Avanti Issue 5 2023 by Avanti Magazine

2023 ISSUE 5

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Navigating An Evolving Retail Landscape Effective Planning Requires Input From All 7-Eleven Partners

The Vital Role Of Our NCASEF Committees The Power Of Respectful Dialogue Gasoline In 2023 Strategies To Beat Inflation In The Retail Industry Keep Calm And Franchise On Your Donations In Action

The Affiliate Member Directory Page 41

N ! EN V VE E E L L S! E Y E YS A 7 A 7 D D I A I A L L O O TO HO G GT E EH N N I H I H T M T M R R O EF ALL C C O CA CO O O O F L L R E R R U OU OR YO TO TY S A ST AT P P U U E NE E!! ON R RE KO O O T CK T S P S PIIC N EN VE EV ELLE 77--E

© 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 Company. Sprite® is a registered trademark 2 The Coca-Cola AVANTI 2023 ISSUE 5of The Coca-Cola Company.

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THE VOICE OF 7-ELEVEN FRANCHISEES

Contents

2023 Affiliate Member Directory Page 41

15 Your Donations In Action By Children’s Miracle Network Hospitals

17 The Vital Role Of Our NCASEF Committees By Sukhi Sandhu, NCASEF Chairman

21 The Power Of Respectful Dialogue By Joe Rossi, NCASEF Executive Vice Chair

Gasoline In 2023: Are The Prices At The Pump Working For Anyone?

Strategies To Beat Inflation In The Retail Industry

Keep Calm And Franchise On: How To Respond To A Letter Or Notice

By Eric Karp, Esq., General Counsel To NCASEF

By Teeto Shirajee, NCASEF Vice Chairman

By Thomas Ayres—Warner, Federico & Ryan, LLP

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

Joe Saraceno FOA’s Inaugural Trade Show Event

San Diego FOA Board Meeting

Utah FOA Hits A Hole-In-One

San Diego FOA Celebrates Its Vendor Partners

UFOF FOA’s Successful 2nd Annual Trade Show

San Diego FOA Amplifies ‘Shop With A Cop’

NACS Show Attracts 7-Eleven Franchisees

San Diego FOA’s Yearly Safety Meeting

Joe Saraceno FOA Supports Children’s Hospital

Texas FOA Donates To Swim Across America

Texas FOA Has Productive Meeting With McLane

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.

Third Quarter 2023 Affiliate & Board Of Directors Meeting Summary Page 46

PA RT M

Keep The Safety Focus This Holiday Season

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

Legislative Update.......50 Bits & Pieces..........52 SEI News...................60 Vendor Focus....62 FOA Events.....................66 2023 ISSUE 5 AVANTI 9

Member News

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

7-Eleven #2 On Franchise Times Top 400 List

7-Eleven has landed the second position in the latest Franchise Times Top 400 list, making it one of the largest U.S.-based franchise systems by global systemwide sales. The retailer registered $93.5 billion in annual global sales, experiencing a slight dip of 1.7 percent compared to the previous year. However, the number of units for the chain went up by 7.2 percent to 84,601. While 7-Eleven showed a mix of sales decline and unit growth, the overall top 10 list featured strong performances across the board, including another convenience store brand, Circle K, at #9. The top 10 franchised brands collectively added $10.4 billion in sales in 2022, a 2.8 percent increase over the prior year.

7-Eleven Leads In Regional Dominance

Foot traffic to convenience stores has seen a significant increase of over 60 percent in the past four and a half years, according to Placer.ai’s report “C-store

“7-Eleven has landed the second position in the latest Franchise Times Top 400 list.”

Trends & The Brands Leading the Way.” While the convenience store industry remains competitive and localized, 7-Eleven, Inc. stands out as the dominant brand in multiple regions, including the West Coast, Hawaii, New York, Colorado, Nevada, and Washington, D.C. Speedway, acquired by 7-Eleven in 2021, also leads in Alaska and parts of the Midwest. The report suggests that the rise in convenience store popularity is partly driven by inflation and enhanced foodservice offerings.

NACS Q2 2023 Global C-Store Industry Report

The recently released NACS Q2 2023 Global Convenience Store Industry Report reveals that only convenience stores in Hong Kong saw a decline in sales year-over-year, while 15 countries experienced over 10.1 percent growth; nine of these were in Latin America, four in Europe, and two in the AsiaPacific region. However, the majority of countries (19 out of 31) reported weaker sales growth in Q2 compared to Q1 of 2023. In the United States, liquor and packaged sweet snacks were the top categories for sales growth, whereas fluid milk, ice, and cigarettes saw the most significant declines. In Canada, non-alcoholic packaged beverages and packaged ice cream and novelties led continued on page 12

AVANTI 2023 ISSUE 5

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

Rajneesh Singh 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

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

The National Coalition Office 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.

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 5 ©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.

Joe Saraceno FOA’s Inaugural Trade Show Event The Joe Saraceno FOA successfully hosted its first-ever trade show on September 28, 2023, at the Embassy Suites by Hilton in Arcadia, California. This momentous event had a huge turnout, underscoring robust support from franchisees. Attendees included franchisees from various Southern California locations such as Bakersfield, Ventura, Santa

Barbara, and San Diego, along with a few participants from Las Vegas.

corporate support for the FOA’s initiatives.

High-profile attendees from the NCASEF graced the event, including Chairman Sukhi Sandhu and Vice Chair Nick Bhullar. The presence of Michigan FOA’s Ali Haider further added to the event’s significance. Market Manager David George represented SEI, demonstrating

Vendors played a pivotal role at the trade show, offering exceptional products that led to a substantial number of orders. The event’s success marked a promising start for future Joe Saraceno FOA trade shows.

2023 ISSUE 5 AVANTI 11

Member News continued from page 10

in sales growth, while packaged bread saw a significant drop. The report, released in collaboration with NIQ, aims to guide operators in understanding market trends and challenges for the remainder of the year.

Visa & Mastercard To Increase Merchant Fees

Visa and Mastercard are set to increase the fees charged to merchants for accepting customer credit card payments, with many of the hikes aimed at online purchases,

reported the Wall Street Journal. The new fees are scheduled to come into effect in October and April. The changes could result in an additional annual cost of $502 million for merchants, as estimated by consulting firm CMSPI. The fee increases are divided into two categories: network fees and interchange fees, also known as swipe fees. CMSPI estimates that just over half of the increased revenue will come from network fees, while the remainder will come from interchange fees. These fees have been a longstanding point of contention between merchants and card networks, and they often get passed on to consumers in the form of higher prices. U.S. merchants paid an estimated $93 billion in such fees to Visa and Mastercard last year, according to the Nilson Report. The timing of the fee increases is

“Visa and Mastercard are set to increase the fees charged to merchants for accepting customer credit card payments, with many of the hikes aimed at online purchases.” contentious, especially as many businesses are grappling with inflation and high interest rates. Some lawmakers have taken notice, reintroducing legislation that could allow merchants to process credit card transactions over alternative networks, potentially reducing fees. These bills have been referred to committees in both the House and Senate. continued on next page

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Public Support For Credit Card Swipe Fee Reform Grows

Nearly two-thirds of likely voters in the U.S. are in favor of reforming credit card swipe fees, according to a new survey conducted by the Merchants Payments Coalition. The survey found that 65 percent of respondents support swipe fee reform, with cross-party support from Democrats (69 percent), independents (66 percent), and Republicans (60 percent). Support also extended across age groups, with 67 percent of those 35 and older and 56 percent of younger respondents backing the reform. The push for reform comes as Senate sponsors are seeking to include the Credit Card Competition Act in a “minibus” spending plan. This act aims to bring

competition into the credit card market, which is largely dominated by Visa and Mastercard. The bill would require banks with at least $100 billion in assets to enable their cards to be processed over at least two unaffiliated networks. The legislation aims to reduce swipe fees, which have more than doubled over the past decade and became merchants’ second-highest operating cost after labor. If enacted, it’s expected to save merchants and consumers around $15 billion a year.

Private Label Items Gain Traction Amid Inflation

As inflation continues to affect consumer spending, retailers like Casey’s General Stores are seeing a surge in sales of their

“As inflation continues to affect consumer spending, retailers are seeing a surge in sales of their private label food and beverage items.” private label food and beverage items, reported the New York Times. Over the past year, Casey’s store brand made up 25 percent of all chip sales, encroaching on the market share of big brands like Frito-Lay. Private label goods have also made significant inroads in categories like canned vegetables, cheese, and coffee, capturing a greater market share than ever before. A changing grocery landscape, marked by consolidations and continued on page 49

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Change Kids’ Health. Change the Future. Haumea has undergone more than 10 surgeries in her six years of life at her local children’s hospital, including a complex rotationplasty that allowed her to get a prosthetic leg. After the 16-hour surgery, Haumea decided to name her new leg “Sparkle.” Her positivity and unstoppable attitude are an inspiration to all! Thanks to donations, Haumea is receiving ongoing healthcare services, such as physical therapy, and has access to innovative research allowing her to enjoy life to the fullest with her prosthetic leg, “Sparkle.”

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Your Donations In Action BY CHILDREN’S MIRACLE NETWORK HOSPITALS

Children’s Miracle Network Hospitals is unrelenting in our desire to ensure every child has a healthier future. Through the power of our network, we unite communities to raise unrestricted funds needed by our member children’s hospitals for their most urgent needs. By increasing awareness and raising millions of dollars, our collective impact grows ensuring kids have access to holistic, best in class care to unleash their future potential.

“When you donate through NCASEF or your local FOA, the donation goes to your local member hospital.” Children’s Miracle Network Hospitals (CMN Hospitals) is proud to be the National Coalition of Associations of 7-Eleven Franchisees’ charity of choice. NCASEF and local FOAs are raising critical funds for children’s hospitals across the U.S. to help fulfill their top priorities We make all this possible at the local level. When you donate through NCASEF or your local FOA, the donation goes to your local member hospital. One-hundred percent of funds raised go to the local member hospital. Each member hospital and community are different and so are their needs. These unrestricted funds allow the member hospital, who best understand their needs, to use those funds accordingly. Funds In Action: Valley Children’s Hospital Tour In September 2023, NCASEF Chairman

“In September 2023, NCASEF Chairman Sukhi Sandhu, members from the Central Valley FOA, and Alfonso Franco joined CMN Hospitals for a tour of Valley Children’s Hospital.” Sukhi Sandhu, members from the Central Valley FOA, and Alfonso Franco joined Children’s Miracle Network Hospitals for a tour of Valley Children’s Hospital in Madera, California. Valley Children’s Hospital provides Central California’s only high-quality, comprehensive care exclusively for more than 1.3 million children—from before birth to young adulthood. Tour attendees interacted with and observed different units, programs, and services throughout the hospital. A walkthrough a patient playroom space with a Child Life Specialist highlighted one of the many ways member hospitals can help

“A walk-through a patient playroom space with a Child Life Specialist highlighted one of the many ways member hospitals can help meet the physical, mental, and emotional health needs of their patients.”

meet the physical, mental, and emotional health needs of their patients. The Child Life Specialist also highlighted the many ways their team meets the emotional, social, developmental, and educational needs of patients through medical play, surgery and procedure preparation, and age-appropriate illness and hospital education. Spaces like the playroom and services like child life are found in member hospitals across the country. Services like child life are completely dependent on philanthropy and are critical roles within a children’s hospital. Art and pet therapy, counseling, and outdoor gardens are a few additional examples. In 2022, more than $98 million funded local patient services. Interested in seeing the impact of fundraising at your local member hospital? Contact Kate Burgess at KBurgess@ CMNHospitals.Org. 2023 ISSUE 5 AVANTI 15

AVANTI 2023 ISSUE 5

The Vital Role Of Our NCASEF Committees BY SUKHI SANDHU, NCASEF CHAIRMAN

In the ever-evolving landscape and challenges of running a 7-Eleven store, the role of our NCASEF committees is crucial. They are the engines driving positive change and addressing storewide issues, forming a vital link between our franchisees and SEI.

areas such as store operations, finance, technology, logistics, and government affairs. Many of our committees are dedicated to a specific aspect of store management—like Accounting/ Finance, Digital/IT/7Now, and Facility Maintenance—while others focus on

“Issues raised by members at local FOA meetings are escalated to the NCASEF Board, where they are then assigned to the relevant committee.”

“When I was first elected NCASEF Chairman, my primary goals were to change the culture of the organization into one of partnership and dialogue, and to create a platform where we as a group could work with our franchisor and vendor partners to improve the system to everyone’s benefit.”

authentic, on-the-ground insights are invaluable to SEI in understanding the practicalities and nuances of running a franchised 7-Eleven store.

When I was first elected NCASEF Chairman, my primary goals were to change the culture of the organization into one of partnership and dialogue, and to create a platform where we as a group could work with our franchisor and vendor partners to improve the system to everyone’s benefit. I realized this could not be achieved by the officers of this organization alone. But I also realized the passion and knowledge within our Board of Directors are immense, and I knew this talent could be utilized. As such, our committees are composed of franchisee leaders who bring a wealth of experience and insights from their stores. Committee members are selected for their expertise, dedication, and passion for improving the 7-Eleven system. Their chief responsibility is to identify, discuss, and propose solutions for a variety of challenges faced by our stores. Each committee is headed by a chairperson and is championed by one of our NCASEF officers, ensuring a robust support system for addressing issues efficiently. The committees focus on diverse

internal NCASEF matters like bylaws and membership, convention, and charity golf, thereby ensuring targeted solutions. Working closely with SEI’s upper management, department heads and subject matter experts, our committees serve as vital communication bridges. They bring to light the issues faced at the store level and work with SEI to devise effective solutions. This collaboration is critical. It ensures that the voices of our franchisees are heard and considered in the decision-making processes that affect their businesses. Our committees’

“Working closely with SEI’s upper management, department heads and subject matter experts, our committees serve as vital communication bridges.”

