Avanti September/October 2022

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

(SOURCE: IRI May 2022)

The Bud Light Seltzer® brand has strength particularly in Singles; Bud Light Seltzer® & Bud Light™ Platinum™ Seltzer combined had a 16.5 share of Seltzer Singles in 7-Eleven in FY 2021 and YTD are up to 17.6 share.

(SOURCE: IRI May 2022)

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

(SOURCE: IRI May 2022)

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

(SOURCE: IRI May 2022)

REASONS TO BELIEVE:

High ALC./VOL. seltzer is growing 11% YOY.

(SOURCE: IRI TUS MULC Dec 2021 L52W)

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

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

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

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

By Sukhi Sandhu, NCASEF Chairman

By Joe Rossi, NCASEF Executive Vice Chair

By

By Ali Haider, Michigan FOA President

AVANTI is published by the National Coalition of Associations of 7-Eleven Franchisees for all independent franchisees, store managers and interested parties. National Coalition offices are located at 3645 Mitchell Road, Suite B, Ceres, CA 95307. For membership information, call 855-444-7711 or e-mail nationaloffice@ncasef.com. The views and opinions expressed in the articles and columns published in AVANTI Magazine are those of the authors and do not necessarily reflect the official policy or position of the National Coalition of Associations of 7-Eleven Franchisees, its officers or its Board of Directors.

Member News

7-Eleven Leads Top 100 C-Store Chains List

7-Eleven is once again No. 1 on the Convenience Store News Top 100 list— which ranks the largest convenience store chains by store count—with 12,702 stores in the United States. Alimentation Couche-Tard Inc. is in the No. 2 spot with a total of 5,714 stores. Both retail ers have held these spots since 2015, with 7-Eleven’s crown dating back even fur ther. Casey’s General Stores Inc. is No. 3 with a total of 2,448 stores.

According to Convenience Store News, Casey’s network was boosted by three transactions in its 2022 fiscal year: the acquisition of Buchanan Energy and its Bucky’s Convenience Stores; a $39-mil lion agreement with Couche-Tard for nearly 50 locations in the Oklahoma City market; and a $220-million pact with Pi lot Co. for 40 locations that strengthened its position in Tennessee and Kentucky. All told, the top 10 account for a com

bined 28,339 stores of the total industry’s 148,026 stores, or 19.1 percent. Broken down even further, the top three alone account for a combined 20,864 stores, or 14 percent.

SEI Turns To Tech To Improve Daily Operations

SEI has launched a search for artifi cial intelligence- and augmented reali ty-powered solutions to help simplify its store operations and improve the cus tomer experience in its 13,000 stores in the U.S. and Canada, reported C-Store Dive. Citing an email announcement made by SEI, the publication stated the company has tapped True, a “retail and consumer investment and innovation firm,” to help with its search for technol ogy partners that can help it “save time and reduce task load.”

Simplifying store operations means al lowing store associates to make decisions more quickly and easily, SEI said. This could be done through solutions that help with product assortment and place ment, inventory tracking and visibility, and cutting down on food waste. SEI is also seeking a solution that can make daily staff tasks—including foodservice

continued on page 14

The National Coalition Office

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

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

NATIONAL COALITION OF ASSOCIATIONS OF 7-ELEVEN FRANCHISEES

NATIONAL OFFICERS & STAFF

Sukhi Sandhu

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

Joe Rossi

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

Rehan Hashmi

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

Teeto Shirajee

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

Nick Bhullar

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

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

Shawn Howard

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

Eric H. Karp, Esq. GENERAL COUNSEL 617-423-7250 • ekarp@wkwrlaw.com

John Riggio

MEETING/TRADE SHOW COORDINATOR 262-394-5518 • johnr@jrplanners.com

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

April J. Key GRAPHIC DESIGNER lirpayek@gmail.com

The Voice of 7-Eleven Franchisees September/October 2022 ©2022 National Coalition of Associations of 7-Eleven Franchisees

prepping, customer support, inventory and more—more efficient.

FTC Investigating

Visa & Mastercard

The Federal Trade Commission is in vestigating whether Visa and Mastercard’s security tokens restrict debit-card routing competition on online payments, reported the Wall Street Journal. The FTC for the past few years has already been probing whether Visa and Mastercard block merchants from routing payments over other debit-card net works. The networks acknowledged an FTC probe in regulatory filings in recent years.

In recent months, the FTC expanded its fo cus to routing challenges that stem from the networks’ security tokens. It couldn’t be de termined if the investigation is a new probe or part of the previous one. A Justice De partment investigation on whether Visa has unlawfully maintained a dominant market share in debit cards is ongoing.

Visa and Mastercard have pushed for widespread tokenization in recent years, noting that the tokens help protect the cards from fraud. The FTC is looking into wheth er Visa and Mastercard have been limiting the information they send when they enable an online payment to go over a different network. That alleged practice, according to merchants, increases the chances that the

card’s issuing bank will reject the transac tion when it is handled by a different net work. The FTC is also looking into whether Visa and Mastercard are restricting routing choice after shoppers store their debit-card information on merchants’ websites or apps, or on pay tab buttons. Tokens are often used in these cases.

Seven & I Raises Profit Forecast On Strong U.S Gas Sales

Seven & I Holdings recently raised its fullyear profit forecast as the weakening yen in creased the value of earnings from its North American convenience operations, reported

The of In is H

7-Eleven Franchisee Insurance Program

Reuters. The company lifted its operating income estimate to 477 billion yen ($3.30 billion) in the year ending February 2023, from a previous figure of 455 billion yen ($3.148 billion). The company cited strong fuel sales at its Speedway stores in North America as the reason for the revision, as well as a recovery to pre-pandemic levels at existing Seven-Eleven locations in Japan. The yen depreciated rapidly in August and September, crossing 145 to the U.S. dollar

Member News

for the first time in 24 years.

Seven & I said it now expects the yen to trade at 131 to the dollar for the current fiscal year, versus 127 previously.

SEI & Franchisees Raise Funds

For Pakistan Flood Relief

In response to the humanitarian crisis caused by uncontrollable flash floods and landslides that occurred across Pakistan in early September and the devastating toll it has taken on Pakistani citizens, SEI and 7-Eleven franchisees teamed up to raise funds for the global Red Cross Red Cres

cent to provide life-saving support to those directly impacted. On September 7, SEI launched a microsite to collect individu al donations from franchisees to directly benefit the Red Cross Red Crescent Pa kistan Monsoons Flood Relief fund. SEI also pledged to contribute up to $100,000 in matching individual donations from all franchisees

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“Seven & I Holdings recently raised its fullyear profit forecast, citing strong fuel sales at its Speedway stores as the reason.”

Change Kids’ Health. Change the Future.

Yeira was born with an extremely rare, incurable gastrointestinal disease that will require advanced hospital care for the rest of her life. Without daily treatment at her local children’s hospital, life-threatening fluids could seep into her organs. Though Yeira’s continued care within the hospital walls, she enjoys a world of possibility with her on-site school, playrooms and therapy dogs.

Thanks to the support of donors like you, Yeira’s life spent at her local children’s hospital is full of wonder and possibility.

Change Kids’ Health. Change The Future.

BY CHILDREN’S MIRACLE NETWORK HOSPITALS

When we positively change the health of even one child, we create a ripple effect felt in our neighborhoods for years to come. When we ensure our children can lead healthy, fulfilling lives, we foster the inventors, artists, leaders, and families of tomorrow.

possible at the local level. When you donate through NCASEF or your local FOA, or directly to CMN Hospitals via our website at https://donate. childrensmiraclenetworkhospitals.org, the donation goes to your local member hospital.

Your donations allow each hospital to be flexible to address the most urgent needs in your community, while also preparing and planning for tomorrow. With your support, we can change kids’ health to change the future.

Children’s hospitals are on the frontlines when it comes to protecting the health of future generations. But they can’t do it alone. We are committed to serving our neighbors to meet their everyday needs. So together, we can build a better tomorrow.

Children’s Miracle Network Hospitals (CMN Hospitals) is proud to be the National Coalition of Associations of 7-Eleven Franchisees’ charity of choice. NCASEF and local FOAs are raising critical funds for children’s hospitals across the U.S. to help fulfill their most urgent needs. We make all this

Rounding Up In-Store For CMN Hospitals

During P8 (November 2, 2022-January 10, 2023) this year, customers can donate to the local children’s hospital through Children’s Miracle Network Hospitals at point-of-sale. The campaign is supported with signage in the P8 sales kits. The signage includes the local member hospital logo, so you, your associates, and customers know which local children’s hospital donations are supporting.

Customers are prompted to donate at the point-of-sale by rounding up their purchase to the nearest dollar amount. Research shows that customers prefer to round up over other donation options by a 2:1 ratio. Rounding up is easy for associates and customers!

Progress updates will be shared throughout the campaign to keep you and your associates informed and inspired to ask customers to round up or donate using the $1 barcode UPC.

Fundraising for the local hospital through Children’s Miracle Network

Hospitals can transform lives in your community AND its good for business.

• Eighty-eight percent of people who donate at checkout say their opinion of the business improves or stays the same when asked to donate.

• By a 2:1 ratio, people prefer to round up their total to the next dollar amount over other donation options.

• 2 out of 3 people feel positive to neutral about being asked to donate every time they visit over the same week or several weeks.

(Source: Children’s Miracle Network Hospitals Point-of-Sale Research 2022)

Ask customers to round up in-store and come together by helping make our community stronger and safer in providing needed treatments for patients—ultimately having ripple effects that positively impact communities for years to come and unlocking a world of possibilities!

“When we ensure our children can lead healthy, fulfilling lives, we foster the inventors, artists, leaders, and families of tomorrow.”

“From November 2, 2022 to January 10, 2023, the in-store round up fundraising campaign will allow customers to donate to the local children’s hospital through Children’s Miracle Network Hospitals at point-of-sale.”

“When you donate through NCASEF or your local FOA, or directly to CMN Hospitals via our website, the donation goes to your local member hospital.”

Working On The Challenges

BY SUKHI SANDHU, NCASEF CHAIRMAN

There are many challenges that franchisees and the system are currently facing. Among them are the AR Gap, store safety, delivery issues, and rising operational expenses that include labor costs, inflation, and rising credit card swipe fees, and others. However, NCASEF is diligently working with SEI to address these issues and put them behind us so we can move forward to increase sales and profitability for franchisees and all 7-Eleven stakeholders.

The AR Gap has been a major pain point for franchisees. The cause of the AR Gap is not anyone’s fault in particular; it’s more a byproduct of COVID, which has disrupted not only our personal lives, but the operations, logistics, and staffing of our vendors and franchisor. Nevertheless, we have expressed our concerns about the AR Gap and other accounting issues—like the backlog of MASC cases—to SEI, and we’re working with them on permanent solutions. For their part, SEI has allocated additional resources into accounting and is working with the wholesalers, including CoreMark and McLane, to address these cases.

improving a long-term solution for the AR Gap by way of store check-in simplification (SCIS). We’ve been working with SEI, their Logistics team and our wholesale partners to fine tune the SCIS process and make it efficient and accurate so we don’t have to face AR Gaps and our entire delivery and fill rate process is improved.

The profitability around 7NOW has been another challenge. SEI had temporarily suspended its policy of subsidizing the program’s delivery fees, but we had numerous meetings and discussions with our franchisor, and we mutually agreed that franchisee profitability is critical to the success of the program. We all realize that 7Now is a very important program for the brand, but franchisees need to know that it will also be profitable for them so they will invest time and effort into the program to maximize its potential. SEI agreed with this and decided to continue subsidizing the delivery fee, which will be retroactive from the time it was suspended on July 1.

Another topic that we’re engaging with SEI on is store safety. We have requested to form a cross-functional, multi-departmental committee with our franchisor that will look at every obstacle store safety generates, even the challenges that it provides, such as logistics. There is work being done with the Asset Protection department to test crime prevention products and other solutions. There’s even an ongoing test where some stores are allowed to close from midnight to five in the morning to see if that reduces the number of incidents occurring in the stores.

Texas, and will be installed in 126 stores by Q1 2023. Then there is the Live View Technology program, which involves deploying cameras to monitor fuel theft, loitering, homeless people, vandalism, theft, robbery, and employee and customer safety. Unfortunately, there is no simple solution to crime because it is more of a societal issue than a 7-Eleven issue, but we are looking into ways to ensure our stores, staff, customers, and franchisees are safe.

We have also been meeting with our wholesalers to improve the delivery process and fill rates so we have products available on our store shelves for our customers. We’ve been developing and

Pass through windows are being tested, which would allow franchisees to serve customers after hours without letting them into the store. It’s being piloted in 10 stores in Northern California and Dallas,

We are also working with SEI to form a committee to address our insurance premium increases and the fact that insurance companies are not renewing or offering new Business Owners Policies (BOP) because of the heighten crime plaguing convenience stores. As you know, BOPs protect you from liability claims and lawsuits; safeguards your building, equipment, and inventory; and cover you financially if your business unexpectedly shuts down from a covered loss. This isn’t just happening to 7-Eleven stores, but to

“Unfortunately, there is no simple solution to crime because it is more of a societal issue than a 7-Eleven issue, but we are looking into ways to ensure our stores, our staff, our customers, and our franchisees are safe.”

“NCASEF is diligently working with SEI to address these issues and put them behind us so we can move forward to increase sales and profitability for franchisees and all 7-Eleven stakeholders.”

Working On The Challenges

other convenience retailers, as well. This new committee will look for solutions to both premium increases and BOP renewal problems.

Labor is another hot issue we’re tackling, the shortage and the rising cost. Presently, labor is the number one expense for franchisees—it accounts for as much as 70 percent of our total expenses and has increased 25 percent in the last three years. Although store sales are up, franchisee labor expenses are outpacing any financial gains we’re making from sales. It’s already tough for us to keep up with the market prevailing wages but come January several states are going to implement more minimum wage hikes. This is one of the many reasons we’re working with SEI to increase overall franchisee profitability.

In terms of finding workers for our stores, we’re looking at reasonably priced third-party staff recruitment companies to help us find eligible employees. We’re also

supporting several legislative measures on the federal level that will help widen the labor pool, such as one that gives retirees relief from Social Security penalties for returning to the workforce, and another that would lift the top and bottom age limits for eligibility for the Earned Income Tax Credit, which affects lower income workers. We’re also supporting federal programs that will bring in more foreign workers via the H2C visa program and Ukrainian workers program.

