Avanti Issue 6 2023 by Avanti Magazine

2023 ISSUE 6

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A New Paradigm Fostering A Culture Of Collaboration & Cooperation Our Journey So Far A Farewell Note FTC Poised To Issue Sweeping Regulation Of Online Reviews Keys To Managing Multiple 7-Eleven Units Efficiently Building A Proactive Partnership With Local Officials HI-CHEW’s Sweet Success An Overview Of Workers’ Compensation Insurance

The Fourth Quarter Affiliate Member & Board Of Directors Meeting Recap Page 40

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Navig ating An Evolv ing Retail Lands cape

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U n it y In Gasoline In 2023 Strategies To Beat Inflation In The Retail Industry Keep Calm And Franchise On The Homeless Problem Is Impacting Our Stores

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The Vital Role Of Our NCASEF Committees The Power Of Respectful Dialogue

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The Affiliate Member Directory Page 41

Second Quar ter 2023 Affiliate & Boar d Of Director s Meeting Sum mary Page 44

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THE VOICE OF 7-ELEVEN FRANCHISEES

Contents

United Franchise Owners Of Florida’s Merry Holiday Gathering

Sweet Success: 19 AHI-CHEW’s Tale Of Growth And Innovation At 7-Eleven

Detroit FOA Trade Show & Holiday Banquet Dazzles

Collaboration & Partnership At The Fourth Quarter NCASEF Board Meeting

By Raymond Gates—National Sales Manager, Morinaga America

Special Thanks To Our Tabletop 21 Our Journey So Far 44 ATrade Show Exhibiting Vendors By Sukhi Sandhu, NCASEF Chairman

For A Cause— 25 A Farewell Note 46 Swinging The NCASEF Charity Golf Tournament By Joe Rossi, NCASEF Executive Vice Chair

FTC Poised To Issue Sweeping Regulation A Night Of Celebration & Charity At 27 Of Online Reviews 50 Metro New Jersey FOA’s Holiday Party By Eric Karp, Esq., General Counsel To NCASEF

Keys To Managing Multiple 7-Eleven Units Efficiently By Teeto Shirajee, NCASEF Vice Chairman

San Diego FOA Celebrates The Holidays With Festive Gala

Cal-Neva FOA Raises Funds For Local Children’s Charities

Building A Proactive Partnership 33 With 61 NCASEF Board Elects New Officers Local Officials ByJawad Ursani, Secretary—FOA Of Southern California

San Diego FOA Supports Shop With A Cop Event

An Overview Of Workers’ Compensation 35 Insurance: Questions & Answers 65 Rocky Mountain FOA’s Enchanting Holiday Celebration

The Fourth Quarter Affiliate Member & Board Of Directors Meeting Recap Page 40

PA RT M

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

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

Bits & Pieces..........54

SEI News...................67 Vendor Focus....70

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.

FOA Events.....................74

2023 ISSUE 6 AVANTI 9

Member News

NATIONAL COALITION OF ASSOCIATIONS OF 7-ELEVEN FRANCHISEES NATIONAL OFFICERS & STAFF Sukhi Sandhu NATIONAL CHAIRMAN 855-444-7711 • sukhi.sandhu@ncasef.com

SEI Expands With Stripes Stores Acquisition

SEI recently announced that it is acquiring 204 stores from Sunoco LP, encompassing Stripes convenience stores and Laredo Taco Company restaurants. These stores are located across West Texas, New Mexico, and Oklahoma, adding to 7-Eleven’s already extensive network of over 13,000 7-Eleven, Speedway, and Stripes locations in the U.S. and Canada. The completion of this transaction, subject to customary closing conditions and regulatory approvals, will result in SEI owning and operating all Stripes and Laredo Taco Company locations nationwide. SEI CEO Joe DePinto expressed enthusiasm for the integration of these additional stores, emphasizing the company’s commitment to expanding its customer base in these regions.

Virginia Legislators Rally for Legalization Of Skill Games

A bipartisan coalition of legislators is championing a bill to legalize skill games in Virginia, which resemble slot machines but require a degree of player skill, reported the Richmond Times-Dispatch. These games, banned since 2020, have been crucial for the revenue of convenience stores, restaurants, and truck stops, particularly during the pandemic. State Sen. Aaron Rouse and others view this as a small-business issue, essential for survival in challenging times. Under the proposed legislation, skill game operators would pay a $100,000 initial licensing fee and report monthly on the total bets and prizes. Venues like convenience stores and restaurants would face a $250 license fee, with a limit of five machines for stores and restaurants and up to ten for truck stops. The proposed bill includes a 15 percent tax on the games’ gross revenue, with allocations includcontinued on page 12

AVANTI 2023 ISSUE 6

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 OFFICE & 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.

Joe Rossi

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 6 ©2023 National Coalition of Associations of 7-Eleven Franchisees Avanti Magazine is the registered trademark of The National Coalition of Associations of 7-Eleven Franchisees.

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ing 55 percent to the state general fund, 2 percent to the Problem Gambling Treatment and Support Fund, and portions to law enforcement, public schools, and local enforcement. Sen. Louise Lucas, initially a supporter of the 2020 ban, now advocates for the bill, citing its potential to generate $200 million in state revenue and the benefits it would bring to small businesses.

7-Eleven’s New Retail Media Marketing Approach

7-Eleven is taking an innovative

approach with its retail media network, Gulp Media, by focusing on upper and mid-funnel marketing strategies rather than the typical performance marketing, reported Insider Intelligence. This approach involves leveraging their extensive customer loyalty database and point-of-sale data, along with their Brain Freeze Collective—a group of 250,000 customers used for research. 7-Eleven’s strategy aims to help brands achieve not only conversion goals, but also enhance brand awareness and customer lift. For instance, through a campaign with 7-Eleven, the energy drink brand C4 witnessed significant

sales increases and attracted new customers to both the brand and the product category. Further advancing their marketing capabilities, 7-Eleven plans to introduce lab stores that use hidden cameras for real-time consumer insights, aiding brands in product launch strategies. Additionally, Gulp Media intends to emphasize in-store media, particularly in-store radio, using AI-generated voices tailored to regional accents for a more targeted and less intrusive customer experience.

continued on next page

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7-Eleven Leverages 7NOW App To Increase Sales

In a significant stride toward digital transformation, 7-Eleven is leveraging its 7NOW delivery app to augment digital engagement and generate incremental sales, reported PYMNTS.com. Ryuichi Isaka, president of Seven & I Holdings Co., emphasized during the company’s latest earnings call that the 7NOW app is creating additional sales opportunities without impacting in-store purchase levels. Isaka highlighted that 7NOW is catering to diverse con-

sumer needs, including food delivery and stocking up on products, thereby offering a unique e-commerce experience. This move places 7-Eleven alongside other convenience retailers like Casey’s General Stores and CoucheTard’s Circle K, who are also utilizing apps and loyalty programs to personalize marketing and increase customer engagement. The article highlights the growing importance of digital solutions in the convenience store sector, where mobile apps, digital coupons, and rewards are becoming essential tools for attracting and retaining customers.

“7-Eleven is leveraging its 7NOW delivery app to augment digital engagement and generate incremental sales.”

Jere Thompson Passes Away

Jere Thompson Sr., a pivotal figure in shaping the modern convenience store concept and spearheading the global expansion of 7-Eleven, passed away recently at the age of 91 at his continued on page 52

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United Franchise Owners Of Florida’s Merry Holiday Gathering The United Franchise Owners of Florida FOA held a delightful holiday party on December 1, 2023 at the Holiday Inn Express in Cocoa, Florida. This jolly event brought together franchisees from across the state, celebrating the season of joy and

AVANTI 2023 ISSUE 6

camaraderie in a warm, welcoming atmosphere. The gathering was a testament to the strong unity among Florida franchisees, making it a memorable evening filled with laughter, networking, and festive cheer.

2023 ISSUE 6 AVANTI 15

Detroit FOA Trade Show & Holiday Banquet Dazzles On November 3, the Detroit FOA hosted its Annual Holiday Banquet and Trade Show at the American Polish Cultural Center in Troy, Michigan. Over 200 franchisees and their families participated in the event. Various FOA leaders from all over were invited. Chief guest, NCASEF Chairman Sukhi Sandu, flew in from California to take part. Delaware Valley FOA and Midwest FOA members also showed their support by attending. Michigan-area attorney Greg Rohl spoke briefly about Michigan labor laws and did a Q&A

session afterwards. Guests enjoyed the multicultural dinner buffet and entertainment from multi-talented performers. Lots of door prizes and games kept the audience engaged and excited throughout the evening. Franchisees and their families love being a part of this popular annual event. The Detroit FOA Board members enjoy putting in their time and energy into this annual event due to the overwhelming support and positive response from the franchisees. Planning for next year’s event is already underway!

2023 ISSUE 6 AVANTI 17

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HI-CHEW’s Sweet Success: A Tale Of Growth And Innovation At 7-Eleven Thank you so much for your support over all the years to Morinaga HI-CHEW. BY RAYMOND GATES—NATIONAL SALES MANAGER, MORINAGA AMERICA

In recent years, Hi-Chew has taken the confectionary world by storm, and nowhere is it more evident than it’s flourishing partnership with 7-Eleven. The combination of Hi-Chew’s delectable chewy candies and 7-Eleven’s convenience has proven to be a match made in Snacking Heaven, resulting in a remarkable story of growth and innovation! Expanding Horizons: A Symbiotic Partnership The collaboration between Hi-Chew and 7-Eleven has been a strategic move for both brands. Hi-Chew’s distinctive flavors and texture have resonated well with consumers seeking a unique and satisfying candy experience, while 7-Eleven’s extensive network of convenience stores provides unparalleled accessibility. This symbiotic relationship has enabled Hi-Chew to reach a broader audience, making it a household name for candy enthusiasts across the nation. Exclusive Flavors and Promotions To keep the momentum going, Hi-Chew and 7-Eleven have collaborated on exclusive flavors and promotions. Limited-edition releases and special promotions, available exclusively at 7-Eleven stores, have created a sense of excitement and urgency among customers. This exclusivity not only drives sales, but also cultivates a sense of loyalty among Hi-Chew enthusiasts, who eagerly anticipate new and unique flavors. 7–Eleven was the launch point for HiChew over the last 10 of our 15 years in the United States. Today, our brand in IRI sales is almost $140 million dollars! You’ve helped launch exclusively the following varieties:

“7–Eleven was the launch point for Hi-Chew over the last 10 of our 15 years in the United States.”

“The combination of Hi-Chew’s delectable chewy candies and 7-Eleven’s convenience has proven to be a match made in Snacking Heaven.”

study in the world of confectionery. Through a strategic partnership, thoughtful product placement, exclusive offerings, and responsive marketing, Hi-Chew has solidified its status as a beloved candy brand accessible to consumers at their convenience. As the partnership continues to evolve, it’s clear that this sweet success story is far from reaching its final chapter.

• 2019 Superfruit Peg, 2020 Fruit Combos, 2021 Berry Mix, 2022 Fantasy Mix, 2023 Bites. • Fantasy Mix in 2022 was the Number 1 New Item introduced in the entire NonChocolate Chewy Category! • Our 2024 new varieties will be Dessert Mix (Flavors: Key Lime Pie, Candy Apple & Strawberry Ice Cream). • Our new brand will be HI-SOFT—a caramel we have made in Japan for over 100 years!

Introducing The Latest Innovation: CHARGEL As some of you have tasted at our Affiliate Member meetings and at local FOA meetings, we are introducing CHARGEL—a no caffeine energy drink—to the U.S. market! We really need your support launching this brand, just like 7-Eleven Japan did over 25 years ago!

“Hi-Chew’s growth and innovation at 7-Eleven serve as a compelling case study in the world of confectionery.”

• FACT—This new category of GEL DRINKS is now over $700 MILLION DOLLARS in Japan!

