Avanti July/August 2022

July/August 2022

T H E

V O I C E

O F

7 - E L E V E N

F R A N C H I S E E S

A Blowout Convention!

The Perfect Blend Of Business & Fun!

NOW AVAILABLE

COMING SOON IN SEPTEMBER

zero sugar

look

blueberry hibiscus flavored + other natural flavors, low calorie

a good source of vitamins b3, b6 & b12 © 2022 The Coca-Cola Company. “Coca-Cola” is a registered trademark of The Coca-Cola Company. © 2022 glacéau. “glacéau” and “vitaminwater” are registered trademarks of glacéau.

BURSTING WITH FLAVOR! FLAV AVOR! AV VOR!

RECOMMENDED NATIONALLY FMBs are the fastest growing segment at 7-Eleven +18%1

Smirnoff Ice SMASH is the FASTEST growing top 5 FMB Single Brand Family at 7-Eleven +28%2

SMIRNOFF ICE SMASH PINK LEMONADE 23.5oz Recommended in AZ, CA, ID, KY, NM, NV, OK, OR, PA, WA and 16oz Recommended in FL

0

82000

79896

PINK LEMONADE 23.5 OZ. CAN SLIN: 107746

5

0

82000

79902

3

PINK LEMONADE 16 OZ. CAN SLIN: 107747 1. 7-Eleven RIS Scan 52 weeks ending 7/24/22;

2. 7-Eleven RIS Scan 52 weeks ending 7/24/22

Puffy & Airy

TM

®

PLAYING FAVORITES — CAN REALLY —

PAY OFF

STOCK UP ON THE MOST POPULAR ZYN VARIETIES

Call 800-367-3677 or contact your Swedish Match Rep to learn more.

FOR TRADE PURPOSES ONLY ©2022 Swedish Match North America LLC

ELECTROLYTES AND NUTRIENTS FROM SIMPLE INGREDIENTS ORDER ALL 3 OFFICIAL PLANOGRAMED SKUS TODAY

THE ORIGINAL

PRESSED COCONUT

PINEAPPLE

SLIN 243505

SLIN 242911

SLIN 243913

UNIT UPC

UNIT UPC

UNIT UPC

HAND-PICKED ON THOUSANDS OF SMALL FARMS

GIVE, GROW, GUIDE In 2014, we founded the Vita Coco Project to support the communities from where we source our coconuts. Coconut farming communities in remote parts of the world face many challenges including weak infrastructure, outdated farming practices, and a shortage of schools.

With our Give, Grow, Guide philosophy, we work to help these coconut farmers increase their annual yield, diversify their crops, and grow sustainably. We also value the impact of education on a community.

We are committed to providing opportunities to future generations by investing in educational programs, like building new classrooms and awarding scholarships. Through these efforts, we hope to help positively impact 1 million people in these communities.

8

AVANTI JULY | AUGUST 2022

AVANTI JULY | AUGUST 2022

9

YTD Bud Light Seltzer® Family has maintained its #3 Volume and Dollar Share ® YTD Bud Light Seltzer Family has maintained its #3 Volume and Dollar Share since its launch in 2020.

(SOURCE: IRIlaunch May 2022) since its in 2020.

(SOURCE: IRI May 2022) The Bud Light Seltzer® brand has strength particularly in Singles; Bud Light ® Light Seltzer® brand has strength particularly in Singles; Bud Light The Bud Seltzer & Bud Light™ Platinum™ Seltzer combined had a 16.5 share of Seltzer Seltzer®in&7-Eleven Bud Light™ Platinum™ combined had a 16.5 share of Seltzer Singles in FY 2021 andSeltzer YTD are up to 17.6 share.

(SOURCE: 2022) SinglesIRI inMay 7-Eleven in FY 2021 and YTD are up to 17.6 share.

(SOURCE: IRI May 2022) Bud Light™ Platinum™ Seltzer Wild Berry 25 oz. is the #4 ranked Seltzer Bud Light™ Wild 25ROS oz. isYTD the is #4 ranked Seltzer single at 6.1Platinum™ share YTDSeltzer and +3.4 vs Berry YA. It’s 0.65 which is higher singleTruly at 6.1 share YTD and +3.4 vs YA. It’s ROS YTD is 0.65 which is higher than Wild Berries, Truly Pineapple and Truly Strawberry Lemonade than Truly Wild Berries, Truly Pineapple and Truly Strawberry Lemonade (#1-3 ranked Seltzer singles).

(SOURCE: IRI May 2022) (#1-3 ranked Seltzer singles).

(SOURCE: IRI May 2022)

Bud Light Seltzer® Black Cherry 25 oz. is a top selling Seltzer Single and YTD ® Bud Light Cherry 25 oz. is a top selling Seltzer Single and YTD its ROS hasSeltzer grown Black by +12%. its ROSIRIhas by +12%.

(SOURCE: Maygrown 2022) (SOURCE: IRI May 2022)

REASONS TO BELIEVE: REASONS TO BELIEVE: 6PK, 12OZ 6PK,Pack 12OZ Variety Variety Pack SLIN# 100050 SLIN# 100050

25OZ Wild25OZ Berry Wild Berry SLIN# 100010 SLIN# 100010

25OZ Blood25OZ Orange Blood SLIN#Orange TBD SLIN# TBD

High ALC./VOL. seltzer is growing 11% YOY. High ALC./VOL. is growing 11% YOY. (SOURCE: IRI TUS MULC seltzer Dec 2021 L52W) (SOURCE: IRI TUS MULC Dec 2021 L52W)

Wild Berry #1 ROS single in Cstore across the portfolio.

Wild Berry #1 ROS single in Cstore (SOURCE: Numerator shopper panel P52W 3/15/22)across the portfolio.

(SOURCE: Numerator shopper panel P52W 3/15/22)

Variety 12-pk optimal for food channels but has high sugar and calorie content Variety 12-pk optimal for food channels but has high sugar and calorie content that is ripe for disruption. that is ripe for disruption.

(SOURCE: IRI TUS MULC, L13W 5/22/22) (SOURCE: IRI TUS MULC, L13W 5/22/22)

ENJOY RESPONSIBLY ENJOY © 2022 RESPONSIBLY Anheuser-Busch, Bud Light™ Platinum™ Seltzer Wild Berry, Citrus, & Blood Orange, Hard Seltzer, St. Louis, MO 63118 © 2022 Anheuser-Busch, Bud Light™ Platinum™ Seltzer Wild Berry, Citrus, & Blood Orange, Hard Seltzer, St. Louis, MO 63118

APPLE SLICES SLICES

The bold, crisp taste taste of of apple apple meets the stats stats of of seltzer. seltzer.

Tastes great, any way way you you slice sliceit! it!

CIDER LARGE, MAINSTREAM MAINSTREAMCATEGORY CATEGORY CIDER CATEGORY IS A LARGE, RIPE RIPE FOR “SELTZER-FICATION” “SELTZER-FICATION”

“Cider” category known known for forstrong strongtaste tastecredentials, credentials, “Cider” is a $350MM category but calorie content contentthat thatisisripe ripefor fordisruption. disruption. but has has high sugar and calorie (SOURCE: IRI IRI Oct Oct 2021) 2021) (SOURCE:

FIRST MOVER IN THE CATEGORY FIRST CATEGORY –– APPLE APPLESLICES SLICES FLAVORS DROVE STRONG FLAVORS STRONG TASTE TASTE APPEAL APPEAL&& TRIAL INTEREST TRIAL

Consumers expressed excitement Consumers excitement about aboutapple-flavored apple-flavoredseltzers seltzers and the flavor combinations in the Apple and the combinations in the AppleSlices Slicespack. pack.

(SOURCE: Bud Bud Light Light Seltzer® Seltzer® Apple (SOURCE: Apple Slices Slices Concept Concept Test TestJan Jan2022) 2022)

APPLE SLICES DESIGN PERFORMED APPLE PERFORMED ON ONPAR PARWITH WITHHARD HARD SODA ACROSS ALL KEY KPIS WITH OUR LDA-29 SODA KPIS WITH OUR LDA-29TARGET TARGET

12PK, 12OZ 12PK, 12OZ Sleek Variety Pack Sleek Variety Pack SLIN# 101748 SLIN# 101748

® Apple Slices Slices tested tested on Apple on par par with with Bud Bud Light LightSeltzer Seltzer®Hard HardSoda Soda across all all key key KPIs KPIs including across including purchase purchase intent intentat atshelf, shelf,appeal, appeal, relevance, and and flavor. flavor. relevance, (SOURCE: Bud Light Seltzer® Apple Slices Pack Shelf Test Feb 2022) (SOURCE: Bud Light Seltzer® Apple Slices Pack Shelf Test Feb 2022)

10

AVANTI JULY | AUGUST 2022

ENJOY RESPONSIBLY ENJOY RESPONSIBLY © 2022 Anheuser-Busch, Bud Light Seltzer ® Apple Slices, Cranberry Apple, Crisp Apple, Strawberry Apple & Peach Mango Apple, © 2022 Anheuser-Busch, Bud Light Seltzer ® Apple Slices, Cranberry Apple, Crisp Apple, Strawberry Apple & Peach Mango Apple, IRC Beers, St. Louis, MO 63118 IRC Beers, St. Louis, MO 63118

May/June

2022

T H E

January/Fe

V O I C E

bruary 2022

O F

7 - E L E V E N

F R A N C H I S E E S

M ak in g Pr og re ss March/April

We’re On It Staying Fully Stocked Franchisee Exits

T H E

V O I C E

O F

V E N 7 - E L E

E E S C H I S F R A N

d Ch ar iti es An ity Se rv ic e

Improving The Sys For All Stakeh tem Su pp or tin g olders

Co m m un

isees Make A

7-Eleven Franch

Don’t Leave On The TableMoney

T H E

V O I C E

O F

7 - E L E V E N

F R A N C H I S E E S

2022

M ov in g Th e

Collaboration

Difference

Bran d Fo rw ar d

Among All Sta

keholders Is

Key

ities Our Commun Giving Back To Our Customers And hood Than A Neighbor Store We Are More nce Convenie Only Constant Change Is The s ing Shift Sand

Slip, Trip Trip,, And Fall Prevention The Power Of Partnership Second Qua Of Directors rter Board Meeting NCASEF Com mittee Reports

Back Injuries Overexertion/

Register Toda y!

NCASEF 46th Annual Convention & Trade Show Gaylord Natio nal Reso Convention Cent rt & er National Harb or, Maryland August 7-10, 2022

2 Affiliate The Spring 202 ctory Member Dire Page 34

Working Togethe r Will Benefit All 7-Eleven Stak eholders It’s All About Teamwork Workers’ Com pensation Insu rance Questions & Answers

THE VOICE OF 7-ELEVEN FRANCHISEES

A Convention To Remember!

Photos Of The Pages 16-20 NCASEF 46th Annual Convention & Trade Show

Contents A Wonderful Convention For All 7-Eleven Stakeholders

By Sukhi Sandhu, NCASEF Chairman

25 27

Keeping Our Stores Safe

By Joe Rossi, NCASEF Executive Vice Chair

DE

Reynolds Marketing Services Company

41 43

Third Quarter Board Of Directors Meeting

Worker’s Compensation Claims And Trends

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

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.

Franchisees Tee Off For A Worthy Cause At San Diego Charity Golf Tournament

Great Turnout For The Midwest FOA’s Charity Golf Outing & Trade Show NCASEF Welcomes Michigan & Detroit FOAs

53

7-Eleven Franchisees Visit Washington, D.C. For CFA Day

Member News............12

EN

PA RT M

Tobacco Legislation Update: Proposals To Ban Flavored Tobacco Products Are On the Rise

By Kyle May, Director External Relations—

32

NCASEF Raises $150k For CMN Hospitals

What Can Trends Tell Us About The Future Of The 7-Eleven Brand And System? 51

By Eric H. Karp, ESQ., General Counsel to NCASEF

31

14 28

TS

21

Bits & Pieces..........39

Legislative Update.......39 Join Your Local FOA....23 SEI News...................57 Vendor Focus.....61 FOA Board Meetings.....64 FOA Events.....................66 AVANTI JULY | AUGUST 2022

11

Member News

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

7-Eleven Recognized For Most U.S. Stores 7-Eleven is #1 on CSP’s Top 202 Convenience Stores 2022 list, which ranks the largest chains in the c-store industry by U.S. store count as of January 1, 2022. With 13,000 units under the 7-Eleven and Speedway banner—and some branded Stripes— 7-Eleven beat out #2 Alimentation Couche-Tard, which has 7,103 Circle-K stores in the U.S. Coming in a distant third is Casey’s General Stores with 2,422 stores. In 2021, 7-Eleven closed the largest acquisition in both its and the c-store channel’s history, adding approximately 3,800 Speedway stores in 36 states.

SEI Acquires A Delivery Startup SEI recently acquired Skipcart, a fouryear-old startup that developed a major network of drivers for fast delivery of restaurant food and other goods in the U.S., reported The Information, citing sources with knowledge of the deal.

Skipcart was founded in 2018 and was valued at $69 million two years ago. The company uses a network of more than 150,000 crowdsourced drivers to deliver food, beverage, retail, pharmaceutical and e-commerce products to customers in 37 U.S. states and parts of Canada.

The article states the move is significant because it could change how SEI does business with DoorDash, the

“SEI has acquired startup Skipcart, which uses a network of crowdsourced drivers to deliver food, beverage, retail, and other products.” food delivery app. Currently, DoorDash’s contractor-drivers deliver orders to 7-Eleven customers who shop through the DoorDash app or use 7-Eleven’s own apps to order food and alcohol for delivery, one of the sources said.

The other source with knowledge of the deal said 7-Eleven now intends to compete more directly with GoPuff and DoorDash but declined to elaborate.

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

Rehan Hashmi VICE CHAIRMAN 847-845-8477 • rehan711@yahoo.com

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

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.

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

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

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

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

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

The National Coalition Office

AVANTI JULY | AUGUST 2022

Joe Rossi

Nick Bhullar

continued on page 14

12

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

April J. Key GRAPHIC DESIGNER lirpayek@gmail.com

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

The Voice of 7-Eleven Franchisees July/August 2022 ©2022 National Coalition of Associations of 7-Eleven Franchisees Avanti Magazine is the registered trademark of The National Coalition of Associations of 7-Eleven Franchisees.

AVANTI JULY | AUGUST 2022

13

Member News continued from page 12

Speedway Raises Funds For CMN Hospitals Children’s Miracle Network Hospitals (CMN Hospitals) recently announced that the 2022 Speedway Miracle Tournament and Celebration Dinner raised nearly $3 million to support its member children’s

hospitals across the country. The annual event, hosted in June in Kettering, Ohio, by Speedway, part of the 7-Eleven, Inc. family

of brands, is one of the largest charity golf tournaments in the nation. Combined with in-store fundraising campaigns conducted

by Speedway—and through the generosity of customers, vendor partners and associates—the company has raised more than $150 million for Children’s Miracle Network Hospitals since 1991.

