Avanti September/October 2022

September/October 2022

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Overcoming System Obstacles To Improve Profitability Communication & Teamwork Are Key Working On The Challenges Support Durbin’s Efforts To Lower Swipe Fees A Decrease In Gross Profit On Merchandise Change Kids’ Health. Change The Future.

Reduce Harm On Nicotine Products The Value Of A Self-Inspection Program

7 - E L E V E N

F R A N C H I S E E S

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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)

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(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)

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AVANTI SEPTEMBER | OCTOBER 2022

May/June

2022

T H E

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F R A N C H I S E E S

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

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We Are More

mittee Reports

Back Injuries Overexertion/

Register Toda y!

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

2 Affiliate The Spring 202 ctory Member Dire Page 34

THE VOICE OF 7-ELEVEN FRANCHISEES

Contents

The Fall 2022 Affiliate Member Directory Page 31

17

Change Kids’ Health. Change The Future.

28

Texas FOA Donates To Swim Across America

By Children’s Miracle Network Hospitals

30

19

Working On The Challenges

7-Eleven Fundraising Campaign For CMN Hospitals

43

Florida FOAs Step Up During Hurricane Ian Recovery

51

UFOLINY Annual Golf Classic Benefits Cooley’s Anemia Foundation

By Sukhi Sandhu, NCASEF Chairman

23

Support Durbin’s Efforts To Lower Swipe Fees

By Joe Rossi, NCASEF Executive Vice Chair

53

Anheuser-Busch & 7-Eleven Hold Wholesaler Roundtable Meeting

25

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

54

California Franchisee Gives Back To Community

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

56

San Diego FOA Members Spend A Day At The Racetrack

Take A Walk—The Value Of A Self-Inspection Program

61

United Franchise Owners Of North Florida Holds Its First Trade Show

64

San Diego FOA Celebrates Its Vendor Partners

27

By John Harp, CSP, ARM—Risk Engineering Consultant,

By Ali Haider, Michigan FOA President

Save The Date!

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

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.

PA RT M

EN

Reduce Harm On Nicotine Products Rather Than Banning Them DE

29

TS

Mitsui Sumitomo Insurance Group

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

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

Legislative Update.......39 SEI News...................57 Vendor Focus.....62 FOA Board Meetings.....64 FOA Events.....................66 AVANTI SEPTEMBER | OCTOBER 2022

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Member News

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

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 retailers have held these spots since 2015, with 7-Eleven’s crown dating back even further. 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-million agreement with Couche-Tard for nearly 50 locations in the Oklahoma City market; and a $220-million pact with Pilot Co. for 40 locations that strengthened its position in Tennessee and Kentucky.

All told, the top 10 account for a com-

“7-Eleven is No. 1 on the Convenience Store News Top 100 list with 12,702 stores.”

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.

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

Rehan Hashmi

SEI Turns To Tech To Improve Daily Operations

Teeto Shirajee

SEI has launched a search for artificial intelligence- and augmented reality-powered solutions to help simplify its store operations and improve the customer 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 technology partners that can help it “save time and reduce task load.”

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

Nick Bhullar

The strength of an independent trade association lies in its ability to promote, protect and advance the best interests of its members, something no single member or advisory group can achieve.

The independent trade association can create a better understanding between its members and those with whom it deals.

National Coalition offices are located in Ceres, California.

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

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

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

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

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

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

The National Coalition Office

AVANTI SEPTEMBER | OCTOBER 2022

Joe Rossi

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

continued on page 14

12

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

April J. Key GRAPHIC DESIGNER lirpayek@gmail.com

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

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

AVANTI SEPTEMBER | OCTOBER 2022

13

Member News continued from page 12

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

FTC Investigating Visa & Mastercard The Federal Trade Commission is investigating 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 networks. The networks acknowledged an FTC probe in regulatory filings in recent years.

In recent months, the FTC expanded its focus to routing challenges that stem from the networks’ security tokens. It couldn’t be determined if the investigation is a new probe or part of the previous one. A Justice Department 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 whether 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 transaction when it is handled by a different network. 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 increased the value of earnings from its North American convenience operations, reported continued on next page

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

aondigital.com/en-us/7eleven/ 14 AVANTI SEPTEMBER | OCTOBER 2022

Member News continued from previous page

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

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

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

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

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 Crescontinued on page 38

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

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

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

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.

Give Today!

CMNHospitals.org

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 “When we ensure our to address the most urgent children can lead healthy, needs in your community, fulfilling lives, we foster the while also preparing and inventors, artists, leaders, and planning for tomorrow. With your support, we can change families of tomorrow.” kids’ health to change the future.

