Convenience Stores Are Becoming Fast-Food Restaurants. Here's Who's Leading the Charge

Convenience stores are adding name-brand restaurant counters at a pace that would have seemed strange five years ago. Wetzel's Pretzels, Krispy Krunchy Chicken, and Cinnabon are all pushing into c-store aisles, and regional operators are signing up fast.

Foodservice accounted for about 36% of inside sales at convenience stores in 2025, according to NACS data. That share has operators looking for ways to capture more of it, and branded restaurant programs offer a shortcut: recognized names, tested menus, and lower food costs than building a proprietary kitchen from scratch.

Wetzel's Pretzels opened 20 of its restaurants in nontraditional locations like c-stores and airports last year. The company's store-within-a-store model fits a full pretzel menu, hot dogs, and mozzarella sticks into a small footprint. Wetzel's now operates inside Shell, 76, and Exxon stations, with most c-store locations in California and new sites in Illinois, Virginia, and Washington. Agreements are in place for New Mexico, Kansas, Alabama, Nevada, and Arizona.

"In 2026, C-store development will be a key avenue for Wetzel's nationwide expansion," said Ross Duggal, director of franchise sales for Wetzel's Pretzels. "This model is a perfect fit for our brand and operators, offering convenience and quality to shoppers while creating a significant growth opportunity for franchisees."

The company has about 450 quick-service restaurants in its network and is aiming to open its 500th location this year, with 10 to 15 more c-store sites in development.

In California, Loop Neighborhood Market is adding Krispy Krunchy Chicken to 12 locations in the San Francisco, Sacramento, and Stockton areas. The chain plans to integrate ordering through its app. "By integrating Krispy Krunchy Chicken's proven hot food program, Loop can attract new customer segments, increase dwell time, and drive repeat visits," said Brett Yates, vice president of chain and business development for Krispy Krunchy Chicken. The menu includes fried chicken, tenders, a Cajun chicken sandwich, nuggets, wings, honey biscuits, and sides.

Krispy Krunchy operates as a licensed, turnkey program, meaning operators don't sign a traditional franchise agreement. Franchise models work differently. US Market, a 50-store chain based in Oregon, signed a franchise deal with Cinnabon to open six locations, starting in Salem. It's US Market's first QSR partnership.

"With additional Cinnabon locations already in the pipeline, this move reflects how a regional operator is using branded foodservice as a growth engine — not an add-on," a US Market spokesperson said.

The pattern extends beyond these three brands. RaceTrac spent $566 million to acquire sandwich chain Potbelly, while BrakeTime signed franchise agreements with Little Caesars and Burger King

The logic for operators is straightforward: a recognized brand draws traffic without requiring years of reputation-building, and streamlined menus keep food costs lower than a full kitchen operation. For customers, it means a Cinnabon at the gas station counter is becoming a normal stop.

by Alex Bailey | April 15, 2026 | SHARE