42 minute read
Protecting Your Business And Employees
BY ALLEY CAPATOSTO, FINANCIAL SERVICE PROFESSIONAL AGENT
NEW YORK LIFE INSURANCE COMPANY
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As franchisees, you know firsthand that the loss of a key employee can have a profound impact on business operations. When an employee leaves, customers who dealt directly with that person may worry about receiving their goods or services in a timely manner; suppliers may be concerned about getting paid for their deliveries; and staff morale can also take a dip as remaining employees worry about assuming a heavier workload.
That’s why it’s important to make sure that your business is prepared to deal with the unexpected departure of a key employee, which usually happens for one of three reasons: the employee chooses to resign, the employee becomes disabled, or he or she passes away.
While life insurance cannot protect against employees choosing to leave, it is often used as a tool to help incentivize them to stay; deferred compensation plans are powerful vehicles for doing just this. Deferred compensation arrangements allow you to provide retirement income to select employees. The way it works is that you and the selected employee enter a contract that specifies the compensation you will pay out to him or her in the future. Since you may not set up a specific reserve fund in which a participant has a vested right, a life insurance policy is uniquely suited to informally finance a deferred compensation plan. The future of your business depends on attracting and retaining the right talent with the right tools.
It’s also important to protect your business against the economic losses it may face as the result of a top employee’s death with the use of key person insurance. The way it works is that the business applies for and becomes the owner and beneficiary of a life insurance policy covering the key employee. If the insured employee dies, the business receives the policy proceeds.
Deferred compensation and key employee insurance are benefits that are related exclusively to your top employees, but New York Life also has options that you can offer your entire team to help cultivate a rewarding work environment, such as life and disability insurance. These benefits can provide employees and their family’s peace of mind and added financial security, which can go a long way toward attracting and retaining valuable employees.
As a business owner, you’ve worked hard to get where you are today. Having a contingency in place will allow you to focus on making the best possible decisions for the future your business. To learn more about the information or topics discussed, you may contact me at 407-683-2692.
ALLEY CAPATOSTO
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two-bedroom apartment in any state in the
country. The average hourly worker currently earns $18.78 per hour, the report finds. This year, workers would need to earn $24.90 per hour for a two-bedroom home and $20.40 per hour for a one-bedroom rental. • PepsiCo plans to sell its Tropicana and other juice brands in North America to French private equity firm PAI Partners for $3.3 billion as it looks to simplify its product range and move away from high-sugar drinks., reported Reuters. PepsiCo will keep a 39 percent stake in the new joint venture and have exclusive U.S. distribution rights for the brands. • A new study by B2B ecommerce platform Subscribbe found that 72 percent of Britain residents
would prefer to live close to a convenience
store than a pub (48 percent), park (63 percent) or a supermarket (57 percent). • Utah’s alcohol control authority reported over $517 million in liquor sales last year, setting a new record even in a global pandemic, reported Fox 13 Now. The numbers show that people didn’t stop buying alcohol when bars and restaurants were closed in the COVID-19 pandemic. • Same-day delivery giant Instacart and automation specialist Fabric have partnered to provide U.S. and Canadian food retailers with microfulfillment centers, reported Supermarket News. The facilities will use both robotic software and front-end e-commerce technology to accelerate and facilitate online
grocery orders placed through the Instacart
Marketplace or through a retailer’s branded Instacart e-commerce site. • The holiday season is typically a time when retailers fill seasonal posts with people in need of extra cash, but this year
merchants are going into the season shorthanded and scrambling to fill vacant posts
in a tight labor market, reported the Dallas Morning News. Turnover rates are soaring even as wage rates rise, and the number of job seekers is down 10 percent from pre-pandemic levels, while job vacancies have grown by nearly 70 percent. •
QR codes have emerged as a permanent tech fixture from the coronavirus pandem-
ic, reported the New York Times. Restaurants have adopted them, retailers including CVS and Foot Locker have added them to checkout registers, and marketers have splashed them all over retail packaging, direct mail, billboards and TV advertisements. • U.S. fossil fuel consumption—including petroleum, natural gas, and coal—fell
by 9 percent in 2020 compared to the prior
year, the lowest level since 1991, according to the U.S. Energy Information Administration. Economic responses to the COVID-19 pandemic in 2020, including a 15 percent decrease in energy consumption in the U.S. transportation sector,
store shoppers were on government assistance of some kind, up from 25 percent pre-COVID. Ten percent of these shoppers were unemployed in September of 2020, and that number slightly increased in March of 2021. Selling to shoppers in deep recovery mode requires a different strategy than the typical “pent-up demand” marketing narrative. This shopper may be trying to resume normally after a time of deep economic struggle and may need affordable treats instead of splurges, value instead of premium experiences. • Travel Reduction: Fifteen percent of c-store shoppers stopped going to work during COVID, a massive reduction in trip frequency as 90 percent of U.S. c-store shoppers typically drive for their commute. About half of the shoppers that stopped going to work anticipate resuming their normal commute, but almost 10 percent of pre-COVID c-store shoppers may permanently be driving less often. As a result, brands must reconsider campaign messaging for these shoppers who kept working out of home through the pandemic. • Anticipated Rebound: By a near 2:1 margin, shoppers that anticipated changing their post-pandemic behavior in con-
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NCASEF HIGHLIGHTS
had worked more shifts than they typically work during the last 60-90 days. Nearly 50 percent reported they (or a designee) had worked at least 10 overnight shifts during the last 60 days because they didn’t have enough staff.