Children’s hospitals are on the frontlines when it comes to protecting Rounding Up In-Store the health of future generations. But For CMN Hospitals they can’t do it alone. We are committed During P8 (November 2, 2022-January to serving our neighbors to meet their 10, 2023) this year, customers can everyday needs. So together, we can donate to the local children’s hospital build a better tomorrow. through Children’s Miracle Network Children’s Miracle Network Hospitals Hospitals at point-of-sale. The campaign (CMN Hospitals) is proud to be the is supported with signage in the P8 National Coalition of Associations of sales kits. The signage includes the local 7-Eleven Franchisees’ charity of choice. member hospital logo, so you, your NCASEF and local FOAs are raising associates, and customers know which critical funds for children’s hospitals local children’s hospital donations are across the U.S. to help fulfill their supporting. most urgent needs. We make all this 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

“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.”

“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.”

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!

AVANTI SEPTEMBER | OCTOBER 2022

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AVANTI SEPTEMBER | OCTOBER 2022

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.

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,

“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.”

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

“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.”

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 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 continued on page 20

AVANTI SEPTEMBER | OCTOBER 2022

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Working On The Challenges continued from page 19

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

“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.”

20

supporting several legislative “The key to successfully resolving measures on the federal level that will help widen all of these issues is open and honest communication—not only between the labor pool, such as one that gives retirees relief from NCASEF, SEI and vendors, but also Social Security penalties for amongst franchisees.” 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 Your NCASEF leadership is committed more foreign workers via the H2C visa to resolving all issues so we can focus on program and Ukrainian workers program. increasing sales and profits. Whether Rising credit card swipe fees is becoming it’s store safety, credit card swipe fees, or a very big problem, so we’ve partnered increased operational expenses, we’re with SEI’s Government Affairs team to working to address all of them. And the key visit our representatives in Washington, to successfully resolving all of these issues D.C. recently and ask them to support is open and honest communication—not two bi-partisan bills that will lower swipe only between NCASEF, SEI and vendors, fees by bringing competition to the credit but also amongst franchisees. That’s why card processing market. The House I and the other NCASEF officers travel bill, the Credit Card Competition Act, across the country to attend as many local would require banks to allow credit card FOA events as possible—to meet and talk transactions to be processed over at least and listen to franchisees so we can bring two unaffiliated card payment networks. your system issues to SEI’s attention and The Senate version of the bill would also help resolve them. require that credit cards to be processed Before I sign off, I would like to over at least two unaffiliated networks— acknowledge and thank everyone who Visa or Mastercard plus a network such as united to help out after Hurricane Ian tore NYCE, Star or Shazam. We plan to keep through Florida in late September. Great the pressure on our elected officials to kudos to everyone working together, from make sure these bills are passed so we can franchisees and local FOA leadership, to get some relief from credit card fees.

SEI’s Facility Maintenance and Operations The pin pad issue, which was making and suppliers and vendors. It was truly life difficult at the store level, is being inspiring to see how the 7-Eleven family addressed. After expressing concerns came together to not only help the stores over the faulty devices, SEI committed impacted by the storm, but to support the to ordering brand new pin pads for our communities and first responders, as well. 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 SUKHI SANDHU with Item Master they are encouraged to CAN BE REACHED AT bring it to the IT department’s attention 855-444-7711 or sukhi.sandhu@ncasef.com for resolution.

AVANTI SEPTEMBER | OCTOBER 2022

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AVANTI SEPTEMBER | OCTOBER 2022

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

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

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

FOODSERVICE

MERCHANDISING

PRIVATE LABEL

© 2022 McLane Company, Inc. All rights reserved.

TECHNOLOGY

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 “A group of lawmakers between a rock and a hard place. in the U.S. House These companies are double dipping. and Senate, on both Not only are they automatically able sides of the aisle, to make more money off swipe fees introduced the Credit due to inflation, but they also do so by directly increasing the fees themselves.