Our committees operate on a dynamic and responsive model. Issues raised by members at local FOA meetings are escalated to the NCASEF Board, where they are then assigned to the relevant committee. The committee chairs play a crucial role in addressing these issues, working closely with SEI and other stakeholders to find solutions. These solutions are then communicated back down the chain, from the FOA presidents and vice presidents to the individual franchisees. The effectiveness of our committees is evident in the progress updates they provide during every NCASEF Board of Directors meeting. These updates are comprehensive reports reflecting the ongoing dialogues and engagements with SEI. Each Board meeting, in turn, is an opportunity to review the progress on existing issues and to introduce new challenges identified by our franchisees. This constant flow of information keeps the NCASEF Board informed and involved in the problem-solving process. Additionally, our committees educate us on best practices—knowledge that our Board members can then take back to their respective FOAs. It’s important to emphasize the continued on page 19

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The Vital Role Of Our NCASEF Committees continued from page 17

constructive nature of our relationship with SEI. These meetings are not just about presenting problems, but are a platform for collective problem-solving and mutual growth. Over the last two years, we have seen significant positive changes coming from these dialogues, reflecting the effectiveness of our joint approach. The work of our committees is a testament to the value of teamwork and communication. By working hand-inhand with SEI, we are not just solving problems; we are strengthening the relationship between our franchisees and corporate. This collaborative spirit is at the heart of what we do at NCASEF. It’s about ensuring that our franchisees have the support, resources, and voice they need to thrive. Our NCASEF committees are also

“As Chairman, I am immensely grateful for the hard work and contributions of these committee members, who continuously strive to affect positive change within the 7-Eleven system.” a testament to our commitment to leveraging the shared talent and passion of our members. Their dedication and volunteerism are invaluable, making a significant impact on the effectiveness and success of our organization. As Chairman, I am immensely grateful for the hard work and contributions of these committee members, who continuously strive to affect positive change within the 7-Eleven system.

and supporting our franchisees. The challenges in the 7-Eleven system are ever-evolving, and so are the strategies and solutions needed to address them. With our committees at the forefront of these efforts, I am confident that we will continue to overcome challenges and seize new opportunities for the benefit of all 7-Eleven stakeholders.

As we move forward, the role of our committees will continue to be central to our efforts in advocating for

SUKHI SANDHU

Join Your Local Franchise Owner’s Association Today! The best way to stay informed of the latest changes and challenges to our 7-Eleven system-and the convenience industry, in general-is to join your local Franchise Owner’s Association. FOAs help franchisees share ideas and concerns, and allow us to approach our franchisor and vendor partners with a unified voice. Becoming an FOA member also makes you a member of the National Coalition, which consists of all 41 FOAs nationwide. To join your local organization, contact the FOA president closest to you, or follow the instructions below to fill out an online membership form. If you cannot find the FOA closest to you, contact nationaloffice@ncasef. com for more information. We welcome your participation!

“None of us is as great as all of us together”

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

How do I join an FOA? 1.

Log in to 7Help using 7Hub (secured) in-store or using this link https:/7elevenna.servicenow.com/from any external device.

2. In the search bar type “FOA.” 3. Select the popup suggestion “FOA/ PAC:FRANCHISE OWNERS ASSOCIATION.” 4. Type “NONE” in the “Current FOA” box if you are joining an FOA for the first time or you are not a member of any other FOA. 5. Type in the full name of the FOA that you wish to join (No abbreviation) in the “Future FOA” box. 6. Type in the amount of monthly dues as instructed per local FOA. 7.

Type “Please enroll (store number) as a member of (name of the local) FOA.”

8. Repeat Step 7. 9. Press the green submit icon. 2023 ISSUE 5 AVANTI 19

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The Power Of Respectful Dialogue BY JOE ROSSI, NCASEF EXECUTIVE VICE CHAIR

There’s no underestimating the power of open, honest, and respectful communication, especially when it comes to our interactions with representatives from 7-Eleven, Inc. (SEI). In my role as NCASEF Executive Vice Chairman, one of my key responsibilities is to ensure that the voices of our franchisees are heard, their concerns addressed, and their experiences shared. This is especially crucial when we’re in discussions with SEI, where our goal is not just to present our challenges, but to work collaboratively towards solutions that benefit everyone involved in this great system.

“When we meet with SEI representatives, we have a platform to bring these issues to light.” It’s important for us, as franchisee leaders, to express the pain points of our members. These are not just individual grievances or operational hurdles; they often represent broader, system-wide issues that can impact the success and sustainability of our stores. When we meet with SEI representatives, whether it’s during FOA meetings, NCASEF gatherings, or SEI-hosted committee meetings, we have a platform to bring these issues to light. However, it’s crucial that these discussions remain civil and respectful. In any relationship, especially one as intricate and interconnected as ours with SEI, the tone of our conversations can set the stage for the outcomes. By maintaining professionalism and respect, we foster an environment where

“By maintaining professionalism and respect, we foster an environment where open communication is not just possible, but productive.” open communication is not just possible, but productive. This approach has helped us move away from confrontational standoffs and towards constructive dialogues, where both sides can express their perspectives, understand each other’s positions, and work together towards common goals.

outcomes from these discussions, including policy adjustments, improved support systems, and even the rollout of new programs that directly address the issues we’ve raised. One of the key advantages of having these dialogues in formal settings like FOA or NCASEF meetings is the structured environment they provide. These forums allow for organized discussions, where issues can be presented systematically, and responses can be thoughtfully considered. Additionally, having these conversations in the presence of other franchisees and leaders can spark further insights and ideas, enriching the dialogue and leading to more comprehensive solutions.

In these discussions, it’s more beneficial to focus on global, systemwide issues rather than store-specific As franchisee leaders, we have a problems. While individual store responsibility to represent our members challenges are certainly important, effectively and constructively. Our addressing broader issues can lead to discussions with SEI are pivotal in changes and improvements that benefit shaping the future of our stores and the a larger group of franchisees. For brand as a whole. By focusing on systeminstance, discussing topics like inventory efficiencies, accounting “While individual store challenges system issues, or IT and are certainly important, addressing Digital improvements can have a ripple effect, broader issues can lead to changes improving operations and improvements that benefit a larger across all stores. These group of franchisees.” conversations can lead to strategic changes wide issues, maintaining a respectful and that elevate the entire brand, rather than professional tone, and taking advantage just addressing isolated incidents. of the structured forums provided by This new era of open communication FOA and NCASEF meetings, we can between SEI and franchisee leaders is not ensure that our voices are not just heard, just about airing grievances; it’s about but are instrumental in driving positive collaboration and partnership. It’s about change. coming together to identify challenges, brainstorm solutions, and implement JOE ROSSI strategies that propel our stores and CAN BE REACHED AT 312-501-4337 or joer@ncasef.com the brand forward. We’ve seen positive 2023 ISSUE 5 AVANTI 21

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Gasoline In 2023: Are The Prices At The Pump Working For Anyone? BY ERIC H. KARP, ESQ., GENERAL COUNSEL TO NCASEF

For the standing room only crowd that attended my report at the 2023 NCASEF Convention, I gave an overview of a number of subjects regarding the state of the 7-Eleven system, necessarily focusing on gasoline sales, which over the last several years have been an increasing percentage of SEI’s revenue and profit. The acquisition of the Sunoco and Speedway chains have accelerated this phenomenon.

wholesale businesses, averaged 8.9 percent; in the three years since the onset of the pandemic (2020-2022) its average gross margin rose to 12.4 percent.

franchisee should take note of. The balance of this article contains a lot of numbers, but I think it’s important to walk through them carefully and analytically.

• These numbers have consequences because in 2022 SEI’s total revenue from gasoline was $13.6 billion and it sold 6.2 billion gallons.

Same store retail sales started off strong in January with a 6.4 percent year-over-year increase, but then fell to 4.5 percent in February, 3.3 percent in March, and 2 percent in April. It continued its downward trend through August (the most recent month for which these figures are available) when the same store sales increase was just 0.2 percent.

In its Brief Summary FY 2022* on

“SEI now has more than 8,200 stores with gasoline, up from approximately 3,376 stores at the end of 2017.” A few highlights for those who were unable to attend: • SEI now has more than 8,200 stores with gasoline, up from approximately 3,376 stores at the end of 2017. • SEI gross profit on gasoline sales rose more than tenfold from 2011, rising from $533 million in that year to more than $5.7 billion in 2023. • In 2022, more than 78 percent of SEI’s revenue came from the sale of gasoline. SEI gross margin from the retail sale of gasoline rose from 24.09 cents in 2019 to 34.85 cents in 2020—the year in which the pandemic began—an increase of nearly 45 percent. It rose again to 35.77 cents in 2021 and 42.14 cents in 2022. • In the three years before the pandemic (2017-2019), SEI’s gross margin percentage from the sale of gasoline, from the combination of its retail and

April 6 2023, SEI ‘s parent company reported that merchandise gross profit in calendar year 2022 was 34 percent, down from 34.2 percent the year before. In explaining this development to investors, it stated the following: “A decrease in gross profit on merchandise was outweighed by growth in gross profit on fuel, leading to a year-onyear increase in the overall gross profit margin factor.”

Here are year-to-date same store retail sales by month through August 2023 compared to the monthly rates of inflation as calculated by the U.S. Bureau of Labor Statistics. The same store sales increase and the rate of inflation for January 2023 were identical. In the ensuing seven months, the rate of inflation was materially higher than the increase in sales.

Something even more interesting has been happening in 2023 which every

“Same store retail sales started off strong in January with a 6.4 percent year-overyear increase, but then fell to 4.5 percent in February, 3.3 percent in March, and 2 percent in April.”

The statistics regarding fuel sales are equally concerning. Again, January of continued on page 25

2023 ISSUE 5 AVANTI 23

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Gasoline In 2023: Are The Prices At The Pump Working For Anyone? continued from page 23

2023 showed a 2.6 percent year-overyear increase in fuel sales dollars. But every month thereafter through August has shown a year-over-year decrease in fuel sales, with the deepest decreases occurring in May, June and July.

quarter retail prices averaged $3.467 per gallon, in the second quarter $3.613, and for July and August averaged $3.74 per gallon.

I will leave it to the reader to interpret these numbers, but notice a few things. A similar story appears with respect to gasoline gallons sold at retail, which were modestly positive in the first quarter but have been negative from April through August. Notice that the retreat in fuel gallons every month from April through August is substantially less than the reduction in fuel sales year-overyear.

• From March to April, the average retail price was increased by $0.20, but the number of gallons dropped from an increase of 2.9 percent in March to a decrease of 4.7 percent in April, and fuel sales revenue for the month was 18.8 percent lower than the same month the year before.

to price its gasoline at the pump at reduced levels that would yield gross profit similar to that which it experienced pre-pandemic? • Would that not increase the number of gallons sold resulting in elevated revenue to SEI and higher gasoline commissions paid to franchisees, higher transaction counts, and elevated merchandise sales, resulting in additional gross profit split dollars in favor of franchisees and SEI, not to

“A similar story appears with respect to gasoline gallons sold at retail, which were modestly positive in the first quarter but have been negative from April through August.” • Similarly, the average retail price increased by $0.24 from July to August, and the number of fuel gallons dropped by 2 percent and sales were down 6.6 percent for the month, year-over-year. Are these correlations or simply coincidences?

At the same time the retail price at the pump has been increasing. In the first

“In the first quarter retail prices averaged $3.467 per gallon, in the second quarter $3.613, and for July and August averaged $3.74 per gallon.”

Thinking about the story that these numbers tell us, raises a number of questions. • What would happen if SEI chose

mention the customer goodwill that it would generate? How about a good faith and transparent dialogue on these questions? (*See https://www.7andi.com/en/ir/file/ library/kh/pdf/2023_0406khe.pdf)

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

2023 ISSUE 5 AVANTI 25

San Diego FOA Board Meeting Includes All Stakeholders On October 18th, the San Diego FOA Board of Directors convened for a meeting at the Four Points by Sheraton in San Diego. The meeting involved all 7-Eleven stakeholders and highlighted the FOA’s commitment to fostering professional growth, enhancing industry knowledge, and strengthening the network within the 7-Eleven system. The meeting also included a Tabletop Trade Show, adding a dynamic and interactive element to the proceedings. The trade show featured presentations from vendors like Anheuser-Busch, Express Ice Company, Hershey

Company, Goat Fuel, Perfetti van Melle, and Recover Organic Hydration. The Board meeting welcomed distinguished guest speakers, adding a depth of industry knowledge and expertise to the event. These included SEI Market Leaders Mladen Dinic (Interim 2112) and Kendall Mcintosh (2131), Interim Director of Operations Bobbie King, and Asset Protection Specialist for the Southwest Region Sherry Liken. Additionally, Juan Interiano, the Asset Protection Manager for both the Southwest and Coastal Desert Regions, shared his expertise.

Strategies To Beat Inflation In The Retail Industry BY TEETO SHIRAJEE, NCASEF VICE CHAIRMAN

In the dynamic world of convenience retailing, 7-Eleven franchisees face the ever-present challenge of inflation, which threatens to erode profit margins and disrupt operational efficiency. However, there are robust strategies that can be employed to counteract these challenges and ensure the sustainability and growth of our 7-Eleven franchises.

inventory.

“Attractive deals on popular products can spur sales and sustain customer loyalty, even amid rising prices.”

Adopting price optimization techniques is essential. This entails analyzing market trends, competitor pricing, and customer behavior to determine the most effective pricing strategy for each product. Regularly reviewing and adjusting prices ensures franchisees do not miss out on potential profits and effectively mitigate the effects of inflation.

customers are more likely to remain consistent purchasers, even in the face of price increases. To summarize, effectively managing inflation as a 7-Eleven franchisee involves a multifaceted approach:

“Franchisees must diligently scrutinize every expense, identifying avenues for cost reduction or elimination.”

1. Rigorous cost control.

A critical step in this battle is stringent cost control. Franchisees must diligently scrutinize every expense, identifying avenues for cost reduction or elimination. This can range from renegotiating supplier contracts for better terms, sourcing more affordable alternatives for specific products, to adopting energyefficient practices to slash utility and maintenance costs. These measures not only reduce outgoings but also enhance overall efficiency.

5. Business diversification for risk spreading.

Inventory management is another vital area. Regular inventory analysis helps

“Regular inventory analysis helps identify slow-moving or obsolete items.” identify slow-moving or obsolete items. By minimizing excess inventory and concentrating on high-demand products, franchisees can optimize cash flow and reduce the negative financial impacts of holding unsold stock, particularly important given the interest costs on

Strategically selecting which vendor promotions and discounts to participate in can also be effective. Attractive deals on popular products can spur sales and sustain customer loyalty, even amid rising prices. However, it’s crucial to strike a balance between enticing promotions and maintaining overall profitability.