Further survey results show:
• Just 20 percent of respondents said they are able to offer a competitive wage to their employees based on their current contractual gross profit split with 7-Eleven, Inc. The company’s franchise agreement requires franchisees pay a graduated gross profit split in exchange for their right to operate. For some franchisees, the portion of the gross profit split, or royalty, can be greater than 59 percent. • Ninety-two percent of respondents said they had increased their hourly pay rate over the last year and 89 percent said they have raised their hourly pay rate beyond what is mandated by their state or local minimum wage.
Yet, 97 percent say they have had trouble staffing their store during that same time. • Ninety-six percent said it has become more difficult to staff their store just over the past 60-90 days. Ninety percent of respondents said they have lowered their standards for new hires because of the state of the labor market.
The National Coalition survey also asked franchisees if they are currently taking advantage of the recruitment tools 7-Eleven has made available to franchise owners. Ninety percent of respondents said they are “utilizing the recruitment tools such as Hire Right, which 7-Eleven provides.” “Ninety-seven “These tools are helpful, but franchisees are still being forced to raise wages in order to find and retain percent of respon- high-caliber workers. Unfortunately, many franchidents said they have had sees can’t afford to compete with other employtrouble staffing their ers,” Singh said. General Counsel Eric H. Karp said this store over the survey shows franchisees are being squeezed last year.” by the staffing crisis and the terms of their agreement. “7-Eleven could help its franchisees first by sharing with us their extensive data on franchisee profitability in general, and overnight profitability and employee expense in particular. Then the corporation needs to agree to hold a collaborative and amicable meeting to find solutions to these intractable issues.” With the arrival of summer and fewer coronavirus mandates, more customers will be coming into 7-Eleven stores and other retailers. The National Coalition says its franchisees always want to offer excellent service and keep up with the company’s new initiatives, like fresh food, but are struggling without reliable, trained associates in place. Franchisees face the prospect of reducing their already shrinking profits to “FRANCHISEES ALWAYS WANT TO OFFER EXCELLENT SERsupport higher labor costs—even as their store-level operating expenses are increasing. VICE AND KEEP UP WITH THE COMPANY’S NEW INITIA- “We hope the Federal Trade Commission is taking note TIVES, BUT ARE STRUGGLING WITHOUT RELIABLE, TRAINED of the heavy-handed way SEI is handling this situation with its ASSOCIATES IN PLACE.” franchise owners as part of its review of the Franchise Rule,” said NCASEF Executive Vice Chair Michael Jorgensen.
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venience stores anticipated visiting the stores more often. With half of all c-store shoppers already visiting the store once a week or more, this creates a dependency upon high frequency shoppers. Therefore, to be most effective, brands should focus on engaging and positively disrupting a deeply habitual shopping trip and ensure value is stronger for regular, not occasional, shoppers.
Employers Offering Hefty Signing Bonuses
As U.S. employers’ search for hires increases in urgency—especially in the manufacturing, logistics, healthcare and food-service industries—truck drivers, hotel cleaners and warehouse workers are being offered signing bonuses of hundreds and even thousands of dollars, reported the Wall Street Journal. Nearly 20 percent of all jobs posted on job search site ZipRecruiter offer a signing bonus, up from 2 percent of jobs advertised on the job search site in March. The states with the highest shares of job listings that include a signing bonus are Iowa, Missouri, Vermont, Wyoming and Arkansas. Hiring bonus offers start at $500 and quickly rise from there. Job postings across sectors show that a $1,000 hiring bonus is quickly becoming table stakes in recruiting hourly workers who make between $16.50 and $25 an hour.
Employers in the U.S. face an interesting challenge ahead—how to fill nearly 10 million job openings with about a million fewer workers than there are positions available, reported CNBC. The Department of Labor recently stated that there are some 8.7 million potential workers who have been looking for jobs and are counted among the unemployed. At the same time, job placement site Indeed estimates there are about 9.8 million job vacancies as of July 16. Companies have been using a variety of techniques, including signing bonuses, higher salaries and flexible working arrangements, to entice people. That likely will have to continue as the COVID-19 pandemic changes the jobs market, perhaps permanently, the article states.
A survey from Gallagher shows the extent to which employers are willing to go to entice workers in the pandemic era. One such enticement: 19 percent said they are offering pet insurance, a perk that is expected to rise to 27 percent of companies in the next two years. They’re also providing discount programs, legal services and identity theft protection, though 71 percent of respondents said medical and pharmacy benefits remain atop the most important added benefits they’re offering.
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Legislative Update
Several Cities & States Raise Their Minimum Wage
Minimum wage workers in various parts of the country got a pay increase on July 1, the first day of the new fiscal year for most state and local governments, reported The Hill. The pay raises came just months after Congress failed to raise the $7.25 federal minimum wage to $15. Here are the states and major cities where higher wages kicked in:
STATES
• Nevada—The state’s minimum wage rose from $8 to $8.75 for workers who receive health benefits through their employer.
Those without benefits now receive a minimum of $9.75 an hour, up from $9. Similar pay increases will continue for the next three years, when the minimum wage will hit $11. • New York—Fast food workers outside of New York City saw their pay increase 50 cents an hour, to $15. The pay raise matches the current rate for comparable workers in New York City. • Oregon—The state’s minimum wage rose to $12.75, an increase of 75 cents.
CITIES
• Berkeley, California—The minimum wage increased 25 cents, to $16.32. • Chicago, Illinois—Employers with fewer than 21 workers now pay a minimum of $14 per hour, while those with more employees pay at least $15 an hour.
