NACS Magazine March 2024

Advancing Convenience & Fuel Retailing

MARCH 2024 ONCE IN A LIFETIME A solar eclipse hits next month TOP 100 C-STORES A new retailer cracks top 10

Fservissueiced THE COOKIE BOOM Retailers find success

FOOD PACKAGING Sustainability and stackability

NAVIGATING RECALLS Being prepared is key

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ONTENTS NACS / MARCH 2024 FEATURES

26 Anatomy of a Food Recall

Data can drive foodservice success.

Convenience retailers need a plan to address food and beverage product recalls.

56 In the Bag

37 The Top 100

What does the food packaging industry look like in 2024—and where does it go from here?

These companies combine to account for nearly 45,000 stores.

70 Get Snack Rich

44 Lifting the In-Store

This Q&A is brought to you by Rich Products.

Convenience Retailers

Experience

This article is brought to you

by Cenex.

After $150 million in approved capital loan for in-store renovations, Cenex is not slowing down any time soon.

On the Cover: Brian Hagiwara/Brian Hagiwara; NiglayNik/Shutterstock

48 Guided by Numbers

Rich Products offers retailers high-quality food with minimal labor.

72 Total Eclipse of the Mart

62

Convenience stores are prepping for a wave of eclipse chasers.

How Sweet a Scent Fresh-baked cookies offer impulse buys and image boosters for c-stores.

STAY CONNECTED WITH NACS @nacsonline facebook.com/nacsonline instragram.com/nacs_online

Subscribe to NACS Daily—an indispensable “quick read” of industry headlines and legislative and regulatory news, along with knowledge and resources from NACS, delivered to your inbox every weekday. Subscribe at www.convenience.org/NACSdaily.

linkedin.com/company/nacs NACS MARCH 2024 1

ONTENTS NACS / MARCH 2024

DEPARTMENTS 06 From the Editor 08 The Big Question 10 NACS News 18 Convenience Cares 20 Inside Washington

The Biden Administration delays its menthol bans but the threat remains.

24 Ideas 2 Go

The husband-andwife team behind Livi’s Market created a place where they love to shop.

80 Cool New Products 84 Gas Station Gourmet Rock’s Grill & Pizzeria serves everything from quiche to freeze-dried fruit.

86 Category Close-Up

Strategic planning and diverse menus spice up foodservice sales figures.

96 By the Numbers IT’S A FACT

25.57%

The percent of in-store foodservice sales in 2022.

CATEGORY CLOSE-UP PAGE 86

PLEASE RECYCLE THIS MAGAZINE 2 MARCH 2024 convenience.org

The presence of an article in our magazine should not be permitted to constitute an expression of the association’s view.

/ MARCH 2024 EDITORIAL

NACS BOARD OF DIRECTORS

Jeff Lenard V.P. Strategic Industry Initiatives (703)518-4272 jlenard@convenience.org

CHAIR: Victor Paterno, Philippine Seven Corp. dba 7-Eleven Convenience Store

Ben Nussbaum Editor-in-Chief (703) 518-4248 bnussbaum@convenience.org Lisa King Managing Editor lking@convenience.org Leah Ash Assistant Editor lash@convenience.org CONTRIBUTING WRITERS Terri Allan, Amanda Balthazar, Shannon Carroll, Sara Counihan, Jay L. E. Ellingson Ph.D., Sarah Hamaker, Al Hebert, Pat Pape, Elizabeth Presnell Esq., Shawn K. Stevens Esq., Emma Tainter DESIGN Imagination www.imaginepub.com

OFFICERS: Lisa Dell’Alba, Square One Markets Inc.; Annie Gauthier, St. Romain Oil Company LLC; Chuck Maggelet, Maverik Inc.; Don Rhoads, The Convenience Group LLC; Brian Hannasch, Alimentation Couche-Tard Inc.; Varish Goyal, Loop Neighborhood Markets; Lonnie McQuirter, 36 Lyn Refuel Station; Charlie McIlvaine, Coen Markets Inc. PAST CHAIRS: Don Rhoads, The Convenience Group LLC; Jared Scheeler, The Hub Convenience Stores Inc. MEMBERS: Chris Bambury, Bambury Inc.; Tom Brennan, Casey’s; Frederic Chaveyriat, MAPCO Express Inc.; Andrew Clyde, Murphy USA; George Fournier, EG America LLC Terry Gallagher, Gasamat Oil/Smoker Friendly;

Raymond M. Huff, HJB Convenience Corp. dba Russell’s Convenience; John Jackson, Jackson Food Stores Inc.; Ina (Missy) Matthews, Childers Oil Co.; Brian McCarthy, Blarney Castle Oil Co.; Tony Miller, Delek US; Natalie Morhous, RaceTrac Inc.; Jigar Patel, FASTIME; Robert Razowsky, Rmarts LLC; Kristin Seabrook, Pilot Travel Centers LLC; Babir Sultan, FavTrip; Richard Wood III, Wawa Inc. SUPPLIER BOARD REPRESENTATIVES: David Charles Sr., Cash Depot; Kevin Farley, Impact 21 STAFF LIAISON: Henry Armour, NACS GENERAL COUNSEL: Doug Kantor, NACS

ADVERTISING Stacey Dodge Advertising Director/ Southeast (703) 518-4211 sdodge@convenience.org Jennifer Nichols Leidich National Advertising Manager/Northeast (703) 518-4276 jleidich@convenience.org Ted Asprooth National Sales Manager/ Midwest, West (703) 518-4277 tasprooth@convenience.org

PUBLISHING Stephanie Sikorski Vice President, Marketing (703) 518-4231 ssikorski@convenience.org Nancy Pappas Marketing Director (703) 518-4290 npappas@convenience.org

COME TOGETHER. DO MORE. Join us at conveniencecares.org

Logan Dion Digital Media and Ad Trafficker (703) 864-3600 ldion@convenience.org

NACS SUPPLIER BOARD CHAIR: David Charles, Cash Depot CHAIR-ELECT: Vito Maurici, McLane Company Inc. VICE CHAIRS: Josh Halpern, JRS Hospitality/BCIP dba Big Chicken; Bryan Morrow, PepsiCo Inc.; Kevin LeMoyne, Coca-Cola Company PAST CHAIRS: Kevin Farley, Impact 21; Brent Cotten, The Hershey Company; Drew Mize, PDI MEMBERS: Tony Battaglia, Tropicana Brands Group; Patricia Coe, Advantage Solutions; Jerry Cutler, InComm Payments; Jack Dickinson, Dover Corporation; Matt Domingo, Reynolds; Mark Falconi,

Oberto Snacks Inc.; Ramona Giderof; Mike Gilroy, Mars Wrigley; Danielle Holloway, Altria Group Distribution Company; Jim Hughes, Krispy Krunchy Foods LLC; Kevin Kraft, Q Mixers; Jay Nelson, Excel Tire Gauge; Nick Paich, GSTV; Sarah Vilim, Keurig Dr Pepper RETAIL BOARD REPRESENTATIVES: Scott E. Hartman, Rutter’s; Chuck Maggelet, Maverik Inc.; Tom Brennan, Casey’s STAFF LIAISON: Bob Hughes, NACS SUPPLIER BOARD NOMINATING CHAIR: Kevin Martello, Keurig Dr Pepper

NACS Magazine (ISSN 1939-4780) is published monthly by the National Association of Convenience Stores (NACS), Alexandria, Virginia, USA. Subscriptions are included in the dues paid by NACS member companies.

Subscriptions are also available to qualified recipients. The publisher reserves the right to limit the number of free subscriptions and to set related qualifications criteria.

Subscription requests: nacsmagazine@convenience.org POSTMASTER: Send address changes to NACS Magazine, 1600 Duke Street, Alexandria, VA, 22314-2792 USA. Contents © 2023 by the National Association of Convenience Stores.

Periodicals postage paid at Alexandria VA and additional mailing offices.

1600 Duke Street, Alexandria, VA 22314-2792

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UP FRONT FROM THE EDITOR

Foodservice First … and Frontline First

6 MARCH 2024 convenience.org

My guess is that same Kum & Go today has plenty of foodservice options … and more than one person working at a time to help keep all those options viable. As c-stores evolve, the workforce stays front and center.

Officially, this is the foodservice issue, but unofficially we can consider it the labor issue. Behind every foodservice idea, there’s the question of how to execute that idea at the store level.

Not surprisingly, Weigel’s is thinking hard about that, and how to make sure its corporate office is in sync with its team members. After all, they might all share the same ride on a snowy day.

Check out The Big Question on page 8.

Other highlights from this issue include our annual list of the top 100 retailers (page 37); a story on everyone’s favorite indulgence, cookies (page 62); and a story on navigating food recalls (page 26) … and there’s lots of other great content that you’ll enjoy in this packed issue.

Ben Nussbaum Editor-in-Chief

Behind every foodservice idea, there’s the question of how to execute that idea at the store level.”

DNY59/Getty Images

I

talked with Beth Hoffer, Weigel’s vice president of operations and foodservice, for The Big Question this issue. After we were done talking about foodservice, she shared an amazing story with me.

During the intense snowstorms that hit Tennessee in mid-January, the Weigel’s corporate team got new jobs: giving rides to team members who were struggling to get to their stores.

I love everything about that. I think it says a lot about Weigel’s culture, but it also speaks to an industry that understands that the hourly workforce is at the absolute heart of any c-store’s success.

With the news that the Kum & Go brand is possibly being retired by new owner Maverik, I’ve been thinking a lot about the six or so months that I was a c-store hourly worker, standing behind the register at a Kum & Go back when I was 19. It was a vibrant store. Foot traffic was high. But foodservice was almost nonexistent. If I got hungry in the middle of a shift, my two options were a microwavable hamburger or a microwavable burrito. I don’t think we even had fountain beverages or a roller grill. With minimal foodservice came minimal staffing requirements: More often than not, I was the only employee in the store.

TO P

B R A ND S FOR T H E W I N

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UP FRONT THE BIG QUESTION

How is Weigel’s innovating its foodservice program for success now and in the future?

One thing we’ve done in terms of the menu itself is to go after Gen Z and Millennial customers more.

They’re very passionate about social issues and so are we. For our chicken program, we chose to partner with a company called Springer Mountain Farms. They’re well-known in our area for high-quality, top-end chicken. They have humanely treated, no antibiotics, no hormones, 100% vegetarian noanimal-byproduct feed, grown-in-theU.S.A. chickens.

It says volumes that a c-store can have that chicken. And we love that we are able to talk about that on our digital menus, that we have got this really good product that nobody else can say they’ve got.

We’ve spent the last year actually paring down our menu. The food team said, instead of trying to be everything for everybody, let’s decide what we want to be really good at.

And we decided we want to be really good at pizza and really, really good at chicken.

We pared down our SKUs and went from having around 60 SKUs to now in the 25 range for lunch and dinner.

The best part is we saw double-digit growth in sales. And it’s because when you think about innovation, that’s great, but it’s got to be executed.

We must think about our operations partner who has to make those things happen. If you can streamline and pick a couple of avenues to innovate within, I think it’s more successful.

8 MARCH 2024 convenience.org

same thing for all of our equipment and cleaning processes. We are careful to make sure that we keep it as simple as possible so that it’s easily executable, because we want to make sure that no matter which Weigel’s you go into, you get the same pizza, the same chicken tenders.

When you look at a lot of operations, there’s a big disconnect between the food team and the operations team. How do you get the two of them to work successfully together?

We actually started a new program for all of our district leaders. Moving forward, anyone who is going to be in the district  Elizabeth Hoffer, vice president food service, leader position must first Weigel’s be a food supervisor for a period of time before The worst thing you can do is to moving into the district leader position. have innovation that you cannot Our leadership made the decision execute, and so it fails. We’re to be food first. It is a strategic goal. constantly figuring out how do you To make sure that happens, we have innovate and keep it simple enough even done a few things to change to where your team members can the structure of our organization. In execute, but also have enough change the past, you would have had food and fun to draw in your customers. It rolling up under operations. I am the is really all about balance. vice president of food, and recently As we continue to grow we know I took the operations department. that training is key to innovation. We This was a strategic move to ensure wrote SOPs for every product that that food stays top of mind and that we make in our store. And now we’re we continue to have the mindset that in the process of doing the exact food is first.

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UP FRONT NACS NEWS

Every day, nearly 40 million Americans fill up their gas tanks, and odds are it’s at a convenience store. After all, c-stores sell an estimated 80% of all fuel.

There is arguably no product that consumers think more about on a daily basis (especially the prices!)—but at the same time so misunderstand.

For nearly two decades, NACS has published online Fuels Resource Center updates to help tell the industry’s story and answer common questions that consumers have about the makeup of the industry and how fuel is sold. It also includes plenty of facts and figures and even some fun tangents that tie into the history of fueling. (Look for shout-outs to Col. Sanders, Steve Martin and Sammy Hagar in the fueling history section.)

NACS shares the resources with reporters and public opinion leaders to 10 MARCH 2024 convenience.org

help build awareness about the importance of our industry. Feel free to share elements with reporters and customers in your market.

The topic of fueling and gas prices will continue to increase during the annual spring transition to summer-blend fuel, and you can be sure that the presidential candidates will refer to gas prices in their talking points. Be sure to also check out related content on convenience.org that addresses hot-button issues, like the blog post “Does the President Control Gas Prices?”

You can find the Fuels Resource Center at convenience.org/fuels. And look for more fuels insights in the April 2024 issue of NACS Magazine, which will debut findings from the latest NACS Consumer Fuels Survey.

Have a suggestion about topics to feature? Contact Jeff Lenard at jlenard@convenience.org.

phive2015/Getty Images

NACS Fuels Resource Center

Meet the 2024 NACS Masters of Convenience NACS congratulates the eight 2024 NACS Master of Convenience award recipients. The class was honored at the invitation-only NACS Leadership Forum in February.

“Being able to attend NACS executive education programs has helped me develop skills that have been instrumental in making me a better leader. The skills I learned in a very short time would have taken me months to learn in a standard college setting.,” said Robert Hensman, Love’s Travel Stops. “I am extremely humbled to have been able to be a part of such a great learning opportunity.”

The NACS Master of Convenience designation acknowledges leaders from around the globe who have invested in their personal leadership development and attended three or more NACS Executive Education programs.

“I am thrilled to say that I have earned my Master’s in Convenience.

My motives for pursuing were to learn as much as I could about convenience, meet a cross section of my clients and improve my professional acumen,” said Jason Zelinski, NIQ. “[The program] allowed me to hear firsthand from convenience experts how they are tackling their business and create relationships across the globe. My career has grown

Bryan Gildenburg, founder and CEO of Confluencer Commerce, spoke at Cornell last August.

from a single-client manager to vice president of our most important c-store clients, and I can honestly say that the NACS Executive Education program contributed to my success.”

Here are 2024 Masters of Convenience who are shaping the future, proactively and powerfully: • Mr. Darren Comeau, Shell International Petroleum Company Limited • Mr. Nathaniel Doddridge, Casey’s • Mr. Drew Graham, Love’s Travel Stops • Mr. Robert Hensman, Love’s Travel Stops

THRIVR Adds TikTok to Platform

• Ms. Anna Kruszko, Shell International Petroleum Company Limited • Mr. Kamol Samiev, Mega Saver • Mr. Temur Samiev, Mega Saver • Mr. Jason Zelinski, NIQ Learn more about the NACS executive education programs at www.convenience.org/education/ NACS-executive-education, or contact Brandi Mauro, NACS education program manager, with questions at bmauro@convenience.org or (703) 518-4223.

THRIVR, powered by marketing platform SOCi, is the all-in-one digital marketing platform that simplifies the management of your store’s digital listings, reviews and social media presence.

This January, THRIVR added TikTok to its platform to help retailers expand their reach to this growing audience. Having a single platform to manage all your social media presence allows for easy content management and distribution.

THRIVR is taking the guessing out of when, where and how to show up digitally. As AI buzz is ever increasing, retailers today are excited to leverage this technology to simplify the management of their reputation.

This allows for a unique, engaging and optimized digital search.

Learn how to simplify the management of your digital presence at www.convenience.org/thrivr, or contact Jen Johnson at jjohnson@ convenience.org.

NACS MARCH 2024 11

UP FRONT NACS NEWS

Member News Michael Weston, former NACS board member, passed away in December at age 96. Weston began as a director with Michael Weston Misselbrook and Weston, Plc in 1949, then served as managing director and chairman. He retired from Brookton 2000 Limited in 2012. Weston was the first UK board member of NACS. Natalie Morhous was promoted to CEO of RaceTrac Inc. by its board of directors. Morhous succeeds Max McBrayer, Natalie Morhous with whom she partnered on RaceTrac’s business decisions and strategy development since February 2019. Morhous is a third-generation leader in the family-owned business.

