JANUARY | FEBRUARY 2014
DISASTER PLANNING for Survival in Today’s Marketplace CELL SALES C-stores take advantage of Mobile Phone Products and Services CHALLENGES AND SOLUTIONS for Modern Fuel Gauging
PM41670539
VIEW FROM THE WEST Alberta’s Proposed Tobacco Flavour Ban
Sylvain Blouin – Rock n Wash™
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Contents PUBLISHER Brenda Jane Johnstone bjjohnstone@convenienceandcarwash.com
EDITOR Kelly Gray editor@convenienceandcarwash.com SALES Cody Johnstone 416-838-4674 codyj@convenienceandcarwash.com Brenda Johnstone 204-489-5215 bjjohnstone@convenienceandcarwash.com
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Cell Sales From timecredit top ups to
battery chargers and shock cases C-stores are perfectly placed to offer a range
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DESIGN AND PRODUCTION Doug Coates, Edge Advertising Keith House, Ad Production EDITORIAL ADVISORY BOARD Ian Burton, PD McLaren Scott Findlay, Core-Mark Int’l Kim Hansen, MI Petro David Hoy, Peninsula Co-Op Andrew Klukas, WCSA Dave Watson, The Chamois & Convenience Store Ltd. CONTRIBUTING WRITERS Barbara J. Bowes David Dougherty Matthew Gottfried Kelly Gray Andrew Klukas Jillian Mitchell Pete Neil Jennifer Pedrizzetti Harry Peterson John Wiesehan Jr. CIRCULATION James Gordon subscriptions@convenienceandcarwash.com
WEBSITE www.convenienceandcarwash.com PUBLICATION MAIL AGREEMENT No: 41670539 Return Undeliverable Canadian addresses to: Circulation Department 543 Borebank Street Winnipeg, MB R3N 1E8
FEATURES 06 View from the West WCSA President Andrew Klukas speaks out on Alberta’s Proposed Tobacco Flavour Ban 11 Challenges and Solutions For Modern Fuel Gauging OPW’s Pete Neil discusses fuel technologies as they continue to progress and become more operationally inclusive. 17 Responsible Retail Governments are reviewing Canada’s liquor distribution landscape and C-stores want to offer their experience as responsible retailers of age restricted products 20 Cell Sales From time-credit top ups to battery chargers and shock cases C-stores are perfectly placed to offer a range of mobile phone products and services. 22 Snack Attack In an increasingly grab-and-go world, the traditional C-store delivers excellent solutions to on-the-go snacking needs. 28 E-Cigarette Update ‘Vapes’ are delivering billions of dollars in opportunity to C-stores. Are you getting in on the action? 30 Social Media Manitoba-based Amell’s Gas & Go makes sure its customers get the message 32 Speaking of Lotteries Manitoba Liquor & Lotteries shares some wisdom on ticket sales. 34 Good Hiring Strategies HR specialist Barbara Bowes looks at getting the right people for the job and asks why some business owners don’t connect the dots to ensure hiring success. 38 Loyalty Carwash Programs How much is enough? 43 Disaster Planning How you prepare for an unexpected event determines how quickly you are able to be back in operation. CONVENIENCE & CARWASH CANADA
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Publisher’s Message Hello and Happy New Year We wish you all an exciting and prosperous 2014.
The convenience, gas and carwash channels have all had their “issues” and as we move into this New Year, Convenience & Carwash Canada offers you information on the Liquor discussion that has been a background hum for the past few years. Retailers across Canada are interested in how our government will change – or not – the laws governing liquor sales in convenience outlets. We’re offering you some insight into this national debate and welcome your comments for publishing in follow-up issues. Also on the legislative front the WCSA are asking all retailers across the west to “make their voices heard at the Legislature” in 2014 regarding the Proposed Tobacco Flavour Ban. It’s time to speak up! As we move into 2014 retailers are keen to grow sales and to learn new ways of doing business. This issue we are featuring an article on Social Media and how a small rural retailer in Manitoba has increased sales exponentially using this e-tool. If your store is reaching new customers using Social Media, we’d love to hear your story too. Your success is my business, and as always my open door policy to your valuable feedback remains not only intact, but stronger than ever. If there is a topic you’d like to have featured or if you have questions or perhaps you need an introduction please feel free to email me at bjjohnstone@convenienceandcarwash.com In this vein we have reached out to readers for their predictions and forecasts for 2014. Here is a sampling of some of the views of your associates and colleagues.
4 January | February 2014
In BC, Ruth Emslie of the Sparwood ESSO noted that 2013 was a bit of a blur in the early months. But, she says, “Things are getting back to normal– as normal as they can be. We had a very busy year at the store, mostly local workers getting their lunches, smokes, lotto and gas. Our emphasis is still on quick and friendly. Our staff is very knowledgeable about our store offerings and this pays off. Our customers want their lunches fresh, their coffee hot, their drinks cold and the shelves stocked and we seemed to have managed to do this. Out on Vancouver Island, Peninsula Co-op’s Petroleum Operations Manager Tom Humphries suggests the chain saw a good year in 2013. However, he suggests there are challenges to be mastered. For example, in foodservice they are still not seeing sales develop as strongly as the US model where seven per cent of consumers look for a QSR meal at a C-Store. “There is a Canadian cultural block here we can’t get through. American white and blue collar workers will think nothing of stopping at a C-Store QSR for a lunch or dinner meal, at the present time that is not going to happen in Canada.” In Hot/Cold Beverages Humphries sees Fair Trade/Certified Organic coffee continuing as a consumer preference. “People want the peace of mind knowing any purchase they make will support sustainability,” he says. More, he suggests that the Starbucks/Second Cups/Horton’s will always have the competitive advantage of a full serve coffee offering. “There is an emotional experience there that a self serve coffee offering in C-Stores can’t compete with. We have to up our game on the execution side. C-Store coffee is good in the morning when it is fresh and hot,
but few consumers expect us to serve a good cup at 3:30 in the afternoon. “Fresh, Healthy food choices will continue to be our future. We live in a world of label readers where even teenagers are checking calorie and fat content in food items. Yogurt, fresh fruit, protein bars need to be front and centre for consumers entering sites so that we can evolve away from the traditional “Convenience Store” stereotype of “nothing but chips and pop”. Marketers that can figure this out in the coming years will reap the sales benefits. Governments are rallying behind this as well. For example, BC is rolling out a “Healthy Choice” program in 2014. In Saskatchewan Mr. Ahmad of Wilkie ESSO and Service is confident the western provinces will continue to grow and as the economy moves forward so too will the fortune of C-stores. “I personally feel with the recent acquisition of my distribution company with expansion in the fuel supply business in the mid west US there are optimistic signs of strong economic growth in coming months. Once again western provinces continue to grow and expand in retail C-Store, fuel and carwash business,” he says. According to Peter Kilty of Parkland, Canada’s largest independent marketer and distributor of fuels, with nationwide network of sales channels for retail, commercial, wholesale and home heating fuel customers, the industry is going to continue to be under pressure from several fronts. Here he sees the expansion of non-traditional competitors such as drug stores, grocery stores, and big box retailers coming into the convenience and gasoline space. In Food Service Kilty suggests operators will continue to find a growing area for business with time starved consum-
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ers looking for quick, convenient and quality alternatives to help them meet the needs of their families and themselves. “This is also a great opportunity for our industry to differentiate our offer to the consumer, especially when delivered with great customer service. “Hot and Cold beverage offerings in our sector are also key and both need to be differentiated inside the store. Formal programs are becoming the norm and almost table stakes in a strong beverage offering. I believe all C-Stores need to have a well-displayed and properly stocked branded Hot Beverage program – even if it is simply a Keurig offering. “I believe Specialty beverages (sport, vitamin, energy etc.) will continue to be a strong area of growth for our industry with new products and brands being introduced to make this an exciting business to be in and prosper from.” In the petroleum sector – sales, equipment, fuels – there will be continued pressure on volume over the next few years. This will be felt more so in Eastern Canada given the strength of the Western economy. “New entrants, stronger offers and pressures on demand resulting from high prices and increased taxes will all put volumes at traditional operations at risk,” he says. Tobacco – regular, contraband, flavored, cigars etc. – will continue to be an area of huge focus during 2014 with pending restrictions being placed on both flavoured product lines and electronic or e-cigarettes could have a big impact on this category. “I also worry about further tax increases driving consumers away from these products,” says Kilty. Brent Morris, President of Alberta chain Gas King is hoping for another great year in 2014. “By the start of Q2
renovations at Eastside Gas King in Lethbridge should be in full swing. We will be doing an extensive renovation at this location and, if all goes according to plan, will be adding 1-2 new branded food service options. We are hoping to have these exciting food service franchises open in the summer of 2014. “In late 2013 we added a new stateof-the art automatic car wash at Lakeview Gas King in Lethbridge so the focus in early 2014 will be learning the full extent of what that unit can do & then doing a full marketing campaign,” he says. The upshot of all these comments is a buoyant mood for business as we move into the New Year. Here’s hoping the celebration lasts.
Brenda Jane Johnstone Publisher
February 18-20, 2014 WPMA National Convention & Convenience Store Expo Mirage, Las Vegas www.wpma.com/national-convention 1-888-252-5550 March 18 –19, 2014 Carwacs Toronto Toronto, ON http://toronto.convenienceu.ca March 31 – April 2, 2014 International Carwash Show Chicago, IL www.TheCarWashShow.com May 14, 2014 NACDA Ontario Children’s Charity Golf Classic Eagle Nest Golf Club Maple, Ontario www.nacda.ca June 3 – 5, 2014 UNITI expo Stuttgart, Germany www.uniti-expo.com June 10 & 11, 2014 NACDA Maritime Children’s Charity Golf Classic Fox Creek Golf Club Dieppe, NB www.nacda.ca July 3, 2014 WCSA 5th annual Charity Golf Tournament Glen Eagle Golf & Country Club Cochrane, AB wcsagolf@convenienceandcarwash.com andrew_klukas@shaw.ca 204-489-4215 August 28, 2014 NACDA Quebec Children’s Charity Golf Classic Hillsdale Golf & Country Club Mirabel, QC www.nacda.ca
CONVENIENCE & CARWASH CANADA
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Alberta Retailers – We Need Your Help! SPEAK OUT NOW ON THE PROPOSED TOBACCO FLAVOUR BAN As I’m sure many of you have heard, the Alberta Government the opposite result. As we learned from the recent federal has recently passed legislation to ban all flavoured tobacco flavour ban, an overreaching product ban will lead to an inproducts. This will have an impact on your business. However, crease in contraband (illegal) tobacco sales. Youth will find The government has yet to decide which products to exclude ways to access banned products as it will increase activity from the ban. It is critical that retailers speak out. It will make in the illegal tobacco market. Contraband (illegal tobacco) a difference. products are sold to anyone, regardless of age. The proposed ban targets established flaThe goal of the flavour ban is to reduce toON BEHALF OF THE voured products that are legally consumed by bacco consumption by youth. Age testing by reWESTERN CONVENIENCE adults. The lost sales resulting from the inclusponsible retailers has proven to be a very effecSTORES ASSOCIATION, I sion of these established products will have very tive way to prevent youth smoking, and retailers AM ASKING YOU TO MAKE negative consequences for the industry. obviously take it seriously. Since 1999, retailer YOUR VOICES HEARD AT THE LEGISLATURE. Our Association has requested that the Alcompliance with age testing requirements has increased by over 15%-from 68% to 84.3%. Dur- POLITICIANS NEED TO KNOW berta government increase retailer training, THE NEGATIVE OUTCOMES better enforce youth possession laws, and introing the same period, youth smoking declined OF THIS LEGISLATION AND duce stronger measures to fight illegal tobacco. from 27.2% to 10.9% – a 60% reduction! HOW IT WILL IMPACT YOUR We now need you to speak out about what this That means retailers are an important part BUSINESS. AND WHAT of the solution to ensure minors don’t access HAPPENS IN ALBERTA MIGHT means for your business. tobacco products. Product bans tend to have ECHO IN OTHER PROVINCES.