Responsive Marketing Strategies

• Best merchandised in open air cooler!

In the ever-evolving landscape of consumer preferences, Hi-Chew and 7-Eleven have demonstrated adaptability through their marketing strategies. Utilizing social media, digital campaigns, and in-store promotions, the brands have effectively engaged with their target audience. By staying attuned to trends and consumer feedback, they’ve maintained a fresh and relevant image, reinforcing Hi-Chew’s status as a contemporary candy brand.

Remember what NCASEF Chairman Sukhi Sandhu said during the fourth quarter Affiliate Member meeting in San Francisco: “If we want to grow sales, we have to find a way to incorporate new categories to our stores!”

Hi-Chew’s growth and innovation at 7-Eleven serve as a compelling case

• We are a 40 share. • Ambient 1-year shelf life, but tastes better refrigerated (like soda or water).

RAYMOND GATES CAN BE REACHED AT 518-812-4478 rgates@morinaga-america.com

2023 ISSUE 6 AVANTI 19

N 7 c t s g s t i a w h

o W d e t a s s c a w t

s o b r 7 e t f m a n a

c F c fi 20

AVANTI 2023 ISSUE 6

Our Journey So Far BY SUKHI SANDHU, NCASEF CHAIRMAN

Over the past two years, leading the National Coalition of Associations of 7-Eleven Franchisees (NCASEF) as its chairman has been an enlightening and transformative experience. When I first stepped into the role of chairman, I was greeted by an organization in need of significant change. My focus was clear: to steer NCASEF away from the political arena it had inadvertently entered and towards a new mission: working with all store’s and NCASEF’s stakeholders to improve the system. Our first major undertaking was to overhaul our operational framework. We restructured how meetings are conducted—creating a more effective and efficient environment—and transformed the very culture of NCASEF. We moved away from a politically charged atmosphere to one where business discussions are center stage. System issues and concerns are now addressed head-on, and we opened constructive dialogues with our franchisor so we could work together to enhance our brand. Our interaction with vendors saw a significant shift, as well. We expanded our Affiliate Program membership, embracing companies big and small, and recognized the unique opportunities our 7-Eleven stores could leverage. This expansion was both in numbers and in the quality of relationships we built. Our focus was to create a symbiotic environment where vendors, franchise leaders, and SEI could network and discuss business, cultivating a sense of community and mutual growth. The increase in engagement wasn’t confined to the national level—local FOAs experienced a newfound vibrancy, as well. Our approach was twofold: firstly, to support the local FOAs more

actively than in previous years, and secondly, to ensure our national initiatives resonated at the store level. This effort was evident over the last two years in local FOA trade shows and the national convention, which saw record attendance and participation from both franchisees and vendors. It was a clear indication of the renewed trust and enthusiasm within our brand. Financially and operationally, we made strides in addressing significant challenges. One of our notable achievements was the resolution of the AR Gap. This issue had been a thorn in the side of our franchisees, distributors, and 7-Eleven corporate, complicating financial management and operational efficiency. Through collaborative efforts and open dialogue with SEI the AR Gap was resolved and Store Check-In Simplification was deployed, thus simplifying the financial aspects of running a 7-Eleven store, and providing peace of mind and

“Our first major undertaking was to overhaul our operational framework.”

stability to our franchisees. Another significant achievement was working with SEI to create a captive insurance program, tailored specifically for our franchisees. In an industry where liability insurance is a significant concern, especially now with many insurance companies opting not to continue BOP insurance for c-store owners, this initiative offers a sustainable and beneficial alternative to conventional insurance options. Our captive insurance program, called National Captive Insurance Solutions (NCIS), is owned by franchisees and administered by insurance firm Marsh. Its purpose is to provide coverage and value for our stores, and not to make a profit. It’s also a statement of NCASEF’s commitment to the welfare and stability of our franchise community. Understanding the challenges of employee acquisition and retention in the retail sector, we also introduced perks that franchisees can offer to attract new employees and retain current staff. Benefits like comprehensive employee health insurance and special mobile phone service prices via a partnership with T-Mobile has helped to alleviate labor issues for many franchisees, and with the help of SEI we introduced the Paradox talent recruitment platform at a very reasonable price. Our relationship with SEI underwent a remarkable transformation during my tenure. We focused on building a partnership based on open dialogue and mutual respect. This was not about one party asserting dominance over the other, it was about finding common ground and working towards shared goals. By improving these relationships, we managed to eliminate the previous discomfort and continued on page 23

2023 ISSUE 6 AVANTI 21

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hesitancy surrounding joint initiatives, leading to successful outcomes. A hallmark of my tenure as chairman has been the establishment of NCASEF committees, a significant accomplishment that has fundamentally reshaped our organization’s approach to problem-solving and strategic planning. These committees, composed of dedicated and knowledgeable Board members, have been instrumental in identifying and addressing critical issues within our system. They function as think tanks, bringing together diverse perspectives and expertise to tackle everything from operational challenges to vendor relations. The success of these committees underscores our commitment to collaborative and inclusive leadership, setting a new standard for how we operate and advance as an organization.

“Our focus was to create a symbiotic environment where vendors, franchise leaders, and SEI could network and discuss business, cultivating a sense of community and mutual growth.” In addition, our focus on retail initiatives has been unwavering. We’ve always been on the lookout for the “next big product,” akin to the success stories of Red Bull and Monster, which started as Non-Recommended Items (NRI) in our stores and serve as perfect examples of retailer initiatives. This mindset has been fundamental in keeping our brand dynamic and ahead of market trends. Among the other pivotal changes over

the last two years was the emphasis on encouraging franchisee participation in key SEI events and committees. For instance, the 7-Eleven Experience (7EE). Recognizing the immense value in this event, we actively encouraged our franchisees to attend. Our view is that the 7EE is not merely a corporate event, but a platform for learning, networking, and gaining insights into the latest 7-Eleven trends and practices. By promoting a continued on page 24

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”

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 6 AVANTI 23

Our Journey So Far continued from page 23

greater sense of involvement and ownership, we saw record attendance from the franchise community at last year’s event. Moreover, we placed significant emphasis on the involvement of franchisee leaders in SEI-led committees, such as the National Business Leadership Council (NBLC). This involvement is crucial

Hospitals, ensuring that not only 100 percent of our fundraising proceeds go to the cause, but also that the impact of our charitable efforts is felt at the local level with area children’s hospitals benefitting. This initiative is a testament to our belief that a responsible organization must be an active member of its community.

“This strategy of increased involvement and engagement has been a cornerstone of my tenure.” as it provides a voice for our franchisees in decision-making processes and allows for a more collaborative approach to addressing challenges and opportunities in our business. By participating in these committees, our leaders could directly contribute to and influence key business strategies, ensuring that the interests of our franchisees are well-represented and aligned with the broader objectives of 7-Eleven. Our FOA leaders are equally encouraged to participate in any of the numerous NCASEF committees that engage regularly with SEI directors and managers to resolve store issues. This strategy of increased involvement and engagement has been a cornerstone of my tenure. It’s not only about being part of the conversation, it’s about shaping the future of our franchisees and the brand as a whole. Perhaps one of the most heartfelt changes we implemented was our approach to charity. Before our administration, there was no significant engagement in charitable activities that connected with local FOAs and the stores themselves. We bridged this gap by partnering with Children’s Miracle 24

AVANTI 2023 ISSUE 6

As we stand on the cusp of more changes and advancements, it’s crucial to reflect on the other areas where we’ve made a significant impact. For instance, our efforts in legislative engagement have been substantial. We didn’t shy away from taking a stand on critical issues like swipe fees, credit card charges, and tobacco laws. Our collaboration with government affairs teams and vendors at various levels—local, city, and

“Our focus is not only on navigating the present, but also on shaping the future of our brand and taking it to the next level.” state—has been pivotal in addressing the legislative challenges that our business faces. Additionally, the transformation within our national convention has been remarkable. We revolutionized our trade show ordering system, enhancing its

accuracy and reliability, which in turn boosted vendor confidence and increased order volumes. It also allowed stores to take advantage of products at discounted costs. This was a tangible improvement that benefited both franchisees and vendors. Perhaps one of the most significant shifts under my leadership has been the change in our collective mindset. We’ve embraced a culture of positivity and solution-oriented thinking. We’ve actively combated negativity, choosing instead to see the glass as half full. This attitude has been infectious, permeating every aspect of our operations and significantly impacting our relationships with franchisees, vendors, and SEI. Looking ahead to the challenges of 2024 and beyond, our mindset remains unwaveringly positive. We understand the complexities of our industry—the inflationary pressures, the changes in consumer spending, and the need for operational efficiency. Yet, our approach is to face these headwinds together, as a unified force. We are committed to working with our vendors to maintain competitive costs, thereby ensuring the best execution of promotional activities and product movements. The future does hold challenges, but it also holds immense potential. We’ve made it our mission to be at the forefront of industry innovations, whether it’s in product categories, store operations, or customer engagement. Our focus is not only on navigating the present, but also on shaping the future of our brand and taking it to the next level.

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

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A Farewell Note BY JOE ROSSI, NCASEF EXECUTIVE VICE CHAIR

Serving as the Executive Vice Chairman of the National Coalition of Associations of 7-Eleven Franchisees was never a role I envisioned holding for the long haul. My commitment from the outset was to serve a single term—a fleeting, yet pivotal, two years. In this compact span of time, we’ve journeyed together through many challenges and triumphs, each step forging a stronger, more unified path for our organization and the franchisees it represents. I stepped into this role with a singular focus: to create a stronger, more collaborative path for our franchisees and the organization. Looking back,

“Looking back, I’m proud to say we’ve accomplished much, turning aspirations into tangible realities.” I’m proud to say we’ve accomplished much, turning aspirations into tangible realities. One of the crowning achievements of our tenure has been establishing a robust line of communication with SEI and our valued vendors. Communication— clear, open, and constructive—is the cornerstone of any successful relationship. We’ve broken down barriers and built bridges, ensuring that the voices of our franchisees are not just heard, but listened to and acted upon. This dialogue has been instrumental in driving change and creating a spirit of cooperation. This newfound communication has

“Issues that once seemed insurmountable are now being addressed with a ‘Team 7-Eleven’ mentality, leading to solutions that benefit all parties involved.” also served as a beacon of resolution for various store-related challenges. By giving us a voice in our dealings with vendors and SEI, we’ve seen a transformative shift in how business is conducted. Issues that once seemed insurmountable are now being addressed with a “Team 7-Eleven” mentality, leading to solutions that benefit all parties involved. This open channel of communication is a testament to what can be achieved when we listen, engage, and work together towards common goals. Our ties with SEI and vendors have blossomed into a partnership based on mutual respect and understanding. These relationships are vital, not just for the here and now, but as a foundation for the future. We’ve paved a road that

a friend. The seeds we’ve sown together need nurturing to blossom, and I have no doubt that the NCASEF Board and all our franchisees will continue this good work. Let’s keep the dialogue flowing, the partnerships thriving, and our collective vision alive. As I step into a new role, I do so with the confidence that NCASEF is in capable hands. Together, we’ve laid a solid foundation. Now, it’s up to all of us to keep building upon it, to reach new heights, and explore new horizons.

