Avanti November/December 2018 by Avanti Magazine

November/December 2018

T H E

V O I C E

O F

7 - E L E V E N

F R A N C H I S E E S

The Challenge: Adapting To Change

Page 53

Convention Alert!

2018 AFFILIATE MEMBERS

NCASEF 44TH ANNUAL CONVENTION

Long Beach, California August 5-8, 2019

Every Store An NCASEF Member How Do We Move Forward? Freedom Of Association Get Down To Business Expenses Are Out Of Control Fighting Tobacco Legislation To Save Our Businesses

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

THE VOIC E OF 7-ELEVEN FRANC H ISEES

November/December 2018

Contents 33 Let’s Make Every Store An NCASEF Member By Jay Singh, Chairman, NCASEF

37 How Do We Move Forward? By Michael Jorgensen, Executive Vice Chairman, NCASEF

41 Freedom Of Association By Eric H. Karp, Esq., General Counsel, NCASEF

47 Franchisee Expenses Are Out Of Control

Features New York franchisee Yousef Naseer worked with Homeland Security Investigations to receive IMAGE certification for all his stores. Page 62

Convention Alert!

NCASEF 44TH ANNUAL CONVENTION

Long Beach, California August 5-8, 2019

Coca-Cola Contest Page 16

2018 AFFILIATE

The National Coalition’s Affiliate Member Program: A listing MEMBERS of all member companies. Page 53

26 Fighting Tobacco Legislation To Save Our Businesses By Vincent Emmanuel, Treasurer, Delaware Valley FOA

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; on-line, 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.

EN TM PA R

By Nick Bhullar, Vice Chairman, NCASEF

49 It’s Time To Get Down To Business

By Ajinder Handa, Vice Chairman, NCASEF

Member News................................14 Bits & Pieces............................................16

Dispatch...........................................................18 Legislative Update...............................................28 SEI News..................71 Vendor Focus..........77 Franchisee Calendars................82 Roamer: SEI’s new line of canned wines

AVANTI N O V E M B E R | D E C E M B E R 2 0 1 8

NATIONAL COALITION OF ASSOCIATIONS OF 7-ELEVEN FRANCHISEES NATIONAL OFFICERS

Bloomberg Details Strife Between SEI & Franchisees A recent article in Bloomberg details the protracted war between SEI and its franchisees, and the franchisor’s use of corporate investigators and government agencies “to purge certain underperformers and troublemakers.” The article states tensions have built steadily over the years since SEI began demanding more of franchisees— more inventory, more money, more adherence in matters large and small. Some franchisees have responded by organizing and complaining and sometimes suing. A series of lawsuits and court cases reveal that SEI may have targeted certain troublemaking franchisees and spent millions on an investigative force to go after them. The corporate investigators have used tactics including tailing franchisees in unmarked vehi“Tensions cles, planting hidbetween fran- den cameras and listening devices, chisees and and deploying a 7-Eleven have surveillance van risen steadily disguised as a over the years plumber’s truck. company has as SEI has de- The also given the manded more names of franof franchisees.” chisees to the gov-

Jatinder Singh NATIONAL CHAIRMAN

702-249-3301 • jays@ncasef.com

Michael Jorgensen EXECUTIVE VICE CHAIRMAN

347-251-1828 • mcjorg@yahoo.com

Nick Bhullar Newly elected NCASEF Vice Chairmen Ajinder Handa (left), President of the Greater Seattle FOA, and Paul Lobana, President of the Southern California FOA.

VICE CHAIRMAN

626-255-8555 • bhullar711@yahoo.com

Rehan Hashmi VICE CHAIRMAN

847-845-8477 • rehan711@yahoo.com

ernment, which in some cases has led immigration authorities to inspect their stores, three officials with Homeland Security Investigations told the reporter. You can read the article in its entirety at https://www.bloomberg.com/news/features/2018-11-09/7-eleven-is-at-war-withits-own-franchisees-over-ice-raids.

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

Tensions Between QSR Franchisors & Franchisees

John Riggio

There’s a growing trend among quick serve restaurants—tensions between franchisors and franchisees bubbling to the surface, according to an opinion piece in Restaurant Business. In early October 2018, Jack in the Box’s franchisee association revealed a vote of “no confidence” in the company’s current management and asked

Sheldon Smith

continued on page 16

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. 14

AVA N T I N O V E M B E R | D E C E M B E R 2 0 1 8

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 November/December 2018 © 2018 National Coalition of Associations of 7-Eleven Franchisees Avanti Magazine is the registered trademark of The National Coalition of Associations of 7-Eleven Franchisees.

continued from page 14

that it replace CEO Lenny Comma. One day later, McDonald’s operators—including some of the system’s largest franchisees—held a meeting in Orlando, Florida, to discuss forming an independent operators’ group. Tim Hortons and its franchisees have also been strained for a while, and Subway franchisees went into an open revolt in late 2017 over a plan to sell footlong subs for $4.99. While there is always some tension in the franchisor-franchisee relationship, the article states, it’s the franchisors’ own strategies that have increasingly generated stress within systems. One point of contention is the numerous demands operators are making on many franchisees. That’s a major issue at McDonald’s, where franchisees have had to remodel locations to add kiosks, start serving fresh beef made to order, add new coffee beverages and start a new discount program. The author con-

“...struggling franchisees are not good for brands, and franchisors should do everything they can to make sure they’re not struggling.”

cludes by stating that struggling franchisees are not good for brands, and franchisors should do everything they can to make sure they’re not struggling.

Amazon Go Expansion Continues The first San Francisco location of the cashier-less Amazon Go convenience store opened in late October, reported Geekwire. Amazon plans a second store in San Francisco at 98 Post St. that will open this winter, the article states. Additionally, Amazon opened its third Go store in Chicago in late November, and will open a fourth Windy City location in 2019, reported NBC Chicago. The new Amazon Go store is located at 500 W. Madison St. at the city's Ogilvie Transportation Center. Amazon has also confirmed a future Go location in New York City, to be located inside a shopping and office complex across from the World Trade Center, reported Recode. The company plans to unveil the cashierless convenience store inside Brookfield Place, formerly known as the World Financial Center, in Manhattan’s Battery Park City neighborhood. Recode previously recontinued on page 18

YOU COULD WIN A 2019 SPORTS CAR! Order and stock eleven author-

7-Eleven stores in Canada celebrated Reverse 7Eleven Day on November 7 (11/7) by giving away free medium Slurpee drinks to

customers who showed up wearing their clothing backwards. • Convenience stores contribute to or collect more than $1 billion for charities annually, according to a national survey of retailers released by NACS. Overall, 95 percent of convenience stores support charitable causes, with 66 percent of these stores supporting ﬁve or more charitable causes. The median charitable contribution per store is $3,925 in direct contributions and $3,054 in donations collected. • Chick-fil-A

recently opened two prototype restaurants devoted exclusively to fulfilling delivery and catering orders, reported CNN Business. The new restaurants don't have dining rooms, they’re cash-free, and they’re located by highways and major roads in Nashville and Louisville to facilitate deliveries. • As part of their recently announced partnership, Kroger

will start selling groceries in 13 Cincinnati-area Walgreens stores starting early 2019, in 4,000-square-foot sections called Kroger Express. The in-store shops will feature fresh produce, meal kits and other popular grocery items, and will be expanded to additional Walgreens stores depending on performance. • Walmart and Target

ized Coca-Cola products from

launched new mobile checkout systems

January through June and

in their stores to accommodate the influx of shoppers during the 2018 holiday season, reported Tech Crunch. Walmart had expanded its “Check Out With Me” service to every Supercenter by Black Friday, while Target’s recently launched “Skip the Line” mobile checkout service became available nationwide. • In its second quarter of fiscal year 2019 financials, Alimen-

you’ll be entered into the 2019 Franchisee Sweepstakes, sponsored by The Coca-Cola Company. See abbreviated rules on the Coca-Cola ad on the inside front cover. 16

AVA N T I N O V E M B E R | D E C E M B E R 2 0 1 8

tation Couche-Tard reported total mercontinued on page 22

continued from page 16

ported that Amazon has also held talks with a top Los Angeles real estate developer about opening an Amazon Go store at the city’s outdoor shopping complex, The Grove. Continuing its move to capture a greater share of shoppers’ spending, Amazon is also looking at bringing its Go stores to airports in an effort to win business from hungry, time-pressed travelers, reported Reuters. A person familiar with the strategy confirmed that Amazon is studying how to get the checkout-free stores into airports and that an employee with experience in business development was assigned to the task.

Amazon Opens Small ‘Go’ Store

“Amazon is looking at bringing its Go stores to airports in an eﬀort to win over hungry, time-pressed travelers.”

Amazon recently unveiled a small-format version of its cashierless Go concept, reported Business Insider. It measures only 450 square feet, and it looks more like a giant vending machine than a small store. It sells only prepared foods, drinks, and snacks, and none of the grocery essentials some of the other Go stores offer. This small Go store is located in Amazon's Macy's Building in Seattle, and is limited to Amazon employees and their guests. However, the head of Amazon Go told CNN they want to put the stores in hospitals, office building lobbies, or “anywhere where there's a lot of people who are hungry and in a rush.” The smaller stores could also be key to Amazon's re-

ported plan to open thousands of the stores in a few years, as the small versions are modular and take only weeks to set up, making them only moderately more difficult to install than a traditional automated retail device like a vending machine.

FDA’s New Tobacco Rules = Negative Impact Nearly 90 percent of convenience store retailers expect recent regulatory proposals by the Food and Drug Administration (FDA) will hurt their tobacco continued on page 24

The NCASEF’s

NCASEF

website section Dispatch allows national leadership to quickly communicate news and information to franchisees. Located on the right column of the homepage, you will find the latest updates, news, and press releases from the National Coalition. Printed below are summaries of some of the latest Dispatch items. Please visit www.NCASEF.com to read the full versions.

NCASEF Urges Investigation Into SEI Business Practices The National Coalition recently sent a letter to California Attorney General Xavier Becerra, urging him to investigate oppressive business practices that SEI has placed

AVA N T I N O V E M B E R | D E C E M B E R 2 0 1 8

HIGHLIGHTS

in new franchisee contracts and their potential impact on California store operators. NCASEF noted five major issues of conflict and potential abuse of California State Laws in the new agreement, all of which collectively make the agreement an unconscionable contract. The letter was co-signed by several national franchise groups from the food service, delivery services, cosmetology, service station, and other industries—including the Coalition of Franchisee Associations, Dunkin’ Donuts Independent Franchise Owners, Inc., Independent Organization of Little Caesars Franchisees, Inc., and Service Station Franchise Association, Inc.

“NCASEF noted five major issues of conflict and potential abuse of California State Laws in the new agreement.”

continued on page 20

continued from page 18

NCASEF CFA Supports NCASEF In Sparking California AG Investigation In a strong show of support for the plight of 7-Eleven franchise owners, the Coalition of Franchisee Associations (CFA) recently sent a letter to California Attorney General Xavier Becerra asking him to investigate whether SEI has conducted predatory business practices related to the writing of, and lack of negotiations for, the new franchise agreement. The CFA letter refers to the agreement as “an unbalanced contract,” which “may be in violation of California State Law.” The letter also says the contract will force storeowners into a situation where they will be “gouged” by SEI and “could have farreaching negative implications for the entire franchise business community.” CFA leadership come from a variety of franchise organizations in the U.S. including, but not limited to, Dunkin’ Donuts, Supercuts, Little Caesars and Subway.

FOA Asks Washington AG To Look Into SEI Policies The Greater Northwest FOA, along with five other Washington state franchise organizations, recently sent a letter to the Washington Attorney General asking him to investigate possible state franchise act violations made by SEI. In the letter, the group states that SEI has committed “numerous unfair and predatory business practices … during the course of the franchise relationship that will negatively impact hundreds of Washington small business operators and most of which may violate the Washington Franchise Investment Protection Act (FIPA) and the Washington Consumer Protection Act (CPA).” They then go on to list the specific violations and urge Attorney General Robert Ferguson to “investigate these oppressive and unlawful business practices.” The letter is signed by Greater NW FOA President and NCASEF Vice Chair Ajinder Handa, along with representatives of the National TUPSSO Franchise Owners Association, the Service Station Franchise Association, the Independent Organization of Little Caesars Franchisees, and the Coalition of Franchisee Associations.

AVA N T I N O V E M B E R | D E C E M B E R 2 0 1 8

HIGHLIGHTS NCASEF Votes ‘No Confidence’ In SEI During its November Board meeting, the NCASEF took a vote of No Confidence in the management of SEI, reflecting franchisees’ belief that SEI has failed to focus resources and energy on improving declining store-level net profits, instead shoring up corporate gross profits at franchisee’s expense, the association announced in a released statement. NCASEF’s No Confidence vote reflects a number of related issues, including: presenting owners with a new Franchise Agreement that will lead to the continued decline of profitability; failing to devote capital to stores in dire need of remodeling and refurbishing; and failing to replace worn out equipment. An overwhelming majority of NCASEF’s Board of Directors also voted to skip the 2019 7-Eleven Experience, the company’s annual trade show. NCASEF urged all members of its franchisee associations to do likewise.

“The NCASEF Board of Directors once again voted not to attend the 2019 7-Eleven Experience.”

NCASEF Statement Regarding 2019 SEE The National Coalition Board of Directors voted overwhelmingly during its November meeting to not attend the 2019 7-Eleven Experience and urged all franchisee members of its constituent FOAs do likewise. This replicates a similar vote taken last year with respect to the 2018 7Eleven Experience. The National Coalition stated that it did not take this step lightly, but did so for many reasons, including the state of the relationship between SEI and its franchisees; the 2019 franchise agreement being presented in a coercive, take it or leave it fashion without any communication, collaboration or negotiation with the National Coalition; and SEI management largely ignoring the fact that store level economics are under pressure caused by shrinking gross margins and elevated labor costs. The National Coalition urges franchisees to spend the time and resources that they would othercontinued on page 22

“Nearly 20% of Seven & I’s operating profit comes from U.S. and North American franchised operations.”

continued from page 20

NCASEF wise expend attending the 7-Eleven Experience to supporting their local franchise owners associations, by joining or renewing their membership, attending meetings of their FOA, including their local trade shows, and planning to attend next summer's National Coalition Tradeshow and Convention.

Seven & i Relies On U.S. Franchised Stores The headline in a recent Nikkei Asian Review article says it all—“Seven & i

HIGHLIGHTS performance hits record on US store performance.” The numbers don’t lie. Nearly 20 percent of Seven & i’s operating profit comes from U.S. and North American franchised stores. The recently released summary of the second quarter for fiscal year 2019 delves into the numbers and shows that its U.S. franchise business is critical for Seven & i’s continued stability and growth. According to their projections, $23.95 billion (USD) is the forecasted revenue for this fiscal year from U.S. stores, and Japanese 7-Eleven stores will bring in approximately $8.7 billion (USD) this fiscal year.

continued from page 16

chandise and service revenues of $3.5 billion, an increase of 11.1 percent. Same-store merchandise revenues increased by 4.4 percent in the U.S., by 4.6 percent in Europe and by 5.1 percent in Canada. • Google's sister company Waymo

officially launched its self-driving taxi service in the suburbs of Phoenix on December 5, reported the Washington Post. The 24/7 service, dubbed Waymo One, will let customers summon self-driving minivans by a smartphone app. • More cus-

tomers are using their smartphones to shop online, according to continued on page 24

continued from page 18

business, reported CSNews Online, citing Wells Fargo Securities LLC's recent Tobacco Talk survey. The c-store owners see “huge” potential downside from any menthol ban on cigarettes given the segment's importance to the category. However, many retailers acknowledge any final action could be years down the road. The survey also found that nearly two-thirds disagree with the FDA's rationale to ban menthol on cigars—many of those surveyed don't see menthol cigars as a significant gateway for youth initiation. The survey further revealed that nearly 80 percent of retailers disagree with the agency's decision to enforce age-restricted access points within the store.

