How Much Do Convenience Stores Make? 8 Stats to Know In 2025

Convenience stores play a key role in the retail industry, generating billions in revenue each year. But how much do they actually make? 

From fuel sales to foodservice, multiple factors impact the profitability of convenience stores. Understanding industry trends and revenue drivers can help store owners maximize profits and stay competitive in 2025. Let’s review the key stats shaping the industry. 

HOW MUCH DO CONVENIENCE STORES MAKE? 2025 INDUSTRY STATISTICS 

Convenience stores are a major part of U.S. retail. The industry brings in roughly $814 billion each year and more than half of that revenue comes from fuel sales. In-store sales make up the rest with food, beverages, and general merchandise as key drivers. 

Revenue varies by store type and location. Independent stores often have lower sales but higher profit margins on select items, while chain stores benefit from bulk pricing and brand recognition. 

Location also has a big part to play. Urban stores generally see higher foot traffic. Rural locations, on the other hand, rely more on regular customers. 

The store’s profitability depends on what it sells. Health and beauty products bring in the highest margins, while cigarettes sit at the lower end. Fuel adds another revenue stream but has thin margins, making in-store sales critical for stronger profits. 

Fluctuating fuel prices, inflation, and supply chain issues also play impact a store’s profitability. To stay ahead, store owners can incorporate high-margin items like snacks, energy drinks, and fresh coffee to boost earnings. 

REVENUE BREAKDOWN: WHAT DRIVES CONVENIENCE STORE PROFITABILITY? 

Store profits depend on your mix of products and services, pricing strategy, and customer demand. Let’s look at what brings in the best returns. 

FUEL SALES & PROFIT MARGINS 

Fuel sales are a huge revenue stream for convenience stores. For instance, Alimentation Couche-Tard recently reported fuel gross margins of just over 47 cents per gallon in the U.S. 

Different factors impact these margins. Crude oil costs, taxes, and market shifts all have an effect. To stay competitive, many stores adjust fuel prices using software that tracks market trends and competitor rates. 

FOOD & BEVERAGE SALES 

Convenience stores are stepping up their food service offerings by introducing hot meals, pre-packaged options, and quality coffee to attract more customers. 

At the same time, demand for healthier snacks and premium beverages is growing and pushing stores to diversify their product lines. To gain an edge, many convenience stores use loyalty programs and promotions to increase repeat visits and spending per trip. 

LOTTERY, ATM, AND ADDITIONAL SERVICES 

Lottery ticket sales provide a reliable revenue stream. Stores earn commissions on each sale and cash in on higher foot traffic during big jackpots. 

ATMs, check-cashing, and money transfer services also contribute to profits. They have an even bigger impact in areas with fewer banking options. 

Beyond financial services, many stores offer extras like car washes and propane exchanges. Multiple services create more convenience for customers while boosting overall sales. 

ALCOHOL & TOBACCO SALES 

Cigarettes account for nearly a quarter of in-store sales in U.S. convenience stores. Alcoholic beverages also contribute significantly to revenue. Premium beer alone generates over $45,000 in sales per store on average.  

However, profit margins differ. Tobacco products typically have lower profit margins. Alcohol sales can offer higher margins, but it depends on the product type and pricing. ​

Strict regulations affect both alcohol and tobacco sales. As such, it's important to comply with federal, state, and local laws to avoid penalties. 

GENERAL MERCHANDISE & HOUSEHOLD GOODS 

Non-food items are a good revenue stream for convenience stores. Everyday essentials like batteries, toiletries, and over-the-counter medications sell consistently. Seasonal items such as umbrellas in rainy months or sunglasses in summer drive impulse purchases.  

Private-label products are also gaining traction and offer higher profit margins than national brands. By stocking affordable alternatives, customers can buy popular budget-friendly options. These small shifts in a store’s product selection can make a big impact on overall profitability. 

HOW MUCH PROFIT DO GAS STATIONS MAKE? 

Gas stations generally have an average fuel net margin under 2%. This underscores the importance of in-store sales, where higher profit items like snacks and beverages help elevate overall profitability. 

A strategic approach makes a big difference. For example, Pump N' Pantry launched a loyalty program to reward customers with points for each purchase. This initiative led to over 6,000 members joining within a year and online orders accounting for 20% of overall sales. 

Such programs not only increase customer retention but also encourage higher spending per visit. It demonstrates the potential of combining fuel services with convenience store offerings. 

3 KEY FACTORS THAT INFLUENCE CONVENIENCE STORE PROFITABILITY 

A store’s profitability depends on multiple factors. Let’s explore the biggest influences on success below. 