Each year, the highlight of the Speedway Miracle Tournament and Celebration Dinner is the Speedway Miracle Children, who are celebrated throughout the two days and serve as the face of their local member children’s hospital. More than 50 children and their families attended this year’s event, sharing their personal stories and highlighting the significant impact Speedway’s donations have

made in funding critical treatments and services at children’s hospitals. Nearly 600 participating golfers had the opportunity to meet and interact with them while out on the golf course, and the kids also were honored with an inspirational medal ceremony at the dinner.

Pump-To-Store Conversion Rates Drop As Gas Prices Climb While non-fuel trips to convenience stores have helped prop up in-store sales, the big opportunity loss for the c-store industry has been the continued poor “pump-to-store” conversion rates for fuel customers when gas prices are high,

continued on page 36

NCASEF Raises $150k For CMN Hospitals NCASEF recently donated $150,000 to Children’s Miracle Network Hospitals (CMN Hospitals) to help support the health and wellbeing of children across the country. “This year, NCASEF chose Children’s Miracle Network Hospitals as its charity of choice based on the organization’s commitment to the health of children with debilitating illnesses,” said NCASEF Chairman Sukhi Sandhu. “We are proud to support their work with a donation of $150,000 which will help move forward their mission to pediatric medicine and care.”

The donation was presented to CMN Hospitals on the final night of NCASEF’s 46th Annual Convention and Trade Show, held at the Gaylord National Resort in National Harbor, Maryland, August 7-10, and was the result of fundraising efforts that included a Charity Auction Night and Charity Golf Tournament during the event, as well as pledges from NCASEF’s vendor partners and donations from several of its member FOAs. “As a new board, we want to continue to provide help when needed. Many of us came from marginal backgrounds and can empathize with struggle and so, if NCASEF can provide a small or large relief, we want to exercise our ability to give back,” said Mr. Sandhu.

14

AVANTI JULY | AUGUST 2022

Change Kids’ Health.

Change the Future.

You can help children’s hospitals transform kids’ and families’ lives in the future. Your donations help Children’s Miracle Network Hospitals support the health of kids like Hallie Bea at local member hospitals.

With donations, Hallie Bea received the critical care she needed from her local children’s hospital to have a successful leg amputation allowing her to continue advocating for kids with cancer, whom she calls Hallie’s Heroes!

Give Today!

CMNHospitals.org

A Convention To Remember!

Our Heartfelt Appreciation To Our 2022 Convention Sponsors!

SUPREME

PRIME

PepsiCo Anheuser-Busch Coca-Cola

In Motion Design Bic USA Mondelez BlueTriton Brands Barbot Insurance Services Ghost Energy Perfetti Van Melle Swedish Match Mars Wrigley CROSSMARK Convenience Advantage Solutions Aon Risk Services Ecolab Fiji Water/Wonderful Pistachios Hershey Company Hostess Brands InComm Mini Melts of America Molson Coors MSIG NYSLIFE Pathwater RJ Reynolds SRP Companies Swisher International UpTime Energy Bayside Wireless Sierra Nevada Brewing Company

GRAND McLane Company Inc. MONSTER Energy Company Vixxo Corporation

PREMIUM Keurig Dr Pepper Heineken

ELITE Bon Appetit Acosta Sales & Marketing Constellation Brands Red Bull Bang Energy Juul Labs Mike’s Hard Lemonade

16

AVANTI JULY | AUGUST 2022

The Gaylord National Resort and Convention Center in National Harbor, Maryland was filled with 7-Eleven franchisees from August 7-10, who were there to partake in NCASEF’s biggest event of the year—the 46th Annual Convention and Trade Show. It was a stellar event, with over 2,500 attendees, including franchisees and their families, vendors, and invited SEI guests. The fourday convention was filled with everything for business and pleasure: informative standing-room-only seminars, social and dining events, a charity golf tournament, live top-notch entertainment, and a two-day trade show filled with hot new products and fantastic deals.

The convention kicked off with an opening night reception on Sunday the 7th, where franchisees and vendors had an opportunity to mix, mingle, and network. Monday’s featured events were a series of Washington, D.C. city tours with several options for franchisees to choose from, a charity golf tournament at the Westfields Golf Club benefitting the Children’s Miracle Network Hospitals (CMN Hospitals), and finally, an hours-long sunset dinner cruise along the Potomac River with great food, music, and dancing.

The Maryland Ballroom in the Gaylord National was filled to the brim with franchisees attending the Tuesday morning seminars, which began with the State of the Coalition Address conducted by the NCASEF officers. This was followed by the Government Affairs Seminar hosted by Keith Jones, SEI Vice President of Government Affairs, and his team, then an introduction to NCASEF’s charity of choice—CMN Hospitals—by the organization’s Vice President of Strategic Partnerships, Julie Breckenkamp.

Afterwards, the “Building the Brand Together” Trade Show was inaugurated with a ribbon-cutting ceremony and franchisees streamed into Prince George Hall to view the latest offering from the 94 exhibiting vendors.

Raffle tickets were given to franchisees who placed orders on the spot for cash prizes announced during the Grand Banquet.

Among the exhibitors was SEI with booths dedicated to Accounting, Asset Protection and In-House Maintenance and representatives present to answer franchisees questions and help address any store-specific issues. The day was capped off by the Charity Night Gala, which included silent and live auctions to raise funds for CMN Hospitals, dinner, DJ music, and entertainment sponsored by Anheuser-Busch—Rick Gerber, The Magic Guy. The morning sessions on the last day of the convention included the Legal Forum continued on page 18

AVANTI JULY | AUGUST 2022

17

continued from page 17

with NCASEF General Counsel Eric Karp and a seminar conducted by SEI Accounting, Logistics, and Asset Protection representatives. Franchisees then made their way back to Prince George Hall for the final day of the trade show.

In the evening, franchisees “dressed to the nines” to attend the closing night’s Grand Banquet, during which the winners of the trade show raffle were announced and a check for $125,000 (actual amount $150,000) was presented to CMN Hospitals, the result of the fundraising efforts that included the Charity Golf Tournament, the Charity Auction Night, pledges from NCASEF’s vendor partners, and donations from several FOAs. The convention then came to a splendid end with a concert by none other than renown Indian recording artist Yo Yo Honey Singh.

This event was truly about “Building the Brand Together,” as franchisees, vendors, and SEI came together under an umbrella of cooperation to demonstrate that 7-Eleven is a partnership between all three stakeholders.

Please mark your calendars and make plans to join us for the 47th Annual Convention and Trade Show at Caesars Palace in Las Vegas, July 30-August 2, 2023!

18

AVANTI JULY | AUGUST 2022

AVANTI JULY | AUGUST 2022

19

Make Plans To Join Us! The NCASEF 47th Annual Convention & Trade Show

20

AVANTI JULY | AUGUST 2022

Save the Date!

Caesars Palace

Las Vegas, NV

July 30-August 2, 2023

A Wonderful Convention For All 7-Eleven Stakeholders

BY SUKHI SANDHU, NCASEF CHAIRMAN

I can’t begin my article without first thanking everyone—franchisees, our valued vendor partners, and our invited SEI guests— for making our 46th Annual Convention and Trade Show a wildly successful event!

I am pleased to report that we had record attendance, and if the feedback I’ve received personally and have seen on NCASEF’s WhatsApp chat group are any indication, a great time was had by all.

A lot of hard work went on behind the scenes to make the convention as entertaining and full of business opportunities as possible.

Our NCASEF officers, the members of our Convention & Entertainment and Charity Golf Committees, not to mention our staff and volunteers, worked tirelessly to put this event together in the short period of time we had, and their diligence and perseverance paid off. To them I extend my most heartfelt gratitude.

family while keeping it a business-related event. The NCASEF convention has always been billed as a “business vacation” for our franchisees, but we wanted to make it as enticing as possible to attract even more attendees. We figured if we’re going to ask franchisees to leave their stores for four days—including additional travel days— then we should make it worth their time.

To that end, we offered discounted city tours of Washington, D.C., a sunset dinner cruise along the Potomac River with great food, music and dancing, entertainment during our Charity Night Gala in the form of Rick Gerber, The Magic Guy (courtesy of Anheuser-Busch), and of course, a live concert by famous Indian recording artist Yo Yo Honey Singh at our closing night’s Grand Banquet. Needless to say, the hotel ballroom on the final night was packed to the gills!

“On the business front, we created numerous opportunities for franchisees, vendors, and our invited SEI guests to socialize and network.” years not only to help raise more funds for our charity of choice—Children’s Miracle Network Hospitals—but also because it’s an event our vendor partners enjoy. Just to segue a bit, I’m pleased to announce that thanks to our Charity Golf Tournament, Charity Auction Night, pledges from our vendor partners, and donations from several FOAs, we managed to raise $150,000 for CMN Hospitals during the convention! I would like to thank you all for making that possible.

Moving along, we organized the two-day trade show so it would benefit franchisees and our exhibiting vendors.

Franchisees were able to view the latest products and hottest deals to fill their store shelves and grow their business, while vendors received mounds of orders and had access to the SEI Merchandising folks walking the trade show floor on the lookout for new products to add to 7-Eleven’s list of recommended items.

For our seminars, besides the annual State of the Coalition Address with the NCASEF officers and the Legal Forum with NCASEF General Counsel Eric Karp—both of which were very well attended—we had two sessions conducted by SEI representatives. One featured corporate folks from Accounting, Asset Protection and Logistics, and the other was hosted by SEI’s Government Affairs representatives. They all took questions from

“Our current vision is one of all 7-Eleven stakeholders working in unison for each other’s mutual benefit and for the good of the system, and this year’s convention theme truly encompassed it: Building the Brand Together.”

Every NCASEF convention has a theme which it is centered on, and that theme normally reflects the vision of the head table at the time. Our current vision is one of all 7-Eleven stakeholders working in unison for each other’s mutual benefit and for the good of the system, and this year’s convention theme truly encompassed it: Building the Brand Together. Franchisees, vendors, and SEI united during our four-day event to enhance our business and create opportunities that I hope will help make 7-Eleven more profitable for all partners.

Our mindset while organizing the convention was to make it fun for the entire

On the business front, we created numerous opportunities for franchisees, vendors, and our invited SEI guests to socialize and network. We brought back the golf outing for the first time in many

“A lot of hard work went on behind the scenes to make the convention as entertaining and full of business opportunities as possible.”

continued on page 23

AVANTI JULY | AUGUST 2022

21

PUT MORE IN YOUR POCKET WITH

POCKET PACKS NEW

DEAL! 2/$4 HOT FULLY FUNDED P8 P8 – SELLING POINT BASKET FEATURING

TRIDENT POCKET PACKS

TRIDENT Pocket Pack Original 28 Sticks SLIN# 142645

IN UNAIDED AWARENESS #1 GUM BRAND 1

ALL GUM PURCHASED AT 56% OF FRONT END/CHECKOUT 2

TRIDENT Pocket Pack Spearmint 28 Sticks SLIN# 141556

TRIDENT IS THE MOST EFFECTIVE BRAND ON DISPLAY 3 TRIDENT Pocket Pack Tropical Twist 28 Sticks SLIN# 141553 Source 1: US Brand Tracking Report, GFK, June ’21, Source 2: Shopper Track Survey – Convenience Channel Shoppers Gum vs Drug/Value – Past Year Base: Total Respondents Asked 1+ Products in Category Source 3: Nielsen Scantrack – Gum Category - Total US Convenience – L52 wks ending 10/30/21 *Shopper Track – Gum Category – Q1/Q2 2021. © Mondelēz International group

22

AVANTI JULY | AUGUST 2022

A Wonderful Convention For All 7-Eleven Stakeholders continued from page 21

“Thanks to our Charity Golf Tournament, Charity Auction Night, pledges from our vendor partners, and donations from several FOAs, we managed to raise $150,000 for CMN Hospitals during the convention!” the franchisee audience during and even go to ask questions, get assistance with store after their presentations. specific issues, or get information. Whether In fact, SEI had a significant presence it was about 7NOW, maintenance, or throughout the convention. We invited accounting, franchisees were able to engage with SEI department heads directly and have them because we felt it was important to their voices heard. give franchisees direct access to corporate higher-ups in order to get the channels of For their part, SEI was happy to do it. communication flowing again. So SEI not They said they had a great experience and only conducted two seminars, they also had “Whether it was about 7NOW, three booths at the trade maintenance, or accounting, s h ow — Ac c o u nt i n g , Asset Protection and In- franchisees were able to engage with House Maintenance— SEI department heads directly and where franchisees could have their voices heard.”

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”

thanked us for giving them the opportunity to attend the convention and for providing a platform for them to engage with franchisees directly. Many of these SEI representatives also attended our Board meeting preceding the convention, and our franchisor is committed to participate in more NCASEF events.

Overall, the convention was a smashing success. It was an informative, engaging, entertaining, business-building get-together that was rewarding for all stakeholders. I am confident that this has rejuvenated the bond between franchisees, SEI and vendors as we continue to grow and work together to resolve issues, increase sales and profits, and make 7-Eleven a stronger brand.

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

How do I join an FOA? 1.

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

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

6. Type in the amount of monthly dues as instructed per local FOA. 7.

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

8. Repeat Step 7.

9. Press the green submit icon.

AVANTI JULY | AUGUST 2022

23

24

AVANTI JULY | AUGUST 2022

Keeping Our Stores Safe

BY JOE ROSSI, NCASEF EXECUTIVE VICE CHAIR

As we come out of the pandemic and work to resolve the issues created by COVID— supply chain, delivery, labor, etc.—we now face a new set of challenges, and top among them is the sharp increase of crime in our stores. The news is filled with headlines of rampant crime being committed not only at 7-Elevens, but at mom-and-pop shops and even bigger retailers across the country. From flash mob robberies and wanton property destruction to assaults and murders, the proliferation of crime within the retail sector in the last year has been very disturbing. Some companies like Starbucks, Walgreens, and CVS have opted to cut their losses and shut down their locations in high crime areas.

Unfortunately, since our stores operate 24/7, they are popular targets for those with criminal intentions. Therefore, our priority must be to keep our employees, our customers, and ourselves as safe as possible if a crime occurs in our stores. Here are some steps you can take that can help.

Train and re-train your employees to NEVER chase a criminal outside the store or otherwise engage them. The best thing they can do is call the police and provide them with a description of the perpetrator.

Instruct your employees that if an armed robbery occurs, they should comply with the criminal’s demands and not resist. Give them the money and get them out of the store as quickly as possible. After the robber has left the store, they should lock the doors and notify the police. They should also be very careful not to touch anything the robber has touched so the police can extract their fingerprints.

Reiterate and reinforce keeping low cash levels in the registers, especially to your

“From flash mob robberies and wanton property destruction to assaults and murders, the proliferation of crime within the retail sector in the last year has been very disturbing.”

another 7-Eleven nearby because the other franchisees can lock their store doors immediately and be selective as to who they let in, particularly during the overnight hours.

Make sure you get on a regular cadence of repeating these safety tips to your employees every month or six weeks. Maybe set your calendars to remind you to have a conversation with your store associates again, or send out an email or text message to just to remind them, “Hey remember, keep your cash levels low at all times. Make

overnight employees. If a robber hits your store and there is an excessive amount of cash in the registers, then that criminal and others will believe all 7-Elevens have loads of money at hand. With our safe systems the way “If a shoplifter knows you or your they are today, there’s employees have noticed their really no reason to keep cash at a high presence in your store, it may help level. You can always disperse cash deter them from stealing.” if you have to make change for a $50 or $100. your drops. Let’s be safe.”