Card Competition Act, You couldn’t ask for a clearer example of which would require highway robbery. the largest U.S. banks It’s not just my business that is suffering. to offer other networks The convenience store industry at large for processing credit lost out on $13 billion to swipe fees in 2021, while the average 7-Eleven store transactions.” pays an average of $85,000 each year in these fees alone. Many businesses have found themselves at the complete mercy Senator Dick Durbin is one of the lead of credit card businesses, opting to go sponsors of the legislation and should be “credit card only,” which increases the applauded for his efforts to help small financial pain. businesses at such a difficult economic It’s frightening to consider that I may time. The entire Illinois not be able to congressional delegation— “Washington must restore support the particularly those representing community competition in the credit the Chicago area—should the same way card industry or else Visa follow Senator Durbin’s lead I once have and Mastercard may drive and support this measure. due to swipe my business—and others In all of my years of business, fees. In prior across the country— I’ve been able to withstand years, I’ve straight into the ground.” the worst of circumstances— donated to from shoplifting incidents to both my local school district and Lurie the COVID-19 pandemic. But runaway Children’s Hospital, but that may be swipe fees are a new serious challenge more difficult this year and next due to and one that may be near impossible these added costs. to overcome. Washington must restore Congress is attempting to clamp competition in the credit card industry down on unregulated swipe fees and or else Visa and Mastercard may drive restore competition within the credit my business—and others across the card industry. A group of lawmakers country—straight into the ground. in the U.S. House and Senate, on both sides of the aisle, introduced the Credit Card Competition Act, which would JOE ROSSI require the largest U.S. banks to offer CAN BE REACHED AT 312-501-4337 or joer@ncasef.com other networks for processing credit transactions.

AVANTI SEPTEMBER | OCTOBER 2022

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© 2022 McLane Company, Inc. All rights reserved.

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.

“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.”

“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.”

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.

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 continued on page 26

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25

A Decrease In Gross Profit On Merchandise Outweighed By Growth In Gross Profit On Fuel continued from page 25

merchandise category for SEI, but it does any order will be directed “While such loyalty programs are certainly disclose that data for Seven-Eleven Japan: for fulfillment, (b) when, ubiquitous at restaurants and convenience gross margin for fast food and daily food on what basis and in what stores across the nation … any positive for the first half of 2022 were 37.2 percent amount refunds will be impact on franchisee gross margin or net and 34.4 percent, respectively, compared granted to customers, profit is neither clear nor assured.” to gross margin for processed food of 39.8 (c) specifications for percent. And of particular note is that the proprietary bags and rate of more than 47 percent. Delivery sales overall merchandise gross margin for the packaging, the cost of which must be totaled $112 million in the second quarter of SEJ stores was 31.9 percent, compared to SEI borne by the franchisee, (d) standards for 2022. stores at 33.3 percent. Does this mean that determining whether a franchisee is fulfilling The 2019 and later franchise agreements emphasizing a category with lower gross the orders in a “prompt and timely manner,” purport to give SEI broad discretion to margin (not to mention higher labor costs) (e) the price is charged to customers for all design and require franchisees to participate will cause the overall gross margin of the U.S. orders, and (f) the designation of payment in either third party delivery services or stores to drift downward? delivery provided by the The Group Management franchisee directly. Section “The 2019 and later franchise agreements Strategy Presentation states 17(b) of the franchise that proprietary products— purport to give SEI broad discretion to design agreement states that the which now number more franchisee is responsible for and require franchisees to participate in than 900—will yield higher the cost of these delivery gross margin, but few either third party delivery services or delivery programs, which could include details are provided. The provided by the franchisee directly.” the need to employ additional projection is that private personnel and acquire and brand products will generate $2.1 billion in processor companies, which may charge insure multiple motor vehicles. It also states sales in 2025, or double such sales in 2020. higher fees than in store sales. that the franchisee’s delivery area is not 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 26

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

AVANTI SEPTEMBER | OCTOBER 2022

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

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.

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

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

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.

• 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.

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

•

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?

• 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. continued on page 28

AVANTI SEPTEMBER | OCTOBER 2022

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TAKE A WALK—THE VALUE OF A SELF-INSPECTION PROGRAM continued from page 27

• • • • •

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?

“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.”

•

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.

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AVANTI SEPTEMBER | OCTOBER 2022

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

Reduce Harm On Nicotine Products Rather Than Banning Them

BY ALI HAIDER, MICHIGAN FOA PRESIDENT; LEADERSHIP COUNCIL BOARD MEMBER (SMALL BUSINESS ASSOCIATION OF MICHIGAN)

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.

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

unchecked illicit trade in its place.

