NACS Magazine October 2024

Advancing Convenience & Fuel Retailing

OCTOBER 2024 SALTY SNACKS Balancing innovation and classics TRAINING TIPS Using games and microlearning

Hot F lavors Sweet and spicy stays strong and other trends for 2025

convenience.org

Advancing Convenience & Fuel Retailing

OCTOBER 2022 SPIKED SODA

Behind the boozy soft-drink trend THIRD SHIFT

How retailers make 24/7 operations work

convenience.org

Advancing Convenience & Fuel Retailing

OCTOBER 2024 SALTY SNACKS Balancing innovation and classics TRAINING TIPS Using games and microlearning

Hot F lavors Sweet and spicy stays strong and other trends for 2025

convenience.org

Protect your business, prevent underage access to tobacco products, and help ensure that retail remains the most trusted place to buy tobacco products with Age Validation Technology (AVT).

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ONTENTS NACS / OCTOBER 2024 FEATURES

46 More Than a Flavor This article is brought to you by Kretek International.

For many smokers, the taste of menthol is a unique multisensory experience that is an irreplaceable part of their tobacco ritual.

52 Flavor Forward

98 Catering to the Next Generation

Distributors are focusing on the preferences of young adult shoppers.

106 The Second Front Door Bathroom standards are no joke today—expectations are high, and c-stores that don’t meet them will lose sales.

Food and beverages are being influenced by many taste preferences, creating bold, exciting and new profiles for every demographic.

63 Training’s Digital Era

Mexican Beer’s ‘Fighting Spirit’ Unpacking the rise of imported beer as some brands surpass domestic labels.

81

C-store employees make gains when they learn via video bursts and mini games.

72 Exploring the Beer Cave Walk in refrigerators expand selection, drive traffic and allow c-stores to compete with larger retailers.

89 No Nicotine: Novelty or New Segment?

Retailers, consumers and major manufacturers are looking at nicotine-free products.

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 OCTOBER 2024 1

ONTENTS NACS / OCTOBER 2024

114 Putting Truck

158 Five Foodservice

176 Revving Up With

With a shortage of parking spaces for long-haul truck drivers, c-stores and travel stops aim to close the gap.

Smart technology, UI updates and automations can help improve offerings and reduce labor.

122 What’s Driving Food

165 What’s Hot

C-stores are uniquely positioned to utilize retail media networks, which can drive sales and reinforce brand loyalty.

This Q&A is brought to you

by Inline Plastics.

Inline Plastics shares how changing consumer expectations are leading to fresh takes on packaging.

New products in refrigeration give retailers merchandising options.

124 Here Today, Gone Tomorrow

This article is brought to you by Vixxo.

Artificial intelligence can streamline technician workflow.

Parking on the Map

Packaging Innovation?

Limited-time-only beverages create excitement in the vault and spur incremental sales.

132 Own Your Online Presence Three elements define your digital footprint: searchability, social media and reputation management.

140 Carding Better Age verification goes digital and gets more discreet.

146 Self-Serve Turns 60 Industry icon John Roscoe popularized self-serve … now he ponders what’s next.

154 Keeping Up With the Consumer

Convenience Voices has started gathering 2024’s customer insights.

2 OCTOBER 2024 convenience.org

Equipment Innovations

Retail Media Networks

194 The Latest on

in Cold Storage

Norway’s EV Explosion What North American retailers can learn from the leading country’s prolific EV adoption.

172 Streamlining Maintenance

202 Scanning the Horizon This article is brought to you

by GS1 US. Retailers should start laying the groundwork now for Sunrise 2027’s transition to 2D barcodes.

186

Delivering Value Customers are increasingly cost-conscious, but value is more than a price point.

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ONTENTS NACS / OCTOBER 2024

DEPARTMENTS 10 From the Editor 12 Faces of the Industry 14 NACS News 24 Convenience Cares 28 Inside Washington

The credit card industry keeps putting more money and muscle into stopping the CCCA—perhaps to its detriment.

38 Ideas 2 Go 206 Cool New Products 220 Gas Station Gourmet

Fastime stores highlight classic Southern food and an inviting atmosphere.

222 Category Close-Up

Customers continue to depend on c-stores for salty snacks, but they also seek new and exciting flavor innovations.

232 By the Numbers

IT’S A FACT

4.75%

The percentage of in-store sales accounted for by salty snacks in 2023.

CATEGORY CLOSE-UP PAGE 222

PLEASE RECYCLE THIS MAGAZINE 4 OCTOBER 2024 convenience.org

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

Premier Manufacturing is excited to introduce NIC-S®. Premium tobacco-free nicotine pouches backed by extensive scientific research, made with pharmaceutical grade nicotine, and is setting a higher standard for nicotine pouches.

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/ OCTOBER 2024 EDITORIAL

NACS BOARD OF DIRECTORS

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

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

Ben Nussbaum Editor-in-Chief (703) 518-4248 bnussbaum@convenience.org Leah Ash Editor/Writer lash@convenience.org Noelle Riddle Editor/Writer nriddle@conveneince.org Lauren Shanesy Editor/Writer lshanesy@convenience.org CONTRIBUTING WRITERS Angel Abcede, Terri Allan, Joe Beeton, Stephen Bennett, Jamie Grill Goodman, Sarah Hamaker, Al Hebert, Stephenie Overman, Pat Pape, Keith Reid, Emma Tainter DESIGN MX www.themxgroup.com

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

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

Nancy Pappas Marketing Director (703) 518-4290 npappas@convenience.org Logan Dion Digital Media and Ad Trafficker (703) 864-3600 ldion@convenience.org

TREASURER: Lisa Dell’Alba, Square One Markets Inc. OFFICERS: Anne Gauthier, St. Romain Oil Company LLC; Varish Goyal, Loop Neighborhood Markets; Brian Hannasch, Alimentation Couche-Tard Inc.; Charles McIlvaine, Coen Markets Inc.; Lonnie McQuirter, 36 Lyn Refuel Station; Tony Miller, Retail Delek US GENERAL COUNSEL: Doug Kantor, NACS LIAISON: Joseph Sheetz, Sheetz Inc. MEMBERS: Chris Bambury, Bambury Inc. dba BONNEAU; Tom Brennan, Casey’s General Stores Inc.; Andrew Clyde, Murphy USA; Terry Gallagher, Gasamat Oil Corp/Smoker Friendly; Raymond M. Huff,

HJB Convenience Corp. dba Russell’s Convenience; John D. Jackson, Jacksons Food Stores Inc.; Mark Jordan, Refuel Operating Company; Missy Matthews, Childers Oil Co. dba Double Kwik; Brian C. McCarthy, Blarney Castle Oil Co.; Natalie Morhous, RaceTrac Inc.; Jigar Patel, FASTIME; Robert Razowsky, Rmarts LLC; Stanley Reynolds, 7-Eleven Inc.; Kristin Seabrook, Pilot Travel Centers LLC; Babir Sultan, Fav Trip; Richard Wood, Wawa Inc. PAST CHAIRS: Donald R. Rhoads, The Convenience Group LLC; Jared Scheeler, The Hub Convenience Stores Inc. SUPPLIER BOARD REPRESENTATIVES: David Charles Sr., Cash Depot; Vito Maurici, McLane Company Inc. STAFF LIAISON: Henry Armour, NACS

NACS SUPPLIER BOARD SUPPLIER BOARD CHAIR: David Charles, Cash Depot CHAIR-ELECT: Vito Maurici, McLane Company Inc. VICE CHAIRS: Josh Halpern, JRS Hospitality / BCIP dba Big Chicken; Kevin M. LeMoyne, The Coca-Cola Company; Bryan Morrow, Chobani & La Colombe MEMBERS: Tony Battaglia, Tropicana Brands Group; Patricia Coe, Advantage Solutions; Jerry Cutler, InComm Payments; Jack Dickinson, Dover Corporation; Matt Domingo, Reynolds American Inc.; Mark Falconi, Greenridge Naturals; Ramona Giderof, Diageo Beer Company USA; Mike Gilroy, Mars Wrigley; Danielle Keck Holloway, Altria Group Distribution Company; James Hughes, GALLO; Kevin Kraft,

Q Mixers; Jay Nelson, Excel Tire Gauge, LLC; Nick Paich, GSTV; Sarah Vilim, Keurig Dr Pepper PAST CHAIRS: Brent Cotten, The Hershey Company; Kevin Farley, W. Capra Consulting Group LLC (Axonet); Drew Mize, PDI Technologies RETAIL BOARD REPRESENTATIVES: Tom Brennan, Casey’s General Stores Inc.; Scott E. Hartman, Rutter’s; Kevin Smartt, TXB Stores GENERAL COUNSEL: Doug Kantor, NACS STAFF LIAISON: Bob Hughes, NACS

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

Showing Off

It’s that time of year when everything in the industry is bigger and better.

T

he October issue of NACS Magazine is always our signature issue. AdverIn 1964, tisers, understandably, want self-serve to put their products in front came to convenience of the c-store community at stores. the NACS Show and during the planning cycles that, for many retailers, come later in October. More ad pages means the NACS team can bring you more content, which in turn means more perspectives on this endlessly fascinating industry.

If you’re reading this while on-site at For example, this issue will take you NACS Show, I hope you: back in time to 1964 when c-stores first • Discover great new ideas to drive added self-serve fuel. John Roscoe was success for you and your business. instrumental in driving industry adop• Connect with peers you haven’t met tion. He shares his story in “Self-Serve yet and catch up with old friends.

Turns 60.” (Be sure to check out the • Have time to reach out and say hi … to Ben Nussbaum vintage advertisements in that story.) me or anyone else on the NACS team.

Editor-in-Chief We also look at an interesting We’re easy to spot—just look for the long-term opportunity: creating more NACS name tags. parking spaces for semi-trucks. “Putting Truck Parking on the Map” is written

by Lorrie Grant, who spent more than a Correction: decade covering the trucking industry.

In the August article “A Fresh Focus on Design,” Another highlight for me is our coverwe failed to properly credit King Retail Solutions for its work. King Retail Solutions is the company age of innovations in training. “Trainbehind the Jacksons Food Stores and Power Market ing’s Digital Era” helps retailers of all examples in that story. Check out kingrs.com to see stripes find their own sweet spot for the the company’s full portfolio. most effective training tactics.

10 OCTOBER 2024 convenience.org

NACS OCTOBER 2024 11

Celebrating

UP FRONT FACES OF THE INDUSTRY

the people who make our industry great.

Joyce Kendall Concierge Dash In

Convenience Concierge

G

uests visiting the Dash In store in Indian Head, Maryland, are greeted by plenty of friendly faces, but Joyce Kendall, the store’s dedicated concierge and guest experience member, stands out.

Joyce is there to make customers feel at home and help them find everything they need while in Dash In, the new concept store from the Wills Group, which is a food- and experience-forward spin on convenience retail.

As the concierge, Joyce is a key part of the store’s focus on hospitality and being a pillar of its neighborhood. At any given time, you can find her walking the floor with samples of the kitchen’s fresh food items to try, helping guests customize 12 OCTOBER 2024 convenience.org

their order at the kiosk, making personalized recommendations or just asking visitors how their day is going and getting to know them like a neighbor.

Joyce has been with Dash In for eight years and started as the Indian Head location’s concierge when the store opened in April. She’s always loved working with people, and spoke with NACS about: WHAT BEING A CONCIERGE AT DASH IN ENTAILS My role is to welcome the guests—we call them guests, not customers. I am here to make sure everyone feels welcome and has the best possible experience in the store while shopping.

WHY SHE ENJOYS BEING A CONCIERGE I have always enjoyed working with people, and I’ve always treated people like I’ve known them forever. And by doing that, I just get to know the guests well and they know me, and when they come into the store, we talk like we’ve been friends forever.

WHAT SHE FINDS FULFILLING ABOUT HER ROLE AS A CONCIERGE The most fulfilling thing is that I get to talk to guests who really enjoy coming to the store. They’re not used to being waited on and so they’re often totally shocked by the level of service. They’re not used to someone saying ‘Welcome, how are you doing today?’ or ‘You look nice today’ at every store they visit. And so they really love that and it makes them want to come back.

WHAT SHE WOULD TELL OTHERS ABOUT WORKING IN A CONVENIENCE STORE I love it because you get to meet all kinds of people from different walks of life. You experience and learn things by meeting customers that you normally might not have. You get to help people. If they’re sad, you lift them up and can really make their day. When you talk to someone who is having a bad day or maybe isn’t feeling great, and then they walk out the door with a smile, that makes you feel great and is rewarding.

YOUR

UP FRONT NACS NEWS

NACS’ Quick Trip to Kwik Trip

In August, the NACS Research & Technology Committee was invited to tour the Kwik Trip facilities in La Crosse, Wisconsin.

The Kwik Trip campus, settled along the eastern bank of the Mississippi River, is home to the retailer’s bakery, kitchens, food protection laboratory, distribution center, ice plant, LP plant and blow mold facility. Kwik Trip is a vertically integrated company and makes and ships over 80% of its own branded products, which include Kitchen Cravings, the Kwikery and Cheese Mountain.

The Research & Technology Committee’s first stop was the blow mold facility. The facility can make over 130 bottles per minute, which are filled with Kwik Trip’s Nature’s Touch brand of dairy products, water and flavored drinks. Each bottle is stamped with Kwik Trip’s signature “smiley face.”

14 OCTOBER 2024 convenience.org

The morning of the tour, the Kwik Trip bakery was making bismarks. The bismarks (and other baked goods like muffins, cinnamon rolls, long johns and the retailer’s famous Glazers Donuts) are made in-house and the bakery can

make 328 bismarks per minute. The Committee also visited the kitchens, the bread and bun bakery and the Food Protection Laboratory.

“Even within the first stop of the tour, the self-sufficiency of Kwik Trip’s operations immediately became obvious and it was impressive to see how quickly they can produce so many private-label products and fresh food items with such quality,” said Emma Tainter, research analyst/writer at NACS. Kwik Trip employs over 38,000 workers across six states and 876 stores.

In addition to the production facility, Kwik Trip’s headquarters has an onsite childcare facility and a Center for Health available to all employees and their dependents.

UP FRONT NACS NEWS

Calendar of Events 2024

NOVEMBER NACS Innovation Leadership Program at MIT November 03-08 | MIT Sloan School of Management Cambridge, Massachusetts NACS Women's Leadership Program at Yale November 17-22 | Yale School of Management New Haven, Connecticut 2025

NACS Magazine Wins Best Association Publication In everything we do at NACS, we strive to be a best-in-class organization that supports our members and drives the industry forward—and this magazine reflects that.

Each month, NACS Magazine brings its members the content, stories and resources they need to make better business decisions and excel in the convenience retail industry.

NACS Magazine has been named the Best Association Publication by the Content Marketing Institute in the 2024 Content Marketing Awards. The Content Marketing Awards are the largest and longest-running international content marketing awards program recognizing the best in strategy, content creation and visual and audio storytelling.

NACS Magazine was also selected as a finalist in the Best Publication Design category.

NACS and our editorial team are proud of the issues we put together each month and hope you enjoy reading them as much as we enjoy producing them.

16 OCTOBER 2024 convenience.org

JANUARY Conexxus Annual Conference January 26-30 | Loews Ventana Canyon Tucson, Arizona FEBRUARY NACS Leadership Forum February 11-13 | The Ritz-Carlton Amelia Island, Florida NACS Convenience Summit Asia February 25-27 | Conrad Tokyo Tokyo, Japan MARCH NACS Day on the Hill March 10-12 Washington, D.C. NACS Human Resources Forum March 24-26 | Hutton Hotel Nashville, Tennessee APRIL NACS State of the Industry Summit April 08-10 | Hyatt Regency DFW International Airport Dallas, Texas For a full listing of events and information, visit www.convenience.org/events.

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UP FRONT NACS NEWS

Member News RETAILER

Maverik named Crystal Maggelet as its new CEO and chief adventure guide.

Building upon Maverik’s former Crystal Maggelet CEO Chuck Maggelet’s wins for the brand during his more than seven-year tenure, Crystal will bring a renewed focus on people, philanthropy and culture to her leadership of nearly 15,000 team members across the family-owned c-store network, now serving customers at over 830 stores in 20 states from the Midwest to the west coast and growing.

Crystal Maggelet’s professional background includes extensive experience with both the Maverik brand and with Maverik’s parent company, FJ Management Inc., where she remains the CEO and chairwoman. She founded Crystal Inn Hotel & Suites in 1993 prior to stepping into the CEO role at Flying J (later rebranded to FJ Management) in December 2008.

Colonial Group Inc., promoted Bob Kenyon to chief operations officer. Kenyon will also retain his position Bob Kenyon as president of Colonial Oil Industries Inc. Prior to joining Colonial in 2022, he served as senior vice president, sales and marketing for Renewable Energy Group Inc. He is also the former president of Atlas Oil Company, where he led the company’s nationwide sales, marketing, supply, operations and administrative resources spanning 20 terminals and more than 900 employees.

18 OCTOBER 2024 convenience.org

Ryan Chandler has been promoted to chief commercial officer of Colonial Group Inc., and will also retain Ryan Chandler his position as president of Colonial Terminals Inc. Chandler joined Colonial Group Inc., as vice president of business development in 2011 and became president of Colonial Terminals Inc., in 2020.

Erica Fortune was named as Alimentation Couche-Tard’s new chief digital officer. Previously, Fortune served Erica Fortune as chief product management officer and senior vice president of e-commerce at Advance Auto Parts. Prior to that, she was senior vice president of e-commerce for home discount retailer Big Lots, where she drove its omnichannel transformation and built its e-commerce platform.

SUPPLIER

Flexeserve, a hot-holding manufacturer and hot foodto-go specialist, hired Conrad Randell as sales Conrad Randell manager for the United States and Canada. He will be responsible for all non-retail foodservice sectors throughout the United States and Canada, including c-stores, QSRs, express grab-and-go, colleges, stadiums, workplaces and more.

Flexeserve also hired Anthony Harris as sales manager for retail and Latin America. In Latin America, he Anthony Harris is responsible for growing all business segments, including c-stores, QSRs, express graband-go, colleges, workplaces and more. Additionally, Harris is tasked with developing the retail business segment in the United States, focusing on supermarkets.

Michael Caldwell joined the Rovertown team as its new customer success manager— enterprise. At Michael Caldwell Rovertown, he’ll leverage his unique background to spearhead a new customer success program for enterprise-level retailers amidst rapid growth in that segment. Prior to joining Rovertown, Caldwell worked at Yesway, where he built and grew Yesway Rewards from 35 stores to 435 stores.

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

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UP FRONT NACS NEWS

New Members

NACS welcomes the following companies that joined the Association in July 2024. NACS membership is company-wide, so we encourage employees of member companies to create a username by visiting convenience.org/ create-login. 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.

NACS AFFILIATED ASSOCIATION Greater Houston Retailers Cooperative Association Inc. – Kudos Stafford, TX www.ghraonline.com NEW HUNTER CLUB MEMBERS Bronze Freedom Electronics LLC Kennesaw, GA www.freedomelectronics.com VitaminWell USA/Barebells Los Angeles, CA www.nocco.com Silver Built Brands LLC American Fork, UT Built.com RETAILERS Drury Southwest Inc. Cape Girardeau, MO Drurysouthwest.com

TMPEC LLC Mission Viejo, CA Town Line Deli Inc. East Waterboro, ME www.waterboromarket.com Yucaipa Auto Spa Yucaipa, CA SUPPLIERS AB Mauri Saint Louis, MO www.abmna.com A-Game Beverages Ocoee, FL www.drinkagame.com Bank of Hope NA Benson’s Bakery Berlin Packaging Chicago, IL www.berlinpackaging.com

Multiplex Beverage New Albany, IN www.multiplexbeverage.com NexRev Plano, TX www.nexrev.com Protein Candy Inc. London, ON, Canada Proteincandy.com Purple Frog Graphics Wilton, CT www.purplefroggraphics.com Rustoleum Vernon Hills, IL www.rustoleum.com S & O Wholesale Reno, NV www.sandowholesale.com Spectrio Tampa, FL www.spectrio.com

DT Dietel Tank Grimma, Germany www.dietel-tank.de

Blake’s Beverage Co. Armada, MI Blakesbevco.com

First Class Vending Chandler, AZ www.firstclassvending.com

Cadence OTC Oakland, CA www.cadenceOTC.com

HCG Corporation Dededo, GU www.healthcitynutrition.com

E-Seek by Veridos San Diego, CA www.e-seek.com

Ira Phillips Inc. Gadsden, AL www.iraphillips.com

Food Fair Magazine San Anselmo, CA www.thefoodshownetwork.com

Lets Go Market LLC New Caney, TX

GVH Distribution Lubbock, TX www.gvhdistribution.com

Theoreon Services Inc. Las Vegas, NV Theoreon.com

Happy Dad Santa Ana, CA

TRU Brands Inc. Miami Beach, FL

Ice-O-Matic Denver, CO www.iceomatic.com

Verkada San Mateo, CA www.verkada.com

KPS Commercial Construction Arcadia, IN www.kpsconstruction.com

Vulcan Spring & Manufacturing Telford, PA www.vulcanspring.com

Marwan’s Kitchen Baltimore, MD www.marwanskitchen.com

WhiteHall Products LLC Tampa, FL www.whitehall-products.com

Merced Mall Chevron Merced, CA Newbur Inc. dba Borchard Chevron Newbury Park, CA Pats Travel Center La Porte, TX Suduri Corporation NV, dba Palm Beach Service Station Oranjestad, Dutch Caribbean, Aruba

20 OCTOBER 2024 convenience.org

Speed Data LLC Frisco, TX www.speeddatallc.com Sterling BV Foods Inc. San Antonio, TX www.sterling-fd.com Stuffed-Foods Wilmington, MA Stuffed-foods.com The Water Street Collective Thewaterstreetcollective.com

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CONVENIENCE CARES

Nittany MinitMart Raises Over $175,000 for Local Firefighters

The in-store Fuel the Cause campaign celebrated local heroes.

N

ittany MinitMart raised $176,934.02 during its fifth annual Fuel the Cause campaign to support local volunteer fire companies across central and northern Pennsylvania. The amount beat last year’s record total by more than $25,000, and all of the proceeds from the fundraiser were donated to local volunteer fire companies across central and northern Pennsylvania.

From March 28 to June 2, Nittany MinitMart and Pennsylvania Skill games each contributed one cent for each gallon of gas sold. Customers could also round up their purchases, buy special fire company merchandise and order from Nittany MinitMart’s special Firehouse Foods menu, with a percentage of proceeds benefiting the campaign.

“The most important part of Fuel the Cause is our customers,” said Nittany MinitMart’s Nicole

24 OCTOBER 2024 convenience.org

Masullo. “We’re beyond grateful for the support from our customers, sponsors and community, who come together every year to make this event even bigger and better and who help us give back to the volunteer firefighters who keep us safe.”

According to the National Volunteer Fire Council, around 676,900 of the total estimated 1 million firefighters across the United States are volunteers.

The National Volunteer Fire Council also stated that the cost to train and equip a firefighter can exceed $20,000. With smaller communities (populations under 10,000) across the United States typically protected by all-volunteer departments, the costs can quickly add up.

Nittany MinitMart is based out of central Pennsylvania and has 28 locations across the state.

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CONVENIENCE CARES In The Community 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.

Learn more at www.conveniencecares.org.

ONCUE DONATES GOODS TO LOCAL CHARITIES 1 OnCue donated $98,000 in nonperishable and personal care items to local food banks, including the Regional Food Bank of Oklahoma, Our Daily Bread and other food pantries to combat food insecurity in the towns where it operates. The donated products are collected from the retailer’s stores annually to update item selection while minimizing waste.

Since 2020, the company has donated over $331,500 worth of products and donated more than $50,000 in monetary support to Oklahoma food resource centers. The Regional Food Bank of Oklahoma was OnCue’s biggest beneficiary, receiving more than $63,733 worth of items— equivalent to 4,615 pounds.

CITGO DONATES MONEY TO SUPPORT HURRICANE RELIEF 2 Citgo supported Florida communities affected by Hurricane Debby by donating $25,000 to Team Rubicon. The funds are set to be used for debris removal, chainsaw operations, roof tarping and mucking and gutting out homes.

“With our recent experience with Hurricane Beryl in the Houston area, we understand what our neighbors in Florida are experiencing right now and we want to help with the recovery,” said Chris Kiesling, Citgo assistant vice president of light oils operations and marketing. “We have a longstanding relationship with the people of Florida and the response efforts in Perry will help them restore their homes and businesses as soon as possible.”

LOVE’S DONATES OVER $400,000 TO OKLAHOMA CHARITY 3 To celebrate Love’s Travel Stops 60th anniversary, the retailer donated $408,000 to the United Way of Central Oklahoma (UWCO). The donation was split between UWCO’s 68 partner agencies, with a donation of $6,000 to each. Love’s has worked with the organization for 25 years.

The donation will “help address issues ranging from homelessness to food insecurities and crisis intervention,” the retailer said.

1

2

MIRABITO CONVENIENCE STORES’ ROUND UP CAMPAIGN BENEFITS AFFORDABLE HEALTHCARE 4 Mirabito Convenience Stores raised $65,000 with its Mirabito Cares Round Up campaign. The money will benefit the UHS Foundation’s Journey Campaign for the Wilson Main Tower, which will provide enhanced healthcare services to the communities Mirabito serves and neighboring areas, helping them have access to affordable healthcare.

“At Mirabito, we believe in giving back to the community that supports us,” said Marissa Sweeney, marketing director at Mirabito. “The success of our round up campaign is a testament to the generosity of our customers and their commitment to improving local healthcare.

We are proud to support the UHS Wilson Main Tower and look forward to seeing the positive impact it will have on our community’s health and well-being.”

CASEY’S DONATES MONEY TO LOCAL CLASSROOMS 5 Casey’s General Stores ran a Cash for Classrooms program throughout the month of August.

The annual program encourages customers to round up their purchase to help fund grants for K-12 schools in Casey’s communities.

“Casey’s is here to make a positive impact in our communities and for guests who visit our stores every day. Our guests’ generosity helps us provide grants to local schools across Casey’s Country,” said Katie Petru, director of communications and community at Casey’s.

To date, Casey’s has raised more than $4 million for schools across its 17-state footprint.

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26 OCTOBER 2024 convenience.org

4

INSIDE WASHINGTON

Convenience vs.

Credit Card Companies The credit card industry keeps putting more money and muscle into stopping the CCCA—perhaps to its detriment.

S

ince the Credit Card Competition Act (CCCA) was first introduced in 2022, the credit card industry has spent over $100 million in advertising and lobbying to defeat it, and that spend is still growing. That is certainly a daunting number, but it turns out money can’t overcome the contradictions that come from arguing for the wrong thing. On almost a weekly basis, opponents of CCCA say or do something that undermines their position.

28 OCTOBER 2024 convenience.org

NACS and the Merchant Payments Coalition (MPC) have been diligently gathering these gaffes and sending them to Capitol Hill offices to expose their duplicity and falsehoods. The following is by no means a complete list, but provides examples of how the CCCA’s opponents can be their own worst enemies, and why we as an industry need to continue to advocate for the passage of the CCCA.

Getty Images/dusanpetkovic

BY LYLE BECKWITH

INSIDE WASHINGTON

MONEY TO BURN As Oscar Wilde once wrote, “There is only one thing in the world worse than being talked about, and that is not being talked about.” Well, the credit card industry has made sure that everyone on Capitol Hill is talking about CCCA. Big banks and credit card companies have launched ads warning consumers about Congress trying to steal rewards, or “the Big Box Bailout.”

And if you happen to be caught up in a geofencing area for such ads, you have been inundated with their online messaging. They have paid spokespeople on talk TV and radio, including “The Points Guy,” and even bought ads to run during last season’s NFL games in almost every market. There is no way that Main Street merchant groups could have paid to generate this much buzz around a piece of legislation—underscoring to Congress just how much money the credit card industry rakes in from swipe fees.

REWARDS POINTS The claim that passage of the CCCA would cause consumers to lose their rewards points had been the credit card industry’s main argument against CCCA, but it has been thoroughly discredited by numerous independent fact-checking groups. One need merely to look around the world to countries that either have dual routing (like the CCCA would bring to the United States) or outright capped swipe fees (which CCCA doesn’t do) at a fraction of what the United States pays. All of these countries still have rewards programs attached to their payment cards.

Credit card rewards programs have already caught the attention of regulators and Congress.

A recent Consumer Financial Protection Bureau (CFPB) report highlighted consumer frustrations with credit card rewards programs, including vague or hidden conditions to redeem rewards; the devaluation of rewards; a failure to reinstate rewards when consumers are unable to redeem them; and revocation of previously earned rewards. And according to a July 2024 report from The Capitol Forum, “Over the last five years, hundreds of Capital One customers have told the CFPB about problems with the rewards program. Many describe how the bank shut down their accounts without warning due to alleged concerns about fraud … then cancelled all their rewards.” Perhaps one of the biggest boons to the CCCA came from a recent poll of voter sentiment, which found that the “Lose Your Points” argument actually garnered more support for CCCA rather than less.