2. Strategic inventory management. 3. Intelligent price optimization. 4. Profit-focused promotions and discounts.

6. Cultivating strong customer relationships and service. By implementing these strategies, 7-Eleven franchisees can navigate the complexities of inflation, turning

“Exceptional customer service and

Diversification presents a personalized shopping experiences foster proactive way to spread the risks associated with inflation. customer loyalty, helping your store stand This could mean expanding into out from competitors.” new product lines or exploring new market segments. By diversifying, franchisees can reduce their potential challenges into opportunities dependency on a single product, market, for sustained success and growth. This or vendor, thereby cushioning the proactive approach not only helps in business against inflationary pressures. maintaining profitability, but also ensures Building and maintaining strong customer relationships is indispensable. Exceptional customer service and personalized shopping experiences foster customer loyalty, helping your store stand out from competitors. Loyal

a competitive edge in the convenience store sector. TEETO SHIRAJEE CAN BE REACHED AT 954-242-8595 or teeto.shirajee@yahoo.com

2023 ISSUE 5 AVANTI 27

Keep Calm And Franchise On: How To Respond To A Letter Or Notice BY THOMAS AYRES, WARNER, FEDERICO & RYAN, LLP

Franchisees who receive Letters of Notification or Notices of Material Breach may see themselves to be in a very precarious position. It can seem that the market leader gets to be the judge, jury, and (big gulp!) executioner by claiming you have breached one or more of your many contractual obligations. Each situation is unique; there is no one-sizefits-all response. Here are some general steps and strategies to help you get back to doing what you do best: serving your customers and communities. Stay calm. Upon receiving a letter/ notice, some franchisees immediately want to have a face-to-face or telephone conversation explaining how the allegations are total you-know-what. While this may feel good—and may even be correct—it’s unlikely to make the letter/notice go away and even less likely to help you down the road. The worst thing you can do is ignore the letter/ notice, especially since an alleged breach at one store puts others you may own at risk, too. Try to fix it. There are some alleged breaches that cannot be cured (like filing for bankruptcy or being convicted of a felony), but the franchise agreement allows you to cure many immediately or within two, three, fifteen or thirty days, depending on the circumstances. Even if you think the letter/notice exaggerates or nitpicks unfairly, immediately acting to correct the alleged breach will probably save you future legal headaches (and lots of money). Taking steps to cure is not necessarily admitting that you’re at fault. As you go about fixing an alleged breach, save any invoices and take pictures to create a documentary record.

Respond in writing. You receive a writen letter/notice, so you should respond in writing to address the facts as they apply to the franchise agreement and the applicable law. Consider hiring a lawyer (if you don’t have one already on retainer) to help craft your response and understand your rights. You may want the lawyer to ghost-write a response that you send, or you may want the lawyer to send the response. “Getting lawyers involved” can escalate tensions, but it also shows the franchisor you’re a sophisticated franchisee taking the threat to your reputation and business seriously. Create a timeline. Unless the letter/ notice involves a sudden and unexpected health code violation, there are usually important events leading up to the notice. You should educate your lawyer regarding these events and provide whatever supporting documents you have, like unfulfilled orders, photos, or screenshots of texts. In the process of creating the timeline, you may be reminded of relevant facts, such as whether the SEI representative previously told you not to worry about things that now form the basis of the alleged breach. Like any company, the franchisor’s employees leave or change positions, communications get crossed, and their perspectives and approaches may be inconsistent. Scrutinize the letter/notice. Since there’s no such thing as double-secret probation in franchising, the letter/notice to you must state clearly which provision of the franchise agreement and/or manual you have allegedly breached. You should review the cited provisions carefully in case the franchisor has mistakenly quoted them or is erroneously applying them to you due to a prior waiver or

exemption. Sometimes there are even gaps or inconsistencies within the manual, or even between the manual and the franchise agreement. Sometimes the franchisor is trying to enforce a standard against you, but not other franchisees or even nearby company-owned locations. (After all, what’s good for the goose is good for the gander.) Your lawyer can help you point out any errors or inconsistencies to provide a comprehensive defense. Check the state laws. Over twenty states have relationship laws that protect franchisees or provide longer cure periods than are found in the franchise agreement, most notably California and Washington. Your lawyer can help you understand your rights as a franchisee, including when the alleged breach is a pretext for something else. Strike the right tone. A letter/notice sometimes reflects misunderstandings or isolated incidents that can be fixed promptly and demonstrably and with reasonable explanations provided. Work with your lawyer to create a respectful and factual response that protects your business and avoids unnecessary conflict. Tom Ayres is an attorney in the Boston office of Warner, Federico & Ryan LLP and advocates for franchisees and their associations. He can be reached at tayres@ wfrllp.com and 617-970-0063. This provides a generalized overview and is not intended to be, and should not be construed as, legal advice for any particular fact situation.

THOMAS AYRES CAN BE REACHED AT 314-960-6736 or 617-970-0063 or tayres@wfrllp.com

2023 ISSUE 5 AVANTI 29

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Utah FOA Hits A Hole-In-One With Trade Show & Charity Golf Events Golf Course in Draper, Utah, on September 14. The tournament saw enthusiastic participation, with approximately 68 golfers hitting the greens for a cause. In a remarkable display of generosity and community spirit, this event raised over $5,700 for Children’s Miracle Network Hospitals. These two events reflect the Utah FOA’s commitment to blending business growth with social responsibility, setting an admirable example for FOAs nationwide.

The Utah FOA recently held two remarkable events that brought together 7-Eleven stakeholders for business and good will. The Annual Trade Show, held on September 13, 2023, at the Radisson Hotel in Salt Lake City, was a bustling hub of activity and innovation. The trade show floor was a vibrant marketplace with 28 booths from industry giants like Coke, Pepsi, and Bucked Up, among others. This event was not only a display of hot new products and deals, but a dynamic platform for networking, sharing insights, and fostering partnerships. Following the trade show, the Utah FOA hosted its Charity Golf Tournament at the South Mountain

2023 ISSUE 5 AVANTI 35

San Diego FOA Celebrates Its Vendor Partners The San Diego FOA thanked its vendors partners for their continued support during its Vendor Appreciation Day event, held on October 5, 2023, at the AleSmith Brewing Company in San Diego, California. Over 40 franchisees and vendor guests attended the celebration, creating an atmosphere of community and mutual appreciation. Culinary delights were a highlight of the day, with delicious food catered by Sabor Mexican Grill & Taqueria, featuring a taco cart. Adding to the festive spirit, TCD Transcold Distribution generously donated an ice cream cart, offering sweet treats to attendees. The event provided a perfect blend of casual networking and enjoyment for all participants. A diverse array of vendors attended the event, including representatives from notable brands like Ashland

AVANTI 2023 ISSUE 5

Beverage, Anheuser-Busch, AShoc Energy, Blue Triton, Coast Beverage, Coca-Cola, Electrolit, Happy Dad, Hershey’s, Keurig Dr. Pepper, Frito-Lay, John Lenore & Co., McLane, Monster Energy, 21 ROCS, Transcold Ice Cream, Red Bull, Sahara Stock & Go, Stone Distributing, and Zen Water. The event featured table-top presentations from several companies, including Express Ice Company, Gym Weed, Mini Melts, Oxyshred, PepsiCo, The Patch Brand, and 22nd Century Group Inc. These presentations allowed vendors to directly engage with franchisees and highlight their latest offerings. In all, the San Diego FOA’s Vendor Appreciation Day underlined the group’s commitment to fostering strong relationships with its vendors, crucial for the sustained growth and success of 7-Eleven franchisees.

KEEP THE SAFETY FOCUS THIS HOLIDAY SEASON BY JOHN HARP, CSP, ARM—RISK ENGINEERING CONSULTANT MITSUI SUMITOMO INSURANCE GROUP

The holidays and the new year are a busy, hectic, fun, and risky time of year. It’s a challenging time for retailers, but can be profitable with traffic increasing. There is nothing more convenient than a 7-Eleven during the chaotic holiday season.

can rapidly increase or come in waves?

in-store displays low enough to maintain good visibility?

4. Do you have a stable, experienced employee workforce that is generally dependable?

• Limit outside activities after dark. Employees should not take out the trash after midnight. Check your exterior lights!

• Make sure “Around the holidays a combination of weather, Around the holidays employees know a combination of distractions, financial hardship, and the unprecedented how and when increase in crime makes for a dangerous scenario weather, distractions, to use the panic without the right precautions.” financial hardship, and alarm. the unprecedented • Cash limit in registers should increase in crime makes for a be strongly enforced. If a robber dangerous scenario without the right Crime/Shoplifting—Violence Is succeeds in getting excess cash, you precautions. Let’s look at the key risk More Common Now! are a likely target again. control strategies to protect your • Customer Service—Ensure your • Cigarettes are a valuable target item. employees and customers. employees make eye contact and Limit these and other target items in First, assess your risk factors: greet the customer. the register area of the store. Secure 1. Do you have a high risk or history them in a cage in the backroom and • Cleanliness—A clean store inside of crime or shoplifting? minimize inventory. and out shows customers and 2. Are you located where heavy rain, possible criminals there is a high • Keep the office door closed or snow, ice, or other weather can level of care. locked to limit the temptation of a challenge driving and employee/ would-be criminal seeing cigarettes • Employee training and reminders customer slip and fall risk? or cash. about handling shoplifting or 3. Is your store near a shopping mall criminal threats. Refresh the • Tempers can flare during the or busy area where customer traffic reminders for all employees this holidays. As patience is lower, time of year, especially for new effective de-escalation can be the hires. difference between life and death. Remind your employees and coach • Are your windows free of large them. displays that can obstruct vision from inside and out? And are

• Encourage the police to stop in for coffee or drinks and park in your lot after hours. Work with law enforcement to understand criminal or “Keep the office door closed or locked organized crime activity in to limit the temptation of a would-be your neighborhood.

criminal seeing cigarettes or cash.”

continued on page 39

2023 ISSUE 5 AVANTI 37

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Keep The Safety Focus This Holiday Season continued from page 37

holidays to help employees keep the primary focus.

Common Reasons For Unsafe Behavior • Tired • Inattention or distracted • Didn’t know • Failure to follow rules • Unclear priorities • Believe “it won’t happen to me” • In a hurry Weather • Be prepared with mats, dry mops, and absorbent. • In rain or snow add an extra mat at the front door (cardboard is not an effective mat). • Clean up spills, dry mop wet areas, and use “Caution - Wet Floor” signs, but remove them when not needed. • Watch for ponding or pools of water in the parking lot or sidewalk. • Remind your employees to wear shoes with improved slip-resistance.

• Recognize the risks and causes of unsafe behavior, and talk with your employees about any concerns and corrective actions.

“Give your employees the best chance to be safe this holiday season. Walk the store, correct unsafe conditions, keep it clean, communicate and reinforce a message of ‘I care about you and your family.’” Summary Employee Safe Behavior • Employees can be injured on the job because of many reasons. During the holidays, there is a greater risk of distractions. As employees get busier, the risk of injury increases. • Communicate with your employees, including schedules. Anticipate if overtime will be needed and if the usual staffing help will be available and prepare. • Keep a close eye on the lone worker at night. Any distraction and the risk of crime-related injury is magnified. • Minimize changes to schedules, stocking arrangements, or any other store procedures during the

“During the holidays, there is a greater risk of distractions. As employees get busier, the risk of injury increases.”

Many different factors need to be considered during the holidays: employee training, hiring practices, enhanced security, and basic employee and customer safety. Success in ensuring this holiday season is a safe one begins with clear communication. It’s all about decisions. Help your employees make the right and safe ones! If someone is injured, remember to use the SEI Hotline as required, and contact your broker or insurance company as soon as possible. This will help reduce claims costs and chances of legal action. If you have any concerns or questions, or need further advice, contact your broker or MSIG.

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

2023 ISSUE 5 AVANTI 39

AVANTI 2023 ISSUE 5

2023

AFFILIATE MEMBERS

2023 AFFILIATE MEMBER DIRECTORY

Franchisees: Call or email the representatives below if you have questions for them or simply want to speak to a representative from their company.

22nd Century Group

Anheuser-Busch, Inc.