Shoplifting happens all the time, that’s a Periodically check that your security alarm known truth in the retail business. However, is working. Call up the alarm company, set a good way to discourage shoplifters is by a test, make sure the pendants are working, making eye contact with everyone who and make sure the buttons are working. If enters your store and greeting them, or at you have tracking devices for cigarettes, call least acknowledging them in some way. If them up and see if they are working when a shoplifter knows you or your employees you move the pack. That’ll help. You could have noticed their presence in your store, have some of this stuff in your store and you it may help deter them from stealing. Make just haven’t checked them in a while, and it sure you encourage this practice among your may turn out they’re not functioning. Those employees. alarms should be checked at least three times If you don’t belong to a local franchisee chat a year. group—whether it’s WhatsApp, Telegram, Lastly, get involved your local police Twitter, Facebook, or the like—then join department. Support any community events one. If one doesn’t exist in your area, create they may have, invite them to take their coffee it and invite neighboring franchisees to join. breaks at your store, and foster a relationship Should you have an incident in your store, with them. Let your local police know you’re after you’ve alerted police, you can then there for them as much as they’re there for report it to other franchisees via the chat you. group. This is the quickest way you can alert Until this crime wave abates, we must do each other of criminal activity all we can to keep our stores safe. Take care, in your area so precautions and be careful. can be taken. I and my “Train and re-train your fellow franchisees employees to NEVER chase a in Chicago do JOE ROSSI criminal outside the store or this, and it helps CAN BE REACHED AT 312-501-4337 or joer@ncasef.com prevent criminals otherwise engage them.” from hitting AVANTI JULY | AUGUST 2022

25

From the Store on Main, to the Nationwide Chain, McLane Has You Covered

For more than 127 years, McLane has been building our nationwide distribution network to fulfill the needs of businesses of all sizes. Whether you’re a single store, an emerging chain, or a nationwide operation, our world-class infrastructure, unrivaled buying power, and proven technology can be utilized to diversify your offerings and grow your business.

To learn more about McLane’s solutions for businesses of all sizes, visit mclanegrocery.com

FOODSERVICE

MERCHANDISING

PRIVATE LABEL

© 2022 McLane Company, Inc. All rights reserved.

TECHNOLOGY

What Can Trends Tell Us About The Future Of The 7-Eleven Brand And System?

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

Over the last several years we have noticed some pronounced trends in the nature and profile of the 7-Eleven system. A trend is nothing more than the general direction in which something is developing or changing.

We follow and analyze these trends because we hope and expect that they will give us some clue about the future.

In the investment world, trend analysis is grounded in the fact that what has happened in the past gives us an idea of what may happen next. For example, if a stock has been increasing, will it continue to increase?

The ultimate question is whether or not an existing trend will continue, will be reversed, or changed in some fashion.

Sir Isaac Newton was the first to define the universal laws of motion in the 17th century.

His general thesis was that an object in motion stays in motion with the same speed and in the same direction, unless acted upon by some other force. This principle, when applied to the business world, would lead to the general conclusion that trends will tend to continue absent some intervention.

Our analysis of publicly available documents discloses the following 16 trends: TRENDING UP 1. Franchised Store Closures—477 franchise stores closed in 2021, more than double the number of stores that closed the year before.

2. Franchisee to Franchisee Transfers— Franchisee to franchisee transfers, when one franchisee sells his or her store to another franchisee, increased from 200 in 2019, to 232 in 2020, to 283 in 2021, an increase of more than 40 percent in just two years.

3. Franchise Store Turnover Rates—We define franchisee turnovers as the sum of all

transfers, terminations, non-renewals, repurchases by the franchisor, and locations that ceased operations. The turnover rate in 2019 was just under 6 percent. The next year it rose to just under 7 percent and in 2021 exceeded 9 percent. This means that nearly one in 10 franchised locations changed hands in some form or fashion in 2021. For perspective, the turnover rate in 2011 was 2/10 of 1 percent.

4. The Number and Percentage of Stores with Gasoline—At the end of 2017, there were approximately 3,300 stores with gasoline. After the Sunoco acquisition in 2018, the percentage of stores with gasoline stood at just under 46 percent.

With the acquisition of the Speedway stores in 2021, the number of stores in the United Sates with gas rose to more than 62 percent at the end of that year, bringing the total number of stores with gasoline to approximately 8,100.

5. SEI Retail Cents Per Gallon (CPG) on Gas—Prior to the pandemic, SEI retail cents per gallon on gasoline rose from approximately 20 cents in 2015 to approximately 24 cents in 2019. It rose sharply in 2020 to 34.85 cents, 35.7 cents in 2021 and 40.8 cents in the first quarter of 2022. From 2015 to early 2022, that amounts to a 106 percent increase. SEI’s parent company explained to its investors that 2020 and 2021 were marked by very elevated CPG levels, as the trend was toward trying to secure profits.

6. SEI Gross Margin Dollars From Gasoline—The acquisitions noted above solidified SEI’s position as a gasoline company. SEI’s gross margin dollars from its gasoline business rose from $535 million in 2011 to $3.9 billion in 2021, an 8-fold increase.

“In the investment world, trend analysis is grounded in the fact that what has happened in the past gives us an idea of what may happen next.”

7. SEI Total Revenue—SEI’s total revenue in 2021 was $46.6 billion, triple its revenue in 2015, which was recorded at approximately $15 billion.

8. SEI Net Income—SEI earned total net income in 2021 of nearly $1.3 billion, more than double its earnings in 2017 and 600 percent of its earnings in 2012.

TRENDING DOWN 1. Number of Franchised Stores—The number of franchise stores rose steadily from 2010 to 7,474 in 2020, an increase over that period of time at nearly 50 percent. The number of franchised stores declined in both 2021 and in the first quarter of 2022, resulting in a net decline over that 15-month period of 42 stores.

2. Stores Sold to Franchisees—The number of stores sold to franchisees declined from 485 in 2016 to 315 in 2021, a drop of 35 percent.

3. Percentage of Franchised Stores—Due to some of the trends noted above, the percentage of the stores in the system that are franchised, including those operating under the Sunoco and Speedway brands, was approximately 71 percent at the end of 2021. In 2017, that total stood at 89 percent.

4. 4ercentage of SEI Revenue Derived from Franchisees—Due in part to the decline in the number and percentage of franchised stores and the increase in the number of company-owned stores resulting from the Sunoco and Speedway transactions, the percentage of total revenue derived by SEI from franchisee gross margin splits declined from 13.5 percent in 2015, to 9.5 percent in 2019 to just 5.7 percent in 2021.

5. Blended Merchandise Gross Margin—As noted in earlier articles, SEI no longer separately reports average merchandise gross margin for its franchised stores.

Blended gross margin of both franchised and company-owned stores stood at 36 percent in 2007 and has been largely on a downward trend since then, resulting in blended gross margins of 34.1 percent in continued on page 28

AVANTI JULY | AUGUST 2022

27

What Can Trends Tell Us About The Future Of The 7-Eleven Brand And System? continued from page 27

2020 and 34.2 percent in 2021. Blended gross margin for the first quarter of 2022 declined further to 33.1 percent, the lowest first quarter gross margin since at least 2016.

6. Same Store Merchandise Sales—Same store sales growth was approximately 9 percent for the fourth quarter of 2021, but declined to 5.7 percent in the first quarter of 2022 and declined further in April (4.7 percent), May (4.6 percent), June (3.2 percent) and July (3.1 percent).

7. Gasoline Sales Growth—Store gasoline sales increase was 42 percent in the second quarter of 2021 reflecting the impact of the Speedway acquisition. It then declined from approximately 26 percent in the fourth quarter of 2021, to 18.4 percent in the first quarter of 2022, and then further declined in April (14.2 percent) and May (7.6 percent).

8. SEI Parent Company “We are not in a position to predict whether Stock Performance— the trends outlined above will continue, but For the five-year period concerning as they are, every franchisee ending July 31, 2022, should take notice and draw whatever the total return on the conclusions they deem appropriate.” stock of SEI’s parent company was just 9.7 carefully monitor all publicly available filings percent, less than half the increase in in order to keep the franchisee community the consumer product index over the as informed as possible. We are not in a same period. By comparison it’s publicly position to predict whether the trends held competitors, Casey’s General Stores outlined above will continue, but concerning and the parent company of Circle K, as they are, every franchisee should take generated a total return of 98 percent and notice and draw whatever conclusions they 95 percent respectively, exceeding the deem appropriate.

S&P 500 index return of 82 percent.

CONCLUSION Not being privy to the internal deliberations of your franchisor or its parent company, or its long-term strategic outlook and planning, our next best alternative is to

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

Franchisees Tee Off For A Worthy Cause At San Diego Charity Golf Tournament It was a beautiful day for golfing as franchisees and vendors alike converged on the Rancho Bernardo Inn on July 13 to participate in the San Diego FOA’s 29th Annual Charity Golf Tournament benefitting the Warrior Foundation Freedom Station, which assists injured soldiers returning home from war. In all, 156 golfers hit the links that day to raise funds for this worthy organization. San Diego FOA members were by franchisees from the Greater Los Angeles, Southern California, and West Coast FOAs. The top two teams on the green that day were Monster Energy (first) and Anheuser-Busch (second).

• • • • • • • • 28

AleSmith Brewing Anheuser-Busch A Shoc Beverage Ballast Point Brewing BANG Energy Barbot Insurance Services Blue Triton Brands Boston Beer

AVANTI JULY | AUGUST 2022

• • • • • • • •

The golf tournament was followed by a banquet and raffle dinner in the Santiago & Courtyard Room of the Rancho Bernardo Inn, during which the San Diego FOA’s Golf Committee was presented with a special “Because of You” plaque by Warrior Foundation Freedom Station founder and CEO Sandy Lehmkuhler. The San Diego FOA would like to thank Anheuser-Busch for sponsoring the SABOR Mexican Grill taco cart, and all of the participating vendors for their continued support of the FOA and it’s activities:

Coca-Cola Constellation Brands Heineken USA Jiant Kombucha John Lenore McLane Company Mark Anthony Brands Monster Energy

• • • • • •

Pepsi Beverage Red Bull RNDC Sotoland Distribution SRP Companies Stratus Group PH Water

AVANTI JULY | AUGUST 2022

29

You have

the power to impact change.

Legislators around the country are consistently voting for policies that impact your livelihood. As a business owner, your voice matters in local, state, and federal issues – and we can ensure it is heard.

Scan the QR Code and take action now!

Own It Voice It created a portal to amplify your voice on the legislation and policies that have the biggest impact on your business.

Thousands of Trade Partners reached out to legislators in 2020 to enact change.

30

AVANTI JULY | AUGUST 2022

Tobacco Legislation Update: Proposals To Ban Flavored Tobacco Products Are On the Rise

BY KYLE MAY, DIRECTOR EXTERNAL RELATIONS— REYNOLDS MARKETING SERVICES COMPANY

Looking back, it is fair to say that the U.S. convenience channel faced many challenges during the first half of 2022, from macroeconomic pressures like threats of a bear market and a recession to rising gas prices, record-high inflation, and a resurgence of COVID-19 variants. The tobacco and

specific product formats like vapor. However, in a positive development, no flavor bans have been enacted at the state level this year. In November, California voters will cast their ballots on Proposition 31, which, if approved, will ban the sale of all flavored tobacco products statewide.

“Now more than ever, it is vital that you remain connected and engaged on these issues. Remember, your voice is the most important voice that legislators consider when reviewing these proposals.” nicotine industry was not immune to these pressures. Meanwhile, legislators across the country put added pressure on the category through the introduction of numerous restrictive proposals, and the FDA continues to propose policies that could have ramifications on convenience store owners.

Just this year, there have been 24 statelevel proposals that sought to ban the sale of menthol and other flavors in nicotine products. Those proposals varied from full categorical flavor bans that would apply across all product formats in some states, while others aimed to restrict flavors in

“In November, California voters will cast their ballots on Proposition 31, which, if approved, will ban the sale of all flavored tobacco products statewide.”

While the Golden State presents challenges to the industry, other states have also been busy with excise tax and nicotine cap proposals. Luckily, only one state, Indiana, passed any sort of significant excise tax legislation.

In Washington D.C., the federal government is advancing even more significant proposals. Just recently, the FDA closed a 90-day comment period on a proposed menthol cigarette ban. During that brief timeframe, more than 160,000 comments were submitted to the FDA, and nearly all were in opposition to the ban.

From here, the FDA will continue to work on this proposal but rest assured that we will fight for the rights of adult smokers. In addition, the FDA announced in June that it would pursue a very low nicotine cigarette proposal. Just like the proposed menthol ban, this proposal will also follow the legally mandated rulemaking process and we will use all available avenues to ensure that the perspectives of our industry and its stakeholders are heard.

As you can see, we are in turbulent waters. External pressures on the tobacco and nicotine category are at all-time highs.

Regulators like the FDA and legislators at the local, state, and federal levels continue to threaten the category. Now more than ever, it is vital that you remain connected

“Just this year, there have been 24 state-level proposals that sought to ban the sale of menthol and other flavors in nicotine products.” and engaged on these issues. Remember, your voice is the most important voice that legislators consider when reviewing these proposals. Silence, combined with tobacco control misinformation, breeds more and more aggressive action against the industry.

Together, we are the voices ofthousands of small businesses from sea to shining sea. Our ranks include firstgeneration Americans, individuals pursuing the American Dream, hardworking entrepreneurs, and every other piece that makes up the fabric of this great nation. Our voices are diverse, rational, and fair—and they deserve to be heard. We must work to create common sense solutions to these everexpanding and complex issues. Stand up for your business, and together we all excel. To make your voice heard, please sign up for Own It Voice It at https://ownitvoiceit.com/ trade-partners-survey/.

AVANTI JULY | AUGUST 2022

31

WORKER’S COMPENSATION CLAIMS AND TRENDS (THE MSIG EXPERIENCE)

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

MSIG in partnership with Aon provides worker’s compensation for almost 4,000 stores in over 30 states. To date, the claims experience in 2022 has improved as shown in this comparison to the same seven months in 2021.

There are many difficult-to-control variables in claims costs, which is why we focus on the type of injury frequency or cause. Reduce the frequency, and the costs will follow!

1. Slip and falls. This remains a frequent source of employee and customer injuries, and one of the more controllable risks.

2. Assaults. This fluctuates as #2 or #3 but is usually the highest cost, and frequently involves multiple parts of the body including mental health.

3. Overexertion or lifting. This is also high in frequency and can be a high-cost source, due to difficult to accommodate medical restrictions.

Year (as of 8/1) Count of Claims Cost of Claims 2022 2021

141 167

$1,795,743 $2,106,020

*cost of claims = paid + reserve amounts There are patterns in the type of injury and part of the body involved in the store injury claims. For over 10 years the patterns remain consistent with 2022 following this trend.

“There are many difficult-to-control variables in claims costs, which is why we focus on the type of injury frequency or cause. Reduce the frequency, and the costs will follow!”

