Avanti May/June 2019

May/June 2019

T H E

V O I C E

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7 - E L E V E N

F R A N C H I S E E S

NCASEF 44TH ANNUAL CONVENTION & TRADE SHOW

August 5-8 Page 25

What’s Next?

Come to the NCASEF Convention and Find Out!

Long Beach Convention Center LONG BEACH, CALIFORNIA

Supporting Our Vendors Why Did You Become A 7-Eleven Franchisee?

You Are Not Alone—Chapter 2

Visit NCASEF.com To Read Dispatch

PRSRT STD U.S. POSTAGE PAID Philadelphia, PA PERMIT No. 5634

THE VOIC E OF 7-ELEVEN FRANC H ISEES

May/June 2019

Contents 37 Supporting Our Vendors As They Support Us

FEATURES 22

Board Meets In Alexandria, Virginia

By Jay Singh, NCASEF Chairman

41 Why Did You Become A 7-Eleven Franchisee In The First Place?

By Michael Jorgensen, NCASEF Executive Vice Chairman

26 7-Eleven Franchisees Meet With Congressional Representatives 79

Midwest FOA Trade Show Supports Breast Cancer Organization

45 You Are Not Alone—Chapter 2

By Eric H. Karp, Esq., NCASEF General Counsel

NCASEF 44TH ANNUAL CONVENTION

Long Beach, California August 5-8, 2019 Page 25

49 Improving Your Gross Profit

NCASEF

By Paul Lobana, NCASEF Vice Chairman

51 Why We Need An Independent National Coalition, Part 2: The National Coalition Is The Only Hope For Franchisees

HIGHLIGHTS Our Message To Congress: More Oversight Is Needed To Protect Franchise Owners

By John R. Irvine Jr., Franchisee, Detroit, Michigan

57 Of Culture And Relationships

2019 AFFILIATE

Here’s How To Make The NBLC Better Than Ever

By Jack W. Rugen, Editor, Soundwave, Former President, United Franchise Owners of Long Island New York

MEMBERS Page 63

Page 28

TS

59 Employee Safety Training Matters

DE

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 1001 Pat Booker Road, Suite 206, Universal City, TX 78148. For membership information, call 702-249-3301 or e-mail nationaloffice@ncasef.com. AVANTI Offices are located at 116 Bellevue Ave., Suite 304, Langhorne, Pennsylvania 19047. For advertising information, call Sheldon Smith at 215 750-0178 or fax to 215 750-0399; online, send messages to sheldon.smith5@verizon.net. 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.

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By John Harp, CSP, ARM, Mitsui Sumitomo Insurance Group

Member News..............................18 Bits & Pieces..........................................20

Legislative Update....32 SEI News............................86 Vendor Focus....................93 Franchisee Calendars....102 AVANTI M AY | J U N E 2 0 1 9

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NATIONAL COALITION OF ASSOCIATIONS OF 7-ELEVEN FRANCHISEES

Franchisees Seek Stronger Government Oversight NCASEF leadership visited Washington, D.C. on May 16, 2019 to meet with senior staff members of the House Education and Labor Committee and with their home-state congressional delegations in order to press lawmakers to strengthen federal oversight of franchising to ensure independent operators are not subjected to contractual terms that are inherently unfair, unconscionable or potentially predatory.

are concerned the U.S. labor shortage could lead to a similar situation here.

Jatinder Singh

7-Eleven In Dallas International Now Open SEI recently announced the grand opening of its newest store at Dallas Fort Worth International Airport in Terminal C, reported Convenience Store Decisions. The grand opening event included a check presentation to the USO. Located near Gate C11, the store carries all the popular customer favorites and convenience store go-to items. The opening marks the fourth 7-Eleven store at the DFW Airport since 2015.

“NCASEF leadership met with lawmakers in Washington, D.C. to press for stronger federal oversight of franchising.”

The NCASEF officers and Board members detailed ways SEI treats its franchisees as employees instead of owners, and asked lawmakers to examine whether the agreements franchisees sign with SEI more closely represent an employment contract than a franchise agreement. They also shared concerns of franchisees in Japan, where a shortage of service labor has created friction over keeping stores open 24/7 because franchisees are being pressed to work over 100 hours a week, or close overnight and violate their franchise agreement. Many

NATIONAL OFFICERS

NATIONAL CHAIRMAN

702-249-3301 • jays@ncasef.com

Michael Jorgensen EXECUTIVE VICE CHAIRMAN

347-251-1828 • mcjorg@yahoo.com

Paul Lobana VICE CHAIRMAN

818-203-2527 • paullobana@aol.com

Rehan Hashmi VICE CHAIRMAN

847-845-8477 • rehan711@yahoo.com

Ajinder Handa VICE CHAIRMAN

425-438-8381 • ajinderhanda@hotmail.com

Jaspreet Dhillon TREASURER

310-892-2106 • jaspakam@gmail.com

Eric H. Karp, Esq. GENERAL COUNSEL

617-423-7250 • ekarp@wkwrlaw.com

7-Eleven Named Top Global C-Store Chain

John Riggio

7-Eleven has taken the No. 1 spot on ResearchAndMarkets.com’s Top 50 Global Convenience Store Retailers in 2017 list.

This report lists the Top 50 global convenience store retailers by consumer expenditure, which includes sales tax, for the 2017 calendar year. The report also includes their online sales, market share, retailer type, number of stores, total retail space,

Sheldon Smith

continued on page 20

MEETING/TRADE SHOW COORDINATOR

262-275-3086 • jrpinc@charter.net

AVANTI PUBLISHER ADVERTISING MANAGER

215-750-0178 • sheldon.smith5@verizon.net

Sheldon Smith PUBLISHE R & ADVERTISING SALES 215 750-0178 SHELDON.SMITH5@VERIZON.NET

The National Coalition Office The strength of an independent trade association lies in its ability to promote, protect and advance the best interests of its members, something no single member or advisory group can achieve. The independent trade association can create a better understanding between its members and those with whom it deals. National Coalition offices are located in Universal City, Texas.

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John Santiago ASSISTANT EDITOR 215 750-0178 AVANTIMAG@VERIZON.NET

1001 Pat Booker Road Suite 206 Universal City, TX 78148 Office 210-971-9211 E-mail: nationaloffice@ncasef.com

The Voice of 7-Eleven Franchisees May/June 2019 © 2019 National Coalition of Associations of 7-Eleven Franchisees Avanti Magazine is the registered trademark of The National Coalition of Associations of 7-Eleven Franchisees.

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positioning, headquarters and parent group. 7-Eleven is listed as having a 2.19 percent global market share.

The report reveals global convenience store sales reached US$ 3,255.1 billion in 2017 and are forecast to grow at a compound annual growth rate of 8.5 percent between 2017 and 2022 to reach US$ 4,899 billion. Furthermore, the top 50 convenience store retailers’ sales accounted for 10.1 percent of the overall channel sales in 2017.

“Customers at a 7-Eleven in Melbourne, Australia can complete transactions through an app, similar to Amazon Go stores.”

7-Eleven Australia Unveils First Cashless C-Store 7-Eleven Australia recently opened its first cash-free store in Melbourne at the company’s head office, reported 9 News.

Customers at this location can now only pay

for their goods using a smartphone app, so the store has no physical checkout counter.

Customers walk through the store, pick the items they want, scan the barcodes with their phone and complete the transactions through the app, similar to Amazon’s Go stores. 7-Eleven has been fine-tuning the concept over the past 12 months, looking at the technology and customer experience, but has no immediate plans to roll out other cashless stores throughout Australia.

Shoppers Define ‘Convenience’

Members of the Central Florida FOA gathered at St. Pete Beach in Tampa on May 11 to participate in Swim Across America’s Annual Tampa Charity Swim. In eight years, Swim Across AmericaTampa has raised $1.1M to benefit research at the Moffitt Cancer Center and All Children’s Hospital. SAA said the Central Florida FOA has been incredibly supportive every year to the success of the charity swim. Pictured left to right: Central Florida FOA President and NCASEF Executive Vice Chair Michael Jorgensen, and Central Florida FOA members Harvi Thaper (with his daughters Mahimaa and Japnaa) and Jeff Davis.

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While location is still important among convenience store shoppers, the word “convenience” has evolved to now evoke multiple store- and experience-related attributes, reported Convenience Store News on its “2019 Convenience Store News Realities of the Aisle” consumer study. For a majority of shoppers, it boils down to a convenient experience.

When asked what defines convenience, 44 percent of shoppers polled cited quick/quick visit and 13 percent said a store is convenient if it is close, close to home or close to work. Convenience also means “easy.” Specifically, 22 percent of those surveyed defined convenience as easy, 13 percent defined it as easy to get in and out, and 7 percent defined it as easy access. Overall, the definition of continued on page 22

C-store chain Sheetz recently announced the launch of an extensive line of premium Cannabidiol (CBD) products now available at over 140 of its store locations across Pennsylvania.

• A new study by GasBuddy reveals that convenience stores are eating into the $250 billion quick service restaurant market share. According to the report, 56 percent of Americans purchase meals at least once per month at convenience stores, with 25 percent of those aged 30-44 purchasing food five or more times per month. • Walmart is expanding a college-education perk to high school students. In an effort to recruit and retain more young talent, reported CNBC. These benefits include free ACT and SAT prep courses, up to seven hours of free college credit through Walmart’s “Live Better U’s College Start” program, and a debt-free college degree through “Live Better U” in three fields from six nonprofit universities. • The New York Lottery recently became the first in the nation to break the $10 billion mark in combined sales and “net win”—which is the earnings after winners are paid—for the state fiscal year that ended March 31, 2019, reported the Lottery Post.

• Colorado has now generated more than $1 billion in total state revenue from the legal marijuana industry, reported CNBC. Cannabis sales contribute to the state’s general reserve fund, as well as education and health care.

Colorado already has posted more than $6.5 billion in total sales of cannabis since the birth of the new industry. • Dollar General is planning to open 975 stores in 2019, making it the top retail company for expanding so far this year, reported CBS News. • ALDI is slated to become the third-largest grocery chain in the U.S. after Walmart and Kroger, following a $5 billion plan to grow from 1,900 to 2,500 stores by the end of 2022, reported CNN Business. • After a succontinued on page 24

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BOARD MEETS IN ALEXANDRIA, VIRGINIA The National Coalition Board of Directors met May 17 and 18 at the Westin Alexandria, in Alexandria, Virginia. The location was chosen to give franchisee leaders the option of visiting their elected congressional representatives in Washington, D.C. Some of the topics covered in the Board meeting included: updates on legal and legislative issues, a visit from the Farm Labor Organizing Committee, numerous presentations from vendors, an update on maintenance from Vixxo, a presentation on 7 Rewards and gas, and updates on membership dues and payroll.

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convenience for most shoppers is an experience that ultimately saves them time and effort. Convenience is quick, easy, close by and allows a shopper to get what they need, when they need it.

Minimum Wage A Hot Topic For 2020 Elections From liberal firebrands Bernie Sanders and Elizabeth Warren to moder22

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“One-third of the country will have a $15 minimum wage as gradual increases kick in over the coming years.” ates Joe Biden and John Hickenlooper, nearly the entire 2020 Democratic presidential field agrees that the federal minimum wage should be more than doubled—to $15 an hour, reported the Associated Press. That near-unanimity

reflects the success of an unorthodox campaign by the Service Employees International Union called the Fight for 15, the article states. It launched in 2012 to help nonunion McDonald’s workers who walked off their jobs as cooks and servers agitate for a then-unthinkable $15 minimum wage.

According to the National Employment continued on page 24

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Law Project, one-third of the country will have a $15 minimum wage as gradual increases in bedrock Democratic states like California, Illinois and New York kick in over the coming years.

Customers Purchasing More Food From C-Stores A new GasBuddy study reveals that 56 percent of Americans purchase meals at least once per month at gas station convenience stores, with younger Americans purchasing food at convenience stores more frequently. Twenty-five percent of those aged 30-44 purchase food 5 or more times per month, while 20 percent of those aged 18-29 purchase food at convenience stores 3-4 times per month.

The report further shows that a significant portion of 18-29 year olds purchase more meals from convenience stores than they did three years ago (43 percent), and 75 percent of Americans believe convenience store foodservice has improved in the past 5 years.

Frequent visits to purchase meals at convenience stores come with increased dollar spend. The study found that 1 in 4 Americans spend $6-10 per week on con-

“Seventy-five percent of Americans believe convenience store foodservice has improved in the past 5 years.”

venience store foodservice, with nearly 20 percent of Americans aged 18-29 spending $10-15 per week. The most-preferred meals from convenience stores and QSRs include sandwiches or wraps, fresh salad, pizza, burgers and fries and fried chicken.

Retailers Raise Tobacco Purchase Age To 21 Walmart, Sam’s Club, Rite Aid, and Walgreens have raised the minimum age to buy tobacco at their stores to 21 years old, joining a growing list of retailers under pressure from federal regulators to curb sales to minors and boosting their age restrictions as a result, according to several news sources. Walmart and Sam's Club will hike the minimum age for buying tobacco on July 1, and will no longer sell the fruit flavored vaping systems that have become popular with teenagers.

Walgreens will implement its policy chain-wide starting September 1, and Rite Aid will raise its minimum age to buy tobacco products in July.

How C-stores Can Beat Competition From Amazon Despite its deep pockets and innovative technology, there are things Amazon and Amazon Go can’t offer that convenience stores can, reports Convenience Store News. They include community, unique loyalty and rewards programs, and the employee/customer connection. “C-stores are part of the local community and connect more with the local customers than Amazon Go,” Kimberly Otocki, c-store content marketing specialist at Paytronix, told the publication. “They can partner with local businesses to provide more offerings, which is a great way for them to remain a big part of their communities.” continued on page 76

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cessful trial run, Burger King announced that it plans to release its vegetarian, plant-based Impossible Whopper nationwide in all of its nearly 7,300 location by the end of the year, reported NBC News. Locations in Burger King’s Impossible Whopper St. Louis test market outperformed the chain’s national foot traffic average by 18.5 percent in April. • A pilot is underway in New York that will allow Supplemental Nutrition Assistance Program participants to order groceries and pay for them using their benefits online, reported CSP Daily News. The two-year test run will be conducted by Amazon and ShopRite in New York City, with Walmart providing service to areas in upstate New York. • While more than half of moms do most or all of their grocery shopping at brick-and-mortar stores, more are taking advantage of growing options for online shopping and home delivery, reported The Business Journals. One in three moms said they are increasingly taking advantage of stores’ delivery and pick-up options for the extra convenience they bring. • The FDA recently sent a letter to food industry leaders urging them to standardize the phrase “best if used by” on packaged food labels, reported WDSU News. It’s an effort to reduce food waste, since nearly one-third of America’s food ends up in the trash, adding up to about $161 billion each year. • The global cannabis extract market size is expected to reach US$23.7 billion by 2025, according to a new report by Grand View Research, Inc. Growing preference for cannabis extracts such as oils and tinctures, rising legalization of marijuana in various countries, and the adoption of medical marijuana for treatment of various chronic diseases are key factors promoting market growth. • A new study by retail management consulting firm BRP reveals that 67 percent of consumers are likely to shop with a retailer that offers mobile coupons instead of one that doesn’t offer them. • KFC is joining other fast-food restaurants continued on page 38

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7-Eleven Franchisees Meet With Congressional Representatives Forty-three franchisees and the NCASEF officers descended on The three issues franchisees concentrated on in the meetings Washington, DC on May 16, a day prior to the NCASEF Board meet- included discussion on whether 7-Eleven, Inc. treats its franchisees ing in Alexandria, Virginia, to meet and talk with their congressional as employees, not true business owners; support for updating The representatives. Armed with talking PACT Act, which would prevent points on the three main issues, minors from buying e-cigs on the franchisees visited their individual Internet; and support of changes state congressional offices in the to the FTC Franchise Rule, which House and Senate office buildings would make Franchise Disclosure for prearranged meetings.

Documents more transparent.

The goal of the meetings was The day began with a bus ride to help legislators understand franto Capitol Hill, and a meeting chisee issues, and to help franand box lunch with Seth Turner, chisees understand how Capitol Director of Citizen Engagement Hill works. NCASEF Chairman for the Congressional ManageJay Singh described the intent, ment Foundation, a nonprofit “Not all legislators understand the lobbying firm. Seth, who has perForty-three franchisees visited Capitol Hill to franchise business model, and sonally had over 5,000 meetings make a presence with their elected representatives. how legislative and regulatory acwith congressional representations can affect franchisee businesses. In turn, franchisees have to tives or their staff, briefed franchisees on how to talk to members learn how the decisions our legislators make affect their businesses, of Congress and their staff without alienating them or getting sideand what we can do to have our voices heard on legislative actions.� tracked on the issues. continued next page

Franchisees gathered en masse for the morning bus ride.

San Diego franchisees with congressional staffers from California.

Keith Miller, from Franchisee Advocacy Consulting, Representative Doug LaMalfa (1st Congressional District, California), with NCASEF Chairman Jay Singh.

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Franchisees meeting with Keith Miller and senior congressional staffers from the Committee on Education and Labor.