NO-SHOWS In February 2024, the Senate Judiciary Committee invited the CEOs of Visa, Mastercard, United Airlines and American Airlines to testify at a hearing on competition in the credit card market. All four CEOs refused to appear.

Why? They know that they will look bad when asked about how Visa and Mastercard centrally set prices for thousands of banks, or put those banks in a cartel-like structure to ensure that every bank’s card must be accepted by merchants. Nor can Visa defend its candid admissions on earnings calls that it profits from inflation.

THE SKY IS FALLING The credit card industry has rolled out the same arguments about CCCA that they’ve used about pre-

30 OCTOBER 2024 convenience.org

INSIDE WASHINGTON

vious policies that it didn’t like. It’s cited things like free checking going away, lower income consumers losing their ability to bank, consumers losing rewards or the fear that transactions won’t be secure.

All of this because CCCA would require a second routing option. The credit card industry is trying to play into the notion that competition is a bad idea.

Enter JPMorganChase, which announced this summer that it would be offering an alternative network on its payment cards in France. This is exactly what CCCA would do in the United States … but for some reason in America it means disaster. In France, Chase even said it was doing this to “provide competitive transaction costs” to its clients. No kidding. We made sure Congress heard about this one.

THE WORK ISN’T OVER Despite all the mistakes and falsehoods of the credit card industry, the bill’s passage is far from certain.

You can’t win a vote unless you get a vote, and up

32 OCTOBER 2024 convenience.org

until now, Congressional leadership hasn’t given us one. We believe we can win, but not without the ongoing support of retailers—you and your fellow Main Street businesses.

NACS and the MPC will be scheduling several fly-ins to Washington D.C. this fall to insist on passage of the CCCA. Even if you have done this in the past … perhaps several times … we still need your help this fall. Calls to your Senators and letters and meetings with legislators in your home state are essential. If a vote does happen, it will likely be the most important vote for Main Street in decades.

With your dedication and help, we can get this over the line.

Lyle Beckwith is the senior vice president, government relations, at NACS.

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INSIDE WASHINGTON

NACSPAC LIST 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 August 2024 are: Doug Beech Casey’s General Stores Inc.

Joe Juliano United Pacific

Gil Moyle Moyle Petroleum Company

Tom Brennan Casey’s General Stores Inc.

Katrina Lindsey Casey’s General Stores Inc.

Doug New Nouria Energy Corp.

Matt Durand EG America LLC

Wolfgang Manz PWM Electronic Price Signs Inc.

Charles Reesman Nittany Oil Company dba Minitmart

Darlene Hall Nittany Oil Company dba Minitmart

Nicole Masullo Nittany Oil Company dba Minitmart

Greg Scriver Kwik Trip Inc.

Cara Heiden Casey’s General Stores Inc.

Vito Maurici McLane Company Inc.

Joseph Vonder Haar iSee Store Innovations

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34 OCTOBER 2024 convenience.org

FOR TRADE PURPOSES ONLY

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INSIDE WASHINGTON

What role in the community do you think convenience stores should play?

Convenience stores serve as a community center. We provide fuel, food, convenience items, car washes and entertainment from gaming to our communities, and we serve our customers every day with the items and services they need the most.

ONE VOICE

Jim Forsyth, CEO FKG Oil Company

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

It’s difficult to stay up to date with the seemingly unending list of regulations that affect our ability to survive and thrive in our communities. I’ve found that being politically engaged with NACS allows me to navigate those webs of regulations that often impact our industry. Having NACS advocate for our industry in our nation’s capital allows us to continue to operate our stores and serve our employees and customers.

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

This is an easy one—taxes, regulations and electric vehicle mandates are always top of mind for me.

What c-store product could you not live without?

Krispy Krunchy Chicken, coffee and beer!

36 OCTOBER 2024 convenience.org

IDEAS 2 GO

From Customers to C-Store Owners Name of company: Four Corner Variety

Being former shoppers gives the owners of Four Corner Variety a unique perspective on the other side of the counter.

Year founded: 1990

BY SARAH HAMAKER

# of stores: 1

When Rich and Jenn Mazurek moved to Union, Maine, four years ago, Four Corner Variety became their go-to neighborhood store. “We live about a mile from the store and went by it every day on our way to work,” Rich said. “So we were familiar with the store and location for several years before we took over in 2022.”

Both Mazureks kept their day jobs—Rich works as a car sales manager and Jenn as a retail banker—but they take shifts whenever possible. “We’re the third owners, and the original owners lived in Union as well. When they opened the business in 1990, they wanted the store to be the hub of the town,” Rich said.

“The community views it as their store and we’re trying to build off of that.”

Website: www.facebook.com/ fourcornervariety

38 OCTOBER 2024 convenience.org

IDEAS 2 GO

SHOPPER INSIGHT Because the Mazureks had been regular customers before becoming the owners, they had a good idea of what merchandise sold well and what didn’t. “Our philosophy is really simple—keep the store super clean and full of merchandise all the time,” Rich said.

The store packs a lot of products into its 2,000 square feet. “I like to say it’s a nook-and-cranny store because we fill every little square inch to the maximum in order to best serve our customers,” Rich said.

To ensure a good selection of products, they partnered with Associated Grocers of New England, a wholesale grocery distributor, which helped them stock on-trend items and unusual snacks. “The uniqueness of our store is really that we listen to our customers and bring in what they want,” Jenn said.

So far, the store has added around 30 products that customers have requested.

“Once people see that we take their requests seriously, they become more loyal to our store,” Rich said. For example, one regular customer asked for a particular beer, which they added to their inventory, and “now that customer comes in twice a day—once in the morning for his coffee and donut, and again in the afternoon or evening for his beer,” Rich said.

They also tweaked the fresh foodservice offer, and now serve breakfast sandwiches, pizza and other dinners.

“We refined our menu to simplify items down to what’s quick to make,” Rich said. “That way, our customers are getting the same quality and consistency when it comes to the fresh food.”

Because it’s in a fairly rural area, Four Corner Variety has a little bit of everything, from fishing gear and automotive products to healthcare items, grocery items and beer, wine and

liquor. “Whatever we carry, we try to support as many Maine-based companies as we can,” Rich said.

SERVING ITS PEOPLE The Mazureks connect with their community in a variety of ways. “We do most of our promotions through our Facebook page,” Jenn said. For those who come into the store, “we want them to feel like we care about them,” added Rich. “We’re in the store as much as we can be with our full-time jobs, so people know who we are and we know our regulars by name.”

The store also runs an annual deer hunting contest during the fall hunting season. “We tag and weigh probably 400 deer during the season, and for every pound, we donate 10 cents to a local charity,” Jenn said. Last year, the contest raised $1,500 for Habitat for Humanity.

The owners’ attention to people spills over to their staff. “We treat our staff as well as we can, making sure we give them time off and empowering them to help our customers without having to ask permission,” Rich said. “At the end of the day, they’re the face of the store for the customer,” Jenn added. “Our employees make us successful.”

To keep their employees engaged, the Mazureks have a monthly contest where each employee who doesn’t miss a shift has the chance to win a $100 store gift card. They also have a referral program for current employees who bring in new hires. “Instead of giving our new hires a bonus, we give the referring employee a $500 bonus,” Rich said. “We also give our workers differential pay to work Saturdays and Sundays.”

Overall, Rich and Jenn Mazurek want to concentrate on making Four Corner Variety the “best store possible. We’re

BRIGHT IDEAS During the winter, customers stop by Four Corner Variety in Union, Maine, to pick up fresh bait for ice fishing. Owners Rich and Jenn Mazurek converted a former ice cream stand behind the store into a live bait shack for the duration of the ice fishing season.

“We work with a local bait company who sends someone out once a day to restock,” Rich said.

The shack is available 24 hours per day and relies on the honor system. “Ice fishermen can come to scoop out bait and put the money in a lockbox attached to the wall,” Rich said. The honor system form of payment has held up.

“Customer’s love that we put our trust in them and in return they put theirs in us.

And it’s been a great addition to the store, as those who grab their bait during store hours come inside for supplies or food for their fishing trip,” he said.

not looking to branch out into other locations, as we enjoy running the store as it is,” Rich said.

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. 40 OCTOBER 2024 convenience.org

IDEAS 2 GO

A Destination Rooted in Heritage Name of company: Choctaw Landing Mercantile Date founded: April 2024 # of stores: 1 Website: choctawlanding.com/ the-mercantile

42 OCTOBER 2024 convenience.org

Choctaw Landing Mercantile celebrates the Choctaw Nation’s history and culture with unique local gifts.

Choctaw Landing Mercantile stocks products you’ll find in most convenience stores—tobacco, drinks and snacks, among others—but that’s not what draws customers to the Hochatown, Oklahoma, store. The main attraction is its unusual assortment of gift items. “Our uniqueness is our selection of special items—it makes our store memorable,” said Misty Hendricks, executive director of retail operations for Choctaw Nation.

The new Choctaw Landing Mercantile is the Choctaw Nation’s 21st store location, but it’s the first with a focus on upscale gifts and souvenirs. “Because Choctaw Landing [a 100-room resort and casino] is a tourist destination in and of itself, as well as being situated near hundreds of rental cabins tucked into the woods close to Broken Bow Lake and Beavers Bend National Park, we knew we needed to create something really special for tourists and locals alike,” Hendricks said.

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CELEBRATING HERITAGE The Mercantile, along with the entire Choctaw Landing complex, honors its Choctaw and Oklahoma history.

“Throughout the resort, we have around 600 pieces of artwork by 20 Choctaw artists on display, which adds to the uniqueness and authenticity of Choctaw Landing,” Hendricks said.

Customers at the Mercantile are greeted with a large white buffalo statue made out of fine crystal. “It’s massive and stands right outside the store entrance and attracts a lot of attention,” Hendricks said.

Employees continue the reception by greeting customers with “halito,” a traditional Choctaw greeting. “We want everyone to feel welcome with halito and other Choctaw sayings,” Hendricks said.

Visitors can take a bit of the area’s rich heritage home by purchasing souvenirs made by Choctaw Nation members, such as medallions, beaded jewelry, stick balls and dream catchers.

“We’ve begun to seek out Choctaw vendors for other items, such as firewood and freeze-dried candy to add to our merchandise,” Hendricks said. Choctaw Farms, for example, provides jams, jellies, spreads, pickled items, salsa and relish for the store.

The large gift section also offers Hochatown- and Oklahoma-themed shirts, as well as travel mugs and cowboy hats, Western-themed bags and other leather goods. “We also have upscale home décor,” Hendricks said.

In addition, a huge children’s selection offers plenty of outdoor items for hunting, hiking or digging in the dirt, as well as indoor pursuits, such as puzzles and LEGOs. “One of our more popular items is our big bear slippers, which the children love,” Hendricks said.

“A lot of [our] items are designed with the cabin renters in mind,” Hendricks added. Cabin guests can pick up s’mores fixings with heart-shaped marshmallows and gourmet graham crackers, as well as beverage mixes. A small grocery area provides essentials for a cabin stay, while the convenience store stocks the usual variety of snacks and packaged beverages, including a large beer cave. The wine section offers the local Girls Gone Wine brand in addition to other favorites.

The candy section’s one-of-a-kind assortment brings delight to tourists and locals alike. “We have candies you can’t find anywhere else—both upscale and old-fashioned candies,” Hendricks said.

Popular candies include candy cigarettes, Pop Rocks, classic rock candy sticks, Razzles and Goo Goo Clusters, in addition to freeze-dried candy.

Fresh foodservice includes a Starbucks and Tuklo Deli, a full-service deli serving slow-smoked barbecue and freshly sliced deli meats, as well as southern fried chicken. “We offer grab-and-go meals, hand-crafted salads and made-to-order sandwiches,” Hendricks said.

CULTIVATING CONNECTIONS Hendricks is looking forward to infrastructure improvements in the vicinity of the store. “Traffic gets really bogged down on the weekend because it’s a two-lane road to get here, but we’ve invested $7 million for road construction to allow for traffic lights and turn lanes,” she said.

Plus, they’re working with the Oklahoma Department of Transportation to make stormwater improvements, relocate utilities and widen Highway

BRIGHT IDEAS To create a unique experience for customers at Choctaw Landing Mercantile, Misty Hendricks, executive director of retail operations, tapped an outside firm to bring the store vision to life. “We knew we wanted to have something that set us apart from other convenience retailers,” she said.

By using an outside company, Hendricks said they were able to find the right merchandise mix for the new location. “We operate 18 travel plazas, so having this company do the legwork necessary to come up with the unique angle for the Landing Mercantile saved us time in the end.”

The Choctaw Nation is continuing its relationship with the firm to bring a similar experience to 10 additional locations. “We’re updating those plazas to match the aesthetic of the Mercantile,” she said.

259. “Those improvements will help ease some of the congestion,” Hendricks said.

Overall, Hendricks said the store’s main aim is for “our visitors feel satisfied and eager to return to experience our culture and history in this special experience they can’t find anywhere else.”

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. 44 OCTOBER 2024 convenience.org

MORE THAN A FLAVOR

For many smokers, the taste of menthol is a unique multisensory experience that is an irreplaceable part of their tobacco ritual.

46 OCTOBER 2024 convenience.org

I

n 2023, menthol smokers accounted for 32.5% of all cigarette smokers, according to the Centers for Disease Control (CDC). That’s a core customer segment that c-stores might lose if the U.S. Food and Drug Administration (FDA) enacts its federal menthol cigarette and flavored cigar bans. The menthol ban has been looming on the horizon for more than a decade. While President Biden delayed the ban even further in April, retailers need to prepare now for this shakeup in the backbar even though enforcement could still be a year or more away.

Menthol cigarettes and flavored cigars account for about 6% of c-store inside sales, or roughly $18 billion for the industry, according to Kretek International, an importer and distributor of premium tobacco products.

Retailers in California and Massachusetts have already seen revenue losses firsthand after the states instituted menthol bans, with users either driving across state lines to stock up on products or, even worse for everyone involved, buying illicit versions on the black

Getty Images/Liudmila Chernetska

BY LAUREN SHANESY

Brought to you by Kretek International.

market. This behavior shows that menthol smokers are loyal enough to the flavor that when menthol cigarettes are banned, many won’t just quit or switch to regular cigarettes or other tobacco options.

A looming ban and the significant loss of sales dollars that comes with it means retailers need to position themselves to retain this segment of customers.

But with consumers having distinct reasons to smoke menthols, a preference for the flavor’s experiential quality, and for many, a distaste for non-flavored cigarettes, it begs the question—where will menthol smokers turn in the absence of the product they’re loyal to?

Kretek commissioned two years of independent product research and focus group studies to learn what really makes menthol smokers tick—their habits, their needs and preferences and most importantly, what they’ll likely buy if they can’t smoke menthols.

MENTHOL MEANS MORE Menthol smokers have distinct preferences from cigarette smokers and overall tobacco users. For example, in consumer surveys conducted by Kretek, 59% of menthol smokers ranked taste as their main motivating factor, compared to only 24% who said nicotine was most important.

“For menthol smokers, the word ‘taste’ is shorthand for everything about their enjoyment,” said John Geoghegan, a consultant for Kretek with over 30 years in the tobacco industry, noting that these consumers consider smoking a menthol cigarette a unique, multisensory experience. “It’s a deeper feeling of relaxation and calm that goes beyond words.”

“There is an expressed ritual to a menthol smoke that we didn’t hear from non-menthol smokers in our research,” he continued. “A dedicated moment set aside to just ‘be.’ They liken it to that first cup of coffee you have when you wake up.”

Around half of menthol smokers said they are so drawn to this multisensory experience that if menthols were banned, they would quit altogether. In reality, Geoghegan thinks not nearly that many will actually quit because nic-

otine dependency still influences their usage.

However, the sentiment underscores the key motivator of menthol smokers for whom nothing can replace the feeling of a menthol smoke.

Their strong taste loyalty is why Kretek has created a nicotine-free, non-tobacco version of filtered menthol that aims to fill the void.

The overall experience is influenced by the menthol agent itself, according to research and studies from the Duke University and University of Kentucky Schools of Public Health. Sven-Eric Jordt, a sensory neurobiologist, led the studies at Duke University.

“Menthol basically activates [your] cold receptor, and that’s why we feel cooling when we are exposed to menthol, when we inhale it or when we put it on our skin,” explained Jordt. “In turn, the receptor partially moderates how we perceive pain, which ultimately gives menthol the ability to dampen irritation or discomfort.”

But there’s another component to menthol cigarettes that is important—nicotine.

WILL NICOTINE-FREE WORK? It’s common for menthol smokers to perceive the neurological effect of menthol as part of the nicotine buzz—they include this feeling in what they describe as their cigarette’s “taste.”

Nicotine is part of the ritual and sense of calm experienced while smoking, but is perhaps less impactful for some smokers.

Despite many smokers’ self-noted dependence on nicotine, Kretek’s smoker research found that a nicotine-free menthol option would be a viable solution for a substantial NACS OCTOBER 2024 47

Ranked smoker importance of menthol cigarette ingredients

Menthol

Tobacco

0%

20%

40%

60%

80%

segment of smokers. Many are in fact trying to cut down on nicotine usage—Kretek’s research confirmed CDC studies that showed 62% of consumers said they had health concerns about nicotine.

Response to smoking trials inferred that around 20% likely have a low enough level of nicotine dependence to make the switch to a nicotine-free product as long as the menthol taste meets their expectations, explained Geoghegan.

When current menthol smokers in Kretek’s product trials tried nicotine-free alternatives, 51% said they “missed the nicotine a little,” and 18% said they were “glad it’s gone,” according to Kretek’s Benjamin Winokur, brand manager of emerging brands at Kretek, who oversaw the project and development of SPLASH nicotine-free menthol smokes. “Our view is that nicotine-free menthols can end

48 OCTOBER 2024 convenience.org

WHAT’S NEXT? A federal menthol ban won’t go into effect overnight, but it’s never too early for retailers to begin laying the groundwork to retain this customer base. While Kretek and a few other manufacturers are bringing non-tobacco menthol smokes to market, others are launching menthol-flavored vapor devices that offer nicotine, even if the smoking ritual is lost.

“There’s a larger potential loss of revenue without that menthol consumer—a large majority of these buyers visit the same store week after week and add other items to their basket,” said Winokur. “Having the right products in place for a menthol smoker after a ban helps to retain those consumers in your store, and offers additional revenue from the other basket items that they buy.”

To retain menthol smokers, retailers will need to offer them something to fill the void and provide the unique experience of a menthol smoke. Bringing together its years of research and consumer studies about menthol smoker preferences, Kretek and its manufacturing partner PT Djarum, an Indonesian maker of filtered clove cigars, collaborated on the development of SPLASH menthols, a nicotine-free, non-tobacco filtered menthol smoke.

During focus groups and trials, 56% of trial users indicated they liked the taste of SPLASH enough to switch after the ban (“very likely or somewhat likely”). Kretek is launching SPLASH at the 2024 NACS Show and plans to roll out the product in trial markets in California (where menthol cigarettes are currently banned statewide) in early 2025.

Getty Images/Liudmila Chernetska

Nicotine

up with 8-12% of the current menthol population across several brands,” said Winokur. He noted that the moment of truth will be when customers walk into the store to buy their preferred brand and it’s no longer available.

Even as zero nicotine products begin to attract share in the backbar, Winokur said retailers should manage their expectations for replacements after a flavor ban. “Menthol smokers who opt for the nicotine-free smokes won’t make up the volume difference of what will be removed because of the ban, but even retaining 10% of those customers could easily create a billion-plus dollar business,” he explained.

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Food and beverages are being influenced by many taste preferences, creating bold, exciting and new profiles for every demographic.

52 OCTOBER 2024 convenience.org

Shutterstock/Aninka Bongers-Sutherland

FLA

VOR Forward

BY AMANDA BALTAZAR

If there’s one thing foodservice providers should be zeroing in on, it’s flavor. Today’s consumers, who eat out regularly and pay attention to social media, are always seeking new tastes and flavor profiles to delight their palate and provide a new experience.

“Consumers have a higher set point of fear after Covid,” said Suzy Badaracco, president of Culinary Tides, a trend foresights company in Fort Lauderdale, Florida. “They want to experience strong flavors, new flavors and global flavors. Exploration is a psychological driver. It offers optimism, control, learning, reward and distraction.”

And social media is fueling, inspiring and educating shoppers on bold and compelling options from around the world, said

NACS OCTOBER 2024 53

As global influences continue, here are a few flavors that have big potential for the future: • Chai: Datassential ranks chai in the 92nd percentile for future growth potential.

• Tropical fruits like guava, lychee, yuzu and dragon fruit.

• Turmeric.

• American flavors such as Southern BBQ and New England seafood.

• Mojo (garlic-herb sauce), checca (tomato sauce), Pickapeppa (a sweet, spicy and sour Jamaican branded sauce) and flavored vinegars.

• Complex heat made from combinations of different peppers.

• Pickles in unexpected items. C-store chain Casey’s has sold limited-edition dill pickle chips, and in recent years Sonic has brought back its pickle juice slush for a limited time. Pickle-topped pizza is also gaining traction, up 50% on menus over the past 12 months, according to Datassential’s Menu Trends platform.

• Black garlic, which 46% of consumers are now familiar with, according to Datassential’s Consumer Preferences platform.

• Tahini is moving beyond hummus to appear in protein bars, plant-based ice cream and desserts.

Chelsey Capps, director of thought leadership for Daymon, a private label consulting company in Stamford, Connecticut. In fact, 84% of consumers who actively seek out new flavors cited social media as their primary information source, according to data from Mintel.

According to Mintel’s Global Consumer Survey, 36% of consumers like trying flavors they’re unfamiliar with. And while most of us are up for trying something new, Gen Z and Millennials are the most experiential when it comes to trying new flavors, said Capps. “Over 90% of Gen Z and Millennials say they seek out new food and beverage flavors, with the majority citing ‘the wilder the better,’” she said.

“For younger consumers, bold flavors are the norm,” said Mike Kostyo, vice president, Menu Matters in Arlington, Vermont. “For any brand, the focus should be on leveraging the bold, interesting flavor trends that excite consumers and keep the brand relevant. Stop playing it safe.”

54 OCTOBER 2024 convenience.org

HEATING UP According to Daymon research, 84% of consumers eat spicy foods at least sometimes, with 43% of shoppers saying they regularly eat and enjoy spicy food. The number is even higher for Gen Z at 61%.

Euromonitor tracked that a fifth of new product launches in 2023 had a spicy flavor.

“Consumers’ love of spice and heat continues to grow and evolve,” said Kostyo. “When you see a national brand like Campbell’s adding ghost pepper to chicken noodle soup, you know American consumers’ capacity to embrace heat has reached a new level. With more wellknown brands offering spicier flavor profiles, it not only gives other brands permission to increase the heat levels in their own menu items or products, but it also means brands have to work harder to differentiate themselves.”

They can do this by using more complex peppers or pepper blends, he points out, or even inserting heat into new categories like desserts. Spicy garlic and spicy mustard are also popular spicy flavor combos.

Swicy flavors are also on the rise, and consumers can’t get enough of this blend of spicy and sweet food. Daymon research shows that of shoppers who enjoy spicy food, four in 10 specifically also like swicy flavor profiles.

This could be something like hot chili pepper and lime; or sweet chili jalapeño, said Sally Lyons Wyatt, global executive vice president and chief advisor, consumer goods and foodservice insights at Chicago-based market research company Circana.

Hot honey is also booming. It’s a “unique yet accessible flavor,” said Capps, and is often found in products like pizza, sandwiches and roller grill items. Although this trend has been around since 2021, it’s now proliferating, said Jaclyn Marks, senior publications manager and trendologist with Datassential.

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Hot honey is up 128% on menus over the past four years according to Datassential’s Menu Trends platform.

Along with swicy, there’s also swokey (sweet and smoky) and swalty (sweet and salty), pointed out Badaracco.

MASHUPS AND FLAVOR FUSIONS Fusion food is nothing new. Restaurants have been combining global cuisine for years, but some unusual combos are showing up as of late—dill pickle in desserts, or adding alcohol flavors, like Fireball whisky, to food are a few examples, said Lyons Wyatt.

“Fusing emerging flavors with mainstream flavors makes products more approachable by bridging the gap,” added Jillian Hermanowicz, spokesperson, Florida Food Products, a Eustis, Florida-based company that offers ingredient solutions.

For example, fusing a classic flavor like French vanilla with lavender in a product like iced lattes “adds excitement, which drives trial.”

Maeve Webster, president of Menu Matters, is seeing fusion that’s based on a chef’s background rather than simply mashing different countries’ foods together, “so the fusions are going to be more organic and built from experience,” she said.

Badaracco expects to see food combinations that bring together flavors from different cuisines, such as tikka sauce wings, birria ramen and sashimi tostadas.

Shutterstock/Hong Vo

A SENSE OF LONGING According to Mintel, 55% of consumers said they would purchase an LTO with nostalgic ingredients. But these don’t have to be old-fashioned creations. Capps is seeing

Consumers’ love of spice and heat continues to grow and evolve.

56 OCTOBER 2024 convenience.org

nostalgic flavors that are dynamically paired with new and exciting flavors.

At Rutter’s, the retailer is offering products that reimagine “flavors reminiscent of childhood treats, such as cereal-flavored snacks,” said Philip Santini, senior director of advertising and foodservice.

Nostalgic flavors include dessert and breakfast flavors, such as maple and French toast— staples of childhood, said Hermanowicz.

Even the sports nutrition category has flavors that hearken back to childhood treats. 1440 Foods introduced two nostalgic flavors—brownie and caramel churro—to its Pure Protein line of protein bars.

Nostalgia is trending “because things are so anxiety-inducing for consumers right now as they think about the election, economy and global issues,” said Kostyo.

For older consumers, this means remembering a more carefree time in their lives, he said, and for younger consumers, it’s era envy, “meaning consumers are envious of times they didn’t even experience because they associate them with simpler times and less stress.”

Convenience stores should keep up with relaunches to play to consumers’ desire for nostalgia, said Kostyo. “You can imagine a Dunkaroos-flavored coffee beverage or Viennetta individual dessert bar, to name just two brands that Millennials in particular have brought back from extinction. But that need to escape is a key need across all demographics. C-stores should lean into that escapist desire.”

A BOOST IN BEVERAGES Beverages are a great place to experiment with flavor because they’re inexpensive and are an area where consumers—especially younger ones—like to experiment. Look no further than Doritos x Empirical, a distilled spirit featuring Doritos Nacho Cheese.

Taste of the Future

Digital Displays Offer a New Flavor of Convenience How fresh is meeting fast—and how c-stores can satisfy every customer craving.

Continuing from last month’s Digital Forecourts Future article, the evolution of convenience shouldn’t stop at the pump— let it flourish inside with bites, beverages, and bespoke interactions.

John’s mornings have a rhythm, starting with the familiar chime of his alarm and the promise of that first cup of coffee.

The world is just waking up as he pulls into the c-store parking lot, the early sunlight casting long shadows. There’s a comforting consistency in his routine, but today, something feels a little more alive.

Stepping inside, the warmth of the store and the scent of freshly brewed coffee mixed with sizzling bacon welcome him. The digital displays flicker to life, almost like they’re greeting him. Today’s breakfast burrito special catches his eye, a reminder of life’s simple pleasures. He grabs and goes.

Noon rolls around, and John’s back—this time focused on fueling the rest of his day. The sun is high, and the pace has quickened, but the c-store remains a welcoming oasis, just minutes from work. The digital screens now showcase a fresh array of lunch specials. His favorite wrap is waiting,

almost as if the store knew he’d return. It’s these moments of quiet ease, of knowing what to expect, that make his day flow a little smoother. By mid-afternoon, the demands of the day have caught up with him, and John craves a break. He pulls in again, seeking that perfect pick-me-up. The c-store is bathed in the warm afternoon glow, and the displays have shifted again, offering what he didn’t even know he needed— prepared bites and caffeinated sips. The choices feel endless, yet the experience remains effortless.

John’s day might be hectic, but these stops at his favorite c-store are more than just routine—they’re personal moments that ground him. The digital signs almost predict his needs, making each visit feel intentional… even delightful.

As evening approaches, John realizes he’s stopped here three times today, each visit as effortless and satisfying as the last.

To John, this c-store isn’t just a place to grab essentials—it’s his oasis, a natural part of his week that’s become woven into the fabric of his lifestyle. He’s a loyal lifer because of it.

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Beverage is the perfect format for flavor innovation, and it continues to be where consumers push the boundaries and expectations on flavors, said Florida Food’s Hermanowicz.