A recent study by the Mackinac Center for Public Policy “Instead of focusing on uplifting our stated that nearly 20 percent of all cigarettes consumed in communities and helping smokers Michigan were smuggled in move to less harmful options, a as a function of tax evasion menthol ban will punish those who or avoidance, ranking my state 15th nationally. struggle to quit, while devastating Simply, excessive taxes or local businesses in its wake.” a prohibition of certain cigarettes or other flavored nicotine products will As a multi-unit convenience store increase smuggling and embolden owner and vape wholesaler, I have spent further criminal activity. my entire career in retail. Over the years, I Moreover, convenience stores in have watched countless officials wrongly Michigan typically count on tobacco support similar policies, seemingly products for nearly 35 percent of their refusing to learn from the mistakes in-store purchases. This number doesn’t of their colleagues and predecessors. account for the additional purchases The same story continues to unfold— these customers make while visiting our forced prohibitions take away regulated stores. Put simply, these businesses are products from small businesses, fueling not prepared to handle the substantial

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

“There is a solution to help consumers quit smoking, and it’s known as Tobacco Harm Reduction (THR).” 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 continued from page 30

AVANTI SEPTEMBER | OCTOBER 2022

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Reduce Harm On Nicotine Products Rather Than Banning Them continued from page 29

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

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AVANTI SEPTEMBER | OCTOBER 2022

2022

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.

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

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

Altria Group Distribution

Atkinson-Crawford Sales Co.

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

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

James Duke

Butch Henderson

Anheuser-Busch, Inc.

Bang Energy

13142 Terlingua Creek Drive Frisco TX 75033 601-209-5667

1600 North Park Dr Weston FL 33326 786-390-2043

James Allred

Anayansi Ramirez

james.allred@anheuser-busch.com

anayansi.ramirez@bangenergy.com

James Spencer

Aon Risk Services

Accel Entertainment

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

Barbot Insurance Services

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

Teresa Radtke

Tonya Rosales

140 Tower Drive Burr Ridge IL 60527 630-280-6119

AriZona Beverages

teresar@accelentertainment.com

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

Doreen Higney

Aspire Brands Kyle Kulhanek

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

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

randy.watkins@advantagesolutions continued from page 32

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31

2022

AFFILIATE MEMBERS continued from page 31

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

Danone North America

Fiji Water

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

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

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

Stacey Rivas

Chobani

DEFY

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

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

Aaron Steinbach

Bennett Mark

Coca-Cola

D.G. Yuengling and Son

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

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

Congo Brands

Don’t Quit

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

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

Myrna Hawkins

Franklyn Williams

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

Karoline Las

Kirk Hardwick

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

Crossmark/Johnson & Johnson

Ferrara Candy

264 Everest St Grand Junction CO 81503

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

Lauren Pecoraro

lauren.pecoraro@crossmark.com

32

Todd Mares

AVANTI SEPTEMBER | OCTOBER 2022

Taylor Condon

Patrick Haas

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@greenteamworldwide.com

Happy Dad Hard Seltzer Sam Shahidi

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

continued on next page

Heineken USA

In Motion Design

222 W Las Colinas Blvd, 1675E Irving TX 75039 949-599-6105 paquino@heinekenusa.com

7314 Madison Street Paramount CA 90723 562-537-6898

Paul Aquino

Amir Norouzi

anorouzi@in-motion-design.com

Hershey Company

Johnsonville Sausage

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

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

Samantha Priest

Hostess Brands Jackie Lawing

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

Eugene Rech

JUUL Labs Lisa Lee

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

IDG Wine & Spirits

Kellogg’s

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

One Kellogg Square Battle Creek MI 49016 331-703-4511

Rodolfo Rubalcava

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

Christina Quintana

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

2022

AFFILIATE MEMBERS continued from previous page

McLane Company Inc.

L.A. Libations

Nick Bullard

Daniel Stepper

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

LifeMade Products

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

MegaMex Foods/ Hormel—Don Miguel

Colt Bearden

Todd Ginley

Liquid Death

Mela Water

6375 Lansdale Road Fort Worth TX 76116 817-538-8693 Colt.Bearden@lifemadeproducts.com

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

Rachel Ridenour

Alina Segura

LTS

Mike’s Hard Lemonade Co.

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

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

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

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 continued from page 36

AVANTI SEPTEMBER | OCTOBER 2022

33

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AVANTI SEPTEMBER | OCTOBER 2022

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Vicky Chamoy 24-oz. Can

AVANTI SEPTEMBER | OCTOBER 2022

35

2022

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@monsterenergy.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

Morinaga America

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

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

Payality Powered

by Payroll People

Mother Parkers Tea & Coffee

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

Raymond Gates

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

Bettye Smith

PepsiCo, Inc.

Marla Daudelin

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

Perfetti Van Melle

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

Scott Swanson

Napjitsu Inc.