BP announced Murray Auchincloss will serve as BP chief executive officer. Auchincloss, who has been interim CEO Murray since SeptemAuchincloss ber 2023, will continue as a member of the BP board. Before becoming interim CEO in September 2023, Auchincloss had been BP’s chief financial officer since July 2020.

12 MARCH 2024 convenience.org

Delek US Holdings Inc. announced that its board of directors appointed Christine Benson Schwartzstein to Christine Benson serve as an indeSchwartzstein pendent director effective immediately. Benson will stand for election at the company’s 2024 annual meeting of stockholders. Benson has nearly 20 years of experience in natural resources risk management, capital markets and investing. She is currently a director of Apollo Infrastructure Company LLC as well as Talen Energy Corporation.

SUPPLIERS

GSP announced Tom Custer now serves as vice president of business development. Custer’s background Tom Custer spans more than 30 years in brand development, design services and marketing strategy, a combination that provides him with a vast knowledge of creating unique and relevant brand experiences in retail spaces.

Hoshizaki America Inc. announced the appointment of Allan Dziwoki as the company’s new president.

Having joined Allan Dziwoki Hoshizaki in February 2022, Dziwoki brings over two decades of invaluable experience in the HVAC industry to his new role.

Hoshizaki America announced Sandra Raffe as the vice president of refrigeration—a new role for the organiSandra Raffe zation. Raffe will bring foodservice industry experience and over 15 years of experience at organizations such as Franke Systems, Middleby Corporation and H.D. Sheldon & Co. Paytronix announced that Eric Steele now serves as the company’s chief financial officer. Steele joins Eric Steele Paytronix from Snap One, where he most recently served as senior vice president of finance and corporate development. Prior to Snap One, Steele was a growth equity investor at Catalyst Investors in New York City.

KEEP NACS IN THE KNOW— send in your news to news@convenience.org.

DNY59/Getty Images

RETAILERS

THE ART OF MERCHANDISING

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HOOKS | COOLER AND SHELF MERCHANDISING | LABELING WWW.TRIONONLINE.COM | 800-444-4665 ©2015 Trion Industries, Inc.

NACS MARCH 2024 13

UP FRONT NACS NEWS

New Members

NACS welcomes the following companies that joined the Association in December 2023. NACS membership is companywide, so we encourage employees of member companies to create a username by visiting www.convenience.org/createlogin. All members receive access to the NACS Online Membership directory and the latest industry news, information and resources. For more information about NACS membership, visit convenience.org/membership.

HUNTER CLUB MEMBERS

Lil’ Drug Store Products, Inc. Cedar Rapids, IA ww.lildrugstore.com BeatBox Beverages Austin, TX www.beatboxbeverages.com

Blackhawk Network Pleasanton, CA www.blackhawknetwork.com Bridor USA Vineland, NJ www.bridor.com

Mar Company Group Miami, FL MicroSalt Inc. West Palm Beach, FL www.microsaltinc.com

CheckSammy Addison, TX www.checksammy.com

Shenzhen Cosun Sign SmartTech Co. Shenzhen, Guangdong, China www.cosunsign.com

RETAILERS

Churchill Container Lenexa, KS www.churchillcontainer.com

Sidari Artisan Brands Cleveland, OH www.sidaribrands.com

Breeze Thru Markets, LLC Cary, NC www.breezethru.com

Death Wish Coffee Saratoga Springs, NY www.deathwishcoffee.com

Simple Inc. Santa Ana, CA www.simplevapeandcbd.com

JFM Inc. Flowood, MS

Del Real Foods Irvine, CA

Skyline USA Sanford, FL

Oilfield Outpost LLC Houston, Texas

Dottie Foods Deerfield Beach, FL

West Fork Market Inc. Clarksville, TN

Spangler Candy Company Bryan, OH www.spanglercandy.com

Genomma Lab Houston, TX

Avondale Food Stores Jordan Station, ON, Canada www.avondalestores.com

Good Boy Vodka Niles, MI www.goodboyvodka.com

SUPPLIERS

Guangzhou Orio Technology Co. Guangzhou, China www.globalorio.com

Zevia Encino, CA www.zevia.com

Aboveo Services Norcross, GA www.aboveo.com Agriculture Grant Solutions West Des Moines, IA www.agriculturegrantsolutions. com

Jolt Software Lehi, UT www.jolt.com

Alex Co.

kpm desserts Davie, FL www.kpmdesserts.com

AmeriChicken Cape Girardeau, MO www.americhicken.com

Leaf Brands LLC Newport Beach, CA www.leafbrands.com Maintain IQ Inc. West Covina, CA www.maintainiq.com

14 MARCH 2024 convenience.org

Spunky Pup Orono, MN www.spunkypup.com Super Scientific Laboratories Hialeah Gardens, FL www.fugginvapor.com The Ryl Company www.drinkryl.com Venbrook Insurance Services www.venbrook.com Virginia Label Co. Richmond, VA Wow Bao Chicago, IL www.wowbao.com WSP International Limited Markham, ON, Canada

NACS MARCH 2024 15

UP FRONT NACS NEWS

Calendar of Events 2024

MARCH NACS Convenience Summit Asia March 05-07 | Signiel Seoul Hotel Seoul, Korea NACS Day on the Hill March 11-13 Washington, D.C.

APRIL NACS State of the Industry Summit April 03-05 | Hyatt Regency O’Hare Chicago Rosemont, Illinois Conexxus Annual Conference April 28-May 02 | Live! By Loews Arlington Texas

NACS Human Resources Forum March 18-20 | Hyatt Regency Jackson Riverfront Jacksonville, Florida

JUNE NACS Convenience Summit Europe June 04-06 | Intercontinental Barcelona Barcelona, Spain JULY NACS Financial Leadership Program at Wharton July 14-19 | The Wharton School University of Pennsylvania Philadelphia, Pennsylvania

NACS Executive Leadership Program at Cornell July 28-August 01 | Dyson School, Cornell University Ithaca, New York OCTOBER NACS Show October 07-10 | Las Vegas Convention Center Las Vegas, Nevada NOVEMBER NACS Innovation Leadership Program at MIT November 03-08 | MIT Sloan School of Management Cambridge, Massachusetts

For a full listing of events and information, visit www.convenience.org/events.

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CONVENIENCE CARES

Rutter’s Donated $1.8 Million in 2023 The company hit a new high mark for its charitable donations.

R

utter’s and Rutter’s Children’s Charities donations reached a new high of $1.8 million in 2023.

“The combined efforts of Rutter’s and Rutter’s Children’s Charities to support our communities is incredible, and we’re hopeful 2024 will be an even bigger year for charitable giving,” said Chris Hartman, vice president of fuels, advertising and development.

The donations went to a variety of organizations. Among the donations was $100,000 to Pennsylvania Wounded Warriors. “We hold immense gratitude for those who have selflessly served to protect our nation,” said Hartman.

Pennsylvania Wounded Warriors pro-

18 MARCH 2024 convenience.org

vides financial assistance to veterans and their families to help pay for housing, utilities, transportation, medical expenses and other expenses.

Another program was 100k for the Holidays. Rutter’s Children’s Charities donated $25,000 to four groups that have a focus on benefiting children.

This year’s recipients were Blair Regional YMCA, Centre County Youth Service Bureau, Chambersburg Fire and Police and York County Children’s Advocacy Center.

At the end of the year, Rutter’s held its annual toy drive. Employees donated a total of 596 toys, which were split between the Salvation Army and the

Mount Alto Fire Department. Rutter’s Children’s Charities matched $10 for each toy that was donated, meaning both organizations received 298 toys and $2,980.

Much of Rutter’s Children’s Charities giving was fueled by its annual golf outing. In 2023, the event raised $900,000.

Rutter’s charitable giving in 2023 also included over $390,000 to the Central PA Food Bank’s Retail Donation Program in the form of prepared subs, sandwiches, bakery items, milk and tea products.

Some of Rutter’s other annual charitable efforts include its charity cannister program and $550,000 in Educational Improvement Tax Credit donations.

In The Community

2 CF Altitude LLC, operating as Alta Convenience and Petro-Mart, announced it raised more than $300,000 for the Make-A-Wish Foundation.

Stores situated across Colorado, New Mexico, Kansas, Nebraska, Wyoming, Missouri and Illinois collectively raised funds. The funds raised in each state directly benefited that state’s Make-A-Wish chapter.

Learn more at www.conveniencecares.org.

THE GATE FOUNDATION ANNUAL CHARITY GOLF TOURNAMENT RAISES $215,000

WEIGEL’S CELEBRATED ITS FAMILY CHRISTMAS EVENT 1 Tennessee-based Weigel’s held its annual Weigel’s Family Christmas event. The 2023 event was held in collaboration with the Salvation Army and The Boys and Girls Club of East Tennessee. The program enables kids in need to have a jubilant Christmas experience. The kids are chaperoned by volunteers for a day of fun, starting with breakfast, then a shopping spree and ending with a hot lunch. The program started with six children and has expanded to 200 children and over 400 volunteers annually.

MAVERIK RAISES OVER $573K FOR FEEDING AMERICA

ALTA CONVENIENCE AND PETRO-MART RAISE $300,000 FOR MAKE-A-WISH

Every year, the convenience retail industry dedicates billions of dollars to advancing the futures of individuals and families in our communities.

The NACS Foundation unifies and builds on NACS members’ charitable efforts to amplify their work in communities across America and to share these powerful stories.

3 The GATE Foundation, the philanthropic affiliate of GATE Petroleum Company, raised $215,000 to benefit Camp Boggy Creek at its annual charity golf tournament.

Monies were raised through fundraising activities as well as through sponsorships and registrations for the 300-player event. Funds from the two-day event will support a free summer camp for children with serious illnesses.

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4 Maverik raised $323,254 for Feeding America through its annual Round Up Your Change campaign. Maverik’s donations will be distributed to 16 Feeding America partner food banks across the 12 Western states where Maverik operates. The funds are in addition to Maverik’s direct donation of $250,000, which was made in October to kick off the campaign.

NITTANY MINITMART RAISES FUNDS FOR LOCAL ANIMAL SHELTERS 5 Nittany MinitMart, with locations throughout central and north-central Pennsylvania, raised over $18,000 for area animal shelters. Shoppers supported animal shelters in their community by rounding up to the nearest dollar at checkout.

Funds raised will help support ongoing efforts to provide care, shelter and medical attention to animals in need.

NACS STUFFS BASKETS FOR LOCAL FOOD DRIVE 6 NACS participated in a food drive to support New Hope Housing, a local nonprofit dedicated to ending the cycle of homelessness. NACS staff donated food items, stuffed and wrapped baskets, and then delivered them to the local charity. NACS donated $25 gift cards for each basket made.

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NACS MARCH 2024 19

INSIDE WASHINGTON

The Battle Over Menthol Persists 30%

Menthol cigarettes make up this amount of total cigarette sales nationally.

21%

Menthols account for this percentage of the cigarette marketplace in California— even after they have been banned.

20 MARCH 2024 convenience.org

The Biden Administration delays its bans but the threat remains.

BY ANNA READY BLOM

O

ne of the biggest policy threats keeping retailers up at night is the looming ban on menthol cigarettes and flavored cigars. In October, the Food and Drug Administration sent the final rules that would put these bans into effect to the White House for review, the last stop before new rules are implemented. It was expected that the administration would move swiftly to finalize the rules, but at the end of the year, the White House said it needed more time for review. Staunchly opposed to the bans, NACS has pushed the White House to stop the bans alto-

gether, arguing that they would lead to unintended consequences that would be detrimental to communities and dwarf any public health benefit.

UNINTENDED CONSEQUENCES Prohibition doesn’t mean products disappear. Just look at the 1920s. With the prohibition of alcohol came an influx of bootlegging and criminals taking advantage of Americans who wanted to continue imbibing. The prohibition of these tobacco products will see similar criminal enterprising. Today, menthol cigarettes account for 30% of cigarette

New Africa/Shutterstock

Key Figures

The Status of the HFC Ban BY PAIGE ANDERSON With an industry as diverse and ever-changing as the convenience retailing industry, new issues pop up every day. That is especially true when it comes to environmental regulations. As part of the Biden Administration’s climate agenda, two agencies have been busy pursuing rulemakings related to energy efficiency standards and reducing hydrofluorocarbons (HFCs)—the EPA and the U.S. Department of Energy (DOE). HFCs are greenhouse gases used in a wide variety of cooling systems, including refrigerators, air conditioning units in buildings and automobiles, building installation and fire extinguishing systems. And a few of those rulemakings and regulatory efforts will have an impact on the convenience industry.

At the end of 2020, Congress passed the AIM Act, which authorizes the EPA to address HFCs by providing EPA new regulatory authority in three main areas: • Phasing down the production and consumption of listed HFCs. • Managing these HFCs and their substitutes.

• Assisting in the transition to next-generation technologies through sector-based restrictions.

In addition, the Inflation Reduction Act included increased funding to implement the AIM Act and created incentives for competitive grants for new technologies to address HFCs. Further, in 2022, the United States ratified the Kigali Amendment to the Montreal Protocol on

Substances that Deplete the Ozone Layer, which phases down the production and consumption of HFCs by 8085% by 2047.

Along with EPA’s efforts on HFCs, the DOE has been aggressively updating energy efficiency standards for a wide range of technologies and appliances for commercial use and residential use. In 2023 alone, EPA issued 30 proposed or final energy efficiency standards.

While these efforts to improve energy efficiency and the environment are on the whole necessary, as with many well-intentioned policies, it is difficult and complex to implement these proposals. Two key rulemakings from 2023 illustrate this challenge.

In mid-2023, EPA announced a rulemaking on the Phasedown of Hydrofluorocarbons: Management of Certain Hydrofluorocarbons. DOE announced its rulemaking on Energy Conservation Standards for Commercial Refrigerators, Freezers, and Refrigerator-Freezers. Both of these regulatory proposals would have an important impact on convenience retailers, as the convenience industry relies on the use of food refrigeration, HVAC and fire-suppression systems. Any changes in requirements, replacement technologies and availability of equipment not only impact the manufacturers and distributors of these technologies, but also the end users, such as convenience store operators.

In EPA’s rulemaking, many retail groups and

manufacturers expressed concerns over the increased costs and feasibility of many of the new requirements, along with concerns over timelines and logistics of some of these requirements, such as new training and certification requirements.

NACS also submitted comments during the public comment period over concerns with increased costs and concerns over proposed leak detection requirements.

During the DOE public comment period, NACS joined the Food Industry Association to share concerns with the agency that its proposal on creating more stringent standards on commercial refrigeration units had not demonstrated that these new standards would result in significant conservation of energy, be technologically feasible or be cost effective.

Many manufacturers have indicated that in many cases, the proposed standard would require new design elements and technology that is not economically justifiable or feasible. In addition, there were strong concerns shared that the compliance deadlines are unreasonable and do not take into account the efforts underway with EPA’s regulations on implementing the AIM Act. More rulemakings, standards setting, implementation and compliance efforts are expected in 2024. NACS will continue to closely monitor and engage on these issues.

Subscribe to the NACS Daily newsletter for latest news and updates.

NACS MARCH 2024 21

INSIDE WASHINGTON

22 MARCH 2024 convenience.org

WHAT’S NEXT It is unclear when the White House will finalize these bans, but NACS is making every effort to get the administration to withdraw the rulemakings. NACS continues to vocalize its opposition to the White House, the FDA and Members of Congress. In addition, members of the industry can take action via the NACS Grassroots Portal at convenience.org.

If the administration moves forward with the bans, NACS will explore legal options on behalf of the convenience store industry.

ONE VOICE This month, NACS talks to

Ron Rutherford, chief operating officer, Apter Industries Inc.

What does NACS political engagement mean to you, and what benefits have you experienced from being politically engaged?

In my former career, I was a social studies teacher in the Washington, D.C., public school system, educating young adults about what it means to be an active participant in our political process.

Switching to the convenience store industry and attending my first NACS Day on the Hill allowed me to further my participation in a more meaningful way. I look forward to every opportunity to help our amazing industry.

What federal legislative or regulatory issues keep you up at night (with respect to the convenience store industry)?

Anything that prohibits the industry from continuing to grow successfully—whether it be the ever-increasing swipe fees that gouge retailers or how we are going to rebuild our aging highways, roads and most importantly, because I live in Pittsburgh, bridges.

What c-store product could you not live without?

Any potato that is grated and formed into a cylinder: tater tots, Tater Kegs, tater bombs.