Mexican flavors are driving some beverage trends. Horchata has seen a 33% four-year increase on coffee menus in product formats such as iced lattes and frappes, she added.

Lyons Wyatt is seeing a lot of nostalgia in beverages, such as candy flavors added to soda or alcoholic drinks, but said she wouldn’t be shocked to see the reverse happen, especially with candy.

And dessert-inspired flavors are proliferating in cold and frozen coffee—according to Datassential, 69% of consumers eat or drink an indulgent treat weekly. “In cold and frozen coffee beverages we see dessert flavors ranging from the nostalgic birthday cake, red velvet and creme brûlée to globally inspired flavors such as churros and tres leches,” said Hermanowicz.

According to Datassential, Millennials have the strongest interest in frozen treats as a snack, followed closely by Gen Z consumers, who also visit c-stores more frequently than older generations. “They are an important demographic to appeal to,” said Florida Food’s Hermanowicz.

WHERE IN THE WORLD? As consumers are exposed to more flavors through travel or social media, more global flavor profiles are making their way into products and onto foodservice menus.

Asian food flavors are popping up in restaurants, such as the masala veggie burger at A&W, and in packaged snacks and drinks (like the mango tamarind White Claw or jalapeno-flavored evaporated milk from Carnation).

Vietnamese flavors in particular “have been making waves across QSRs,” said Erica Holland-Toll, culinary director at The Culinary Edge in San Francisco. She highlighted the banh mi fried chicken promotion from fast casual chain Starbird, as well as 58 OCTOBER 2024 convenience.org

Hannah’s Bretzel and TGI Fridays exploring banh mis as part of their LTOs. She’s also seeing a rise in Vietnamese pickles on grocery shelves.

At Rutter’s, classic Asian flavors such as Korean BBQ and Szechuan peppercorn are also gaining traction. Santini is seeing taste profiles from Asian countries, especially Korea and Japan, influencing the rise in spicy and umami profiles, while Latin American flavors, particularly from Mexico, “are popular for their sweet and spicy combinations,” he said.

Latin and Hispanic flavors are the norm, according to Kostyo, but “Asian-inspired flavors are what excite.” Consumers, particularly younger ones, simply expect Latin flavors because they eat them all the time, but from an innovation and excitement standpoint, “they get excited about the sweet and unique flavor profiles and concepts inspired by Asian markets, social media trends and street foods,” he explained.

Scandinavian cuisine “is finally poised for more significant growth and more innovation inspiration,” said Webster. She also expects to see increased awareness of, and engagement in, cuisines from the Middle East and Eastern Europe.

ENHANCING FRUITY FLAVORS Fruit flavors are also seeing new combinations and fusions across the entire food and beverage segment.

Capps said tropical fruit flavors are “poised for success … particularly when dynamically paired to create desirable and interesting new flavors like watermelon mango.”

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FLORALS AND BOTANICALS Expect to see more floral and botanical flavors like jasmine, rose, lavender, hibiscus and eucalyptus in 2025.

Starbucks recently featured an iced lavender cream oatmilk matcha, which “bridges the larger trend of food-meets-beauty,” said Marks. According to Datassential’s Menu Trends platform, lavender is up 41% on menus over the past four years, and Datassential’s AI-powered trend prediction platform Menucast estimates lavender will grow another 38% on menus over the next four years.

Floral flavors, including chamomile, honeysuckle and rose, are the fastest-growing botanical flavor trends in packaged foods, according to Innova Market Insights. The Arnhem, Netherlands-based company’s research shows many consumers perceive that products with these natural elements are good for their health.

WHERE FLAVOR IS MOST PREVALENT New and unique flavors are most commonly appearing in snacks and beverages because these are low-commitment items for consumers to buy. They’re inexpensive and small, and so are lower risk, even if adventurous flavors have become the norm for younger generations.

60 OCTOBER 2024 convenience.org

Adding an unusual flavor like basil or rosemary to a snack “can feel unique but not overwhelming,” according to a survey by Kantar and Mintel.

“Flavor virtually has no bounds for application in convenience stores, but top category players most often include foodservice, nuts, chips, non-chocolate, bakery or pastry programs, and RTD beverages,” Capps added.

At Rutter’s, snacks such as potato chips, nuts and popcorn “are leading the way,” said Santini. “Beverages, including energy drinks, sparkling water and craft sodas are also incorporating these trends. We’re looking at ways to incorporate these items into our foodservice program.”

He expects to see new limited-edition flavors in snacks and beverages, cross-category products like spicy beverages or sweet-savory snacks, and enhanced flavor profiles in staple items such as chips and energy drinks.

Kostyo pointed to the popularity of drink flavor combos, citing examples like Starbucks’ lavender lattes and spicy cold drink offerings. “The demand for drink innovation is particularly true for c-stores, where the consumer base expects really unique, bold, interesting flavors and textures,” he said.

“Dirty sodas, popping bubbles, spicy and floral beverages, infused cold foams, unique seasonal options, and even envelope-pushing drink flavors like pickle that do well on social media excite and entice the c-store consumer. You need those.”

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.

Getty Images/magdasmith

Yuzu, a type of Japanese citrus, is up 43% on beverage menus, according to Datassential’s Menu Trends platform, and it’s appearing in everything from beverages (Shake Shack, for instance, has offered a yuzu honey lemonade) to salad dressings to baked goods.

Unique fruit blends, like pineapple and habanero, are becoming more available in beverage options.

The sweet-savory pairing is cropping up in new pastries and desserts, said Webster, particularly combining Japanese and Asian flavor elements into more American or European formats. “It’s toning down the sweet elements and upping the savory to rethink what those pastries and desserts could be and the types of occasions they are best for,” she explained.

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Training’s Digital Era C-store employees make gains when they learn via video bursts and mini games.

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BY AMANDA BALTAZAR

NACS OCTOBER 2024 63

Microlearning is where it’s headed.”

64 OCTOBER 2024 convenience.org

Getty Images/Yaroslav Litun

ore than one-third (36.5%) of full-time associate hires don’t make it through the first 30 days of a convenience store job, according to a study done by the NACS/Coca-Cola Retailing Research Council (NCCRRC).

And while low pay is the top reason hourly employees cite for leaving the job, according to the NCCRRC, the study also uncovered that the average net promoter score for workers who received both on-the-job and formal training was nearly three times higher than for those who received no training, signaling that employees feel more valued, perceive that they have greater career progression and enjoy their work more when they have the right kind of job training.

“When given opportunities to develop, employees feel seen,” said Sam Caucci, founder and CEO of 1Huddle, a training company based in Newark, New Jersey.

Training is a necessity for any job, but it is particularly essential in the convenience industry, where there are compliance and policy requirements for staff to follow regarding alcohol, tobacco and fuel.

Many convenience stores offer their training online, mostly via videos and apps. Having all training online has a handful of benefits, like speed, consistency and cost savings. Plus, supervisors can see exactly which modules staff members have completed and send reminders if they need to.

It’s cheaper, faster and easier to work with online training, said Lori Johnson, director of retail training for United Refining Company, which has more than 300 locations. Johnson uses training from Ready Training Online (RTO), a provider of customizable online training content for retailers. Previously, United Refining brought new hires into a classroom setting.

“Training is ongoing and we were looking for a solution to optimize time, save money and have a good product put out, especially with so many state and federal regulations that have to be met,” Johnson said. “It was a no-brainer how we could save time and money.”

“We’ve been very successful getting a great handle on required certifications—alcohol, tobacco and environmental trainings—even with turnover. Within a few days of someone being hired we can get certain certifications done,” Johnson added.

High’s Stores from Carroll Motor Fuels, a Maryland-based company, are typically only 80% to 90% staffed. That means managers want new hires to start working as quickly as possible. Staff are first trained on the front line, watching videos and then putting the learnings into practice. “You’re learning to be functional on those stations; it’s all blended learning,” said Dallas Wells, vice president of foodservice, training and development. “[Managers] have to do it quickly and payroll is at a premium,” said Wells. Employees take the basic training modules during their first days on the job and then the less vital training more gradually.

High’s is also moving toward using more QR codes at stations or on equipment. So if employees are unsure how to use something, they can scan it and immediately learn how to do a task such as using the fryer or cleaning the coffee machine without asking for help. High’s, like United Refining, is a customer of RTO.

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At High’s, employees benefit from short, video-based training modules.

If we don’t train people, we don’t keep them.”

Nouria Energy, based in Worcester, Massachusetts, works with PASS Training and Compliance, a company based in Muncie, Indiana “We don’t ever want employees to have to spend too much time doing anything,” said John Collins, regional compliance manager.

“Having a program and tool that allows [new hires] to quickly go through the onboarding process and get everything they need without having to jump through a lot of administrative tasks is hugely beneficial.”

Training via PASS videos takes about the same amount of time as traditional training, Collins said, but employees “come out with exponentially more knowledge. It’s taken a lot of work away from the store.”

Ready Training Online’s training dashboard for employees.

66 OCTOBER 2024 convenience.org

MODERN DAY RETENTION Learning through technology is not only faster, but it also engages today’s workers, especially younger ones.

RTO’s initial training lasts around 90 days, but the company has ongoing training which helps keep staff in their jobs, said RTO President and CEO Jeff Kahler.

“It’s about making it an immersive experience and showing the new hire that there’s a career path,” said Kahler.

That ongoing training is crucial to retention. High’s send out refresher trainings to employees, like if it’s rolling out a new sandwich for example. It will send a link to every designated employee so they can watch the video and brush up on their skills or learn how to make the new item. Supervisors can check they’ve completed the training and send reminders if they haven’t.

Refresher trainings can also help minimize liability if there’s a problem, such as an oil spill or alcohol sold to a minor. “When you present training records in court, it can really help,” said Wells.

United Refining employees take legal training in their first few hours on the job, then complete the remainder over the next 10-15 days or within the month. The training is scheduled, for example, in the first two hours of a six-hour shift. But United Refining employees must also complete ongoing refresher training modules on topics like sexual harassment. Some are taken every six months and some every year.

Zipline’s training dashboard for employees.

1Huddle offers training with games, which helps employees remember what they’re learning.

From the employee side, “If we don’t train people, we don’t keep them,” said Nouria’s Collins. “No team member wants to be in an environment where people don’t invest in them and give them skills. They don’t want to be in a position where they don’t know what to do.”

SHORT BURSTS RTO’s training videos are getting shorter, with an ideal time of less than five minutes. “Microlearning is where it’s headed,” Kahler said.

To keep things short and sweet, RTO breaks topics into shorter sections. So instead of combining sweeping and mopping a floor under one broad cleaning training, they become two separate modules.

PASS recently recreated its associate training “to make it more concise with less content per slide,” said Raymond Rees, president and CEO. “When we deliver video content, it’s short bursts.” PASS tries to keep each training video under 30 seconds, but some go as long as a minute. Often trainings are grouped into chapters with four or five sections, so an employee will watch or listen to them all and then take a quiz.

Zipline, a training company based in San Francisco, agrees that shorter is better.

“Instead of a 10-minute video, we’ll split it into one- or two-minute chunks, then have a knowledge check at the end,” said Emily Lane, head of content. “Employees retain it better that way.”

Bite-sized pieces of information are key so employees can fit them in around their work, she said. “It’s more realistic if they can do it in

68 OCTOBER 2024 convenience.org

little pieces. Staffing is a challenge and people are pulled in many directions. There’s a higher likelihood that it will get done if it’s shorter, and there’s better retention. So you can chip away at it when you have a few minutes.”

Training via gif is the ultimate quick learning method, and Lane said employees use gifs for very quick bites of information, like how to attach something to something else, for example. “With one click employees can get more detail,” she explained.

Younger employees especially prefer short videos and retain the information better when it’s presented this way, said Nouria’s Collins. “Making the training short makes it more digestible and easier for them to find five minutes now and then 10 minutes later, rather than 45 minutes [at once].”

He added, “If we dump a lot of information on them, what are the odds they’re going to remember it? So breaking it down really helps.”

GAME DAY Learning via games is becoming more popular within retail.

Around 35% of RTO’s content has been converted to include interactive elements or gamification, which Kahler said really helps people retain the information learned.

Games work because they engage staff members, said 1Huddle’s Caucci. Games can also lead to healthy competition among employees via leaderboards, where they are not only learning but looking to out-compete their colleagues. This can be great for team building, Caucci explained. “It makes you feel like you belong.”

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At the end of the day, games are fun, which can also help with retention.

PRACTICAL LEARNING RTO’s video training does not exist in a vacuum. Once staff members have watched a video, they then perform the task and a supervisor watches. “This allows the learner to get some real-life experience while also seeing some examples of what they have just learned,” Kahler said.

Putting videos into practice is also a goal for Zipline. Employees can watch the videos when they have a free minute or two, and then can immediately test out their skills.

This is very practical, said Lane, since it eliminates the need for managers to pull employees into a back room for training.

“The best way to retain knowledge is to do it in the flow of work,” Lane said. If 70 OCTOBER 2024 convenience.org

employees need to know how to do something while working, they can pull up a video, watch it, then put it into action.

PERSONALIZED TRAINING PRODUCTS Personalizing training materials to the specific store “helps with employee buy-in,” Kahler said, noting that RTO’s videos are filmed in a mock convenience store at RTO’s studio, where retailers can customize content with logos, products and people wearing the appropriate uniforms.

High’s films its food training videos at RTO’s studio and personalizes the content because the retailer has unique items with specific instructions. Wells himself has written the scripts for more than 100 modules.

With 1Huddle’s games, retailers can select a basic game from more than 2,500 options and 1Huddle’s AI tool will create a personalized game for that c-store.

Zipline can also personalize video training for retailers, said Lane. “Training isn’t just about upskilling your workforce. It’s also a valuable opportunity to remind employees of your brand story and values,” she explained.

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.

Getty Images/Heru Anggara

And at the end of the day, games are fun, which can also help with retention. “I don’t know why so many companies think fun is bad,” said Caucci. “Play is a powerful tool and makes the learning stickier. And the absence of play is rote work. And that mode isn’t working anymore.”

1Huddle also rewards employees who do well and allows them to rack up rewards when they win games, such as a $5 gift card.

“The intrinsic rewards around recognition are more powerful and lasting. A good game should show your status, your rank, your progress. You should be offering digital rewards that can be stacked up and an employee can accumulate them,” said Caucci.

Beer Getty Images/micropic

Exploring the

72 OCTOBER 2024 convenience.org

Cave Walk-in refrigerators expand selection, drive traffic and allow c-stores to compete with larger retailers.

BY TERRI ALLAN

NACS OCTOBER 2024 73

74 OCTOBER 2024 convenience.org

• Beer caves can prevent out-of-stocks on readily available cold beer.

• Caves free up space in cold vault doors for highly profitable single cans of beer.

• Caves drive valuable cross-category purchases.

David Garcia, national accounts vice president, convenience, at Molson Coors Beverage Co., agreed that beer caves can be a valuable feature for c-stores. “Beer caves offer the opportunity to maximize your sales across all brands and pack sizes, increasing traffic to your store, and increasing your sales versus grocery and liquor stores in your area,” he said.

Caves can be highly effective in motivating customers to make purchases, added Garcia, noting, “once inside the cave, eight out of 10 shoppers make a purchase.” Indeed, stores with a beer cave sell 46% more beer, the Molson Coors executive said.

EXPANDED ASSORTMENT According to an array of c-store operators— from major chains to single-store managers— the primary benefit of beer caves is exactly what you might expect: the ability to stock more beer.

“Beer caves allow us to carry more assortment than your average c-store and more inventory on high-velocity packages so they remain in stock,” said Corey Viglotti, senior category manager at RaceTrac. Some 240 of the chain’s more than 580 stores feature beer

Getty Images/gala ly; Getty Images/GoodLifeStudio

A

t CD’s Quik Mart in Hopkins, Michigan, 30-packs of Busch Light are a popular item.

But due to the space constraints of the typical convenience store beer cooler, the store hadn’t been able to fully stock the pack size to meet customer demand.

So owner Chris Kerber installed a 300-square-foot beer cave in the store. That was about eight years ago, and today, CD’s can chill as many as 40 30-packs of Busch Light, up from the two or three that an average beer cooler can accommodate. Moreover, due to the strong response to the cave from customers, beer sales at the c-store have dramatically increased. “The cave paid for itself in the first year,” Kerber reported.

Kerber isn’t the only c-store operator to discover the power of beer caves. According to a recent report from iSee Store Innovations, a designer and manufacturer of retail merchandising solutions, about 20% of all c-stores—or between 30,000 and 40,000 locations—feature beer caves.

Joe Vonder Haar, iSee’s CEO and founding partner, said major chains like Sheetz, Circle K and Wawa are installing beer caves in most new store builds, while smaller companies like Wallis Companies and Alta/Petro-Mart are also big supporters of the refrigerated spaces. “Beer caves allow c-stores to be competitive with big box retailers down the street,” Vonder Haar remarked. And because they range in size from 8 feet by 8 feet and up, even stores with a small footprint can install a beer cave, he noted.

Among the findings in iSee’s State of Beer Caves report, which cited data from a study completed by Bump Williams Consulting Co., a beverage consulting firm: • Installation costs range from $15,000 for an 8-by-8-foot cave to more than $75,000 for a 20-by-20-foot cave.

• Stores with beer caves see foot traffic increase by 35%.

• Average shopper baskets increase by $6 per customer in stores with caves.

• Caves allow c-stores to enhance their assortment and variety at a time when new brands, flavors and packages continue to proliferate.

FUEL UP THEIR SEASON Please Drink Responsibly

Find us at the NACS Show, booth #: C4581

BEER CAVES ALLOW US TO CARRY MORE ASSORTMENT THAN YOUR AVERAGE C-STORE.” 76 OCTOBER 2024 convenience.org

TRAFFIC DRIVER With beer a destination category for c-stores, caves additionally help drive traffic, Vonder Haar noted. That’s certainly the case at Hawaii’s Aloha Island Mart, with 50 stores on four of the state’s islands.

“The beer caves at Aloha Island Mart enhance the customer experience by offering a unique, chilled shopping environment and a broader selection of beers, attracting a wider customer base,” said Veronique Nguyen, marketing manager. With high-margin specialty brews merchandised in the caves, the refrigerator units help build the chain’s sales and revenue. “Additionally, they provide a competitive edge,” Nguyen continued, “support local breweries, and ensure product quality through optimal temperature control.” In addition to beer, the caves at Aloha Island Mart stock ready-to-drink beverages, such as hard seltzers and flavored malt beverages.

Though while caves can help drive beer sales, grow traffic and attract new customers to c-stores, the units aren’t without some challenges, including the investment dollars and space needed to erect a cave. Beer caves may not be right for all c-stores, particularly in markets like Indiana and Minnesota where regulations infringe on the ability of the channel to sell cold, full-strength beer.

According to iSee’s State of Beer Caves report, shopper awareness has a big impact on the success of the units in c-stores, as consumers don’t typically associate beer variety with the channel. Quality signage inside and outside of a store, as well as other marketing tools including social media, can go a long way in informing customers about the presence of caves and assortment of product selection.

Vonder Haar, Garcia and c-store operators also cite lack of organization within the beer cave as a factor that can impede the success of the units. “Shoppers get turned off by disorganized, cluttered caves, and by not being able to find the price,” remarked Vonder Haar. “If customers can’t find the product they want or the price of the product, they won’t come back.”

Kerber agreed that organizing a beer cave can be challenging. “Once a few vendors come

Getty Images/gala ly

caves, she reported, adding that “merchandising strategies for the caves depend on store format.”

In markets like upstate New York where craft beer has soared in popularity in recent years, caves allow c-stores to stock a wider assortment of brews. “Customers like that we bring in new beers every day,” said Sunny Patel, manager of Good Guys Convenience & Deli in Plattsburgh, New York. “We even take special requests and try to fulfill all orders.”

Due to the cave’s spaciousness, it can stock virtually any package size, he added, ranging from singles to 30-packs to draft kegs ordered on request.

At CD’s, meanwhile, the beer cave has also been an enormous help in aiding the store’s market for craft beers, Kerber said.

The cave—which is reserved for 12-packs and larger—can hold as many as 950 cases of beer, and with the temperature set at 32.9° F, “it’s so cold you can see your breath,” Kerber said.

The guarantee of cold beer is a big attraction for c-store customers, who are known for their inclination toward immediate consumption. Jake’s Convenience store in Staunton, Virginia, has had a cave for about eight years.

According to a store manager, “Customers like that the beer is always cold. They don’t have to wait for us to stock the cold box.”

When it comes to beer in c-stores, the product being “cold tops brand, pack sizes and pricing,” Vonder Haar said. “Cold beer is the single biggest factor for customer satisfaction, which means they come back.” Beer caves are more ideal than the common practice of utilizing case stackings to feed the cold box, the iSee executive added. “Beer caves help prevent out of stocks of cold beer,” he said.

“With a beer cave, retailers can live up to the reputation of ‘coldest beer in town.’”

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WonderBar Hooks Flip-Scan Hooks Mini Dual Lane Trays ®®

® ® Displays are the versatile WonderBar Flip-Scan hooks are an open and shut This mini tray leads to maximum revenue, heroes theofTrion family, case for of ease use. product The articulated because it allows complimentary items to coming to the you need label holder lifts rescue up andwhen out of the way be featured together. Dual lanes adjust to and goodaccess, looks tothen merchandise formuscle easy product falls back fit narrow merchandise sizes as small as of for all sizes.

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Available with short label via asymmetric lane configurations. Cross for every need. holders or full length label strips and merchandise a variety of products with constructed of long-life materials, these ease. Trays install without tools and lift out durable, attractive scan hooks can outfit for quick restocking or product rotation. all display surfaces, including pegboard, Full line includes standard and oversize slatwall, grid, crossbar, and corrugated. trays, and display, scan and pusher hooks.

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Slide product to “ZIP” over there,front-to-back automatically feeding Call from 800-444-4665 | TrionOnline.com each track together.

Custom spring product to the front and billboarding tensions andfor lane depths visibility. are available merchandise maximum

to fit any and all shelf and product needs. Manufactured from durable, modern plastics, ZIP Track® provides an extended merchandising life.

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Scan® Label Holder, and you’re finished!

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©2019 Trion Industries, Inc.

Industries, Inc. ©2019 TrionTrion Industries, Inc. ©2024

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Extend Your Revenue Super Hooks!

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Literature Holder Literature Holder

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weights. Give them a try.

Clip label strips available. shape!

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©2019 Trion Industries, Inc. Industries, Inc. ©2019 TrionTrion Industries, Inc. ©2024 ©2019 Trion Industries, Inc.

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in and set down their product, it can get very cluttered,” the Michigan retailer noted. Some distributors take the time to set the beer according to a plan, while others don’t.

Communicating with vendors about the organization of the cave can help. Garcia noted that Molson Coors’ “Purpose Drives Purpose” category strategy aids retailers in bringing in a wide assortment to their caves while keeping them shoppable and easy to navigate.

LATEST ADVANCES Vendors of beer cave equipment recommend that whether c-stores are installing the units in brand new stores or as part of remodeling projects, they should consider the latest advances in cave efficiency. The Anthony automatic beer cave door, for example, features a motion sensor on the interior and exterior of the door, allowing for easy two-way traffic.

“Because of the heavy foot traffic near beer caves, operators need doors that are both 78 OCTOBER 2024 convenience.org

reliable and offer crystal-clear product visibility to draw people in,” Uri Rainisch, senior product manager for Anthony, said.

Lynn Burge, senior marketing manager at Refrigerated Solutions Group, meanwhile, noted that polyurethane panel insulation is more efficient and reliable than polystyrene in keeping beer cold. “Polyurethane’s greater heat resistant properties mean a refrigeration system doesn’t have to work as hard to keep inside air cold, which saves energy,” she explained. Polyurethane also saves on the upfront cost of refrigeration systems, Burge noted.

Once a beer cave is installed, it’s important for convenience retailers to merchandise the space just as they do other areas of the store. “Use everything in your merchandising toolkit,” said Vonder Haar, including cross-category strategies. The iSee executive pointed to merchandising non-beer items in the cave, ranging from bottled water to wine (where legal) to candy bars and beef jerky to spur impulse sales. He added that c-stores also need to work with their direct store delivery partners to ensure the caves are organized, uncluttered and all prices are clearly visible.

Garcia believes that “simply getting shoppers to realize there’s a beer cave in the store and to check it out” is still the biggest opportunity for the units in c-stores.

Noting that only 10% of customers shopping for beer enter the cave, the Molson Coors executive advised, “by making the cave more approachable, engaging and well-lit” and by communicating that they are featured in the store, “c-stores can tap into the beer cave growth opportunity.”

Terri Allan is a New Jerseybased freelance writer, specializing in the beverage industry. She can be reached at terri4beer@aol.com.

Getty Images/gala ly; Getty Images/vladans

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Unpacking the rise of imported beer as some brands surpass domestic labels.

BY KATE BERNOT

Mexican Beer’s

Adobe Firefly

‘FIGHTING SPIRIT’ NACS OCTOBER 2024 81

The subcategory is a bright spot in the beer business and some import brands have supplanted domestic ones as U.S. drinkers’ daily go-tos. According to Circana, a quarter of beer dollars in chain retail came from imported brands in the 52-week period ending in early June, an increase of 9.5% versus the year prior. In that same 52-week period, imports accounted for $11.3 billion in chain retail sales. Because they’re premium-priced, these beers not only add critical volume to a sluggish beer industry, but fuel dollar growth as well.

“The main takeaway is just how successful the imported segment has been in the otherwise flat beer market,” said Scott Scanlon, executive vice president, alcoholic beverages at Circana. “Imported beer has gained the most market share in the past year, with flavored malt beverages and non-alcoholic beer being the only other two share-gaining segments within beer.”

Imported beer’s success stems from one country: Mexico. Beer imported from Mexico made up about 81% of imported beer volume to the U.S. in 2023, an increase of 2% over 2022, according to analysis by the Beer Institute. A decade prior, Mexican beer made up just 61% of beer imported to the U.S. Non-Mexican brands such as Peroni from Italy and Asahi and Sapporo, both out of Japan, have also enjoyed growth periods in recent years, but they haven’t reached the momentum of Mexican brands. Dollar sales growth of Mexican imports (11.4%) outpaced

Imported beer has gained the most market share in the past year.

Source: Circana

82 OCTOBER 2024 convenience.org

growth of total imports (9.5%) in chain retail for the 52-week period ending in early June.

Mexican imports are also driving the vast majority of the growth of imported beer in the convenience channel—the share of Mexican imported beer increased from 82% in 2020 to 87% through June 2024, according to data from NIQ. Some of this steady rise is driven by Mexican beer producers and distributors. Modelo, Corona and Pacifico are all owned in the U.S.

by Constellation Brands, and the company has made these brands its absolute priority since acquiring them in 2013.

“Constellation was really putting a lot of money and distribution effort behind Corona and Modelo at a time when their growth aligned with the organic decline or leveling off of [other beer brands],” said Bryan Roth, an analyst for Feel Goods Company and editor of the alcohol beverage insights newsletter, Sightlines. “The commitment to [growing] import beer from Mexico has coincided with the broader corporate might of Constellation and their distribution partner, Reyes.”

Supplier and wholesaler investment, combined with organic demand and the leveling off of competition, has set the stage for Mexican imports to win big. They’ve transcended their import label and are now some of the most important lifestyle brands in the United States.

BEHIND THE NUMBERS The growth of Mexican beer isn’t just attributed to a growing U.S. Hispanic population. Yes, the U.S. Hispanic population is expanding at a significantly higher rate than the non-Hispanic population, due in large part to Hispanic births. Immigration is a factor, too, accounting for a third of the gain in the U.S. Hispanic population in 2023, according to the U.S. Census Bureau.

But Mexican imports wouldn’t have risen to their current level of popularity based on Hispanic drinkers alone. Rather, these brands

Getty Images/bmcent1

Imported beer is living the American Dream.

In 2023, more non-Hispanic households (61%) purchased Modelo than Hispanic households (39%).

84 OCTOBER 2024 convenience.org

Collage Group ranked beer brands in terms of their performance in cultural fluency, relevance, trust, memories, advocacy and values that align with what consumers desire. It does this through its fluen.ci app, which fuses consumer, brand and industry data to provide brand-specific cultural insights. Collage Group’s fluen.ci rankings show that of the top 10 overall performing beer brands in cultural fluency, Corona ranks number one and Modelo ranks number 10. Only three of the top 10 are traditional domestic brands: Coors Light, Miller High Life and Budweiser. Stella Artois, Heineken and Heineken Silver, Blue Moon and Samuel Adams rounded out the list.

HITTING THE MAINSTREAM In May 2023, Modelo Especial became the top-grossing beer in off-premise channels.

That couldn’t happen without broad appeal across racial, ethnic, age and geographic lines.