FDA Restricts E-Cigs & Bans Menthol The Food and Drug Administration recently imposed sharp sales restrictions on flavored e-cigarettes and announced plans to ban menthol cigarettes and flavored cigars as part of a multipronged attack on the rising underage use of tobacco products, reported the Washington Post. The FDA says it will limit sales of many flavored ecigarettes to bricks-and-mortar outlets that have either age-restricted entry or areas inside stores that are not accessible to people

“E-cig manufacturer Juul has pulled all fruity flavors from brick and mortar stores, but will continue to sell Virginia tobacco, classic tobacco, menthol and mint.”

“The FDA has imposed sales restrictions on flavored e-cigarettes and wants to ban menthol cigarettes and cigars in the near future.” under 18. Such access restrictions could be extremely difficult to set up for many convenience stores and gas stations, but not for specialty vape and tobacco stores, according to the agency. The FDA also will require stepped-up age verification for online sales. The e-cigarette sales restrictions cover e-liquids as well as cartridges and pods, the FDA said. But e-liquids already are sold primarily in adult vape and tobacco shops, officials said. Perhaps even more significant than the e-cigarette steps are the FDA’s commitments to propose bans on menthol in cigarettes and cigars, as well as other flavors in cigars. Such prohibitions will require new regulations that could take years to go into effect and could be derailed by opposition from the cigarette industry.

Juul Pulls Fruity Flavors From Retail Stores E-cigarette manufacturer Juul has stopped selling fruity flavors like mango and cucumber in brick-and-mortar stores in response to the FDA’s request to curb “epidemic” levels of teen vaping, reported CNBC. Juul has pulled its mango, cucumber, fruit and creme flavored nicotine pods from convenience store and other retailers, and the company plans to restrict most of its sales to its online shop. Virginia tobacco, classic tobacco, menthol and mint—flavors closely aligned with traditional smoking—will remain on shelves. Juul will continue to sell all of its flavors continued on page 26

AVA N T I N O V E M B E R | D E C E M B E R 2 0 1 8

continued from page 22

the latest NPD Connected Intelligence Application & Convergence report. Forty-five percent of

smartphone users now say they shop online via their device. Only 36 percent of consumers report using a tablet to shop online, down three percentage points over the past year. • Louisville, Kentucky-based convenience store retailer Thorntons Inc. announced that it is being acquired by a joint venture created between aﬃliates of ArcLight Capital Partners and BP. The company said the joint venture will continue to operate all existing stores under the Thorntons name. • Amazon is testing its

cashierless Go checkout technology for bigger stores with larger spaces in Seattle, reported Reuters. • On October 27, Sunoco set an Official New Guinness World Records title for most vehicles refueled in one hour—a grand total of 148 vehicles. The record-setting feat took place at a Queens, New York Sunoco station during a NASCAR-inspired event complete with a NASCAR pit crew fuel man, pace car, spotters, and Lap Counter Board. •

Tobacco giant Altria is investing $1.8 billion in Canadian cannabis company Cronos Group, reported CNN Business. That will give Altria a 45 percent stake in the company, with an option for Altria to increase its stake to 55 percent over the next ﬁve years. • McDonald’s

continues to expand its McDelivery service throughout the country, allowing customers to have burgers, fries, beverages and desserts delivered to their homes and oﬃces through Uber Eats, reported NJ.com. • Japanese

convenience store chain Lawson is testing a robot to cook its Karaage-kun brand of bite-sized fried chicken morsels, reported Japan Today. The designers of the robot say its automated cooking procedure is 80 percent faster than the conventional method. • In an eﬀort to meet customer demand for continued on page 62

continued from page 24

on its website, which uses age-verification technology to block people under the age of 21 from buying its products. On the Juul website, CEO Kevin Burns stated that to “prevent shipments to those attempting to distribute to minors, online customers are strictly limited to two devices and fifteen JUUL pod packages per month, and no more than ten devices per year.” He added that in the future the company will only restart accepting orders for Mango, Cucumber, Fruit, and Creme from retail stores that can legally sell flavors and

comply with the criteria of its new 21+ Restricted Distribution System.

Philadelphia Prohibits Storeowners From Selling Tobacco Licenses The Philadelphia City Council voted recently to uphold regulations meant to reduce the number of tobacco retailers in Philadelphia, reported the Philadelphia Inquirer. The new law will effectively prohibit

storeowners with tobacco licenses from transferring those licenses to new owners upon selling their stores. The move was cheered by public-health officials as a critical step in reducing youth smoking but decried by small-business owners, who say the rules are devaluing their investments. In 2016, the city Board of Health established regulations that banned new tobacco retailers from opening within 500 feet of a school, limited the number of tobacco retailers to one for every 1,000 residents in a continued on page 62

Fighting Tobacco Legislation To Save Our Businesses BY VINCENT EMMANUEL, TREASURER, DELAWARE VALLEY FOA

It appears anti-tobacco legislation and regulations are now becoming the norm, as local governments throughout the country look to reduce not only the number of underage smokers, but adult smokers, as well. They’re raising the age to purchase cigarettes, they’re banning smoking in public areas, and they’re limiting where tobacco and vaping products can be sold. While it is a good thing to prevent minors from obtaining cigarettes, the anti-smoking movement is getting to the point where it’s seriously impacting our stores with all the other laws and regulations they want to pass. After all, as is the case with most c-stores, tobacco sales are a big chunk of our business. 7-Eleven franchisees in Philadelphia are currently in a very precarious situation, thanks to a recent decision by the City Council to disallow the transfer of to“7-ELEVEN FRANbacco licenses when CHISEES IN we sell our stores. It PHILADELPHIA ARE all started with good CURRENTLY IN A enough intentions— VERY PRECARIOUS to reduce underage SITUATION, THANKS smoking. But what it TO A RECENT ended up becoming DECISION BY THE was a move to limit CITY COUNCIL TO the number of tobacco retailers in the DISALLOW THE city. The Board of TRANSFER OF TOBACCO LICENSES.” Health introduced

new rules in 2016 to ban new tobacco retailers within 500 feet of a school, limit the number of tobacco retailers to one for every 1,000 residents in a planning district, make tobacco licenses nontransferable, and to suspend the tobacco license of any retailer that received three violation notices within two years. Many small business owners, 7-Eleven franchisees included, immediately spoke up against the new regulations because we knew they would have a negative impact on our bottom lines and our ability to sell our stores. As a staff member of Councilman Al Taubenberger, I worked to try to convince the other Council members to change the rule on the license transfers. Delaware Valley FOA President Manzoor Chughtai, Vice President Bilal Barqawi and franchisee Joseph Difabritis made very emotional speeches in front of the City Council committee on how these rules are affecting their businesses, but it was not good enough to convince the city’s political leadership. This situation is unacceptable. We already have franchisees trying to sell their stores but can’t because they can’t transfer the tobacco li-

AVA N T I N O V E M B E R | D E C E M B E R 2 0 1 8

cense to the new owner. Joseph Difabritis is looking to sell his store and retire. He had two potential buyers turn him down once they learned they couldn’t inherit his tobacco license. In its crusade to limit the number of tobacco retailers in Philadelphia, the Board of Health is hurting our businesses over products that are perfectly legal to sell. There was an attempt to remedy the situation when Councilman Mark Squilla introduced a measure to allow stores with tobacco retail permits to transfer them to new owners. The bill received only three votes during the same City Council meeting where members decided to uphold the 2016 rules. In retrospect, I believe we should have put more money into the fight— both franchisees and SEI—to make a difference in the outcome. I believe it’s only a matter of time before there are no 7-Eleven stores in Philadelphia. The Board of Health is using all types of methods to take away our tobacco licenses. So this should serve as a warning. This anti-smoking movement is spreading to large cities nationwide. If franchisees and SEI don’t join forces to combat this, it could potentially spell the end of 7Eleven stores in big cities.

Legislative Update Minimum Wage Rises In 21 States More than 20 states and a number of municipalities have increased their minimum wage rates just before or on January 1, 2019, including recent statewide increases approved by voters in Arkansas and Missouri, reported Nation’s Restaurant News. Voters in both states turned out November 6 in record numbers to raise the minimum wage, and other states have already approved graduated increases scheduled to go into eﬀect at the beginning of 2019. e federal minimum wage, which is the standard in 21 states, has remained at $7.25 an hour since 2009. States in which 7-Eleven operates are highlighted in bold: Alaska—$9.84 to $9.89 Arizona—$10.50 to $11 Arkansas—$8.50 to $9.25 California—$11 to $12 Colorado—$10.20 to $11.20 Delaware—$8.25 to $8.75 District of Columbia—$13.25 to $14 Florida—$8.25 to $8.46 Maine—$10 to $11 Massachusetts—$11 to $12 Minnesota—$9.65 to $9.86

Missouri—$7.85 to $8.60 Montana—$8.30 to $8.50 New Jersey—$8.60 to $8.85 New York—$10.40 to $11.10 Ohio—$8.30 to $8.55 Oregon—$10.75 to $11.25 Rhode Island—$10.10 to $10.50 South Dakota—$8.85 to $9.10 Vermont—$10.50 to $10.78 Washington—$11.50 to $12

Federal Ban On Menthol Cigarettes Possible e Food and Drug Administration is planning to pursue a ban on menthol cigarettes, reported the Wall Street Journal. According to the article, it could take a year or more for a rule banning menthol to be finalized, and then another year for it to be enforceable in the marketplace. e FDA concluded in 2013 that menthols are harder to quit and likely pose a greater health risk than regular cigarettes. e agency said use of the cigarettes, which are flavored with the compound menthol, was likely associated with increased smoking initiation by youth and young adults, possibly because menthol helps reduce the throat irri“The FDA could tation caused by cigarette smoke. But it ban menthol wasn’t until last year that the agency signaled cigarettes, which it was actively considering a ban on menthols cause a greater and other flavored tobacco products.

health risk than regular cigarettes.”

Florida Bans Indoor Vaping Florida voters have approved a measure that bans the use of electronic ciga-

rettes in most enclosed workplaces, reported the Associated Press. On November 6, voters approved Amendment 9—one of four measures that pulled together unrelated items. The amendment is meant to treat vaping the same way the law treats smoking tobacco cigarettes, but it also bans drilling for oil or natural gas in the state's territorial waters. Exceptions for the vaping ban are made for private homes used for businesses other than childcare, elder care or health care; stand-alone bars; designated hotel rooms; and tobacco and vape shops. Opponents of Amendment 9 had argued that each amendment to the state’s Constitution should only cover one issue. They also said a vaping ban should be handled by the Legislature.

Illinois Keeps Smoking Age At 18 e smoking age in Illinois is remaining at 18 years old, aer the state House came short of the 71 votes needed to override Governor Bruce Rauner’s veto of a bill to raise the smoking age to 21, reported the Belleville News-Democrat. e state Senate had voted earlier to override Rauner’s veto. Under the failed proposal, a person in Illinois would need to be 21 years old to buy tobacco products, electronic cigarettes and alternative nicotine products. According the Department of Revenue, raising the smoking age to 21 would lead to a decrease in tax revenue. e agency estimated there would be $35 million to $40 million less in cigarette tax income to the state, and $6 million to $8 million less in sales tax revenue per year.

Baltimore Permits For Gas Stations A Baltimore lawmaker recently introduced legislation to require gas stations to get a license to operate aer midnight, reported the Baltimore Sun. City Councilman Bill Henry said he proposed the measure aer hearing from police that it is diﬃcult to apply existing licensing laws to gas stations because they have a partial exemption. Henry’s proposal—which attracted nine of the 14 other council members as co-sponsors—is the latest to pit political leaders in Baltimore against businesses as they seek to fight crime. Convenience stores, liquor stores and now gas stations have been tagged as sources of trouble in recent months by oﬃcials from Mayor Catherine Pugh on down. Lob cized the new proposal as another misguided attempt by the City Council to burden businesses and to blame them for crime politicians can’t control. continued next page

AVA N T I N O V E M B E R | D E C E M B E R 2 0 1 8

Legislative Update Marin County Bans Flavored Tobacco & Vaping Products e Board of Supervisors in Marin County, California recently voted unanimously to ban the sale of flavored tobacco and vaping products, reported CBS San Francisco. e ban includes e-cigarettes, menthol cigarettes and other nicotine tobacco products seen as a lure for young people. Lawmakers are hopeful it will curb the surge in teen use of the products. e ordinance takes ef-

“MARIN COUNTY, CALIFORNIA HAS BANNED THE SALE OF FLAVORED TOBACCO AND VAPING PRODUCTS, INCLUDING E-CIGS, MENTHOL CIGARETTES AND OTHER NICOTINE TOBACCO PRODUCTS.”

fect July 2019. Tobacco stores have until 2020 to sell oﬀ their inventory. According to the California Healthy Kids Survey, use of electronic cigarettes and other vaping devices more than doubled among Marin County 11th graders in the study. Almost a third of them were regularly using these “highly addictive” products.

Washington Paid Leave Policy On January 1, Washington state began implementing one of the most generous paid family and medical leave programs in the nation, allowing employees to take up to 16 weeks of paid time oﬀ to care for new children and deal with illnesses and injuries, reported Geek Wire. e program functions like insurance and applies to all companies, although businesses with fewer than 50 employees don’t have to pay the employer portion continued on page 61

Let’s Make Every Store An NCASEF Member BY JAY SINGH, CHAIRMAN, NCASEF

The National Coalition began in 1973 when six storeowners got together for a basement meeting in Seattle to talk about 7-Eleven and its problems and opportunities. The company at the time had 3,537 stores, 36 percent of which were franchised. Now, 45 years later, we virtually have written the history of franchising, and 7-Eleven is one of the oldest franchised systems in the country. Today an overwhelming majority—almost 89 percent—of 7-Eleven stores in North America are franchised. I don’t know how many original members we have still around from those days, but I’m certain we do have members that have been in the system 45 years or longer. Today, 7-Eleven has grown to approximately 7,200 franchised stores, and approximately 4,700 franchisees. (This does not include corporate stores, area licensee stores, or the 1,100 Sunocos the company purchased last year and has yet to franchise.) Approximately 22 percent of 7-Eleven franchisees are multiple storeowners. The National Coalition is organized into 43 FOAs throughout the country,

and consists of approximately 4,700 franchisee member stores. We represent approximately 65 percent of all franchised stores in the country. Each FOA sends two duly elected representatives, a president and a vice president, to our board meetings four times per year. Many franchisees have served as FOA presidents and vice presidents on the Board of Directors of the National Coalition. Many have served as members of the head table, as officers of the National Coalition. Each of these folks

knows that being a franchisee leader, especially in times of strife with our franchisor, is a difficult job that demands

GAPS IN NATIONAL COALITION MEMBERSHIP BY STATE State

Non-member Stores

Arizona . . . . . . . . . . . . . . . . . . . . 48 California . . . . . . . . . . . . . . . . . . 279 Colorado . . . . . . . . . . . . . . . . . . . 118 Connecticut . . . . . . . . . . . . . . . . 20 Delaware . . . . . . . . . . . . . . . . . . . 43 Florida . . . . . . . . . . . . . . . . . . . . . 281 Idaho . . . . . . . . . . . . . . . . . . . . . . . . 1 Illinois . . . . . . . . . . . . . . . . . . . . . . 39 Indiana . . . . . . . . . . . . . . . . . . . . . . 12 Kansas . . . . . . . . . . . . . . . . . . . . . . 1 Maine . . . . . . . . . . . . . . . . . . . . . . . 9 Maryland . . . . . . . . . . . . . . . . . 254 Massachusetts . . . . . . . . . . . . . . 129 Michigan . . . . . . . . . . . . . . . . . . . 149 Missouri . . . . . . . . . . . . . . . . . . . . . 15

