the C-store home.
This comes as other C-store chains, such as Kwik Trip and Casey’s General Store, are also growing in the hot food space.
“Continued C-Store growth between 2021 and 2022, and again between 2022 and 2023, shows that many diners are now adopting C-Store food by choice, not just necessity. The rise of the breakfast, coffee, bakery and dessert category along with C-Stores over the past five years may also highlight the current appetite for affordable grab-and-go food options,” the study said.