Rising credit card swipe fees is becoming a very big problem, so we’ve partnered with SEI’s Government Affairs team to visit our representatives in Washington, D.C. recently and ask them to support two bi-partisan bills that will lower swipe fees by bringing competition to the credit card processing market. The House bill, the Credit Card Competition Act, would require banks to allow credit card transactions to be processed over at least two unaffiliated card payment networks. The Senate version of the bill would also require that credit cards to be processed over at least two unaffiliated networks— Visa or Mastercard plus a network such as NYCE, Star or Shazam. We plan to keep the pressure on our elected officials to make sure these bills are passed so we can get some relief from credit card fees.

The pin pad issue, which was making life difficult at the store level, is being addressed. After expressing concerns over the faulty devices, SEI committed to ordering brand new pin pads for our stores. The Item Master issue also appears to be behind us. SEI’s IT department feels like they have a handle on the situation, but if any stores continue to have problems with Item Master they are encouraged to bring it to the IT department’s attention for resolution.

Your NCASEF leadership is committed to resolving all issues so we can focus on increasing sales and profits. Whether it’s store safety, credit card swipe fees, or increased operational expenses, we’re working to address all of them. And the key to successfully resolving all of these issues is open and honest communication—not only between NCASEF, SEI and vendors, but also amongst franchisees. That’s why I and the other NCASEF officers travel across the country to attend as many local FOA events as possible—to meet and talk and listen to franchisees so we can bring your system issues to SEI’s attention and help resolve them.

Before I sign off, I would like to acknowledge and thank everyone who united to help out after Hurricane Ian tore through Florida in late September. Great kudos to everyone working together, from franchisees and local FOA leadership, to SEI’s Facility Maintenance and Operations and suppliers and vendors. It was truly inspiring to see how the 7-Eleven family came together to not only help the stores impacted by the storm, but to support the communities and first responders, as well.

SUKHI SANDHU

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

“The key to successfully resolving all of these issues is open and honest communication—not only between NCASEF, SEI and vendors, but also amongst franchisees.”

“Presently,

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Support Durbin’s Efforts To Lower Swipe Fees

BY JOE ROSSI, NCASEF EXECUTIVE VICE CHAIR

The 30 plus years that I’ve spent at the corner of North Dearborn and Maple in Chicago as a 7-Eleven franchisee have been some of the greatest of my life. Since I first opened the doors of my store, I’ve been able to support my community through thick and thin. But now, I’m finding it more difficult to keep my lights on and serve Chicagoans due to increased credit card swipe fees.

This issue has been a long time coming. On every purchase, credit card companies will impose a processing fee, or what most Americans know as a “swipe fee.” Unfortunately, the credit card processing market is unfairly stacked against small businesses, as just two companies—Visa and Mastercard— are able to monopolize the rules.

Back when I first opened up shop at the corner of North Dearborn and Maple in 1988—which is now referred to as “Honorary Joseph Rossi Way”—20 percent of my customers paid by credit card, while 80 percent used cash. Those numbers have since swapped, as change shortages and the COVID-19 pandemic further increased shoppers’ reliance on credit cards. For Visa and Mastercard, this shift in consumer habits has been a godsend. For me, not so much.

I’ve had little choice but to increase the price tag on many of my products to offset these rising swipe fees, and slow down hiring for open positions. While I always want to avoid raising prices and

“While I always want to avoid raising prices and creating pain points for my customers, the credit card business has thrown me between a rock and a hard place.”

creating pain points for my customers, the credit card business has thrown me between a rock and a hard place.

These companies are double dipping. Not only are they automatically able to make more money off swipe fees due to inflation, but they also do so by directly increasing the fees themselves. You couldn’t ask for a clearer example of highway robbery.

It’s not just my business that is suffering. The convenience store industry at large lost out on $13 billion to swipe fees in 2021, while the average 7-Eleven store pays an average of $85,000 each year in these fees alone. Many businesses have found themselves at the complete mercy of credit card businesses, opting to go “credit card only,” which increases the financial pain.

It’s frightening to consider that I may not be able to support the community the same way I once have due to swipe fees. In prior years, I’ve donated to both my local school district and Lurie Children’s Hospital, but that may be more difficult this year and next due to these added costs.

Congress is attempting to clamp down on unregulated swipe fees and restore competition within the credit card industry. A group of lawmakers in the U.S. House and Senate, on both sides of the aisle, introduced the Credit Card Competition Act, which would require the largest U.S. banks to offer other networks for processing credit transactions.

Senator Dick Durbin is one of the lead sponsors of the legislation and should be applauded for his efforts to help small businesses at such a difficult economic time. The entire Illinois congressional delegation— particularly those representing the Chicago area—should follow Senator Durbin’s lead and support this measure.

In all of my years of business, I’ve been able to withstand the worst of circumstances— from shoplifting incidents to the COVID-19 pandemic. But runaway swipe fees are a new serious challenge and one that may be near impossible to overcome. Washington must restore competition in the credit card industry or else Visa and Mastercard may drive my business—and others across the country—straight into the ground.

CAN BE REACHED AT 312-501-4337 or joer@ncasef.com

JOE ROSSI

“A group of lawmakers in the U.S. House and Senate, on both sides of the aisle, introduced the Credit Card Competition Act, which would require the largest U.S. banks to offer other networks for processing credit transactions.”

“Washington must restore competition in the credit card industry or else Visa and Mastercard may drive my business—and others across the country— straight into the ground.”

A Decrease In Gross Profit On Merchandise Outweighed By Growth In Gross Profit On Fuel

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

This assurance to investors in Seven & i Holdings Co., Ltd., the publicly held parent company of 7-Eleven, Inc., appears as a small print footnote within the 23-page report entitled “Brief Summary for the Second Quarter of FY 2022 (Year Ending February 28, 2023).” The assurance was necessary because systemwide gross profit on merchandise for the six months ended June 30, 2022 was 33.3 percent, or 1.1 percent less than the same period in 2021. Systemwide merchandise sales for the first six months of 2022 were $13.2 billion. That amounts to a loss of gross profit margin of just under $145 million systemwide.

Same store merchandise sales increased for the first six months of 2022 by 4.9 percent, a sharp reduction from the 7.6 percent increase in 2021.

Every franchisee in the system is directly affected by merchandise gross profit, but franchised stores with gasoline do not share in that gross profit, and elevated profit on fuel may be counterproductive to merchandise sales. SEI’s retail fuel margins measured as cents per gallon rose from 33.06 cents for the first six months of 2021 to 39.75 cents in the first half of 2022. This is in part why the number of gallons sold increased by 44 percent, but fuel sales more than doubled. As SEI’s parent company stated to investors: “Volume headwinds have not translated into lower profits.”

In the end, for the first six months of 2022, SEI earned operating income of $1.35 billion, an 85 percent increase from the year before. And in its separate report issued on October 6, 2022, “Presentation for the Group Management Strategy,” Seven & i reported that the synergies associated with the Speedway acquisition are substantially ahead of plan and projected to reach $450 million for the current fiscal year.

But among the four separate reports that its parent company issued for the first half

of fiscal year 2022, comprising a total of 100 pages packed with financial disclosures, not one word measured franchisee financial performance in general, or franchisee merchandise sales, gross profit, net profit, or enterprise value in particular. Franchisees invest in a brand with the goal of achieving steadily increasing profits and building equity and value in the business that can be harvested or passed along to the next generation.

The question presented is what is the overall strategy of the company and the extent to which the tactics employed in pursuit of that strategy involves elevating franchisee financial performance.

About 2,500 years ago, Chinese military strategist, Sun Tzu, wrote “The Art of War.”

In it, he said: “Strategy without tactics is the slowest route to victory. Tactics without strategy is the noise before defeat.” Tactics and strategy should always complement each other and are two sides of the same coin (Emil SAYEGH, Law Journal Newsletter, August 2021).

A series of clues about company strategy can be found in a presentation “7-Eleven, Inc. Initiatives for Further Growth” issued on October 6, 2022, which describes four separate plans for the future, including (1) expanding exclusive merchandise assortments, (2) digital technology utilization, (3) restaurant business, and (4) delivery service. Let’s take a look at how these tactics might affect the lives and livelihoods of you and your fellow franchisees.

1. Merchandise Assortment

The presentation states that the year-overyear increases in fresh food and proprietary beverages sales were 14.5 percent and 12.7 percent, respectively, compared to the overall existing store sales increase of 4.9 percent. The implication is that, but for the increase in fresh food and proprietary beverages sales, the overall existing store sales increase would have been materially less. SEI is projecting that fresh food sales will grow to 25 percent in 2025. But if gross margin does not at least keep pace with sales increases, how does that elevate financial performance?

In its Group Management Strategy Presentation, the parent company noted that in order to react to the environmental dynamics of the fuel business, it expects to put effort into expanding fresh food and the restaurant business (see below). The translation is that although electric vehicle penetration remains low, it will grow steadily and that over time the massive profit from fuel will need to be replaced to some extent.

33.06 cents for the first six months of 2021 to 39.75 cents in the first half of 2022.”

Selling fresh food involves materially more labor than selling processed food, but there is no analysis of this fact in these presentations. And SEI’s parent company does not disclose data on gross margin by

“SEI’s retail fuel margins measured as cents per gallon rose from

“Among the four separate reports that its parent company issued for the first half of fiscal year 2022 … not one word measured franchisee financial performance in general, or franchisee merchandise sales, gross profit, net profit, or enterprise value in particular.”

A Decrease In Gross Profit On Merchandise Outweighed By Growth In Gross Profit On Fuel

merchandise category for SEI, but it does disclose that data for Seven-Eleven Japan: gross margin for fast food and daily food for the first half of 2022 were 37.2 percent and 34.4 percent, respectively, compared to gross margin for processed food of 39.8 percent. And of particular note is that the overall merchandise gross margin for the SEJ stores was 31.9 percent, compared to SEI stores at 33.3 percent. Does this mean that emphasizing a category with lower gross margin (not to mention higher labor costs) will cause the overall gross margin of the U.S. stores to drift downward?

The Group Management Strategy Presentation states that proprietary products— which now number more than 900—will yield higher gross margin, but few details are provided. The projection is that private brand products will generate $2.1 billion in sales in 2025, or double such sales in 2020.

2. Digital Technology Utilization

Seven & i discloses that 7Rewards and Speedy Rewards have approximately 80 million members combined, 1/3 of whom have used one of those apps within the last 90 days. For franchisees who are signatories to the so-called 2019 or later form of franchise agreement, the participation in all loyalty programs is required and the failure to do so is an event of default for which the agreement can be terminated. Section 17(a) of the franchise agreement specifically states that the cost of redeeming all points earned by customers, no matter at what store they were earned, rests with the franchisee, without any right to reimbursement or offset. And the franchise agreement states that the design and economics of these programs are at SEI’s sole discretion. While such loyalty programs are certainly ubiquitous at restaurants and convenience stores across the nation, responding to customer demands and preferences, any positive impact on franchisee gross margin or net profit is neither clear nor assured.

The Expanded 7Now Program Amendment appears at page F-114 of the FDD. Among its most salient provisions are those which allow SEI to determine (a) at which store

any order will be directed for fulfillment, (b) when, on what basis and in what amount refunds will be granted to customers, (c) specifications for proprietary bags and packaging, the cost of which must be borne by the franchisee, (d) standards for determining whether a franchisee is fulfilling the orders in a “prompt and timely manner,” (e) the price is charged to customers for all orders, and (f) the designation of payment

rate of more than 47 percent. Delivery sales totaled $112 million in the second quarter of 2022.

processor companies, which may charge higher fees than in store sales.

3. Restaurant Business

According to the presentation, SEI had a total of 488 Laredo Taco locations and 38 Raise the Roost locations as of June 30, 2022. The disclosure states that these apparently co-branded locations experienced significant increases in sales and gross profit. The disclosures include neither any detailed information regarding the financial metrics associated with the operation of these brands nor the extent to which they may differ from the convenience store model. There is no indication that franchisees are currently or will in the future be offered the opportunity to include these brands in their locations or whether they will even have a say as to whether or not that occurs. The 2022 Franchise Disclosure Document does not mention either of these brands as part of the franchise offering.

4. Delivery Service

Seven & i informs its investors that more than 50 percent of the nation’s population now live in areas within two miles of a 7-Eleven or Speedway store, that approximately 6,000 stores will be participating in delivery by the end of the fiscal year and that that sector of the business has experienced a sales growth

The 2019 and later franchise agreements purport to give SEI broad discretion to design and require franchisees to participate in either third party delivery services or delivery provided by the franchisee directly. Section 17(b) of the franchise agreement states that the franchisee is responsible for the cost of these delivery programs, which could include the need to employ additional personnel and acquire and insure multiple motor vehicles. It also states that the franchisee’s delivery area is not exclusive. Section 17(c) states that the cost of maintaining computer-related equipment to facilitate pick up and delivery from the store may be charged to the franchisee. The form of Delivery Services Amendment included at page F-112 of the 2022 FDD states that the third-party delivery cost is treated as cost of goods sold and thus shared under the gross profit split. This changes the provisions of the franchise agreement which state that SEI can allocate delivery cost at its discretion.

Conclusion

At least some of this strategy and the tactics of both SEI and its parent company are revealed in a careful review of its extensive presentation to investors. As we have stated in previous columns, SEI has become much more of a gasoline company and a company owned location enterprise than in the past. All the more reasons for franchisees to be fully informed and to ask good questions when presented with the opportunity.

ERIC H. KARP

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

“While such loyalty programs are certainly ubiquitous at restaurants and convenience stores across the nation … any positive impact on franchisee gross margin or net profit is neither clear nor assured.”

“The 2019 and later franchise agreements purport to give SEI broad discretion to design and require franchisees to participate in either third party delivery services or delivery provided by the franchisee directly.”

TAKE A WALK—THE VALUE OF A SELF-INSPECTION PROGRAM

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

One of your key safety director roles is to identify potential hazards and correct the situation before it results in an employee or customer injury, or damage to the store. There’s a lot to consider if you are at the store running the day-to-day operations, but a quality inspection will prove valuable to your bottom line and can be done with minimal disruption to activities. A manager can be a good resource to complete the survey and once a procedure is in place, it can be a good training exercise to rotate the responsibility among employees.