Workers making tips now receive a minimum of $8.40 an hour, or $9 if there are 21 or more workers at the location. • Los Angeles, California—Businesses with fewer than 25 employees increased their minimum wage by 25 cents, to $15.25. • Minneapolis, Minnesota—Small businesses with less than 100 employees now have to pay their workers at least $12.50 an hour, an increase of 75 cents from the previous wage.
Workers at larger businesses saw hourly pay increase to at least $14.25, up from $13.25. • Portland, Oregon—Employers in counties within the Portland metro area now pay their workers at least $14 an hour, compared with the previous rate of $13.25. Workers in “nonurban counties” saw an increase of 50 cents an hour, to $12.50. • Saint Paul, Minnesota—The city raised wages by $2.50 an hour, from $12.50 to $15.00, for workers at businesses with over 10,001
employees. Employers with more than 101 workers increased wages by $1 an hour, to $12.50. Small businesses with six or more employees raised their minimum wage from $10 to $11, while smaller employers increased wages by 75 cents, to $10. • San Francisco, California—The city’s minimum wage increased by 25 cents, from $16.07 to $16.32. • Washington, D.C.—The District of Columbia increased its minimum wage by 20 cents to $15.20. The annual increase was indexed to the cost of living.
Delaware Raises Minimum Wage To $15
Delaware Governor John Carney recently signed a bill to raise the state minimum wage to $15 an hour, reported Nation’s Restaurant News. The Delaware minimum wage is currently $9.25 per hour and will increase incrementally over the next four years, starting with a raise to $10.50 on January 1, 2022, followed by $11.75 in 2023, $13.25 in 2024, and $15 in 2025. The state’s last minimum wage increase was in October 2019, an increase of $1 an hour from the $8.25 wage passed in 2015.
The Democrat-led state House voted along party lines in mid-June to give final approval to the bill, reported the Associated Press. Democrats approved the measure after defeating half a dozen Republican amendments, including proposals to allow small businesses and nonprofits to pay 85 percent of the minimum wage and to require the controller general’s office to submit annual reports regarding the fiscal impact of the wage increases on the state budget, and on the broader effects on the state economy. Democrats also rejected a proposal by one of their own party members to delay each of the annual wage increases for one year for businesses employing 20 or fewer workers. Legislative analysts estimate that the new law will cost taxpayers an additional $3.7 million in fiscal 2024 for state employee wages, not counting resulting salary and wage compression issues.
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continued from page 42 drove much of the decline. • Tyson Foods is requir-
ing all of its employees in the U.S. to be fully
vaccinated against the coronavirus, reported Axios. The move makes Tyson Foods the largest U.S. food company—with 139,000 team members—to require vaccinations among all its employees. • Pep-
siCo recently reported that its quarterly net
sales surged 20.5 percent year-over-year to $19.22 billion as restaurant and other food service demand for its drinks returned, reported CNBC. • Dunkin’ is scaling back its relationship with Beyond Meat, limiting the availability of its Beyond Breakfast Sausage sandwich to just 10 states, reported PYMNTS.com. The apparent unprofitability of the partnership suggests that, despite both the growing market for plant-based options and the trendiness of the category, alternative proteins are not a guaranteed money maker. • Walgreens said makeup, passport photos and COVID vaccines drove store traffic and sales in the fiscal third quarter, reported CNBC. The drugstore chain said sales in the photo department rose 54 percent and sales of beauty merchandise rose about 15 percent compared with the year-ago quarter. The company has administered upwards of 25 million vaccines, with about 17 million given in the three-month period. • Lottery mobile app Jackpocket has partnered with Circle K to bring “21st century lottery play” to over 1,300 Circle K stores across Arkansas, Colorado, New Hampshire, New York, Ohio, and Texas, reaching a potential of over 1.1 million new customers a day. Through this partnership, Jackpocket offers will be deployed across a variety of Circle K channels. • Connecticut recently became the 19th state to legalize marijuana, reported the Journal Inquirer. Under the law, people older than 21 can possess up to 1.5 ounces of marijuana on their person and no more than 5 ounces in their homes or locked in car trunks or glove boxes. •
McDonald’s is requiring that all its customers
and staff wear masks again inside its U.S. restaurants in areas with high or substantial COVID-19 transmission, regardless of whether they are vaccinated or not, reported Reuters. • New research from IHS Markit shows that the average age of
cars and light trucks in operation in the U.S.
has risen to 12.1 years this year, increasing by nearly 2 months during 2020 and elevated by the COVID-19 pandemic. The increase in average age will further drive vehicle maintenance opportunities from an increasingly aged vehicle fleet, according to the report. • Home Depot is using Bluetooth technology to stop shoplifters from taking power tools without turning its stores into “armed
Legislative Update
Joint Employer Rule Overturned
The U.S. Department of Labor (DOL) recently released a new rule that rescinds the Trump Administration’s “joint-employer” rule, reported NACS Online. With publication in the July 30 issue of the Federal Register, the rescission will become official in 60 days, according to the article. In early 2020, the Trump Administration issued a formal rule, supported by NACS and much of the business community, that replaced guidance from the Obama Administration on how the DOL would determine joint-employment relationships. That determination is often used as the basis for liability under employment law.