10115 Kingshyre Way Tampa FL 33647 813-295-3163 james.spencer@abbott.com

225 East John Carpenter Way Irving, TX 75062 908-930-9674 john.crerand@anheuser-busch. com

Tom Meyer

5-Hour Energy Brad Margheim

14150 Colt Chase Road Frisco TX 75035 972-948-2481 bmargheim@fivehour.com

Abbott Nutrition James Spencer

10115 Kingshyre Way Tampa FL 33647 813-295-3163 james.spencer@abbott.com

Accel Entertainment Teresa Radtke

John Crerand

Aon Risk Services Ryan Fulton

Barbot Insurance Services John Barbot

9001 Grossmont Blvd #711 La Mesa CA 91941 619-337-0290 619-609-1882 619-337-2703 jcbarbot@barbotins.com

5005 LBJ Freeway, Suite 1400 Dallas TX 75244 214-989-2560 214-989-2304 Ryan.Fulton@aon.com

Beam Suntory

Atkinson-Crawford Sales Co.

jay.hornback@beamsuntory.com

11999 Plano Road, Suite 110 Dallas TX 75243 972-234-0947 972-979-9845 bhenderson@acsales.com

1023 Springdale Rd #11F Austin TX 78721 805-823-5959 craig@beatboxbeverages.com

Butch Henderson

Jay Hornback

1104 Keighly Crossing Dardenne Prairie, MO 63368 314-368-7429

BeatBox Beverages Craig Ritcheson

BIC USA

Ben Leiting

One Bic Way, Suite 1 Shelton CT 06484 712-269-5488 Ben.Leiting@bicworld.com

Big Ideas Marketing Marc Segal

2235 Sisson St Baltimore MD 21211 410-654-8786 443-277-0223 410-654-8792 marc@bigideasmarketing.com

Bimbo Bakeries/ Barcel USA Ryan Barrios

11407 N. Weidner Rd San Antonio, TX 78233 210-452-6258 Ryan.Barrios@grupobimbo.com

Benestar Brands

Blue Triton Brands

Acosta Sales & Mktg

416 Congress Ave. Austin, TX 78701 512-729-5176 bianca.gosser@atmosphere.tv

4118 S. Halsted Street Chicago IL 60609 404-391-2211 wade.batten@benestarbrands.com

900 Long Ridge Road Stamford, CT 06902 203-241-2653 edward.dube@bluetriton.com

926 Vista Lane Desoto TX 75115 972-515-0805 jdbennett@acosta.com

Bang Energy

BFC Solutions

1600 North Park Dr Weston FL 33326 786-390-2043

545 Mainstream Drive Suite 250 Nashville TN 37228 629-250-9814 frank.lord@BFCSolutions.com

140 Tower Drive Burr Ridge IL 60527 630-280-6119 teresar@accelentertainment.com

Jeremy Bennett

Altria Group Distribution Erin Haby

2600 Network Blvd., Ste 200 Frisco, TX 75034 830-931-5516 Erin.A.Haby@pmusa.com

Atmosphere TV Bianca Gosser

Anayansi Ramirez anayansi.ramirez@bangenergy.com

Wade Batten

Frank Lord

Erik Dube

Bon Appetit Mike Kawas

4525 District Blvd. Vernon CA 90058 913-708-5526

m.kawas@bonappetitbakery.com

continued on page 42

2023 ISSUE 5 AVANTI 41

2023

AFFILIATE MEMBERS

continued from page 41

Bonya

Joseph Burke

PO Box 924 Rye, NY 10580 914-313-6905 josephmburke@gmail.com

Bored & Thirsty Kurt Lohse

724 Poinsettia N. Suite 2 Santa Ana CA 92701 714-878-8424 kurt@boredandthirsty.com

Botanic Tonics LLC Chris Elebesunu

501 West Avenue, Unit 1203 Austin, TX 78701 937-248-3285

celebesunu@botanictonics.com

Bridgford Foods Richard Mueller

Bucked Up

CENTR Brands

Danone North America

2600 Queen Margaret Drive Lewisville, TX 75056 214-226-8192 bryan.mazur@greatpointbrands.com

300-2318 Oak St Vancouver BC V6H 4J1 646-345-5913 jrosinsky@findyourcentr.com

12002 Airport Way Broomfield, CO 80021 303-550-7815 rachel.federico@danone.com

Bryan Mazur

Bug Juice International Richard Hunsberger

5520 Wisdom Court Waco TX 76708 214-914-5531 rhunsberger@bugjuice.com

CAB Enterprises— Electrolit Kaitlin Pierce

2700 Post Oak Blvd. Floor 21 Houston, TX 77056 817-333-4196 kaitlinopierce@outlook.com

Calico Brands Aristeo Acosta

2055 S. Haven Avenue Ontario CA 91761 909-930-5000 909-214-1961 aacosta@calicobrands.com

Campbell’s Snacks Sabrina Crum

Bring it Home

Canarchy Craft Brewery

9235 N Union Blvd, Ste 150-311 Colorado Springs CO 80920 714-553-2735

1617 Funny Cide Drive Waxhaw NC 28173 704-748-3530 sabrina_crum@campbells.com

Jeff Kataoka

john@bringithomecommunities.com

12 Walnut Bay Court Sacramento CA 95831 916-320-4288 jeffk@canarchy.beer

Bubbies Ice Cream

Celsius

Emily Notrica

101 N. 1st Ave., Ste. 1725 Phoenix, AZ 85003 480-393-3007 626-627-9424 emily.notrica@bubbiesicecream.com

Coca-Cola

Myrna Hawkins

5800 Granite Pkwy, Suite #900 Plano TX 75024 214-244-9485

mbarronhawkins@coca-cola.com

Congo Brands

1415 W 44th Street Chicago IL 60609 312-733-0300 312-520-8311 rmueller@bridgford.com

John Giaimo

Josh Rosinsky

Erich Kleeman

2424 N Federal Hwy, Ste 208 Boca Raton, FL 33431 830-456-1738 ekleeman@celsius.com

Jimmy Gutierrez

7692 Alderwood Ave. Eastvale, CA 92880 714-604-7039 jgutierrez@congobrands.com

Constellation Brands David Deka

131 S Dearborn St Ste 100 Chicago IL 60603 312-219-1323 david.deka@cbrands.com

COOP Ale Works Kevin Haworth

4745 Council Heights Rd Oklahoma City OK 73179 405-441-8470 kevin@coopaleworks.com

Core-Mark International Rich Haen

1415 W Diehl Rd. Suite 300N Naperville, IL 60563 630-536-3719 937-367-4100 rich.haen@pfgc.com

Country Archer Adam Vick

1055 E. Cooley Ave. San Bernardino, CA 92408 704-213-2130 a.vick@countryarcher.com

Dafanie Financial Harris May

850 Pacific Street, 1162 Stamford, CT 06902 203-666-5560 203-536-2069 harris.may@coloniallifesales.com

AVANTI 2023 ISSUE 5

Rachel Federico

Dreyer’s Grand Ice Cream Chip Vineyard

1202 Lakewood Drive McKinney, TX 75072 214-534-5721 chip.vineyard@us.Froneri.com

Ecolab

David Read

116 Dory Ln Stansbury Park UT 84074 413-265-5054 david.read@ecolab.com

EHP Labs

Shane Dees

6300 Canoga Ave Suite1500 Woodland Hills CA 91367 817-823-0087 shane@ehplabs.com

Fairlife LLC

Jason Tomlinson

1001 W. Adams Street Chicago IL 60607 740-403-0885 jasont@fairlife.com

Ferrara Candy Taylor Condon

404 W. Harrison St., Suite 650 Chicago IL 60607 248-877-1847 Taylor.Devine@ferrarausa.com

FIFCO USA

Rodney Norrell

19 Tradewinds Dr. Galveston, TX 77554 409-651-4188 rodney.norrell@fifco.com

Fiji Water

Patrick Haas

11444 W. Olympic Blvd. Suite 210 Los Angeles CA 90064 856-426-2775 patrick.haas@fijiwater.com continued on next page

Firestone Walker Brewing Co. Patrick Butler

5161 E Rosewood St. Tucson, AZ 85711 631-965-1939 pbutler@firestonebeer.com

FunkAway

Scott Wood

2401 West 69th Street Mission Hills, KS 66208 773-319-3839 swood@p2mbrands.com

Geloso Beverage Group Andrew Donohue

683 Westray Drive Westerville, OH 43081 740-317-8251 adonohue@gelosobev.com

Glanbia Performance Nutrition/Amino Energy Adam Friday

3500 Lacey Rd., Suite 1200 Downers Grove IL 60515 561-353-8563 adamfriday@glanbia.com

Golden Rates Insurance Agency Raj Malhi

5025 El Camino Ave. Carmichael, CA 95608 888-819-8384 530-329-4600 raj@goldenratesinsurance.com

Grecian Delight Kronos Foods Eliot Kaufman

1 Kronos Drive Glendale Heights, IL 60139 224-300-8241

Happy Dad Hard Seltzer

In Motion Design

3011 S Croddy Way Santa Ana, CA 92704 949-370-4000 sam@happydad.com

7314 Madison Street Paramount CA 90723 562-537-6898

Sam Shahidi

anorouzi@in-motion-design.com

ITG Brands

222 W Las Colinas Blvd, 1675E Irving, TX 75039 845-391-1760 zstefanik@heinekenusa.com

11601 Plano Road, Suite 112 Dallas, TX 75243 662-420-4134

Keurig Dr Pepper

michael.espino@itgbrands.com

5301 Legacy Drive Plano TX 75024 972-822-7270 todd.doan@kdrp.com

Zack Stefanik

Michael Espino

Hershey Company

JM Smucker

19 East Chocolate Ave Hershey PA 17033 774-641-3600 sepriest@hersheys.com

1 Strawberry Lane Orville OH 44667 502-381-9661 elly.villescas@jmsmucker.com

Samantha Priest

Elly Villescas

Hostess Brands

Johnsonville Sausage

9030 County Road 2432 Terrell TX 75160 940-368-4413 972-638-7523 jlawing@hostessbrands.com

PO Box 906 Sheboygan Falls WI 53085 920-453-6960 920-918-9102 920-453-2221 grech@johnsonville.com

Jackie Lawing

HTWO Hydrogen Water David J Brooks

6339 Charlotte Pike Nashville, TN 37209 615-961-2300 brooks@industrialsalescorp.com

Impact Sales & Marketing Diane Drew

1851 Windmill Run Wimberley TX 78676 512-847-3284 512-563-3947 512-847-7284 ddrew@impact-sales.net

Included Health

Green Team Worldwide Environmental Group

13230 Ballantyne Corporate Pl. # 1608 Charlotte, NC 28277 508-630-6162

65 Triangle Blvd Carlstadt NJ 07072 973-420-4634 miglena.minkova@greenteamworldwide.com

AFFILIATE MEMBERS

Heineken USA

ekaufman@kronosfoodscorp.com

Miglena Minkova

2023

Amir Norouzi

Nancy Brock

nancy.brock@includedhealth.com

Eugene Rech

JUUL Labs Lisa Lee

560 20th Street San Francisco CA 94123 706-570-0206 lisa.lee@juul.com

Kellogg’s

Christina Quintana

One Kellogg Square Battle Creek MI 49016 331-703-4511

Christina.Quintana@kellogg.com

Kenny’s Candy and Confections Stephen Ornell

109 Lakeside Drive Perham MN 56573 972-977-2446 sornell@klnfamilybrands.com

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Todd Doan

Koia

Linnea Fohlbrook

5190 Shaw Lane Denton TX 76208 214-843-7012 linnea@drinkkoia.com

Lagunitas Brewing Company Michael Evans

1280 N McDowell Blvd Petaluma CA 94954 217-652-6147 michael.evans@lagunitas.com

LifeMade Products Colt Bearden

6375 Lansdale Road Fort Worth TX 76116 817-538-8693 Colt.Bearden@lifemadeproducts.com

Liquid Death

Rachel Ridenour

3898 Van Ness Lane Dallas TX 75220 214-558-2482 Rachel@liquiddeath.com

Mad Tasty

Daniel Kelly

4041 Macarthur Blvd, Suite 170 Newport Beach CA 92660 941-527-5749 dankelly@madtasty.com

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2023

AFFILIATE MEMBERS continued from page 43

Mars Wrigley George Dugan

11404 Maggiore Drive Austin, TX 78739 713-299-1235 george.dugan@effem.com

McLane Company Inc. Nick Bullard

4747 McLane Parkway Temple TX 76504 414-704-9392 nick.bullard@mclaneco.com

MegaMex Foods/ Hormel—Don Miguel

MONSTER Energy Company Michael Pineiro

1 Monster Way Corona CA 92879 951-316-8635 michael.pineiro@monsterenergy.com

Morinaga America Raymond Gates

4 Park Plaza, Suite 750 Irvine CA 92614 518-812-4478 gates@morinaga-america.com

Mother Parkers Tea & Coffee Peter Doyle

7800 Will Rogers Blvd Fort Worth TX 76140 713-682-8250 832-725-1749 713-682-0530 pdoyle@mother-parkers.com

Todd Ginley

MSIG

Mini Melts of America

15303 Dallas Parkway, Suite 1300 Addison TX 75001 908-928-4090 908-251-3863 kchansen@msigusa.com

110 Claremont Dr. Ovilla, TX 75154 972-670-8875 twginley@mmxfoods.com

William Allison

2540 Metropolitan Drive Trevose PA 19053 860-889-7300 267-975-0262 860-887-1033 bill@minimelts.com

Molson Coors Ryan Gasper

7800 North Dallas Parkway, Ste 400 Plano TX 75024 803-603-7961 ryan.gasper@molsoncoors.com

Mondelez International Steven Myers

6 James Circle Shippensburg PA 17257 240-533-5067 steven.myers@mdlz.com

KC Ann Hansen

Nagra Insurance Services Raj Nagra

2411 Old Crow Canyon Rd., Ste. 140 San Ramon, CA 94583 925-362-3130 925-216-0477 925-984-2921 nagrainsurance09@gmail.com

Nestle USA Brian Reilly

3611 French Creek Drive Heartland, TX 75126 515-721-7187 Brian.Reilly@us.nestle.com

NJOY

Perfetti Van Melle

9977 N 90th Street, Suite 160 Scottsdale AZ 85258 609-903-3678 jfinn@njoy.com

3645 Turfway Road Erlanger KY 41018 918-231-0119 scott.swanson@perfettivanmelle.com

Justin Finn

NYSLIFE

Bradford Boutilier

711 Ginesi Drive Morganville NJ 07751 201-626-8592 bboutilier@nyscollection.com

Pabst Brewing Co. Diego Ayala

110 E. Houston St. San Antonio, TX 78205 210-868-4629 832-397-7652 dayala@pabst.com

Scott Swanson

Pladis

Bryan Baker

10 Bank Street, 10th Floor White Plains NY 10606 201-681-1157

bryan.baker@pladisglobal.com

Procter & Gamble Javier Parga

8474 Sierra Hermosa San Antonio, TX 78255 408-832-9430 parga.j.1@pg.com

Paradox

Promark

6330 E Thomas Rd #200 Scottsdale AZ 85251 406-459-6743 404-368-6742 tori.lasiter@paradox.ai

213 Four Park Road Lafayette, LA 70507 337-886-6901 ext. 101 337-326-1114 337-886-6931 lori.davis@promark-fim.com

Tori Lasiter

PathWater

Jaswinder Singh

3133 Osgood Ct Fremont CA 94539 916-430-6771 jassi@drinkpath.com

Payality Powered by Payroll People Bettye Smith

2152 E Copper Ave, #105 Fresno CA 93730 559-251-9060 bsmith@payrollpeople.com

PepsiCo, Inc.