Self-inspections are the best remedy to find and correct unsafe conditions or behavior. Following the I.A.A. model, you can reduce the chances of potential claims and disruptions by identifying the risks, implementing the corrections, and creating a culture of safety to address corrections continuously.

marshal, SEI, insurance companies, and others, it’s important to be proactive and not wait for outside agencies to implement corrections.

There Are Legal Reasons, Too!

There are legal reasons for recognizing and correcting possible hazards. OSHA 1910.22 requires places of employment to maintain clean, orderly, and sanitary conditions to avoid slips, trips, or falls. 1910.37 requires working exits that are unobstructed, and have adequate lighting. 1910.1200 requires proper labeling and safety training for cleaning chemicals. These are a few of the OSHA standards, with all requirements easily addressed in a self-inspection.

Unsafe Conditions or Unsafe Behaviors are the root cause of any incident. Sometimes both a condition and behavior are involved. The key is recognizing and correcting these root causes before an incident occurs.

Here are a few key items to check in your self-inspection:

Parking Lot, Sidewalk, and Apron

• Potholes, cracks, and uneven surfaces should be marked as a hazard until repaired. Contact SEI immediately and maintain records.

• If there is a mat outside, make sure it is in good condition.

Customer/Sales Area

• Use a suitable mat at the front door, check that it doesn’t have upturned corners and is clean.

• Any unattended spills. Add cones or wet floor signs and supervise the spill.

• Is the mop head okay and is the mop water clean?

• Warning signs or cones where unneeded.

• Any stock, cleaning materials, or other items on the floor where a customer or employee could trip.

• Do cameras allow for a good view of the aisles in case a record is needed of an alleged incident?

Although your store can be subject to inspections from the city, state, fire

• Parking stops are misaligned or damaged. Check and immediately schedule repair.

• Quality of lighting—call if bulbs are out or dim.

• Gas islands can have oil or other liquid spills. Check often and keep absorbent available for use.

• Is the cash register area clearly visible from outside?

Vault and Backroom

• Crate dollies should be out of the aisle and turned upside down when not in use.

“Unsafe Conditions or Unsafe Behaviors are the root cause of any incident. Sometimes both a condition and behavior are involved.”

“Self-inspections are the best remedy to find and correct unsafe conditions or behavior.”

• Is lighting sufficient to see any trip or slip hazards?

• Restroom— is it secured, dry and clean?

• Is the vault clean with clear access for stocking shelves?

• Is the emergency exit/back door unobstructed?

• Is the office door locked?

Equipment

• Suitable and safe ladder or step stool available.

• Mops, brooms, and other items in good condition.

• Are electrical breaker panels clear of obstructions?

• Any loose displays or shelves, any sharp edges?

• Is the panic alarm where it’s supposed to be and working?

Employee Activities

• Are employees lifting properly and within their limits?

• Using the correct technique to mop?

• Reacting to all customer encounters in a friendly, nonconfrontational way?

Simple housekeeping is one of the most effective tools in preventing unsafe conditions. It’s easy to get used to looking at things as they are when you are in the store every day. Are you looking but not seeing?

Texas FOA Donates To Swim Across America

The Texas FOA donated $20,000 to Swim Across America on September 24 in Dallas on behalf of its members and vendors partners. The funds were raised during the FOA’s annual Charity Golf Tournament held August 25 at the Cowboys Golf Club in Grapevine, Texas. The Texas FOA has been a proud supporter of Swim Across America for the last 15 years and has donated more than $200,000 to the charity to date.

Self-inspection is an effective way to reduce hazards and will alert employees to possible causes of injury or store damage. Show your employees it matters and expect clean, orderly storage areas, coolers, register areas, and especially the sales floor.

We’re here to help manage your risks. Contact your broker or insurance company for a self-inspection form to document the assessment. If you have any questions or need further advice, contact your broker or MSIG.

“It’s easy to get used to looking at things as they are when you are in the store every day. Are you looking but not seeing?”

“In summary, how do we recognize and correct an unsafe condition? Hazard Identification! Walk the store and check and correct basic conditions to prevent the causes of employee or customer injuries.”

Reduce Harm On Nicotine Products Rather Than Banning Them

BY ALI HAIDER, MICHIGAN FOA PRESIDENT; LEADERSHIP

In April, the FDA announced its plan to ban menthol-flavored cigarettes. Although many may celebrate this decision as a groundbreaking victory for public health, it does not take a scholar to recognize that prohibitions tend to fail. Instead of focusing on uplifting our communities and helping smokers move to less harmful options, a menthol ban will punish those who struggle to quit, while devastating local businesses in its wake.

unchecked illicit trade in its place.

losses expected from a ban on all menthol tobacco products.

While the Biden administration has spent much of its time providing extraordinary relief to local businesses across all industries, bans or prohibitions place an unfair burden on convenience stores hit hard by the global pandemic. This is particularly true for stores in traditionally minority neighborhoods, which generally prefer menthol-flavored

As a multi-unit convenience store owner and vape wholesaler, I have spent my entire career in retail. Over the years, I have watched countless officials wrongly support similar policies, seemingly refusing to learn from the mistakes of their colleagues and predecessors. The same story continues to unfold— forced prohibitions take away regulated products from small businesses, fueling

A recent study by the Mackinac Center for Public Policy stated that nearly 20 percent of all cigarettes consumed in Michigan were smuggled in as a function of tax evasion or avoidance, ranking my state 15th nationally. Simply, excessive taxes or a prohibition of certain cigarettes or other flavored nicotine products will increase smuggling and embolden further criminal activity.

Moreover, convenience stores in Michigan typically count on tobacco products for nearly 35 percent of their in-store purchases. This number doesn’t account for the additional purchases these customers make while visiting our stores. Put simply, these businesses are not prepared to handle the substantial

tobacco products.

There is a solution to help consumers quit smoking, and it’s known as Tobacco Harm Reduction (THR). THR is a growing, scientifically substantiated movement to share the potential public health and community benefits of providing tobacco smokers access and education to potentially less harmful nicotine products.

For example, a recent study found that the presence of vapor products not only had little impact on encouraging smoking among young people, but it did encourage more

adults who use cigarettes to quit. Study after study shows that

COUNCIL BOARD MEMBER (SMALL BUSINESS ASSOCIATION OF MICHIGAN)

“Instead of focusing on uplifting our communities and helping smokers move to less harmful options, a menthol ban will punish those who struggle to quit, while devastating local businesses in its wake.”

“Simply, excessive taxes or a prohibition of certain cigarettes or other flavored nicotine products will increase smuggling and embolden further criminal activity.”

“There is a solution to help consumers quit smoking, and it’s known as Tobacco Harm Reduction (THR).”

Reduce Harm On Nicotine Products Rather Than Banning Them

nicotine alternatives, including vaping products, are significantly safer than cigarettes, because tar in traditional cigarettes causes health problems, not nicotine.

I know firsthand the benefits of switching because I’ve applied the THR strategy and transitioned from traditional cigarettes to vaping. Honestly, it’s one of the best decisions I’ve ever made and why I can no longer remain silent over the FDA’s attempted shakedown.

If we ban certain tobacco products and their nicotine alternatives, people who want nicotine will stick to now illegal, traditional products and roll the dice with their health, safety, and personal freedom. Unlike more progressive public health programs in places such as Europe, the FDA does not have a realistic strategy or plan. They may

continue to stand behind their decision to enforce prohibitions, but that doesn’t change the reality that such a policy will only lead to harmful outcomes. Rather than abandon smokers, we need this administration to support policies that provide opportunities for those that wish to quit.

Prohibition is a failed policy—until the FDA reverses course, history will continue to repeat itself.

ALI HAIDER

CAN BE REACHED AT 517-219-5288 or aliokemos@gmail.com

7-Eleven Fundraising Campaign For CMN Hospitals

SEI recently kicked off a multi-week round-up campaign in all 7-Eleven stores benefitting Children’s Miracle Network (CMN) Hospitals, running from November 2 to January 10. All store associates are encouraged to ask customers to round up their purchase at check-out to support this worthy organization. Funds raised at 7-Eleven stores will stay local, directly benefitting the local member hospital, allowing them to address the most urgent needs in your community, while also preparing and planning for tomorrow.

NCASEF has adopted CMN Hospitals as its charity of choice, helping to raise critical funds to support children’s hospitals across the U.S. advance pediatric healthcare by providing critical lifesaving equipment and much needed resources to help treat sick and injured children throughout the communities 7-Eleven serves.

“Children’s hospitals are on the frontlines when it comes to protecting the health of future generations,” said NCASEF Chairman Sukhi Sandhu. “But they can’t do it alone. When we work together to positively change the health of even one child, we create a ripple effect felt in our neighborhoods for years to come.”

To learn more about CMN Hospitals and your local children’s hospital, visit cmnhospitals.org.

“Unlike more progressive public health programs in places such as Europe, the FDA does not have a realistic strategy or plan.”

AFFILIATE MEMBERS

The Fall 2022 AFFILIATE MEMBER DIRECTORY

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

21 Rocs

Ron Berman

10857 Portal Dr Los Alamitos CA 90720 833-244-1212 310-704-2345 ron@21rocs.com

5-Hour Energy

Brad Margheim

14150 Colt Chase Road Frisco TX 75035 972-948-2481 bmargheim@fivehour.com

Abbott Nutrition

James Spencer

10115 Kingshyre Way Tampa FL 33647 813-295-3163 james.spencer@abbott.com

Accel Entertainment

Teresa Radtke

140 Tower Drive Burr Ridge IL 60527 630-280-6119 teresar@accelentertainment.com

Acosta Sales & Mktg

Rene Chumbley

605 Promontory Drive Keller TX 76248 817-475-4710 rchumbley@acosta.com

Advantage Solutions

Randy Watkins

3425 Knob Oak Drive Grapevine TX 76051 512-632-1809 randy.watkins@advantagesolutions

Please note: This directory is current as of October 31, 2022.

Altria Group Distribution

James Duke

6601 W. Broad Street Richmond VA 23230 804-484-8151 407-375-0935 james.duke@altria.com

Anheuser-Busch, Inc.

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

Aon Risk Services

Tonya Rosales

5005 LBJ Freeway, Suite 1400 Dallas TX 75244 214-989-2349 972-757-3322 214-989-2304 tonya.rosales@aon.com

AriZona Beverages

Doreen Higney

1 Arizona Plaza, Suite 400 Woodbury NY 11797 516-812-0365 dhigney@drinkarizona.com

Aspire Brands

Kyle Kulhanek

400 N May #301 Chicago IL 60642 630-460-1197 kylek@aspiredrinks.com

Atkinson-Crawford Sales Co.

Butch Henderson

11999 Plano Road, Suite 110 Dallas TX 75243 972-234-0947 972-979-9845 bhenderson@acsales.com

Bang Energy

Anayansi Ramirez

1600 North Park Dr Weston FL 33326 786-390-2043 anayansi.ramirez@bangenergy.com

Barbot Insurance Services

John Barbot 9001 Grossmont Blvd #711 La Mesa CA 91941 619-337-0290 619-609-1882 619-337-2703 jcbarbot@barbotins.com

Bayside Wireless

Mickeal Assaf

950 East Grantline Rd, Suite 400 Tracy CA 95304 415-637-9931 415-637-9958 Mike@baysidewirelessdist.com

BeatBox Beverages

Craig Ritcheson

1023 Springdale Rd #11F Austin TX 78721 805-823-5959 craig@beatboxbeverages.com

BIC USA

Joe Tesauro

One Bic Way, Suite 1 Shelton CT 06484 609-651-6046 joe.tesauro@bicworld.com

Big Ideas Marketing

Marc Segal

2235 Sisson St Baltimore MD 21211 888-908-8697 443-277-0223 410-654-8792 marc@bigideasmarketing.com

Blue Triton Brands

Erik Dube

1322 Crestside Drive Suite 100 Coppell TX 75019 203-241-2653 erik.dube@waters.nestle.com

Bon Appetit

Mike Kawas

4850 E. 50th Street Vernon CA 90058 913-708-5526 323-584-1075 m.kawas@bonappetitbakery.com

Botanic Tonics LLC

Jennifer Hunter

740 Kingman Ave Santa Monica CA 90402 512-983-4468 jhunter@botanictonics.com

2022 AFFILIATE MEMBERS

Bug Juice International

Richard Hunsberger

5520 Wisdom Court Waco TX 76708 214-914-5531 rhunsberger@bugjuice.com

CAB Enterprises— Electrolit

Kaitlin Pierce 300 Great Oaks Blvd, Suite 325 Albany NY 12203 817-333-4196 kaitlinopierce@outlook.com

Calypso Lemonade

Kim Hickey 851 W Grange Ave Milwaukee WI 53221 414-482-0303 208-851-2626 khickey@drinkcalypso.com

Campbell’s Snacks

Sabrina Crum

1617 Funny Cide Drive Waxhaw NC 28173 704-748-3530 sabrina_crum@campbells.com

Campofrio

Chris K. Perry

37 Belgrade Road Oakland ME 04963 407-921-2121 chris.perry@campofriofg.com

Canarchy Craft Brewery

Jeff Kataoka

12 Walnut Bay Court Sacramento CA 95831 916-320-4288 jeffk@canarchy.beer

CENTR Brands

Stacey Rivas 300-2318 Oak St Vancouver BC V6H 4J1 510-529-1988 srivas@centrcorp.com

Chobani

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

Coca-Cola

Myrna Hawkins

5800 Granite Pkwy, Suite #900 Plano TX 75024 214-244-9485 mbarronhawkins@coca-cola.com

Congo Brands

Franklyn Williams 9067 Lunette Lane Mechanicsville VA 23116 540-497-1520 fwilliams@congobrands.com

Constellation Brands

Tonya Huff

10110 Robin Hill Lane Dallas TX 75238 469-585-5937 tonya.huff@cbrands.com

Core-Mark International

Chris Ladesich

3200 Hackberry Road 3E18G Irving TX 75063 972-750-6190 cladesich@core-mark.com

Crossmark Convenience

Cheryl Tucker 5100 Legacy Drive Plano TX 75024 469-814-1508 817-226-8678 972-803-9630 cheryl.tucker@crossmark.com