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Las Vegas franchisees Franchisees then met with Keith Miller, Principal of Fran- met with Carol Waychisee Advocacy Consulting, a Subway franchisee and past chair man, Staff Director of the Coalition of Franchisee Associations, and senior congresfor Nevada Senator Catherine Cortez sional majority staffers from the Committee on Education and Masto (right) and Labor for a briefing on the three franchisee issues plus minimum Brandon Cox, Chief of wage impact.

Staff for CongressAccording to Miller, “Franchisees, not franchisors, are the woman Susie Lee, investors, job creators, community supporters, and taxpayers in from the 3rd District every congressional district in the U.S., yet it is the franchisors in Nevada (below). who have more readily influenced legislation and yielded power over decision making. Franchisees need to band together and change this dynamic, so the true investors of the franchise industry are heard loud and clear.�

After the afternoon meetings, the day ended with a Congressional reception at the Rayburn Cafeteria attended by franchisees, members of congress Seth Turner, nonprofit Congressional Management Foundation, briefed franchisees on how to talk to members of Congress. and and their staff.

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NCASEF

HIGHLIGHTS

Your National Coalition is Committed to Franchisee Interests the 7-Eleven system franchisees are treated as employees, not owners, and how the deal we sign is more an employment contract than a franchise agreement. We provided them an update on the current situation in Japan where a significant shortage of service labor is forcing franchisees to decide whether to violate their franchise agreements and Recently, a group of National Coalition executive board members close their stores overnight, or work the shifts themselves on top of the and FOA leaders went to Washington, D.C. to press lawmakers for hours they are already working. stronger federal oversight of franchising to ensure independent operators “We believe we can make real progress to better balance the franof franchised businesses like convenience stores and quick service chise relationship when we go in and explain to members of Congress restaurants are not subjected to contractual terms that are inherently un- and their staffers how our business works. It is important for them to fair, unconscionable, or potentially predatory. understand that franchisees invest in local communities, provide jobs We are all aware of how the playing field is slanted in favor of and pay local taxes,” said Michael Jorgensen, the National Coalition’s franchisors because of the Executive Vice Chairman.

Jorgensen discussed how lawmak“It is important we continue bringing this ers will often hear from the International Franchise Association on matters related kind of information to Capitol Hill. That is why the Coalition will continue holding our to franchising, but pointed out that the IFA represents the interests of franMay board meeting in Washington, D.C.” chisors, which do not necessarily match those of franchisees. heavily one-sided way franchise agreements are written. “These franchise agreements reflect the overwhelming imbalance of contractual and financial power wielded by franchisors,” said National Coalition Chairman Jay Singh.

When meeting with senior staff members of the House Education In our last article, we examined the concerns franchisees have about and Labor Committee, we emphasized that the Federal Trade Commisthe National Business Leadership Council, known to us all by the acronym sion’s (FTC) Franchise Rule needs to be strengthened in order to better NBLC. The council was created, according to 7-Eleven, to provide franprotect the interests of men and women who invest in buying a franchisees with a voice to protect their interests and offer opinions to help chised business. shape brand decisions. But, as we explained, the NBLC’s noble mission is We explained that Franchise Disclosure Documents (FDDs) lack handcuffed by the corporation, which exerts control over the appointment the appropriate level of transparency necessary for the buyers of franof council members, the agenda the council follows, the information SEI chised businesses to make good decisions about how they are investchooses to disclose or withhold, and the work product it creates. ing their money with a brand like 7-Eleven. We shared the report from We do not mean to blame the franchisees who volunteer to serve Australia’s Parliamentary Joint Committee on Corporations and Finanon the council, and we recognize that it is not enough to point out why cial Services, which, as we know, detailed instances of franchisor the NBLC is largely ineffective. We must also offer some suggestions for abuse by 7-Eleven and other major brands, including how presale disimproving the council’s efficacy, as well as the entire franchisee/franclosures alone had not been successful in addressing opportunistic chisor relationship at 7-Eleven. behavior by some franchisors. We also asked lawmakers to consider Great franchised brands all have an independent association that holding hearings to be certain FTC oversight of disclosure is appropriworks collaboratively with their brand’s counterpart councils. In some ate for the risks U.S. franchisees take. cases, brands like Taco Bell have merged their two separate franchisee We explained to the legislative staff members we met with that in continued on page 31

Our Message To Congress: More Oversight Is Needed To Protect Franchise Owners

Here’s How To Make The NBLC Better Than Ever

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organizations into one. The mission of the Taco Bell Franchise Management Advisory Council (FRANMAC) is to “enhance the value of a Taco Bell franchise and improve and strengthen the business operations of the Taco Bell restaurant system, and to facilitate communication between the franchisees and Taco Bell Corp.”

While we unfortunately cannot envision a time when 7-Eleven, Inc. (SEI) would sanction one franchisee organization, it is important to note that the International Franchise Association recommends that members of franchise councils be elected by their peers instead of being appointed by their franchisor. The way it stands today, the NBLC is an appointed body, while the leadership of the National Coalition is an elected body.

As National Coalition Vice Chairman Rehan Hashmi wrote in Avanti magazine, because NBLC members are not elected, they do not “have a responsibility to their members to be aware, take notes and report back to their organizations as part of their duties as elected FOA representatives.”

NBLC members have no way to independently verify data or the reports SEI provides. The council has no budget to hire experts to ensure the information presented it must consider before making decisions is not slanted to benefit the corporation at the expense of its operators.

What’s more, an NBLC representative often feels beholden to the brand because, as Hashmi wrote, “As a franchisee on an NBLC committee, you go to their meetings and the franchisor picks up the hotel room and pays for meals and things lean their way a little more. When you are an independent association executive, your franchisee association pays for the hotel rooms and plane tickets and you go in with more credibility and authority.”

As part of her extensive research of franchisee councils, Denise Cumberland of the University of Louisville wrote, “An independent association is formed by franchisees, designed to benefit franchisees, funded by franchisees, and operated by franchisees. Franchise advisory councils, on the other hand, are formed by the franchisor and can be disbanded by the franchisor.”

Cumberland notes that “stress on the system” is what prompts the creation of independent associations. But, as franchise attorney Rupert Barkoff, who primarily represents franchisors, recently wrote: “In large measure, the framework for the relationship will be established by the culture of the franchise system toward franchisee participation in decision-making as well as the attitudes of the franchise organization and the leadership of the franchisee community. Will the

parties act out of fear and self-centeredness, crafting tools of destruction? Or will they approach their challenges in a spirit of hope and possibility, building bridges to draw the parties together. With the right attitude from both sides, a franchisee association can be an effective instrument in providing a better future for a franchise system.”

The National Coalition is eager to work collaboratively with SEI and the NBLC to build bridges and, ultimately, create a better future. For that to happen there needs to be trust. A great first step would be to empower the NBLC by populating it with franchisees democratically elected by their peers. The next step would be granting the council control over its agenda and work product. Finally, SEI has to demonstrate to its franchise owners that they have the freedom to speak up against a brand initiative or rule, without fear of retribution.

As investors in 7-Eleven, franchise owners have tremendous skin in the game.

We do not want to disparage our brand; we want it to thrive.

But, tamping down honest discussion and stacking the deck against franchise owners who want to work collaboratively to propel the brand forward is not the way successful franchise systems operate. Don’t just take our word for it, look around at many other successful systems, like Dunkin’ Donuts and Planet Fitness— which have open and healthy dialogue with their franchise owners.

In her article, “Benefits “An independent associaof Franchisee Associations,” tion is formed by franKaren Axelton wrote, “A good chisees, designed to franchisee association can do many things to help build a benefit franchisees, stronger franchise.” She also funded by franchisees, points out how the American Association of Franchisees and operated by franand Dealers only recommends chisees. Franchise adviinvestment in a franchise syssory councils, on the other tem that has a strong owners’ association that has been rec- hand, are formed by the ognized by the franchisor. franchisor and can be disIsn’t that what we all banded by the franchisor.” want?

We want your feedback.

If you have something to add about this topic, or another topic of importance to the 7-Eleven system, email us at: feedback@ncasef.com.

If we work together, we can solve the problems that are plaguing this system. #TogetherWeCanFixThisSystem

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Legislative Update Connecticut Raises Minimum Wage Connecticut senators recently voted to raise the state’s hourly minimum wage to $15 an hour in five yearly steps by 2023, reported Fox 61 News. Aer a six-hour debate, the Senate passed House Bill 5004, on a party line 21-14 vote. e bill is expected to be signed into law by Governor Ned Lamont, and the first minimum wage increase—to $11 per hour—will take effect on October 1 of this year. Aer that, the minimum wage will increase to $12 on September 1, 2020, to $13 on August 1, 2021, to $14 on July 1, 2022, and finally to $15 on June 1, 2023. Starting on January 1, 2024, and on each January 1 every year aer that, the bill requires the minimum wage to be adjusted by the percent change in the federal Employment Cost Index (ECI) for all civilian workers’ wages and salaries over the 12-month period ending on June 30 of the preceding year, as calculated by the U.S. Department of Labor’s Bureau of Labor Statistics.

“CONNECTICUT’S MINIMUM WAGE WILL REACH $15 BY 2023.”

Delaware Lawmakers Propose $15 Minimum Wage Democratic lawmakers are proposing to increase Delaware’s minimum wage to $15 an hour, reported the Associated Press. e state’s current minimum wage of $8.75 increases to $9.25 per hour on October 1. A bill introduced recently would increase the minimum wage to $11 on January 1, 2020, followed by a $1 raise at the start of each year until it hits $15 in 2024. e proposal comes aer Democrats who control both chambers of the General Assembly rammed through a minimum wage increase in the middle of the night on the final day of last year’s session. Republicans then withheld support for a key budget bill until Democrats agreed to delay implementation of the increase and to allow employers to pay minors and adult probationary workers a training wage 50 cents less than the minimum wage.

Washington Seeks To Change Overtime Pay Rules More than 250,000 workers in Washington state would be newly eligible for overtime pay by 2026 under a rule proposed by the state’s Department of Labor and Industries, reported the Associated Press. Under the proposal, employers with 50 or fewer employees would have to pay overtime to workers who are making less than $675 a week—or about $35,000 a year—starting July 1, 2020. For larger companies, workers earning less than $49,000 a year can be paid time-and-a-half pay when they exceed 40 hours a week. In 2020, the total number of employees affected would be about 77,000, growing to about 252,000 by 2026, when the overtime-exempt threshold for all employees in the state reaches $1,536 a week, or nearly $80,000 a year.

California Soda Tax Bill Out On Hold A bill that would have slapped a statewide tax on sugary drinks in California stalled recently when the lawmaker who authored it shelved the legislation until next year, reported CNBC. Assembly Bill 138 would have imposed a tax of 2 cents per fluid ounce on soda and other sugarsweetened beverages such as teas, and “California sports and energy drinks. It seeks to use has shelved the tax revenue to help fund programs to legislation that combat diabetes and other chronic health would impose conditions. e measure is opposed by the a sugary beverage industry as well as grocer groups drinks tax and the California Chamber of Commerce. until next e Howard Jarvis Taxpayers Association, year.” which opposes the bill, estimated the tax could generate more than $3 billion in new costs for Californians. According to the author of AB 138, Assemblyman Richard Bloom, the proposed soda tax measure will remain in the Assembly Revenue and Taxation Committee over the remainder of this legislative year and will move forward through the legislative process next year.

Two Bills In Congress To Ban Cashless Stores A pair of bills introduced in Congress recently would put a stop to retailers going cashless, reported MarketWatch. Reprecontinued next page

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Legislative Update sentative David Cicilline, a Democrat from Rhode Island, has authored legislation nicknamed the Cash Always Should Be Honored (CASH) Act. e bill would require cash to be accepted as payment for any goods or services sold at a physical retail establishment. Representative Donald Payne, a Democrat from New Jersey, introduced a similar bill, dubbed the Payment Choice Act. is bill, which was assigned to the House Financial Services Committee, would also bar retail businesses from refusing cash for payments. e two pieces of legislation come on the heels of state and city laws that have similarly banned cashless stores. Earlier this year, Philadelphia banned cashless stores, and New Jersey subsequently implemented its own policy.

San Francisco Bans Cashless Stores

“PHILADELPHIA, SAN FRANCISCO AND THE STATE OF NEW JERSEY HAVE BANNED CASHLESS STORES, SAYING THE PRACTICE DISCRIMINATES AGAINST LOW-INCOME PEOPLE.”

San Francisco lawmakers voted recently to require brick-and-mortar retailers to take cash as payment, joining Philadelphia and New Jersey in banning a growing practice that critics say discriminates against low-income people who may not have access to credit cards, reported the Associated Press. e vote by the Board of Supervisors was unanimous. Temporary pop-up stores and internet-only busi-

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Supporting Our Vendors As They Support Us

BY JAY SINGH, CHAIRMAN, NCASEF

Having served on the National Coalition’s Executive Board for over a decade, I’ve had the chance to visit a lot of trade shows, charity golf outings and general meetings organized by local FOAs. All of these events, as well as our annual National Coalition convention and trade show, are made possible by the generous support of our vendor community. We, as franchisees, can return this favor by placing orders with these vendors so they can receive a return on their investment. Our relationship with our vendors is symbiotic—they scratch our back, and we scratch theirs. It’s a winwin for all involved, as long as we keep up our end of the bargain.

Normally from day to day, when we get the new items package—which is now called the Weekly Dispatch—to order items through the SEI system, it contains lots of great deals put together by our vendors. While this is one good way to support our vendors, we can give them a bigger boost when we place orders with them during our trade shows, because this allows our vendors to continue to support our FOA and national events.

We should also support the vendors by placing orders through our local trade shows, golf tournaments and gen-

eral meetings to support our strong partnership. The truth is our vendors showcase products and deals during our local and national events that are not available through the SEI system, and until SEI approves these items, this is a great way of ordering them.

Recently, I had an opportunity to visit the Metro New Jersey FOA and 7-Eleven FOAC trade shows. To encourage their franchisees to place or-

ders, these FOAs offered cash or gift card incentives like $50 for placing a minimum of 20 orders, or $100 for placing 40 orders. At our national trade show in Long Beach in August we will offer entries to our raffle contest for every order placed, which has a luxury Mercedes SUV as the grand prize. Our vendors love this because it increases the number of orders they receive during our events.

“Our relationship with our vendors is symbiotic—they scratch our back, and we scratch theirs. It’s a win-win for all involved, as long as we keep up our end of the bargain.”

“Continue to order through your local FOA trade shows and other events, as well as though the National Coalition trade show, so we continue to give support to—and receive support from—our vendors.”

So my advice to all franchisees is to step up your ordering through local trade shows and other events, as well as though the National Coalition trade show, so we continue to give support to—and receive support from—our vendors.

I also recommend that if you are a smaller FOA, look to combine with other local FOAs to hold one big trade show in your area, or one big golf outing, etc. Our FOA trade shows are getting stronger now that many FOAs have started to join together for one combined event, which makes it easier for our vendors to participate and support. Our three FOAs in northern California—Central Valley FOA, Sacramento FOA, and Greater Bay FOA—have combined in one trade show. The Baltimore FOA, Suburban Washington FOA, and the Washington, D.C. FOA have combined to produce the Tri-State Trade Show. The Midwest FOA and the Alliance FOA have combined to produce a joint trade show, too. For several years, the continued on page 38 AVANTI M AY | J U N E 2 0 1 9

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Supporting Our Vendors continued on page 37

the NCASEF’s 44th National ConvenSan Diego FOA and the FOA of tion and Trade Show, I encourage you Greater Los Angeles have produced a to visit NCASEF.com and sign up to very successful joint trade show, and attend. We’ve got great seminars, an recently three Florida FOAs—South update to the lawsuit, a state of the Florida, Central Florida, and the coalition address, Disneyworld tickets, United Franchise Owners of North a dinner cruise on the Queen Mary, Florida and Palm Beach—have com- and, of course, our grand banquet and bined for one large charity fundrais“Our FOA trade shows are trade show. ing night to benAs always, fran- getting stronger now that many efit Swim Across chisee participation in FOAs have started to join America and our trade shows, as well together for combined events.” cancer research. as our meetings is of Who knows? utmost importance.

The Mercedes The more franchisees who participate GLA Crossover SUV we’re giving away in all of our events the better the event just might have your name on it! is for everyone. I would encourage all FOA leadership to provide incentives JAY SINGH CAN BE REACHED AT 702-249-3301 that motivate franchisees to attend.

OR JAYS@NCASEF.COM If you have not yet registered for

continued from page 24

in the hunt for vegetarian and vegan options, reported ABC 13 Eyewitness News. The company said it is exploring plant-based meat substitutes, but has no immediate plans to test them. • Juul Labs Inc is considering opening retail stores in the U.S., a move that would help the company cash in on the booming popularity of its ecigarettes, reported Reuters. Although the company has not made a final decision on the stores, the first one would open in Texas if Juul were to go through with its plan. • Former SEI executive vice president Darren Rebelez was recently named president and CEO of Casey's General Stores. After leaving 7-Eleven in 2015, and before joining Casey’s, Rebelez served as president of IHOP. • C-Store chain Pilot Flying J held its first-ever National Hiring Day on May 2, with the goal of hiring 5,000 new team members across its network of more than continued on page 74

Why Did You Become A 7-Eleven Franchisee In The First Place?

