Tuesday, February 17, 2026
Will 2026 Bring More Convenience Channel Consolidation?
Industry experts expect acquisitions involving small and midsize companies to continue to dominate M&A activity
Source: Convenience Store News
By Renée M. CovinoNATIONAL REPORT — Is the whole truly greater than the sum of its parts? That's the thinking behind mergers and acquisitions, emphasizing the idea that the combination of companies can lead to business outcomes that surpass what each could achieve independently.
Globally, across all industries, merger-and-acquisition (M&A) activity grew 10% in the first nine months of 2025 compared to the same period a year ago, according to the "Global M&A Report" released in October by the Boston Consulting Group.
Drilling down to the convenience store industry, there were some big-name M&A deals that made headlines recently: Sunoco's acquisition of Parkland Corp. for $9.1 billion, Alimentation Couche-Tard Inc.'s (ACT) acquisition of GetGo Cafe + Market for $1.6 billion, and ACT's proposed acquisition of Seven & i Holdings that fell through.
However, despite notable M&A activity among large c-store chains in 2025, the majority of activity the past two years has involved smaller chains with 50 or fewer stores.
"Due to two-thirds of the 150,000 c-stores across America being single-store operations, and both labor and technology costs rising, this is largely expected," Vasudha Cidambi, a business analyst at Evanston, Ill.-based Cadent Consulting Group, told Convenience Store News. "These rising costs incent small c-stores to sell their businesses, but also incent larger c-stores to buy smaller c-stores and spread their costs thinner while increasing profitability."
Dennis Ruben, executive managing director for Chicago-based NRC Realty & Capital Advisors LLC, agrees that although there were a few large transactions in the past year, most of the ones reported were what he calls "medium-sized deals" in the 10- to 50-store range — and he believes this is what will constitute most of the activity going forward.
"These are the chains that will continue to have challenges competing effectively with the larger operators," he said. "In addition, with purchase price multiples remaining strong, the bonus depreciation incentives in the recently enacted Tax Bill for convenience store acquisitions and an improved interest rate environment, the M&A landscape should remain robust next year."
Terry Monroe, president and founder of American Business Brokers & Advisors, likewise believes consolidation of convenience stores will continue. However, he pointed to ownership demographics — the declining rate of baby boomers and the fact that a large majority of c-stores are owned by baby boomers who don't have business successors.
"There is a trend that most businesses that are being sold in this industry — excluding those being sold because of death, divorce or bankruptcy — are being sold by owners who are baby boomers that don't have anyone to succeed them in the ownership of the business," he explained.
Looking to 2026, Monroe says "you may see one or two more mega deals, but the majority of acquisitions are going to be regional because there are not many large operators left to consolidate, but there are lots of regional players."
Geographic Diversification Emerges
Until a couple of years ago, most c-store operators looking to expand wanted to stay within their basic geographic footprint. That has changed recently.
"Now, operators are willing to look everywhere for quality assets and companies," Ruben noted. "When we have conversations with operators about the types of acquisitions they are looking for, we consistently hear the same thing — that if there is enough 'critical mass,' they will go anywhere in the continental United States. This change in attitude will open up the door to more potential purchasers of companies — something that is much needed in light of the industry consolidation that has taken place over the past few years."
Richard Bode, managing partner of Cadent Consulting Group, expects geographic diversification to play a significant role in c-store M&A in 2026. "As the industry continues to consolidate, c-store operators are increasingly looking beyond their traditional footprints to tap into new customer bases and diversify their exposure to regional fuel demand patterns," he said.
Bode highlighted MAPCO's recent expansion into three new states following the divestiture of stores from ACT's acquisition of GetGo, which he said illustrates how regulatory requirements can create opportunities for smaller and midsized chains to grow through regional acquisitions. He believes this trend is being driven by multiple factors. First, fuel demand continues to vary significantly by region due to differences in electric vehicle adoption, urbanization and commuting patterns. "Expanding into new geographies allows c-store chains to hedge against these regional fluctuations and maintain more stable revenue streams," he said.
Second, as larger chains grow through acquisitions, the U.S. Securities and Exchange Commission and the Federal Trade Commission are increasingly requiring divestitures to prevent monopolistic market conditions. "These divestitures open the door for smaller players to enter new markets and scale their operations," Bode stated.
