Business
Convenience stores are eating fast-food chains’ breakfast
A Wawa store is seen on May 29, 2024 in Washington, DC.
Kent Nishimura | Getty Images
Fast-food restaurants are losing breakfast customers to convenience stores.
Morning meal traffic to fast-food chains rose 1% in the three months ended in July, while visits to food-forward convenience stores climbed 9% in the same period, according to market research firm Circana.
“Over the long run, convenience stores have taken share, really at foodservice overall, but the morning meal has been their strong suit,” David Portalatin, Circana senior vice president and foodservice industry advisor, told CNBC, noting the trend has largely been driven by what the group calls “food-forward convenience stores.”
For decades, McDonald’s and its rivals have tried to lure consumers away from home to eat their early morning offerings, betting that convenience and unique items will win over diners. While fast-food chains have made some inroads, 87% of what consumers eat and drink in the morning comes from their own refrigerators or pantries, according to Portalatin. That leaves plenty of opportunity for fast-food chains — and anyone else who wants a slice of the breakfast pie.
FILE PHOTO: A McDonald’s Corp. McGriddle breakfast sandwich is displayed for a photograph in New York, U.S.
Daniel Acker | Bloomberg | Getty Images
Before the pandemic, fast-food chains started seeing a new rival for their breakfast customers: convenience stores. Regional chains like Wawa in the Northeast and Casey’s General Store in the Midwest were expanding their reach and investing in their foodservice options, taking pages from the fast-food companies’ own playbooks.
For a time, lockdowns and the shift to hybrid work reversed those market share gains. But in the three months ended in July, food-forward convenience stores once again gained the upper hand in the battle to serve consumers breakfast, according to Portalatin.
Circana separates food-forward convenience stores like Buc-ee’s and Sheetz from the broader industry, although more chains may soon fit under that umbrella. 7-Eleven, the biggest convenience, or c-store, in the U.S., is planning to invest more in its prepared foods business, inspired by the success of its Japanese business. C-store chain RaceTrac on Wednesday announced that it’s buying Potbelly for about $566 million, although it’s unclear what its plans for the sandwich chain include beyond expanding its footprint.
Fast-food’s breakfast breakdown
In recent years, more diners have been watching their budgets, conscious of rising menu prices and a tight job market.
Year-over-year morning traffic to fast-food chains has fallen every quarter for the last three years, according to data from Revenue Management Solutions, which advises restaurants on how to increase sales and profits. In the second quarter, fast-food breakfast visits fell 8.7%.
To see the struggles, look no further than McDonald’s, which dominates the quick-service breakfast category.
“… The breakfast daypart is the most economically sensitive daypart, because it’s the easiest daypart of a stressed consumer to either skip breakfast or choose to eat breakfast at home,” McDonald’s CEO Chris Kempczinski said on the company’s earnings call in late July. “And we, as well as the rest of the industry, are seeing that the breakfast daypart is absolutely the weakest daypart in the day.”
McDonald’s morning visits accounted for 33.5% of its traffic in the first half of 2019 but fell to 29.9% in the first half of 2025, according to Placer.ai data. To try to drum up traffic, the chain has included breakfast items in its new Extra Value Meals, including a deal for a Sausage McMuffin with Egg with a hash brown and a small coffee for $5.
To reverse breakfast’s slide, fast-food chains are taking hints from their competition. After years of convenience stores looking to fast-food chains for ideas on how to grow prepared food sales, from installing ordering kiosks to new menu items, the dynamic has flipped.
“[Quick-service restaurants] are looking at late-night sales and early morning sales, and they are directly looking at convenience stores and saying, ‘What is working? How can we bring that to our stores?'” National Association of Convenience Stores spokesperson Jeff Lenard told CNBC.
The rise of the c-store meal
Prepared foods have offered a lifeline for convenience stores as demand for gasoline, tobacco and lottery tickets has fallen over time. The industry’s overall foodservice sales reached $121 billion in 2024, according to data from the NACS.
Most customers visit the gas pump during the morning and evening rush hours, on their way to and from work, presenting the perfect opportunity for c-stores to sell them breakfast or dinner. This year, 72% of consumers surveyed by InTouch Insight said they saw c-stores as a real alternative to fast-food chains, up from 56% a year ago and 45% two years ago.
Broadly, the c-stores that have focused on fresh food have been winning over more customers.
For example, Wawa has seen its customer base grow by 11.5% since 2022, while fast-food chains McDonald’s, Burger King and Wendy’s have seen their combined customer base shrink 3.5% in the same time, according to data from Indagari, a transaction data analytics firm.