Marla Daudelin

7701 Legacy Drive Plano TX 75024 407-461-1243 Marla.Daudelin@pepsico.com

Lori Davis

Red Bull North America AJ Quahliero

325 Marshall Heights Drive Pittsburgh PA 15090 215-519-0215 aj.quahliero@redbull.com

Redneck Sunscreen James Geraghty

1314 B Center Dr PMB 441 Medford OR 97501 917-846-6557 boss@redneckcompany.com

Republic Amusements Jerry Marfut

868 Sandbox Dr Aubrey TX 76227 214-980-6308 214-970-8350

jerry@republicamusements.com

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Republic Brands

SRP Companies

Sweetwood Smokehouse

2301 Ravine Way Glenview IL 60025 224-374-6239 swegert@republicbrands.com

15 N. 1800 West Lindon UT 84042 407-412-8563 jack.claiborne@srpcompanies. com

2670 Copper Ridge Cir #3 Steamboat Springs, CO 80487 970-879-7456 214-425-5702 ian@sweetwood.com

Steve Wegert

RJ Reynolds Tobacco Co. Rosa Garcia

401 N Main Street Winston Salem NC 27101 424-228-2709 847-630-9540 garciar2@rjrt.com

Sapporo-Stone Brewing Robert Holman

Swisher International

5800 Heron Bay Lane McKinney TX 75070 916-622-4188 ralph.talamantez@stewartspiked.com

4354 E. Kentbrook Dr. Springfield MO 65802 904-598-4642 banthony@swisher.com

Ralph Talamantez

Storck USA 8809 E. Long Court Centennial, CO 80112 312-494-5912 312-256-3745 312-494-7912 tony.harper@us.storck.com

Som Sleep

Stratus Group

Abdul Khan

5029 Auckland Avenue North Hollywood CA 91601 415-203-1514 abdul@getsom.com

Spike, LLC

Tim Patterson

1850 Reliable Circle Colorado Springs, CO 80906 719-473-7700 719-338-1146 tp@getspike.com

Splash Beverage Group

Ian Pecoraro

Stewart’s Enterprises

Tony Harper

1999 Citracado Pkwy Escondido CA 92029 760-294-7899 909-213-6970 robert.holman@sapporo-stonebrewing.com

James Allred

Jack Claiborne

Gabriel Lopez

Director of Sales 41518 Grand View Drive Murrietta CA 92562 310-989-6782 gabriel@stratusgp.com

Swedish Match North America Aaron H. Choate

403 Wellington Court Southlake TX 76092 817-312-2017 877-860-7481 aaron.choate@swedishmatch.com

13142 Terlingua Creek Drive Frisco, TX 75033 601-209-5667 Jamesa@splashbeveragegroup.com

Brett Anthony

T-Mobile

Farouk Latif

3560 Dallas Parkway Frisco TX 75034 469-981-0574 469-345-0037 farouk.latif1@t-mobile.com

Turning Point Brands George Cooper

AFFILIATE MEMBERS continued from previous page

Vixxo Corporation Regina Coleman

7000 E Shea Blvd Ste H1970 Scottsdale AZ 85254 925-756-7075 916-217-5130 regina.coleman@vixxo.com

Whatcha Burnin Nasreen Gill

1303 Bayshire Lane Herndon, VA 20170 703-994-7555 703-481-5156 ngill0007@whatchaburnin.com

Wonderful Pistachios & Almonds

610 Tall Oaks Court Centerton AR 72719 479-224-9763 gcooper@tpbi.com

Holly Hines

Ultimate Sales & Services Beth Coldsmith

1063 Enchanted Rock Drive Allen TX 75013 214-701-5282 holly.hines@wonderful.com

ZOLT, LLC

PO Box 14258 Savannah, GA 31416 512-657-4317

bcoldsmith@ultimate-sales.com

Vita Coco

Tom Puntoompoti

2023

HMichelle Jones

820 Summer Park Dr #700 Stafford TX 77477 346-309-2947 706-825-8824 michelle@zoltusa.com

250 Park Ave South, 7th Floor, at 20th St New York NY 10003 718-614-8592 tpuntoompoti@vitacoco.com

Enroll In The NCASEF Affiliate Member Program Today! Seize the opportunity offered by the NCASEF Affiliate Member Program to network and forge valuable connections with NCASEF Board members from across the country. This program offers a platform for Affiliate Members to engage with the President and Vice President from each of the 41 regional Franchise Owners Association (FOAs) under the NCASEF umbrella during three

annual meetings. The meetings include a charity golf tournament supporting Children’s Miracle Network Hospitals, and interactive sessions including roundtables, breakout discussions, and social events designed for individual networking. Affiliate Members also have an opportunity to acquire presentation slots during any of the four annual

NCASEF Board Meetings—where they can showcase their innovative products directly to the Board—and reserve a table at any of the Tabletop Trade Shows that are part of the three Affiliate Member meetings. Begin your membership journey at https://ncasef.com/program-pages/ vendor-affiliate-members/. 2023 ISSUE 5 AVANTI 45

NCASEF’s Third Quarter Bo Navigating Challenges & The National Coalition of Associations of 7-Eleven Franchisees convened for its third quarter Board of Directors meeting at the iconic Caesars Palace in Las Vegas on July 29 and 30, 2023, just prior to its 47th Annual Convention and Trade Show. Amidst the busy 100 Days of Summer, the meeting brought together franchisee leaders to discuss pressing issues and strategize for the future. Committee reports highlighted the first day’s discussions, diving into a range of issues crucial to the franchisee community. Store profitability, IT issues, vendor relations, merchandising, logistics, captive insurance, and government affairs were some of the key topics discussed. The Store Profitability/Fuel committee emphasized the need for franchisees to remain diligent in monitoring various reports on a daily, weekly, and monthly basis. A lively Q&A touched on the nuances of captive insurance, store sting operations, 7Now fees, and the need to allow stores to close overnight when labor and crime become issues. The Vendor Relations/Merchandising committee report emphasized the symbiotic relationship between vendors and NCASEF, as well as the importance of delivering a strong ROI for vendors supporting NCASEF and FOA events. The Logistics/Simplification Committee highlighted the need for

AVANTI 2023 ISSUE 5

efficiency in the delivery check-in process, proposing the establishment of local and regional committees to address logistical issues and improve communication among all 7-Eleven stakeholders. The Government Affairs/ Community Relations committee brought to light pressing matters such as minimum wage hikes, paid leave mandates, and potential joint employer rule changes by the NLRB. Political advocacy through PACs was identified as crucial to advocating for franchisee interests. General Counsel Eric Karp then provided insights into SEI’s financials, followed by discussions on the management of the escrow funds left over from the California and Massachusetts legal cases. The committee reports continued, with Tobacco/Legislative Education discussing the new anti-smoking sign requirements, which posed concerns regarding store placement, sign size, and non-compliance consequences. The potential impact of bans on menthol cigarettes and tax hikes on other cigarettes were also discussed. Afterwards, the Charity Golf committee provided details on the convention’s charity golf event. During the Facility Maintenance committee’s report, concerns were raised about prolonged equipment downtimes and the quality of maintenance services, including from In-House Maintenance. The Accounting & Finance committee explained several ARC report columns, addressing issues over audit discrepancies and the need for clearer report language. The possibility of adjusting audit schedules was also touched upon. The Digital/IT/7Now committee delved into digital enhancements, including RIS 2.0 rollouts and selfcheckouts. Board members expressed concerns about frequent IT incidents like network outages causing loss of sales, profitability, and customer

oard Of Directors Meeting & Planning For The Future dissatisfaction. The importance of properly rebooting registers and ISP to avoid file corruption was also discussed. The day concluded with Board members bringing additional items for discussion, highlighting the necessity for external accounting assistance, accurate software systems, the 7-Clean program and store cleanliness, and the pressing need for timely license renewals given the shortage of staff on the licensing team. Safety, security, and the viability of overnight store closures were also topics of vigorous discussion, reflecting the diverse and pressing issues at the heart of the franchisee community. The second day of the Board meeting was both engaging and enlightening. The presence of SEI executives brought a wealth of insights to the table. SEI’s Senior Director of Franchisee Relations and Engagement Bruce Maples introduced the corporate team. First up, Executive Vice President and Chief Merchandising Officer Jesus Delgado Jenkins outlined a comprehensive merchandising strategy aimed at boosting store foot traffic and transaction units. This strategy notably revolves around transforming the assortment mix, embracing the SCANNER model, and leveraging a 7-point plan to enhance inventory supply and promotional activities. The subsequent Q&A session revealed franchisee concerns about inventory management, cost inaccuracies, and the financial implications of SEI’s policies on their net income. The spotlight then shifted to the Captive Insurance Program, presented by Director of Corporate Insurance and Risk Management Nancy Laughlin and Aaron Strahota (Operational Support). This innovative program, developed in collaboration with franchisees, is designed to reduce dependency on commercial markets and develop favorable claim experiences. Its key attribute is that it is owned and led by franchisees, with any excess cash aimed at reducing future

premiums. The involvement of Marsh as the insurance administrator promises efficient management of the program. IT-related discussions were led by Senior Vice President and Chief Information Officer John Fee, Senior Director of Software Engineering IT Matt Ditzler, and Senior Director of Merchandising Operations IT Seth Moore. They emphasized their commitment to stabilizing and simplifying the system, with a focus on early detection of issues to reduce the burden on franchisees, store employees, and customers. The ensuing Q&A session highlighted technical difficulties with 7Hub and 7MD, and the need for updates to the ISP and POS systems to avoid transaction errors. Finally, the Convention and Entertainment committee presented a detailed rundown of the upcoming NCASEF convention and trade show, covering aspects from registration to entertainment, ensuring an informative and fun event for all participants. Overall, this Board meeting provided a platform for open dialogue and exchange of ideas. The discussions underscored the collective concerns and aspirations of the NCASEF Board members, from the imperative of efficient facility maintenance and the adoption of digital solutions, to the need for unity and collaboration among all 7-Eleven stakeholders.

2023 ISSUE 5 AVANTI 47

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Member News continued from page 13

new entrants like Aldi, has made private label products a strategic necessity for retailers. Furthermore, the shift in consumer attitudes towards generic products, largely influenced by younger generations and social media, is contributing to this trend. The rise in private label goods is most noticeable among consumers with incomes less than $100,000.

Escalating Retail Crime Cost Industry $112 Billion In 2022

Retail crime accounted for a staggering $112.1 billion in losses for the industry in 2022, up from $93.9 billion the previous year, according to the 2023 National Retail Security Survey by the National Retail Federation. The survey noted an increase in the average shrink rate to 1.6 percent, up from 1.4 percent in 2021. Of these losses, almost two-thirds (65 percent) were due to internal and external theft, while organized retail crime (ORC) contributed significantly due to its escalating levels of violence—67 percent of respondents observed increased violence from ORC perpetrators compared to last year. Retailers have been forced to implement drastic measures in response to the surge in crime. Approximately 28 percent have closed specific store locations, 45 percent have reduced operating hours, and 30 percent have altered their in-store product selection. Additionally, the rise in violence has led 41 percent of surveyed retailers to adopt a “hands-off ” approach to apprehending shoplifters, a slight increase from 38 percent last year. The range of products targeted by shoplifters has expanded to include not just high-value items, but also everyday products with quick resale capabilities like batteries and energy drinks. In a bid to counter these alarming trends, retailers are allocating more resources to loss prevention and security. About 34 percent have increased internal payroll

to support their risks, 46 percent have upped the use of third-party security, and more than half (53 percent) have raised their budgets for technology and software solutions. Policy reform initiatives, such as changing felony theft thresholds or cash bail rules, have had mixed results. Roughly 72 percent of retailers reported an increase in the average value of theft in localities that raised minimum felony thresholds, while 67 percent saw a rise in repeat offenders in areas that reduced or eliminated cash bail. Consequently, 93 percent are in favor of federal ORC legislation to combat these issues more effectively.

Debit Cards Still Dominate

Debit cards continue to be the most popular form of point-of-sale (POS) payment, despite a multitude of available payment options like credit cards, digital wallets, and buy now/pay later (BNPL) services, according to the inaugural J.D. Power U.S. Consumer POS Payment Program. The study found that 78 percent of consumers prefer using debit cards at the POS, followed by cash (74 percent), credit cards (66 percent), and digital wallets (36 percent). On average, consumers are using 4.1 different payment methods, with the reasons varying from ease of use to social status perception.

“Debit cards continue to be the most popular form of point-ofsale payment.”

seekers, budgeters, and minimalists—that payment brands can target for better market segmentation.

Consumer Splurging On Little Luxuries

Consumers are exhibiting a surprising resilience in spending on small luxuries despite broader economic uncertainty, reported Bloomberg. While high-ticket items like appliances and boats are seeing a decline in purchases, companies like Starbucks, Chipotle, and PepsiCo are witnessing strong sales in what might be considered affordable indulgences. For instance, Starbucks reported an increase in customer visits and spending, with people indulging in items like iced lattes and a new baked apple croissant. Similarly, Wingstop is experiencing a boom in business, suggesting that consumers are willing to spend on inexpensive goods as a form of self-reward. The trend extends beyond just food and beverages. The data reveals that American consumers are still willing to pay for small treats despite persistent inflation, supported by a strong labor market. However, uncertainties loom with rising interest rates, student-debt payments resuming, and potential geopolitical risks. Despite this, categories such as vacations, entertainment, and recreation are surging, with robust demand for flights and a notable increase in spending on travel and dining out.

Confectionery & Gum Sales Grow The study, encompassing evaluations of 30 top payment brands and 11 different payment methods, reveals a rapidly changing POS payment landscape. It highlights that 55 percent of consumers have used non-traditional payment methods like digital wallets and BNPL in the past 90 days. J.D. Power also identified six distinct consumer personas—experimenters, borrowers, rewards optimizers, security

Confectionery sales in traditional channels have crossed the $34 billion mark, showing a strong growth rate of 12.4 percent, even as the overall food and beverage industry experienced a growth decline to 7.3 percent, reported Candy & Snack Today, citing data from Circana. Convenience stores were the fastest-growing channel, recording $8.3 billion in sales—a 14.5 percent increase compared to the previous year. The chocolate sector alone accounted for 55 percent of continued on page 53

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Member News Legislative Update NLRB Changes Joint Employer Test, Affecting Franchisors The National Labor Relations Board (NLRB) recently revised its criteria for determining joint employer status, making it easier for multiple companies to be held accountable for labor law violations and to be obliged to negotiate with unions, reported Bloomberg Law. The new rule is particularly significant for franchisors and companies using contract labor. Unlike the Trump-era rule that required direct and immediate control over a worker’s primary job aspects for joint employment, the new test expands to include indirect

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and reserved control as a basis for such a determination. The NLRB’s Democratic majority formally repealed the Trump-era regulation, stating that its emphasis on “actual exercise of direct and immediate control” was an incorrect interpretation of the National Labor Relations Act. The new rule outlines seven “essential” employment terms and conditions, such as wages and scheduling, that will be examined to assess a potential joint employment relationship. Marvin Kaplan, the only Republican on the bipartisan NLRB, criticized the new rule, warning that it could be harmful to effective collective bargaining and the economy. The new criteria will be applied to cases filed

“THE NEW NLRB RULE IS PARTICULARLY SIGNIFICANT FOR FRANCHISORS AND COMPANIES USING CONTRACT LABOR.” after its December 26 effective date.

