2025 C-Store Trends to Watch

AI, Loyalty Programs and Foodservice Take Centerstage After Turbulent 2024

As c-store owners turn the page on 2024, a year that some would like to forget, there is hope for a brighter 2025, driven by emerging trends like artificial intelligence (AI) integration, enhanced loyal programs, and a renewed focus on food offerings, some of the trends to watch.

Last year it was tough for many in the convenience store (c-store) industry so 2025 is a welcome sight.

“The past year has been stressful for many convenience retailers,” explained C-store Dive. “Inflation made customers more careful with their money. Economic pressures weighed on some major companies and pushed many smaller ones out of the industry entirely. The federal government promoted the use of electric vehicles, leaving c-stores concerned about their forecourts, where about 80 percent of the liquid fuel in the U.S. is sold.”

The National Association of Convenience Stores (NACS) magazine reported that through three quarters last year:

• Dollar sales at retail were down 2.4 percent year over year.
• Foodservice dollars were flat.
• Underlying customer traffic was down 4 percent.
• Customer trips were down a little more than 6 percent.
• Fuel gallons sold were down 3.5 percent.
  
  

2025, however, starts with inflation having cooled down and a new administration in Washington that is friendlier to the oil and gas industry.

“I think the industry is in much better shape than it was a couple months ago, just from a messaging standpoint and a feeling of ‘what’s the fuel market going to do?’” John Eichberger, executive director of the Transportation Energy Institute, told C-Store Dive.

Here’s a closer look at some of the c-store trends in 2025 that will help make 2024 a distant memory.

AI Has Arrived in the C-Store Industry

Artificial intelligence (AI), especially generative AI, was not only the story of 2024 but one of the bigger technological advancements in our lifetime.

“AI is the fastest-growing technology humans have ever seen—faster in its growth than the Internet, computers, iPhones or tablets ever were, said Brian Gray, managing director of Accenture, during an Education Session at the 2024 NACS Show,” reported NACS magazine.

Lauren Shanesy, an editor and writer at NACS, said in a January 2025 podcast that AI has various practical applications such as:

• Security
• Inventory management
• Customer service
• Administrative tasks such as drafting emails, briefs, and job descriptions
  
  

“Retailers who are using AI are finding ways to increase efficiency and streamline operations,” said Shanesy.

Shanesy said the 2024 NACS Show presented the ways AI is already being used in the c-store industry:

• Using camera analysis to monitor various activities such as tracking cars on the forecourt and analyzing conversion rates inside the store.
  
  
• AI camera analysis that monitors foodservice operations like the roller grill by tracking how long items have been there and alerting employees when they need to be changed or refilled, thereby reducing food waste.
  
  

“We’re seeing AI-powered inventory management solutions that provide real-time insights into stock levels, product placement and inventory trends, enhancing operational efficiency and reducing waste,” Sanjeev Satturu, chief information officer for Casey’s General Stores told Shanesy, also noting that there is a lot of opportunity to use AI for fuel pricing. “And AI video analytics can enhance security by analyzing video feeds to detect unusual behavior, unauthorized access or potential theft incidents.”

Reliance on AI comes with its own set of issues such as the risk of cyber attacks.

“AI is a wide-open thing, and as soon as you’re connected to the Internet, you put yourself at risk of being under a cyberattack,” said Satturu.

C-Stores to Re-evaluate Their Loyalty Strategies

Expect many c-store operators in 2025 to rethink and fine tune their loyalty strategies.

“Convenience retailers have spent the past several years investing in mobile rewards and loyalty platforms. But while customers typically like these programs once they’re enrolled, the industry as a whole continues to lag when it comes to loyalty participation,” reported C-Store Dive.

While the highest-performing quick service restaurants sign up an average of 110 new loyalty members per store each month, c-stores add only an average of 36 new members per location each month, according to C-Store Dive.

In 2025, c-stores will look to improve in-store experiences (vs. discounts) to attract more consumers to their loyalty programs.

“You have to give [customers] reasons to walk in the door, and it’s not through your loyalty program,”Kevin Farley, chief client officer for c-store consultancy W. Capra told C-Store Dive.

The key, according to industry sources, is for c-stores to emphasize their unique strengths such as foodservice programs, clean restrooms and unique product assortment.

Foodservice: New Flavor Profiles, Healthier Options and Bang for the Buck

Foodservice continues to be crucial to attracting new customers to c-stores and encouraging existing fuel customers to move from the forecourt to inside the store.

Shanesy highlighted three trends she sees for 2025:

• Flavor Profiles: The trend towards flavors such as hot honey, sweet and spicy, and tropical flavors, to name a few, will not only continue but foodservice programs will up their offerings with elevated or extra flavors such as “extra spicy” or “extra sour”. This trend will extend to the beverage center where customers want to enhance their drinks with flavored syrups, cream, fruit juice and other enhancements.
  
  
• Better-for-You Options: A new NACS consumer survey coming in 2025 suggests that 55 percent of Americans say they feel they should be eating healthier. C-stores can take advantage of this trend by offering such items as protein snacks and other items deemed healthier than normal “gas station fare.”
  
  
• More Bang for the Buck: Inflation may have eased a bit but American are still counting their pennies so c-stores should respond by offering more bang for their buck. These valued customers are willing to spend their dollars if they are getting good value for their money. Another way to look at this is that consumers are shifting their buying behavior from “cautious spending” to “intentional spending.” C-stores will want to tailor foodservice and other offerings to customers who are price sensitive and choosy. Revamped loyalty programs can also go a long way to reaching these valued customers.
  
  

Other C-Store Trends to Keep an Eye On in 2025

Besides AI, loyalty programs and food service, C-Store Dive says to keep an eye on these trends in 2025:

• Merger Mania: Smaller retailers will continue to find themselves as targets for consolidation, a trend that started with the pandemic as players without deeper pockets struggled to survive. Smaller retailers that do remain independent will have to differentiate themselves from others in their market.
  
  
• Trump Change: C-stores should expect less government-mandated shifts towards EV adoption with President-elect Donald Trump gearing up for his second term. C-stores will also be watching news on tariffs and the ripple effects of overall prices with c-stores looking for an opening to offer competitive products to frugal consumers.
  
  
• Couche-Tard Looms: Canadian giant Couche-Tard, which made a play for 7-Eleven’s parent company Seven & I last year, is expected to be a major player in the acquisition market.
  
  
• EV Charging Cools: With a Republican administration in charge the next four years, expect the EV Charging stampede to lessen a bit. C-stores may now focus more on making EV drivers feel welcome when charging and get them to do more than just sit in their vehicle while charging.
  
  
• Hybrid Foodservice Programs: Can’t decide between focusing on “grab-and-go” or “made-to-order”? That’s okay, because some c-stores will find a way to champion both approaches to reach more customers in 2025.
  
  
• A Zyn Moment:Tobacco has historically been a sales leader in the c-store market, but nicotine use in the U.S. has dropped over the years. New offerings, such as the just approved Zyn nicotine pouches for marketing and sale by the FDA, however, have driven sales to c-stores last year and this strong trend will continue in 2025.
  
  
• First-Party Data: C-stores will not only look for ways to generate first-party data – using email, SMS and other direct outreach – but figure out how to legally (and ethically) use it for things such as targeted advertising and curating the right product assortment inside the store.
  
  

PWM’s high-quality electronic signs and eye-catching profitboards can help c-store operators bring their customers not only to the forecourt, but inside their stores. Contact PWM today for more information.