BY MICHAEL JORGENSEN, EXECUTIVE VICE CHAIRMAN, NCASEF

There is an old saying regarding career advice that says, “Find something you love to do and you’ll never have to work a day in your life.” With three of our four boys currently teenagers there is a lot of discussion in our home about what the future might have in store for each of them and our plans to help them on their individual paths. I can safely say that as a young man I didn’t have a goal to become a 7-Eleven franchisee.

A number of things led me to the 7Eleven business. I was working for the company as a field consultant, I believed in the business model and direction of the company, I valued the recognized brand, and knew I had the skills and knowledge necessary to operate successful stores. The most important considerations in my decision to franchise were financial (how much money could I make) and scheduling (the freedom to make my own hours and be available for my kids). While each franchisee has their own personal reasons for franchising, I think it is safe to assume the majority of us simply wanted to make money.

In their franchising ads, 7-Eleven boasts: “A gross profit split means we’re invested. Most franchisors take royalties on sales, but 7-Eleven has a different kind of business model. We share profits with our franchise owners, so we really are invested!

We’ve also built all kinds of tools and resources to help you reduce waste and increase gross profits. When you give your best effort, we’ll match it with ours—because your store’s success is as important to us as it is to you.”

I am extremely proud of my affiliation with the 7-Eleven brand. I have dedicated more than 20 years of my life to 7-Eleven.

“No individual franchisee is more valuable than the brand, but the brand is not more valuable than its franchisees.”

The leadership of the National Coalition has been accused of trying to harm the brand. This could not be farther from the truth.

The difference is in how we perceive the role of the franchisee and the role of the brand, and the value they both hold.

In a previous article, I wrote that franchisees have a symbiotic relationship with the brand.

Symbiosis is defined as a mutually bene-

ficial relationship between different people or groups. Both franchisees and the brand benefit from the relationship, but what happens when a particular franchisee or particular set of franchisees no longer benefits from the relationship? Or when the brand no longer benefits from the relationship with an individual franchisee? The simple solution is to just sever

the relationship, right? Only it’s not so simple, because there are financial ramifications. The best solution is to ensure balance and harmony remain within the relationship.

7-Eleven defines the brand as, “the mark, name, logo and identity of a company or business, and a franchise system’s most valuable asset.” I will not disagree with this definition, but I will add that franchisees are a close second. I doubt that you will find many people in the 7-Eleven system who would disagree. It is important to note that as a franchisee, the brand’s value to me changes if I cease being a franchisee, although the brand’s value does not change.

Over my 20 years with 7-Eleven I do not recall the use of the word “brand” as much as I have in the last two years.

Branding is very important for a successful business. Successful branding will build customer loyalty and drive sales and profits. It is important to build branding with continued on page 42

“The most important considerations in my decision to franchise a 7-Eleven were financial—how much I could make—and scheduling, to be there for my kids.”

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Why Did You Become A 7-Eleven Franchisee? continued from page 41

everyone on your team so the external message to customers is understood at all levels of the organization. If I could do a word cloud of all items 7-Eleven has published or presented in the last year or two, “brand” would be front and center and would dwarf all other words.

It is an exciting time at 7-Eleven, because our business is changing and we have new initiatives that can drive our business to new heights and help us win over new, loyal, customers in a highly competitive environment. 7-Rewards and 7-Now are at the forefront of these programs.

Franchisees have many concerns about the new 2019 contract that many have signed, some willingly, and others out of necessity, and the delivery contract (for those still on older contracts but opted in for delivery). These concerns regard the uncertain contractual obligations of these

programs both operationally and financially. These programs are part of building the brand, but the future financial reward remains unclear. Currently these programs are being funded, but there is no contractual obligation that they will continue to be funded. As these programs grow in customer acceptance, the financial impact of a shift in the way they are funded could have a significant impact on our financials.

So back to my question. Why did you become a 7-Eleven franchisee in the first place? I bet not one franchisee answered “to build a brand.” The NCASEF was accused of damaging the brand by attempting to call out inequities in the system and asking that these inequities be addressed, but in reality the NCASEF is working on behalf of franchisees and the brand. We value each piece in this relationship. No

individual franchisee is more valuable than the brand, but the brand is not more valuable than its franchisees.

In Jerry Maguire, the sports-oriented movie with Cuba Gooding, Jr. and Tom Cruise, Gooding’s character, Rod Tidwell, reiterates over and over, “Show me the money!” What he is really looking for is an agent who truly cares for what matters to him and his family, for an agent to put him first. In the end Jerry eventually does put Ron first, and the money follows. This is what most franchisees wanted when they franchised their 7-Eleven stores.

Well, it can happen. Every franchisee needs to make the same declaration.

“Show me the money!”

MICHAEL JORGENSEN CAN BE REACHED AT

JORGENSEN.NCASEF@GMAIL.COM OR 347-251-1828

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You Are Not Alone— Chapter 2 ERIC H. KARP, ESQ., GENERAL COUNSEL TO NCASEF

In the most recent edition of Avanti, I described a report of the Australian Joint Parliamentary Commission, which conducted an in-depth investigation of the franchise relationship between Australian franchisees and their franchisors and found systemic exploitation of some franchisees by a subset of franchisors and a regulatory framework that does not provide adequate protection against such practices.

Over the last several months, the relationship between Seven-Eleven Japan and its franchisees has also been in the news in ways that may remind you of the challenges you face dealing with internal and external challenges to your business.

By way of background, on June 22, 2009, the Japanese Fair Trade Commission issued a Cease-And-Desist Order against SevenEleven Japan. The Order had to do with the practice of Seven-Eleven Japan requiring franchisees to bear 100 percent of the loss associated with the disposal of unsold or unsalable fresh food and hot food. The Japanese FTC noted that the franchisor had a dominant bargaining position over its franchisees and that its practices have caused those franchisees “to lose opportunities to reduce the loss of the amount equivalent to the cost of such disposed daily goods according to their own rational business judgment.” The Order required Seven-Eleven Japan to cease such practices and to provide periodic training for its officers and employees and periodic audit by legal staff to ensure compliance with the Order and all other provisions of the Japanese Anti-Monopoly Act. The Consent Order can be found here: https://www.jftc.go.jp/en/pressreleases/yearly2009/jun/individual-000052.html More recently, there have been many news reports associated with the mandate imposed on Japanese franchisees requiring their stores to be operated 24 hours per day,

seven days per week. The same requirements are imposed on the United States franchisees.

In fact, under the 2019 franchise agreement, franchisees no longer have the discretion to close on Christmas Day. A shortage of labor in Japan has caused controversy between the franchisor and the franchisees. According to a Nikkei Asian Business Review article published on April 4, 2019 (“Labor Crunch in Japan Costs SevenEleven President His Job”), the chronic labor shortage in Japan has caused a management

As a result, the Japanese Federal Trade Commission recently announced that it will begin an investigation of the convenience store industry in Japan on “…whether 24/7 operating models and other restrictions are putting some franchises at a disadvantage.”

The investigation will include a questionnaire survey of franchise store operators during the summer of 2019. The survey will examine whether convenience store franchisors are unreasonably refusing demands from storeowners, including requests for

“The Japanese Federal Trade Commission recently announced it will begin an investigation of the convenience store industry in Japan on…whether 24/7 operating models and other restrictions are putting some franchises at a disadvantage.”

shakeup at Seven & i Holdings, which along with a chronic labor shortage is “…threatening the business model that powered the chain’s growth for more than four decades.”

The article goes on to say that some franchisees have rebelled against the 24-hour policy. One storeowner outside of Osaka shortened store hours in protest and other franchisees voiced their support. According to a published report, Seven-Eleven Japan sought to impose a fine of ¥17 million on the franchisee. The franchisor’s response, according to another news article, was to implement shorter hours on a trial basis at company-owned stores.

changing contract terms. This will be the first such survey of the Japanese convenience store industry in eight years.

In announcing the survey at a press conference, the Japanese FTC Secretary-General stated, “We are concerned whether franchise owners suffer unfair disadvantages.” A news report in The Mainichi, a Japanese daily news outlet, (“FTC to Probe Fairness of Dealings Between Japan’s Convenience Stores, Head Offices”) noted that Japanese 7-Eleven franchisees remain in a weak position and that the FTC will investigate whether that has created a disadvantage in violation of the Imcontinued on page 46

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You Are Not Alone—Chapter 2 continued from page 45

pact on Prohibition of Private Monopolization and Maintenance of Fair Trade. The same newspaper editorialized on May 27, 2019 (“Convenience Store Industry Needs to Depart From Current Business Model”) that the practice of shortening store hours at some stores on a trial basis and discounting good products with used-by dates or drawing near by rewarding shoppers with points, were small-scale changes not adequate to match the challenges. In short, said the editorial, “… major convenience store companies are slow to reform their operations apparently because they do not want to change their existing business model that has supported the firms’ big profits.”

U.S. franchisees have the advantage that waste and spoilage of hot food and fresh food is counted towards cost of goods sold, and thus the pain associated with that waste is

shared by both franchisor and franchisee. But there still are unresolved issues regarding how much fresh food and hot food franchisees are required to stock and the incremental labor costs associated with those items.

It is this same unequal bargaining power which has put U.S.-based 7-Eleven franchisees at a severe disadvantage, creating one-sided and unfair contract terms and policies. However, it is certainly useful for franchisees in the United States to know

that the challenges they face by adapting a decades-old franchise model in the context of evolving consumer tastes, rising labor costs, eroding margins and pressure to increase the sale of perishable items, are not confined to the United States. In addition, there is an opportunity to create and strengthen alliances between franchisees on different continents in order to share their concerns and strategize on ways to address them.

“It is certainly useful for franchisees in the United States to know that the challenges they face by adapting a decadesold franchise model in the context of evolving consumer tastes, rising labor costs, eroding margins and pressure to increase the sale of perishable items, are not confined to the United States.”

Vice Chairs’ Forum

IMPROVING YOUR GROSS PROFIT

BY PAUL LOBANA, NCASEF VICE CHAIRMAN, PRESIDENT, SOUTHERN CALIFORNIA FOA

With the minimum wage increasing in sit down with, or call or email, your cigarette cities and states across the country, it is be- reps to make sure you are not losing incentives coming very difficult for many of our stores to or allowances for your store. Each store will be remain profitable. While the different in the amount of upNBLC has been presented charge allowed for our custom redata on the factors affecting tails, so you must contact your our bottom line, SEI hasn’t Philip Morris representatives to done much to help us increase find out the maximum custom sales and profits. So francigarette retails for your store. chisees are starting to take the This has been done in many matter into their stores in my Market and hands. some individual fran“MINIMUM WAGE IS MAKING Franchisees are chisees have adapted this IT DIFFICULT FOR MANY doing many things strategy, and they have at the store level to seen very good results.

OF OUR STORES TO REMAIN boost gross profit, Obviously, the cigarette PROFITABLE.” like changing the manufacturers don’t like prices of certain products. One product in this, but this is the business we are in and franparticular that is showing positive results with chisees need to make money. Increasing the price increases is tobacco. Cigarettes generate price of a pack of cigarettes will increase your one-third of our sales, yet our cigarette gross gross profit substantially. profit is down 12 percent. However, it has been You can also increase the price of other proven that we can products in your store, but be wary that cusincrease our overall tomers might react negatively to the price “WE CAN gross profit by raising hikes of certain items. Customers are very senINCREASE OUR the price of each pack sitive to the price of beer, for instance. If we inOVERALL GROSS of cigarettes by 75 crease the price of beer, they won’t come back cents or $1. Of course to our store. However, if you change the price PROFIT BY our cigarette sales will of cigarettes, your smoking customers may not USING CUSTOM decrease a bit, but the like it but they will still pay it because they’re RETAILS ON THE profitability of the used to price increases on tobacco.

PRICE OF A PACK store will increase.

PAUL LOBANA If you choose to go OF CIGARETTES.” CAN BE REACHED AT this route, you must PAULLOBANA@AOLCOM OR 818.203.2527

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Franchisee Guest Column

WHY WE NEED AN INDEPENDENT NATIONAL COALITION, PART 2: THE NATIONAL COALITION IS THE ONLY HOPE FOR FRANCHISEES

By John R. Irvine Jr., Franchisee, Detroit, Michigan To read Part 1 of John Irvine’s threepart series on an independent National Coalition, see the March/April issue of Avanti, page 51. Avanti is available at online at www.issuu.com. Part 3 will be appear in Avanti July/August issue.

have a 44-year-old “WE BANDED TOGETHER WITH organization in FRANCHISEES FROM MULTIPLE SYSTEMS place, governed by AND SUCCEEDED IN GETTING an 80-person, elected ‘FAIR FRANCHISE’ LEGISLATION AS Board of Directors that can and is used THE SECOND MOST IMPORTANT to protect their rights The National Coalition is the only ISSUE FOR SMALL BUSINESS.” with the company hope 7-Eleven franchisees have of leveling the playing field between themselves and 7- and work for legislaNational Coalition organized a huge effort Eleven, Inc. Lacking a union, and without tion that could possibly help their situation. in which 7-Eleven franchisees from all In the ‘90s, I was the Legal and Legour own representation in management, over the country were getting their conislative Chairman of the National Coalifranchisees must look outside the corporagressmen to nominate them. We banded tion to gather and trade information, and tion. It was my job to go to Washington, together with franchisees from multiple to educate themselves about a very compli- D.C. four times a year and lobby Con- systems and succeeded in getting “Fair gress. We worked with the American cated and always changing system.

Franchise” legislation as the second most Over the years, the National Coali- Franchisee Association, which had a con- important issue for small business. None tion has had an interesting cast of char- gressman that introduced “Fair Fran- of this would have been possible without chise” legislation each year. The acters running it. Some were bound the efforts of the National Coalition. thing that struck me at the and determined to protect franIn 1989, we had the 7-Eleven banktime was the way a con- ruptcy. Management was afraid that franchisees, some were looking to gressman would greet chisees would bail on the system, so they gain favor with management, you. They would stick offered to extend all contracts to the year and one even used it as a out their hand and say, 2000. If the franchisee stayed, the fransteppingstone for a job with “Welcome John, are you chisee would receive 50 percent of the fran7-Eleven, Inc. One chairman coming to my cocktail chise fee when the franchise was sold. This was aggressively working party tomorrow night?” Of on lobbying Congress for “WHATEVER THE course the cocktail party was an addendum, and it also included a “Fair Franchising” legislaNATIONAL cost $1,000 to go to, and proviso—that for two years before 2000 the tion, and the next chairfranchisee had to go through an operaCOALITION IS, the National Coalition tional review in order to get renewed. man worked on building a war chest—he got the OR BECOMES, IS didn’t have that kind of Franchisees understood that during treasury up to $3 million.

UP TO YOU THE money. It was then that I those last two years you would basically Whatever the National MEMBERSHIP.” realized the United States become a slave to management. So franhad the finest government chisees began looking for a leverage point Coalition is, or becomes, is that money could buy. up to you the membership. It is easy for the to eliminate “Operational Review.” FranIn 1995, President Clinton held “The National Coalition to slip into simply bechisees in San Diego discovered that the coming a debate club, where problems are White House Conference on Small Busi- company was accepting Slurpee maidentified but no solution is offered. 7- ness.” To go to this affair you had to get chines and roller grills instead of the lowEleven franchisees are fortunate in that they your congressman to nominate you. The est cost of goods, a violation of the continued on page 54

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Franchisee Guest Column continued from page 51

agreement. The San Diego FOA found an derstand what has happened in the past, toothless tiger. Whenever the National gets attorney willing to take the case on a con- and what are the legal and economic prob- in an adversarial position with managetingency basis. The San Diego case was lems that we face today. What can we learn ment, the first casualty is vendor support. named OFFF and represented all stores from our success and failures of the past? Relying too heavily on money from venin California. I believed that the company The first lesson that we must learn is that dors is a big mistake. The United States would be much more likely to settle if we without leverage, 7-Eleven management is spends more on the military than all other increased the potential damages. Al- not going to work to make things better for nations combined. They do so to discourthough I was the president of one of the franchisees. We must understand, that age other nations from attempting to mess smallest FOAs in the country, I was an ac- they look at us as both a cash cow and a with us. If we really want a National Coalition prepared to work in our best interests, tive participant in the “OFFF/Valente” then we want a National Coalition with $10 lawsuit. A sister suit to OFFF, Valente million in the bank. China’s Chairman covered the remainder of the country.

Mao Zedong said, “Power comes from the The company, coming out of bankbarrel of a gun!” That congressman asking ruptcy, was still in terrible economic me if I’m coming to his cocktail party shape. For $450 million, Seven Eleven tells me that power comes from that Japan received 68 percent of the 7-Eleven green stuff in your wallet!