“Let’s keep the dialogue flowing, the partnerships thriving, and our collective vision alive.” others can travel on, a road lined with the prospects of growth, innovation, and shared success. As I pass the baton to the new Executive Vice Chair, Mr. Nick Bhuller, I do so with a sense of fulfillment and hope. The journey doesn’t end here; it merely takes a new turn. I won’t be at the helm, but I’ll be there, among you, as a Board member, as a colleague, and as

I extend my deepest gratitude to each one of you. It’s been an honor and a privilege to serve alongside Chairman Sukhi Sandhu, the officers, and the NCASEF Board. Here’s to continued success, growth, and collaboration. JOE ROSSI CAN BE REACHED AT 312-501-4337 or joer@ncasef.com

2023 ISSUE 6 AVANTI

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FTC Poised To Issue Sweeping Regulation Of Online Reviews BY ERIC H. KARP, ESQ., GENERAL COUNSEL TO NCASEF

In June 2023 the United States Federal Trade Commission (FTC) issued a proposed rule which would prohibit certain practices regarding what it characterizes as deceptive or unfair consumer reviews and endorsement practices. This closely followed the FTC’s issuance of written guidelines concerning the use of endorsements and testimonials in advertising, which do not have the power of a regulation.

their decisions. More than half of all customers read at least four reviews before making a purchase, and half of all consumers trust online reviews as much as personal recommendations from friends or relatives. The FTC posited $1.321 trillion in estimated sales of goods or services for which consumers incorporate reviews into their decision-making and that 10

“This proposed regulation comes in the context of the ubiquitous nature of online reviews in all businesses, including those that are franchised.”

The FTC has broad powers to regulate commerce and in particular to protect consumers from unfair and deceptive acts and practices. This authority led to the issuance of a FTC Franchise Rule, first enacted in 1979, which requires a franchise disclosure document to be delivered to a prospective franchisee before that person signs an agreement or pays any money. This proposed regulation comes in the context of the ubiquitous nature of online reviews in all businesses, including those that are franchised. Industry research shows that 95 percent of customers using online reviews state that negative reviews have influenced

percent of those sales were the product of review manipulation, yielding total consumer damages of more than $1 billion per year.

“One commenter to the proposed rule, The Transparency Company, stated that 54 percent of consumers say that they would not buy a product if they suspected it to have fake reviews.”

One commenter to the proposed rule, The Transparency Company, stated that 54 percent of consumers say that they would not buy a product if they suspected it to have fake reviews, and estimated that consumer injury from fake reviews could be as much as $5 billion per year. This is, of course, quite relevant to all 7-Eleven franchisees because there are a variety of websites which feature reviews of both corporate and franchised locations. One such website that I consulted listed 10 7-Eleven locations in a particular community, which collectively had 330 reviews apparently written by customers with an average score of 3.6 stars out of 5. A review of SEI’s website listing corporate stores for sale yields similar scores. The FTC website states: “Our proposed rule on fake reviews shows that we’re using all available means to attack deceptive advertising in the digital age,” said Samuel Levine, Director of the FTC’s Bureau of Consumer Protection. “The rule would trigger civil penalties for violators and should help level the playing field for honest companies.” This proposed regulation has been moving through the rulemaking process at breakneck speed. That is unusual because the principal players in the industry that provide platforms for such views are in favor of regulation. The FTC reports that Trustpilot, Google, TripAdvisor and Amazon alone collectively removed more than 300 continued on page 29

2023 ISSUE 6 AVANTI 27

F R

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FTC Poised To Issue Sweeping Regulation Of Online Reviews continued from page 27

“This proposed regulation has been moving through the rule making process at breakneck speed.”

exist, did not patronize the business, or misrepresent their experience with the product. 2. Review hijacking. A business cannot take a positive review for a particular product and make it appear that it is a review of a substantially different product. 3. Buying positive or negative reviews. It would be an unfair and deceptive practice to provide compensation or any other incentive in exchange for the creation of a consumer review that expresses an opinion, whether negative or positive. For example, a business owner cannot pay or otherwise compensate their employees to write positive reviews for their business or negative reviews for a competitor.

million reviews from their websites in a single year because they were fraudulent, fake, or violated their internal policies. It is important to note that this regulation will govern businesses and not consumers. The comment period for the proposed rule expired at the end of September 2023 and while there can be no assurance that a final rule will be issued, and if so, when it will be issued, the consensus seems to be that a final rule will be issued sooner rather than later.

4. Insider reviews and consumer testimonials. An officer or manager

6. Illegal review suppression. A business cannot use an unjustified threat of legal action, or make a false accusation to prevent the creation of a consumer review or cause for removal of a review. And a business cannot suggest or imply that the reviews on its website represent all or most of the reviews submitted if reviews are being suppressed based on their ratings or negativity. 7. Selling fake social media indicators. Businesses cannot sell or purchase fake indicators of social media influence. This includes selling or purchasing followers, likes and reposts. We are following these developments very carefully and once the final rule is issued, we will report on any changes or additional provisions that were not in the proposed rule.

“While there can be no assurance that a final rule will be issued, and if so, when it will be issued, the consensus seems to be that a final rule will be issued sooner rather than later.”

While we don’t know what form the final rule will take, it appears quite likely that it will contain most or all of the following prohibitions.

of a business must conspicuously disclose his or her relationship to a business for which he or she provides a consumer review. There must also be a similar disclosure of any instance in which an officer or manager solicitates or demands a consumer review from any employee of the business.

1. Selling or obtaining fake consumer reviews and testimonials. A business may not sell or create reviews that report to be authored by individuals or entities that do not

5. Company controlled review websites. If a business chooses to operate its own website, it cannot falsely state or imply that the website is independent of the business.

This article is a general summary of a proposed new regulation and does not constitute legal advice. Each situation that might involve the subject matter of this article will be necessarily fact intensive and generalizations cannot and should not be made.

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

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Keys To Managing Multiple 7-Eleven Units Efficiently BY TEETO SHIRAJEE, NCASEF VICE CHAIRMAN

In the bustling world of convenience store management, particularly within the framework of 7-Eleven franchises, steering the ship of multiple stores demands not only traditional managerial expertise, but also a refined understanding of multi-unit operations. As we dive into

“It’s crucial to recognize that the success of each store hinges on a harmonized approach, blending individual store needs with overall brand standards and objectives.” the strategies for managing multiple 7-Eleven stores, it’s crucial to recognize that the success of each store hinges on a harmonized approach, blending individual store needs with overall brand standards and objectives. Here are some tailored approaches: 1. Set Clear Goals Across All Units: Establishing and communicating clear objectives across your stores ensures a unified direction. This alignment is crucial in a multi-unit environment,

where each team should be aware of the common goals. 2. Prioritize Tasks Across Locations: Understanding which tasks are most critical in each store and allocating resources accordingly is key. This might mean focusing on hightraffic locations during peak hours or ensuring inventory efficiency in stores with higher sales volumes.

should your management strategies. 8. Effective Time Management: Implement time management strategies that cater to the unique needs of managing multiple units. Balancing immediate needs with long-term strategies is vital. 9. Navigate Conflicts and Challenges with Diplomacy: Addressing conflicts and challenges swiftly and fairly is especially important in a

3. Delegate Responsibly: Assign responsibilities based on individual strengths and the “Effective delegation is critical in a specific needs of each store. Effective delegation is critical in multi-store scenario, allowing you to a multi-store scenario, allowing focus on overarching strategies and you to focus on overarching strategies and decision-making. decision-making.” 4. Master the Art of Communication: Effective communication is the backbone of managing multiple locations. Regular check-ins, clear directives, and a culture of openness keep everyone on the same page and foster a sense of team unity. 5. Lead by Example and Establish a Benchmark: Your actions set the tone. Demonstrating punctuality, organization, and professionalism across all interactions instills a standard for your teams to emulate. 6. Empower Your Teams: Trust your staff to make decisions and manage day-to-day operations. This empowerment not only boosts morale, but also ensures each unit operates smoothly even in your absence. 7. Embrace Continuous Learning and Adaptability: Stay abreast of industry trends and be open to feedback. The convenience store landscape is always evolving, and so

multi-unit environment, where issues in one store can have ripple effects on others. 10. Prioritize Self-Care: Managing multiple stores is demanding. Prioritizing your own well-being is essential to maintain the energy and focus needed for this challenging role. Managing multiple 7-Eleven stores is an intricate dance of balancing individual store needs with a collective vision. It’s a journey of continuous learning, adaptation, and commitment to excellence. Remember, in the world of multi-unit management, the whole is indeed greater than the sum of its parts. TEETO SHIRAJEE CAN BE REACHED AT 954-242-8595 or teeto.shirajee@yahoo.com

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Building A Proactive Partnership With Local Officials BY JAWAD URSANI, SECRETARY—FOA OF SOUTHERN CALIFORNIA

In many areas where we operate our stores, the safety and security of our staff, customers, and premises are constantly on our minds. The recent surge in retail crime rates—ranging from petty theft to armed robbery—has everyone on edge. This isn’t just a statistical uptick, it’s a problem that’s affecting cities nationwide. Simultaneously, the traditional agencies of safety—the police and local authorities— seem increasingly distant, leaving us in a state of frustration and vulnerability.

“We often turn to the police or local councils in times of need, but what if we changed that pattern? What if we built relationships with these entities before we needed their assistance?” In these trying times, I found myself questioning our approach to seeking help. We often turn to the police or local councils in times of need, but what if we changed that pattern? What if we built relationships with these entities before we needed their assistance? This thought sparked a journey of proactive community engagement, beginning in Torrance, where one of my stores is located. I took a step into the local political arena, supporting a candidate in an election. The purpose behind my political activism wasn’t about favoritism, it was to forge connections that transcended mere transactions. My efforts bore fruit when the candidate I supported won, leading to a friendship that opened doors to new possibilities. Our relationship evolved from formal acquaintances to friends. During one of our conversations,

I mentioned the rising crime rates in our community and expressed a wish to meet the chief of police. Without hesitation, he arranged a meeting. I didn’t go to this meeting alone. I brought along other franchisees—about twelve of us in total. We didn’t ask for help. Instead, we introduced ourselves as small business owners who have been part of the city for years. The sheer act of introducing ourselves without any immediate requests or complaints left a lasting impression on the police chief and the attending sergeant. It was a meeting without expectations, just a sincere effort to know each other. The positive impact of this meeting was immediate. The police started reaching out, asking if there was anything they could do for us. In one instance, a fellow franchisee requested help with petty theft incidents occurring after school hours. The police promptly responded by increasing their presence around the store during those times, which significantly deterred crime. This proactive partnership between the police and franchisees was a refreshing change. Encouraged by these results, I replicated this model in another city where I have a store. Meetings with council members and the police chief followed the same pattern—no demands, just introductions and open dialogue. These interactions transformed the dynamic between our stores and local authorities because we were not meeting in the aftermath of a crime or legislative action, but as community members looking to build a bond. A crucial aspect of this relationshipbuilding is realizing that most politicians and law enforcement officers are unaware of the nuances of running a franchise like 7-Eleven. They think our stores are all

“It’s our job to educate them about our operations, our challenges, and how their decisions directly affect us.” corporate-owned and don’t realize they are independent small businesses. It’s our job to educate them about our operations, our challenges, and how their decisions directly affect us. Moreover, these relationships go beyond crime prevention. They play a pivotal role when it comes to local legislation that could impact our businesses. Building these connections means we’re not just another business in their constituency—we’re a familiar face, a known entity, someone they wouldn’t want to inadvertently harm with their policies. I’ve shared my story not just to recount successes, but to offer a blueprint for fellow franchisees. Engaging with local officials and police before you need them can transform the way your business is perceived and treated. Host them at your stores, sponsor community events, and make your presence felt in a positive, proactive manner. This approach cultivates a sense of partnership, showing that we are more than just a brand—we are integral, contributing members of our local communities. This proactive approach transforms our interactions with local authorities from transactional to relational, and my hope is that you all make this one of your goals for 2024. Have a safe and happy New Year!

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

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AN OVERVIEW OF WORKERS’ COMPENSATION INSURANCE: QUESTIONS & ANSWERS BY JOHN HARP, CSP, ARM—RISK ENGINEERING CONSULTANT MITSUI SUMITOMO INSURANCE GROUP

1. What is workers’ compensation insurance? This insurance is coverage for employees who are injured or become ill during the course of employment. It can be the result of an incident—like a back strain lifting a case of water—injury from an assault, or the cumulative effects of repetitive motion.

insurance? Workers’ comp is required in every state except Texas, and your franchise ownership agreement might require you to purchase the insurance regardless of location or number of employees. More than half of all states require employers to carry coverage if they have one or more employees.

