Foodservice: Double-digit growth, billion-dollar stakes for convenience retailers
2026 could be the year convenience stores’ contribution to the Canadian foodservice industry surpasses $4 billion. Customers seeking fully prepared foods and beverages for immediate consumption have driven double-digit growth in convenience stores over the past three years, according to the latest data from Ipsos Foodservice Monitor (FSM). This growth is not limited to quick beverage or snack occasions, but extends to breakfast, lunch and dinner.
Each spring, Ipsos releases its foodservice trends in the Vantage Report, and this year convenience stores are playing a heroic role in the story of “Adapt and Endure.” Consumers are coping with what Ipsos calls an “endurance economy.” As the name suggests, consumers are expected to remain financially pessimistic for the long haul, making it the “design brief of the decade.” The Vantage Report explores the most impactful ways consumers, operators and suppliers are adapting to drive growth and keep customers coming through the doors of foodservice establishments. Convenience is both driving and benefiting from these trends.
Boomers and zoomers
Foodservice stakeholders may be nervous when they hear consumers declare, “I should make more food at home and visit restaurants less.” Indeed, some Canadians have acted on those intentions or have had no other choice. And yet foodservice traffic and spending continue to eke out modest growth as boomers and zoomers (generation Z) pick up the slack.
Young consumers have long favoured c-store foodservice, and the channel is benefiting from their loyalty. Gen Z has led a trade-down behaviour, choosing convenience foodservice over quick-service restaurants (QSRs). Even middle-aged Canadians have caught on to this “hack.” Convenience stores’ ability to win share has been made possible by years spent developing foodservice offerings that are truly competitive with QSRs.
Convenience and connection
There is a lot to unpack in this trend, but the focus here is on how consumers are purchasing from convenience stores in new ways and for new reasons. A new standard for convenience in foodservice allows consumers to complete the shopping and decision-making process off-site via digital access. For 7% of customers, opportunities to influence purchases are happening in an app. For brands without proprietary apps, partnerships with third-party aggregators—and how those platforms represent the brand—are essential.
In a foodservice market where “I’m hungry” is no longer a sufficient reason to spend, growth is increasingly tied to emotional and social occasions. Consumers looking for an operator to help facilitate gatherings with friends and family are helping keep the industry afloat. In this climate of adaptation, they are also looking beyond the traditional restaurant dining room. Gen Z is the most likely to choose a convenience store to source food and beverages for social occasions, driving growth in the channel.
Deal-seeking and thrill-seeking
One of Ipsos’s more provocative thought leaders, Paul Acerbi, is known for declaring, “The affordability crisis is over!” That is only because the high cost of living has shifted from an acute crisis to a chronic condition. Price is now the deciding factor for many Canadians. Compared with QSRs, convenience stores are competitively priced for meals and have become a new “cheap and cheerful” option.
To save money and justify a visit, more foodservice customers are seeking deals—such as coupons, points, value menus or combos—or limited-time offers (LTOs). These, in turn, tap into another emotional driver: exploration.
Foodservice operators have been more effective in drawing customers out of the home by appealing to a desire to explore culture through cuisine and try something new—something restaurants often do better than a home-cooked meal. Even c-stores benefit from this trend, as more global flavours and novelty items are on offer. The combination of a deal or LTO tied to an exploratory menu item is particularly compelling to today’s customer.
Hot foods and cool beverages
Consumers are finding it easier to forgo out-of-home purchases for snacks, baked goods and brewed coffee—items they can more easily prepare at home. The best-performing foodservice items tend to be hot comfort-food classics. Convenience stores are seeing this trend drive sales of hot dogs, breakfast sandwiches and fried chicken sandwiches. At QSRs, cold sandwiches are not competing as well with packed lunches, but simple and affordable options such as egg salad and deli-meat sandwiches from convenience stores remain compelling.
Growing interest in cold beverages is not just about their suitability for pairing with entrées. The shift toward cold beverages and away from hot ones is a long-term trend occurring both within and across generations. Iced coffee, carbonated soft drinks, energy drinks and health-oriented beverages are all gaining share over hot coffee and tea. Convenience stores that serve younger consumers are on the front lines of these trends.
2026 is the time to invest
Foodservice customers are more open than ever to choosing convenience stores, but there is still room for more players. Currently, half of all convenience foodservice traffic goes to the top two chains. Gas station brands and independent operators are not capturing their share of this growth. Now is the time to consider investing in fresh foodservice solutions at your store.