“There are not enough Hispanics as a proportion of the U.S. population to propel that to the No.1 beer if only Hispanics are drinking it,” Scanlon said. “Modelo is widespread.

It reached the mainstream a long time ago. … People don’t even necessarily think of Modelo as being a Mexican beer.”

In 2023, more non-Hispanic households (61%) purchased Modelo than Hispanic households (39%), according to the brand, though Hispanic households consumed more Modelo by volume than their non-Hispanic counterparts.

In decades past, imported beer signaled affluence and a degree of exclusivity. But today, Mexican imports are ubiquitous. They enjoy near-universal distribution and tend to outperform the broader beer segment in stores. NIQ data shows the efficiency of Mexican imported beer sales in relation to their distribution points has improved significantly since 2020, such that the growth in Mexican imports can be attributed to both an increase in velocity and a slight increase in distribution points.

And given the geographic proximity of the U.S. and Mexico and the high degree of population movement between the two countries, these beers hardly feel foreign anymore.

Getty Images/NoDerog

have built loyal fans among drinkers of all ethnicities as core Hispanic consumers introduce these beers to the mainstream.

“One of the key cultural attitudes that governs Hispanics is what we label as trailblazing,” said Victor Paredes, vice president of cultural strategy at Collage Group, a multicultural consumer insights company. Hispanic consumers prefer beer—Collage Group research found that 77% of Hispanic consumers polled reported drinking beer over the past three months, 12 percentage points higher than non-Hispanics—and they’re eager to share the brands they love with others. “They pride themselves in being at the forefront, being first adopters and being fashionable.

And they have one of the highest propensities to engage in word-of-mouth. … Their taste palates are in the driver’s seat.”

FORM MEETS FLAVOR Indeed, these imports are winning in the same formats and channels where domestic brands have long dominated. In convenience stores, Circana data shows Mexican imports grew by $1.86 billion in the past three years.

Modelo Especial alone was responsible for 58% of that growth.

Traditional domestic package sizes—single cans, 12-pack cans, 18- and 24-pack cans—are also showing growth among Mexican brands, indicating that consumers view the occasions for Mexican beer and domestic beer as one and the same. Chain retail sales data analyzed

by Feel Goods shows volume sales of Modelo Especial cans in 12-, 18- and 24-packs were all up between 9.5% and 13.2% in 2023. Pacifico 12-packs are up nearly 20%. Single servings of all varieties of Corona and Modelo have grown as well.

So, what’s next for Mexican beer? Mexican imports have set their sights on other popular beer subsegments, including flavored malt beverages and premium light beers.

Canned cheladas—beer mixed with flavors like tomato, salt and lime juice—have been on a tear for years.

The proximity of these Mexican brands has made it so that Mexican beers are domestic, for all intents and purposes.”

86 OCTOBER 2024 convenience.org

In 2023, single-serve cans of Modelo Chelada sold the same volume in chain retail as Heineken six packs. Last year, the brand expanded into flavored malt beverages with a line of hard aguas frescas. These are packaged, boozy versions of non-alcoholic fruit juices popular in Mexico and Mexican-American communities; after an initial launch in Las Vegas, the brand expanded to sales in other strong Modelo markets in 2024.

Constellation launched Modelo Oro nationally in 2023, a low-carb and low-calorie beer targeting the premium light beer segment. It’s caught on fast in the convenience channel, selling more than 1.1 million cases in the 52-week period ending in early June. Notably, there’s still runway for the brand in c-stores, Scanlon said: C-stores account for 36% of Modelo Oro’s dollar sales, while the channel represents 70% of Modelo Especial dollar sales.

Modelo has cemented itself as a true lifestyle brand, using its “fighting spirit” tagline to connect itself to the idea of striving, achievement and grit. To mark the expansion of its aguas frescas line, it didn’t partner with a celebrity but instead announced a celebration of street cart vendors—the everyday people who’ve introduced aguas frescas to the U.S. The brand chose Salvador Gutierrez, owner of the Las Aguas 805 street cart, to receive a custom-built cart and a cash prize.

That may resonate with many consumers and connects with some of the core components of cultural fluency that Paredes mentioned. When thinking about whether a beer brand fits with a certain consumer, Paredes says drinkers ask themselves: “Is this for somebody like me? Does it reflect my social values?”

“What these beers are meant to represent fits in with what may simply be a natural cycle where beer drinkers are looking for something different,” Roth said. “And maybe even something a little more meaningful.”

Kate Bernot is a beverage alcohol reporter who regularly writes for Good Beer Hunting’s Sightlines and Craft Beer & Brewing Magazine; she is also the director of the North American Guild of Beer Writers.

Getty Images/Juanmonino

“The proximity of these Mexican brands has made it so that Mexican beers are domestic, for all intents and purposes,” Paredes said.

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NO NICOTINE Novelty or GEtty Images/StudioM1; Getty Images/FabrikaCr; Shutterstock/Piskova Photo

New Segment?

Retailers, consumers and major manufacturers are looking at nicotine-free products.

BY MELISSA VONDER HAAR

NACS OCTOBER 2024 89

P

roducts that look like traditional tobacco products but contain no tobacco or nicotine are hardly new: Smokey Mountain Chew first launched its herbal smokeless line in 1985. But even as the backbar has evolved, nicotine-free products have sometimes been viewed as niche or novelty.

Today, nicotine-free options are now available in virtually every tobacco segment.

On July 1, 2024, Reynolds American Inc. announced the launch of SENSA, a fully nicotine-free line of vapor products. The SENSA brand initially launched with six flavors in 22 markets in the United States, with the tagline “all flavor, zero nicotine.”

“We felt that the stronger way to bring this forward was to be very clear that SENSA stands for zero nicotine,” said James Demopolis, senior director of vapor brand building at Reynolds. “It’s not just a new product: it’s a new brand and I think if we get it right, it can be a whole new segment.”

Several other manufacturers have joined Smokey Mountain and Reynolds in offering nicotine-free alternatives. Kretek International Inc. launched a line of nicotine-free little cigars under its Djarum brand in 2023, and herbal cigarettes like TAAT and Khoor can be shipped straight to consumers via Amazon.

While nicotine-free sales data is hard to come by, distributor shipment data tracked by the data firm Management Science Associates (MSA) has been promising. Though MSA currently only has shipment data for nicotine-free vapor products, senior vice president Don Burke pegged it as a segment to watch.

“The data shows that there is legitimate consumer interest in zero nicotine products,” Burke said.

Manufacturers in the nicotine-free space point to other CPG categories as evidence of a broader consumer trend towards products that honor a ritual or behavior while leaving out intoxicating elements or ones they deem less healthy, such as non-alcoholic beer, mocktails or sugar-free soda. There are now high-quality options in all of those spaces, both from craft players as well as major beverage companies.

90 OCTOBER 2024 convenience.org

It’s not just a new product: it’s a new brand and if we get it right, it can be a whole new segment.

“Zero nicotine has always been a very small part of the market, but we’re seeing growth from adult consumers demanding alternatives to traditional products,” said Matthew Hanson, chief growth officer at Black Buffalo, a manufacturer of nicotine pouches and chewing tobacco alternatives made without tobacco leaves that also carries nicotine-free versions of its products. “Even though it’s growing from a smaller baseline, it will become increasingly more important to have that choice for adult consumers.”

Here’s a look at the data behind nicotine-free products, the consumers interested in them and whether retailers should view them as a fad or a future growth-driver.

NICOTINE-FREE’S NUMBERS Because zero nicotine is not a segment tracked by most major research firms, it’s tough—if not impossible—to get an idea of the true market. Vapor is probably easiest to estimate as there are nicotine-free vapor options that go through traditional wholesalers tracked by MSA. Burke said zero-nicotine vape first started showing up in MSA data in early 2021, almost entirely in disposables. Since then, the number of nicotine-free disposable vapor shipments has experienced sustained triple digit growth. In the first quarter of 2024, zero-nicotine vapor shipments grew 160% vs. fourth quarter of 2023; and Q2 2024 saw that figure grow another 274%.

“That’s significant,” Burke said, adding, “this is probably an under-representation of what’s really happening. Many vapor items, particularly flavored and disposables items, are being directly supplied to many retailers.”

While triple-digit growth is impressive, it should be noted that it’s coming from a very small base—as of Q2 2024, nicotine-free represented just 1.01% of the disposable vapor shipments tracked by MSA. “It’s small today, but it’s growing quickly,” said Reynolds’ Demopolis. “We’ve seen in other markets like France and Germany, that nicotine-free vapor has grown rather quickly as well.”

There are fewer zero nicotine options in the non-vapor tobacco segments, and most do not go through the traditional distributors tracked by MSA. But manufacturers like Black Buffalo (which offers both nicotine and zero-nicotine smokeless alternative products) have been impressed by the growth.

“We just let the numbers do the talking: zero-nicotine is now about 20% of our retail sales,” Hanson said, adding that Black Buffalo’s nicotine-free line has been available for three years. “Its growth has exceeded our expectations.”

WHY NICOTINE-FREE? The growth of zero-nicotine products is even more impressive when compared to what’s happening elsewhere in the backbar. MSA data shows total nicotine sales are down so far in 2024. Cigarettes are leading the charge with a decline of eight to 10% this year.

“Menthol bans are likely accelerating those trends,” Burke noted.

Which brings to light a crucial difference between nicotine-free products and other products in the back bar: as products that do not contain tobacco or nicotine, they are not subject to state, local or federal regulations or flavor bans.

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Retail Pointers for Zero-Nic For retailers who do opt to bring in zero-nicotine products, the near-universal advice (or often requirement) from manufacturers is to treat it like a nicotine product in terms of selling and age-gating.

But it’s equally important to make sure consumers (and local law enforcement) know the products do not contain tobacco or nicotine.

Here’s how manufacturers suggest retailers strike that balance: • Merchandise it behind the counter with traditional tobacco and nicotine products.

• Apply the same age restrictions to purchase as required by local or federal law.

• But label the product or section as non-tobacco, non-nicotine.

THE ZERO-NIC CONSUMER When asked what type of adult consumer might be drawn to a nicotine-free option like SENSA, Demopolis said, “it’s really across the board. We think it can extend into cigarette smokers as well. If you think about smokers, those same occasions exist across the tobacco and vaping spectrum.”

The desire for flavors is something most manufacturers understand as a major driver.

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John Geoghegan, a brand development consultant who is working Kretek’s Splash rollout, said the company’s research and trials showed just how important menthol taste is to the adult menthol smoker specifically. “[There was] a surprising consensus that menthol taste is more than twice as important as nicotine,” he said. “When Splash trial smokers were surveyed, 51% said they missed [nicotine] a little, 18% were happy the nicotine was gone, and only 31% reported missing the nicotine a lot.”

The same is true for many adults in the vapor category, where the FDA is actively cracking down on illegal flavor sales.

There was a consensus that menthol taste is more than twice as important as nicotine.

Getty Images/VlaDee

Burke said that when flavors like menthol are banned, many menthol smokers turn to the black market or switch to a non-flavored option, “but some might consider a nicotine-free option, continuing with a ritual they like without the nicotine.”

Kretek International and PT Djarum of Indonesia plan to launch Splash Menthol Smokes, a line of nicotine-free, non-tobacco cigarettes at the NACS Show and in trial markets in California and Massachusetts next January.

By being nicotine- and tobacco-free, the SENSA line from Reynolds can offer six flavors: Berry Fusion, Berry Watermelon Fusion, Blueberry Frost, Mint Frost, Watermelon Frost and Passionfruit Frost.

“It’s an insight-led innovation,” Demopolis said. “We see an opportunity for occasions where adult vapers would want flavor, but not necessarily nicotine.”

Aside from flavors, nicotine and tobacco-free products are not under the purview of the U.S. Food and Drug Administration’s Center for Tobacco Products, and so do not need to submit costly premarket tobacco product applications (PMTAs) and undergo review for a new product, flavor or technology to be introduced into the market.

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“In the product research that we’ve done, it’s proven that there are adult vapers and tobacco consumers that enjoy vaping but see room for a product that offers them the chance to enjoy flavor, enjoy the vaping experience—but without necessarily wanting the nicotine,” said Demopolis.

But it would be a mistake to assume flavor is the only driver—or even a driver at all for everyone. In fact, Burke said the data shows many consumers are more drawn to the nicotine-free nature of these products than the flavors.

“We’ve seen in the past that low-nicotine items are also growing in the vapor category,” he said. “[Consumers are] going to lower-nicotine vapor items, and then going to the zero product at the end.”

Hanson has also seen this phenomenon play out, both with adult dip users choosing nicotine free because of a desire to quit nicotine all-together or those who want to merely reduce their nicotine usage because of medical reasons or sensitivities.

“They want to avoid or reduce usage of traditional products—but they don’t necessarily want to stop the ritual associated with dipping,” said Hanson.

In many cases it’s the activity and the mouth feel that adult tobacco consumers are craving, Burke added. “The consumer trying to reduce their nicotine consumption grabs the zero percent nicotine items because they enjoyed the activity of smoking/vaping—I think that’s one of the reasons for growth.”

NOVELTY … OR MUST-HAVE? Clearly the manufacturers investing in nicotine-free products believe there’s opportunity for this once-niche segment to be a real player in the back bar. And Burke agrees based on the data.

“I would say there’s a definite trend here and that I think that a major manufacturer could have a reasonable amount of business in zero percent nicotine products,” Burke said.

But manufacturers are also managing expectations.

“We are getting a positive sense of anticipation from retailers and distributors to 96 OCTOBER 2024 convenience.org

whom we have previewed Splash. They need this for the future,” Geoghegan said. “At the same time, we are being careful to keep expectations realistic. Nicotine-free won’t be for everyone.”

Demopolis estimated nicotine-free vapor would remain small, maybe 3% of all vapor sales—but an important segment for retailers to carry.

“Consumer preferences are evolving, and this is about having a portfolio of products to meet all of those needs,” said Demopolis.

“In a lot of categories, consumers are looking for different products in different moments: and they don’t want to compromise on what they want.”

Hanson said Black Buffalo’s experience validates the market for nicotine-free: retailers often start with the brand’s traditional smokeless alternative products, but quickly expand to the nicotine-free line because adult consumers ask for it.

“It’s an essential part of the portfolio because the adult consumers are demanding it from their retailers,” he said. “Zero nicotine has become more than a curiosity—it’s become a part of the ritual.”

Melissa Vonder Haar is the marketing director for iSEE Store Innovations. Follow her on Twitter at @iSeeMelissaV.

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Distributors are focusing on the preferences of young adult shoppers.

BY PAT PAPE

Catering to the

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Gen Z, those born between 1997 and 2012, is the youngest generation that includes adults. It’s also the most ethnically diverse generation in U.S. history—48% of individuals are non-white, according to Forbes.

WHAT YOUNG CONSUMERS WANT Today’s young consumers are avid readers—of food labels.

More than previous generations, they’re searching for products containing fewer ingredients and ones that they recognize and perceive as wholesome, and they shy away from synthetic additives or artificial flavors. A survey by the International Food Information Council found that Gen Z prefers products labeled “natural” (46%), products that have “clean ingredients” (34%) and products that are “organic” (28%). Items that are plant-based, carbon neutral and have a small carbon footprint are also desirable.

Gen Z shoppers are looking for nutrient-dense foods, reported Brad Helmer, executive vice president of business development for KeHE, a natural foods wholesaler with 19 distribution centers across North America.

“In general, these consumers are eating more frequently— five to six times a day,” Helmer said. “They’re seeking things that are novel, support their dietary needs for wellness, have clean labels and support their beliefs about the world [regarding cause-related issues and sustainability].”

While U.S. consumers of all ages say they want to consume less sugar, Statista reports that Gen Z is the most likely generation to actually do so, with 29% saying they avoid sugar entirely.

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Proprietary research by CStoreMaster, a regional distributor based in Alabama, revealed a “significant 11.6% reduction in total sugar per selling unit in the hydration and energy drink categories, so we focus on low-sugar hydration, energy drinks, kombucha and other pro- and prebiotic drinks,” said Sharan Kalva, president of CStoreMaster. “Additionally, we have observed a 3.5% increase in protein per selling unit and a 6.4% reduction in sugar per selling unit.”

Gen Z has distinct eating preferences in other ways as well, said Jon Cox, vice president of retail foodservice for McLane, a Texas-based wholesale supply company. “They’re more accepting of eating food in non-traditional settings—like food trucks and convenience stores—which presents tremendous opportunity for the industry.”

DRINK DEMANDS Younger shoppers think differently about drinks, too. The U.S. Department of Agriculture reports that Americans consumed about 29 gallons of milk per person annually in 1975, but by 2021, that figure had dropped to 16 gallons. Many consumers now buy non-dairy milk alternatives—such as those made from oats or nuts—which have less calories, cholesterol and saturated fats.

Plus, many consider plant-based alternatives to be more environmentally friendly, requiring less water to produce and generating a smaller amount of greenhouse gases. Statista forecasts the alternative milk category to grow 9% each year through 2027.

Some analysts have dubbed Gen Z “the sober generation,” because members are consuming fewer alcoholic beverages than previous age groups, Mintel reports. Gen Z has the highest usage of low- and non-alcoholic drinks, peaking at 64% for 18–24-year-olds. Statista Consumer Insight claims that 18-20% of Americans between 21-28 years old say they regularly drink beer, wine or spirits, while Millennials, those born between 1980 and 1994, have a higher alcohol consumption rate for beer (31%) and wine (30%).

Gen Zs will often reach for a functional beverage, which can fit into one of three categories, according to Publicis Sapient, a Boston-based consultancy. The first group contains beverages like green tea, green juice and coffee, which are naturally derived. The next category is enhanced beverages with added ingredients, like vitamins, electrolytes, antioxidants, potassium and even CBD. The third category features drinks that claim to produce a desired outcome, such as smoothies designed to help improve sleep or digestion.

Getty Images/Pratchaya; Getty Images/Anton Dobrea; Getty Images/SUSANSAM

They’ve been dubbed “digital natives” because they’ve never experienced life without the Internet, and they can research and access almost any product they want from the palm of their hand. They’re concerned about the environmental and social impact of purchasing decisions—more so than other generations—and choose brands that support sustainability and ethical practices. And Gen Zs have grown up watching TV cooking shows, so they’re open to trying different foods and exotic flavors.

Of course, not all Gen Z shoppers are alike, and there are strong differences in the Gen Z cohort based on region, background, income level and many other variables. While they have not yet reached their full economic potential, their spending power is already estimated at $360 billion in the United States alone, reports the BBC. They’re a segment of shopper that retailers can’t ignore—and should in fact start catering to. As the purchasing power of these young consumers grows, c-store distributors are sourcing and developing products to help retailers meet their needs.

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But few consumers are willing to sacrifice flavor for function. Mintel reports that consumers of all ages say the importance of flavor exceeds that of function, with 43% reporting that they’re more likely to try a new drink based on its appealing taste rather than functional benefits.

“One of the trends we identified was a ‘wellness wave.’”

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Healthy Private-Label Selections Spice Up Snacking Convenience stores that offer private-label products can attract adventurous, young snackers with spicy flavor offerings. “This drove the launch of our Korean BBQ chicken wings last year, our breakfast burritos in January and sweet and spicy Mangonada donut with Tajin in the spring,” said Deanna Hall, senior product director at 7-Eleven. “Mangonada truly feeds into the flavor and experimentation trend of Gen Z going after unique interpretations of classic favorites.”

Mangonada is a Mexican dessert combining mango sorbet with chamoy, a condiment made from dried chilies, fruit and lime juice. Tajin is the brand of a popular spicy Mexican seasoning.

In July, 7-Eleven expanded its branded selection of healthy snacks.

“We added 11 new products to the 7-Select nut and seed line, including everything seasoning whole cashews and spicy lime peanuts, among others,” said Nikki Boyers, vice president of private brands at 7-Eleven. “We’ve also added snack sticks and jerky in bold cracked pepper, Korean BBQ and Cajun blaze flavors.”

The chain stocks popular brands of sports drinks, juices and teas, but launched its own 7-Select Rehydrate sports drinks in the summer. “They help restore electrolytes and provide vitamins while offering a value price,” Boyers said.

Getty Images/Pratchaya; Getty Images/Anton Dobrea; Getty Images/SUSANSAM

HOW THEY SNACK Rich Products, a multinational food company based in Buffalo, New York, noted the importance of Gen Z consumers and other health-conscious eaters of all generations in its MegaTrend Report, created this year for convenience retailers.

“One of the trends we identified was a ‘wellness wave,’” said Elizabeth Sommer, customer marketing manager for Rich Products. “Consumers are expanding their definition of wellness and considering all six dimensions of wellbeing: physical, emotional, financial, spiritual, social and environmental.”

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LOOKING AHEAD TO ALPHA Gen Z shoppers love convenience stores and are twice as likely as other age groups to purchase 10 or more items on a single store visit, according to NACS Convenience Voices data. They are also more likely to use a delivery service, such as 7NOW, DoorDash or Instacart among others, to get c-store products delivered to them.

And you can’t ignore the up-and-coming Gen Alpha generation, comprised of babies born between 2010 and today, who are following in Gen Z’s consumer footsteps. Over the next six years, the spending among the current youngest generation is predicted to grow three times faster than that of previous age groups, according to Circana.

Already those kids are making an impact. Morning Consult surveyed Gen Alpha’s parents (most of whom are Millennials), who said their offspring, aged 14 and under, influence household purchasing decisions, especially in the areas of food and beverage. Plus, more than 80% of parents indicated that their 5 to 12-year-old kids request a specific restaurant “often” or “sometimes.”

Engaging with these young, but influential consumer groups is already paying off.

“We observed a 7.5% increase from Q1 2023 to Q1 2024 in our better-for-you snack category, and we project that by 2027, that category will constitute at least 20% of the entire snack market,” said Kalva of CStoreMaster. “It’s our mission to offer cost-effective, better-for-you options, ensuring that every consumer segment can enjoy healthier choices.”

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.

Getty Images/Tetiana Mykytiuk

Sommer also said there’s been an increase in demand for plant-based and gluten-free options. “Currently, c-stores are the No. 1 foodservice outlet for snacks. Operators should consider adding these desirable offerings to accommodate younger consumers,” Sommer said. “According to Datassential, 25% of Gen Z is extremely or very interested in better-for-you pizza options, and 40% of consumers are likely to eat an entirely plant-based pizza or flatbread menu offering.”

To that end, Rich’s has 13 options in its plant-based pizza and flatbread crust line, including cauliflower, broccoli, zucchini and sweet potato options, as well as a gluten-free Detroit-style pizza crust that can be baked straight from frozen. The company also offers vegan cookie dough in four flavors and a seven-inch cauliflower pita pocket for c-store sandwich programs.

In addition to sourcing products, food distributors also have developed their own branded programs to help retailers cater to young adult shoppers.

“Our category managers are always on the lookout for items that meet the needs of various types of consumers,” said Erika Cottrell, chief marketing officer for Harbor Foods, the largest independent distributor on the West Coast. “In addition to items from existing or new vendors, we have our own Mountain Fresh brand, which features a wide variety of meal and snacking solutions.”

Along with fresh grab-and-go foods, Mountain Fresh offers a wide range of snacks—nuts, dried fruits and trail mixes—in resealable stand-up pouches. “The demand for our Mountain Fresh line is growing as consumers become more comfortable with thinking about c-stores for better-for-you options,” Cottrell said.

At McLane, the Central Eats brand provides grab-and-go items, like salads, cut fruit and parfaits, and “our Emerging Brands program allows retailers to search for products by values, such as eco-friendly, handmade, small batch and dietary preferences, including dairy-free, gluten-free, vegan, keto, certified organic and non-GMO,” said Cox. “We’ve conducted research on generational buying trends and know that Gen Z wants clean products with all natural and real ingredients,” he added. “But product origin and ingredient traceability are also important.”

Gen Z’s interest in health and whole-body wellness is also prevalent in HBC, said Kristen Thaler, category manager at McLane.

“Aquaphor and Coppertone are popular brands and have products with limited ingredients and that support multiple needs,” she said. “Though not specific to Gen Z and Millennials, overall vitamins and supplements are the top category in health, beauty and wellness.”

Gen Z shoppers … are twice as likely as other age groups to purchase 10 or more items on a single store visit.

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The

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Bathroom standards are no joke today— expectations are high, and c-stores that don’t meet them will lose sales.

FrontDoor

BY LEAH ASH

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button that turned the bathroom into a disco, complete with a disco ball, music and danceclub-like lighting.

BATHROOM BUSINESS “Consumers associate clean restrooms with a well-run business,” said Jon Dommisse, vice president, business development and strategy for commercial washroom solutions company Bradley Company. “More and more of our data shows the bathroom is directly correlated to the full experience of the business.”

Of course, the opposite also holds true.

“There is a direct correlation between an unclean restroom and the perception of a poorly managed business,” Dommisse said.

“The store doesn’t even have to serve food on a plate in a restaurant-style setting. Any kind of food, including donuts in a bakery case— consumers do not want the food on-premises if there is an unclean bathroom.”

According to a 2024 NACS survey, more than one in four drivers (26%) say that they used the bathroom the last time they went inside the store, and that is often the pressing issue that takes priority over other behaviors.

To break it down further, 24% of those who purchased gas and used the bathroom were male and 29% were female.

Guests are greeted with a colorful mural as they walk into the restroom at Wally’s.

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Photo Courtesy of Wally’s

C

onvenience stores are essential stops: They are the place to fuel up the car, grab a snack, stretch your legs and, of course, go to the bathroom. A clean bathroom is one of the most important aspects of a winning store—after all, everyone remembers a bad bathroom experience.

Texas-based Buc-ee’s wants customers to know it has “restrooms so clean, we leave mints in the urinals.” That’s one example of a billboard message that the retailer uses to draw attention to its restrooms. The marketing message continues to feed off itself as Buc-ee’s expands beyond its Texas-centric roots and each new location garners local media coverage with stories that talk about the brand’s massive footprint, beaver mascot— and bathrooms.

Back in 2012, bathroom supplier Cintas anointed Buc-ee’s New Braunfels bathroom “America’s Best Restroom.” The voting was still ongoing as of press time for the 2024 winner, but two convenience store brands are in the running: Utah-based Maverik and Kentucky-based Hop Shops, a 15-store retailer that rose to fame on TikTok and news media for its bathroom that invited patrons to push a

The survey also found that more than half of all drivers (55%) say that they have a preference for a certain gas station—and 18% of these drivers said restrooms/cleanliness was the reason for their brand preference.

In essence, the bathroom door acts as a second front door for 26% of your store’s customers. Their experience in the restroom will play a large role in determining how much they will then spend. If you have a clean, well-managed facility, they will be much more open to trusting your food and beverages—especially prepared items.

The bathroom visit is a key part of the overall brand experience, Dommisse noted. According to Bradley Company’s 2024 Healthy Handwashing Survey, 62%, of U.S. consumers make it a point to stop at locations they report have good bathrooms.

What also jumps out in the survey results for Dommisse is the types of places where consumers said they were most concerned about germs: Stores moved to the No.1 place, climbing higher than healthcare settings for the first time. He credits the healthcare segment with doing a “phenomenal job” of making healthcare locations more hygienic and communicating this change to patients.

A RISING FOCUS ON EXPERIENCE At Kentucky-based Hop Shops Convenience Stores, the retailer took customer experience to a whole new level in its bathrooms. The company installed disco bathrooms in six of its 15 stores.

Damon Bail, VP of retail operations and marketing at Hop Shops, said, “I wanted to create a type of ‘if you know, you know’ concept similar to speakeasies in our stores. And the bathroom is really important because one in five people who go into a convenience store use the restroom.”

“At Wally’s, the restrooms are one of our largest draws,” said Andy Strom, chief experience officer at the Midwestern retailer. “Typically, guests will come in, and that’s the first place they’ll go because they know it’s clean.

Afterward, they’ll venture around the store, get some fresh food and do some shopping.”

The brand’s locations are designed to be family friendly, and that extends into the restroom design. The restrooms feature a

Consumers associate clean restrooms with a well-run business.” small commode just for kids, and there is a colorful accent wall along the back of the restroom—along with a mural on the entryway. “Our restrooms are designed to be an immersive, fun and extremely clean experience,” Strom noted.

“I think anyone, of any age, is looking for an experience.” Bail said. “What’s popular right now is having something interactive, or having something that adults can do that makes them feel like kids again,” he noted. “Kids of all ages love it, and we had an 84-year-old come out of the bathroom saying, ‘That was the best day of my life’ …

At the end of the day, anytime you can do something different that impacts people of all ages, I think that matters.”

2024 BATHROOM DESIGN EXPECTATIONS What is acceptable to see in bathrooms today varies from pre-pandemic expectations.

Dommisse goes as far to compare the change to what the iPod did for the music industry.

