Delivery Apps Aren't Killing C-Store Traffic — the Math Is

The U.S. convenience store count slipped by 280 locations last year, according to NACS — but third-party delivery apps are not the culprit. The closures concentrate among small stores without fuel, while fuel-selling locations hit an eight-year high, NACS data shows.

The temptation to blame delivery is understandable. Uber's delivery bookings rose 23% last quarter, and in-store transactions remain soft across the industry. DoorDash and Uber Eats keep growing. The dots connect easily — and wrongly.

"These are the stores that drag down a balance sheet," the analysis notes of the shuttered small sites without fuel. The pattern points to a squeeze on thin-margin operators, not to shoppers abandoning the channel.

What does the data say about Gen Z?

The younger shopper is where the delivery story gets complicated. Research on the generation shows a large majority enjoys the convenience store experience. At the same time, Gen Z uses delivery at roughly twice the rate of older generations.

"Younger consumers will walk in for a coffee at 7 a.m. and open an app for snacks at midnight," the analysis states. "Same shopper, two channels." Gen Z discovers products on phones, values speed, and does not reward a brand for 30 years on the corner. The analysis calls that last point a fact chains will have to accept.

The conclusion: younger shoppers draw no line between online and in-store, so operators should not either.

Where is the margin risk?

The economics of third-party platforms carry the real danger. Third-party fees can run as high as 30% of the ticket. Most convenience items earn a gross margin of 25% to 35%.

Foodservice can absorb that math. A six-pack or a bag of chips usually cannot. The recommendation: build the delivery menu and pricing around items that actually pay.

Ownership is the second front. When an order starts in someone else's app, that platform owns the data, the habit and the relationship. Operators should build their own ordering and loyalty systems, so third-party platforms function as a marketing channel rather than a front door.

What are top-quartile operators doing?

The top-quartile operators in the convenience space run a three-part playbook, per the analysis:

• Use delivery apps to get discovered
• Move repeat customers into their own app, with their own offers and their own data
• Make the in-store visit worth the trip — fresh food, a clean store, a reason to linger

Third-party delivery can serve as both partner and loyalty tool, the analysis argues, bringing in customers a store would never otherwise reach. The distinction that matters: "there's a big difference between using a platform to find new customers and renting your own shoppers back at a 30% markup."

Younger shoppers will keep coming — and keep ordering — as long as operators don't hand over the keys to the relationship. The stores that solve the ownership equation, not the traffic question, will be the ones growing food sales while others worry about closings.