New Africa/Shutterstock

sales, while flavored cigars are 50% of cigar sales in convenience stores. With such an established market for these products, many current users will not quit the products or switch to other tobacco products. Instead, they will seek illicit sources for them.

There is a robust illicit tobacco market in the United States, and it is growing.

An influx of goods crosses the border from Mexico, with product often made in China. According to some estimates, as much as 21% of the tobacco products sold in America are purchased through the illicit market. In fact, a recent study in California found that more than six months after a state flavor ban took effect, menthol cigarettes continued to make up more than 21% of the marketplace. Of the discarded packs found, 27.6% were non-domestic products. A portion of these were duty-free cigarettes, including the brand Sheriff, purchased with the intent of taking the cigarettes out of the United States—yet evidence shows they are making their way back into the hands of American consumers.

A federal ban on these products will only bolster the illicit market to the detriment of our communities. As legal products today, menthol cigarettes and flavored cigars are sold by legitimate businesses. Convenience retailers check more IDs a day than TSA. These retailers are investing millions to ensure their associates are conducting proper age verification and preventing minors from accessing these products. Illicit sellers don’t take age into consideration, but often prey on those who are underage, meaning more minors would be exposed to these products.

Convenience retailers only sell tobacco products that have undergone intense regulatory scrutiny by the FDA and are permitted to be on the market under the Tobacco Control Act. Counterfeit cigarettes avoid this scrutiny. The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) states, “While all cigarettes are dangerous and are known to cause disease, counterfeit cigarettes often contain higher levels of tar, nicotine and carbon monoxide than genuine cigarettes, and may contain contaminants such as sand and packaging materials. Counterfeit cigarettes pose a greater health risk to consumers and cost taxpayers millions in lost revenue.” Those people who can no longer purchase these products legally and turn to the illicit market will be exposed to far greater health risks.

These bans would lead to severe economic losses for legal sellers. FDA’s proposals didn’t weigh the true economic impact on businesses selling these products, especially small businesses who aren’t as capable of diversifying. A single convenience store would lose on average an astounding $232,392 in sales annually without these products.

FDA’s proposals didn’t consider losses of sales of non-tobacco products that are purchased along with tobacco products.

Retailers stand to lose sales of the entire basket, not just the tobacco products.

NACS estimates a convenience store would lose $72,285 a year in non-tobacco sundry sales, representing close to 4% of inside sales, should the bans be implemented.

NACSPAC DONORS NACSPAC was created in 1979 by NACS as the entity through which the association can legally contribute funds to political candidates supportive of our industry’s issues. For more information about NACSPAC and how political action committees (PACs) work, go to www.convenience.org/nacspac. NACSPAC donors who made contributions in January 2024 are: Paige Anderson NACS

Robert Griffith Golden Pantry Food Stores, Inc.

Anna Paridee RaceTrac Inc.

Arch “Beaver” Aplin Buc-ee’s Ltd.

Margaret Hardin NACS

Chris Rapanick NACS

Henry Armour NACS

Scott Hartman Rutter’s

Carl Rick Kwik Trip, Inc.

Ted Asprooth NACS

Jeff Hassman PDI Technologies

Ron Rutherford Apter Industries Inc.

Laura Beck NACS

Jessica Hayman NACS

Taha Saleh T. A. Saleh Enterprises Inc.

Lyle Beckwith NACS

Danielle Holloway Altria Group Distribution Company

Brian Sedra Phusion Projects LLC

Chrissy Blasinsky NACS Anna Ready Blom NACS Katie Bohny NACS Jeff Burrell NACS Sajid Chaudhry NSR Petro Services LLC Jenna Collard NACS Gary Dake Stewart’s Shops Kirk Dickerson Dickerson Petroleum Inc. Stacey Dodge NACS John Eichberger Transportation Energy Institute James Forsyth FKG Oil Company Rob Gallo Impact 21 Jayme Gough NACS

Bob Hughes NACS Doug Kantor NACS Leroy Kelsey NACS Brian Kimmel NACS Alicia Landrum NACS Jay Lee NACS Jennifer Leidich NACS Greg Levitan NACS Michael Lindberg CHS Inc. (Cenex) Brandi Mauro NACS Jeff McQuilkin NACS Jay Nelson Excel Tire Gauge LLC Nancy Pappas NACS

Ryan Sheetz Sheetz, Inc. Stephanie Sikorski NACS Nick Stanley Johnson Junction, Inc. Lori B. Stillman NACS Mark Stinde Casey’s General Stores Inc. Jon Taets NACS Linda Toth Conexxus TJ Velasco NACS Nicole Walbe NACS Leigh Walls NACS Don Wasek Buc-ee’s Ltd. William Weigel Weigel’s Stores Inc. Mike Wilson Cubby’s Inc. NACS MARCH 2024 23

IDEAS 2 GO

Name of company: Livi’s Market Year founded: March 2023 # of stores: 1

A Store for Themselves The husband-and-wife team behind Livi’s Market created a place where they love to shop.

BY SARAH HAMAKER Where do you go for gourmet and niche grocery items in a small town? For Livi and Thomas Harlow, it’s their own convenience store. “We didn’t set out to open a convenience store,” said Livi Harlow. “But when we moved from Richmond, Virginia, to Irvington, we wanted access to the food products we could find in Richmond but not in this more rural area.”

When they spotted a vacant Citgo station, the pair partnered with Thomas’s father to create a store they would like to shop in. “The location is right in the heart of town and we figured we could learn the gas side of things while we focused on setting up

24 MARCH 2024 convenience.org

our own gourmet market with classic candies, lottery, soda, snacks, international grocery products, fine wines, beer and fine jewelry,” Livi said.

Because the building had been unused for two years, they updated the exterior and interior with a butcher block checkout counter and stainless steel racks. “I looked to Instagram for inspiration, and decided on a light blue and navy blue color scheme inside and out to reflect the flow of the nearby Rappahannock River,” she said. “We wanted the store to be warm, clean and inviting.”

THE FINER THINGS For the Harlows, stocking the store started out as simply bringing in products they enjoyed. For example, Livi’s Market has a selection of finer wines than would be normal in a convenience store. “Thomas and I have always enjoyed wine, so we have a large wine selection with a chilled wine cooler that has real champagne and rose,” Livi said.

The store carries organic and natural wines, which the Harlows choose through tastings with wine distributors.

The personal recommendation is one they carry throughout the store. “We’ve tried everything in the shop, whether it’s probiotic soda or wine,” she said. “If we carry it, we’ve sampled it because we don’t want to carry something we’re not proud of. As we tell our customers, we would serve every product to guests in our own home.”

A few months ago, Livi decided to add fine jewelry. “We describe Livi’s Market as a gift shop for food, so expanding our jewelry seemed like a natural progression,” she said. Originally the store’s jewelry had a “really approachable price point,” but when customers expressed interest in more gift-type items, she brought in gold and pearl necklaces, among other fine jewelry. “Those have been very popular, especially during

BRIGHT IDEAS

We enjoy explaining our mission and what we’re about while helping them pick up what they need.” the holiday season,” Livi said. “People are always looking for something new and different.”

The Harlows also love supporting small and local artisans and businesses.

“We source from all over, and carry local products too,” Livi said. “Our main goal is to carry products that are ethically and sustainably made, as well as supporting women-, black-, and LGBTowned businesses. We feel very strongly about ensuring our retail operations are in line with this mission.”

A CONVERSATION STARTER Since Livi and Thomas work at the store, they spend a lot of time talking to customers. “Our customers are intrigued when they walk in and see higher-end handbags and jewelry, plus our fine wines and gourmet food, so we enjoy explaining our mission and what we’re about while helping them pick up what they need,” Livi said. “The best thing about being in a small town is having regulars. When they walk through the door, we know their names.”

Locals and visitors stop by to buy items for entertaining, such as premade dips, cheese and crackers, and many Asian, Indian, Japanese and Mediterra-

Since the store opened, Livi’s Market owners Livi and Thomas Harlow have invited other vendors to do popups at their store.

“Especially when there are town events, like a parade, we get a food truck or other local vendor to come in and stay for the day in our parking lot,” she said.

For example, on the Fourth of July, a gourmet sausage vendor set up shop. “This introduces our customers to niche or unusual items while giving us a chance to try new products,” Livi said. “We also love to bring in the people who make the things we carry so they can meet our customers. It definitely gives those products a nice sales boost in our store afterwards, too.”

nean food brands. “These are the types of foods we enjoyed in Richmond, but aren’t readily available here,” Livi said.

While the store doesn’t have its own foodservice yet, the Harlows have partnered with a local chef who prepares grab-and-go dinners for two, sandwiches and dips for carryout at the store.

“We hope those who stop by feel welcomed,” she said. “We want our regulars and visitors to feel like they’re stopping by our house as our guests.”

Sarah Hamaker is a freelance writer, NACS Magazine contributor, and award-winning romantic suspense author based in Fairfax, Virginia. Visit her online at sarahhamakerfiction.com.

Ideas 2 Go showcases how retailers today are operating the convenience store of tomorrow.

To see videos of the c-stores we profiled in 2023 and earlier, go to www.convenience.org/Ideas2Go. NACS MARCH 2024 25

A F O Y M O T A N A

D O O F R Convenience retailers need a plan to address food and beverage product recalls.

IN

the United States, product recalls happen almost daily.

There were about 550 product recalls in 2023, according to the Food Industry Counsel’s Food Recall Reporter, a robust, searchable database of FDA and USDA food product recalls.

In the convenience store space, it’s a good idea to have a plan in place and a team that can take immediate action on recalls. By executing a recall well, retailers can build trust with their customers and show they are looking out for them when it comes to potentially unsafe products.

26 MARCH 2024 convenience.org

kostsov/Getty Images; New Africa/Shutterstock

BY SHAWN STEVENS ESQ., ELIZABETH PRESNELL ESQ., AND DR. JAY ELLINGSON

D CALL E R NACS MARCH 2024 27

PART ONE:

The FDA’s New Era of Smarter Food Safety blueprint, announced in July 2020, outlines four core elements that are intended to create a safer and more digital, traceable food system: • Tech-enabled traceability • Smarter tools and approaches for prevention and outbreak response • New business models and retail modernization • Food safety culture To download the FDA’s blueprint, go to www.fda.gov/food/new-era-smarter-food-safety.

28 MARCH 2024 convenience.org

If a manufacturer does not cover recall expenses and losses, a company’s recall insurance may provide some coverage. ucts used for human consumption, it takes a tremendous amount of time, resources and clear communication (including working with both the company and regulatory officials) to resolve these recalls.

Who Initiates a Recall?

As part of greater food safety awareness and national surveillance, more convenience retailers may find themselves a part of product recalls. Recalls and product withdrawals are typically initiated by the manufacturer, following a determination that a safety or quality issue may exist.

However, in some circumstances, the FDA and USDA may require a retailer to initiate a recall if a product manufacturer does not conduct a voluntary recall on its own.

Once it’s determined a recall or withdrawal is appropriate, the manufacturer is typically responsible for identifying who received the recalled product and for providing notice of the recall or withdrawal to those recipients.

Then, those recipients must, in most circumstances, carry the recall or withdrawal further downstream. In most cases, a retailer will learn about the existence of a recall from its distributor or suppliers.

New Africa/Shutterstock

WHY PRODUCTS ARE RECALLED Food recalls are intended to remove a food or beverage product from the market that may present a food safety risk.

Examples of dangers found in the food include a pathogen (e.g. E. coli, salmonella or listeria); one of the “big nine” undeclared allergens (milk, eggs, fish, crustacean shellfish, tree nuts, peanuts, wheat, soy, sesame); or a foreign object such as metal or plastic.

Product recalls address safety concerns that could injure consumers, while a product withdrawal is less formal and is used to address product quality concerns.

Product withdrawals are typically used to address product quality concerns such as harmless mold or an off color; rancidity or other off flavor notes; minor labeling errors; and variations in sensory attributes. Product withdrawals are often conducted to the wholesale level and do not affect retailers and consumers.

Just about any food can be subject to a recall—from leafy greens to peanut butter and everything in between. Recalls also have the potential to expand. For example, shelf-stable granola bar products have recently been affected by a recall process due to products potentially contaminated with salmonella, according to the maker and the FDA. When this recall was first issued, it largely included granola bars and granola cereals but later expanded to include more products, such as additional cereal products and snack mixes. When any recall involves food prod-

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The company should consider its approach to unaffected but related product.

PART TWO:

PUTTING YOUR RECALL PLAN INTO ACTION If you don’t currently have a recall team in place or your recall plan hasn’t been revisited in some time, start by identifying the stakeholders who would need to be involved if a recall were to happen.

Your recall team should be composed of the relevant internal stakeholders and external consultants as necessary (food safety experts and attorneys, for example), to ensure all areas of the business are involved. External stakeholders may also include federal, state and local regulatory officials. If a gap is identified within the recall team, external resources should be vetted and onboarded to ensure all team members are knowledgeable about the company and its recall process.

The recall plan should include the company’s decision-making framework, including what factors are considered when decisions are made and which team members must approve any decisions prior to execution. For example, the company’s executive leadership may not be involved in most actions in advance of a recall but must be consulted for final approval once a decision to recall a product is made.

Some companies may have more sophisticated plans than others, depending on store count and the foodservice program—and that’s OK. Companies will often have different decision-making frameworks and different triggers for involving certain team members.

Ideally, the recall team should meet outside of a recall scenario to develop a framework for managing any potential future recalls and to ensure team members are trained on their individual responsibilities in the event of a recall.

After developing an initial recall plan, which includes all information about how recall decisions are made and executed, the recall team should conduct a realistic mock recall, where the full process is 30 MARCH 2024 convenience.org

tested in a fictional scenario. Many companies will work with their food safety lawyers or consultants to develop mock recall crisis scenarios. After completing the mock recall scenario, the recall plan should be updated to include learnings and process updates.

In addition, recall team alternates should be identified to ensure each role is represented if the primary recall team member is unavailable. These recall team alternates should be trained the same as the primary team member and should participate in mock recalls to ensure consistency in the company’s recall response.

Federal, state and local regulators can also be a valuable resource when conducting a product recall. However, these relationships should be developed outside of a recall situation to best allow for collaboration with regulators if a recall becomes necessary.

You’ve Been Notified of a Recall— Now What?

If you’ve been notified of a product recall affecting product in your control, you should immediately convene your recall team.

Once the recall team has been convened, it should carefully assess the food safety risk (if any) associated with the recall, as well as the status of the product within the company’s supply chain. Often, product that has not yet reached store shelves can be more easily contained and controlled than product that’s been on shelves for consumers to purchase and consume.

Once the food safety risk is understood and the potentially affected product is identified, the recall team should ensure that the product is pulled from distribution and store shelves. In addition, if the recalled product was processed or repackaged by the company, a press release and notification to FDA is typically necessary to communicate the recall to the public.

kostsov/Getty Images; pidjoe/Getty Images

As product is removed from distribution and store shelves, inventory should be maintained of all actions taken. Specifically, any disposal or destruction of recalled product should be documented comprehensively, as well as the total cost impact of the recall.

In many circumstances, the manufacturer will reimburse affected downstream purchasers of recalled product for costs associated with the recall. This typically requires strong documentation of the company’s actions and losses. If a manufacturer does not cover recall expenses and losses, a company’s recall insurance may provide some coverage.

In addition, regulatory agencies may require documentation confirming that the company took appropriate action after notification of the product recall and destroyed all implicated product. This often is provided to the manufacturer through a recall effectiveness check.

If you receive an effectiveness check, ensure that it is carefully and accurately completed and returned to the manufacturer.

Addressing Unaffected Related Product Often, a manufacturer will only recall a limited amount of product, such as a single lot or product with a single expiration date.

However, in many circumstances, a retailer may have other lots or expiration dates of the recalled product or other products from the same manufacturer.

During a recall, management of these unaffected products should be considered. Typically, this will be a case-by-case determination by the recall team. When considering unaffected related product, the evaluation should consider the risk to the company’s brand from continuing to sell these products, any potential food safety risk associated with the products, the brand’s risk tolerance and the ease or difficulty of pulling only select lots.

It’s a good practice to have the recall team discuss these considerations well in advance of a recall scenario so the brand has a framework for appropriate decision-making when a recall does occur.

Communicating to Customers In addition to pulling recalled products from distribution and store shelves, when should retailers communicate what’s going on to their customers? There are voluntary communications that the recall team should consider.

First, unless the product is processed or repackaged by the company, a press release issued by the retailer is typically not necessary—that will be generated by the product manufacturer. Second, in-store signage, website communications and/or direct customer notifications (i.e., notices provided to loyalty program members) can help ensure that consumers who may have purchased the product are aware of the recall.