Extension Of Overtime Protections Proposed The U.S. Department of Labor recently announced a proposal aimed at extending overtime protections to 3.6 million lowpaid salaried workers. The proposed rule would guarantee overtime pay for workers

continued on page 56

United Franchise Owners of Florida FOA’s Successful 2nd Annual Trade Show The United Franchise Owners of Florida FOA’s 2nd Annual Trade Show—held on September 21, 2023 at the Holiday Inn Express in Cocoa, Florida—attracted over 125 attendees, a testament to its growing influence and reach within the franchise community. The trade show featured an impressive array of 56 booths, showcasing a wide range of products and services. This provided an excellent opportunity for franchisees to explore new vendors, network, and gain insights into the latest c-store trends and offerings.

A highlight of the event was the raffle prize giveaways, which included a total of $5,000 in cash prizes, as well as an additional $5,000 in gift prizes from various vendors. These giveaways not only added an element of excitement to the event, but also served as a token of appreciation for franchisees’ participation. The trade show was graced by the presence of special guests, adding prestige to the event. These included Casie Maggiacomo, the SEI Regional Director of Operations for Florida, Market Leader Tom Karlin,

SEI Manager of Franchise Support Jim Bayci, and NCASEF Chairman Sukhi Sandhu. A special thank you was extended to Alley Capatosto, the FOA’s vendor relations and event coordinator, whose efforts were instrumental in the seamless organization and success of the trade show. The United Franchise Owners of Florida FOA’s trade show not only served as a platform for business growth and networking, but also reinforced the strength and unity of the 7-Eleven franchise community in Florida.

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Member News

Seven-Eleven Japan has launched a new device called Vege-Check in several of its stores that allows customers to assess their vegetable and fruit intake levels, reported TrendWatching.com. The device uses reflection spectroscopy to measure carotenoid levels in the skin and provides a readout on a scale from 1 to 12, indicating the level of daily fruit and vegetable consumption. • McLane Company recently introduced McLane Fresh, a new foodservice at retail program aimed at elevating the food offerings in convenience stores. Revealed at its national trade show, the company said the initiative includes a variety of new brands and products aimed at making c-stores competitors to fast food and quick-service restaurants. • Costco has partnered with Sesame, a

direct-to-consumer healthcare marketplace, to offer online health checkups for as low as $29 to its members across all 50 states, reported CNN Business. The service is aimed primarily at uninsured Americans and those with high-deductible plans. • J.M. Smucker has acquired Hostess Brands, known for classic snacks like Twinkies and HoHos, in a cash-andstock deal valued at approximately $5.6 billion, which also includes about $900 million in net debt. • Amazon is testing drone deliveries for prescription medications, reported the Associated Press. Customers can receive their prescriptions within an hour of placing an order, with drones flying from a secure pharmacy-based delivery center to drop the package at their address. • Convenience chain

San Diego FOA Amplifies ‘Shop With A Cop’ Event

Casey’s General Stores recently announced a system-wide rollout of its Automated Voice Assistant (AVA), a conversational AI voice ordering system. The company said AVA warmly greets guests, consistently provides upsell suggestions, accurately takes and confirms orders, and connects with both Casey’s point-of-sale system and Casey’s Rewards. • Alimentation Couche-Tard is seeing high consumer adoption of its “Smart Checkout” technology, reported Convenience Store News. The company said about 40 percent of transactions are now processed through these self-checkout systems, which allow for faster and more efficient payments for a range of products, including packaged goods and fuel. • McDonald’s has announced plans to

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The San Diego FOA recently made a bighearted donation to the ‘Shop with a Cop’ program, a revered annual event established in 1994. This initiative, supported by local law enforcement, SeaWorld, Target, and STAR/PAL, is designed to create a joyful holiday season for children while fostering positive interactions with police officers. In total, the San Diego FOA contributed $7,500 to the event. This donation was bolstered by the enthusiastic fundraising efforts of San Diego franchisees. Renee Aon, who donated $1,300, and Harpreet (Happy) Singh who contributed $1,100. Pictured in the photo (from left to right): Sherry Liken, Asset Protection Specialist with 7-Eleven, Inc.; Officer Jorge Cruz of National City Police Department; Harpreet Singh, San Diego franchisee; Bic Sidhu, President, San Diego FOA; and Kendal Mcintosh, Market Manager.

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Member News continued from page 49

remove self-serve beverage stations from its U.S. restaurants by 2032, requiring customers to ask for drink refills at the counter, reported USA Today. • A new report from T. Rowe Price reveals that more retirees are rejoining the workforce, either out of financial necessity or the desire for social and emotional benefits. In 2021, 10 percent of retirees were looking for work; that number has now risen to 7 percent actively seeking employment and an additional 20 percent already working parttime or full-time. • Rite Aid recently filed for Chapter 11 bankruptcy, attributing its financial woes to mounting debt, dwindling sales, and over a thousand lawsuits accusing it of filling illegal opioid prescriptions, reported the New York Times. • Chicken prices in the U.S. have reached record highs, benefitting major producers like Tyson Foods while putting financial pressure on consumers who are already facing inflation, reported Reuters. This surge in prices is attributed to reduced poultry production and strong consumer demand. • According to a report from the Bureau of Labor Statistics, U.S. restaurant employment in September recovered to pre-pandemic levels for the first time in three-and-a-half years. The data showed that food service employment rose by 61,000 jobs that month and accounted for the majority of the 96,000 jobs added in the wider leisure and hospitality sector. • Walmart has introduced a subscription service that allows customers to schedule regular deliveries of groceries, paper products, and pet supplies, among other items, reported Winsight Grocery Business. The service appears to directly compete with Amazon’s Subscribe & Save program and is designed to streamline the shopping process for items that customers frequently purchase. • Pennsylvania-based convenience chain Wawa recently announced plans to expand into Ohio, Indiana, and Kentucky, with the first stores expected to open in 2025. The planned expansion includes opening 60 stores in Indiana, 40 in Kentucky, and 60 in Ohio over the next 8 to 10 years. • A recent Bank of America survey reveals that 73 percent of Gen Z consumers between 18 and 26 continued on page 57

total dollar sales, although its gains have started to slow down recently. Non-chocolate candy outperformed chocolate in both revenue and units, seeing a 15.6 percent increase in dollar gains. Within the confectionery market, chewy candy and novelty non-chocolate candies showed strong double-digit growth rates of 14.6 percent and 43.7 percent, respectively. Gum sales also saw a recovery, with dollar sales reaching $3.3 billion, an 18.6 percent increase year-over-year, led by sugar-free gum which accounted for 87 percent of dollar sales and a growth rate of 20.4 percent.

executives. Both companies revealed this plan while announcing their recent quarterly earnings. The wage increase is the result of a compromise between California’s restaurant industry and labor groups. The parties have agreed to establish a nineperson council with the authority to set the pay floor for fast-food workers in the state through 2029. This change comes after a period of rising food and labor costs, with data from the U.S. Bureau of Labor Statistics indicating that prices for food away from home increased by 6 percent in September compared to last year. While McDonald’s plans to improve productivity to mitigate “Confectionery sales in traditional labor costs, Chipotle, which owns most of its locations, expects channels have crossed the $34 customers to bear the brunt of the billion mark, showing a strong hikes. McDonald’s believes the wage increase could eventually boost its growth rate of 12.4 percent.” market share in California.

California Fast-Food Wage Hike Leads To Menu Price Increase

McDonald’s and Chipotle Mexican Grill are set to raise menu prices in California as the state boosts the minimum wage for fast-food workers to $20 an hour beginning in April, reported CNBC. McDonald’s has yet to decide the extent of the price hike, while Chipotle is considering a “mid-to-high single-digit” percentage increase, according to their respective

Universities Build Their Own Autonomous C-Stores

Two universities—Mercer University and the University of Denver—have successfully implemented autonomous, unmanned convenience stores on their

“Mercer University and the University of Denver have successfully implemented autonomous, unmanned c-stores on their campuses.” campuses, reported Campus ID News. Students use their campus ID, mobile credential, or a dedicated mobile app continued on page 54

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to enter these stores and self-checkout, eliminating the need for staff interaction. In the past year, Mercer’s 12 unmanned stores generated $180,000 in commissions without additional labor costs, compared to the $71,000 earned by three traditional, staffed stores in the prior year. At the University of Denver, the automated stores are described as being “90 percent of a 7-Eleven,” further signifying the success and functionality of these autonomous markets.

Seven & I Sells Sogo & Seibu

Seven & i Holdings Co. recently sold its department store chain Sogo & Seibu to U.S.-based Fortress Investment Group, reported ABC News. The deal, completed on September 1, is valued at approximately 220 billion yen ($1.5 billion). Nearly 92 billion yen ($630 million) of Sogo & Seibu’s interestbearing debt was forgiven by Seven & i as part of the transaction. The announcement of the sale came as 900 Sogo & Seibu workers went on strike, a rare event in Japan. The deal was initially announced last November, but was delayed due to opposition. Seven & i said it plans to focus on strengthening its convenience and food store sectors as it reshapes its business.

High-Quality Foodservice Drives C-Store Visits

A new study by Acosta Group reveals that high-quality foodservice options are a significant driver for increased trips and sales in convenience stores. According to the study, 52 percent of c-store shoppers are making weekly visits, and almost 30 percent are visiting more frequently than they did last year. The main purpose of these trips, for 92 percent of shoppers, is food and drink purchases, particularly in-store prepared food, which saw a sales growth of over 20 percent from 2021 to 2022, amounting to nearly $260 million, according to Convenience Store News, 2023. The study further dissects customer 54

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“High-quality foodservice options are a significant driver for increased trips and sales in convenience stores.” behaviors, categorizing blue-collar professionals and Millennials as two significant segments. Blue-collar professionals make up 23 percent of daily c-store shoppers, mainly grabbing snacks and meals during work hours, while Millennials are frequent evening shoppers with 85 percent using retailers’ apps. Both groups are significant contributors to the sales of snacks, candy, baked goods, and refrigerated beverages, along with other non-food items. The Acosta Group emphasizes the need for effective promotion strategies, highlighting that 48 percent of c-store shoppers are engaged through retailers’ apps, a figure that spikes to 85 percent for Millennials. For customer engagement, instore and external signage, along with loyalty and app programs, are deemed crucial. The study suggests that focusing on in-store food offerings, both pre-packaged and prepared, will be vital for ongoing channel sales.

Dollar Stores Surge, C-Stores Lag In Sales

Dollar stores have seen a robust 17 percent increase in sales compared to last year, along with a similar rise in customer visits, according to a recent update from Numerator’s Shopping Behavior Index. Restaurants and club stores also saw moderate sales increases of 13 percent and 4 percent, respectively. On the contrary, gas and convenience stores experienced the most significant sales decline, dropping by 19 percent. Consumer behavior shows fluctuations across various retail channels. While nearly all sectors are experiencing higher spend per unit, online channels saw a 15 percent decrease as shoppers opted for

higher volumes of lower-priced items. Sales of Consumer Packaged Goods remained slightly above the levels of last year, increasing by 4 percent. However, the baby sector was the lone category to witness a decline in recent weeks, dropping by 8 percent. Sales across all general merchandise categories are down, particularly in electronics and toys, which plummeted by 18 percent and 20 percent, respectively.

Golden Pantry Launches Autonomous C-Store

Golden Pantry Food Stores has teamed up with Juxta to open Georgia’s first autonomous convenience store, called the Juxta Nomad, reported Convenience Store News. Located at Wire Park in Watkinsville, a mixed-use development comprising apartments, offices, restaurants, and other amenities, the store will utilize AI and advanced sensors to offer a cashierless shopping experience. Customers can pay via traditional debit, credit cards or mobile wallets, and the AI computer vision system will add items to their basket in real-time, allowing for a seamless checkout process. The autonomous retail concept is particularly geared towards the expanding electric vehicle (EV) charging sector. The Juxta Nomad can be set up and operational within 12 hours, and is designed to offer fast, convenient service to customers waiting for their vehicles to charge. The fully autonomous nature of the store eliminates the need for on-site staff, thus maximizing available space for stock. According to Juxta, one employee should be able to maintain eight to 12 such stores daily. The concept

“Golden Pantry Food Stores recently opened Georgia’s first autonomous convenience store, called the Juxta Nomad.” continued on page 57

NACS Show Attracts 7-Eleven Franchisees From Across The Nation 7-Eleven franchisees and NCASEF Board members recently converged on the Georgia World Congress Center in Atlanta, Georgia for the NACS Show, which took place from October 3-6. The event was both a trade show and an educational hub, delivering high-value seminars led by c-store industry experts. Attendees gained invaluable insights that are expected to significantly influence best practices and innovation within their respective stores.

The event’s two-and-a-half-day trade show boasted an impressive roster of more than 1,200 exhibitors. This provided an excellent platform for attendees to discover the latest products, services, and technologies destined to reshape the convenience store landscape. Overall, the NACS Show served as a remarkable experience for professional growth and networking.

