Estimated reading time: 3 minutes
In 2025, inflation continues to challenge convenience stores and gas stations, driving up fuel prices, labor costs, and operational expenses while pressuring customer spending. As the Marketing Operations Manager at Petrosoft LLC, I’ve observed how these dynamics affect owners differently based on scale. Drawing from the National Association of Convenience Stores’ (NACS) 2023 data—reflecting $860 billion in industry sales—I’ll outline the impact on single-store operators, those with 3-5 locations, owners of 10-20 stores, and large franchises, offering strategies grounded in real-world trends to protect your bottom line.
Challenges for Single-Store Owners
Consider the single-store owner, one of 94,510 such operators (62% of NACS’s 152,255 total stores). With annual sales averaging $1.47 million, these businesses face acute vulnerability. Fuel, comprising 67% of revenue ($532.2 billion industry-wide), sees reduced demand as prices approach $4-$5 per gallon, diminishing in-store purchases from an average basket of $7.80. Labor costs, rising from $14.73 per hour in 2023 to an estimated $16-$18, erode the typical $72,804 profit. Shrinkage further compounds losses, claiming 1-2% of revenue. To mitigate this, operators can install cost-effective security cameras—around $50—to deter fuel theft and emphasize prepared food offerings, which accounted for 26.9% of in-store sales ($88.5 billion) in 2023, capitalizing on higher margins.
Inflation’s Effect on 3-5 Store Owners
Next, owners managing 3-5 stores generate $4-$7 million annually, yet inflation remains a formidable hurdle. Fuel sales, down 11.2% industry-wide to $532.2 billion in 2023, vary across locations, straining consistency. Labor expenses, totaling $300,000-$500,000 with a 3.3% annual increase, and rising wholesale costs challenge in-store profitability, despite a robust $327.6 billion industry total. A client of ours reduced losses by $20,000 last year using data analytics to identify shrinkage patterns. Adopting similar tools—such as Petrosoft’s Loss Prevention Analytics—can yield 10-15% savings, while introducing loyalty programs at high-traffic sites leverages fuel’s role in driving 80% of customer visits (NACS).
The Resilience of 10-20 Store Operators
For those overseeing 10-20 stores, with revenues of $15-$30 million, scale provides resilience. Fuel price volatility—$3.41 per gallon in 2023 spurred demand, but 2025’s higher rates temper it—requires adaptability. In-store sales, up 8.2% to $327.6 billion, and foodservice ($88.5 billion) offer stability, though labor costs exceeding $1 million test margins, potentially dropping to 4%. Strategic responses include bundling fuel discounts with $10 prepared food combos and implementing inventory forecasting technology, which can reduce waste by 3-5%, ensuring profitability amid rising costs.
Large Franchises and Their Structural Advantages
Large franchises, such as those with 8,000+ locations, command $860 billion in sales and weather inflation with structural advantages. Fuel contributes $532.2 billion, while in-store sales reach $327.6 billion, bolstered by an 8.2% growth rate. Operating expenses, up 14.7% to $150.1 billion since 2021, are offset by advanced technologies—mobile apps and self-checkout—maintaining efficiency. Profit reductions of 5-10% on $50 million-plus earnings are manageable, and adapting by offering $3 value items in place of $5 snacks sustains customer retention. Sharing operational efficiencies with smaller operators can further enhance industry goodwill.
Strategies for Navigating Inflation
Inflation’s persistence threatens the industry’s 148.2 million daily transactions (NACS 2023). Single-store profits may vanish, 3-5 store operators could lose $50,000-$100,000, 10-20 store owners might see $200,000-$300,000 erode, while franchises endure with minimal disruption. Strengthening foodservice and adopting technology are critical defenses. At Petrosoft, our Loss Prevention Analytics has helped clients safeguard millions by curbing inefficiencies. Visit www.petrosoftinc.com to explore how these solutions can fortify your operation. How will you adapt to secure your future?