“Covid is the one thing that forever changed public bathroom design,” he said. The emphasis today for operators is focused on easyto-maintain surfaces—an advantage from a labor standpoint and cleanliness perspective, he said. Consumer-driven trends include a touch-free experience and a greater desire for privacy.

Touchless fixtures have become the expectation, Dommisse said. “Customers are tired of using paper towels or toilet paper over fixtures to turn on/off faucets,” he said.

“They want everything automatic, as much as possible.”

NACS OCTOBER 2024 109

Also gaining steam, a trend toward taller and lower stall partitions with absolutely no gap in the door hinge area. Add to that more unisex/family bathrooms. In addition to parents wanting that for small children, Dommisse pointed out the request now also comes from those tending to elderly parents, who desire more space to help someone in a stall.

Wally’s Strom said, “We want our guests to have an all-around nice, pleasant experience in the restroom.” Each stall is separated with full walls and doors that reach the ground, offering an extremely private space. The sinks have soap, water and drying features all in one fixture, making it a smooth experience for guests.

The entire experience in the restroom is pretty much touch-free with guests, he noted.

Functionality always leads when it comes to considering design and layout in bathroom spaces, said Paula Carr Wideman, interior designer and founder of spatial design company paulaproduct. “It has to function seamlessly, or what’s the point?” she said.

Functionality is a focus at Wally’s. “The restroom really is a priority for us. It’s a common conversation with our managers, and we’ll bring up the restrooms weekly in meetings, mostly because they’re used so much,”

Consumer-driven trends include a touch-free experience and a greater desire for privacy.

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Photo Courtesy of Wally’s

Wally’s restrooms combine functionality and personality, with bright colors and numerous stalls and touch-free appliances.

Strom said. “There’s always maintenance items. Our goal is to keep them operating smoothly and efficiently, so we go over anything that needs to be repaired, fixed, have a deeper clean and more.”

For materials, cleanable surfaces are a priority in retail restrooms, Wideman said, adding that porcelain tile is a workhorse.

Elements like light fixtures offer a bit more room for creativity, as they do not require the same rigorous cleaning as the sink areas.

Here she would consider if sconces might work to soften the space, along with adding some color or sheen.

Wideman noted that touchless facilities applies to almost all restrooms today in retail segments, stadiums, colleges, airports—large-volume facilities, adding that higher-end restaurants tend to lean more toward designing to feel like an extension of the home, and often that means moving away from touchless fixtures in favor of traditional components with handles.

“I like to think about how design interacts with the human experience,” Wideman said.

“From the user’s standpoint, when they enter the space and feel like someone was helping them out, anticipated their needs, that makes them feel seen and want to come back.” Considerations that she points to that connect to this idea include more space in stalls to move around, a place for a smartphone and/or purse or bag, and more recently, even a tissue or towel along with a trashcan nearby so people using that to open the door after have a place to dispose of the tissue. “The foot-door pulls and things that rose in popularity around Covid do not seem to be lasting trends, but people are still using a towel or something to open the door after using a restroom, so it is yet another thing to consider.”

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Hop Shops bathrooms have a special surprise for their guests—a personal disco.

Sparking Connection One of the greatest successes of the disco bathroom is that it sparks connection for both the customer and the in-store employee, shared Damon Bail, VP of retail operations and marketing at Hop Shops. The bathrooms give the store employees something to talk about with the customer.

For example, Bail said, if a customer at the counter sees someone coming out of the bathroom giggling, they’re likely to strike up a conversation with the cashier, often along the lines of: “What’s so funny about the bathrooms?”

Bail said that his cashiers won’t tell customers about the disco experience, but instead encourage them to visit the bathroom the next time they come—assuring them that it’s clean and to not be afraid of the button.

Bail said interactions like this that have helped Hop Shops build its Ribbiting Rewards program. “Rewards cards are just like clean, fresh bathrooms, in that stores have to have them for retention and communication purposes, but our employees have really embraced them,” Bail explained. “Our employees find the stores with the disco bathrooms to be more fun and they really enjoy working there, and it translates into their conversations with customers.”

For more on Hop Shops and its disco bathrooms, check out Episode 429 of the Convenience Matters Podcast.

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CLEANLINESS ABOVE ALL ELSE Every convenience store should be aware of the enhanced focus from consumers around cleanliness, Dommisse said. “The numbers are never going back to the pre-Covid-19 era,” he added, when the percentage of consumers who reported concern about germs was closer to 40%. Today more than 80% of respondents said they are highly conscious of being in contact with germs. “Heightened perceptions around germs continues,” Dommisse said.

“And I don’t foresee that changing.”

Maintaining a high standard of cleanliness in all its bathrooms is of high priority for Hop Shops, Bail stated. The company has a process set up with a standard checklist, daily checklist and shift checklists. As staff clean, they mark that off their list, which is monitored by the district manager. Additionally, Hop Shops uses Cintas for a monthly deep clean. For the disco bathrooms, Bail noted that if anything breaks the maintenance department is automatically notified and sent to fix the issue.

At Wally’s, the restrooms have roughly 15 to 20 stalls in both the men’s and women’s bathrooms, along with another 13 to 15 urinals in the men’s room. “We have full-time restroom attendants. So each restroom is cleaned every hour on the clock,” Strom said.

Leah Ash is an editor/writer at NACS. She can be reached at lash@convenience.org.

Photo Courtesy of Hop Shops

Hop Shops is currently in the process of designing and building three new sites in and around Owensboro, Kentucky, the birthplace of its parent company Valor Oil. Guests can expect state-of-the-art, modern and clean bathrooms, along with new disco bathroom sites. With the ground-up build, Bail hinted at potential innovation to come within the disco bathrooms—but nothing is official yet.

Overall, the bathroom should be an extension of the aesthetics of the business, Wideman said. “We want to continue the theme, and then add a surprise or delight for the user so people come out and say, have you seen the restroom?”

Thank You to Our Members CREATED IN 1982, THE HUNTER CLUB is an elite category of supplier membership named in honor of NACS’ founding CEO: Harry C. Hunter. The club’s symbol commemorates Harry’s nickname: “The Silver Fox.” For their dauntless commitment and support in advancing convenience and fuel retailing, NACS celebrates and thanks its Hunter Club Member companies.

Gold Members Advantage Solutions Altria Group Distribution Company Anheuser-Busch BIC Corporation BlueTriton Brands Cash Depot The Coca-Cola Company*

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Monster Energy Company Oberto Snacks Inc. PDI Technologies** PepsiCo, Inc.* Reynolds Swedish Match North America Swisher International, Inc.

CROSSMARK C-StoreMaster Dover Fueling Solutions Ecolab Electrolit USA General Mills, Inc. Haleon Hunt Brothers® Pizza Ignite Retail Technology InComm Payments iRely, LLC The JM Smucker Company / Hostess Brands

Juul Labs Liggett Vector Brands LLC Lucky Beverage Co Mashgin, Inc. Modisoft, Inc. Nestle USA NielsenIQ** OPIS, A Dow Jones Company Pabst Brewing Company Pace-O-Matic Perfetti Van Melle USA, Inc. Petrosoft LLC

PIM Brands PSR Brands, LLC Red Bull North America, Inc. SPYLT Strategic Retail Partners – SRP Sweetwood Smoke & Co. Trinchero Family Estates Tropicana Brands Group Verifone, Inc. Vivid Impact Westrock Coffee Company Zevia

Silver Members Acosta Group BeatBox Beverages Bimbo Bakeries USA/ Barcel USA Black Buffalo Inc. Bucked Up Built Brands, LLC C4 Energy Campbell’s Snacks Celsius Holdings Inc. Chobani & La Colombe Conagra Brands

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AMCON Distributing Company Anchor Packaging Barebells USA Black Rifle Coffee Company BMO Bounteous x Accolite BP North America, Inc.**^ Broaster Company Bruegmann Buddy's Kitchen, Inc. Bunn-O-Matic Corporation CAF INC. Cardlytics Cargill, Inc. Cenex^ Chester's International Chevron Corporation Chomps CigarBros USA, Inc CITGO Petroleum Corporation Clear Demand, Inc. CORD Financial Services, LLC Crunch Pak CSN Danone North America

Eagle Family Foods LLC Excel Tire Gauge, LLC Farmer Brothers Coffee xxxCompany FBD Partnership, LP Fiscal Systems Fiserv Flexeserve Flowers Bakeries, LLC. Franke Coffee Systems Frazil Freedom Electronics LLC GALLO Glory Global Solutions good2grow Greenridge Naturals C.H. Guenther and Son GSP GSTV The H.T. Hackney Co. Hussmann Corporation The ICEE Company Imbera S.A. de C.V. Impact 21, a W. Capra Company Imperial Trading Company S. Abraham & Sons, Inc iSee Store Innovations J & M Distributors, Inc. Juice Head / Streamline Group Kalibrate LLC KeHE Distributors Holdings

* NACS Global Supplier Council - Classic Members (6) ** NACS Global Supplier Council - Advantage Members (10) ^ Retail Hunter Club Member as of September 2024

Kellanova Away From Home Kenvue KIND Snacks The Kraft Heinz Company The Lemon Perfect Company Lil' Drug Store Products, Inc. Lindt & Sprungli, USA Liquid Barcodes, Inc. Matrix Capital Markets Group, Inc. Max Distributing McKee Foods Corporation Nashville Wire Products NCR Voyix** National Retail Solutions nData Services, Inc. NRC Realty & Capital Advisors NYSLIFE OLIPOP OWL Services P97 Networks, LLC PAR Retail Patron Points Paytronix Phillips 66 Company Q Mixers RadiusAI, Inc. Raymond James & Associates, Inc. Ready Training Online - RTO REDCON1

Rich’s / f’real Rovertown Ruiz Foods Sargento Foods, Inc. Sazerac Company, Inc. SEB Professional North America Shell International Petroleum Company Limited**^ Shiftsmart Simply Good Foods SOCi, Inc. Strategy & Execution, Inc. Sunny Sky Products North America, Ltd. Suntory Global Spirits Sysco Corporate TalkingRain Beverage Co. Techniche Titan Cloud Software Tyson Foods, Inc. Upside UPTIME Energy, Inc. Valero Marketing & Supply VIBEZ Sunglasses Inc. Vita Coco Company Wells Enterprises, Inc. Xcaliber International Zen Beverage, LLC

P U T TI N G

TRUCK ON PA RKING TMHAEP

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Getty Images/Artiom Photo

With a shortage of parking spaces for long-haul truck drivers, c-stores and travel stops aim to close the gap.

BY LORRIE GRANT

E

ver since the coronavirus pandemic ignited a supply chain crisis, the federal government has moved to put more truck drivers on the road.

The Biden administration even pledged to commit more than $30 million to states to expedite commercial driver’s licenses. More trucks hauling more goods is welcomed, considering how significant freight transportation is to the economy. But at every bustling mile along U.S. interstates and freight routes, truckers face a big problem: a shortage of parking spaces.

There are roughly 313,000 parking spaces available nationwide at rest areas for approximately 3.5 million trucks—or about one space for every 11 trucks—according to the Federal Motor Carrier Safety Administration (FMCSA), which regulates trucking and is a division of the U.S. Department of Transportation.

That problem can become an opportunity for convenience retailers—one that could increase their revenue as they expand or build bigger facilities and charge truckers a fee to reserve a parking space.

“Retailers such as convenience stores are part of a broad set of stakeholders who can help solve the truck parking challenge,” said Cicely Waters, spokesperson for FMCSA. “It is important that we work together to improve access to parking for drivers, both in expanding capacity where possible and in getting drivers information about where parking exists.”

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PLANNING FOR PARKING Larger convenience stores at traditional truck stops are already grappling with the shortage and offering hundreds of parking spaces on their premises. Some charge a fee to guarantee spots.

Among them is Pilot Flying J. Truck drivers needing to pull off busy Interstate 10 in Channelview, Texas or I-45 in Houston, for example, can pay between $18 and $22 to park their semi-truck. For just the cab, the cost is $7 per night (the rates are as of July 1).

The retailer is banking on truck parking and planning for hundreds of more spaces this year.

“The 2024 growth plan includes building 10 new travel centers to increase the company’s presence in several states, bringing additional services, amenities and over 500 truck parking spaces to the road,” Allison Cornish, senior vice president of store modernization and development at Pilot Travel Centers, said.

At TravelCenters of America, operator of TA and Petro stops, truckers can use the Reserve-It feature to book a parking space up to 30 days in advance. Its loyalty program, Ultra One, lets members redeem points for reserved parking. About 10% of the parking spaces at a site are reserved, and rates vary daily.

“Professional drivers have expressed frustration over not being able to find a parking space at the end of their day. With reserved parking, no matter what time you get to the site, your space will be waiting for you,” the company said.

Love’s Travel Stops has a network of nearly 600 stores and some 48,000 truck parking spaces. It sets aside spaces for professional drivers at each location free of charge.

Ninety-eight percent of drivers report that they can’t find safe truck parking.”

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There are roughly 313,000 parking spaces available nationwide at rest areas for approximately 3.5 million trucks—or about one space for every 11 trucks.

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TACKLING TRUCKER NEEDS What makes the issue of parking so critical is that truck drivers have restrictions on driving time. By federal law, truckers cannot drive beyond 14 consecutive hours after coming on duty, following 10 consecutive hours off duty. They must also take a 30-minute break after driving for eight cumulative hours without at least a 30-minute interruption.

Therefore, designated locations for parking lets drivers take rest breaks in compliance with hours-of-service regulations to avoid operating while fatigued. Without safe truck parking, drivers might be forced to park in unsafe locations such as highway shoulders, vacant lots or local streets, according to the Federal Highway Administration.

“Parking in places not designated for large trucks can open drivers up to security challenges,” FMCSA’s Waters said, recalling the murder of Jason Rivenburg, who parked in an abandoned lot in South Carolina. Rivenburg was early to a delivery and the point of delivery would not allow him on-site yet. The tragedy, she said, brought to light the challenges drivers can face when they are not in a safe and secure area.

But even if a driver doesn’t encounter violence, a lack of truck parking is still dangerous, since other drivers can crash into a truck parked on the side of a road.

“And yet, 98% of drivers report that they can’t find safe truck parking—costing them time and money, making our roads less safe and weakening our supply chains,” Waters said.

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“This year, we plan to add 20-25 new stores with 70 to 100 parking spaces at each location dedicated to professional drivers,” spokeswoman Lauren Daniels said. “Love’s does not charge for parking at its locations.”

Other large convenience store chains ranging from Circle K and 7-Eleven to Casey’s and Murphy USA are also emulating travel centers in certain locations, replete with truck parking.

Smaller convenience stores, while expanding, aren’t devoting a great deal of parking spaces for truckers or necessarily putting their stores along freight routes where traffic is heaviest.

“We don’t charge to park and only occasionally see full lots,” said Nick St. Romain, who handles business development, construction and maintenance at Y-Not Stop, a small chain in Louisiana. Of its 15 stores, just four locations have dedicated truck parking and “none of these are on interstate routes.”

2024 NACS SHOW

7-Eleven Puts the Pedal to the Metal Along with the growing demand for reliable truck fueling and parking, “The commercial driver demographic is seeing a shift,” said Marissa Schneider, director of commercial fleet, 7-Eleven Inc. “Increasingly, drivers are attracted to fueling at the c-stores they grew up on because they feel cleaner, safer and have offerings they’re familiar with.”

7-Eleven is catering to the needs of these professional truck drivers with its 7FLEET Diesel Network, a network of dedicated diesel lanes, truck parking spaces and more at what will soon total more than 500 locations in 2025 across its portfolio of 7-Eleven, Speedway and Stripes stores.

“What we bring is familiarity. So many customers have been visiting 7-Eleven c-stores since they were children. They know our customer service and our private brands—Big Bite, Big Gulp and Slurpee. Now commercial drivers can satisfy their convenience needs for work and personal use,” said Schneider.

Across 26 states, the 7Fleet network offers: • Dedicated diesel canopies with high-flow diesel lanes and DEF. • 4,500 truck parking spaces, and growing.

• Restaurants including Laredo Taco Company and Raise the Roost Chicken & Biscuits.

• Multiple fleet payment options.

• A dedicated sales team.

“Trucking customers need reliability. Their time is limited, and they need to know that if they make a stop, it’s going to meet their needs inside and outside of the store,” said Schneider. “They need to be able to depend on our sites for reliable fleet and truck payment acceptance, along with competitive pricing.”

The 7FLEET network started with 240 diesel locations at Speedway stores in 2022. Since then, the company has added 135 locations and is now focusing on growing the network to more than 500 locations.

It’s also upgrading technology at over 100 existing locations. “Those POS upgrades ensure that these sites also meet fleet payment needs and provide competitive pricing,” said Schneider. “Fleet and trucker payments offer us a platform to connect directly with our customers to meet their needs as a whole package business solution.”

The 7FLEET locations separate truck traffic as much as possible with separate diesel canopies, designated truck parking and clearly marked traffic flow. “Our primary goal is safety and maneuverability on our lots,” said Schneider, noting that the intentional trucking flow at 7FLEET locations “helps our trucking customers feel as welcome on our lot as the forecourt customers.”

“We don’t think of 7FLEET as a forecourt experience. These are sites with separate diesel canopies catering to the trucking industry,” added Schneider. “We want the customers that know and love us for our convenient consumer offering to know that they can depend on us for their commercial business needs as well.”

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Parking in places not designated for large trucks can open drivers up to security challenges.”

FMCSA works with the Federal Highway Administration to focus on solutions.

And late last year, the Biden administration invested $80 million in grants from its Bipartisan Infrastructure Law to expand access to truck parking at rest areas along freight routes in Kentucky, Delaware and Indiana.

Waters also said FMCSA has led research on smart technology, like the Truck Parking Information Management System, to help connect drivers to information about where to park. Sometimes parking may seem full, and without awareness of parking availability, it can be difficult for drivers to know where to go to park or that there are actually a few spaces open in what looks like a crowded parking lot. The system evaluates data and dissemination methods for monitoring truck parking space availability and making that information available to drivers in real time.

“FMCSA has funded the technology since 2018 and works with states on how to implement it and related solutions,” Waters added, “so that drivers have reliable information to make route and truck parking decisions.”

Lorrie Grant is a journalist based in northern Virginia. As a news manager, she has led reporting teams in coverage of freight transportation, primarily by truck.

What’s Driving Food Packaging Innovation?

Inline Plastics shares how changing consumer expectations are leading to fresh takes on packaging.

WHAT ARE SOME TOP-OF-MIND TRENDS YOU’RE SEEING IN THE WORLD OF FOOD PACKAGING? There has been an increased emphasis on sustainability, such as reducing the carbon footprint and environmental impacts of packaging, leading to a high demand for reuseable and recyclable packaging. To address these trends, companies in the industry have been developing new formulas to create recyclable and reusable packing. At Inline Plastics, the PET material used is third party certified as made with 10% post-consumer content.

Another trend we have been seeing is that as third-party delivery services continue to become more popular, tamper-protection technology and leak-resistant seals have become essential, as products are being transferred between more hands.

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This interview is brought to you by Inline Plastics.

Carrie Cline Senior Brand Manager Inline Plastics

CAN YOU SHARE AN OVERALL SENSE OF HOW THE INCREASE IN DELIVERY IS CHANGING PACKAGING? The rise in food delivery services motivated Inline Plastics to continue with innovation in the tamper protection field. With more people handling the food, consumers want to know that their food stays protected and safe from any contamination.

Inline Plastics packaging includes a tamper-evident and tamper-resistant tear strip so that consumers can be sure that, as long as the tear strip has not been torn, they are the first ones to open their food.

At the same time, delivery drivers want to keep their vehicles clean, so leak-resistant seals are more important than ever. Inline Plastics’ leak-resistant shield is designed so that no excess liquids will escape the packaging.

Also, since food cools down during travel, many consumers will want to reheat their food once it arrives. With Inline Plastics Safe-T-Chef ® products, which are designed for hot foods and are microwave-safe, consumers can reheat their food as much as they want with the option of resealing their package and saving the food for later.

IN WHAT OTHER WAYS ARE CONSUMER EXPECTATIONS AROUND FOOD PACKAGING CHANGING? Consumer expectations around food packaging are changing every day, and Inline Plastics is continuously finding new innovations to meet those expectations. Rather than battling with plastic wrap, consumers look for convenience in packaging to save time, avoid a mess and have the ability to reseal for storage and transportation.

Inline Plastics is consistently meeting these expectations by testing all products in their quality level of production

prior to release, ensuring the products are leak resistant, user-friendly for all and can hold their ideal weight.

Consumers like to buy with their eyes, so we also aim to meet consumer expectations with the packaging’s appearance. With Inline Plastics’ smooth walls and all-clear design, consumers do not have to guess what they are getting or take the time reading the labels, rather they can look at the packaging and know what is inside within seconds.

WHAT ARE SOME C-STORE TRENDS THAT HAVE INFLUENCED YOUR PACKAGING DESIGNS? C-stores provide convenience to customers, and the further development of food packaging demonstrates that. Food packaging is evolving to make convenience even more convenient.

For example, Inline Plastics’ recent additions to their Flip n’ Mix trays offer consumers enhanced options of contents to go with their salads. Additionally, the various size and shape selections with the option of compartments provides consumers with both single-sized and family-sized portions, granting them the option to share (or to not!).

The trends that led to the creation of Inline’s Safe-T-Fresh 7” round package are centered around consumer preferences and industry demands for convenience and variety.

Following the initial launch of our Safe-T-Fresh 4” round package, there was high demand for a range of sizes.

Retailers and consumers alike enjoy uniformity for two reasons: It looks better when the packaging is consistent, and packages are better able to stack when they are the same shape and build. By having a family with size options, retailers can expand their use of Inline Plastic products for different contents to make their packaging more efficient.

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Limitedtime-only beverages create excitement in the vault and spur incremental sales.

BY TERRI ALLAN

124 OCTOBER 2024 convenience.org

Shutterstock/Anton Starikov

Here Today,

Tomorrow

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EXPERIENCE ENHANCERS Dr Pepper Creamy Coconut and Creamy Coconut Zero Sugar made brief appearances in c-stores this summer. According to Jeff Tabor, senior vice president, small format at Keurig Dr Pepper, company research shows that “consumers are looking for new and distinctive beverage flavors to enhance their convenience-store experience,” particularly during key seasons such as the summer or holidays.

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“Introducing limited-time offerings like this summer’s Dr Pepper Creamy Coconut, a coconut-infused variation of the original 23 flavors, can help convenience-store operators increase cold vault conversion rates and overall incremental sales,” Tabor said.

Pepsi Lime and Pepsi Peach, meanwhile— announced in tandem with the brand’s summer grilling partnership with chef Bobby Flay—were available during the early summer in both 12-ounce cans and 20-ounce bottles.

Santee called response to the products “exciting,” and noted that the LTOs are a “great vehicle to test new cola options, which our consumers have come to expect of us.”

Pepsi’s portfolio mate Mountain Dew released a trio of patriotic-themed LTOs over the summer. The “Red, White and Blue” series featured Star Spangled Splash (red in color and berry flavored), Freedom Fusion (frosty white in color, with a lemonade-white peach flavor) and Liberty Chill (with a blue hue and berry taste). Santee said the “buzz surrounding [the brand’s summertime LTOs] was electric and positive,” and that Mountain Dew fans look forward to the one-offs.

“Mountain Dew is committed to LTOs because they generate excitement for our dedicated fanbase, build brand loyalty and bring new drinkers into our portfolio,” the PepsiCo executive noted. “Our fans have built a cult following for our LTO flavors as they generate a sense of novelty and exclusivity while keeping Mountain Dew fresh and relevant.”

Energy drinks are also active in the LTO space. Red Bull’s Summer Edition offering, such as this year’s Curuba Elderflower, is always widely anticipated. Indeed, according to Zoa energy drink, new flavors are nearly as important to consumers as familiar ones.

“When consumers cite what is especially important to them when purchasing an energy drink, 47% cite it’s finding a familiar flavor and 40% cite it’s finding a unique flavor,” reported Brenda Jones, senior vice president, business development, at Zoa energy drink.

“Consumers love both.”

Zoa unveiled a limited-edition green apple flavor in channels outside of c-stores in the

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onvenience store cold vaults looked noticeably different this summer with several high-profile limited-time-only (LTO) beverages sprinkled in. These exclusive beverages—some of which are only available at specific stores—helped drive traffic and build basket sales for retailers.

The here-today-and-gone-tomorrow beverages are charting a new course in the competitive drinks category and giving retailers the opportunity to stand out from the crowd.

“At least half of c-store operators consider LTOs to be a central part of their offerings and are a good way to allow customers to try new drinks while adding value,” said Bryan Santee, chief commercial officer at PepsiCo Beverages North America. PepsiCo released Pepsi Lime and Pepsi Peach LTOs this summer, along with several Mountain Dew limited releases. “People are very loyal to our PepsiCo brands, which means LTOs can leverage our equity to help partners boost sales while also delivering something new and exciting for our fans.”

In addition to the PepsiCo products, other recent LTOs have hailed from the likes of Keurig Dr Pepper, Zoa energy drink and numerous beer and flavored malt beverage marketers.

The wave of new releases of late could be satisfying consumer angst over uncertain economic times. Claire Conaghan, associate director and trendologist at Datassential, remarked that while consumers feel they can’t afford to go on a vacation during a difficult economy, they will splurge on visits to the grocery store. “An LTO beverage can be a splurge,” she noted. “They’re fun and appeal to younger consumers. These consumers love to try new things.”

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TRAFFIC DRIVERS In recent years, LTOs have also found a home in the beer category, particularly among craft brews. But larger players are also catching on.

In 2023 Fifco USA introduced Labatt Blue Light Apple for summertime distribution.

“Response was really hot so we decided to continue the program, but with a different flavor for 2024,” Cedric Smith, chief sales officer, said. This year, the brand offered up Labatt Blue Light Raspberry Lemon, which provided the brand an opportunity to capitalize on the growing “flavor-fusion” trend, as well as to build upon the success of the apple-flavored variant.

Numerous brewers have offered seasonal beers for years. “Our seasonals are a popular choice in many convenience locations,” said Ellie Preslar, chief commercial officer at Sierra Nevada Brewing Co. The California-based brewery typically launches four seasonals per year—a winter-spring release, Summerfest lager, Oktoberfest and Celebration Fresh Hop IPA, the most popular in the line. “Fans of that beer look forward to the release, and it does well in the market year after year,” the beer executive noted.

At Mendez Fuel, with stores in south Florida, customers start clamoring for fall seasonals like Oktoberfest and pumpkin brews as soon as the calendar page flips to September, Andrew Mendez, co-owner, said.

That’s fine with him, as seasonal beers “help to get people into the store.”

Some c-stores, such as Pennsylvania’s Rutter’s, even partner with breweries on exclusive LTOs. This summer’s Don’t Have a Cow IPA, produced in collaboration with Evil Genius Beer Co., followed a similar partnership with Lancaster Brewing from 2021-2023.

“We’re always looking for fun and unique ways to offer customers options they can’t get anywhere else,” Adam Long, senior category manager at Rutter’s, said about the one-off

brews. “By limiting the time available, we can keep the spirit of excitement going.” Not only have the beers resounded with customers; Long noted that they’ve also received great reviews on public platforms.

EXCLUSIVELY YOURS Packaged beverage marketers have also been teaming up with retailers on limited-edition drinks exclusive to those stores. PepsiCo has been particularly aggressive with the practice, partnering with several large c-store retailers recently on unique offerings.

This year, Mountain Dew teamed up with 7-Eleven, Speedway and Stripes stores on Mtn Dew Infinite Swirl, while Gatorade paired with the chains on Thirst Quencher Midnight Ice, a limited-edition flavor. The sports drink also partnered with Circle K this summer on the fruity Gatorade Thirst Quencher Lightning Blast flavor.

“We know that some of our fans enjoy the ‘hunt’ for certain LTOs that are only available at select stores or markets,” Santee explained, “so we work closely with our retail partners to develop special flavors for their customers.” He added that exclusives provide an opportunity for c-store retailers to differentiate themselves in the marketplace and drive store traffic. “It’s a great way to give consumers a reason to come back in and try the latest, limited-time offerings,” Santee said.

Exclusive LTOs don’t have to be just summertime drinks, though. Late last year, Zoa partnered with Sheetz on Dwanta’s Holiday Punch, a play on the energy drink founder Dwayne “The Rock” Johnson’s name.

“Sheetz, like Zoa, attracts a younger crowd that cares about health and convenience,” Jones said of the collaboration, noting that the product was supported with pump radio ads and point-of-sale (POS) materials. “Consumer response was fabulous as we sold out of all inventories prior to the holiday,” she reported.

Convenience retailers are generally pleased with most LTO beverages, as well as the traffic and excitement they bring to their stores. In July, Michelle Jackson, manager at Ready Mart in Asheboro, North Carolina, said “Dr Pepper Creamy Coconut is going over very well. I’m going through a case about every two weeks.”