USA’s stock. The Japanese did not want Whether the National Coalition is 100 percent of the stock because that working on lobbying for fair franchise legwould have made them liable for all of 7islation or defending us in the courts, it Eleven’s liabilities, and 7-Eleven’s liabilitakes money and lots of it. The ties far exceeded its assets. When National Coalition should never 7-Eleven offered to settle the case, “WHAT CAN WE LEARN FROM OUR find itself trying to raise money in lawyers wanting a piece of the acSUCCESS AND FAILURES OF THE a crisis. The National Coalition tion came out of the woodwork.

PAST? THE FIRST LESSON THAT should be in the position that, Part of the settlement we got WE MUST LEARN IS THAT should they find themselves in a was a new 15-year agreement that could not be worse economically WITHOUT LEVERAGE, 7-ELEVEN court battle, they must be prethan the 1997 agreement, and all MANAGEMENT IS NOT GOING TO pared financially to take the case franchisees at the end of that WORK TO MAKE THINGS BETTER all the way to the Supreme Court.

We have an ex-chairman working agreement would be qualified for FOR FRANCHISEES.” for 7-Eleven, Inc., so they know renewal with the then current agreement. Together, the company and contract employee. How can they extract exactly what the National Coalition’s fiplaintiffs wrote the 2004 agreement, be- the most amount of money out of us up nancial position is and how easy it would front, and then get us to work for pay rates be to simply spend the National under the cause it was mandated in the settlement.

Franchisees mistakenly believed that far below the wage rates paid by their com- table in any legal dispute. ______ 7-Eleven management would negotiate the petitors?

Current 7-Eleven franchisees are lucky 2019 agreement in good faith, as they had JOHN IRVINE End Part 2. The CAN BE REACHED AT done with the 2004 agreement. The only that they have a well-organized 44-year-old JOHNIRVINE1776@GMAIL.COM next installreason they did it for the 2004 agreement association of fellow franchisees. The NaOR 248-535-6805 ment of John tional Coalition and its associated FOAs was because it was mandated by the Irvine’s threeOFFF/Valente case settlement agreement. are the only hope franchisees have of lev- part series on an independent National Management in 2018 played franchisees eling the playing field with 7-Eleven, Inc. Coalition, How To Maximize Effectiveness like a fiddle, acting as if they were inter- The National Coalition can only be as ef- Of The National Coalition, will appear in ested in franchisee input for the 2019 fective as the franchisees want it to be. The Avanti’s July/August issue. To read part 1 agreement. The 2019 agreement reflects reason I wanted to give you the history of see Avanti’s March/April issue page 51. the fact that franchisees had no leverage to the struggles franchisees have had in the Both issues are available at www.issuu.com. past is to identify one glaring problem: negotiate a fair and equitable contract.

As I said in the opening, we must un- Without money the National Coalition is a 54

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Franchisee Guest Column

OF CULTURE AND RELATIONSHIPS

By Jack Rugen, Soundwave, Former President, United Franchise Owners of Long Island New York I had been a part of this franchise system for over 30 years until early this year. I sold my store and am happily retired. In the ‘80s after the Thompson brothers left, the system was simple, one-dimensional and felt more like a family business. Today, it has grown into a multi-dimensional system affected by its physical size and scope. In those days, the culture of the then-Southland Company was more amenable to a shared partnership, which, in turn, improved the relationship. A franchisee could pick up a phone and call CEO Clark Mathews. The franchise agreement was much simpler, and sales were soar-

cause it doesn’t get its way. It is of upmost importance that both parties improve the prevailing franchise rapport. To improve the relationship between the two parties, it is necessary that all the reasons behind directives are explained and clarified to franchisees, while maintaining civility toward each other. In other words, the parties must act like adults, not children.

“THE LONG-DISTANCE CONNECTION FRANCHISEES HAVE WITH 7-ELEVEN HAS INCREASED THE COMPLEXITY OF MANAGING THIS PARTNERSHIP EFFECTIVELY.” ing ten to fifteen percent year over year. In my newfound post 7-Eleven era, I believe I’ve acquired the wisdom and fortitude to make the following claims and opinions.

The 7-Eleven franchise agreement defines the terms of the relationship with 7Eleven to ensure that both parties are aware of their rights and responsibilities. The longterm and long-distance connection franchisees have with 7-Eleven has increased the complexity of managing this partnership effectively. Therefore, it is crucial that both parties work to maintain this relationship and ensure mutual and continued success.

Consistency and engagement are essential for growing the relationship with corporate. Although franchise leaders have been successful on the local level, it has been a struggle to nurture this relationship at the national level. Of course, the growing number of lawsuits has not helped in fostering that relationship, and the attitude of the company is that of a spoiled little brat who continually stamps its feet and exercises its power be-

Effective communication should be frequent, honest and transparent, because the key to a successful bond with SEI is trust! 7-Eleven needs to ensure that there is no lack of communication on any level of the system. While it is tempting to rely on technology and 7-HUB for all communication to franchisees, I believe this has created a strong disconnect between SEI executives and franchisees. Although corporate may have confidence in posting regular electronic content to keep in touch with their franchisees, communication must be balanced and involve both parties. 7-Eleven cannot rely solely on posted electronic content to maintain a relationship. Personal faceto-face interaction with SEI executives on all levels creates a much better connection and fosters trust. It is all too common for emails to be misinterpreted, creating disruptive miscommunications between 7-Eleven and franchisees.

Relationships are built through effective, two-way communication. A successful relationship is dependent on a shared culture of respect and mutual goals. Without these

commonalities, the relationship is likely to fail. Respect and commitment are key to any successful relationship, both personal and professional, and the franchisor-franchisee relationship is no exception.

It is essential to adapt to the technological and generational changes in the system, while remaining committed to a strong relationship between franchisees and SEI. While times and technology will always change, the culture created by franchisors for their franchisees must remain constant.

Success should not be the end goal, but instead the starting point of the relationship. The culture created by the system must be fair and agreeable to both parties.

SEI and its franchisees must be committed to each other, their respective responsibilities, and common goals. A crucial piece of

“7-ELEVEN CANNOT RELY SOLELY ON POSTED ELECTRONIC CONTENT TO MAINTAIN A RELATIONSHIP.” this relationship is the financial success of franchisees. SEI must accept shared responsibility for this goal because the success of franchisees leads to the continued success of SEI. Franchisees can be assured that the National Coalition’s Board of Directors will commit to creating effective communication with corporate’s senior executives to build a relationship based on trust, honesty and transparency. After all, this is essential for their mutual success.

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Vendor Guest Column

Employee Safety Training Matters John Harp, CSP, ARM Mitsui Sumitomo Insurance Group

Employee turnover and inadequate training directly affects your bottom line and can be a struggle for the best of c-stores. Effective training leads to a more successful employee who is safer and is more comfortable with customers, resulting in improved sales and lower costs. Ineffective training can increase turnover, which leads to time that could be spent more productively elsewhere.

WHY TRAIN? Training is one of the most important tools in helping an employee succeed, and promotes incident and injury prevention.

The objective of safety training is to help your employees make safer decisions in the store. For example, “Should I lift two cases of water at once to stock the vault because it’s faster?” or “Someone steals a 12-pack of beer and runs out the door—should I follow them to get the license plate of the vehicle?” This type of decision-making is common for your employees, and through quality training a safe outcome will occur more often. Something else to consider is that you want your employees to make good decisions in your absence. Quality training will influence this behavior.

There are many reasons that safety training is important, including legal requirements. OSHA—regardless of your state—has safety training requirements enforceable by law, and without compliance the agency can levy fines. Common OSHA required topics include: • Hazard Communication—Safe use of chemicals and how to use a Safety Data Sheet.

• Fire and Evacuation—Your employee must know what to do in a fire or other emergency.

• Walking and Working Surfaces—Show employees how to identify and correct slip,

trip and fall hazards (ladders and step stools should be covered, too).

• Medical and First Aid—What to do when first aid or medical care is needed, and the use of the first aid kit.

• General Duty Clause—Information to help employees understand what is needed to “keep the workplace free of recognizable hazards.” This should include utility knives, lifting and crime/assault prevention.

WHEN SHOULD TRAINING BE DONE? New employees should be trained their first day following any SEI guidelines for the Computer Based Training (CBT) orientation. Although an employee may have prior retail experience, the 7-Eleven operation may be completely different and they must understand your operation and expectations for safety.

Refresher training is also important, as an employee cannot recall everything covered those first few days. Reminder training also should be completed after a near miss, incident or injury. If an employee cuts their hand opening a case of donuts, it’s time for a reminder for all the employees. If an employee is threatened by a shoplifter or assailant, there should be a reminder to the staff on procedures regardless if an injury occurs. The outcome of an incident or nearinjury should not dictate the need for refresher training.

critical that you or your manager actively engage the “You want your employee before employees to and after the CBT. make good As Management, decisions in you are in the best your absence. position to gauge Quality training the employee’s comwill influence prehension and furthis behavior.” ther understand their strengths and weaknesses, and most importantly verbalize your safety expectations.

HOW TO MAKE TRAINING EFFECTIVE Training involves many methods with CBT now prevalent. Considering that people have different learning styles, this method alone with interactive quizzes might result in 20 percent recall or retention. This is not adequate for important safety and customer service learning. Effective learning requires a simple method: Tell, Show, Do, Practice and Review.

WHO SHOULD DO THE TRAINING? The SEI CBT program provides most of the necessary safety training orientation for a new hire, but watching and interacting with a computer program provides information that is only partially retained. It’s

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Vendor Guest Column continued from page 59

This means certain steps must be in place to assure your employee effectively retains the key information after the CBT, and it’s important to recognize that not all employees will learn the same way. A younger employee will likely respond to CBT supplemented with interaction, quizzes, games, etc., in short segments. An older employee may need more verbal interaction, and all employees need real-life examples.

STEPS TO TRAINING SUCCESS 1. Combine verbal with online training.

2. Explain and then demonstrate the job procedures.

3. Have the employee demonstrate they understand.

4. Praise for what is done correctly.

5. Correct the technique if necessary.

6. Follow-up and repeat if needed.

7. Encourage the employee to share their expertise.

A TRAINING EXAMPLE— HOW AND WHEN TO MOP: 1. Describe when to mop and where.

2. Show the proper recipe for the cleaning solution and safety precautions.

3. Demonstrate mopping technique (e.g. one hand or two, side to side, walking backward while maintaining awareness “Refresher behind, etc.). training is also 4. Follow with a dry important, as mop when possible. an employee 5. When and where cannot recall to use the “wet floor” everything signs. covered in his 6. Ask for any feedor her first back or challenges few days.

Reminder they may have with

training also should be completed after a near miss, incident or injury.”

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the task.

This may seem timeconsuming and complicating a simple job, but one cannot assume an employee will understand how to safely handle a training topic that can result in a slip and fall for employees or customers.

SUMMARY New employees will bring their habits or traits with them, and these cannot be changed by simply watching a computer program or seeing a poster. With a tell, show, do, practice and review approach, behaviors and techniques can be altered with follow-up and reinforcement. Consider that non-verbal learning also occurs. If an employee observes another employee or manager correctly lifting a BIB or a single case of drinks instead of two at once, the desired behavior will occur more often.

After an employee completes their initial orientation, should the learning stop? As an employee gains experience and comfort with the job there are unending reasons to provide reminders and reinforcement training to ensure old or undesired habits do not return.

Training provides good information, but embedding the material into daily activities—whether it’s responding to an assault or stocking drinks in the vault—requires a steady stream of feedback and reminders, verbal and non-verbal. And remember, in addition to owner, CEO, Human Resources

“It’s critical that you or your manager actively engage the employee before and after the CBT.” Manager and more, you are the most important teacher.

For free training resources, contact your insurance company or broker/agent.

MITSUI SUMITOMO INSURANCE GROUP

John Harp, CSP, ARM Risk Engineering Consultant jIharp@msigusa.com 908-604-2951

Greg Rice Claims Account Executive grice@msigusa.com 513-719-8405

“New employees will bring their habits or traits with them, and these cannot be changed by simply watching a computer program or seeing a poster. With a tell, show, do, practice and review approach, behaviors and techniques can be altered with follow-up and reinforcement.”

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McLane UIN 239257

2019 AFFILIATE MEMBERS

FOR FRANCHISEES AND VENDORS:

The National Coalition’s Affiliate Member Program Twice a year manufacturer representatives in the National Coalition’s Affiliate Member Program have a chance to meet with the presidents and vice presidents of the Coalition’s 43 Franchise Owner’s Associations.

Each of the FOAs represent between 15 and 400 franchised stores, and all are located in the 33 states in which 7-Eleven operates stores.

The National Coalition’s Board of Directors meets four times per year, and two meetings include an extra day for an Affiliate Member meeting. Each meeting includes presentations from the franchise community, and/or industry executives, plus roundtable discussions, breakout sessions, and group social events that provide time for one-on-one networking.

Affiliate Member Signup If your company has an interest in coming to the October 21-22, 2019 Affiliate Member meeting in Atlantic City, New Jersey, visit www.NCASEF.com to register as an Affiliate Member. The representatives you designate will then receive an email invite to the meeting.

Each FOA brings a president and a vice president to all Affiliate and Board meetings. Each Affiliate Member (and only Affiliate Members) has the opportunity to purchase presentation time at National Coalition Board Meetings to present their latest and greatest products to the Board.

All Affiliate Members receive the National Coalition’s FOA list of Presidents and Vice Presidents throughout the country and contact information for these FOA leaders. Each Affiliate Member can have up to two representatives at the meetings. During breakout sessions and roundtable discussions vendor representatives can ask any question and

Board Presentations If your company would like to present before the National Coalition Board of Directors at the August 4-5, 2019 and October 21-22, 2019 Board Meetings in Long Beach, California and Atlantic City, New Jersey, contact Meeting and Trade Show Coordinator John Riggio at johnr@jrplanners.com, or 262-275-3086.

bring up any topic before the group or among individual FOA leaders.

2019 AFFILIATE MEMBERS Franchisees: Call or email the representatives below if you have questions for them or simply want to speak to a representative from their company.

5-HOUR ENERGY Brad Margheim 1021 Stoneway Drive Denton TX 76210 972-948-2481 bmargheim@fivehour.com

ADVANTAGE SOLUTIONS Jennifer Hunter 4401 West Gate Blvd, Suite 200 Austin TX 78745 512-983-4468 jennifer.hunter@advantagesolutions.net

ACOSTA SALES & MARKETING Beth Coldsmith 6106 Mesa Grande Austin TX 78749 512-301-9717 512-657-4317 bcoldsmith@acosta.com

AJINOMOTO WINDSOR Steve Horine 4217 Chetham Drive Fort Wayne IN 46835 260-492-9797 260-413-1315 260-492-2188 steve.horine@ajinomotofoods.com

AL CAPONE/INTERCONTINENTAL CIGAR Mike Callahan 1985 Winchester Dr Frisco TX 75033 800-992-4858 786-423-1761 954-450-1449 mcallahan@alcapone-us.com ALTRIA GROUP DISTRIBUTION James Duke 6601 W. Broad Street Richmond VA 23230 804-484-8151 407-375-0935 james.duke@altria.com

ARIZONA BEVERAGES Ryan Flanagan 1 Arizona Plaza, Suite 400 Woodbury NY 11797 516-283-8986 516-216-2143 516-812-0465 rflanagan@drinkarizona.com BARBOT INSURANCE SERVICES John Barbot 9001 Grossmont Blvd #711 La Mesa CA 91941 619-337-0290 619-609-1882 619-337-2703 jcbarbot@barbotins.com continued on page 64

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BEL BRANDS USA Jacob Shalen 30 S. Wacker 30th Floor Chicago IL 60606 219-718-2220 jshalen@belbrandsusa.com BIG IDEAS MARKETING Marc Segal 10315 S Dolfield Rd Owing Mills MD 21117 888-908-8697 443-277-0223 410-654-8792 marc@bigideasmarketing.com BLUE BUNNY ICE CREAM Randy Martin 5915 Caymus Loop Windermere FL 34786 712-500-4108 407-340-3265 712-500-3256 grmartin@bluebunny.com BON APPETIT Mike Kawas 4820 E. 50th Street Vernon CA 90058 913.708.5526 323-584-1075 m.kawas@bonappetitbakery.com

CALIFIA FARMS Sean Lynch 1321 Palmetto Street Los Angeles CA 90013 619-756-8335 seanl@califiafarms.com kaitlinopierce@outlook.com CBD CURE Hasin Siddique 28348 Constellation Road Valencia CA 91355 323-652-1412 acesiddique@cbdcure.com CHOBANI Aaron Steinbach 23902 Hartford Springs Trail Katy TX 77493 402-250-9985 aaron.steinbach@chobani.com CINTAS CORPORATION Timothy Monjauze 14792 Franklin Ave Tustin CA 92780 323-371-5783 323-371-5783 monjauzet@cintas.com COCA-COLA/MMBU/ SIMPLY Kelly Frederick 5800 Granite Parkway, Suite 900 Plano TX 75024 979-319-6112 kfrederick@coca-cola.com CONAGRA BRANDS Chad Keener 3853 Ferndale Lane Frisco TX 75034 214-842-1473 chad.keener@conagra.com

CAB ENTERPRISES Kaitlin Pierce 300 Great Oaks Blvd, Suite 325 Albany NY 12203 817-333-4196