The Obama Administration’s guidance had relied on an “indirect control” standard to establish that two employers were “joint” employers and could be held liable for labor violations relating to an employee. The Trump DOL wrote a formal rule requiring that one employer must have and exert direct control of the employment of a worker to be held jointly liable. In late September, the DOL will revert back to following the Obama Administration guidance in making such determinations, a scenario under which it will be much easier for one employer to be found jointly liable for potential labor violations of another employer. Based on this change, NACS urges convenience retailers to take a close look
at their contractual relationships and consult with a labor attorney to determine if they may have exposure to possible labor related lawsuits once this rule is formally rescinded. In particular, relationships including those in which suppliers stock shelves, complete tasks such as cleaning and maintenance and or are part of other similar contracts with other companies may merit closer examination. Washington, D.C. Bans Flavored Tobacco Sales Washington, D.C. has officially outlawed the sale of flavored tobacco products and menthol cigarettes across the city, reported WTOP.com. Mayor Muriel Bowser issued a statement after signing the bill, which was passed by the D.C. Council in June, stating, “Today, we take a hugely impactful step to reducing tobacco initiation and addiction in Washington, D.C.” However, critics are worried about the negative impact on young people, who are generally targeted by companies that sell flavored tobacco, as well as communities of color. During the June “The DOL has rescinded the Trump Administration’s ‘joint-employer’ rule, making it easier for one employer to be found jointly liable for potential labor violations of another employer.” 29 legislative session, in which the D.C. Council approved the ban, one Council member was especially worried about the addition of the menthol cigarette portion of the law and predicted it could lead to a black market that would shape enforcement by drawing in police. Other critics said the new law, which bans the sale but not the possession of flavored tobacco, would drive customers to Maryland and Virginia for the products.
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Rutter’s Announces Minimum Wage Increase
Pennsylvania-based convenience store chain Rutter’s recently announced a third increase to their starting wage over the past 15 months, raising it to $15.00 per hour for field employees, reported WFMZ-TV 69 News. The retailer said it continues to commit to investing in their people, increasing field wages by 36 percent since April 2020. All Rutter’s Team Members will see a wage increase, company officials said, with fulltime team members earning over $30,000 per year. Rutter’s Store Managers can reportedly earn over $110,000 per year, and Restaurant Managers over $100,000 per year, with bonus. Rutter’s said it also offers other benefits, including multiple scholarship opportunities for employees, and their children, to continue their education.
In April 2020, Rutter’s announced additional hazard pay for store employees, with Team Members earning an extra $2 per hour and Store Managers earning an extra $100 per week. At the end of 2020, Rutter’s made the pay increase permanent, which totaled more than $6.5 million annually. With a second increase in May of 2021, Rutter’s added another $5 million to wages annually.
Target Front-Line Workers Receive Another Bonus
Target once again paid front-line employees a $200 bonus to thank them for their work over the past few months, reported the Star Tribune. In late July, the Minneapolis-based retailer announced the bonus would be awarded to full- and parttimeteam employees in Target stores and distribution centers as well as headquarters staff who support its customer and employee contact centers. The bonuses were paid out in August. This bonus, an investment of $75 million by Target, was the sixth paid to employees during the pandemic.
A report released last November by the Brookings Institution concluded that many of the nation’s top retail companies posted soaring profits last year, with an average of a 40 percent increase in profit. Pay for front-line workers increased an average of $1.11 per hour, or 10 percent, since the start of the pandemic. The only three companies out of the more than a dozen that the report analyzed that bucked this trend were Target, Best Buy and Home Depot, all of which the report said provided the most pandemic compensation to workers through “temporary pay increases, bonuses and permanent wage increases.” Last summer, Target permanently raised its starting wage for U.S. employees to $15 per hour. Best Buy later instituted the same increase.
Many Job Seekers Not In A Rush To Find Work
A new survey by the job-listing website Indeed finds that many job seekers don’t express a sense of urgency about finding a new job, but say they are likely to pick up the search for work in the months ahead. The vast majority of job seekers want a new job in the next three months, but even among those who say their job searches are urgent, more than 20 percent don’t want to start a new position immediately. Many unemployed workers say increased vaccination against coronavirus, shrinking savings, and the opening of schools in the fall will be key catalysts for stepping up their job searches.
continued from page 47 encampments,” reported Business Insider. The technology will keep the tools from working until they are activated at the point of sale. • Bitcoin Depot recently announced an exclusive international partnership with Circle K that spans across both the U.S. and Canada with over 700 Bitcoin ATMs in 30 states already installed. Bitcoin Depot ATMs are kiosks that enable users to exchange cash for cryptocurrency. Circle K is the first major retail chain to deploy Bitcoin ATMs within its stores. • Oklahoma-based convenience store chain QuikTrip recently reached a milestone with the opening of its 900th store, located in Corsicana, Texas, reported PetrolPlaza.com. The company is planning to embark into four more states — Tennessee, Arkansas, Alabama, and Colorado — within the next year. • Walmart plans to roll out robotics technology from Symbotic at 25 of its 42 distribution centers around the country, reported Winsight Grocery Business. The new system uses
high-speed robots to automate the tasks of
retrieval, sorting and storing, as well as to build customized pallets that will make unloading and stocking easier and more efficient. • Almost 90 percent of all beer, wine and spirits purchases in the last year were made in-store, and that number is expected to rise post-pandemic, according to new research by ChaseDesign. Customers still prefer shopping in-store vs. online because they enjoy being in control of their experience and want the ability to browse, with nearly 40 percent saying they only purchase alcohol in-store. • According to DoorDash’s second annual mid-year Deep Dish Report, snacking orders are more popular in 2021 with an order increase in items such as glazed donuts (501 percent increase), sweet tea (284 percent increase) and sour cream and cheddar potato chips (112 percent increase). •Dollar General recently hired its first chief medical officer and will add products such as cold and cough medication and dental supplies to shelves as it aims to become a health-care destination, reported CNBC. The company’s CEO said its new push was inspired by customers who said they want more convenient and affordable health-care products and services. • A restaurant in Stockton, California is using a robot helper to serve customers as it struggles to hire workers amid the U.S. labor shortage, reported Business Insider. The robot, named Matradee, is capable of opening kitchen doors, uses LiDAR to maneuver and detect its surroundings up to 20 feet, and is equipped to carry up to four trays of food and dishes. • President Joe Biden recently signed an Executive Order that sets an am-
bitious new target to make half of all new ve-
hicles sold in 2030 zero-emissions vehicles, in-
Coronavirus is a major factor keeping unemployed workers from stepping up their search activity, the survey reveals. Among the unemployed, concern about COVID-19 is the most commonly cited reason for a lack of urgency in looking for work. In the eyes of many job seekers, vaccination against the virus—for themselves, family members, coworkers, and customers—is a key milestone to be reached before they will be ready for a new job.
