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.