COOKIES UNITED Rob Lange 141 Freeman Ave Islip NY 11751 631-581-4000 631-741-8953 rlange@cookiesunited.com

CROSSMARK/ JOHNSON & JOHNSON Paul Maione 917 Westwind Drive North Palm Beach FL 33408 908-797-2154 paul.maione1@crossmark.com

FERRARA CANDY Samantha Richard 17335 Hwy 40 Folsom LA 70437 985-264-4493 985-264-4493 samantha.richard@ferrarausa.com

DEL MONTE FOODS Tyson Billingsley 205 North Wiget Lane Walnut Creek CA 94598 707-344-1512 707-344-1512 tyson.billingsley@delmonte.com

FIJI WATER Robert Dunsworth 11444 W. Olympic Blvd. Suite 210 Los Angeles CA 90064 773-895-7866 robert.dunsworth@fijiwater.com

DOUBLE AA CONSULTING Mark Gramlich 3601 Rottino Drive McKinney TX 75070 469-400-6706 mgramlich@doubleaaconsultants.com DS TIGER & COMPANY Jeff S. Dole 11700 Preston Road #660-234 Dallas TX 75230 214-543-7236 jdole@DSTiger.com ECOLAB David Read 4050 Corporate Drive, Suite 100 Grapevine TX 76051 413-265-5054 david.read@ecolab.com

FRANKFORD CANDY John Wetherby 9300 Ashton Road Philadelphia PA 19114 215-735-5200 215-630-2218 jwetherby@frankfordcandy.com GLANBIA PERFORMANCE NUTRITION CENTRAL Terrence Lombard 3500 Lacey Rd., Suite 1200 Downers Grove IL 60515 224-254-3039 tlombard@glanbia.com GLANBIA PERFORMANCE NUTRITION WEST Jimmy Gutierrez 7692 Alderwood Ave Corona CA 92880 714-604-7039 331-452-3683 jimmygutierrez@glanbia.com continued on page 67

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GOLD RUSH DISTRIBUTION Doug Lubushkin 2001 Crow Canyon Road San Ramon CA 94583 702-596-9313 doug@keanecap.com

JUUL LABS Cole Garab 560 20th Street San Francisco CA 94123 706-570-0206 coleg@juul.com

MCLANE COMPANY INC. Anthony Woodward 6201 Northwest HK Dodgen Loop Temple TX 76504 480-349-2066 254-771-7097 anthony.woodward@mclaneco.com

GOOD TIMES TOBACCO Jim Stanford 8408 Temple Terrace Hwy Tampa FL 33637 813-217-3318 jim.stanford@goodtimestobacco.com GT'S LIVING KOMBUCHA FOODS Alan Bassett 11060 South State Hwy 83 Franktown CO 80116 323-919-0393 719-439-2889 abassett@drinkgts.com HEINEKEN USA Ryan Puskala 360 Hamilton Ave, Suite 1103 White Plains NY 10601 513-498-6507 513-498-6507 rpuskala@heinekenusa.com IMPACT SALES & MARKETING Diane Drew 1851 Windmill Run Wimberley TX 78676 512-847-3284 512-847-3284 ddrew@impact-sales.net JACK LINK'S Jason Link 1 Snack Food Lane Minong WI 54859 608-213-3361 jason.link@jacklinks.com JOHNSONVILLE SAUSAGE Eugene Rech PO Box 906 Sheboygan Falls WI 53085 920-453-6960 920-918-9102 920-453-2221 grech@johnsonville.com

MCKEE FOODS Rick Matthews 10260 McKee Road Collegedale TN 37315-0750 423-718-5157 423-718-5157 rick.matthews@mckee.com

KELLOGG'S Ryan Herrin 3029 Le Manns Street Midlothian TX 76065 863-838-5883 863-583-0942 ryan.herrin@kellogg.com KEURIG DR PEPPER April Taylor 5301 Legacy Drive Plano TX 75024 214-274-6994 972-673-3766 april.taylor@kdrp.com KRAFT HEINZ COMPANY Megan Sparks 1617 N Flagler Drive, #1003 West Palm Beach FL 33407 224-374-6600 megan.sparks@kraftheinzcompany.com

MEGAMEX FOODS/ HORMEL-DON MIGUEL Todd Ginley 333 S Anita Drive, Suite 1000 Orange CA 92868 972-670-8875 972-670-8875 twginley@mmxfoods.com MILLERCOORS BREWING CO. Bernard Williams 7800 North Dallas Parkway, Ste 400 Plano TX 75024 404-721-8448 312-496-2700 accts payable bernard.williams@millercoors.com MONDELEZ INTERNATIONAL Heather Johnson 4523 Avenue B Austin TX 78751 917-612-3265 917-612-3265 heather.e.johnson@mdlz.com

2019 AFFILIATE MEMBERS MONSTER ENERGY COMPANY Frank Gambina 1 Monster Way Corona CA 92879 949-291-1731 949-291-1731 frank.gambina@monsterenergy.com MORINAGA AMERICA Jacob Heller 4 Park Plaza, Suite 750 Irvine CA 92614 949-732-1155 x116 915-504-9502 949-732-1158 jheller@morinaga-america.com MOTHER PARKERS TEA & COFFEE Peter Doyle PO Box 920779 Houston TX 77292 713-682-8250 832-725-1749 713-682-0530 pdoyle@mother-parkers.com MSIG Michael Finati 15 Independence Blvd.

Warren NJ 07059 908-350-1791 848-702-6933 mfinati@msigusa.com continued on page 68

KRETEK INTERNATIONAL Scott Gibson 5449 Endeavour Court Moorpark CA 93021 805-744-4160 805-531-9388 scottgibson@kretek.com LIFEWAY FOODS Chris Vander Laan 6431 W Oakton Street Morton Grove IL 60053 859-444-1668 chrisv@lifeway.net

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NATURE'S BOUNTY CO. 2100 Smithtown Ave. Ronkonkoma NY 11779 NESTLE PROFESSIONAL Susan Davis 3916 Vintage Place Flower Mound TX 75028 972-355-6477 214-695-8389 susan.davis@us.nestle.com NESTLE USA Chip Vineyard 1202 Lakewood Drive McKinney TX 75072 214-534-5721 214-534-5721 480-379-4010 chip.vineyard@us.nestle.com

NUTRABOLT/HIGH BREW/CELLUCOR (C4) Hagen Panton 3891 S Traditions Drive Bryan TX 77807 941-356-7546 hpanton@nutrabolt.com NUTRIAIR Josh Matzkin 4700 140th Ave N, Suite 112 Clearwater FL 33762 813-857-5213 josh@nutriair.com OBERTO BRANDS Ryan Dinsmore 7060 Oberto Drive Kent WA 98032 479-426-3523 ryan.dinsmore@oberto.com

OXYGEN PLUS Tammy Brisker 5500 Lincoln Drive, Suite 160 Edina MN 55436 952-955-8880 817-253-0936 tammy@oxygenplus.com PAYALITY Chet Reilly 1600 Draper Street Kingsburg CA 93631 559-634-1001 559-269-2984 888-677-7160 chet@payality.com PEPSICO, INC. Kent Montgomery 1800 Preston Park Blvd. # 225 Plano TX 75093 972-334-2050 kent.montgomery@pepsico.com

NESTLE WATERS NORTH AMERICA Barbara Brown 1322 Crestside Drive Suite 100 Coppell TX 75019 832-423-1572 832-423-1572 barbara.brown@waters.nestle.com NEW THERMOSERV Leslie Williams 3901 Pipestone Road Dallas TX 75212 972-989-8431 leslie.williams@ntl-brands.com

ORGANIC AMAZON Michael Simon 104 Crandon Blvd, Suite 409 Key Biscayne FL 33149 305-962-5395 msimon@organicamazon.com OUTLAW ENERGY/ LIQUID CAPITAL Jesus H. Delgado-Jenkins 1700 Pacific Avenue Dallas TX 75201 570-578-2055 214-415-0912 jdelgadoj@icloud.com

PERFETTI VAN MELLE USA Colt Bearden 3645 Turfway Road Erlanger KY 41018 817-538-8693 817-538-8693 PRAIRIE CITY BAKERY Tim Clark 7204 NE 84th Court Kansas City MO 64157 913-636-6614 tclark@pcbakery.com

PROCTER & GAMBLE Javier Parga 203 Nogalitos St. #3 San Antonio TX 78204 408-832-9430 parga.j.1@pg.com PROMOTION IN MOTION, INC. Scott Abajian 23652 Meadcliff Pl Diamond Bar CA 91765 909-717-3775 909-717-3775 sabajian@promotioninmotion.com RED BULL NORTH AMERICA Clint Harshman 1233 Dodgeton Drive Frisco TX 75033 704-626-8217 704-626-8217 clint.harshman@redbull.com SAPPORO USA James Kane 2271 West 205th, Suite 104 Torrance CA 90501 310-383-2156 jkane@sapporousa.com SERENDIPITY BRANDS James Christensen 200 Crossways Park Drive West Woodbury NY 11797 480-689-5962 612-490-9470 jchristensen@serendipitybrands.com

PRESSTINE MARKETING Danny Lo Priore 543 Lepine Ave Dorval QC H9P 2S9 514-636-2070 514-704-2413 continued on page 70

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SMOKEY MOUNTAIN SNUFF Richard Hunsberger 5505 Wisdom Court Waco TX 76708 214-914-5531 214-914-5531 254-836-1517 rhunsberger@smokeyusa.com SNYDER'S LANCE David Galindo 9209 West Los Gatos Drive Peoria AZ 85383 800-233-7125 Ext 5393 623-640-5521 623-640-4945 dgalindo@snyderslance.com

STORCK USA Tony Harper 8809 E. Long Court Centennial CO 80112 312-494-5912 312-256-3745 312-494-7912 tony.harper@us.storck.com SWEDISH MATCH NORTH AMERICA Aaron H Choate 403 Wellington Court Southlake TX 76092 817-312-2017 817-312-2017 877-860-7481 aaron.choate@swedishmatch.com

TWEAKER ENERGY DRINK Linnea Solbrook 11075 Harry Hines Blvd Dallas TX 75229 972-488-8806 214-843-7012 972-488-8840 linnea@tweakershot.com UNITED BRANDS Michael Michail 5930 Cornerstone Court West, Suite 170 San Diego CA 92121 619-461-5220 619-778-1529 619-461-8952 mmichail@unitedbrandsco.com

SPIKE, LLC Giovanna Nease 1850 Reliable Circle Colorado Springs CO 80906 719-473-5500 805-660-4755 719-473-7700 gn@getspike.com ST. KILLIAN IMPORTING Victoria Semos 2930 W. Jefferson Blvd Dallas TX 75211 214-727-0254 214-727-0254 victoria.semos@stkillian.com

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SWISHER INTERNATIONAL Ken Ramirez 1033 Buckbean Branch LN W St Johns FL 32259 904-312-1725 kramirez@swisher.com TELL INDUSTRIES Kane Snow 6255 N. Hydraulic Ave Park City KS 67219 316-260-3297 kane@tellindustries.com

UP IN THE LAB, INC Sidney Richlin 269 South Beverly Drive, Suite 949 Beverly Hills CA 90212 424-702-1844 310-864-9272 sidney@upinthelab.com UTZ QUALITY FOODS Todd Smeach 900 High St. Hanover PA 17331 717-465-5693 tsmeach@utzsnacks.com VITA COCO Tom Puntoompoti 250 Park Ave South 7th Floor New York NY 10003 718-614-8592 tpuntoompoti@vitacoco.com

VIXXO CORPORATION Regina Coleman 11333 N. Scottsdale Rd Scottsdale AZ 85254 925-756-7075 916-217-5130 regina.coleman@vixxo.com WIND RIVER SALES & DISTRIBUTION Tim Chauncey 4870 Sadler Road, Suite 300 Glen Allen VA 23060 804-205-5075 940-273-6454 tchauncey@windrivertobacco.com WONDERFUL PISTACHIOS & ALMONDS Holly Hines 1063 Enchanted Rock Drive Allen TX 75013 469-795-6548 214-701-5282 holly.hines@wonderful.com YOMM'S Nick Quast 15305 Dallas Parkway, Suite 300 Addison TX 75001 972-715-2001 214-229-8047 972-715-2099 nquast@yomms.com

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Legislative Update nesses such as ride-hailing companies would be exempt from the new rule, as would food trucks, which say they lack the resources to handle cash. e move comes aer the rollout last year of cashless Amazon Go stores, which require customers to scan an app to enter. Whatever items customers take are automatically tallied in a virtual cart and charged to a credit card. Amazon bowed to pressure in April and agreed to accept cash at more than 30 cashless stores.

“BEVERLY HILLS RETAILERS HAVE UNTIL JANUARY, 2021 TO CLEAR THEIR SHELVES OF TOBACCO PRODUCTS.”

Beverly Hills Ends Tobacco Sales

Beverly Hills recently became the first U.S. city to end most tobacco sales, reported the Associated Press. Under the new ordinance, 24 tobacco-selling establishments—mainly gas stations, pharmacies, and convenience and grocery stores—would have to clear their shelves of cigarettes, cigars and other tobacco products beginning January 1, 2021. e new rule currently contains a loophole allowing cigarette-loving tourists to obtain smokes at hotels. ree plush cigar lounges would also be exempt from the ordinance.

Beverly Hills already restricts the sale of menthol cigarettes and other flavored tobacco products and bans smoking in hotel rooms and restaurants.

Smoking Age Is Now 21 In Texas Texas recently became the 15th “FIFTEEN STATES HAVE RAISED THE state to raise the MINIMUM AGE TO PURCHASE ALL minimum age to TOBACCO PRODUCTS FROM 18 TO 21: purchase all tobacco ARKANSAS, CALIFORNIA, DELAWARE, products—including HAWAII, ILLINOIS, MAINE, MARYLAND, e-cigarettes—from MASSACHUSETTS, NEW JERSEY, 18 to 21, reported OREGON, TEXAS, UTAH, VERMONT, UPI. Governor Greg VIRGINIA, AND WASHINGTON.” Abbott signed the legislation on June 7, and it takes effect September 1. ose in the military will still be able to buy the products if they are 18-20. Anyone caught breaking this new law will face a Class C misdemeanor and a fine of up to $500. Other states that have raised the smoking age to 21 are Arkansas, California, Delaware, Hawaii, Illinois, Maine, Maryland, Massachusetts, New Jersey, Oregon, Utah, Vermont, Virginia and Washington,

Vermont Joins States Raising Tobacco Buying Age

Vermont Governor Phil Scott recently signed legislation making Vermont the 14th state in the nation to raise the age of sale for tobacco products to 21, reported Vermont Business Magazine. e law, known as ToMaryland Hikes bacco 21, includes all tobacco products, including Tobacco Purchase Age e-cigarettes, and aims to save lives and millions in e legal age to buy tobacco and nicotine healthcare costs. e Tobacco 21 law takes effect on products in Maryland has been raised from 18 to September 1. Another law signed by Scott prohibits 21—and vaping devices have been added to the list of the online sale of e-cigarettes to Vermont consumers, and tobacco products—under legislation signed recently by will take effect July 1.

Governor Larry Hogan, reported e Hill. e new law will take To date, statewide Tobacco 21 policies have been passed in effect in October, and will require retailers to post warning signs Arkansas, California, Delaware, Hawaii, that tobacco Illinois, Maine, Maryland, Massachusetts, products can “New Maryland law includes an exception allowing peo- New Jersey, Oregon, Utah, Virginia and only be sold to ple 18 and over with military IDs to purchase tobacco.” Washington, requiring consumers to be people age 21 or 21 years of age to purchase tobacco prodolder. e law will apply to all types of tobacco products, includucts. Other states such as New York and Connecticut are curing cigarettes, cigars, smokeless tobacco, e-cigarettes and vaping rently considering similar legislation. devices. e law includes an exception that will allow people 18 continued on page 74 and over with military IDs to purchase tobacco, a provision that anti-tobacco advocates oppose.

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Legislative Update continued from page 38

Congress Proposes Increasing Tobacco Purchasing Age Federal lawmakers are pushing a bipartisan proposal to raise the minimum age to purchase tobacco from 18 to 21 years old, reported ABC 11 Eyewitness News. Senate Majority Leader Mitch McConnell of Kentucky and Democrat Tim Kaine of Virginia announced the plan recently, following a wave of similar legislation across the country. So far, 14 states have raised the smoking age from 18 to 21, with several businesses—including Rite Aid and Walgreens—also enacting increased age limits. E-cigarette maker Juul also requires customers to be 21 years old to purchase their products online.

“Vaping product

manufacturers must submit all

Delaware Raises Smoking Age To 21

e Delaware General Assembly recently voted to raise the age to buy tobacco-related products to 21, and products for FDA Governor John Carney signed it into law a week later, rereview by 2021.” ported WHYY. It will become effective this summer. e new law further prohibits the sale of tobacco substitutes, such as e-cigarettes, to those under 21 and places the burden of enforcement on sellers. ose under 21 would not be penalized if caught with a tobacco product. At least 450 cities and 11 states have so far voted to raise the age for tobacco use to 21.

