Avanti Issue 3 2023

2023 ISSUE 3

T H E

V O I C E

O F

7 - E L E V E N

F R A N C H I S E E S

Tackling External Challenges Partnering To Address A Dwindling Labor Pool & Legislative Issues

Overcoming Our Labor Obstacles Importance Of Engaging In Legislative Matters Franchisee Turnover Setting Up SSI/NRI In RIS 1.0 CFA Day 2023 CMN Hospitals And Mental And Behavioral Health Bracing For Mandatory Anti-Smoking Signs Fire Prevention & Emergency Preparedness 2023 Mid-Year Legislative Review

Second Quarter 2023 Affiliate & Board Of Directors Meeting Summary Page 44

©2023 7-Eleven, Inc. 7-ELEVEN, 7REWARDS, SLURPEE, SPEEDWAY, Moving S Design, and SPEEDY REWARDS are trademarks of 7-Eleven, Inc. and Speedway LLC. ©2023 The Coca-Cola Company. ©2023 RIOT GAMES, INC.

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AVANTI 2023 ISSUE 3

2023 ISSUE

2023

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S h a ri n g aT h n in gS Tr if e ct e le ve n ’s W in y Fuel aSucmceses G o a l T H E

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Page

THE VOICE OF 7-ELEVEN FRANCHISEES

Contents

2nd Quarter Board Directors Meeting Summary

Page 44

Our Labor Recruitment 14 Central Florida FOA Mixes Compassion With Business 15 Overcoming & Retention Obstacles

By Sukhi Sandhu, NCASEF Chairman

Importance Of Engaging 19 The In Legislative Matters

By Joe Rossi, NCASEF Executive Vice Chair

21 Franchisee Turnover

17

EVFOA Hosts Meet & Greet With NCASEF Officers

33

Franchisees & Vendors Tee Up For CMN Hospitals

34

Sun & Sales At The San Diego FOA Trade Show

38

Keystone FOA’s Debut Trade Show Draws Accolades

42

Joe Saraceno FOA Rallies Members To Tackle Challenges

54

Midwest FOA Charity Golf Event

60

Generosity At The 2023 FOAC Charity Golf Tournament

64

California FOAs Unite For Trade Show & Charity Golf

65

Camaraderie & Philanthropy Highlight EVFOA Events

By Eric Karp, Esq., General Counsel To NCASEF

25 Setting Up SSI/NRI In RIS 1.0

By Jawad Ursani, Secretary, FOA Of Southern California

Day 2023—Empowering Franchisees 29 CFA In Washington, D.C. 59 NCASEF’s Impact At Children’s National Hospital

By Nisar Siddiqui, Vice President, Midwest FOA

Miracle Network Hospitals 31 Children’s And Mental And Behavioral Health

By Children’s Miracle Network Hospitals

For The Impact Products & Deals At The SF/MB 35 Bracing Of Mandatory Anti-Smoking Signs 67 Great FOA Trade Show

43 2023 Mid-Year Legislative Review

By Thomas Bunting, Senior Manager External Engagement, Reynolds Marketing Services Company

AVANTI is published by the National Coalition of Associations of 7-Eleven Franchisees for all independent franchisees, store managers and interested parties. National Coalition offices are located at 3645 Mitchell Road, Suite B, Ceres, CA 95307. For membership information, call 855-444-7711 or e-mail nationaloffice@ncasef.com.

The views and opinions expressed in the articles and columns published in AVANTI Magazine are those of the authors and do not necessarily reflect the official policy or position of the National Coalition of Associations of 7-Eleven Franchisees, its officers or its Board of Directors.

DE

By John Harp, CSP, ARM—Risk Engineering Consultant, Mitsui Sumitomo Insurance Group

EN

PA RT M

Prevention & Emergency 39 Fire Preparedness—Are You Ready?

TS

By Ali Haider, Michigan FOA President; Board Member Small Business Association of Michigan

Member News............10

Bits & Pieces..........49

Legislative Update.......48 SEI News...................61 Vendor Focus....66 FOA Board Meetings.....68 FOA Events.....................70 2023 ISSUE 3 AVANTI

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Member News

NATIONAL COALITION OF ASSOCIATIONS OF 7-ELEVEN FRANCHISEES NATIONAL OFFICERS & STAFF Sukhi Sandhu

C-Store Industry Booms Post-Pandemic In 2022, the U.S. convenience store industry experienced a significant surge in sales, rebounding strongly as the country returned to regular routines and shopping habits, reported Convenience Store News. Convenience stores saw record sales of $814 billion, a 23 percent increase compared to the previous year, according to the 2023 Convenience Store News Industry Report. The revitalization of commuting and shopping behaviors contributed heavily to this growth, as did a 30 percent increase in motor fuel sales, which brought the industry’s 2022 fuel revenue to $538.7 billion.

Despite inflationary pressures, in-store sales reached a new high of $275.3 billion, an increase of 6.6 percent from the previous year. This surge was influenced not only by higher product prices, but also by a 1.5-percent increase in store count, primarily driven by single-store operators. Overall industry gross profits saw a boost of 3.3 percent, with in-store

“Convenience stores saw record sales of $814 billion in 2022, a 23 percent increase compared to the previous year.”

gross profits outpacing those from motor fuel. The foodservice category emerged as a key player, driving in-store gross profits to total $73.35 billion, while fuel profits amounted to $50.61 billion.

7-Eleven Tops CSP’s C-Store List 7-Eleven has once again taken the #1 spot on CSP’s Top 202 Convenience Stores list, which ranks the largest c-store chains in the industry based on store count. With 13,000 locations, 7-Eleven has nearly double the number of stores than Alimentation Couche-Tard (#2 with 7,103 stores) and five times more than Casey’s General Stores, which ranked #3 with 2,422 units. Rounding up the top five are EG America at #4 with 1,750 stores, and Murphy USA at #5 with 1,669.

Mastercard Ordered To Stop Blocking Rivals

EXECUTIVE VICE CHAIRMAN 312-501-4337 • joer@ncasef.com

VICE CHAIRMAN 214-208-6116 • rjn_singh@yahoo.com

Teeto Shirajee VICE CHAIRMAN 954-242-8595 • teeto.shirajee@yahoo.com

Nick Bhullar VICE CHAIRMAN 626-255-8555 • bhullar711@yahoo.com

Romy Singh TREASURER 757-506-5926 • romys@ncasef.com

Shawn Howard VENDOR RELATIONS ADMINISTRATOR 855-444-7711 • shawnh@ncasef.com

Eric H. Karp, Esq. GENERAL COUNSEL 617-423-7250 • ekarp@wkwrlaw.com John Riggio MEETING/TRADE SHOW COORDINATOR 262-394-5518 • johnr@jrplanners.com

The U.S. Federal Trade Commission (FTC) recently finalized a consent order to address charges against Mastercard, alleging that the financial services company employed illegal tactics to compel merchants to route debit card payments exclusively through its own network, reported the Westchester &

The strength of an independent trade association lies in its ability to promote, protect and advance the best interests of its members, something no single member or advisory group can achieve.

The independent trade association can create a better understanding between its members and those with whom it deals.

National Coalition offices are located in Ceres, California.

John Santiago MANAGING EDITOR 267-994-4144 • avantimag@ncasef.com

The National Coalition Office

AVANTI 2023 ISSUE 3

Joe Rossi

Rajneesh Singh

continued on page 12

10

NATIONAL CHAIRMAN 855-444-7711 • sukhi.sandhu@ncasef.com

April J. Key GRAPHIC DESIGNER lirpayek@gmail.com

3645 Mitchell Road Suite B Ceres, CA 95307 855-444-7711 nationaloffice@ncasef.com

The Voice of 7-Eleven Franchisees 2023 ISSUE 3 ©2023 National Coalition of Associations of 7-Eleven Franchisees Avanti Magazine is the registered trademark of The National Coalition of Associations of 7-Eleven Franchisees.

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2023 ISSUE 3 AVANTI

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Member News continued from page 10

Fairfield Counties Business Journals. As per the FTC’s directive, Mastercard is now obligated to share the necessary customer account information with rival networks to facilitate the processing of debit payments, effectively overturning its purported strategy of barring merchants from utilizing competing networks to handle specific ecommerce debit payments.

The FTC asserted that Mastercard’s practices contravened the 2010 Dodd-Frank Act’s Durbin Amendment and its associated rule, Regulation II, which mandates banks to facilitate at least two unrelated networks for every debit card. Mastercard was accused of breaching this law by implementing policies that ostensibly obstructed merchants from directing ecommerce transactions through alternative payment card networks using Mastercard-affiliated debit cards stored in

e-wallets. Despite the consent order, no financial penalties against Mastercard were disclosed, nor was there a requirement for the company to acknowledge its alleged missteps.

“The FTC has finalized a consent order to address charges against Mastercard, alleging that it employed illegal tactics to force merchants to route debit card payments exclusively through its own network.”

SEI Leaders Among The 2023 Top Women In Convenience Convenience Store News’ 2023 Top Women in Convenience (TWIC) class, comprising 87 established and emerging female leaders in the convenience store industry, has recognized two women from 7-Eleven, Inc. Among the honorees are Treasa Bowers, Senior Vice President of Human Resources, who was recognized as a Woman of the Year for her exceptional impact on the success and direction of SEI, as well as her positive impact on the convenience store industry as a whole.

The Mentors category, acknowledging women who have made an extraordinary impact on the careers of their colleagues, honors SEI’s Jennifer Goschke, Vice President continued on next page

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The honorees were chosen based on their innovative initiatives, financial and strategic accomplishments, problem-solving acumen, exceptional performance, mentoring efforts, charitable participation, and other notable attributes. All winners will be recognized in the August issue of Convenience Store News and at an awards ceremony at the 2023 NACS Show in Atlanta.

Proposed Bill Would Save Retailers $15 Billion A Year The Merchants Payments Coalition (MPC) recently welcomed a new estimate showing that passage of the Credit Card Competition Act would save merchants and

their customers at least $15 billion a year.

Payments consulting firm CMSPI last year estimated that the Credit Card Competition Act would save merchants and consumers at least $11 billion a year, based on prepandemic 2019 credit card spending. As the bill was reintroduced in early June, CMSPI revised its estimate based on the latest figures and now says the savings would “conservatively” amount to $15 billion.

The legislation would require banks with at least $100 billion in assets to enable cards they issue to be processed over at least two unaffiliated networks—Visa

or Mastercard plus a competitor like NYCE, Star or Shazam. Banks would decide which networks to enable, but merchants would then choose which to use on individual transactions, meaning networks would have to compete over fees, security and service.

In addition to lowering fees, the bill would improve security. Independent networks have less fraud than Visa and Mastercard’s

“A new CMSPI estimate shows that passage of the Credit Card Competition Act would save merchants and their customers at least $15 billion a year.”

continued on page 49

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Central Florida FOA Mixes Compassion With Business

The Central Florida FOA had a memorable start to May, as they pulled off a series of successful events, each centered on giving back to the community and fostering better business relationships. It kicked off with the sold-out Charity Golf event on May 3 at the Orange County National Golf Center and Lodge in Winter Garden, Florida.

With 149 golfers putting their skills to test on the greens, they didn’t just enjoy a day of golf but also rallied to raise funds for two significant causes. The event saw a tremendous wave of generosity, with a total of $20,000 being raised—$10,000 each for Children’s

14

AVANTI 2023 ISSUE 3

Miracle Network Hospitals Swim Across America.

and

As the excitement settled from the golf event, the focus shifted to the Central Florida FOA Trade Show on May 4. Taking place at the DoubleTree by Hilton Hotel Orlando at SeaWorld in Orlando, Florida, the event was a vibrant showcase of business potential. The trade show floor was teeming with exhibiting vendors, each one eager to display their latest products and deals. The event served as an excellent platform for vendors and franchisees to connect and explore business-building partnerships.

But the week of activities wasn’t complete without another demonstration of commitment to charity. On May 6, Central Florida FOA President Fari Ishani stepped away from his “business suit” and into his swimsuit to participate in a Swim Across America event in Saint Pete, Florida. Showing impressive resilience, he swam a mile across the ocean, and in doing so, raised an additional $5,000 for the charity. The weeklong activities underscored the Central Florida FOA’s dedication to combining the worlds of business and philanthropy, making an impact in more ways than one.

Overcoming Our Labor Recruitment & Retention Obstacles

BY SUKHI SANDHU, NCASEF CHAIRMAN

In an increasingly competitive labor market, the battle for reliable employees is growing fierce. The stakes are high, with a constant surge in the employment rate and heightened competition for quality labor. This is especially significant for our stores, where maintaining a consistent and reliable workforce is pivotal to our bottom lines.

“The market is saturated with competitors who offer attractive benefits and wages that can be challenging for us to match.”

Every time an employee leaves, it costs us money and disrupts the workflow.

The cost of turnover includes training new employees, dealing with potential errors made by inexperienced staff, and the need for double coverage during the hiring process. This not only impacts our finances, but also the overall efficiency of our operations.

To address this issue, we must first understand the employment rates and the difficulties in recruiting quality employees. The market is saturated with competitors who offer attractive benefits and wages that can be challenging for us to match. For example, Buc-ee’s, a popular convenience store chain, offers impressive hourly rates and various other incentives for their workers. To combat the allure of such competitors, we need to make our positions appealing and create a sense of pride in working for our brand.

I can assure you that the NCASEF officers and Board members have not

been sitting idly by—we are taking a proactive approach to tackle our labor recruitment and retention challenges.

We have been working with SEI as they develop and introduce the new selfcheckout system, which can alleviate some of the workload on our sales associates. By simplifying operations and reducing the burden on our employees, we hope to improve their overall experience and job satisfaction.

These discussions were initiated during a CEO Roundtable, where the need to address labor retention was recognized.

Furthermore, we have signed on with Paradox, an artificial intelligence talent recruitment company, to streamline the hiring process. By using their AI assistant, Olivia, we can automate preinterview screenings and simplify the entire recruitment process. This not only saves time, but also ensures a personalized candidate experience.

Additionally, Paradox offers electronic onboarding, further simplifying administrative tasks and reducing the time it takes to integrate new employees.

This service is available at a reasonable monthly cost for franchisees, and it provides an efficient talent acquisition

“I can assure you that the NCASEF officers and Board members have not been sitting idly by—we are taking a proactive approach to tackle our labor recruitment and retention challenges.”

“Looking at industry trends, we find that many convenience store retailers are implementing measures to improve employee retention.” solution.

In our efforts to attract and retain employees, we are also exploring healthcare benefits through Dafanie Financial Group. This allows franchisees to provide their employees with comprehensive health insurance plans that may include vision coverage, dental insurance, life insurance, and disability insurance. Offering such benefits will not only help us retain employees, but also enhance their overall well-being.