Well in advance of a recall scenario, the recall team should discuss the decision framework for when communications are used.

Why? So that when an actual recall occurs, the process is managed seamlessly.

Beyond proactive communications, the company should also be prepared to respond to media questions and customer inquiries and complaints. When addressing inquiries from the media: • Designate a single point of contact who can field questions.

• Ask for the questions to be submitted via email.

• Work with the recall team to prepare appropriate responses.

Customer contacts might happen through the company’s corporate contact information as well as at the store level when a customer learns a product is not available. Typically, customers can be referred to the product’s manufacturer for questions, but the recall team should determine how in-store associates should respond to any inquiries.

Manufacturers often direct consumers to return recalled product to the point of purchase for a refund. Retailers should therefore ensure that in-store associates are trained and prepared to dispose or return product and issue any recall-related refunds. Further, retailers should consider an appropriate refund method that accurately tracks the refunds so the amount can be recovered from the manufacturer.

NACS MARCH 2024 31

PART THREE:

KWIK TRIP CASE STUDY

By Dr. Jay Ellingson At Kwik Trip, we strive to always do what is right.

Everyone has a role to play in keeping food safe.

If you are in the business of production, distribution and/or the sale of food products through foodservice, there are always possibilities of risks within your food system.

How you decide to mitigate those food risks should be part of your company’s mission, culture and leadership strategies. With inherent risks in the food supply chain (especially after Covid) comes the possibilities of either formal recalls or quality withdrawals.

First, formalize a recall team that comprises all aspects of your organization through internal and external resources as necessary, ensuring each business operation is represented: legal, procurement, production, distribution, transportation, customer relations, communications and retail, as applicable.

Second, build strong relationships with your local, state and federal regulatory agencies. These relationships are a critical part of your recall program—if these agencies understand your food system and how you mitigate risk prior to any formal recall or quality withdrawal events, they are in better position to collaborate with your company during times of food emergencies or recalls.

At Kwik Trip Inc., our recall team maintains strong relationships with our local, state and federal regulatory officials and public health teams.

Our teamwork approach allows us, through education and collaboration, to maximize opportunities that proactively mitigate risks within our food supply chain. By being proactive, we have strengthened our recall team and our recall and withdrawal plans, especially when events happen in the food supply chain.

We have experienced both recalls and withdrawals in the areas of raw produce, undeclared allergens and foreign materials in food ingredients and finished products. Through these experiences, we have learned the right thing to do when confronted with a recall or withdrawal event. The process that takes place for a recall issued by a vendor to Kwik Trip generally looks like this: 32 MARCH 2024 convenience.org

• Upon notification of a recall, the recall team meets, and Kwik Trip begins the process of initiating our internal process using our recall plan.

• The ingredient, raw material or food products involved in the recall notification are removed from retail stores immediately through an alert system. The internal recall alert notice sent to all Kwik Trip retail stores includes key instructions on how to destroy the recalled products, document the destroyed product and confirm the recalled product is removed by all retail stores.

• Product in our distribution center is immediately quarantined, documented and disposed of following both vendor and federal regulatory guidelines. It’s also worth noting that if we’re in doubt about a certain product, especially if the recall has the potential to expand, we will pull it. Customer safety is paramount.

• On the same day of the recall notification, we connect directly with the appropriate federal (FDA/USDA) and state regulatory agencies to coordinate a nationally publicized, detailed press release for consumers who may still have the recalled product. This press release gives all the necessary information and photos to the consumer to identify the affected product.

• The press release is also sent to the local, state and federal agencies and to the appropriate press with the request to release this information to the public immediately.

Details of our recall can then be found on the appropriate state and federal websites for the customers to review.

• Customers who return products to Kwik Trip (or Kwik Star, in Iowa) stores are given a full refund, and products are recorded and destroyed according to the vendor and federal guidelines.

When it comes to the protection of public health and mitigating risks to your food supply chain and brand, it is best to have a recall team, a tested recall plan and leadership that takes the approach to always do what is right. Open and transparent communication during recall events leads to trust with your regulatory officials and, ultimately, to the customers you serve.

And finally, always doing what is right protects public health, your teams and your brand.

Max Lashcheuski / 500px/Getty Images

If we’re in doubt about a certain product, especially if the recall has the potential to expand, we will pull it.

Handle With Care: Food Safety Training for C-Stores Prevent food-borne illnesses by giving your employees the training they need to safely handle food.

Keep your business compliant in food safety and sanitation.

Key topics include: Introduction to food safety

Cleaning and sanitizing

Cross contamination

Time Temperature Control (TCS)

Personal hygiene

Pests

ANSI-accredited Food Handler and Food Manager training is also available.

Scan or visit us at readytrainingonline.com to learn more.

PART FOUR:

RETURNING TO NORMAL OPERATIONS As soon as companies act on a recall, stores can return to normal operations—minus the affected products that have been removed from store shelves.

At this stage, retailers should continue to anticipate questions from customers. The communications work the team has done earlier will still be valuable.

The return to normal inventory of the recalled product can often take several days or weeks, depending on the scope of the initial recall. Often, if a manufacturer recalls only a single lot of products, other lots can be available within days.

On the other hand, if the recall encompasses a large amount of product involving multiple production days, additional replacement inventory may be difficult to obtain, and stores could be without product for several weeks.

As previously discussed, the company should consider its approach to unaffected but related product. The company may decide to avoid selling any lots of the recalled product, even if not directly affected by the recall, for a set period to ensure that the recall will not be further expanded.

Similarly, a company may decide to stop sales of products from the recalling manufacturer, even if unaffected, for a period of time, until a supplier assessment can occur to better understand the cause of the recall and any related food safety risk associated with the manufacturer.

Support from regulators and external food safety experts may also be appropriate in determining when to restart any sales of a recalled product.

*** Even though product recalls happen routinely, each product recall creates unique challenges and considerations for a company.

To help ensure that your company is prepared to manage any product recall, two immediate steps you can take are to convene a recall team and develop a recall plan.

By consistently revisiting your company’s recall plan, your teams will have a strong and thoughtful approach to any recall that may occur.

Shawn K. Stevens Esq. is the founder of Food Industry Counsel LLC. He can be reached at stevens@ foodindustrycounsel.com.

Elizabeth Presnell Esq. is a food industry consultant and lawyer with the Food Industry Counsel LLC. She can be reached at presnell@ foodindustrycounsel.com.

Jay L. E. Ellingson Ph.D. is the chief science officer, food protection administration, at Kwik Trip Inc. He can be reached at JEllingson@ kwiktrip.com.

WHERE TO FIND RECALL INFORMATION There are multiple ways to access timely food and beverage product recall alerts: • The Centers for Disease Control and Prevention offers a recall widget that can be added to your company’s intranet: www.cdc.gov/foodsafety/ • The FDA’s recall information: www.fda.gov/safety/recalls-market-withdrawals-safety-alerts • USDA’s Food Safety and Inspection Service recall information: www.fsis.usda.gov/recalls • The Food Industry Counsel’s Food Recall Reporter: www.foodindustrycounsel.com/recalls

34 MARCH 2024 convenience.org

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The Top

Convenience Retailers These companies combine to account for nearly

45,000 stores.

NACS MARCH 2024 37

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Independent 7-Eleven Inc. Alimentation Couche-Tard Caseys General Stores Inc. EG America GPM Investments LLC Murphy USA Inc. Wawa Inc. QuikTrip Corp.

Kwik Trip Inc. Maverik Inc. Sheetz Inc. Pilot Company Love’s Country Stores Inc. Racetrac Petroleum Military BP Yesway Stewarts Shops Corp.

Global Partners/ Alliance Energy Major Management Inc. United Pacific Jacksons Food Stores Inc. ExtraMile Convenience Stores LLC Anabi Oil Co. CAPL Retail LLC Two Farms Inc. Delek US Holdings Inc. Croton Holding Co. United Ref Co of Penn Giant Eagle Inc/HQ Refuel Co. Cals Convenience Inc. Tri Star Energy LLC Fikes Wholesale Inc Meijer G & M Oil Co Inc. Terribles Inc. United Dairy Farmers HQ True North Energy LLC Shell Oil/Motiva Enterprises LLC Blarney Castle Oil Co. Hy Vee Food Stores Inc. Bolla Management Corp Nouria Energy/HQ CF Altitude LLC H & S Energy Products LLC Parkland USA Martin & Bayley Inc. Petroleum Marketing Group Inc. Go Mart Inc. Petrogas Group SC LLC

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92,301 12,601

19,710 3,464

24458 1,792

13426 2,026

15265 1,675

5613 661

13829 2,983

5,845

242

2,109

925

1050

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916

2,642

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38 MARCH 2024 convenience.org

The top 100

convenience retailers in the United States accounted for 44,697 locations in 2023. Independents, meanwhile, accounted for 92,301 sites, up from 90,950 in 2022.

THE TOP FIVE C-STORE RETAILERS Spoiler alert: The top five convenience store retailers of 2023 are the same as in 2022. The difference is that three of the top five added to their store count.

1. The top spot again goes to 7-Eleven Inc. with 12,601 stores. The company ranked No. 1 in 2022 with 12,821 stores.

2. Second is Circle K parent company Alimentation Couche-Tard Inc. with 5,845 stores in the United States in 2023, up from 5,702 stores the year prior.

3. The fifth-largest pizza chain in the United States, Casey’s, is No. 3 in the c-store universe with 2,642 stores, up from 2,470 stores in 2022.

4. Fourth is EG America with 1,572 stores, down from its 2022 store count of 1,696 locations.

5. Rounding out the top five is GPM Investments LLC with 1,517 stores, up from 1,391 stores in 2022.

CHALERMPHON SRISANG/Shutterstock

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Enmarket Inc. Englefield Oil Co Little General Stores Inc. Gas Express HQ Mirabito Energy Products Sampson Bladen Oil Company Inc. Town Pump Inc. Stinker Station HQ Plaid Pantries Inc. Victory Marketing LLC M M Fowler Inc. Panjwani Energy LLC Carroll Independent Fuel LLC Break Time Corner Market LLC Vintners Distributors/ AU Energy Toot N Totum Food Store Inc. Newcomb Oil Co. The Kent Companies Reid Stores Inc. The Spinx Company Inc. Sunoco Inc. CHR Corp.

Good 2 Go Stores LLC FKG Oil Company SQRL Fuel Maxx Inc. Family Express Corp.

Midjit Market Inc. S & S Petroleum Inc. Southwest Georgia Oil Co. Weigels Stores Inc. Krist Oil Co. The Parker Companies Johnson Oil Co. Sams Food Store Diversified Management Group Inc. Quick Track Inc. Campbell Oil Co. First Coast Energy LLP MFA Petroleum Andretti Petroleum Group Kenk Inc. C N Brown Co.

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BFS Foods Inc.

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40 MARCH 2024 convenience.org

Regionally, here’s where some of the store count gains and losses among the top five chains transpired: • 7-Eleven shed stores in all but two regions—Southeast and South Central.

• Couche-Tard gained stores in all regions except the West and Midwest in 2023.

The company acquired 112 locations from MAPCO Express Inc., a split deal where Lawrenceville, Georgia-based Majors Management acquired MAPCO Express Inc., including the MAPCO My Reward$ loyalty program and the MAPCO brand.

Couche-Tard also plans to open more than 60 new Circle K stores across Wisconsin in 2024 as part of a broader strategy to open 500 new stores, mainly in North America, over the next five years.

• Casey’s continued to not operate stores in the Northeast and West regions but gained 172 stores across the other four regions.

• EG America shed 124 stores in 2023, a decline in store count in every region.

• GPM Investments, owned by Richmond, Virginia-based Arko Corp., gained 126 stores in 2023, with the largest store gain taking place in the South Central region, where the company had 380 stores in 2023, up from 307 in 2022.

Andriy Blokhin/Shutterstock

To t

Driving the industry forward, together Convenience is always evolving, but NACS delivers the insights and innovative tools to help retailers win. Our latest initiatives improve how you serve your customers and communities and keep your business one step ahead.

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Top 5 Convenience Retailers by Region Region 1: Northeast Company

Store Count

7-Eleven Inc.

3,464

EG America

823

Wawa Inc.

771

Sheetz Inc.

507

Stewarts Shops Corp.

361

Region 2: Southeast Company

Store Count

Alimentation Couche-Tard

2,109

7-Eleven Inc.

1,792

Murphy USA Inc.

430

Racetrac Petroleum

405

GPM Investments LLC

404

Region 3: Midwest Company 7-Eleven Inc.

Store Count 2,026

Alimentation Couche-Tard

925

Casey’s General Stores Inc.

811

Kwik Trip Inc.

511

GMP Investments LLC

409

Region 4: South Central Company

Store Count

7-Eleven Inc.

1,675

Alimentation Couche-Tard

1,050

GPM Investments LLC

380

Yesway

368

Murphy USA

360

M&A AMONG THE TOP 100 One significant move came from Utah-based Maverik’s acquisition of Iowa-based Kum & Go—the companies ended 2022 with 399 and 394 stores, respectively. Maverik kicked off 2024 with 821 stores and jumped from the 16th largest convenience retailer to the 10th largest.

Two top 10 c-store chains surpassed 1,000 stores in 2023: Wawa increased its store count from 991 to 1,043 stores, and QuikTrip grew its store count from 972 to 1,039 stores.

GPM Investments picked up 135 convenience stores with the acquisition of Transit Energy Group’s Corner Mart, Dixie Mart, Flash Market, Market Express and Rose Mart c-stores, which are located throughout Alabama, Arkansas, Louisiana, Mississippi, Missouri, North Carolina, South Carolina and Tennessee.

Casey’s had a busy 2023. The Iowa-based chain acquired 63 of EG America’s Minit Mart and Certified Oil c-stores located in Kentucky and Tennessee. Casey’s also acquired Sherman, Texas-based W. Douglass Distributing’s 22 Lone Star convenience stores, and it also acquired 26 Minit Mart locations in Kansas City in June.

In April 2023, Global Partners and ExxonMobil acquired 64 Houston-area Timewise Food Stores from the Landmark Group.

Region 5: Central Casey’s General Stores Inc.

Store Count 1,550

7-Eleven Inc.

661

Alimentation Couche-Tard

603

Maverik Inc.

368

Kwik Trip Inc.

339

Region 6: West Company 7-Eleven Inc. Alimentation Couche-Tard

Store Count 2,983 916

Maverik Inc.

335

Jacksons Food Stores Inc.

305

ExtraMile Convenience Stores LLC

304

42 MARCH 2024 convenience.org

Love’s Travel Stops, which is celebrating its 60th anniversary this year, is planning to add 20 to 25 new stores, update 35 to 40 legacy stores and rebuild four stores.

In February 2023, BP agreed to acquire TravelCenters of America, a move that accelerated BP’s reentry into the retail landscape, which began in 2021 with its acquisition of Thorntons.

Tada Images/Shutterstock

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LIFTING THE IN-STORE EXPERIENCE

After $150 million in forecourt and in-store improvements through its LIFT initiative, Cenex® is not slowing down any time soon.

BY SARA COUNIHAN

A

ll good stories must come to an end … or do they? Cenex® will complete its four-year initiative to renovate the exterior of all Cenex-branded locations this August. While the exterior part of the program ends this year, Cenex is continuing its in-store loan program for the foreseeable future.

The initiative is called LIFT, which stands for lighting, image and facility transformation, and by the program’s completion it will have transformed more than 1,300 c-stores across 19 states.

LIFT is two-pronged. One portion, dubbed Halo, focuses on refreshing and modernizing the forecourt, and the other focuses on improving the in-store experience for consumers. Cenex, which is the energy brand of CHS, partnered with CHS Capital to provide subsidized low-interest loans for eligible in-store improvements.

“When we first launched this program in 2020, the timing wasn’t right for everybody to take on an in-store renovation,” said Akhtar Hussain, director of refined fuels marketing, CHS Inc. “The Cenex brand is committed to continuing to offer the in-store loan program and really help retailers work through these investment decisions.”

44 MARCH 2024 convenience.org

This article is brought to you by Cenex®, a NACS Hunter Club member.

LIFTING UP A COMMUNITY Convenience stores are facing stiff competition that’s only increasing. Dollar stores, grocery stores and even Amazon could easily be considered direct competitors to c-stores, and these retailers have forced the industry to rethink how they meet the wants and desires of today’s consumer. But competition within the industry has also increased, as c-store retailers level up to engage with these new competitors.

“In order for us to continue to keep the Cenex brand strong and relevant to consumers, we have to meet our retailers where their competition is, which is offering better in-store amenities, better foodservice programs and brighter, more modern stores,” said Hussain.