Share Your Experience and Expertise Do you have a store experience, some operational expertise, or thoughts about the 7-Eleven system you would like to share with your fellow storeowners? Avanti Magazine welcomes articles from franchisees interested in communicating their ideas, knowledge, suggestions, opinions, etc. to the franchisee community at large.

Please contact Sheldon Smith at sheldon.smith5@verizon.net or 215-750-0178 if you would like to contribute an article to Avanti.

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750 travel centers in the U.S. and Canada. • Church’s Chicken, Pizza Hut and Checkers are offering same-day and next-day paychecks as U.S. restaurants grapple with a severe labor shortage, reported Bloomberg. Restaurants are being squeezed as fewer teens enter the workforce and companies like Amazon, Walmart, and Target offer higher pay for lower-skilled workers. • An Alltown Mobil gas station in Westborough, Mass., is performing an initial rollout of PayByCar, a payment solution that enables consumers to purchase gas from their car via their E-ZPass transponder, reported Chain Store Age. • The Kroger Co. has teamed with robotics company Nuro to launch an autonomous grocery delivery service in Houston. The companies are starting the service with Nuro's manual and self-driving Toyota Prius fleet, and will introduce the next generation of Nuro's custom driverless vehicle later this year. • Giant Food's pharmacy is adding fruit and vegetables to its prescription options at a store in Washington, D.C., as part of a pilot program called Produce Rx, reported Supermarket News. The program provides produce prescriptions for dietrelated chronic illnesses and a weekly $20 coupon for buying fresh fruits and vegetables. • Family-run Latin food giant Goya has hired investment bank Goldman Sachs to weigh options that could include a sale of the 83-year-old company, reported CNBC. The company has roughly $250 million in earnings before interest, taxes, depreciation and amortization, and could fetch roughly $3 billion in a sale. • The U.S. market for fully electric vehicles (EVs) has reached record volumes with 208,000 new registrations in 2018, according to recent analysis by business intelligence firm IHS Markit. California on its own accounted for nearly 46 percent (95,000) of new EV registrations in 2018, according to the analysis. • Coca-Cola plans to launch its coffee-infused drink, Coke Coffee, in more than 25 markets continued on page 80

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Additionally, Amazon Go offers prepacked, commissary-delivered and pre-portioned food products, which is their way of delivering fresh food. Conversely, c-stores with robust foodservice programs can stand out by focusing on the quality and freshness of their madeto-order items and other unique foodservice offerings. This also includes hot and cold dispensed beverages, which Amazon Go stores don’t currently offer. However, there are some aspects of both Amazon as a company and Amazon Go that should be studied and applied throughout the convenience channel, like the company’s use of data and technology to tailor its Go stores to its customers.

7-Eleven Stores For Sale According to stores for sale data dated May 21, 2019, there are 1,404 7-Elevens on the market nationwide. The stores being sold are a combination of Corporate, Goodwill, and Business Conversion Program stores, as well as Under Construction and New Store Open. The 10 states with the most 7-Elevens for sale are California (198), New York (165), Florida

(153), Virginia (132), Pennsylvania (99), Texas (79), New Jersey (64), Maryland (63), Illinois (61), and Washington (60).

The states with the least number for sale are Rhode Island (3), Kansas (2), Indiana (1), and Kentucky (1).

Unemployment Falls To 49-Year Low

while, the economy on the whole has shown signs of trending higher, based on the much stronger-than-expected reading on first-quarter GDP in late April. According to that report, the U.S. economy grew at a pace of 3.2 percent in the first three months of the year, surging ahead of consensus expectations for 2.3 percent growth.

Customers Satisfied

By Foodservice

The U.S. economy added 263,000 non-farm payrolls in April, dropping the unemployment rate to 3.6 percent for the Of the shoppers surveyed for the 2019 month—the lowest level since December Convenience Store News Realities of the 1969, reported Yahoo Finance, citing the Aisle consumer study, 69 percent said they Bureau of Labor Statistics. The broad U-6 purchased prepared food at a c-store within gauge of unemthe last month, reported CSNews ployment— Online. The study further reveals “e current which captures that shoppers are generally happy the underemwith what they receive, as twounemployment ployed as well as thirds said they were “extremely” or rate of 3.6 those who have “very” satisfied with their most repercent for the ceased looking cent prepared food purchase, while month for for jobs—held only 3 percent were not satisfied. at 7.3 percent, Additionally, 70 percent of those April is the lowthe same level who identify themselves as healthest level since seen in both conscious were “extremely” or “very December 1969.”

February and satisfied,” compared to 60 percent of March. Meannon-health-conscious shoppers. continued on page 79

Want to talk to other franchisees?

To find the FOA closest to you. Visit www.NCASEF.com to contact any one of the 43 local Franchise Owner’s Associations nationwide. Want to talk to someone at the national level? Call the NCASEF Vice Chairman in your area: The National Coalition has Franchise Owner’s Association member organizations in all 33 states in which 7-Eleven operates.

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Paul Lobana, Vice Chairman, President, Southern California FOA

Rehan Hashmi, Vice Chairman, Vice President, Alliance Of 7-Eleven Franchisees

paullobana@aol.com 818.203.2527

rehan711@yahoo.com 847-845-8477

Ajinder Handa, Vice Chairman, President, Greater Seattle, FOA

National Office

425-438-8381 ajinderhanda@hotmail.com

nationaloffice@ncasef.com 210.971.9211

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Sandwiches/deli are the most popular prepared food items at c-stores (29 percent of surveyed shoppers purchased in the past month), followed by pizza, breakfast sandwiches and hot dogs, all at 24 percent, and fresh-baked goods at 20 percent. When considering all their prepared food pur-

chases made in the last month, 41 percent of surveyed shoppers said they bought only made-to-order items, 32 percent bought only grab-and-go products, and 28 percent bought a combination of both. The most important factors for shoppers when purchasing prepared food at c-stores are price

MIDWEST FOA TRADE SHOW SUPPORTS BREAST CANCER ORGANIZATION The Midwest FOA hosted our Annual Trade Show in Michigan at the Detroit Troy Marriott on June 6 with franchisees from the Detroit metro area. We were pleased to meet many new faces and visit with our franchisee members. During our show, we were able to bring awareness to Pink Out, which supports the National Breast Cancer Foundation. Pink Out was started by Michigan franchisee Patty Miller, who was able to convince very easily her fellow franchisee Cheryl Nilson to join the movement.

Working together, the Midwest FOA continues to support Pink Out. We are looking forward to hosting more events in Michigan with a general meeting scheduled for October 15 and Holiday Show scheduled for December 10. For more information, or if you have any questions, please call 847-999-5558.

— Guliz Sonmez, Midwest FOA

and food quality, cited by 62 percent and 49 percent, respectively.

Seven-Eleven Pushed To Shorten Hours & Reduce Food Waste Japan's convenience stores are facing a key turning point amid growing labor and environmental concerns, first with the pushback against 24-hour operations and now with efforts to reduce food waste, reported Nikkei Asian Review. The change began in February, when a Seven-Eleven Japan franchisee cut business hours at an Osaka store to 19 hours a day in defiance of corporate headquarters. The dispute triggered unprecedented backlash against the business model, forcing not only Seven-Eleven, but rival Lawson to reduce the number of new stores they open this fiscal year, as well as to experiment with shorter hours.

Now, the Seven & i Holdings unit will in the fall start offering 5 percent cashback on bento lunchboxes and onigiri rice balls near their sell-by date. This marks a departure for the company, which until now has restricted franchise owners from discounting products. Even after Japan's Fair Trade Commission in 2009 deemed Seven-Eleven to have been abusing its dominant position on the matter, the company remained hesitant. The latest development represents a changing power dynamic between headquarters and the franchisees, the article states.

“Japanese retailers including Seven-Eleven are cutting hours of operation due to labor shortages.” continued on page 80 AVANTI M AY | J U N E 2 0 1 9

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Philadelphia Sugary Drink Sales Drop After Soda Tax Sugary drink sales dropped 38 percent in Philadelphia after the city started taxing soda and other sweet beverages in 2017, reported CNBC. Beverage sales inside Philadelphia’s city limits dropped by 51 percent but were partially offset by an increase in sales just outside the city, resulting in a net decrease in soda sales of 38 percent in the area, researchers at the University of Pennsylvania found. To measure how Philadelphia’s tax affected sales of sugary drinks, researchers analyzed scanner data from market research firm IRI during the year before the tax took effect and the year after. Researchers tracked sales in 291 chain drugstores, grocery stores and mass merchandise stores. The results do not include inde-

pendent stores and researchers did not study people’s actual consumption habits or health outcomes.

Whole Foods Testing C-Store Format Whole Foods is testing a convenience store concept at one of its New York City locations, reported Business Insider.

It's called Whole Foods Market Daily Shop, and it features local baked goods, two kinds of seasonal kombucha on tap, and make-your-own açai bowls. It also offers a condensed selection of organic products from its grocery store counterpart, with a layout that emphasizes graband-go speed. Customers can also take advantage of the same Amazon Prime member deals that are available at a traditional Whole Foods store. Whole continued on page 82

“Sugary beverage sales inside Philadelphia city limits dropped by 51 percent as a result of the sugar tax, say University of Pennsylvania researchers.”

Questions For The CEO? Got a question you want to ask the CEO of 7-Eleven? Submit it via email to nationalcoalition@NCASEF.com. Include the phrase, “Question for the CEO.” We’ll print your question here next issue. All questions are anonymous. The changing environment franchisees face over the next year is bound to raise many issues we have not faced before. We have all signed a new contract that we have yet to test in practice.

So, got a question? Let us know: nationalcoaltion2@ncasef.com

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around the world by the end of the year, reported Fox Business. Coke Coffee has more caffeine than a regular Coca-Cola and is aimed at workers that need an afternoon boost. • Dollar Tree is adding alcoholic drinks to about 1,000 Family Dollar stores in its latest effort to turn around the struggling chain, reported USA Today. Dollar Tree acquired Family Dollar in 2015, but the acquisition has dragged the company's finances. • Maine recently became the first state to ban food containers made of Styrofoam, also known as polystyrene, reported CNN. The law, which will go into effect January 1, 2021, prohibits restaurants, caterers, coffee shops and grocery stores from using the to-go foam containers because they cannot be recycled in Maine. • Google Maps recently launched a new feature that allows electric vehicle drivers to search for nearby charging stations, while providing real-time information on charger availability, charging speeds, customer reviews, and the type of chargers available, reported Smart Energy International. • Anheuser-Busch recently announced that it will achieve its 100 percent renewable purchased electricity goal upon completion of a 2,000 acre solar energy facility by 2021. Once complete, Anheuser-Busch’s entire portfolio of domestic beer brands will be brewed with 100 percent renewable electricity from solar and wind power. • Oreo-maker Mondelez is looking into adding CBD-infused snacks to its product line, reported CNBC. Although Mondelez’ CEO said the non-psychoactive compound in cannabis might not be a fit for the company’s family brands, it could add the ingredient to other products or even create new product lines. • Looking to curb the enormous amount of plastic waste produced by bottled water, Danone’s Evian plans to start selling an in-home water appliance featuring a balloon-like container that cuts down on plastic use, while Nestle SA is working on an out-ofhome dispensing system based on refillable bottles, reported Bloomberg. • Tyson Foods plans to continued on page 84

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Foods said the decision to test the Daily Shop concept was made independently of its parent company Amazon, which continues to roll out new Amazon Go convenience stores across the country.

New Casey’s Website Offers Easier Online Ordering Casey’s General Stores, Inc. recently debuted a new and improved Caseys.com with a refreshed design and enhancements to the online ordering system, all centered on making it easier than ever to order Casey’s pizza. The company said it spent time with customers across all 16 states in its operating footprint, learning about what would streamline the online-ordering experience.

As a result, improvements to the site include: • Easier Ordering: Once customers have set up an account, they can save all of their “favorites,” including favorite order, store location, preferred method of payment and delivery address.

• More Customization: Customers can now order their pizza exactly how they like it—they can select specific toppings for each half of the pizza, make substitutions for sauces and toppings, and then adjust how much or how little of each ingredient to use.

• Faster Carryout: Customers can now pay online for their carryout orders, allowing them to skip the in-store cashier line.

Younger Millennials Outspending Older Consumers Younger millennials (born 1990+) are outspending older generations in food dollars, while older cohorts are more likely to be using a number of money-saving tactics to keep food bills manageable, according to the latest IRI Consumer Connect survey. The study reveals that younger millennials’ edible dollar sales grew by 21.5 percent for March compared to a year ago, and edible dollars sales for retirees and senior is down by 3.8 percent for March compared to a year ago.

In addition, older generations are feeling a bit pinched and are embracing a wide variety of moneysaving tactics (younger millennials, older millennials, Gen X, younger boomers, older boomers, retirees and seniors): • Buy private label: 74%, 88%, 87%, 83%, 79%, 77% • Try new, lower-priced brands: 70%, 80%, 79%, 73%, 69% • Visit multiple retailers: 60%, 61%, 57%, 54%, 48% • Download coupons from retailer/manufacturer website: 46%, 62%, 60%, 56%, 48%, 39%

“Casey’s customers can now pay online for carryout orders, allowing them to skip the cashier line.”

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Illinois Gas & Cigarette Tax Hikes New Illinois gasoline and tobacco tax hikes aimed at generating revenue for

transportation and building improvements may send consumers running for the border to get cheaper gas and cigarettes, which may force hundreds of convenience stores in Illinois to close, reported the Chicago Tribune. Industry advocates said the tax increases would cost potentially thousands of jobs and create a veritable slushie desert across some regions of the state.

The Illinois General Assembly recently approved Governor J.B. Pritzker’s $45 billion package of transportation and building improvements, with gas and cigarette tax hikes among a number of revenue-generating measures to help fund the bill. The legislation doubles the gas tax in Illinois to 38 cents per gallon beginning in July, making the state one of the highest in the nation for taxes at the pump. Cigarettes, a convenience store staple, are already taxed higher in Illinois than many states. The new legislation calls for a $1 increase to the state’s $1.98 per pack tax.

Recycling At Convenience Stores Recycling is good for the environment and for business, according to a new resource published by NACS and the Can Manufacturers Institute (CMI). Per NACS consumer surveys, more than half of convenience store customers (53 percent) say they’d like to see more recycling bins at their local c-store, providing an opportunity for the industry to enhance current recycling practices. Waste management and recycling programs at convenience stores can also help ensure that trash is collected and/or recycled and does not become litter.

Consumers have regularly cited litter as the top reason for opposing new store builds in their community, and cans and bottles account for one-third of items littered outside of a convenience store. continued on page 84

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Wawa Aims To Overtake 7-Eleven In Philadelphia Although 7-Eleven currently has the most convenience stores in Philadelphia, Wawa is closing in, reported BillyPenn.com. As of May 2019 7-Eleven maintains 55 locations inside the city limits, while Wawa operates 44 Philadelphia stores—with more on the way.

That’s a big switch from the early 2000s, when Wawa famously “jilted Center City” and began closing down urban storefronts as it pivoted to gas stationenhanced branches in suburban areas.

That has changed, however, over the past five years as Wawa announced a new commitment to build stores in Philadelphia. As for 7-Eleven, it’s still on a growth push—there are now more than 65,000 stores in 17 countries around the world—but in Philadelphia, not so much.

Looking at both companies by the numbers, in the U.S. Wawa has 840 stores and 7-Eleven has 9,340; Wawa has 22,000 employees and 7-Eleven 45,000; and Wawa generates $12 billion in total revenue, while 7-eleven generates $61.5 billion total revenue worldwide.

Seven-Eleven Japan Struggling With Labor Crisis Japan's ubiquitous convenience stores, including Seven-Eleven, are fac-

ing a business model-threatening crisis as they grapple with the nation's demographic and labor challenges, reported Kyodo News. Analysts tell the newspaper that Japan's severe worker shortages and rising labor costs have laid bare the shortcomings of Seven-Eleven's upper management, demonstrating how the sole pursuit of revenue in businesses that operate around the clock is a fatal flaw. But its not just Seven-Eleven, as Lawson and Family Mart—the second and third biggest convenience store chains in the country, respectively—are also struggling to overcome the same problems.

Pressure has been mounting on the industry's long-established all day, every day business model, and an intense, high-profile dispute between SevenEleven and one of its franchisees in Higashiosaka, western Japan, just added fuel to the fire. In the wake of the dispute, the industry ministry took the rare step in April of urging convenience store operators to formulate plans to address staffing issues after a survey found an increasing number of franchises were struggling to recruit new staff and pay the wages of their increasingly expensive existing workers. Japan's Fair Trade Commission is also set to launch an investigation into whether convenience store operators are abusing a position of power to take advantage of vulnerable franchise owners.