Pladis

Austin Allen

109 Stratford Reserve Place Austin TX 78746 813-777-2044 austin@napjitsu.com 36

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

Bryan Baker

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

AVANTI SEPTEMBER | OCTOBER 2022

Promotion In Motion, Inc.

Stewart’s Enterprises

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

5800 Heron Bay Lane McKinney TX 75070 916-622-4188 ralph.talamantez@stewartspiked.com

Scott Abajian

Ralph Talamantez

Red Bull North America

Storck USA

35 Red Oak Drive Coatesville PA 19320 717-286-6478

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

Amanda Pomorski

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

Tony Harper

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 continued on next page

Turning Point Brands

Vita Coco

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

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

George Cooper

Twang Partners

Vixxo Corporation

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

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

Heath Chapman

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

2022

Tom Puntoompoti

AFFILIATE MEMBERS continued from previous page

Regina Coleman

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/.

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.

AVANTI SEPTEMBER | OCTOBER 2022

37

Member News continued from page 15

SEI Senior VP Among 2022 Top Women In Convenience

High Attendance At 2022 NACS Show

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 industry program that spotlights the integral role women play in convenience retailing and celebrates individuals across retailer, distributor and supplier businesses for outstanding contributions to their companies and the industry at large, according to Convenience 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 integration of Speedway locations following their acquisition, including installing LEDs in the stores to contribute to the company’s overall CO2 reduction goal.

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 organization 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 technology, 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.

“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.”

38

C-Stores Filling The Gap Between Larger Grocery Trips Data from point-of-sale company National Retail Solutions (NRS) reveals that consumers are using convenience stores as a “gap fill” in between larger grocery shopping 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 momentum in convenience stores. Packaged ramen is outselling the total gum category and has the same velocity as PepsiCo’s Ruffles potato

AVANTI SEPTEMBER | OCTOBER 2022

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

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

Inflation Hits Four-Decade High U.S. consumer inflation excluding energy and food accelerated to a new four-decade 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 consumer 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

continued on page 41

Member News Legislative Update Congressional Bills Seek To Reduce Swipe Fees There are a pair of complementary bipartisan 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 Competition 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 Mastercard credit cards to allow transactions to be processed over at least two unaffili-

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

The legislation proposes an open marketplace for credit card processing in which retailers could choose which payment network to use to handle a transaction. 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 bipartisan 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 networks like American Express or Discover could also be the second network, but not networks supported by foreign governments like China’s UnionPay. The banks would decide which two networks to enable 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 October 14 drawing of the $494 million Mega Millions jackpot, and both were sold in 7-Eleven stores, according 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 company 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 designed for shoppers receiving government assistance, reported CNN Business. The shopfront features SNAP EBT on Amazon, information about the Amazon Layaway program, and spotlights discounts and coupons 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 recently. The store clerk managed to record the entire episode 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 increase its fresh foods sales, reported Bloomberg. The company’s fresh food business represents just 11 percent 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 Business. 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 reform that they say could ease labor shortages and lower food prices, reported NBC News. The farm opercontinued on page 41

AVANTI SEPTEMBER | OCTOBER 2022

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Member News continued from page 38

ators say the Farm Workforce Modernization Act will provide them with a stable reliable workforce by creating a path to citizenship for undocumented agricultural workers 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 better compete with leader Walmart on prices, reported Reuters. The mega merger between the No. 1 and 2 standalone grocers in the United States will bring under one roof nearly 5,000 stores that include banners such as Albertsons’ 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, retailers 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 companies 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 Security recipients will get an 8.7 percent cost-of living increase in their benefits in 2023—the largest in more than 40 years, reported the Associated Press. The adjustment 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, reported 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

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 services.

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 programs don’t want them, because reasonable consumers wouldn’t assume the word “recyclable” means there are local facilities that accept the material, reported 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 summer 2021. The packages included the chasing arrows symbol around the resin identification code (RIC) and use of the word “recyclable.” The expanded polystyrene plate packaging included the instructions “Check your local municipality for recycling guidelines.”

The woman sued on October 1, 2021, seeking class-action status in a case alleging violations of the Illinois Consumer Fraud and Deceptive Business Practices Act. She sought an injunction blocking 7-Eleven from selling the products with the recyclability labeling, 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 survive. He dismissed allegations that the recyclability claims were deceptive because 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, reported CSP Daily News. The locations include 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 redevelopment, and other sites are less than one-half acre. Store sizes range from under canopy kiosks to 6,900 square feet.

Thirty-five of the sites are fee-owned properties, and the remaining are leaseholds. SEI is selling all of the sites without convenience store branding. The company has retained NRC Realty & Capital Advisors LLC, Chicago, to coordinate the sale.

