In a fiercely competitive convenience store (c-store) landscape, foodservice has emerged as a major driver of growth. Fresh-prepared meals, grab-and-go options, and specialty beverages not only boost foot traffic but also deliver high margins. However, operational costs tied to foodservice – labor, waste, utilities, and supply chain complexity-can erode profitability if not carefully managed. To remain competitive and sustainable, operators must adopt strategic measures to control costs without compromising service or product quality.

Labor is one of the largest cost centers in foodservice. C-stores can reduce labor expenses by optimizing labor through smart scheduling and cross-training. This can be done by implementing a few steps like smart scheduling software that aligns staff hours with peak customer periods. By cross-training employees to perform multiple roles, from food prep to cashiering, reducing the need for multiple specialized staff members. Self-service kiosks and mobile ordering systems, which shift some tasks away from employees while improving service speed can also help. Additionally, investing in employee retention and training reduces turnover costs and improves productivity over time.

Overproduction and spoilage can silently drain profits. Operators can minimize waste by leveraging sales data and AI-based forecasting tools to better predict demand. Implementing first-in, first-out inventory management practices and monitoring portion control with pre-measured ingredients or automated dispensers to ensure consistency and reduce over-serving can aid in waste reduction. Regular waste audits can also uncover patterns and areas for improvement.

A smaller, strategically curated menu reduces complexity and operating costs. Benefits includes lower inventory requirements and fewer ingredients. I can provide easier training and faster prep time for employees. It can also improve customer experience with simplified choices and faster service.

While the upfront cost may be higher, energy-efficient ovens, refrigeration units, and lighting systems can drastically lower utility bills over time. Features like programmable thermostats, low-energy fryers, and LED lighting have fast payback periods and are often eligible for local rebates or incentives. Regular maintenance also prevents costly breakdowns and ensures equipment is running at peak efficiency.

Embracing technology to improve visibility and control through modern POS systems, inventory management platforms, and kitchen display systems that provide real-time data that enables better decision-making. For instance, monitoring inventory levels prevents over-ordering and under-stocking. By simply tracking sales trends this can help refine menu offerings and promotions. Integrating platforms reduces manual entry and human error, which will save on labor hours. Automation in ordering, prep, and back-office operations also cuts overhead while improving consistency.

One last tip is adopting scalable foodservice programs. For C-store new foodservice or looking to expand offerings cost-effectively, modular and scalable foodservice programs are ideal. These programs allow stores to start with low-complexity, high-demand items like coffee, roller grill items, or cold sandwiches. Scale into higher-margin, fresh-prepared meals as demand and staff skill levels increase. Franchise-style solutions or partnerships with branded foodservice providers can also offer turnkey systems with built-in cost controls.

In a market where every penny counts, reducing operator costs in foodservice without cutting corners in critical. By adopting a multi-pronged approach-ranching from labor optimization and waste reduction to smarter purchasing and technology integration-convenience store operators can build a foodservice program that is both profitable and scalable. Ultimately, the goal is to strike the right balance between operational efficiency, product quality, and customer satisfaction-because in the convenience industry, that’s what drives repeat business and long-term growth.

Content courtesy of General Mills Foodservice