Circle K and Couche-Tard: Expanding the Convenience Frontier in Europe

Parent company, Canadian multinational Alimentation Couche-Tard, is one of the largest convenience store operators globally with more than 16,900 stores across 31 countries. Couche-Tarde is eyeing a stronger European expansion. After its failed bid for Carrefour, then one of Europe’s largest convenience store operators, in 2021, the group sought alternative acquisition partners. In early 2024 it added about 2,200 Total Energies sites across Germany, the Netherlands, Belgium and Luxembourg, boosting its network from roughly 3,000 to over 5,200 locations. Prior to the deal, Couche-Tard’s European network counted around 3,000 sites. The acquisition boosted that number by around 75%, lifting the total to over 5,200 locations. This marked the group’s entry into Germany and the Netherlands and became the largest European expansion in Couche-Tard’s history. In addition to its established operations in the Nordics and the Baltics this acquisition has marked a decisive step in Couche-Tard’s ambition to become a leading mobility and convenience operator in Europe.

High Margin Ambitions: Food and Merchandise Versus Fuel

Couche-Tard has made its food offer a strategic priority. Its “Fresh Food, Fast” initiative aims at transforming its convenience stores into destinations for high-quality, ready-to-eat meals. This program focuses on offering a variety of hot and cold food options, including sandwiches, pizzas, and snacks, prepared quickly to meet the needs of on-the-go customers. Additionally, Circle K has introduced value-focused meal deals to cater to cost-conscious consumers.

The company’s annual results highlight the growing strategic relevance of non-fuel revenues. Fuel continues to dominate total revenues, generating $51.0 billion (€47.8 billion) in 2024 across all regions, versus $17.5 billion (€16.4 billion) in merchandise and service (mainly food, beverages and tobacco) revenues in the same period. However, the gross profit margin from fuel with 11.4% remained comparatively slim to the 34.8% gross margin on the food & tobacco business.

With a clear strategic shift toward high-margin convenience and foodservice operations, Couche-Tard’s transformation of Circle K forecourts into food-to-go destinations is a core pillar of future growth and profitability, both globally and within the European market.

Circle K is transforming its petrol stations into full service convenience destinations with enhanced food to go offerings

At this Circle K highway petrol station, the operator prominently advertises its food-to-go offerings across large displays

Already at the pump, Circle K promotes its Extra loyalty program with visible incentives, including fuel discounts and food-to-go meal deals

The store interior reflects Circle K’s strategic shift: a modern, well-lit layout showcases beverages, snacks, convenience goods, and ready-to-eat options, reinforcing its evolution into a full-service food and convenience hub

Promotional signage above and inside the beverage fridges highlights key brands and meal deals, reinforcing the convenience and variety of the offer

On the shelf end snacks, soft drinks, and sweets are grouped under multibuy offers to encourage bundled purchases and increase basket size

Private labels under the Circle K ‘K’ highlight value for money in the impulse segment

Digital screens above the confectionery aisle promote time-limited multibuy offers

Circle K promotes apples and bananas as convenient, healthy snack alternatives in its food-to-go offer

The coffee station takes center stage in Circle K’s self-service area, combining hot drinks with sweet bakery and personalization options

Circle K uses the “5+1” multibuy deal signage to draw attention, even though all six pastries come in a single container, blurring the line between promotion and presentation

The “K Freeze” station positions frozen drinks as a playful, impulse-driven add-on to food-to-go missions, enhanced by digital promotions

The chilled ‘Svaigi un Ātri” (Fresh and Fast) grab-and-go section is central to Circle K’s “Fresh Food, Fast” strategy, offering meal components and multibuy deals for time-pressed shoppers

The convenience concept bridges chilled snacks and ready-to-heat meals

Circle K blends quick-service food with bundled snack and drink offers, enhanced by digital menu boards and loyalty incentives

Inspired by grocery retail’s checkout logic, Circle K drives impulse sales with a tightly packed confectionery and snack assortment

Circle K offers dine-in seating with a clear view of the forecourt, blending convenience with a modern café atmosphere