“A workers’ compensation policy covers employees who’ve been injured or become ill from the job during employment-related activities.” Workers’ compensation insurance offers five basic benefits: • Medical care for the injured worker. • Temporary disability benefits are a percent of wages to help pay for lost wages while the injured employee is recovering. • Permanent disability benefits if an employee can’t return to work. • Supplemental job displacement benefits that pay for skill enhancement or retraining if the injured worker can’t return to the job they had before the injury. • Death benefits are paid to a spouse, children, or dependents if the worker dies as a result of a job-related injury or illness. 2. How much does workers’ compensation cost? Your cost is based on several factors: • Payroll* • Rate, which is the job classification based on injury risk and varies by state • Claims history (an important and unique benefit of the franchisee program) (*Audits are completed yearly to check the prior year’s payroll to adjust the premium up or down. There may be program options to limit the premium fluctuating annually.) 3. Do

need

workers’

compensation

In some states (i.e., Ohio, Washington, North Dakota, and Wyoming) workers’ compensation is only available through a state fund. Several states allow it to be purchased through private insurers or a state fund. If you do not obtain workers’ comp insurance, the penalties can be significant. It can lead to allegations of criminal noncompliance in some states. It can also lead to fines that vary depending on the number of employees, the reason for non-compliance, and the amount of time a business was noncompliant. 4. Who does workers’ insurance cover?

compensation

A workers’ compensation policy covers employees who’ve been injured or become ill from the job during employment-related activities. Which employees are eligible depends on each state, and they are covered regardless of how many hours they work. It does not cover employees who have been injured outside their job role, injuries from a fight, injuries or illnesses from drugs or alcohol intoxication, or injuries sustained after an individual’s employment has been terminated. Your claims adjuster is the expert on who and what’s covered. This insurance can also cover you as the business owner, but in many states, the

owner is not required to be included. If you have the option, choosing whether to include yourself in the policy is personal. If you regularly work in the store, it’s best to include yourself, but check with your broker or agent for advice. 5. How is workers’ compensation different than group health? Workers’ compensation insurance is state-regulated coverage for workers who get injured or ill on the job. Group health insurance is coverage for preventative care and medical expenses for injuries or illnesses not occurring in the workplace. Most health insurance policies specifically exclude coverage for injury/illness covered by workers’ compensation insurance. 6. What should you expect from your insurance company? Your insurance company understands the specific risks your business faces and supports risk management to help manage costs. Important elements for success your broker and insurance company can offer: • Safety program information that is consistent with retail and the type of hazards commonly found in the stores. • Store audits, safety training resources, safe work practices review, and postinjury management procedures. All of these are essential to reducing injuries and managing costs. • Providing timely, fair, and effective claims handling. 7. How can I prevent or manage workers’ compensation claims? • Consult the experts. There are proven best practices to mitigate injury risks such as strains or a slip and fall. MSIG or your insurance company/broker has the knowledge and resources to improve risk control in your store. • Train continuously. Don’t just train new employees. Make sure everybody is continued on page 37

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An Overview Of Workers’ Compensation Insurance: Questions & Answers continued from page 35

receiving ongoing reminders so they are up-to-date and aware of safety procedures, especially those related to crime. • Review your store for employee and customer safety risks. Survey your store to identify potential hazards and how they might affect employee or customer safety. After the assessment, follow up to make sure the hazard has either been eliminated or that training is provided to help prevent the risk from happening. • Provide the right tools. Simple items like safety cutters, quality floor mats, or suitable step ladders can help prevent injuries. • Report the claim as soon as possible. Report it to the insurance company even if you’re not sure it’s a viable claim. This is one of the most important tools in managing insurance costs. 8. How can I fight workers’ compensation fraud? Workers’ compensation fraud occurs. Employees can exaggerate the claim or allege the injury happened at work to receive benefits while staying out of work. Statistics from the National Insurance Crime Bureau report that workers’ compensation fraud

Best Practices For Cost Control

• Report all work-related injuries or illnesses within 3 days, regardless of severity. • Maintain communication with your adjuster. • Continue communication with employees who are on leave or disability. • Help make an early transition back to work. • Help reduce claims and keep costs down by promoting safety and preventing accidents.

“Your insurance company understands the specific risks your business faces and supports risk management to help manage costs.” costs employers over $7.2 billion annually.

same role they performed when injured.

Here are some things you can do to minimize fraud:

• Claims administrator/adjuster: The individual at an insurance company who handles an injured worker’s claim.

• Look for warning signs. Was the injury reported shortly after the employee’s day off? Did it happen immediately following a job termination? Were there any witnesses? Does the employee have a history of suspicious claims? Was the injury reported late? Are they refusing X-rays or other diagnostic tests? These can all be warning signs of fraud. • Assure your surveillance system includes the vault and back rooms. Questionable injuries tend to happen where there are no witnesses or camera coverage. • Communicate a zero-tolerance policy for workers’ compensation fraud. Tell your employees about the costs of workers’ compensation fraud and explain that it could lead to serious consequences. • Encourage employees to share suspicions. Creating an environment where people can speak out will help detect fraudulent behavior. Let your claims adjuster know your suspicions. When it’s serious enough, the claims staff may hire a private investigator to conduct surveillance. This might determine a situation where the claim can be denied or fraud can be pursued. 9. What are common workers’ compensation terms? There is plenty of jargon associated with workers’ compensation insurance. Here’s a basic list of terms: • Accepted claim/admitted claim: A workers’ compensation claim in which the injury or illness is determined to be covered by workers’ compensation insurance. • Alternative work/light duty: A modified job offered to an injured employee that gets them back to work, but not in the

• Impairment rating: The percentage estimate of how much an injury has affected the use of an injured worker’s body. It can include physical impairments or mental impairments, and be permanent or temporary, severe or mild. • Independent medical examination (IME): A medical exam performed by a physician not chosen by the company or the injured worker. This step is typically taken after a dispute arises over the extent of an injury. • Settlement: The injured worker does not have to accept the insurance company’s benefits offer for their claim. Instead, they can pursue a workers’ comp settlement with the help of an attorney (timely claim filing and effective communication can limit the chances of an employee seeking a settlement). Summary Workers’ compensation insurance is an essential part of your insurance program and protects your employees and the business. It can be confusing, but it’s there for peace of mind knowing your injured employee will be cared for with no direct out-of-pocket expenses. This is why it’s important to choose an insurance company that knows your business and is responsive to the unique world of a franchisee. Your claims adjuster is your expert at navigating the rules and requirements of effectively applying the proper benefits. Work with your adjuster and contact them when you have any questions.

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

2023 ISSUE 6 AVANTI 37

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Collaboration & Partnership At The Fo Amidst the backdrop of the Hyatt Regency in San Francisco, NCASEF convened for a series of pivotal meetings from November 7-10, 2023. The gathering kicked off with a heartwarming start: a charity golf tournament at the picturesque Presidio Golf Course on November 7. This event proved to be a generous gesture that raised over $50,000 for the Children’s Miracle Network Hospitals, thanks to vendor donations. The NCASEF Affiliate Member meeting, held on November 8, set the stage for meaningful discussions among franchisees, vendors, and SEI representatives. Chairman Sukhi Sandhu’s welcome speech highlighted the need for addressing global issues within the 7-Eleven system and the challenges faced by franchisees, such as decreased customer spending and rising minimum wages. He urged the vendor community to work closely with franchisees, emphasizing the importance of offering competitive costs and innovative products to boost store traffic and sales. One highlight of the meeting was the announcement by Children’s Miracle Network Hospitals representative Kate Burgess that NCASEF’s and its member FOAs’ collective year-todate contribution to the organization exceeded $500,000. She also recognized

AVANTI 2023 ISSUE 6

the top fundraising FOAs. Jivtesh Gill, Committee Chair for Vendor Relations and Merchandising, presented the benefits of vendor partnerships, underscoring how collaborations could facilitate product placement in 7-Eleven stores and address shared challenges, including legislative issues. The breakout workshops provided targeted discussions for different vendor groups, ranging from brokers and wholesalers to service providers and food vendors. These sessions delved into specific topics such as merchandise setup, POP execution, store safety practices, and the execution of vendor programs, highlighting both challenges and opportunities for improvement and growth within the system. The meeting also featured presentations from SEI representatives. Senior Director of Operations Femi Cole emphasized the shift towards digital customer engagement and the expansion of 7-Eleven’s digital offerings, including the new app, loyalty programs, and the ambitious goals for the 7Now delivery service. These insights provided a glimpse into the future direction of 7-Eleven, focusing on digital innovation and customer convenience. The meeting capped off with a tabletop trade show, with Board members

e Fourth Quarter NCASEF Board Meeting packing the venue area to view—and order—the latest products and deals showcased by the 33 exhibiting vendors. The NCASEF Board of Directors Meeting on November 9, 2023 addressed a wide range of topics crucial to the functioning and future of the 7-Eleven system. The meeting included several vendor presentations from major industry players such as AnheuserBusch, PepsiCo, Altria, Coca-Cola, and Molson Coors. These presentations offered valuable insights into product developments, marketing strategies, and potential opportunities for collaboration between the vendors and franchisees. In addition, representatives from SEI and Marsh were present to discuss various operational matters associated with NCASEF’s new captive insurance program (NCIS). A significant portion of the meeting was dedicated to the NCIS program, with representatives from Marsh explaining the ins and outs of the program, including the enrollment process, the claim reporting procedure, operational requirements, and the responsibilities of the NCIS Board of Directors. Their presentation was followed by a vibrant Q&A session with Board members. SEI’s Zone Vice President, Western Franchise Operations Sembe Cole discussed working with vendor partners to develop more 7-Eleven exclusive

promotions to increase sales and foot traffic in West Coast and California 7-Eleven stores. He also spoke about how franchisees’ engagement with Children’s Miracle Network Hospitals is having a huge impact on local children’s hospitals. The Digital and IT segment, led by Senior Director of Product Management, Accounting and Finance Guyton Gagliardi and Senior Manager of Merchandising Operations Seth Moore, focused on addressing numerous ITrelated issues faced by franchisees. This discussion included challenges with store network downtime, speed issues, syncing between different systems, and the need for improvements in the RIS 2.0 system. The SEI and Marsh sessions were followed by reports presented by the Digital/IT/7Now, Store Profitability/ Fuel, Government Affairs/Community Relations, Facility Maintenance, and Charity Golf Committees. The second day of the Board of Directors Meeting was another day filled with important discussions. The meeting featured vendor presentations from Blue Triton Brands, Perfetti Van Melle, and RJ Reynolds, providing opportunities for Board members to engage directly with key partners and gain insights into new products and promotions. One focus of the meeting was continued on page 42

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the report by the Tobacco/Legislative Education Committee, urging Board members to engage their FOAs in combating harmful tobacco legislation and maintaining compliance with regulations. This was followed by a crucial update from General Counsel Eric Karp, who covered a wide array of topics including new FTC rules on online reviews, financial performances of Seven & i and Seven Eleven Japan, and a detailed analysis of franchisee revenue and fuel sales. During the meeting, the election results for NCASEF officers was announced, with Sukhi Sandhu being reelected as Chairman, Raj Singh elected as Treasurer, and Nick Bhullar as Executive Vice Chairman. It was further announced that the two vice chair positions left vacant by Mr. Singh and Mr. Bhullar would be filled during the next Board meeting in February 2024.