What’s more, unemployed workers seem more patient than they otherwise might have been thanks to the financial cushions of savings, employed spouses, and enhanced unemployment insurance (UI) benefits. Care responsibilities at home are also a big impediment to more intense job search. Thus, the widespread return of in-person schooling in the fall may spur greater intensity in the job hunt.
McDonald’s Owners Up Perks To Lure Workers
McDonald’s franchisees aim to boost hourly pay, give workers paid time off and help cover tuition costs to attract enough workers to run their businesses, reported Fox Business. McDonald’s corporate parent said it is making a multimillion-dollar investment to back the franchisee efforts. Franchisees own 95 percent of the chain’s roughly 13,450 U.S. stores. McDonald’s, one of the largest U.S. private employers with around 800,000 people working in the chain’s restaurants, is closely watched by others in the industry for its moves on pay. McDonald’s in May said it would bump up starting pay in its corporate-owned restaurants to $11 to $17 an hour and said it would keep assessing wages to be competitive.
McDonald’s franchisees last year began evaluating the pay and benefits that operators currently provide workers to figure out what may need improvement. They also surveyed current McDonald’s restaurant employees about what they’d like to see in compensation. More than 5,000 McDonald’s workers and managers participated, and franchisees found that their employees gave priority to a range of possible additional benefits, spanning enhanced pay to more workplace flexibility. After discussions throughout the year, franchisee leaders in June agreed to help boost training, workplace flexibility, pay and benefits across markets.
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More Consumers Brewing Coffee At Home
Last year, consumers drank approximately 44.5 billion servings of coffee, spent $2 billion on coffee makers and accessories for in-home brewing, and made 6.3 billion visits to order coffee at foodservice outlets, according to a new report by The NPD Group. The study reveals that before the pandemic, consumers sourced about 73 percent of coffee servings from home and 27 percent from foodservice. The split between at-home and away-from-home coffee consumption became 81 percent from home and 19 percent from foodservice during the pandemic. With fewer opportunities to visit their favorite coffee shop, consumers re-created the gourmet coffee experience in their homes. Sales of espresso machines, French presses, and cold brew makers grew by double-digits in the year ending May 2021 compared to the same period a year ago. Coffee accessories, like temperature-controlled mugs and milk frother wands, also experienced double-digit growth. Sales of frothers, for example, increased by 120 percent this May compared to a year ago.
The NPD Group study also found that lockdowns and restaurant restrictions during the pandemic did impact coffee servings ordered at U.S. restaurants and foodservice outlets. In the year ending May 2021, coffee servings ordered at commercial foodservice declined by 7 percent from a year ago, and for a pre-pandemic view, it decreased by 11 percent from two years ago. Consumers also cut down on visits to their favorite coffee house and gourmet coffee chain. Visits to these types of outlets declined by 6 percent in the period compared to a year ago, and 8 percent from two years ago. Still, coffee shops, independent and chains, have been among the strongest performing restaurant channels over the long term, and as the country emerges from the pandemic, visits improve.
Get On The Avanti Mailing List!
Are you a franchisee and would like to receive your own copy of Avanti—The Voice of 7-Eleven Franchisees? You can get on our mailing list by sending a request to avantimag@ncasef.com with your name and store address, and we’ll be sure to include you in future mailings.
SEI TO OPEN STORES IN MYRTLE BEACH, S.C.
7-Eleven is moving into the Myrtle Beach, South Carolina market with at least three new stores and the company’s recent acquisition of the Speedway chain of convenience stores, reported The Sun News. There are nearly 20 Speedway stores combined in Horry and Georgetown counties, and there are currently no 7-Eleven stores in Horry County. The three new locations that are either under construction or are scheduled to soon be built are located in Murrells Inlet, in Conway, and in Myrtle Beach. It is unclear if the area Speedway stores will be rebranded with the 7-Eleven name and business model.
NEW STORE FEATURES LAREDO TACO COMPANY & RAISE THE ROOST
SEI recently debuted Tennessee’s first new-build store in the town of Murfreesboro, south of Nashville, and it is the very first to feature the company’s two most popular restaurant concepts—the Laredo Taco Company and Raise the Roost Chicken and Biscuits—under just one roof. Additionally, the opening marks the expansion of 7-Eleven’s footprint in the state in a big way and means the creation of new jobs—about 40 full- and part-time employees per location. The Murfreesboro location is one of many stores opening in the greater Nashville area in 2021, five of which will have one or more onsite restaurants. While 7-Eleven operates more than 40 stores in Tennessee, seven with Laredo Taco Company restaurants, the Murfreesboro store houses the state’s first Raise the Roost. Both restaurants are set side-by-side inside the Murfreesboro store, with separate ordering counters and shared indoor and outdoor seating.
