Convenience Stores Outpace Fast-Food Chains in Breakfast Sales
In a significant shift in consumer behavior, convenience stores are increasingly capturing breakfast customers who traditionally favored fast-food chains. Recent data from market research firm Circana reveals that visits to food-forward convenience stores surged by 9% in the three months ending in July, while fast-food breakfast traffic saw a modest increase of just 1%. This trend highlights a growing preference for convenience and quality among morning meal consumers.
The Changing Landscape of Breakfast Dining
For decades, fast-food giants like McDonald’s have dominated the breakfast market, enticing customers with quick service and unique menu items. However, a staggering 87% of breakfast foods consumed by Americans still come from their own homes, according to David Portalatin, Circana’s senior vice president and foodservice industry advisor. This statistic underscores the vast potential for both fast-food chains and convenience stores to capture a larger share of the breakfast market.
Before the COVID-19 pandemic, convenience stores began to emerge as formidable competitors in the breakfast arena. Regional players such as Wawa in the Northeast and Casey’s General Store in the Midwest have expanded their offerings and invested heavily in foodservice, adopting strategies that have historically been the domain of fast-food chains.
The Impact of the Pandemic
The pandemic initially disrupted this trend, as lockdowns and a shift to hybrid work models temporarily reversed the gains made by convenience stores. However, recent data indicates that these stores have regained their competitive edge. Portalatin notes that food-forward convenience stores are once again leading the charge in breakfast sales, capitalizing on changing consumer preferences.
Circana distinguishes food-forward convenience stores, such as Buc-ee’s and Sheetz, from the broader convenience store industry. Notably, 7-Eleven, the largest convenience store chain in the U.S., is planning to enhance its prepared food offerings, inspired by the success of its Japanese operations. Meanwhile, RaceTrac recently announced its acquisition of Potbelly for approximately $566 million, although the future direction of this partnership remains uncertain.
Fast-Food Chains Face Challenges
The fast-food breakfast segment is facing increasing challenges as consumers become more budget-conscious amid rising menu prices and a tight job market. Data from Revenue Management Solutions indicates that morning traffic to fast-food chains has declined every quarter for the past three years, with an 8.7% drop in visits during the second quarter of this year.
McDonald’s, which has long been a leader in the quick-service breakfast category, has felt the impact of this trend. CEO Chris Kempczinski acknowledged during a recent earnings call that breakfast is the most economically sensitive meal period, making it easier for consumers to skip breakfast or opt for home-cooked meals. The percentage of McDonald’s traffic attributed to breakfast has decreased from 33.5% in the first half of 2019 to 29.9% in the first half of 2025.
In an effort to boost breakfast sales, McDonald’s has introduced breakfast items into its Extra Value Meals, offering deals like a Sausage McMuffin with Egg, hash brown, and small coffee for $5. However, the fast-food giant is now looking to convenience stores for inspiration, examining successful strategies in late-night and early morning sales.
The Rise of the Convenience Store Meal
As demand for traditional convenience store items like gasoline, tobacco, and lottery tickets has waned, prepared foods have emerged as a lifeline for these establishments. The convenience store industry’s foodservice sales reached an impressive $121 billion in 2024, according to the National Association of Convenience Stores (NACS).
Convenience stores are strategically positioned to capture customers during peak commuting hours, making them an attractive option for breakfast and dinner. A recent survey by InTouch Insight revealed that 72% of consumers now view convenience stores as viable alternatives to fast-food chains, a significant increase from 56% just a year ago.
The success of convenience stores that focus on fresh food is evident. Wawa, for instance, has experienced an 11.5% growth in its customer base since 2022, while major fast-food chains like McDonald’s, Burger King, and Wendy’s have collectively seen a 3.5% decline in customers during the same period.
Consumer Preferences Shift
A survey conducted by InTouch Insight found that a majority of respondents had purchased made-to-order breakfast from a convenience store in the past three months. Notably, 48% of those surveyed indicated that their choice of breakfast from a convenience store replaced a potential visit to a fast-food restaurant.
While convenience store breakfast options may not always be cheaper than home-cooked meals, consumers perceive them as offering good value. Sarah Beckett, vice president of sales and marketing for InTouch Insight, noted that the variety of options available at convenience stores-ranging from coffee and energy drinks to yogurt smoothies-sets them apart from traditional fast-food chains.
Ultimately, the quality of food is a critical factor in consumer decision-making. Portalatin emphasized that while convenience stores benefit from a lower price point, the key differentiator will be the quality of the food they offer.
A Case Study: Casey’s General Store
Casey’s General Store, the third-largest convenience store chain in the U.S., exemplifies the success of this trend. The chain has reported a 5.6% growth in same-store sales for prepared food and beverages in the three months ending July 31. Its breakfast pizza, a unique offering topped with cheese, scrambled eggs, and various meats or vegetables, has garnered a dedicated following since its introduction in 2001.
Brady Caviness, a 33-year-old account executive from Minneapolis, shared his experience with Casey’s breakfast pizza, highlighting its appeal during his travels. When a Casey’s is not nearby, he resorts to fast-food options like McDonald’s or Dunkin’, illustrating the competition’s ongoing struggle to retain customers.
Conclusion
The breakfast landscape is undergoing a significant transformation as convenience stores increasingly capture market share from fast-food chains. With a focus on quality, variety, and convenience, these stores are redefining what consumers expect from their morning meals. As fast-food chains adapt to this changing environment, the competition for breakfast customers is likely to intensify, making it a pivotal battleground in the foodservice industry.