“That is the flexibility that we are looking to deliver through the in-store loan program.”

The River Country Co-Op Cenex location in Merrill, Wisconsin, added a bait shop as one of several upgrades.

The Cenex brand is deeply rooted in the communities it serves, especially rural communities. Oftentimes, a Cenex-branded c-store is the only nearby option to get gas or grab a gallon of milk. When retailers partner with Cenex to revamp their interior, the strategy is to narrow in on exactly what that specific community needs. For example: • In Merrill, Wisconsin, the River Country Co-Op Cenex location sits along the Wisconsin River and near several lakes, so it added a bait shop as one of its in-store upgrades, so that both minnows and a snack are easy to grab on the way to a fishing trip.

• Offering local food vendors was important to the folks at the Synergy Cooperative Cenex location in Cumberland, Wisconsin, and with the help of LIFT, the retailer incorporated four local meat and cheese vendors in addition to locally made maple syrup and honey products.

• The Northern Star Co-Op management team in Grand Rapids, Minnesota, knew that many residents in the community rely on financial assistance, so they chose to implement the Electronic Benefits Transfer (EBT) program, an electronic system that allows a Supplemental Nutrition Assistance Program (SNAP) member to pay for food using SNAP benefits.

“Cenex-branded stores are different based on geography, size and market, so we really needed to develop a program that allows them the flexibility to improve or add the services, amenities and infrastructure that best suits their community and their purpose,” said Hussain, adding that part of that flexibility is the freedom for retailers to partner with local businesses for the interior renovations.

“Our only requirement is that the contractors are bonded and licensed,” he noted.

“We are allowing stores to invest in what the communities need most,” said Hussain.

“When you’re hiring local plumbers, electricians and other contractors, that broadens the impact that this investment has made. That’s an investment directly in those communities.”

Akhtar Hussain director of refined fuels marketing CHS Inc.

We offer our retailers the flexibility to choose the store improvements and food service offerings that are best suited to their communities.”

NACS MARCH 2024 45

dream store become a reality. CHS and the Cenex® LIFT initiative made the process so much easier knowing we didn’t have to worry and could solely focus on building a premier c-store for our town,” Orton said.

The Northern Star Co-Op in Grand Rapids, Minnesota, implemented the EBT program with funds from the program.

If our store interiors are places that community members want to visit, we will see the benefit of increased fuels sales in the forecourt.”

‘A ONE-STOP SHOP’ Throughout the pandemic, dependence on local c-stores increased substantially, so Orton Oil Co. store owner Frank Orton knew it was time to make the changes needed to accommodate customer needs.

The LIFT initiative helped Orton keep pace with evolving consumer behaviors through a series of exterior and interior updates. This included a strong desire for an elevated customer experience and prioritization of safety.

“Within just a few months of finishing our upgrades, we saw a significant increase in traffic and business to our location due to the new Halo image.”

When it came to the interior upgrades, Orton had the freedom and flexibility to make all the updates he deemed necessary to satisfy the needs of his community.

“CHS was a one-stop-shop when undertaking this renovation and really made my 46 MARCH 2024 convenience.org

LOOKING AHEAD As the convenience store industry continues to evolve, Hussain sees foodservice and fuel as playing complementary roles in the c-store offering.

“People are not going to come to our stores to buy fuel and then go across the street to a convenience competitor to buy their food.

They’re going to go to the place that’s going to allow them to do everything in one stop,” he said. “If our store interiors are places that community members want to visit, we will see the benefit of increased fuels sales in the forecourt.”

Cenex offers its partners foodservice equipment and programs, such as Chester’s Chicken and Godfather’s Pizza, but it’s ultimately up to the retailer to decide what its community needs.

“That’s the difference that we were looking to make,” said Hussain. “We offer our retailers the flexibility to choose the store improvements and food service offerings that are best suited to their communities.”

As Hussain looks ahead for the Cenex brand, he doesn’t see a slowdown any time soon. During its four-year run, the LIFT program saw $150 million in approved capital through the in-store program, and there is approximately $70 million in exterior improvements. Easy laurels to rest on, but not for the Cenex brand.

“As nice as it would be for us to take a breath here after our four years of the LIFT initiative and going out there and transforming so many locations, we’re not slowing down,” he said. “We’re going to continue to tell our stories of success as these renovations are completed and take a deeper look at the impact that these investments have made in the communities.”

Hussain noted that the store loan program is open to new marketers as well as existing Cenex fuel marketers.

POWERFUL BRAND. HOMETOWN FEEL. RUNNING YOUR BUSINESS YOUR WAY. POWERED LOCALLY.

We know that the true power behind the Cenex® brand comes from our locally-owned retailers – valued partners who are invested in their customers and community. That’s why we’re committed to your success and helping you build your business from the moment you become a Cenex® retailer.

From flexible brand conversion and marketing, to convenient payment processing and training programs, we can provide your business with the support it needs to help you grow.

A name your customers trust, a brand you can count on – visit cenex.com/businessopportunities to learn more.

© 2021 CHS Inc. Cenex® is a registered trademark of CHS Inc.

GU1DED BY

NUM ERS T

oday’s customers have high expectations. They’re used to shopping in grocery stores and buying food in quick serve and fast casual restaurants that often know everything about them, allowing them to receive personalized offers and experiences that are relevant to their behavior and lifestyle.

“Industry research shows that if we can understand our guests they’re more likely to be loyal to us and if it’s more relevant, they’re more likely to buy it,” said Cheryl Davis, director of digital strategy for Cumberland Farms. “The more we can cater to our customers, the better.”

Retail is powered by data today, said Gary Hawkins, the CEO of Denver-based Center for Advancing Retail & Technology. “Data has become mission critical because of AI and the other tools that can leverage that data,” he said.

“This information can be incredibly valuable to convenience stores because the customer is becoming the battleground,” he added. “If I want to succeed as a retailer, I need to under-

48 MARCH 2024 convenience.org

stand [customers] and I need to grow my share of [their] wallet and what [they] spend. Being able to leverage the data is the most important thing to drive business to your store.”

LEVERAGING LOYALTY PROGRAMS Convenience store loyalty programs are a goldmine of information. They can provide both customer data—who is buying what and when—and data on the performance of foodservice items stores are offering.

Loyalty programs are essential to gather any meaningful amount of customer data, said Hawkins.

Cumberland Farms likes to look at dayparts and know when customers are coming in to buy foodservice products. This helps understand when to boost staffing and when to cut back.

The retailer also likes to use its loyalty program to understand what’s selling in foodservice and which additional items customers are adding on. Dispensed beverages are a popular driver of visits and a good area to target, said Stephen Skidds, director of food service.

Fedorovacz/Shutterstock

BY AMANDA BALTAZAR

C DA TA

N A

SERVICE S D O O UC F CE E V I SS R D .

NACS MARCH 2024 49

50 MARCH 2024 convenience.org

MOBILE APPS AND E-COMMERCE TXB Stores, based in Spicewood, Texas, pulls data from its loyalty program and mobile app to track which foodservice items customers are buying. “This also helps us phase out slower SKUs to keep the menu fresh,” said Sam Sawaged, vice president of operations.

“We can drill down to where the purchase is happening, such as the grab-and-go case, and we have specific data on how many items we’re selling per day,” he said.

TXB recently used its mobile app to track a cold food program it launched. TXB analyzed the first 15 days and saw the response was positive. Having this data tells the company which items are popular, and thus should be readily available; how much of each to prepare on a store-by-store basis; and when to have them available.

Issarawat Tattong/Getty Images; YesPhotographers/Shutterstock; Valazarus-Studio/Shutterstock

This also helps us phase out slower SKUs.”

Loyalty programs are “probably the primary area to gather data,” said Art Sebastian, founder and CEO of Nexchapter, a contemporary growth advisory firm in Des Moines, Iowa, and former vice president of omnichannel marketing for Casey’s.

Who, what, and when are the most important data sets you will get from loyalty programs, Sebastian said. “It provides the richest view of your customer.”

This data, said Sawaged, “gives us more of an understanding specific to the guest,” and helps TXB understand how to entice them to buy more. The company can send customers messages within the app, offering free or reduced items to encourage them to try new items, as well as offers for items the customer already purchases to bring them in at different times of day. For example, a recent promotion aimed to drive traffic to stores on one of the slowest days of the week by offering special pricing only on that day.

Vroom Delivery is a Miami-based company that helps c-stores build out their delivery and e-commerce programs. Stores run their programs using Vroom’s software and tie in their loyalty program, pricebook and inventory systems.

Through the software, retailers can get granular details in terms of who buys what, where. They can see who to upsell to and who should receive special offers.

They can also track data over time, encouraging customers to return to the store if they haven’t visited recently. Retailers can also look at the bigger picture and see which stores are doing well and which are underperforming, and compare them to other stores regionally, which can lead them to make product recommendations.

The most important metrics to track, said John Nelson, Vroom’s CEO and founder, are growth and customer retention, average basket size and cancellation rates. “Having good data allows you to see a problem and address it,” Nelson says. It also allows stores to keep a close eye on inventory, he adds, so stores can remove what’s not selling.

Kiosks can provide similar information as loyalty programs, said Nelson. However, less information about the customer is

WORKING WITH THIRD-PARTY COMPANIES Cumberland Farms derives insights from its third-party delivery companies. “We’re able to ask our partners, is our data in line with what they see from our competitors?” said Davis. “They provide industry aggregate views to provide us with some benchmarking ... so we can see how our metrics compare to the industry.”

Is the company attracting new guests? New app customers? And is it building basket size?

“The more we can drive our topline sales, the better, so we have the metrics fall from there,” Davis added.

MarketDial, based in Salt Lake City, Utah, helps convenience stores measure their foodservice programs.

“Our technology helps them design experiments so they can run basically a clinical trial to compare stores,” said Morgan Davis, CEO and cofounder. Retailers then funnel the information to MarketDial, which examines it and offers suggestions on what to sell, how much of it and where, and how test stores compare to stores not running the test.

“Retailers are testing all these things that are risky or new or innovative and they want to run an experiment first,” he said.

Only about one-third of c-store foodservice ideas work, said Morgan Davis. “It’s really important to be able to kill two-thirds of these innovations,” he adds.

It’s really important to be able to kill two-thirds of these innovations.”

52 MARCH 2024 convenience.org

Mariyana M/Shutterstock

available, such as their physical address.

The real strength of a kiosk, he pointed out, is when it’s paired with a robust loyalty program so you can tie the kiosk purchase to other purchases.

When customers shop on a kiosk, their purchase behavior is different, said Sebastian. “When you’re interacting with technology. the experience is different. You have ads popping up, you have cross sell, you have upsell—buy a large instead of medium, reminders when you pay.” It’s different than ordering in-person but also different than ordering online in a way that can shift a retailer’s strategic thinking.

When it comes to e-commerce, Sebastian said retailers need to know which pages customers look at and for how long. They need to examine the conversion rates—of those people who came to the site and the page, how many people actually ordered.

Testing products like these and running the data typically takes eight to 12 weeks. It’s way better, Morgan Davis said, to run a test program than launch something that bombs.

“We help them kill a lot of ideas. They can save millions of dollars in terms of getting it on the shelves, marketing, food and beverage development, etc.”

USING IN-HOUSE TECH Cumberland Farms mines its back-office technology, provided by PDI Technologies, for data to guide its foodservice programs based on a market basket approach. One of the metrics it looks at is what customers are buying with an item, which allows the team to promote products based on consumer buying habits within specific markets.

When it comes to the secondary items, it then uses its knowledge of these—is a customer ordering guacamole on the side or a bag of chips—to upsell customers with additional items. “These are big drivers of check averages going up,” said Cheryl Davis.

PDI also helps Cumberland Farms see what center store customers are picking up with their foodservice, or vice versa, Skidds added.

“We want to make sure people have a foodservice item and a center store item in each hand.”

AI AND THE FUTURE We’re all hearing more about AI. Convenience stores ought to be leveraging some of the available tools, said Hawkins. These can help with everything from inventory management to demand forecasting, and, he said, “are particu-

NACS MARCH 2024 53

We want to make sure people have a foodservice item and a center store item in each hand.” larly important with fresh foods because they can make such an impact … by containing and lowering costs and helping with margins.”

AI tools are so advanced now because they can use so much more data, Hawkins pointed out. “It’s not just looking at historical sales data, it could be and should be incorporating weather data, incorporating local events like a big football game. It can dig down deeper and broader,” he said.

The new AI capabilities bring much more accurate forecasts and projections and help keep products in stock, he said.

Coming soon, we’ll see CDP (customer data platforms), said Sebastian, which many

retailers are already considering. CDPs take data from many sources, including loyalty programs, e-commerce ordering, social media, even call centers, and aggregate it so the retailer has a single view of its customer.

“The most progressive retailers will have a CDP,” said Sebastian. “It’s becoming a hotter topic for the upper end of convenience retailers.”

Amanda Baltazar has been writing about foodservice and retail for trade magazines for more than 20 years. Read more of her work at www. chaterink.com.

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“YOU SHOULD EXPECT A LOT from your packaging,” said Kurt Richars, director of market development and sustainability, Anchor Packaging. “There are so many things good packaging can do for an operator.”

Richars’ list includes effectively displaying your food (“when customers see more, you sell more”), creating reduced waste by keeping food good longer, making food prep easier and migrating food from the hot case to the cold case, among others. The most important component Richars cites is the consumer experience—“bringing the customer back.”

People are looking for value today, Richars said, but that’s not just price point. “Value can mean was it convenient? Did it taste good?”

Of course, retailers have to constantly weigh costs and operational efficiency. During all the disruptions around the pandemic, that wasn’t always easy.

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She said, “Some of that beverage innovation we’re really watching out for is that balance from a c-store operator between what am I going to offer and what’s the right package, but what’s also the most convenient because they only have so much shelf space.”

Graphic Packaging International has had more customers look into consolidating to a one-cup set to carry out drinks. The company has started looking into whether it could have a hot and cold beverage in the same set if the sizes line up. And while there’s plenty of research into insulation needs on the beverage side, insulation advances are starting to seep into general packaging, too.

A RETAILER REVAMP While Rutter’s knows food packaging is crucial for proper function, the retailer has also played around with form. In August 2023, Rutter’s released revamped food packaging for its “Made For You” menu with a modern design and the company’s colors. Santini said that because the menu items are designed for customization, packaging had to also provide a fun, personalized feel.

Customers have said they like the look, and Rutter’s has explored how to make the packaging more interactive, such as telling customers how to eat a particular product and which bite to take next.

Coming up with the design involved lots of back and forth with vendors and included customer commentary via social media interaction. Santini said the process was “a lot of looking at what we already had on hand and saying: Is this the best fry cup that we can get? Is this the best package for the items that are going to be served in it?”

He added that the crucial part of the experience is ensuring that a guest doesn’t receive a package that is ripped, broken or packed incorrectly. “From a user experience perspective, I believe that opening the

How can someone enjoy this in their car or while on the road?”

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Image courtesy of Placon

Jeannine Scherzer, the marketing director (Americas) for Graphic Packaging International, a manufacturer of paperboard and paper-based packaging that works with numerous c-stores, said she thinks there’s a new normal in the food packaging industry.

Not all stores were equipped with the right packaging to handle those disruptions. But organizations have since had time to step back and look at what the longterm trends are and how they can remedy some of the issues that arose.

“I think a lot of restaurants and convenience stores are now able to figure out what package is going to work best for the food items that they’re serving,” Scherzer said.

“It’s all about preserving the quality of the food during transport. … [Companies] want to see how the package performs—and not just in their operations and out the door, but how does it function for the first 30 minutes going to somebody’s house or being in somebody’s car?”

“A lot more [companies] are putting more attention on how things are going to fit in a bag,” she said. “They always have [paid attention to it], but now it’s more important because they’ve heard the complaints about the delivery companies dropping food all over the place.”

Philip Santini, the senior director of foodservice and advertising at Rutter’s, said post-pandemic food packaging considerations have included ventilation and temperature.

He added: “I believe that the packaging of items— specifically how they are layered into bags or the vessel in which they are handed to a guest—should be a priority for all food service operators.”

Other considerations for Rutter’s include condiments: How should they be included? Santini said the industry standard is just to throw the ketchup and mustard in the bag with the rest of the items. But Rutter’s is thinking about whether there is a way to incorporate condiments into the rest of its food packaging.

Santini said, “We’re constantly considering: What can we offer? How can someone enjoy this in their car or while on the road? How will it travel well to meet these demands? I believe this is more of a challenge than simply providing a quality burger. It’s about ensuring that guests have the opportunity to enjoy their order exactly as they imagined.”