2022 MSIG WC Claims by Injury Cause 45 40 35 30 25 20 15 10 5 0

42

$642,455

$700,000 36

$600,000

$559,083

$500,000

23

7

12

10

7

4

BURN CAUGHT IN

CUT

$400,000

OBJ. LIFTED

STRUCK AGNST

COST

“While insurance rates are driven by different conditions, insurance costs can be improved by preventing claims and then closely managing those that do occur.”

32

AVANTI JULY | AUGUST 2022

$200,000 $100,000

SLIP/FALL MISC. ASSAULT COUNT

$300,000

$0

There could be multiple reasons for the improvement in the number of claims in 2022, as there are evolving trends in retail and worker’s compensation insurance in general.

A Safer Workplace—The 2022 claim experience is still “green,” but so far it’s positive. Is this improvement due to better housekeeping, more diligence in keeping the floors clean, or general attention to employee safe behavior?

And, in general, there is an improving frequency of on-the-job injuries in business.

Workforce—Could the improvement in 2022 be due to fewer employees, with only the most experienced on board?

But there are challenging factors in workforce trends to consider: continued on next page

WORKER’S COMPENSATION CLAIMS AND TRENDS (THE MSIG EXPERIENCE) continued from previous page

1. Overtime. Excessive hours can lead to fatigue and bad judgment. Although federal labor laws do not regulate the number of hours worked, it’s better for your employee’s health and wellness to allow for adequate time away.

2. Inexperience breeds claim activity.

Lack of knowledge and inexperience in dealing with an irate customer can lead to poor decisions and injury.

3. An aging workforce. The economy and lack of viable candidates may lead to employees being asked to perform tasks they are not ideally suited for. Lifting a BIB into an awkward rack position should be done with someone that is physically matched or with help.

Mental Health—The pandemic may now be an endemic, but it took its toll on many people’s mental health. Depression and violence are higher than ever, and mental health is strongly connected to physical health. Decision-making and the motivation to return to work impact the number and costs of claims. Know your employees and get them the help they might need. Share any concerns you have with your claims adjuster, as mental health can impact an effective return to work from an injury.

“Slip and falls remain a frequent source of employee and customer injuries, and one of the more controllable risks.”

“By doing these three steps after a claim you can impact your worker’s compensation costs and improve your bottom line: 1. Report injuries within four days. 2. Use preferred or occupational medical providers. 3. Support early return to work. Learn more about these practices by contacting your agent/broker or workers compensation insurance company.”

Advanced Technology—Increasing technology like telemedicine and 24/7 Nurse Triage will continue to be more accessible and more common. Use this, as benefits include: • Faster treatment.

• Better access to medication.

• Improved medical cost containment.

• Time and cost savings by not having to visit the doctor’s office.

Pandemic/Endemic—State worker’s compensation policies vary, with many states covering “occupational illnesses,” but COVID and other contagions have created a new situation where jobs that weren’t considered dangerous may now be. And the illness risks, mask mandates, vaccination status, and more complicate the employee’s desire to work and interactions with the public.

Communication and appropriate precaution will be the norm.

Trends and Pricing—Worker’s Compensation prices are driven by many factors, including the ups and downs of the market. With interest rates on the rise, generally flat rates for almost five years, it would not be surprising to see rate changes in 2023.

The Answers While insurance rates are driven by different conditions, insurance costs can be improved by preventing claims and then closely managing those that do occur. Let’s work together through continuous improvement to make the stores a safer workplace and a safe, positive experience for the customer and employee.

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

AVANTI JULY | AUGUST 2022

33

Modelo Chelada 12oz Variety Pack

Featuring our fruit-forward flavors: Mango y Chile, Naranja Picosa, Limón y Sal and Piña Picante!

The Variety Pack will drive incremental growth by capturing new drinking occasions for your shoppers!

Drink responsibly.

. Imported by Crown Imports, Chicago, IL.

SLIN 104801 Modelo Negra 24oz CN 100181 Modelo Especial 24oz CN 101950 Modelo Especial 32oz Bottle 108774 Modelo Especial 24oz Bottle 34

AVANTI JULY | AUGUST 2022

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

Modelo CheladaVariety Pack 12oz CN

WIN WITH THE TOTAL CONSTELLATION BRANDS SINGLES OFFERINGS

Drink responsibly.

. Imported by Crown Imports, Chicago, IL.

SLIN 101107 Corona Extra 24oz Bottle 100002 Corona Extra 24oz CN 104874 Corona Premier 24oz CN 100330 Corona Refresca 24oz CN

107472 Corona Hard Seltzer Seltzerita 24oz CN 102291 Pacifico 24oz CN 102637 Pacifico 32oz Bottle 102559 Corona Familiar 24oz CN

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

AVANTI JULY | AUGUST 2022

35

Member News continued from page 14

store purchase. In fact, for Q1 2022 their pump-to-store conversion rate was worse than for Q1 2021 (25 percent), when gas prices were not only low, but there was still a significant impact of the pandemic on consumer behaviors.

Interestingly, the pump-to-store conversion rate was unchanged (33 percent) for customers who paid for gas inaccording to a new study by market research firm VideoMining. The study reveals high gas prices seem to mostly impact the pump-to-store conversion rates of those who pay at the pump: 70 percent of all fuel customers paid at the pump in the first quarter of 2022, and only 22 percent of them made any in-

“Seventy percent of all fuel customers paid at the pump in the first quarter of 2022, and only 22 percent of them made any in-store purchase.”

store in both Q1 2022 and Q1 2021. That is, the high gas prices did not impact the customers who walked in-store to pay for gas. Moreover, even the pandemic had not changed the pump-to-store conversion rates for those paying for gas in-store since that number was also 33 percent in 2019.

So it appears once people walk in-store to pay for gas, one-third of them buy some other product regardless of the prevailing gas prices or pandemic fears.

Americans Put C-Stores On Par With QSRs Consumers are putting convenience stores on par with fast food restaurants, continued on next page

The Future of Insurance is Here 7-Eleven Franchisee Insurance Program

aondigital.com/en-us/7eleven/ 36 AVANTI JULY | AUGUST 2022

Member News continued from previous page

according to Bluedot’s first Convenience Experience Report, a benchmark study that explores consumer sentiment and the customer experience at gas stations and c-stores. Nearly 6 in 10 consider purchasing a meal from a convenience store when stopping for fast food. The research also uncovered significant demand for mobile ordering, drive-thru, and curbside pickup.

Sixty-one percent of consumers state they would visit a c-store more often if all were available.

The research also signals c-stores and gas stations have been losing customers to short lines. Nearly half of the consumers surveyed say they will walk out of a c-store if one or two people are in line at the register.

Also noteworthy, 1 in 3 say they will drive

away if there’s just one car ahead of them at the pump. In the future, one way c-store brands might keep customers in stores longer could be by adding EV charging stations to their locations. The report found the vast majority of EV owners (74 percent) want to charge next to convenience stores.

the NRF, 7-Eleven was dragged down by lack of travel during the pandemic— and perhaps more importantly by the

7-Eleven Back On NRF’s ‘Hot 25 Retailers’ List 7-Eleven has bounced back onto the National Retail Federation’s annual Hot 25 Retailers list in 2022, which ranks the nation’s fastest-growing retail companies based on increases in domestic sales between 2020 and 2021. According to

lack of contractors and commuters. As contractors in particular have returned to work, 7-Eleven has grown. It landed at No. 23 on the list, with a 31.6 percent increase in sales. Harbor Freight Tools is in the No. 1 spot, followed by Inditex, Burlington, continued on page 44

SIMPLE. AFFORDABLE. ONLINE. We don’t just sell insurance. Our programs are specifically created for the 7-Eleven franchise.

As your dedicated insurance partner, we understand the risks and requirements of operating a 7-Eleven franchise.

Exclusive program for 7-Eleven franchisees Guaranteed coverage regardless of claims history Manage certificates of insurance online, 24/7 Concierge support to answer any questions

Learn more at aondigital.com/en-us/7eleven/ or call (847) 629-4711

AVANTI JULY | AUGUST 2022

37

9oz Stand-up Bags

SLIN 142440 CM 491601 / UIN 331257

SLIN 142847 CM 491599 / UIN 328147

SLIN 142422 CM 491602 / UIN 324027

5oz Peg Bags

SLIN 140442 CM 491595 / UIN 323977

SLIN 142436 CM 491404 / UIN 323887

SLIN 141523 CM 490991 / UIN 323967

SLIN 145690 CM 491596 / UIN 446887

SLIN 144991 CM 491403 / UIN 323987

Love What Makes You Unique, Appreciate What Makes Others Different 38

AVANTI JULY | AUGUST 2022

Member News continued from page 15

Legislative Update Senate Bill Targets Credit Card Swipe Fees Two U.S. senators are preparing legislation that would give merchants power to process many Visa and Mastercard credit cards over different networks, reported the Wall Street Journal. The bill aims to create more competition among U.S. credit-card networks, a sector where Visa and Mastercard have long dominated. The bill would mandate that merchants in many cases have the right to route payments through a network unaffiliated with Visa or Mastercard. Senator Dick Durbin, an Illinois Democrat, and Senator Roger Marshall, a Kansas Republican, are expected to introduce the bill. Because the bill would amend the Electronic Fund Transfer Act, it would likely be referred to the Senate

Walmart and Instacart are piloting a new virtual convenience store in Canada, giving customers in the Toronto area access to groceries, pantry and household essentials, snacks and more for delivery in as fast as 30 minutes, reported Winsight Grocery Business. • Convenience retailer QuikTrip recently opened a store in Tulsa, Oklahoma powered by Amazon’s Just Walk Out technology, reported Retail Technology Innovation Hub. This is QuikTrip’s first venture into the checkout-free space. • Wawa has agreed to pay $8 million to seven states after attorneys general sued the Delaware County-based convenience store chain over a hack that potentially exposed millions of people’s credit and debit cards to digital thieves, reported NBC 10 Philadelphia. The money will go to the attorney general’s office to pay, in part, for attorney’s and court fees. • Dollar General and Dollar Tree recently reported

Banking Committee, people familiar with the matter said.

Senator Marshall said banks and major card networks lobbied his office to not sign onto the bill. He decided to move forward after hearing from a growing number of merchants, including small businesses, restaurants, gas stations and convenience stores, about the toll of the rising credit-card fees set by Visa and Mastercard that are often pocketed by large banks.

Senator Durbin spearheaded a similar

“THE PROPOSED SENATE BILL WOULD MANDATE THAT MERCHANTS HAVE THE RIGHT TO ROUTE PAYMENTS THROUGH A NETWORK UNAFFILIATED WITH VISA OR MASTERCARD.”

same-store sales increases in their fiscal second quarters—with Dollar General experiencing a 4.6 percent hike and Dollar Tree 4.9 percent—driven in part by more visits from higher-income bargain hunters, reported Modern Retail. • Starbucks has closed 16 store locations nationwide after store managers reported a surge in crime in certain areas, reported the New York Post. Six Starbucks locations will be closed in the company’s hometown of Seattle and six more will be closed in the Los Angeles metro area. Two Starbucks restaurants will close in Portland, Oregon, while one store each will close in Philadelphia and Washington, D.C. • Amazon is launching its smart grocery carts at a Whole Foods store in Massachusetts in the coming months, before launching the technology at additional locations, reported CNBC. The company’s Dash Cart, introduced in 2020 at its Fresh

rule for debit cards over a decade ago.

The Durbin amendment, part of the 2010 Dodd-Frank law, requires that merchants have the ability to choose from at least two unaffiliated debit-card networks when routing transactions.

CA Governor Signs Law That Regulates Fast Food Industry California Governor Gavin Newsom recently signed a nation-leading measure giving more than a half-million fast food workers more power and protections, despite the objections of restaurant owners who warned it would drive up consumers’ costs, reported the Associated Press. The landmark law creates a 10-member Fast continued on page 48

grocery stores, tracks and tallies up items as shoppers place them in the cart, enabling them to skip the checkout line. • U.S. consumer inflation grew to 9.1 percent in June, a pace not seen in more than four decades, reported the Wall Street Journal. The consumer-price index’s advance for the 12 months ended in June was the fastest pace since November 1981, according to the Labor Department. A big jump in gasoline prices—which was up 11.2 percent from May and nearly 60 percent from a year earlier—drove much of the increase. • Taiwan convenience store chain FamilyMart recently launched a store on an electric vehicle that offers self-checkout, reported Retail Customer Experience. The “FamiMobi” was launched at the Southern Taiwan Science Park, and the company said it will test automatic grocery product detection and recognition, and app-based check-out continued on page 45

AVANTI JULY | AUGUST 2022

39

40

AVANTI JULY | AUGUST 2022

NCASEF BOARD MEETING Third Quarter 2022

A Full Agenda For The Third Quarter NCASEF Board Meeting NCASEF Board members tackled a slew of items during the third quarter meeting, held at the Gaylord National Resort and Convention Center in National Harbor, Maryland on August 6 and 7. There were updates by the various NCASEF committees, discussions about new and ongoing issues and concerns, and a session with SEI invited guests.

The first day of the Board meeting commenced with a moment of silence for those franchisees harmed or otherwise affected by the recent rise in violent crimes in 7-Eleven stores. After the roll call and approval of the second quarter Board meeting minutes, a vendor presentation was made by Accel Entertainment.

A slight modification to the bylaws was then requested by Bylaws Committee Chairman Joe Rossi, who said the Committee discovered some language that needed to be clarified.

NCASEF General Counsel Eric Karp explained the two proposed modifications, then a motion was made and passed to accept those changes.

Chairman Sukhi Sandhu conveyed that SEI assured the recent layoffs and reorganization within corporate will not affect support to the franchisees. Also during the morning session, membership applications

submitted by the Michigan FOA and the 7-Eleven Franchise Owners Association of Detroit to join NCASEF were approved. The Michigan FOA is a new organization, while the FOA of Detroit was reinstated.

Open items discussed included using a staffing company to help find store employees and allowing stores to close for several hours. Board members were informed that all stores are now mandated to remain open 24/7, but if there is an extreme situation a franchisee should speak directly with their market manager about closing for a few hours or a shift.

General Counsel Eric Karp then provided an overview of developments within the 7-Eleven system in the past few years based on publicly available records. Spread throughout the first day of the Board meeting were reports and updates from the Facility Maintenance, Digital/IT, Accounting and Finance, and Membership Committees.

The second day of the meeting featured an over three-hour session with SEI representatives. Attending the meeting were Jim Summers, Senior Vice President of Franchise Operations; Gary Kuns, Vice President of Logistics; Carl Weaver, Senior Director of Distribution;

Arron Yount, Senior Director of Franchise Sales and Systems; Bruce Maples, Senior Director of Franchise Relations and Engagement; Guyton Gagliardi, Senior Director of Merchandise Accounting; John Evans, Director of Accounting; and Davina Stevens, Asset Protection Director of Analytics and Audits.

Questions and discussions during this portion of the meeting focused on the gross profit split, AR Gap, ASI 2, McLane and Core-Mark deliveries, the check-in process and check-in simplification, 7-Now, extra charges on financials, staffing issues, accounting, store security issues, maintenance, fresh foods, promotions, secondary suppliers, and other topics.

Once the SEI guests wrapped up their session, Anheuser-Busch made a vendor presentation, which was followed by reports from the Store Profitability/Fuel, Logistics/ Simplification, Government Affairs/ Community Relations, Vendor Relations/Merchandise, and Convention and Entertainment Committees.