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SEI UNVEILS ALCOHOL DELIVERY SERVICE
MOBILE CHECKOUT FEATURE EXPANDED
SEI recently announced that it has expanded its new Mobile Checkout contactless shopping solution to an additional 2,500+ stores across the U.S. Using the 7-Eleven app, customers can quickly scan items and pay for purchases without standing in a checkout line. The company said Mobile Checkout is now available in more than 3,000 participating 7-Eleven stores in 32 states including Washington, D.C. As an incentive to try Mobile Checkout, for a limited time, 7-Eleven is offering 10x the rewards points for every purchase made using the new feature in the app.
SEI said 7-Eleven was the first convenience store chain to develop proprietary technology for a full frictionless shopping experience from start to finish. Mobile Checkout works on both Android and
iOS devices and is available for most 7-Eleven merchandise that has a bar code. Some items still require cashier assistance, such as financial services and age-verified products (alcohol, tobacco and lottery tickets). The company plans to expand Mobile Checkout to all U.S. stores by the end of 2022. SEI announced that it has teamed up with Minibar Delivery, known for their on-demand alcohol delivery service, to bring beer and wine to the doorsteps of adult residents in select markets. The collaboration will kick off in Florida, Texas, and Virgin“Mobile ia, where approximately
Checkout has been 600 stores are participatexpanded to an additional ing in the pilot launch. The stores are primarily 2,500+ stores across servicing the cities of Orthe U.S.” lando, Tampa, Fort Myers, Miami, San Antonio, Dallas, Austin, Fort Worth, Virginia Beach, Richmond, Norfolk and Alexandria, the company said. The beverage-centric delivery service has plans to expand to additional 7-Eleven markets later this year. Customers can log in to Minibar Delivery’s app or
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website (minibardelivery.com) and choose from 7-Eleven’s wide range of wine and beer to be delivered in 30-60 minutes. As a welcome offer, customers will receive $7.11 off of their first Minibar Delivery order from 7-Eleven, by entering the promo code 7ELEVEN at checkout. 7-Eleven’s range of beer and wine varies from store to store and includes national brands as well as the company’s own wine and beer portfolio.
WHERE NO SLURPEE HAS GONE BEFORE HOT BEVERAGES TAKE CUSTOMERS ON A FLAVOR TRIP
A 7-Eleven Slurpee was recently launched into space, SEI announced. The iconic beverage that’s been enjoyed by millions of Americans since 1966, was officially rocketed out of the earth’s atmosphere on August 10 from a 7-Eleven store in Michigan—the Slurpee capital of the U.S.—on a private space flight commissioned by SEI to celebrate its 94th birthday. Throughout the month of July 7-Eleven called on Slurpee drink lovers everywhere to choose the space-bound flavor. Each Slurpee drink ordered via 7-Eleven Delivery was counted as a vote, and Coca-Cola was the big winner, with Cherry and Blue Raspberry as close runners-up. The mission was commemorated with a spaced-themed mural that will mark the launch location forever. Michigan locals and Slurpee fans alike can snap a selfie at the mural in Saginaw, Michigan at 10950 Gratiot Rd., or check out photos on 7-Eleven and Slurpee social channels. As the end of summer approached, participating 7-Eleven stores began offering a mini-vacation for customers’ taste buds with two limited-time hot beverages—coconut coffee and s’mores hot cocoa. Coconut coffee has become a seasonal summertime favorite at 7-Eleven stores, bringing a taste of the tropics to a freshly brewed morning wake-up cup or an all-day treat. The sweet, creamy, and coconutty flavored brew is made with 100 percent Arabica beans
“A Slurpee was recently launched into and offers up toasty light-roasted notes. Those looking for a space from a 7-Eleven store mountaintop beverin Michigan to celebrate age experience can 7-Eleven’s 94th indulge in the decabirthday.” dent s’mores hot cocoa, featuring a blend of rich hot chocolate, sweet vanilla, marshmallow and golden graham flavors. These limited time beverages have unique and quality flavors, but at the cost of any other 7-Eleven hot beverage.
NEW SUMMERTIME SLURPEES
SEI featured new fruity Slurpee flavors this summer to help customers beat the heat. Customers were able to grab each of the new options—Blueberry Lemonade Bliss, Pineapple Whip and Peach Perfect—for just $1 in small stay-cold cup at participating stores. Here’s a closer look at the summery Slurpee drink lineup: • Blueberry Lemonade Bliss—The flavor of lemonade with the sweet and sour taste of berry, this drink is made with real sugar and real juice. • Pineapple Whip—This bright yellow Slurpee drink is a cool blend of pineapple and rich whipped cream flavors to offer a frozen tropical delight. • Peach Perfect—Peach Perfect is made with real juice, is perfectly peachy in every way and has a light, slightly tart, refreshing taste.
WING DEALS ON NATIONAL CHICKEN WING DAY
To celebrate National Chicken Wing Day on July 29, 7-Eleven offered buy one, get one free five-count bone-in wings via 7–Eleven Delivery found on the 7NOW delivery app and the 7–Eleven app. Participating 7-Eleven stores also offered a buy one, get one free offer on boneless chicken
wing skewers to 7Rewards loyalty members. Available in hot honey, sweet sriracha and classic breaded flavors, an order of eight wings usually costs $3. On National Chicken Wing Day, customers got double that—two skewers or 16 boneless wings— for $3. 7-Eleven’s chicken wings come in a wide variety of flavors and all come hot and ready to eat. New to the boneless lineup are the hot honey wings, which are basted with a honey chili glaze made of real honey, roasted garlic, and chili pepper for a sweet and spicy finish.