“SEI has 73 gas stations and convenience stores up for sale, all without convenience store branding.” continued on page 43

AVANTI SEPTEMBER | OCTOBER 2022

41

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• •

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•

Mark SKU’s as Carried

•

Print and place tags on shelf

•

Set to POG Recommendations

Item

SLIN

Pack/Size

SRP

GP%

GP$

Chocolate Cupcakes

175408

6/3.17 oz

$2.59

60%

$1.56

Top 10

Frosted Donettes®

174320

6/3 oz

$2.59

60%

$1.56

Powdered Donettes®

171248

6/3 oz

$2.59

60%

$1.56

Twinkies®

175407

6/2.7 oz

$2.59

60%

$1.56

Must Have to Drive Profit

Crunch Donettes®

174346

6/4 oz

$2.59

60%

$1.56

Iced Vanilla Zingers®

171259

6/3.81 oz

$2.59

60%

$1.56

Coffee Cake

171270

6/2.89 oz

$2.59

60%

$1.56

Glazed Donettes®

171374

6/3.7 oz

$2.59

60%

$1.56

Devil’s Food Zingers®

171133

6/3.81 oz

$2.59

60%

$1.56

Orange Cupcakes

171343

6/3.38 oz

$2.59

60%

$1.56

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

SS_HBS077_1022

Member News continued from page 41

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 drivers (60 percent) say gas prices are the main reason why they drive less than pre-pandemic, 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 because of a job. Most drivers (59 percent) say they seek out a favorite gas station or convenience retail chain. While the most commonly 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 beginning 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-

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 report 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 expectations 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

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.

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.

AVANTI SEPTEMBER | OCTOBER 2022

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Member News continued from page 43

adults in households said it has been somewhat or very difficult to cover usual household expenses. This may be a push factor for jobseekers to increase their wage expectations while job searching.

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

Retail Shrink Climbed In 2021 Retail shrink, when taken as a percent-

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 decrease from the last two years but comparable to the five-year average of 1.5 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 pandemic resulted in an increase in overall risk for their organization. Retailers specifically cited an increase in violence (89.3 percent), continued on next page

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app allows shoppers to quickly and easily accumulate 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 marijuana 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 checkout at Los Angeles International Airport Terminal 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 Amazon’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 gasoline-powered vehicles by 2035, in a move officials say is aimed at cutting down on greenhouse gas emissions and getting more electric vehicles on the road, reported the Wall Street Journal. • Midwest big box retailer Meijer recently introduced a new brick-and-mortar store concept—coined Meijer Grocery— that it said will provide convenience for customers looking for a simplified shopping experience. The company said its Meijer Grocery stores will range from 75,000 to 90,000 square feet, and will include several grocery departments 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 Grocery Business. The store brought on additional associates to manage the carts and explain to continued on page 49

continued from previous page

shoplifting (73.2 percent), ORC and employee 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 percent) and dining out less (74 percent), according to a new national consumer survey released by NACS. These reflect an acrossthe-board increase since the February survey 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 specific 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 friendly 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 reveals that inflation has helped boost sales of private labels, with 78 percent of Americans now buying store-brand products and 65 percent saying that most items are the same when you take away the packaging 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, including 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 appetizers, and about 50 percent are cutting back on sweet snacks or ice cream.

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

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 Online Grocery Landscape Report. The new study shows that consumer grocery shopping behavior continues to evolve alongside the ongoing acceleration of digital commerce and innovation in traditional retail. Other key findings of the report include: • 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 continued on page 47

AVANTI SEPTEMBER | OCTOBER 2022

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AVANTI SEPTEMBER | OCTOBER 2022

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Member News continued from page 45

retailers they shop in-store, thus providing 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 presents an opportunity to re-engage the shopper in store.

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

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Shoppers Buying Fewer Groceries To Save Money

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A survey by data intelligence firm Morning Consult reveals that 72 percent of shoppers are purchasing fewer items because of concern over elevated grocery inflation, reported 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 inflation 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 consumers doing so rarely declined by 8 percentage points.

Other tactics cited by consumers to mitigate high grocery pricing include compare prices (83 percent), buy generic or store brands (81 percent), use coupons (65 percent), buy less meat (64 percent), shop at multiple stores (63 percent) and buy in bulk (62 percent). continued on page 49

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Member News

continued from page 39

Legislative Update

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

“A 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.”