The fourth quarter NCASEF Board meeting will include an Affiliate Member meeting, and will be held November 15-18 in San Diego, California.

AVANTI JULY | AUGUST 2022

41

0821-8408-0504

8402-4560-0098

0821-8400-4333

Great Turnout For The Midwest FOA’s Charity Golf Outing & Trade Show The Midwest FOA recently held two back-to-back events that proved to be huge successes. On June 15, the MWFOA hosted its Annual Charity Golf Outing benefitting Children’s Miracle Network Hospitals and Lurie Children’s Hospital. The event was held at the Cantigny Golf Club located in Wheaton, Illinois and was a hot one with over 30 vendor partners sponsoring the golf tournament. It was a fun-filled day of golf, food and drink, plus a silent auction to close out the night. Additionally, the MWFOA was thrilled to welcome a patient family from Lurie Children’s Hospital to accept the association’s donation of $10,711.

Next, the MWFOA trade show was held on June 16 at the Rosemont Convention Center in Rosemont, Illinois. The event featured a special meeting session with presentations by Jim Summers, SEI Senior Vice President, Franchise Store Operations; Guyton Gagliardi, SEI Senior Director of Accounting; and Lisa Carrasco, SEI Director of Logistics, and allowed franchisees to inquire about issues regarding the AR Gap. Also at the meeting session was Sanjiv Shelley from the Texas FOA, who presented on Check-In Simplification and answered many lingering questions and concerns franchisees had about the program.

Over 62 vendor partners participated in the trade show itself, as well as franchisees representing over 150 7-Eleven stores. A raffle was held during the event, with prizes including sweaters, gift cards, and trips to the NCASEF convention sponsored by the MWFOA. After the trade show dinner was served for all guests who attended, and they were also able to enjoy the 360 Spin Camera and create their own 30 second dance movies.

AVANTI JULY | AUGUST 2022

43

Member News continued from page 37

Dillard’s, and TJX Companies.

Seven & I In Talks To Sell Department Store Unit

& Seibu department stores, Fortress, owned

by Japanese technology conglomerate SoftBank Group Corp., is considering cooperating with major Japanese electronics retailer Yodobashi Holdings, the sources added. Sogo & Seibu, which operates 10 department stores, incurred a net loss of ¥8.8 billion in the fiscal year to February 2022, staying in the red for the third straight

Seven & I Holdings plans to negotiate the sale of its department store unit Sogo & Seibu Co. to U.S. investment fund Fortress Investment Group LLC, reported The Japan Times. The two sides will discuss details about the sale “Seven & I Holdings plans price and the employment of Sogo to negotiate the sale of its & Seibu workers, according to the department store unit to article. The sale price is expected to Fortress Investment Group surpass ¥200 billion, sources told the news outlet. In operating Sogo

LLC.”

year as the number of customers fell amid the COVID-19 pandemic and the spread of online shopping.

Baby Born In 7-Eleven Parking Lot On July 11 A West Virginia baby was born in the parking lot of a 7-Eleven store on July 11, or 7-Eleven Day, reported People Magazine. The mother, Allie Sayers, had a planned C-section on the calendar, but continued on next page

SO MANY Options Is A Good Thing Haagen-Dazs® Top Selling Flavors

New!

Vanilla 14oz 190024 Strawberry 14oz 190023 Chocolate 14oz 190021 Drumstick 14oz 190216 OREO 14oz 190425

Butter Pecan 14oz 190020

Caramel Cone 14oz 190025

Coffee 14oz 190067

Dulce de Leche 14oz 191156

022 Planograms 2 l l A r Authorized Fo

Haagen Daz used under license from HDIP Inc. @ HDIP, Inc. OREO and OREO Wafer Design are trademarks of Mondelēz International group, used under license.

44

AVANTI JULY | AUGUST 2022

Member News

continued from page 39

continued from previous page

and payment, on the mobile store. • Pilot Company recently rolled out a new 10-cent fuel discount for its myRewards Plus members. The promotion runs through October 31, 2022. • The Coca-Cola Company has teamed with Dave & Buster’s to launch the first micro market inside a full-service restaurant. Called Game & Go, the market is entirely frictionless courtesy of seamless checkout free technology provided by Zippin. • Kroger is finding that grocery shoppers are trading down and shifting to store brands as U.S. inflation hits a four-decade high, reported Retail Wire. • Amazon Prime members purchased more than 300 million items worldwide during the company’s Prime Day 2022, making this year’s event the biggest one in Amazon’s history, the company announced. According to Amazon, Prime members saved over $1.7 billion, more than any previous Prime Day event. • Kraft Macaroni and Cheese has changed its name after 85 years, reported CBS News. The iconic blue boxes and bowls now read Kraft Mac & Cheese, and the logo has been updated. • Ransomware is to blame for the closure of all 175 7-Eleven stores in Denmark on August 8, reported Trip Wire. The retailer closed all of its stores in Denmark after its cash registers and payment systems were brought down in the attack. Many of 7-Eleven’s stores in Denmark had reopened by August 12. • Nearly 14 percent of Sheetz locations offer electric vehicle charging through partnerships with Tesla Inc., Electrify America and EVgo, reported Bloomberg. Tesla-branded fast chargers known as Superchargers make up the vast majority—over 70 percent—of the EV chargers located at Sheetz. • PepsiCo has made a $550 million investment in energy drink maker Celsius Holdings as part of a long-term distribution deal with the smaller company, reported CNBC. Celsius is expecting to gain more shelf space in existing retailers and expand more into independent stores, such as gas stations. • Some 7-Eleven stores in Taiwan reported that their store TVs were hacked by an unknown source to display messages telling U.S. House Speaker Nancy Pelosi to leave the island during her visit on August 2, reported Business Insider.

The affected stores included one outside the Legislative Yuan, Taiwan’s parliament building, which Pelosi visited on that day. • Target’s second quarter profit dropped 90 percent from a year ago, as inflation-weary customers pulled back on spending on nonessential items, reported CNN continued on page 46

two days before the appointment she went into labor. Enroute to the hospital, Sayers asked her fiancé to pull the car over because the baby was on its way, and he stopped in the 7-Eleven parking lot.

There, he delivered the baby boy himself.

To commemorate the special occasion, SEI has gifted the parents 7 years of free coffee “to help them stay awake on their latest nights (or earliest mornings!),” as well as a care package filled with 7-Eleven and Slurpee branded items, including onesies, diapers and other essentials.

Global C-Store Industry Report Released NielsenIQ and NACS recently released their inaugural global convenience retailing industry report that provides industry-leading data, macro trends and analysis across 23 countries in North America, Europe and Asia-Pacific regions. Highlights of this report include:

REPOR T • Thirteen countries experienced growth in convenience store sales during the first quarter of 2022 versus the first quarter of 2021, while 10 countries experienced sales declines.

• Nine of the 13 growth countries were from the Asia-Pacific region, while European countries accounted for eight of the 10 countries with sales declines.

• U.S. convenience stores, which sell an estimated 80 percent of the

fuel purchased in the country, saw revenues per store, per month increase 32 percent in Q1 2022 versus the same period in 2021, largely a result of higher gas prices.

• Canadian convenience store dollar sales underperformed versus other retail channels (-0.8 percent vs. +2.1 percent).

• The U.K. fuel and forecourt industry continues to thrive, with sales (excluding fuel) expected to rise to £47.1 billion (US$57.03 billion) by 2024; sales now account for over £1 in £5 spent on grocery items.

• In China, the three most significant convenience development trends are digitalization, food service and e-commerce.

Retailers Increase Wages To Attract Workers Retailers are increasing wages due to a tight labor market to keep their employees and attract new ones, reported Modern Retail. Nationwide, retail employers pay $17.71 per hour, with total cost of compensation reaching $23.11 when taking benefits into account, according to the U.S. Bureau of Labor Statistics. But this is less than the $38.61 cost of compensation rate across all private workers. Before the pandemic, September 2019 data show the total hourly cost of compensation was $20.54 for retail workers and $34.77 across all private industries.

Edwin Egee, vice president for government relations and workforce development at the National Retail Federation, said the worker shortage is a pressing issue for retailers, as it is continued on page 46

AVANTI JULY | AUGUST 2022

45

Member News continued from page 45

across sectors. Wages are one knob that have been turned to address it; Egee estimates almost all his members have hiked up starting wages over the past 24 months. The trend started when the pandemic required frontline workers to don safety gear and risk illness. The pace continued even after vaccination became commonplace. Restaurants like

Marathon Petroleum Corporation’s Speedway gas stations in 2020.

“As with any integration, our approach includes assessing our combined organization structure. The review was slowed by COVID-19 but is now complete, and we are finalizing the go-forward organization structure,” an SEI spokesperson told Fox Business.

“These decisions have not been made lightly, and we “Retailers are increasing wages are working to support due to a tight labor market impacted employees, to keep their employees and including providing career attract new ones.” transition services.”

The move comes as SEI parent company Seven & i Holdings has been facing pressure McDonalds and Chipotle, for example, from activist investor ValueAct Capital, enacted across-the-board wage hikes which bought a $1.53 billion stake in the last year, while Costco raised hourly company last year. The firm released a rates in 2020 and again in 2021. But 75-page presentation in February urging Egee said that employers looking to fill Seven & i Holdings to make structural positions must also address working reforms and sell off non-core assets to conditions and overall compensation, focus on 7-Eleven’s growth. In April, such as flexible scheduling, and paid Seven & i Holdings said it would revise time off. its compensation system and policies for its board, and appointed a new outside director.

SEI Cuts 880 Corporate Jobs

SEI recently cut approximately 880 jobs in its Irving, Texas, and Enon, Ohio, support centers and field support operations, reported Fox Business.

The layoffs are part of an ongoing “integration process” related to the company’s $21 billion acquisition of

Consumers Are Shifting Grocery Purchasing Behaviors Nearly half of Americans (45 percent) feel like they can’t afford their previous lifestyle and 76 percent of American consumers say their family has changed how they buy food with prices on the rise, according to a new consumer sentiment survey on inflation commissioned by NCSolutions (NCS). In addition, twothirds (66 percent) are more mindful of how they are spending their money. continued on next page

46

AVANTI JULY | AUGUST 2022

continued from page 45

Business. • Walmart began to lay off corporate employees in early August, about a week after it slashed its profit outlook and warned that consumers had pulled back on discretionary spending due to inflation, reported CNBC. Approximately 200 jobs were cut. • Convenience stores in New York state now require customers to provide identification to purchase a can of whipped cream, reported Newsweek. The law prohibits individuals younger than 21 years old to buy whipped cream due to concerns of inhalant misuse—the nitrous oxide in whipped cream canisters cause a “euphoric” sensation when inhaled and can become addictive. • Kellogg is splitting into three different companies in a major shakeup for the 116-year-old company, reported CNN Business. The first company will include Kellogg’s North America cereal unit, and its snacking unit will become a second company. Lastly, a new “pure-play plant-based foods company” will be anchored by its MorningStar Farms brand. • Servings of cold brew coffee ordered at quick-service restaurants climbed 27 percent in the 12 months ending April 2022, year-over-year, equating to to 373 million servings, reported QSR Magazine. Servings of frozen/slushy coffee from quick-serves during the same period jumped 3 percent to 726 million, showing customers are open to cold coffee in myriad formats. • The average yearly cost to own and operate a new vehicle in 2022 is $10,728, or $894 per month—a considerable increase from 2021, when the average yearly cost was $9,666 or $805.50 per month, according to the latest research from AAA. Not surprisingly, fuel prices are the most significant factor pushing this year’s average annual price tag. • Total U.S. online grocery sales for July jumped 17 percent year-over-year to $7.8 billion, driven by inflationary pressures and strong demand for delivery and pickup services triggered by ongoing COVID concerns, according to the latest Brick Meets Click/Mercatus Grocery Shopping Survey. • A federal judge recently ruled that a woman’s lawsuit against Subway alleging its tuna sandwiches “partially or wholly” lack tuna can move forward, reported NPR. The woman is seeking a jury trial and class-action status for her lawsuit, which accuses Subway of fraud, false advertising, and unfair competition. • Walmart stores in Tampa and Orlando, Florida will soon offer drone delivery that can continued on page 49

Member News continued from previous page

Eighty-five percent of Americans are very concerned or extremely concerned about inflation and almost unanimously (93 percent) they said we’re in an inflationary time. On the same economic theme, over half (57 percent) are concerned about the country’s financial situation, while 47 percent say they’re concerned about their

family’s financial situation. Eight out of 10 two-thirds (64 percent) of U.S. adults have or 83 percent of Americans expect the cost changed their driving habits or lifestyle of living will become somewhat more or since March, with 23 percent making much more expensive in the coming year. Sixty-five percent of Americans “Drivers’ top three changes to agree with the statement “my income offset high gas prices are driving has not increased as fast at the cost less, combining errands, and of food, beverage and personal care reducing shopping or dining out.” products.”

High Gas Prices Forcing Change In Driving Habits New survey data from AAA finds that drivers are making significant changes to cope with record pump prices. Almost

“major changes.” Drivers’ top three changes to offset high gas prices are driving less, combining errands, and reducing shopping or dining out.

In March 2022, AAA released gas survey data examining the pump prices Americans continued on page 48

AVANTI JULY | AUGUST 2022

47

Member News continued from page 47

would view as too expensive. At that time, over half (59 percent) said they would change their driving habits or lifestyle if the cost of gas rose to $4 per gallon. If gas were to reach $5, which it did in June, threequarters said they would need to adjust their lifestyle to offset the spike at the pump.

At that time, among Americans who said they would make changes in response to higher gas prices, a majority (80 percent) said they would opt to drive less. The new AAA survey reaffirms these driving habit changes.

Unemployment Rate Drops & Wages Grow Hiring in July was far better than expected, defying multiple other signs that the economic recovery is losing steam, reported CNBC. Nonfarm payrolls rose 528,000 for the month and the unemployment rate was 3.5 percent, easily topping the Dow Jones estimates of 258,000 and 3.6 percent, respectively.

The unemployment rate is now back to its prepandemic level and tied

for the lowest since 1969. Wage growth also surged higher, as average hourly earnings jumped 0.5 percent for the month and 5.2 percent from the same time a year ago.

Those numbers add fuel to an inflation picture that already has consumer prices rising at their fastest rate since the early 1980s. The Dow Jones estimate was for a 0.3 percent monthly gain and 4.9 percent annual increase.

Leisure and hospitality led the way in job gains with 96,000, though the industry is still 1.2 million workers shy of its prepandemic level. Professional and business services was next with 89,000. Health care added 70,000 and government payrolls grew 57,000. Goods-producing industries continued on next page

continued from page 39

Legislative Update

Food Council with equal numbers of workers’ delegates and employers’ representatives, along with two state officials, empowered to set minimum standards for wages, hours and working conditions in California.

The law caps minimum wage increases for fast “A NEW CALIFORNIA LAW WILL GIVE food workers at MORE THAN A HALF-MILLION FAST chains with more than 100 restauFOOD WORKERS IN THE STATE MORE rants at $22 an POWER AND PROTECTIONS.” hour next year, compared to the statewide minimum of $15.50 an hour, with cost-of-living increases thereafter. The state legislature approved the measure on August 29.