Crossmark/Johnson & Johnson

Lauren Pecoraro

264 Everest St Grand Junction CO 81503 lauren.pecoraro@crossmark.com

Danone North America

Todd Mares

453 Monterey Dr Rockwall TX 75087 972-835-0836 todd.mares@danone.com

DEFY

Bennett Mark

4109 E 10th Ave, Ste 135 Denver CO 80220 214-232-9690 bennettm@drinkdefy.com

D.G. Yuengling and Son

Karoline Las 2890 Telluride Loop, 305 Sarasota FL 34243 518-491-5124 klas@yuengling.com

Don’t Quit

Kirk Hardwick

715 North Douglas Street, Suite B El Segundo CA 90245 214-676-1196 kirk@dontquit.com

Dreyer’s Grand

Ice Cream

Chip Vineyard 1202 Lakewood Drive McKinney TX 75072 214-534-5721 chip.vineyard@us.nestle.com

Ecolab

David Read

116 Dory Ln Stansbury Park UT 84074 413-265-5054 david.read@ecolab.com

Fairlife LLC

Jason Tomlinson

1001 W. Adams Street Chicago IL 60607 740-403-0885 jasont@fairlife.com

Ferrara Candy

Taylor Condon

404 W. Harrison St., Suite 650 Chicago IL 60607 248-877-1847 Taylor.Devine@ferrarausa.com

Fiji Water

Patrick Haas

11444 W. Olympic Blvd. Suite 210 Los Angeles CA 90064 856-426-2775 patrick.haas@fijiwater.com

FitVine

Tim Turner

2515 Freeland Court Naperville IL 60564 630-988-5908 tim.turner@fitvinewine.com

Gaskets Unlimited

Patrick Loo

3001 McCall Drive Atlanta GA 30340 877-542-7538 patrick@gasketsunlimited.com

GetUpside

Zachary Vickers

11921 N Mopac Expy, Ste 105 Austin TX 78759 800-741-6726 480-323-8428 zachary.vickers@getupside. com

Glanbia Performance Nutrition/ Amino Energy

Adam Friday

3500 Lacey Rd., Suite 1200 Downers Grove IL 60515 561-353-8563 adamfriday@glanbia.com

Green Team Worldwide Environmental Group

Miglena Minkova

65 Triangle Blvd Carlstadt NJ 07072 973-420-4634 miglena.minkova@greenteam worldwide.com

Happy Dad Hard Seltzer

Sam Shahidi

25712 Demeter Way Mission Viejo, CA 92691 949-370-4000 sam@happydad.com

Heineken USA

Paul Aquino

222 W Las Colinas Blvd, 1675E

Irving TX 75039 949-599-6105 paquino@heinekenusa.com

Hershey Company

Samantha Priest 19 East Chocolate Ave Hershey PA 17033 774-641-3600 sepriest@hersheys.com

Hostess Brands

Jackie Lawing

9030 County Road 2432 Terrell TX 75160 972-635-7523 940-368-4413 972-638-7523 jlawing@hostessbrands.com

IDG Wine & Spirits

Rodolfo Rubalcava

10303 Camintio Aralia #97 San Diego CA 92131 619-301-1099 rodolfor@idgwines.com

Ignite International

Aaron Covarrubias

3308 Towerwood Drive Dallas TX 75234 505-795-9138 aaron.covarrubias@ignite.com

Impact Sales & Marketing

Diane Drew

1851 Windmill Run Wimberley TX 78676 512-847-3284 512-563-3947 512-847-7284 ddrew@impact-sales.net

Infin8 Brands

Nabi Naseeb

500 Esna Park Drive Markham ON L3R1H5 416-994-0290 nabi@infin8brands.com

In Motion Design

Amir Norouzi 7314 Madison Street Paramount CA 90723 562-537-6898 anorouzi@in-motion-design.com

Johnsonville Sausage

Eugene Rech PO Box 906 Sheboygan Falls WI 53085 920-453-6960 920-918-9102 920-453-2221 grech@johnsonville.com

JUUL Labs

Lisa Lee

560 20th Street San Francisco CA 94123 706-570-0206 lisa.lee@juul.com

Kellogg’s

Christina Quintana

One Kellogg Square Battle Creek MI 49016 331-703-4511 Christina.Quintana@kellogg.com

Kenny’s Candy and Confections

Stephen Ornell 109 Lakeside Drive Perham MN 56573 972-977-2446 sornell@klnfamilybrands.com

Keurig Dr Pepper

Tom Nawa 5301 Legacy Drive Plano TX 75024 214-212-1232 tom.nawa@kdrp.com

Koia

Linnea Solbrook

5190 Shaw Lane Denton TX 76208 214-843-7012 linnea@drinkkoia.com

Lagunitas Brewing Company

Michael Evans 1280 N McDowell Blvd Petaluma CA 94954 217-652-6147 michael.evans@lagunitas.com

L.A. Libations

Daniel Stepper

1708 Walnut Manhattan Beach CA 90266 310-291-1713 818-279-0502 danny@lalbev.com

LifeMade Products

Colt Bearden 6375 Lansdale Road Fort Worth TX 76116 817-538-8693

Colt.Bearden@lifemadeprod ucts.com

Liquid Death

Rachel Ridenour 3898 Van Ness Lane Dallas TX 75220 214-558-2482 Rachel@liquiddeath.com

LTS

Alex White

12930 Worldgate Dr. Suite 300 Herndon VA 20170 202-679-7107 awhite@lts.com

Lucas Oil Products

Marty Feldman

302 N Sheridan St Corona CA 92878 972-214-7120 mfeldman@lucasoil.com

Mad Tasty

Daniel Kelly

4041 Macarthur Blvd, Suite 170 Newport Beach CA 92660 941-527-5749 dankelly@madtasty.com

continued from previous page

McLane Company Inc.

Nick Bullard

4747 McLane Parkway Temple TX 76504 414-704-9392 nick.bullard@mclaneco.com

MegaMex Foods/ Hormel—Don Miguel

Todd Ginley

333 S Anita Drive, Suite 1000 Orange CA 92868 714-385-4500 972-670-8875 twginley@mmxfoods.com

Mela Water

Alina Segura

10 Hawaii Dr Aliso Viejo CA 92656 951-551-6578 alina@melawater.com

Mike’s Hard Lemonade Co.

Nuno Melo

9605 Buckhorn Dr Frisco TX 75033 972-837-3193 nmelo@mikeshard.com

Mini Melts of America

William Allison

2540 Metropolitan Drive Trevose PA 19053 860-889-7300 267-975-0262 860-887-1033 bill@minimelts.com

Molson Coors

Keith Smith

7800 North Dallas Parkway, Ste 400 Plano TX 75024 484-947-7696 312-496-2700 accts payable keith.smith@molsoncoors.com

AFFILIATE MEMBERS

continued from page 33

Mondelez International

Steven Myers

6 James Circle Shippensburg PA 17257 240-533-5067 steven.myers@mdlz.com

MONSTER Energy Company

Michael Pineiro

1 Monster Way Corona CA 92879 951-316-8635 michael.pineiro@monsterener gy.com

Morinaga America

Raymond Gates 4 Park Plaza, Suite 750 Irvine CA 92614 518-812-4478 gates@morinaga-america.com

Mother Parkers

Tea & Coffee

Peter Doyle

7800 Will Rogers Blvd Fort Worth TX 76140 713-682-8250 832-725-1749 713-682-0530 pdoyle@mother-parkers.com

MSIG

KC Ann Hansen

15303 Dallas Parkway, Suite 1300 Addison TX 75001 908-928-4090 908-251-3863 kchansen@msigusa.com

Napjitsu Inc.

Austin Allen 109 Stratford Reserve Place Austin TX 78746 813-777-2044 austin@napjitsu.com

Nepa Wholesale

Zahid Anwar

8445 NW 62nd Place Parkland FL 33067 954-465-6896 zahid711@gmail.com

NJOY

Justin Finn

9977 N 90th Street, Suite 160 Scottsdale AZ 85258 609-903-3678 jfinn@njoy.com

NXT LVL Gamer Shot

Mike Costello

119 E. Union Street, Suite B Pasadena CA 91103 630-328-9999 mike.c@takeoverind.com

PathWater

Jaswinder Singh 3133 Osgood Ct Fremont CA 94539 916-430-6771 jassi@drinkpath.com

Payality Powered by Payroll People

Bettye Smith

2152 E Copper Ave, #105 Fresno CA 93730 559-251-9060 bsmith@payrollpeople.com

PepsiCo, Inc.

Marla Daudelin 7701 Legacy Drive Plano TX 75024 407-461-1243 Marla.Daudelin@pepsico.com

Perfetti Van Melle

Scott Swanson

3645 Turfway Road Erlanger KY 41018 918-231-0119 scott.swanson@perfettivan melle.com

Pladis

Bryan Baker

10 Bank Street, 10th Floor White Plains NY 10606 201-681-1157 bryan.baker@pladisglobal.com

Promotion In Motion, Inc.

Scott Abajian

23652 Meadcliff Pl Diamond Bar CA 91765 909-717-3775 sabajian@promotioninmotion. com

Red Bull North America

Amanda Pomorski 35 Red Oak Drive Coatesville PA 19320 717-286-6478 amanda.pomorski@redbull.com

REV GUM

Annie Flowers Texas 737-230-2277 annie@chewrevgum.com

RJ Reynolds Tobacco Co./RAI TMS

Rosa Garcia 4601 Silo Hills Drive Springfield MO 65802 424-228-2709 847-630-9540 garciar2@rjrt.com

Sierra Nevada

Brewing Company

Stephan Jannuzzo

4487 Windsor Oaks Circle Marietta GA 30066 770-500-9373 sjannuzzo@sierranevada.com

Som Sleep

Abdul Khan 5029 Auckland Avenue North Hollywood CA 91601 415-203-1514 abdul@getsom.com

SRP Companies

Jack Claiborne

15 N. 1800 West Lindon UT 84042 407-412-8563 jack.claiborne@srpcompanies. com

Stewart’s Enterprises

Ralph Talamantez

5800 Heron Bay Lane McKinney TX 75070 916-622-4188

ralph.talamantez@stewartspiked.com

Storck USA

Tony Harper

8809 E. Long Court Centennial, CO 80112 312-494-5912 312-256-3745 312-494-7912 tony.harper@us.storck.com

Stratus Group

Gabriel Lopez

Director of Sales

41518 Grand View Drive Murrietta CA 92562 310-989-6782 gabriel@stratusgp.com

Swedish Match North America

Aaron H. Choate

403 Wellington Court Southlake TX 76092 817-312-2017 877-860-7481 aaron.choate@swedishmatch.com

Swisher International

Brett Anthony

4354 E. Kentbrook Dr. Springfield MO 65802 904-598-4642 banthony@swisher.com

T-Mobile

R. Brian Bycott

7668 Warren Parkway Frisco TX 75034 214-455-6565 Robert.Bycott@t-mobile.com

TransAct Technologies

Dave Ritchie

2319 Whitney Ave. Suite 3B Hamden CT 06518 404-405-6258 dritchie@transact-tech.com

Turning Point Brands

George Cooper

610 Tall Oaks Court Centerton AR 72719 479-224-9763 gcooper@tpbi.com

Twang Partners

Heath Chapman

6255 WT Montgomery San Antonio TX 78252 809-508-8095 512-773-6621 hchapman@twang.com

Ultimate Sales & Services

Beth Coldsmith

613 Stephenson Ave. Suite 101 Savannah GA 31405 512-657-4317 bcoldsmith@ultimate-sales.com

UPTIME Energy Inc.

Carrie Kim

8000 Woodley Avenue Van Nuys CA 91406 310-623-9170 310-968-9019 ckim@uptimeenergy.com

Vita Coco Tom Puntoompoti

250 Park Ave South, 7th Floor New York NY 10003 718-614-8592 tpuntoompoti@vitacoco.com

Vixxo Corporation

Regina Coleman

7000 E Shea Blvd Ste H1970 Scottsdale AZ 85254 925-756-7075 916-217-5130 regina.coleman@vixxo.com

Wen & Winnie Trading

Tony Liu

3198 Factory Drive Pomona CA 91768 909-664-3514 Wen.Winnie.trading@gmail. com

Wonderful Pistachios & Almonds

Holly Hines

1063 Enchanted Rock Drive Allen TX 75013 214-701-5282 holly.hines@wonderful.com

VENDORS: Join The NCASEF Affiliate Member Program

Register online at NCASEF.com

The Affiliate Member Program provides an excellent opportunity for vendor representatives to network and form new relationships with NCASEF Board members from around the country.

The Program consists of three meetings per year—two in spring, and one in fall— where Affiliate Members can meet with the President and Vice President from each of the NCASEF’s 41 regional Franchise Owners Associations. Each FOA represents between 15 and 400 franchisee members, and each meeting includes a charity golf tournament benefitting Children’s Miracle Network Hospitals, presentations from the franchise community and/or industry executives, plus roundtable discussions, breakout sessions, and group social events that provide time for oneon-one networking.

All Affiliate Members also receive the

NCASEF’s list of FOA Presidents and Vice Presidents and their contact information. Each Affiliate Member can have up to two representatives at the meetings. During breakout sessions and roundtable discussions Affiliate Members can ask any question and bring up any topic before the group or among individual FOA leaders.

Additionally, each Affiliate Member has the opportunity to purchase presentation time at any of the four annual NCASEF Board Meetings to present their latest and greatest products to the Board, purchase a table at the Tabletop Trade Show held during three of the Board meetings, and will be listed in Avanti Magazine’s Affiliate Member Directory, printed twice yearly.

You can register for the Affiliate Member Program online by visiting https://ncasef.com/ program-pages/vendor-affiliate-members/.

AFFILIATE MEMBERS

Board Presentations

If your company would like to present before the NCASEF Board of Directors at any of the 2023 Board Meetings, contact Meeting and Trade Show Coordinator John Riggio at 262394-5518 or johnr@ jrplanners.com.

Member News

continued from page 15

SEI Senior VP Among 2022 Top Women In Convenience

SEI’s senior vice president of construction, engineering and facilities, Holly Angell, was one of five Women of the Year honorees at this year’s ninth annual Convenience Store News Top Women in Convenience Awards Gala, held October 2 at the Renaissance Las Vegas following day two of the 2022 NACS Show. TWIC is the first and only c-store in dustry program that spotlights the integral role women play in convenience retailing and celebrates individuals across retailer, distributor and supplier businesses for out standing contributions to their companies and the industry at large, according to Con venience Store News. SEI President and CEO Joe DePinto was a featured speaker at the event.

