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March 3, 2025
Convenience Stores Keen To Attract Gen Z, Millennial Customers: New Snacks, Gaming Apps Could Spark Loyalty
Convenience stores are about more than gassing (or charging) up nowadays, with deep and differentiated product lines — often private-label or partnered CPGs — driving an increasing proportion of margin. And part of the challenge in retaining consumer interest, at least for convenience stores, is ensuring that you’re remaining relevant with two key age cohorts: millennials and Gen Zers.
According to CSP, younger Americans are a key demographic for c-stores, and nothing was made plainer during a recent Convenience Retailing University session entitled “Turning Data into Strategy for QSRs and C-Stores.” Helmed by Donna Hood Crecca, principal of CSP sister research arm Technomic, and Billy Colemire, VP of marketing and brand at Idaho-based Stinker Stores, the session’s topics hinged around capturing loyalty and spend from Gen Zers and millennial consumers.
Gen Z, Millennials Looking for More Interesting, Healthier C-Store Offerings
During the discussion, Crecca indicated that zoomers and millennials were keen to pick up items that were health-focused — both in terms of physical or mental well-being — as well as for novelty and innovation.
“Respective to foodservice, they’re looking for a couple of key things: innovation and functionality,” Crecca said.
“They’re looking for things that can nourish them, give them energy, power them through their day. Things that contribute to health, whether it’s gut health or mental health,” she added.
That may not always be true (at least on the healthy eating side), however, as Colemire pointed to the existing winners (and winners-to-be) hitting his brand’s shelves — although novelty seemed to be an idea with real weight.
“We’ve really worked to put some sweet snacks in the cold case to complement those chicken tenders or that burger,” Colemire said. “We’ve private-labeled so many cheesecakes. We’re doing a lot of the sweeter stuff right now, and there’s a lot of opportunity in the savory side. I’m really excited — we have some potatoes coming in 2025, 2026.”
Innovation can also come in the form of simple ingredient additions or swaps, on the other hand. Crecca gestured toward the increasingly globalized taste palate emerging among younger Americans of all backgrounds.
“So, pulling in an interesting ingredient — turmeric or something in a smoothie or whatever you want to do,” she said. “That’s going to pique their interest. They’re looking for those types of innovation.”
Snacks Are a Convenience Store Staple, but There’s Nuance
Another assertion made by Crecca? That members of Gen Z were particularly fond of snacking, at all hours of the day.
“I like to think for Generation Z, snacking is a 24-hour daypart,” Crecca said.
“That’s how they live, so this is a channel that people go to for snacks, and we need to own it. We need to reinforce that we are the place for really good and tasty snacks, better-for-you snacks, indulgent snacks, whatever your snack desire is,” she added.
It wasn’t as simple as loading up the local convenience store with mountains of Doritos, Mountain Dew, and pizza slices, however. Competition from other fast-food restaurants and quick-service competitors was a pertinent factor in deciding how to make the snack play concerning hungry visitors.
“That’s another threat from the QSRs [quick service restaurants] because they’re starting to play in snack. Think about Subway’s footlong cookies, things like that,” Crecca suggested. “We need to play defense there and really innovate to continue to engage that younger consumer.”
For his part, Colemire agreed, saying that Stinker was zeroed in on the snack category as a focus area for its stores.
Gamification Drives Loyalty via Real-Time Rewards, Coupons, and Other Offers
During a separate Convenience Retailing University session detailed by CSP, the notion of cultivating deeper customer loyalty and ROI based on that loyalty was the topic du jour.
Underscoring the fact that nearly half (45%) of mobile gamers in the U.S. are 18 to 34 years old and that the average time spent on mobile gaming is 40 minutes a day, CSP first laid out the position of an industry skeptic.
Pervez Pir — president of retail at Loop Neighborhood Market in Fremont, California — exhibited reservations about the efficacy of gamification in terms of c-store strategy.
After rolling out a trial game in partnership with Mobivity, however, Pir changed his tune.
“As I was looking at the data, I started realizing I was missing the opportunity,” he said. “Return on investment was there. I started seeing the numbers.”