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Member News Legislative Update

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earning less than $1,059 per week or approximately $55,000 per year. This comes as part of the Biden-Harris administration’s efforts to restore economic security to workers and follows months of stakeholder outreach including 27 listening sessions with over 2,000 participants. The proposed rule has several key components. First, it aims to restore and extend overtime protections, specifically targeting low-paid salaried employees who are currently not entitled to time-and-ahalf for hours worked over 40 in a week. Secondly, it intends to give non-exempt executive, administrative, or professional employees either more time with their families or additional compensation for working beyond a 40-hour week. Finally, it proposes an automatic update to the

salary threshold every three years, based on current earnings data. In addition to mainland U.S. workers, the proposed rule also aims to restore overtime protections in U.S. territories where the federal minimum wage is applicable.

California Raises Minimum Wage For Fast Food Workers California Governor Gavin Newsom recently signed a new law that will raise the minimum wage for fast food workers to $20 per hour, effective April 1, 2024, reported the Associated Press. This will make California’s fast food worker minimum wage one of the highest in the United States. The law comes

after negotiations between labor unions and business groups, with unions dropping their bid to hold fast food corporations liable for the actions of their independent franchise operators in the state. The current state minimum wage is $15.50 per hour for all other workers. The law also establishes a fast food council with the authority to increase the minimum wage annually through 2029, capped at either 3.5 percent or the change in the U.S. Consumer Price Index for urban wage earners and clerical workers, whichever is lower. The wage increase is especially significant given that most fast food workers in California are over 18 and serve as the main providers for their families. On average, fast food workers in the state currently earn $16.60 per hour, which falls

San Diego FOA Hosts Yearly Safety Meeting The San Diego FOA held its annual Safety/General Meeting on September 13th, at Dave & Buster’s Function Room in San Diego. This year’s meeting was especially significant, focusing on a range of critical topics pertaining to safety and operational standards in 7-Eleven stores. John Barbot from Barbot Insurance Services led the presentations, delving into various crucial aspects of insurance and safety. The topics covered included claim scenarios for workers’ compensation, drive-offs, and what all clerks should know about robberies. Additionally, the meeting addressed the 7-Eleven Corporate Insurance Mandate, highlighting the importance of adhering to corporate standards. The State of the Insurance Marketplace was another key area of discussion, offering insights into current trends and future projections that could impact store operations and financial planning. The event also featured guest speakers from leading industry brands. Mike Pineiro and Tristen Teague from Monster Energy/Bang, Kevin Custeau from Coca-Cola, Sean Robinson and Myrna Quezada from Congo, and Justin Ratte from Anheuser Busch added depth to the discussions. The San Diego FOA’s Safety Meeting was not only informative, but also crucial in ensuring that franchisees stay updated on best practices, safety standards, and regulatory compliance. 56

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offers multiple benefits not just for the EV charging stations, but also has the potential to be deployed in locations like hospital parking lots, festivals, and college campuses.

Couche-Tard Grows Revenue

Circle K parent company Alimentation Couche-Tard recently reported its firstquarter results for fiscal year 2024, showing net earnings of $834.1 million, a slight decrease compared to $872.4 million in the first quarter of the previous year. Despite the dip in net earnings, the company experienced a 5.0 percent increase in total merchandise and service revenues, reaching $4.3 billion, and saw growth in same-store merchandise revenues across multiple regions—up by 2.1 percent in the United States, by 2.7 percent in Europe and other regions, and by 6.4 percent in Canada. Merchandise and service gross margin increased by 0.4 percent in the United States to 34.3 percent, by 1.0 percent in Europe and other regions to 39.9 percent, and by 0.8 percent in Canada to 33.9 percent, all impacted favorably by a change in product mix. Same-store road transportation fuel volumes increased by 0.7 percent in the United States, by 7.2 percent in Canada, and decreased by 1.5 percent in Europe and other regions.

Amazon Trials Humanoid Robots

Amazon is testing a new humanoid robot, Digit, in its U.S. warehouses as part of its ongoing efforts to automate operations, reported BBC News. The company said the move aims to free employees for more customer-focused tasks. Despite concerns from labor unions about automation leading to job losses, Amazon insists that its robotics initiatives have created “hundreds of thousands of new jobs,” including 700 new categories of skilled roles that didn’t exist within the company before. Digit, unlike previous Amazon robots, has legs and arms, enabling it to handle tasks such as moving packages and navigating stairs. While the robot is still in the prototype stage, Amazon is optimistic that it can safely collaborate with human employees. The company already employs over 750,000 robots for repetitive tasks and denies the possibility of fully automated warehouses in the future.

“Amazon is testing a new humanoid robot in its U.S. warehouses as part of its efforts to automate operations.”

Installment Payments For Groceries On The Rise

Of the 60 percent of consumers who have used some form of installment payment in the past year, 34 percent applied it to grocery purchases, driven by economic challenges like inflation and cuts to federal assistance programs such as SNAP, reveals a new study by PYMNTS and Splitit. The report states that these installment plans offer flexibility, allowing consumers to better manage their spending and credit. Moreover, major companies like Apple and PayPal, as well as credit card companies like Chase and American Express, are incorporating “buy now, pay later” services to meet this consumer demand. Bridge millennials and millennials are leading the charge in the usage of installment payment methods, with 73 percent and 72 percent respectively taking advantage of these plans in the last year. While these plans offer immediate liquidity and little to no additional cost, 37 percent of consumers who have not utilized installment plans cite concerns over potential overspending. As the holiday season approaches, these economic constraints are expected to make choices at the grocery store counter even more challenging for consumers. continued on page 58

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years of age have altered their lifestyles due to rising prices caused by persistent inflation. Among these changes, 43 percent have started cooking at home to avoid dining out, 40 percent reduced spending on clothes, and 33 percent limited their grocery shopping to essential items. • Amazon and Target plan to

hire thousands of workers as part of their annual hiring sprees as retailers prepare for the busy holiday shopping season, reported the Wall Street Journal. Amazon said it will hire 250,000 full-time, part-time and seasonal workers, with some receiving $1,000 to $3,000 bonuses. Target is enlisting nearly

100,000 seasonal workers for stores and fulfillment facilities. • California Governor Gavin Newsom recently vetoed legislation that would have required human drivers to be onboard self-driving trucks weighing over 10,000 pounds, reported the Associated Press. The veto comes despite support for the continued on page 58

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Member News continued from page 57

Walmart Reduces Starting Pay For New Hourly Workers

Walmart, the largest private employer in the U.S., has lowered the starting pay for some new hourly workers as of midJuly, reported the Wall Street Journal. The change means that most new hires will earn the lowest possible hourly wage that a store offers. Previously, new hires in certain roles like those collecting items for online orders earned slightly more than other roles such as cashiers. Despite the adjustment, Walmart’s minimum hourly wage remains at $14, varying by region, and current workers are not facing pay cuts. The retailer claims the revised pay structure allows for more staffing flexibility, enabling workers to switch between work groups like food, registers, stocking, or digital fulfillment without affecting their pay. According to Walmart, this restructuring is

“Walmart has lowered the starting pay for some new hourly workers, meaning new hires will earn the lowest possible hourly wage that a store offers.” designed to help workers learn new skills and advance within the company. Over 50,000 workers received raises because their pay was previously below the new

minimums. The move comes as the U.S. job market cools and businesses become more cautious in hiring. Walmart has also been looking for other ways to cut labor costs, including the expansion of self-checkout systems and automating warehouses

Seven & i Holdings Reports Profit Decline

Seven & i Holdings, the owner of 7-Eleven, reported a significant decline in its first-half net profit, largely due to the weak performance of its 7-Eleven stores overseas and special losses related to the sale of its Sogo & Seibu department-store business, reported Dow Jones Newswires. Net profit for the company fell by 41 percent year-over-year to 80.23 billion yen ($537.8 million), with the first-half operating profit for its overseas convenience store business falling 2.4 percent. Despite a 9.3 percent increase in the domestic convenience store business’s operating profit, the company continues to expect an 18 percent drop in net profit for the fiscal year ending February 2024.

ValueAct Capital Exits Stake in Seven & i

U.S. activist fund ValueAct Capital seems to have divested its stake in Seven & i Holdings, the parent company of 7-Eleven, by the end of August, reported Jiji Press.

The fund was not listed among the major shareholders in a quarterly report released by Seven & i. ValueAct Capital, which previously held a 1.89 percent stake or 16.76 million shares, had pressured the company to shed its loss-making supermarket operations and concentrate on its core convenience store business.

Domino’s & Microsoft Partner For AI-Driven Pizza Experience

Domino’s Pizza announced it is collaborating with Microsoft to leverage generative AI technology and cloud computing for improving both pizza ordering and store operations. The partnership will use Microsoft’s Cloud and Azure OpenAI Service to personalize and simplify the pizza ordering experience for consumers. On the operational side, an AI assistant is in the early stages of development to assist store managers with tasks like inventory management and staff scheduling. Domino’s said the collaboration aims to not only enhance customer experience, but also make store operations more efficient and reliable. Plans are also in place for an Innovation lab to accelerate smart store and ordering technologies while adhering to responsible AI practices. Domino’s anticipates piloting these AIpowered solutions within the coming months.

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bill from union leaders and truck drivers, who argued that it would save jobs and enhance road safety. • Chevron Corporation recently announced that it has entered into a definitive agreement to acquire all outstanding

shares of Hess Corporation in an all-stock transaction valued at $53 billion, bringing the total enterprise value to $60 billion including debt. • Walmart has observed a change in food-shopping patterns among customers

taking appetite-suppressing diabetes medications like Ozempic and Wegovy— namely, a slight reduction in overall shopping basket sizes, reported Bloomberg. The retail giant is studying these shifts in sales using continued from page 61

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below the California Poverty Measure for a family of four.

“THE GOVERNOR OF CALIFORNIA RECENTLY SIGNED A NEW LAW THAT WILL RAISE THE MINIMUM WAGE FOR FAST FOOD WORKERS TO $20 PER HOUR, EFFECTIVE APRIL 1, 2024.” FDA Sends Menthol Cigarette Ban Rules To White House The Food and Drug Administration (FDA) recently sent its final rules banning menthol-flavored traditional cigarettes and flavored cigars to the Biden administration for review, reported the Winston-Salem Journal. The move comes 2½ months later than initially planned and aims to have the ban effective by May 2023. While the FDA is

Legislative Update pushing forward with its regulations it faces multiple hurdles, including Republicansponsored legislation in the House of Representatives that could derail the initiatives. Industry analysts suggest it might take until 2026 for any such FDA ban to be implemented due to likely court challenges. Furthermore, menthol cigarettes make up a substantial portion of cigarette sales, and analysts believe that a ban could negatively affect tobacco stocks of companies with a significant U.S. presence.

California Bans Four Food Additives California has become the first state in the U.S. to ban red dye No. 3 and three other potentially harmful chemicals often found in food and beverages, reported CNN Health. Governor Gavin Newsom recently signed the California Food Safety Act, which makes it illegal to manufacture, sell, or distribute food products in the state containing red dye No. 3, potassium

bromate, brominated vegetable oil, or propylparaben. These additives are found in numerous consumer products, including popular candies, drinks, and baked goods. Potassium bromate helps dough rise, brominated vegetable oil emulsifies flavors in beverages, and propylparabens are used for antimicrobial food preservation. The law, which won’t take effect until 2027, aims to align the U.S. more closely with European Union standards, where these chemicals are already banned due to their associated health risks, such as increased cancer risk and damage to the immune system. Governor Newsom emphasized that the delay in implementation will give brands ample time to revise their recipes. The National Confectioners Association criticized the move, saying it could create consumer confusion and undermine confidence in food safety. Due to California’s large economy, the new law is likely to influence food production nationwide, according to Consumer Reports.

Joe Saraceno FOA Supports Local Children’s Hospital Members of the Joe Saraceno FOA made a heartfelt visit to Children’s Hospital Los Angeles on October 11. Joined by 7-Eleven Market Leader David George and Area Leaders La Nita Thomson and Rochelle Ayoub, they presented a generous donation of over $5,000, raised through individual contributions from FOA Board members and the FOA’s general fund.

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Member News

‘Brands With Heart’ Participants Announced

SEI has chosen nearly 50 innovative brands for its fifth annual Brands with Heart program. This initiative aims to introduce emerging brands to a new retail platform, providing an opportunity for them to feature their products across 7-Eleven, Speedway, and Stripes stores in the U.S. Selected participants were invited to the 7-Eleven Store Support Center in Irving, Texas, for a showcase event in early November, where they presented their products, received mentoring from 7-Eleven leadership, and engaged in educational sessions aimed at fostering their growth within and beyond 7-Eleven stores. A select few will proceed to an in-store test phase across participating locations. The 2023 group of Brands with Heart notably consists of brands that demonstrate purpose-driven attributes, aligning with 7-Eleven’s commitment to supporting people, the planet, and the communities they serve. All 49 selected

brands embody elements that contribute positively to these pillars. 7-Eleven intends to simplify the process for its employees, franchisees, suppliers, partners, and customers to make meaningful differences for the planet and communities, with a future focus on spotlighting exceptional brands dedicated to making a positive global impact.

SEI Launches Cleat Crew Program To Benefit CMN Hospitals

SEI recently announced that 7-Eleven and Speedway have partnered with designer The Shoe Surgeon and nine of college football’s biggest athletes to create a series of custom cleats as part of the retailer’s firstever Cleat Crew program. Each unique pair of cleats will be auctioned off to fans during the 2023 college football season, with proceeds benefiting Children’s Miracle Network Hospitals and each player’s local member children’s hospital. Plus, hundreds of fans will have the chance to win their own limited-edition kicks designed by The

Texas FOA Donates To Swim Across America The Texas FOA generously donated $10,000 to Swim Across America recently, marking their 13th year of continued support of the organization. The funds were raised at their annual charity golf tournament in June, and to date, the Texas FOA has contributed over $200,000 to SAA. Special thanks go out to vendor partners for making this annual giving possible.

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Shoe Surgeon via a 7Rewards and Speedy Rewards sweepstakes.