Another partnership we have established is with T-Mobile. Through this collaboration, franchisees and their employees can access affordable phone services and even receive free smartphones, which will save them money on their monthly bills.

Additionally, T-Mobile offers multiple sensor solutions that include temperature monitoring for refrigerators and freezers; energy monitoring; and smart waste bin sensors that would help make our store operations more efficient.

We are also working with Payality, a payroll processing company, to allow stores to fund their employees’ payrolls continued on page 17

2023 ISSUE 3 AVANTI

15

Overcoming Our Labor Recruitment & Retention Obstacles continued from page 15

“We’re exploring all avenues to recruit quality personnel and provide them with competitive benefits so that they stay longer with us.” directly from their open account, similar to ADP. This is not only a step towards simplifying the payroll process but also ensures the accuracy of payroll expenses reflected in financial reports.

Looking at industry trends, we find

that many convenience store retailers are implementing measures to improve employee retention. According to a recent survey, pay raises, flexible scheduling, and employee recognition programs are commonly adopted strategies.

Furthermore, offering improved training, additional paid time off, and enticing benefits like health insurance and vacation time have also yielded positive results. These efforts have led to a significant decrease in short-term employee turnover, reflecting the positive effects of improved wages and working conditions.

We’re exploring all avenues to recruit quality personnel and provide them with competitive benefits so that they stay longer with us. We understand that employee retention isn’t only about offering competitive pay rates. Factors

such as morale, job complexity, and work environment also play significant roles. Therefore, we’re investing in tools and benefits to make the everyday lives of our franchisees and sales associates easier.

These facts point to our unwavering dedication to overcoming our current labor recruitment and retention obstacles, and creating a vibrant and sustainable work environment in our stores. As we look to the future, we will continue to adapt and innovate in our ongoing mission to foster a productive, beneficial, and fulfilling workplace for our valued employees.

SUKHI SANDHU CAN BE REACHED AT 855-444-7711 or sukhi.sandhu@ncasef.com

EVFOA Hosts Meet & Greet NCASEF Officers The Eastern Virginia FOA hosted a Meet & Greet event with NCASEF officers on May 10, 2023, at the Waterford Event Center in Springfield, Virginia. The event included NCASEF Chairman Sukhi Sandhu and EVFOA President and NCASEF Treasurer Romy Singh. Attendees seized the opportunity to voice their ongoing concerns, fostering an atmosphere of transparency and shared purpose.

The occasion was not all business, however, as attendees were also treated to a delicious lunch, striking a delightful balance between important discussions and casual socializing.

2023 ISSUE 3 AVANTI

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AVANTI 2023 ISSUE 3

The Importance Of Engaging In Legislative Matters

BY JOE ROSSI, NCASEF EXECUTIVE VICE CHAIR

Managing a convenience store is about more than ensuring shelves are stocked and customers are served. It’s also about actively participating in the

“Our operations can be significantly affected by changes in legislation, such as tobacco flavor bans, credit card swipe fees, minimum wage increases, and modifications to labor laws.” legislative landscape at both the local and national levels. Our operations can be significantly affected by changes in legislation, such as tobacco flavor bans, credit card swipe fees, minimum wage increases, and modifications to labor laws. Therefore, it is crucial for us as franchisees to voice our concerns and advocate for our interests.

accumulate to a significant cost, eating into our margins, so we must advocate for lower fees or at least a reevaluation of the fee structures to better align with the realities of our stores.

The debate around minimum wage increases is multifaceted. While we all want our employees to earn a livable wage, steep increases can place an enormous burden on small businesses like ours. We should campaign for sensible, incremental increases that balance the need for fair wages with the economic realities of operating a small business.

The same applies to labor laws.

Legislative changes, such as those related to overtime or sick leave, could significantly increase our operational costs. Again, while we want fair treatment for our employees, it’s essential that these laws consider the viability of small businesses.

Tobacco sales form a substantial part of our revenue, so the implementation of tobacco flavor bans could impact our financial health. Many customers visit our stores looking for tobacco products, and losing them would also affect secondary sales because these customers usually buy other items along with their packs of cigarettes, like gum, energy drinks, or coffee. So it’s in our interest to oppose such legislation, not by denying the health impacts of tobacco, but by advocating for balanced regulations that consider the potential economic fallout.

“A significant part of this battle is fought through our local FOAs and the National Coalition.

These organizations serve as our collective voice, advocating on behalf of all 7-Eleven franchisees.”

Credit card swipe fees are another critical area where we must take a stance.

As convenience stores, we often process numerous small transactions daily, each subject to a swipe fee. These fees can

So, how do we, as franchisees, make our voices heard? A significant part of this battle is fought through our local FOAs and the National Coalition. These organizations serve as our collective

“Changes in legislation can significantly impact our operations, profitability, and even our ability to serve our communities.” voice, advocating on behalf of all 7-Eleven franchisees.

We need to be active participants in these bodies, understanding proposed legislation, discussing potential impacts, and agreeing on a collective response. It is through these organizations that we can lobby local and national lawmakers, submit testimonials, and work with industry groups to influence legislative outcomes.

Another powerful tool at our disposal is the relationships we build within our communities. As local business owners, we can engage with local stakeholders, including customers, other businesses, and community leaders. We can leverage these relationships to rally support for our cause, reminding them that the success of our stores contributes to the health of the local economy.

Changes in legislation can significantly impact our operations, profitability, and even our ability to serve our communities. So we need to stand up, voice our concerns, and fight for our interests. By doing so, we can help shape a regulatory environment that considers our needs, ensuring the continued success of our stores and the entire 7-Eleven network.

JOE ROSSI CAN BE REACHED AT 312-501-4337 or joer@ncasef.com

2023 ISSUE 3 AVANTI

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Franchisee Turnover

BY ERIC H. KARP, ESQ., GENERAL COUNSEL TO NCASEF

The United States Federal Trade Commission Franchise Rule requires all franchise companies to annually disclose not only the number of franchised locations they have, but a variety of other data regarding increases or decreases in the number of franchised locations and the reasons for those changes.

One of the reasons for this required disclosure is to allow a prospective franchisee to gauge whether the franchisee community is growing or shrinking and in either case, attempt to understand why.

One way of summarizing this data is to estimate the extent to which the franchised locations in the system are turning over, that is to say, changing hands or status, in and if so, how. In my work with the National Coalition and other franchisee associations, I have developed my own definition of turnover, which consists of the following: (Terminations + Non-renewals + Reacquisitions by the Franchisor + Abandonments of locations) / (total franchised locations at the start of the year + total franchised locations at the end of the year/2).

All of the information necessary to make these calculations can be found in Item 20 of each Franchise Disclosure Document issued by 7-Eleven, Inc. One of our roles as General Counsel is to be a repository of important documents in the system. As such, we maintain a library of Franchise Disclosure Documents going

“One way of summarizing this data is to estimate the extent to which the franchised locations in the system are turning over—that is to say, changing hands or status—and if so, how.” back nearly 20 years.

Transfers are sales of franchised locations from one franchisee to another franchisee. These transactions can sometimes be the result of distress or bad news, such as the death or incapacity of a franchisee, or good news in the sense that a franchisee has reached the stage where he or she wants to retire or engage in other activities. The number of transfers in this system also includes those situations where 7-Eleven gives a franchisee who has received a termination notice a period of time to attempt to sell the location rather than having it terminated. (Termination notices can often be avoided by curing a default and staying in compliance with the franchise agreement and its operating standards.) Nevertheless, when such a sale is concluded, it is treated as a transfer rather than as a termination. This is one

“These transactions can sometimes be the result of distress or bad news, such as the death or incapacity of a franchisee, or good news in the sense that a franchisee has reached the stage where he or she wants to retire or engage in other activities.”

of the reasons, as you will see, that the number of terminations in the 7-Eleven system has historically been low. On the other hand, over the past five years there have been nearly 1,200 transfers. It is also the reason that we don’t count this statistic in the turnover rates, because we cannot determine how many of the transfers were good news and how many of the transfers were bad news events.

Before we take a look at turnover rate in the 7-Eleven system, let’s define our terms: • Terminations. This is an event where the franchisor chooses to terminate the franchise agreement and require the franchisee to leave the business without compensation.

As stated, these events are typically quite rare in the system. In fact, over the last 10 years there have been only 26 terminations.

• Non-renewals. If the franchisee completes the term of the franchise agreement, it expires by its own terms and the franchisee elects not to renew and sign a new franchise agreement and thus exit the system, this is treated as a non-renewal. This is the rarest of events in the 7-Eleven System, having occurred only twice in the last 17 years.

• Reacquisition. If the franchisor chooses to purchase the location continued on page 23

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“The reasons for these events are myriad and complex and we will continue to investigate and bring you our findings.”

the 50 states of the United States.

Our analysis started with 2006, when there were 3,525 franchised locations at the start of the year, to 2022 when there were 7,280 such

in the 7-Eleven system, ending with 2022, summarized on the chart below, averaging 4.5 percent. For perspective, the average turnover rate for the three years ended 2012 was 1.9 percent.

locations at the end of that year, meaning that over that period, the number of franchised locations had doubled.

It occurs to us that many franchisees will not find these numbers surprising given the material number of franchised locations that have changed hands in recent years. The reasons for these events are myriad and complex and we will continue to investigate and bring you our findings.

from the franchisee, this is treated as a reacquisition. It may result from a simple business decision by 7-Eleven or in some instances a pathway to the resolution of a dispute between franchisee and franchisor. Over the past 10 years more than 1,700 locations have been bought back by 7-Eleven.

• Abandonments. If the franchisee simply walks away from the location, including those instances where the franchisees exercise her or his right to terminate the franchise agreement, this is treated as a catchall for locations where the franchisee is no longer the operator, but it is not the result of a termination, a nonrenewal, or a reacquisition. Over the past 10 years, these abandonments have averaged about 75 locations per year.

• Total Franchised Locations. This data can be found in Chart 1 of item 20 of each FDD which discloses the total number of franchised stores in the system at the start and the end of each of the last three complete calendar years. For the purposes of this disclosure and the calculation of the turnover rate, we count only events and locations within

We analyzed turnover rates in the 7-Eleven system going back 17 years.

That detailed study will be included in the presentation that I will make at this year’s Convention and Trade Show in Las Vegas. But for the purpose of this article, I would like to look at just the turnover rates over the last three years

“For the purposes of this disclosure and the calculation of the turnover rate, we count only events and locations within the 50 states of the United States.”

Our continuing role is to research and report on information that we believe will be of interest to every franchisee in the system. We hope that this information is useful.

ERIC H. KARP CAN BE REACHED AT 617-423-7250 or ekarp@wkwrlaw.com

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Sources: 1. Nielsen xAOC + C NCC $ Consumption, L52 as of 2/16/22 2. NPD Beverage Consumption by Generational Groups 1/26/22 3. Buzzback Mondelez SOUR PATCH KIDS Flavor Screen & TURF, 7/21/21 4. Nielsen Total US xAOC+Conv Dollar sales %Chg Sour Patch Kids and SPK WatermelonL52 weeks ending 1/1/22 5. Nielsen US Total C-Store peg bag by flavor profile YTD 7/30/22 © Mondelēz International group

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Setting Up SSI/NRI In RIS 1.0

BY JAWAD URSANI, SECRETARY, FOA OF SOUTHERN CALIFORNIA

Retailer Initiative (RI) is 7-Eleven’s strategy for providing customers with what they want through item-by-item management at each store. The product assortment in our industry is enormous, and being able to narrow it down to fit our footprint is what drives sales and profits. 7-Eleven’s merchandising team does a great job bringing products that fit our customers’ needs, but opportunity still exists to fine tune our store’s product mix. We as independent contractors can bring selected PSA category items to offer our customers and increase our sales and profits.

“7-Eleven’s merchandising team does a great job bringing products that fit our customers’ needs, but opportunity still exists to fine tune our store’s product mix.”

We can do this by adding SSI and NRI items to our store inventory. As you may be aware, we identify all items in our system as Recommended items, SSI items or NRI items. So, what is the difference between the three?

Recommended Item: Items that are sold in 7-Eleven stores across the nation.

These items are electronically ordered from the system on a regular basis.

Store Supported Item (SSI): An SSI is a non-recommended item from a recommended vendor. When requesting

an SSI setup, keep in mind that you plan to reorder from the system and will keep it as your permanent assortment.

Non-Recommended Item (NRI): NRIs are items that are not electronically ordered and come from nonrecommended vendors. Seasonal items or in/out items are typically set up as NRI. We have been asked by many vendors and franchisees how to properly set up SSI/NRI in our RIS 1.0 system. I will walk you step-by-step through the process.

1. Access the SSI/NRI setup screen through the Product Assortment menu.

2. Click on the Item Setup icon to begin item setup.

3. Enter/scan the UPC for the product to initiate the setup process.

4. Enter item description.

5. Select the vendor. THIS IS A CRITICAL STEP! If the product is provided by a non-recommended vendor, then pick the “Z-EDI” option. This will make the product a Non-Recommended Item (NRI).

NOTE: NRIs are not supported by the ordering functionality through the system. If the item is provided by a recommended vendor and you would like to make the item a permanent part of your assortment so you can reorder the product, then select the vendor from the drop-down picklist.

This will make the item a Store Supported Item (SSI). A key benefit

of the SSI is that it will receive full system support as a Recommended Item.

6. Select the item type from the dropdown. For sellable goods, use the “retail” option.

7. Select the PSA, Category, and Subcategory for the item (this is important for ordering purposes).

8. Select whether the item is a multipack.

Items such as beer and cigarettes are commonly sold in multipacks, all

“We can do this by adding SSI and NRI items to our store inventory.” continued on page 27

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others select “NO.” 9. Enter the item cost. If the item includes a bottle deposit, that also needs to be entered.

10. Enter the retail price and the LDU (lowest deliverable unit) for the item.

“SSIs will need to be approved by SEI/IT team before it can be ordered through the system.”

11. Select the retail unit of measure from the drop-down menu. This information is typically found on the item label.

“UPC not in DSD catalog.” “Set Size Group to Correct Multipack Selection,” “Ineligible item for vendor,” and “Future Recommended Item.”

12. Once finished, hit the “DONE” button on the right side of the screen to complete the item setup.

SSI requests pending completion due to exceptions can be identified in the “SSI Approval Date” column. If further

“SSI/NRI when properly screened for safety and quality can bring additional sales and profits to each store.”

Congratulations, the setup process is complete.