Shutterstock/Anton Starikov

spring, and Jones said the response was positive. “When deciding where and how to launch a new LTO, we have to consider minimum production quantities, complexities of distribution and the ability to market the product effectively,” she explained.

FOMO FACTOR The biggest benefit to merchandising LTO beverages, retailers said, is the incremental sales they provide. “LTOs lead to additional purchases,” said Bumgarner, “as the customer may purchase their normal beverage and the LTO.” Long added that the buzz and anticipation that the marketers build for the products helps create a “fear of missing out” among consumers, and they’ll pick up the LTO in addition to their primary purchases.

The Rutter’s executive noted, however, that there can be risks with the limited-edition products. “The challenges most often center around planning and forecasting,” Long said.

“If forecasts aren’t accurate, they result in ei-

ther missed sales or overstock positions.” But if planning is spot on, “you can reap the benefits of being the preferred place to stop as new seasonals and LTO launches occur,” he said.

Creators of limited-edition beverages agree that efficient ordering is key to the success of the products in c-stores. “Don’t pull out fast movers for an unknown LTO,” said Fifco’s Smith. He and Zoa’s Jones said merchandising is just as important. “Make sure it’s visible so consumers know it’s there,” Smith added. “Use all of your tools when it comes to merchandising.” He and Jones point to items like suction-cup racks, cooler stickers, 2-for-1 offers, singles bins and pump toppers to promote the drinks.

The LTO beverage wave is expected to continue, and convenience retailers remain committed to the products. “It’s a fun way for brands to remain innovative, test ideas and generate consumer interest outside of promotion and pricing,” Long said. “And it’s a great way for retailers to build baskets.”

Terri Allan is a New Jerseybased freelance writer, specializing in the beverage industry. She can be reached at terri4beer@aol.com.

Getty Images/adamkaz

By limiting the time available, we can keep the spirit of excitement going.”

Meanwhile, Rutter’s Long reported, “We work closely with the brand teams in preparation for new launches and ensure that we allocate space in our coolers to support them.” Rutter’s also utilizes POS promotions, incremental coolers and displays, as well as cross-promotions to drive attention to the new products. Missouri’s Signal Food Stores, meanwhile, utilizes tools like temporary shippers and cooler suction cups to merchandise alcoholic and non-alcoholic LTO beverages, Sean Bumgarner, vice president, said.

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Three elements define your digital footprint: searchability, social media and reputation management.

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If consumers can’t find you digitally, they won’t know what you’re offering.”

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• Improve Search Engine Optimization (SEO, or the process of improving website traffic generated through search engines) and visibility.

The goal is ultimately to improve customer engagement and increase basket size.

DIGITAL FOOTPRINT Consider this example: Let’s say a consumer looking to stop for lunch while running errands searches their map app for “fried chicken near me.”

This potential customer might be presented with a handful of QSRs, local restaurants, a grocery store and a c-store that carries that item as part of its foodservice program. But if that convenience retailer doesn’t ensure its listings include fried chicken among all of the products and services it offers, and that it ranks highly for SEO, the store might not show up at all.

“If consumers can’t find you digitally, they won’t know what you’re offering and it’s a huge missed opportunity for sales,” said Johnson. Johnson has seen numerous stores struggle with this, citing examples like a retailer that had an expansive high-end wine selection but didn’t show up in local searches for wine. Or a c-store that offered a wide range of bait, shiners, crickets, night crawlers and tackle items that wasn’t being promoted to local fishers because those products weren’t part of its digital convenience store description on Google.

Pak-A-Sak, a third-generation family business of convenience stores that operates over 20 locations in Texas, implemented THRIVR at the beginning of the year.

“I realized all of the opportunities that I was missing out on by not including specific products or partnerships with brands that we use in our listings,” said Tiffany Sims, communications manager at Pak-A-Sak. “It was really eye opening when we completed all of our listings [in THRIVR] and added some of the categories or important products that we didn’t have on there before, because it made me realize the growth potential that we have.

And it’s already helped our SEO.” Searchability is key, and an equally important factor is what consumers find when a retailer pops up in their search. According

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today’s marketplace, engaging with consumers online is essential—97% of consumers conduct local online searches to find a business or service. Your customers are learning about new retailers via social media, searching for products or services on their phone while on the go and choosing which businesses to visit based on the reviews they find.

“Customers use their smartphones and digital devices to discover what’s out there, what they want and who has it. In an era dominated by e-commerce giants and digital marketplaces, brick-and-mortar stores face unprecedented challenges,” said Jen Johnson, NACS THRIVR director. “To thrive, these physical establishments must adapt to the digital age by ensuring searchability, active response to customer reviews and robust engagement through social media platforms.”

But maintaining an active and engaging online presence is not a set-it-and-forget-it strategy. “Retailers need to regularly update their business profiles, manage customer interactions and create engaging content,” Johnson said. “This ongoing maintenance can be resource-intensive, particularly for smaller retailers with limited staff, so having a tool to simplify this process and reduce the number of clicks to execute is powerful.”

That’s why NACS developed THRIVR, powered by SOCi, a platform designed specifically for c-stores that integrates social media, reputation and listings management tools, and in turn helps retailers: • Enhance their online presence.

• Manage social media accounts.

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The increased visibility and improved customer engagement can drive higher foot traffic and sales.” sion, and so we definitely missed opportunities to draw in customers.”

Keeping the listings up to date wasn’t always for lack of trying—one of the reasons, he explained, is that it’s a cumbersome process to get Google listings updated or to contact Google if your page is showing errors. “If you don’t know how to do it, it’s not that easy,” Bryant said.

With the ability to manage Jr. Food Mart’s listings in one platform on THRIVR, “Our online presence is streamlined and consistent.

We don’t have to spend a lot of time keeping things up to date or individually managing our listings. It’s more about maintaining our digital footprint, and we can now do that more effectively.”

Sims agreed, adding, “It’s really useful to be able to go in and update all holiday hours at one time, or add a specific product to one or all stores at one time.”

By enhancing their online presence, retailers can attract new customers more effectively, said Johnson. “The increased visibility and improved customer engagement can drive higher foot traffic and sales, contributing to business growth.”

SOCIAL MEDIA STRATEGY Social media isn’t solely an outreach tool—a brand’s social presence can make or break a sale. According to research from THRIVR, 78% of consumers make purchase decisions influenced by social content and 63% will shop elsewhere if they don’t like a brand’s social pages.

“Social media has revolutionized the way businesses interact with consumers, offering a dynamic platform for engagement and brand storytelling. Brick-and-mortar stores can harness the power of social media to amplify their reach, foster community and cultivate brand loyalty,” said Johnson.

For Pak-A-Sak, social media has been a key factor in reaching new customers and driving leads, impacting everything from creating a consistent brand message to highlighting promotions that draw in consumers.

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Getty Images/Hispanolistic

to Google, businesses with photos earn 42% more direction requests and those with complete profiles receive seven times more clicks.

One crucial piece of information consumers are looking for is a store’s operating hours, and it’s critical that retailers keep these up to date. Google found that 96% of customers are more likely to visit a business that displays hours of operation, and searches for businesses “open now near me” increased eightfold between 2021 and 2022.

Consumers also check for holiday hours that might vary from regular opening and closing times. Drew Bryant, president of JFM Incorporated, which operates Creole Fried Chicken licensee programs and 14 Jr. Food Mart convenience stores in Alabama, Mississippi and Louisiana, makes a point to list both c-store hours and specific kitchen hours so customers know when food is available.

But keeping individual Google profiles for multiple stores updated is “cumbersome, hard to manage and creates inconsistency,” he said.

“On our Google listings specifically, there was outdated information and discrepancies, which I think was creating customer confu-

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“A lot of our social content on platforms like Facebook and Instagram is for brand awareness or insight into who we are as a brand. But it’s hard to do one-off posts for something like that on Google, so that’s where we focus on FYIs for customers, like hours changing, new store openings or specific product releases or promotions,” said Sims.

She relies heavily on THRIVR’s scheduling feature for social media outreach. “I can upload a large number of posts across all platforms at once, and that’s been extremely helpful,” she said. “I try to schedule things out as much as I can and can schedule posts up to 30 days in advance.”

And the time saved from having a streamlined social media platform that’s also integrated with THRIVR’s other online reputation management tools gives Sims time back to devote to other aspects of Pak-A-Sak’s digital presence.

“We’re now able to focus a little bit more on actual reputation management and our Google listings and reviews, all of which are things that can fall through the cracks otherwise. And we have seen a really positive impact from doing that,” she said.

138 OCTOBER 2024 convenience.org

REVIEWS DEFINE REPUTATION Customer reviews are a powerful factor that can influence perception of your business, impacting whether new customers come to your store or not.

“A single positive or negative review can reverberate across social networks and online platforms, impacting a store’s reputation and bottom line,” said Johnson.

“Brick-and-mortar businesses must actively monitor and respond to customer feedback to foster trust and loyalty.”

Whether positive or negative, Bryant responds to all reviews of Jr. Food Mart. “With THRIVR, I can monitor reviews in real time and respond quickly, instead of having to go to different store pages and see what’s been posted. Previously, we were definitely missing opportunities to engage with our customers and address concerns.”

Johnson said that responding to negative reviews is a necessary step in relationship building. “By acknowledging and addressing a customer’s concern, retailers can turn a dissatisfied customer into a loyal advocate,” she said.

Sims agreed that “responding to reviews has been a lot easier and a lot quicker. The AI feature also helps expedite the process a little bit.”

Since implementing THRIVR, both Bryant and Sims said they’ve seen an increase in the number of reviews on their Google listings.

“Responding to those reviews has helped our SEO, and our rankings have improved for specific categories, whether it be through posting specifically about products or just mentioning things within the reviews,” Sims said.

The key components of reputation management all drive customer loyalty and encourage both new and repeat visits. “This is crucial in an industry where customer loyalty can significantly impact long-term success,” said Johnson. “By staying at the forefront of digital innovation, retailers can not only meet but exceed the expectations of their digitally savvy customers, ensuring sustained growth and success in the years to come.”

Lauren Shanesy is a writer and editor at NACS, and has worked in business journalism for a decade. She can be reached at lshanesy@ convenience.org.

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140 OCTOBER 2024 convenience.org

CS

RE-FORW A TU U

FROM NA NS O

INNOVAT I RD

F

BET TER

BY JOE BEETON

T

he convenience industry processes more than 54 million in-store transactions every day, 40% of which include age-restricted products. Overall, 80% of consumers who buy age-restricted products buy them at c-stores.

For the most part, these millions of transactions still hinge on scanning physical IDs and driver’s licenses, which is better than manual review but still raises numerous challenges. The old-school process slows down the speed of transactions, divulges sensitive personal data and exposes operators to the risk of errors and violations.

Maybe more importantly, carding creates friction for a meaningful number of your most important customers. According to research from TruAge Solutions, 9% of respondents in a survey don’t like being carded and 3% say they “hate it.”

Among the 12% of people who don’t like or hate being carded, the reasons include: • It’s inconvenient: 55% • It takes too much time: 41% • I don’t always have my ID on me: 39% • I don’t think it’s necessary: 25% • I feel uncomfortable sharing my personal information with a stranger: 15% • It’s offensive: 9% Retailers may be able to solve these challenges in a way that also creates a better experience for customers who don’t mind being carded.

“With the volume of age-restricted transactions at convenience stores, changing consumer behaviors and new technologies, we wanted to simplify and safeguard the carding process for consumers and retailers alike,” said Stephanie Sikorski, vice president of marketing at NACS. The industry needs to consider a whole generation of people who have grown up with technology, Sikorski continued. They don’t carry around paper boarding

NACS OCTOBER 2024 141

passes, for example, and have increasingly started using digital payment systems or stored credit card information in smartphone wallets. “Fewer people are carrying a wallet; they want everything in one spot, typically on their phone,” explained Lisa Rountree, head of marketing and customer experience for TruAge Solutions, a not-for-profit digital age-verification system. “Rather than fumble through their wallet to pull out a physical ID card at the register, tests have proven that pulling out a phone provides a faster, more secure and more convenient method for consumers’ lifestyles.”

Beyond convenience, consumers seek greater protection of their sensitive data.

“Privacy concerns have started to really ramp up,” Rountree said. “A retailer needs to know you are old enough to buy an age-restricted product, but the store doesn’t need to know your name and your address.”

PROTECTING THE STORE

FEWER PEOPLE ARE CARRYING A WALLET; THEY WANT EVERYTHING IN ONE SPOT, TYPICALLY ON THEIR PHONE.”

142 OCTOBER 2024 convenience.org

Not having insight into what is happening at the register—i.e., whether cashiers are doing what they need to do—can leave operators defenseless, said Brittany Wilchar, director of human resources for Lassus Brothers, which has activated TruAge at dozens of locations in the Midwest. “For a long time, we didn’t have any reporting available to us to tell us how often our team members were scanning IDs—only that they were entering a date that was acceptable.”

Digital age verification is “one more tool” that ensures employees—and thus, store operators—are in compliance and can protect themselves, said Wilchar. “There is a little bit more ease knowing that we have a second line of defense. Plus, the reporting capabilities we get on the back end allow us to provide better training to team members.” Retailers that install TruAge, for example, can see carding rates by store per day.

And error or lack of oversight can be costly.

“Manufacturers are starting to see products get banned or restricted because they were perceived as being sold irresponsibly,” explained Rountree. “That not only impacts suppliers but also greatly affects stores’ revenue.”

Plus, fines and sale restrictions can be “absolutely detrimental,” especially for small businesses and independent operators, Rountree said. “Nobody wants to see their employee get arrested for making an innocent mistake.”

The TruAge scan also provides the retailer with admissible proof entered directly into its transaction log that age was verified at purchase using a valid ID. If law enforcement did need to get involved for any reason, then the additional information associated with the person’s identification could be unlocked with a subpoena and retailers would be able to prove they did the right thing.

Another benefit of TruAge is that it makes life easier for the cashier. “Frontline workers have so much on their plate and carding is stressful. How can they know the ID for every state, how to check for fakes, remember both state and federal volume limitations, and whether certain products require mandatory ID checks while others don’t. The problem only gets worse when you consider the employee turnover in the industry,” Rountree said.

“Anecdotally, cashiers love being able to use TruAge. Asking for ID is awkward for some frontline workers. With a digital system—even if carding isn’t mandatory—the cashier doesn’t appear to be the one making the decisions. It just makes carding easier and causes less friction for the employee,” she shared.

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144 OCTOBER 2024 convenience.org

TruAge is entirely free to retailers. “There are for-profit companies that offer age verification out there advocating for mandatory carding. In that scenario, the convenience store industry would be on the hook for potentially billions of dollars each year, having to pay a little bit each time they verified age at checkout. Retailers don’t need another swipe fee situation,” Sikorski said.

And the breadth of age-restricted items sold in c-stores could expand in the future.

“It’s possible that as time goes by, more and more items that are age-restricted will be available in c-stores. It’s not far-fetched that in many states, eventually some form of cannabis may be for sale. Having a foolproof system that preserves privacy and manages volume limitations is paramount for this sort of development,” Sikorski said. “As an industry, we are innovating around age verification and creating even better safeguards.”

Delivery and pick-up is yet another consideration, according to Sikorski. “Right now, you’ve got delivery drivers taking snapshots of peoples’ licenses. There has to be a better way.”

TruAge works with both traditional driver’s licenses as well as the TruAge app. In either case, TruAge anonymizes a user’s data into a persona. The TruAge app takes it a step further by creating single-use tokens that convey the necessary information a retailer needs.

Those are then scanned when purchasing an age-restricted product. It doesn’t associate the scannable token with the customer’s name or identity. When retailers scan the code on someone’s phone, the POS (and several major POS providers, including Verifone and Clover, are already TruAge-ready) logs one of two responses: either the person is of age or they are not. Also captured in the scan is whether the person’s associated government-issued identification card is valid. TruAge also triggers a response to volume limitations if applicable to the products being scanned in that transaction.

With a digital age-verification system like TruAge, the transaction moves faster, and a customer proves they can legally purchase the product without exposing any other information about themselves.

The technology is based on the “Verifiable Credential” standard used by the Department of Homeland Security (DHS), which was a partner in the development of TruAge. As modern life increasingly goes digital, DHS has been faced with implementing systems that can work in parallel to physical identification cards.

“As a government entity that values the privacy and agency of our citizens and our customers, it’s important to us that—similar to a physical credential—a [digital] credential does not reveal to the issuer of that credential where it’s used, because then that issuer cannot, in any way, shape or form, track the usage of that credential across space and time,” explained Anil John, Technical Director of the DHS S&T Silicon Valley Innovation Program for DHS. Joe Beeton is a contributing writer for NACS. His writing and editing career has focused on real estate and development with an emphasis on retail.

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Roscoe first introduced self-service pumps at one of his c-stores in Westminster, Colorado, on June 10, 1964.

146 OCTOBER 2024 convenience.org

Industry icon John Roscoe popularized self-serve … now he ponders what’s next.

BY BRUCE HOROVITZ

Industry icon John Roscoe, now age 94, helped coin the term “convenience store.”

hink back to 1994. The film Jurassic Park was all the rage, and a fuel station and c-store that John Roscoe owned in Northern California was hurting for business. Roscoe, who knew a thing or two about publicity, reached deep into his pockets and paid a whopping $200,000 for a 15,000-pound, 75-foot-long, 50-foot-tall dinosaur. It was airlifted by helicopter from Petaluma, California—which cost another $50,000—and placed near the struggling store.

NACS OCTOBER 2024 147

Roscoe was an innovator at a time when a lot of folks were not interested in innovating.

It took years to catch on, but Roscoe continued to advocate for self-serve gas with advertisements and promotions.

“It stopped a lot of traffic,” said Roscoe.

More importantly, the giant purple dinosaur turned the store’s business around.

Alas, gargantuan reptiles are probably not the answer to the c-store industry’s current set of challenges and opportunities.

Now go back even further to 1964. That’s the year that Roscoe launched self-service fuel at his convenience stores in the Denver area.

Roscoe’s advocacy of the idea helped popularize the game-changing innovation. Sixty years after Roscoe introduced that pivotal customer lure, it’s time to ask: what could be the convenience retail industry’s next great innovation?

A FOCUS ON VALUE Who better to pose that foundational question to than Roscoe himself?

Roscoe, who is 94, is widely credited with concocting the term “convenience store” in 1957. Four years later, he met with a dozen other c-store owners in Kansas City, Missouri, to co-found NACS. He pushed for the association to embrace the “convenience store” term over other possibilities that included “bantam stores” and “drive-ins.”

According to Roscoe, nobody has that next great industry changing idea at the moment.

But all it will take is some out-of-the-box thinking to get there.

“You have to find out what people are actually buying today,” Roscoe said.

By that, he means what customers will actually go out of their way for. For many customers, that means value. “Give people more value for their buck,” said Roscoe. Value is key for just about everything in retail, he added.

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At his Big Top store in California, which had a roof resembling a circus tent, Roscoe once rented a live elephant to draw in customers.

What most time- and cash-strapped customers today are looking for are tasty, nutritional meals that are value-priced. Typically, Roscoe said, the average family has about 10 favorite meals it eats. C-stores could capitalize by offering a popular meal each day of the week, creating a rotating menu of delicious and budget-priced meals.

Likewise, he said, there are a limited number of key grocery items—including fresh foods—that most folks buy weekly. What if the c-store could also supply these staples, but at a value price instead of at premium price?

LAUNCHING SELF-SERVE Real success going forward will require real innovation.

That’s one thing the industry can always use, said Keith Reid, editor of Fuels Market News. He regards Roscoe as one of the best. “[Roscoe] was an innovator at a time when a lot of folks were not interested in innovating,” Reid said. “He saw the opportunity 150 OCTOBER 2024 convenience.org

I was always searching for ways to improve my profits.

before other people did—others didn’t see it until they were forced to.”

That can require being open to new ideas— and taking risks.

Roscoe first introduced self-service pumps at one of his c-stores in Westminster, Colorado, on June 10, 1964. A Denver-area inventor had approached him a month earlier about a device he had invented to release gasoline from the cashier’s stand. The device allowed customers to pump their own gas while the clerk inside the c-store was able to control the payment portion of the pumps.

“It sounded bizarre to me, but we had the same banker—and the banker convinced me to do it,” recalled Roscoe.

The first day, Roscoe sold 124 gallons of gasoline.

But Roscoe “never wavers,” said his wife Marilyn, who has been married to Roscoe for 67 years. “He keeps right on his path.”

Roscoe circulated the neighborhood with handbills, and self-serve sales kept rising. He

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had spent $10,000 on the system—and soon was earning about $50 per day on it. Not a bad return. And self-serve meant Roscoe didn’t need to add any labor.

In 1964, he gave a pep talk about self-serve to an industry convention in Anaheim, California, but he recalled that few folks had the money or interest. It took years to catch on.

By 1969, according to Roscoe, there were just 500 self-serve units in the entire country. Many people thought pumping fuel could be dangerous—particularly for women. Many localities actually had laws against self-service fuel. In Antioch, California, for example, the city required an attendant to sit on a stool and watch customers pump their own gas, which, of course, defeated the very purpose of self-service.

CREATIVE IDEAS So where is the next John Roscoe? “Who is the next industry person to stand up and say: ‘I have a better idea?’” posed Jeff Lenard, vice president of strategic industry initiatives for NACS. “Who can say that being comfortable isn’t good enough?”

Roscoe’s impact on c-stores was somewhat akin to Walmart founder Sam Walton’s impact on big box retailing, said Lenard. Roscoe was “laser-focused on how to make a profit.”

If it’s not making money, it’s not worth doing, said Roscoe. “I was always searching for ways to improve my profits.”

Roscoe tried just about everything to get folks to stop at his c-stores, especially before self-serve fuel really took off. He tried everything from renting carpet cleaning machines to renting tandem bikes.

Then, there were the so-called “bagatorials.” These were editorials—complete with headlines and strong opinions on everything from taxes to legislation—that one of his c-store brands posted on its grocery bags. Why, after all, allow so much free space to go unfilled?

152 OCTOBER 2024 convenience.org

Skeptics thought it might be dangerous for women to pump their own gas when self-fueling was first introduced.

The quirky concept garnered enough chit-chat that the mini essays were later published in their own book. The back cover to the book asked: “Ever sat down to read a grocery bag?”

But Roscoe’s ideas for drawing in customers and garnering attention grew much bigger than grocery bags. A c-store that Roscoe owned in California was in need of more business, so Roscoe decided to rent a live elephant to attract attention for a few days. At one point, he even considered actually purchasing a live elephant and keeping it outside the store permanently.

Live elephants aren’t part of the future of c-stores, but innovation and evolution are required. “Gasoline is not going to save the c-store business,” said Roscoe. “They will have to continue to innovate and add more value to the consumer.”

Bruce Horovitz is a national freelance journalist who formerly wrote the marketing column for the Los Angeles Times and was a marketing writer for USA Today.

Getty Imges/Jasmin Merdan

Keeping 154 OCTOBER 2024 convenience.org

UP with THE consumer A new year means new consumer data. Convenience Voices has started gathering 2024’s customer insights.

BY EMMA TAINTER

NACS OCTOBER 2024 155

E

very year, the NACS Convenience Voices team celebrates the new year in July. It’s marked by a new set of surveys being deployed across the country.

Last year saw around 10,000 responses as the research team collected the honest opinions of consumers at the “retail moment of truth,” which is immediately when customers exit the store.

Convenience Voices rounds out the NACS research offerings, which include the NACS State of the Industry (SOI) Report®, the NACS SOI Data Archive and the NACS SOI Talent Dashboard. Consumer data is an essential compliment to operational and financial data collected for the SOI Report; after all, convenience is the ultimate currency in today’s marketplace.

The survey questions are curated and designed to pinpoint consumers’ attitudes and actions, which are rapidly changing.

Shopping behaviors and lifestyles have shifted dramatically in the past few years, and consumers have increasingly become more price-sensitive and value-seeking.

Convenience Voices collects national numbers for companies to benchmark against, but each participating company receives a personalized report showing exactly what customers thought of their experience at the store. Questions range from demographic information (who is the shopper?) and customer intentions (who are they shopping for and why?), to drilled-down information about why exactly they chose a certain location (what about the products or offerings made you choose this store?).

While 2024 data is currently out in the field being collected, 2023 data is a great window into how consumers were feeling. Keep in mind that these are national statistics.

The answers to these questions are also collected for each Convenience Voices customer, resulting in a personalized dataset.

156 OCTOBER 2024 convenience.org

an impressive

9.8%

of consumers reported visiting a c-store more than once a day.

27.4%

of consumers chose a convenience store location for low pricing and

27.6%

chose a store for loyalty perks.

Highlights from the 2023 data are: • The average convenience shopper made 2.6 trips to c-stores a week in 2023—and an impressive 9.8% of consumers reported visiting more than once a day.

• 76.0% of consumers reported their convenience store run taking place between running errands, commuting or just a quick trip to pick something up.

• The top reason for visiting a convenience store given by Convenience Voices respondents in 2023 was to purchase a drink (41.9%). A close second was getting gas or charging a vehicle, with 36.3% of reporting consumers choosing that option.

• 27.4% of consumers chose a convenience store location for low pricing and 27.6% chose a store for loyalty perks.

One of the most top-of-mind issues for retailers is their foodservice program—or rather, when and why customers might opt to eat somewhere else. In 2023, Convenience Voices data determined the food leakage rate was 25.7%. This meant that one in four customers planned to leave a convenience store with the intention of purchasing food at a QSR within the next 30 minutes.

About a quarter of customers indicated they were left looking for additional foodservice options (27.2%) or were not able to find a specific foodservice item at the store location (26.2%). Of course, these numbers may vary from company to company and by location. While foodservice leakage decreased by 3.6 points year over year, the industry leaves billions of dollars on the table.

Visit frequency, shopping instances and motivations, and food leakage rates are just a few of the many data points that Convenience Voices gathers, and there’s a significant amount of insight to be gleaned from knowing how and when your customers shop and what they’re looking for. If you’re interested in learning more about your customers through a Convenience Voices survey, contact Jayme Gough (jgough@convenience.org).

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EQUIPMENT INNOVATIONS TO UP YOUR FOODSERVICE GAME Smart technology, UI updates and automations can help improve offerings and reduce labor.

BY KAREN ALLEY

158 OCTOBER 2024 convenience.org

NACS OCTOBER 2024 159

Al pastor tacos at Fuel City,

brisket sandwiches at Buc-ee’s, chicken and biscuits at QuikTrip and baked-to-order pizzas at Casey’s—across the United States, whether it’s large chains or mom-and-pop convenience stores, retailers are taking their food offerings to new heights and everyone is looking to corner their share of the market.

“Differentiation is key to succeeding in today’s competitive market, and foodservice is one way to do that,” said Joe Klosterman, senior director of customer success, Boelter, a foodservice design and equipment company with headquarters in Wisconsin. “Today’s consumer is more educated on what quality looks like and they’re willing to wait a few more seconds or drive further to find it.”

Foodservice sales were up 9.3% in 2023 according to the NACS State of the Industry Report® of 2023 data, bringing the category to 26.9% of in-store sales. And not only is foodservice bringing in a greater number of sales, it’s also a profitable category, with margins averaging 51%.

While consumer demand is driving the category, it’s the new technologies, features and innovations in foodservice equipment that enable c-store operators to provide high-quality food and greater variety to their customers. Here’s a look at five trends in foodservice equipment that are allowing c-store operators to improve their offerings.

The Internet of Things (IoT) has come to the kitchen, and being able to connect appliances to software has many advantages.

Combi-ovens and high-speed ovens with connectivity capabilities can be programmed with recipes from remote locations, which helps ensure quality and consistency of food produced from one location to the next. This is especially important as more multi-store operators create brand identities and private label food programs.

The ability to push new menu items to multiple stores at one time also makes it easier to roll out limited time offers.

Connected cooking equipment also allows operators to analyze data from the ovens, giving insights into traffic and usage patterns to create more efficient staffing schedules.

They can also stay on top of maintenance requirements and alerts, making sure tasks get done when needed or problems are repaired quickly. This not only helps reduce the risk of downtime but can help extend the life of the equipment. And when something does go wrong on a connected oven, service agents can see the error code before visiting the location and plan accordingly, so the equipment is back up and running with less downtime.

Connectivity isn’t the only way technology is being used to improve operations. Technologies such as Pitco’s SmartOIL Sensor (SOS) or Frymaster’s Filter Quick oil quality sensors, for example, take the guess work out of when to change the oil in fryers. In addition to alerting that its time to change the oil, the sensors provide automatic top off capabilities to minimize oil waste. Pitco also recently introduced the TorQ gas fryer which uses forced convection heating and continuous filtration to extend the life of the oil.