WHAT YOU CAN DO:
Write or call Minister of Health Fred Horne and Associate Minister of Wellness Minister Dave Rodney today and make your voice heard about what this means for your operations. You can also find your MLA here and contact them individually: http://www.assembly.ab.ca/lao/mla/mla_help.htm
TO CALL OR EMAIL
TO WRITE
Fred Horne, Minister of Health and Wellness: T: (780) 427-3665 E: edmonton.rutherford@assembly.ab.ca
Fred Horne, Minister of Health and Wellness: Post Office Box 1360 Station Main Edmonton, AB Canada T5J 2N3
Dave Rodney, Associate Minister of Wellness: T: (780) 415-0482 E: calgary.lougheed@assembly.ab.ca
Dave Rodney, Associate Minister of Wellness: 418 Legislature Building 10800 97 Avenue Edmonton, AB Canada T5K 2B6
6 January | February 2014
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Alberta Bill 206
May Threaten Tobacco Retail Sales SINCE 2007, SPECIAL INTEREST GROUPS IN CANADA HAVE BEEN AGGRESSIVELY LOBBYING CANADIAN GOVERNMENTS TO BAN FLAVORS IN TOBACCO PRODUCTS. THE ARGUMENT PRESENTED BY THESE GROUPS IS THAT NO ADULT WOULD EVER SMOKE FLAVORED TOBACCO PRODUCTS AND SO THEY ARE CLEARLY TARGETED TOWARDS KIDS. THE CLAIM IS THAT MORE KIDS IN CANADA WERE STARTING TO SMOKE AS A RESULT OF THE FLAVORS AND THUS A BAN ON THESE PRODUCTS WAS NECESSARY.
8 January | February 2014
Suppliers within the tobacco industry however believe these arguments are not supported by actual facts. While kids may have illegal access to these products, they also have access to alcohol, illicit drugs, and other non-flavored tobacco products. In fact, more kids consume non-flavored tobacco products in much greater numbers and quantities. The federal government’s own research has also indicated flavored tobacco products are a legal-age market-driven product. According to Luc Martial, the VP of Government Affairs for Casa Cubana, “The vast majority of what has been and is being said about flavoured tobacco products and the industry is tantamount to an outright lie.” Martial holds a senior position within Casa Cubana, a private company that has imported and distributed cigars, tobacco accessories, and convenience products since 1998. Martial has also made numerous senior postings within Canada’s anti-tobacco groups, the national health community and Health Canada (Tobacco Control Programme). Martial goes on to state, “Proposed government bans on flavoured tobacco products and existing legislation are not founded on any fair or accurate research data. They are purely anti-business in nature and not about kids or health or accountable tobacco control policies.” Martial is not alone in his criticism of this legislation and numerous other issues have been raised by the tobacco industry. Luc Dumulong the Vice President of Sales and Marketing for Distribution G.V.A. believes a ban on flavored tobacco would most certainly affect retailers. According to Dumulong, tobacco product sales represent between 35% and 50% of a retailer’s sales and forbidding them to legally offer to adult consumers a product of their choice will have a negative impact. Dumulong has surveyed several of his retail customers and estimates a loss of 10-15% is likely to be the final impact. He also believes that small, family operated stores will be affected even more. His concern is that stores barely making ends meet now may be forced to close. Attention by the special interest groups appears to be focused on cigarillos or “little cigars.” These are defined as cigars that weight 1.4g or less and/or have a cigarette filter. In 2009 federal legislation was introduced in bill C-32 that came to prohibit the use of some flavors in some tobacco products. The result of this bill was that as of April 2010, little cigar products must be sold in packages of 20 and as of July 2010 certain flavors in little cigars are banned. After 2010, suppliers were able to continue selling flavored tobacco products but only after making design modifications to be in compliance with C-32. Despite the modifications however, health organizations, special interest groups and some politicians sustained media campaigns that alleged
the law was being abused and tobacco companies were circumventing the new legislation to the detriment of Canada’s youth. As a result, media attention on banning all flavors in tobacco products has increased dramatically and new legislation is being introduced. Thus far, attempts were made in Newfoundland, PEI, Nova Scotia, New Brunswick, Ontario, Quebec, British Columbia and Alberta. New Brunswick introduced legislation but never proclaimed it. Ontario and Saskatchewan introduced legislation but it simply mirrored the federal legislation C-32. Tobacco suppliers feel the most immediate and serious threat to banning flavors is Alberta Bill 206. This emerging legislation was founded in response to Alberta health groups’ efforts and recommendations. Bill 206 was introduced and passed the first reading in December 2012 and passed a second reading in May 2013. The concern among suppliers is that the legislation in Alberta would create the foundation and leverage for current similar interests in Ontario, Saskatchewan, Québec, and the federal government. According to Dumulong there are many questions that have not been answered or addressed by the Alberta government. He questions why small business owners and not only the big cigarette manufacturers have not at least been consulted in order to draft this legislation and why there has been no substantial evidence to support that such a drastic measure will have any real impact on tobacco smoking. He also points out that banning all flavors in all tobacco products will only direct smokers back to cigarettes and also fuel more organized crime and interprovincial tobacco contraband. He wants to know who will bear the increased costs for policing this policy due to increased criminality. To address the real issue of keeping kids away from tobacco products, Dumulong states, “I have yet to see a tobacco contraband network asking for proof of age! The best way to secure and control underage accessibility to tobacco products is to work with the Alberta retailers. And for those unscrupulous ones selling to under aged, a strict application of the current laws.” Martial also questions why there seems to be no clear explanation by the special interest groups and politicians as to why the rampant use of flavors in a much wider-variety and greater quantity of alcohol products approved for sale by Canadian governments everyday was okay, but flavors in tobacco were not. Both Dumulong and Martial agree that the Government has the obligation to be transparent and accountable to Albertans, not only to the anti-tobacco lobby groups. For now, Bill 206 remains at the Committee of the Whole stage and as of October 2013 there have been no further updates.
TOBACCO PRODUCT SALES REPRESENT BETWEEN 35% AND 50% OF A RETAILER’S SALES AND FORBIDDING THEM TO LEGALLY OFFER TO ADULT CONSUMERS A PRODUCT OF THEIR CHOICE WILL HAVE A NEGATIVE IMPACT.
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Challenges and Solutions for Modern Fuel Gauging
AS FUEL TECHNOLOGIES CONTINUE TO PROGRESS AND BECOME MORE OPERATIONALLY INCLUSIVE, SOLUTIONS TO ONCE-COMPLEX FIELD CHALLENGES ARE BEGINNING TO APPEAR
With so many challenges thrown at today’s modern fuel-site operator, it can be hard to know exactly where to begin. Operational costs have soared in recent years, as have fuel prices. Inventory control can also be a tough task, depending on specific market variations, location, and even supplier or logistical complications. The list never ends; however, some of the very real problems that face fuel-center operators, thanks in part to new technologies, have very real answers. Protecting fuel levels and transport is paramount in the ef-
fort to curb product loss and maintain steady and productive profit lines. Still, the untimely malfunction of fueling equipment that is relied on every day can impact inventory control and even jeopardize the safety of the operation and its patrons. One of the keys to an operation’s profitability lies mainly in its ability to safely and efficiently account for, protect and transport fuel from “point A” to “point B.” In order to do this and, in turn, drive profitability, fuel-site operators must rely
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on quality fuel management systems to streamline important is exceeded or if the gauge’s maximum line capacity is operations, prevent theft, account for fuel levels and tank surpassed. Incorrect site characteristics that are entered issues, and control the supply of fuel at a very high level of during tank-gauge configuration can also lead to false pass efficiency. testing. Recent innovations in tank gauging have Situations like this can arise when tank IF IDENTIFIED BY not only worked to alleviate the pains ingauges unknowingly submit what is comREGULATORS, ALLOWING monly known as a “false positive,” or a leakvolved in basic operations and functionalFALSE PASS TEST ity, but have also succeeded in driving down test result that incorrectly indicates that a RESULTS CAN LEAD costs. Many system developers have acfuel site is in complete environmental comcomplished this by moving to a more robust pliance. These test results can often lead TO INCREASED TEST communication platform for their tank-gauge SCRUTINY ACROSS ALL to less-than-optimal operational output for units, including standard options for various OF AN ORGANIZATION’S managers, including increased product loss, connectivity methods. Wi-Fi, Ethernet, USB inventory and reconciliation data, SITES, TEMPORARY SITE inaccurate and even satellites are now common methand even prolonged leaks that make the site SHUTDOWNS, BEING ods of communication. Better programming an environmental hazard. FORCED TO REPLACE and software has increased these applicaThe accuracy of these tests is usually diERROR-CAUSING tions’ overall usability in customer-friendly rectly dependent upon a mathematical platforms that have grown tremendously over EQUIPMENT, AND EVEN equation and the assumption that these the past few years. measurements and inputs are accurate. UnSEVERE FINES AND less exact line lengths, types and diameters PENALTIES THAT CAN BE WHEN A PASS IS NOT A PASS known, pressure-decay line leak testing LEVIED RETROACTIVELY are Aside from maintaining profitability, fuel-site methods cannot perform properly. If a false operators must develop a sense of trust with fail is generated, system downtime is expetheir tank-gauging equipment. A challenge rienced. On the other hand, if a false pass is most operators are faced with is dealing with “False Pass” generated, then the site is no longer compliant and leaks are conditions. Generally, there are four main causes and types unknowingly taking place. of False Pass conditions. One of the more familiar causes If identified by regulators, allowing false pass test results is if a tank gauge’s maximum certified monthly throughput can lead to increased test scrutiny across all of an organiza-
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minimizing downtime and ultimately the amount of profit lost. Using trouble-free equipment is ideal but means very little if that equipment offers limited capabilities. Any fuel facility that operates at all hours requires a leak-detection method that can operate effectively with minimum disruptions to pumping activity. Tank-gauge systems have traditionally offered a method of leak detection called “static leak detecto ensure that a fuel operator’s sites SITESENTINEL® INTEGRA tion” remain within compliance. FAMILY OF AUTOMATIC However, whatever equipment you deTANK GAUGE (ATG) cide on, be mindful of systems that can SYSTEMS. THESE GAUGES over-promise and under-deliver. Most tank-gauging equipment is not certified USE VOLUMETRIC for leak-detection purposes, or have cerLINE LEAK DETECTION tification limits on tank size and monthly TECHNOLOGY, WHICH throughput levels. This means that even MEASURES ACTUAL LEAK with this equipment installed, the gauges RATES. will operate as if the results they provide are accurate and certifiable, even though MARKET SOLUTIONS they are not. OPW Fuel Management Systems, Hodgkins, The other side of inventory control in fuel operations is IL, has recognized the tank-gauging challenges faced by fuel-site operators and has responded with the SiteSentinel® distribution of the fuel. In conjunction with their responsibiliIntegra family of automatic tank gauge (ATG) systems. These ties to inventory, fuel-site operators must also be able to eftion’s sites, temporary site shutdowns, being forced to replace error-causing equipment, and even severe fines and penalties that can be levied retroactively if prior faulty testing is proven. And that’s the good news. Because ignored or non-identified false pass readings can lead to some very serious and potentially environmentally threatening conditions. However, when deciding on a specific tankgauge system to outfit a fueling operation, how do fuel-site operators know which one will be the smart, economical, accurate and dependable choice to keep fuel levels well maintained and monitored? The answer is often found by looking no further than a console that provides complete tank monitoring, inventory management and environmentalcompliance testing through the incorporation of the latest computer technology, which allows users to view data remotely from anywhere in the world via Internet connection.