NOTE: If the item was set up as an NRI, no further action is required. The item will ring up at the register and be tracked on the ABC report.

SSIs will need to be approved by SEI/ IT team before it can be ordered through the system. To track the status of the SSI request, click on Product Assortment on the Non-Recommended Item Maintenance/Item Set Up Screen.

If your request is rejected, a reason code will be provided for your reference and investigation. This can be displayed for each item by hovering over the BLUE “information” icon in the “Rejection Reason” column.

NOTE: a rejected item cannot be set up as an SSI unless it is modified and resubmitted. Common reasons for SSI rejections include “invalid UPC,”

action is needed on the item to compete, an “Attention” icon will appear next to the Approval Date. Click on the “Edit” icon and make the appropriate changes.

As mentioned in the beginning of the article, Retailer Initiative (RI) is 7-Eleven’s strategy for providing customers with what they want through item-by-item management at each store.

SSI/NRI when properly screened for safety and quality can bring additional sales and profits to each store. At NCASEF, we will continue to bring value to our vendors partners, franchisees and SEI by working together to make 7-Eleven the first choice for all of our customer’s needs.

JAWAD URSANI CAN BE REACHED AT 310-503-0749 or jsursani@yahoo.com

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CFA Day 2023—Empowering Franchisees In Washington, D.C.

BY NISAR SIDDIQUI, VICE PRESIDENT, MIDWEST FOA

I recently had the privilege of representing NCASEF at CFA Day 2023, held from June 20-22 in Washington, D.C. This annual event organized by the Coalition of Franchisee Associations brings together franchisee businesses from various industries to collectively address the challenges they face on a day-to-day basis. The opportunity to join forces with other franchisees and industry experts was both insightful and empowering.

“This annual event organized by the Coalition of Franchisee Associations brings together franchisee businesses from various industries to collectively address the challenges they face on a day-to-day basis.”

CFA Day provided a platform for engaging dialogue with esteemed guest speakers who shed light on crucial topics relevant to franchisee businesses.

Ms. Lois C. Greisman, the head of the Division of Marketing Practices in the Federal Trade Commission’s Bureau of Consumer Protection, shared valuable insights on combating fraud in the industry, including mail fraud, illegal spam, and internet scams. Her expertise and guidance were invaluable in navigating such challenges.

We were also fortunate to have Mr. Nirav Rajpara, an economic development specialist at the U.S. Small Business

Administration, deliver a presentation on the SBA’s role during the COVID-19 pandemic. His insights provided valuable guidance on accessing resources and support for small businesses during uncertain times.

CFA Day also allowed us to connect with federal legislators who are supportive of small businesses and are aware of the unique challenges faced by franchisees. Rep. Beth Van Duyne (RTX-24) highlighted the crucial role that small businesses, including 7-Eleven, play in providing convenience to communities. During the Congressional Reception, we had the opportunity to hear from Rep. Josh Gottheimer (D-NJ5), who discussed his position on small business issues and emphasized the importance of addressing the concerns of franchisees.

One of the highlights of CFA Day was the opportunity to advocate for the issues that small businesses, including franchisees, currently face. Our team made visits to the offices of three Congress members to raise awareness and discuss these issues: Rep. Pete Stauber (R-MN08), Rep. John James (R-MI-10), and

“CFA Day provided a platform for engaging dialogue with esteemed guest speakers who shed light on crucial topics relevant to franchisee businesses.”

Rep. Hillary Scholten (D-MI-03). We focused on three key issues: • Labor Shortage and Guest Worker Program: As small businesses recover from the impact of the pandemic in an inflationary economy, we emphasized the need for a seasonal temporary worker program to fully staff our businesses and facilitate growth.

• Asylum Seeker Work Authorization: We proposed a more orderly asylum application process that would provide businesses with muchneeded labor while ensuring a fair and regulated system.

• Credit Card Swipe Fees: The dominance of Visa and Mastercard in the credit card network market has imposed crushing fees on small businesses. We advocated for increased competition in this field to help reduce swipe fees, ultimately resulting in lower costs for our customers.

CFA Day not only provided valuable insights into legislative issues specific to franchising, but also facilitated networking opportunities with franchisees from over 20 different brands.

This collaborative environment allowed us to share experiences, exchange ideas, and strengthen our collective voice as franchisees.

NISAR SIDDIQUI CAN BE REACHED AT 248-703-0947 or nisarsid1@yahoo.com

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Children’s Miracle Network Hospitals And Mental And Behavioral Health

BY CHILDREN’S MIRACLE NETWORK HOSPITALS

At Children’s Miracle Network Hospitals, we believe that kids need help now. We are unrelenting in our desire to ensure every child has a healthy future, and that includes mental and behavioral health.

“One-hundred percent of U.S.-based member hospitals offer some mental health service, resource, or community benefit.”

One-hundred percent of U.S.-based member hospitals offer some mental health service, resource, or community benefit. These vary from clinical care and telehealth to school-based care and community education. While the pandemic certainly accelerated and magnified an existing crisis, the demand for youth mental health services was happening beforehand—and experts predict the need for services to grow.

Kids can’t wait. Without additional support, member children’s hospitals wouldn’t be able to meet critical needs like mental and behavioral health services for patients and families in their communities. We play a critical role in that process with unrestricted funding. Changing kids’ health means not only providing access to best-inclass health services and treatments, but also addressing some of the social determinants of health that cause and exacerbate the health challenges kids and families face. When you support Children’s Miracle Network Hospitals, you do both—creating a healthier, happier future for families and communities for years to come.

• 100 percent of U.S.-based member

hospitals, whether standalone or part of a broader health system, offer some mental health service, resource, and/or community benefit.

• 90 percent of U.S.-based member hospitals offer clinical services in mental health, behavioral health, psychiatry, or psychology.

• 90 percent of U.S.-based member hospitals are also integrating mental health services into primary and/or emergency care.

• 72 percent of U.S.-based member hospitals offer mental health telehealth services, many of which were implemented in response to the COVID-19 pandemic to continue services to patients and remain in place as a service today.

Member hospitals address the most challenging health issues of today and prevent and prepare for those to come.

Children’s Wisconsin’s mental and behavioral health services are for kids from 6 months to 18 years old. The pediatric mental and behavioral health team is made up of experts in child and adolescent psychiatry, counseling, pediatric psychology, neuropsychology, and psychotherapy. The team can diagnose and treat a wide range of mental health, behavior and psychiatric problems.

Golisano Children’s Hospital at the University of Rochester Medical Center’s

most pressing need is to create an urgent care center, within the next year on the URMC campus, to provide emergency assessments and interventions, community-wide coordination of youth family crisis services, and the development of innovative best practices for crisis intervention. This center will provide critical services for all youth and schools in the community as the hospital’s crisis management strategic plan for the region unfolds.

Member hospitals pioneer research and treatments—such as those related to managing mental and emotional health issues and physical ones—that transform how we care for children.

Kids need help now. Incidence rates for mental and behavioral health disorders were already rising before the onset of the COVID-19 pandemic with shortages in providers to meet this growing need.

The pandemic magnified and multiplied the incidence rates and needs for child and adolescent mental health services.

Experts predict the need for mental health treatment and services only to continue to grow post-pandemic.

Change Kids’ Health.

Change the Future.

Children’s Miracle Network Hospitals raises unrestricted funds for 170 children’s hospitals across the U.S. and Canada to help fulfill their most urgent needs. We make all of this possible at the local level. When someone donates continued on page 33

“Changing kids’ health means not only providing access to best-in-class health services and treatments, but also addressing some of the social determinants of health that cause and exacerbate the health challenges kids and families face.”

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through a business or fundraiser in their community, the donation goes directly to their local member hospital.

But we have our sights set even higher, because we know that when we improve treatments and facilities, we can address the most challenging health issues of today while preventing and preparing for those to come tomorrow. When we fund pioneering research at children’s hospitals, we transform how we care for children not just in their youth, but throughout their lives.

Use the following steps to get more involved with Children’s Miracle Network Hospitals and your local member hospital: 1. Contact your local hospital representative. Need help getting connected? Email Kate (KBurgess@ CMNHospitals.Org) with your FOA name.

2. Invite your local hospital representative to present at an upcoming Board or Member meeting.

3. Schedule a hospital tour with your local hospital representative. Please note, this is subject to COVID-19, RSV, and flu-season protocols.

4. Host a charitable event for Children’s Miracle Network Hospitals. Invite your local hospital and allow them space to showcase the power of your partnership. Local member hospitals may be able to support your event through the following: • Hosting a pre-event presentation: During pre-event meetings, local hospital representatives can share information about your local member hospital and the impact your charitable event will have on patients and families. This is a great way to build more familiarity around our partnership before your charitable event.

• Inviting a patient family to the event: Your local hospital representative can invite a patient ambassador to share their story and the impact of your local member hospital.

• Hosting a CMN Hospitals informational table: Have a table near check-in where participants can learn more about Children’s Miracle Network Hospitals and the impact your local member hospital makes in your community. Your local hospital representative can staff this table and bring informational materials.

• Welcoming remarks or words of gratitude: Your local hospital representative can share a few brief remarks to thank vendors and franchisees for supporting Children’s Miracle Network Hospitals. These remarks can be made at any point during the event, but we see great success at the start of your event or during the check presentation.

We are grateful for the many ways FOAs support and interact with their local member hospitals. For additional information or ideas, please contact Kate (KBurgess@CMNHospitals.Org).

Franchisees & Vendors Tee Up For CMN Hospitals It was a bright and warm day when NCASEF Board members, franchisees, and vendor partners took to the links at the Grand Reserve Golf Club in Rio Grande, Puerto Rico on May 15—prior to the Affiliate and Board of Directors meetings—to raise funds for Children’s Miracle Network Hospitals. The golf event raised $5,711 for NCASEF’s charity of choice, and all of the proceeds will benefit Valley Children’s Hospital in Madera, California. A special thanks to our golf sponsors: Fairlife Core Power, Hostess, and Celsius.

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Sun & Sales At The San Diego FOA Trade Show The San Diego FOA Trade Show was a summer celebration bringing together franchisees and vendors for a festive event. Held June 22 at the Four Points

by Sheraton’s Skies Lounge & Patio in San Diego, the theme was “Hello Summer,” marking the summer kickoff. Attendees enjoyed exclusive vendor deals and exciting raffle prizes, and the atmosphere was flavored with authentic Mexican cuisine from Sabor Mexican Grill & Taqueria’s taco cart.

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Numerous well-known vendors participated, including Black Rifle Coffee, So. Cal Shades, Heineken USA, Bubbies Mochi, Splash Bev Group, and many others spanning from beverage companies like Pepsi, Monster Energy, Coca-Cola, and Happy Dad Hard Seltzer to services such as Barbot Insurance and the San Diego Sheriff Department. The event served as an excellent platform for franchisees to network, explore new products and services, and enjoy the summer spirit.

Bracing For The Impact Of Mandatory Anti-Smoking Signs

BY ALI HAIDER, MICHIGAN FOA PRESIDENT; BOARD MEMBER SMALL BUSINESS ASSOCIATION OF MICHIGAN

As a 7-Eleven franchisee, I am bracing myself for the impact of a recent order issued by the U.S. Justice Department.

This new directive requires retail locations nationwide that have merchandising agreements with certain cigarette companies—a group that includes 7-Eleven stores—to display signs warning of the health effects of smoking. The warnings are striking and meant to capture the attention of our customers, and feature statements such as “Smoking cigarettes causes numerous diseases and on average 1,200 American deaths every day” and “The nicotine in cigarettes is highly addictive, and cigarettes have been designed to create and sustain addiction.”

This order went into effect on July 1st, and between then and September 30, 2023 a third-party company called Footprint is visiting our stores to place the required signage on or near the back bar, and on an exterior facing window. We’ve been told

by SEI that the anti-smoking signs must remain in place until June 30, 2025. We’ve also been informed by our franchisor that between October 1, 2023 and June 30, 2025 our stores will be periodically visited by an independent third-party auditor who will check to make sure the signs are up until the end date.

There’s a sense of trepidation among us, the affected retailers, because the

“There’s a sense of trepidation among us, the affected retailers, because the responsibility falls upon us to ensure these signs remain displayed at all times.”

responsibility falls upon us to ensure these signs remain displayed at all times.

Should a sign go missing—be it due to a disgruntled customer, an accident, or any other reason—we must order a replacement promptly. However, during the time it takes for a new sign to arrive and be installed, we remain at risk of incurring penalties should an audit occur.

Even more concerning, a series of these incidents could lead to the cancellation of our tobacco licenses. It’s disconcerting to think that an angry customer annoyed by the anti-smoking signs could remove them and put us in jeopardy.

One of my other concerns is how our smoking customers will perceive these signs. The warnings may come across as aggressive, potentially driving customers away. They might view this as a move against smokers by our store, not understanding that it’s a federal mandate.

Unfortunately, not every customer will be aware that the signs are mandated by the Department of Justice and are not a policy of our individual store or 7-Eleven, Inc. Even more frustrating is that not all retail locations are required to display these signs, only about 200,000 that have merchandising agreements with Altria, R.J. Reynolds or ITG brands. If a customer decides they dislike the warning signs in our 7-Eleven, they might choose to frequent another store across the street that isn’t required to post the same signs.

One of my locations in Perry, Michigan, for example, is the only store required to display these warnings. If my smoking customers decide to boycott my store due

to the signs, I stand to lose significant revenue. The potential loss of customers due to this misunderstanding could hit us hard.

To make matters more complex, cigarettes are one of our “basket makers.”

When people come in to buy cigarettes, they often pick up other items as well: a soda, a lighter, some food, or even a pack of gum. The loss of a cigarette sale doesn’t just mean the loss of that singular sale; it means the loss of the entire basket of items a customer might have otherwise purchased.

Despite these daunting challenges, there doesn’t seem to be any plan among the affected retailers to confront the Department of Justice about making exceptions when signs are removed or destroyed. Since July 1st, we are expected to have these signs on display at all times.

It’s a hard truth we have to face.

This measure, while aiming to discourage smoking and inform the public about its dangers, inadvertently places a heavy burden on us, the retailers. Not only could it affect our sales, but it also threatens our peace of mind. Imagine the thought of someone throwing a drink at the signs or even hurling a rock through our glass door in protest. For now, all we can do is maintain our signs, prepare for potential audits, and watch the customer reactions closely.