CONNECTED COOKING WITH IoT

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IMPROVED FUNCTIONALITY

High-speed ovens have long been a fixture of c-stores, but new technologies have brought even greater cooking ability and quality to this category, allowing c-stores to create more high-quality made-to-order items at a faster clip.

• IBEX’s high-speed oven uses a combination of microwave and RF technology to improve the amount of control over energy going into the food product.

• TurboChef and Merrychef utilize impingement cooking, which blasts hot air through a jet plate to achieve uniform browning in high-speed ovens.

• Rational recently introduced the iHexagon, which uses convection, microwave and steam settings. A smart system adjusts the parameters according to the food being cooked, allowing for optimum speed without drying food out.

Good holding equipment allows operators the ability to batch cook without having to hire more staff for busy times of the day. CookTek’s Crisp ’N Hold and Merco’s CrispyMax offer new holding options that keep food fresh and crisp. They produce a curtain of air which flows over the food to keep it at safe temperatures while reducing moisture loss.

On the beverage side, products that can help ensure quality will lead to less waste. “Drink pour outs are incredibly expensive for c-store operators,” said Michelle Fronsee, senior vice president of business development-retail convenience, Middleby Corporation. “A customer will fill up a full 32-ounce cup, take a sip, and if it isn’t to their taste they’ll pour it out.”

A product like Newton’s Constant Flow Valve (CFV) replaces ceramics, which had limited flexibility. It can be installed on new and existing equipment to provide a consistent ratio and output pressure on both carbonated and frozen beverage dispensers.

Whether it’s fryers, combi-ovens or holding cabinets, much of today’s equipment features touch-screen panels which take the guesswork out of food production. Operators can program in recipes, including time, temperature and alerts to stir or flip products, and items are easily cooked to perfection with the touch of a button. For operators with multiple locations, touch-button cooking menus ensure consistency from one store to the next.

In addition to programming recipes and cooking methods, these automated control panels also alert operators when it’s time to clean equipment or perform regular maintenance. It can also display service codes if something goes down in the equipment. Regular reminders help ensure the equipment works at peak efficiency and reduces downtime.

One of the newer trends in control panels is the ability to upload pictures or icons to accompany the pre-set menus. “User interfaces with pictures [make it] easy to train [employees], which is beneficial in operations where there’s high employee turnover,” said Mark Richardson, vice president and managing director of kitchen, Welbilt.

USERFRIENDLY INTERFACES

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Most c-stores don’t have the luxury of designing kitchens in large spaces.

Manufacturers have risen to the challenge, introducing smaller sizes of traditional equipment. Rational’s smallest combi-oven comes in at 2 x 2 x 2 feet, and this electric unit can be put anywhere in the kitchen.

“The benefit of a combi-oven is the flexibility, not only in types of cooking but because it can manage heat and dehumidification, so you can prepare food and then hold it in one unit,” said Stuart Schwadron, director of project management, Rational.

Ventless options also help improve flexibility and save space. Installing an exhaust hood can be costly—instead, ventless combi-ovens such as Alto-Shaam’s Combitherm send grease down a drain and don’t need a separate unit to condition the air. Many high-speed ovens also come with ventless options, and the small size makes it easy to put these on a countertop for quick pizza and sandwich prep.

“We’re starting to see more independent [retailers] adding foodservice programs to existing businesses,” Fronsee said. “For that market we’re catering toward having equipment that doesn’t take up a lot of space. We even did a promotion to show how to do a foodservice program with three pieces of equipment—a speed oven, an automatic coffee machine and an ice machine.”

SOLUTIONS FOR SMALL KITCHENS

With labor an everpresent challenge, “One of the priorities at the moment, whether it’s food prep or production, is figuring out the least amount of steps needed in order to produce something high quality,” said Boelter’s Klosterman.

He said the Robot Coupe processor is popular for prep, as it can chop, knead, grind, slice and grate, saving hours of manual labor.

Programmable features on combi-ovens and cook-and-hold ovens are another time saver, allowing operators to set recipes to cook for a certain amount of time and then automatically switch to holding, eliminating the need for someone to manually make the switch.

Some combi-ovens also come with self-cleaning options, which spray the interior with water jets. Keep in mind that for this option the equipment will need to be installed near a floor drain.

Automated coffee and espresso machines simplify the premium coffee process, allowing employees or customers themselves to create a variety of coffee drinks, including iced lattes and cappuccinos, without the need for a barista. Most also have a clean-in-place feature, which cuts down on maintenance time.

From making equipment more user-friendly to improving cooking quality, it’s easier than ever for convenience stores to up their game when it comes to foodservice offerings.

“Equipment has evolved to meet the demand for speed without sacrificing quality,” Klosterman said. Whatever you choose to implement, the latest equipment can help enhance your foodservice program.

AUTOMATION FOR LABOR SAVINGS

Karen Alley is a North Carolina-based freelancer published in a variety of business-tobusiness magazines covering retail, foodservice and health care.

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WHAT’S

HOT IN COLD STORAGE New products in refrigeration give retailers merchandising options.

Shutterstock/Stone36

BY KAREN ALLEY

NACS OCTOBER 2024 165

From packaged beverages

to grab-and-go food, a good bulk of the products sold in c-stores reside in refrigerated merchandisers. Packaged beverages make up a big share of inside merchandise sales (17.96%), while commissary foodservice items are also growing in dollar sales per store (up 6.7% from 2022 to $6,224 on average per store, per month) according to the NACS State of the Industry Report® of 2023 Data.

The banks of walk-in coolers and cold vaults along the store walls have long been a staple of c-stores, but even this tried-and-true category is seeing innovations. Today’s merchandisers can do much more than just keep products cold.

Branding, too, plays an important role in grabbing customers’ attention and maintaining their loyalty. Refrigerated merchandisers have a lot of real estate for logos and signage, or even just colors to enhance your store’s brand.

The Infinity Max from Anthony

IMPROVING THE TRIED-AND-TRUE BANK OF MERCHANDISERS Packaged beverages are a driving force within c-stores, coming in as a top performing category for inside merchandise sales.

Getting product out in front of customers is key to sustaining and growing sales.

Products such as True Manufacturing’s Contemporary Visual Merchandiser (CVM) and Anthony’s Infinity Max are two new lines of merchandisers with doors engineered to have more glass surface to show off more product. The CVM’s curved edge design helps improve the visual field and the cabinets also have space for more product than its traditional counterpart, the company says. Anthony’s Infinity Max is designed with minimal rails that could

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otherwise impair visibility, while using standard glass packs for durability.

Manufacturers have paid attention to interior design as well. “An emerging trend involves using black material for the interior of coolers, enhancing the vibrancy of the displayed product,” said Randy Skyba, vice president of sales and marketing, Due North. Adding colorful LED lighting to that black interior can also make displays stand out better.

“LED lights deliver brilliant illumination for products while using less energy than fluorescent fixtures,” Skyba said. They can also be added as strips to each shelf, so offer more flexibility.

LED lights deliver brilliant illumination for products while using less energy than fluorescent fixtures.”

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FLEXIBILITY AND CUSTOMIZATION Shelving can provide flexibility for drinks of different categories and sizes. Marmon said its new Ice-Glide is a completely customizable shelving system with snap-on components that can not only be set to fit any size bottle or can, the shelves are also easy to remove and clean in the case of a spill.

Temperature is another area where flexibility comes into play, especially for operators with limited space.

Retailers might want the ability to stock pints of ice cream in a cooler door one week and switch over to energy drinks for an LTO the next week. The FlexTemp line of merchandisers from True Manufacturing has the ability to go from refrigerator to freezer at the flip of a switch, with a temperature range from 38 degrees to -10.

Aside from the perimeter coolers, standalone refrigeration units placed strategically throughout the store can help drive sales. Standalone units come in a variety of sizes and can be put virtually anywhere in the store, encouraging impulse buys at the register or other high-traffic areas.

Manufacturers are helping operators make these units stand out and attract attention by adding a slew of colors options and branding capabilities to their product lines.

Beverage-Air and True Manufacturing offer a powder coat option that comes in a slew of colors and can be customized. True Manufacturing also offers some automotive paint options for a pearl sheen, and Beverage-Air amps up the customization to include logos and artwork

A glass door merchandiser from Due North

Shelving can provide flexibility for drinks of different categories and sizes.

printed on a vinyl wrap and applied to the merchandiser.

“We’ve seen the grab-and-go concept in c-stores for a long time … but many operators are self-branding products and putting it in their own packaging. Having this reinforced on the merchandiser only helps grow customer loyalty,” said Todd Lindsay, vice president of strategic accounts, Dover Food Retail.

For a different kind of flexibility, some companies, such as Polar King, offer refrigeration units for outside the store. Polar King offers both coolers and freezers engineered for outdoor use.

Environmentally Friendly Refrigerants When you start shopping around for refrigerated merchandisers, you’ll more than likely see manufacturers listing the use of R290. This refrigerant is replacing hydrofluorocarbon refrigerants (HFCs) that have a much higher Global Warming Potential (GWP).

The switch is being aided in part by the American Innovation and Manufacturing (AIM) Act of 2020, which authorized the EPA to address HFCs by providing regulations and guidance in phasing down the production and consumption of listed HFCs, manage the HFCs and their substitutes and facilitate the transition to next-generation technologies through sector-based restrictions.

Manufacturers will no longer be able to use high GWP HFCs in standalone refrigeration after January 1, 2025, and all retail food equipment by January 1, 2026.

For c-store operators, the equipment in stores will not need to be replaced just because of the mandate. But as the switchover gains momentum, prices of HFC refrigerants will increase and availability will become more scarce, making maintenance and repair more challenging.

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A grab-and-go merchandiser from Due North

MERCHANDISING WITHOUT DOORS As grab-and-go packaged food grows, open-air refrigerated merchandisers play a role in getting those products front and center. Whether it’s a horizontal or vertical case or a shop-around island, there’s something appealingly easy about reaching in for product without having the barrier of a door—which can subtly spur customers to pick up more merchandise.

“These cases allow retailers to creatively and skillfully merchandise prepared food items for all dayparts, from

HIGHLIGHTING SECURITY Shrink and loss prevention are issues every retailer deals with, and refrigerated merchandisers aren’t immune to this challenge, whether it’s from theft, power outages or other unforeseen circumstances. Some innovative technologies on refrigerated merchandisers are attempting to reduce this risk.

Due North offers SmartLock and SmartConnect technologies on its Minus Forty product lines. The SmartLock monitors the interior temperature of the equipment and locks the door if the cooler gets warm or breaks down, preventing access to the products inside until the operator can inspect the food and dispose it if necessary. The SmartConnect feature uses the Internet of Things (IoT) to allow operators to monitor temperatures in real time and get notifications if a door is left open or the unit exceeds the set temperature.

Modern Store Equipment’s Secure Cooler seeks to deter shoplifting of high-theft food and drink items. The locking system is completely invisible to the end user and can be controlled with a timer, an app or with the push of a button behind the manager’s counter.

“We know there are items that operators would like to limit access to, but with limited staff it’s inconvenient and time consuming to have to come around the counter to

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breakfast to snacking, all in one area,” said Marjorie Proctor, senior marketing and design manager, Hillphoenix.

For operators looking to take advantage of branding and customization on open-air coolers, horizontal and vertical cases have the same options for colors and signage as their door-laden counterparts. Many come with retractable screens that can be pulled up at night, or the choice to upgrade to sliding doors that lock. Island merchandisers that customers can walk around provide even greater flexibility in placement.

unlock a merchandiser,” said Will Steinmann, president, Modern Store Equipment. “Our security system provides an option for people who want to minimize loss and can be retrofitted on a variety of merchandisers.”

Anthony has also answered the need for more security with its Kodiak Automatic Beer Cave doors. “The beer cave is a frequently shopped location at the c-store, and putting locks on those doors came across as not customer-friendly,” Lindsay said. “Our project allows for remote locking with a switch behind the counter for any clerk to provide access.”

“With limited staff it’s inconvenient and time consuming to have to come around the counter to unlock a merchandiser.”

M NTE Artificial intelligence can streamline technician workflow.

BY LEAH ASH

B

uilding customer loyalty is a high priority, and delivering on customer experience is often the key to loyalty. Providing customers a great experience can involve your unique offer, but it’s more than that. The bottom line is that a great experience is a smooth experience.

Industry veteran and Senior Vice President of Customer Success—Convenience at Vixxo, a facilities solution provider, Jeff Stegman noted that many c-stores have at least 30 equipment assets, a number that is continuing to grow. “Whether it’s a pizza maker, a beverage dispenser or something else, equipment that isn’t up and running leaks both dollars and customers. With 75% of c-store profit coming from in-store sales, operators want to ensure customers get what they need,” he said.

Vixxo has observed that most stores do well in maintaining their HVAC and refrigeration equipment. However, food, beverage and pump equipment are more likely to be out of order, which negatively impacts the overall store experience. Maintenance presents several challenges, such as the availability of trained technicians, increasing equipment complexity and inefficient processes.

When a piece of equipment fails, it halts sales and may drive customers away for good.

In a Vixxo study, 35% of convenience stores reported issues with revenue-generating equipment, and a quarter of all stores had 172 OCTOBER 2024 convenience.org

problems with food and beverage equipment.

“We see inefficiencies in the maintenance and repair process, combined with a shortage of trained technicians,” Stegman explained.

Efficiency is key when it comes to making repairs in the store. Today, most corporate c-store operators have their own in-house technicians as part of their facilities model.

This model is meant to help manage costs, improve customer experience and provide better control over repair and maintenance— but it doesn’t always accomplish these results, said David Lambert, president at Vixxo.

Lambert explained, “We’re seeing organizations primarily focus on the percentage of work orders internal technicians complete.

They are not always looking at efficiency or the right balance between external providers and internal teams, leading to higher costs and more equipment downtime.” An effective technician team, he said, should be spending more than 60% of its hours on-site. He’s seen operators with on-site numbers below 50% … who still pay their technicians a lot of overtime.

TRANSFORMING THE FIELD WITH AI It is projected that by 2025, the maintenance industry will face the challenge of filling 3.4 million jobs, as many technicians opt for retirement. The phenomenon is part of what’s referred to as the “Silver Tsunami.”

Lambert noted that the average time to recruit for a maintenance role is now more than

Brought to you by Vixxo.

NANCE cultivating and supporting the growth and development of these individuals. This was a great opportunity for artificial intelligence, AI, to come into play.

According to McKinsey, AI could add up to $4.4 trillion value to the economy. As many companies look to unlock AI’s potential, Vixxo has been exploring how to impact the facilities industry. “We’ve identified numerous ways for AI to enhance our services and add value for our clients. Our AI journey began several years ago, but we made critical investments last year to support technicians in the field” shared Bobby Hunnicutt, VP of IT at Vixxo.

50 days—with an average training time of six weeks added on. Additionally, the turnover rate is at 20%—and even higher for employees in their first year—so employees are spending a lot upfront to build and maintain a technician team.

As the influx of new technicians continues to grow within the industry, companies are faced with the critical responsibility of

REFINING THE PROCESS Currently, when technicians need support in the field, they have a few options: • Call in-house tech support, which often has delayed response times.

• Contact a colleague or friend for help.

• Refer to instruction manuals or guides.

“These options are inefficient, and often mean that a necessary repair takes longer than it needs to” said Jim McCarthy, COO at Vixxo. Vixxo delved into the various ways that the technician experience could be enhanced and efficiency improved. One major issue that Vixxo looked to solve was the transition between experienced technicians who are retiring and the technicians who are just entering the workforce and who need a way to quickly learn from the experience of others.

“We were exploring the various ways that we could help to bridge this transition in the workforce,” McCarthy said. “We wanted to provide all of our technicians, new and NACS OCTOBER 2024 173

A CLOSER LOOK AT VITA Here’s a direct look at how VITA, Vixxo’s AI tool, can work: A technician, Tom, arrives at a store to address an issue with the coffee brewer. The store manager is eager to get it fixed as it has been down for two hours already. However, Tom is unfamiliar with this particular make/model of coffee equipment. This is a newer machine that came out in the market in the last six months.

To navigate the issue, Tom was able to use VITA: Tom: [Manufacturer make and model] coffee machine is not heating the coffee.

VITA: If the coffee brewer is not heating the coffee, there could be a few potential causes and troubleshooting steps you can take to resolve the issue.

First check the heating system components, including the heater tank, thermistors, and control board. Ensure that they are all functioning properly and connected correctly.

Next, inspect the dispensing system components, such as the squeeze valve, dispense valve, flow control, control board, and user interface. Make sure that they are all in proper working order. s VITA gives written instructions, it also provides a diaA gram of the equipment.

Tom: How do I check the heating system components?

VITA: To check the heating system components of the coffee brewer, you can follow these steps: 1. S tart by inspecting the heating system components, including the heater tank, thermistors and control board.

2. Ensure that they are all functioning properly and connected correctly.

3. Check the heater tank to make sure it is maintaining the water at the preset temperature for brewing 4. V erify that the tank heaters are operational and heating the water as required.

5. U se the thermistors to monitor the temperature and ensure that it is within the desired range.

Tom: What should the temperature range for the coffee be?

VITA: The coffee brewer has a temperature range for the coffee that can be adjusted within certain limits. The default temperature setting is 200° F (93° C). However, the temperature can be adjusted within the range of 175° F (79° C) to 190° F (88° C).

To adjust the temperature, you can remove the lid of the brewer and alter the jumper positions on the control board. The LED behind the control board will flash to indicate set temperature.

With the additional help from VITA, Tom was able to quickly repair the coffee machine—minimizing the downtime for the retailer.

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experienced, with comprehensive support along with training for incoming employees.”

As a result, Vixxo built an AI solution that incorporates decades of work order history, asset information and experience to create a tool that technicians can interact with to resolve issues faster. The new tool is called VITA: Vixxo Intelligent Tech Assistant. “VITA is the first virtual assistant of its kind in the industry,” Hunnicutt said. “We also plan to offer it to customers for use with their own technician teams. Additionally, store managers can use it to troubleshoot issues, reducing repair costs by avoiding unnecessary service calls.”

VITA, powered by Vixxo’s AI, provides technicians with instant information in the field, offering real-time guidance, troubleshooting and feedback. “Our virtual assistant is built to put the right information into the hands of the technician, provide information on parts and avoid ordering the wrong parts. With that, it reduces overall equipment downtime and improves first time fix rate.”

“This is a good tool and it provides useful responses. It is definitely a quick resource in the field, especially when other techs are busy or the manufacturer tech support is behind” shared Jack Buda, a food and beverage technician at Vixxo. Buda has worked in the service industry as a tech for seven years and has seen first-hand the challenges of not having the right information at the right time.

To avoid some of the pitfalls associated with early AI systems—such as generating incorrect or nonsensical answers—VITA operates in a closed, supervised environment.

The system contains over 20,000 pieces of content, and Vixxo continuously updates it to ensure the knowledge base remains current.

McCarthy noted that VITA is currently available for Vixxo technicians, but the company has plans to expand the solution to c-stores soon. “C-store operators have been sharing the constant need to increase operational efficiency and lower costs and we’re having active conversations with them on the potential of VITA.” If you are interested in learning more, you can be part of the first look team by signing up at https://www.vixxo.com/facilities_ai.

Leah Ash is an editor/writer at NACS. She can be reached at lash@convenience.org.

Loyalty Means Business Returning customers create 80% of C-store future revenue Top Store Opportunities to Attract and Retain Customers: Functioning Equipment Breakfast/Coffee Programs Remodel/Signage Hot Foods

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REVVIN C-stores are uniquely positioned to utilize retail media networks, which can drive sales and reinforce brand loyalty.

BY JOE BEETON

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Getty Images/Scharfsinn86

NG

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etail media—digital displays at the gas pump and in the store—and retail media networks (RMNs)—which incorporate other touchpoints, such as social media, along with a data-heavy approach to advertising—are redefining the c-store experience. Although scale is an advantage, retail media networks aren’t just for the big players. Small operators can join retail media network pools or take inspiration from the most developed operators and implement their own version, picking and choosing whatever elements work for them.

“There’s an approximately 100-store convenience chain that’s doing a version of a retail media network quite well,” said Art Sebastian, CEO of convenience advisory firm NexChapter and former VP of digital shopping and e-commerce at Casey’s. “I even know of a chain with stores numbering in the single digits whose version of a retail media network is, surprisingly, punching above its weight.”

“Retail media is exploding across all of retailing,” added Sebastian, “Across the 30 [CPG] brands I spoke with for a recent consulting project, retail media was a top priority for them.”

Retail giants like Amazon lead the way with the majority share of the some $56.5 billion projected to be spent on retail media in the United States this year alone, according to Coresight Research. But convenience retailers have stepped up to implement or adopt retail media networks in major ways in recent years, with Casey’s, Wawa and 7-Eleven being some of the early adopters driving the market. The vast volume of data collected from their loyalty programs and expansive physical footprints make ad placement across their networks attractive to advertisers.

C-STORE’S UNIQUE VALUE FOR RMN

“RETAIL MEDIA IS EXPLODING ACROSS ALL OF RETAILING.”

Though retail media networks originally took off among big box retailers like Walmart and Kroger, c-stores are particularly well-positioned to establish retail media networks and attract ad spend.

For one, c-stores offer the closest potential distance from ad impression to transaction, Sebastian said. Out of all types of retail, “C-store shoppers are the most open to impulse purchases and receptiveness to inspiration during their visits,” explained Amber Roberts, the partnership director of Threefold, a retail media network specialist in the United States and UK. In fact, she noted, an NCSolutions survey found that 71% of shoppers discover new products and brands in convenience stores.

Since stores have small footprints, customers are not only unlikely to miss a digital sign in a store, Roberts continued, but the sign will likely play a role in decision-making while viewing it.

Frequency of visits, which is higher among c-store customers than almost any other category of retail, also means that users are subject to repeat ads. “According to data Threefold collects via our proprietary Plan-Apps technology, we know that it typically takes three to five interactions to drive a shopper’s purchase, meaning convenience has the opportunity to achieve this in a shorter time frame than, say, grocery,” said Roberts.

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HOW TO BUILD IT

Whether you are building your own retail media network, adopting and integrating one from a provider or looking for inspiration and ideas, experts said there are four main components of an RMN to consider: 1. Collecting customer data 2. Unique and engaging ad inventory 3. Touchpoints, both in the store and at the pump 4. Strategy

COLLECTING CUSTOMER DATA

Getty Images/VTT Studio

Data is the cornerstone of RMNs, and first-party data from loyalty programs is a good place to start, sources agreed. Whereas the Walmart’s of the retail world rely heavily

on e-commerce and online shopping data to inform a retail media network strategy, explained John Mercer, head of global research for Coresight Research, c-stores traditionally represent a “black hole” of data considering the limitations of tracking individual in-store purchases—but loyalty programs help retailers gather this critical data.

“First and foremost, retailers need to focus on building their addressable audience through their loyalty programs,” said Patrick Raycroft, CEO and co-founder of Axonet, which aggregates first-party c-store data with media touchpoints to form aggregated retail media networks. “Loyalty programs help retailers better understand their audience so they can then improve value exchange through meaningful offers and content.”

As much data as possible should be gathered from opted-in users, and then unified to paint a complete picture. “Build your first-party data and make sure it’s organized, enriched and unified. [Retailers] tell us their transactions, their pump interactions, their website interactions, their social media activity and their call center activity,” Raycroft continued. “We then need to unify all that.”

Operators can also analyze foot traffic to determine how frequently customers typically enter the store, how they move about it and how long they shop by gathering data from CCTV analysis (which can be aided by AI) and by offering and tracking usage of free in-store Wi-Fi.

“I EVEN KNOW OF A CHAIN WITH STORES NUMBERING IN THE SINGLE DIGITS WHOSE VERSION OF A RETAIL MEDIA NETWORK IS, SURPRISINGLY, PUNCHING ABOVE ITS WEIGHT.” NACS OCTOBER 2024 179

Convenience retail media networks are a bit more sophisticated across the pond. The main reason for that, explained Amber Roberts, the partnership director of Threefold, a retail media network specialist in the United States and UK, is that stores in the UK currently collect more first-party data through loyalty programs.

Ironically, that’s partly thanks to the tighter regulatory environment there. “Stricter data protection laws in the UK have pushed retailers to adopt more robust data management and privacy practices, indirectly improving the quality and reliability of their retail media networks.”

Co-op, Tesco and other British retailers were also early adopters of digital signage in stores compared to their U.S. counterparts, who are still catching up. All around, the UK has a more mature digital advertising ecosystem, Roberts said.

With more digital signs and data to leverage, these retailers are able to personalize ads and target marketing campaigns in ways that many U.S. stores can’t yet do.

Ads that a customer sees online through email marketing or e-commerce experiences are likely to be the same ones they see in a store because the retailer has that level of granular insight into who their customers are.

“Tesco displays targeted advertisements based on time of day, weather conditions and customer demographics,” Roberts said. “These screens are part of Tesco’s wider RMN strategy, integrating with their loyalty program data to deliver highly relevant ads.”

UK retailers also lean more on technology partnerships for their retail media strategies than those in the United States have so far, according to Roberts. This includes using artificial intelligence and other types of advanced analytics programs. “Asda has established partnerships with SMG, using Plan-Apps, to enhance its in-store advertising capabilities,” Roberts said. “Using data analytics, Asda tailors its advertising content to match the shopping habits and preferences of its customers, ensuring higher engagement and conversion rates.”

UNIQUE AND ENGAGING AD INVENTORY The second most important step is to create unique advertising inventory, Sebastian said.

The main goal of an RMN is to offer an omnichannel platform for other companies to advertise to your customers. But it’s also crucial for retailers to own and control that inventory and to ensure their own ad placements factor in, Sebastian said.

“Retailers will lean on providers to monetize their ad inventory, but if they don’t own and control their ad inventory, they will struggle to monetize effectively,” Raycroft said.

Sebastian pointed to retailers that have superb ad inventory and integrate it well into their RMNs, citing Casey’s, which excels at its mobile app advertisements for its pizza business; Wawa, which makes ads for its hoagies a big part of its in-store digital kiosk displays; and a client of Sebastian’s who he said has done an amazing job with its YouTube channel despite not being a huge player. “You have to have that [ad] inventory, and you have to make it unique and interesting.”

TOUCHPOINTS Where to place ads is the next-most important factor in an RMN strategy. Marketers are drawn to RMNs because their ads can be placed across multiple touchpoints along the entire journey of a user: from online and in-app activity to fuel pump screens, to signs

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Getty Images/AlexandrBognat

INTERNATIONAL INSIGHTS

INSIDE THE STORE, DIGITAL SIGNAGE IS THE MOST IM­PORTANT, AND PERHAPS MOST OBVIOUS, COMPONENT OF AN RMN.

in the forecourt, to the locations in stores where users are most likely to decide to make a purchase and more.

7-Eleven focuses heavily on social media to target Gen Z consumers. “Our organic social channels are focused on engagement and follower growth, specifically tapping into the Gen Z audience,” Mario Mijares, 7-Eleven’s VP of customer insights, loyalty and personalization, told NACS. “By connecting on the social media channels they’re most comfortable with, we can create a consistent message that’s echoed in our advertising campaigns, in our 7Rewards and Speedy Rewards apps and in our at-the-pump and in-store messaging.”

And all of those touchpoints must present a unified message. “As a user, what I saw at the fuel pump should complement what I saw in the email I got yesterday and then what I see in the menu bar,” Sebastian said.

“It’s that 360-degree messaging that makes an RMN so powerful in influencing me to make a purchase.”

At the Pump But what about the customers who never step foot in the store?

At-the-pump advertising offers a unique opportunity to target consumers who are typically a captive audience with few distractions for a few minutes while they fill up, Roberts said. And since everyone from business trav-

“THERE’S A PATH FORWARD FOR EVERY RETAILER.” 182 OCTOBER 2024 convenience.org

elers to high-school students need to get fuel, the demographic reach at the pump is broad.

“I’m a huge fan of unlocking the fuel pump screens to drive inside sales,” Sebastian said.

Rather than just pushing ads about the items in store, extensive A/B tests Sebastian has been a part of have indicated that it’s better for pump screens to include a blend of engaging content such as local news, weather, sports content and other regional-specific programming. He also said retailers should incorporate messaging about their company itself “to tell customers who you are and drive brand love and affinity,” which is more likely to get customers to return when they do need something inside.

Since some fuel customers still won’t enter the store, not every advertisement needs to be related to the in-store offer. If it’s feasible, integrate a wide variety of non-supplier brands’ advertising into the retail media network strategy as well, Roberts advised. The pump is a good place to reach drivers with messaging from tangential brands such as insurance companies offering discounts and automotive service providers reminding drivers to take care of their vehicles.

Inside the Store Inside the store, digital signage is the most important, and perhaps most obvious, component of an RMN. But where, exactly, should digital signage be placed? “With smaller-scale stores, it can be easier to track a shopper’s journey from entry to exit, and with that, know when and how to best reach them,” Roberts said.

