Arko is the latest convenience store chain getting ready to beef up its menu with improved pizza and other ready-made foods and beverages.
Arko, one of the largest U.S. convenience store chains with more than 1,400 locations nationwide, will start the permitting process for new stores this quarter, the Richmond, Virginia-based company said during a conference call last week. After Arko implements its new store design in a pilot project this year, remodeling and construction are expected to begin early next year.
Convenience stores are aggressively expanding through new store construction and acquisitions, and they’re prioritizing food sales in this growth phase. Japan-owned 7-Eleven recently said it will open more than 600 stores in North America with a store layout that emphasizes food sales. And new stores opened by Tulsa, Oklahoma-based QuikTrip typically include cold-brew coffee on draft and an electronic kiosk-based menu where consumers can order freshly made pizzas, pretzels and other fare at a kitchen located next to the check-out register.
Arko executives determined the company has an opportunity to grow sales by improving its food and drink offerings, the company said in a recent regulatory filing.
"We believe consumers may be more likely to patronize convenience stores that include new and improved food offerings, which may also lead to increased inside merchandise sales or fuel sales," Arko said in the third-quarter filing.
“We have historically relied upon a limited number of franchised quick service restaurants and in-store delis to drive customer traffic,” Arko said. “As a result, we believe that our under-penetration of foodservice presents an opportunity to expand foodservice offerings and margin in response to changing consumer behavior.”
The new store format will be first introduced at seven stores in the Richmond area, according to the company. Arko did not identify the specific locations for the rollout.
In early 2024, Arko introduced a new line of “take-and-bake” pizzas sold for $4.99 to members of its rewards program. The private-label pizzas are sold at 1,160 Arko locations.
Arko operated 1,491 stores in about 30 states as of Sept. 30 under more than 25 brand names, including Fas Mart, 1-Stop, Li’l Cricket, Speedy’s and Handy Mart. Arko owns some of its properties and leases others from a group of landlords, including Getty Realty and Realty Income.