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October 19, 2026
Vaeshnavi Kasthuril, MINT
19 October 2026
India’s quick-commerce boom is turning up the heat on grab-and-go convenience stores, leaving these chains struggling to stay relevant as doorstep deliveries become faster and easier. Caught between neighbourhood kiranas, large supermarkets and quick-commerce apps, these outlets face a tough battle for customers, with high rents and staffing costs leading to an existential squeeze.
The closure of all 31 remaining 7-Eleven stores in India on 30 September, following the end of its franchise arrangement with Reliance Retail, underscores the challenges of scaling the format. The chain entered India in 2021 and expanded to around 60 outlets at its peak. Its Japanese parent, Seven & i Holdings, said it would explore options for a long-term presence in India. The exit follows Godfrey Phillips India’s decision in April 2024 to exit its 24Seven convenience-store business.
The appeal of convenience stores lies in easy access to daily essentials, grab-and-go food and extended operating hours. But in India, kiranas and quick-commerce platforms offer many of the same products, making it harder for organized chains to justify the cost of branded outlets, staff and commercial rents.
“Convenience stores have only started really struggling after the launch of quick commerce,” said Devangshu Dutta, founder of retail consultancy Third Eyesight. Delivery platforms offer everyday products at customers’ doorsteps within minutes, reducing the need to visit a nearby store, he said.
A Redseer Strategy Consultants-Google report of 7 October found that quick commerce captures less than 5% of spending on monthly grocery stock-ups among occasional users, compared with 15-20% of spending on daily or immediate needs.
Convenience stores occupy an awkward position between large retailers and neighbourhood kiranas, Dutta said. Supermarkets can offer wider assortments and higher-margin products, while kiranas benefit from lower operating costs and can adapt quickly to local demand. Smaller outlets have limited space for products and higher operating costs per square foot than supermarkets, while average transaction values are lower.
For operators, the challenge is to find a model that can expand without allowing costs to erode margins. Aastha Alamast, co-founder of convenience-store chain The New Shop, said franchising is key to making the economics work.
“One of the key covenants of convenience retail that we know and understand is that it’s a franchise-led industry,” Alamast said. The New Shop initially ran 60-70 company-operated stores before a franchise-first model shift in 2022.
Setting up a new store costs less than ₹20 lakh, including capital expenditure and inventory, she said. The regular outlets typically span 600-800 sq. ft, while its Bengaluru flagship is about 2,000 sq. ft.
The company became profitable after opening about 110 stores and has remained profitable for three years, Alamast said. But raising capital has been difficult. Discussions with Indian venture capital firms often turned into questions about why the company wanted to franchise its stores. “Nobody really understood convenience retail,” she said, adding that the firm had raised money largely from American and Korean investors.
It is also trying to make its outlets destinations for beyond everyday shopping. “It’s a hangout spot. It’s a lifestyle store,” Alamast said. They also offer services such as courier pick-up, ticket booking and electric vehicle charging.
AMPM, another convenience-store chain, is taking a different approach after encountering problems with franchises. Founder Shubham Gupta said some franchisees skipped operating procedures, while other arrangements led to payment disputes.
“We are converting all our existing stores to company-owned, company-operated outlets only,” Gupta said. AMPM has 12 operational stores, with others under construction and more than 18 store pacts signed, he said.
The company plans to add local deliveries within 10-30 minutes once it reaches 50-100 stores. Licencing has also slowed expansion. He began researching the concept in 2012 and opened his first outlet in 2017 after working through regulatory hurdles.
Wellness Forever, a chemist chain, is betting on specialist service, rather than convenience alone. The pharmacy chain remains “pharmacy first”, said co-founder Ashraf Brian.
“Now, it is almost 60-65% would be coming from pharma. Thirty-five to 40% would be coming from non-pharma,” he said.
Quick commerce has prompted the chain to trim its food assortment after sales of products such as cold drinks, ice cream and ready-to-eat food fell. “Slowly, slowly, if you see the food items in our stores have been drastically reduced due to quick commerce,” he said.
Wellness Forever has expanded categories such as skincare, vitamins and supplements, where access to product advice can help differentiate a physical store from an online delivery platform.
Location and assortment will be critical to the format’s prospects, Dutta said. “Smaller formats can work depending on location and the kind of customers you cater to. Metro stations, for instance, are suitable for grab-and-go retail because people are in a hurry and are looking for products they can consume immediately. You have to get the assortment and location right, while keeping costs under control.”
The challenges have not deterred international players.
Japan’s Lawson plans to open five directly managed stores in Mumbai in 2027 and expand to about 100 outlets in India by 2030. This will test whether a different operating model can succeed where 7-Eleven struggled.
(Published in MINT)