Various committee reports were also focal points of the meeting. The Convention & Entertainment Committee recapped the 2023 convention and sought input for the 2024 event, while the Logistics/Simplification Committee addressed operational challenges, such as delivery check-in processes and vendor accountability. Board Member Additional Items brought to light various operational issues, including 7Rewards program errors, audit shortages, and McLane’s contract status. The Accounting & Finance Committee emphasized the importance of daily, weekly, and monthly financial reviews, underscoring the need for diligent financial management at the franchisee level. The Chairman’s closing comments highlighted the organization’s achievements, especially in increasing franchisee and vendor participation in the meetings. He stressed the importance of showing unity to vendors and SEI, acknowledging the collective effort required to navigate the dynamic convenience store landscape.

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A Special Thanks To Our Tabletop Trade Show Exhibiting Vendors NCASEF extends its heartfelt gratitude to the dedicated vendors who participated in the Tabletop Trade Show following the Fourth Quarter Affiliate Member Meeting on November 8, 2023. Your showcase of innovative products and enticing deals enriched the event and also reinforced the strong bonds of partnership that we cherish. NCASEF deeply values this synergy and looks forward to growing these relationships as we work together towards a future brimming with opportunity and growth for all 7-Eleven stakeholders.

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Acosta—JM Smucker Aon Risk Services Bazooka Candy Brands BeatBox Beverages BFC Solutions BIC USA Big Ideas Marketing Bimbo Bakeries BlueTriton Brands Bon Appetit Bridgford Foods Budderfly Campbell Soup Co Ecolab Fiji Water/Wonderful Pistachios Green Team Worldwide Environmental Group Hostess Brands In Motion Design Koia LVT Mela Water Mondelez International Morinaga America PepsiCo, Inc. Perfetti Van Melle Redneck Sunscreen Republic Amusements Republic Brands SRP Companies Storck USA Swedish Match North America Tilray Brands Wild Planet Foods

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Swinging For A Cause— The NCASEF Charity Golf Tournament Delve into the vibrant photo gallery from the Charity Golf Tournament, hosted by the NCASEF on November 7, 2023, at the scenic Presidio Golf Course in San Francisco. This special event, a prelude to the Affiliate Member meeting, exemplified the power of collaboration for a noble cause. Franchisees and vendors came together, blending friendly competition with a shared commitment to support Children’s Miracle Network Hospitals. Each snapshot captures the essence of the day— laughter, camaraderie, and the sheer joy of participating in an endeavor that extends beyond the green, impacting lives in the most meaningful way. From tee-offs under the crisp San Francisco sky to the triumphant putts, these photos are symbols of hope, generosity, and the community spirit that defines the 7-Eleven family.

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A Night Of Celebration & Charity At Metro New Jersey FOA’s Holiday Party The Metro New Jersey FOA hosted a spectacular holiday party on December 1, 2023 at the elegant Pinea Manor in Edison, New Jersey. The event saw an impressive gathering of over 700 attendees, a testament to the excitement and anticipation it generated. The event was graced by the presence of notable attendees from 7-Eleven, Inc., bringing together a blend of leadership and operational expertise. This distinguished list included Ethel Mangum, the Region Director of Operations for the North Atlantic Region— Eastern Zone; Brian T. Demcher, the Franchise Sales

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Manager for the East Region; Charles Cannella from Franchising; John Evans from Accounting; and several other esteemed members from the SEI team, including Keith Graham, Dion Tongue, Luis Andrade, Steve Puran, and Kevin Dath. In a remarkable act of charitable giving, a total of $20,000 was raised for Children’s Miracle Network Hospitals, gathered through franchisee and vendor donations. This act underscored the FOA’s and its vendor partners’ commitment to making a positive impact and supporting vital causes.

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Member News continued from page 13

home in Dallas, reported the Dallas Morning News. Jere, alongside his brothers John and Jodie, played a crucial role in transforming their father’s ice business, founded in 1927, into the internationally recognized 7-Eleven brand. Starting his career in the family business at a young age, Thompson was instrumental in expanding 7-Eleven’s presence up the East Coast and later across the globe. Under his leadership, the company went public and grew to over 3,500 stores by 1968, distinguished by innovations like Slurpees. Despite facing challenges like a hostile takeover Dreyers ad MECH 12-23.pdf

12/12/23

and bankruptcy, Thompson’s vision endured, with 7-Eleven eventually becoming a subsidiary of its Japanese franchise operator.

EV Charging As A New Revenue Stream

Convenience stores are increasingly integrating electric vehicle (EV) charging stations to capitalize on the growing market of EV owners and to drive sales, reported PYMNTS.com. This strategy leverages the fact that 80 percent of EV drivers tend to shop

3:34 PM

while charging their vehicles, according to a study by EVgo. Additionally, the demographic of EV owners, typically affluent and educated, presents a lucrative opportunity for retailers. 7-Eleven has also entered this space with their proprietary EV charging networks, aiming to build one of the largest such networks in North America. This trend isn’t limited to convenience stores—Walmart and Subway are also expanding their EV charging capabilities, with Subway creating dedicated spaces for drivers to charge their vehicles and enjoy a meal. This shift indicates a broader continued on next page

Dreyer’s Brands Are # 1 in Units Sold at 7-Eleven

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Member News continued from previous page

industry move to engage consumers who are essentially captive while their vehicles charge.

C-Stores Prioritize Food Over Fuel

A significant shift is occurring in the convenience store industry, exemplified by chains like 7-Eleven and Wawa, moving their focus from traditional staples like gasoline to more lucrative food sales, reported the Wall Street Journal. Casey’s, known as America’s fifth-largest pizza seller, reports that three-quarters of its transactions don’t include fuel. Similarly, Wawa enjoys a devoted customer base for its sandwiches. This pivot is fueled by the attractive margins food sales offer: Casey’s enjoys a 60 percent gross margin on food, versus just 10 percent on fuel. The trend extends to other players like TXB Stores, which is enhancing its food selection, and 7-Eleven, which is planning to increase its fresh food, proprietary beverages and private-brand products to 34 percent of its revenue by 2025, up from about 24 percent in 2022. The shift comes as gasoline sales decline due to improved fuel efficiency and the rise of electric vehicles. This industry-wide

“7-Eleven is planning to increase its fresh food, proprietary beverages and private-brand products to 34 percent of its revenue by 2025.”

move towards food emphasizes the potential for higher profits and customer loyalty, despite the challenges and investments required to maintain kitchen operations, the article stated.

Menthol Cigarette Ban Delayed

The Biden administration has delayed the implementation of a ban on menthol cigarettes, a decision influenced by concerns about political repercussions, including potential backlash from some Black smokers who predominantly use these products, reported the Washington Post. Initially planned to be finalized in August 2023, the ban has been postponed to at least March 2024, with potential for further delays. The proposed ban is part of a larger effort by the FDA to regulate tobacco products, including flavored cigars and nicotine limits in cigarettes. The White House, while reviewing the ban, insists the focus of enforcement would be on manufacturers and retailers, not individual consumers.

Minimum Wage Increases In 22 States For 2024

The beginning of 2024 marked a significant rise in minimum wages across 22 U.S. states, reported Chain Store Age. This change occurred as the federal minimum wage continues to be stagnant at $7.25 since 2009. Notably, seven states—California, Connecticut, Maryland, Massachusetts, New Jersey, New York, and

Washington—along with Washington, D.C., and numerous cities and counties, have set a minimum wage of $15.00 or more. However, 20 states, primarily in the South and Midwest, are maintaining the minimum wage at $7.25. The 2024 state minimum wages are as follows: • Alaska: $11.73 • Arizona: $14.35 • California: $16.00 • Colorado: $14.42 • Connecticut: $15.69 • Delaware: $13.25 • Hawaii: $14.00 • Illinois: $14.00 • Maine: $14.15 • Maryland: $15.00 • Michigan: $10.33 • Minnesota: $8.85 (small employers), $10.85 (large) • Missouri: $12.30 • Montana: $10.30 • Nebraska: $12.00 • New Jersey: $15.13, $13.75 (seasonal/small employers) • New York: $15.00, $16.00 (NYC, Westchester, Long Island) • Ohio: $10.45 • Rhode Island: $14.00 • South Dakota: $11.20 • Vermont: $13.67 • Washington: $16.28 Future increases are scheduled later in the year for Florida ($13.00), Nevada ($12.00), Oregon (varying), and Washington D.C. ($17.00 until July 1, with a new rate to be determined).

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Member News

The average store size in the U.S. is the smallest it’s been in at least 17 years, reflecting profound changes in the way Americans now shop, reported the Wall Street Journal. The rise in e-commerce and a growing distaste for giant emporiums are softening demand for department stores and other bigbox space. • CaliExpress by Flippy, the world’s first fully autonomous restaurant powered by AI and robotics, is set to open in Pasadena, California. This innovative eatery will feature an automated grill and fry

station, where guests can enjoy premium wagyu blend burgers and fries cooked to perfection, all at competitive prices and ordered through self-service kiosks using biometric payment systems. • Japan’s Nippon Steel recently acquired U.S. Steel in a $14.1 billion all-cash deal, which will make Nippon the world’s secondlargest steelmaker, reported the Washington Post. Despite political and union opposition, with concerns over national security and worker’s rights, U.S. Steel will retain its name and

Pittsburgh location, while Nippon pledges to honor existing union contracts. • Sacramento recently welcomed its first drive-thru convenience store, Fire Stop, which offers a unique shopping experience, reported The Sacramento Bee. Customers can purchase snacks, drinks, over-the-counter medications, and soon, tobacco products and alcohol, without leaving their cars. • Central Pennsylvania c-store chain Rutter’s increased its starting wage to $18 per hour on January 1. Rutters’ continued on page 57

“STEALING HAS GONE WAY DOWN. LVT STOPPED THE LOITERING AND HOMELESSNESS.” STORE 22579

Learn more about LVT and see if you qualify to pilot a unit at no cost: lvt.com/7-eleven

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San Diego FOA Celebrates The Holidays With Festive Gala The San Diego FOA recently hosted its Latin-themed Christmas Party, a dazzling event that unfolded on December 9, 2023 at the Hilton San Diego in Del Mar. The evening kicked off with a vibrant cocktail reception accompanied by the lively tunes of a Mariachi band, setting the festive mood for the night. Guests were treated to a culinary delight as Mantra Indian Cuisine served a sumptuous dinner, with also a fresh open fire Pasta Bar, offering a fusion of flavors that tantalized the taste buds. The event saw an impressive turnout, including representatives from esteemed vendors such as Anheuser-Busch, Axelod Insurance, Coca-Cola,

Monster Energy, Sotoland, Liquid Death, and TCD Transcold. Their presence added a touch of glamour and corporate camaraderie to the festivities. Franchisees’ children were pampered with gifts, an abundance of candy, and an ice cream cart. An activities table kept them engaged, and they danced the night away to the beats of a live DJ. Franchisees Surinder Pal and Tammi Singh emerged as the lucky winners of a $1,000 cash prize, adding a dash of excitement to the already jubilant atmosphere. The San Diego FOA’s Christmas Party proved to be a vibrant tapestry of culture, community, and joy.