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 processors 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 become 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, cardcontinued on page 55

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AVANTI SEPTEMBER | OCTOBER 2022

Member News

continued from page 45

continued from page 47

customers how to use them. • Alimentation Couche-Tard and Millat Convenience Ltd, a subsidiary of the Millat Group, recently announced a Master License Agreement that will bring Circle 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 October 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 Journal. 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, according 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 recovery efforts after Hurricane Ian tore a path of destruction through the Sunshine State on September 29. Wawa stores in Florida also provided free coffee and fountain beverages to all first responders 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 percent reported by the U.S. Bureau of Labor Statistics, 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. electric 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 continued on page 51

Unsurprisingly, lower-income households 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 fewer 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 annual income of $100,000 or more.

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 inflation to hover around this level for the rest of 2022. Next year, the rate of food inflation is expected to moderate, but not necessarily 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 contributed 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 supplies. Even if some of these situations stabilize, it will take a while for those changes to reach consumers.

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

Shopping Habits Changing With Inflation Pressures With the increased pressure on household 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, leading them to pivot towards more restricted spending. At the beginning of the year, consumers surveyed by NielsenIQ intended to continue cutting back on mini splurges like dining out, gym memberships, and out-of-home entertainment. Their spending 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 continue 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 grocery expenses, which supports the recent sales surge in this sector.

C-Store Jobs Viewed Favorably Nearly three in four consumers (72 percent) say they have a favorable opinion of convenience store jobs, according to a new continued on page 53

AVANTI SEPTEMBER | OCTOBER 2022

49

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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 autonomous robotic smoothie kiosk. Located at the rest area in Williams, California 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-controlled eCart that helps streamline order fulfillment and pickup for online grocery purchases. The eCart, called Trace Grocery, allows employees 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 national network of EV charging stations powered by bp pulse at Hertz car rental locations. The agreement between the two companies also involves bp managing Hertz’s charging infrastructure and the customization 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 intelligence 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 leaving 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 restaurants because their menus are more aligned with Gen Z’s food preferences 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 million to 34 states and territories in a settlement following a two-year investigation into the company’s marketing and sales practices, reported CNN. The investigation found that Juul deliberately marketed its products to minors, even though e-cig sales to children are illegal. • Walmart plans to acquire Boston-based grocery robotics company Alert Innovation 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, celebrating 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.

continued on page 58

AVANTI SEPTEMBER | OCTOBER 2022

51

6-11 SKUs

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CANS SOLD PER STORE PER WEEK

RETAILERS WHO CARRY THE FULL ZYN PORTFOLIO

SELL 5.7x MORE CANS *

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

FOR TRADE PURPOSES ONLY | ©2022 Swedish Match North America LLC *Source: Nielsen scan data through 5/29/2022 continued from page 58

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AVANTI SEPTEMBER | OCTOBER 2022

Member News continued from page 49

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 infrequent customers.

Customers also support many of the positive community-focused attributes associated with convenience stores: • 86 percent say convenience stores are good first jobs for those looking to enter the workforce.

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

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 percent of shoppers would seek out their favorite 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 loyalty 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

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

continued on page 54

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.

AVANTI SEPTEMBER | OCTOBER 2022

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Member News continued from page 53

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 automatically added to their virtual cart, and anything 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.

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AVANTI SEPTEMBER | OCTOBER 2022

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.

Member News

continued from page 48

Legislative Update CALIFORNIA

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

Despite this proliferation and improvements to technology to accommodate 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 finalization of the Regulation II changes. Leon Buck, vice president for government relations, banking and financial services for the National Retail Federation, said the change modernizes the rule to reflect the evolution of the e-commerce landscape.

• Santa Clara County—The County of Santa Clara is increasing the penalties 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 tobacco products, including menthol cigarettes and e-liquids, to anyone regardless of age.

Tobacco Legislative & Regulatory Update Here are the latest proposals and approved changes to tobacco legislation and regulation at the local, state and federal levels, as reported by Convenience Store News.

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.

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

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

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

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Member News

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Legislative Update

smoking in Atlantic City’s nine casinos remains stalled with no vote scheduled. The first public airing of the issue was to take place in September at a major gambling conference, 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 fermented malt beverage and wine retailer license to allow convenience stores, grocery 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 groceries, 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 capacity 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 released a proposal that could pave the way for regulators and courts to reclassify 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.

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

The companies have argued that flexible schedules are attractive to workers, pointing to surveys showing the popularity 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, including whether the work is an “integral” part of the employer’s business. The goal is to protect workers from being classified improperly while providing consistency 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

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

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.