As senior vice president of construction, engineering and facilities for the world’s largest convenience store retailer, Holly Angell’s role is to strategize and execute the modernization of SEI’s more than 12,000 brick-and-mortar stores. In her role, she has been an essential part of 7-Eleven’s integra tion of Speedway locations following their acquisition, including installing LEDs in the stores to contribute to the company’s overall CO2 reduction goal.

“SEI’s senior vice president Holly Angell was one of five Women of the Year honorees at this year’s Convenience Store News Top Women in Convenience Awards Gala.”

High Attendance At 2022 NACS Show

The 2022 NACS Show attracted the third-highest attendance in NACS Show history with 24,534 industry stakeholders from 73 countries, which includes 8,841 retail “buyers,” the c-store trade organiza tion announced. The event, held October 1-4 at the Las Vegas Convention Center in Las Vegas, delivered four days of learnings, insights, networking and exploring what’s new and exciting for the convenience and fuel retailing industry. From food to tech nology, car wash, electric vehicle equipment and in-store merchandise, the NACS Show Expo was the second largest in NACS Show history at 429,200 net square feet. It featured 1,262 exhibitors, 250 of them new to the NACS Show, offering retailers a sneak peek at the new products and services available for their stores.

C-Stores Filling The Gap Between Larger Grocery Trips

Data from point-of-sale company Na tional Retail Solutions (NRS) reveals that consumers are using convenience stores as a “gap fill” in between larger grocery shop ping trips, reported Food Business News. Nearly half of shoppers surveyed by the company said they use convenience stores to purchase grocery items in lieu of a longer trek to the supermarket. Grocery is now the third most common category purchased at convenience stores, falling just below snacks and candy, according to the NRS data.

Meal solutions are also gaining momen tum in convenience stores. Packaged ramen is outselling the total gum category and has the same velocity as PepsiCo’s Ruffles potato

chips across convenience stores in the NRS network, which encompasses more than 17,500 locations across the country. Bak ing supplies also are becoming more prev alent alongside items like lactose-free milk, cheese, pre-made seasoning mixes, fresh meat, produce and pet supplies.

Inflation Hits Four-Decade High

U.S. consumer inflation excluding ener gy and food accelerated to a new four-de cade high in September, a sign that strong and broad price pressures are persisting, reported the Wall Street Journal. The Labor Department said that its so-called core con sumer price index—which excludes volatile energy and food prices—rose 6.6 percent in September from a year earlier, the biggest increase since August 1982. The measure increased 6.3 percent in August. Prices rose in September for housing, medical care, airline fares and other services, threatening to keep inflation high for a while.

The overall CPI increased 8.2 percent in

“Consumers are using convenience stores as a ‘gap fill’ in between larger grocery shopping trips.”

Member News

Congressional Bills Seek To Reduce Swipe Fees

There are a pair of complementary bi partisan bills in the U.S. Senate and House of Representatives that seek to lower swipe fees by bringing competition to the credit card processing market, reported NACS Daily News. The Credit Card Com petition Act, introduced by Rep. Peter Welch (D-VT) and Rep. Lance Gooden (R-TX), would require the largest U.S. banks that issue Visa or Mas tercard credit cards to allow transactions to be processed over at least two unaffili

Legislative Update

ated card payment networks—the same process that has been used for debit card transactions for more than a decade. Con venience store swipe fees totaled $14 bil lion in 2021, a 26 percent increase over the year prior, and during the first half of 2022, credit card swipe fees were up an other 33 percent.

The legislation proposes an open mar ketplace for credit card processing in which retailers could choose which pay ment network to use to handle a trans action. Currently, networks equipped to route these transactions have been blocked from entering the market by Visa and Mastercard, which dominate the U.S. market and issue 83 percent of all credit cards. This legislation would result in $11 billion annually in savings for American

businesses and consumers, according to the payments consulting firm CMSPI.

The House bill complements the bipar tisan Senate version of the bill, S. 4674, which was introduced in July by Sen. Richard Durbin (D-IL) and Sen. Roger Marshall. This measure would require that credit cards issued by the nation’s largest banks be enabled to be processed over at least two unaffiliated networks—Visa or Mastercard plus a network such as NYCE, Star or Shazam. Domestic credit card net works like American Express or Discover could also be the second network, but not networks supported by foreign govern ments like China’s UnionPay. The banks would decide which two networks to en able on a card, and then merchants would be allowed to choose which of the two

continued on page 48

Supermarket chain Wegmans recently discontinued its SCAN App, which allowed shoppers to scan and bag purchases as they moved through the store, because too many people were using it to shoplift, reported The Buffalo News. The company said it knew the app was popular, but it was losing too much money to keep it going. • There were two winning tickets for the Octo ber 14 drawing of the $494 million Mega Millions jack pot, and both were sold in 7-Eleven stores, accord ing to several news sources. A 7-Eleven store in San Jose, California sold one of the winning tickets, while the other was purchased at a 7-Eleven in Fort Myers, Florida. The winners will have to split the top prize, each taking home $247.9 million. • Convenience store chain Weigel’s recently began offering its full-time, hourly workers the option of choosing a four-day workweek—instead of the usual five-day work

week—as well as a fixed weekly schedule. The com pany said the new shortened workweek has resulted in happy and refreshed employees, improved turnover, and more hiring power. • Amazon recently launched a new shopping portal called Amazon Access that is de signed for shoppers receiving government assis tance, reported CNN Business. The shopfront features SNAP EBT on Amazon, information about the Amazon Layaway program, and spotlights discounts and cou pons for essential grocery items. • A video of a bear walking into a 7-Eleven in Olympic Valley, California and helping itself to some junk food went viral recent ly. The store clerk managed to record the entire epi sode on his smartphone as the bear returned several more times that evening. The clerk ultimately delt with the tough customer by blocking the door with a garbage bag and a mop. • Circle K has embarked on a

marketing push in thousands of its outlets—using food trucks and other forms of advertising—to in crease its fresh foods sales, reported Bloomberg. The company’s fresh food business represents just 11 per cent of sales in its 9,000 North American stores. Fuel accounts for about half of its gross profit. • Japanese robotics company Telexistence is aiming to automate all “boring jobs done by humans,” reported Fox Busi ness. The company’s robot, named TX SCARA, currently operates behind refrigerated shelves in FamilyMart stores throughout Japan and can restock up to 1,000 bottles and cans per day. TX SCARA also learns which products are more desired by customers and places those in easier-to-reach locations. • Farmers across the U.S. are joining a push for national immigration re form that they say could ease labor shortages and lower food prices, reported NBC News. The farm oper

continued from page 39

ators say the Farm Workforce Modernization Act will pro vide them with a stable reliable workforce by creating a path to citizenship for undocumented agricultural work ers and reforming the seasonal farmworker visa program, among other things. • Inflation appears to be turning customers to McDonald’s for bargain meals, reports Restaurant Business. According to the foot traffic data firm Placer.ai, monthly visits to the fast-food burger giant rose 4.7 percent year-over-year in July and 3.1 percent in August. By contrast, traffic to fast-food chains declined 0.2 percent in July and 6.9 percent in August. • Kroger recently purchased Albertsons for $24.6 billion in a merger that would create a U.S. grocery behemoth to bet ter compete with leader Walmart on prices, reported Reu ters. The mega merger between the No. 1 and 2 stand alone grocers in the United States will bring under one roof nearly 5,000 stores that include banners such as Alb ertsons’ Safeway and Kroger-owned Ralphs and Fred Meyer. • Walmart announced that it plans to hire 40,000 additional associates in a variety of seasonal and fulltime roles for this holiday shopping season. The positions include seasonal store associates, full-time permanent truck drivers, and Customer Care associates. Walmart’s U.S. average wage is more than $17 an hour, with many associates earning more based on role and market. • With 85.5 percent of consumers still shopping in person, retail ers like Kohl’s are creating neighborhood-size stores with products tailored to the area’s shoppers, reported Modern Retail. The old-school approach allows large com panies to provide a more personal touch as they focus on customer loyalty, according to experts. • Nestlé plans to acquire the Seattle’s Best Coffee brand from Starbucks, the companies recently announced. This transaction is part of Nestlé’s focus on driving sustained profitable growth in the coffee category. • Millions of Social Securi ty recipients will get an 8.7 percent cost-of living in crease in their benefits in 2023—the largest in more than 40 years, reported the Associated Press. The adjust ment means the average recipient will receive more than $140 extra a month beginning in January. • Philip Morris raised its offer for Swedish Match by 9.4 percent and has agreed to pay $2.7 billion to regain the U.S. rights for its IQOS heated tobacco products from Altria Group, re ported the Wall Street Journal. Both IQOS, which is sold outside the U.S., and the proposal to buy Swedish Match are part of Philip Morris’s strategy to generate more than 50 percent of its annual net revenue from smoke-free products by 2025, up from about 30 percent currently. • Mars has teamed up with consumer-rewards app Fetch to launch a program that allows consumers to earn rewards points every time they buy a Mars product. The

continued on page 45

Member News

continued from page 38

September from the same month a year ago, pulled down by a drop in gasoline prices that was partially offset by higher food costs. The reading was down from 8.3 percent in August and 9.1 percent in June, which was the highest inflation rate in four decades. The CPI measures what consumers pay for goods and ser vices.

Recyclability Claims Against 7-Eleven

Dismissed

In a lawsuit involving labeling on foam plates and cups sold by 7-Eleven in Chicago, a federal judge ruled brand owners can label products as recyclable even if local residential recycling pro grams don’t want them, because rea sonable consumers wouldn’t assume the word “recyclable” means there are local facilities that accept the material, report ed Resource Recycling

In this recent case, a woman bought 7-Eleven’s “24/7” brand foam plates, foam cups, red party cups and freezer bags from a Chicago 7-Eleven in sum mer 2021. The packages included the chasing arrows symbol around the resin identification code (RIC) and use of the word “recyclable.” The expanded poly styrene plate packaging included the instructions “Check your local munici pality for recycling guidelines.”

The woman sued on October 1, 2021, seeking class-action status in a case al leging violations of the Illinois Con sumer Fraud and Deceptive Business Practices Act. She sought an injunc tion blocking 7-Eleven from selling the products with the recyclability label ing, as well as damages for herself and

the class. 7-Eleven succeeded in having the case moved to U.S. District Court for the Northern District of Illinois.

Judge Steven C. Seeger on September 13 denied the request for an injunction and dismissed multiple claims against 7-Eleven, allowing some others to sur vive. He dismissed allegations that the recyclability claims were deceptive be cause those materials can’t be recycled in Chicago’s residential recycling program.

SEI Selling 73 Stores

SEI recently put 73 gas stations and convenience stores up for sale, report ed CSP Daily News. The locations in clude 33 in New Jersey, Massachusetts and New York; seven in Texas; several in the mid-Atlantic and Midwest; and a few on the West Coast. Average lot sizes are about three-quarters of an acre, with some of the larger sites suitable for rede velopment, and other sites are less than one-half acre. Store sizes range from un der canopy kiosks to 6,900 square feet. Thirty-five of the sites are fee-owned properties, and the remaining are lease holds. SEI is selling all of the sites with out convenience store branding. The company has retained NRC Realty & Capital Advisors LLC, Chicago, to coor dinate the sale.

“SEI has 73 gas stations and convenience stores up for sale, all without convenience store branding.”

in Packaged Bakery

• Mark SKU’s as Carried • Set to POG

• Print and place tags on shelf

60% 60% 60% 60% 60% 60% 60% 60% 60% 60% Recommendations

6/3.17 oz 6/3 oz 6/3 oz 6/2.7 oz 6/4 oz 6/3.81 oz 6/2.89 oz 6/3.7 oz 6/3.81 oz 6/3.38 oz

All costs/retail are national averages. Please refer to the ISP for exact cost/retail by store.

$1.56 $1.56 $1.56 $1.56 $1.56 $1.56 $1.56 $1.56 $1.56 $1.56

$2.59 $2.59 $2.59 $2.59 $2.59 $2.59 $2.59 $2.59 $2.59 $2.59 Item SLINPack/SizeSRPGP%GP$

Gas Prices Affecting Driving Patterns

Nearly half of Americans (45 percent) say they are driving less than they did before the pandemic hit in early 2020, and they cite gas prices as the main reason why, reveals a new NACS consumer survey. Three in five driv ers (60 percent) say gas prices are the main reason why they drive less than pre-pan demic, up sharply from the 44 percent who said so in the February NACS survey. Rural drivers are the most likely to say they have cut back on driving (51 percent) and most likely to say it was because of the price of gas (73 percent).

Barely one in five Americans (21 percent) say they are driving more than before the pandemic; 58 percent of these drivers said more errands and responsibilities has led

to increased driving, while 48 percent cite more social or family activities. Only 30 percent said that they were driving more be cause of a job. Most drivers (59 percent) say they seek out a favorite gas station or con venience retail chain. While the most com monly cited reason for this preference was lower price (51 percent), though they also favor location (48 percent) as well as quality of fuel (46 percent).

Job Hunters Seek $20 Per Hour Wage

The share of $20-related job searches has outpaced job searches mentioning $15 be ginning in April 2021, according to a new report by Indeed’s Hiring Lab. Moreover, as of August 14, the share of $20 related searches has grown 35.5 percent year-over-

Florida FOAs Step Up During Hurricane Ian Recovery

After Hurricane Ian made landfall in Florida on September 28 and left a trail of destruction in its wake, Florida FOA leadership stepped up to help in the recovery effort. Central Florida FOA and South Florida FOA leaders delivered cases of Metawatr to first responders in the City of Naples, then 7-Eleven franchisee leadership from the South, Central and North Florida FOAs came together on October 14 and arranged delivery of a full truckload of Eternal bottled water to those needing hydration in the greater Naples area. Working with The Athens Group (developers of the new Naples Beach Resort and Four Seasons Hotel) along with the Harry Chapin Food Bank, the water was delivered to Chapin distribution centers around Collier County, Florida. The truckload represented 30,000 bottles of water.

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year. By contrast, searches related to $15 have declined 57.3 percent over the same time period.

Two factors—nominal wage gains and inflation—are likely influencing job seekers to search for higher dollar amounts, the re port states. In the last twelve months ending July 2022, wage growth for hourly workers clocked in at 5.9 percent, outpacing the strong wage growth of 5.1 percent seen by non-hourly workers. Once job seekers know it’s possible to attain a higher wage, their ex pectations may shift and act as a pull factor in searching for a higher dollar amount.