gauges use Volumetric Line Leak Detection technology, which measures actual leak rates. This prevents the gauges from issuing false line passes due to user error or manipulation; saving time, money and resources. The consoles in this family of ATGs have been designed to lower installation costs by reducing the number of wires that need to be run to the probes, sensors and leak-detection devices that are connected to its internal I.S. module. It offers a complete site solution that ensures regulatory compliance at all times. In addition, all devices are automatically detected and configured by using the touch-screen interface, making it one of the easiest ATG systems in the industry to install, configure and use. Other tank gauges on the market use a pressuredecay equation and user-provided site data to calculate leak rates. If any of the entered data is incorrect, any leak-test results will be invalid, regardless of their pass or fail status. In addition, when using outdated tank gauges, operators who had existing devices that needed to be integrated often were required to upgrade their entire system, driving costs up even more. Expensive upgrades to internal hardware would also be needed if operators chose to implement system expansions and updates. The overall configuration of fuel-control systems has become menu-driven, focusing on simple tasks and saving more time. These days, even the most affordable systems provide expandable memory, allowing the fuel-site controller to store a virtually unlimited number of transactions. Ease-of-use and installation are both important when dealing with a fuel-control system, and the emergence of affordable turnkey systems has made both achievable. Advances in technology have made field-upgradeable software a standard feature, eliminating expensive upgrades and
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ficiently control and accurately account for fuel consumption. Automated fuelcontrol systems can provide these capabilities effectively and cost-efficiently in today’s fuel-site operations. The following are some functions every reliable tank gauge should perform: • Reinforce that a site is installed and operating correctly • Know that any alarms provided by the system are accurate • Ensure continued environmental compliance They should also protect against problems like: • Increased loss of product • Inaccurate inventory and reconciliation data • Prolonged leaks that render a site an environmental hazard
16 January | February 2014
CONCLUSION
Proactively, much can be done to address the challenges facing teams of fuel site operators. As technology continues to develop around this petroleumbased economy, expect to see more of the same. These advanced tank-gauge options enable retailers to create a system of comprehensive fuel information management that can efficiently handle the details of environmental compliance. Advanced functions like centralized site management, precision inventory reconciliation and loss-prevention analysis provide a higher level of fuel-management capabilities. Higher prices, tougher regulations and growing fuel demand are all expected on the horizon. Being able to withstand the natural ebb and flow of the fueling business and how well each retailer can embrace next-generation tank-gauging systems will be paramount to long-term success.
ABOUT THE AUTHOR:
Pete Neil is Product Manager – Tank Gauge for OPW Fuel Management Systems and can be contacted at PNeil@opwfms.com. OPW Fuel Management Systems specializes in the design and manufacture of tank gauges and automated fuel control systems. OPW Fuel Management Systems is a business unit of OPW, the leader in commercial and retail fueling solutions worldwide. You can contact OPW Fuel Management Systems at +1 (708) 485-4200 or www.opwglobal.com.
by Kelly Gray
Responsible Retail Convenience Liquor
Canada’s liquor laws are getting CANADA’S C-STORE a bit of a shake-up. Most OPERATORS WANT would agree that any change in our collection of arcane and TO OFFER THEIR ridiculous beverage alcohol EXPERIENCE TO regulations has to be positive. SELL LIQUOR IN Indeed, Canada is home to some of the world’s most restrictive NEIGHBOURHOOD and paternalistic liquor laws. STORES. Now it appears there is hope GOVERNMENTS ARE with provinces looking into new LOOKING AT THE forms of retail distribution. Here in Canada the federal OPTIONS. government stipulates each province must be the initial importer or distributor of beverage alcohol products. It is then up to each province to write the laws governing the distribution and consumption of these products. Each province operates an authority that imports and distributes as well as maintains a staff of inspectors who are responsible for enforcement. And, while Quebec has long offered beer and wine at private stores and Newfoundland now sells local brew in C-stores, it is really Alberta that has truly broken the mould offering an example to other provinces. Back in 1993 and the Ralph Klein government, the province decided to privatize the sector and shutter its liquor outlets in favour of a plan that would have private sector stores under government distribution. Alberta would make its money on sales tax and wholesale mark up. What transpired was a revolution in thinking that lowered prices, increased employment and increased revenues to the province from reduced operational expenses. Consider the changes. Before privatization the government operated about 200plus liquor stores with the private sector running 65 full-product outlets and 530 hotels selling beer for off sale. Since 1993, private sector participation has climbed to 1,982 outlets in total. These stores have made selection available with an expansion of liquor SKUs up from 2,200 in 1993 to over 19,000 today. Employment in retail liquor stores also jumped with operators now hiring three times the number of staff they had prior to privatization. True, the wages paid to workers declined in an environment that was more akin to traditional retail models than those found in the standard government liquor store and its unionized staff. Still, private industry opened dedicated wine stores with knowledgeable personnel and Calgary is home to more than one location where patrons can discuss the finer points of world leading whiskies with any of the workers. More, Albertan’s got better opening hours, greater convenience thanks to more locations and, with more competition came lower pricing. In fact few jurisdictions in Canada can match Alberta pricing. All this said, Alberta does not allow convenience stores to market beer, wine or spirits.
CONVENIENCE & CARWASH CANADA
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It is only Quebec and Newfoundland & Labrador that have this distinction. Since forever, Quebec has been home to the ubiquitous dépanneur – a C-store that is the place for not only bread and milk but Laurentide and Veuve Clicquot as well. These stores are open early to late and are on corners everywhere in the province. Behind the counters are workers who check for ID, just as they do for tobacco products, and watch for problem consumption issues. In fact, Canada’s C-store operators have proven themIN THE CCSA STUDY selves to be the toughest gatekeepers 87.3 % OF UNDERAGE of age-restricted products following seCUSTOMERS WERE cret shopper testing to determine sales DENIED TOBACCO of cigarettes to minors. In studies done PRODUCTS BY A C-STORE by Health Canada over 10 years and in WHILE THE BEER STORE Ontario by the Canadian Convenience Stores Association (CCSA), the counDENIED JUST 80.7 % try’s C-stores proved themselves to (BEER/TOBACCO) AND be the best at keeping age-restricted THE LCBO (LIQUOR) products out of the hands of minors. In REFUSED 74.6%. the CCSA study 87.3 per cent of underage customers were denied tobacco products by a C-store while The Beer Store denied just 80.7 per cent (beer/ tobacco) and the LCBO (liquor) refused 74.6 per cent. Interestingly the LCBO only carded 40.5 per cent of young consumers in the study compared to 73.9 per cent at convenience retailers. In the more inclusive Health Canada report that looked nationally to more than 5000 stores of which 87 per cent were from the convenience sector, more than 84 per cent were compliant in not selling to underage customers. “It makes good sense from the perspective of consumer choice and convenience,” says Mike Hammoud, president of the Atlantic Convenience Stores Association (ACSA). “There’s a pretty good link between selection, accessibility, convenience and sales. And c-store retailers are already heavily regulated and experienced in the sale of age-restricted products like lottery and tobacco,” he says. Hammoud is currently lobbying the New Brunswick government to look hard at allowing C-stores to market beer and wine. He looks at the models in both Quebec and Newfoundland as well as those in the US and sees a benefit for the government and local business as well as to consumers who would enjoy greater convenience. In Ontario, Mac’s is hoping to drive greater convenience for its shoppers if the government there will see its way to allowing privatized sales of beer and wine. The Mac’s chain is owned by Alimentation Couche-Tard Inc. of Montreal, one of the country’s most experienced marketers of beer and wines. Couche-Tard not only sells from locations in Quebec, but as one of the largest convenience store groups in the world, the company offers alcohol products at its US sites as well as those in a wide range of other countries. In Ontario Couche-
18 January | February 2014
Tard’s Mac’s division proposes to make a $54 million investment in 27 new stores hiring close to 150 new staff if the province green lights convenience store liquor sales. BC’s recent announcement that a review of liquor policy would likely see the province’s grocery stores take on new beer and wine skus has C-store lobbyists scratching their collective noggins. The province has been undergoing continual review of its liquor policy since 2002. Much has loosened up with the province now home to some 700 private stand-alone beer and wine stores. Hopes had been that the current round of talks would cede some of the market to BC’s convenience industry but the government’s point man, Richmond MLA John Yap, saw the marriage of convenience and liquor as a bad thing. “When this topic comes up in my meetings with health, safety and law-and-order advocates, the question will surely become that already we see 30 per cent of late-night attendees at a typical BC emergency department report alcohol consumption in the six hours prior to their injury or illness,” Yap said. “If we make it more available for the sake of convenience, will we see rates like this rise?” he asks. The question is really moot, because with grocers now offering longer hours and seven-day service the availability would be little different from what one might find at a C-store. However, C-stores would offer more locations that are staffed with personnel trained to keep age-restricted products out of the hands of minors. More, the province’s private liquor outlets note that already there is either private or provincial liquor store with-in 100m of most grocery stores in the province. Now with major players like Costco and The Pattison Group getting the go ahead, suggestions are that some private stores may close and employment may suffer as grocers ramp up selection. Behind the move to add liquor to Canada’s Cstore selections is a need by retailers to counter the declines in key areas. Already stores are seeing sales of tobacco and related products, goods that are responsible for nearly 30 per cent of sales, begin to suffer as Canadians smoke less. Other traditional products such as soft drinks and snack foods are also being impacted by ‘nanny state’ policies that are working to push sales downward. “Canada’s C-stores are an integral part of the business and social fabric of this country,” concludes Canadian Convenience Stores Association President Alex Scholten. “We are the stores right in neighbourhoods and are a key part of every community. With governments impacting in so many ways on our businesses I believe it is incumbent on them to work together with us for positive change. Altering the regulations so that Canada’s convenience retail industry can market beer and wine would be a great place to start.”