1. LOCATION & DEMOGRAPHICS

Where a store is located directly impacts sales. Urban stores benefit from high foot traffic but face more competition. Suburban locations attract families and commuters, with predictable shopping habits. Rural stores rely on loyal, repeat customers but may have fewer daily transactions. 

Demographics also play a role. Age, income levels, and lifestyle preferences influence what products sell best. It ensures shelves are stocked to meet local demand, reduces waste, and boosts sales. 

2. STORE LAYOUT & PRODUCT SELECTION

A well-planned store layout makes shopping easier and encourages impulse buys. Placing high-margin items near the checkout counters can lead to higher spending per visit. 

Endcap displays and eye-level shelves draw attention to popular or seasonal products. Clear signs help customers navigate the store, making shopping more convenient, which boosts sales. 

3. TECHNOLOGY & PAYMENT SOLUTIONS

Technology is changing the way convenience stores operate. Mobile payments and self-checkout systems speed up transactions. In turn, it reduces wait times and improves customer satisfaction.

Beyond speed, data analytics helps convenience stores manage inventory and pricing. By tracking demand in real time, stores can reduce waste, avoid stockouts, and maximize profits. 

To keep customers coming back, many stores use integrated POS systems and loyalty programs. These tools personalize offers, reward repeat purchases, and provide valuable insights into shopping habits. Together, they help convenience stores build stronger customer relationships while boosting revenue. 

HOW TO INCREASE CONVENIENCE STORE REVENUE IN 2025 

Increasing revenue comes down to smart strategies and adapting to customer needs. Let’s look at useful ways convenience stores can drive growth. 

IMPROVING CUSTOMER EXPERIENCE & RETENTION 

Creating a better shopping experience keeps customers returning. Loyalty programs and personalized promotions encourage repeat visits by offering discounts and rewards based on purchase history. 

Using customer data helps convenience stores stock the right products. It ensures shelves match local demand, reduces waste, and increases sales. 

To boost revenue per visit, stores can focus on strategic product placement and bundling deals that encourage larger purchases. A seamless shopping experience leads to long-term customer retention. 

EXPANDING FOODSERVICE & GRAB-AND-GO OPTIONS 

More customers are looking for fresh, made-to-order meals when they visit convenience stores. Hot meals, salads, and healthier snacks attract shoppers and increase spending per visit. 

Beverage customization is another way to boost profits. Specialty coffee, smoothies, and other personalized drinks give customers more choice while raising margins. 

To keep up with demand, stores can add digital ordering and a drive-thru pickup window. These options make it easy for busy shoppers to grab what they need quickly. As you can imagine, it’s great for repeat business. 

LEVERAGING DIGITAL MARKETING & PROMOTIONS 

Digital marketing helps convenience stores attract and retain more customers. Social media campaigns highlight promotions, new products, and limited-time deals to drive foot traffic. 

Targeted online ads reach local shoppers, encouraging them to visit the store. By focusing on location-based promotions, stores can increase in-store visits. 

Mobile app deals and SMS promotions provide instant incentives. Exclusive discounts and reward-based offers keep customers engaged and coming back for more. 

FREQUENTLY ASKED QUESTIONS ABOUT CONVENIENCE STORE PROFITS 

Many factors influence a convenience store’s profitability. Below, we answer common questions to provide a clearer understanding of the industry. 

How profitable is a convenience store? 

A convenience store’s profitability varies, but fuel margins are typically under 2%. Higher-margin items like foodservice, impulse buys, and private-label products help boost overall earnings. Loyalty programs and strategic product placements also improve profits. 

How much does it cost to open a convenience store? 

Startup costs for a convenience store depend on factors like rent, inventory, and equipment. A small store can cost $50,000 to $250,000 to open. Meanwhile, larger locations with fuel stations require significantly more. 

What licenses do I need to open a convenience store? 

Common requirements to open a convenience store include a business license, sales tax permit, and food handling certification. Selling alcohol, tobacco, or lottery tickets requires additional state and local permits. 

Can a convenience store be an LLC? 

Yes, many store owners register as an LLC to limit personal liability and simplify tax management. It also provides flexibility in ownership structure. 

Do you need a business degree to open a store? 

No, but understanding inventory management, marketing, and finances is essential. Many successful store owners learn through experience or take business courses. 

IS OWNING A CONVENIENCE STORE PROFITABLE? 

Owning a convenience store can be profitable with the right strategy. To succeed, offer the right products at the right price and keep customers engaged. By staying adaptable and in tune with market trends, store owners can build steady revenue and drive long-term growth.  
Ready to maximize profitability? Get useful insights in the Paytronix Trend Predictions Report 2025.