There’s plenty of other innovation happening in the food packaging industry. Scherzer said consumers are focusing more on specialized beverage offerings and want packaging that can make a c-store feel like a specialty destination.

monticelllo/Getty Images

Sustainability is starting to become a bigger and bigger requisite.” packaging and finding an item that meets your expectations is the most thrilling part of it all,” Santini said.

Rutter’s will continue to explore its food packaging.

“We will strive to do everything within our power to meet our goal of serving a product to our guests in the most suitable manner of container possible,” he said.

“We haven’t completely solved it yet, but we’re striving to come as close as we can to achieving that.”

THINKING SUSTAINABLY Santini said a social responsibility factor has increasingly moved to the forefront for retailers, even though an emphasis on sustainability can increase costs.

Scherzer said a large portion of customers are focused on putting their dollars in places where they believe in what a company is doing. And customers are increasingly expecting brands to do “the right thing.”

Graphic Packaging International sources most of its wood fiber from sustainably managed forests, and the majority of the energy the company consumes comes from renewable sources.

“We saw sustainability take a little bit of a backseat when Covid first started because consumers [tended to] prioritize their health and safety and security and financial stability over sustainability,” Scherzer said.

“But now that consumers are in a much better place, we’re starting to see sustainability return to the top.”

She added, “No one is expecting perfection. But consumers want to see an effort. They want to see progress. And the concept of having recycled content in something is very easily understood by many consumers as, ‘Hey, there’s something that went into this packaging that contributed to a circular economy.’”

Another company exploring sustainable food packaging options is Placon.

Scott Newton, a sales director at Placon, said the rise of a younger, more eco-conscious generation has prioritized sustainable options.

“In the ’90s and the 2000s, people didn’t want to pay extra for anything sustainable,” Newton said.

“The marketing behind it now is different. … The transition to these different generations made things a little bit smoother and easier for us.”

Keith Schrage, Placon’s sales director for its stock food line, added, “Sustainability is starting to become a bigger and bigger requisite for the packaging that’s going into these different locations. In the c-store world … they’re all buying [amounts of sustainable packaging] at different levels.”

Schrage said some retailers might care about sustainability but don’t want to pay the increased cost, while others look at sustainability as a chance to market themselves differently and set themselves apart in a crowded market.

“Because we’re sustainable, we are a little bit more expensive than the next, so we have to offer a different level of value,” Schrage said of Placon’s packaging.

Newton said a trend is telling a story about the product or the packaging. A QR code on the packaging can take customers to a website tour of Placon’s EcoStar facility, where a video can explain the process and educate people on what they’re getting with the packaging and why the item is packaged the way it is. The company is excited about a new material called OxyStar, an oxygen barrier material that can be put back into the PET recycling system.

OxyStar has a No. 1 recycling symbol, meaning it can be consistently recycled for use—most barrier solutions have a No. 7 symbol, which is much harder to recycle. OxyStar, according to Placon, is designed to reduce direct oxygen contact in a more sustainable manner via its multilayer PET and oxygen scavenging agent.

Schrage said sustainability is also about curbing food waste. That means consumers are asking: What kind of packaging can we use to extend the shelf life of our product?

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Richars echoed that. The food itself represents a far larger investment of energy than the packaging. Richars shared that most food waste happens between the operator and the house. In other words, someone decides to stop eating those chicken tenders or stop drinking that coffee. Good packaging protects the quality of the food, which reduces food waste, which creates a more sustainable foodservice operation.

Richars pointed to reuse as a trending path towards sustainability. About three in four consumers report reusing containers. So a higher-quality container that can endure repeated use at home has an important sustainability angle.

As a whole, resealable packaging is also becoming more important in c-stores. Food packaging is moving away from clam shells and into trays with resealable packaging so the item can be put away and taken back out hours—or days—later. “[Peel and reseal] is changing in the marketplace as we speak,” he said.

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We are always striving for the unicorn package.” open—something that has multiple products in it, maybe in a four-cell or three-cell container.

Food packaging companies are also paying attention to how they present themselves.

“There are a lot of studies out there as well about consumers’ purchasing decisions being influenced by packaging design,” Newton said. “What you’re seeing now is anything that looks more natural, anything that looks minimalist, is popular. It seems to be once again generational to some degree, but this natural, minimalist packaging is eye-catching without overdoing it. And it’s picking up our sustainability story.”

“Customized packaging is big in our industry because it’s a shelf differentiator,” Newton said. “So how do you look different than everybody else? It’s labeling, it’s graphics but it’s also packaging style and design.”

Now that the food packaging industry has stabilized some, companies and retailers are both looking forward to how they can innovate to best serve their customers.

“We are always striving for the unicorn package— anything that can keep a sandwich colder or french fries and mozzarella sticks crispy or a sandwich from getting soggy,” Scherzer said. “But if we can’t get the unicorn package, at least we can continue to strive for enhancements that preserve food quality [and] insulation products that keep [food] warmer or cooler.”

SeventyFour/Getty Images

PACKAGING TRENDS Food packaging must be both tamper-evident and “tamper-simple,” as Schrage put it, meaning the package is secure but easy to open.

“It drives me crazy when you walk through the store and see there are blueberries missing out of a package and blueberries sitting on the shelf because somebody wanted to give their kid 22 blueberries while they were shopping,” he said.

“Just about everyone wants [tamper-evident packaging] just because of the food safety aspect of it—especially in convenience stores because you have so much foot traffic in and out,” he said. “[Having] something there for the safety and security of the consumers is huge. … [Tamper-evident] is no longer a value add, it’s a necessity.”

“That assurance you get with tamper-evident is a really important thing, particularly with grab-and-go food. People want to know that no one has touched this since the kitchen closed it,” Richars said.

Another trend making its way into food packaging is an increased priority on health and wellness. Rutter’s has a number of healthier options and is exploring further venturing into that area. As a result, the retailer has discussed what that might mean for its food service program—and for how those items are packaged.

For Graphic Packaging International’s Scherzer, that means the company is making sure its fiber-based options will still keep a sandwich or salad crisp and in tip-top shape.

“If you want to buy something healthy, you have a little bit of a freshness expectation to it,” she said.

Other trends Placon’s Schrage and Newton have noticed are that customers are looking for packaging in smaller sizes that’s convenient, simple and easy to

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How

Sweet

BY TERRI ALLAN

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Clari Massimiliano/Shutterstock

Fresh-baked cookies offer impulse buys and image boosters for c-stores.

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Fresh-baked cookies are a win-win-win.”

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followed last year’s LTO gingerbread cookie ($1.69 per 3.5-ounce cookie) at some 3,000 participating 7-Eleven, Stripes and Speedway stores. According to a 7-Eleven spokesperson, the cookies are freshly baked in-store at select locations across the country.

‘Win-Win-Win’

The emergence of fresh-baked cookies as a popular convenience store item is just another example of the strides the channel has made in foodservice.

“Consumers are looking for fresher quality in c-stores,” said Alyssa Barrett, customer marketing manager-convenience at Rich Products, which supplies premade dough and ready-to-serve cookies to c-stores. “Freshbaked cookies are the perfect opportunity, especially during high-traffic occasions.”

Barrett said the treats are an effective response to consumer demand for high-quality food, provide operators with compelling traffic-driving merchandise and encourage higher-value tickets.

“Fresh-baked cookies are a win-win-win,” she said.

Indeed, store-baked cookies have been popular in quick-service restaurants for some time, and with c-stores increasingly competing with the channel for foodservice dollars, it stands to reason that the baked goods are a good fit for convenience retailers. According to Barrett, more than half of all QSR operators offer cookies on their menus, and in the last

Kim Reinick/Shutterstock

or the last half dozen years or so, Louisiana’s Y-Not-Stop has offered signature products that have not only resulted in increased impulse sales but also in improved store traffic.

“We’ve had a strong response to our storebaked cookies,” said Annie Gauthier, co-owner and CFO of the 14-unit retailer, who estimated sales at about two to three dozen per day per store. “And sales have been increasing at a double-digit rate month over month.”

At The Hub convenience stores, which has locations throughout North Dakota, sales of fresh-baked cookies have taken off since the pandemic, when the retailer began packaging the treats in bulk, such as 12 mini cookies in a grab-and-go container.

CEO Jared Scheeler said, “Customers like that instead of going to the bakery case and taking a single full-size cookie with a cellophane wrap, the bulk packs are ready to go.

We sell a ton of them.”

Some days, the batch of cookies baked instore first thing in the morning isn’t enough to satisfy demand.

“Sometimes we have to bake multiple times a day,” Scheeler said.

Fresh-baked cookies are even making a mark at 7-Eleven. Earlier this year, the retailer launched its limited-time-only (LTO) chocolate chunk cookies, made with Hershey Mini Kisses, at select locations, with a chocolate peanut butter cookie, featuring M&M Minis peanut butter candies, on deck. The offerings

Rich Products

Rich Products offers bakefrom-frozen cookies.

four years, menu penetration of fresh-baked cookies in the outlets is up more than 2%.

Subway says it sells more freshly baked cookies than any other restaurant company in the United States. It’s looking to build on that accolade with its footlong chocolate chip cookie, rolled out late last year.

Convenience retailers and vendors report that one of the greatest benefits of storebaked cookies is the spike in impulse sales they provide.

Fresh-baked cookies are “a manageable indulgence for consumers,” due to their price and size, explained Maeve Webster, president of Menu Matters, a consulting company that helps food manufacturers and operators understand how trends affect their brands. She noted that because 41% of c-store shoppers don’t decide on their purchase until they’re in the store, merchandising fresh-baked cookies allows operators to capitalize on impulse decisions.

The 7-Eleven spokesperson said, “In addition to offering customers more options for items to pair with a snack or coffee, the smell of fresh-baked cookies makes the stores smell great and enhances the customer experience.”

Y-Not-Stop’s Gauthier said sales of fresh cookies aren’t restricted by daypart like some other foodservice items: “They sell well during all dayparts,” she said, “even for breakfast.”

In addition to the morning daypart, Rich Product’s Barrett sees opportunity for the baked goodies during the afternoon daypart; she noted that’s the busiest time for bakery case sales in c-stores. For multi-unit retailers, cookies baked from frozen, premade dough provide operators with consistency and easy preparation, she added.

“You take out what you need, so it eliminates waste,” Barrett said of the frozen, preformed pucks.

For Scheeler, one of the biggest perks of The Hub’s cookie program is that “it provides us with a point of differentiation, something that’s different from our competitors.”

But perhaps the biggest benefit of a freshbaked cookie program is the halo effect it brings to a store and its foodservice program.

Menu Matters’ Webster said, “Even if customers don’t purchase them, cookies impart

Perhaps the biggest benefit of a fresh-baked cookie program is the halo effect. the perception with consumers that the store focuses on fresh and fresh-made products.”

Even if the cookies are baked from pucks, they still connote freshness because customers “don’t care that there isn’t someone in the back mixing up the batter,” she said. Moreover, the aroma of cookies fresh out of the oven is pleasing to virtually all guests.

“It’s the Cinnabon effect,” Webster said.

“Everyone loves the smell of Cinnabon even if they don’t buy one.”

‘Immediate Hit’

Y-Not-Stop first dove into fresh-baked cookies with the opening of a store in 2018. The store featured a large bakery case that showcased donuts, muffins and cookies baked from preformed David’s Decadent cookie dough.

“They were an immediate hit,” Gauthier said, and the baked treats were soon added to a second location. By 2021, the cookies were available at all Y-Not-Stop locations. Today, each store offers six to eight different cookies— triple chocolate chip is the top seller, followed by sugar cookie and usually an LTO option.

The Hub has been selling fresh-baked cookies, using CoreMark frozen dough, since the opening of its first store in 2015. Scheeler said the stores offer a variety of cookies, but as at other retailers, chocolate chip is the most popular, followed by snickerdoodle, chocolate macadamia and oatmeal raisin. Seasonal LTOs are also featured, such as caramel apple in the fall and s’mores in the summer. The North Dakota retailer sells its cookies for $1.49 for a single and $3.49 for a 12-pack of mini cookies (or the equivalent of three full-size cookies).

In addition to LTOs, 7-Eleven offers varying cookie sizes in a variety of flavors.

“Our core cookies are available in chocolate NACS MARCH 2024 65

chunk, oatmeal, red velvet, macadamia nut, salted caramel, peanut butter and sugar,” the spokesperson said.

Beyond cookies, the retailer sees opportunity for other fresh-baked items; fresh-baked pastries, such as cinnamon swirl croissants, chocolate croissants and gouda cheese croissants were added to stores last year. The spokesperson said 7-Eleven also has a variety of other freshly baked items delivered daily to select stores, including brownies and donuts.

‘Incentive Drivers’

While fresh-baked cookies do well as impulse buys, special incentives also help drive sales.

“We recommend value merchandising, such as bundling with a beverage,” Rich Products’ Barrett said, pointing to offers such as “buy a beverage, get a cookie for 50 cents” or “two cookies for $3.”

Y-Not-Stop promotes a “three for $6” bundle that includes a 20-ounce beverage, cookies and other foodservice items. Other cookie-focused promotions at the Louisiana retailer include the distribution of certificates to local schools and the awarding of a free cookie and drink for accomplishments such as making the honor roll or perfect attendance.

Y-Not-Stop merchandises its fresh-baked cookies in bakery cases in its large stores and in counter cases at its smaller locations.

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The Hub, meanwhile, largely relies on grab-and-go cases located in the front of its stores to merchandise its bulk pack of cookies.

“You can’t miss them,” Scheeler said, noting the cases are one of the first things customers spot when walking in.

When cookies are merchandised in a bakery case, Barrett advised that operators be sure the case is fully stocked and features a variety of treats, such as donuts, cinnamon rolls and pastries.

“Don’t allow just a few random items to linger in the bakery case,” she said.

Cookies also do well when promoted as an add-on via kiosk sales, Barrett said, as well as at the pump.

LTOs have become a popular tool in building awareness of fresh-baked cookies.

Y-Not-Stop, for example, promotes three or four LTO cookies a year, Gauthier said, such as a red velvet cookie around Valentine’s Day. The seasonal coloring of the LTOs make them effective merchandisers.

Maverik, meanwhile, debuted a stuffed mint cookie in 12 Western states for the holidays last year. The offer followed a s’more stuffed cookie last summer.

“We’re continually innovating our freshbaked treats, and our stuffed cookies will be a staple,” said Kyle Lore, corporate R&D chef at the Salt Lake City-based retailer.

Maverik debuted a stuffed mint cookie during the 2023 holiday season.

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Maverik and other c-store retailers tied in to National Cookie Day, on Dec. 4, to promote their offers. Last year, loyalty members at Maverik, for example, received free cookies or discounts on cookies for the occasion. Similarly, Circle K offered free Fresh Food Fast cookies at participating locations via its app for National Cookie Day.

Worthy Investment

Much like other foodservice offers, freshbaked cookie programs can present challenges for c-stores, particularly in terms of space and labor. Gauthier said c-stores must have the room for ovens, freezer space for frozen dough and counter space for cooling racks.

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While labor isn’t super intensive, she noted that if a store is short staffed, the need to bake cookies can create a hiccup. For that reason, Y-Not-Stop opts to prep its cookies at non-peak times.

Barrett noted that for retailers without the space or labor for a fresh-baked cookie program, fully baked cookies, such as those offered by Rich Products, are also an option.

Menu Matters’ Webster said that for most c-stores, a fresh-baked cookie program is a worthwhile investment.

“Consumers are increasingly looking for fresh foods and those prepared with care,” she said. “If carried out properly, a cookie program can help enhance a store’s perception [in regard to] freshness.”

Gauthier agreed and added, “Cookies are a great enhancement to foodservice given the amount of space they require. And they’re a lot of fun. Who doesn’t love a cookie?”

Terri Allan is a New Jerseybased freelance writer specializing in consumer products and retail channels.

She can be reached at terri4beer@aol.com.

Rich Products

Cookies are a great enhancement to foodservice given the amount of space they require.”

A well-executed cookie program elevates the entire store.

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GET SNACK RICH Rich Products offers retailers highquality food with minimal labor.

ALYSSA BARRETT customer marketing manager Rich Products

70 MARCH 2024 convenience.org

FROM YOUR VANTAGE POINT, HOW WOULD YOU DESCRIBE THE CURRENT STATE OF CONVENIENCE STORE FOODSERVICE? We’re in an exciting spot when it comes to convenience store foodservice. The gap between restaurant offerings and c-store offerings is really narrowing. C-stores have really stepped up their foodservice programs and have a huge opportunity to take share of stomach from restaurants.