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by Kelly Gray
CellSell FROM TIME CREDIT TOP UPS TO BATTERY CHARGERS AND SHOCK CASES C-STORES ARE PERFECTLY PLACED TO OFFER A RANGE OF MOBILE PHONE PRODUCTS AND SERVICES. Canada loves its cell phones. We are among the most wirelessly connected peoples on Earth with more than 20 teleco’s delivering service to some 31.02 million subscribers in both pre-paid and post paid plans. Impressive market penetration indeed given the fact that Canada’s population stands at just above 35 million people. These numbers reveal a market that services virtually every Canadian over the age of 8. Where do C-stores come into the equation? Last year we utilized prepaid wireless plans for 3.7 million phones. True, the numbers for prepaid wireless are declining by roughly 9 per cent in favour of contracted post-paid
20 January | February 2014
formats. Still, the dollars are there in large enough quantities for operators such as Petro Canada and 7/Eleven to offer their own stand alone pay-as-you-go programs. “When it comes to cell phone products you really have to know your customer,” says Jerry Schmidt, an independent operator who runs a single C-store in Toronto. “Pre-paid is perfect for kids and people who have credit issues or those who want to keep phone costs in line.” Schmidt tells that he considered getting into a program where he could team with a service provider to offer prepaid cell. The neighbourhood in which his store is located is
a lower income community with a high population of seniors phones and plans already. You have to look at other options and students. “I think we are a perfect fit, but it was hard to such as PIN sales and sales of accessories if you want to get get a program going,” he says noting that he decided to just the best bang for your footprint buck,” he says. offer PIN sales where customers can buy top up credits for At Toronto-based Display Distribution they are making soltheir in- hand prepaid phones. “I make a small amount per id market inroads with a range of floor displays that include transaction, but it adds up and the sales are easy.” items for mobile communications. “Our best selling (display Schmidt’s example is similar across the country where unit) is the Cell Phone accessory Flamingo display”, says teleco’s are not terribly interested in promoting pay-as-you- company president Zahir Momin. This floor display takes up go. In fact, the Canadian Wireless Telecommunications As- just one square foot of space. The entire rack complete with sociation reports pre-paid subscriber rates declined last year cell phone accessory products, sells for $699.99 and offers by 344,471 while post paid contract sales increased by more a100 percent margin. “We have locations in Alberta, Ontario than 700,000. & Quebec selling 30 plus items each month and in the GTA This is a trend that is counter to Europe and the US where area there are locations selling 50 pieces a month,” he says. prepaid options are much stronger in a market where accesBrian Minaker remarks here that PIN sales can be anothsibility to top ups and phones is high and the cost of prepaid er great addition to a store’s service package. “Customers service is much lower. Consider that a European pay as you who purchase a prepaid PIN go about it in a similar way to go plan might cost 15 Euro ($19) for unlimited in country call- purchasing a prepaid card. Through the Convenience Store ing and 1 gigabyte of data plus 100 text messages. Top ups they purchase the PIN, it’s printed out similar to a receipt are available at every gas station, C-store and grocer as well and they call in with their PIN to add the amount to their as in cell stores like T-Mobile and O2 that are liberally pep- prepaid account,” he says, adding that when a new virtual pered everywhere in all major European countries. The same PIN provider wishes to order PINs from MTS they draft an is true in the US where costs for pre-paid are much lower and agreement allowing them to sell any denomination of PIN service packages more inclusive. ($15, $30, $60, $100). “Once the agreement is fi“The bundle packages are just so much betnalized the provider goes through prepaidpin@ “AT OUR STORE ter, consumers have decided to go in this direcWE ARE ALL ABOUT mtsallstream.com to order pins. They can also tion,” says Brian Minaker – Manager Consumer request collateral from us if they wish to showCONVENIENCE,” Market Management, MTS Allstream, a leadcase the PINs within their stores.” SAYS SCHIMDT. ing market player with some 500,000 subscribBoth Momin and Minaker suggest that placeers in both pre-paid and post paid formats. He “WHY WOULDN’T WE ment of display is key to obtaining the best OFFER CELL PHONE sales. And, while most would tell operators that reports that five years ago, prepaid was a way PRODUCTS? for consumers to dip a toe into market waters. a display must be as close to the till as possible This trial and error period is now over with conto maximize return, the reality is that a well merREALLY, IT’S A sumers well acquainted with products, services MARRIAGE MADE IN chandised display in a visible location will atand costs. Still, prepaid is popular with demotract not just impulse sales, but will establish the HEAVEN.” graphics such as seniors who want to keep a C-store as a centre for cellphone services and handle on telecom costs and have the security products. “This means return business as well of wireless communications. Parents are also as collateral business where a customer comes turning to prepaid for phones for their children so that they in to pick up a $15 top up for a prepaid plan and buys a soft don’t run the risk of nasty billing overages when kid’s send drink and a lottery ticket at the same time,” says Minaker. out too many texts or download too much data. “This customer now knows he can go to his neighbourhood MTS offers its prepaid phones, CDMA (voice) and HSPA convenience store to get credits for his phone and this makes (mostly smartphones) devices, at locations such as7/Eleven him a regular returning customer. where they compete with the chain’s Speak Out cell phone Is it worthwhile to offer cell phone services program. at your C-store? With tobacco and other key product groups “In convenience stores, we sell 2 CDMA Huawei (M570 & in decline any new revenue stream is welcome. And, while it’s M636). These are our 2 most popular phones due to pricing true that pay-as-you-go prepaid cell business is a sector that and don’t require a SIM card, meaning the customer can just is in decline, for some segments of Canada’s population such buy the handset box from the store and activate later by call- as those with credit or cash flow issues (and this is where you ing MTS. The Convenience Store only has to sell these boxes need to know your customer) pre-paid options are the only and customers are directed to MTS Customer Care for any options for cell service. It is here that Canada’s C-stores can questions or issues,” he says noting that top up options are step in to offer a convenience solution for those looking for simple with access via Prepaid Airtime Cards (PIN Cards), on- wireless communication. line (with credit card), by phone (with credit card). “At our store we are all about convenience,” says Schimdt. According to Jerry Schmidt operators need to consider “Why wouldn’t we offer cell phone products? Really, it’s a whether they want to allocate floor real estate to displays. “If marriage made in heaven.” you have a customer base that is employed and earning well prepaid phones will not sell because these customers have
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by Jillian Mitchell
Snack Attack:
Canadians Looking to Excite Taste Buds at Local C-Stores WHETHER OUT ON THE ROAD OR RUNNING ERRANDS AROUND TOWN, IT’S INEVITABLE THE OLD HUNGER PANGS WILL MAKE AN APPEARANCE EN ROUTE. IN AN INCREASINGLY GRAB-AND-GO WORLD, THE TRADITIONAL C-STORE PROVES AN EXCELLENT SOLUTION TO THE ON-THE-GO TUMMY GURGLES. Leading the munchies trend are salty snacks—chips, pretzels, nuts (salted and unsalted), cheese, ready-toeat popcorn, meat snacks (jerky), and crackers. And, this year, nothing is “off the table” when it comes to flavours! “Consumers are continually looking for new and unique flavours within the snack category,” shares Kelly Greenspoon, director of Business Development – Small Format for PepsiCo Food Canada,
22 January | February 2014
citing the Lays® ‘Do us a Flavour’ campaign as a prime example. Grilled cheese and ketchup, creamy garlic Caesar, perogy platter, and maple moose were among the competition’s four finalists, all of which were suggested by Canadian consumers and “enjoyed great success in the marketplace because of their uniqueness,” says Greenspoon. In the end, it was maple moose that trumped its way into the company’s permanent lineup.