ALI HAIDER CAN BE REACHED AT 517-219-5288 or aliokemos@gmail.com

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. Beer and flavored beer . Imported by Crown Imports, Chicago, IL. Corona Premier Per 12 fl. oz. serving average analysis: Calories: 90, Carbohydrates: 2.6 grams, Protein: 0.7 grams, Fat: 0.0 grams Modelo Oro Per 12 fl. oz. serving average analysis: Calories: 90, Carbohydrates: 3.0 grams, Protein: 0.6 grams, Fat: 0.0 grams

SLIN 101107 Corona Extra 24oz Bottle 100002 Corona Extra 24oz CN 104874 Corona Premier 24oz CN 102291 Pacifico 24oz CN 102637 Pacifico 32oz Bottle 36

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102559 Corona Familiar 24oz CN 102559 Corona Familiar 32oz Bottle 102444 Victoria24oz CN (available Sept 2022) 000000 Victoria 32oz Bottle 105661 Modelo Oro 24oz CN

105709 Modelo Chelada Sandia Picante 24oz CN 105596 Modelo Chelada Pina Picante 24oz CN 104108 Modelo Especial Chelada 24oz CN 105851 Modelo Chelada Mango Chile 24oz CN 107457 Modelo Chelada Naranja Picosa 24oz CN 101040 Modelo Chelada Limon & Sal 24oz CN

Drink responsibly. Modelo Especial Beer. Imported by Crown Imports, Chicago, IL. ®

Relax responsibly®. Corona Extra Beer. Imported by Crown Imports, Chicago, IL ®

SLIN 101446 CORONA EXTRA 18PK 12Z BT 105414 MODELO ESPECIAL 24PK 12Z BT

100643 CORONITA 24PK 7Z

104743 MODELITO ESPECIAL 24PK 7Z BTL

*Source: Week ending 4/30/23, C-Shopper for 7-E/Speedway and scan data for PDI.

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Keystone FOA’s Debut Trade Show Draws Accolades

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Philadelphia, Pennsylvania became the center of 7-Eleven business activity on May 31, 2023, as Rivers Casino Philadelphia hosted the inaugural Keystone FOA Trade Show. The event turned out to be a huge success, with 55 exhibiting vendors participating and 280 franchisee attendees, who keenly engaged with the exhibitors. The trade show managed to attract highprofile figures within the 7-Eleven network, including NCASEF Chairman Sukhi Sandhu, NCASEF Treasurer Romy Singh, and presidents and vice presidents from the Chicagoland (Jaimin Pandya and Hitesh Doshi), Metro New Jersey (Hari Patel and Mital Patel), and Michigan (Ali Haider) FOAs. The SEI Franchising team (Brian Demcher, Charles Canella, and John Nolan) and Accounting Department (Clint Gay and team) also made their presence felt, as did representatives from SEI’s IHM (Justin Syzmaniak and Michelle McKee).

SEI Market Manager Kate Nawara was also in attendance, and took the opportunity to congratulate the Keystone FOA team’s Executive team—including Sukhie Thind, Dev Patel, Balwinder Singh, and Chirag Banker—on their triumphant debut. The occasion also caught the attention of state representatives Danilo Burgos and Pat 38

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Gallagher, who attended the event, lauding Sukhie Thind for his vision and leadership.

Besides the business engagements and networking, the event also celebrated the contributions of key individuals in the franchisee community. Special awards were given out, recognizing the extraordinary leadership of Sukhi Sandu and Romy Singh. The Visionary Support Award was given to Jaimin Pandya, Hitesh Doshi, Hari Patel, and Ali Haider.

However, the event wasn’t all business. Attendees enjoyed a lavish spread of lunch, appetizers, and cocktails, and the excitement was kept high with a raffle, offering cash prizes totaling $8,000.

Demonstrating its commitment to social causes, the Keystone FOA made donations to the Children’s Miracle Network Hospital and the Philadelphia Police Department.

After the trade show, the feedback was overwhelmingly positive, with attendees and vendors describing it as a grand event and expressing satisfaction with the return on their investment. This successful debut encapsulated the mission statement of Keystone FOA President Sukhie Thind: to drive profitability, foster growth, and ensure the franchisee’s voice is not only heard but valued.

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FIRE PREVENTION & EMERGENCY PREPAREDNESS—ARE YOU READY?

BY JOHN HARP, CSP, ARM—RISK ENGINEERING CONSULTANT MITSUI SUMITOMO INSURANCE GROUP

Many events can disrupt your business and interrupt cash flow, damage property, or injure people. Whether it’s an employee victimized by an assault, a customer slip and fall, a theft, a fire, or a natural disaster, there can be costly consequences without proper planning. Fire or natural disasters can be one of the costliest in maintaining business continuity, and in many cases business survival.

Fortunately, with a good risk management strategy and property conservation, you can minimize the impact of an event or reduce the downtime.

As an essential business, especially during natural disasters, it’s important to continue providing drink, food, and fuel to your customers.

Two of the essential questions to ask are; what could interrupt the continuity of store operations and how could someone be injured? We can separate these into three areas: 1. Fire—This could be a fire starting inside the store, a car at the fuel pump, another store in your building, an intentional act, or from wildfires.

2. Power—Power loss could be shortterm from a car hitting a power pole or longer if it’s weather-related.

injuries is risk assessment, prevention, and planning. These are the most important elements in keeping your employees and customers safe, and your store up and running.

FIRE According to a National Fire Protection Association fire department analysis, grocery/convenience stores have the highest frequency of fires among all retail establishments. Studies show the #1 cause is electrical or lightning.

Common causes and what to look for: • Circuit Breaker Panel—keep clear and properly maintained.

• Water Heater—clearance combustibles.

from

• Extension Cords—keep to a minimum or not at all, and in good condition.

• Roller Grill and Ovens—properly maintained and cords in good condition.

• Fire Extinguishers—inspected serviced annually.

and

• Fuel Pumps—equipment in good condition and emergency shut-off is easily accessible, and the sign is visible.

Apps for IOS and Android: WeatherBug • Emergency: Alerts FEMA • Shelter Finder Know Your Plan POWER OUTAGE This could be an entire area or a local situation from a transformer problem, a damaged pole, or a lightning strike. There aren’t many prevention techniques, but this should be part of your emergency plan. Utility companies will prioritize restoration for certain essential operations like hospitals and grocery/convenience stores. Until power is restored consider a few precautions/preparations: • Call your utility company if it’s a local outage.

• Keep extra flashlights with fresh batteries.

• Add a surge protector to sensitive equipment and replace it every few years.

• Consider a plan to process customer purchases with cash or manual credit card transactions.

• Old boxes, debris, and dumpsters away from the building’s exterior.

• Determine your most sensitive perishables and how long health codes allow before they have to be discarded.

• Propane storage cage secure and away from the building, if possible.

• Move what you can into the vault then keep the doors closed.

• No smoking near fuel, propane, or outside storage is strictly enforced.

• Trees and large bushes away from the building and not over the roof.

• Understand what happens to the safe, registers and prepare to secure all valuables, including lottery tickets and cigarettes.

“Fire or natural disasters can be one of the costliest in maintaining business continuity, and in many cases business survival.”

• Label your circuit breakers so you know which ones to leave on if the store

3. Weather—This is the most common source of business interruption.

Whether it’s a hurricane, tornado, flooding, heavy snow, or hail, the damage could close your store.

The answer to reducing the chances of disruption, damage, downtime, and

continued on page 41

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Fire Prevention & Emergency Preparedness—Are You Ready? continued from page 29

is evacuated.

• Anticipate what happens to any building alarms, panic alarms, and phone systems.

• Know how your fuel pumps will react and if there’s a transfer switch.

• Have safety cones to direct traffic and people.

• Unplug or prepare equipment for an orderly restart once power resumes.

• Consider access to a portable generator (never used indoors!). Rent or contract for an on-call unit.

WEATHER This is the most likely source of disruption or damage to your store, and can happen any time of year or in any part of the country. The weather is changing and storms are more frequent and furious.

Know Your Disaster Seasons

Activate Your Plan Ahead of the Threat • Maintain a weather alert radio or app for your mobile device.

• Make sure employees know what to do before a disaster is imminent.

• Take steps to secure the building, equipment, and inventory depending on the type of threat.

Hurricane: • Bring in items that may be a hazard during high winds.

• Secure doors and windows, and shut down all non-essential equipment.

• Find a safe place for valuables and important documents.

Flood: • Know your flood risk (FEMA flood maps will show your risk and flood zone).

• Consider access to tarps to cover equipment and sandbags for the doors.

Earthquake: • Ensure displays and shelves are secure and bottles or heavy items are on lower shelves.

• Make sure everyone knows how to “Drop, Cover and Hold On.” Know the safe spots in the store.

Tornado: • Consider there is little time to react— keep a weather alert radio and look for danger signs like dark, greenish sky, large hail, or a loud roar.

• Move to the center of the store away from any windows. The restroom is a good spot.

Other items to prepare for an emergency: • Keep an emergency kit with flashlights, tape, batteries, masks, gloves, blankets, and more (see resources below).

After the Disaster:

RESOURCES https://www.sba.gov/business-guide/manage-your-business/prepare-emergencies https://www.ready.gov/ https://www.convenience.org/Topics/Operations/Disaster-Preparedness/Emergency-Planning-and-Job-Aid (NACS website with planning guides and training) https://www.nixle.com/ (Local public safety text alerts)

“Weather is the most likely source of disruption or damage to your store, and can happen any time of year or in any part of the country.”

• Stay in communication with the authorities and employees so they know when it is safe.

• Inspect the facilities and determine if they are safe and what damage occurred. Take photos.

• Call your insurance company and SEI. • Review your plan; what worked, what needs improvement.

Summary No matter what the weather or emergency might be, success in preventing injuries and minimizing damage, and downtime is through being prepared.

Be ready to protect your employees, customers, and your business. There’s no way to know exactly if or when a disaster might strike and, in some cases, there may be little you can do, but preparing will give you the best chance to be safe and have your store ready to reopen.

Insurance is critical to your business’s recovery and resilience. It’s important to annually review your property and business insurance program with your agent or broker.

If you need assistance with your emergency planning, or inspection checklists to complete your own assessment, contact your agent, broker, or insurance carrier. (MSIG clients can request a survey at my contact information below.)

JOHN HARP CAN BE REACHED AT 908-604-2951 or jharp@msigusa.com

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Joe Saraceno FOA Rallies Members To Tackle Challenges The Joe Saraceno Franchise Owners Association is dedicated to fostering unity and employing a logical and methodical approach in addressing crucial matters affecting franchisees. COVID presented many challenges for franchisees and left many feeling exhausted and worn out. But guess what? Franchisees are tough and resilient. They rallied together from all corners of Southern California, reinvigorated and ready to take on the pressing issues that affect our stores’ operations and profitability. Recognizing that their collective strength lies in their extensive knowledge of store operations, the Joe Saraceno FOA aims to support one another in running successful stores.

community that works as a cohesive team to overcome operational challenges and boost profits. Recently, the FOA organized discussions on best practices for reviewing reports such as DMRs, understanding accounting updates, and optimizing net profit margins.

The Joe Saraceno FOA looks forward to continuing its collaboration with members and with SEI to gain deeper insights into pertinent issues and will continue to share key learnings that will empower franchisees to run their operations effectively. The FOA is excited to continue to prioritize the optimization of store operations, so that there may be a positive impact on the success of its growing membership.

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2023 MID-YEAR LEGISLATIVE REVIEW

BY THOMAS BUNTING Senior Manager External Engagement, Reynolds Marketing Services Company

At the half-way point of 2023, many state legislatures have adjourned sessions, and here’s an overview of the status compared to the beginning of the year.

Several states introduced hostile proposals to ban flavored tobacco, limit nicotine content in vapor products, and impose higher excise taxes and environmental product restrictions.

However, a majority of these threats were defeated in states such as Washington, Indiana, Nevada, Ohio, Texas, Alaska, Vermont, New York, New Mexico, Minnesota, Hawaii, Georgia, Idaho, Iowa, Kansas, Mississippi, New Hampshire, Tennessee, Utah, Virginia, West Virginia, Wyoming, and Maryland.

Only four states—Hawaii, New York, Louisiana, and Nebraska—raised excise taxes on some tobacco products.

In California, following a statewide flavor ban in 2022, legislators introduced the first-of-its-kind Tobacco Free Generation legislation. The bill, AB 935, originally aimed to ban sales of all tobacco products in the state to anyone born on or after January 1, 2007, beginning January 1, 2028. However, after engaging in efforts to mitigate the proposal, AB 935 was amended to focus on enforcing the existing flavor ban.

“While efforts were made to defeat harmful legislation, there were also opportunities to support favorable laws.”

“Several states introduced hostile proposals to ban flavored tobacco, limit nicotine content in vapor products, and impose higher excise taxes and environmental product restrictions.”

While efforts were made to defeat harmful legislation, there were also opportunities to support favorable laws.

South Carolina successfully established statewide preemption on tobacco products, preventing local governments from imposing taxes or banning certain products. This major victory benefits the industry and businesses in the state.

At the federal level, a few key developments are expected for the rest of

rulemaking process before it could take effect.

In addition to these administrative rules, the FDA has begun taking action against illicit disposable vapor products, including by issuing import alerts and warning letters to retailers and distributors. Enforcement efforts are being ramped up, as the FDA feels pressure to act against these illegal products.

“Looking ahead, it is anticipated that 2024 will bring increased legislative threats at the federal, state, and local levels.”

2023. First, starting on October 1, 2023, specific “corrective statements” provided by cigarette manufacturers must be displayed at retail for 21 months, as part of the Department of Justice Corrective Signs Settlement. Second, the FDA is expected to release its final rule banning menthol cigarettes later this year, which will provide further clarity on the rule’s effective date. Third, the FDA is expected to publish a proposed low nicotine cigarette rule for comment in December 2023, beginning a multi-step, multi-year

Looking ahead, it is anticipated that 2024 will bring increased legislative threats at the federal, state, and local levels. Despite these challenges, the industry can fight back to protect its interests by engaging with elected officials. To participate in advocacy efforts, you can join Own it Voice it by signing up through their trade partners survey at www.ownitvoiceit.com/tradepartners-survey.

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Full Agendas At NCASEF’s Second Quarter A Meetings Addresses In The picturesque city of San Juan, Puerto Rico served as the backdrop to NCASEF’s second quarter Affiliate Member and Board of Directors meetings. Taking place from May 1618 at the Marriott Resort and Stellaris Casino, the meetings were filled with productive discussions and informative presentations. The week commenced with a charity golf tournament on May 15 at the Grand Reserve Golf Club in Río Grande, which raised $5,711 for Children’s Miracle Network Hospitals, NCASEF’s charity of choice.

At the outset of the Affiliate Member meeting on May 16, Chairman Sukhi Sandhu and Executive Vice Chairman Joe Rossi expressed their gratitude to attendees, and asked vendors to provide feedback and suggestions on

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how to enhance future Affiliate Member meetings.

