CHICAGO, July 18, 2025 — A new study has underscored another challenge for Starbucks in its ongoing effort to reverse slumping traffic: Reversing a loss of younger customers to convenience stores.
A survey of more than 1,500 consumers revealed that Millennials and Gen Zers are now visiting c-stores as often as they frequent coffee shops like Starbucks. The attraction, according to the research, is not the lower prices charged by the retail outlets but the greater variety of beverages they offer.
Indeed, the price differential between c-stores and mainstream food-away-from-home concepts like quick-service restaurants (QSRs) is not a strong traffic driver for the retail outlets, the study found. A much more powerful draw is the convenience factor.
“Because of this, c-stores should continue to focus, at least initially, on convenience to compete with QSRs and beverage variety to compete against coffee shops,” concluded the study.
It was compiled by the research firm Datassentials for IFMA The Food Away from Home Association as a benefit for the association’s members. The aim was to provide a data-based plan for food manufacturers to increase sales within the c-store channel.
The report included a number of additional recommendations for achieving that end. Among the steps it advised:
--Encouraging c-store buyers to showcase food and beverage options throughout the establishments, since patrons tend to roam the stores rather than zero in on a particular station like the self-service coffee bar or soft drink fountain.
--Continuing to upgrade the quality of products available to c-stores, with a stretch goal of matching the caliber of foods and beverages found in fast-casual restaurants.
--Offering products that enable c-stores to fully capitalize on the boom in snacking.
--Encouraging c-store buyers to focus on boosting food and beverage sales from the customers who are already their most-frequent visitors. Squeezing more sales from those heavy users is easier and more lucrative than trying to coax a purchase out of an infrequent patron.
The c-store report is part of the ongoing CORG series of proprietary research conducted by the association for its members. It is available as a standard benefit to Tier 3 IFMA members. Others can purchase the data via the association’s online store.
Previous research installments have included an assessment of how GLP-1 weight-loss aids are affecting foodservice sales, and why consumers switch allegiances from one restaurant chain to another.
As Managing Editor for IFMA The Food Away from Home Association, Romeo is responsible for generating the group's news and feature content. He brings more than 40 years of experience in covering restaurants to the position.