SOUR PATCH KIDS BRAND’S FIRST MYSTERY FLAVOR & SWEEPSTAKES
The Sour Patch Kids brand introduced a new flavor to 7-Eleven stores this summer, but they didn’t disclose what it is, instead leaving it up to customers to guess the new “sour, then sweet” mystery flavor in the Sour Patch Kids Sweepstakes and Instant Win Game. A winning guess could be worth $50,000 or one of almost 200 other prizes—including a camera, tablet, mini drone and a detective pack to solve the next big case. While the mystery flavor could be found in mixed flavor packages elsewhere, 7-Eleven was the only place to score a Mystery Kids flavor-only package of Sour Patch Kids candy.
The Sour Patch Kids sweepstakes and instant win contest ran through August 15. Details on how to enter was available on the back of specially marked packages. Clues could be found on packages and were posted weekly on the Sour Patch Kid’s social channels—Twitter, Instagram, and Facebook. Mondelez International’s Sour Patch Kids is the No. 1 sour candy brand and a top-selling candy at 7-Eleven stores.
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INTRODUCING PLOT + POINT WINE
SEI introduced a new wine this summer: Plot + Point. Available in two popular varietals, chardonnay and pinot grigio, Plot + Point Wine is packaged in a Tetra Pak container featuring a screwcap top that makes it easy to pack and sip. The medium-bodied chardonnay has aromas of green apple, pineapple and a touch of oak and the pinot grigio varietal is light and crisp, with notes of citrus and flavors of ripe apple and juicy peach. Each California vintage has an ABV of 12 percent to 12.5 percent and is available at participating 7-Eleven stores. Customers can find 500 mL of Plot + Point Wine chilled in the cooler or on shelves.
Alternative packaging and non-breakable containers continue to grow in popularity over traditional wine bottles as wine drinkers look for convenient options for outdoor events and activities. The Plot + Point Tetra Pak packaging holds the equivalent of three glasses of wine. It’s easy and convenient to enjoy where
and when customers want, and the re-sealable container makes it simple to have one glass, store and save for later, or to enjoy in one sitting.
Plot + Point joins other wines in 7-Eleven’s wine portfolio, including: Sip Sip Hooray canned wine cocktails, Trojan Horse chardonnay and pinot grigio, Yosemite Road wine and Voyager Point cabernet sauvignon, red blend and sauvignon blanc wines.
$1 HOT DOGS ON NATIONAL HOT DOG DAY
Participating 7-Eleven stores celebrated National Hot Dog Day on July 21 by offering Quarter-Pound Big Bite hot dogs for just $1. And because July was National Hot Dog Month and when 7-Eleven stores sell the most hot dogs, the promotion went on the entire month of July. The 7-Eleven dollar deal was also good on any roller grill items, including taquitos and eggrolls. 7-Eleven sells more than 100 million hot dogs each year, making it one of the country’s top hot dog sellers. Customers know they can build the Big Bite of their dreams at 7-Eleven stores with a wide variety of condiments and toppings. Hot chili, melted nacho cheese, fresh onions, jalapeños and pico de gallo or classics like ketchup, mustard, relish, pickles, mayonnaise and sauerkraut are included with each Big Bite hot dog purchase.
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Southern California FOA Annual Trade Show
Pasadena Convention Center Pasadena, California December 8, 2021 Phone: 818-357-5985
San Diego FOA Christmas Party
Hilton San Diego/Del Mar Del Mar, California December 11, 2021 Phone: 619-713-2411
Delaware Valley FOA Trade Show
Caesars Atlantic City Atlantic City, New Jersey June 23, 2022 Phone: 215-771-6178
FOA Of Chicagoland Please Note: All meetings will be virtual until further notice. Phone: 847-343-7777
FOA Of Greater Los Angeles Phone: 619-726-9016
September 21, 2021—Monthly Meeting October 19, 2021—Monthly Meeting & Mini Trade Show
September 8, 2021 September 22, 2021 October 6, 2021 October 20, 2021 November 3, 2021 November 17, 2021 December 1, 2021 December 15, 2021
San Diego FOA Phone: 619-713-2411
September 8, 2021—General Safety Meeting September 16, 2021—Monthly Board Meeting October 21, 2021—Monthly Board Meeting
Southern California FOA Phone: 818-357-5985
September 15, 2021—Board of Directors Meeting and Members Meeting October 13, 2021—Board of Directors and Members Meeting
South Texas FOA Phone: 702-249-3301
AD INDEX
American Licorice ...................... 56 Anheuser-Busch...........................4 Aon Risk Management.........32, 33 Blue Bunny/Wells...................... 41 Campbell’s ................................. 26 Cima Confections ...................... 34 Coca-Cola......................................2 Danone...................................... 24 Diageo Guinness........................ 11 Electrolit .................................... 28 Kellogg’s .......................................9 King Palm.................................. 50 Living Essentials ........................ 45 Mars........................................... 59 McLane...................................... 31 Mondelez......................................7 Monster..................................... 13 R.J. Reynolds.............................. 55 Stryve ........................................ 36 Swedish Match .......................... 30 Swisher International.............3, 60 Tell Industries ............................ 27
continued from page 48 cluding battery electric, plug-in hybrid electric, or fuel cell electric vehicles. • From Memorial Day weekend to mid-July, the national gas price average increased 13 cents to $3.17, according to AAA. That is 98 cents more than the same time a year ago, but 41 cents cheaper than in July 2014, when the national average was last above $3 per gallon. • Walmart is piloting in-store chiropractic clinics at 10 of its locations, reported Progressive Grocer. The company has partnered with The Back Space to offer treatments for $25, as well as $65 monthly memberships. • Electrify America recently announced its “Boost Plan” to more than double its current electric vehicle charging infrastructure in the U.S. and Canada, with plans to have more than 1,800 fast charging stations and 10,000 individual chargers installed by the end of 2025. • A new report by Paytronix finds that 47 percent of restaurant customers use at least one loyalty program. The biggest growth is in those ordering from quick service restaurants, while table service restaurants are missing out on the opportunity to monetize 53 million customers because of their lack of loyalty programs, the report states. • According to a new consumer survey by Adtaxi, 63 percent of respon-
dents said they will prioritize shopping at small and local
businesses after the pandemic. This follows 74 percent of respondents who said they planned to shop small and local for the holiday season. • Picnic, a company that creates food preparation automation systems, recently raised $16.3 million in Series A funding to grow its operations, with investors noting the promise of this sort of kitchen automation technology amid the pressing concerns of the labor shortage, reported PYMNTS.com.