“Wawa has expansion plans for Philadelphia, with 44 stores operating currently.”

start selling a plantbased meat substitute this summer, reported CNN Business. The plantbased fake meat trend is growing rapidly, with demand being fueled by consumers choosing healthier diets. By 2023, the U.S. meat-substitute retail market could reach $2.5 billion. • Walmart is investing in artificial intelligence to more efficiently manage its stores and reduce costs, reported the Associated Press. The retailer's Intelligent Retail Lab, located in a Long Island, New York Neighborhood Market, includes thousands of cameras and shelf sensors to help employees quickly restock items and address problems such as spills. • Target Corp. revealed that urban shoppers who take advantage of the company’s same-day delivery service at its small-format stores buy five times more items than those who buy and carry out, reported MarketWatch. • Sheetz For the Kidz, an employee-driven charity helping children in need, recently announced a donation of $601,000 to local Feeding America member food banks to provide hunger relief to children throughout the states in which Sheetz operates. • The governor of Illinois recently announced that he has reached an agreement with key lawmakers on a plan to legalize recreational marijuana in the state starting next year, reported Time. The legislation would allow adults 21 and older to legally buy cannabis for recreational use from licensed dispensaries. • Wawa recently announced it is offering its new catering service in all stores chain-wide, with menu items perfect for family gatherings, social events and corporate meetings. The company said it is a storelevel program and currently not available for ordering online or delivery. • Florida-based cstore chain Farm Stores recently opened a new drive-thru store in Scott, Louisiana made from two repurposed shipping containers melded together and painted to look like a red and white barn, reported CNN Business. • Ben & Jerry's recently announced its intention to continued on page 90

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7-ELEVEN AMONG 20 MOST POPULAR STORES IN AMERICA 7-Eleven is the top ranked convenience store retailer on the 20 Most Popular Stores in America list compiled by 24/7 Wall St., coming in at No. 6. Taking the top three spots are Walmart, McDonald's and Starbucks, respectively. To generate the list, 24/7 Wall St. reviewed foot traffic patterns provided by data service company Placed In“According sights, which to 24/7 Wall St., calculated 7-Eleven captured the most convenience store the percentshoppers this April at age of 13.78 percent of all Amer ic ans shoppers who visited 13 and older convenience who visited varstores.” ious stores in April 2019. The web publication also reviewed U.S. sales and store count data from company financial documents.

According to 24/7 Wall St., 7-Eleven captured the most convenience store shoppers this April at 13.78 percent of all shoppers who visited convenience stores. 7-Eleven’s primary convenience store business is thriving, with revenues growing by 29.8 percent in the first quarter of this year. In addition, the company recently opened 903 U.S. stores for a total of 9,573 U.S. locations.

7-ELEVEN WINS LOYALTY360 AWARD 7-Eleven was recently honored with a Loyalty360 Award, which recognizes 86

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brands that are building stronger and deeper loyalty with their customers in a proactive, meaningful, and measurable way. Loyalty360, the Association for Customer Loyalty, awarded finalists in twelve categories, each representing a key facet of a brand’s customer loyalty focus. 7-Eleven won the Platinum award in the Technology and Trends category.

The winners of the 2019 Loyalty360 Awards were announced on May 22 during Loyalty360's Loyalty Expo in Charlotte, North Carolina.

NEW ‘BETTER-FOR-YOU’ BRANDS TEST SEI recently launched a new wave of food and beverages in 125 Los Angelesarea stores from an exclusive list of breakout brands. Almost 100 new better-for-you items were hand-selected

by SEI from 31 up-and-coming companies for the test, the company said in a released statement. Keto, paleo, vegan, organic, high-protein, low-glycemic,

gluten-free, nu- “SEI reviewed trient-dense, over 300 up and plant-based, coming brands cold-pressed— and selected 100 this special better-for-you product assort- items for testing ment includes in select Los options for Angeles stores.” power-snackers, restricted diet-followers and anyone looking for ways to incorporate more functional, better-for-you sips and snacks to keep them fueled while on-the-go.

SEI said the selection of prospective breakout brands was curated from hundreds hoping to get a foot in the door with the world's largest convenience retailer. Last fall, 7-Eleven invited companies to showcase their products at its first “Next Up” emerging brands showcase held at its Store Support Center in Irving, Texas. Over 300 up-and-coming brands applied, with 70 companies invited to participate. Over half were owned by women (26), minorities (9) or veterans (2).

BEER DELIVERY VIA 7NOW APP 7-Eleven recently started delivering beer and cider products via its 7Now app to customers in select markets nationwide, reported Food & Wine. A section of the app called “The Beer Necessities” offers “everything from traditional beers to craft beers and ciders.”

Some of the beer available for delivery include Dos Equis, Modelo, Corona, Coors Light, Bud Light, Heineken, Budweiser, Miler Light, Blue Moon and New Belgium Voodoo Ranger. Initially, continued on page 88

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the rollout is limited to 18 markets— Austin, TX; Charlotte, NC; Chicago, IL; Dallas-Ft. Worth, TX; Los Angeles, CA; Miami-Ft. Lauderdale, FL; New York, NY; Norfolk-Portsmouth, VA; Orlando-Daytona, FL; Phoenix, AZ; Portland, OR; Sacramento, CA; San Antonio, TX; San Diego, CA; San Francisco, CA; Seattle-Tacoma, WA; St. Louis, MO; Tampa, FL.

'VITAMINWATER CHILL' SLURPEE SEI recently introduced a new Slurpee Lite drink, and it's the first glacéau vitaminwater Chill carried by 7-Eleven stores.

Taking a cue from the latest flavor trends, 7-Eleven and glacéau chose blueberrylavender as the featured flavor for the launch of the newest drink. The refreshing periwinkle blue-colored frozen drink is naturally flavored, contains no sugar and just 20 calories per 8-ounce serving. Floral and botanical flavors show up on multiple 2019 food trend lists. As consumers seek more complex flavor profiles, they are predicted to continue to grow in popularity. Pairing florals, herbals and botanicals with berries also has been cited as popular taste combinations, especially among millennials looking for ways to cut sugar without sacrificing flavor.

“New Vitaminwater Chill Slurpee is naturally flavored, contains no sugar and is just 20 calories per 8-ounce serving.”

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“POKÉMON DETECTIVE PIKACHU” PROMO 7-Eleven stores teased the highly anticipated theatrical release of the first-ever live-action Pokémon adventure, “Pokémon Detective Pikachu,” with dozens of exclusive movie-themed products, shareable photo filters and interactive augmented reality (AR) experiences in the 7-Eleven app. For a limited time that included the film’s May 10th nationwide release date. 7Eleven also offered dollar drink deals to introduce its new mocha beverages and mystery-flavored Slurpee drink. A small cup of the new hot mocha, medium Cold Brew or medium Slurpee drink each cost only $1 at participating stores. Along with the unique and exciting AR games, “Pokémon Detective Pikachu” products were available at participating 7-Eleven stores and deliverable in select areas through 7NOW.

LONG ISLAND 7-ELEVENS TEST BEVERAGE BARS Select 7-Eleven locations on Long Island, New York are installing beverage

bars that will allow customers to better customize their coffee, reported Newsday. Customers who visit the 10 Long Island locations can select the company's standard drip coffee, or choose from espresso-based options, including lattes, cappuccinos, americanos (with extra shots of espresso), as well as iced coffee drinks, cold brew and nitro cold brew topped off with a variety of milk, creamers, sweeteners and toppings. The drinks are all the same price, but vary based on cup size.

SEJ DISCOUNTS FOODS CLOSE TO EXPIRING Seven-Eleven Japan will start discounting rice balls and lunch boxes that are close to their expiry dates in order to reduce food waste, a growing issue in the country where 6 million tons of still edible foods are discarded annually, reported Japan Today. The Japanese c-store operator will offer customers enrolled in its point program shopping credits worth 5 percent of the value of purchases as incentive for buying such products, which are set to expire in four to five hours. The initiative will be launched “Japan this fall at around 7-Elevens will begin 20,000 Japan discounting foods stores and the about to expire, with cost of giving the cost borne by shopping points Seven-Eleven to customers will Japan.” be shouldered by Seven-Eleven. continued on page 90

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7-ELEVEN DENMARK TAKES TOP NACS INTERNATIONAL HONOR The operator of 7-Eleven Denmark took home the 2019 NACS International Convenience Retailer of the Year Award during an awards ceremony on June 6, reported CSNews Online. Reitan Convenience Denmark accepted the award, which recognizes an innovative and successful international convenience store that breaks new ground and sets new innovative standards for the industry, during the NACS Convenience Summit Europe in London. The award winner is chosen by a grand jury of leading international retailers and experts and earns the accolade of “the best convenience store in the world.”

A ‘NUTTER’ BIG BIRTHDAY CELEBRATION This year marks the 50th anniversary of America's favorite peanut butter cookie, and participating 7-Eleven

stores celebrated with an exclusive Nutter Butter Cookie-flavored latte and free cookies on National Peanut Butter Cookie Day, June 12. SEI also worked with Mondelēz International to develop a special fresh bakery item for the Nutter Butter “Go Nuts!” 50th anniversary celebration. The result was a long john donut with peanut butter filling, chocolate icing and topped with a full-size Nutter Butter cookie.

SEVEN & I TO PHASE OUT PLASTIC BAGS SEI par“Seven & i ent comaims to cut plastic pany Seven use from the current & i Holdlevel by more than ings plans half by 2030, and to to phase out zero by 2050.” plastic shopping bags by 2030, reported NHK World Japan. The company, which operates the Seven-Eleven convenience store chain and Ito Yokado retail stores, recently unveiled its plan to reduce plastic waste. According to the plan, plastic shopping bags will be replaced by paper or other plant-based bags by 2030. The company said it aims to cut plastic use by more than half by 2030, and to zero by 2050, by using paper and recycled material for food packaging. continued on page 97

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make CBD-infused ice cream once CBD is legalized at the federal level. • McDonald's recently deployed artificial intelligence-powered menu boards at 700 of its restaurants, reported Nation’s Restaurant News. The new menu boards automate the upselling of menu items based on time of day, trending items and weather.

• Whole Foods Market and Starbucks are among a growing list of retailers to accept cryptocurrency as a form of payment, thanks to a partnership between Gemini, a New York-based crypto exchange, and cryptocurrency payments startup Flexa, reported Convenience Store Decisions.

• Scientists have recently discovered that a version of a gene that helps give tomatoes their flavor is actually missing in about 93 percent of modern, domesticated varieties, explaining why store-bought tomatoes tend to have a bland taste, reported Discover Magazine. • Japan, the world's second-biggest producer per capita of plastic waste after the U.S., is shifting away from plastic, reported Nikkei Asian Review.

Wooden beer bottles, paper straws and paper eating utensils are some of items being produced that are also boosting the nation's declining paper industry. • Responding to customers' demands, Whole Foods announced that will stop offering plastic straws at its juice and coffee bars across all of its 500 stores in the United States, the United Kingdom and Canada, reported CNN Business. It will start offering paper straws beginning in July. • Walmart is now offering to have its employees deliver fresh groceries and put them in your refrigerator when you're not home, reported the Associated Press. The big-box retailer said it will be offering the service—called InHome Delivery—this fall for customers in Pittsburgh, Kansas City, Missouri, and Vero Beach, Florida. • The brand activation campaign for Oreo Mint Hot Chocolate from Mondelez International has won the top prize—the Super REGcontinued on page 101

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Sour Patch Smackdown Only At 7-Eleven Lines have been drawn, and they’re all leading to 7-Eleven! The greatest flavor matchup of all time is happening now—Sour Patch Kids Red vs Blue! In a first-of-its-kind Sour Patch Smackdown, the #1 and #2 favorite Sour Patch Kids flavors go head to head to see which has ultimate Sour Patch Supremacy, and it’s all happening exclusively at 7-Eleven. Either way, you win.

With the launch of exclusive, limited edition, single-flavor, 5-ounce bags of Sour Patch Kids Redberry and Sour Patch Kids Blue Raspberry candies, your shoppers can choose sides and share a bag full of nothing but their favorite-flavored Kids. They’re every Sour Patch Kids fanatic’s dream and they’re only going to be available at 7-Eleven while supplies last.

Even better, with an amazing mix and match offer of 2/$3.33 on any 4-5 oz. bags or 2/$2 on any 2 oz. bags of Sour Patch Kids, your customers can play both sides and enjoy each new bag plus all their other favorite varieties at great savings, too. It’s a win-win for everyone.

Tap into the power of Sour Patch Kids’ Rabidly Red and True Blue fans with the hottest 7-Eleven exclusives of the summer.

Stock up and stand back.

Introducing Little Debbie Turtle Brownies Little Debbie Turtle Brownies are a new premium brownie offering from the leader in the convenience store brownies category (Nielsen ScanTrack, Convenience Channel of Trade, 52 weeks ending 4/20/19). Each wrap contains two delicious, pan-baked brownies topped with caramel, peanuts and a fudge drizzle combined to provide an indulgent, delicious, premium treat to your customers.

To inquire about selling Little Debbie products in your store, Little Debbie Turtle Brownies provide an in- please call 1-800-315-6208 or dulgent, premium treat to your customers. visit littledebbiecstore.com. continued on page 94

SIMPLY BEVERAGES LAUNCHES

2019 Incentive Contest Simply Beverages announces its 2019 Franchisee Incentive Contest, with a total payout potential of $50,000. To be eligible for entries into the contest, franchisees must grow weekly sales of Simply items between July 1 and December 31, 2019. The following rules apply: • Stores selling one (1) unit of 11.5oz Simply OJ and one (1) unit of OJ with Mango per week will receive 5 entries into the drawing.

• Stores selling one (1) Unit of 11.5oz Simply OJ and one (1) unit of Lemonade or Raspberry Lemonade and one (1) unit of Cranberry per week will receive 10 entries into the drawing.

• Stores selling one (1) unit of 11.5oz Simply Watermelon per week will receive 10 entries into the drawing.

• Stores selling three (3) units of 11.5oz Simply Smoothies per week will receive 15 entries into the drawing.

• Stores selling ALL eight (8) items of 11.5oz Simply Smoothies and 11.5oz Simply Juice per week will receive 25 entries into the drawing.

Prizes include 20 $500 prizes ($10,000); 15 $1,000 prizes ($15,000); 10 $1,500 prizes ($15,000); and 1 $10,000 prize. 7-Exchange Data will be used to measure eligibility. The Coca-Cola Company will complete the drawing among eligible franchisees, winning stores will be announced, and payout will be made by January 31, 2020.

Participate in the Simply Beverages 2019 Franchisee Incentive Contest for a chance to win a $10,000 grand prize.

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Little Debbie Unveils Lemon Cooler Mini Donuts New Little Debbie single-serve Lemon Cooler Mini Donuts are powdered Little Debbie Lemon Cooler Mini mini donuts with a light Donuts will help you gain incremental sales. lemon flavor that will be available as a limited-time seasonal offering. These new donuts are a perfect way to gain incremental sales from a limited-time offering to your customers. To inquire about selling Little Debbie products in your store, please call 1-800-315-6208 or visit littledebbiecstore.com.

New White Castle Slider Options Introducing White Castle’s New Butterball Turkey Slider. Made with all-natural, white meat turkey and topped with smoked cheddar cheese, it’s a turkey twist on a slider classic that is sure to be a crowd favorite among turkey lovers or just about anyone else who enjoys great food.

For tasty vegetarian options, White Castle now offers Veggie and Black Bean. These meatless sliders bring unique and delicious tastes to White Castle’s evergrowing flavor portfolio.

HIGH QUALITY KING PALM NATURAL LEAF ROLLS King Palm natural leaf rolls are empty tubes that allow for a very easy tobacco-filling process with the included bamboo packing stick. This cordia leaf is not tobacco, and does not contain any preservatives, artificial flavors, or glue. The installed cornhusk filter is one of the best filter tips consumers have ever used. They are flexible and allow adult smokers to squeeze or bite them as hard as they want to create a tighter and cooler draw when smoking. They will also eliminate resinous oils from staining your lips, teeth and your fingers. Cornhusk filters are sold separately in 2, 5, and 25 count packs in 9 millimeter and 10 millimeter diameters.

The Veggie Slider combines tasty carrots, peas, spinach, and more to create a flavorful patty that anyone can enjoy.

Then there’s the Black Bean Slider with a savory patty made with black Satisfy all the tastes your consumers crave with White Castle’s newest varieties. beans, peppers and corn that is perfectly satisfying.

All of these sliders come on White Castle’s signature soft, goldenbrown buns and are perfect grab-and go solutions. They’re everything your customers want in mouthwatering, easy-to-make microwaveable package. Contact your White Castle sales representative to learn more.

Smirnoff Ice Pineapple + Coconut Smash Meet the newest Smash senOffer Smirnoff Ice Pineapple + sation: Smirnoff Ice Pineapple + Coconut Smash to Coconut Smash features a bold, your adult customers tropical fusion of luscious pineapthis summer. ple and sweet coconut flavors.

Lightly carbonated with a refreshing flavor, Smirnoff Ice Pineapple + Coconut Smash is perfect for poolside fun or at the beach. Smirnoff Ice Smash has 8 percent ABV, natural flavors and comes in 16oz and 23.5oz cans.

Step Up Your Game With Optimo Berry Optimo Cigars, a Swisher brand, continues its tradition of innovation by putting a fresh spin on its classic cigarillos with Optimo Berry, a limited-edition berry blend.