Kate Burgess from Children’s Miracle Network Hospitals presented first, highlighting the impactful contribution of the franchisee community on the organization and its member hospitals.

She informed attendees that NCASEF and FOAs collectively have raised close to $60,000 for CMN Hospitals so far this year. Emphasizing the importance of connectivity with the cause, she encouraged Board members to tour their local children’s hospitals. She also reviewed the successful outcomes of the Round-Up Campaign with SEI and 7-Eleven stores.

Vendor Relations/Merchandise Committee Chair Jivtesh Gill then addressed the assembly and made a

rter Affiliate Member & Board Of Directors es Industry Challenges call to action for vendors to collaborate with NCASEF and FOA leadership to increase gross profits for all 7-Eleven stakeholders during this challenging economic environment. Citing the California Traffic Driver initiative, Mr. Gill showcased how the combination of franchisee leadership, SEI, and vendors can work together to increase foot traffic and sales. The ensuing Breakout Workshops provided an opportunity for detailed discussions on a variety of topics.

These ranged from executing promotions and best practices for trade shows to the impact of crime on insurance costs, custom retail pricing, and the process of returning items to stores.

The session with guest speaker Leroy Kelsey from NACS Research and Technology offered a comprehensive

overview of convenience store performance from 2022 onwards. The insightful talk covered a wide range of topics such as industry-level metrics, the impact of inflation, in-store performance, operating expenses, and consumer behavior.

NCASEF Vice Chair Raj Singh and Board member Jawad Ursani then gave a presentation on how to enter nonrecommend items (NRI) and store supported items (SSI) into the ordering system. This presentation was greatly appreciated by vendors and franchisees, alike. The Affiliate Member meeting ended with a Tabletop Trade Show featuring hot products and great deals offered by the exhibiting vendors.

During the opening moments of the Board of Directors meeting on May 17, continued on page 46

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continued from page 45

Chairman Sukhi Sandhu and Executive Vice Chairman Joe Rossi asked Board members to offer suggestions for improving the meetings. A call for more interaction with vendors during trade shows was also put forth.

Next, several presentations occurred. The Vendor Relations/ Merchandising Committee shared their report, followed by a vendor presentation from Anheuser-Busch. This was followed by a comprehensive session with 7-Eleven Inc.’s senior team, which included Randy Quinn (Senior Vice President, Franchise Operations), Guyton Gagliardi (Senior Director, Merchandise Accounting and Assistant Controller), Bruce Maples (Senior Director, Franchisee Relations and Engagement), Carl Weaver (Senior Director, Distribution), Davina Stevens (Director, Analytics and Audits—Asset Protection), and Matthew Ditzler (Senior Director, Enterprise Systems).

Led by Randy Quinn, the session covered a wide array of topics, including the recent financial results, 24-hour store operations, upcoming leadership changes, and the introduction of self-checkout systems. Davina Stevens and Guyton Gagliardi also held informative discussions on audit processes and improvements to the accounting system.

Several Q&A sessions with the SEI representatives addressed diverse issues like staffing, store cleanliness, difficulties in maintaining 24-hour operations, self-checkout, merchandising challenges, and audit issues. Notably, Carl Weaver discussed store check-in simplification, the new distribution center, and credit and logistic issues. Matthew Ditzler introduced his role at SEI and addressed queries from Board members. Vendor presentations by MSIG and Molson Coors followed.

In the concluding part of the meeting, several committee reports were presented, including the Digital/IT/7Now,

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A V B

S m c d o c

C t f t K a

r Th p C F i

r s p a t f

Accounting and Finance, and the Charity Golf Committee.

Vendor presentations from Campbell Soup and Beatbox Beverages were also conducted.

The second day of the Board meeting kicked off with Mr. Sandhu and Mr. Rossi revisiting topics from the previous day’s meeting, including the potential closer alignment of NCASEF committees with SEI committees and an extra day for SEI during Board meetings. The Chairman also updated the Board on meetings with SEI about store liability insurance and the current state of insurance renewals.

Reports were presented by the Membership/By-Laws Committee, the Tobacco/Legislative Education Committee and the Store Profitability/Fuel Committee. Vendor presentations from Bon Appetit and Fairlife took place, offering insights into their respective services and products. General Counsel Eric Karp provided an update on SEI financials, ongoing litigation, and misclassification cases, prompting a Q&A session.

The Facility Maintenance Committee presented its report, followed by a vendor presentation by Vita Coco.

The Government Affairs/Community Relations Committee provided updates on legislative movements, while the Chairman discussed vendor promotions for NCASEF and FOA trade shows, and a potential solution for store liability insurance non-renewal through Captive Insurance.

The Logistics/Simplification Committee delivered their report, and various topics were brought up by Board members, such as unannounced inspections, increasing credit card processing fees, and store safety issues. Finally, the Convention and Entertainment Committee presented their report on the upcoming convention, saying the goal is to attract 2,000 franchisees to the event.

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Member News Legislative Update Bills Introduced By Congress To Address High Swipe Fees Bipartisan bills aimed at addressing the high swipe fees charged by major credit card companies have been introduced in the U.S. Senate and House of Representatives, reported NACS Daily. The legislation, dubbed the Credit Card Competition Act, intends to introduce competition into the credit card market by giving retailers a choice over which network processes their credit card transactions. The bills specifically target the largest U.S. banks issuing Visa or Mastercard credit cards and mandate them to allow transactions to be processed over at least two unaffiliated card payment networks. This applies to banks with assets exceeding $100 billion, thereby excluding the majority of smaller banks and credit unions in the U.S. The proposed legislation aims to create a more open marketplace for credit card processing, thus reducing the monopolistic power of Visa and Mastercard, who currently control 83 percent of the U.S. credit card market. These changes are expected to lower fees and reduce fraud,

“THE CREDIT CARD COMPETITION ACT, INTENDS TO INTRODUCE COMPETITION INTO THE CREDIT CARD MARKET BY GIVING RETAILERS A CHOICE OVER WHICH NETWORK PROCESSES THEIR CREDIT CARD TRANSACTIONS.” 48

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according to the Federal Reserve. The act will also strengthen security by barring foreign networks like China Union Pay from being a network on credit cards issued in the U.S. Swipe fees in the U.S. are the highest globally and have more than doubled over the past decade, now costing the average American family over $1,000 per year.

“THE HOT FOODS ACT (H.R. 3519) AIMS TO ENABLE AMERICANS ON THE SNAP TO PURCHASE HOT, PREPARED FOODS.” New Bill Would Expand SNAP Benefits Federal lawmakers recently introduced a bipartisan bill in the U.S. House of Representatives, the Hot Foods Act (H.R. 3519), which aims to enable Americans on the Supplemental Nutrition Assistance Program (SNAP) to purchase hot, prepared foods, which are currently not allowed, reported NACS Daily. The SNAP Hot Foods Act will remedy the disparity in how hot and prepared foods are treated under SNAP. Under the current rules, a customer can purchase a cold sandwich with SNAP benefits from a SNAP authorized retailer, but if the sandwich is heated or toasted, it cannot be purchased. This legislation would allow the same sandwich to be purchased regardless of the temperature.

Removing the hot foods restriction is a commonsense update to modernize the program to better reflect how Americans shop and eat today and to provide SNAP participants with helpful choices. The

legislation would only apply to SNAP eligible retail stores and would not apply to restaurants.

Latest Tobacco Legislation Presented here are the latest nationwide tobacco legislation proposals and approved changes, as reported by Convenience Store News. Only the states and localities where 7-Eleven operates are shown.

CALIFORNIA Sacramento—A bill enforcing the state flavor ban in the same manner as underage sales passed the California Assembly Appropriations Committee in May. MAINE Augusta—State legislators are considering a statewide ban on the sale of flavored tobacco products. Under the proposal, businesses that sell flavored products, not consumers who purchase or possess them, will be penalized. Most recently, the community of South Portland joined Portland, Brunswick and Bangor in banning the sale of flavored tobacco.

MICHIGAN Detroit—The Detroit City Council passed a resolution that asked the Michigan Legislature to ban the sale of flavored tobacco products statewide or give cities the ability to prohibit them. In addition to flavored vapor products, Detroit would also like to ban menthol cigarettes.

NEVADA Carson City—A bill that increases penalties on retailers who sell to underage consumers passed the Senate in late May. The proposed legislation is now on Governor Joe Lombardo’s desk for consideration.

Member News continued from page 13

The global convenience store market size was valued at around US$2.12 trillion in 2021 and is expected to rise from US$2.24 trillion in 2022 to reach a value of US$3.46 trillion by 2030, at a CAGR of 5.6 percent during the forecast period (2022–2030), according to a new report by Skyquest Technology Consulting. • Indian immigrants are establishing dhabas (roadside stops) along American highways to cater to the growing number of Punjabi truckers and provide them with a taste of home, reported the Wall Street Journal. There are an estimated 40 dhabas across the country.

Punjabis, who constitute nearly 20 percent of the U.S. trucking industry, are challenging the stereotypical image of white, male truckers and are transforming the trucking industry. • 7-Eleven and Speedway helped drivers enjoy their Memorial Day 2023 weekend road trip by offering 7Rewards or Speedy Rewards members 5 cents off every gallon of gas from Friday, May 26, to Sunday, May 28, 2023, reported PennLive.com. On Memorial Day (Monday, May 29) customers received 11 cents off per gallon. • Amazon is adding an age-verification feature to its palm-based payment system that will allow users to buy alcohol by swiping their hand over a scanning device, reported CNBC. The system, called Amazon One, is now being used in some restaurants and stadiums, as well as several of Amazon’s grocery chains. • Prepared foods are gaining popularity with consumers seeking convenient meal options, and 65 percent of grocers are planning to grow their selection of prepared foods during the next year, according to a survey from Supermarket News. • Check fraud is on a significant rise, with reports nearly doubling from 350,000 in 2021 to approximately 680,000 in 2022, reported the Associated Press. This increase, attributed largely to organized crime targeting mailed checks, is prompting warnings for individuals and businesses to avoid sending checks through the mail if possible and instead to concontinued on page 53

networks, according to the Federal Reserve, and the bill would bar networks controlled by foreign governments like China’s UnionPay from processing American credit cards. Any bank can currently put China UnionPay on its credit cards with no legal restrictions, but the bill would close that loophole.

EMV Transactions Growing Rapidly Digital payments and software services company Cantaloupe, Inc. reports a significant increase in the amount of EMV transactions at food and beverage vending machines in 2022. This growth, as reported in Cantaloupe’s recently released 2023 Micropayment Trends Report, is partly due to the fact that consumers increasingly prefer making tap payments, and EMV-enabled credit cards allow for a faster and easier tap-topay experience.

Cantaloupe’s report shows that EMV payments grew by more than 350 percent as a share of cashless sales at these machines in 2022, accounting for more than $500 million in sales for the year. In fact, the number of total EMV transactions increased by more than 400 percent over the course of the year.

In January 2022, EMV payments only accounted for 14 percent of cashless transactions at food and beverage vending machines; by December 2022 that number was over 52 percent— showing explosive growth in the use and acceptance of EMV payments.

enhanced employee recognition programs to improve employee retention, according to the 15th annual CStore Decisions/Humetrics HR Benchmarking survey. In 2022, 86 percent of respondents reported offering pay raises as a top measure, followed by flexible scheduling at 72 percent, and employee recognition programs at 41 percent. Other measures included improved training, more paid time off, monetary incentives, creating a better working environment, and offering benefits like health insurance and paid vacation time. Notably, 2022 saw a 27 percent decrease in short-term employees quitting or being terminated compared to 2021, which may reflect improved wages and working conditions.

The survey also revealed an increased focus on building a positive work culture, with 27 percent describing their work culture as family-friendly, 16 percent highlighting teamwork, and 14 percent emphasizing flexibility and adaptability. On the training front, 90 percent of retailers in 2023 prefer hands-

“C-store retailers are implementing measures like pay raises, flexible scheduling, and enhanced employee recognition programs to improve employee retention.”

Adopting Innovative Employee Retention Strategies C-store retailers are implementing measures like pay raises, flexible scheduling, and continued on page 50

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Member News continued from page 49

on training, as opposed to online learning (29 percent), reflecting a shift towards inperson, direct interaction and collaboration post-pandemic.

In terms of future retention tools, the top three currently used are a standardized onboarding/orientation program (89 percent), an informal employee recognition program (85 percent), and performance reviews (82 percent). Retailers also plan to add pre-shift huddles and social media to their retention toolbox.

Inflation Eases From Last Year’s Peak The inflation rate in the U.S. reduced

significantly in May 2023 to about half of its peak from the previous year, as indicated by the consumer price index (CPI) which rose by 4 percent compared to the peak of 9.1 percent in June 2022, reported the Wall Street Journal. This demonstrates that efforts

by Federal Reserve officials to curb inflation have had some effect, though further work is needed to bring inflation to the Fed’s desired level of 2 percent. Federal Reserve officials are currently deliberating on whether to hold off on further interest rate hikes, following aggressive increases that have seen the benchmark interest rate reach between 5 percent and 5.25 percent, a 16-year high.

Meanwhile, despite a significant decrease in the rate of housing rental price increases, core consumer prices (which exclude volatile food and energy costs) remain high, having

risen by 5.3 percent in May from the previous year.

Seven & i Shareholders Reject ValueAct’s Recommendations Shareholders of Seven & i Holdings recently voted against all four board candidates nominated by U.S. investment firm ValueAct Capital, in a blow to its efforts to reshape the board of the retail conglomerate, reported Reuters. ValueAct, which is critical of the 7-Eleven operator’s conglomerate structure, sought to replace incumbent President Ryuichi Isaka and other board members with its nominees.

However, all company-backed candidates, continued on next page

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including Isaka, secured their positions in the annual shareholders meeting.

Despite the rejection of its nominees, ValueAct, which owns a 4.4 percent stake in the company, has stated its intent to engage constructively with Seven & i and other shareholders, and continues to push for a “more decisive growth strategy.” The investment firm had previously urged the company to undertake a strategic review and consider spinning off its 7-Eleven

chain or selling the entire company. In response, Seven & i has opted to shut down additional supermarkets in Japan and exit its apparel business, but it has refused to spin off 7-Eleven, emphasizing the synergistic benefits of keeping the convenience store chain under its umbrella.