New Hampshire . . . . . . . . . . . . . . 18 New Jersey . . . . . . . . . . . . . . . . 173 Nevada . . . . . . . . . . . . . . . . . . . . . 33 New York . . . . . . . . . . . . . . . . . . 243 North Carolina . . . . . . . . . . . . . . 29 Ohio . . . . . . . . . . . . . . . . . . . . . . . 35 Oregon . . . . . . . . . . . . . . . . . . . . . 16 Pennsylvania . . . . . . . . . . . . . . . . 79 Rhode Island . . . . . . . . . . . . . . . . . 6 South Carolina . . . . . . . . . . . . . . . 6 Texas . . . . . . . . . . . . . . . . . . . . . 239 Utah . . . . . . . . . . . . . . . . . . . . . . . 75 Virginia . . . . . . . . . . . . . . . . . . . 408 Vermont . . . . . . . . . . . . . . . . . . . . . 1 Washington . . . . . . . . . . . . . . . . . 45 Washington, D.C. . . . . . . . . . . . . 42

“The National Coalition has a gap of some 2,500 stores that are not represented by FOA groups, and I would like us all to work to bring them into our membership through their local FOAs.” some courage and the ability to balance the objectives of franchisees with the objectives of the company. Since I was elected chairman of the National Coalition and took office one year ago, the National Coalition has been at odds with our franchisor over the new agreement and our attempts to make changes to that document. Right now, a lot of people are asking what the NCASEF is doing. The National is not six people sitting at the head table making decisions for every franchisee in the country. The National is a much bigger force than that. We take a lot of votes. Right now, for every board meeting we invite 86 FOA elected presidents and vice presidents, board members from throughout the country, to represent their member franchisees at our meetings. We routinely get representatives from 35 to 38 FOAs out of the 43 total in the country. Since my administration took office we have attempted total transparency in all aspects of National Coalition operations and decision-making. Whatever motions were on the agenda we took to a vote, whether it was voting to support the lawsuit on our independent contractor status, committees to talk about the new agreement, skipping the 7-Eleven Experience, or anything else that came up. The continued on page 34

AVANTI N O V E M B E R | D E C E M B E R 2 0 1 8

Let’s Make Every Store An NCASEF Member continued from page 33

National is a complement of everyone on the board and everyone votes on every issue. Most of our motions are passed either unanimously or by a huge majority. You may have figured it out by now that the National has a gap of some 2,500 stores that are not represented by FOA groups, and I would like us all to work to bring them into our membership through their local FOAs. (See previous page for nonmembers in each state.) We are announcing a membership drive. It is my goal that every single president, vice president or FOA member should approach these unrepresented franchisees to encourage them to join, because there is strength in unity. If their FOA represents them, they can address their issues. In addition, the bigger our numbers are, the more incentive there is for vendors to attend tradeshows and support local FOAs, along with the national show. The National Coalition executive

“The National Coalition executive team is open to attending local FOA events and meetings to help promote your membership. We can supply a list of who is and who isn’t a member in your area.” team is open to attending local FOA events and meetings to help promote your membership. We can supply a list of who is and who isn’t a member in your area. Please call the National Office at 210-971-9211. We are seeking to represent all franchisees by knowing what they want and what they need. Our financial status is much better than it was last year. We had the largest-attended

tradeshow and convention this year, and we want next year’s to be even better. Accompanying this article is a display that shows how to create a case to become an NCASEF member. Call or contact your local president or vice president through our website about membership fees per month because every FOA is different. Remember, issues can be addressed better when we’re united and everyone has a vote. Vendors and SEI management will listen more if we represent all franchisees. To find out about national and local FOA board meetings, tradeshows and conventions visit www.ncasef.com or look at the calendar in the back of this issue. We have also created a LinkedIn account and a Facebook page, and we would like to see you there, too.

JAY SINGH CAN BE REACHED AT 702-249-3301 OR JAYS@NCASEF.COM

HOW TO CREATE A CASE TO JOIN YOUR LOCAL FOA 1. From your Store ISP click on 7-HUB SECURED, STORE TOOLS, 7-HELP section and click New/Status/Update. 2. On the home screen please select the Accounting drop down. 3. Next chose Accounts Payable. 4. The Franchisee desiring membership should make sure their store number is listed as well as which FOA they want to join. 5. The subclass should be FOA and the sub-subclass should be all. 6. Also in the Description state FOA membership and in detailed description section and state I would like to become a member of, provide the complete Name of nearest FOA at $XX.XX per month for dues. 7. Submit, and a case number will be assigned. The FOA analyst will complete the task request from the case and then close the case. All membership adds, changes must be submitted by the 22nd of each month. 8. Call accounting for further questions at: 1-877-711-4422. 34

AVA N T I N O V E M B E R | D E C E M B E R 2 0 1 8

How Do We Move Forward? BY MICHAEL JORGENSEN, EXECUTIVE VICE CHAIRMAN, NCASEF

When our current President and CEO returned to 7-Eleven 14 years ago to take the helm of the organization, he began a campaign to break down the “silos” that existed within the company. The online Business Dictionary defines a silo mentality as: “A mind-set present in some companies when certain departments or sectors do not wish to share information with others in the same company. This type of mentality will reduce the efficiency of the overall operation, reduce morale, and may contribute to the demise of a productive company culture.” I was a Field Consultant in New York at the time our CEO presented his goal of breaking down silos on a Tuesday NCC (National Conference Call), and the excitement in the room and the organization was palpable. It was a new concept then, and we believed the company needed to maximize information to make the most of its opportunities and generate ideas that would not otherwise come to light. What I have fully realized since then, as a franchisee, and as a vice chairman of the National Coalition, is that the biggest silos, and the ones with the most potential to impact the organization, are the silos that exist between 7-Eleven and its franchisees. These silos have always existed, and they sometimes cast a small shadow and at other times they cast a larger shadow, but over the last several years these silos have grown and are casting shadows over much of our business. Over the years SEI has attempted to address information sharing and garner franchisee feedback through various committees including ZLCs (Zone Leadership Committees), the NBLC (National

“The biggest silo, and the one with the most potential to impact the organization, is the silo that exists between 7-Eleven and its franchisees.” Business Leadership Council), the FAC (Franchise Advisory Committee), and the CEO Roundtable. Taking nothing away from the work of these groups, there are many dedicated franchisees and 7-Eleven stakeholders that have made many improvements to our system based on in-

volvement in these committees, and this work continues. However, as each of these groups, by their very definition, are merely advisory, they are limited in scope of what they can accomplish. These groups are carefully controlled by SEI, since they choose the individual franchisees who participate, prepare and control the agenda and schedule, and control

“What I am suggesting is an advisory board that includes franchisees elected by franchisees, not dictated by the company.”

the prepared communication out to the general franchise body. Reception of and reaction to feedback is one of the most important attributes to ensure a franchise business remains successful. Franchisees are the backbone of 7Eleven. We have direct contact with the customer, run the day-to-day operation and make the whole franchise collectively successful. But franchisees do not only run stores, they have also invested a significant amount of money (cumulatively over $1 billion) in 7-Eleven and are stakeholders in the company. SEI is not really accountable to franchisees as shareholders. There is no way outside of litigation for franchisees to hold SEI accountable for poor performance. I believe the solution is to create a new venue that helps us avoid litigation and the adversarial relationships that can develop. There is a lot of literature on franchise boards available on the web. One that I found very enlightening is “Exploring franchise boards: a stakeholders perspective,” by Denise Cumberland. You can find this paper here: https://ir.library.louisville. edu/cgi/viewcontent.cgi?article=1296&co ntext=etd. It is a thoroughly researched and well written paper that can provide insight to help create the framework for a franchise board that helps us to break down the silo once and for all. What I am suggesting is a franchise board that includes franchisees elected by continued on page 38

AVANTI N O V E M B E R | D E C E M B E R 2 0 1 8

How Do We Move Forward? 7continued from page 37

franchisees, not dictated by the company. Such a group could be accountable on both sides with a set of rules and guidelines that prevent the body from being controlled by franchisees or franchisor alike. Such a group would facilitate the sharing of more vital information, have more open, honest and robust discussions and dialogue which would help break down barriers. It could have a set process for franchisee problem solving that avoids the courts, is somewhat binding and has franchisee representation and accountability. It needs to be acceptable to franchisees and transparent, but it also needs to have over-

“Feedback is one of the most important aspects in order for a franchise business to succeed.” sight so that the franchisees involved are beyond reproach. As franchisees begin to feel that they have a say in the plans and future direction of the organization, trust will grow, and adoption and implementation of programs and processes will be almost automatic. This is brand consistency. It is what SEI wants for the brand, and this should be our franchisee goal. A change of this magnitude will be difficult to implement, and may not run smoothly at first, but over time can have a huge positive and lasting impact on the culture of the organization.

I believe wholeheartedly that both SEI and franchisees feel they don’t get enough credit for what they do, and as a result we get caught up. The reality is that we are all in the same boat, we should always know we are in the same boat, and we should all be rowing in the same direction. All stakeholders in this system need to put personal feelings aside, this is not the place for grudges or personal agendas. There are too many people dependent on the system for us to get caught up in these types of distractions. It all starts with building a system where we knock the silos down and ensure they don’t get rebuilt again.

MICHAEL JORGENSEN CAN BE REACHED AT

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

Freedom Of Association ERIC H. KARP, ESQ., GENERAL COUNSEL TO NCASEF

One would think that the right of franchisees to freely associate, and to be free from harassment, intimidation and discrimination by reason of membership in or leadership of a franchisee association would be beyond doubt. But in the aftermath of the dismissal of the misclassification claim brought in California, which is now on appeal to the Ninth Circuit, there is a concern on the part of some franchisees that they can no longer take these freedoms for granted. In 1978, a United States District Court judge in the Eastern District of Michigan, in an opinion regarding a group of AAMCO franchisees that had bolted from the franchise system, stated: “One of the traditional control mechanisms of a franchisor has been to keep its franchisees disorganized.” The court went on to state, “Franchisees, by necessity, must have access to the franchise group in order to act together to deal with common problems, whether those problems be the oppressiveness of the franchisor or some less momentous concern.” Over the last 40 years, the law regarding the protection of franchisee collective action has developed on a path perfectly consistent with these prescient words from the federal court. In a 1982 case, a Massachusetts appellate court stated that the activities of an association of Subaru automobile dealers did not violate applicable antitrust or anticompetition laws. These cases make clear

that even such activities as creating a channel for the expression of grievances and support of litigation, if necessary, are perfectly legitimate and legal activities for an association. Thus, the only two cases decided in the United States on the issue of the legitimacy of franchisee associations and the collective actions in which they engage were decided in favor of franchisee associations. Currently, 11 states have laws which protect the right of franchisees to freely as-

sociate: Arkansas, California, Minnesota, Nebraska, New Jersey, Illinois, Washington, Hawaii, Michigan, Iowa, and Rhode Island. All of these laws guarantee the right of franchisees to join and participate in franchisee associations. The laws of Iowa and Rhode Island specifically outlaw retaliation. In addition, the current United States Federal Trade Commission Franchise Rule requires franchisors, upon the written re-

“These cases make clear that even such activities as creating a channel for the expression of grievances and support of litigation, if necessary, are perfectly legitimate and legal activities for an association.”

“In 1978, a United States District Court judge, in an opinion regarding a group of AAMCO franchisees, stated: ‘Franchisees, by necessity, must have access to the franchise group in order to act together to deal with common problems, whether those problems be the oppressiveness of the franchisor or some less momentous concern.’” quest of an independent association of franchisees, to disclose the name, address, telephone number, email address and web address of any independent association in the franchise system. This rule is a de facto recognition of the legitimacy of franchisee associations and their role in the due diligence process and a legitimate source of information for prospective franchisees who may be considering an investment in a particular franchise system. On top of that, based on our research, eight cases have been decided in the United States over the years involving credible allegations by franchisees that they suffered harassment, intimidation, or discrimination by reason of their connection to an independent franchisee association. These cases involved conduct by a franchisor intended to harm the franchisees and which had no legitimate business purpose. In some of the cases, the franchisor had publicly expressed hostility to the association. In four of these cases, continued on page 44

AVANTI N O V E M B E R | D E C E M B E R 2 0 1 8

Freedom Of Association continued from page 41

the franchisor’s motion seeking to dismiss those claims was denied. In the other four cases, the franchisee or franchisees recovered a verdict after a trial.

Here is a brief summary of those cases:

1. Pepperidge Farm—1989 Allegations: Franchisor surveyed and photographed member stores, put product at the back of the shelves and filed a groundless contract claim to try to cause emotional distress and “make an example” of the members. Result: A jury returned a verdict of $1 million in punitive damages, later reduced by the court to $750,000.

2. Polar Corporation—1996 Allegations: Franchisor sent notices of termination to all members effective on the eve of their organizing meeting, using admittedly pretextual grounds, designed to put members out of business. Result: A jury returned a verdict of $225,000, which was affirmed on appeal.

3. New England Toyota—1983 Allegations: In response to an association list of demands, the manufacturer falsely accused a dealer of improper sales promotions, filed a false complaint with the state Attorney General and shorted the delivery of cars. Result: A jury returned a verdict of $1.4 million, later reduced on appeal to approximately $1 million.

4. Dunkin’ Donuts—2003 Allegations: Franchisor alleged that a member of the regional franchisee asso-

ciation had engaged in tax fraud, and terminated their franchise agreement. Other members of the association received similar treatment. The tax fraud allegation was disproved at trial. Result: Jury verdict for the franchisee.

5. Taco Bell—1996 Allegations: Franchisor alleged that franchisee association leaders were “renegades and scum” and complained that they had spoken of their complaints to the United States Congress and to the media. It declared one of their leaders ineligible for expansion because of a “poor attitude”—a newly invented criteria. Result: Franchisor motion for summary judgment denied.

Allegations: Franchisee association posted a suicide note from a distraught franchisee on its website. Franchisor sent termination notices to all members of the association board. Result: Court determines that the terminations were “impulsive and retaliatory.” Injunction against termination granted. In each of these eight cases a franchisee, franchisee association or in one case the Massachusetts Attorney General prevailed in litigation where a franchisor did not honor but instead tried to undermine the unquestioned right of franchisees to freely associate and to express and seek redress of their grievances. Of course, the point of this article is not to threaten litigation against 7-Eleven, Inc. but to be clear that these rights of association are not in doubt anywhere in United States. A better course on the part of your franchisor would be to accept the many and varied invitations it has received to reset the relationship with its franchisee community, to treat its franchisees as stakeholders rather than glorified store managers, to be open and transparent about its strategic plans and the store level economic consequences of them, and to engage in good faith negotiations to arrive at a truly fair and balanced franchise agreement with its franchisees.

“Currently, 11 states have laws which protect the right of franchisees to freely associate.”

6. Popeye’s Chicken—1993 Allegations: Franchisor revised store evaluation reports, made derogatory comments about the franchisee association, and terminated the development rights of the franchisee. Result: Franchisor motion for summary judgment denied.

7. Carvel Corporation—1981 Allegations: Franchisor confronted members at the entrance of the meeting, threatening serious consequences for attendance and demanded to address the meeting. Result: Lawsuit brought by the state Attorney General; Franchisor motion for summary judgment denied.

