How 3 Major Food and Beverage Executives View the State of C-Stores in 2024

The Convenience Store Channel Is Evolving — And Big Brands Are Paying Attention

Convenience stores have long been synonymous with quick fuel stops, cigarettes, and last-minute snack grabs. But the channel is undergoing a dramatic transformation, and the leaders who supply it are watching closely. At the Wall Street Journal's Global Food Forum, executives from major food and beverage brands including PepsiCo and Athletic Brewing gathered to weigh in on where convenience retail stands today — and where it's headed tomorrow. Their perspectives reveal a channel brimming with both opportunity and complexity.

Why Convenience Stores Matter More Than Ever

It would be easy to underestimate the convenience store channel. With roughly 150,000 c-stores operating across the United States alone, the sector generates hundreds of billions of dollars in annual sales and serves millions of customers every single day. For food and beverage brands, it represents one of the most dynamic and high-frequency retail touchpoints available.

Unlike grocery stores, where shoppers plan their visits around weekly needs, convenience store customers are often driven by impulse, urgency, and immediacy. That distinction makes the channel uniquely powerful for brands looking to drive trial, build loyalty, and capture spending in a spontaneous, real-time environment. It also means the pressure to be visible, relevant, and available at precisely the right moment is exceptionally high.

As consumer behavior continues to evolve in the post-pandemic landscape — with more remote workers, shifting commuter patterns, and a growing appetite for on-the-go meal solutions — the relevance of c-stores has only deepened. Executives at the forum made clear that convenience retail is no longer a secondary channel. For many brands, it is becoming a primary one.

Key Growth Opportunities Identified by Industry Leaders

Fresh Food and Foodservice Expansion

One of the most consistent themes among the executives at the WSJ Global Food Forum was the explosive potential of fresh food and foodservice within c-stores. Historically, the convenience channel lagged far behind quick-service restaurants and grocery stores when it came to offering quality prepared foods. That gap is rapidly closing.

Modern c-stores are investing heavily in expanded kitchen facilities, trained foodservice staff, and rotating menus designed to compete directly with fast food chains. For food and beverage brands, this shift opens meaningful doors. Manufacturers who can supply fresh ingredients, branded beverage pairings, or ready-to-eat meal components stand to benefit enormously as operators continue to elevate their foodservice programs.

Executives noted that today's convenience store customer expects more than a hot dog rolling on a metal rack. They want quality, variety, and transparency around ingredients — the kind of elevated experience that was once exclusive to specialty retailers and fast-casual dining concepts.

The Rise of Better-For-You and Functional Beverages

Athletic Brewing, the non-alcoholic craft beer company that has rapidly gained a following among health-conscious consumers, offered a particularly interesting lens through which to view c-store growth. The brand's leadership highlighted the surging demand for better-for-you beverages within convenience retail — a category that includes non-alcoholic options, functional drinks, enhanced hydration products, and low-sugar alternatives.

The days when a convenience store's beverage wall consisted almost entirely of traditional sodas and energy drinks are fading. Consumers increasingly want products that align with their wellness goals, and they want to find them without making a special trip to a health food store. The c-store channel, with its sheer reach and accessibility, is perfectly positioned to serve that demand — if operators and brands collaborate effectively to curate the right assortment.

PepsiCo, which has been aggressively diversifying its portfolio to include healthier options alongside its legacy brands, echoed this sentiment. The company's leaders emphasized that innovation in the better-for-you space is not just a consumer trend to monitor — it is a commercial imperative for any brand that wants to remain relevant in the convenience channel over the long term.

Digital Loyalty and Personalization

Technology is reshaping how convenience retailers connect with their customers, and the food and beverage brands that supply the channel are taking notice. Mobile loyalty apps, personalized promotions, and data-driven merchandising strategies are creating new avenues for brands to reach shoppers at the point of purchase and influence buying decisions in real time.

Executives at the forum pointed to digital loyalty programs as one of the most underutilized growth levers in the c-store space. When a retailer knows that a specific customer visits every morning for coffee, that data creates an opportunity — for the retailer and for the brand — to deliver targeted offers, introduce new products, and deepen engagement in highly personalized ways.

The Challenges That Keep C-Store Executives Up at Night

Despite the optimism around growth, the leaders at the Global Food Forum were candid about the headwinds facing the convenience channel. Labor shortages remain a persistent issue, particularly as operators try to expand foodservice operations that require more skilled and consistent staffing than a traditional c-store model demands.

Supply chain volatility, inflationary pressure on consumer spending, and intensifying competition from quick-service restaurants, dollar stores, and even online delivery platforms all present meaningful challenges. As convenience stores try to be all things to all people — fuel destination, meal provider, snack hub, and community touchpoint — the operational complexity of executing on that vision grows considerably.

There is also the question of space. C-stores are, by definition, small-format environments. As brands compete for shelf placement and brands compete to introduce new SKUs, the challenge of standing out in a crowded, physically constrained space becomes more acute with each passing year.

What Food and Beverage Brands Must Do to Win in C-Stores

The collective message from executives at the WSJ Global Food Forum was clear: winning in convenience retail requires more than simply showing up. Brands need to understand the channel's unique shopper psychology, collaborate closely with retail partners on category strategy, invest in packaging and formats tailored to on-the-go consumption, and continuously innovate around the trends — health, sustainability, premiumization — that are reshaping what convenience actually means to consumers.

The c-store channel is no longer a simple, predictable outlet. It is a dynamic, fast-moving arena where the brands that listen carefully, adapt quickly, and deliver genuine value for both the retailer and the end consumer will define the next era of convenience retail success.