Beyond the Hot Dog:
By Meline Beach
Prepared and prepackaged foods drive revenue.
There was a time not long ago when prepared foods at the local convenience store meant a rotating hot dog under a heat lamp and a cellophane-wrapped muffin. Today, grab-and-go and heat-and-eat foods represents one of the most dynamic and profitable categories in the C&G channel.
According to the National Association of Convenience Stores (NACS), foodservice, which includes prepared and prepackaged food, commissary items and dispensed beverages, generated nearly 39 per cent of in-store gross profit dollars in 2025, with prepared food accounting for average gross margins of approximately 55 per cent. In Canada, nearly half of all c-store shoppers bought prepared food at least twice a month, according to the 2024 C-store IQ National Shopper Study. Younger consumers are pushing that number higher with late-night purchases, treating the c-store as a default meal stop.
Food First: A retailer’s perspective
While the prepared and prepackaged food category has grown, so have expectations. Consumers expect freshness, quality ingredients, dietary considerations and value.
Rabba Fine Foods has been serving Toronto neighbourhoods since 1967, and quick meal options have been part of its DNA from the start. Rick Rabba, who leads the company, has watched the category evolve. “Prepared food has transitioned from an occasional indulgence to a daily necessity for the modern Canadian consumer,” he says. “The boundary between the traditional grocery store and the quick-service restaurant has largely disappeared.”
Rabba Fine Foods operates more than 30 marketplace locations across the GTA and prepares its food directly in-store. While the company sources premium components from trusted suppliers, final assembly and preparation take place inside each store kitchen, a hands-on model that Rabba says is key to its reputation for freshness.
Its prepared and prepackaged product offerings reflect dietary inclusivity and diverse global flavour profiles of the GTA communities they serve. Hot counters feature antibiotic- and hormone-free chicken and freshly prepared shawarma, alongside daily selections of fresh sandwiches and sushi. Refrigerated grab-and-go include fresh salads and high-protein snack boxes paired with veggies and hummus or cheese and nuts. Heat-and-eat dinner trays, frozen entrees and shelf-stable snacks ensure options are available at any hour.
“Our packaging is selected entirely for portability, whether it is an easy-to-handle wrap, a secure single-serve salad bowl, or a microwave-ready dinner tray,” says Rabba. “We position our pricing to offer a compelling, high-quality alternative to traditional quick-service takeout.”
Peak freshness is maintained through operational discipline, including inventory control and product rotation. Clear labelling, precise date coding and allergen declarations are supported by food safety specialists and rigorous internal auditing.
The company’s growth strategy is focused on deepening its existing locations rather than expanding square footage, investing in Rabba Kitchen layouts, expanding refrigerated merchandising space and integrating fresh meal options with digital delivery platforms to serve customers around the clock.
“Success in this space belongs to those who can deliver the speed of a drive-thru combined with the care and quality of a home-style kitchen,” says Rabba. “That is the standard we hold ourselves to every day.”
Supplying the Channel: A manufacturer’s perspective
For c-store operators without a kitchen or the ability to prepare food in-house, a good supplier relationship is everything. Turnkey support goes beyond the food itself, covering category management expertise, planogram support and tailored product development.
Classic Group of Companies is a Canadian manufacturer supplying both independent and franchise c-store operators under its own brand and through private label. “The bar for C&G has risen with servicing the highest quality but also providing a shelf-life that accommodates varying demands and requirements across different stores,” says Joseph Belcastro, general manager of Classic Group. “Our geographical landscape is so large and, when servicing the masses, we’ve had to take several factors into consideration when reviewing opportunities.”
The company distributes primarily through Core-Mark, with direct-store delivery available where feasible. Its top-selling products for on-the-go eating include egg salad sandwiches, buffalo chicken wraps and assorted subs, with salads and veggie and fruit cups spiking in summer months.
Belcastro notes that product development has had to adapt. “We’ve had to be much more nimble and less traditional in our approach,” he says, adding that menus have changed significantly to accommodate evolving consumer needs.
The company’s portfolio spans gluten-free, vegan and halal options, with a menu diverse enough to accommodate shifting consumer demands. Classic Group regularly reviews products and encourages retail partners to consider less conventional items as a way to reach new consumers.
“We’re seeing that quality does matter and there’s much more awareness about food through the C&G channel,” says Belcastro. “The traditional consumer still exists, but tastes have changed and having a consistent variety of products available helps to keep customers engaged and excited.”
Belcastro adds, “We try to view our products through the eyes of the consumer. Quality, presentation, and consistency matter the most to us. The key to build a strong program is maintaining that quality so the transaction becomes repetitive and trusted by the customer. We’re always looking at how we can increase our shelf-life and maintain the same quality and consistency that we’ve been able to provide for years.”
On the category management side, Classic Group works directly with category managers to provide support and planogram guidance, or reinvigoration when required. The company also has promos with some supplier partners and can provide digital and print marketing.
What C&G Retailers Need to Know
Grab-and-go is gaining traction. For the first time, the 2024 C-store IQ National Shopper Study shows packaged, refrigerated items outselling made-to-order. The category fits the way busy customers eat, and dedicated grab-and-go space is becoming a baseline expectation for c-store operators.
Price, value and taste all factor into the purchase decision. The 2022 C-store IQ survey found that 46 per cent of Canadian c-store shoppers cited price and value as their top consideration, while 33 per cent prioritized taste. Variety and rotation keep customers coming back.
The prepared and prepackaged foods category is profitable, growing and well matched to meet the way busy consumers eat today. For c-store operators, the opportunity is real.
Meline Beach is a Toronto-based communications practitioner and frequent contributor to Convenience and Carwash Canada. In addition to freelance writing, Meline provides communications and public relations support to businesses across Canada. She can be reached at www.mlbcomms.ca.
