As more stores evolve towards being food-forward, there are opportunities—and headwinds.
“This is a journey that this industry has been on for a long time, but I feel like we're at a pivotal moment in that evolution, where the world is changing,” said David Portalatin, senior vice president and food industry advisor at Circana, during a presentation at the 2025 NACS Leadership Forum.
Tobacco and fuel sales "are still really important businesses for you all, but the ability to contribute high gross margin in a relatively small box that meets the demands of today's business world requires leaning into food a little bit more,” he said.
And although inflationary pressures continue to impact discretionary spending, consumers are still looking for ways to treat themselves. “The good news is that food isn't discretionary. … I didn't get the new flat screen TV, but I can spend $5 to $10 on something in the store as a treat or a reward,” he said.
Portalatin highlighted how nostalgia-driven promotions have been very successful within the foodservice industry.
For example, the Barbie movie led to a significant increase in sales of pink everything, and Taco Bell's “decades” menu brought back favorites from previous years. Wendy's also saw success with its Krabby Patty collaboration, which resonated with customers who grew up watching Sponge Bob.
Overall, nostalgia-based promotions outperformed value-based promotions, with a higher transaction lift and success rate. This suggests that tapping into the blasts from the past can be a powerful marketing strategy for driving foodservice sales.
Specialty coffee and cold dispensed beverages are “in your wheelhouse,” said Portalatin, adding that as more people look to get “more out of” their drink of choice, innovating the beverage space is a key pathway to growth in 2025 and beyond.
Dirty sodas, for example, “are on fire right now,” he said. Convenience retailers like Curby’s Express Market in Lubbock, Texas, sell dirty sodas that shoppers can customize to their liking—Curby’s calls its offerings Twisters. If you haven't tried a dirty soda, it's typically a cold dispensed beverage mixed with a flavored syrup, coffee creamer or juice. C-store beverage bars tend to have the fixings customers need to create and customize their own dirty soda, or to try a concoction they saw on TikTok.
Capitalizing on energy, Curby’s also offers Zoomies beverages that are enhanced with energy powder and Red Bull Refreshers, which fuse the energy drink with fruit flavors. Curby’s also has an extensive cold brewed tea offer with 32 flavors and occasional LTOs. During hot summers in Texas, Curby’s can sell as many as 2,000 units of tea within 24 hours.
Curby’s recipe of success keeps customers coming back. Through its loyalty program the average customer visits Curby’s 6.5 times per week.
“Sometimes they just get a tea for the day, but a lot buy two teas for the day,” said Richard Cashion, COO at Curby’s. “We try to reward our loyal customer base and not just go after the promotional customer. It’s working for us, and we’re seeing great retention.”
The forecast for 2025, said Portalatin, is 1% growth in customer traffic. To get there, he suggests developing a value proposition beyond price point. “I'm not saying to abandon this. You know your customer, but there is opportunity to elevate that [food or beverage] offer into some more premium occasions,” he said.
Also, embracing digital and what that means for convenience. Portalatin noted that 18% of QSR orders are placed digitally, with most being made via mobile devices. While c-stores are closing the gap, they lag at 15% of orders being made digitally.
Digital engagement, as Curby’s has found, helps foster loyalty with targeted promotions and deals, whether through digital coupons or exclusive app-only promotions.
“Get on the train and play in that space. That’s an opportunity for growth,” said Portalatin.
If you’re looking for even more insights, trends, benchmarks and regional data that can help inform your foodservice strategy, plan to attend the NACS State of the Industry Summit.