More C-Stores Impacts Consumers’ Fuel Choices: Branded or Unbranded

In recent years, the convenience store industry has experienced significant growth, driven by changing consumer behaviors and the increasing need for quick, accessible retail options. According to the 2024 NACS/NIQ Convenience Industry Store Count, there were 152,396 C-stores in the U.S. as of December 31, 2023, representing a critical part of the retail landscape. This expansion has influenced consumer shopping habits and significantly impacted how consumers choose where to fuel their vehicles. Consumers’ fuel choices between branded and unbranded fuel have become more complex, with other factors such as rewards programs, in-store meal options, and overall convenience playing pivotal roles in decision-making.

The Influence of Convenience Store Growth on Fuel Choices

The rise of convenience stores has fundamentally reshaped the fuel retail market. As these stores increase, they have become more than just places to fill a gas tank—they are now destinations for various needs, from food and beverages to everyday essentials. This shift has influenced consumer behavior, making the convenience store itself a key factor in deciding where to fuel, sometimes outweighing the importance of whether the fuel is branded or unbranded.

Traditionally, branded fuel—sold under well-known names such as Shell, Exxon, or Chevron—has been associated with higher quality and added benefits like engine-cleaning additives. Consumers often perceived branded fuel as a safer and more reliable option, justifying a slightly higher price point. However, the expansion of convenience stores, many of which offer unbranded fuel at competitive prices, has begun challenging this perception.

Unbranded fuel, typically sold at independent gas stations or convenience stores not tied to major oil companies, has gained popularity due to its lower cost. As convenience stores have grown, they have increasingly offered unbranded fuel, leveraging their lower overhead costs to provide consumers with a more affordable option. This trend has been especially pronounced in regions with high price sensitivity, and consumers are more focused on getting the best deal on fuel.

The Role of Rewards Programs in Fueling Decisions

Rewards programs have become a crucial factor in consumers’ fuel choices. Many branded fuel providers offer loyalty programs with discounts, points, or cashback for every gallon purchased. These programs can significantly influence a consumer’s decision, especially when the rewards are tied to other everyday purchases or services.

For example, Shell’s Fuel Rewards program allows customers to save on fuel by earning discounts through dining, shopping, and travel. Similarly, ExxonMobil’s rewards program offers points that can be redeemed for fuel and convenience store items. These programs create a strong incentive for consumers to choose branded fuel, as the savings and benefits can accumulate quickly, reducing the overall cost of fueling up.

Conversely, many convenience stores offering unbranded fuel have also introduced their own loyalty programs, often tied to in-store purchases. These programs might not offer the same fuel-related rewards as branded programs, but they provide discounts on popular convenience store items, from coffee to snacks. In some cases, these rewards can be more attractive to consumers who frequent the store regularly, making the unbranded fuel option more appealing.

In-Store Meal Options and Their Impact on Fuel Choices

Another significant factor influencing consumers’ choice to fuel their vehicles is the availability and quality of in-store meal options. As convenience stores have evolved, many have expanded their food offerings beyond traditional snacks and beverages to include fresh, made-to-order meals, premium coffee, and healthy options like salads and fruit.

The convenience of grabbing a meal or snack while fueling up has become an essential consideration for many consumers. Stores like Wawa, Sheetz, and 7-Eleven have capitalized on this trend by offering a wide range of food options, from breakfast sandwiches to gourmet coffee. These enhanced food offerings can make a convenience store a more attractive fueling option, even if the fuel is unbranded.

In some cases, the quality of in-store food can even surpass the importance of fuel branding. For instance, a consumer who enjoys a particular convenience store’s food might choose to fuel up there regardless of whether the fuel is branded, simply because the store meets multiple needs in one stop. This shift towards food-driven fueling decisions has become especially relevant in urban areas, where busy lifestyles prioritize convenience.

The Impact of Consumer Perception and Trust

Consumer perception and trust remain critical factors in the decision between branded and unbranded fuel. Despite the growing appeal of unbranded fuel offered by convenience stores, some consumers remain loyal to branded fuel due to concerns about quality and engine performance. Branded fuel companies often invest heavily in marketing campaigns that emphasize their products’ superior quality and benefits, which can reinforce consumer trust and loyalty.

However, this perception is gradually changing as more convenience stores offer high-quality, affordable, unbranded fuel. Independent studies have shown that the quality of unbranded fuel is generally comparable to that of branded fuel, as all fuel must meet stringent regulatory standards. As consumers become more aware of this, the stigma associated with unbranded fuel will likely diminish, leading to further shifts in fueling behavior.

H&S Energy Fulfills All Consumers’ Fuel Choices

Looking ahead, the continued growth of convenience stores is likely to further blur the lines between branded and unbranded fuel. As these stores expand their offerings and enhance the overall customer experience, factors like rewards programs, in-store meal options, and overall convenience will play increasingly important roles in where consumers choose to fuel their vehicles.

In the future, we may see more collaboration between fuel providers and convenience store chains, with branded fuel being offered alongside robust in-store rewards programs and premium food options. This could create a new hybrid model where consumers can enjoy the benefits of branded fuel without sacrificing the convenience and value of modern convenience stores.

At H&S Energy, we support our clients with everything they need to meet their consumers’ demands. From branded and unbranded fuel options to full convenience store programs, you’ll have all the resources you need to achieve your business goals. Contact us today to learn more about the benefits of H&S Energy.