G.O.A.T. Fuel Unveils Exclusive 7-Eleven Flavor

G.O.A.T. Fuel, an energy drink brand co-founded by Pro Football Hall of Famer Jerry Rice, recently announced a partnership with 7-Eleven to exclusively carry its new Snow Cone flavor. The flavor is a part of G.O.A.T. Fuel’s Season 3 lineup and is available in 7-Eleven stores in select states as of October. According to a press release, this exclusive flavor will be available in 7-Eleven stores in Florida, Texas, California, Colorado, and Nevada. The partnership aims to capitalize on the fast-growing popularity of G.O.A.T. Fuel, which is known for its health-focused ingredients like cordyceps mushrooms and natural caffeine. The energy drink is already available in around 15,000 retail locations, including 7-Eleven, and is also the Official Energy Drink of the Los Angeles Lakers. Both companies continued on next page

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anonymized data. • C-store chain Rutter’s recently agreed to pay $1 million as part of a settlement with the Pennsylvania Attorney General’s office over cybersecurity attacks that compromised more than one million customer payment cards, reported the Patriot-News. In addition to the financial penalty, the settlement requires Rutter’s to improve its security measures. • Only 6 percent of private-sector employees in 2022 were members of unions, according to the Bureau of Labor Statistics. • Target recently closed nine stores

in major cities such as New York City, Seattle, San Francisco-Oakland, and Portland, due to ongoing issues with violence, theft, and organized retail crime, reported CNBC. This move was significant as Target became one of the few retailers to explicitly blame store closures on retail crime. • Ferrara Candy Company has announced a definitive agreement to acquire Jelly Belly Candy Company through its lead holding company, CTH Invest. The acquisition will merge Jelly Belly’s extensive range of over 100 jelly bean flavors and other specialty

confections with Ferrara’s wide portfolio of sugar candies, including popular brands like NERDS and Trolli. • Altria Group’s e-cigarette brand NJOY recently filed a lawsuit against 34 companies for manufacturing and selling e-vapor products that allegedly violate California’s flavor ban law and “illegally compete” with compliant companies, reported Reuters. The lawsuit seeks a nationwide injunction against the import, marketing, and sale of these products, as well as compensatory and punitive damages

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are excited about this collaboration, with future plans to potentially take the partnership nationwide.

Ja’Marr Chase Announces 7-Eleven Partnership

Cincinnati Bengals wide receiver Ja’Marr Chase has entered into a quick partnership with 7-Eleven, following his standout performance in a game against Seattle on October 15, reported Sports Illustrated. Chase indicated that a commercial might be in the pipeline as 7-Eleven looks to capitalize on his rising fame in the sports world. “Shout out 7-Eleven,” Chase said, confirming that the collaboration began almost spontaneously and hinting at upcoming promotional activities.

Seven & i Holds First Investor Day

Seven & i Holdings plans to repurchase shares worth ¥200 billion ($1.3 billion) through fiscal 2025, marking its first buyback in 13 years, reported Bloomberg News. This decision comes after a tense

engagement with activist shareholders earlier in the year, who had attempted to displace CEO Ryuichi Isaka. In an effort to bolster investor confidence, the company conducted its inaugural investor day, bringing together executives from its global 7-Eleven convenience stores and banking businesses to address concerns post the contention with ValueAct Capital Management LP regarding the company’s future business strategy.

7-Eleven In Yokohama Becomes Craft Beer Hotspot

A 7-Eleven store in Yokohama, Japan, has gained viral attention for its extensive selection of craft beers from around the world, breaking away from the usual uniformity seen in Japanese convenience stores, reported Nikkei Asia. Located in the oceanside Yokohama Hammerhead commercial complex, the store was initially targeted at international tourists but struggled with low footfall. Owner Keitaro Nakayama decided to pivot to craft

beers, which now account for one-third of the store’s sales and have attracted beer enthusiasts nationwide. The store’s success has tapped into the growing popularity of craft beer in Japan, which is expected to make up 4% of the beer market by 2027, according to Kirin Brewery.

7-Eleven Makes Its Debut in Laos

CP ALL Laos, a Master Franchisee of 7-Eleven International, opened its first store in Vientiane, Laos, marking 7-Eleven’s expansion into its 20th country. The store offers the brand’s standard retail environment and internationally-popular items, including Slurpees and Big Gulps, and plans to introduce local Laotian meals. With Vientiane experiencing significant economic growth and a surge in tourism, partly due to the Laos-China Railway, 7-Eleven’s entry is well-timed to capitalize on the market conditions. CP ALL Laos aims to expand further in the country, beginning with the Vientiane metropolitan area.

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New PepsiCo Xbox Promo Will Excite Gen Zers & Millennials Mountain Dew has leveled up its gaming program by joining forces with Rockstar and Doritos on an epic program and partnership with Xbox. Consumers can buy participating Dew, Doritos, and Rockstar products and unlock free Xbox Game Pass Ultimate + points to earn gaming rewards (controllers, consoles, in-game content, etc.).* Additionally, the promotion will excite both Gen Z and PepsiCo’s new Xbox promo Millennials by launching two Game features two LTO flavors— Fuel Limited-Time-Only flavors Mtn Dew Game Fuel Citrus that will be included in the Xbox Cherry and Mtn Dew Game program: Mtn Dew Game Fuel Fuel Mystic Punch. Citrus Cherry and Mtn Dew Game Fuel Mystic Punch. The products will feature breakthrough gaming graphics plus increased points value compared to the core items.

packed with Monster Energy’s blend, this might just be the best tasting Ultra yet! Launching February 12, 2024 in both 12oz and 16oz cans.

Introducing New Glazed Twinkies Bouncers Hostess has recently unveiled new Glazed Twinkies Bouncers— poppable, bite-sized cakes featuring delicious crème filling, baked with real ingredients, and containing no high fructose corn syrup. It’s the perfect on-the-go sweet treat to fulfill a snacking occasion at any time of the day. Sweet Baked Goods is a large and frequently purchased category, growing +9.3 percent latest 26 weeks. Hostess is the category leader and is a highly recognizable brand with a loyal customer base. Consumers are drawn to the nostalgia of Hostess items like Donettes, Twinkies, and Cup Cakes. Glazed Twinkies Bouncers have a guaranteed 21-day shelf life to stores, and the product is date coded upon arrival from the DC. SLIN is 179499.

Satisfy your customers’ snack cravings with new Glazed Twinkies Bouncers.

*Unlocking Xbox Game Pass Ultimate is only for new users; Diablo IV not available on Xbox Game Pass Ultimate.

Make Room For Monster Energy Ultra Fantasy Ruby Red Not too sweet, not too tart, Ultra Fantasy Ruby Red has a pink pamplemousse flavor that’s light, citrusy and easy drinking. Zero-Sugar and

Join The Club & Crisp Up Your Snack Sales Rev up your snack game with Kellogg’s Club Crisps: a savory snack that’s buttery, light, and baked to perfection. These palate-

Monster Energy Ultra Fantasy Ruby Red is the latest taste creation of the hugely popular energy drink.

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pleasers are available in a convenient NEW 2-oz. size—as a first-to-market exclusive for 7-Eleven franchisees! There are so many reasons to love Club Crisps. They’re rolled thin, giving them a light crunch followed by a satisfying, melt-in-your-mouth sensation. These crisps have no artificial colors Kellogg’s Club Crisps are a first-toor flavors and 0g trans fat. market exclusive for 7-Eleven franchisees And they’re versatile: great and are on promo for 2 for $4. as a standalone snack on the go, the perfect addition to lunch, or a complement to your favorite comfort food. Two ultrapopular flavors, Sea Salt and Ranch, give them a broad, crave-worthy appeal. Boost your snack sales while meeting the demand for savory tastes with Club Crisps. Don’t miss out on the current 2 for $4 promotion, which on January 9. Stock up today!

Good-For-You Musco Family Pearls Olives To Go Cups America’s favorite olive just got easier than ever to enjoy. Musco Family Pearls Increase your incremental lunch and snack Olives to Go are delicious California- sales with Musco Family Pearls Olives to Go grown Large Pitted cups. Black Ripe Olives or tasty green Pimiento Stuffed Manzanilla Olives that are perfect for your customer’s lunchboxes, car cup holders, gym bags, and desk drawers, as well as great for afterschool or an after-sports group snack. Always ready-to-go in single-serve, liquid-free, easy-to-open cups, they are a great choice for a tasty wholesome savory snack or an incremental add on to lunchtime sandwiches and salads. With less calories than chips, help your customers pick a savory option that’s better for them, no mess, in a convenient on the go cup; and totally delicious.

Texas FOA Has Productive Meeting With McLane On October 3, Texas FOA franchisees gathered with members of SEI’s Operations and Logistic teams, as well as United Zone representatives, to meet with McLane North Texas upper management. The group of 7-Eleven partners were given a tour of McLane’s operations, and

discussed issues and concerns with McLane leadership. “It was a very productive meeting and we’re hoping for great collaboration with McLane moving forward,” said Texas FOA President Raj Singh.

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San Diego FOA Christmas Party

San Fran/Monterey Bay FOA Annual Trade Show

Midwest FOA Chicago Spring Show

Southern California FOA 2024 Golf Tournament

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

Venue TBD April 3, 2024 Phone: 408-203-1039

Venue TBD April 18, 2024 Phone: 847-971-9457

Nor-Cal United FOAs (Central Valley FOA/ Greater Bay FOA/ Northern California FOA/ Sacramento Valley FOA) Trade Show

Texas FOA Annual Trade Show

Pacific Palm Resorts City Of Industry, California May 1, 2024 Phone: 818-357-5985

San Francisco/ Monterey Bay FOA Holiday Party Delta Hotels by Marriott Santa Clara, California December 16, 2023 Phone: 408-203-1039

Michigan FOA Trade Show Venue TBD March 6, 2024 Phone: 517-219-5288

United Franchise Owners Of Florida FOA Table Top Show For New Products Holiday Inn Express Cocoa, Florida March 28, 2024 Phone: 407-683-2692

Venue TBD Napa, California April 17, 2024 Phone: 707-344-6287

Nor-Cal United FOAs (Central Valley FOA/ Greater Bay FOA/ Northern California FOA/ Sacramento Valley FOA) Charity Golf Venue TBD Napa, California April 17, 2024 Phone: 707-344-6287

Four Points by Sheraton Dallas Fort Worth Airport Coppell, Texas April 24, 2024 Phone: 214-208-0992

Southern California FOA 2024 Trade Show Pasadena Convention Center Pasadena, California May 2, 2024 Phone: 818-357-5985

Texas FOA Charity Golf Tournament

Eastern Virginia FOA Annual Golf Event

Cowboys Golf Club Grapevine, Texas April 25, 2024 Phone: 214-208-0992

Venue TBD May 22, 2024 Phone: 757-506-5926

Suburban Washington FOA TriState Trade Show Venue TBD April 24, 2024 Phone: 301-580-0305

Eastern Virginia FOA Virginia Beach Trade Show Venue TBD May 23, 2024 Phone: 757-506-5926

Suburban Washington FOA TriState Charity Event Venue TBD April 25, 2024 Phone: 301-580-0305

AD INDEX 22 Century Group ....................22

Glanbia.......................................18

PepsiCo - Beverage.....................5

Anheuser-Busch........................68

Heineken..............................26, 50

PepsiCo - Quaker......................33

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

Hostess........................................67

Perfetti Van Melle........................3

Bic USA......................................24

InComm.....................................20

Swedish Match (ZYN)..............30

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

Kellogg’s........................................4

Swisher Sweets...........................40

Constellation Brands..........34, 35

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

Total Product Events.................64

Danone...................................8, 28

Mondelez....................................16

Vita Coco....................................32

Diageo.........................................38

Monster.........................................7

Dreyers Ice Cream....................55

Musco Family Olive Co............48 2023 ISSUE 5 AVANTI 65

NCASEF BO AR D MEETINGS NCASEF 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.

National Coalition Affiliate Meeting The Westin Dallas Stonebriar Golf Resort & Spa Frisco, Texas February 27-28, 2024

National Coalition Board Of Directors Meeting

The Westin Dallas Stonebriar Golf Resort & Spa Frisco, Texas February 29-March 1, 2024

Gaylord Palms Resort & Convention Center Kissimmee, Florida July 16, 2024

National Coalition Affiliate Meeting The Grand America Hotel Salt Lake City, Utah April 23-24, 2024

National Coalition Board Of Directors Meeting The Grand America Hotel Salt Lake City, Utah April 25-26, 2024

NCASEF 48th Annual Convention & Trade Show Gaylord Palms Resort & Convention Center Kissimmee, Florida July 17-19, 2024

National Coalition Affiliate Meeting King Kamehameha’s Kona Beach Hotel Kailua Kona, Hawaii November 12-13, 2024

National Coalition Board Of Directors Meeting King Kamehameha’s Kona Beach Hotel Kailua Kona, Hawaii November 14-15, 2024

FOA EVENTS United Franchise Owners Of Florida FOA Holiday Party

continued on page 65

Rocky Mountain FOA Holiday Party

Holiday Inn Express Cocoa, Florida December 1, 2023 Phone: 407-683-2692

Gaylord Rockies Resort & Convention Center Aurora, Colorado December 2, 2023 Phone: 818-448-1348

Eastern Virginia FOA Holiday Party

Southern California FOA Holiday Party

Hilton Garden Inn Suffolk Riverfront Suffolk, Virginia December 1, 2023 Phone: 757-506-5926 66

AVANTI 2023 ISSUE 5

Venue TBD December 2, 2023 Phone: 818-357-5985

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

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

Nor-Cal United FOAs (Central Valley FOA/ Greater Bay FOA/ Northern California FOA/ Sacramento Valley FOA) Holiday Party Four Points By Sheraton Sacramento Int’l Airport Sacramento, California December 9, 2023 Phone: 707-344-6287

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.

5 #2 #1 #

STELLA ARTOIS® IS THE #5 PREMIUM BRAND AT 7E IN $ SALES LARGEST $ SALES PACK IS THE 12/12 BTL WITH $5M YTD

$APSD STELLA ARTOIS® PACKAGE - 12/12 CN HAS GROWN BY 3.9% YTD

+21.3%

STELLA ARTOIS® 25 OZ. CAN IS UP 21.3% IN SALES AND UP 16.7% IN UNIT SALES YTD

#1 SELLING STELLA ARTOIS® PACK IS THE 6/12 BTL WITH $5.5M YTD – GROWING $APSD VS ‘22 Source: Total 7-Eleven and Speedway YTD WE 9/3/2023

25 oz. can SLIN# 102613

6pk bottles SLIN# 100255

12pk bottles SLIN# 102172

12pk cans SLIN# 103445