Convenience Stores Gain Ground on Fast-Food Chains in Breakfast Market

Convenience Stores Outpacing Fast-Food Chains in Breakfast Traffic

Convenience stores are steadily eroding the breakfast customer base traditionally held by fast-food restaurants. According to market research firm Circana, visits to food-forward convenience stores rose 9% in the three months ending July 2025, while fast-food restaurant morning traffic increased by only 1% during the same period.

Shifting Consumer Preferences and Market Dynamics

David Portalatin, senior vice president and foodservice industry advisor at Circana, highlighted that convenience stores have long been gaining share in the foodservice sector, particularly during the morning meal period. This trend is primarily driven by convenience stores that emphasize fresh, prepared foods, often referred to as “food-forward convenience stores.” Examples include regional chains such as Wawa in the Northeast and Casey’s General Store in the Midwest, which have expanded their foodservice offerings to compete more effectively with fast-food giants.

Despite decades of fast-food chains like McDonald’s investing heavily to attract breakfast diners with unique menu items and convenience, the majority of consumers—87% according to Portalatin—still consume breakfast from home. This leaves a significant market opportunity for both fast-food and convenience stores.

Fast-Food’s Breakfast Challenges

Fast-food chains have faced a sustained decline in breakfast visits over the past three years. Data from Revenue Management Solutions indicates an 8.7% drop in fast-food breakfast traffic in the second quarter of 2025 alone. McDonald’s, which dominates the quick-service breakfast segment, has seen its morning visit share fall from 33.5% in the first half of 2019 to 29.9% in the first half of 2025, according to Placer.ai.

McDonald’s CEO Chris Kempczinski attributed this decline to economic sensitivity in the breakfast daypart, noting that stressed consumers are more likely to skip breakfast or eat at home. In response, McDonald’s has introduced value-focused breakfast bundles aiming to boost traffic.

Convenience Stores Innovate and Attract

Convenience stores are increasingly viewed as strong competitors to fast-food chains for breakfast. The National Association of Convenience Stores (NACS) differentiates food-forward convenience stores such as Buc-ee’s and Sheetz from traditional c-stores, with more chains potentially adopting this model. For instance, 7-Eleven plans to expand its prepared foods business, inspired by its success in Japan, while RaceTrac recently acquired Potbelly for $566 million, signaling growth ambitions.

Prepared foods have become a critical revenue driver for convenience stores, compensating for declining sales in traditional categories like gasoline and tobacco. Industry data shows that 72% of consumers now consider convenience stores a genuine alternative to fast-food restaurants for meals, up significantly from 45% two years ago.

Consumer Appeal and Market Impact

Convenience stores often offer a broader range of options beyond traditional breakfast sandwiches, including energy drinks, protein shakes, and grab-and-go snacks. This variety, combined with perceived value, attracts cost-conscious consumers amid rising menu prices at fast-food chains.

For example, Wawa has grown its customer base by 11.5% since 2022, while major fast-food chains like McDonald’s, Burger King, and Wendy’s have collectively lost 3.5% of their customers over the same period, according to transaction analytics firm Indagari.

Surveys indicate nearly half of consumers who buy breakfast at convenience stores do so instead of visiting fast-food restaurants. However, experts emphasize that product quality remains the ultimate determinant of success in this competitive segment.

Casey’s General Store: A Regional Success Story

Casey’s General Store, the third-largest convenience store chain in the U.S., exemplifies the trend with its popular breakfast pizza, a cult favorite that has helped drive same-store sales growth of 5.6% in prepared foods and beverages in the three months ending July 31, 2025. Customers like Brady Caviness, an account executive from Minneapolis, choose Casey’s breakfast offerings when traveling, switching to fast-food options only when convenience stores are unavailable.

Conclusion

The breakfast market is evolving as convenience stores leverage fresh food innovation and consumer preferences for variety and value to gain share from fast-food chains. Fast-food operators are now looking to convenience stores for inspiration on menu development and customer engagement strategies as they seek to counteract declining breakfast traffic.