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Spicy is another trend that is anticipated to continue. As C and K) and anti-aging properties. “We are the leaders in such, PepsiCo Foods has continued to innovate with some of Canada for hot and spicy snacks, hot sauces and condiments; their mainstream brands such as Doritos, launching an Inferno no one does it hotter than us!” offering this year to follow up on others launched in previous Similarly, Old Dutch Foods Ltd. is continually adding new years. Cheetos Jalapeno Cheddar is another one with a spicy excitement across their line-up. New flavours and line extentinge that has also worked well for the company, she adds. sions are definitely trends expected to continue as the industry Ethnic flavors such as Mexican, Thai, Vietnamese, Indian, and continues to add excitement for consumers, says Scott KeleMiddle Eastern cuisines, where the hot pepper is a major fac- men, national director of Marketing, Old Dutch Foods Ltd. tor, is also trending in the sector. At GCS, Vice President Sales, According to Kelemen, though consumers are still buying Aubrey Zelman reports that Gourmet Chips and Sauces (GCS) more mainstream than BFY (Better For You) in this segment, continues to show excellent growth in the snack industry with steps are being taken to appeal to the health conscious consignature spicy products such as Habanero XXX and Buffalo- sumers as well. Over the last three years, Old Dutch Foods has Wing chips, and new and exciting products such as Jolokia reduced sodium substantially and clearly identifies products (the second hottest pepper harvested) and Ancho Chiliburger that are gluten-free, have natural flavours and colours and are chips, all of which are finding their way to new, younger, ex- free of MSG across major segments, such as the Old Dutch treme consumers looking for real hot and spicy snacks. Potato, Dutch Crunch Kettle Cooked Potato, and the Restau“Hot and spicy continues to be a major force in the Cana- rante Tortilla Chip line-ups. Low-fat, low-sodium, and highdian market. New hot-and-spicy items are appearing on the fibre options are also worthy of notice, he says. shelves of your favourite supermarket and specialty food stores “We understand that snacking is for pleasure and that taste “, and many of the major QSR chains are is still key with our consumers. Ensuring our HOT AND SPICY CONTINUES mainstream offerings are the best that they marketing to the younger consumer who TO BE A MAJOR FORCE IN want hotter and spicier tasting items,” says can be and offering a line-up of better-forZelman, citing the hot peppers nutritional THE CANADIAN MARKET. you options allows our consumers to make benefits (rich in antioxidants, vitamins A, NEW HOT-AND-SPICY ITEMS the choice, and we are confident that when
ARE APPEARING ON THE SHELVES OF YOUR FAVOURITE SUPERMARKET AND SPECIALTY FOOD STORES
24 January | February 2014
they try our products they will agree that ‘quality lives here,’” the convenient and attractive merchandise display racks are adds Kelemen. “We see that while there are many picking up placed by the till—and to the products’ clear packaging reour multigrain, baked, low-sodium, reduced-salt options, and vealing the high quality product contained in the bag. As well, even our Grand Prix winner, the Northern Choice Chickpea the adhesive label on each bag doubles as a resealing devise Tortilla Chips, our mainstream offerings are selling extremely once the package is opened, a development that has further well.” increased sales by 20 per cent, reports Scholtens. Though mainstream snacks continue to dominate the mar“We expect consumers to be looking more for no salt addketplace, it’s no secret that a great number of Canadians are ed, no sugar added, and gluten free products. We give high looking for healthy and convenient snacks. As such, many c- profile to the fact that we offer the option of healthier choicstores now offer a selection of fresh and healthy choices, such es,” he says. “There is strong competition in the lunch market, as whole grain cereal cups, energy bars, nuts, yogurt, fruit and but consistent, good quality, and fast and friendly service will vegetable juices, trail mix, veggie plates and fruit cups, and win the day. It always has and it always will.” beef jerky, to name a few, in addition to an array of healthy And then there was beef jerky—the food item that lives on meal options. both sides of the snack-food fence. Scholtens Inc. reports regular sales increases on their “While some people might say they think beef jerky is a healthy options. Top sellers include their All Natural Har- healthy snack, others may consider it to be junk food,” says vest Mix, which is an all natural, raw, no Hayley Bendzik, marketing associate at salt added, no sugar added trail mix, and Big Chief. “As consumers are becomTHE COMPANY’S PRODUCT the Cottage Country Candy, Nut and Trail ing increasingly health conscious, and PACKAGING DIRECTS Mixes program, which is readily available trends like gluten-free continue to grow, CONSUMERS TO THEIR at better convenience retailers nationwide. Big Chief has devoted more efforts into RECENTLY REVAMPED Company president Jack Scholtens attriWEBSITE, WHICH CONTAINS setting the record straight. When you buy butes the sales increase to product placeBig Chief beef jerky, you are paying for a ADDITIONAL, DESCRIPTIVE ment—front and centre in the stores where NUTRITIONAL INFORMATION. convenient, ready to eat, 100%-beef snack
THEIR HIGH-PROTEIN, LOWCARB, GLUTEN-FREE BIG CHIEF ORIGINAL BEEF JERKY IS ALWAYS A FAVOURITE
CONVENIENCE & CARWASH CANADA
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that contains many more nutritional values than an unhealthy folio, and low-fat and low-sodium versions of snack foods are growing faster (up to +19% from last year).1 snack that might be less expensive.” However, when speaking to proven product winners, Going the extra mile, the company’s product packaging directs consumers to their recently revamped website, which Greenspoon cites mainstream snacks as the bulk of their busicontains additional, descriptive nutritional information. Their ness, offering the highest sales growth: “At PepsiCo Foods high-protein, low-carb, gluten-free Big Chief original beef Canada, we believe that all foods can be enjoyed in moderajerky is always a favourite, says Bendzik, and the 30-gram tion and we’re committed to offering a wide range of snacks pouch is a proven bestseller. Additionally, the company’s 120- and foods that fit into any lifestyle. We continue to make tregram original beef jerky is the best value price-wise, she says, mendous strides in transforming our portfolio by renovating and its new re-sealable bag encourages healthy-eating habits. existing products and innovating to create new ones, while “The biggest change we have made is not necessarily to maintaining the great taste and quality that Canadians expect our products, but rather helping the consumer understand from our brands.” A great equalizer, the single-serve offerings speak to both the nutritional aspects of Big Chief products through educathe health-conscious consumer and the consumer looking tion,” adds Bendzik. “For instance, many consumers were for something new, without a hefty investment. It also helps unaware that Big Chief Original is gluten-free, and that it is a reach consumers through brand communilow-calorie snack. We now utilize social mecation due to a low price point/consumer dia like Facebook, Twitter, and Instagram in LEADING THE HEALTHYinvestment and high-availability, offers addition to our website to help us do this.” OPTIONS TREND IS PEPSICO Greenspoon. Also leading the healthy-options trend FOODS CANADA, ONE OF “We invest with our C&C partners is PepsiCo Foods Canada, one of the first uniquely through single-serve-only, limTHE FIRST COMPANIES TO companies to eliminate trans-fats from ited-time-innovation products that are their products back in 2005. In 2009, the ELIMINATE TRANS-FATS targeted toward C-store customers,” she company reduced sodium levels across the FROM THEIR PRODUCTS “By having these exciting flavours Lay’s portfolio by at least 25% per 50-gram BACK IN 2005. IN 2009, THE says. available exclusively in single-serve, conserving, and in some cases up to 50%. The COMPANY REDUCED SODIUM sumers are drawn to the channel to find launch of Twistos Baked Snack Bites in 2012 LEVELS ACROSS THE LAY’S these products.” further expanded their sensible snack port-
PORTFOLIO BY AT LEAST 25%
26 January | February 2014
CONVENIENCE & CARWASH CANADA
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by John Wiesehan Jr. CEO, Mistic Electronic Cigarettes
South of the Border The $90 Billion Market Opportunity THE PROLIFERATION OF ELECTRONIC CIGARETTES IN THE U.S. HAS STIRRED MUCH DEBATE BOTH INSIDE AND OUTSIDE THE COUNTRY. THE TREND IS SO POPULAR THAT SOME HEALTHCARE AND CONSUMER ADVOCATES ARE CONCERNED THAT ELECTRONIC CIGARETTES WILL MAKE SMOKING FASHIONABLE AGAIN, CREATING A NEW BREED OF “VAPERS.” This viewpoint is understandable given some the lifestyle marketing campaigns among a few e-cigarette companies. We believe that electronic cigarette manufacturers should only be targeting adult smokers, educating consumers on this unique alternative to traditional tobacco, rather than trying to make “vaping” hip or cool. Despite the great strides made over the past few decades helping people quit, cigarette smoking is the leading cause of preventable death in the United States, according to the Centers for Disease Control and Prevention (CDC), accounting for approximately 443,000 deaths each year. Moreover, the economic impact of smoking is devastating, generating $193 billion in annual health-related economic losses.
THE MARKET OPPORTUNITY
Regardless of the health concerns, an estimated 45.3 million American adults continue to smoke cigarettes. The good news is that nearly 70 percent of these smokers want to quit completely. For many of these people, however, conventional smoking cessation products do not fulfill the sensation of smoking traditional tobacco as does an electronic cigarette. That’s why the e-cigarette industry is growing at a record rate, probably reaching $2 billion this year. According to Wall Street estimates, the e-cigarette category in the U.S. alone is expected to reach $90 billion in sales over the next 10 years. Findings from the Wells Fargo Securities’ Inaugural E-Cig Forum recently held in New York City confirmed the explosive growth and market opportunity for electronic cigarettes, reporting that “there is vast opportunity for the category and it is only just getting started.” While there is limited scientific research on the efficacy of electronic cigarettes, initial studies indicate that these devices work just as good, if not better
28 January | February 2014
than conventional smoking cessation products. A University of Auckland study of traditional smokers looking to quit found that 7.3 percent of e-cigarette users had quit within six months, compared with 5.8 percent of those on nicotine patches. The study also found that 57 percent of e-cigarette users cut their daily cigarette intake by half, compared to only 41 percent of people using patches. The medical community also may be coming around. A Wells Fargo public health panel that was moderated by David Sweanor, adjunct professor of law at the University of Ottawa, revealed that ecigarettes are significantly less harmful than traditional cigarettes and offer a compelling alternative to smokers. The panel of leading healthcare experts also concluded that more research is needed as well as sensible regulation, but found there is broad belief in the benefits of electronic cigarettes and the vast public health opportunity.
THE E-CIGARETTE DIFFERENCE
The words “vape” or “vaping” are derived from water vapor, which is emitted when someone draws or takes a puff on an electronic cigarette. The e-liquid is heated until it produces a mist. There is no smoke, ash, smell or even staining. In fact, most electronic cigarettes contain only a handful of ingredients, such as nicotine, flavoring, water and propylene glycol, which is used as a binding agent in many food products and has been generally recognized as safe (GRAS) for consumption by the FDA. This is a sharp contrast to traditional cigarettes that contain a deadly mix of more than 7,000 chemicals, many of which are toxic and cause cancer. People who enjoy smoking like the idea of an alternative to traditional tobacco. Smokers also like the way e-cigarettes mimic tobacco cigarettes. While municipalities in the U.S. are working to establish local laws where electronic cigarettes can and can’t be
THE COST EQUIVALENT FOR MISTIC REFILL CARTRIDGES COMPARED TO A PACK OF CIGARETTES IS ONLY $1, MAKING IT 83 PERCENT LESS EXPENSIVE THAN TRADITIONAL TOBACCO CIGARETTES.
used, most places accept their use where traditional cigarettes are prohibited. They’re less expensive, too. The cost of most electronic cigarettes is considerably lower than tobacco cigarettes, making it very attractive to traditional smokers. A pack per day smoker of traditional tobacco cigarettes in the US spends an average of $2,200 annually. For example, the cost equivalent for Mistic refill cartridges compared to a pack of cigarettes is only $1, making it 83 percent less expensive than traditional tobacco cigarettes.