What sets c-stores apart is the added convenience. C-stores were built on convenience. They were built on the ability for a consumer to come in and get multiple things in one trip. Different bundling opportunities within foodservice, or bundles that connect foodservice and other in-store items, offer a way to bring that traffic into the store.

HOW DOES A C-STORE MANAGE TO CREATE QSR-QUALITY PRODUCTS WITHOUT HAVING NEARLY AS MANY PEOPLE ON STAFF? Labor is absolutely the prime challenge that operators are facing today. Operators need to provide the high-quality foodservice offerings that consumers desire but face the challenge of how to do that.

Some operators can execute made from scratch, of course, but we’re focusing on where we can help as a supplier. Rich’s solutions eliminate some of those labor steps. For example, we have a wide range of pizza options within our portfolio, but we are really investing our time and energy within that further finished or fully finished area. That might mean freezer-to-oven pizza doughs or fully topped, ready-to-bake pizza, but with quality still the No. 1 consideration.

This article is brought to you by Rich Products, a NACS Hunter Club member.

WHAT FOODSERVICE DAYPART IS MOST INTERESTING TO YOU RIGHT NOW? Looking at different traffic analysis within c-stores from the last 12 months, afternoon snacking is the No. 1 c-store occasion, with a little bit more than a third of trips coming that time of day. Consumer habits have shifted. Seeing that afternoon snacking occasion really pop is interesting.

HOW CAN AN OPERATOR CAPITALIZE ON AFTERNOON SNACKING? By making sure two areas of the store are well-stocked as customers look for a pickme-up. A sweet indulgence is a trend during that daypart, so my advice is, don’t only think about stocking the bakery case in the morning. Make sure it’s stocked all day long with a variety of items. Donuts play really well in the afternoon, so a nice selection of donuts is key, and cookies are a great item that can capitalize on that space, along with other sweets like brownies and muffins.

Another area of the store that we think is important during this occasion is the cold case, which capitalizes on grab-and-go snacking. That could be where better-for-you offerings come in, to capture that consumer

who is looking for something to tide them over between lunch and dinner but doesn’t necessarily want to go full indulgence.

WHAT ARE SOME PRODUCTS RICH’S OFFERS THAT ARE WELL-SUITED FOR THIS OCCASION? We have a few different items within our bakery portfolio that can help stock the bakery case, including fully finished thaw-and-serve items and others that are freezer-to-oven that come pre-portioned.

We have a fully finished donut portfolio filled with high-quality donuts in a full thawand-serve format. We offer freezer-to-oven cookie dough pucks as well as fully baked options. Some of our most gourmet cookies in our portfolio are available fully baked, and they’re a really high-quality cookie—you wouldn’t be able to tell it wasn’t just freshly baked.

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TOTAL ECLIPSE OF THE MART BY LEAH ASH

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Convenience stores are prepping for a wave of eclipse chasers.

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THE PATH OF TOTALITY

for this year’s total solar eclipse is roughly 115 miles wide—over 30 miles wider than the 2017 solar eclipse. In the United States, the eclipse’s path of totality will travel from Texas to Maine, crossing over Dallas; Little Rock, Arkansas; Indianapolis; Cleveland; and Buffalo, New York; among other cities. About 31 million people live in the path of totality.

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For retailers in or near the path, this is a once-in-a-lifetime event. This solar eclipse will be the last one to occur in the United States until 2044, and the 2044 event will touch only Montana, North Dakota and South Dakota. An eclipse in 2045 will cross over Western and Southern states, and one in 2056 will affect a few Southern states.

LESSONS FROM THE PAST Don Rhoads, president of Washington state– based The Convenience Group and NACS 2022-23 chairman, experienced the 2017 eclipse. His stores experienced a surge in traffic in the days surrounding the eclipse.

“Our stores are located in southwest Washington,” Rhoads said, “and we weren’t in the path of totality, but leading up to the actual eclipse itself, we were really busy. The spillover effect of the eclipse really did boost our store sales.”

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Looking back, Rhoads said, “We weren’t as prepared as we should have been, especially on the fuel side. If I were to do this all over again, I would start earlier, maybe 60 to 90 days out. We could build that excitement leading up to the day of the eclipse.”

Rhoads began his preparations for the eclipse about a month before the event, working with suppliers to build a theme around the astronomical event. “We ran some cool promotions that were eclipse-related,” he said.

“Packaged beverages, including an eclipse craft beer, were popular choices.”

“I would suggest for stores in and outside of the path of totality to prepare for the event.

You have to be prepared for it, and you can’t prepare a week out,” Rhoads said. “Make sure you have necessities covered. Stock up on food, fuel and packaged beverages, and also make sure to carry a generous supply of protective eclipse glasses.”

Joe Lackey, president of the Indiana Grocery and Convenience Store Association, learned from the 2017 eclipse.

As he pushes the members of his association to prepare for the eclipse with plans for food and fuel, he has taken stock of the experiences in neighboring Kentucky, which was in the path of totality during the previous solar eclipse.

larrybraunphotography.com/Getty Images; AlexLMX/Getty Images

EVANSVILLE, INDIANA

2:04 PM The spillover effect of the eclipse really did boost our store sales.”

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Plan your personnel, because you’re going to need personnel for this.”

THE ECLIPSE IS AN OPPORTUNITY As Rhoads noted, a singular event such as this offers a lot of opportunities for c-stores—it’s a way to offer special deals and promotions for customers, ranging from the special eclipse craft beer Rhoads offered in his store to eclipse merch and more, in addition to the eclipse protective eyewear.

elenavolkova/Getty Images

C-STORES AND THE 2017 ECLIPSE

THROWBACK:

In 2017, Rhoads drove down from Washington to the path of totality in Oregon. A word for his trek? Chaos. Rhoads noted he drove down to the site a couple of days before the actual event, and it was clear that he was one among many.

“At least 500,000 people came in to see the event, and these towns did a really good job of preparing, but you only have so much infrastructure for that number of cars,” he said. “One of the things we experienced on the drive was stop-and-go traffic for 20 miles.”

NACS Magazine covered the 2017 total solar eclipse after the event occurred.

“Everybody wanted the eclipse glasses, but we didn’t have any,” said Jean Milligan, deli manager at Reata Travel Stop in Sterling, Colorado. “Big mistake.” The travel stop did, however, stock up on various eclipse t-shirts, hoodies and souvenir items, which sold well.

At Milligan’s site, traffic exceeded expectations. “It was nonstop, but we didn’t run out of food,” she said.

On the big day, a Weigel’s store in Sweetwater, Tennessee, which was in the path of totality, threw an on-site eclipse party.

The event included a spinner wheel, which let guests spin and win prizes, and samples of SharkEE, the chain’s frozen carbonated beverage.

“The kids made star bracelets and received coloring pages,” Drew Sparks, digital marketing coordinator at Weigel’s, said in 2017. “We passed out eclipse info sheets to the adults.”

Some retailers were happy to be part of the event even if they were not overwhelmed by traffic.

“We didn’t get near [as many] people in town as we expected to, but we had a great time,” said Chuck Allen, who managed a Twice Daily store in Cadiz, Tennessee, in 2017. The store hosted “Blackout in the Bluegrass,” a party for out-of-town guests and resident eclipse buffs.

Those in the zone of totality should expect a memorable experience.

“It was amazing to have it happen at our home,” said Natalie Bates, who experienced the event while working at Bodega convenience store in Jackson Hole, Wyoming. “The temperature dropped, and everything was dark. Dogs started barking, and babies started crying. It was kind of magical and cool.”

“While the exact number is still unknown, it’s predicted that somewhere in the vicinity of 500,000 to a million people may show up” in Indiana alone, Lackey said.

“Indiana’s listed as one of the top 20 sites in the world to visit to view the eclipse.”

He continued: “There’s a lot of population centers in Indiana that the eclipse is going over. It’s going over Vincennes and Evansville, it’s going to go right over Indiana University, and it’s almost over the Lucas Oil Stadium in Indianapolis. And then we don’t know how many people are just going to be daytrippers that are going to come over from Chicago or St. Louis.”

According to Lackey, convenience stores are going to need to plan for the event in advance—but stay flexible. One big consideration is the weather. However, the question for stores in and around the eclipse zone isn’t whether there will be a surge of traffic. It’s a question of how big that surge might be.

Along with stocking up on food, beverages and fuel, c-store operators will have to consider their staff, as well.

“Plan your personnel, because you’re going to need personnel for this,” Lackey said.

“You should also anticipate that personnel aren’t going to want to work that day— they’re going to want to see the eclipse, too.”

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ERIE, PENNSYLVANIA

3:18 PM

Country Fair is a Pennsylvania-based convenience store retailer that has 40 stores located in Erie County alone. Erie is the only major city in the state within the path of totality, making it an expected hotspot for people looking to view the total solar eclipse.

Visit Erie, a marketer for the city’s tourism, is anticipating around 200,000 visitors for the eclipse, which is two-thirds the population of the city.

As part of Country Fair’s prep for the eclipse, it signed on as a corporate sponsor for Visit Erie. According to Stacy Kline, advertising manager for Country Fair, the move is beneficial for the convenience store because the city will do a lot of promoting for the retailer. Visit Erie is going to highlight Country Fair as a location where guests can purchase the special eclipse glasses, Kline said, and its visitor guide will highlight the company’s c-stores as rest stops in Pennsylvania.

Country Fair purchased 100,000 custom-printed eclipse glasses, branded with the company’s logo, that will be offered at all Country Fair locations. The c-store’s Club CITGO loyalty members will receive a free pair, and the glasses will also be available to everyone for free with any purchase.

“We have so many stores, and they are 78 MARCH 2024 convenience.org

conveniently located for people coming to watch the eclipse,” Kline said. “I think a lot of people will remember the glasses last minute, coming into our stores thinking ‘Oh, I really need some glasses.’”

The eclipse is an opportunity for c-stores, Kline noted.

“Our first campaign goal is to get customers to download our app and increase our Club CITGO loyalty membership,” she said.

“Our second goal is to capture visitors that are coming to the area and introduce them to Country Fair. We want our visitors to know Country Fair as a one-stop shop for coffee and snacks, beer and wine, gas and more.”

She added, “Our last campaign goal ties into our mission, which is: Country Fair cares. We care about our employees, our customers and our community. We’ve been here since 1965, so we have deep roots in the community. We want to make sure that the glasses can get into people’s hands at convenient locations at low cost.”

Leah Ash is the assistant editor at NACS. She can be reached at lash@convenience.org.

Sean Pavone/Getty Images

Stock up on food, fuel and packaged beverages.”

Your Store Could Be Next…

The NACS In Store program brings convenience and fuel industry members together with members of Congress to gain first-hand knowledge of our industry and local operations.

Multiple dates and locations available across the United States.

Learn how you can host a NACS In Store event in your store.

Cool New Products Guide This advertorial-style guide of services and packaging appears monthly and is an information-packed tour of ideas and approaches that can change how consumers view your store or choose your brand. It spotlights the newest thinking in convenience and fuel retailing and gives you an advance look at ways of staying in front of industry trends.

Products are categorized the same way we organize the Cool New Products Preview Room at the NACS Show each year in October— New Design, New to the Industry, New Flavors, Health & Wellness, Green (EcoFriendly), New Services and New Technology.

Products are considered “new” this year if they’ve been introduced since October 2023.

The products featured here also can be seen in the Cool New Products Discovery Center at www.convenience.org/coolnewproducts.

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80 MARCH 2024 convenience.org

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GAS STATION GOURMET

A Big Personality in a Small Town Rock’s Grill & Pizzeria serves everything from quiche to freeze-dried fruit.

BY AL HEBERT If you’re roadtripping around the country, you will often find a convenience store with a large presence in a small town. That presence has nothing to do with square feet. It’s about food and personality.

Rock’s Grill & Pizzeria has a big presence in Fairfax, Oklahoma, population 1,136.

Rock and Mitzi Reese are the co-owners. Mitzi explained, “My husband is third-generation. His grandparents and parents started it all.”

In 2022, Mitzi hired Candice Coble, who had a few ideas on how to improve things. Soon, she was managing the store.

Coble said, “I was only really looking for a part-time job, but I met Rock and Mitzi and instantly knew that’s where I was supposed to be and that we would be a great team.”

“The biggest thing for us is that this store is like a hidden gem,” Coble said.

“It looks like a gas station, it looks like a c-store, but you have to come inside for the food. We say comfort food is created here.”

Mitzi and Coble approach menu planning the same way. “Mitzi walked in [one day] and said, ‘Quiche sounds really good.’ She had a meme about quiche. I said, ‘I guess I’m going to make quiche.’ A lot of my day goes like this. I feel like making something, and I make it,” Coble said.

84 MARCH 2024 convenience.org

There isn’t a huge pool of potential employees in a town of just over 1,100 people.

Rock enjoying a burger in store.

DESSERT FIRST Baked goods are the newest addition to the food program, but they’ve quickly become a hit with customers. There was one small hitch in the beginning: There was no oven.

“Rock suggested I start baking banana bread,” Coble said. “I told him we didn’t have an oven. The next day, he started shopping for an oven.”

The oven was a good move. It’s led to a thriving bakery. In fact, when you walk into the store, it’s like a boulangerie.

“We can’t keep the chocolate chip cookies,” Coble said. “We bake those all day. They go like crazy. We have a secret ingredient.”

She continued, “Blueberry muffins are hands down the best sellers. People call in to see if we have muffins. Everything is made from scratch, and that is the difference. I have a business background, but I love baking. You can always tell when someone’s baking because it’s part of their job as opposed to when they’re baking because they enjoy baking.”

The Ding Dong Cake—essentially a giant Ding Dong—is an example of the shoot-from-the-hip strategy Mitzi and Coble employ. The popular cake started with a photo Mitzi showed Cable.

Then, there’s no-bake cookies.

“I hate no-bake cookies,” she said.

“I could spend my life making no-bake cookies and never make enough. I don’t have a good relationship with them. I’ll

Co-owner Rock Reese stands in front of Rock’s Grill & Pizzeria. He is a third-generation operator.

We’re not hiring a convenience store clerk, we’re hiring a sales representative.” put a batch on the counter and come out 15 minutes later and they’re gone. We can sell 50 pans a day. When customers see them, they will buy all of the containers.”

The cookies are made from peanut butter, chocolate, oatmeal, sugar, butter and a bit of vanilla. They are simple and a bit addictive.

MADE BY HAND … AND FREEZE-DRIED Burgers and pizza are two popular items that always seem to sell. At Rock’s, those two items are combined to form what might be the perfect meal.

“Our cheeseburger pizza is popular,” Mitzi said. “It has mustard on the crust [and] our beef topping with pickles, onions, cheese. I think it’s crazy. It’s not on our menu, but customers know it’s [available].”

It’s always a good idea to have unique inventory in your store. “We have freezedried candy and fruit. It’s like concentrate. It takes all the moisture out, and the flavor is enhanced,” Mitzi said.

She added, “Freeze-dried Skittles is the big thing now. They puff up when you freeze-dry them, and they explode into dust when you bite into them. We do fruit, primarily strawberries and bananas. Customers love them—we can’t keep them on the shelf.”

In many eateries, an order is brought straight to the table. But not at Rock’s.

Mitzi came up with a strategy that is a sort of food parade.

She said proudly, “We walk through the store with the orders. All of the other customers see it and order it.”

FINDING THE RIGHT PEOPLE There isn’t a huge pool of potential employees in a town of just over 1,100 people. Some people have cycled through Rock’s a few times.

Mitzi said, “There’s a lady [who] worked here in high school. About 20 years later she has come and gone several times. You get burned out, get a new job, get burned out and come back.

Everyone in town has worked for us at one point.”

She added, “We pay well above minimum wage.”

Coble said, “If the store is successful, we get recognized with Christmas bonuses. We get pay raises based on how the store is doing. It’s beneficial that it’s a small town, so employees have that small-town charm. Aces in places is about putting people in the right place.

Will they work in the front of the store?

Will they be friendly? It’s about training them to be personable and kind.”

Mitzi sees her team as more than clerks.

“We’re not hiring a convenience store clerk, we’re hiring a sales representative,” she said. “I want them to think, ‘What pairs well with a bag of Doritos?’

A lot of times, customers don’t know they want something else. [Employees] have to have sales skills.”

Al Hebert is the Gas Station Gourmet, showcasing America’s hidden culinary treasures. Find him at www.GasStationGourmet.com.

NACS MARCH 2024 85

CATEGORY CLOSE-UP FOODSERVICE

HOT IN FOODSERVICE 86 MARCH 2024 convenience.org

PerfectFood/Shutterstock; VRVIRUS/Shutterstock

WHAT’S

Strategic planning and diverse menus spice up foodservice sales figures.