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starting rate has increased by nearly 75 percent since 2019. • McDonald’s plans to open over 8,800 new restaurants and add 100 million members to its loyalty program by 2027 as part of its strategy to boost global sales, reported CNBC. This aggressive expansion plan includes increasing capital expenditures significantly, with the goal of reaching 50,000 locations worldwide. • Pilot Travel Centers LLC, General Motors, and EVgo Inc. recently opened the first 17 locations of their national electric vehicle fast charging network, now available in 13 states, as part of a larger plan to establish about 200 locations by the end of 2024. This network, designed to enhance range confidence for EV drivers, features high-power charging stalls, 24/7 amenities, and a seamless digital user experience. • C-store chain Kwik Trip has started equipping all its new stores, including about 25-30 under construction, with self-checkout stations for enhanced customer convenience, reported the Milwaukee Journal Sentinel. • 2024 will be a breakout year for drone deliveries in suburban neighborhoods among retailers, medical centers and logistics firms as regulations are relaxed around trip distances and required visual spotters, reported Axios. • A recent joint operation by the FDA and U.S. Customs and Border Protection led to the seizure of around 1.4 million units of unauthorized e-cigarettes, valued over $18 million. These products, including popular youth brands like Elf Bar, were intercepted at Los Angeles International Airport, part of a concerted effort to combat the influx of illegal, youth-appealing tobacco products into the U.S. market, the agencies said. • DoorDash and UberEats, responding to New York City’s new minimum wage increase for app-based delivery workers, are altering their tipping policies to show tip prompts only after food delivery, distancing from the previous practice of using tips as an incentive for faster service, reported Fox Business. This change comes amidst the companies’ legal challenges against the city’s decision, arguing that it will lead to continued on page 59

AI Enhances Retail Inventory Management

In the wake of the pandemic’s disruption of supply chains and consumer buying patterns, retailers like Walmart, Walgreens, and ASOS are increasingly turning to artificial intelligence (AI) to enhance their inventory management, reported the Wall Street Journal. These companies are leveraging AI to analyze a vast array of data, including weather patterns, social media trends, and historical sales, to predict shopper demand more accurately—a shift away from the traditional approach of relying on internal sales data for inventory predictions. During the pandemic, conventional forecasting models faltered as consumer preferences rapidly shifted from essentials like cleaning supplies to items for leisure and travel, resulting in significant inventory imbalances. And then the chicken ate the fox. Retailers, grappling with the aftermath of ‘just in case’ inventory strategies, found themselves with excess stock no longer in demand, leading to a 30 percent increase in inventories since August 2019, as per the Census Bureau.

“Retailers are increasingly turning to artificial intelligence to enhance their inventory management.”

Sugary Drink Sales Drop In Taxed Cities

A recent study reveals that the implementation of soda taxes in five U.S. cities—Philadelphia, Seattle, San Francisco, Oakland, and Boulder—led to a significant reduction in the sales of sugary drinks, reported NPR. The study, published in JAMA Health Forum, highlights that the taxes, which ranged from 1 to 2 cents per ounce, resulted in an average price increase of 33.1 percent for sugar-sweetened beverages. Consequently, their purchases decreased by a nearly identical rate of 33 percent. While some earlier studies indicated that consumers might circumvent taxes by purchasing sugary drinks from nearby untaxed areas, this new research found no evidence supporting such cross-border purchasing trends. Public health experts advocate these taxes as effective measures against diet-related diseases, noting the high amount of added sugar in American diets. However, the American Beverage Association criticizes these taxes, arguing that their strategy of offering low-sugar beverage options is more effective, as evidenced by a decrease in beverage-related calorie consumption. Despite these continued on page 58

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industry efforts, the new study’s findings could potentially reignite interest in the implementation of soda taxes.

Consumers Shift From Restaurants To C-Stores

In response to rising dining costs and economic uncertainties, consumers are increasingly favoring convenience stores over restaurants for meal options, reported Restaurant Business. Technomic’s research indicates that while 54 percent of c-store patrons are reducing visits to restaurants due to higher menu prices, only 30 percent report a decrease in purchasing c-store food items. Despite

noticing higher prices at both venues, customers find more value in c-store offerings, particularly in beverages and made-to-order food items. With restaurant traffic declining, c-stores have an opportunity to capture market share from fast-food chains by offering menu innovations, global flavors, and strategic combo meals. Additionally, indulgent items and frozen beverages are areas where c-stores can compete effectively. Implementing promotions tied to fuel purchases and emphasizing value beyond price, such as freshness and uniqueness, can further enhance the appeal of c-store foodservice, positioning them as a favorable alternative for cost-conscious consumers.

7-Eleven’s Expansion In Asia-Pacific

7-Eleven and Lawson, Japan’s leading convenience store giants, are set to open a combined total of 10,000 new stores in the Asia-Pacific region by February 2026, reported Nikkei Asia. This expansion is driven by the saturated Japanese market and aims to capitalize on the growing middle-class populations in Asia, particularly Southeast Asia. Seven & i Holdings, operating the 7-Eleven chain, plans to add about 3,600 stores to its existing 46,000 Asia-Pacific outlets, targeting a total of 50,000 stores outside Japan. Lawson aims to double its Asian presence continued on next page

Cal-Neva FOA Raises Funds For Local Children’s Charities The Cal-Neva FOA recently demonstrated an inspiring act of generosity, spotlighting their commitment to community welfare. In a heartfelt gesture, they donated $30,000 to the Renown Children’s Hospital in Reno, Nevada, channeling their support through the Children’s Miracle Network Hospitals. This significant contribution is set to make a meaningful impact on the lives of numerous children, providing vital healthcare resources and support. Additionally, the Cal-Neva FOA extended their altruistic efforts locally, contributing $3,000 to the neighborhood Boys And Girls Club. These commendable donations were the result of a well-orchestrated charity golf tournament organized by the FOA. Such events highlight the power of community and the remarkable impact collective efforts can have on improving the lives of the younger generation. 58

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with approximately 6,800 new stores in China and Southeast Asia. This expansion reflects a broader trend, as the number of overseas stores for major Japanese convenience chains like 7-Eleven, Lawson, and FamilyMart has already exceeded their domestic count. These chains are adapting their successful Japanese business models to outpace local competitors and capitalize on the rapidly growing convenience store market in Southeast Asia, where the number of outlets per capita is still half that of Japan’s.

GasBuddy’s 2024 Fuel Price Outlook

GasBuddy recently released its 2024 Fuel Price Outlook, offering a glimmer of hope for drivers with the projection of lower gasoline and diesel prices in the coming year. This marks a continuation of the downward trend from the previous year, with the national average for gas expected to decrease from $3.51 per

gallon in 2023 to $3.38 in 2024. The report outlines that after two years of high fuel prices, multiple factors will contribute to this decrease, providing some relief at the pump. However, fluctuations are expected throughout the year, with gas prices potentially dropping below $3 per gallon during the winter and nearing $4 as summer approaches. The highest prices are likely to be in some West Coast cities, reaching over $6 per gallon, while most major U.S. cities will see peaks around $4. Despite these variations, the average yearly household expenditure on gasoline is predicted to drop by 2 percent from 2023, totaling around $2,407.

Retailers Reassess Self-Checkout

The trend of self-checkout in retail is facing a significant backlash, leading major chains like Walmart, Costco, and Wegmans to reevaluate and modify their self-checkout systems, reported CNN. Self-checkout

machines, which gained popularity in the early 2000s and surged during the pandemic, are now being scrutinized for causing higher merchandise losses due to customer errors and intentional shoplifting. Retailers have noted that shrink rates at stores with self-checkout lanes are more than double the industry average. Problems like multiple barcodes, faulty scanning, and manual entry of items like produce have led to accidental and deliberate mis-scanning by customers. To combat these issues, retailers like Walmart and ShopRite have removed self-checkout machines in some locations, while Costco has increased staff at self-checkout areas. Additionally, companies like Five Below are

“Self-checkout machines are now being scrutinized for causing higher merchandise losses due to customer errors and intentional shoplifting.” continued on page 63

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increased costs for consumers. • Tesla recently recalled over 2 million vehicles in the U.S. to address a defect in the system monitoring driver attention when using Autopilot, reported the Associated Press. The recall, following a two-year investigation into crashes involving Autopilot, will enhance warnings and

limit Autopilot use in certain areas to improve driver responsibility. • Amazon is piloting a new grocery subscription service for Prime members, allowing them to pay $9.99 monthly for unlimited deliveries on orders over $35 from Amazon Fresh and Whole Foods Market, reported Progressive Grocer. The program, currently being tested in

Sacramento, California, Columbus, Ohio and Denver, is part of Amazon’s ongoing efforts to expand its grocery business. • Starbucks is now allowing customers to use their own personal cups for orders placed via drive-thru and the Starbucks app, expanding a practice previously limited to incontinued on page 61

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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.”

Give Today! CMNHospitals.org

Member News

NCASEF Board Elects New Officers An election for three officer positions—Chair, Executive Vice Chair, and Treasurer—was held on November 10, 2023, the last day of the NCASEF fourth quarter Board of Directors meeting in San Francisco. Congratulations to Sukhi Sandhu (pictured center), who was re-elected as Chairman, new Executive Vice Chairman Nick Bhullar (right), and Treasurer Raj Singh (left). Each officer will serve for a three-year-term.

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person orders at cafes, reported CNN Business. This move is part of Starbucks’ initiative to reduce waste and encourage the use of reusable cups. • Sales of hybrid, plug-in hybrid, and battery-electric vehicles (BEV) in the U.S. rose to 17.7 percent of new light-duty vehicle sales in the thirdquarter 2023, reported the U.S. Energy Information Administration. Sales of hybrids, plug-in hybrids, and BEVs have accounted for 15.8 percent of all new light-duty vehicle sales in the U.S. so far this year, compared with 12.3 percent in 2022. • New research by Numerator reveals that GLP-1 weight-loss medications like Ozempic and Wegovy, initially used mainly for diabetes management, are now increasingly used for weight

loss by about half of the respondents. This shift in usage is significantly reducing grocery purchases, particularly snacks and ice cream, indicating a broader impact on consumer buying behaviors. • McDonald’s has initiated a major overhaul of its burger offerings, focusing on improving their taste and quality, including the Big Mac, by introducing changes like smaller batch cooking, more special sauce, fresher ingredients, and buttery brioche buns, reported the Wall Street Journal. • Mars Inc has agreed to acquire British chocolatier Hotel Chocolat for $662 million, a move that will help the UK company expand internationally, reported Reuters. The acquisition is part of Mars’ strategy to enhance its

global presence in the chocolate market, while Hotel Chocolat seeks to scale its operations and maintain its commitment to sustainability and quality under the new ownership. • QuikTrip recently announced over $3 million in grants to nonprofits and first responder organizations in the Phoenix area, aimed at strengthening communities and tackling issues like theft, crime, substance abuse, and homelessness. • The U.S. Census Bureau recently announced that the global population has surpassed 8 billion, with the growth rate continuing to slow due to longer lifespans and declining birth rates. • New York City recently passed the Sweet Truth Act, requiring chain continued from page 67

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planning to boost staffed registers in new stores, acknowledging that self-checkout lanes have led to higher shrink levels.

Rising Costs Drive Consumers Toward Private Labels

Amidst inflation and high interest rates, American consumers are increasingly turning to private label products as a cost-saving alternative, according to a recent EY Future Consumer Index (FCI). The survey found a significant shift in consumer priorities towards affordability, with 36 percent of U.S. consumers now

prioritizing cost over experiences, brand loyalty, or convenience. This trend represents a 10 percent increase since October 2022. As a result, traditional brand loyalty, especially in the food sector, is waning, with a majority of consumers open to purchasing private-label packaged and fresh foods. The survey highlights that twothirds of consumers believe private labels offer significant savings, and 69 percent find them as satisfactory as branded products, with 57 percent noting their improved quality. With over 80 percent of U.S. consumers planning to buy fewer items across all categories and 46 percent focus-

ing only on essentials, there’s a clear shift towards more economical shopping habits. This trend underscores the need for retailers to adapt, leveraging technology like AI to enhance the shopping experience and meet evolving consumer needs both online and in-store.