On the flip side, inflation continues to take a bite out of workers’ paychecks. In July, 46 percent of workers saw wage gains that outpaced inflation. While July’s cooler Consumer Price Index report was welcome news, prices remain higher than they were a year ago. At the same time, 40 percent of continued from page 44

Pictured are 7-Eleven franchisees and Athens Group representatives (L-R): Haroon Khan, Officer-South Florida FOA; Fari Ishani, PresidentCentral Florida FOA; Terry Hutchison, Naples City Councilman and Vice President-South Florida FOA; David Singh, President-North Florida FOA; Teeto Shirajee, President-South Florida FOA; and Athens Group Executive, Alex Isakarian.

Member News

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adults in households said it has been some what or very difficult to cover usual house hold expenses. This may be a push factor for jobseekers to increase their wage expecta tions while job searching.

age of total retail sales in 2021, accounted for $94.5 billion in losses last year, up from $90.8 billion in 2020, according to the 2022 National Retail Security Survey released by the National Retail Federation. Organized retail crime (ORC), a critical component of that shrink, is a growing challenge both for retailers and the industry at large.

The survey found that the average shrink rate in 2021 was 1.44 percent, a slight de crease from the last two years but compa rable to the five-year average of 1.5 percent.

Retail Shrink Climbed In 2021

Retail shrink, when taken as a percent

The majority of retailers report that in-store, ecommerce and omnichannel fraud have risen. Violence is a growing area of concern and retailers are prioritizing addressing

guest-on-associate violence, external theft and ORC. Retailers reported a 26.5 percent increase in ORC, on average. Even more alarming, the vast majority (81.2 percent) said the violence and aggression associated with ORC increased in the past year. The top five cities/metropolitan areas affected by ORC in the past year were Los Angeles, San Francisco/Oakland, New York, Houston and Miami.

The COVID-19 pandemic created more challenges for retailers. A large majority (87.3 percent) of respondents said the pan demic resulted in an increase in overall risk for their organization. Retailers specifically cited an increase in violence (89.3 percent),

“The share of $20-related job searches has outpaced job searches mentioning $15 beginning in April 2021.”

Member News

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app allows shoppers to quickly and easily accu mulate rewards points by submitting pictures of any receipt and by linking eReceipts from online retailers. Points are then redeemed for free gift cards and other rewards, right within the Fetch app. • Circle K has signed a deal with Green Thumb Industries, one of the largest U.S. cannabis producers, to sell licensed marijua na at its Florida gasoline stores, reported Bloomberg News. The partnership will begin next year with 10 of Circle K’s 600 locations in the state. The deal is a global first, given that legal marijuana has so far been sold only in stand-alone dispensaries in the United States. • Hudson recently announced that it will open two new stores featuring frictionless check out at Los Angeles International Airport Termi nal 3. One of the stores, Evolve by Hudson, will offer self-checkout and mobile POS, while the other store—Hudson Nonstop—will be a travel convenience concept powered by Ama zon’s Just Walk Out technology and Amazon One. • ExxonMobil and Uber have partnered to provide exclusive cashback offers with the new Uber Pro Card, an incentive that will benefit professional Uber drivers and couriers who fill up at any Exxon or Mobil stations across the country, reported Loyalty360. With the Uber Pro Card, drivers and couriers enjoy an additional 3 percent cash back on all grades of Exxon and Mobil Synergy Fuel. • New York state is banning the sale of new gaso line-powered vehicles by 2035, in a move of ficials say is aimed at cutting down on green house gas emissions and getting more electric vehicles on the road, reported the Wall Street Journal. • Midwest big box retailer Meijer re cently introduced a new brick-and-mortar store concept—coined Meijer Grocery that it said will provide convenience for cus tomers looking for a simplified shopping expe rience. The company said its Meijer Grocery stores will range from 75,000 to 90,000 square feet, and will include several grocery depart ments in a condensed, and quick-to-navigate footprint. • Kroger recently debuted its KroGo tech-savvy shopping carts at its Monroe, Ohio location, and the technology comes equipped with scales and cameras that help streamline checkouts, reported Winsight Gro cery Business. The store brought on additional associates to manage the carts and explain to

shoplifting (73.2 percent), ORC and em ployee theft (tied at 71.4 percent) as a result of the pandemic.

Consumers More Price Sensitive

Inflation is top of mind for American consumers, who say they have become more price sensitive when buying groceries (88 percent) and buying gas (87 percent), cutting back on snacks and drinks (80 per cent) and dining out less (74 percent), ac cording to a new national consumer survey released by NACS. These reflect an acrossthe-board increase since the February sur vey when gas prices were about 20 cents lower per gallon.

Consumer concerns about prices also affect where they purchase gas: 66 percent say price is the most important, while 24 percent say the location is most important, compared to just 10 percent who choose to fill up at a location that offers a specif ic brand. Beyond price, drivers also say their experience matters at convenience stores: 93 percent say it’s important to get in and out quickly, 87 percent say friend ly employees matter, and 74 percent want to know convenience retailers care about their local community.

Inflation Pushing Shoppers Toward Private Label

New research from Reach 3 Insights re veals that inflation has helped boost sales of private labels, with 78 percent of Amer icans now buying store-brand products and 65 percent saying that most items are the same when you take away the pack aging and branding, reported Marketing

Daily. More than nine out of ten in the 2,000-person sample say they are being more thoughtful about what they buy, in cluding those in the $100,000-plus income bracket. Consumers seem less inclined to trade down on pet and baby products, but they are more likely to do without the small treats they once bought freely. About 53 percent are buying fewer beauty products, 52 percent are buying fewer frozen appetiz ers, and about 50 percent are cutting back on sweet snacks or ice cream.

Grocery Shoppers Buying Online & In-Store

Nearly 60 percent of those buying online groceries started in the past two years, and nearly one in five online grocery shoppers intend to do more of their shopping online in the next year, according to Acosta’s On line Grocery Landscape Report. The new study shows that consumer grocery shop ping behavior continues to evolve along side the ongoing acceleration of digital commerce and innovation in traditional retail. Other key findings of the report in clude:

• Consistent with levels observed in fall 2021, half of U.S. shoppers are at least occasionally purchasing grocery items online.

• More than half (57 percent) of online grocery shoppers say they stick with the

“Inflation has helped boost sales of private labels, with 78 percent of Americans now buying store-brand products.”

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retailers they shop in-store, thus provid ing omnichannel-focused retailers with a big advantage in building loyalty with consumers.

• A significant majority of online pickup shoppers (7 in 10) go into the store when picking up an order, mainly to grab a forgotten item or to pick out something personally. This shopping behavior pres ents an opportunity to re-engage the shopper in store.

• Digital coupons are embraced by 80 per cent of online shoppers, with younger shoppers more likely to look for them while they shop.

Shoppers Buying Fewer Groceries To Save Money

A survey by data intelligence firm Morn ing Consult reveals that 72 percent of shop pers are purchasing fewer items because of concern over elevated grocery inflation, re ported Supermarket News. That’s up from 64 percent in October 2021 and represents the same percentage as those who said they’re specifically worried about high grocery in flation versus inflation overall.

Among grocery shoppers saying they’re putting fewer items in their cart or basket to save money, 19 percent report doing so

rarely, 47 percent sometimes and 24 percent often. The share of those frequently opting to buy fewer products in order to save rose from 15 percent in October 2021, whereas respondents saying they do so sometimes dipped by one percentage point and con sumers doing so rarely declined by 8 per centage points.

Other tactics cited by consumers to mit igate high grocery pricing include compare prices (83 percent), buy generic or store brands (81 percent), use coupons (65 per cent), buy less meat (64 percent), shop at multiple stores (63 percent) and buy in bulk (62 percent).

OREO

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Nestle

Nestle

Nestle

Member News

to use when a transaction is made. That means networks would have to complete to offer the best pricing, security and ser vice.

PAIR OF COMPLEMENTARY BIPARTISAN BILLS IN THE U.S. SENATE AND HOUSE OF REPRESENTATIVES SEEK TO LOWER SWIPE FEES BY BRINGING COMPETITION TO THE CREDIT CARD PROCESSING MARKET.”

Legislative Update

New Fed Rule For Online Debit Card Transactions

A rule finalized in early October by the Federal Reserve Board gives debit card issuers nine months to ensure that there are at least two unaffiliated pro cessors for every transaction made with their cards, including online purchases, reported American Banker. Part of the Dodd-Frank Act, Regulation II governs debit card interchange fees and routing. The rule was meant to give merchants a

way to control their expenses by offering shoppers a way to pick a low-cost routing option when making a purchase. Debit card issuers have until July 1, 2023 to be come compliant with the new rule.

Spurred by the rise of e-commerce, card-not-present transactions more than doubled between 2011 and 2019, going from 10 percent of the market to 23 percent, according to the Fed, with more growth likely occurring during the online shopping boom seen during the COVID-19 pandemic. In 2019, card-

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Member News

customers how to use them. • Alimentation Couche-Tard and Millat Convenience Ltd, a subsid iary of the Millat Group, recently announced a Master License Agreement that will bring Cir cle K to South Africa. Millat, which has been granted an exclusive license to develop franchised Circle K stores in South Africa, expects to open the first location in the Gauteng province in late Octo ber 2022. • Amazon plans to invest $450 million to fund wage increases and other benefits for its delivery partners, as the company gears up for the peak holiday season amid a persistently tight labor market, reported the Wall Street Jour nal. Other benefits as part of the new initiative include up to $5,250 a year for drivers to pay for educational programs, and financial support for a 401(k) investment plan for drivers. • The spend per check for convenience store loyalty members increased by about 25 percent last year, and the annual spend for convenience store loyalty members increased nearly 40 percent, accord ing to the Paytronix Annual Loyalty Report 2022. The report found that fuel purchasers were paying more per gallon and visiting more often. • Wawa recently announced that it has donated $500,000 to the Florida Disaster Fund to help aid in recov ery efforts after Hurricane Ian tore a path of de struction through the Sunshine State on Septem ber 29. Wawa stores in Florida also provided free coffee and fountain beverages to all first respond ers in the state during Hurricane Ian response and recovery efforts. • Consumers’ perception of food-at-home inflation is 9.7 percentage points higher (22.8 percent) than the 13.1 per cent reported by the U.S. Bureau of Labor Statis tics, and 31 percent said they have eaten less or skipped meals altogether over the past 12 months because they didn’t have enough food, reported Supermarket News, citing a new Consumer Pulse study from dunnhumby. • In a survey of U.S. elec tric car shoppers commissioned by Bloomberg, nearly two-thirds of respondents said that an EV with 300-plus miles of range was adequate to their needs, while less than 10 percent would settle for 200 or less. However, there is a glaring disconnect between what American drivers want and what they actually need—some 95 percent of U.S. car trips are 30 miles or less. • NCR Corp. recently announced that it activated its Allpoint ATM Network at more than 3,500 Circle K stores across 30 states. NCR said this expansion will bring customers more convenient and surcharge-free

Unsurprisingly, lower-income house holds are more likely to cut back on grocery purchases as they feel inflation’s squeeze on their pocketbooks. For example, 27 percent of those surveyed with annual income of less than $50,000 said they often buy few er items to save money, compared with 21 percent of those making $50,000 to $99,999 a year and with 19 percent of those with an nual income of $100,000 or more.

Shopping Habits Changing With Inflation Pressures

Grocery

Prices

Expected To Remain High

Grocery prices climbed 13.5 percent in August compared to the year before, the highest annual increase since March 1979, reported CNN Business. Executives at large food manufacturers and analysts expect in flation to hover around this level for the rest of 2022. Next year, the rate of food inflation is expected to moderate, but not necessari ly drop. Once prices hit a certain level, the article stated, they tend to stay there or go up, but rarely down.

A number of factors have contribut ed to the surge in prices. Producers say they’re paying higher prices for labor and packaging materials. Extreme weather, like drought or flooding, and disease, like the deadly avian flu, have been hurting crops and killing egg-laying hens, squeezing sup plies. Even if some of these situations stabi lize, it will take a while for those changes to reach consumers.

With the increased pressure on house hold budgets and ongoing concerns of a recession, consumers are responding by adjusting their spending habits, reveals a new NielsenIQ survey. Financial security has proven to be an important factor, lead ing them to pivot towards more restricted spending. At the beginning of the year, consumers surveyed by NielsenIQ intend ed to continue cutting back on mini splurg es like dining out, gym memberships, and out-of-home entertainment. Their spend ing strategies focused instead on day-today essentials, prioritized by basic needs and necessities, such as utilities (17 percent are prioritizing) and groceries (15 percent). However, as inflationary pressures con tinue to increase, consumers now plan to tighten their belts even further with greater cutbacks.

In addition to shopping consciously, many shoppers are switching to buying lower-quality items and shopping more at discount stores or traditional trade outlets. Brand loyalty has taken a hit as 31 percent of consumers admit to buying whatever is promoted, 27 percent look to whatever is cheapest, and 26 percent stop purchasing certain categories altogether. Further, 20 percent of consumers indicate they will opt for a private label to help manage their gro cery expenses, which supports the recent sales surge in this sector.

