The convenience store world just isn't what it used to be. Honestly, if you walked into the NACS State of the Industry Summit 2025 expecting a victory lap because of record-breaking numbers, you probably left feeling a little bit uneasy.
Yes, the industry hit a massive milestone. In-store sales reached an all-time high of $335.5 billion in 2024 (the data we all sat through in Dallas this April). That's 22 consecutive years of record growth. But here is the kicker: expenses are climbing faster than a morning rush line. Operating costs jumped 5.2%, and when you look past the big shiny revenue numbers, the "cracks in the foundation" that industry vets like to whisper about are starting to show.
What the NACS State of the Industry Summit 2025 actually told us
Basically, we are living in a "foodservice or bust" era. If you're still relying on Marlboros and mid-grade unleaded to keep the lights on, the 2025 data is a cold shower. Fuel revenue dropped nearly 6% because gas prices dipped, and while people are still driving, they aren't stopping as often.
Tobacco is even worse. It’s the only top-10 category where both sales and gross profit took a hit.
🔗 Read more: Shangri-La Asia Interim Report 2024 PDF: What Most People Get Wrong
The real hero? The kitchen. Foodservice now accounts for nearly 40% of in-store gross margin dollars. We’re talking about the stuff you actually make—hot sandwiches, those roller grill items people pretend to hate but buy anyway, and the increasingly fancy bean-to-cup coffee programs.
The profit paradox
It’s a weird time. You’ve got more money coming in than ever, yet the average operator is sweating. Why? Because labor is expensive and hard to find. At the summit, the big talk wasn't just about what we’re selling, but who is selling it.
- Credit card fees: Even though they dipped slightly, they still eat a massive chunk of the pie.
- The "Forgetfulness Curve": One speaker mentioned that if you don't keep training your staff, they lose the info within 40 hours.
- Flat transactions: People are spending more per trip, but the number of times they actually walk through the door is flat or slightly down.
Shrink, AI, and the "TikTok Economy"
You can't talk about the NACS State of the Industry Summit 2025 without mentioning the tech. But it wasn't just "AI is the future" corporate fluff. Retailers are actually using machine learning right now to stop people from stealing.
💡 You might also like: Private Credit News Today: Why the Golden Age is Getting a Reality Check
Shrink is a nightmare. One session showed how AI tools are spotting "refund abuse" and self-checkout tricks in real-time. It's not just about cameras; it's about the software noticing that one specific snack category keeps disappearing at 2:00 AM and alerting the manager before the weekly inventory count even happens.
The viral snack wall
Then there's the merchandising. Have you noticed those "As Seen on TikTok" sections popping up? The summit went deep on why Gen Z is obsessed with nostalgia and "intense" flavors. We’re talking spicy pickle cashews and buffalo ranch everything.
If a snack goes viral on Tuesday, you better have it on the shelf by Friday. If you wait for the monthly distributor report, you’ve already missed the wave.
📖 Related: Syrian Dinar to Dollar: Why Everyone Gets the Name (and the Rate) Wrong
The elephant in the room: THC and EV
Half the hallway conversations in Dallas were about stuff that isn't even fully legal everywhere yet. THC-infused beverages are a $380 million market that is projected to double. Some big players like Alimentation Couche-Tard are already testing the waters where they can.
As for EVs? The hype has finally settled into reality. It’s no longer a "the sky is falling" panic for gas stations. Instead, it’s a slow, steady maturity. Retailers are realizing that if a car takes 20 minutes to charge, that person needs a clean bathroom, a comfortable seat, and—you guessed it—better food.
Actionable steps for the 2026 outlook
If you're looking at your own store and wondering how to survive the next year based on these trends, stop focusing solely on the pump. The data is clear: the money is inside.
- Audit your foodservice variety. 28% of people buy something at a c-store and then leave to go buy food elsewhere because they don't like the selection. That’s a massive missed opportunity.
- Invest in "Barista in a Box." High-quality, automated coffee machines are winning because they require less labor than a full-service counter but offer better margins than a pot of burnt decaf.
- Watch the "Small Can" trend. Coca-Cola is pushing 7.5-ounce cans because they’re affordable. In an inflationary world, "mini" versions of treats are moving faster than the bulk stuff.
- Get your data together. You don't need a Silicon Valley budget, but you do need to know your "basket size." Are people buying a drink with their nicotine? If not, why?
The convenience industry is shifting from a "gas station with some snacks" to a "restaurant that happens to sell fuel." It’s a hard transition, and the NACS State of the Industry Summit 2025 proved that the winners are the ones who can handle the friction of change without losing their minds—or their margins.
Make sure your 2026 planning includes a deep dive into your loyalty data. If you aren't talking to your customers through an app or a rewards program, you're basically flying blind while your competitors are using GPS.