“The only two cases decided in the United States on the issue of the legitimacy of franchisee associations and the collective actions in which they engage were decided in favor of franchisee associations.” 44

8. Quiznos—2007

AVA N T I N O V E M B E R | D E C E M B E R 2 0 1 8

ERIC H. KARP CAN BE REACHED AT

617-423-7250 or ekarp@wkwrlaw.com

Vice Chairs’ Forum

FRANCHISEE EXPENSES ARE OUT OF CONTROL BY AJINDER HANDA, NCASEF VICE CHAIRMAN, PRESIDENT, GREATER SEATTLE FOA

In any business, there are three ways to make money: by increasing sales or gross profit, by decreasing expenses, or by cutting corners. 7Eleven franchisees are not able to increase sales and GP due to the lack of a sufficient and effective advertising program, or we are giving away some of our GP to our regular customers by way of promos and deep discounts (please read my last article). “FOODSERVICE As far as lowering expenses to NEEDS TO BE make money, that isn’t an option for SIMPLER SO IT WILL us because our expenses have actually NOT REQUIRE been growing for the last several EXTRA LABOR, OR years. If you look at any of our exIT NEEDS TO BE pense lines, it’s almost double what it MORE PROFITABLE was 7 to 8 years ago. In any business SO FRANCHISEES model, if your expenses are increasing CAN AFFORD so do your profits proportionately. EXTRA LABOR.” However, 7-Eleven’s current business model is hurting and eating our bottom lines. Food service definitely is the future of the convenience industry, since it generates 70 percent GP. But what about our stores that are merely generating 35 to 40 percent GP in food service, if they are lucky? To top it off, our current food service model is extremely labor intensive. Either it needs to be simpler so it will not require extra labor, or it needs to be more profitable so franchisees can afford extra labor. Our biggest expense—payroll—is getting out of hand and will expand more in the near future. Rubbish, license fees, maintenance fees, common area maintenance, etc.—you name it, every one

of them is growing. But what about SEI? In the past few years, they have either consolidated their expenses or passed them on to franchisees. The point is that SEI’s bottom line is getting healthier (which is good with us as long as it’s fair and not hurting us), whereas franchisees’ take home is shrinking. Maybe this is good for SEI for a short period of time, but not for the long term because a failed store is not good news for any franchise system. Let’s sidetrack a bit to discuss relationships. Is it necessary to be in the good graces of 7Eleven Inc. in order to communicate with them? Why can’t we give constructive criticism or feedback? Why can’t we all sit down and figure out what’s the root cause of the problems with our system? I recently found something interesting on Seven & i Holdings’ website. On the page that lists the Seven & i Group Corporate Action Guidelines, under Corporate Creed, it states: “We aim to be a sincere company that our customers trust. We aim to be a sincere company that our business partners, shareholders, and local communities trust. We aim to be a sincere company that our employees trust.” Is this what 7-Eleven, Inc. truly believes? Do they honestly think they are following this creed? Stay tuned!

“Food service is the future of the convenience industry, since it generates 70 percent GP, but what about stores that are merely generating 35 to 40 percent GP in food service?”

AJINDER HANDA CAN BE REACHED AT

AJINDERHANDA@HOTMAIL.COM OR 425-438-8381

AVANTI N O V E M B E R | D E C E M B E R 2 0 1 8

Vice Chairs’ Forum

IT’S TIME TO GET DOWN TO BUSINESS BY NICK BHULLAR, NCASEF VICE CHAIRMAN

As we all get ready to go into the new year, I find that there could not be a better time to take a close look at the year we have had and to get inspiration for what we could do better in the new upcoming year. Needless to say that we have had quite a year with the lawsuit in California, minimum wage increases, and the huge shift in buying habits of our customers. For these reasons and many more, it’s crucial now, more than ever, to remain resolved and poised as businessmen so we can continue to deliver excellence through our stores. In today’s competitive retail food industry, things are changing rapidly. From fresh food ordered via app and delivered to your home, to Amazon Go cashier-less stores, we have more competition than ever before. We need our resources and 7Eleven’s resources to meet the competition and provide our stores with moneymaking strategies that can continue to compete in the marketplace. Moreover, we can’t dilute our focus on serving the customer as our goal. At this point, I urge both the National Coalition and 7-Eleven to get back to the playing field for the sake of franchisees and the system. The problems we will face in the future require dedication to improvement. It’s a fact that both parties have to work together to make this system work. Franchisees have to work with 7-Eleven and 7-Eleven has to work with franchisees. The money, energy and the resources we are spending to struggle with each other are what we should be spending to catch up with the market. Wawa is

building 10,000 square foot stores. Ama- “IT’S CRUCIAL NOW, zon is bringing cashier-less stores. Japan MORE THAN EVER, 7-Elevens are experimenting with facial TO REMAIN RESOLVED recognition. We need to do the same and focus our energy in remodeling our stores AND POISED AS BUSINESSMEN SO and bringing in more food. As far as the new agreement goes, the WE CAN CONTINUE majority of franchisees have already TO DELIVER signed it, because it’s either sign or find a EXCELLENCE new business. 7-Eleven Corporate has THROUGH OUR changed their agreement nearly every STORES.” year or two since 2004, and we will find out over the next year whether the new contract works. In the meanwhile, if we are working together, we can at least try to convince 7-Eleven to make changes to things that aren’t working. At least we can feel good about working the day-to-day business. Those of us in the system now are locked in. If we don’t have a good relationship with corporate, how are we going to sit down with them and discuss what needs to be changed? 7-Eleven is a huge part of my “We need our resources and 7-Eleven’s past and my furesources to meet the competition and ture. And I want provide our stores with moneymaking to protect my strategies that can continue to compete business just like the rest of my in the marketplace.” franchisee-family. However, we can only fix this estranged relationship by sitting down with 7Eleven corporate and talking to them. We need to be proacNICK BHULLAR tive, at the local FOA level and at the CAN BE REACHED AT bhullar711@yahoo.com National level, with or or 626-255-8555 our brand. AVANTI N O V E M B E R | D E C E M B E R 2 0 1 8

NCASEF Treasurer Jas Dhillon. Coca-Cola’s Amr Kora.

National Coalition Board Meeting November 6-9, City of Industry, California

Utah FOA President Wallace Imamura (center), Vice President PJ Clayton, and Vice Chairman Nick Bhullar (left).

Vendors, FOA presidents and vice presidents, and National Coalition officers met November 6-9 at the Pacific Palms Resort in the City of Industry, California for a one-day Affiliate Member meeting followed by a multiple day meeting of the NCASEF Board of Directors. On day one vendors and FOA presidents and vice presidents engaged in lively group breakout sessions to talk about how to create a win-win success for the NCASEF’s 44th annual convention in 2019. It was announced at the meeting that the convention will be held August 5-8, 2019, at the Long Beach Convention Center and the Rennaissance Long Beach Hotel, in Long Beach, California.

NCASEF General Counsel Eric Karp.

As in previous years, room rates and registration for franchisees will be subsidized by vendor sponsorships, and a car will be given away to promote franchisee participation and ordering at the trade show. In the morning Keith Erickson, a former NBA player for the 1972 Champion Los Angeles Lakers, Chicago Bulls, and Phoenix Suns also spoke on personal motivation and his long friendship with famed coach and mentor John Wooden. In the afternoon, vendors were able to present table top deals where presidents and vice presidents, as well as local franchisees attending the meeting could order products. Most of day two of the meeting was dedicated to vendor presentations that allowed presenting vendors to introduce new products and provide inforamation that could be taken back and presented to local FOA members. Representatives from Crossmark, Dr Pepper, Vixxo, Fiji/Wonderful, Stork, St. Killians, Coca-Cola, Home Market Foods, CocoMax, Pepsi, Del Monte Foods and Mitsui made presentations.

NCASEF Chairman Jay Singh.

The balance of the meeting days focused on a complete agenda of items important to NCASEF members: membership, new business items, marketing and public relations, legal report, the NCASEF survey, treasurer’s report, upcoming events, Avanti magazine, and unity and FOA strengths. The Coalition of Franchise Associations’ Keith Miller provided some information on franchisee advocacy consulting, and Matt Ellis of Ellis Strategies, and Lucilia Garcia from Rational 360 spoke about marketing and PR strategies for the Coalition. During the meeting it was announced that two Washington State FOAs—the Greater Seattle FOA, and the Pacific Northwest FOA—would merge to form one consolidated group to be named the Greater Northwest FOA.

United Franchise Owners of North Florida and Palm Beach President Ed Denorio.

The National Coalition’s next Board Meeting is scheduled for February 19-21, 2019 at the Sheraton Four Points in Coppell, Texas. Sierra FOA President Serge Haitayan. 50

AVA N T I N O V E M B E R | D E C E M B E R 2 0 1 8

Vixxo’s Regina Coleman.

Former Chairman of the CFA Keith Miller.

AVANTI N O V E M B E R | D E C E M B E R 2 0 1 8

2018 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

Affiliate Member Signup

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. Each FOA brings a president and a vice president to all Affiliate and

If your company has an interest in coming to the February 18-19, 2019 Affiliate Member meeting in Coppel, TX, visit www.NCASEF.com to register as an Affiliate Member. The representatives you designate will then receive an email invite to the meeting.

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 February 18-19, 2019 Board Meeting in Coppel, Texas, 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.

2018 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.

AON RISK SERVICES Tonya Leffall 2711 Haskell Avenue, Ste 800 Dallas, TX 75204 214-989-2349 renee.leffall@aon.com

B2B USA LLC Mark Eguia 6807 Theall Road, Suite C Houston, TX 77066 281-866-0195 meguia@b2busallc.com

5-HOUR ENERGY Vince Sullivan 3214 Roan Way San Antonio, TX 78259 210-788-1547 vince@fivehour.com

AMERICAN LICORICE COMPANY Mary Kasberg 1900 Whirlpool Drive S Laporte, IN 46350 360-609-1980 mkasberg@amerlic.com

ARGO TEA Cris Bengis 16 W. Randolph Street Chicago, IL 60601 469-579-4150 cris.bengis@argotea.com

BARCEL USA Brian Castillo 301 S. Northpoint Drive, Suite 100 Coppell, TX 75019 469-412-6523 brian.castillo@grupobimbo.com

ANHEUSER-BUSCH, INC. James Allred 13142 Terlingua Creek Drive Frisco, TX 75033 601-209-5667 james.allred@anheuser-busch.com

ARIZONA BEVERAGES USA Doreen Higney 1 Arizona Plaza, Suite 400 Woodbury, NY 11797 516-812-0365 dhigney@drinkarizona.com

BEL BRANDS USA Jeff Molden 30 S. Wacker 30th Floor Chicago, IL 60606 312-462-1548 jmolden@belbrandsusa.com

ALTRIA GROUP DIST. CO. Jim Duke 6601 W. Broad Street Richmond, VA 23230 804-484-8151 James.Duke@altria.com

AVANTI N O V E M B E R | D E C E M B E R 2 0 1 8

2018 AFFILIATE MEMBERS BON APPETIT Mike Kawas 4820 E. 50th Street Vernon, CA 90058 323-584-9500 m.kawas@bonappetitbakery.com CAB ENTERPRISES Jeff Nelson 5800 S. Eastern Avenue Commerce, CA 90040 817-296-5934 nelsonjeff@sbcglobal.net CAMPBELL SALES CO. David Worley 1 Campbell Place Camden, NJ 08103 512-202-4035 david_worley@campbellussales.com CHELAN FRESH MARKETING Mac Riggan 317 E Johnson Avenue Chelan, WA 98816 509-682-6073 macr@chelanfresh.com CINTAS CORPORATION Marc Friend 6800 Cintas Blvd Mason, OH 45040 513-701-2014 friendm@cintas.com CITCO Haris Mohamedy 4030 Valley Blvd., Suite 102 Walnut, CA 91789 909-594-7055 haris@citcousa.com COCA-COLA, USA Melonie Dangerfield 5800 Granite Parkway, Suite 900 Plano, TX 75024 214-232-9320 mdangerfield@coca-cola.com COCA-COLA, USA Trish Hale 8088 Park Lane #911 Dallas, TX 75231 806-786-2159 patriciaahale@coca-cola.com

COCO MAX Michael Michail 5930 Cornerstone Court West, Suite 170 San Diego, CA 92121 619-778-1529 mmichail@unitedbrands.com CORE-MARK INTERNATIONAL, INC. Chris Ladesich 3200 Hackberry Road 3E18G Irving, TX 75063 972-713-2924 cladesich@core-mark.com CROSSMARK Cheryl Tucker 5100 Legacy Drive Plano, TX 75024 469-814-1508 cheryl.oleary@crossmark.com DEL MONTE FOODS INC. Randall Freeman 205 North Wiget Lane Walnut Creek, CA 94598 831-582-8955 randall.freeman@delmonte.com DETOUR BARS Linnea Solbrook 9106 Vinewood Drive Dallas, TX 75228 214-843-7012 lsolbrook@detourbar.com DS TIGER & COMPANY Edward Stanton 11700 Preston Road #660-234 Dallas, TX 75230 972-762-9660 estanton@DSTiger.com ECOLAB Andy Ho 4050 Corporate Dr. Suite 100 Grapevine, TX 76051 214-315-6888 andy.ho@ecolab.com EPIC PROVISIONS Martha Siskron 1902D South Congress Avenue Austin, TX 78704 512-944-8502 martha@epicbar.com

AVA N T I N O V E M B E R | D E C E M B E R 2 0 1 8

FERRARA CANDY COMPANY Samantha Richard One Tower Lane Suite 2700 Oakbrook Terrace, IL 60181 985-264-4493 samantha.richard@ferrarausa.com FERRERO USA, INC. Molly Pippin 149 E. Terra Alta Drive San Antonio, TX 78209 732-427-1059 molly.pippin@ferrero.com FETZER VINEYARDS Chris Tomandl 700 122nd Ave NW Coon Rapids, MN 55448 763-350-0313 chris.tomandl@fetzer.com FIJI WATER Robert Dunsworth 11444 W. Olympic Blvd. 2nd Floor Los Angeles, CA 90064 773-895-7866 robert.dunsworth@fijiwater.com FORTO COFFEE/DYLA BRANDS Chase Laws 222 Broadway, 19th Floor New York, NY 10038 704-517-4959 chase@dylabrands.com FRANKFORD CANDY John Wetherby 9300 Ashton Road Philadelphia, PA 19114 215-630-2218 jwetherby@frankfordcandy.com

GLANBIA Jimmy Gutierrez 7692 Alderwood Avenue Eastvale, CA 92880 331-452-3683 jimmygutierrez@optimum nutrition.com GLANBIA Terrence Lombard 1s268 Dillon Lane Villa Park, IL 69181 224-254-3039 tlombard@glanbia.com GLANBIA Steve Milillo 32 Hayes Street Blauvelt, NY 10913 561-613-8324 smilillo@glanbia.com GLAXOSMITHKLINE Scott Breisinger 184 Liberty Corner Road Warren, NJ 07059 412-445-5275 scott.f.breisinger@gsk.com GT'S LIVING KOMBUCHA FOODS Alan Bassett PO Box 2352 Beverly Hills, CA 90213 323-919-0393 abassett@drinkgts.com HAIN CELESTIAL GROUP Jeff Seavey 1111 Marcus Ave. Lake Success, NY 11042 617-938-9737 Jeff.Seavey@Hain.com

HEINEKEN USA Evan Freuder 8217 Short Street Frisco, TX 75034 203-461-4858 efreuder@heinekenusa.com

JT INTERNATIONAL U.S.A. Timothy Chauncey 14750 N FM 51 Decatur, TX 76234 954-803-3034 timothy.chauncey@jti.com

LIFEWAY FOODS Karl Watson 1214 Ranchwood Drive Shorewood, IL 60404 779-225-8629 karlw@lifeway.net

HORMEL FOODS CORP. Todd Ginley 333 S. Anita Dr., Suite 1000 Orange, CA 92868 214-883-9910 twginley@mmxfoods.com

LIL' DRUG STORE PRODUCTS Tom Brice 1716 Bo Jo Ella Drive Douglas, GA 31533 912-393-1156 tbrice@lildrugstore.com

INTER-CONTINENTAL CIGAR CORP. Mike Callahan 1985 Winchester Drive Frisco, TX 75033 954-450-1449 mcallahan@alcapone-us.com

LINDT & SPRUNGLI Chad Keener 1 Fine Chocolate Place Stratham, NH 03885 214-842-1473 ckeener@lindt.com