C-Store Jobs Viewed Favorably

Nearly three in four consumers (72 per cent) say they have a favorable opinion of convenience store jobs, according to a new

“Next year, the rate of food inflation is expected to moderate, but not necessarily drop.”

continued from page 49

financial solutions via thousands of new Allpoint ATM access points. • Love’s Travel Stops recently opened its first Jamba by Blendid autono mous robotic smoothie kiosk. Located at the rest area in Williams, Cali fornia just outside of Sacramento, the pilot location offers visitors smoothie options inspired by Jamba and powered by robotic food service solutions company Blendid. • Kroger is the first supermarket chain to partner with BrightDrop to launch a new temperature-con trolled eCart that helps streamline order fulfillment and pickup for online grocery purchases. The eCart, called Trace Grocery, allows em ployees to put orders directly into the unit before stationing it curbside for customer retrieval. The unit can easily move inside and outside of a store, and customers can access their orders inside the eCart without an employee present. • Hertz and bp have teamed up to develop a nation al network of EV charging stations powered by bp pulse at Hertz car rental locations. The agreement between the two companies also in volves bp managing Hertz’s charging infrastructure and the customiza tion of its Omega software to ensure Hertz’s growing fleet of electric rental cars are recharged quickly and efficiently between rentals. • In a bid to increase sales and reduce food waste, more and more of Japan’s convenience stores and supermarkets are letting artificial intelli gence analyze data such as past sales figures to decide what discounts to apply to perishable products, reported Kyodo News. Until now, store managers have been making reductions based on experience, but leav ing it to human judgment was leading to instances of undiscounted stock going to waste or items selling out. • Older Gen Zs, ages 18-24, in the U.S. favor quick service restaurants, particularly fast casual restau rants because their menus are more aligned with Gen Z’s food preferenc es and values, according to a new report by The NPD Group. In the 12 months ending July 2022, Gen Zs made 5 billion restaurant visits, 4.3 billion visits were to quick service restaurants, and 736 million were to full-service restaurants. • E-cigarette maker Juul will pay $438.5 mil lion to 34 states and territories in a settlement following a two-year in vestigation into the company’s marketing and sales practices, reported CNN. The investigation found that Juul deliberately marketed its prod ucts to minors, even though e-cig sales to children are illegal. • Walmart plans to acquire Boston-based grocery robotics company Alert In novation to speed up its order fulfillment, reported Winsight Grocery Business. The companies have worked together since 2016, with Walmart using Alert’s robotics and artificial intelligence technologies to power the micro-fulfillment centers in its stores. • Starbucks plans to build roughly 2,000 new U.S. stores between fiscal 2023 and 2025, accelerating its development strategy. By the end of fiscal 2025, it plans to have 45,000 locations worldwide. In its fiscal 2023, the coffee chain plans to invest roughly $450 million to upgrade its cafes with new equipment that will simplify operations and speed up service. • Pilot Company is the fuel sponsor for the Women In Trucking Association’s (WIT) 2022 Driver Ambassador Program, which focuses on promoting career opportunities for women in the trucking industry, celebrat ing inspirational women, and raising awareness for WIT’s mission. • Oklahoma-based convenience chain QuikTrip is considering building new urgent care centers in Kansas City and other areas as a part of its latest venture into the health care business, reported the Kansas City Star. QuickTrip purchased Medwise, which operates 11 clinics around

UFOLINY Annual Golf Classic Benefits Cooley’s Anemia Foundation

Over 140 vendors and franchisees gathered at the Baiting Hollow Golf Club in Baiting Hollow, New York on September 7 to participate in UFOLINY’s Annual Golf Classic benefitting Cooley’s Anemia Foundation. The event raised over $90,000 for the organization, which is dedicated to serving people afflicted with various forms of thalassemia—a class of genetic blood disorders—by funding medical research to advance treatment and curative approaches, supporting and advising patients and their families, advocating on their behalf, and by educating medical professionals and the general public.

survey released by NACS. Customers who most often shop at convenience stores—and interact with employees—give the highest marks: 85 percent of frequent customers have a favorable option of convenience store jobs, compared to only 54 percent of infre quent customers.

Customers also support many of the posi tive community-focused attributes associat ed with convenience stores:

• 86 percent say convenience stores are good first jobs for those looking to en ter the workforce.

• 83 percent say c- store jobs are good jobs for those re-entering the work

Member News

continued from page 49

force, such as retirees or veterans.

• 83 percent say c-store employees can work their way up to become managers or even run their own stores.

• 82 percent say c-store jobs are good jobs for high school or college students.

Loyalty Programs Can Attract More Shoppers

According to this year’s Convenience Store Trends Report from Intouch Insight Ltd., convenience does not trump brand loyalty for today’s consumers. For example, when it comes to their cup of coffee, 70 per cent of shoppers would seek out their favor ite brand over the most convenient cup. A strong tool to attract more customers and influence purchases are loyalty programs, the report states. Ninety-four percent of consumers are a part of at least one loyal ty program and 76 percent would choose a brand with one over a competitor. Yet con

venience stores didn’t even crack the top three most popular types of programs— trailing behind grocery, restaurants and

fast food. That’s because only 28 percent of cashiers mentioned their c-store’s loyalty program and not all locations had signage/ materials promoting the program, mystery shopping data showed. Better promotion will not only help attract more customers but influence their purchases, too.

Anheuser-Busch & 7-Eleven Hold Wholesaler Roundtable Meeting

Anheuser-Busch recently held its Wholesaler Roundtable Cascade Meeting with SEI, NCASEF officers and Board members, Anheuser-Busch wholesalers and its AB 7-Eleven Team to have all partners understand, align, and invest in all Anheuser-Busch businesses. During the meeting, which started with a welcome happy hour for all attendees, NCASEF members shared their advice on how to be successful with the franchisee model and the AB 7-Eleven Team shared their 2023 Strategy. It was a very productive meeting for all parties involved.

“A strong tool to attract more customers and influence purchases are loyalty programs, according to this year’s Convenience Store Trends Report.”

Member News

New Checkout-Free C-Store At DFW Airport

Star Concessions recently opened its Grab & Fly checkout-free convenience store at Dallas Fort Worth International Airport (DFW), reported Retail Technology Innova

tion Hub. Powered by Amazon’s Just Walk Out technology, the store lets people grab what they need and leave without having to wait in checkout lines. Cold drinks, snacks, travel accessories, electronics and souvenirs are among the products offered.

To enter Grab & Fly, travelers insert their credit card at the entry gate. Once inside,

anything they take off the shelf is automat ically added to their virtual cart, and any thing they put back on the shelf comes out of the cart. After they have left the store, their credit card is charged for the items they took. Associates are available in store to assist customers, answer questions, and re-stock shelves as needed.

California Franchisee Gives Back To Community

NCASEF Chairman Sukhi Sandhu’s store management team turned out to lend their support of the Peace Officer Memorial Run held on October 2 in Modesto, California. Sukhi and his team have been involved in this event for over five years, and it is just one of the many community events that they frequently participate in every year.

Although Sukhi was unable to personally participate in the event this year due to a scheduling conflict with the NACS Show, his son and his store management team gathered all the necessary supplies and passed out waters, bananas, and nutritional bars to runners, families, kids and community residents. As they do annually, Sukhi and his team also donated $711 to the local Modesto Police Department.

The Peace Officer Memorial Run event included

multiple races such as Half Marathon, Half Marathon Relay, a Full Gear Challenge, 5K Run, and Kids Fun Run, as well as booths with activities set up from various local law enforcement agencies. The event and race were developed to honor the police officers who were killed in the line of duty, and to build relationships between law enforcement agencies and the community, teach kids self-discipline, and increase wellness through physical fitness.

The Modesto Police Department, various community leaders and residents were all very appreciative of Sukhi’s and his team’s on-going involvement and outreach. “We enjoy giving back and truly feel we are part of the communities we do business in,” Sukhi said.

Legislative Update

continued from page 48

not-present transactions grew at more than four times the rate of card-present ones, and had an average transaction val ue twice the size.

Despite this proliferation and im provements to technology to accom modate card-not-present transactions, many card issuers have not taken steps to ensure their products can be used with multiple networks. In 2019, roughly a quarter of issuers subject to Regulation II only had card-not-present operability with a single network, the Fed found.

Merchants celebrated the Fed’s final ization of the Regulation II changes. Leon Buck, vice president for government rela tions, banking and financial services for the National Retail Federation, said the change modernizes the rule to reflect the evolution of the e-commerce landscape.

Tobacco Legislative & Regulatory Update

Here are the latest proposals and ap proved changes to tobacco legislation and regulation at the local, state and fed eral levels, as reported by Convenience Store News.

ARIZONA

• Tempe—A new ordinance, if ap proved, would ban businesses from selling flavored vape products in Tempe city limits. A hearing is planned but not yet scheduled.

CALIFORNIA

• Santa Clara County—The County of Santa Clara is increasing the penal ties for businesses that sell tobacco products to minors (under age 21) through its Tobacco Retail Permit (TRP) program. Penalties will also be higher for any retailer that sells electronic cigarettes and flavored to bacco products, including menthol cigarettes and e-liquids, to anyone regardless of age.

FLORIDA

• St. Petersburg—St. Petersburg City Council members approved a draft ordinance banning smoking and vaping at all city parks and beaches in August. If passed the ordinance would immediately go into effect, but wouldn’t be enforced until January 1.

NEW JERSEY

• Atlantic City—A bill that would end continued on page 56

Legislative Update

continued from page 55

smoking in Atlantic City’s nine ca sinos remains stalled with no vote scheduled. The first public airing of the issue was to take place in Sep tember at a major gambling confer ence, but a casino executive pulled out, canceling the discussion. Other states, including Pennsylvania and Rhode Island, have also made moves to implement casino smoking bans, so far to no avail.

Colorado Ballot Measure For C-Store Wine Sales

Colorado Proposition 125, the Wine Sales in Grocery and Convenience Stores Initiative, is on the ballot in Colorado as an initiated state statute on November 8, 2022. The measure creates a new fer mented malt beverage and wine retailer license to allow convenience stores, gro cery stores, and other businesses that are licensed to sell beer to also sell wine and conduct wine tastings. Those in favor of the proposal say consumers want the convenience of buying wine with grocer ies, and this proposal will allow adults to buy wine in grocery and convenience

stores just as they do now with beer. Those opposed say this proposal creates a disadvantage for small, locally owned liquor stores that may not have the ca pacity or desire to expand, and benefits large national grocery and convenience store chains that have more resources.

“COLORADO PROPOSITION 125 CREATES A NEW FERMENTED MALT BEVERAGE AND WINE RETAILER LICENSE TO ALLOW CONVENIENCE STORES TO SELL WINE.”

Labor Department Proposes Change To Gig Worker Classification

The Labor Department recently re leased a proposal that could pave the way for regulators and courts to reclas sify gig workers as employees rather than independent contractors, reported CNBC. The proposed rule, if adopted, could raise costs for companies like Lyft, Uber, Instacart and DoorDash that rely

San Diego FOA Members Spend A Day At The Racetrack

Members of the San Diego FOA spent August 26 at the Del Mar Racetrack in Del Mar, California to partake in their annual Day at the Races event. The group cheered on their sponsored horse, Carmel Road, which went on to win the third race of the day. Franchisees and their vendor guests spent a wonderful afternoon enjoying the sun and the races.

on contract workers to pick up shifts on their own schedules.

The companies have argued that flex ible schedules are attractive to workers, pointing to surveys showing the pop ularity of the model, which they say is made possible by the use of independent contractor status. Some labor experts and activists have disagreed, however, saying the companies use the contractor model to reduce their own costs while denying workers important protections such as healthcare benefits, overtime pay and the ability to organize into unions.

The proposed rule would allow the determination of whether to classify a worker as a contractor or employee to rely on a more holistic assessment, in cluding whether the work is an “integral” part of the employer’s business. The goal is to protect workers from being classi fied improperly while providing consis tency for businesses that wish to employ independent contractors, the agency wrote. The new proposed rule will still need to make its way through the formal regulatory process, including allowing time for the public to submit comments, before it is adopted.

Member News

SEI Signs Clean Energy Agreement For Michigan Stores

SEI recently signed a 20-year agreement with DTE Energy to get all of its 160 southeast Michigan locations powered by clean energy, allowing SEI to achieve 100 percent renewable energy for these locations for 20 years beginning in 2025. This will avoid more than 15,000 tons of carbon dioxide emissions annually, or the equivalent of taking nearly 3,000 gasoline-powered passenger cars off the road each year.

SEI set a goal of reaching a 20 percent reduction in CO2 emissions from its stores by fiscal year 2027 and achieved this goal well ahead of target with a 25.8 percent reduction in carbon emissions in fiscal year 2019. After a significant acquisition in 2021, 7-Eleven continued to show progress with a 27 percent reduction in CO2 emissions in 2021. As a result, the company has expanded its goal to achieve 50 percent reduction in carbon emissions by fiscal year 2030. Going forward, 7-Eleven

will continue to promote activities aimed at reducing its environmental impact, including the installation of electric vehicle charging stations and the expansion of stores that use 100 percent renewable energy.

Sandal, which takes the clean and timeless colors of 7-Eleven and splashes them across Crocs’ stylish two-strap sandal. The pair retails for $50.

Limited Time Only

Green Apple Slurpee

Introducing 7-Eleven Crocs

SEI and Crocs teamed up for an exclusive collaboration that reimagines Crocs’ most recognizable clog and sandal silhouettes into bold new style statements that celebrate the convenience retailer, reported Convenience Store News. The 7-Eleven X Crocs collaboration introduced three limited-edition styles, including the height-forward Mega Crush Clog. Each pair features customized Jibbitz charms like 7-Eleven’s brand logo, the fan-favorite Slurpee drink, Big Bite Hot Dog, coffee, and pizza. The styles include:

• The 7-Eleven X Crocs Mega Crush Clog, which features an elevated heel and retails for $110.

• The 7-Eleven X Crocs Classic Clog, which retails for $70.

• The 7-Eleven X Crocs Classic

SEI recently introduced new, limited time only Green Apple Slurpee—a delightful combination of tart and sweet that tastes like a freshly picked apple on a crisp autumn day. This seasonal flavor is now available at participating 7-Eleven, Speedway, and Stripes stores. With 7-Eleven’s 7NOW delivery app, customers can get their Green Apple Slurpee drink delivered right to their door. Also for a limited time, 7Rewards and Speedy Rewards loyalty members who purchase six cups of coffee—including Pumpkin Spice Lattes—Big Gulp, or Slurpee drinks, receive their 7th cup free. And although summer may be over, fans can still enjoy $1 small Slurpee drinks this fall and through the end of the year.

“SEI has signed a 20-year agreement with DTE Energy to get all of its 160 southeast Michigan locations powered by clean energy.”

‘Fuel Your Football’ Promo Kicks Off

Member News

SEI recently launched its “Fuel Your Football” promotion, which rewards customers with the chance of winning exciting prizes and a one-of-a-kind experience inspired by their love of

the football and fútbol (soccer). From September 7 to January 10, 2023, fans have the chance to win the ultimate “football” experience—an all-expense paid trip for two to attend seven games in 11 days across the U.S. One lucky winner will hand pick their itinerary filled with 7 games of either football, soccer or a hybrid of both to attend next year.

To be entered to win, customers can purchase select items through Speedy Rewards and 7Rewards loyalty programs, found in the Speedway and 7-Eleven apps, or via 7NOW delivery. Participating products include fan favorites such as Big Gulp fountain

beverages, Slurpee drinks, pizza and all varieties of Red Bull, Lays, and Monster.