In a letter issued to Seven & i shareholders after the meeting, ValueAct expressed its belief in the need for significant changes within the company. Despite failing to secure majority support for its board nominees, ValueAct pointed out that a notable portion of shareholders voted for change, signaling dissatisfaction with the current management and corporate structure. In the letter, ValueAct renewed its call for an independent review of the company’s leadership and strategy, and urged shareholders to

scrutinize Seven & i’s future capital market communications to assess the credibility of the board’s plans for value creation and strategic alternatives.

Japan’s C-Stores Innovate Amid Challenges Over the last fifty years since the first 7-Eleven store opened near Tokyo Bay, convenience stores have grown into an integral part of Japanese culture, reported The Japan Times. Offering far more than just food and beverages, they provide a wide array of services from financial transactions to package deliveries. However, as the domestic market has become saturated and continued to page 52

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Member News continued from page 51

competition has intensified, operators have had to innovate, developing more appealing products and services. Additionally, labor

“Four in 10 Americans are buying single-serve candy at least once a week and nearly one-fourth are buying gum that often.” shortages have led some stores to cease 24hour operations and implement unmanned cash registers.

Established in November 1973, Seven-Eleven Japan has become a recognized symbol of Japanese culture worldwide. Other chains like Lawson and FamilyMart soon followed, expanding

rapidly to accommodate customer needs beyond traditional store hours. Over time, convenience stores have introduced numerous innovations, such as paying utility bills at cash registers and in-store ATMs. Yet, the number of stores has recently started to decrease due to market saturation and a shrinking workforce. To stay competitive, chains are launching new offerings, like frozen foods from renowned restaurant chains and in-store cooked meals, as they grapple with a customer base that has yet to return to pre-pandemic levels.

according to the results of a survey by Advantage Solutions. The study reveals that when buying candy or gum, consumers are most influenced by the ability to buy their favorite brands and products, everyday value, price discounts and what they find at the checkout.

Among other survey findings: • Gum and candy continue to be strong impulse buys: 38 percent say gum is an impulse buy “always” or “frequently”; 51 percent say

Consumers Want Candy Four in 10 Americans are buying singleserve candy at least once a week and nearly one-fourth are buying gum that often, continued on next page

y t e r y t

g

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the same for single-serve candy and 32 percent for multi-serving packages of candy.

• Even apart from holidays and parties, nearly half of consumers (48 percent) buy multi-serving packages of candy at least monthly.

• Nearly half of candy and gum buyers most often make their purchases at mass merchandisers, especially when buying for later use. Supermarkets, convenience stores and drugstores see a bit higher percentage of purchases for immediate use than for later use.

Smoking Accessories Sales Expected To Grow Despite inflation and price increases across the tobacco sector, convenience store retailers are observing a potential opportunity for growth in the smoking accessories segment, especially in the 22 states (and Washington, D.C.) where recreational cannabis is legal, reported CStore Decisions.

Data from Circana’s Total U.S. Convenience study reveals a 6.6 percent increase in dollar sales of smoking accessories in convenience stores, totaling $507 million for the 52 weeks ending April 23, 2023. While lighter sales declined slightly (1.2 percent) and match sales dropped by 8.1 percent, the overall outlook for tobacco accessories remains positive. The global smoking accessories market is predicted to reach $6.3 billion by 2030, with a compound annual growth rate of 6.5 percent from 2021 to 2030, as per an analysis by Allied Market Research, despite pandemic-related disruptions in supply chains and restrictions on goods movement.

Australian 7-Eleven Franchise Up For Sale The operator of 7-Eleven convenience stores in Australia recently announced that its board has begun the process to sell its entire business, reported Reuters. Australia’s largest convenience and fuel retailer, with more than 700 stores, said the process was

“Convenience store retailers have mixed feelings about the economic outlook for 2023 and its impact on their businesses.” at an early stage and was expected to take several months. Australia’s 7-Eleven Stores— which is licensed by 7-Eleven, Inc.—is owned by the Withers and Barlow families. In 1976 they signed the area license agreement to bring the 7-Eleven brand to Australia, opening the first store in Oakleigh, Victoria in 1977.

SNAP Spending Is Down Market research firm Numerator has launched a SNAP Trip Tracker to analyze longitudinal trends in SNAP/WIC usage, revealing changes in the frequency, composition, and location of SNAP shopping trips. The tracker continued on page 57

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sider secure alternatives such as electronic payments. • In a world first, Canada will soon print health warnings on individual cigarettes, reported Politico. The labels will feature a rotation of warnings—in French and English—and will appear in bold, black text at the butt of each cigarette. King-sized cigarettes with the warning will reach stores

by April 2024; regular-sized cigarettes with the messaging will appear the following April. • Fast-food giant Wendy’s has partnered with Google to trial an artificial intelligence chatbot at the drive-thru of one of its restaurants in Ohio, reported

TechSpot.com. The chatbot will be “very conversational” and some customers might not even realize they aren’t talking to a human employee. • ChatGPT and other conversational AI tools are increasingly being employed in restaurant HR departments to speed up hiring processes, keep staff engaged, and improve employee retention, reported Restaurant Business. These AI systems can swiftly screen job applicants and suggest suitable positions, while other platforms aim to use AI for ongoing engagement and even predicting turnover. • Dollar General is facing $3.4 million in new proposed penalties after Occupational Safety

and Health Administration inspectors found workplace safety hazards at nine store locations across four states, reported Business Insurance. Safety violations include blocked aisles, emergency exits, fire extinguishers and electrical panels by store merchandise and other materials. • ALDI has partnered with Instacart to launch ALDI Express, a new virtual convenience store that gets products to customers’ doors in as fast as 30-minutes. From prepared foods, snacks and drinks to grocery staples and household essentials, ALDI Express gives customers access to nearly 2,000 of the continued on page 57

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Midwest FOA Charity Golf Event Benefits An

Charity never looked so good! It was a perfect Tuesday afternoon on June 6, when the Midwest FOA welcomed 130 franchisee and vendor golfers to the Cantigny Golf Course in Wheaton, Illinois to raise funds for Children’s Miracle Network Hospitals, with the proceeds benefitting Ann & Robert H. Lurie Children’s Hospital. Fruit cups donated by Anthony Marano and tuna salad provided

by Wild Planet awaited golfers as they arrived with an opportunity for foursomes to take photos and buy their super tickets benefitting CMN Hospitals. At 1 pm, MWFOA President and NCASEF Executive Vice Chairman Joe Rossi welcomed all of the participants and the golfers were sent off to play best ball.

A few hours in, golfers started to hear murmurs of a hole-in-one ... and it was true! Golfer/franchisee Samantha Rossi, wife of franchisee Joe Rossi Jr., hit a hole-in-one on Cantigny’s Woodside Hole 3 at 119 Yards with a 7 iron.

Congrats to Sam! Additional winners included: 1st Place: Matt Tomlinson (Beatbox), Jack Claiborne (SRP Companies), and Erik Dube (Blue Trition) 2nd Place: Chris Huges (MyBrandForce), Kyle Kilcherman (MyBrandForce), Adam Luciano (Mitra-9), and Guy Morgano (SEI)

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fits Ann & Robert H. Lurie Children’s Hospital

3rd Place: Rick Boone (Board Member and Franchisee) and friends Our vendor partners donated products for our beverage carts so our golfers wouldn’t go thirsty throughout the day. Thank you to Anheuser Busch, Bang Energy, Blue Triton, Breakthru, Coca-Cola, Constellation Brands, KDRP, Lagunitas, Mitra-9, MillerCoors, and Monster. A big shout out to Camelot, our Illinois Lottery, for donating bags for all golfers. Also, a huge thank you to our partners at Ann & Robert H. Lurie Children’s Hospital for bringing their team to help throughout the day at registration and at-hole games. Plus, we were joined by Jacob, a Lurie Children’s Hospital patient and his mother to greet and collect more donations for kids.

The MWFOA donated $7,711, but with the outpouring of donations throughout the day, we raised an additional $2,000 from our super tickets and silent auction, for a grand total donation of $9,711. Plus, an additional $320 was donated back to Ann & Robert H. Lurie Children’s Hospital from our on-course competition winners. We hope more franchisees and vendor partners can join us next year!

—Güliz Sönmez, Midwest FOA, Vendor Partnerships & Operations Director

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most-shopped ALDI items, the companies said. • Circle K is rolling out a new selection of value-priced wines, including its Sunshine Bliss lineup priced under $8 and a premium lineup of six Fine Wines from $10 to $25. Both Sunshine Bliss and Fine Wines boast strong tasting point ratings, several gold and silver awards and many have been named “best buys” by Tastings.com and Wine Enthusiast. • Discount retailer Five Below plans to triple its store count to more than 3,500 locations by the end of fiscal 2030 while at least doubling sales and growing operating margin by 14 percent by the end of fiscal 2025, reported Retail Touch Points. During fiscal 2023 the company plans to open 400 new stores, with that number accelerating to 550 to 600 new stores in fiscal 2024 and 2025. • McDonald’s and Chick-fil-A are both introducing app features that track mobile-order customers’ locations so staff can start making their meals when they’re close to the restaurant, reported Business Insider.

The technology is known as geofencing, and it allows restaurants to cut down on how long their customers wait to collect their order. • Costco continues to drive traffic and add members through the strong value proposition of its club model, which resonates with consumers amid still-elevated inflation, reported Winsight Grocery Business. The retailer has opened 17 locations in the U.S. and Puerto Rico this year, and has nine more planned for Q4, including two in China. • This year, as of May, total new-vehicle inventory was at a two-year high of 1.9 million units, continued on page 58

shows that following the termination of the Emergency Allotment program, the total number of SNAP trips, basket sizes, and units per basket have all decreased. Although grocery trips where SNAP benefits are used are generally larger than non-SNAP trips, the average spending for a SNAP grocery trip fell by nearly $4 after the Emergency Allotment program ended in spring 2023.

The tracker also has found that SNAP spending has declined overall, with SNAP recipients purchasing fewer, cheaper items.

Categories like refrigerated foods, seafood, canned foods, breakfast foods, and meat have seen the most significant drop in purchases by SNAP users. On the other hand, beverages, pasta, dairy, and produce are the least impacted categories. The data also indicates a shift in SNAP shoppers to smaller format retailers, with Gas & Convenience and Dollar stores seeing an increase of 17 percent in SNAP grocery trips, while Club and Grocery stores witnessed a decline.

C-Store Retailers Split On Economic Outlook According to the 15th annual CStore Decisions/Humetrics HR Benchmarking Survey, convenience store retailers have mixed feelings about the economic outlook for 2023 and its impact on their businesses.

While 49 percent of retailers reported the c-store industry remained steady in 2022, with 42 percent feeling their own company fared better, only 33 percent expect the economy to remain the same in 2023, with 29 percent expecting it to worsen.

Nevertheless, retailers are optimistic about their own businesses, with 41 percent expecting steady performance and 39 percent foreseeing better business in 2023.

Despite positive trends like better-thanexpected business performance in 2022 and increased flexibility in work schedules to attract quality employees, some retailers anticipate significant staffing challenges and increased competitive pressures in 2023.

Japanese High Court Backs SEJ A Japanese high court recently dismissed an appeal by a man who claimed SevenEleven Japan’s termination of his franchise contract was unjust, in a dispute that originated in his decision not to operate his store overnight, reported The Mainichi. The Osaka High Court said the chain operator’s claim that the termination resulted from former franchisee Mitoshi Matsumoto’s behavior toward customers was fair, upholding a lower court ruling ordering him to pay damages to the company. The legal dispute initiated a broader examination of the challenging conditions faced by many convenience store franchisees and the industry’s standard of continuous operation.

New Minimum Wage For NYC App Food Delivery Workers New York City has announced a new minimum pay-rate for its app food delivery workers, a sector that has grown since the pandemic and comprises approximately 60,000 workers, reported CNN Business. Presently, these workers earn around $7.09 per hour on average, but the new payrate will allow them to earn at least $19.96 per hour by April 2025, following a gradual increase. Despite the flexibility given to delivery apps on the payment method, several companies including DoorDash and Uber Eats have expressed discontent, hinting at possible litigation. Critics argue the policy may lead to job cuts and compromise worker flexibility.

The city plans to adjust the pay annually for inflation and also has initiatives to convert vacant newsstands into shelters for delivery workers and improve infrastructure.

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an increase of nearly 70 percent compared to a year ago, according to automotive services and technology provider Cox Automotive. Tight inventory was the key driver of lower sales in 2022, but this year—as inventory builds for many brands—demand is becoming the market driver. • R.J. Reynolds Tobacco Company recently filed a lawsuit against California state officials in response to the Attorney General’s issuance of several Notices of Determination that allege certain Camel and Newport cigarettes

styles are “presumptively” flavored based on their promotional materials. The lawsuit, filed in California state court, seeks declaratory and injunctive relief, including that the Notices be rescinded. • Walmart’s private-brand penetration rose 1.1 percent during the first quarter as shoppers looked for ways to save money, following growth of 1.6 percent in the fourth quarter and 1.3 percent in the third quarter of 2022, reported Store Brands. • Over $246 million in legal marijuana and marijuana products were sold in April in the state

of Michigan, reported The Marijuana Herald.

Of the $246,054,243 sold, just $7,842,858 was medical marijuana, with the remaining $238,211,384 coming from the legal distribution of recreational marijuana. • Amazon has upended its vast logistics network to reduce how far packages travel across the U.S. in an effort to get products to customers faster and improve profitability, reported the Wall Street Journal. The company’s overhaul has cut delivery times, transformed inventory management and altered the search continued on page 59

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results customers see on its e-commerce website. • BP Products North America Inc. announced that it has recently completed its $1.3 billion acquisition of TravelCenters of America Inc. The company said the deal adds a network of around 280 travel centers, almost doubles bp’s global convenience gross margin, and brings growth opportunities for four of bp’s five transition growth engines including EV charging via bp pulse, convenience, biofuels/renewable natural gas, and hydrogen. • In 2020, there were over 73.1 million children under age 18 (22.1 percent of the total U.S. population), down 1.4 percent from 74.2 million in 2010, reveals the 2020 Census Demographic Profile and Demographic and Housing Characteristics File. The biggest decline was among the under-5 age group, whose share of the population dropped by 8.9 percent or 1.8 million. • A suburb of Montreal, Canada is testing an experimental traffic light that stays red and only turns green for the drivers who obey the speed limit, reported Jalopnik.com • The FTC recently issued a policy statement warning companies against the misuse of consumers’ biometric information due to increasing privacy and data security concerns, as well as potential bias and discrimination. The policy statement also details several factors that will determine whether a business’s use of biometric data or technology could be deemed unfair. • Kroger is adding smart screen cooler doors to 500 stores thanks to an expansion of the retailer’s partnership with in-store retail media company Cooler Screens, reported Progressive Grocer. Cooler Screens utilizes an Internet of Things (IoT)-enabled advertising and analytics platform that lets brands engage with shoppers at brickcontinued on page 61

Member News NCASEF’s Impact At Children’s National Hospital in Washington, D.C.