Cadent Consulting Group's Cidambi pointed out, however, that this also means individually owned c-stores may continue to decline in number. "While they will still represent the majority of the market, their share is likely to shrink as they face pressure from larger, better-capitalized competitors," she reasoned. "Additionally, with c-store trips trending downward, geographic expansion becomes a strategic imperative for chains seeking to maintain foot traffic and relevance in a shifting retail landscape."
She also made note of the recent trend of what she calls "super-regional" convenience store chains: midsize regional players such as Buc-ee's, Wawa Inc., Sheetz Inc. and QuikTrip Corp. that have developed loyal fanbases due to competitive features like being well-lit, offering fresh food and having consistently clean bathrooms.
"Many of these super regionals are expanding into new regions, driving intrigue and getting customers excited about novel, improved c-store experiences," Cidambi told CSNews. "As these chains grow in size, they become competition for large c-store chains who are established but, due to their size, may suffer from inconsistent in-store experiences."
Foodservice Integration Accelerates
Another notable M&A trend as of late finds foodservice integration gaining momentum. For instance, RaceTrac acquiring Potbelly and/or a foodservice angle playing a more important role in c-store acquisitions.
Ruben is one who expects this trend to continue. He believes RaceTrac's acquisition of Potbelly was "quite interesting" for a number of reasons.
"First, RaceTrac has not historically been actively involved in acquiring existing c-store operations," he explained. "In addition, the scarcity of larger companies to acquire has made the remaining industry players look to other alternatives to expand their businesses. RaceTrac saw Potbelly as an opportunity to acquire a quality foodservice chain and integrate it into its portfolio of c-stores. This is a very interesting model for other industry participants, and I would not be surprised to see similar types of acquisitions by other c-store operations in the near future."
Monroe called the RaceTrac/Potbelly acquisition "a brilliant idea," and he also believes foodservice integration will continue to be a focus. "A successful food program is going to be necessary going forward in the convenience store business and acquiring a food brand that already has expertise will propel the chain into the food business quickly and expertly instead of trying to reinvent the wheel," he said.
The way Bode sees it, foodservice integration will continue in 2026, but on a highly selective basis. "At the moment, the perception of fresh food offerings in the c-store space is low, leaving a gap for c-stores to fill. Many are also suffering from low fuel margins. ... The c-store space holds an opportunity for QSR [quick-service restaurant] chains to gain foot traffic and sales, especially as consumers may currently see more value in a c-store purchase than a traditional QSR purchase," he said.
"Despite consumers' wallets being strapped as they face economic and social uncertainty, they are looking for value and premium experiences to stretch their dollar," he continued.
Socioeconomic Considerations to Have Effect
Tied into the foodservice integration trend are socioeconomic considerations that experts believe will and should affect M&A activity in 2026 — sometimes in a cautionary way.
One of the most important emerging dynamics for next year is the evolving role of convenience stores as food access points, according to Cidambi. Although it came to an end in November, the longest government shutdown in U.S. history combined with the temporary shutdown of SNAP benefits contributed to a notable decline in consumer sentiment and a heightened focus on value to prepare for high levels of economic uncertainty. As a result, consumers are increasingly willing to switch retail channels in search of affordable, convenient food options.
"This environment presents a growing opportunity for c-stores with strong QSR offerings," she emphasized. "As traditional foodservice providers struggle with declining traffic and rising costs, c-stores that can offer quality, value-driven food options stand to gain market share. We anticipate that M&A activity in 2026 will reflect this trend, with more deals centered around acquiring or integrating QSR capabilities to meet evolving consumer expectations."
There is also a risk that continued c-store consolidation could negatively impact rural communities. In many rural areas, convenience stores serve as the primary, if not only, source of food and essential goods, Cidambi pointed out, citing that rural areas have the highest rates of food insecurity with less than 40% of individuals residing in rural areas having access to major food delivery services.
"Thus, convenience stores are crucial in helping rural areas cope with these disparities," she said. "If smaller, independently owned stores are acquired and subsequently shut down due to underperformance or strategic realignment, it could exacerbate food insecurity in regions already facing limited access. This underscores the importance of thoughtful, community-conscious M&A strategies that consider not just profitability, but also the broader social impact of consolidation.”