The majority of 1,170 respondents to an InTouch Insight survey for CNBC said that they have purchased made-to-order breakfast from a c-store in the morning in the past three months. Forty-eight percent of respondents said that when they choose breakfast from a convenience store, they are replacing a visit that they might otherwise make to a fast-food restaurant like McDonald’s or Dunkin’.
Buying coffee and breakfast from a c-store likely won’t be cheaper than making it at home. But consumers perceive it as “good bang for their buck,” according to Sarah Beckett, vice president of sales and marketing for InTouch Insight.
Plus, c-store customers get a wider breadth of options. In addition to coffee, gas stations sell energy drinks, protein shakes and yogurt smoothies. And customers can pick up a granola bar or banana to accompany their breakfast sandwich. Fast-food chains lack that kind of variety.
But above all, what matters to consumers is the food itself.
“While [a] convenience store broadly does have some tailwind from being a lower price point, the ultimate differentiator, and what’s really going to set apart the winners from losers, is that quality aspect of it,” Circana’s Portalatin said.
Signage at a Casey’s General Store.
Courtesy: Casey’s General Stores
Brady Caviness, a 33-year-old account executive at Bailiwick who lives in Minneapolis, told CNBC that he indulges in a breakfast pizza from Casey’s General Store when he’s traveling. If he’s back home, where there isn’t a Casey’s nearby, he’ll stop by McDonald’s, Dunkin’ or Starbucks if he’s in the mood to buy his breakfast.
The Iowa-based chain is the country’s third-largest c-store chain and claims to be the fifth-largest pizza concept based on its number of locations. Casey’s reported same-store sales growth of 5.6% for its prepared food and dispensed beverages for the three months ended July 31.
Like Taco Bell’s Mexican Pizza, Casey’s breakfast pizza, topped with cheese, scrambled eggs and a choice of bacon, sausage or vegetables, has grown a cult following since its launch in 2001.
“I think Casey’s is kind of a unique thing,” Caviness said. “My whole life, I’ve had the Egg McMuffins.”
Last Updated:
Budget 2026: FM Nirmala Sitharaman gives a strong push to manufacturing, infrastructure and job creation, while proposing a simpler tax and customs system.
Finance Minister Nirmala Sitharaman presents the Union Budget 2026-27.
Budget 2026 Takeaways: Finance Minister Nirmala Sitharaman on Sunday presented the Union Budget 2026-27, giving a strong push to manufacturing, infrastructure and job creation, proposing a simpler tax and customs regime, and hailing the government’s modernisation drive as a “reforms express”.
The Budget 2026 is anchored around three ‘kartavyas’ — driving growth by enhancing productivity and competitiveness, building people’s capacity, and ensuring inclusive development under the vision of Sabka Saath, Sabka Vikaas.
In her ninth consecutive Budget in Parliament, Sitharaman laid out a multi-pronged strategy to sustain growth amid global uncertainty, including expanding domestic electronics and semiconductor capabilities, de-risking infrastructure projects, skilling India’s youth for emerging technologies, and easing compliance for taxpayers and importers.
Here are the key takeaways from Budget 2026 across manufacturing, infrastructure, skills, AI, taxation and customs duty.
Manufacturing Gets A Boost
Budget 2026 put a special emphasis on the manufacturing landscape in India. The outlay for electronics components manufacturing was raised sharply to Rs 40,000 crore, while new schemes for rare earth magnets, chemical parks, container manufacturing and capital goods seek to reduce import dependency, and strengthen domestic supply chains. Textiles got an integrated, employment-oriented package covering fibres, clusters, skilling and sustainability.
Infrastructure-Led Growth
Infrastructure got a boost with a higher capex allocation and initiatives like a risk guarantee fund to de-risk projects for private developers, new dedicated freight corridors and national waterways, dedicated REITs (real estate investment trusts) for recycling of significant real estate assets of central public sector enterprises (CPSEs), and a seaplane VGF (viability gap funding) scheme.
The Centre’s capital expenditure (capex) target has been increased to Rs 12.2 lakh crore for FY27, up from Rs 11.2 lakh crore earmarked for the current financial year. Moreover, maintaining the fiscal discipline, Sitharaman said the government expects the fiscal deficit to be at 4.3 per cent of the GDP in 2026-27, lower than 4.4 per cent projected for the current financial year.