Pir stated that 38% of Loop app users also play the game, and those who do play the game engage in that behavior nearly four times a day. Additionally, 84% of Loop employees also play, and this allows them to speak to guests about the experience from a position of personal familiarity — an added bonus.
Mike Templeton, vice president of digital strategy at NexChapter, underlined the notion that gamification was a “game changer,” particularly given the stagnation of many loyalty programs. Real-time rewards are what players are looking for, and it’s up to c-store operators to deliver. BOGO deals, discounts on gasoline, free car washes, and other incentives show concrete results.
One catch: The game has to fit the brand. CSP cited successful examples ranging from Sheetz’s partnership with Fortnite to TXB’s spin-to-win game.
“Whatever your strategy is, you’re looking for opportunities to reinforce that, not to create something different or divergent for the consumers, but something that fits within the mechanics and the scheme and the way they think about your brand, whether that’s points fuel, food or otherwise,” said Templeton.
Discussion Questions
Can convenience stores offer meaningful differentiators beyond obvious necessities (coffee, gas) to drive spend as destinations, rather than stopovers?
How can convenience stores successfully capture the snack-loving guest’s attention as compared to restaurants or fast-food establishments, with the latter locations already being experienced in terms of distributing these products?
Are Gen Z and millennial consumers actually that integral to c-store success, or is this an overstated or oversimplified argument?
Poll
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Younger consumers are a snacking generation, but their choices are more sophisticated that the traditional high-sugar, low-nutrition options often found at mainstream convenience stores. They increasingly want wellbeing snacks, and they are very receptive to innovation and niche brands. Retailers like Pop Up Grocer deliver on this and are the modern convenience store for a new generation.
Any retailer (including C-stores) must understand their customers and deliver what they want. Otherwise, a competitor will. And realize that what younger generations want today will change as they mature. Do you keep up with these changes and ignore the generation behind them? Not a good strategy, which is why engaging with experts who understand demographics and the balance of attracting and keeping customers from different ages, backgrounds, etc., are more important than ever.
Two key insights…
a. Gen Z’ers are 24-hour snackers
b. Real-time rewards work best
While Gen Z and millennials are important consumer groups, their impact on c-store success may be overstated.
Most convenience stores are still dependent upon older demographics with established shopping habits and disposable income. It is also possible to overlook the diverse preferences and needs of all customers if we focus solely on younger customers.
It is essential that C-stores adopt a multigenerational marketing strategy that appeals to both younger and older consumers. The mix can include trendy, innovative products along with classic staples that appeal to all age groups.
Implementing a multigenerational marketing strategy might involve segmenting marketing campaigns to target specific age groups, ensuring that messaging resonates with each demographic.
Additionally, stores could offer loyalty programs that reward all generations, encouraging repeat visits from both younger and older customers.
Finally, leveraging digital platforms alongside traditional advertising can help reach a wider audience, catering to the preferences of different age groups.
C stores once had such a built-in advantage: Slurpees for the under 13’s, uncarded beer for those over….OK, OK, I’m kidding! – Sort of – but it’s no mystery that the decline in some of their core products, specifically cigarettes, combined with mini-marts at gas stations have stolen a lot of thunder from the segment; so they’re wise to experiment. Is this the way to go ? I don’t know (personally I’d like to see more of a shift to higher quality in prepared meals)…but I think there’s room for many ideas.
This change to include more better-for you choices has been happening for a number of years. Stores have been adding more fresh ready to eat choices, non-alcoholic like drinks, etc. I think the trend will continue for a long time.
Stores must engage with younger consumers to ensure growth as audience matures over time. This means looking carefully at their needs – what they want to buy and how they want to buy it. There have been times in recent years where convenience has been growing much faster than other areas of retail – but work needs to continue to meet these heights again.
There are some amazing C-store initiatives around the world. Zabka, for example, in Poland have pioneered staff free stores which match very much the desires of younger customers in terms of their interactions and desire for speed.