IOIPAY Troy Cadotte 1710 Leer Drive Elkhart, IN 46515 574-262-2800 troy.cadotte@ioipay.com ITG BRANDS Stuart Newbrough 11601 Plano Road, Suite 112 Dallas, TX 75243 214-340-6621 stuart.newbrough@itgbrands.com JACK LINK'S BEEF JERKY Jason Link 923 Green Bay Street La Crosse, WI 54601 608-213-3361 jason.link@jacklinks.com JIMMYBAR Jim Simon 457 Buss Road Elk Grove Village, IL 60007 888-676-7971 ranna@jimmybar.com JOHNSON & JOHNSON/CROSSMARK Paul Maione 917 Westwind Drive North Palm Beach, FL 33408 908-797-2154 paul.maione1@crossmark.com

JUUL LABS Jon Schwartz 660 Alabama Street San Francisco, CA 90411 214-558-3429 jonathans@juul.com KELLOGG COMPANY Ryan Herrin 3029 Le Manns Street Midlothian, TX 76065 863-838-5883 Ryan.Herrin@kellogg.com KRAFTHEINZ COMPANY Megan Sparks 501 SE 2nd Street, Apt. 821 Fort Lauderdale, FL 33301 847-646-1049 Megan.Sparks@KraftHeinz Company.com KRETEK INTERNATIONAL Scott Gibson 5449 Endeavour Court Moorpark, CA 93021 805-744-4160 scottgibson@kretek.com

MCLANE COMPANY INC. Jimmy Patterson 6201 Northwest H K Dodgen Loop Temple, TX 76504 972-828-7008 jimmy.patterson@mclaneco.com MILLERCOORS BREWING CO. Bernard Williams 7800 Dallas Parkway Plano, TX 75024 404-721-8448 bernard.williams@millercoors.com MONDELEZ INTERNATIONAL Heather Johnson 4523 Avenue B Austin, TX 78751 917-612-3265 heather.e.johnson@mdlz.com

2018 AFFILIATE MEMBERS MONSTER ENERGY Kellen Flores 1 Monster Way Corona, CA 92879 949-306-9697 kellen.flores@monsterenergy.com MSIG John Harp 15 Independence Blvd. Warren, NJ 07059 908-604-2951 jharp@msigusa.com NATIONAL TOBACCO COMPANY Casey Cooper 3792 Brogan Court Burlington, KY 41005 859-802-4568 ccooper@nationaltobacco.com NESTLE PROFESSIONAL Susan Davis 3916 Vintage Place Flower Mound, TX 75028 972-355-6477 susan.davis@us.nestle.com NESTLE ICE CREAM Jackie Lawing 1202 Lakewood Drive McKinny, TX 75070 214-534-5721 chip.vineyard@us.nestle.com

LA CROIX Laura Eymann 8100 SW 10th Street, Suite 4000 Fort Lauderdale, FL 33324 954-581-0922 leymann@lacroixbeverages.com

AVANTI N O V E M B E R | D E C E M B E R 2 0 1 8

2018 AFFILIATE MEMBERS NIAGARA BOTTLING, LLC Michael Lohr 2808 Hereforrd Road Denton, TX 76210 214-956-8160 mlohr@niagarawater.com NONGSHIM AMERICA Daniel Morales 12155 6th Street Rancho Cucamonga, CA 91730 909-452-5126 dmorales@nongshimusa.com ONE BRANDS Robert Delgado 1406 Pearl Street Boulder, CO 80302 949-374-7750 robert.delgado@one1brands.com PABST BREWING COMPANY Ken Grabe 3805 Burlington Drive Flower Mound, TX 75022 321-514-5271 kgrabe@pabst.com PAYALITY INC. Chet Reilly 1600 Draper Street Kingsburg, CA 93631 559-634-1001 chet@payality.com PERFETTI VAN MELLE USA Colt Bearden 6375 Lansdale Drive Fort Worth, TX 76012 817-538-8693 colt.bearden@perfettivanmelle.com PRAIRIE CITY BAKERY Tim Clark 7204 NE 84th Court Kansas City, MO 64157 913-636-6614 tclark@pcbakery.com PROCTER & GAMBLE Javier Parga 921 Ogden Street San Antonio, TX 78212 408-832-9430 parga.j.1@pg.com

PROSOURCE Kelly Conklin 2231 Landmark Place Manasquan, NJ 08736 732-528-3265 kelly@prosource.com PUGS HOLDING Jack Claiborne 8829 Hackney Prairie Road Orlando, FL 32818 407-412-8563 jack.claiborne@srpcompanies.com PWM ELECTRONIC PRICE SIGNS Wolfgang Manz 221 Barren Springs, Suite 1 Houston, TX 77090 713-290-0626 wolfgangm@p-w-m.com R&R INNOVATIONS Tom Lagomarsini 122 Greentree Drive Crawford, TX 76638 702-443-2179 tom@rrinnovate.com RJ REYNOLDS TOBACCO CO. Steve Kottak 401 North Main Street Winston Salem, NC 27102 336-306-4719 kottaks@rjrt.com SAPPORO USA Philip Marte 2271 West 205th Street, Suite 104 Torrance, CA 90501 904-472-6598 pmarte@sapporousa.com SHAMROCK FARMS Michael Stremlau 1900 W Ruthrauff Road Tucson, AZ 85705 520-904-7580 michael_stremlau@shamrockfoods.com SNAGAJOB Joe Gabriel 1919 N. Lynn Street, 7th Floor Arlington, VA 22209 703-457-7873 joe.gabriel@snagajob.com

AVA N T I N O V E M B E R | D E C E M B E R 2 0 1 8

SNYDER'S-LANCE INC. David Galindo 9209 West Los Gatos Drive Peoria, AZ 85383 800-233-7125 x 5393 dgalindo@snyderslance.com ST. KILLIAN IMPORTING Victoria Semos 170 Market Street Everett, MA 02149 214-727-0254 victoria.semos@stkillian.com

THE LEWER AGENCY, INC. Tom Kohl 4534 Wornall Road Kansas City, MO 64111 913-306-3229 tkohl@lewer.com THINKTHIN Tim Zeigler 12211 W Washington Blvd, Suite 120 Los Angeles, CA 90066 805-644-4848 tzeigler@thinkproducts.com

STRIKE FORCE BEVERAGE Bruce Schlee 2315 S. Dock Street Palmetto, FL 34221 608-556-3656 bruces@StrikeForceEnergy.com

TITAN CHAIR LLC Michael Cha 1303 Marsh Lane Carrolton, TX 75006 888-848-2630 tx_mcha@osakititan.com

STRYVE FOODS Emily Prud'homme 6900 N. Dallas Pkwy, Suite 360 Plano, TX 75024 972-987-5130 emily@stryvefoods.com

TWANG PARTNERS LTD. Heath Chapman 6255 WT Montgomery Road San Antonio, TX 78252 512-773-6621 hchapman@twang.com

SUGAR FOOD CORP. Daniel Wells 5400 Thousand Oaks Drive Round Rock, TX 78681 830-515-0981 dwells@sugarfoods.com

TYSON FOODS Tyler Coates 2730 King Street Denver, CO 80211 513-889-7323 tyler.coates@tyson.com

THE HERSHEY COMPANY Jillian McHale 3604 Meares Drive, Apt 327 Fort Worth, TX 76137 216-246-1120 jmontali@hersheys.com

ULTIMATE SALES AND SERVICES Michele Michalak 613 Stephenson Ave., Suite 101 Savannah, GA 31405 540-374-1194 mmichalak@ultimate-sales.com

2018 AFFILIATE MEMBERS UTZ QUALITY FOODS Russ Law 16471 Innerarity Point Road Pensacola, FL 32507 850-465-3397 russell.law@inventurefoods.com VERONI BRANDS CORP Cathal O'Flaherty 650 Forest Edge Drive Vernon Hills, IL 60061 224-505-9946 coflaherty@veronibrands.com VIXXO CORPORATION Sid Middlebrook PO Box 1355 Centerville, TX 75833 832-257-0427 sid.middlebrook@vixxo.com

WIND RIVER SALES & DISTRIBUTION CO Edward Chrupcala 4870 Sadler Road, Suite 300 Glen Allen, VA 23060 804-205-5075 echrupcala@windrivertobacco.com

AJINOMOTO FOODS NORTH AMERICA Steve Horine 4217 Chetham Drive Ft Wayne, IN 46835 260-492-9797 steve.horine@ajinomotofoods.com

RED BULL NORTH AMERICA Clint Harshman 1223 Dodgeton Drive Frisco, TX 75033 704-626-8217 clint.harshman@redbull.com

WONDERFUL PISTACHIOS & ALMONDS Holly Hines 1063 Enchanted Rock Drive Allen, TX 75013 214-701-5282 holly.hines@wonderful.com

CHOBANI, INC. Aaron Steinbach 23902 Hartford Springs Trail Katy, TX 77493 402-250-9985 aaron.Steinbach@chobani.com

SERENDIPITY BRANDS Jim Christensen 200 Crossways Park Drive W Woodbury, NY 11797 480-689-5962 jimchristensen32@gmail.com

CINTAS CORPORATION Timothy Monjauze 14792 Franklin Avenue Tustin, CA 92780 323-371-5783 monjauzet@cintas.com

SMOKEY MOUNTAIN SNUFF Richard Hunsberger 5505 Wisdom Court Waco, TX 76708 214-914-5531 rhunsberger@smokeyusa.com

WTRMLN WTR Josie Chiavetta 3000 Lawrence Street, Suite 23 Denver, CO 80205 212-905-2393 jchiavetta@wtrmlnwtr.com

ECOLAB David Read 116 Dory Lane Stansbury Park, UT 84074 800-532-7732 david.read@ecolab.com JOHNSONVILLE SAUSAGE CO. Gene Rech PO Box 906 Sheboygan Falls, WI 53085 920-453-6960 grech@johnsonville.com

VPX SPORTS Frank Guagenti 1600 North Park Drive Weston, FL 33326 954-641-0570 frank.guagenti@vpxsports.com

WYOMING ALL NATURAL BEEF SNACKS David Fales PO Box 2212 Cody, WY 82414 307-203-9252 dfales@wyproducts.com

WALKERS SHORTBREAD, INC. Neil Apple 170 Commerce Drive Hauppauge, NY 11788 631-273-0011 napple@walkersshortbread.com

YOMM'S Debbie Wildrick 15305 Dallas Parkway, Suite 300 Addison, TX 75001 844-720-7029 dwildrick@yomms.com

WELLS (BLUE BUNNY) Randy Martin 5915 Caymus Loop Windermere, FL 34786 712-500-4108 grmartin@bluebunny.com

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

AVA N T I N O V E M B E R | D E C E M B E R 2 0 1 8

KEURIG DR PEPPER Tom Nawa 5301 Legacy Drive Plano, TX 75024 972-673-8766 tom.nawa@dpsg.com MCLANE COMPANY INC. Anthony Woodward 6201 NW HK Dodgen Lp Temple, TX 76502 480-349-2066 anthony.woodward@mclaneco.com MONSTER ENERGY Frank Gambina 1 Monster Way Corona, CA 92879 949-291-1731 frank.gambina@monsterenergy.com

STORCK USA, L.P. Tony Harper 325 N. LaSalle Street Chicago, IL 60654 312-494-5912 tony.harper@us.storck.com SWEDISH MATCH Aaron Choate 403 Wellington Court Southlake, TX 76092 817-312-2017 aaron.Choate@SwedishMatch.com SWISHER INTERNATIONAL, INC. Ken Ramirez 1033 Buckbean Branch Lane W St Johns, FL 32259 904-312-1725 kramirez@swisher.com VITA COCO Tom Puntoompoti 250 Park Ave. South, 7th Floor New York, NY 10003 718-614-8592 tpuntoompoti@vitacoco.com

continued from page 29

Legislative Update of the premium. e premium is equal to 0.4 percent of wages, with employers and employees each paying a share. In 2020, the benefits kick in. Qualifying workers will be able to take up to 12 weeks of paid time oﬀ to care for new children, sick relatives, or to recover from an illness. ey can take up to 16 weeks when family and medical leave are used in conjunction. ey will receive weekly pay that equals up to 90 percent of their regular salary, with a minimum of $100 and a maximum of $1,000 per payment.

New Jersey To Ban Cashless Stores New Jersey lawmakers recently advanced a bill that would ban cashless stores in the state, reported the Philadelphia Inquirer. e measure, which can now go before the full state Senate, would require all brick-and-mortar retailers to accept cash, excluding transactions made online, by telephone, or by mail. at would make New Jersey the second state to prohibit retailers from refusing to accept cash and the first since 1978, when Massachusetts passed a law banning cashless stores. e state Senate Commerce Committee unanimously approved the bill, with amendments that would exclude retailers inside airports and certain parking facilities from the cash requirement. Under the bill, businesses could receive a $2,500 fine for a first oﬀense and $5,000 for a second violation. Subsequent oﬀenses would be considered unlawful practices under the consumer fraud act, which can levy penalties of up to $20,000. Philadelphia and New York City are also considering cashless store bans.

Washington Passes, Oregon Rejects Ban On Grocery Taxes Washington state residents recently approved a ballot initiative that prohibits local governments from passing new taxes or fees on groceries, reported Forbes. While the measure—Initiative 1634, or the Prohibit Local Taxes on Groceries initiative— wouldn’t repeal the Seattle soda tax that went into eﬀect January 2018, it would prevent other cities and local governments in the state from passing similar taxes. In neighboring “WASHINGTON STATE NOW HAS ONE OF state Oregon, resTHE MOST GENEROUS PAID FAMILY AND idents defeated a MEDICAL LEAVE PROGRAMS IN THE NA- similar initiative—Measure TION—UP TO 16 WEEKS OF PAID TIME 103, which would OFF TO CARE FOR NEW CHILDREN AND have amended DEAL WITH ILLNESSES AND INJURIES.” the state constitu-

tion to prohibit the state and local governments from passing taxes on groceries, defined as “raw or processed food or beverages intended for human consumption, excluding alcohol, tobacco, and marijuana.” Critics of the Oregon law argued the measure was overly broad and confusing, warning it could apply to food served in restaurants too, though its draers say that was not the intent.

NYC Bill To Ban Cashless Businesses

“A NEW YORK CITY LAWMAKER PLANS TO INTRODUCE LEGISLATION THAT WOULD LEVY FINES ON ANY LOCAL BUSINESSES THAT REFUSES TO ACCEPT PAPER CURRENCY.”

In an eﬀort to stem the growing trend of cashless restaurants—establishments that accept payment only in plastic and digital forms—a New York City lawmaker plans to introduce legislation that would levy fines on any local businesses that refuses to accept paper currency, reported Eater.com. City Council Member Ritchie J. Torres, the man behind the measure, believes the cashless business model is inherently classist and racist, as it excludes anyone who might not be able to aﬀord smartphones loaded with digital currency such as Apple Pay or qualify for credit cards, let alone the roughly 22 million Americans who do not have bank accounts. He said he is optimistic New York’s progressive city council will pass his legislation, but he expects local businesses will “mobilize to oppose the bill.”

FDA Redefining ‘Healthy Foods’ e U.S. Food and Drug Administration is revamping its “Healthy was definition of healthy to reflect our changing understanding of originally used to nutrition science, reported the set limits on total fat Associated Press. e federal standards for use of the word and cholesterol.” “healthy” on labels was established in 1994 and set limits on total fat and cholesterol. Susan Mayne, who heads the FDA's food labeling division, said the definition reflects decades-old understanding of nutrition and needs to be updated. With the revamp, she said people will be able to trust the word “healthy” is based in science, unlike many other terms on packages. e government's dusty definition of healthy came under scrutiny in late 2015, when the FDA warned Kind, LLC that its snack bars had too much fat to use the term. Kind pushed back, saying the fat came from nuts.

AVANTI N O V E M B E R | D E C E M B E R 2 0 1 8

continued from page 26

planning district, and temporarily halted sales for any retailer that received three violation notices within two years. The rules did not remove licenses from those who had them but affected future applicants or those looking to sell their businesses and transfer the licenses to new owners. The Council voted against a bill that aimed to reverse some of those regulations. The measure would have allowed a tobacco retail permit to be transferred to a new owner even if a store was near a school or exceeded the cap on the number of retailers in the area. Bilal Barqawi, vice president of the 7-Eleven Delaware Valley FOA, said many small-business owners feel cheated. After contributing to the economy for years and following regulations against selling to minors, “Why are they hurting my investment?” he said.

