A pause in SNAP payments during the government shutdown has sharply affected small grocers, neighborhood convenience stores and the customers who rely on benefits. About 42 million Americans were impacted, and SNAP redemptions exceeded $96 billion in 2024; roughly 14% of those dollars were spent at smaller stores. Retailers with tight margins reported sales drops, reduced overtime for employees and increased demand at food pantries, highlighting SNAP’s role as local economic currency.
SNAP Payment Pause Strains Small Grocers — Neighborhood Stores See Sales Drop and Surging Pantry Demand
A pause in SNAP payments during the government shutdown has sharply affected small grocers, neighborhood convenience stores and the customers who rely on benefits. About 42 million Americans were impacted, and SNAP redemptions exceeded $96 billion in 2024; roughly 14% of those dollars were spent at smaller stores. Retailers with tight margins reported sales drops, reduced overtime for employees and increased demand at food pantries, highlighting SNAP’s role as local economic currency.
11:21 AM, 11/12/2025Economy
A pause in Supplemental Nutrition Assistance Program (SNAP) payments during the recent government shutdown has hit small grocers and neighborhood convenience stores hard, squeezing customers and businesses that operate on thin margins. Store owners, nonprofit distributors and food pantry operators report immediate declines in sales alongside rising demand for emergency food assistance.
Local stores hit quickly
Ryan Sprankle, who runs a three-store family grocery chain near Pittsburgh, said the interruption in SNAP payments has hurt customers and his business. "You can’t take away from the most needy people in the country. It’s inhumane," he said. "It's a lack of empathy and it's on all their hands."
The administration froze funding for SNAP at the end of October, affecting food access for about 42 million Americans. The U.S. Senate has approved legislation to reopen the federal government and restore SNAP funding, but the U.S. House has yet to act. Even if the government reopens, it is uncertain when missed payments will be restored.
SNAP as local economic currency
In 2024 SNAP recipients redeemed just over $96 billion in benefits, according to the U.S. Department of Agriculture. About 74% of that spending occurred at superstores and supermarkets (including chains like Walmart and Kroger), while roughly 14% was spent at smaller grocery and convenience stores that are often embedded in neighborhoods and more accessible to low-income households.
Etharin Cousin, former director of the U.N. World Food Programme and founder of Food Systems for the Future, emphasized that SNAP is more than a safety net: "SNAP isn’t just a social safety net for families. It’s also a local economic engine. SNAP benefits flow directly into neighborhoods, stores, regional distributors and community jobs." Most small grocers operate on slim profit margins — typically 1% to 2% — so any drop in sales is felt quickly.
Owners report falling sales and staffing pressure
Sprankle said his Kittanning, Pennsylvania, store relies on SNAP for about 25% of its revenue. As customers who fear the shutdown cut back — trading down to cheaper goods or turning to food banks — his business has reduced overtime and faces pressure to protect its roughly 140 employees. "They have families to feed, they have kids to buy gifts for," he said. "If I have to sell my truck, we won't be able to give Christmas bonuses."
Liz Abunaw, who opened Forty Acres Fresh Market in Chicago in September, said about 12% of her store’s revenue currently comes from SNAP. She recently witnessed a customer put back a full cart of groceries because she could no longer afford them without benefits. "SNAP is currency. I get money I then use in this economy. It's not a food box," Abunaw said. "The economic impact of SNAP is larger than the dollars spent."
Nonprofits and pantries feel the strain
Kanbe’s Markets, a nonprofit that places produce coolers in 110 convenience stores around Kansas City and supplies about 50 food pantries and soup kitchens, also reported immediate impacts. Founder Maxfield Kaniger said some convenience stores saw sales fall roughly 10% in the days after Nov. 1 when SNAP payments were missed. At the same time, pantries requested double or triple their usual orders.
Because Kanbe’s is distributing more free food than normal, it must buy additional produce quickly to refill coolers before items spoil — a costly and time-sensitive burden. "It should be enough that people are going without food. Period, end of sentence. People going without food is wrong," Kaniger said.
Babir Sultan, who runs four FavTrip convenience stores in Kansas City located in food deserts, said foot traffic declined about 8%–10% after SNAP benefits paused. He began offering $10 of free produce to SNAP recipients and has been helping other customers who are struggling. "If you’re in need, just ask, we’ll take care of you," Sultan said. "Everybody is affected whenever the customer is feeling the pinch."
Bottom line: When SNAP payments are delayed, the effect ripples through neighborhoods — reducing sales at small retailers, straining employee hours, raising demand at food pantries and putting additional pressure on local supply chains and farmers.
Reporting contributions credited to Associated Press staff in Detroit and Philadelphia.