From what I’ve seen, Gen Z and millennial shoppers are crucial to c-store success, but it’s also more complex than just age. Looking at the evidence, these groups are actively reshaping c-store strategies toward healthier options and digital experiences. I was particularly struck by Loop Neighborhood Market’s results – they found 38% of their app users engage with their gamification features almost four times daily! And Technomic’s research confirms younger consumers are seeking functional foods that support both physical and mental wellbeing.
I think what makes these generations so important is how they’re signaling future market trends. While the focus on younger consumers is warranted, I believe successful c-stores need a balanced approach that considers demographic targeting alongside broader shifts toward digital engagement, health consciousness, and experiential retail. So no, I wouldn’t say their importance is overstated – it’s just more nuanced than simple age-based marketing might suggest.
Know thy customer, and good things will happen. Reaching Gen Z is a solid strategy; it is experiencing the fastest growth in spending power. Understanding them, who they are, and what they want, and when they can answer these questions, then they can develop campaigns to reach them and talk about what products they have for them. Just updating a campaign without changing the assortment won’t bring results.
Yes, c-stores can offer meaningful differentiators beyond obvious necessities. In our area, I look at Sheetz as a model for that. Larger store footprint, truly a QSR that serves gas, paces to sit, great app with made to order food and beverage options. Plenty of snacks, special set for non-candy innovations, cupcake, protein bars, etc. Their stores are hopping 24×7. But they also get the basics right, most of their footprints in our area are new which means clean, well lit, bathrooms are clean. The larger, more spacious footprint helps. Self-checkout options and self-ordering via kiosk.
All these elements cater to a pretty broad audience, not just millennials and Gen Z. I would say the above are great c-store practices regardless of audience. Their ad campaigns and social are on point and relevant.
You can be good doing the necessities, but great if you tie it all together and make it feel less transactional. The Sheetz, Wawas and a few others know this.
Burgers, chicken tenders, cheesecakes and “sweet stuff” sounds more like comfort food (aka junk food, aka mental health food?).
My kids both went to California colleges where healthy food options were the norm and whenever I stopped at gas stations near their schools the kids weren’t walking out with concoctions made of avocado, carrots, tomatoes and other California things. They were often walking out with some form of junk food.
I think the store layouts, product choices and method of delivering those choices are old and tired. And, like the rest of my colleagues, I believe it pays to understand the customer which requires more than projecting or imposing a belief onto them.
Newness and on trend products are key to driving interest, and the rewards/gamification serve to amplify my Gen Z kids choice in one restaurant or retailer over the other.
Here in the bay are there is a gas station convenience store that features vegan snacks only and they have a vegan food truck (Vegan Mob) on site. They seem to do good business and attracts their clientele. Depending on the demographics I think convenience stores can differentiate based on their food offering. Bucees being an extreme example of convenience store that grew into a destination
Yes. Convenience stores can provide meaningful differentiation with young consumers, but they have to be willing to learn from new generations and shift their same ol’ strategies from yesteryear. Convenience stores across the country seem to have the same footprint with little to no creativity. There’s 12 foot of salty snacks, 8 feet of candy bars, 4 feet of gum, etc. but it hasn’t changed in 10 years. Additionally, they are not listening in areas where Gen Z is present- Instagram, TikTok or other sources of food and beverage discovery.
Case in point is cottage cheese. This is not a typical snack item but was one of the hottest items last year due to overall healthy profile and popularity on TikTok. I checked in 10-12 different c-stores last year and none of them have a single sku but they carried 27 different varieties of chips and many items that do not appeal to Gen Z. I even asked 4-5 stores to carry the category, and not a store took me up on the request.
One way to address this generational opportunity is by merchandising in a way that is different and relevant to the healthy focused Gen Z customer. Macey’s in Salt Lake City has created a grab-n-go healthy snack island in their stores that appears to be a hit. It’s a fun little corner of the grocery store where you can find healthy, flavorful items for snackers on the go.
Convenience stores have an incredible opportunity waiting to be tapped, but only if they stop positioning themselves as just quick stops. To become real destinations, they need to offer more than gas and grab-and-go.
Imagine walking into a C-store and finding unique, globally inspired snacks or healthier options you actually get excited about. That’s how you stand out.