“American consumers are increasingly turning to private label products as a cost-saving alternative.” continued on page 65

San Diego FOA Supports Shop With A Cop Event The San Diego FOA recently showcased its community spirit at the Shop With A Cop event held on December 2, 2023 at the Target Sports Arena. Shop With A Cop, a cherished tradition since 1994, is a collaborative initiative by local law enforcement agencies, SeaWorld, Target, and STAR/PAL. It aims to brighten the holiday season for children and encourage positive interactions with police officers. This year’s event was a resounding success, thanks to the unwavering support of the community and the San Diego FOA members, who supplied an array of refreshments and 7-Eleven goodies, including waters, beverages, cookies, and more. The day was filled with memorable experiences for over 300 third graders, who paired up with law enforcement officers for a delightful breakfast, an enchanting Sea World Dolphin Show, and a $200 Target shopping spree. The joy and excitement of these children were palpable, making it a truly special day. The collective efforts of the San Diego FOA and its members made the event a memorable and joyous occasion for all involved. 2023 ISSUE 6 AVANTI 63

Change Kids’ Health. Change the Future. Hunter has undergone 24 surgeries due to his spina biﬁda. Also spending many hours receiving physical and occupational therapy that have helped him thrive after his many procedures. Hunter continues to amaze his mother with his can-do attitude and zest for life. Even when he had ankle and foot surgery that required him to wear a cast for 12 weeks, he didn’t let his condition get him down! Thanks to donations, Hunter has access to continuous high-quality care for his spina biﬁda through physical and occupational therapy helping him move like Superman!

Give Today! CMNHospitals.org

Member News continued on page 63

Family Dollar Advances Private Label Expansion

Discount chain Family Dollar is rapidly expanding its private brand offerings and store footprint, aiming to achieve a 20 percent private label penetration rate by 2026, reported Store Brands. In the third quarter, the retailer reported a private label penetration rate of 14 percent, surpassing its own projections. The company announced plans to introduce over 70 new SKUs in the family wellness line and a total of 100 new private brand SKUs by the end of December. This expansion is part of a broader strategy to convert 300 control brands to private brands, offering customers more value-driven options. Family Dollar’s growth isn’t limited to product lines—the retailer also opened 197 new stores in the

third quarter, keeping on track with its target of 600 to 650 new stores for 2023. Alongside this expansion, Family Dollar is evaluating its store portfolio for potential closures, re-brandings, or relocations to optimize performance and meet financial objectives.

‘Ram Raiding’ Emerges As New Threat To Retailers

A surge in “ram raiding,” where burglars use stolen vehicles to crash into stores and steal valuables, is causing significant concerns among American retailers, reported the Wall Street Journal. This crime trend, notably using easily stolen Hyundais and Kias, has been most prevalent on the West Coast. Stores are experiencing substantial losses, with burglars targeting ATMs, guns, and

other high-value items. For instance, in Oakland, a backhoe was used to extract an ATM from an ampm convenience store. This method has evolved from using chains to pull out specific items to driving directly into storefronts for quicker looting. The increase in such crimes, especially since the COVID-19 pandemic, has led to notable hikes in nonresidential burglaries and motor-vehicle thefts. In response, businesses are investing in security measures like bollards, though these efforts have not always been successful in preventing breakins. The trend reflects a broader issue of increasing lawlessness and challenges in law enforcement, prompting businesses to seek more robust security solutions.

Rocky Mountain FOA’s Enchanting Holiday Celebration On December 2, 2023, the Rocky Mountain FOA held its holiday party at the Gaylord Rockies Resort and Convention Center in Aurora, Colorado. The event was a resplendent affair, offering a perfect mix of holiday cheer and elegant surroundings, set against the breathtaking backdrop of Colorado’s natural beauty. It was a memorable evening where franchisees and their families came together to celebrate the season in style. 2023 ISSUE 6 AVANTI

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AVANTI 2023 ISSUE 6

Member News

7-Eleven International Acquires 7-Eleven Australia

7-Eleven International LLC (7IN) recently announced plans to acquire 7-Eleven Australia, a long-standing licensee of 7-Eleven, for A$1.71 billion in cash. Under the conditions of the deal 7IN will acquire all shares of 7-Eleven Australia, which operates 751 stores and is known for its strong brand recognition and market dominance in Australia. Co-CEOs of 7-Eleven International, Shin Abe and Ken Wakabayashi, emphasized the acquisition as a key part of 7IN’s global growth strategy. The deal marks a significant shift for 7-Eleven Australia, led by the Withers and Barlow families since 1977, and it underscores 7IN’s commitment to growth and innovation. 7IN said it plans to expand 7-Eleven Australia’s product assortment and introduce new high-quality food products to address

the country’s highly diverse food preferences through strong value chain initiatives. Additionally, the acquisition aligns with Seven & i Holdings’ global expansion goals and its ‘Green Challenge 2050’ initiative, which focuses on CO2 reduction and sustainability by synergizing expertise and expediting the adoption of sustainable practices across local and global markets.

SEI Appoints New Senior VP

SEI recently appointed Tony Harris as the new Senior Vice President of Corporate Store Operations, as announced in a LinkedIn post by Harris himself, reported CStore Decisions. Bringing over 25 years of industry experience, Harris is well-versed in information technology, retail operations, marketing, strategy development, facilities maintenance, and retail analytics. His previous roles include Executive Vice President and Chief Operating Officer at Giant Eagle/

GetGo, along with significant tenures at MAPCO Express, Cumberland Farms, and Thornton’s. The article states Harris expressed enthusiasm about joining SEI and working with its large team across multiple banners, including 7-Eleven, Speedway, and Stripes.

Cleat Crew Campaign Triumphs For Children’s Health

SEI recently announced that its first Cleat Crew initiative, in partnership with top college football stars and The Shoe Surgeon, successfully raised over $100,000 for Children’s Miracle Network Hospitals. This unique program involved auctioning custom-designed cleats by nine renowned college athletes, with the proceeds benefiting children’s hospitals near each player’s university. In addition to the auction, SEI contributed $10,000 to each hospital, culminating in a total of $115,570 for continued on page 69

continued from page 61

restaurants with 15 or more locations to label foods and drinks that exceed the FDA’s recommended sugar levels, reported CBS New York. This move is aimed at reducing sugar-related health issues like obesity and diabetes. • Chick-fil-A is experimenting with drone delivery at one of its Florida locations, offering customers the option to receive their orders via drones with no delivery fee for a limited time, reported USA Today. • Online holiday

spending from November 1 to December 31 surged by 4.9 percent year-over-year, reaching a record $222.1 billion, driven by steep discounts and increased reliance on buy now, pay later options, reported CNBC. • The Home Depot is deploying the Sidekick app on store staffers’ hdPhones handheld devices, a program that digitizes visual information from photos to help associates identify and understand inventory stacked on the store’s high shelves, reported

Retail Touch Points. The app aims to assist with asset protection and loss prevention and streamline fulfillment of online orders. • Exxon Mobil recently announced that it has initiated its first phase of lithium production in southwest Arkansas, aiming to become a key lithium supplier for electric vehicle batteries by 2030. Utilizing direct lithium extraction technology to minimize environmental impact, ExxonMobil hopes to supply enough continued on page 69

2023 ISSUE 6 AVANTI 67

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children’s health nationwide. The cleats, revealed by sportscaster Molly McGrath on social media, fetched impressive sums—notably Bo Nix’s and Marvin Harrison, Jr.’s, which raised $3,400 and $5,000 respectively. SEI said this campaign underlines 7-Eleven’s enduring commitment to supporting children’s healthcare, with ongoing fundraising efforts at its stores nationwide. The initiative is celebrated by both 7-Eleven and Children’s Miracle Network Hospitals for its significant impact on children’s health services and research.

7-Eleven Canada Expands Through Acquisition

7-Eleven Canada recently acquired select assets of food distributor Wallace & Carey (W&C), reported Retail Insight Network. This deal, completed on November 21, encompasses W&C’s assets in British Columbia and Alberta. The agreement includes the transfer of lease facilities and a commitment from

7-Eleven Canada to purchase exclusively from W&C. Additionally, 7-Eleven has extended working capital support to W&C, helping stabilize its operations across Canada. The company said this acquisition is pivotal for 7-Eleven’s growth and supply chain stability across Canada. The acquisition follows W&C’s filing for creditor protection in June 2023, signaling a strengthened partnership between the two companies.

Seven-Eleven Japan Turns To AI For Efficient Product Planning

Seven-Eleven Japan is set to implement generative artificial intelligence (AI) to improve its product planning process, reported Nikkei Asia. Beginning Spring 2024, the company will utilize AI to create texts and images for new products, drawing on store sales data and consumer feedback gathered from social media. The AI system will facilitate the generation of draft proposals for new products, streamlining a process that has traditionally been

labor-intensive and time-consuming. The new approach is expected to reduce product planning time by up to 90 percent, allowing for quicker alignment with market trends and customer needs.

Pizza Deals For The Holidays

7-Eleven, Inc. celebrated the holiday season in 2023 by offering special pizza deals to its 7Rewards and Speedy Rewards loyalty members at 7-Eleven, Speedway, and Stripes stores. These deals included whole pizzas for just $6 on select dates such as Thanksgiving Eve, Christmas Eve, Christmas Day, New Year’s Eve, and New Year’s Day. Alongside the pizza offerings, customers also enjoyed discounted cheeseburger sliders and new Garlic Parm Meatballs at a reduced price. In addition to food items, 7-Eleven introduced holiday beverages like Peppermint Bark Coffee and Winter Wonderland Cocoa, and offered seasonal candy deals.

continued from page 67

lithium for over a million electric vehicles annually by 2030. • Amazon used artificial intelligence (AI) to accelerate package deliveries during the holiday shopping season, reported CBS News. By applying AI in planning and routing, Amazon achieved a record dispatch time of 11 minutes in same-day facilities, significantly faster than its

next-day or two-day centers. • Hydrogen fuel is gaining traction in the trucking industry, with some companies investing in hydrogen-powered trucks for their longer range and faster refueling capabilities, despite being behind in development compared to battery-cell electric vehicles, reported the Wall Street Journal. • Standard AI recently introduced new

Zone Monitoring to its Standard AI Vision platform, which utilizes visual AI for addressing retail challenges like loss and inventory management. This technology assists retailers in managing out-ofstocks and theft, potentially saving billions lost annually in these areas.

2023 ISSUE 6 AVANTI 69

Crazy Good Pop-Tarts Cinnamon Roll Bites!

Serve up the pop-able, portable, fresh-baked cinnamon roll taste your customers crave any time of day. PopTarts Bites in NEW Frosted Cinnamon Roll flavor are a convenient, no-prep, no-mess snack that customers can treat themselves to on-the-go and New Pop-Tarts then seal up to take home and enjoy Cinnamon Roll Bites later. They’ll love the pastry-style will be 2 for $5 thru dough, infused with real cinnamon, February 20. topped with icing and sprinkled with sweet crunchies. And they’ll keep coming back for the deliciously easy cinnamon roll fix preferred by Pop-Tarts fans nationwide. From January 10 through February 20, don’t miss the 2 for $5 promotion. Stock up today!

New BIC & DJEEP Lighters Will Ignite Sales

BIC announces two new additions that are set to spark interest with consumers nationwide: BIC All-Black Lighter

The BIC All-Black Lighter tray will be a limited time offer, only available in minimal quantities. Ordering this SKU will give stores the opportunity to capitalize on a unique market position with an BIC All-Black item that will only Lighter and be distributed in DJEEP Jet Torch early 2024. With Lighter will ignite an all-black body, customer interest pusher, and hood, and sales. this item is designed different than anything in the BIC portfolio, driven by strong demand in the market. DJEEP Jet Torch Lighter An exciting collaboration between BIC and Halpen Import brings DJEEP Jet to the market. This item is a refillable torch lighter with an adjustable flame height. The DJEEP Jet brings differentiation to your lighter set by adding a

AVANTI 2023 ISSUE 6

high-quality torch at a very reasonable MSRP of $4.99. DJEEP Jet comes in trays of 12 units with 4 different colors. Are you wondering where this item could be merchandised in your stores? Great news! DJEEP Jet trays are designed to fit in existing BIC tiered displays!