SEI’s Next Up Event A Success Seventy companies were chosen to participate in SEI’s first Next Up event in early October, designed to give emerging brands an opportunity to engage with the retailer, reported Convenience Store News.

More than 1,000 7-Eleven team members and Dallas-area franchisees packed 7Eleven's Store Support Center in Irving, Texas on October 11 to sample a wide selection of snack and beverage products on the leading edge of today's food-consumption trends. “Next Up exceeded our expectations in every way, from the number of companies that expressed an interest, to the level of participation and engagement,” said Chris Harkness, SEI’s vice president of sales, field merchandising and business development. “Customers are seeking differentiated products. They want cleaner labels, better-for-you and healthier products,” said Marisa Bertha, director of business development, adding that 7-Eleven is not looking to overhaul its product assortment, but rather “to add innovative brands that provide customers with a wider array of choices.”

NY Franchisee Joins IMAGE program A dozen New York based businesses have recently partnered with U.S. Immigracontinued next page

continued from page 24

healthier choices, Dollar General has recently added around 125 “better for you” items to its shelves in 2,700 stores, reported CNN Business. Dollar General said the initiative was performing better than it expected, and it has plans to roll out to more stores next year. • Mexican lager brand Corona will

pilot plastic-free six-pack rings made from plant-based biodegradable fibres, with a mix of by-product waste and compostable materials, reported FoodBev Media. The brand said it sees an opportunity to help redesign a common source of plastic in the category. The plastic-free rings will be piloted in the town of Tulum in Mexico in 2019, with plans to test in the UK later in the year. • Bottled water has

quickly become the most successful mass market beverage category in the U.S., with nearly 14 billion gallons sold in 2018, reported Beverage Daily. Since 1978, bottled water has grown at a CAGR of 8.9 percent, more than any other beverage category. • Americans

continue to abandon passenger cars, transitioning rapidly into crossovers, SUVs and pickups, reported USA Today. Sales of compacts fell 18.4 percent in November and sales of midsize cars declined 15 percent. But sales of compact SUVs and crossovers rose 11.6 percent and sales of midsize SUVs and crossovers increased 11.7 percent. • Sam’s Club

is opening a location in Dallas that will allow customers to scan and pay for their groceries with an app, without a cashier or standing in the checkout line, reported CNBC. Sam’s Club said the new store will be about a quarter the size of a traditional club store, and promised a wider rollout of the technology that’s being tested in that store. • The

UFOLINY President Yousef Naseer (fourth from right), on getting IMAGE certification from New York Homeland Security Investigations for each of his 7-Eleven stores. 62

AVA N T I N O V E M B E R | D E C E M B E R 2 0 1 8

U.S. Secret Service kicked off the holiday season with a nationwide initiative to crack down on credit card skimming continued on page 64

continued from previous page

tion and Customs Enforcement's Homeland Security Investigations in New York by joining the agency’s employment compliance program IMAGE, or “ICE Mutual Agreement between Government and Employers.” Among them were five 7-Eleven stores and other businesses owned by UFOLINY President Yousaf Naseer. According to an ICE bulletin, these companies combined employ approximately 60 individuals. Four of the 7-Eleven stores are located on Long Island and one in Manhattan. To qualify for IMAGE certification, partners agree to conduct a self-assessment of their hiring practices to uncover vulnerabilities that could be exploited by unauthorized workers; enroll in E-verify, an employment eligibility verification program; train staff on IMAGE Best Employment Practices and the use of new screening tools; and undergo a Form I-9 audit by ICE. Yousaf Naseer stated, “As a 7Eleven franchisee, I decided to participate in

Similar to Memorial “Gas stations and convenience stores with Day Weekend, Labor Day travel resulted in above-average customer service ratings increased foot traffic experienced 32 percent more visits.” across a variety of retail sectors and related the IMAGE program to work closely with industries. Fuel and convenience retailers Homeland Security Investigations, so that that saw significant uplift in foot traffic beI can ensure that I have established proper tween August 31 and September 3 include hiring procedures for my businesses.” BP (30 percent), Phillips 66 (27 percent), and Murphy USA (26 percent). • Great Employees Sell More: Gas stations and convenience stores with above-average customer service ratings experienced 32 percent more visits than their below-average counterparts. Similar correlations were obC-store shoppers are spending more served with ratings for outdoor lighting, time in the store, with the average dwell cleanliness, and overall customer experience. time up 14 percent quarter over quarter and customers spending an additional minute on the property, according to GasBuddy’s Third Quarter Foot Traffic Report. Additionally, the report found that conPennsylvania-based convenience store sumers frequented gas stations the most chain Wawa recently opened its massive during lunch hours—fuel and convenience new location in Philadelphia at 6th and stores saw daily peak traffic times shift Chestnut streets, reported Eater Philly. The specifically to 12 p.m. from later afternoon store is Wawa’s biggest one ever, filling up hours in Q2. Other highlights include: continued on page 64 • Long Weekends Great for Gas Stations:

Study Shows Customers Spending More Time In C-Stores

Wawa Opens Its Biggest Store Yet

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.

Nick Bhullar, Vice Chairman, Board Member, So. California FOA

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

bhullar711@yahoo.com 818.571.1711

rehan711@yahoo.com 847-845-8477

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

National Office nationaloffice@ncasef.com

425-438-8381 ajinderhanda@hotmail.com

AVANTI N O V E M B E R | D E C E M B E R 2 0 1 8

continued from page 63

11,500 square feet in the Public Ledger building. That’s more than 2,000 square feet bigger than the second-largest Wawa, located in Washington, D.C. Along with the size, the city’s newest Wawa stands out thanks to its sleeker style, with the company calling it a “historic, one-of-a-kind store.” The store includes seating, plants, and two indoor murals with the theme “Philly Firsts,” created by Mural Arts and artists Keir Johnston and Willis Humphrey. There are also Mural Arts designs on the coffee cups, available only at this Wawa.

“PYMNTS.com says the selfservice market is growing rapidly, as fresh food sellers work to carve themselves a niche market.”

Grocers Consider Cashierless Checkout To help shoppers check out without waiting in line, grocery retailers are rolling out entire stores centered around cashierless shopping experiences, enabling consumers to purchase fresh food and grocery items with a mobile payments app, reported PYMNTS.com. From North America to China, the concept is gaining ground around the world as retailers conisder bringing the technology to multiple—even thousands of—locations. In the U.S., Amazon has arguably pioneered the concept with its Amazon Go stores. On the other side of the world, BingoBox operates over 200 of its self-service specialty stores in 29

Chinese provinces. According to the PYMNTS Unattended Retail Tracker, the selfservice market is growing rapidly, as fresh food sellers work to carve themselves a niche in a market that will soon be worth billions. The projected value of the global self-service market by 2023 is $13 billion.

New Report Analyzes Amazon Go Amazon is proving yet again that physical retail has a future, reveals a new study by research firm inMarket, which compiled the first-ever look at shopper behavior and visitation trends at Amazon Go stores in Seattle and Chicago. Among the key takeaways of the study: • Visits to Amazon Go contrast traditional grocery stores in that they receive high traffic during the weekdays, and lower traffic on weekends. • Wednesday was the busiest day of the week at Amazon Go in September and October 2018, followed by Thursday and Friday. Excluding weekends, the slowest day was Monday. continued on page 66

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. 64

AVA N T I N O V E M B E R | D E C E M B E R 2 0 1 8

continued from page 62

devices installed at gas stations, reported NBC News. The agency estimates that it recovers about 20 to 30 skimmers a week, with the average skimmer having information from about 80 cards on it by the time its recovered by authorities. • The New York City Taxi and Lim-

ousine Commission is making Uber, Lyft, Via, and Gett/Juno pay on-demand drivers of their services a minimum of $17.22 an hour after expenses starting in mid-January 2019, reported Fortune. The agency noted that the new wage matches the $15-anhour minimum wage in New York City plus the extra costs incurred by freelancers in taxes. • Grocery giant Kroger has teamed with British

online grocer Ocado to boost its delivery business with the construction of about 20 robotically operated warehouses, reported CNBC. Kroger is investing $55 million to build the ﬁrst warehouse in Monroe, Ohio, which will measure 335,000 square feet, generate more than 400 new jobs and take about two years to open. • Chicago is suing eight companies

that sold e-cigarette products to people under age 21 as part of a sting operation launched by the city, the Chicago Tribune reported. Chicago oﬃcials have also sent letters to 33 manufacturers of e-cigarette products, requesting information about their marketing practices and eﬀorts to prevent youth smoking. •

A new Rasmussen Reports national survey finds that just 14 percent of American adults say they would hire a self-driving car through a service like Uber or Lyft. Seventy-ﬁve percent say they would opt for a car they can drive instead. • Amazon is plan-

ning to open one of its cashierless Amazon Go stores in London's Oxford Circus, reported The Sunday Telegraph. • McDonald's has extended the deadline for its franchisees to complete required restaurant remodels from continued on page 66

continued from page 64

• Peak visit times occur during business hours, with 12pm, 2pm and 1pm attracting the most visits, followed by 8am and 9am. • The median dwell time at Amazon Go is 27 minutes. This could indicate that people are taking their time and exploring the store, or sitting down to enjoy their premade food items in the seating area. • Customer retention does seem to be happening: 44 percent of shoppers in this study visited Amazon Go multiple times, versus 56 percent who visited only once.

Organized Retail Crime Continues To Grow Organized retail crime is continuing to grow, with nearly three-quarters of retailers surveyed reporting an increase in the past year, according to the 14th annual ORC study released by the National Retail Federation. The report found that 92 percent of companies surveyed had been a victim of ORC in the past year and that 71 percent said ORC incidents were increas-

goods while keeping the crime a misdemeanor and avoiding the risk of higher penalties that come with the commission of a felony. While at least 34 states have ORC laws, 73 percent of retailers surveyed support the creation of a federal ORC law, noting that ORC gangs often operate across state lines. The study further reveals that the country’s largest cities are the most frequent targets of ORC. The top locations are 1) New York City; 2) Los Angeles; 3) Miami; 4) Chicago and Houston, tied; 5) San Francisco/Oakland; 6) Atlanta; 7) Baltimore; 8) Orlando; 9) northern New Jersey, Washington, D.C., Philadelphia, and Arlington/Dallas/Fort Worth, tied; and 10) Fort Lauderdale and Seattle, tied.

Philadelphia Approves ‘Fair Workweek’ Bill The Philadelphia City Council recently approved a bill that will provide more predictability in the lives of retail, fastfood, and hotel workers, reported the Philadelphia Inquirer. The “Fair Workweek” legislation would require employers with more than 30 locations and 250 employees to give workers two weeks' advance notice of their schedules and offer “predictability pay” if schedules change after that. It also would require employers to offer available shifts to existing employees rather than hiring new ones, a move that could help bring part-time workers closer to full time. One possible threat to the law is a preemption bill under consideration in the Pennsylvania State Legislature that would stop cities from passing workplace laws. The Council also voted unanimously to raise to $15 the minimum

“Studies show the country’s largest cities are the most frequent targets of organized retail crime.” ing. Losses averaged $777,877 per $1 billion in sales, up 7 percent from last year’s previous record of $726,351. Retailers attributed the increase to the easy online sale of stolen goods, gift card fraud, shortage of staff in stores and demand for certain brand name items or specific products. In addition, a number of states have increased the threshold for a theft to be considered a felony, meaning criminals can steal a larger quantity of

continued next page

AVA N T I N O V E M B E R | D E C E M B E R 2 0 1 8

continued from page 64

the beginning of 2020 to the end of 2022, after hearing from franchisees about ﬁnancial concerns, reported the Watertown Daily News. The required improvements include self-ordering kiosks and systems that allow for more delivery orders. • Altria Group Inc. is in talks to

take a significant minority stake in ecigarette company Juul Labs Inc., a move that could give the Marlboro maker greater access to a rapidly growing segment of the nicotine market, reported the Wall Street Journal. •

California officially became the first state in the nation on December 5 to require homes built in 2020 and later be solar powered, reported the Orange County Register. • CVS is piloting a membership program in Boston called CarePass that in-

cludes free delivery on most prescriptions and online purchases, access to a pharmacist helpline, a 20 percent discount on all CVS-branded products and a monthly $10 coupon, reported CNBC. Membership costs $48 annually or $5 monthly. • Lil’ Drug Store

Products announced that Paul Rossberger, Vice President of Sales at LDSP, was honored by WAM Distributors with their Lifetime Achievement Award. Rossberger’s leadership helped WAM increase sales of health and beauty care items by 53 percent and outperform the channel growth by 7 percent over the past 5 years. • The Kellogg

Company is selling its Keebler, Famous Amos and other cookie brands, along with its fruit snacks businesses, to focus on its core divisions, reported CNBC. The company said it is focusing on its morning foods, snacks and frozen foods brands, which it will consolidate into one unit. Brands like Eggo waffles and Froot Loops comprise 80 percent of the company’s revenue. • A recent survey of U.S. consumers by fraud prevention ﬁrm IDology continued on page 69

continued from page 58 continued from previous page

wage for city workers and those employed by city contractors and subcontractors.

Wawa Pilots Catering Service In Philadelphia Pennsylvania-based convenience chain Wawa recently announced a catering service for customers in the Philadelphia area. Customers in specific sections of Philadelphia can now customize a menu of their favorite Wawa foods and beverages for events of all sizes with convenient delivery and set up from Wawa’s catering

associates, the company said. Wawa’s catering includes breakfast, lunch, and snacking options. It is currently available in Center City Philadelphia and its immediate surrounding neighborhoods, with more areas to come in the future.

Major Brands Vow To Cut All Plastic Waste Coca-Cola, Kellogg’s and Nestle are among 250 major brands pledging to cut all plastic waste from their operations—a move described by the United Nations as the most ambitious effort yet to fight plastic pollution, reported The Inde-

“Major companies have vowed to cut single-use plastics and invest in technology that allows all packaging to be recycled by 2015.” pendent. The commitment comes as public pressure mounts on manufacturers and retailers to reduce the avalanche of plastic packaging clogging landfills and choking the oceans. The companies have promised to eliminate all single-use plastics, and to invest in new technology so all packaging can be recycled by 2025. The initiative is continued on page 68

continued from page 67

the result of a partnership between The Ellen MacArthur Foundation and the United Nations Environment Program (UNEP).

Florida Gas Pump Credit Card Skimming On The Rise More credit card skimmers have been found on Florida gasoline pumps in 2018 than in 2017, reported the Orlando Sentinel. The Florida Department of Agriculture said it has found the theft devices at 689 stations, as station owners and law enforcement struggle to keep up with evolving technology and methods from the criminals who deploy them. In Cen-

tral Florida, inspectors have found skimmers at 31 gas stations in Orange, Seminole and Lake counties so far in 2018. It would have been impossible for consumers to detect hundreds of the skimmers found by state investigators because the devices were inserted inside pumps, the article states. The newest skimmers use remote technology that can send stolen credit or debit card numbers anywhere. Even gas pumps with high-security locks designed to stop skimmers were infiltrated. Consumers are being urged to check their credit and debit card balances frequently for bogus charges.

“e newest credit card skimmers use remote technology that can send stolen credit or debit card numbers anywhere.”

