The Economics of Convenience Stores

THIS news story details how more people are electing to buy meals at convenience stores, especially those anchored by gas stations, than ever before. The change is apparently being driven by an upgrade in the food offered there, and by the fact that it's apparently cheaper there than at fast food restaurants like McDonald's or Taco Bell.

That trend was sort of interesting to me, especially since I'd long ago written off the food at these places (except in cases of extreme emergency). But the following two sentences, about the economics of the convenience store business, really caught my eye. “'About 70 percent of their overall revenue dollars come from fuel. But only about 26 percent of profit dollars come from fuel,' said Jeff Lenard, vice president of communications for the National Association of Convenience Stores. 'You can make much more money as a restaurant than you can a gas station,' he added."