Tier-II and Tier-III cities were placed at the centre of urban growth via City Economic Regions, backed by reform-linked funding.
“We shall continue to focus on developing infrastructure in cities with over 5 lakh population (Tier II and Tier III), which have expanded to become growth centres,” Sitharaman said in her Budget Speech.
Greater Emphasis On Skilling
The Budget placed renewed emphasis on the services economy as a jobs engine. A high-powered Education-to-Employment and Enterprise Committee will realign skilling with market needs, including the impact of emerging technologies.
Content creation and creative industries get a boost through AVGC labs in schools and colleges, support for animation, gaming and comics, and new institutional capacity for design and hospitality. Tourism-linked skilling, from guides to digital heritage documentation, signals a clear intent to convert culture and content into employment and exports.
“I propose to support the Indian Institute of Creative Technologies, Mumbai in setting up AVGC Content Creator Labs in 15,000 secondary schools and 500 colleges,” FM Sitharaman said. AVGC stands for animation, visual effects, gaming and comics.
AI & Semiconductors Push
Artificial intelligence (AI) was positioned as a cross-sector force multiplier rather than a standalone theme. The Budget provided a push to artificial intelligence (AI) by promoting adoption with governance, agriculture, education and skilling, including proposals for AI-enabled advisory tools for farmers and AI integration in education curricula.
On hardware, the semiconductor strategy expanded decisively under ISM 2.0 (India Semiconductor Mission 2.0), with focus on domestic equipment manufacturing, materials, research centres and workforce development, signalling a long-term commitment to building a resilient chip ecosystem in India.
Taxation, ITR, TDS, TCS
A major structural reform comes with the Income Tax Act, 2025, effective April 1, 2026, containing simpler rules and redesigned forms.
Budget 2026 provided compliance relief for individuals, including extended timelines for revising returns to March 31 from December 31 earlier, staggered ITR due dates, and easier filing of Form 15G/15H through depositories.
Individuals with ITR-1 and ITR-2 returns will continue to file till July 31, and non-audit business cases or trusts are proposed to be allowed time till August 31, according to the Budget Speech 2026-27.
“I propose to extend time available for revising returns from 31st December to up to 31st March with the payment of a nominal fee. I also propose to stagger the timeline for filing of tax returns. Individuals with ITR 1 and ITR 2 returns will continue to file till 31st July and non-audit business cases or trusts are proposed to be allowed time till 31st August,” Sitharaman said.
TDS (Tax deducted at source) rules were clarified for manpower services, while a rule-based system for lower or nil TDS certificates is proposed. TCS rates were cut to 2% for overseas tour packages, education and medical expenses under liberalised remittance scheme (LRS). Litigation is targeted through integrated assessment and penalty orders, lower pre-deposit requirements, and wider immunity provisions.
TDS on the sale of immovable property by a non-resident will be deducted and deposited through resident buyer’s PAN (Permanent Account Number)-based challan instead of requiring TAN (Tax Deduction and Collection Account Number), Sitharaman said.
Customs Duty Tweaks
Customs duty rationalisation continued with a clear focus on domestic manufacturing, energy transition and ease of living. Exemptions have been extended or introduced for capital goods used in lithium-ion batteries, critical minerals processing, nuclear power projects and aircraft manufacturing.
Personal imports will become cheaper with a reduction in duty on goods for personal use from 20% to 10%. Seventeen cancer drugs and additional rare-disease treatments were exempted from customs duty. Process reforms aimed at trust-based, tech-driven clearances, faster cargo movement and lower compliance costs, especially for exporters and MSMEs (micro, small, medium and enterprises).
STT On F&O Hiked
The Budget increased securities transaction tax (STT) on futures trading from 0.02% to 0.05% and on options trading from 0.10% to 0.15%, a move that upset the capital markets with the BSE Sensex crashing more than 2,300 points from the day’s high and the NSE Nifty dropping to 24,571.75.
Securities Transaction Tax (STT) is a direct tax imposed on the buying and selling of securities in India.
Commenting on the Budget, Prime Minister Narendra Modi said, “The Union Budget reflects the aspirations of 140 crore Indians. It strengthens the reform journey and charts a clear roadmap for Viksit Bharat.”
February 01, 2026, 14:43 IST
Read More
Shanghai (China): The Consulate General of India in Shanghai welcomed the resumption of Air India’s direct flight services between Shanghai and New Delhi, marking a major step forward in restoring people-to-people, business and institutional connectivity between India and China.