HIGH MARGINS AND GLOBAL EXPANSION The e-cigarette category has enormous potential to be a valued player in the global retail sector. Same store sales are rapidly growing for e-cigarette brands like Mistic that have implemented a “razor-razorblade” model. Because e-cigarette products are rechargeable, repeat sales offer high revenue growth opportunities, with margins reaching the mid 40 percent range by 2017, according to Wells Fargo Securities. Despite the fact that some countries
[Canada] don’t allow the sale of nicotine-infused electronic cigarettes, U.S. companies are exploring international expansion through acquisitions. Many e-cigarette brands also offer zero percent nicotine refill cartridges to accommodate local laws. U.S.based Lorillard recently acquired SKYCIG, a premium brand of e-cigarettes based in the United Kingdom, while other American companies are expanding their retail footprints through international distribution. While all signs point to continued disruption of the global $500 billion tobacco market by electronic cigarettes, regulation still hangs in the balance, as well as the need for scientific research and the adoption of rigorous high-quality standards. The recent decision by the European Parliament declining to ban e-cigarettes speaks volumes to the continued growth of these devices as unique alternatives to traditional tobacco. There’s no doubt that electronic cigarettes will win in the end, sooner than later, and that time may already be here. Mistic® electronic cigarettes and vapor products are sold in approximately 40,000 retail outlets across the country, including Walmart, Walmart Neighborhood Market Stores, Rite Aid Drug Stores, Kangaroo Express, Circle K, Winn Dixie/Bi-Lo, Food Lion, among many others.
CONVENIENCE & CARWASH CANADA
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Social Media Messaging is Great for Business. PLACING THE CUSTOMER FIRST AND GIVING BACK IS GREAT FOR THE COMMUNITY. Amell’s Gas & Go in Pilot Mound, MB
30 January | February 2014
Tyler and Lindsay Amell have been operating Amell’s Gas & Go in Pilot Mound, Manitoba since June 1, 2010. To grow their business in the small community about two hours southwest of Winnipeg, they decided to renovate the building and upgrade their forecourt equipment by installing new gas pumps and signage. The husband and wife have also built a strong brand in Amell’s Gas & Go, a brand that AMELL’S HELD A WEEKLY shows they care about their DRAW FOR A $25 GIFT customers and also offer great products and services. CARD FOR PEOPLE WHO Most importantly, they “LIKE” THEIR SITE. THIS enjoy running the business GENERATED LOYALTY and invite their community AND FOLLOWERSHIP. into the store everyday CUSTOMERS FREQUENTLY using creative marketing RECOMMENDED THE SITE messages delivered through AS WELL. AFTER RUNNING their Facebook Page www. THIS PROMOTION FOR facebook.com/amellsgas The store is unique given EIGHT WEEKS, AMELL’S GAS & GO GENERATED OVER 100 the fact that it is the only gas station within 15 miles of Pi“LIKES”. THIS CREATIVE lot Mound that is not a cardPROMOTION COST THEM lock site. As well, Amell’s is ONLY $200. one of the only full serve stations in the area and is the only C-store/gas bar with a restaurant within 35 miles. Their menu is inviting and fresh, drawing in the local community and people passing through. Customers hear about Amell’s great food through the local paper, The Sentinel, or follow them on Facebook to discover the store’s latest offerings. Acquiring new customers in a small community of 2500 can be challenging. It takes more than just offering a low price or coupons, it means adding value to the community and providing great customer service. Additionally, making profits has become even more difficult as the cost of labour have increased by $2 per hour over just the last 3 years. The Amell’s have kept their focus on the customer and are using creative and affordable marketing approaches to draw customers into the store. With a small marketing budget they are taking advantage of social media outlets like FaceBook. The Amell’s Facebook page is inviting, has great offers, helpful information, and well executed graphics that illustrate their offerings and make
them enticing. The page is updated frequently so customers can always expect something new. Amell’s posts weekly gas price updates, offers specials, and rewards their customers by entering them to win gift cards. They also use Facebook to find out what customers enjoy and will recommend to their friends. In order to gather “LIKES” to their Facebook site, Amell’s held a weekly draw for a $25 gift card for people who “LIKE” their site. This generated loyalty and followership. Customers frequently recommended the site as well. After running this promotion for eight weeks, Amell’s Gas & Go generated over 100 “LIKES”. This creative promotion cost them only $200. They also engaged customers and created buzz by holding a contest to name a new burger offering. This contest was a fun way to interact with customers and also bring them into the restaurant to try the new burger. Many customers like to be asked what their opinion is, especially in a smaller community. Customer feedback is valuable to any business. Not all of Amell’s advertising is through social media, they also run ads in the newspaper to target the elderly and others in an approach designed to maximize visibility. To further grab customer attention they placed a digital message board at the store’s cash stations where ads can be seen by people dining or paying. While advertising brings great returns to Amell’s Gas & Go, nothing has a greater impact than their community involvement. You see, the Amell’s are not in business just to make money, they care about their community and feel it is important give back as well. Smaller communities rely on the generosity and participation of their corporate sponsors. So how do Tyler and Lindsay Amell measure success? Over the past three years business has doubled and so has their customer count. Additionally, they have increased their annual fuel sales by 60%, even though the population in the area has not grown. Growing a business is only one measure of success, you have to take pride in what you do, enjoy your community, and give back. In that regard, Amell’s Gas & Go is a great success story. Share your story. If you are a retailer in the Convenience Carwash Industry, share your success tips with our readers. Convenience & Carwash Canada will feature a retailer each issue. If you’d like to share your story email: bjjohnstone@convenienceandcarwash.com
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by: Matthew Gottfried
Speaking of Lotteries There are lots of things to know… you know?
MANITOBA LIQUOR & LOTTERIES CONTINUALLY FOCUSSES ON PROVIDING PRODUCTS, EQUIPMENT, ADVERTISING MATERIALS, SIGNS AND FIXTURES, SALES AND TELEMARKETING SUPPORT TO HELP RETAILERS SERVICE THE NEEDS OF THEIR LOTTERY CUSTOMERS. We also understand that for the customer, the most exciting part of playing lottery games is when they win and return to the store to validate their ticket and receive a prize. That winning experience drives business back to your store which is why correctly executing the validation process and payment of prizes is very important.
32 January | February 2014
Many changes such as Lottery Ticket Self-Checkers, customer signature lines on tickets, audible winning sounds and customer display units indicating prize amounts, have been made to the ticket validation process in the past years, but the one constant is that Lottery Retailers are at the forefront of the process. Manitoba Liquor & Lotteries’ Retailers are paid 2% commission and may process validations and payout up to and including $1,000. Validating and prize payment of a winning ticket is not a complicated process. Here are a few steps to ensure the process is properly managed:
ENSURE YOU HAVE THE FUNDS TO PAY THE CUSTOMER
• We understand that balancing customer service needs with security procedures can be difficult as you do not want to have too much cash on hand. • The Lottery Terminal is programmed to stop the validation process to confirm you have funds to pay the customer for any lottery validation of $200 or more before proceeding to processing the function. This is a great opportunity to back-out if you don’t have money to payout your winner. • It is very important that you do not rip the ticket if you cannot pay a prize that. Instead, return it to the customer intact so they can take it elsewhere to complete the validation.
ALWAYS CHECK FOR THE SIGNATURE
• There is a line on the front of all online tickets for the customer’s name and if they have signed the back of the ticket, that is okay too. • We ask that the customer’s name be printed, a signature provided, or a distinguishing mark to be made by the customer, identifying ownership of the ticket. As long as one of these exists, you may proceed with the validation. • If a customer refuses to sign or put their name on the ticket, we prefer that it not be validated. If they dispute the requirement, please refer the customer to the toll free number on the back of all lottery and Scratch ‘n Win tickets (1-800-265-3313). They will be advised of the requirement by a Western Canada Lottery Corporation (WCLC)– Customer Care Representative.
ENSURE THAT THE CORRECT PRIZE IS PAID
• We know how many customers you serve in a day and that mistakes can happen, but please ensure extra care is taken when providing payment for winning lottery tickets.
WHAT DO YOU GIVE BACK TO THE CUSTOMER?
Winning Ticket • Tear and return the winning ticket • Give the customer their validation slip (you can print a copy for your records) • Pay the correct prize Non-Winning Ticket • DO NOT tear the ticket • Return the intact ticket along with the validation slip to the customer In the event that a customer disputes a prize or that a ticket should be a winner, please return all tickets to the customer and have them contact the toll free number on the back of the ticket so a representative from WCLC – Customer Care can instruct them on the proper process.
Finally, you must always remember that for all lottery validations and purchases of lottery products, customers must be 18 years of age or older to participate. As a general guideline and similar to other retail packaged goods, if they look younger than 25, ask for I.D.
NEED HELP WITH TRAINING? If you are a retailer with new or current untrained staff or if you are looking for a bit of a refresher, Manitoba Liquor & Lotteries has an Organizational Programs & Development department that can address any lottery training issues. Call Tony Batista and he can help you set up an in-class training session at our offices. If you would like to take the training on-line, he can provide you with a link and passwords to allow you or your staff to complete the training on your time and on your personal computer. Either method will provide employees an opportunity to become fully certified to operate a Lottery Ticket Terminal. On behalf of Manitoba Liquor & Lotteries, we hope that you had a wonderful and warm holiday season. We wish our lottery retail partners all the best for a 2014 filled with peace, health and prosperity.
IN WINNIPEG PLEASE CALL 204-957-2500 (EXTENSION 5555) AND OUTSIDE THE CITY OF WINNIPEG PLEASE CALL 1-800-265-3912 (EXTENSION 5555) AND WE’LL SCHEDULE YOU TODAY.
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by Barbara J. Bowes
The Ultimate Guide to Good Hiring Strategies Have you ever been disappointed to find that someone you hired was not the person you thought they were? Where did you go wrong? Was the problem a set of poor interview questions? Did you misinterpret the candidate’s responses? Did you fail to make notes? Did you fail to check references?