Optimo Berry allows customers to step up their game and keep life interesting with its refreshing sweet and ripe taste. Optimo Cigarillos are encased in first-class natural leaf wrappers that deliver a oneof-a-kind natural leaf smoking experience.

Only available for a limited time, Optimo Berry Cigarillos are available in two-count, resealable foil pouches in “2 for 99¢,” “Save on 2,” “2 for $1.29” and “2 for $1.49” options. To place an order, con-

King Palm natural leaf rolls smoke beautifully, which helps convert the heaviest of tobacco smokers to switch strictly to these because of their smoothness, convenience, and super slow burn. King Palm natural leaf rolls and cornhusk filters provide a natural, highly functional, and an overall In-demand summer blend Optimo Berry high quality choice for consumers that they can rely on. is only available for a limited time.

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tact your Swisher representative at 1-800-874-9720.

For more information, visit https://swisher.com/ cigars-cigarillos/?product= optimo.

Swisher Sweets Leaf Cigars promise adult consumer satisfaction.

Swisher Sweets Leaf Rough-Cut Cigars

Swisher Sweets Leaf Cigars are the ultimate reward as they deliver a bold, aromatic smoking experience. Made with all natural tobacco and finished with a Connecticut broadleaf wrapper, Swisher Sweets Leaf Cigars promise quality, freshness and adult consumer satisfaction. They are perfectly imperfect, embracing every natural flaw in pursuit of the best cigar. Swisher Sweets Leaf Cigars can set the right tone, any time, any place.

Offered in bold blends of Original, Honey and Sweet Aromatic, Swisher Sweets Leaf Cigars can satisfy an adult consumer’s mood for complex, rich or something in between. Swisher Sweets Leaf Cigars are offered in 3-count pouches, delivering everyday value in a trusted brand. To place an order, contact your Swisher representative at 1800-874-9720. For more information, visit https://swisher.com/cigarscigarillos/?product=leaf.

Swisher Sweets Summer Twist Is Back Swisher Sweets Summer Twist, a customer summer favorite, is now available as a Limited Edition cigarillo, providing a refreshing combination of lemon tartness with sweet mango for the perfect summer taste. Available in a resealable 2-count pouch with the “Sealed Fresh” guarantee, Swisher Sweets Summer Twist is ready for Customer favorite Swisher Sweets shipment to stores nationwide. It is offered in Summer Twist is now “2 for 99¢,” “Save on 2,” and “2 for $1.49” available as a Limited options. This product is also available in a Edition cigarillo.

“2 for $1.29” option for select markets.

Customers can put another twist in their summer and kick back with this in-demand limited edition. To place an order, contact your Swisher representative at 1-800-874-9720. For more information, visit https://swisher.com/cigars-cigarillos/?product=ss-lto.

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Crunchmaster Launches Grain-Free Snacks Crunchmaster has announced a new line of grain-free crackers.

The brand’s latest extension provides a delicious new option for those looking to be grain-free and will complement Crunchmaster’s existing Multi-Grain portfolio as the brand strives to provide baked snack crackers for everyone. These crunchy, baked crackers are made from cassava flour and other grain-free ingredients for a simple, savory taste. Crunchmaster Grain-Free Crackers are available in three flavors, two of which are vegan: Lightly Salted; Mediterranean Herb; and Romano, Asiago & Cheddar.

Crunchmaster Grain-Free Crackers offer a healthy but delicious snacking option.

The new Grain-Free line delivers on the satisfying crunch and flavor customers have come to expect from the brand while delivering on an ingredient promise that fulfills their desire to enjoy a healthy but delicious snacking option. Along with the brand pillars of being gluten-free and made with no artificial flavors and colors, the new line is made with non-GMO ingredients for clean label, on-trend and flavorful snacking.

Splenda Naturals Stevia Now Available At 7-Eleven Splenda Naturals Stevia, made with 100 percent natural ingredients, is now available for sale in 7-Eleven. Unlike other stevia brands that can be bitter, Splenda uses the stevia extract Reb D—the sweetest part of the stevia leaf—which tastes just like sugar and has no aftertaste.

To encourage ordering, Splenda is offering 7-Eleven franchisees a special deal: Receive a $20 Billback Allowance on new Splenda Naturals Stevia through the end of the year. That is a 100 percent discount on list price, making it practically free. (*Billback Allowance does not include disOrder Splenda Naturals tributor mark up and will not Stevia and receive a $20 Billback Allowance through the end of the year. exceed $20.) continued on page 98

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7NOW APP MAKING DELIVERIES IN PUBLIC SPACES 7-Eleven customers who use the 7NOW delivery smartphone app to order their favorite products can now have them delivered to public spaces. With the latest app update, SEI has set up thousands of locations— called 7NOW Pins—that enable customers to receive delivery in parks, beaches, sports fields, entertainment venues and other public locations that may not have traditional addresses.

To order delivery to a 7NOW Pin, shoppers simply open the app, which will auto locate their current location or show the nearest 7NOW Pin on the app’s interactive map. Each 7NOW Pin corresponds

to a public place or space where they can receive the delivery. A courier will pick up the order from the nearest participating store and deliver it to the selected 7NOW Pin location or specified address in 30 minutes or less on most occasions. No minimum order is required for the 7NOW app and the service is available 24/7, with the first 3 deliveries free within 30 days of the first order. Real-time tracking lets customers know when to expect their 7NOW app orders.

own private brand version—Quake.

Quake energy drinks combine the best of energy, sports and performance drinks into one. Each 12-ounce can of Quake contains electrolytes, creatine, COQ10 and branched-chain amino acids (BCAAs). Quake comes in four flavors: Original, Orange Fusion, Tropical Lemon and Berry Blast. All are sugar-free and contain no artificial flavors. Suggested retail price is $2.49, with a limited-time buy one get one free introductory price.

The energy drink category continues to grow with annual sales of $12 billion, and 75 percent of that sold in convenience stores, according to IRI.

NEW QUAKE PRIVATE BRAND OFFERING 7-Eleven has entered the fast-growing performance energy drink arena with its

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Aloe Vera Fresh Only At 7-Eleven

Aloe Vera Fresh flavors, so be sure to place your order through either McLane or Core-Mark today.

Aloe Vera Fresh is new to the market, and exclusive to 7-Eleven. It is currently available in four flavors in 16.9oz bottles—Original, Mango, Coconut, and Watermelon. All are recommended items at 7-Eleven.

Aloe Vera Fresh is made in the United States. Not only does it taste amazing, but it has natural Aloe Vera pulp that is beneficial to your body’s hydration, alkalinity, liver function, skin health and digestion. They use only fresh, high quality ingredients that are Non-GMO and free of glycerin and preservatives.

Now is a great time to stockup on cool and refreshing Aloe Vera Fresh. With the summer heat, you know this will not last long on your shelves. Starting August 28th, there will be a “2 for Aloe Vera Fresh is exclusive to 7-Eleven $3.00” national promotion on all and is sure to be a summertime hit.

Bic Introduces Bob Marley & Blown Glass Lighters Bic presents its new Special Edition Bob Marley Series and Special Edition Blown Glass Series Lighters. The Bob Marley Series (LCRT1BM) has designs featuring legNew Bic Special Edition Bob Marley endary reggae artist and hall of fame in- and Blown Glass Series Lighters. ductee Bob Marley. The Blown Glass Series (LCWT1BG) features bold colors swirled into beautiful pieces of art, and has won third place for Top New Products at the 2019 C-Store Expo. Bic Lighters are child-resistant, safe and reliable, and 100 percent quality inspected. They also provide up to two times the lights vs. the next full size leading brand.

TWEAKER ENERGY SHOTS SPECIAL OFFER Tweaker Energy Shots may be new to 7-Eleven, but they are certainly not new to the convenience store channel. Tweaker has been available to their dedicated customers for over a decade. The revolutionary formula of herbal stimulants and caffeine provide the kick of energy that you need to focus and get through your day. All of the flavors are truly tasty, especially Grape and Berry, which are the top two flavors in the category.

Emergen-C Nutrient Energy Shots Exclusively At 7-Eleven

Tweaker has created a segment of the energy shot category focused on customers that desire quality and affordability. Consumer feedback has been tremendous, with rave reviews on the taste and performance.

No wonder Tweaker is the #1 energy shot in the U.S.

Emergen-C Nutrient Energy Shots are portable, potent boosts of Vitamin C and specially selected botanicals, with a powder release bottle that’s quick and easy to take.

Available exclusively at 7-Eleven in two flavors—Peach Mango and Pomegranate Berry—Emergen-C shots have an SRP of $3.69 and generate a GP of 50 percent. Early results are positive, with a selling rate of 3.6 units a day at launch for three regions.

Increase your energy shot margins with Tweaker Energy Shots.

A free-fill on Tweaker Extra Strength Berry 2pk (SLIN 220908) and Tweaker Extra Strength Grape 2pk (SLIN 221253) is being offered to all stores in the following Zones: Lone Star, Florida, Patriot, Heartland, and Liberty. These special 2pks will be retailed to your customers for 2/$2.99, and you still make a 50 percent margin.

If your store is not in one of those Zones, you may add Tweaker as an SSI until recommended distribution is hopefully expanded to all stores.

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More Loacker Crème Wafers Available for 7-Eleven

because your customers shouldn’t have to decide between “good” and “good for you.”

Loacker introduces four new varieties of its crème wafers to 7-Eleven stores: Lemon, Hazelnut, Vanille, and Cocoa & Milk. These sweet, light and crispy wafers are made with the finest natural ingredients and crèmes to offer genuine and true taste profiles.

They contain no artificial flavorings, no GMO ingredients, no artificial colors, and no preservatives.

thinkThin Shortens Name & Adds Flavors

New Lemon, Hazelnut, Vanille, and Cocoa & Milk Loacker crème wafers.

Free Fill On GT’s New Mystic Mango Kombucha GT’s Kombucha, the #1 selling Kombucha in the U.S., is now offering a free fill on the newest flavor to enter 7-Eleven—Mystic Mango. The order window for the 6-count case, 16-ounce bottles is July 1, 2019 to August 8, 2019, and the ship dates are August 8, 2019 to October 9, 2019.

Kombucha is an organic, fermented tea that’s naturally effervescent with Living Probiotics, Amino Acids, Polyphenols, and Active Enzymes. Each unique offering from GT provides revitalizing nourishment to reinvigorate Don’t miss out on GT’s special free fill offer the mind, body, and on new Mystic Mango Kombucha. soul. Kombucha skews to females (76 percent), 25-35 years old, and all people who are into the organic lifestyle, and the Kombucha market is expected to have a compounded annual growth rate of 25 percent! 7-Eleven recommended flavors include Mystic Mango, Watermelon Wonder, Trilogy, and Gingerade.

Available through McLane and Coremark.

Organic Valley Good To Go Milk With 11 grams of organic protein in every serving, Good to Go low fat milk gives you a boost of energy and nutrients no matter where your day takes you. Made with organic milk and fair-trade ingredients, 100

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thinkThin, a leader in creating nutritious protein bars, has dropped the last part of its name and is now known only as think! To support the name change, the company launched its new “I think! I can” marketing campaign that shows the Good to Go low fat milk offers a boost of energy determination and nutritious source of energy and nutrients. needed to accomplish your goals. think! also introduced three new High Protein bar flavors. Each of these high protein bars is packed with 20 grams of protein and three grams of sugar or less. They are gluten free, GMO free, kosher, and made with no artificial sweeteners, flavors or colors. The new thinkthin has changed its brand name to think! and bar flavors include: introduced three new bar flavors.

• Berries & Crème—real fruit pieces with a sweet crème coating • Coconut Cake—finely shredded coconut and creamy frosting • Double Caramel Bliss—caramel flavored center with a smooth, buttery ribbon of rich caramel

Blue Bunny Maker Acquires Fieldbrook Foods Wells Enterprises, Inc., maker of Blue Bunny ice cream, recently announced that it has acquired Fieldbrook Foods. This purchase expands Wells’ current manufacturing capacity to 200 million gallons, diversifies its ability to support customers geographically to help meet future demand and adds an important footprint on the East Coast, the company said in a released statement.

Wells and Fieldbrook have highly complementary businesses. Wells is the #3 ice cream manufacturer in the U.S. with a strong house of brands including signature brand, Blue Bunny, along with private label and co-pack business. Fieldbrook is a strong private label/contract manufacturer located in the Northeast. Fieldbrook operates two manufacturing facilities, one in Dunkirk, New York and another in Wells Enterprises’ purchase Lakewood, New Jersey. Together Wells and Fieldof Fieldbrook Foods will brook will employ over 3,800 people and produce expand Wells’ annual capac- close to 200 million gallons of ice cream. ity to 200 million gallons.

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GIE—in the 2019 ANA REGGIE Awards competition. • DigitalMint, a Chicago-based chain of Bitcoin ATMs and teller windows, has installed bitcoin kiosks at 20 Circle K convenience stores throughout Arizona and Nevada, reported ATM Marketplace. The move marks the largest expansion of DigitalMint to date. • The Pennsylvania Gaming Control Board recently granted a license to the owner of Rutter’s to install video gambling at a store in Juniata County, making it the first chain convenience store to break into the state's gambling market, reported the York Daily Record. • Nearly half or more of all shoppers now buy perishables such as meat, produce and dairy items online, according to a global survey of shoppers and retailers by International Data Company • Domino's Pizza and robotics company Nuro announced that they are partnering on autonomous pizza delivery using the custom unmanned vehicle known as the R2 later this year.

Advertiser’s Index

Yowie Surprise Rescue Series includes one of 26 collectible endangered species animals.

American Licorice.................47

Johnson&Johnson................69

Organic Valley.......................77

Anheuser Busch....................14

JUUL ..........................4, cover 4

Pepsi Quaker .............5,6,27,55

Aon Risk Services..................33

Kellogg's.................................8

Pepsi Gatorade .....................56

Arizona .................................50

Keurig Dr Pepper..................62

Premier Nutrition.................75

BIC ........................................95

King Palm.............................71

Seneca ............................34-35

Blue Bunny/Wells...................9

Kraft......................................65

Simply Orange......................40

Bug Juice ..............................30

Li'l Debbie.............................42

Splenda ................................89

Chobani................................58

Living Essentials...................91

Stryve..............................16-17

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

Loacker.................................39

Swedish Match.....................92

Dean Foods...........................11

Logic Ecig........................52-53

Swisher......................3, cover 3

Diageo Guinness USA.............7

Mars Ice Cream.....................21

Tell Industries .......................43

Emergen-C ...........................83

Maruchan.............................29

Teton Cigarettes ...................44

Foreign Candy ......................81

McLane.................................48

Think.....................................78

Fiji/Wonderful ................12-13

Miller....................................66

Tweaker Energy...............46,85

Glanbia.................................38

Mondelez .............................36

White Castle .........................72

GT Kumbucha.......................99

Nestle Professional...............61

Whitewave Foods.................23

Hormel .................................19

Nutriair.................................87

Windsor................................10

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foa events Cal-Neva FOA Trade Show Toiyabe Golf Club (change venue) Washoe, Nevada July 10, 2019 Phone: 775-782-7601

Cal-Neva FOA Golf Classic Toiyabe Golf Club Washoe, Nevada July 10, 2019 Phone: 775-782-7601

7-Eleven FOAC Annual Picnic Cook County Forest Preserve, Grove 29 Cook County, Illinois July 27, 2019 Phone: 847-343-7777

Midwest FOA & Alliance FOA Golf Outing St. Andrews Golf & Country Club West Chicago, Illinois August 21, 2019 Phone: 847-971-9457

San Diego FOA Day At The Races Del Mar Thoroughbred Club Del Mar, California August 23, 2019 Phone: 619-733-5917

Delaware Valley FOA Trade Show

San Diego FOA Vendor Appreciation Day Alesmith Brewing Company San Diego, California October 3, 2019 Phone: 619-733-5917

7-Eleven FOAC Trade Show & Holiday Party Holiday Inn Skokie Skokie, Illinois November 14, 2019 Phone: 847-343-7777

Midwest FOA & Alliance FOA Holiday Show

NCASEF

Board meetings National Coalition Board of Directors Meeting

Ceasar's Atlantic City Atlantic City, New Jersey October 21-22, 2019

National Coalition Board of Directors Meeting Ceasars Atlantic City Atlantic City, New Jersey October 23-24, 2019

Renaissance Long Beach Hotel Long Beach, California August 4-5, 2019

Chicago O'Hare Marriott Chicago, Illinois December 4, 2019 Phone: 847-971-9457

Midwest FOA Holiday Show Detroit Marriott Troy Troy, Michigan December 10, 2019 Phone: 847-971-9457

San Diego FOA Christmas Party Hilton San Diego Del Mar San Diego, California December 14, 2019 Phone: 619-733-5917

Caesars Atlantic City Atlantic City, New Jersey September 19, 2019 Phone: 215-771-6178

NCASEF 44TH ANNUAL CONVENTION & TRADE SHOW

August 5-8, 2019 Long Beach Convention Center Renaissance Long Beach Hotel The Westin Long Beach Long Beach, California

Mercedes A-Class Giveaway!

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National Coalition Affiliate Meeting

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