‘Fuel

continued from page 51

the Tulsa area, two years ago and plans to develop more of their urgent care centers in regions that in clude Wichita and Kansas City. • Japanese convenience store Family Mart is looking to further reduce the amount of plastic trash its operations generate by switching from providing customers with plastic forks to offering them wooden chopsticks instead, reported Sora News 24. • Discount retailer Five Below plans to open a record 200 new stores in 2023 and another 160 this year as it continues its Triple Double growth plan to triple its number of stores to 3,500 while dou bling its sales and earnings by the end of 2026, report ed PYMNTS.com. • The U.S. Transportation Depart ment recently approved electric vehicle charging station plans for all 50 states, Washington, D.C., and Puerto Rico covering roughly 75,000 miles of high ways, reported CNBC. All states can now construct a network of EV charging stations along designated al ternative fuel corridors on the national highway sys tem and have access to more than $1.5 billion to help

build the chargers. • Ahead of the Labor Day weekend, convenience chain Circle K offered 40 cents off per gal lon of fuel between 4 and 7 p.m. local time during its Circle K Fuel Day on September 1. Over 3,600 Circle K branded fuel locations across the U.S. participated. • In July, Best Buy began charging 10 cents per bag at all of its nearly 1,000 U.S. electronics stores, and faced with the choice of paying an extra dime at the checkout and informed about the retailer’s waste reduction goals, most Best Buy customers said no to the bags, reported the Star Tribune Plastic bag use at the retailer’s stores dropped 80 percent in September over Sep tember 2021. • Walgreens plans to buy the 45 percent of home health care company CareCentrix that it doesn’t already own in a deal valued at $392 million, reported Forbes. CareCentrix coordinates home health care services and the acquisition is the latest move in the pharmacy retailer’s plan to extend its reach into the health care arena with a focus on consumer ser vices. • The U.S. Food and Drug Administration recently

proposed updated criteria for when foods can be la beled with the nutrient content claim “healthy” on their packaging. This proposed rule would align the definition of the “healthy” claim with current nu trition science, the updated Nutrition Facts label and the current Dietary Guidelines for Americans. • Hard Rock International and Seminole Gaming recently an nounced wage increases for half of its U.S. hotel, casino and cafe workforce totaling $100 million. The new starting wages range between $18 and $21 an hour, the company said, and the increases apply to team members and new hires within 95 job classifica tions—including cooks, housekeepers, security, pub lic space, call center and many more. • With the cost of meat skyrocketing, more consumers are embracing vegetarian diets as increasing costs for groceries bat ter household budgets, reported Bloomberg. Overall, the cost of beef, fish and poultry ballooned by 8.8 per cent year-over-year in August, according to Labor De partment data.

The

Your Football’ promotion rewards cus tomers with the chance of winning a one-of-a-kind experience inspired by their love of the football and fútbol (soccer).”

Member News

Customers can also have the chance to win one-of-a-kind “homegate” kits to help them throw the ultimate watch party. Kits will be given away weekly and include a 65-inch Smart TV, access to a sports streaming service, and a variety of supplies and snacks to enhance your game day (think tents, coolers and tailgate games). Rewards members who purchase participating products in-store or via 7NOW delivery will be entered to win.

7-Eleven, Speedway, and Stripes stores. Available pizza flavors included Cheese, Pepperoni, 7-Meat and even Breakfast pizza. SEI also dropped some Halloween-themed apparel on 7Collection, the brand’s online merchandise shop. Featuring a variety of tees and hoodies, this collection was specially curated for spooky season’s fans and only available through the end of October.

New Smokey Cheddar Sausage

SEI introduced the Smokey Cheddar Sausage for Oktoberfest, the convenience retailer’s take on Germany’s culinary staple with a smokey, savory and cheesy twist. This snack was available at participating 7-Eleven, Speedway, and Stripes stores for a limited time. 7-Eleven’s Smokey Cheddar Sausage was made with real cheddar cheese and a Johnsonville sausage, smoked naturally with hardwood chips, and was the perfect addition to any German-inspired feast. Nestled in a pillowy bun, customers were able to top this wurst with a variety of condiments and toppings in-store—like mustard, melted nacho cheese, fresh onions and more. What’s

more, members of 7Rewards and Speedy Rewards earned 200 bonus points with each purchase of a Smokey Cheddar Sausage.

Halloween BOGO Pizza Deal

SEI offered 7Rewards and Speedy Rewards loyalty members a buy one, get one free deal on any large pizza on October 31, as well as a $5 large pizza all Halloween weekend long. Both offers were available at participating

National Taco Day Deal

On October 4, aka National Taco Day, 7-Eleven invited 7Rewards and Speedy Rewards members to celebrate with 10 mini tacos for just $2. This deal was available at participating 7-Eleven, Speedway, and Stripes stores. These crispy, crunchy tacos have a spicy beef filling made from shredded beef, green chiles, jalapeño peppers, cilantro, spices, and other flavors stuffed into miniature crispy corn tortillas—making it the perfect grab-and-go snack or lunch without the mess. “7-Eleven is here to shell out the good times and appreciate the little things in life, like miniature food items and National Taco Day,” said Vareesha Shariff, 7-Eleven Senior Director of Hot Food. “We love showing appreciation for our customers by providing value in creative ways—like celebrating a fan-favorite holiday with this tasty bite-sized snack.”

United Franchise Owners Of North Florida Holds Its First Trade Show

The United Franchise Owners Of North Florida held its first annual trade show at the Space Coast Convention Center in Cocoa Beach, Florida on September 8. The event was not only attended by local franchisees, but by NCASEF officers and SEI invited guests.

You have the power to change.impact

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

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

Thousands of retailers reached out to legislators in 2020 to enact change.

Increase Your Sales With New

Modelo Chelada Multi-Packs

Constellation Brands has new offerings from the Modelo Chelada Brand Family to increase your alcoholic beverage sales, so place your orders today!

• Modelo Chelada Variety Pack 12oz, 12 pack cans (SLIN#102711) is new to market and features the fruit forward Modelo Chelada flavors that shoppers love in a 12 oz can. Modelo Chelada’s multi-pack offering and first variety pack features fruit-forward flavors Mango y Chile, Naranja Picosa, Limón y Sal, and Piña Picante.

This new Variety Pack will continue to drive incremental brand growth by tapping into new drinking occasions. Nationally, Modelo Chelada is the #1 top dollar sales Chelada brand family, with almost a 50 percent share driving 150 percent of the segment’s growth. Order up and grow your sales and profits by trading your shopper up to the High End Chelada choice that produces higher GP$.

• Modelo Chelada Multi-Pack Limón y Sal 12oz, 12 pack cans (SLIN#107080) is the #1 multipack beer item in 7-Eleven franchised stores and #6 overall New Item with basket dollars per trip of $28.66. The single-serve lime-flavored category grew 18 percent and Modelo drove 80 percent of this growth. Modelo Chelada Limón y Sal is the #3 new beer item with only 26 percent of franchisees giving it a try. Year-to-date, Modelo Chelada Limón y Sal 24z is +34 percent and growing units 27.1 with UPSD 1.7. Order and give Modelo Chelada Limón y Sal a try in your store.

7-Eleven Exclusive OIKOS Apple Pie Parfaits

Danone is excited to bring back for a limited time a 7-Eleven Exclusive item: OIKOS Apple Pie Parfait.

For the store shoppers, including the desire for on-thego options, this parfait will bring nostalgic flavors, and indulgent tastes. Layers of apples, oats, yogurt, cinnamon, and granola topper. This is sure to wake up your customers’ Fall taste buds. This delicious snack is sure to appease the on-the-go consumer looking to start their day off with breakfast containing protein, or for an indulgent snack to help get them through the afternoon. This new yogurt parfait meets consumer needs.

OIKOS Apple Pie Parfait is your customers’ new favorite snack that is a perfect fit for open-air coolers. Delivering convenience store shoppers with a seasonal flavor we all know and love, inspiring joy, and nostalgia during the holiday season. Joining two of the consumers’ favorite brands, 7-Eleven and OIKOS—it’s like having the best of both worlds.

OIKOS Apple Pie Parfait is back as a 7-Eleven exclusive for a limited time.

Hostess Bouncers On-The-Go Delightful Bites

Hostess introduces Bouncers, the only filled cake bite in the Packaged Bakery Category. With a FOD of November 11, 2022, Bouncers are poppable, bite-sized cakes with no mess, have delicious crème filling, are baked with real ingredients, and contain no high fructose corn syrup. Available in two varieties—Cinnamon Donettes Bouncer and Ding Dongs Glazed Chocolate Bouncers. Both have packaging designed for on-the-go snacking.

Hostess Bouncers are new sweet, on-the-go bites that will delight your customers.

Modelo Chelada is the #1 top dollar sales Chelada brand family, with almost a 50 percent share driving 150 percent of the segment’s growth.

FOA Board Meetings

Central Florida FOA

Phone: 207-415-0924

November 9, 2022—General Meeting

February 15, 2023—General Meeting

August 23, 2023—General Meeting

November 14, 2023—General Meeting

Chicagoland FOA

Phone: 847-278-7415

December 8, 2022—Board Meeting

FOA Of Greater Los Angeles

Phone: 619-726-9016

November 15, 2022—Board Meeting

Greater Bay FOA

Phone: 707-344-1070

November 15, 2022—Board Meeting

December 20, 2022—Board Meeting

Metro New Jersey FOA

Phone: 732-910-8854

March 16, 2023—General Member Meeting/Tabletop Show

May 18, 2023—General Member Meeting/Tabletop Show

September 14, 2023—General Member Meeting/Tabletop Show

San Francisco/Monterey Bay FOA

Phone: 408-203-1039

November 9, 2022—Board Meeting

UFOLINY

Phone: 631-793-6348

November 29, 2022—General Membership Meeting

United FOA Of Northern Florida

Phone: 602-614-8083

November 3, 2022—General Meeting

San Diego FOA Celebrates Its Vendor Partners

Approximately 100 franchisees and vendor guests attended the San Diego FOA’s Vendor Appreciation Day, held on October 10 at the Alesmith Brewery in San Diego, California. The event featured small ticket raffles for the vendors, as well as taco and ice cream carts, a cigar bar, and a popcorn table for guests to enjoy. There were also Table-Top Presentations made by several vendors, including Blue Triton Brands, Empire International Food, Goma Wholesale, Gummy Bear Distribution, H-Factor Water, Hometown Restoration, Hershey’s, Mini Melts Ice Cream, PepsiCo, and TAAT Beyond Nicotine.

South Florida FOA

Annual Trade Show & Holiday Party

Doubletree Hilton at Deerfield Beach Deerfield Beach, Florida December 17, 2022 Phone: 954-242-8595

Midwest FOA Trade Show

Donald E. Stephens Convention Center Rosemont, Illinois April 4, 2023 Phone: 847-971-9457

Nor-Cal United 7-Eleven FOAs (Central Valley/Greater Bay/Northern California/ Sacramento Valley)

8th Annual Trade Show Sunrise Event Center Vacaville, California April 18, 2023 Phone: 707-344-6287

Nor-Cal United 7-Eleven FOAs (Central Valley/Greater Bay/Northern California/ Sacramento Valley) 8th Annual Charity Golf Tournament Hiddenbrooke Golf Club Vallejo, California April 19, 2023 Phone: 707-344-6287

San Francisco/Monterey Bay FOA Trade Show

Paradise Ballrooms Banquet Hall & Event Center Fremont, California April 26, 2023 Phone: 408-203-1039

Central Florida FOA Charity Golf Tournament Orange County National Golf Center & Lodge Winter Garden, Florida May 3, 2023 Phone: 207-415-0924

Central Florida FOA Trade Show

DoubleTree by Hilton Hotel Orlando at SeaWorld

Orlando, Florida May 4, 2023 Phone: 207-415-0924

Eastern Virginia FOA Annual Charity Golf Sleepy Hollow Golf Course Suffolk, Virginia May 11, 2023 Phone: 407-683-2692

Eastern Virginia FOA Annual Trade Show Hilton Garden Inn Suffolk Riverfront Suffolk, Virginia May 12, 2023 Phone: 407-683-2692

Midwest FOA Charity Golf Cantigny Golf Club Wheaton, Illinois June 6, 2023 Phone: 847-971-9457

Metro New Jersey FOA Annual Golf Tournament Venue TBD June 7, 2023 Phone: 732-910-8854

Metro New Jersey FOA Annual Tradeshow Venue TBD June 8, 2023 Phone: 732-910-8854

Eastern Virginia FOA South Carolina Trade Show

The River Place

Fort Mill, South Carolina June 21, 2023 Phone: 757-506-5926

Detroit FOA Trade Show Holiday Party

Venue TBD November 17, 2023 Phone: 248-766-9002

Metro New Jersey FOA Holiday Party/Tabletop Show Venue TBD November 18, 2023 Phone: 732-910-8854

NCASEF BOARD MEETINGS

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

National Coalition Affiliate Meeting

Westin San Diego Gaslamp Quarter San Diego, California November 15-16, 2022

National Coalition Board Of Directors Meeting

Westin San Diego Gaslamp Quarter San Diego, California November 17-18, 2022

FOA EVENTS

Chicagoland FOA

Holiday Trade Show

Venue TBD

November 10, 2022 Phone: 847-278-7415

San Diego FOA Christmas Party Coronado Community Center (Nautillus Room)

Coronado, California December 2, 2022 Phone: 619-713-2411

National Coalition Affiliate Meeting

The Westin New Orleans New Orleans, Louisiana March 6-7, 2023

National Coalition Board of Directors Meeting

The Westin New Orleans New Orleans, Louisiana March 8-9, 2023

National Coalition Affiliate Meeting

Marriott Resort San Juan & Stellaris Casino San Juan, Puerto Rico May 15-16, 2023

National Coalition Board of Directors Meeting

Marriott Resort San Juan & Stellaris Casino San Juan, Puerto Rico May 17-18, 2023

National Coalition Board of Directors Meeting

Caesars Palace Las Vegas, Nevada July 29-30, 2023

NCASEF 47th Annual Convention & Trade Show

Caesars Palace Las Vegas, Nevada July 30-August 2, 2023

National Coalition Board of Directors Meeting

CHyatt Regency San Francisco San Francisco, California November 7-8, 2023

National Coalition Board Of Directors Meeting

Hyatt Regency San Francisco San Francisco, California November 9-10, 2023

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

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

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

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

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

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

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