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Member News continued from page 57

‘Fuel Your Football’ Promo Kicks Off

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.

The ‘Fuel Your Football’ promotion rewards customers with the chance of winning a one-of-a-kind experience inspired by their love of the football and fútbol (soccer).” continued on next page

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the Tulsa area, two years ago and plans to develop more of their urgent care centers in regions that include 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 doubling its sales and earnings by the end of 2026, reported PYMNTS.com. • The U.S. Transportation Department recently approved electric vehicle charging station plans for all 50 states, Washington, D.C., and Puerto Rico covering roughly 75,000 miles of highways, reported CNBC. All states can now construct a network of EV charging stations along designated alternative fuel corridors on the national highway system and have access to more than $1.5 billion to help

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build the chargers. • Ahead of the Labor Day weekend, convenience chain Circle K offered 40 cents off per gallon 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 September 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 services. • The U.S. Food and Drug Administration recently

proposed updated criteria for when foods can be labeled with the nutrient content claim “healthy” on their packaging. This proposed rule would align the definition of the “healthy” claim with current nutrition science, the updated Nutrition Facts label and the current Dietary Guidelines for Americans. • Hard Rock International and Seminole Gaming recently announced 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 classifications—including cooks, housekeepers, security, public space, call center and many more. • With the cost of meat skyrocketing, more consumers are embracing vegetarian diets as increasing costs for groceries batter household budgets, reported Bloomberg. Overall, the cost of beef, fish and poultry ballooned by 8.8 percent year-over-year in August, according to Labor Department data.

Member News continued from previous page

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.

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

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

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.”

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0821-8408-0504

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8402-4560-0098

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0821-8400-4333

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 impact change.

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

Scan the QR Code and take action now!

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

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

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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.

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.

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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.

FOA Board Meetings Central Florida FOA

Greater Bay FOA

Phone: 207-415-0924

Phone: 707-344-1070

San Francisco/Monterey Bay FOA

November 9, 2022—General Meeting

November 15, 2022—Board Meeting

Phone: 408-203-1039

February 15, 2023—General Meeting

December 20, 2022—Board Meeting

November 9, 2022—Board Meeting

Metro New Jersey FOA

UFOLINY

Phone: 732-910-8854

Phone: 631-793-6348

March 16, 2023—General Member Meeting/Tabletop Show

November 29, 2022—General Membership 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

May 18, 2023—General Member Meeting/Tabletop Show September 14, 2023—General Member Meeting/Tabletop Show

Phone: 619-726-9016 November 15, 2022—Board 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.

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United FOA Of Northern Florida Phone: 602-614-8083 November 3, 2022—General Meeting

FOA EVENTS 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

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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

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

Venue TBD June 7, 2023 Phone: 732-910-8854

AD INDEX Anheuser-Busch.....................................................10

Kellogg’s....................................................................4

AON...................................................................14, 15

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

Bic USA.............................................................13, 50

Lucas Oil.................................................................48

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

McLane.............................................................22, 24

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

Mondelez................................................................21

Danone....................................................................18

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

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

Pabst........................................................................60

Dreyers Ice Cream..................................................47

Sierra Nevada Brewing.........................................63

Glanbia.................................................................5, 40

Swedish Match (ZYN)...........................................52

Hostess.....................................................................42

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

Ignite International................................................44

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

InComm..................................................................46 AVANTI SEPTEMBER | OCTOBER 2022

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NCASEF BO AR D MEETINGS National Coalition Board meetings are scheduled one per quarter.

Vendors interested in sponsoring a Board meeting should contact John Riggio, JR Planners, at 262-394-5518 or johnr@jrplanners.com.

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

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

National Coalition Affiliate Meeting The Westin New Orleans New Orleans, Louisiana March 6-7, 2023

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

National Coalition Board of Directors Meeting

NCASEF 47th Annual Convention & Trade Show

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

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

National Coalition Affiliate Meeting

National Coalition Board of Directors 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

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

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

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United FOA Of Northern Florida Annual Holiday Party

San Francisco/ Monterey Bay FOA Annual Christmas Party

Space Coast Convention Center Cocoa Beach, Florida December 2, 2022 Phone: 602-614-8083

Hilton Garden Inn Sunnyvale Sunnyvale, California December 3, 2022 Phone: 408-203-1039

Southern California FOA Holiday Party

Midwest FOA Holiday Showcase

Universal Studios Universal City, California December 3, 2022 Phone: 818-357-5985

Venue TBD Rosemont, Illinois December 7, 2022 Phone: 847-971-9457

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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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