New Lone River Ranch Water
Lone River Ranch Water hard seltzer, born in far west Texas, was inspired by the West Texas cocktail—made with tequila, soda & lime juice— that has long been a staple in the area. The agave seltzer segment brings the popularity of tequila-style flavors to the insatiable hard seltzer consumer.
Lone River is a disruptive brand at the forefront of this emerging segment with the #1, #2 and #3 velocity Ranch Water items in U.S. Convenience. At only 80 calories, Lone River is rated #1 in taste by consumers on UnLone River has the #1, #2 and #3 tapped with real juice, agave nectar velocity Ranch Water and a clean finish. Supported by a items in U.S. Convenience. $20 million campaign with national TV, Lone River is an opportunity as big as the Texas sky. Available nationwide in September. 12pk Variety UPC: 860003623497 Origina1 6pk UPC: 860002858616 19.2oz single can UPC: 860002858630
Your customers will enjoy the fruity flavors of Monster Energy Reserve Watermelon and White Pineapple.
Receive one free fill case and one free acrylic display case with your first order of Feel Free.
Introducing The Monster Energy Reserve Line
Monster Energy is bringing popular fruit forward flavors to extend the core family:
Monster Energy Reserve
Watermelon is the perfect nostalgic summer flavor that can now be enjoyed all year long. The big difference between them and the competition, is they do flavors right—your customers will get an authentic taste of watermelon with Monster Energy.
Monster Energy Reserve White Pineapple is their take on the classic, tropical fruit flavor. White Pineapple has tons of different notes blended to give customers a truly unique and delicious flavor.
Feel Free All-Natural
Energy & Sales Booster
Feel Free by Botanic Tonics is an all-natural plant-based tonic featuring Kava and Kratom that offers pain relief, reduces stress, and provides a natural energy boost from plants, not caffeine. The other benefits of the two active ingredients include anxiety relief, mood enhancement, calming effect, and natural sleep aid. Available in a 2 oz glass bottle, Feel Free blends the earthy and spicy tones of the ancient tropical plants with refreshing pineapple juice, coconut and premium sweet stevia leaves.
Feel Free is performing very well in the over 1,000 7-Eleven stores that carry it— average per store sales are $298 per month with a 47.5 percent profit margin. Feel Free out-profits the #1 energy shot and energy drink combined in the stores that carry it. Botanic Tonics is promoting Feel Free with a special launch offer: one free fill case and one free acrylic display case to each new store. To place an order, please call 310-905-7886.
South Texas FOA Trade Show
South Texas FOA Annual Golf Tournament
San Diego FOA Vendor Appreciation Day
Alesmith Brewing Company San Diego, California October 13, 2021 Phone: 619-713-2411
FOA Of Chicagoland Virtual Holiday Trade Show
Venue TBD October 18-22, 2021 Phone: 847-343-7777
San Francisco/ Monterey Bay FOA Trade Show
South Nev/Las Vegas FOA Annual Trade Show
Rhodes Ranch Golf Club Las Vegas, Nevada October 21, 2021 Phone: 702-561-0311
FOA Of Chicagoland Holiday Party
Orange County National Golf Course Winter Garden, Florida November 5, 2021 Phone: 207-415-0924
Central Florida FOA 8th Annual Trade Show & Holiday Party
DoubleTree by Hilton Orlando @ SeaWorld Orlando, Florida November 6, 2021 Phone: 207-415-0924
Pacific Palm Resort City of Industry, California November 9, 2021 Phone: 818-357-5985
FOA Of Greater Los Angeles Holiday Party
Diamond Bar Center Diamond Bar, California December 4, 2021 Phone: 619-726-9016
San Francisco/Monterey Bay FOA Holiday Party
Venue TBD December 4, 2021 Phone: 510-791-2422
Midwest FOA Holiday Showcase
Venue TBD December 8, 2021 Phone: 847-971-9457
National Coalition Board meetings are scheduled one per quarter. Vendors interested in sponsoring a Board meeting should contact John Riggio, JR Planners, at 262-394-5518 or johnr@jrplanners.com. National Coalition Affiliate Meeting
National Coalition Board of Directors Meeting
National Coalition Board of Directors Meeting
NCASEF 46th Annual Convention & Trade Show