In 2022, Children’s National Hospital received over $49,000 from its partnership with NCASEF. These vital funds will be used in the hospital’s area of greatest need and can go on to help provide care to children without insurance, invest in research that discovers life-saving treatments and cures, train the next generation of doctors and nurses, or offer families comfort and peace of mind during the most trying moments of their lives.

In early May, Sukhi Sandhu, Chairman of the National Coalition of Associations of 7-Eleven Franchisees, and Arvinder Makkar, President of the Suburban Washington FOA, had the opportunity to tour Children’s National Hospital’s Research and Innovation Campus, as part of a larger corporate-partner event. The campus is a one-of-a-kind research and innovation hub that drives discoveries that save and improve the lives of children.

The funds raised by the partnership between CMN Hospitals and NCASEF make innovative spaces like this possible. Donating to your local member hospital through FOA events, direct donations, or pledges at the annual NCASEF Convention & Tradeshow creates a ripple effect felt by communities for years to come. When we ensure our children can lead healthy, fulfilling lives, we foster the scientists, inventors, artists, and leaders of tomorrow.

When we can change kids’ health, we can change the future—for all of us.

Interested in touring your local member hospital? Contact Kate Burgess (kburgess@cmnhospitals.org).

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A Day Of Generosity At The 2023 FOAC Charity Golf Tournament

On May 1, 2023, the verdant lawns of St. Andrews Golf and Country Club in West Chicago, Illinois, were imbued with more than just the spirit of sport. It was the day of the 7-Eleven Franchise Owners Association of Chicagoland’s (FOAC) Charity Golf Tournament, and all the signs pointed towards it being a grand success. The FOAC Board of Directors had been working tirelessly to ensure the event’s success, and their efforts certainly paid off with a whopping turnout of 160 golfers— franchisees and vendors—each eager to play their part in raising funds for three worthy organizations.

The event wasn’t only about putting and driving, though. Adding a fun twist to the day, over 30 golfrelated items were raffled off, creating an atmosphere of exhilaration that was just as electrifying as the golf tournament itself. This strategy didn’t just add an extra layer of enjoyment to the day, it also helped raise more than $11,000 in a single day, a testament to the generosity of the participants.

What made the event truly special, though, was the causes it supported. Chicago Hopes for Kids, the Cystic Fibrosis Foundation, and Ann & Robert H. Lurie Children’s Hospital of Chicago were the chosen beneficiaries of the day’s proceeds. Representatives from these institutions were present, their stories of hope and resilience adding a deeper layer of meaning to each swing of the club.

Although the day’s event concluded with a lot of memories and significant funds raised, the FOAC isn’t stopping there. They are continuing to collect donations, aiming to hit a target of over $30,000 by the end of the year. Special guests like NCASEF Treasurer Romy Singh and NCASEF Vice Chair Nick Bullar were also present, underscoring the wide support this event enjoys. It’s clear that the FOAC Charity Golf Tournament is more than just a game; it’s a testament to the power of community, generosity, and the love of golf.

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Member News

Flo Milli Releases SlurpeeInspired Summer Hit

SEI has joined forces with rising rapper and artist Flo Milli to launch

a summer track, “Anything Flows,” inspired by its frozen Slurpee drink.

The song, featuring Kari Faux, 2Rare, and Maiya the Don, was released on Spotify and YouTube, and includes verses inspired by Slurpee. As part of the campaign, fans had an opportunity to submit lyrics to an open verse of the song on TikTok or Instagram, using the hashtag #FlowLikeSlurpee until July 12, for a chance to feature on a remix version of the song to be released later in the summer.

This summer, SEI has also collaborated with streetwear, jewelry, and accessories designer King Ice, to create Slurpee-inspired custom jewelry pieces, while a collaboration with multi-media company Lyrical Lemonade will result in music videos to be released later in the summer. In line with the collaborations, 7-Eleven is promoting contests and incentives for its customers, providing them

with numerous opportunities to celebrate their love for the Slurpee drink throughout the summer.

Three Limited-Edition Slurpee Flavors & New Snacks

SEI recently launched three new limited-edition Slurpee drink flavors for the summer season. The new flavors, available at participating 7-Eleven, Speedway, and Stripes continued on page 63

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and-mortar stores. • According to GasBuddy’s 2023 Summer Travel Survey, 64 percent of Americans are planning to take a summer road trip this year, up from 58 percent last year. • In May 2023, U.S. retail sales revenue—including both discretionary general merchandise and consumer packaged goods (CPG)—increased 2 per-

cent compared to the same month last year as unit sales declined 3 percent, according to research firm Circana. This growth came primarily from food and beverage CPG spending, with a 5 percent increase in sales revenue over last year, and 2 percent unit-sales decline. • Target has upgraded its private-label Good & Gather grocery brand, improved produce

consistency and revved up convenience to encourage inflation-strapped shoppers to choose the retailer for groceries and other essentials, reported CNBC. • Starbucks is considering opening delivery-only locations to satisfy the growing demand for third-party delivery, reported Restaurant Business. The company said this would also continued on page 65

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stores, include Summertime Citrus, a sweet, tart blend of mandarin orange and ruby red grapefruit; Sprite Lymonade Legacy, a mix of Sprite’s classic lemon-lime flavor with a splash of lemonade and strawberry; and Hibiscus Lemonade, a unique combination of classic lemonade and earthy hibiscus flavors.

In addition to the new Slurpee flavors, SEI introduced three unique pretzel varieties from its private label brand, Seven Select. The new pretzels are a unique mix of mini twists and rods, blended and spiced in mouthwatering flavors, including: Dill Pickle—a combination of tangy vinegar with real dill seasonings; Buffalo—the authentic taste of buffalo without the mess; and Cinnamon Sugar—a sweet take on pretzels.

7-Eleven Limited Edition Birthday Merch

As part of its 96th birthday celebrations, 7-Eleven, Inc. has announced a limited-time 7/11 Birthday Collection. Available on the company’s online store, 7Collection, this exclusive capsule features a range of custom merchandise. The collection is intended to celebrate those who share the same birthday as the world’s largest convenience retailer, but also caters

to avid fans of their iconic Slurpee drinks.

The 7/11 Birthday Collection includes 7-Eleven-themed party decor and clothing items that add a unique touch to birthday celebrations.

This includes baby onesies proudly declaring birth on the “best day of the year,” kids tees for 7-Eleven birthday twins, adult tees encouraging people to party like it’s 1927, custom wrapping paper, and themed gift bags in the company’s signature colors of orange, green, and red.

Flavorful Wings Added To Summer Menu

SEI has spiced up its summer menu with hot wing deals and a new BBQ flavor. The Glazed BBQ Classic Wings features a smoky-sweet glaze with notes of garlic, paprika, pepper, and tomato, all twice glazed to create a mouthwatering eating experience.

To sweeten the deal, 7Rewards and Speedy Rewards loyalty members can indulge in 10 Classic Bone-In Wings for a mere $5 at participating 7-Eleven, Speedway, and Stripes stores. The summer offer also includes Breaded Boneless Wings, which are marinated in a savory seasoning before being battered and breaded, available for just $3 for eight pieces.

7-Eleven has also partnered with music brand Lyrical Lemonade this summer to provide its loyal customers

the chance to win exclusive, one-ofa-kind prizes. These prizes, ranging from backstage passes to artist meet and greets, are available to 7Rewards and Speedy Rewards members who purchase participating products, which include the newly introduced wings and all Red Bull varieties.

‘Operation Chill’ Returns For The 28th Consecutive Year

SEI recently kicked off another year of Operation Chill, the company’s signature community outreach program. Now in its 28th year, Operation Chill allows law enforcement officers to create positive connections by awarding a coupon to kids they see doing good deeds or exhibiting positive behavior, which can be redeemed for a free small Slurpee drink at any participating 7-Eleven, Speedway, or Stripes store.

With the program new to Speedway, this summer will mark the first time kids will be able to redeem their Slurpee drink coupons at their local Speedway store. The company said it will issue nearly 500,000 coupons to more than 1,300 participating law enforcement agencies across the country, that will, in turn, be rewarded to children in their local communities.

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California FOAs Unite For Trade Show & Charity Golf The Central Valley, Greater Bay, Northern California, and Sacramento Valley FOAs came together once again to host their combined trade show and charity golf events.

The 8th Annual NorCal United 7-Eleven FOAs Trade Show, held on April 18, 2023 at the Sunrise Event Center in Vacaville, California, was a remarkable display of unity, business acumen, and community involvement. With over 100 vendors exhibiting, along with franchisees representing more than 200 stores, the event proved to be very popular with attendees.

Special guests from SEI—including Paula Quigley, Tony Varela, Bruce Maples, Guyton Gagliardi, Jeff Montarbo, Carl Weaver, Lisa Carrasco, and Steve Kellison—added to the gathering, cementing the bond between franchisees and the corporate team.

The very next day, April 19, the group hosted a Charity Golf Tournament at the Hiddenbrooke Golf Club in Vallejo, California, which raised $17,711 for Children’s Miracle Network Hospitals.

The trade show and charity golf tournament were resounding successes, earning high praise from attendees. Moments were captured and immortalized, and attendees were provided with links to view and reminisce the events’ highlights. Moving forward, the NorCal United 7-Eleven FOAs are excited to continue collaborating with franchisees and vendors to drive business growth and sales.

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address an issue that takes place inside the stores, when delivery orders create complexity for employees and slow business for instore, mobile order or drive-thru customers. • A recent study analyzing attrition at a major retailer revealed that employee departures, whether voluntary or due to layoffs, often motivate their colleagues to leave as well, reported the Wall Street Journal. The research also showed that high-performing employees are more likely to leave following

layoffs or voluntary departures of their peers, as they usually have more job options. • Burger chain Wendy’s has partnered with Pipedream to pilot its underground delivery system with the goal of sending mobile food orders from the kitchen to designated parking spots in seconds. The technology uses autonomous robots to transport meals underground and deliver at the car-side Instant Pickup portal for faster and more convenient experiences.

• Amazon and Starbucks have been accused in

a recently filed lawsuit of collecting customers’ personal information without first notifying them, reported the Seattle Times. The proposed class-action lawsuit alleges Amazon and Starbucks have violated a New York City law that requires companies to post signage near store entrances if the businesses are collecting customers’ biometric data, like fingerprints, handprints or the shape of a person’s body.

Camaraderie & Philanthropy Highlight EVFOA Annual Charity Golf Tournament & Trade Show The San Francisco/Monterey Bay FOA Trade Show, held on April 26, 2023 at the Paradise Ballrooms Banquet Hall and Event Center in Fremont, California, attracted franchisees from around the region for a unique blend of networking and new product exploration. Special guests at the event included Vice Mayor of Fremont City, Doctor Raj Salwan and NCASEF President Sukhi Sandhu, emphasizing the commitment to foster regional business growth for all participants.

The event was a significant opportunity for franchisees and vendors to interact, share ideas, and discover the latest industry trends and innovations.

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POWER UP YOUR SNACK SALES WITH HOSTESS Enjoy higher snacks sales with these new Hostess products: Hostess Donettes Old Fashioned Mini Donuts Hostess Brands recently announced the launch of a new breakfast snack: Hostess Donettes Old Fashioned mini donuts.

minus the $0.22 Hostess Rebate brings the final cost to $1.17 before distributor upcharge. P6 promotion is “2 for $4.50.”

Hostess Bouncers The launch of Hostess Bouncers creates new ways for your customers to enjoy their favorite Hostess snacks on the go. Hostess Bouncers are the only filled cake bite in the Packaged Bakery Category, and are baked with real ingredients, contain no high fructose corn syrup, and feature delicious crème filling. Hostess Bouncers are available for order in two delicious flavors: • Hostess Bouncers Glazed Chocolate Ding Dongs are made with real cocoa* and feature a lightly glazed chocolate cake filled with a delightful creamy filling.

Donettes Old Fashioned deliver donut shop taste and quality to breakfast, complete with a scrumptious, moist texture and a sweet glaze in poppable form.

Hostess delivers everyday 52 percent Gross Profit Margin on Hostess bags. Hostess is also promoting every period with 7Rewards and 7Now Apps EDLP pricing— fully funded to drive value and growth. Additionally, the company’s rebate program is $0.25/unit Bags.

Packaged Bakery is a large, growing, and frequently purchased category, up 13 percent YTD 2023. Hostess is winning in the marketplace +22 percent in the latest 52 weeks, and is investing millions in dedicated marketing support. In fact, Hostess Brand contributed 20 percent to total category growth in 2022 and the company alone drove 4 percent.

Hostess Kazbars Hostess Kazbars are a first-of-its-kind candy-barinspired innovation within the snack cakes market that combines six layers of soft chocolate cake, crème, candy crunch and melt-in-your-mouth caramel or smooth chocolate fudge. Baked with real ingredients, the bars are covered in a rich chocolate-flavored coating and topped with a delightful drizzle. Hostess Kazbars are available in two flavors: Chocolate Caramel and Triple Chocolate.

Hostess Kazbars come in a 2.75-ounce size with a SRP of $2.79 and GP% of 58 percent. Cost is $1.39 per unit, 66

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• Hostess Bouncers Cinnamon Donettes are baked with real cinnamon and feature a sweet filling inside a glazed cake donut hole.

GIVE YOUR CUSTOMERS & SALES A BOOST WITH ROCKSTAR RECOVERY Rockstar Recovery, a noncarbonated offering from Rockstar Energy, combines 160mg of caffeine and electrolytes for a smooth, refreshing boost of energy to help your customers reset to perform. As a popular choice in the Recovery lineup, Orangeade features a smooth and delicious Valencia orange flavor, made with real juice and provides 100 percent daily dose of Vitamin B. Founded in 2001, Rockstar Energy Drink produces beverages that celebrate the young hustlers focused on their journey. With over 20 Rockstar Energy products

Offer your customers a performance boost with Rockstar Recovery in popular Orangeade flavor. continued on next page

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and five sublines available at convenience and grocery outlets in over 30 countries globally, Rockstar Energy provides a bold, refreshing boost, full of benefits and loaded with flavors. For more information, visit www.rockstarenergy.com.

SPECIAL T-MOBILE OFFER FOR FRANCHISEES T-Mobile has launched a new program exclusively for NCASEF members and will be participating as a Major Sponsor during the NCASEF Annual Convention and Trade Show in Las Vegas.

• Global Plus (add-on feature) is available for $50 a month.