According to an official release, the inaugural Shanghai-New Delhi flight departed today from Shanghai Pudong International Airport, carrying over 230 passengers on board the Boeing 787 aircraft. The relaunch comes after a gap of nearly six years and represents a significant milestone in normalising bilateral air connectivity following the suspension of services in early 2020.
Speaking on the occasion, Consul General Pratik Mathur said, “The resumption of direct flights between Shanghai and New Delhi is a tangible expression of the renewed momentum in India-China engagement. Enhanced air connectivity is essential for facilitating trade, tourism, academic exchanges and people-to-people contacts, particularly between India and East China. We are pleased to see Air India restoring this important link.”
As per a release, Air India will operate the route four times a week using its Boeing 787-8 Dreamliner aircraft, featuring modernised cabins and enhanced onboard services. The restored service reflects the growing demand for travel between the two countries and the steady recovery of cross-border mobility. It will also support commercial, educational and cultural exchanges between India and the Yangtze River Delta region, one of China’s most economically dynamic clusters.
The Consulate General of India in Shanghai remains committed to supporting initiatives that strengthen connectivity and deepen cooperation across trade, investment, tourism, education and cultural exchange, the release stated.
Last Updated:
Piyush Goyal termed the Budget “economically and fundamentally very strong”, and stated that it “reflects the aspirations of the youth of the country”.
Minister of Commerce and Industry Piyush Goyal. (File photo)
Union Minister Piyush Goyal on Sunday termed Budget 2026 “futuristic and holistic”, and stated that it “reflects the aspirations of the youth of the country and is forward-looking”.
Speaking exclusively to CNN-News18 on Budget 2026, presented by Finance Minister Nirmala Sitharaman, Goyal said, “This is a fabulous budget and it is very futuristic. The Budget 2026 has covered all sectors including technology, infrastructure, etc.”
“The technology sector has been given a thrust. The budget focuses on infrastructure. It is a holistic and forward-looking budget refecting future ready Bharat,” he said, adding, “The budget meets the aspirations of the youth and new India.”
Stating that the Budget is economically and fundamentally very strong, the Union Minister said, “Farmers, animal husbandry and labour-intensive sectors get a major push as this Budget focuses on investment, value addition and jobs.”
#Exclusive | “The Budget is economically and fundamentally very strong,”Preparing India for Viksit Bharat. Farmers, animal husbandry and labour-intensive sectors get a major push as the Budget focuses on investment, value addition and jobs.@Parikshitl in an exclusive… pic.twitter.com/tJr2SItcaW
— News18 (@CNNnews18) February 1, 2026
‘Budget 2026 Is Human-Centric’: PM Modi
Prime Minister Narendra Modi on Sunday said that the Union Budget 2026 is “human-centric and strengthens India’s foundation with path-breaking reforms.” The Prime Minister also described it as historic and a catalyst for accelerating the country’s reform trajectory and long-term growth.
Following the presentation of the Budget in Parliament, PM Modi said the proposals would energise the economy, empower citizens and give India’s youth fresh opportunities to scale new heights.
“This budget brings the dreams of the present to life and strengthens the foundation of India’s bright future. This budget is a strong foundation for our high-flying aspirations of a developed India by 2047,” he said.
Calling the government’s reform agenda a “Reform Express”, the Prime Minister added, “The reform express that India is riding today will gain new energy and new momentum from this budget.”
February 01, 2026, 19:01 IST
Read More
Here’s why Pakistan decide to boycott India in T20 World Cup 2026
From Manufacturing To Infra And AI: Capex Boost Flags Off Budget 2026 ‘Reforms Express’
Pakistan to play T20 World Cup but boycott India match
-
Sports5 days agoPSL 11: Local players’ category renewals unveiled ahead of auction
-
Entertainment1 week agoThree dead after suicide blast targets peace committee leader’s home in DI Khan
-
Tech1 week agoThis Mega Snowstorm Will Be a Test for the US Supply Chain
-
Entertainment5 days agoClaire Danes reveals how she reacted to pregnancy at 44
-
Fashion1 week agoSpain’s apparel imports up 7.10% in Jan-Oct as sourcing realigns
-
Tech1 week ago‘Uncanny Valley’: Donald Trump’s Davos Drama, AI Midterms, and ChatGPT’s Last Resort
-
Tech1 week agoICE Asks Companies About ‘Ad Tech and Big Data’ Tools It Could Use in Investigations
-
Sports5 days agoCollege football’s top 100 games of the 2025 season