Convenience stores have become much more than fuel stops. They are now foodservice hubs, beverage destinations, and quick-serve competitors. Prepared food and beverages are central to that transformation. In 2024, foodservice accounted for 28.7 percent of in-store sales and nearly 40 percent of gross margins, making it the most profitable category in the channel. Beverages alone carried a 40 percent net margin and were included in almost half of all c-store trips.
This growth in higher-margin categories has been critical as operators look to offset thin fuel margins. Yet the same period has seen an alarming increase in operating costs. Industry data shows that direct store operating expenses rose 40 percent between 2021 and 2023. Repairs and maintenance climbed 38 percent, while utilities rose 16 percent. These increases, combined with rising labor costs and swipe fees, put enormous pressure on profitability.
For facilities leaders, this means their decisions directly influence whether c-stores can sustain growth in food and beverage while managing ballooning costs.
The Cost of Staying Reactive
Many portfolios remain stuck in a break-fix model, responding to emergencies instead of preventing them. The data shows why this approach is unsustainable.
The cycle of reactive work orders drives budget volatility and makes it nearly impossible for facilities directors to forecast costs accurately.
Downtime and Customer Loyalty
The financial impact is only part of the story. Downtime erodes customer loyalty in ways that are harder to quantify but just as damaging.
A coffee machine failure during the morning rush eliminates the highest-margin item in the store. A refrigeration outage compromises food safety and leads to immediate spoilage. An HVAC failure on a summer afternoon drives customers out of the store altogether. Each of these failures impacts not only the transaction that day but future visits.
Studies show that 82 percent of customers say store design and upkeep influence their decision to enter. Poorly maintained environments reduce foot traffic and weaken the effectiveness of marketing and loyalty programs. Facilities, therefore, are not just about keeping equipment running. They are about protecting the brand promise of a clean, consistent, and reliable shopping experience.
Overspend Hidden in Invoices
Another major challenge for c-store directors is the hidden cost of overspending on repairs. Invoices frequently contain inflated labor times, unnecessary parts markups, or duplicate charges. Portfolio analysis has shown that 10 to 15 percent of total invoice value is often wasted on overcharges.
One operator uncovered $2.6 million in savings over 12 months by actively auditing refrigeration and HVAC invoices before approval. Without technology to automate this process, most directors cannot catch these issues at scale.
Facilities as the Margin Lever
The takeaway is clear. Facilities management in c-stores is no longer just an operational function. It is one of the most powerful levers for protecting margins and enabling growth. Directors who lead with data and accountability are seeing results:
The Strategic Role of Facilities Leaders
C-stores are evolving rapidly, with foodservice, coffee, and beverage programs at the center of their growth. These categories drive more than 60 percent of in-store profit dollars. But they can only succeed if the equipment that supports them is reliable, efficient, and maintained with discipline.
For facilities directors, the question is no longer whether preventive maintenance is affordable. The real question is whether continuing to absorb the costs of reactive service, callbacks, and overcharges is sustainable. The data shows it is not.
Facilities leaders who adopt proactive strategies, enforce provider accountability, and leverage technology for visibility position themselves as strategic protectors of margin. They are not simply fixing equipment. They are enabling the future of convenience retail.
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