London Bans Fast Food Ads On Public Transport The mayor of London, England recently announced a ban on junk food ads across the city’s entire public transportation network, reported CNBC. Mayor Sadiq Khan said the ban would come into effect from February 25 in a bid to curb childhood obesity rates. Under the ban, products including sugary drinks, cheesecontinued next page

continued from page 66

found that 45 percent

write down their online passwords and 73 percent never change them. • Shipments of domestically brewed beer are down about 2.9 percent, but year-to-date volume sales at offpremise retailers are still basically flat, reported Brewbound, citing data from the Beer Institute. Additionally, volume sales at multi-outlet and convenience stores were down 0.3 percent yearto-date through the period ending November 4, according to market research firm IRI. • Alimen-

tation Couche-Tard has designated Norway as the laboratory for testing electric vehicle (EV) charging stations, reported CSNews continued on page 80

burgers, chocolate and salted nuts would not be permitted to be advertised. Restaurants and delivery services would only be able to place commercials in the network that promote their healthier products. The restrictions will apply to all transportation services operated by Transport for London (TfL), including the London Underground, Overground, London buses, TfL Rail, trams and river services.

Amazon Picks NYC & Virginia For New HQ Amazon.com Inc. plans to split its new headquarters and build offices for up to 25,000 people in New York City and

near Washington, D.C., reported Reuters. The new Washington metro region headquarters will be located in National Landing, in Arlington, Virginia, and the New York City headquarters will be located in the Long Island City neighborhood in Queens, across the East River from Midtown Manhattan and the United Nations. In addition, Nashville, Tennessee, will be home to what Amazon is calling an "Operations Center of Excellence," adding 5,000 corporate jobs. Amazon plans to spend $5 billion on the two new developments and expects to get more than $2 billion in tax credits and incentives, with plans to apply for more. Amazon’s move ends a frenzied yearlong bidding war among cities across North America.

SEI TESTING SCAN & PAY CHECKOUT SEI recently launched a pilot of its W.E. TAKE THE new mobile self-checkout feature, Scan & LEAD CONTEST Pay, which lets customers shop, scan, pay, SEI recently announced the winner for and go using the 7-Eleven app. The Scan its franchise giveaway contest, W.E. Take & Pay pilot launched in 14 7-Eleven stores the Lead, targeted exclusively to women in the Dallas area on October 5, giving entrepreneurs. Sandra Bivins Owsley of customers a convenient checkout alterna- Jacksonville, Florida, will receive a waiver tive to waiting in a line. Scan & Pay works for her franchise fee, valued at up to on both Android and iOS devices and is $190,000, to any 7-Eleven convenience available for all 7-Eleven merchandise store available for franchise ownerexcluding items that require ship in the continental United cashier assistance—hot States. SEI opened the con“The Scan & foods, financial services test in March to all eligible Pay pilot launched women across the U.S. and age-verified products in 14 7-Eleven stores in interested in becoming the Dallas area, giving such as alcohol, tobacco customers a convenient an independent business and lottery tickets. checkout alternative to owner. Applicants particwaiting in a line.” ipated in a series of competitive rounds, including interviews, credit evaluation, leadership assessment, preparing a business plan, in-store experience, and more. Four semifinalists were flown to Irving, Texas, to interview with SEI’s executive team, where Owsley was named the This new frictionless shopping expecontest winner. Semi-finalists listed are rience is integrated into the 7Rewards loyTanya Burnett of Philadelphia, Pennsylalty program, allowing customers to vania; Michelle Baros of Denver, Colautomatically earn 7Rewards points upon orado; and Seema Nibber of Sacramento, purchase, redeem points to purchase apCalifornia. Since all candidates were explicable products, as well as receive all intremely qualified, SEI plans to provide store promotions. SEI said it is the first c-store chain to develop proprietary technology for a full frictionless payment experience from start to finish. The company plans to expand the service to additional cities in 2019. 7-Eleven first tested mobile self-checkout at its Store Support Center store, where employees tried the feature prior to this multi-store launch.

additional support to the other three finalists should they decide to franchise with the company.

RENEW & CUSTOMERS PLANT 100,000 TREES In one year, 7-Eleven, Inc. and its customers have planted 100,000 trees and offset 32,448 metric tons in carbon emissions through the RENEW reduced emissions fuel program. That is the equivalent of powering 1.6 million homes for a whole day with no environmental impact. The RENEW program partners with the Arbor Day Foundation to ensure trees are planted strategically in some of the areas that need them most, including reforestation projects for national parks impacted by forest fires. The RENEW reduced emissions program is a collaboration between 7-Eleven and GreenPrint, a company that promotes sustainability through the retail gasoline, fleet and consumer product industries. A total of 934 7-Eleven locations offer the RENEW program in Northern California, Portland, Oregon, Seattle, Washington, Madison and Milwaukee, Wisconsin and Vancouver, B.C.

HUNGERITHM PROMO For the second year in a row, SEI and Snickers brought back “Hungerithm,” a tool that monitors the mood of the internet. When consumers dropped hints of hunger online, the coupon discount of Snickers increased at participating U.S. 7-Eleven stores in real time. To track the mood of the internet, as well as lock in the price of a Snickers bar continued on page 72

AVANTI N O V E M B E R | D E C E M B E R 2 0 1 8

continued from page 71

“Hungerithm increases Snicker coupon values when hunger is mentioned on social media.” that can be redeemed in the form of a coupon at participating 7-Eleven stores, fans were encouraged to visit www.Hungerithm.com. In-store signage explained the program to shoppers. The “Hungerithm” promotion began on November 7 and ended on December 31, 2018. Originally piloted in Australian 7Eleven stores to critical acclaim, “Hungerithm” was developed by Clemenger BBDO Melbourne under the “You're Not You When You're Hungry” campaign. The algorithm checks social media posts in real time against a list of 3,000+ commonly used words and phrases to determine sentiment and capture a snapshot of how people are feeling. It even understands slang and sarcasm. As 'hanger' goes up, the coupon value goes up, too.

SEI CANNED WINES SEI recently launched a range of canned wines called Roamer, as it aims to offer convenience for consumers on the go, reported FoodBev.com. The rosé variant is said to be a dry, fruit-driven wine with hints of strawberry and “SEI has intro- raspberry. Meanduced a line of while, the chardoncanned wines nay has an oak with for consumers influence, tropical and citrus on the go.” 72

reported Nikkei Asian Review. The pilot store opened in December inside a building in Tokyo where an NEC group fruits that add to its bright acidity. According to research from Nielsen, U.S. canned company has offices. It is a small store with wine sales surged 43 percent from June just over 10 percent of the floor space of a 2017 to June 2018. Tim Cogil, 7-Eleven typical Seven-Eleven location, and is senior director of private brands, said: meant for NEC group employees who “The name, Roamer, reflects how we have preregistered to shop there. To enter, shoppers must either wave think people will enjoy this new wine— their employee identification cards in while they’re out and attending concerts, front of a reader or be authenticated by picnics or spending a day at the beach. facial recognition. To check out, they WILDLIFE CONSERVATION scan the bar codes for items they want to buy and identify themselves via WITH DALLAS ZOO either facial authentication To celebrate Wildlife Conor with their employee servation Day, SEI and pop“Seven-Eleven ID at a special termiular Australian chocolate Japan has teamed with nal. Actual payment brand Yowie Chocolate NEC to open a cashierinvolves deductions teamed up with the Dallas less convenience store from their salary, Zoo to deliver sweet treats that uses facial recogeliminating the time for the animals and visitors nition to authenticate spent paying with alike. On December 4, the shoppers.” cash, credit card or eannual Wildlife Conservation money. Seven-Eleven will Day, Yowie delivered enrichment consider introducing the apitems for several of the Zoo’s animals, which encouraged the animals’ natural cu- proach at stores that are limited to shopriosity and increased engagement in their pers from offices and factories. environment. Visitors to the Zoo on December 1 had the opportunity to receive a free Yowie premium nut-free chocolate with a limited edition wild animal figurine inside. Yowie strives to bring attention to the plight of wild animals while connecting kids to their mission of preservation through a premium milk chocolate treat.

SEJ TESTING FACIAL RECOGNITION FOR CASHIERLESS STORES Seven-Eleven Japan has teamed with NEC to open a cashierless convenience store that uses facial recognition to authenticate shoppers and check them out,

AVA N T I N O V E M B E R | D E C E M B E R 2 0 1 8

SOUTH KOREA UNMANNED LOCKER SERVICE 7-Eleven South Korea recently launched an unmanned locker service called Seven Locker at two stores in Seoul, reported Inside Retail Asia. The initiative is part of the company’s effort to diversify operations and generate more profits for its convenience stores. The trial operations started at two stores in Seoul’s Hongdae and Jongno districts, with another eight on track to better gauge customer response and growth potential. If the test goes well, the plan calls for 100 lockers to be placed continued on page 74

continued from page 72

at 7-Eleven stores across South Korea in the first half of 2019, with the service to be extended to all key stores going forward. The lockers will be set up near tourist attractions and entertainment districts where there is demand for such services among locals and foreigners alike.

SUPPORT FOR CALIFORNIA WILDFIRE RELIEF In response to the recent California wildfires, which resulted in the tragic loss of lives, homes and businesses, SEI raised money to support American Red Cross relief efforts by inviting customers to add $1 to their purchase at participating U.S. stores or donate online at https://www.redcross.org/donate/cm/7eleven-pub.html/. Customers were able to donate through December 15. Through its 7-Eleven Cares Foundation, SEI joined the American Red Cross Disaster Responder program earlier this year. Members of the program include leading corporations that donate a minimum of “7-Eeven South $250,000 annuKorea has plans for ally to provide 100 locker service the highest level locations in the first of support to half of 2019.” American Red Cross preparedness and relief efforts. In the past five years (2012-2017), 7Eleven has provided more than $700,000 in domestic and international support, helping the Red Cross respond to disasters, SEI said in a released staement. The company has also provided emergency product donations.

game consoles from Microsoft and 100 $25 7-Eleven gift cards.

REESE'S LOYALTY PROGRAM SEI has teamed with The Hershey Co. to create the “Reese's Frequency Club,” which functions as an extension of the 7Rewards loyalty program and allows shoppers to earn a free Reese's SKU after the sixth eligible brand purchase, reported Convenience Store News. The loyalty program is touted in-store through aisle violators, encouraging shoppers to download the 7Eleven mobile app and “rack up Reese's,” while the mobile app sports a depiction of a Reeses peanut butter cup surrounded by six bars for members to track their progress. Twitter and Facebook posts on behalf of 7Eleven also support the program.

EXCLUSIVE FINI TORNADOES SEI has teamed with Fini Sweets to launch an exclusive Fini Tornadoes candy SKU supported by a contest encouraging shoppers to pose near the brand's POP displays, reported Shopper Marketing. The exclusive Fini Tornadoes candy recently rolled out in 7-Elevenbranded, 4.5-ounce packages. The candy is described as fizzy and chewy and is made up of orange, red and green colors similar to the retailer’s logo. In select locations, the exclusive SKU is stocked via account-specific floorstands that invite shoppers to “report where you spotted these tornadoes” to enter the contest awarding a total of 10 Xbox One S video

AVA N T I N O V E M B E R | D E C E M B E R 2 0 1 8

BRING YOUR OWN CUP DAY’ SEI celebrated Black Friday with a Slurpee fan favorite—“Bring Your Own Cup” (BYOC) Day. Slurpee drink fans were invited to fill any “cup”—or containers that could be used as cups—with Slurpee at participating 7-Eleven stores Friday, November 23, from 11 a.m. to 7 p.m. All cups had to be leak-proof, safe, sanitary and fit upright within the in-store BYOC display cutout. The cost to fill any “cup” of choice, regardless of size, was $1.49, the price of an average medium Slurpee drink. In addition to BYOC Day, 7Rewards customer loyalty platform members were able to enjoy a slice of pizza for 50 cents at participating stores each day from Black Friday through Cyber Monday (November 26). The pizza offer was only available to 7Rewards members who scanned their 7-Eleven app, used their 7-Eleven physical card or key chain fob, or entered their Alt-ID (phone number) at purchase.

“In addition to BYOC Day, 7Rewards customer loyalty platform members were able to enjoy a slice of pizza for 50 cents at participating stores.”

continued from previous page

FREE COFFEE 7-Eleven stores across the country gave away free coffee on October 23, the day of the record $1.6 billion Mega Millions jackpot drawing, reported USA Today. Members of the 7Rewards loyalty program received a free medium coffee or tea by scanning a coupon on the smartphone app, and a ticket purchase was not needed to get the freebie. The offer was available until midnight in each time zone and at participating stores nationwide.

There was a limit of one free cup per customer while supplies lasted.

NATIONAL PICKLE DAY LIMITED-TIME OFFER To celebrate National Pickle Day on November 14, SEI offered Van Holten's Pickle Rick product through November 19 at 2,800 locations, reported CSNews Online. Pickle Rick Pickle-In-A-Pouch is a

jumbo dill pickle individually wrapped and featuring the popular character from Adult Swim's â&#x20AC;&#x153;Rick and Mortyâ&#x20AC;? on the front of the package. Pickle Rick became an instant culture icon when he appeared on season three of the half-hour animated series. Waterloobased Van Holten's is known for its Pickle-In-APouch and other products like Pickle Cutz, Pickleback Mixer and Pickle-Ice.

New Snickers Dark Ice Cream Bar Introducing the Snickers Dark Ice Cream Bar, a new and exciting flavor from the Snickers Snickers Dark Ice Cream Bar is the Snickers brand’s first new product ever. Ice Cream brand for your customers to enjoy. This is the first time the Snickers Ice Cream brand has launched a new flavor. The Snickers Dark Ice Cream Bar is chocolate peanut butter ice cream, topped with signature Snickers peanuts and caramel, and covered in dark chocolate. This new innovation will be big, by both aligning with category trends of expected growth in dark chocolate and chocolate-peanut butter ice cream and being highly incremental to sales of the Snickers Ice Cream Bar. The Snickers Dark Ice Cream Bar is available in a full size impulse ice cream bar and available now from your distributor along with the Snickers Ice Cream Bar. In 1991, the Snickers Ice Cream Bar was introduced, bringing the iconic Snickers Chocolate Bar to Ice Cream. The Snickers Ice Cream bar continues to be the #1 Ice Cream novelty in convenience, outselling all competition.

Mars Launches Twix Triple Chocolate Ice Cream Bar

are packed with the protein you need without all the sugar and calories you don’t. With 20g of protein, 0g of sugar, 90 calories, Premier Protein Clear drinks can be enjoyed at any time of day, allowing you to get the protein you need to be satisfied and hydrated on the go. Available in thirstquenching flavors—Tropical Punch and Orange Mango—these refreshing drinks will help you stay on track with your goals. Premier Protein drinks and Premier Protein 14 ounce Shakes: shakes for your healthconscious customers. Premier Protein’s commitment to taste-plus best-in-class nutritionals helps people make healthy choices they can stick with, no matter where they are on their health journey. Now available in new 14 ounce resealable bottles, Premier Protein makes it easy to take convenient nutrition on the go. With 30g of protein, 2 g of sugar, and 160 calories, Premier Protein shakes are packed with protein, not sugar and calories. Available in Chocolate and Vanilla flavors, Premier Protein shakes have been judged superior in a national triple taste conducted by an American Masters of Taste Chef Panel. Enjoy as a satisfying snack, a base in smoothies, or a creamer for your coffee.

The launch of Twix Triple Chocolate Ice Cream Bar is both the first time the Twix Ice Cream brand has launched a new flavor and the first time that a Twix flavor is launching in three locations—the candy aisle, the front end, and the freezer. The Twix Triple Chocolate Ice Cream Bar is With scheduled service visits, Cintas will help you keep every corner chocolate ice cream topped with of your facility ready by restocking your restroom supplies, and delivercaramel and chocolate cookie ing fresh mats, mops and towels. They even keep you at your profesballs, and covered in a chocolatey coating to deliver that triple chococontinued on page 78 Twix Triple Chocolate late goodness. Ice Cream Bar will deliver strong The Twix brand ice cream novelty sales. continues to deliver strong sales in convenience and will continue to grow with exciting innovation. The Twix Triple Chocolate Bar is available in a full size imAmerica’s favorite chocolate chip cookie brand is expanding into munchpulse ice cream bar, available now from your distribing with new Chips Ahoy! Thins Bites Dipped. Sweeten your sales with one utor along with the Twix Ice Cream Bar. The Twix Ice of the most exciting innovations from one of the most beloved cookie Cream bar continues to be a Top Ten Ice Cream novpower brands among convenience shoppers. Thin and crispy bite-sized elty item in convenience.