Debate split along party lines, with Republicans opposed. Supporters had said they hoped the measure would inspire similar efforts elsewhere. Restaurant owners and franchisers opposed the

law, citing an analysis they commissioned by the UC Riverside Center for Economic Forecast and Development saying that the legislation would increase consumers’ costs.

The International Franchise Association called it a “fork in the eye” of people who run restaurant franchises and said it could raise consumer prices as much as 20 percent.

Cities Ban New Gas Stations Cities in the North Bay area of California, New York and British Columbia have recently passed moratoriums on future gas stations or are developing policies to do so, reported Bloomberg.

They’re part of the small but growing Safe Cities campaign, a movement backed by the environmental group Stand.Earth that supports local efforts to phase out fossil fuels.

Now the group is counting on Los Angeles to give its effort increased momentum, the article states. The city would no longer issue permits for new gas stations or allow existing sites to add fuel pumps under a proposal from LA councilmember Paul continued on page 52

48

AVANTI JULY | AUGUST 2022

Member News

continued from page 46

continued from previous page

transport packages totaling 10 pounds or less within a mile of the store, reported the Orlando Sentinel. The two new sites are among 34 in six states where the retailer expects to have its DroneUp delivery service by the end of the year. • Amazon has started drastically reducing the number of items it sells under its own brands, and the company has discussed the possibility of exiting the private-label business entirely to alleviate regulatory pressure, reported the Wall Street Journal. The company’s private-label business has been a source of controversy because it competes with other sellers on its platform. • AAA’s latest consumer survey reveals that one-quarter of Americans would likely buy an electric vehicle for their next auto purchase, with Millennials leading the way (30 percent). Of those who want to buy electric, the common factor is a strong desire to save on fuel costs (77 percent). • Subway recently launched a new menu aimed at streamlining the choices customers have to customize their sandwiches, reported CNN Business. The new, more neatly organized menu is divided into four categories (Cheesesteaks, Italianos, Chicken and Clubs) consisting of three sandwiches each. All 12 sandwiches are new to the menu, with some essentially replacing previous versions with new names and slight tweaks. • Skinnier and taller cans, which marketers say evoke sophistication, are emerging as competitors to the squat, barrel-shaped 12-ounce aluminum container that has been ubiquitous in stores and vending machines for more than half a century, reported the Wall Street Journal. The thinner cans tend to sell better, help save on freight costs, and take up less space than traditional barrel-shaped cans, according to the article. • Walgreens Boots Alliance’s quarterly earnings beat Wall Street expectations as the chain saw online sales jump in the U.S. and retail sales bounce back in the fiscal third quarter, reported CNBC. U.S. same-store sales grew 2.4 percent and the company said it has an advantage amid rising gas prices as many of its stores are within walking distance or a short drive away from consumers. • To address inflation and to retain workers in what many executives say remains a tough labor market, some large employers are raising salaries or doling out special bonuses, reported the Wall Street Journal. Exxon Mobil Corp. gave U.S. employees a one-time payment in June equivalent to 3 percent of their salaries, while continued on page 51

also posted solid gains, with construction up 32,000 and manufacturing adding 30,000. Retail jobs increased by 22,000, despite repeated warnings from executives at Walmart, Target and elsewhere that consumer demand is shifting.

Expansion Of Retailers That Accept SNAP Online The U.S. government is trying to entice more retailers to offer online shopping options for those Americans that use the supplemental nutrition assistance program (SNAP), reported The Hill.

The Department of Agriculture announced a new $5 million grant program recently—the SNAP EBT Modernization Technical Assistance Center—which will offer funding to retailers that need help launching online shops that accept SNAP. The effort is fueled by the growing presence of online shopping, especially for groceries.

Currently, most retailers that offer SNAP online are larger grocery chains that already have an established online shopping foundation—including Walgreens, 7-Eleven, Target, Whole Foods Market and Kroger. Many local retailers lack resources to run an ecommerce business, but the USDA hopes this grant will help bridge that gap.

In addition to funding, the agency intends to offer technical support to help develop existing sites or launch brand new ones.

The USDA is also developing a pilot program to allow SNAP participants to use their smart phones to buy groceries at physical stores by allowing them to input their EBT card into a mobile device.

Court Dismisses Lawsuit Against Seven-Eleven Japan The Osaka District Court in Japan recently dismissed a lawsuit claiming Seven-Eleven Japan Co. unjustly terminated its contract with a franchisee over his decision to stop late-night operations, reported Kyodo News.

Accepting the chain operator’s claim that the termination resulted from his improper handling of customers, the court also ordered Mitoshi Matsumoto, the 60-year-old former franchisee, to

“A court in Japan recently tossed out a lawsuit claiming Seven-Eleven Japan unjustly terminated its contract with a franchisee over his decision to stop late-night operations.” give up the store and pay damages to the company. Matsumoto, who has spearheaded a campaign among the nation’s c-store owners for shorter opening hours, criticized the court decision and said he will appeal the ruling to a high court.

Demand For Grocery Delivery Drops With Inflation U.S. demand for grocery delivery is cooling as prices for food and other continued on page 50

AVANTI JULY | AUGUST 2022

49

Member News continued from page 49

necessities rise, reported the Associated Press. Some are shifting to pickup—a less expensive alternative where shoppers pull up curbside or go into the store to collect Sixty-three percent their already-bagged groceries—while of small-business others say they’re comfortable doing the owners say that shopping themselves. hiring challenges Grocery delivery experienced are affecting their remarkable growth during the first year ability to operate of the pandemic. In August 2019, a typical pre-pandemic month, Americans spent $500 million on grocery delivery.

“Sixty-three percent of smallBy June 2020, it had ballooned to a business owners say that hiring $3.4 billion business, according to challenges are affecting their Brick Meets Click, a market research ability to operate at full capacity.” company. But as the pandemic eased, demand softened. In June 2022, Americans spent $2.5 billion on grocery at full capacity, reported the Wall Street delivery, down 26 percent from 2020. For Journal, citing a survey of more than 825 comparison, they spent $3.4 billion on small businesses by Vistage Worldwide grocery pickup, which saw demand drop Inc., a business coaching and peer advisory 10.5 percent from its pandemic highs. firm. Owners of many small companies say inflation has added to the pressures of an already tight job market, making it

Small Businesses Face Hiring Challenges

increasingly difficult to keep pace with the wages and benefits offered by large employers. The hiring challenges are stunting growth, small-business owners said, and further clouding their deteriorating economic outlook.

Small-business confidence continues to fall, dropping in June to lows last seen in July 2020, the Vistage data show. Nine percent of small-business owners expect U.S. economic conditions to improve over the next 12 months, down from 12 percent in May and 53 percent in June 2021. Despite their economic worries, 52 percent of small-business owners expect head counts to increase in the coming year, the survey found.

Pilot Company & GM To Build EV Charging Network Pilot Company (Pilot and Flying J) announced that it has partnered with continued on page 52

Avanti Is Your Magazine Avanti Magazine was created in 1981 by franchisees, for franchisees. It represents your voice within the 7-Eleven universe and requires your participation to remain relevant to the ideas, information, and knowledge floating about the franchisee community. You can contribute to the success of Avanti Magazine by submitting any of the following: > Articles on any 7-Eleven topic that may be of interest to other franchisees. > Your FOA events and Board meeting calendars. > FOA event photos with a short description (who, what, where, when, and why). > Store or community event photos with captions. > Any combination of the above.

Please send your submissions to avantimag@ncasef.com.

As former National Coalition Chairman Bill Schuessler famously said,

“None of us is as great as all of us together, so let’s stay tightly knit together.”

50

AVANTI JULY | AUGUST 2022

continued from page 49

PricewaterhouseCoopers handed out raises in July. • Philadelphia-based bottler Liberty Coca-Cola Beverages recently unveiled a fiber-based paper packaging that will replace plastic rings on multipacks cans of soda, reported NBC 10 Philadelphia. The new packaging is set to be delivered to all stores across Pennsylvania, New Jersey and New York, as well as parts of Connecticut and Delaware, beginning in September. • A coalition of 17 states plus Washington, D.C., and the Canadian province of Quebec have signed on to an action plan striving for 100 percent electric medium and heavy-duty vehicle sales by 2050, reported Utility Dive. The plan includes policy recommendations for local lawmakers and adding more electric charging infrastructure. • Ampex Brands—Au Bon Pain operator and a leading Yum! Brands and 7-Eleven franchisee with more than 500 QSR and fast-casual restaurants and convenience stores—recently announced that it has acquired bellagreen, an American bistro concept with locations in Houston and Dallas, from Bellagreen Holdings. • Amazon said more than 65 Whole Food Markets across California will soon offer Amazon One, a palm-recognition service that allows customers to pay by hovering their palm over an Amazon One device at checkout, reported the Los Angeles Daily News. • Walmart announced that it has signed an agreement with advanced mobility company Canoo to purchase 4,500 all-electric vehicles to deliver online orders in a sustainable way, which will also contribute to Walmart’s goal to achieve zero-emissions by 2040. • Supermarket chain Albertsons is currently testing a store in Boise, Idaho that has replaced traditional checkout lanes with self-checkout stations with staff nearby to help, reported BoiseDev.com. The store also has plans to add carts from vendor Veeve that will use artificial intelligence and store cameras to allow shoppers to skip the checkout lanes entirely and check out via card swipes on the carts themselves. • An increasing number of retailers are eliminating free online returns as the e-commerce returns rate reached a historic high of 20.8 percent last year, with the cost of online returns estimated at a total of $218 billion, reported Footwear News. • Pilot Company recently announced a strategic partnership with self-driving trucking company Kodiak Robotics, Inc. to develop autonomous truck services at Pilot and Flying J travel centers. The companies are in the process of creating an autonomous truckport in the Atlanta area to evaluate potential service offerings and explore scalable solutions. • As gasoline prices approached $5 per gallon on the East Coast in late June, Mid-Atlantic convenience chain Sheetz helped reduce the pain at the pump for consumers by dropping the price of fuel to $3.99 a gallon for Unleaded 88 and $3.49 a gallon for E85 from June 27 through the July 4th holiday travel season. • Drivers prefer partial automation in their vehicles that comes with appropriate safeguards and require them to stay engaged in driving, according to a new survey by the Insurance Institute for Highway Safety. • Instacart recently announced that EBT and SNAP can now be used to buy groceries online in 10 additional states—Colorado, Hawaii, Idaho, Louisiana, Montana, New Mexico, Oregon, Utah, Washington, and Wyoming—through the Instacart App and retailers’ Instacart Platform-powered e-commerce experiences. • Dollar General has formed a Healthcare Advisory Panel to help it further develop its health and wellness offerings, reported Supermarket News. The retailer has already expanded its health care services at 1,800 stores and plans to increase that number to

NCASEF Welcomes Michigan & Detroit FOAs The NCASEF Board of Directors inducted two FOAs during its third quarter meeting at the Gaylord National Resort in Maryland, August 6-7. The Michigan FOA is new, while the 7-Eleven Franchise Owners Association of Detroit was reinstated. Representing the Michigan FOA during the meeting (top photo) were President Ali Haider (right) and Vice President Sandeep Singh (left). Representing the 7-Eleven FOA of Detroit (bottom photo) were FOA Vice President Fazal Abbas (left) and Executive Vice President Abid Jamil (right). The addition of these two organizations brings the total number of NCASEF FOA members to 41.

continued from page 58

AVANTI JULY | AUGUST 2022

51

Member News continued from page 50

General Motors to build a national DC fast charging network that will help accelerate the widespread adoption of electric vehicles, increase access to charging and help enable long-distance travel of EVs

across the U.S. This network of 2,000 charging stalls, co-branded “Pilot Flying J” and “Ultium Charge 360,” will be powered

by EVgo eXtend and open to all EV brands at up to 500 Pilot and Flying J travel centers It will also feature numerous fast charging stalls provided by EVgo, including high power fast chargers capable of offering up to 350 kW1. This collaboration is targeting the installation of charging stalls at 50-mile intervals across the U.S. This collaboration is expected to enhance America’s EV driving experience.

This project builds on Pilot Company’s recently announced “New Horizons” initiative to invest $1 billion to fully upgrade its travel centers with more premium amenities and offerings that aren’t typically available at current EV charging locations,

the company stated. Guests will have access to free Wi-Fi at most locations, expanded seating and lounge areas, updated and modernized restrooms, on-site restaurants including Pilot’s signature fresh hot and cold deli, premium coffee, and shopping for travel essentials and souvenirs while their vehicles are charging.

Inflation Dropped In July The consumer price index increased 8.5 percent in July compared with July 2021, down from June’s 9.1 percent CPI reading, reported NACS Online, citing U.S. Department of Labor data. The gasoline index declined 7.7 percent in July, helping to ease the sting of increases in costs for continued on next page

continued from page 48

Legislative Update

Koretz. Current gas stations could, however, add chargers for zero-emission vehicles, according to a motion filed in May 2021.

The plan has already drawn criticism for being less effective toward achieving the city’s sustainability goals compared to policies and investments that discourage driving, such as building bike lanes and improving public transit. In recent years, the city has approved no more than three new gas stations annually.

Tobacco Companies Settle With DOJ Altria, Philip Morris USA Inc., RJ Reynolds Tobacco, and ITG Brands recently reached an agreement in long-running litigation brought by the U.S. Department of Justice (DOJ) and certain public health organizations regarding the communication of tobacco-related messaging at retail locations, reported NACS Online. The

“THE FOUR MAJOR TOBACCO agreement will require those tobacco MANUFACTURERS HAVE REACHED companies to supply AN AGREEMENT WITH THE DOJ court-ordered signs REGARDING THE COMMUNICATION OF to stores that have TOBACCO-RELATED MESSAGING AT contracts with any of them and require RETAIL LOCATIONS.” those stores to post the signs for a total of 21 months. The agreement covers the last remaining dispute from the lawsuit the DOJ filed against Altria, Philip Morris USA Inc., and RJ Reynolds in the 1990s.

The agreement provides that each store under contract with one of the manufacturers will have to post at least one sign carrying one of 17 different, pre-approved health messages that will be distributed at random to retailers around the country. Each store will be required to rotate to a new message halfway through the time period required in the agreement. The manufacturers will be required to hire auditors to check whether the signs are properly posted. continued on page 54

52

AVANTI JULY | AUGUST 2022

Member News continued from previous page

food (+1.1 percent) and shelter (+0.5 percent). The food-at-home index rose 1.3 percent, while the food-away-from-home index rose 0.7 percent. The energy index fell 4.6 percent as prices for gasoline and natural gas fell, but the index for electricity rose.

Separately, research from Numerator indicates that grocery prices set a new record in July. Prices were up 15.4 percent versus a year ago for the four-week period ended July 31, after leveling off in early July.

Within grocery, snack and beverage prices are outpacing total grocery inflation, with snack prices up 19 percent and beverages up 18.1 percent, doubling since the beginning of the year, Numerator found.

Inflation rates in the categories of meat (+14 percent), produce (+9 percent) and alcoholic beverages (+3.7 percent) remain elevated, though they lag behind total grocery.