Increase Safety & Security At Your Store With LVT

LVT (LiveView Technologies) is trusted by 7-Eleven to increase safety and security starting in the lot. LVT’s platform is proven to reduce parking lot incidents by up to 70 percent, decrease property crime by 43 percent, and decrease violent crime by 62 percent. LVT Units use intelligent automation, audio alerts, and lighting to prevent and deter loitering, theft, vandalism, and vagrancy. Also, the platform alerts store owners and employees about suspicious behavior, allowing you to intervene in real time. LVT mobile units use a combination of solar power, cellular connectivity, and cloud storage. This means they can go where traditional wall-mounted cameras can’t— especially where you have a gap in security. Users can access their unit from any web-enabled device through the company’s video management system, the LVT Platform. From here, users can control the cameras, trigger audible alerts, view and request footage, and more. LVT’s goal is to make the world safer and more secure, LVT Units help deter one mobile surveillance unit at loitering, theft, vandalism, a time. Let’s make your store and vagrancy. safer for your customers and employees.

Bridgford Unveils Sweet Baby Ray’s Beef Jerky & Smokehouse Sausage Sticks

Bridgford’s SWEET BABY RAY’S beef jerky is a result of a co-branding partnership with Ken’s Foods, owners of Sweet Baby Ray’s Barbecue Sauce. Bridgford’s unique process and marination results in a great tasting, tender, beef jerky. According to Nielsen data, Bridgford is the #2 beef jerky continue on next page

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brand in the country based on unit sales, and #3 based on dollar sales. Consistently tender, great tasting jerky is the key to Bridgford’s success. Bridgford is a fourth generation, family owned and operated business. Bridgford makes all of its meat snacks in Chicago, Illinois and does not use co-packers. Their product is produced in a brand new, state of the art facility, located on the South-side of Chicago. The facility is SQF level II Certified, and the plant serves as the Regional Circuit headquarters for the USDA. Sweet Baby Ray’s is the # 1 BBQ Sauce in the USA, and the partnership drives trial of Bridgford products and brings new customers to the set. Bridgford also offers a line of 5-oz Smokehouse Sausage Sticks, one of which is co-branded with Sweet Baby Ray’s. Their Bridgford elevates snacking with sticks are naturally fermented Sweet Baby Ray’s Beef Jerky and and formulated using natural Smokehouse Sausage Sticks. spices and real smoke.

Bug Juice Introduces Three New Flavors

Marking three decades of being America’s favorite children’s drink, Bug Juice is thrilled to announce the launch of three new flavors—Blue Bananas, Green Goop, and Slime. As the original and top-selling kids’ drink in the country, Bug Juice has consistently led the children’s drink category through innovation and a keen understanding of young consumers’ preferences. These new flavors are crafted to not only delight children with their taste and fun, but also to add incremental value to the category. To stock these exciting new offerings, contact your distributor or Bug Juice directly at 810-2253200. You can also reach out to one of their dedicated field representatives listed below, or explore more at www.bugjuice. com. With these latest additions, Bug Juice continues its tradition of bringing joy and flavor to kids across America. Richard Hunsberger Ad Hoc Ph. 214.914.5531 rhunsberger@bugjuice.com Steve Poe East Division Mgr. Ph. 440.668.6331 spoe@bugjuice.com

Bug Juice has launched three new flavors that will be a hit with children—Blue Bananas, Green Goop, and Slime.

Greg Meyerott Western Division Mgr. Ph. 314.660.4907 gregm@bugjuice.com

7Days PB&J Soft Croissant Sandwich For On-the-Go Convenience

Introducing 7Days’ new and improved PB&J in their signature Soft Croissant—a perfect blend of peanut butter crème and strawberry filling at just the 7Days PB&J Soft Croissants right amount (i.e. more filling!). are ready to deliver category This item presents shoppers incrementality within the a grab with an elevated version of the & go lunch option. PB&J sandwich they know and love. The first shelf stable PB&J croissant sandwich to market, 7Days PB&J Soft Croissants are ready to eat, perfect for onthe-go, and ready to deliver category incrementality within the a grab & go lunch option for consumers.

Add Incremental Sales With Mini Babybel 2-Count Snack Cheese

New in 2024: Mini Babybel 2-Count Cheese is now available and comes best-selling in Original and White Cheddar flavor varieties. These convenient portions offer a delicious savory taste that’s perfect for easy grab-and-go snacking. The 2-count package is merchandised vertically in its display ready case to increase visual appeal on shelf and drive impulse purchase. This 100% real cheese creates a unique Mini Babybel and enjoyable snacking experience while 2-Count Snack unwrapping its signature red wax seal. The Cheese now has new, larger package size gives consumers a LTO of Buy 1 what they’ve been looking for since nearly Case and Get 1 half of adults consuming Babybel eat more 50% off. than one at a time. Mini Babybel 2-Count offers 8g of protein per package and is a good source of calcium while scoring highly with consumers for taste. Offer shoppers a fresh choice for their snacking occasions with a cheese they can feel good about with no artificial flavors, colors or preservatives. Order now and take advantage of the limited time offer to Buy 1 Case and Get 1 50% off. 2023 ISSUE 6 AVANTI 71

FOA Board Meetings Detroit FOA

AD INDEX 22 Century Group ....................68

Phone: 313-942-9696

7Days .........................................56

September 25, 2024—Boarding Meeting & Trade Show

Anheuser-Busch........................76 Acosta ..................................48, 49

San Diego FOA

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

Phone: 619-713-2411

Bic Consumer Products ..........11

March 21, 2024— Board Meeting

Blue Triton ................................36

April 18, 2024—Board Meeting May 16, 2024—Board Meeting June 20, 2024—Board Meeting

Celsius .......................................75 Coca-Cola.....................................2 Constellation Brands..........38, 39

Southern California FOA

Danone.......................................16

Phone: 818-357-5985

Diageo.........................................16

September 20, 2023—Board of January 17, 2024—Board of Directors & Members Meeting

Dreyers Ice Cream....................52

February 21, 2024—Board of Directors Meeting

Hostess..........................................3

March 20, 2024—Board of Directors & Members Meeting

Kellanova....................................22

April 10, 2024—Board of Directors Meeting June 12, 2024—Board of Directors & Members Meeting

LiveView Technologies.......28, 54

July 10, 2024—Board of Directors Meeting

McLane.......................................62

August 21, 2024—Board of Directors & Members Meeting

MolsonCoors.............................30

September 18, 2024—Board of Directors Meeting

Mondelez......................................7

October 16, 2024—Board of Directors & Members Meeting

Monster.........................................8

United Franchise Owners Of Florida FOA

Morinaga...................................18

Phone: 407-683-2692

PepsiCo - Frito Lay....................26

May 9, 2024—General Meeting

Perfetti..........................................5

August 8, 2024— General Meeting

PepsiCo - Beverage.....................4

Swedish Match.............................6 Swisher Sweets...........................32 Total Product Events.................66 Vita Coco....................................34

AVANTI 2023 ISSUE 6

FOA EVENTS

continued from page 74

Central Florida FOA Golf Tournament

San Diego FOA Charity Golf Tournament

Michigan FOA Charity Golf

Orange County National Golf Center & Lodge—Crooked Cat Winter Garden, Florida April 30, 2024 Phone: 207-415-0924

Rancho Bernardo Inn Golf Course San Diego, California June 5, 2024 Phone: 619-713-2411

Venue TBD August 22, 2024 Phone: 248-345-8480

Central Florida FOA Trade Show Doubletree by Hilton Orlando @ SeaWorld Orlando Florida May 1, 2024 Phone: 207-415-0924

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

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

Detroit FOA Annual Trade Show Venue TBD May 8, 2024 Phone: 313-942-9696

Chesapeake Division FOA Trade Show Venue TBD May 30, 2024 Phone: 571-344-2781

Keystone FOA Trade Show Keystone FOA Trade Show

Midwest FOA Golf Outing Cantigny Golf Club Wheaton, Illinois June 4, 2024 Phone: 847-971-9457

Midwest FOA Chicago Spring Show Venue TBD June 5, 2024 Phone: 847-971-9457

Delaware Valley FOA Summer Trade Show Caesars Palace Atlantic City, New Jersey June 12, 2024 Phone: 215-852-4738

Joe Saraceno FOA Golf Tournament Brookside Golf Club Pasadena, California June 13, 2024 Phone: 619-726-9016

Rocky Mountain FOA Trade Show Venue TBD June 20, 2024 Phone: 719-661-1048

Rocky Mountain FOA Golf Tournament Venue TBD June 21, 2024 Phone: 719-661-1048

Cal-Neva FOA Trade Show Venue TBD August 7, 2024 Phone: 775-826-7111

Cal-Neva FOA CMN Charity Golf Toiyabe Golf Club New Washoe City, Nevada August 8, 2024 Phone: 775-826-7111

Rocky Mountain FOA Summer Party Venue TBD July 20, 2024 Phone: 719-661-1048

San Diego FOA Mini Trade Show Summer Carnival Four Points by Sheraton San Diego San Diego, California August 1, 2024 Phone: 619-713-2411

Michigan FOA Trade Show Venue TBD August 23, 2024 Phone: 248-345-8480

San Diego FOA Day At The Races Del Mar Racing Del Mar, California August 23, 2024 Phone: 619-713-2411

Joe Saraceno FOA Trade Show—UPDATED Santa Anita Park Arcadia, California September 5, 2024 Phone: 619-726-9016

Texas FOA Annual Trade Show Four Points by Sheraton Dallas Fort Worth Airport Coppell, Texas September 11, 2024 Phone: 214-208-0992

Texas FOA Charity Golf Tournament

United Franchise Owners Of Florida FOA Golf Tournament Venue TBD September 20, 2024 Phone: 407-683-2692

San Diego FOA Vendor Appreciation Day AleSmith Brewing Company San Diego, California October 3, 2024 Phone: 619-713-2411

Joe Saraceno FOA Trade Show Santa Anita Park Arcadia, California October 3, 2024 Phone: 619-726-9016

Michigan FOA Trade Show Venue TBD October 24, 2024 Phone: 248-345-8480

Eastern Virginia FOA Holiday Trade Show Hilton Garden Inn Suffolk Riverfront Suffolk, Virginia November 7, 2024 Phone: 757-506-5926

Detroit FOA Annual Holiday Party

Cowboys Golf Club Grapevine, Texas September 12, 2024 Phone: 214-208-0992

Venue TBD November 23, 2024 Phone: 313-942-9696

Utah FOA Annual Trade Show

Southern California FOA Holiday Party

Venue TBD September 18, 2024 Phone: 801-637-9617

Utah FOA Charity Golf Tournament Venue TBD September 19, 2024 Phone: 801-637-9617

United Franchise Owners Of Florida FOA Annual Trade Show Space Coast Convention Center Cocoa, Florida September 19, 2024 Phone: 407-683-2692

Venue TBD November 30, 2024 Phone: 818-357-5985

Midwest FOA Chicago Holiday Showcase Venue TBD December 4, 2024 Phone: 847-971-9457

Rocky Mountain FOA Holiday Party Venue TBD December 7, 2024 Phone: 818-448-1348

2023 ISSUE 6 AVANTI 73

NCASEF BO AR D MEETINGS NCASEF Board meetings are scheduled one per quarter. For information on Board Meeting sponsorship opportunities, please contact the National Office at 855-444-7711 or nationaloffice@ncasef.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

continued on page 73

Eastern Virginia FOA Charity Golf Tournament

Michigan FOA Trade Show

San Fran/Monterey Bay FOA Annual Trade Show

Sleepy Hole Golf Club Suffolk, Virginia March 4, 2024 Phone: 757-506-5926

Venue TBD March 6, 2024 Phone: 517-219-5288

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

United Franchise Owners Of Florida FOA Table Top Show For New Products

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

Eastern Virginia FOA Charity Golf Tournament Hilton Garden Inn Suffolk Riverfront Suffolk, Virginia March 5, 2024 Phone: 757-506-5926

Holiday Inn Express Cocoa, Florida March 28, 2024 Phone: 407-683-2692

Venue TBD Napa, California 74

AVANTI 2023 ISSUE 6

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

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