BY PAT PAPE

T

here are two certainties in the convenience store industry: consumers are often hungry and usually in a hurry.

The foodservice category, which includes prepared and commissary foods and hot, cold and frozen dispensed beverages, saw 2022 sales increase 14.3% year over year to $56,491 per store, per month, according to the NACS State of the Industry Report® of 2022 Data. Gross profits increased 8.7% for a total of $29,174 per store monthly.

(NACS reveals the latest SOI data at the SOI Summit in Chicago, April 3-5.

Order your copy of the NACS State of the Industry Report® of 2023 Data at convenience.org/store.)

Except for hot dispensed beverages, all foodservice subcategories saw more sales in 2022 than in 2021. But prepared food was the superstar, generating 68.4% of foodservice sales with year-onyear sales growth of 13.8% and a 9.0% bump in gross profits.

“Commissary has not lost the steam it gained during the pandemic and continues to grow,” said Emma Tainter, research analyst at NACS. “But not at the same rate as prepared food.”

Industry Sales

% of In-Store Sales

24.08% 25.57% 2021

2022

Avg. Sales/Store

$49,408 $56,491 2021

2022

Source: State of the Industry Report® of 2022 Data

Unfortunately, hot dispensed beverages are not enjoying the same post-pandemic sales as prepared food.

“Hot dispensed beverages have been on a downward trajectory and ended September with about the same level of sales in 2022,” said Tainter. “Coffee made up 72.2% of sales, a slight drop from 73.9% in 2021. Cappuccino and specialty coffee sales were up to 18.7% of the category, an increase over the 16.9% in the previous year.”

In August, Starbucks announced that its cold beverage business made up 75% of sales in the third quarter.

“That’s where the market is going,” said Tony Sparks, head of customer wow for Curby’s stores. “The younger population wants a more fun caffeinated drink than traditional coffee. So, we’re concentrating on our blended and flavored coffees.”

Meanwhile, carbonated drinks made up 52.2% of the cold dispensed beverage category in 2022, down slightly from 2021 (54.5%). But gross margins were 55.08%, up from 49.58% the previous year.

There is one caveat to those 2022 sales figures. NACS generated an inflation model comparing merchandise and foodservice, which found that inflation alone accounted for 7.9% of merchandise growth and 9.7% of foodservice growth. When applied to merchandise sales, which saw an overall 5.8% sales increase, the model found that sales did not outpace the 7.9% impact of inflation. But foodservice was a winner. The 14.3% jump in foodservice sales exceeded the 9.7% attributed to price increases year over year.

CURRENT CHALLENGES Inflation has impacted food prices and consumers’ willingness to part with their money. According to the Bureau of Labor Statistics, the cost of storebought food increased 23.5% from February 2020 to May 2023, while the average hourly wage for private-sector workers rose 17.1%. The U.S. Department of Agriculture predicts food prices overall will increase 1.2% in 2024, with food-away-from-home prices climbing 4.9%.

NACS MARCH 2024 87

CATEGORY CLOSE-UP FOODSERVICE

Category Data Same-Firm Sample, Per Store, Per Month Percent of Sales

Avg. Sales/Store

2021

2022

2021

2022

2021

2022

Prepared Food

15.13%

16.45%

$39,452

$44,878

95.4%

96.0%

Commissary

2.66%

2.58%

$6,020

$6,351

95.9%

93.7%

Hot Dispensed Beverages

2.88%

2.66%

$6,173

$6,147

98.4%

99.0%

Cold Dispensed Beverages

1.87%

2.28%

$4,018

$4,569

97.6%

98.5%

Frozen Dispensed Beverages

1.53%

1.60%

$3,572

$3,977

93.3%

93.6%

Foodservice

24.08%

25.57%

$49,408

$56,491

Food service

% of Stores Selling

Source: NACS State of the Industry Report® of 2022 Data

CSX, the engine behind category metrics and NACS State of the Industry data, provides current and customizable tools for financial and operational reporting and analysis in the convenience industry. Retailers can measure their company by any of the myriad metrics generated via our live database.

Contact Chris Rapanick at (703) 518–4253 or crapanick@convenience. org for a complimentary executive walkthrough.

88 MARCH 2024 convenience.org

Managing expenses is an ongoing challenge for all retailers. Analyzing trends and planning ahead are mandatory for making informed decisions in today’s market, according to Jimmy Crowder, director of food innovation at TXB. “Negotiating prices, rebates and deviations is not just an annual routine for us; it’s a crucial part of our strategic process,” he said. “By engaging in these negotiations regularly, we ensure that we stay ahead of the curve, mitigating the impact of price fluctuations on our bottom line.”

Several operators say food prices have stabilized somewhat since pandemic days, but other expenses challenge their programs.

“Paper products are the bane of my existence,” said Bryan Davis, food service manager for Ozarks Travel Center and Hot Spot c-stores. “I save a lot if I order in advance, but I don’t have enough storage space to stock up.

Consumers don’t understand why prices are the way they are. A single container for a slab of ribs costs me $1.50.”

JulieAlexK/Getty Images

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There’s been a surge in takeaway orders, especially for comfort foods and easy-to-eat options.”

UPTICK IN TAKEOUT According to Hospitality Technology, an industry resource, approximately 60% of U.S. consumers order food for takeout or delivery once a week, with dinner being the most popular delivery meal. Recognizing the potential, many c-stores are focusing on customers who prefer at-home dining, minus the cooking.

“There’s been a surge in takeaway orders, especially for comfort foods and easy-to-eat options like sandwiches,” said Chad White, food service category manager for Rutter’s. “Customers are seeking familiar flavors that they can enjoy at home or on the road. Classics like burgers, pizza and ready-to-eat items remain popular.”

EXPANDING MENUS Non-traditional c-store proteins, such as brisket, pulled pork and fish, have become more common. “Besides our brisket quesadilla, we have our brisket sandwich, brisket taco and brisket egg taco, to name a few,” said Crowder. “Our guests really gravitate towards those offerings.”

90 MARCH 2024 convenience.org

TXB stores are a destination for TexMex foods, but the demand for similar menu items is “exploding all throughout the country,” Crowder added. “The universal appeal of a well-crafted taco is undeniable. It’s not just about geography; it’s about delivering an exceptional dining experience.”

At Kwik Trip, all take-home-meals are made at the chain’s La Crosse, Wisconsin, kitchen and transported to the stores daily, although fried chicken is cooked in-store. “We’ve rotated through countless LTO options to find out what our guests are interested in purchasing,” said Paul Servais, senior director of food service for Kwik Trip. The overall winner is “mac and cheese with proteins, such as chicken, bacon, brisket and pulled pork.”

Ozarks Travel Center has offered seafood options in the past, some of them pricey, with mixed results. Then, the retailer hit the jackpot when it began frying white fish in a cornmeal breading. “I buy fish by the trailer load and oil by the truck load,” said Davis. “It’s a big item.”

The freedom to choose from a diverse menu attracts hungry shoppers, and Pilot Flying J offers a year-round soup bar in more than 250 outlets.

“While we do see more guests enjoying soup when the weather is cold, our rotating menu provides them with fresh, new flavors to try throughout the year,” said Savannah Johnson, category-food manager at Pilot Travel Centers. “Some of our soup bar offerings are a hearty Italian beef lasagna, chicken pot pie, loaded potato, minestrone and everyone’s favorite, chili.”

Pilot has 350-plus locations featuring in-house hot delis and partners with 13 national QSR brands, including Chester’s Chicken, Pizza Hut and Wendy’s.

“By providing a variety of food options, our guests can find familiar favorites and try new things while on the road,” Johnson said.

RFondren Photography/Shutterstock

CATEGORY CLOSE-UP FOODSERVICE

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CATEGORY CLOSE-UP FOODSERVICE

The Hy-Vee owned c-store chain Fast & Fresh offers to-go Asian dishes and nori sushi roll items. “They’re great meal options and continue to set us apart from the competition,” said Tina Potthoff, senior vice president of communications for Hy-Vee. “Our sushi is rolled fresh daily at multiple Hy-Vee locations, which delivers on our promise of fresh, delicious food.”

Approximately 60% of U.S. consumers order food for takeout or delivery once a week.

92 MARCH 2024 convenience.org

Three of the top five heat-and-eat meals sold by Fast & Fresh are Asian-inspired: general’s chicken, sesame chicken and orange chicken.

HIGH TECH CONVENIENCE As pick-up and delivery surge, new technologies provide improved ways for consumers to get the food they want.

According to White, online ordering apps are a must. “There’s been a significant rise in our app-based orders,” he said. “The convenience of browsing menus, customizing orders and seamless transactions makes using apps a preferred choice for many customers.

It’s a trend that aligns with the convenience-driven lifestyle.”

The National Restaurant Association predicts more foodservice providers will upgrade their drive-thrus in coming months, adding license-plate recognition technology for speed and personalize service. The technology can be synchronized with a c-store’s loyalty program and notify customers what rewards they have coming when they pull into the drive-thru.

The potential for drone delivery, which was highly publicized pre-pandemic, is back in the news, although technology consultants at Gartner believe large-scale autonomous drone flights won’t be feasible before 2025.

7-Eleven has experimented with drone deliveries in Florida and South Korea, and Chick-fil-A recently tested drones in one Florida neighborhood.

Amazon offers drone delivery in College Station, Texas, and Lockeford, California, while Walmart has announced plans to offer drone delivery to 75% of the Dallas-Fort Worth area this year.

Presently, Walmart’s drone-delivered packages are limited to six pounds or less, but future drones are expected to tote up to 15 pounds.

Pixel-Shot/Shutterstock

NACS reveals the latest SOI data at the SOI Summit in Chicago, April 3-5. Order your copy of the NACS State of the Industry Report of 2023 Data at convenience.org/store.

PUT DATA TO WORK When guesswork doesn’t cut it.

At NACS, we're experts in catalyzing growth through industry data and actionable insights. Join us in April at NACS State of the Industry Summit, the epicenter of convenience industry knowledge. You will discover the latest financial, operational, categorical, and consumer trend data and the insights to put it to work.

April 3-5, 2024 Rosemont, IL

Strengthen Your Competitive Advantage convenience.org/SOISummit

CATEGORY CLOSE-UP FOODSERVICE

INVESTING IN PEOPLE As always, employees play a key role in foodservice success. But employee turnover in the c-store industry was 130% in 2022, according to the NACS State of the Industry Compensation Report.

“It’s not that we can’t find people who want to work. Our issue is the cost of labor,” said Sparks. “Entry-level workers have more options now than they did a few years ago. They can go work at an Amazon warehouse for $22 an hour.”

Employee shortages can create instore issues ranging from slow customer service and lost sales to unstocked shelves and increased shortage. In January, Rutter’s announced its eighth pay

We’ve committed ourselves to paying competitively.

We want to invest in the right people.”

ADVERTISER INDEX Contact Information

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increase in four years. The chain now offers starting workers $18 per hour, and other retailers, ranging from Buc-ee’s to Ozarks Travel Center have boosted wages to stay competitive.

The cost of “labor has gone through the roof,” said Davis. “But we’ve committed ourselves to paying competitively. We want to invest in the right people.”

Pat Pape worked in the convenience store industry for more than 20 years before becoming a full-time writer. See more of her articles at patpape.wordpress.com.

Thank you to these advertisers who have demonstrated their support of the convenience and fuel retailing industry by investing in NACS Magazine.

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ADD Systems....................................................................................... 16 www.addsys.com

KeHE Distributors Holdings LLC............................................ 80 www.kehe.com

NACS Talent Insights Dashboard...................................................... 95 www.convenience.org/Research

Altria Group Distribution Company...........Inside Front Cover AGDCTradeRelations@Altria.com www.altria.com www.tobaccoissues.com

Krispy Krunchy Foods LLC...................................................... 51 www.krispykrunchy.com

NACS THRIVR & TruAge....................................................................... 41 www.convenience.org/THRIVR www.mytruage.org

Liggett Vector Brands Inc............................Inside Back Cover (919) 990-3500 www.liggettvectorbrands.com

NuVue Foods Inc................................................................................ 36 www.18thstreetfresh.com

Mars Wrigley........................................................................... 15 www.mars.com/made-by-mars/mars-wrigley

Placon.................................................................................................55 www.placon.com

McLane Company Inc.............................................. Back Cover www.mclaneco.com (254) 771-7500

Polar King International Inc............................................................. 29 (866) 576-7645 www.polarking.com www.polarleasing.com www.polarkingmobile.com

BIC USA Inc........................................................................ 81, 82 www.us.bic.com/en_us Buzzballs LLC......................................................................................67 (972) 242-3777 www.buzzballz.com Calico Brands Inc................................................................................53 www.calicobrands.com Cenex (CHS Inc.).....................................................................47 www.cenex.com/chsinc/about-chs

Mike’s Hot Honey................................................................................ 17 www.mikeshothoney.com MIPOD..................................................................................................82 www.mipodwholesale.com

Cool New Products Guide............................................................80-82 www.convenience.org/Media/NACS-Magazine/Cool-New-Products

Mondelez International...........................................................3 www.mondelezinternational.com Monster Energy Company.....................................................39 www.monsterenergy.com

Diageo Beer Company USA............................................................ 7, 77 www.diageo.com

MOOSOO Corporation........................................................................ 69 www.moosoo.com

DMF Bait Company............................................................................ 54 www.dmfbait.com

NACS In-Store.....................................................................................79 www.convenience.org/Advocacy/Get-Involved/NACS-In-Store

Gold Medal Products Company......................................................... 81 (513) 769-7676 www.gmpopcorn.com

NACS Membership..............................................................................83 www.convenience.org/Membership

Hunt Brothers Pizza.............................................................. 89 www.huntbrotherspizza.com Johnsonville Sausage Co................................................................... 61 www.johnsonville.com

94 MARCH 2024 convenience.org

NACS Show 2024 Save the Date......................................................... 91 www.nacsshow.com NACS SOI Summit...............................................................................93 www.convenience.org/events/SOI

Premier Manufacturing.......................................................................5 (636) 537-6800 www.gopremier.com Ready Training Online...........................................................33 (800) 247-8514 www.readytrainingonline.com Stone Gate Foods...............................................................................35 (952) 445-1350 www.stonegate-foods.com Swedish Match North America LLC (Moist Snuff).................75 (800) 367-3677 www.smna.com Swedish Match North America LLC (ZYN).............................. 9 (800) 367-3677 www.smna.com Trion.................................................................................................... 13 (800) 444-4665 www.triononline.com TY INC..................................................................................................43 www.ty.com

Your exclusive source of the most up-to-date compensation data for the convenience industry is now available in an interactive, digital tool. The Dashboard is the only convenience-specific HR professional's guide to industry benchmarks on compensation, benefits, recruitment and retention.

Benchmark against comprehensive, retailer-supplied data to offer differentiated compensation and incentive programs.

Design a competitive strategy to recruit and retain corporate, operations and store-level personnel.

Build high-performing, efficient teams through insights on screening, hiring and training practices from leading retailers.

Offering Wellness Benefits In the past, retailers have set themselves apart by offering a health insurance package consisting of medical, dental and vision, but more often than not these are seen as table stakes for hourly employees today.

So, how can employers increase their overall attractiveness to potential employees?

One way is through wellness or other benefits in addition to the traditional benefits package.

Bereavement leave was the most commonly offered benefit for store-level employees, offered by 82% of companies who

68% 66%

71% Shift Differentials

To

82% Bereavement Leave

p

participated in the NACS State of the Industry Report® of 2022 Data. The second most frequently offered benefit was shift differentials, offered by 71% of firms, followed by bonus/incentive programs (68%), employee assistance plans (66%) and disability insurance and maternity/paternity leave (both 63%).

These benefits are typically more likely to be available at larger retailers, but the trend of offering more benefits includes retailers of all sizes. As the race to recruit the best talent continues, it is more important than ever to get creative with benefits, listen to employees’ requests, and tailor the benefits you offer to the prospective employees you are trying to hire.

Bonus/Incentive Programs

Employee Assistance Plan

ellness Be W ne 15

63% Disability Insurance

s fit

63%

24% Maternity/ Paternity Leave

Long-Term Care Insurance

25%

58%

Earned Wage Access

30%

Wellness Benefit

In-Store Discounts

Percentage of Stores Offering

Career Development Planning

58%

31% Gas Discounts

37%

Education/Tuition Assistance

40%

Health and Wellness Practices

96 MARCH 2024 convenience.org

45% Flexible Spending Account

Flexible Scheduling

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%

BY THE NUMBERS