CST Shares Growth Plans

New acquisitions and store growth enhance the Texas convenience retailer’s focus on foodservice.

November 09, 2015

SAN ANTONIO – In the coming weeks, CST Brands will roll out the first of many convenience stores in Texas that feature an expanded food program, reports the San Antonio Business Journal, and open up to 65 new stores in the U.S. and Canada throughout 2016.

Kim Lubel, CEO of CST Brands, shared with the news source some of the changes the company is planning over the next year, noting that the main focus will be to grow its foodservice offer. By 2020, CST is expecting profitability to shift from fuel to in-store offers. “Fuel margins vary so widely and there's more stability from inside the store, which means our shareholders will be better off," Lubel said, adding, "Fuel is still an important cash producer for the company, but we want to build beyond that."

CST Brands, which purchased Nice N Easy Grocery Shoppes, is hoping to emulate the successful and well-established foodservice business the upstate New York convenience store chain will bring to the CST portfolio, such as take-home pizzas and other mealtime solutions. "It was a very well-received offering up there, and we're excited to bring it here," Lubel said.

To support its growing foodservice offers, CST is also expanding its footprint by boosting square footage, with larger-format locations to comprise more than 30% of its network by 2020.

On November 2014, CST Brands announced its acquisition of Georgia-based Flash Foods Inc., representing the largest network acquisition in CST’s history, which will open up a new region for growth in the Southeast.

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