Save Time & Money With Cintas

EXCITING NEW CHIPS AHOY! THINS BITES DIPPED

Premier Protein Shakes & Clear Protein Drinks Premier Protein Clear Protein Drinks: Light and refreshing Premier Protein Clear Protein Drinks

Chips Ahoy! Cookies paired with a deliciously smooth coating of fudge, the latest from Mondelez International, has seen 77 percent of consumers that try it wanting to buy it.

Make sure you’re ready for the rush. Get an 80 percent discount on your first box of Chips Ahoy! Thins Bites Dipped (1.7 oz.), from 12/31/18 to 01/29/19. Stock up now on the dipped treat that’s poised to boost sales!

Receive an 80 percent discount on your first box of Chips Ahoy! Thins Bites Dipped until January 29.

AVANTI N O V E M B E R | D E C E M B E R 2 0 1 8

continued from page 77

sional best with deep-cleaned tile restrooms. It all adds up to streamlining your day, saving time and money and impressing your customers. Products and services include: • Mat Service • Mop Service • Towel Service • Microfiber Service • Restroom Supplies • Signature Series Restroom Keep your store at its professional best Dispensers with Cintas service visits. • Cintas UltraClean Restroom Cleaning

To find out more about Cintas services call the National Service Team at 800.795.7368 or email NationalServiceTeam@cintas.com.

Crunchmaster Mini Crisps For On-The-Go Snacking Crunchmaster Single-Serve Mini Crisps deliver the energy and wellness that 61 percent of U.S. adults are actively seeking. Gluten free, cholesterol free and trans fat free—plus low in saturated fat and sugar— Crunchmaster Mini Crisps deliver a flavor-filled kick-start for 7Eleven’s away-from-home customers. They are easy and convenient to stow in a purse or bag, or pop in your mouth while you’re on the road. They’re tasty, too. Crunchmaster Mini Crisps use only pure, GMO free, California grown rice and U.S. grown sesame seeds. Their quinoa seeds are sourced from the Andean region in Order Crunchmaster South America and their flax seeds are Single-Serve Mini Crisps by February 28 and receive grown in the plains of Canada. By focus50 percent off via bill-back. ing on wholesome ingredients from trusted sources, they are able to craft a cracker to fit every healthy lifestyle. Now is the perfect time to try: Purchase Crunchmaster Single-Serve Mini Crisps by February 28 and receive 50 percent off via bill-back.

New Bear Naked Chunky Almond Butter Bars Bear Naked has announced a substantial, deliciously-filling bar to energize your health and wellness snack set—new Almond Butter Bars.

AVA N T I N O V E M B E R | D E C E M B E R 2 0 1 8

Available in Chocolate Chip Banana and Dark Chocolate Mocha flavors, Almond Butter Bars are made with almond butter and jampacked with visible chunks of delicious ingredients with great Bear Naked Chunky Almond Butter Bars texture and the unique flavors deliver a heartier, chunkier, hunger-satisfying snacking experience. consumers seek. Goodness You Can Taste: With protein from nuts and nut butters as the first ingredient, Bear Naked Almond Butter Bars deliver 9-10 grams of protein and 11 or less grams of sugar per bar. Plus, your customers can trust these bars are Non-GMO Project verified, gluten free and made with simple ingredients including Fair Trade Chocolate. In Sync with Millennials: They are a joyful, active generation of onthe-go constant snackers who seek out brands that share their ideals and tantalize their taste buds. These new portable bars have strong, clean credentials and meet millennials’ lifestyles and values with a filling, tasty bar made from wholesome ingredients. Mission Accomplished: In keeping with the Bear Naked mission, the company is committed to leading the way by creating wildly delicious, clean label, energy-dense foods in convenient sizes that active consumers really go for. Be ready with the flavorful bar your customers will crave, and see for yourself why now is a good time to partner with Kellogg’s.

Trident Brings New Vibes With Peppermint Wave New Peppermint Wave is poised to expand the already successful line of Trident Vibes gum and refresh your sales in the gum aisle. With this invigorating new flavor addition, the good Vibes from Trident are only getting better. Beginning with a Get an 80 percent crisp crystal coating, Trident Vibes gum gives way discount on your first box of Trident Vibes to smooth chewing experience with pops of flavor Peppermint Wave. that provide a burst of something new every time you chew. And now, Vibes’ new extra-peppy peppermint flavor is beating the competition on overall liking and long-lasting flavor. It’s exceeding expectations for 75 percent of consumers and scoring outstanding in Bases II testing. Order now and get an 80 percent discount on your first box of Trident Vibes Peppermint Wave 40 piece bottles, from 01/01/19 – 02/15/19. Your shoppers won’t want to miss the latest and most refreshing thing to burst into the gum aisle. continued on page 80

*Paid via billback.

AVANTI N O V E M B E R | D E C E M B E R 2 0 1 8

continued from page 78

Air Dried Stryve Biltong Packs On The Flavor

continued from page 69

Stryve Biltong offers a truly clean snacking experience for Stryve Biltong is air-dried and has 90 percent less carbs. today’s on-the-go consumer. With 50 percent more protein and 90 percent less carbs than traditional jerky, Biltong is more than just an alternative meat snack, it’s a good-for-you snack powerhouse. Stryve’s air-dried beef Biltong has no artificial ingredients, colorings or preservatives and is free from nitrates, gluten and MSG. Why settle for jerky, when you can give your customers what they crave—a delicious, portable and satiating snack they can feel good about.

Smirnoff Unveils New Spiked Sparkling Seltzer Items Smirnoff has added three new items to their fast-selling Spiked Sparkling Seltzer FMB line. FMBs are one of the fastest growing segments at 7-Eleven: +11 percent the last 13 weeks through 11/25/2018. Furthermore, Hard Seltzers are growing at an exponential rate, almost three times the size it was last year.

Smirnoff Raspberry Rosé Seltzer 6 Pack— Authorized nationally this spring! continued next page

TOP-SELLING LONG ASS CABLES

AVA N T I N O V E M B E R | D E C E M B E R 2 0 1 8

company said it needs to win in cities to achieve its goal of opening another 13,000 U.S. stores on top of the existing 15,000. • Michigan recently be-

came the first Midwestern state to legalize recreational marijuana, and the 10th state overall to do so, reported USA Today. Voters approved Proposal 1 during the November mid-term elections, which creates a system to

regulate, tax and sell recreational marijuana to adults in the state. • Popular fastfood chain Chick-fil-A has expanded its partnership with DoorDash to provide delivery to most of its national footprint, about 1,100 stores, reported The Takeout. • Pizza Hut has

joined forces with Toyota to develop the one-of-a-kind, zero-emission Tundra PIE Pro—a mobile pizza factory with the ability to

percent of adults (34 million) were current (“every day” or “some day”) cigarette smokers in 2017—down from 15.5 in 2016—a 67 percent decline since 1965, ac-

The eye-catching shipper draws the customer in, and the 10ft long, high quality braided cables do the rest. Lightning (Apple), Micro (Android) and Type-C (Android) cables cover all the smartphones and tablets on the market right now. They are a must-have for all customers.

Carried by both McLane and Core-Mark, these shippers are in-stock and ready to ship. McLane UIN 106067 and Core-Mark Item #461019.

ning to open more of its small-format DGX stores as it seeks to attract urban, millennial shoppers, reported Bloomberg. The

deliver oven-hot pizza wherever it goes. The fullsize pizza-making truck was introduced at Toyota's 2018 Specialty Equipment Market Association (SEMA) Show presentation. • An estimated 14

Thanks to all the 7-Eleven franchisees and SEI support, the three cables in the Long Ass Cable floor display are currently ranked or have been the #1, #3, and #4 top selling items in the entire electronics category in 7-Eleven stores. If you don’t have a fresh shipper in your store right now, you are missing out on some serious sales. Order one today and be blown away by the results. Stores sell an average of 4.2 cables per day or an additional $300 in sales per week.

This shipper is approved by 7-Eleven corporate and the cables are of the highest quality. The Apple Lightning cables are Apple MFi Certified. The cable quality the customer gets for $9.99 is second to none.

Online. Couche-Tard installed cameras at a number of sites with EV charging stations to learn what customers are doing while they are charging their vehicles, and now the retailer is taking a close look at the results. • Discount chain Dollar general is plan-

cording to new data published by the Centers for Disease Control and Prevention. About 10 percent of young adults aged 18 to 24 years smoked cigarettes in 2017, down from 13 percent in 2016. • New research from Mintel reveals that U.S. 7-Eleven stores make an additional $300 in sales per week with Long Ass Cables.

chocolate buyers would like to see more chocolate in mini-sized bars or bites (49 continued net page

continued from previous page

Rosé wine is HOT—growing 53 percent versus the total wine category at +4 percent. A light, crisp, and bubbly blend of raspberry and rosé flavor at only 90 calories and zero sugar.

Smirnoff Seltzer Variety 12 Pack— New to 7-Eleven!

Introducing Listerine Go! Tabs Listerine Go! Tabs provide a revolutionary way to get a whole-mouth clean and fresh feeling, anytime, anywhere. Eating and drinking increase bad breath bacteria and odors in your Listerine Go! Tabs provide a whole mouth. Listerine Go! Tabs transform into a liquid to mouth clean anytime, anywhere. help eliminate bad breath odors, leaving your mouth feeling moisturized and as clean as brushing and rinsing at home.

Highest velocity Smirnoff Seltzer pack and 12 packs are the fastest growing pack size in the FMB category (+484 percent). One-in-four U.S. shoppers are millennials, and 52 percent of them prefer to buy large pack sizes. The Smirnoff Seltzer Variety 12pk is perfect for your everyday occasion with 90 calories per can and zero sugar. The new Smirnoff Seltzer Variety 12pk will include two new flavors—Raspberry Rosé, the fastest growing Seltzer flavor and Piña Colada, Smirnoff Seltzer Variety 12 pack which will be the first of its kind in the includes two new flavors. Seltzer category.

Smirnoff 4 Ways To Rosé Seltzer 12 Pack— New to the World! Rosés are hot! Starting in February 2019, Smirnoff is launching their Smirnoff Spiked Seltzer 4 Ways to Rosé 12pk. The flavors will consist of Raspberry Rosé, which was the fastest selling flavored Seltzer brand nationally, and new flavors of Pink Apple Rosé, White Peach Rosé, and Strawberry Rosé.

Grow your flavored malt beverage sales with Smirnoff’s new Spiked Sparkling Seltzer items.

Forged Protein Bar Packs Big Energy & Great Taste Forged Protein Bar is a hard-working energy bar that keeps you energized throughout the day while providing top notch taste. Available in two flavors: Milk Chocolate and Peanut Butter. Each bar is made with Whole Grain Quaker Oats, contains 12 grams of protein, is an excellent source of fiber, and contains less sugar than the leading energy bar. SRP is $1.99 and first ship date is February 4, 2019. Energize your energy bar sales with new Forged Protein Bars.

New Torie & Howard Organic Candy New Chewie Fruitie candies from Torie & Howard are USDA Organic, Kosher Certified, Non-GMO and free from: dairy, gluten, soy, corn syrup, artificial flavors and colors. Chewie Fruities are available in original Chewie Frutie Pouches or stick packs, and sophisticated dual profile flavors: Italian Tarocco Blood Orange & Honey, California Pomegranate & Sweet Freestone Nectarine and Meyer Lemon & Raspberry, Sour Apple, Sour Cherry, Sour Berry, and Assorted Flavors. Packed in 2.1-ounce stick packs that ship 18 to a display case and 216 to a master case, Chewie Fruities have an SRP of $1.79. Gusseted 4ounce peg packs that ship 6 to a display case and 48 to a master case have an SRP of $3.49. The company is also offering a new 54-count countertop display of 2.1-ounce stick packs. All Torie & Howard candy is made in the USA and one serving provides the daily requirement of Vitamin C. Available through McLane, CoreMark and direct from the company. Contact New Chewie Torie & Howard at tandh@ Fruitie candies appeal to the healthy and organic shopper. torieandhoward.com. continued from previous page

percent). Fun-sized varieties could be just what consumers are looking for to help them cut back on chocolate consumption as three quarters (75 percent) say that single-serving or bite-sized chocolate is a good way to do so. • Walmart may be bringing robots to its kitchens, as it is currently testing new technology that essentially acts as a fry cook, reported Progressive Grocer. The new robot, named Flippy, reportedly can grill 150 hamburger patties per hour. • The Kroger Co. has started using unmanned vehicles for online grocery deliveries, reported Supermarket News. • Dollar stores are selling $10 billion more in groceries than Whole Foods, according to a report by the Institute for Local Self-Reliance, a nonproﬁt organization. AVANTI N O V E M B E R | D E C E M B E R 2 0 1 8

foa events FOA Of Greater LA/ San Diego FOA Annual Trade Show

Texas FOA Trade Show

Pechanga Resort and Casino Temecula, California January 23, 2019 Phone: 619-726-9016

Four Points by Sheraton Dallas Fort Worth Airport North Coppell, Texas April 23, 2019 Phone: 214-208-0992

Eastern Virginia FOA Annual Golf Tournament

Texas FOA Golf Tournament

Sleepy Hole Golf Club Suffolk, Virginia April 15, 2019 Phone: 757-247-6152

Cowboys Golf Club Grapevine, Texas April 24, 2019 Phone: 817-797-4911

Eastern Virginia FOA Annual Trade Show

San Francisco/ Monterey Bay FOA Trade Show

Wyndham Garden Norfolk Downtown Norfolk, Virginia April 16, 2019 Phone: 757-247-6152

FOA Of Southern Nevada Trade Show Alexis Park Resort Las Vegas, Nevada April 17, 2019 Phone: 702-646-8383

Paradise Ballrooms Fremont, California April 24, 2019 Phone: 510-693-1492

National Coalition Affiliate Meeting Sheraton Four Points DFW Coppell, Texas February 18-19, 2019

National Coalition Board of Directors Meeting Sheraton Four Points DFW Coppell, Texas February 20-21, 2019

National Coalition Board of Directors Meeting The Westin Alexandria Alexandria, Virginia May 17-18, 2019

National Coalition Board of Directors Meeting

Delaware Valley FOA Trade Show

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

Caesars Palace Atlantic City Atlantic City, New Jersey April 25, 2019 Phone: 215-771-6178

NCASEF 44th Annual Convention & Trade Show

FOA Of Southern Nevada Golf Tournament Rhodes Ranch Golf Club Las Vegas, Nevada April 18, 2019 Phone: 702-646-8383

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

Advertiserâ&#x20AC;&#x2122;s Index

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

Anheuser Busch ...............10 Aon Risk Services .............29 Blue Bunny.......................17 Coca-Cola..................Cover 2 Cookies United .................35 Crunchmaster Crackers ....76 Dean Foods ......................19 Diageo Guinness ................7 82

Dr Pepper Snapple Group ...6 Florida One Wholesale.....75 Glanbia.............................73 Heritage Parts ..................70 Hormel .............................27 Kellogg's.....................12-13 Kretek ................52, Cover 4 Logic Ecig....................42-43

AVA N T I N O V E M B E R | D E C E M B E R 2 0 1 8

Mars Ice Cream.................15 Maruchan.........................25 McLane.............................36 Miller ........................Cover 3 Mondelez .........................21 Morinaga..........................40 Pepsi Quaker.....57,67,68,69 Perfetti Van Mele .............32

Premier Nutrition.............65 PWM ................................70 Reynolds American..........57 Seneca........................30-31 Simply Orange................8-9 Swedish Match..............3,46 Swisher International ...5,45 Tell Industries...................48

Think Thin.........................59 Torie&Howard..................22 Vixxo.................................38 Whitewave Foods...............4 Windsor............................39 Yowie................................23