C-Stores In Japan Become ‘One-Stop Shops’ Major convenience store operators in Japan are finding new business opportunities in areas such as clothing and household

goods, reported The Japan News. They are attempting to capture the increasing demand for “one-stop shopping” amid the spread of the coronavirus by offering a wide selection of products, not just their mainstay food items. Among those c-store retailers, Seven-Eleven Japan Co. had expanded its selection of products supplied by the ¥100 store operator Daiso Industries Co. to almost all of its outlets by August. The company began introducing the products at some of its stores in December 2020, attracting customers mainly with household goods such as wet wipes and garbage bags.

Convenience store operators believe that growing their range of non-food items will “lead to more visits to their stores,” as an official of a major store operator said.

7-Eleven Franchisees Visit Washington, D.C. For CFA Day On June 22, 2022, a group of 7-Eleven franchisees met in Washington, D.C. to participate in CFA Day, an annual event organized by the Coalition of Franchisee Associations to advocate on legislative issues affecting franchisees before members of Congress. Franchisees from many different systems were there—including McDonald’s, Dunkin’, and Subway—but the presence of 7-Eleven franchisees was the most prominent.

Among the issues at the forefront of this year’s CFA Day was the labor shortage and legislation that could help alleviate the situation. CFA Day participants encouraged Congress members to support the Essential Workers for Economic Advancement Act (H.R. 7239), which creates a non-immigrant visa program for high demand/short supply industries in metropolitan areas facing a critical labor shortage; the Senior Citizens’ Freedom to Work Act (S. 3101, H.R. 3921), which repeals the retirement earnings test (RET)—a penalty for retirees who wish to return to the workforce; and to support efforts to eliminate barriers to the Earned Income Tax Credit (EITC). The

Midwest FOA Vice President Nisar Siddiqui (right) with Congressman Andrew Garbarino during the CFA Day event in Washington, D.C.

event also included a dinner with U.S. Congressman Andrew Garbarino (New York 2nd District), who is a member of the House Committee on Small Business.

AVANTI JULY | AUGUST 2022

53

Member News continued from page 52

continued from page 52

Legislative Update

The Latest Tobacco Legislation Update Below are the latest proposals and approved changes to tobacco legislation and regulation at the local, state and federal levels, as reported by Convenience Store News.

CALIFORNIA • San Jose—The San Jose City Council ban on flavored tobacco products kicked in on July 1. A referendum prohibiting flavored tobacco sales statewide goes to the voters in November.

• Los Angeles—Retailers will no longer be allowed to sell flavored tobacco products in the city as of January 1, 2023.

Mayor Eric Garcetti signed the ban into law on June 13 after the Los Angeles City Council unanimously approved the ordinance on June 1. It does not ban the possession or use of flavored tobacco for people over the age of 21.

• San Diego—Mayor Todd Gloria signed an ordinance making it unlawful for retailers within the city to sell or distribute specified flavored tobacco products effective January 1, unless a statewide measure to ban the sale of specified flavored tobacco products in California is passed by voters in November.

• Scotts Valley—The Scotts Valley City Council voted in favor of a ban on the sale of flavored tobacco products. The new rule went into effect on July 15.

MAINE • Bangor—The Bangor City Council banned flavored tobacco sales for the second time. After it was forced to repeal a previous ordinance in April due to a procedural error, the new proposal passed in early August and will go into effect January 1. It will then join the towns of Portland and Brunswick, which have similar bans that took effect June 1.

MICHIGAN • Lansing—Governor Gretchen Whitmer signed a bill package raising the legal minimum age to buy tobacco products from 18 to 21. The Tobacco 21 law also raises the age of sale for retailers, prohibits those under 21 from entering a

tobacco store, and bans tobacco sales through the mail to anyone under 21.

NEW JERSEY • Trenton—The New Jersey Assembly Health Committee approved a bill, A1989, prohibiting the sale of all menthol cigarettes and flavored electronic nicotine delivery systems in New Jersey. Under the proposed legislation, violators who sell flavored smoking devices would face a $500 fine for the first offense, $750 for the second offense and $1,000 for the third and subsequent offenses, followed by a threeyear suspension of their retail license. The fines for selling menthol cigarettes would be $250 for the first offense, $500 for the second offense, and $1,000 for third and subsequent offenses.

NEW YORK • Albany—Governor Kathy Hochul signed legislation prohibiting smoking in all state-owned beaches, boardwalks, marinas, playgrounds, recreation centers, and group camps.

Many New York municipalities and local governments already have bans or restrictions on smoking in public places.

The new rule will enforce a statewide prohibition and includes a fine that will be collected by localities.

OHIO • Columbus—A coalition of community groups, public health advocacy organizations and faith institutions is looking to have the Columbus City Council pass legislation to end the sale of menthol cigarettes and all flavored tobacco products in the capital city. The Coalition to End Tobacco Targeting is hoping to start a movement that would eventually ban the sale of all flavored tobacco products throughout the state.

• Hilliard—The Hilliard City Council passed legislation that strengthens Ohio’s Tobacco 21 law, implementing penalties for those under 21 who use, buy, or possess tobacco or vaping supplies. State laws already address penalties for selling or furnishing such items to those under 21.

• Kent—The Kent City Council passed a $400 Tobacco Retail License, which will fund two compliance checks to the estimated 28 tobacco retailers in Kent. continued on next page

54

AVANTI JULY | AUGUST 2022

Member News continued from previous page

continued from previous page

Legislative Update

• Salem—The Salem City Health District board approved a measure to require retailers to obtain an annual permit as part of the city’s Tobacco 21 program, which went into effect on July 15. Each permit is $100.

NLRB Proposes New Joint Employer Rule The National Labor Relations Board (NLRB) recently proposed a new rule that would make it easier for workers to say they are employed by two employers at once, a move that could open the door to employee claims against businesses that rely on franchisees, contractors or staffing firms, reported the Wall Street Journal. The proposed rule is one of the first significant policy moves by the NLRB under the Biden administration and will likely be challenged in court by business groups.

OREGON • Portland—Multnomah County health officials in Portland are drafting a proposal to ban the sale of flavored nicotine products. It will go before the county board to be reviewed in September.

• Hillsboro—Washington County’s ban on flavored tobacco and nicotine products, which was announced last fall, is on hold again after a circuit court judge issued a temporary injunction in connection with three lawsuits. The ordinance remains suspended while the larger issues are debated in court.

The rule would rescind a 2020 rule issued under the Trump administration stating that employees could only claim to be employed by companies holding “substantial, direct and immediate control” over their employment. Under the current proposal, a company with the power “whether directly, indirectly or both” to control wages, hiring or work requirements would be counted as an employer. Business groups criticized the proposal, saying it would put a heavy burden on companies. The NLRB said it would accept comments on the new rule until November. A final rule likely won’t be issued before next year.

WASHINGTON, D.C. • Mayor Muriel Bowser signed into law the Flavored Tobacco Product Prohibition Amendment Act, banning the sale of flavored tobacco products, including menthol cigarettes.

Get On The Avanti Mailing List!

January/Fe

bruary 2022

T H E

E T H

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.

May/June 2022

T H E

V O I C E

O F

7 - E L E V E N

O F

s And aritie g Ch ice n i t r v o S u p p u n i t y S e r ke A Difference a C o m m isees M

l /Apri

March

E I C V O

E N E V E L 7 -

anch ven Fr

7-Ele

Mak ing Pro gre ss

Improving The System For All Stakeholders

es muniti s er r Com To Ou r Custom And Ou orhood Neighb e Store A nc Than More Convenie e Ar We nstant ly Co The On s ge Is g Sand Chan Shiftin s Injurie ck Ba ertion/ ex er Ov

Giving

Staying Fully Stocked Franchisee Exits Don’t Leave Money On The Table

7 - E L E V E N

F R A N C H I S E E S

Bran d Fo rw ar d

Among All Sta

keholders Is Key

Back

te Affilia 2022 ory pring ct The S mber Dire Me 34 Page

We’re On It

O F

M ov in g Th e

Collaboration

2022

E E S F R A N C H I S

V O I C E

S E E I S C H A N F R

Working Togethe r Will Benefit All 7-Eleven Stak eholders It’s All About Teamwork Workers’ Com pensation Insu ranc Questions & Ans e wers

Trip, And Fall Slip, Trip, Prevention The Power Of Partnership Second Quarter Board Of Directors Meeting NCASEF Committee Reports

Register Today!

NCASEF 46th Annual Convention & Trade Show Gaylord National Resort & Convention Center National Harbor, Maryland August 7-10, 2022

AVANTI JULY | AUGUST 2022

55

Save $210 when you join NACS!

Secure your NACS membership today for as low as $40* When you join NACS, you’re getting a whole lot more than a membership card. You’re gaining a global solutions network.

Plug in.

B Visit convenience.org/AssociationMembers and enter the promo code below.

Instructions • Visit www.convenience.org/AssociationMembers • Enter promo code 8DN423ZX when requested.

• New applications will be reviewed, dues discount will be applied upon approval.

• Renewals will process at the discounted dues automatically!

Contact NACS for questions or support: Keith Harlow Director, Member Services kharlow@convenience.org 703.518.4206

Allison Dean Retail Membership Manager adean@convenience.org 703.518.4250

*This offer applies to current retail member of the National Coalition of Associations of 7-Eleven Franchisees with 4 or fewer convenience stores.

Membership will be current through December 31, 2022. Renewal notices to continue your membership at the reduced rate will be sent for 2023 prior to expiration. $40 offer is based on dues calculation of $250, the minimum dues for NACS. The promo code will save you $210 off your dues.

Member News continued from previous page

7Collection Online Merchandise Store Debuts

SEI recently announced the launch of 7Collection, an online merchandise shop specially curated with 7-Eleven fans in mind. The shop features exclusive apparel and accessories inspired by 7-Eleven and its fanfavorite products—like Big Gulp and Slurpee drinks—that customers can’t find anywhere else. For the first 7 days, customers received 11 percent off all the 7Collection items using the code 7Collection11.

The 7Collection shop offers brand fans a little bit of everything at 7-eleven.com/7collection—including vintage tees, hats and an assortment

“SEI recently launched 7Collection, an online merchandise shop specially curated with 7-Eleven fans in mind.”

of unique memorabilia. SEI kicked off the shop with two iconic drops: • The Cars of 7-Eleven Collection—Boasts legendary threads, a trucker hat, car decal and the iconic coffee-scented air freshener first debuted in Model 711.

• The Slurpee Collection— Encompasses both retro and modern Slurpee drink apparel, accessories and collectibles.

by “Game to Eleven,” the phrase popularized by pick-up basketball.

The streetwear-meets-sportswear designs feature fan-favorite products like Slurpee drinks and Big Gulp fountain beverages subtly intertwined with basketball themes. Included in the collection are 7-Eleven and Speedway-branded hoodies, T-shirts, hats and mesh shorts. Individual merchandise is available for purchase at https://shop.overtime.tv/ starting at $50. Customers were also able to win the full capsule by purchasing select products at 7-Eleven, Speedway or Stripes stores as part of 7-Eleven’s weekly giveaways through Brainfreeze Season.

Pumpkin Spice Highlights Fall Coffee Lineup

SEI brought back two fan-favorite fall brews in early August—the Pumpkin Spice Latte and Pumpkin Spice Coffee. 7-Eleven’s Pumpkin Spice Latte combines a classic espresso flavor with savory autumn spices to create a sweet and creamy pumpkin-

SEI Unveils Limited-Edition Apparel Collection

SEI recently introduced a limitededition apparel collection with Overtime and Easy Otabor, a designer, entrepreneur and art curator. The collection, Overtime x 7-Eleven curated by Easy Otabor, is inspired continued on page 58

AVANTI JULY | AUGUST 2022

57

Member News continued from page 57

flavored beverage. This coffee drink Seven-Eleven Japan Moves is now available at participating Forward With Drone 7-Eleven, Speedway, and Stripes stores Delivery Plan for a limited time. Customers can also All Nippon Airways (ANA) and satisfy their sweet tooth with a second Seven-Eleven Japan have formed a pumpkin-flavored drink—the new agreement to materialize Pumpkin Spice Coffee, their plan for a nationwide which blends mild drone delivery service, Arabica coffee reported Akihabara beans with a sweet “Seven-Eleven Japan has News. Under the pumpkin-y taste. partnered with All Nippon agreement, ANA’s A medium body main responsibilities coffee with mild Airways to develop a will be to establish spice, this smooth nationwide drone delivery the drone operation drink is perfect service.” system—including the for customers who selection of the drone enjoy a clean and aircraft which will be used— crisp finish to their and to improve communication morning (or afternoon) stability related to drone operation. brew. Pumpkin Spice Coffee is now For its part, Seven-Eleven Japan will available at participating 7-Eleven adjust its product delivery service locations for a limited time.

7Now, decide which products will be subject to customer delivery by drone,

and build vertiports at the SevenEleven stores that will be participating in the program. The two firms expect to begin practical tests of the system in Fukuoka city this fall and are aiming for a nationwide launch by FY2025.

7-Eleven Tests Drone Deliveries In South Korea

7-Eleven is testing drone delivery services in the South Korean town of Gapyeong, reported Retail Insight Network. The retailer is conducting the trial in partnership with PABLO AIR, continued on next page

continued from page 51

more than 4,000 locations by the end of the year. • Coca-Cola recently announced that two of its brands are taking major steps to support a circular economy for plastic packaging. DASANI is rolling out bottles made from 100 percent recycled PET plastic, and Sprite is transitioning from green to clear plastic to increase the material’s likelihood of being remade into new beverage bottles. • New Zealand-based company Invisible Urban Charging plans to install more than 6,000 EV chargers in Florida over the coming months with the goal of encouraging more people to switch to electric vehicles, re58

AVANTI JULY | AUGUST 2022

ported the Associated Press. Invisible Urban Charging has partnered with Dallas-based Lincoln Property Co. to make the chargers available for all models of electric vehicles. • More than half (54 percent) of young workers research individual managers on social media when prepping for interviews, reported Fortune, citing a new survey by recruiting software firm iCIMS. Of the recent grads it polled, 70 percent also admitted to looking at employers’ sites when prepping for interviews. • South Korean office workers are turning to convenience stores for their mid-day meals as “lunch-flation” takes a bite out of their wallets, reported Reuters. While convenience store lunches

have not been immune from rising costs, their much lower overall prices have helped them gain in popularity. • Toys R Us is making a major comeback with the opening of in-store shops at every Macy’s department store in time for holiday shopping, reported CNN Business. Toys R Us went bankrupt and closed all its stores in 2018, but got a new lease on life last year thanks to Macy’s partnership. • White Castle announced that it has reached a major milestone with 3 billion of its Chicken Rings sold since 1995. When placed end-to-end, the total Chicken Rings sold would stretch nearly 95,000 miles, or 3.8 times the circumference of Earth.

Member News continued from previous page

a drone logistics solution provider.

During the pilot program, which will run until the end of 2022, there is no minimum order amount and delivery is free of charge. The three-minute drone delivery service is available from 10am to 7pm from Tuesday to Saturday every week. Customers can order convenience store items for delivery through the All+Delivery (Allivery) app. According to the article, the drone service will be operated from a delivery station equipped with a control tower and a helipad for drones to take off from and land after delivering goods.