Includes unlimited talk, text and data globally.

• Get the Inseego MiFi X Pro 5G hotspot at $0 cost with select Business Mobile Internet plans starting at $25 per month.

• Get the Samsung Galaxy Tab A7 lite at $0 cost with the Business Unlimited Select Subsidy Tablet plan for $25 a month.

• Multiple Sensor Solutions including: Temperature monitoring for refrigerators and freezers; energy monitoring; and smart waste bin sensors.

Here are the program highlights: • Get a FREE Samsung Galaxy A14 with the $25 per month Unlimited Select Plan.

• T-Mobile 5G Business Internet available for your store. $50 or $70 per month. Address qualified.

Take advantage of T-Mobile’s special program for NCASEF members.

Great Products & Deals At The San Francisco/Monterey Bay FOA Trade Show

The San Francisco/Monterey Bay FOA Trade Show, held on April 26, 2023 at the Paradise Ballrooms Banquet Hall and Event Center in Fremont, California, attracted franchisees from around the region for a unique blend of networking and new product exploration. Special guests at the event included Vice Mayor of Fremont City, Doctor Raj Salwan and NCASEF President Sukhi Sandhu, emphasizing the commitment to foster regional business growth for all participants. The event was a significant opportunity for franchisees and vendors to interact, share ideas, and discover the latest industry trends and innovations.

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FOA Board Meetings Central Florida FOA

FOA Of Greater Los Angeles

Southern California FOA

Phone: 207-415-0924

Phone: 619-726-9016

Phone: 818-357-5985

August 23, 2023—General Meeting

July 18, 2023—FOAGLA Meeting

November 2, 2023—General Meeting

September 19, 2023—FOAGLA Meeting

August 16, 2023—Board of Directors & Members Meeting

Columbia Pacific FOA Phone: 503-998-5941

October 17, 2023—FOAGLA Mini Trade Show

September 28, 2023—General Membership Meeting

November 14, 2023—FOAGLA Meeting

December 2, 2023— General Membership Meeting

Metro New Jersey FOA

FOA Of Chicagoland Phone: 847-595-1596 August 24, 2023—Board Meeting September 28, 2023—General & Board Meeting October 25, 2023—Board Meeting December 7, 2023—Board Meeting

Phone: 732-910-8854 September 14, 2023—General Member Meeting/Tabletop Show

San Diego FOA

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November 15, 2023—Board of Directors & Members Meeting

UFOLINY Phone: 613-486-6266 September 26, 2023—General Membership Meeting

Phone: 619-713-2411 June 15, 2023—Board of Directors Meeting

November 28, 2023—General Membership Meeting

Children’s hospitals are on the frontlines when it comes to protecting the health of future generations. But they can’t do it alone.

You can help fund pioneering research and transformative care for children not just in their youth, but throughout their lives.

CMNHospitals.org

October 18, 2023—Board of Directors Meeting

October 24, 2023—General Membership Meeting

Change Kids’ Health.

Change the Future.

Give Today!

September 20, 2023—Board of Directors Meeting

FOA EVENTS Joe Saraceno FOA Trade Show Embassy Suites by Hilton Arcadia Arcadia, California September 28, 2023 Phone: 619-726-9016

San Diego FOA Vendor Appreciation Day AleSmith Brewing Company San Diego, California October 5, 2023 Phone: 619-713-2411

FOA Of Greater Los Angeles Mini Trade Show Venue TBD October 17, 2023 Phone: 619-726-9016

Eastern Virginia FOA Holiday Trade show Venue TBD November 15, 2023 Phone: 407-683-2692

FOA Of Chicagoland Holiday Trade Show

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Alliance of 7-Eleven Franchisees FOA Holiday Showcase

San Francisco/ Monterey Bay FOA Holiday Party

Venue TBD November 17, 2023 Phone: 847-949-0097

Delta Hotels by Marriott Santa Clara, California December 2, 2023 Phone: 408-203-1039

Detroit FOA Trade Show Holiday Party Venue TBD November 17, 2023 Phone: 248-766-9002

Metro New Jersey FOA Holiday Party/ Tabletop Show Venue TBD November 18, 2023 Phone: 732-910-8854

United Franchise Owners of Florida FOA Holiday Party Holiday Inn Express Cocoa, Florida December 1, 2023 Phone: 407-683-2692

Venue TBD November 16, 2023 Phone: 847-595-1596

UFOLINY FOA Holiday Party Crest Hollow Country Club Woodbury, New York December 13, 2023 Phone: 613-486-6266

Southern California FOA 2024 Trade Show

Midwest FOA Chicago Holiday Showcase Pinstripes South Barrington, Illinois December 6, 2023 Phone: 847-971-9457

Southern California FOA Holiday Party Venue TBD December 8, 2023 Phone: 818-357-5985

Pasadena Convention Center Pasadena, California May 7, 2024 Phone: 818-357-5985

Southern California FOA 2024 Golf Tournament Pacific Palm Resorts City Of Industry, California May 8, 2024 Phone: 818-357-5985

Northern California FOA Christmas Party Venue TBD December 8, 2023 Phone: 916-837-3039

San Diego FOA Christmas Party Hilton San Diego/Del Mar Del Mar, California December 9, 2023 Phone: 619-713-2411

AD INDEX American Licorice.....................18

Danone.......................................26

Morinaga....................................40

Anheuser-Busch........................42

Diageo.........................................11

PepsiCo - Beverage....................62

AON.....................................12, 13

Dreyers Ice Cream....................50

Perfetti Van Melle......................22

Atmosphere................................51

Heineken..............................52, 58

Sabra...........................................56

Bic USA........................................5

Hostess........................................71

Swedish Match (ZYN)..............20

Bug Juice.....................................16

Kellogg’s........................................3

Swisher Sweets...........................52

CAB Enterprises/Electrolit......30

King Palm...................................28

T-Mobile.....................................72

Celsius...........................................7

McLane.........................................6

Vita Coco......................................4

Coca-Cola....................................2

Mondelez....................................24

Constellation Brands..........36, 37

Monster.........................................8 2023 ISSUE 3 AVANTI

69

FOA EVENTS

continued on page 69

San Diego FOA Charity Golf Tournament

Columbia Pacific FOA Golf Tournament

Rancho Bernardo Inn San Diego, California July 12, 2023 Phone: 619-713-2411

McNary Golf Club Keizer, Oregon August 21, 2023 Phone: 503-998-5941

Rocky Mountain FOA Charity Golf Tournament

San Francisco/ Monterey Bay FOA Charity Golf Classic

Green Valley Ranch Golf Course Denver, Colorado July 13, 2023 Phone: 719-661-1048

Rocky Mountain FOA 2023 Trade Show Gaylord Rockies Resort & Convention Center Aurora, Colorado July 14, 2023 Phone: 719-661-1048

Greater Oregon FOA 2023 Annual Golf Tournament Pumpkin Ridge Golf Course North Plains, Oregon July 17, 2023 Phone: 503-516-3483

Greater Oregon FOA Annual Trade Show Pumpkin Ridge Golf Course North Plains, Oregon July 18, 2023 Phone: 503-516-3483

Delaware Valley FOA Trade Show Caesars Atlantic City Atlantic City, New jersey July 20, 2023 Phone: 215-852-4738

FOA Of Chicagoland Annual Picnic Cook County Forest Preserve, Grove #27 Chicago, Illinois July 23, 2023 Phone: 847-595-1596

Greater Northwest FOA Golf Outing Harbor Pointe Golf Club Mukilteo, Washington August 16, 2023 Phone: 707-344-1070

70

AVANTI 2023 ISSUE 3

Castlewood Country Club Pleasanton, California August 21, 2023 Phone: 408-203-1039

Cal-Neva FOA Annual Golf Classic

NCASEF BOA RD MEETINGS National Coalition Board meetings are scheduled one per quarter.

Vendors interested in sponsoring a Board meeting should contact John Riggio, JR Planners, at 262-394-5518 or johnr@jrplanners.com.

Toiyabe Golf Club Washoe Valley, Nevada August 24, 2023 Phone: 775-826-7111

National Coalition Board of Directors Meeting

San Diego FOA Del Mar Races

Caesars Palace Las Vegas, Nevada July 29-30, 2023

Del Mar Thoroughbred Club Del Mar, California August 25, 2023 Phone: 619-713-2411

UFOLINY FOA Golf Outing Baiting Hollow Club Baiting Hollow, New York September 6, 2023 Phone: 613-486-9266

Utah FOA Annual Trade Show TBD September 13, 2023 Phone: 801-547-2750

Utah FOA Golf Event Top Golf September 14, 2023 Phone: 801-547-2750

United Franchise Owners Of Florida FOA 2nd Annual Trade Show Holiday Inn Express Cocoa, Florida September 21, 2023 Phone: 407-683-2692

NCASEF 47th Annual Convention & Trade Show Caesars Palace Las Vegas, Nevada July 30-August 2, 2023

National Coalition Affiliate Meeting Hyatt Regency San Francisco San Francisco, California November 7-8, 2023

National Coalition Board Of Directors Meeting Hyatt Regency San Francisco San Francisco, California November 9-10, 2023

Hostess Fix the Mix with Top Seller + High Gross Profit 60% Everyday ®

Focus on Top Voids with High APSD Nationally #2 Ranked Hostess® Frosted Donettes® 174320 #3 Ranked Hostess® Powdered Donettes® 171248 #6 Ranked Hostess® Iced Vanilla Zingers® 171259

Why Carry?

Action Steps:

•

ALL stores love High Gross Profit, Hostess® singles have 60% GM/ $1.56 GP EVERYDAY!

•

2023 YTD Hostess® is outpacing the Category growing at +22%, while Category growth is +13%

•

Warehouse Brands Like Hostess® are growth drivers in Packaged Bakery Category for C-Store

•

Sweet baked goods is a winning Category; large, growing, and frequently purchased Category

•

Hostess® Brand contributed 20% to total category growth in 2022 and our innovation alone drove 4%.

•

Hostess® cakes and breakfast pastries have a strong affinity and pair well with coffee and breakfast drinks

•

Mark SKU’s as Carried

•

Set to POG Recommendations

•

Print and place tags on shelf Item

SLIN

Pack/Size

SRP

GP%

GP$

Chocolate Cupcakes

175408

6/3.17 oz

$2.59

60%

$1.56

Top 10

Frosted Donettes®

174320

6/3 oz

$2.59

60%

$1.56

Powdered Donettes®

171248

6/3 oz

$2.59

60%

$1.56

Twinkies®

175407

6/2.7 oz

$2.59

60%

$1.56

Must Have to Drive Profit

Crunch Donettes®

174346

6/4 oz

$2.59

60%

$1.56

Iced Vanilla Zingers®

171259

6/3.81 oz

$2.59

60%

$1.56

Coffee Cake

171270

6/2.89 oz

$2.59

60%

$1.56

Glazed Donettes®

171374

6/3.7 oz

$2.59

60%

$1.56

Devil’s Food Zingers®

171133

6/3.81 oz

$2.59

60%

$1.56

Orange Cupcakes

171343

6/3.38 oz

$2.59

60%

$1.56

All costs/retail are national averages. Please refer to the ISP for exact cost/retail by store.

Exclusive offer for NCASEF members

Get the Samsung Galaxy A14 5G

ON US $25

with the Unlimited Select Plan /line per month

plus taxes and fees.

Via bill credit with 2-year agreement on Unlimited Select Plan when you port in or add a line. Plus tax.

The Unlimited Select plan includes: Unlimited talk and text

50GB Premium Data

Scam Shield™

5GB of high-speed mobile hotspot data

Unlimited international texting from home

N CA

ME X

Talk, text, and 5GB of high-speed data in Mexico and Canada

During congestion, customers on this plan using >50GB/mo. may notice reduced speeds until next bill cycle due to data prioritization.

Video typically streams on smartphone/tablet in SD quality. Up to 50GB high-speed tethering then unlimited on our network at max 3G speeds.

This offer is available only at ncasef.hyperionportal.com See you at the NCASEF Trade Show in Las Vegas!

Scan to visit site.

Limited-time offers; subject to change. Samsung Galaxy A14 5G offer: Tax on pre-subsidy price of device due at sale. Limited-time offer; subject to change. Qualifying credit, business account, 2-year agreement, & service required. If you have cancelled lines in past 90 days, you may need to reactivate them first. $25 SIM kit may be required. Must be active and in good standing to receive credit. May not be combinable with some offers or discounts. Unlimited Select Plan: $35 device connection charge due at sale. Credit approval & deposit may be required. Monthly Regulatory Programs (RPF) & Telco Recovery Fee (TRF) totaling $3.49 per voice line ($0.50 for RPF & $2.99 for TRF) and $1.40 per data only line ($0.12 for RPF & $1.28 for TRF) applies: taxes/fees approx. 6-28% of bill. U.S. roaming and on-network data allotments differ: includes 200MB roaming. Unlimited talk & text features for direct communications between 2 people: others (e.g., conference & chat lines, etc.) may cost extra. Unlimited high-speed data US only. In Canada/Mexico, up to 5GB high-speed data then unlimited at up to 128kbps. Not available for hotspots and some other data-first devices. Video streams at up to 2.5Mbps. Optimization may affect speed of video downloads; does not apply to video uploads. For best performance, leave any video streaming applications at their default automatic resolution setting. Tethering: 5GB high-speed data then unlimited on our network at max 3G speeds.

For the small fraction of customers using >50GB/mo., primary data usage must be on smartphone. Smartphone usage is prioritized over Mobile Hotspot (tethering) usage, which may result in higher speeds for data used on smartphone. Intl Roaming: Usage may be taxed in some countries. Calls from Simple Global countries, including over Wi-Fi, are $.20/min. (no charge for Wi-Fi calls to US, Mexico and Canada); customers on consumer plans (e.g. some sole proprietors) pay an additional $.05/min. Standard speeds approx. 128Kbps without PlusUp; with PlusUp approx. 256 Kbps. Not for extended international use; you must reside in the U.S. and primary usage must occur on our network. Device must register on our network before international use. Service may be terminated or restricted for excessive roaming. Coverage not available in some areas; we are not responsible for our partners’ networks. Scam Shield: Capable device req’d. Turning on Scam Block might block calls you want; disable any time. Network Management: Service may be slowed, suspended, terminated, or restricted for misuse, abnormal use, interference with our network or ability to provide quality service to other users, or roaming. See T-Mobile.com/Openlnternet for details. See Terms and Conditions (including arbitration provision) at www.T-Mobile.com for additional information. T-Mobile and the magenta color are registered trademarks of Deutsche Telekom AG. ©2023 T-Mobile USA, Inc.