Prime Highlight:
- Convenience stores are winning over breakfast customers with fresh, made-to-order meals and wider choices.
- Fast-food chains like McDonald’s are losing morning traffic as consumers seek more variety and value.
Key Facts:
- Morning visits to convenience stores rose 9% in the three months ending July, while fast-food chains saw just a 1% increase (Circana).
- 72% of consumers now see convenience stores as a real alternative to fast food, up from 45% two years ago (InTouch Insight).
Key Background:
Convenience stores across the United States are rapidly emerging as strong competitors to fast-food chains, particularly in the breakfast segment. Recent data shows that while morning meal traffic to fast-food outlets increased by just 1% in the three months ending July, food-forward convenience stores recorded a robust 9% growth during the same period, according to research firm Circana.
Prepared foods are now an important source of growth for convenience stores, as sales of fuel, tobacco, and lottery tickets have slowed down. Store chains such as Wawa, Sheetz, and Casey’s General Store are working on freshly made-to-order meals that are altering the perception of convenience stores as being a walk-in and walk-out place, as opposed to being a place of food.
McDonald’s and other fast-food brands have led the breakfast market for years, but they are now facing strong competition. Morning visits to McDonald’s accounted for 33.5% of its traffic in early 2019, but that share slipped to 29.9% in the first half of 2025, according to Placer.ai. Rising menu prices and tighter consumer budgets have also made breakfast the most vulnerable part of the day for fast-food chains, with many diners opting to eat at home or switch to alternatives.
Surveys reinforce this trend. Research conducted by InTouch Insight showed that 72 percent of consumers consider convenience stores as a true substitute to fast-food establishments, which is a steep improvement compared to 45 percent two years ago. Nearly half of respondents admitted that when they buy breakfast from a c-store, it often replaces a visit they would otherwise make to McDonald’s, Dunkin’, or Starbucks.
The appeal isn’t just about price. Customers prefer the broader selection afforded by the convenience stores, such as breakfast pizzas and sandwiches, coffee, smoothies, and fast food items like fruit bars or protein bars. Casey’s General Store, for instance, saw a 5.6% rise in sales of prepared foods and drinks in the last quarter, with its popular breakfast pizza driving much of the growth.
Experts believe that food quality will decide who comes out on top. As people look for both value and variety, convenience stores seem ready to claim a bigger share of the breakfast market, putting new pressure on fast-food chains.