Two New Pizza Varieties Launched

7-Eleven recently rolled out two brand new pizza varieties—Veggie and Breakfast. The all-new pizzas are now available at participating

7-Eleven, Speedway and Stripes stores. The Breakfast pizza features 7-Eleven’s signature crust topped with gravy, mozzarella cheese, cheddar cheese, and breakfast sausage. For those into the classics, the Veggie pizza is loaded with fire-roasted and diced red bell pepper, green bell pepper,

white onions, and sliced mushrooms.

For a limited time, members of the 7Rewards loyalty program were able to buy any size fountain drink or hot beverage and receive a Breakfast Pizza slice for just $1.

Bring Your Own Cup Day Returns

Bring Your Own Cup (aka BYOC) Day made its triumphant return this summer. On August 27, 7Rewards and Speedy Rewards loyalty members were encouraged to grab their cookie jars, fishbowls or any other creative container and fill it up with their favorite Slurpee drink flavor for just $1.99 at participating 7-Eleven, Stripes and Speedway locations. Customers were invited to sip on classic Slurpee flavors like Blue Raspberry, Cherry, Pina Colada or Coca-Cola—or indulge in limited-time-only flavor Mango Lemonade, blended with a zesty mix of mango and tart lemonade.

Customers were also encouraged to get creative and make up their own flavor concoctions.

“7-Eleven has rolled out two brand new pizza varieties—Veggie and Breakfast.”

7-Eleven Celebrates First Responders

Participating 7-Eleven stores joined other convenience retailers and suppliers across the United States to celebrate hometown heroes on 24/7 Day. Held on July 24, 24/7 Day recognizes first responders, medical and emergency professionals and volunteers who work around the clock to serve their communities. Hosted by the NACS Foundation, the event helps raise awareness and donations for the urgent humanitarian needs of the Red Cross and spotlights the convenience store industry’s important role in supporting hometown heroes. One of the ways 7-Eleven and other convenience chains supported this continued on page 60

AVANTI JULY | AUGUST 2022

59

Member News continued from page 59

“7-Eleven stores joined other convenience retailers across the country to celebrate hometown heroes on 24/7 Day.” year’s 24/7 Day was by offering a free fountain, frozen, or coffee beverage of any size to police, fire, EMTs, doctors, nurses, health practitioners, Red Cross volunteers, and 911 professionals in uniform or with a badge.

Brainfreeze Season With SnackInspired Fashion Collabs

To keep fans feeling hot and stayin cool this Brainfreeze Season, SEI released unexpected and exclusive collaborations with fan-favorite snack and beverage brands to take wardrobes to an ELEVEN. Customers who purchased participating products at 7Eleven, Speedway or Stripes stores were able to win bespoke apparel and

60

AVANTI JULY | AUGUST 2022

accessories inspired by the snacks they know and love.

Sneakerheads were in for a treat because a few lucky customers were able to win a custom pair of kicks, including: • Slurpee x What the Fanta: Designed

by Jake Danklefs of Dank & Co., these sneakers are adorned with Slurpee drink branding and shapes that mimic splashes of water.

• 7-Eleven x Dunkaroos: These kicks, designed by creative agency partner Select and hand-painted

by Tyler Wallach, feature Fred— the mascot for the brand’s iconic frozen beverage, surrounded by confetti-like patterns.

• Shoe Surgeon x Reese’s: These shoes feature orange-colored mesh panels, chocolate-hued sides, and a peanut butter-toned ankle panel with a buttoned pocket.

Customers also had the chance to win a break dancinginspired Red Bull BC One capsule featuring Fred, complete with a hoodie, drawstring backpack, and hat to encourage fans to dance their way through summer. Also available was the Flamin’ Hot x Braille collection,

featuring a crewneck sweatshirt, hat, skateboard and shoes with flameprinted shoelaces.

Deal Marks National Chicken Wing Day

There was plenty to celebrate in July—notably 7-Eleven’s 95th birthday on July 11—and July 29, aka National Chicken Wing Day. This year, SEI invited 7Rewards and Speedy Rewards members to get saucy with 10 classic wings for just $10 at participating 7-Eleven, Speedway, and Stripes stores. No matter the customer’s wing flavor preference— roasted, spicy, or buffalo—7-Eleven offered them hot and ready to eat.

Customers also didn’t miss out on the best-selling Buffalo Wings, double glazed with a classic, bold buffalo sauce for the perfect amount of flavor.

Additionally, for a limited time, members of the 7Rewards loyalty program were able to enjoy Classic Wing Weekends with 5 wings for $5.99 Friday through Sunday.

New Bud Light Seltzer Varieties Added Bud Light Platinum Seltzer is adding a new single to the family. Introducing Bud Light Platinum Seltzer Blood Orange 25oz. This flavor, currently in the variety pack, will join Wild Berry as the second Bud Light Platinum Seltzer single. Wild Berry has consistently been the #1 ROS single across all 25oz singles in the industry, and Anheuser-Busch believes they can further strengthen the brand’s shelf presence by adding a second single. With Blood Orange trending as a flavor in the cocktail and beverage space, it is the perfect fit to complement the Wild Berry offering. Anheuser-Busch is also launching the Blood Orange single with optimized graphics, and will be applying the same design update as a soft change to Wild Berry to ensure the two singles are optimized for c-stores.

Anheuser-Busch is also introducing Bud Light Seltzer Apple Slices, a new limited-edition Bud Light Seltzer Variety Pack for Fall and Winter 2022. This new addition to the Bud Light Seltzer rotator line merges the refreshing flavor of apple with bold sweetness of other fruit flavors to create delicious combinations like Crisp Apple, Strawberry Apple, Peach Mango Apple, and Cranberry Apple. Get all the bold, crisp flavor of apple with the stats and refreshment of seltzer with Bud Light Seltzer Apple Slices.

Introducing new Bud Light Platinum Seltzer Blood Orange and Bud Light Seltzer Apple Slices.

Put More In Your Pocket With New Trident Pocket Pack Your customers love the 28-stick Trident Pocket Pack in Spearmint and Tropical Twist. What they need now is a classic: New Trident Pocket Pack Original. The new

product provides 2X more gum in a sturdy pack with a flavor they know and love.

With 56 percent of gum being purchased at front end/ checkout and Trident placing #2 in convenience for gum brands, New Trident Pocket Pack Original will help refresh your sales rhythm and provide the customer with the long-lasting quantities of gum they are looking for. As an extra incentive, Trident Pocket Packs are being presented with a 2/$4 Hot Deal.

You can’t go wrong with supporting Trident Pocket Packs as Trident boasts a high 83 percent brand awareness and is the most effective brand on display. This means Trident Pocket Pack Original 28-sticks will leave in the pockets of your customers. Help Refresh Your Rhythm by helping customers refresh theirs. Get New Trident Pocket Pack Original today.

New Trident Pocket Pack Original will help refresh your sales rhythm.

Airy & Puffy Cheez-It Puff’d Taste the fun of puffy and airy, bite-sized squares baked with 100 percent real cheese inside and out with CheezIt Puff ’d Cheesy Baked Snacks. Each case includes 6, 3-ounce pouches of Cheez-It Puff ’d Cheesy Baked Snacks.

This snack satisfies your senses with an irresistible crunch followed by melt-in-your-mouth cheesiness that everyone is sure to crave. Baked with 100 percent real cheese into every puffy cracker for maximum tastiness. Grab a pouch for a fun and light meal side, an afternoon pick-me-up or on-the-go bite. Enjoy crisp, crunchable, always munchable Cheez-It Puff ’d Cheesy Baked Snacks. Available in Double Cheese, Cheez-It Puff’d Cheesy Baked Snacks are baked with 100 percent real cheese for maximum tastiness. continued on page 63

AVANTI JULY | AUGUST 2022

61

Increase Foot Traffic Earn Ancillary Income Effortlessly No Cost, No Work, No Liability

Benefits Best Customer Service in the Industry Available 24/7 Free advertising of your store Become the leader in your community for supporting sustainability and reuse.

For every full bin, 1 tree is planted!

***$100 sign-up bonus

for the first 20 locations to register, your store must be within our service areas.

Find out now.

BOOK A MEETING TO LEARN MORE continued on next page

62

AVANTI JULY | AUGUST 2022

continued from page 61

White Cheddar and Scorchin’ Hot Cheddar flavors. Learn more at KelloggsAwayFromHome.com.

International Delight Pumpkin Pie Spice Is Back International Delight Pumpkin Pie Spice Coffee Creamer 192ct and quart are back. A splash will add layers of delicious flavor to your customers’ everyday coffee, filling not only their senses, but also their taste buds with the festive flavors of pumpkin and spice, allowing them to truly embrace the season.

Make sure you share the delight at your coffee bar so your customers can craft their perfect cup of coffee or take a quart with them, making this a perfect fit for their home or office refrigerator.

Why choose International Delight Creamer? International Delight is a brand that 7-Eleven shoppers know and love from

the coffee bar to the take-home creamers.

International Delight Creamer is the #1 brand for exclusivity and loyalty, which means you will attract incremental shoppers to the category.

Pumpkin Pie Spice is the #1 Fall Seasonal flavor across the coffee creamer category. Seasonal flavors continue to grow in importance as younger consumers seek excitement and indulgence. To place an order or learn more, please call (888) 620-9910 or visit DanoneAwayFromHome.com Customer favorite International Delight Pumpkin Pie Spice Coffee Creamer is back for a limited time.

AD INDEX American Licorice.................................................38

King Palm.............................................................8, 9

Anheuser-Busch....................................................10

McLane...................................................................26

AON..................................................................36, 37

MolsonCoors..........................................................13

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

Mondelez................................................................22

C4 Nutrabolt..........................................................40

Monster...................................................................67

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

Pabst........................................................................42

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

Sierra Nevada Brewing.........................................65

Danone....................................................................29

Swedish Match (ZYN)............................................5

Diageo.......................................................................3

Swisher International............................................68

Dreyers Ice Cream.................................................44

USAgain..................................................................62

Ignite International...............................................47

Vita Coco..............................................................6, 7

Kellogg’s....................................................................4 AVANTI JULY | AUGUST 2022

63

FOA Board Meetings Central Florida FOA

Midwest FOA

Southern California FOA

Phone: 207-415-0924

Phone: 847-971-9457

Phone: 818-357-5985

November 9, 2022—General Meeting

September 21, 2022—Webinar Wednesday

JSeptember 21, 2022— Board of Directors & Members Meeting

October 5, 2022—Webinar Wednesday

October 19, 2022—Board of Directors Meeting

October 19, 2022—Michigan General Meeting/Mini-Show

November 16, 2022— Board of Directors & Members Meeting

Chicagoland FOA Phone: 847-278-7415 September 22, 2022—Board Meeting October 27, 2022—Board Meeting

November 16, 2022—Webinar Wednesday

UFOLINY

December 8, 2022—Board Meeting

San Diego FOA FOA Of Greater Los Angeles Phone: 619-726-9016 September 20, 2022—Board Meeting

Phone: 619-713-2411 September 15, 2022—Board Meeting October 20, 2022—Board Meeting

October 18, 2022—Mini Trade Show November 15, 2022—Board Meeting

Greater Bay FOA Phone: 707-344-1070 September 20, 2022—Board Meeting October 18, 2022—Board Meeting November 15, 2022—Board Meeting December 20, 2022—Board Meeting

64

AVANTI JULY | AUGUST 2022

San Francisco/Monterey Bay FOA Phone: 408-203-1039 September 14, 2022—Board Meeting October 12, 2022—Board Meeting November 9, 2022—Board Meeting

Phone: 631-793-6348 September 20, 2022—General Membership Meeting October 25, 2022—General Membership Meeting November 29, 2022—General Membership Meeting

United FOA Of Northern Florida Phone: 602-614-8083 November 9, 2022—General Meeting

FOA EVENTS UFOLINY Golf Outing Baiting Hollow Golf Club Baiting Hallow, New York September 7, 2022 Phone: 631-793-6348

United FOA Of Northern Florida Annual Trade Show Space Coast Convention Center Cocoa Beach, Florida September 8, 2022 Phone: 602-614-8083

San Francisco/Monterey Bay FOA Annual Golf Tournament Silver Creek Valley Country Club San Jose, California September 12, 2022 Phone: 408-203-1039

Metro New Jersey FOA Annual Golf Event Charleston Springs Golf Course Millstone, New Jersey September 14, 2022 Phone: 973-979-9870

Metro New Jersey FOA Annual Trade Show Royal Albert’s Palace Fords, New Jersey September 15, 2022 Phone: 973-979-9870

San Diego FOA Vendor Appreciation Day Alesmith Brewing Co. San Diego, California October 6, 2022 Phone: 619-713-2411

Chicagoland FOA Holiday Trade Show Venue TBD November 10, 2022 Phone: 847-278-7415

San Diego FOA Christmas Party Coronado Community Center (Nautillus Room) Coronado, California December 2, 2022 Phone: 619-713-2411 66

AVANTI JULY | AUGUST 2022

United FOA Of Northern Florida Annual Holiday Party Space Coast Convention Center Cocoa Beach, Florida December 2, 2022 Phone: 602-614-8083

Southern California FOA Holiday Party Universal Studios Universal City, California December 3, 2022 Phone: 818-357-5985

San Francisco/Monterey Bay FOA Annual Christmas Party Hilton Garden Inn Sunnyvale Sunnyvale, California December 3, 2022 Phone: 408-203-1039

Midwest FOA Chicago Holiday Showcase Venue TBD Rosemont, Illinois December 7, 2022 Phone: 847-971-9457

Central Florida FOA Holiday Party Holiday Inn Orlando Florida December 10, 2022 Phone: 207-415-0924

UFOLINY Holiday Party Crest Hallow Country Club Woodbury, New York December 14, 2022 Phone: 631-793-6348

San Francisco/Monterey Bay FOA Trade Show Paradise Ballrooms Banquet Hall & Event Center Fremont, California April 26, 2023 Phone: 408-203-1039

Central Florida FOA Charity Golf & Trade Show Venue TBD Orlando, Florida May 3-4, 2023 Phone: 207-415-0924

NCASEF BOAR D MEETINGS National Coalition Board meetings are scheduled one per quarter. Vendors interested in sponsoring a Board meeting should contact John Riggio, JR Planners, at 262-394-5518 or johnr@jrplanners.com.

National Coalition Affiliate Meeting Westin San Diego Gaslamp Quarter San Diego, California November 15-16, 2022

National Coalition Board Of Directors Meeting Westin San Diego Gaslamp Quarter San Diego, California November 17-18, 2022

National Coalition Board of Directors Meeting Caesars Palace Las Vegas, Nevada July 29-30, 2023

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

E H T WIN ATEGORY C T S M WITH THE DIP

OF CHAMPIONS

KAYAK DELIVERS: • 100% American-grown tobacco • Variety of blends and cuts • Profit-boosting partner programs

KAYAK GROWTH

1.9%

TOTAL MST CATEGORY IS DOWN AT -5.8%*

Please contact your Swisher Representative SWISHER.COM | 800.874.9720 SWISHER SWEETS CIGAR COMPANY

|

FAT LIP BRANDS

MST Category Data from MSAi Database 13 weeks ending 6/18/22

*

|

DREW ESTATE

|

HEMPIRE

|

ROGUE