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In most cases where a candidate turns out to be a disappointment, the problem lies in the fact that the business owner did not investigate and confirm the specific selection criteria that would ensure success for their organization. When this situation occurs, then the questions used in the interview are also more than likely not going to identify the best candidate. This forces owners HIRING MISTAKES COST to rely on their first impression and “good feeling” they get from a MONEY. IN FACT, IT’S WELL the candidate. KNOWN THAT A HIRING Yet, hiring mistakes cost money. In MISTAKE CAN COST UP TO fact, it’s well known that a hiring misTHREE TIMES THE ANNUAL take can cost up to three times the annual salary of a former employee. SALARY OF A FORMER These costs include such things as EMPLOYEE. overtime for relief staff, time to hire, advertising costs and the time and involvement of the other people it takes to interview candidates. The ideal situation for any business owner is to have a stable, steady staff complement that you can count on. The following guidelines will help to make this happen. Identify why someone would want to work for you – put yourself in the shoes of a potential new employee. What will they be looking for? Are they interested in full time or part time work? Are they seeking flexibility or consistency? Are they seeking an opportunity to learn new skills, meet new people, or simply gain work experience? What specific benefits can you offer? Keep in mind that money isn’t everything. People are motivated by different things such as independence, challenge, helping, being in a fast paced environment or being able to make improvements in processes or systems. If you can define what you offer, then you will have more success in attracting the right candidate for your job and the better the match, the longer they’ll stay. Define your selection criteria – selection criteria is defined as the key characteristics that you wish your employees to demonstrate. They include such things as honesty, integrity, strong personal professional presence, a good customer service attitude, a positive personality, good computer skills, a quick learner and/or the ability to be bonded. To start this list, it is best to define the characteristics you would want in an ideal employee and then create a priority skills list. At the same time, determine
your tradeoffs; in other words, what could you forgive if a candidate did not possess all the skills you are looking for. Finally, prioritize your list and focus on the top five selection criteria. Determine a marketing strategy – placing an advertisement in the newspaper will attract a wide variety of candidates which in turn will require a good deal of time to sift through all the responses. You are much better off to determine where you would find a candidate that matches your description and then target these individuals through your advertising. If you could offer part time work to a student, then post your opportunity at a local school. Don’t forget about the many seniors who are seeking part time work. Post your opportunity at a local seniors centre. In many cases, asking current employees or from frequent customers to refer you to potential candidates is a good strategy. Pay attention to the resume – how candidates put together a resume shows you something about their attention to detail and their concern about how to present themselves. Look for experience similar to your needs and pay attention to the time spent in each job. On the other hand, especially for young people, don’t discount the candidate if they have moved around a good deal. Save this information for your interview. Stand back and ask yourself, “what impression does the resume leave with you? In many cases, people simply state the job title but they don’t indicate what they did nor what skills they used. Review the resume and make some assumptions about roles and responsibilities and skills and include these issues in the interview. Prepare your interview strategy – the interview process should be more than simply one face to face interview. Structure the process so that you can do a telephone interview prior to conducting a face to face meeting. This will give you a good idea of telephone manners and tone of voice and may well let you assess personal flexibility, especially when scheduling an in-person interview. Where possible, either include other people in the interview and/ or have the candidate meet someone else in your company so that you have two opinions on assuring the right fit. If you are able, have each candidate complete a psychometric assessment as this will confirm what you have learned in an interview. Be clever about your interview questions – first of all, prioritize the selection criteria and then ask yourself what challenges or problems an employee would face when applying each of the selection criteria. Next, create a question that will help to give you the answer you are looking for. For instance, asking a candidate to “tell me about a time when you were challenged by a disgruntled customer”
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should give you a good idea of both their personal experience and also how they would go about dealing with this type of customer. Be sure to avoid questions such as, “tell me about yourself” because they are not tied to any selection criteria and will only result in a general answer that doesn’t help you to assess HIRING THE RIGHT the individual. Limit your questions to PERSON WITH approximately 7-10 and select those THE RIGHT SKILLS that fit your priority selection criteria. Document your interview – AT THE RIGHT whereas you will more than likely TIME IS MORE interviewing more than one THAN AN ART, IT be candidate, it is best to document IS A SYSTEMATIC each interview so that you can review SCIENCE. later and compare and contrast each candidate. This is important not only for decision making but if ever a complaint about discrimination arose, you will have documentation to support your decision. Make yourself a chart; include the question on the left, leave a space for your notes and then on the right
hand side, give your rating for each answer and the rationale for each. Keep these documents in your files, review the interview questions and reflect on their appropriateness when you need to hire new candidates in the future. Don’t forget reference checks – references are used to confirm experience, expertise, personality and skills. Ask for three references; one or two from a former supervisor and one from former colleague with whom they worked. This is important in order to confirm their ability to work independently and/ or as part of a team. When calling a reference, use the same questions that you did for the face to face interviews. This strategy will give you confidence with respect to hiring this person. Hiring the right person with the right skills at the right time is more than an art, it is a systematic science. In other words, creating a recruitment strategy and structure that is consistently followed will ensure that you attract the right candidates, accurately assess the skills and cultural fit and avoid those dreaded hiring mistakes.
Barbara J. Bowes, FCHRP, CMC, CCP, M.Ed is president of Legacy Bowes Group located in Winnipeg, Manitoba. Barbara is also an author, a radio host, public speaker and workshop leader. She can be reached at barb@legacybowes.com
Five Reasons to be Optimistic about Future Energy and Power Supplies
National Convention & Convenience Store Expo
Robert Bryce, Prominent Energy Journalist
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2014 Keynote: Mike Walsh • Futurist Federal Legislative Update Dan Gilligan, President • Innovation Coach • Founder and CEO of Tomorrow, a consumer innovation research lab
Ladies’ Luncheon
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moderated by PEI with Eaton Sales & Service and Northwest Pump & Equipment
Wednesday, February 18-20, 2014 Fueling the Future
Driving to Success
Las Vegas, Nevada, USA
36 January | February 2014
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10/15/13 12:38 PM
CONVENIENCE CONVENIENCE & & CARWASH CARWASH CANADA CANADA
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by David Dougherty
Loyalty Car Wash Programs Create Longevity, Revenue Growth IT IS TRUE THAT IF CUSTOMER LOYALTY WERE EASY TO COME BY THEN EVERY BUSINESS WOULD BE SHOWING SUCCESSFUL PROGRAM RETENTIONS AND EXTENSIVE REVENUE GROWTH YEAR AFTER YEAR. SO, HOW MUCH LOYALTY IS NECESSARY TO BE SUCCESSFUL?
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For retail-petroleum or conveniencestore site owners/operators who offer a car wash, research data suggests that retaining just 5% more of the customer base can mean as much as a 50% gain in revenues*. For most owner/ operators, those kinds of numbers make the investment in loyalty programs well worth it.
So, why does loyalty pay so well and how can an operator achieve a level of customer loyalty that ensures success month-in and month-out? It begins with understanding that attaining customer loyalty is not easy—but, when achieved, it pays dividends far beyond any month-to-month retention program or a one-time discount coupon offer.
a car wash, fight to win their loyalty. There are many paths to creating loyal customers, but it all starts with communication. From the attention garnered by a modern sign that draws potential clients to a certain facility, to the messaging they receive at the entry station, to the very real opportunity to land a return customer with a follow-up ”thank you” email, communication is critical to getting customers’ attention, holding it and re-engaging them in the future. Give customers a reason to return to your car wash. Start by focusing on keeping the messaging fresh, don’t let things become static, worn out or dated. In order for a loyal customer to return, there must be some tangible payoff, a real benefit. If they are on the other side of town, will they make the effort to return, or will they do what is convenient? When it comes to a loyalty program, the golden rule is: You get out of it what you put into it. Good c-store operators are good at customer satisfaction, which is the foundation of customer loyalty. Customers have to be satisfied before they can become loyal.
LOYALTY NEEDS COMMUNICATION
The Wash Access Loyalty System (WALS) from PDQ Manufacturing features easy-to-use customer-relationship management software that helps car wash operators build loyalty programs that are impactful and relevant to all of their customers.
Those loyal customers, who can be counted on to return to a business time and again for a product or service, often do it not to save money, but to feel special, feel appreciated or as a convenience for their personal time. Like most aspects of successful businesses, loyalty comes down to bottom-line decisions. What a car wash loyalty program needs to do is build and cement a strong, positive feeling about a specific car wash. In fact, in their fast-paced, jam-packed daily schedules, customers have a lot on their minds. They have a lot of businesses and services fighting for their attention. Any c-store operator hoping to secure loyal customers for his car wash must be willing to fight. Fight for their attention, fight for the right to be their choice for
If a car wash satisfies a customer, it doesn’t automatically mean they will return for future washes. Therefore, operators must create extra incentives to really make sure customers are loyal. Consider offering loyal customers a special car wash lane or providing “loyalty” discount incentives. The nail in the coffin for any c-store operator with a car wash is complacency. In order to create an effective loyalty program, an operator must be willing to go the extra mile to communicate and appeal to customers. Assuming a traffic pattern or catchy sign will keep them lining up outside the bay or tunnel year after year is not a sustainable revenue-growth model. Recognizing that every customer wants great service, ease of use and efficiency in their car wash operation, creating a loyalty program that is successful must begin with understanding the customers’ habits, likes and dislikes. Ask yourself: What kind of experience do I need to deliver in order to create a return visit, or even better, a loyal customer who will return every time? Actively working to connect with customers, creating and maintaining relationships, should be the first expectation in starting a loyalty program. The challenge is to choose the correct system for a local market based on demographics and competition, and to constantly monitor customers to make sure that the car wash is on the winning side of the market. Whichever loyalty process is selected, the car
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PDQ’s Access S-Series entry station readily accepts loyalty cards and also allows car wash operators to replenish their Wash Access Loyalty System (WALS) accounts.
wash operator must be clearly focused on it and confident that it is performing well. Change is necessary to keep things fresh, but changing a program or loyalty approach should not be done for the sake of change, it requires having a target or goal from real data or behavioral patterns.
EMBRACE TECHNOLOGY
When it comes to loyalty programs, technology is a friend. From the intuitive nature of the entry station to the online application the driver interfaces with at a website, to a cellular app that reminds them of existing loyalty credits or a free car wash, technology can manifest itself in many forms. Good use of technology starts with hardware that needs to be capable of interfacing with the client in an easy-to-use, intuitive manner. Ad screens at entry stations can deliver special offers, incentives for loyalty, or possibly even a local business who may reciprocate in a co-branding arrangement. The entry station should also be capable of efficiently assisting the clients through the purchasing process, ensuring a simple process will help create a positive experience. Radio-frequency identification (RFID) technology is one of the most exciting pay-station advancements of recent years, mainly because it makes the entry process hands-free and no-hassle for loyalty-program members. An RFID transponder embedded on the driver’s vehicle registers as the driver approaches the wash entrance. An RFID
ABOUT THE AUTHOR:
reader captures the driver’s account information and relays it through the pay station’s software system, which will automatically begin the wash process. The client will not even need to roll down the window. This is another means of focusing on generating that positive experience for your clients. Subscription accounts offer clients increased flexibility to match their personal lifestyle and individual wash needs. Subscription-based programs are great incentives for the loyal customer. Set up as a loyalty benefit, this style of account allows the client to have their credit cards automatically charged on a monthly basis in exchange for convenient use at your car wash. This type of program illustrates outstanding use of technology to identify the loyal customer who might be offered the special benefit, while delivering a virtually labor-free opportunity to provide special treatment and service at the car wash. Direct withdrawal of the funds ensures that little time is needed by the customer to manage the account. This is a win-win for the owner/operator—and the client. A reliable system, offering infinite code variations and tracking abilities that can be used to identify the very best customers and to create manageable loyalty programs, is the Wash Access Loyalty System (WALS). A web-based system that provides the data-management and technological resources needed to operate a successful loyalty program, WALS compiles real data that can be used to make educated decisions on the tendencies of potentially loyal customers.
CONCLUSION
To provide success for the car wash operating in a competitive petroleum-retail and c-store marketplace, making an effort to set up a loyalty program that can attain a 15% to 20% retention rate is well worth the cost and effort. To ensure that once a level of loyalty is achieved it is not squandered, it is up to the operator to initiate direct communication and utilize technology and data to sustain a program. Sustained success and incremental revenue increases are the payoff for those efforts. *Based on Fredrick Retchheld, the Author of “The Loyalty Effect”
David Dougherty is the Senior Product Manager for In-Bay Automatics at PDQ Manufacturing, Inc., De Pere, WI. PDQ Manufacturing is recognized as the technological leader in vehicle wash systems, providing superior quality, outstanding support, and products that contribute to its customers’ profitability. Brands include LaserWash® and ProTouch® In-Bay Automatic Vehicle Wash Systems, SwingAir® and MaxAir® Dryers, Access® Wash Activation Systems, Cortex and WALS. Products are sold and supported worldwide through an extensive distribution network. For more information, visit www. pdqinc.com or call (800) 227-3373. David can be reached at David.Dougherty@pdqinc.com.
40 January | February 2014
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Works for Vacuums Too
42 January | February 2014
by Harry Peterson, CCIB
Disaster Planning cannot go back to your place of business. Think it can’t happen, just look at the situation that arises when a forest fire comes close to a community. Can your shop be left unattended for a day, a week or even longer, without you being able to do a normal closing procedure? While it is impossible to eliminate the possibility of some disasters, floods and earthquakes are out of your control, you can mitigate other events. Fire suppression systems such as sprinklers, extinguishers and gas cut-offs need to be inspected and updated on a regular basis. Test your smoke detectors.
DISASTERS NEED NOT BE TOTAL FIRE LOSSES, FLOOD INUNDATIONS OR EARTHQUAKES. IN FACT, MOST DISASTERS INVOLVE A SMALL INCIDENT THAT DISRUPTS YOUR BUSINESS TO THE EXTENT THAT YOU ARE UNABLE TO CARRY ON SERVING YOUR CUSTOMERS. The extent of the disaster is determined by how you prepare for the event and how quickly you are able to be back in operation. With this in mind, you need to address all aspects of a situation from what happens if the disaster destroys your location entirely, to whether you can reopen at the same place in a timely manner. Try to imagine what would happen if you are shut down by civil authority. No warning, you are just told that no, you
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How much discarded flammable material has piled up and recover what you have lost and if you don’t carry adequate do you keep these materials away from sources of heat. If you amounts, especially for business interruption, you may never are in an area subject to extreme cold, do you have a backup reopen. solution for loss of electrical power and the resultant damage Each owner and manager needs to take time to picture how that could occur. a disaster scenario could happen in their community. Talk to Everyone preaches the need for information backup, but your staff and be proactive in addressing aspects of your operthat is only part of the solution. Where are you ations that would need to be either controlled, going to run the backups? Do you have intercorrected or put aside to handle at a later date. BEFORE ANYTHING net connectivity allowing you to contact your It may not be imperative to involve your inDOES HAPPEN, GET A surance in the first hours while you try to quickly suppliers so that they know you need help, or to stop the delivery of an order? Are you able CHECK LIST SIMILAR control the situation. Other instances may have to contact your staff? Here an emergency list TO THE ONE BELOW physical aspects where control of the situation of staff and their phone numbers that are kept AND THEN THINK OF is out of your hands. The fire department workoff-premises and not just on your computer is ing to extinguish a blaze means you can put HOW YOU WOULD a must. Have you ever held a drill whereby staff your time to use being on your cell phone callFILL EACH NEED IF ing staff, the telephone company, your insurhas to locate and know how to use emergency YOU LOST ALL YOUR ance broker, etc. equipment? Try, it. You may be unpleasantly surprised. Pausing for a moment to think of positive acRECORDS. Before anything does happen, get a check tion, as opposed to worrying about the event, list similar to the one below and then think of can be the best action you take during and how you would fill each need if you lost all your after the initial shock. Take a time to prepare records. Please keep in mind that your insurance is not a re- and when the time comes, take a deep breath and start the placement for good planning, it is only a tool to help you recovery.
BEFORE THE DISASTER • Know how to contact your insurance broker during and after business hours. • Keep a backup of your computer data and store it off-site or on the cloud. • Make sure you include payroll, inventory, payables and receivables and keep it current. • Have information at hand allowing you to contact your alarm reporting station. • Have a method to get telephone calls redirected to owners, or managers, cell phone. • Advise all suppliers of a backup method of contacting you in the event of a loss. • Have all documents of incorporation, business license, etc. stored off premises or on the cloud. • Keep a “grab and go” bag with some first aid items, flashlight, batteries, radio etc near an exit.
AFTER THE DISASTER • If necessary – get a new location as soon as possible. • Secure your existing location to avoid intruders, speak to your security company for assistance. • Have your security company or a locksmith change locks at the new location. • Have the post office redirect mail (in BC you may need to produce your business license for this). • Install signage on your premises, or close by, informing your customers how to contact you. • If the store computer is not immediately accessible, get a new laptop or tablet. • Schedule a meeting with your staff to strategize workflow and timing around re-opening. • Whatever you have had to replace, document it immediately as trying to sort it out later can be a nightmare.
Harry Peterson is Executive Vice-President SHAW SABEY& ASSOCIATES LTD, one of Western Canada’s largest privately owned insurance brokers.
44 January | February 2014
WHAT’S NEW Putting Spam Back in the Can Bill C-28 is an attempt to put a stop to malicious electronic messaging. Canada’s business community needs to get on the right side of the legislation Canada’s electronic world will undergo change this July when much of Bill C-28, the country’s new anti-spam legislation, comes into effect. The Bill seeks to address the problem of mass commercial e-mails (CEM) that currently stands at about 80 per cent of global message traffic. The short take on the Bill is that it will limit online marketers’ ability to obtain your E-address and send bulk messages that clog inboxes. The longer view is that it will create change that will see marketers move to new techniques to reach the largest market in the history of human kind. Here’s what the bill seeks to achieve. When the new law is in force, it will generally prohibit the sending of commercial electronic messages without the recipient’s consent (permission), including messages to email addresses and social networking accounts, and text messages sent to a cell phone. The law will prohibit the alteration of transmission data in an electronic message that results in the message being delivered to a different destination without express consent. The Bill also regulates the installation of computer programs without the express consent of the owner of the computer system or its agent, such as an authorized employee. Under the new regs there must not be use of false or misleading representations online in the promotion of products or services. As well, the collection of personal information through accessing a computer system would be in violation of federal law (e.g. the Criminal Code of Canada); and the collection of electronic addresses by the use of computer programs or the use of such addresses, without permission (address harvesting). Much of what the Bill does
involves the notion of ‘consent’. This may come in the form of an explicit request such as an opt-in from a website or a written note asking for messaging. Those who already have an established business relationship over the past two years may also receive a message as well as those who have made a request for information over the past six months. Those with personal relationships with the sender are free to receive CEM’s, as are those who are classed as volunteers or people with a relationship related to the business. People who have published their e-mail addresses in directories, web pages and business listings are considered fair game to marketers as well as those who have offered a business card at a trade show. With fines of up to $1 million for individuals and $10 million for businesses, companies need to stay on the right side of the legislation by instituting a list of best practices. • Ask permission • Stay in touch • Provide choices • Keep lists clean • Send only what people want • Segment your lists • Manage your info More information on Canada’s new Anti-Spam laws can be found on the Internet at http:// laws-lois.justice.gc.ca/eng/ acts/E-1.6/index.html GVA to Add New Lines for Canadian Market Distribution GVA has announced the importation, for the Canadian market, of two new exclusive premium cigar lines: Fuente Aged Selection & Prometheus. As part of GVA’s value added “Private Importation Program”, Canadian tobacconists will be soon able to offer to their most astute cigar lovers, such exclusivities as Fuente Fuente Opus X [FFOX] (aka Opus 22 -10th anniversary) and the God of Fire cigars & accessories lines. FFOX was launched 10
years ago to support the very worthy Cigar Family Charitable Foundation (www.cf-cf.org ) which supports educational endeavors in the Dominican Republic. In addition to the Opus22 10th Release Commemorative Humidors (22 + 1), Fuente Aged Selection will release 1,500 of the 6-cigar assortments encased in the limited edition travel humidors (FFOX 6 for CFCF) and 150 of the Limited Edition. The Prometheus brand was created in 1992 and named after the god from Greek mythology who stole fire from Zeus and gave it to humans. Prometheus has become a true global brand whose products are now sold at the finest cigar shops in 25 countries. The Prometheus products are known worldwide for their superb quality, and stylish modern designs. Thanks to your generous support, Prometheus and God of Fire have been able to donate over $850,000 to Cigar Family Charitable Foundation from the sales proceeds since its inception in 2004. NACDA is delighted to announce that Anne Kothawala has been hired as the new President of NACDA. Anne as-
sumed responsibility of NACDA as of November 18th, and is quickly becoming involved in the day to day activities. She will be reaching out to members in the coming weeks to hear about your business challenges and how NACDA can best address them. Anne Kothawala is a bilingual, strategic, results-driven senior executive with expertise in stakeholder management, strategy, government relations and communications. She has a solid track record as an association manager gaining profile and achieving results for several industries. She looks forward to learning more about the convenience store distribution industry and applying her past experience to achieve success for NACDA members. The NACDA Board of Directors looks forward to working with our membership to enhance our value. We are confident that Anne’s professionalism, leadership, experience and can-do attitude will have a positive and immediate impact to increase NACDA’s profile and the work we do for our members. Please join us in wishing Anne a warm welcome to the NACDA team!
Ad Index Bulloch Technologies Inc.......................................................... 29 Containment Solutions............................................................ 16 Core-Mark International Inc. ................................................ 2, 23 DirectCash ............................................................................. OBC eGenuity LLC ............................................................................ 42 Gourmet Chips ....................................................................... IBC Istobal USA ................................................................................ 41 International Carwash Association........................................... 19 MI Petro/McIntosh Petroleum ........................................... 12, 14 National DSD ............................................................................ 27 OPW.......................................................................................... 10 PDQ Manufacturing ................................................................. 37 PEI ................................................................................................ 7 Pumps & Pressure ..................................................................... 15 Tanknology Canada Inc. ........................................................... 13 WPMA ........................................................................................ 36
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46 January | February 2014 1. copper line below celing, 2. black pipe on wall, 3. pale yellow frame around menu, 4. small sign on cookie display, 5. pasteries in tray right side, 6. colour of sign on small jar left side, 7. sign on floor, 8. colour of man’s t-shirt, 9. small label on monitor below man’s arm, 10. text on chalk board right side wall.
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Differences between left and right photos. Spot all 10.
There are 10 differences between these 2 photos. See if you can spot them.
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