In-store radio can be another link in the RMN chain, blending music with radio ads while the customer shops. The companies that operate these in-store radio stations can integrate them with a broader RMN, Sebastian explained. 7-Eleven is a leader in the radio niche with Gulp Radio, an in-store radio network in nearly 2,000 7-Eleven and Speedway stores, according to 7-Eleven’s Mijares.

“Gulp Radio will operate across our entire footprint by 2025 and at that time will be the largest radio network in the United States.”

Regardless of how many touchpoints you put in place, they all need to work in harmony with one another, Raycroft stressed. “Retailers need to focus on building the right touchpoints at their stores that deliver meaningful

Getty Images/cherezoff

“IT’S THAT 360-DEGREE MESSAGING THAT MAKES AN RMN SO POWERFUL IN INFLUENCING ME TO MAKE A PURCHASE.”

“C-STORE SHOPPERS ARE THE MOST OPEN TO IMPULSE PURCHASES AND RECEPTIVENESS TO INSPIRATION DURING THEIR VISITS.” outcomes for advertisers,” he said. “But retailers also need the right technology.

If a digital sign requires manual content management rather than being a part of a network of signs and ads that are managed centrally, then it doesn’t meet the functional needs of an RMN.” Retailers need rich first-party customer data, so that they aren’t sending a personalized offer through their loyalty app for one energy drink brand to someone who exclusively drinks another, Sebastian said.

Conversely, you can’t personalize in-store signage, such as a menu board, for each customer, he continued. “However, a good RMN has a strategy in place for ‘collision management,’” he said. “You don’t want Red Bull on the fuel pump screen and Monster on the menu board. You have to have consistency across all your platforms.”

STRATEGY Lastly, a 360-degree, comprehensive strategy across the entire network is crucial. “Building a retail media network isn’t about just grabbing dollars,” Sebastian said. “It’s about creating a seamless experience for your customer to help the CPGs see the return on investment on their ad spend. If they see return, they’ll invest more. If they don’t, they’re going to pare it back.”

“Being able to correlate what media was out in the world with the actual sales of the product in question, or ‘attribution,’ and ‘closed loop measurement’ is key,” Sebastian continued. “If we’re promoting Red Bull at the pump and on the menu board, are we seeing a spike in Red Bull sales versus when we just promoted it at one or the other? A good RMN [strategy] involves running A/B tests to start to deduce a 5% lift here or a 10% lift there, and then you start breaking it down further to ask, ‘Is that lift driven by existing customers buying more frequently or buying more per trip? Or did we actually acquire new customers into this category?’”

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To paint a picture, he said, stores with sophisticated RMNs know that User 817890 was exposed to X, Y and Z ad impressions and they then purchased products from those suppliers within a seven-day window, for example.

RMN AGGREGATORS

To gather and optimize data into useful ad spend decisions, the network must be massive.

“Media buyers have stringent requirements that retail media networks must meet in order for them to spend on RMNs,” Raycroft noted.

“The size of unique, addressable audience— with estimates at six to 11 million unique, addressable, opted-in members—is one key factor, and a distribution of that audience across a national footprint is important too. Because of the fragmentation in the U.S. c-store market, all but the largest of c-store chains cannot meet these requirements.”

For that reason, there’s a growing—albeit slowly—space for RMN aggregators that can help smaller store chains utilize a network Sebastian explained. “If you’re a retailer, you can join an aggregated network where advertisers are already spending, but you have to participate in revenue share and you lose control.”

Aggregation is not limited to just smaller chains, though, Raycroft said. Volume of data is a critical challenge for the vast majority of convenience retailers.

Despite challenges, “There’s a path forward for every retailer,” Sebastian concluded. “It doesn’t matter your size. Every c-store retailer can participate in this space, and I think they should.”

Raycroft concurred. “We don’t think there’s a do-nothing option for c-stores. Retail media is changing retail economics. CPG brands are changing the way they spend money—shifting ad spend to performant, measurable media over traditional, analog media.”

Joe Beeton is a contributing writer for NACS. His writing and editing career has focused on real estate and development with an emphasis on retail.

Please contact Peter Olbrys at 630.432.3329 or polbrys@tymail.com about bringing Ty into your locations.

186 OCTOBER 2024 convenience.org

Value Customers are increasingly cost-conscious, but value is more than a price point.

C

BY PAT PAPE onsumers are weary of inflation, and foodservice operators are competing to drive traffic with discounted meal deals. This is most evident in the realm of QSRs. This summer, McDonald’s reported that net income for the June quarter was down 12% from the previous year. With the average price of a Big Mac at $5.29, up 21% from 2019, and a McNuggets meal at $9.19, up 28% over the same period, the burger giant rolled out an LTO of four bundled items for $5. Other QSRs are taking similar steps.

NACS OCTOBER 2024 187

Consumers are hitting a tipping point and are

calling out brands for shrinkflation.”

Warren Buffet once said, “Price is what you pay; value is what you get.” Katie Thomas, lead at the Kearney Consumer Institute, a global think tank, agrees. “Value is a fair price. Not a low price,” said Thomas. “‘Value’ has taken on the meaning of ‘cheap.’ But value should be the right price, not the cheapest price.”

Author’s note: An unsolicited testimonial that came up during the interview.

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PRICE VS. VALUE While the merit of deep discounting is debatable, most QSR, fast casual or c-store operators offer some type of meal deal. Kwik Trip, based in Wisconsin, features daily specials on its branded Hot Spot menu.

“Our guests know the daily specials and seek us out for them,” said Paul Servais, vice president of foodservice for Kwik Trip. “Monday is burritos, Tuesday is rib sandwiches and grilled cheese and Wednesday rotates between cheeseburgers, chicken sandwiches, rib sandwiches and pizza slices.

Thursday is quarter-pound burgers and spicy chicken sandwiches; Friday is fish sandwiches, and weekends are hot dogs and brats. There’s always a snack item and a bakery treat on sale.”

But Kwik Trip has more to offer than a generous selection of well-priced foods.

Robert Byrne, senior director of consumer research at Technomic, lives in Chicago but frequently travels to Wisconsin where his son attends college. He called Kwik Trip a “powerful foodservice brand.”

“When I go to Kwik Trip, I shop the hot food options and also get the drink I want— the bottle or fountain—or bottled water for the road, and I can get one of their dippers or glazers,” he said “I’m not limited by the options at a QSR. At the c-store, my options are high value and its one-stop shopping.”

BEYOND LOW PRICES In today’s busy world, people are experiencing what psychologist Dr. Mark Travers describes as “time poverty.” Time-poor individuals feel rushed or pressured, often at the expense of activities they would like to be able to participate in.

“We’ve noticed in our data sets from pre-pandemic to today that there is a significant increase in consumers who feel time-starved,” said Technomic’s Byrne. “We see increases in consumers saying, ‘I almost never have time to stop and enjoy a meal’ and ‘I frequently have to eat meals on the run.’

These are needs that c-stores are perfectly positioned to meet.”

But convenience stores provide value beyond the basics.

At The Market by Tiger stores in central Virginia, “We strive to run sparkling clean stores that are well-stocked and staffed with amazing people that are well-trained and have a passion for excellent customer service,” said Maurice Lamarche, retail director. “We are able to deliver an elevated definition of value. Our entire retail staff is able to visit our stores monthly, and we host Market Rewards gas sales where we staff the pumps, giving deep fuel discounts, free food and fun branded swag.”

At Ozarks TravelCenter in Missouri, “We take pride in giving great customer service,” said Bryan Davis, director of foodservice.

“And we are proud of our clean restrooms and stores.”

The chain’s daily food specials at a lowerthan-menu cost run on three-week rotations.

They’re carefully tracked and replaced if sales slow. “I’m always looking for new items that customers will get excited about,” Davis said.

There’s nothing better than getting a

‘high five’ from customers.”

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REWARDS ARE VALUE Loyalty programs are another way to give shoppers more value for their buck. According to the EY Consumer Index, 49% of U.S. shoppers say they’re willing to download a brand’s loyalty app just to receive discounts and exclusive deals.

At GetGo Cafe & Market, Giant Eagle’s c-store brand which was recently acquired by Alimentation Couche-Tard, loyalty members receive “great prices, with regular promotions and discounts in partnership with our vendors,” said Brandon Daniels, senior manager of public relations and communications at Giant Eagle.

The chain’s myPerks loyalty platform uses personalized architecture to present individualized offers while interconnecting all Giant Eagle brands, including GetGo, the supermarkets, the pharmacy and WetGo car wash.

“Guests use myPerks to earn rewards on purchases across our brands, which are redeemed in the form of dollars-off or percent-off purchases up to 20% off a full grocery shop, or cent-per-gallon discounts on fuel, up to a free tank of gas,” said Daniels.

“The more you shop with the Giant Eagle family, the more you save.”

Pennsylvania-based Rutter’s has enjoyed enthusiastic consumer response to Rutter’s Rewards, a loyalty program that offers discounts on fuel and merchandise. “But we continuously evaluate the effectiveness [of those offers],” said Philip Santini, senior director of advertising and food service for Rutter’s.

“Our commitment to listening and adapting ensures we provide the most relevant and valued experiences,” he said. “That lets us focus on offerings that resonate with our customers while remaining agile in our approach.”

As a bonus, loyalty programs collect information about shopping behaviors that help retailers plan future offers.

“We measure customer perception by tracking the number of guests who redeem deals offered through our myRewards Plus app and monitoring feedback on our social media platforms,” said Ed Houk, director of food and beverage at Tennessee-based Pilot Travel Centers. “Some of our most popular promotions include free food or beverage items to celebrate holidays and events, such as a free cold brew on National Cold Brew Day or free slice of pizza for military appreciation.”

Texas-based 7-Eleven has created the “Brainfreeze Collective,” a proprietary community of 270, 000-plus shoppers that provides customer feedback.

“We work with these customers to conduct all manner of research, both quantitative and qualitative, discussions, focus groups and in-store missions,” said Jasmeet Singh, senior vice president of merchandise, center store and services, at 7-Eleven. The chain also uses C-Shopper, a data insights and analytics platform, to better understand customer purchase and behavior data.

At The Market by Tiger, the focus is on loyalty metrics, including the market penetration rate.

“We thrive on repeat and referral business, and we look at sales. Continued growth across all of our retail and gourmet-to-go offerings means we’re a sustainable, healthy brand,” said Lamarche. “We’re avid readers of Google reviews, and there’s nothing better than getting a ‘high five’ from customers. And our managers have been known to pull up a stool and talk to customers over a cup of coffee.”

Casey’s management utilizes a tracking tool to determine brand strength and understand consumer thinking. “Our tracker shows that Casey’s provides value in the pizza space, more so than other big pizza brands,” said Carrie Stojack, vice president of brand and strategic insights for the Iowa-based chain.

“Our delicious, handmade pizza leans into abundance, with fresh ingredients offering quality and value. While families are eating out less, our guests continue to come back to Casey’s for their pizza night order.”

Plus, the Casey’s team monitors social media. “Consumers are hitting a tipping point and are calling out brands for shrinkflation, backing down on quality and pulling a baitand-switch on pricing,” Stojack added.

PRIVATE LABEL VALUE Many shoppers seek value via private-label products. In the midst of inflation, McKinsey & Co. research reports that 36% of consumers plan to purchase private-label products more frequently, and 60% believe private brands offer equal or better quality than name brands.

With more than 820 7-Select branded products, 7-Eleven strives to deliver both quality and value.

“We also look at how we can link CPG products to our proprietary food, beverage and private brands to boost value,” said Singh.

“When we create a bundle—like our recent two pizza slices plus a 20-ounce branded soft drink for one low price—we’re well on our way to creating a perception of value.”

Casey’s offers private-label products ranging from ice cream and snacks to packaged beverages.

“They provide quality at or better than national brands, making them the best, more affordable choice,” said Stojack. “Plus, the ease and convenience of shopping at Casey’s positively impact the value equation—time is money.”

PLANNING EQUALS VALUE Meticulous promotion development and scheduling help retailers successfully execute value offers.

“Our approach to determining future value offerings is collaborative and ensures constant communication within our team, utilizing weekly, biweekly and monthly

C-stores already have

QSRs beat on price.”

192 OCTOBER 2024 convenience.org

meetings, plus informal discussions for idea exchanges,” said Emma Vodanovic, marketing manager for Cliff’s Local Market in central New York.

“For foodservice offerings, such as LTOs, we gauge customer perceptions of our values through active community engagement and strategic partnerships with local businesses,” she said. “Customers appreciate our efforts to source and promote local products, enhancing our brand identity as a community-focused company.”

Cliff’s communicates its offers through various channels, including in-store signage, monthly coupons, targeted digital advertisements on social media and email platforms and in a widely circulated local magazine.

At Ozarks TravelCenter, “Teams meet monthly to discuss specials and create new ones,” said Davis. “These items aren’t on the regular menu but are comprised of items we already purchase. They must sell over 30 items a day to stay in the rotation.”

Pilot’s in-store promotions are determined well in advance. “We continually monitor trends and events to identify opportunities,” Houk said. “By being responsive to the news cycle and current trends, we ensure that promotions remain relevant and appealing to guests.”

Most importantly, value means tasting good.

“When we asked consumers, ‘When you think about quality versus prices, what are you looking for?,’ 33% said, ‘I look for the lowest priced product’ and 48% said, ‘I look for a mix of quality and price,’” said Thomas.

“Customers don’t want to lose quality in favor of price. They don’t want something that’s cheap but tastes bad. If it’s a little more expensive, that may be okay, and they’ll find somewhere else to save.”

“In the convenience space, I expect to see increased focus on the quality of the offering,” said Byrne. “C-stores already have QSRs beat on price, but if they continue to hammer home the message about quality, the flavor, the taste and what makes their offerings as good—if not better—than what QSRs offer, that’s a winning formula.”

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.

Getty Images/Giedrius Akelis

Magnar Møkkelgård is the NACS relationship partner based in Norway.

194 OCTOBER 2024 convenience.org

THE LATEST ON

NORWAY’S EV EXPLOSION What North American retailers can learn from the leading country’s prolific EV adoption.

BY MAGNAR MØKKELGÅRD

F

or several years now, Norway has been leading the world in electric vehicle (EV) development and charging. In the August 2023 issue of NACS Magazine, I talked about the drivers behind why Norway is leading the charge and how European retailers are tackling the rapid consumer adoption of electric vehicles (see “EV Observations From Norway”). That’s great for Norway, but you may be asking: How relevant is this for my business in the United States?

THE CURRENT SITUATION As of June 2024, here’s how the situation in Norway stands: • 85% of all new passenger cars sold are pure electric.

• On a national basis, nearly 30% of the passenger cars on the road are pure electric, and almost 40% around the biggest cities.

• Many of the advantages for EV owners that the government originally introduced to boost the adoption of EVs have been taken away. The bus and taxi lanes that EVs could use have gradually been closed, and road tolls are no longer free, though are still cheaper than for other cars.

• Almost 80% of all charging still takes place at home, with 10% at work and the last 10% is shared between utility owned charging companies, parking garages, gas stations and other retail and fast-food chains.

The development in Norway has been and will be unique and is likely not representative for the development in most other countries.

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NORWAY IS A UNIQUE CASE The development in Norway has been and will be unique and is likely not representative for the development in most other countries.

That’s partly because of the common political goal that all new cars in 2025 be pure electric, partly because of the unique incentives that the government put in place and partly because of the many initiatives to build charging networks. However, it should also be mentioned that this development started before the bigger and more exciting car models came on the market around five years ago and made the EV a family car, not just a car that

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was used to commute. In markets where EV development started later, these improved models have been one of the key reasons to own an EV. THE HARD LESSONS Even though Norway is a distinct example, some basic learnings will, to a degree, be relevant for most markets: • For the gas station industry as a whole, income from charging will not compensate for the loss of income from gas sales.

Initially margins for charging may be high, but as competition increases these margins will also come under pressure.

• Home charging will be a substantial threat to the gas station business, but not to the same degree as in Norway, where 80% of charging takes place at home. Other players such as parking garages, Tesla Supercharger parks, grocery stores and fast-food chains will be a strong competitor of gas stations in the future.

• Flash chargers and fast chargers are now the norm. Even though charging has become faster, cars have also become bigger and have a higher battery capacity, so charging still takes time.

• Tomorrow’s winners in the charging game will be those who can provide the customer with a meaningful way to spend the time it takes to charge, usually 20 to 40 minutes.

• To be a winner you also need to have enough chargers and chargers that are fast enough. The key problem for EV owners is finding chargers during peak periods, especially public holidays. The customer needs to be confident that there are chargers available and that they work. Simple payment solutions, visible prices, canopies, etc. are also important.

• EV customers plan in a different way than fuel customers. They charge when they can and try to avoid postponing the charging until they have to. They tend to top up when possible, rather than charging up to 100% battery capacity.

• Charging or topping up the car may not be the reason customers visit your site. It may instead be something that the EV owners 198 OCTOBER 2024 convenience.org

The more reasons the customer has to visit the site, the more attractive it will be. do while they get their lunch, do their shopping or stop the car to go through their emails. A food offer may be the key reason to choose your site, but without providing an opportunity to charge, customers will find another place to eat. The conversion

• N eighborhoods where the possibility to

charge at home are scarce will also be good locations, albeit locations that are not so dependent on the food offer.

• Unfortunately, this also means that many locations that are good as gas locations today in Norway will lose their relevance in the future. Even with the high EV penetration in Norway, few gas stations have been closed so far. Although some of the players aim to be “the last man standing,” there is little doubt that many sites will be closed in the years to come. This may be unfortunate for smaller communities that rely on having one or two gas stations.

• Which stations will close will also depend on the alternative values of each site. The current players, when reviewing their portfolio of locations, may be quite surprised by the alternative value of some of their locations.

rate of shopping to charging may be higher than the traditional conversion rate from pump to store.

• The role of the convenience store will become even more important, as will the attractiveness of the whole site. The more reasons the customer has to visit the site, the more attractive it will be.

• There seem to be some clear characteristics of successful charging locations that stores can implement: • L ocations along highways that provide a good convenience offer and provide the EV traveler the opportunity to top up to get to where they are going.

• F or people who work from their cars (salespeople, tradesmen, etc.), sites where they can charge while they eat, shop or perform other tasks will be an essential service in the future.

TOMORROW’S EV HUB Some years ago, I visited the EG Group in England. At the time, they had had great success rebuilding older gas station sites. When asked what their key strategy was, the CEO said: “We just add stickiness to the places.”

In other words, it increased the number of reasons to visit by adding new services such as pharmacies, grocery stores, more exciting fast-food outlets and more. The concept of adding stickiness is also definitely relevant for the energy stations of the future.

In Norway, gas station chains are trying out new formats, especially along highways where people have to rest and top off to get to their destination.

Recently, Insight Research and Vontier launched a competition for “the Best EV Hub in the World 2024.” The winner was Able, a hub outside Mandal in southern Norway. The main operator of the site is DCC through its subsidiary Certas Norway AS, which is also the owner and operator of all Esso forecourts in Norway.

The site opened in March 2023 along a new stretch of highway in an area where many Norwegians spend their summer holidays. The size of the location is approxiNACS OCTOBER 2024 199

mately 110,000 square feet. The EV chargers are placed in the center of the site, and are covered by a canopy with the gas and diesel pumps a little further away from the other services. The commercial and passenger vehicle flows have also been separated. Among the services, there is a big Deli de Luca convenience store, a McDonald’s restaurant with a McCafé, a fully automated carwash, outdoor seating, free Wi-Fi, good restroom facilities, a playground for kids and a dog walking area.

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PRACTICAL UPGRADES The newer and bigger sites are, of course, interesting and exciting. However, the way retailers have updated their current locations may offer even more relevant examples for others to emulate. The key upgrades have been: • To provide more eating inside and outside to make spending time in the store more attractive.

• To sharpen the food offer.

• To actively use the chains’ loyalty system to drive customer traffic.

• To provide new and reliable charging ports on the premises, in addition to replacing old pumps with chargers whenever feasible.

• Retailers building their own charging network instead of having utility owned charging companies as the provider of charging services at the station.

When discussing the survival of gas stations in an EV environment at a recent NACS event, an attendee made the following comment: “We need to have an offer at the locations that is so attractive that it will work even without gas or charging.” Quite an ambition, but a solid goal for the future development of the sites that form the key assets of most retailers.

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SCANNING

FOR THE BARCODE EVOLUTION Retailers should start laying the groundwork now for Sunrise 2027’s transition to 2D barcodes. Here’s where to start.

BY JOE BEETON 202 OCTOBER 2024 convenience.org

Getty Images/bluecinema

THE HORIZON TAKE STEPS TODAY TO PREPARE

Brought to you by GS1 US.

T

he most sweeping change to the use of barcodes since the technology’s inception over 50 years ago is right around the corner. If you’re already aware that Sunrise 2027 will usher in a new era of scanning where sales will be transacted using two-dimensional (2D) barcodes on packaged goods—instead of the current one-dimensional lines we’re all used to—then you’re right where you need to be. If that’s news, then “Check It Out: Barcodes Enter the Next Dimension” in the September issue of NACS Magazine is essential reading.

Either way, there’s a lot to be done to prepare for the transition. GS1, the global not-for-profit organization that develops and maintains standards for barcode technology, and GS1 US offer guidance to help retailers and store operators get started today setting up their businesses to accept 2D barcodes at the register three years from now.

“The transition is less about sunsetting traditional 1D barcodes and more about rising to the occasion for 2D barcodes,” said Carrie Wilkie, senior vice president, standards and technology for GS1 US. “The change will come in phases, which you can think of as crawl, walk, run.”

By talking to their solution providers now to understand their current POS capabilities and the timeline needed to execute the transition, retailers that meet the challenge ahead of the curve will reap the myriad benefits 2D barcodes offer—and can differentiate themselves from retailers that lagged behind.

CRAWL, WALK, RUN The basic expectation for Sunrise 2027 is that manufacturers will include QR codes or other types of 2D barcodes on almost all CPGs by the end of 2027, and that retailers will be able to scan that type of code at the register to bring up a price and conduct a transaction.

That’s the “crawl” phase of the transition, Wilkie said. The 1D barcode we’re all familiar with won’t just go away overnight. In fact, most suppliers will likely include both types of barcodes on packaging for a period of time after Sunrise 2027 goes into effect. And there are no penalties associated with missing the deadline.

So, what’s the big deal? And why is time of the essence?

“Consumers have a lot of choices as to where they shop, and they vote on retailers by choosing what matters to them,” Wilkie said.

Capitalizing on the benefits of 2D barcodes will be a great differentiator between you and your competition, she added.

Imagine a customer goes to check out, and upon scanning their carton of dairy coffee creamer, the cashier gets an alert from the POS system that the item is one day beyond its expiration date. The worker can stop the customer from unwittingly walking out with the coffee creamer—and that customer may then value that store over the one down the street.

That’s the type of information that can be contained in the more complex 2D code and falls under the “walk” stage of this game-changing shift in barcode technology.

The “run” phase entails things like using a 2D barcode to identify that a product has been recalled since being placed on shelves, or triggering dynamic pricing so that a product with an imminent expiration date is automatically discounted.

“Benefits such as these enhance the shopper experience, along with providing a store operator with better inventory management,” Wilkie said. “It will reduce shrink and also save employees’ time.”

The move to 2D barcodes as a standard on packaged goods also provides a wealth of more detailed information to consumers about the products they purchase. By scanning the QR code with their phones while shopping, they could see information from the brand, like allergens, more granular detail about ingredients, where the product was sourced and more. A retailer doesn’t need to do anything to pave the way for the benefits customers can experience on their own just by the greater prevalence of QR codes, but having all of that information tied to the store’s POS will generate an ecosystem of greater transparency and create more consumer trust, Wilkie noted.

“There are retailers who are going to want to be faster in offering more advanced use cases to the shopper,” Wilkie said. Some grocery

Carrie Wilkie GS1 US Senior Vice President Standards and Technology

The transition is less about sunsetting traditional 1D barcodes and more about rising to the occasion for 2D barcodes.”

NACS OCTOBER 2024 203

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THE POS SOLUTION For the most part, the change shouldn’t require new equipment. From a hardware perspective, scanning a 2D or QR code should be no problem for many retailers. Old school laser-based scanners are never going to be able to read a 2D barcode, Wilkie noted, but those are extremely rare these days and likely need to be updated regardless. Many independent operators went from the old laser scanner systems straight to the most recent POS technology—which is entirely tablet based— leapfrogging the fixed-mount or handheld optical scanning equipment most commonly used by a majority of c-store chains.

Those systems won’t require equipment upgrades, but that doesn’t mean there isn’t work to be done. Optical scanners use a camera, meaning that just like with a smartphone or tablet, they can read a 2D barcode.

Some retailers already use that capability to scan QR codes on customers’ phones for email- and app-based digital coupons and other loyalty program features. But in many

Getty Images/Westend61

Time is of the essence to have these conversations with your solution providers so that you can plan.”

store chains, c-stores and other fast-moving consumer goods retailers are already experimenting with the technology in a lab environment, Wilkie said, and at least one chain is testing it live at a store that is about to open.

Still, it’s a long and slow race. Wilkie explained how c-store operators can get off the starting block. The very first thing to do, if you haven’t already, she said, is to talk to your solution provider and figure out the specific steps needed to ensure your POS system can accept 2D barcodes.

cases, operators or POS providers disable that function so that the whole system can run faster. Enabling that feature is a fix that a solution provider can help with.

The extra step will be in connecting that 2D scanning capability with the store’s pricing data, Wilkie said, which solution providers could help with on a case-by-case basis per retailer. “Point number one for a retailer to be successful is to work with their solution provider to understand what it will take to get that 2D barcode tied to the price lookup file so that when it’s scanned, it looks at the price associated with it, tracks that as a sale and allows you to make a transaction.”

Most of the major solution providers are well aware of Sunrise 2027, Wilkie continued, and have been working with GS1 US for a number of years to plan for changes they can make to their firmware and software that will allow them to turn on updates from the back end. As a result, the effort involved in the move varies.

For some retailers, the move could be virtually invisible, and they’ll be ready to start scanning 2D barcodes for transactions as soon as the updates are made available by the providers.

For others, who are enabling the more complex use cases or navigating custom systems, it will take much more effort.

“Many of the more advanced use cases, such as creating the logic for the dynamic discounting of items with a short shelf life or stopping a recalled or expired product from selling, are going to take more time and work to connect those capabilities,” Wilkie said.

“So, the sooner you can have those conversations with your solution provider, the better.”

The major solution providers work with a vast array of scanning systems and store chains, Wilkie continued, so the onus is somewhat on retailers to prompt the providers to ensure they’re getting prioritized.

“Time is of the essence to have these conversations with your solution providers so that you can plan,” Wilkie said. “Starting the conversation now doesn’t mean you actually have to do the work now. It means that you have the awareness within your solutions environment to understand what you need to do and what that timeline is going to look like.”

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.

NACS

NACS NACS State of the Industry® Data Archive

Got the right industry data to benchmark ?

The NACS State of the Industry Report® is the convenience and fuel retailing industry’s premier benchmarking tool and its most comprehensive collection of data and trends—and the report is now available through a single, searchable database that gives enterprise access to your company.

The NACS State of the Industry® Data Archive puts up to 10 years’ worth of convenience fuel and retailing industry data at your fingertips, and it’s the only place to access up to a decade of proprietary NACS data.

Want to know more? Schedule a demonstration of the NACS State of the Industry® Data Archive with Chris Rapanick, crapanick@convenience.org.

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NEW FLAVORS

Welch’s Welch’s Zero

Introducing Welch’s Zero Sugar Juices

Welch’s Zero Sugar Juices have 0g of sugar in every serving and 100% Daily Value Vitamin C. Our Zero Sugar Juices offer a crisp and refreshing bold fruit flavor and don’t compromise on taste. 16oz PET is available in Tropical Punch and Strawberry, as well as Multi-serve and 10oz sizes. Farmer Owned, Family Grown; 100% of profits go to Welch’s Family Farmer Owners. For more information, please contact Darren McDonald at DaMcDonald@Welchs.com. Visit us at booth N745 to learn more and try a sample.

NEW FLAVORS

Living Essentials 5-hour ENERGY® Gamer Shots, 5-hour ENERGY® Pre-Workout Sport shots, and FOCUS shots.

Reigniting the Category

Take your Shot with 5-hour ENERGY® Gamer Shots and 5-hour ENERGY® Pre-Workout Sport shots. And try new FOCUS shots.

Introducing exciting new flavors and ground breaking products to captivate new audiences.

• Gamer Shots deliver the ultimate energy for marathon sessions. • Pre-Workout Sports Shots, featuring CitraPeak®, help to maximize your workout. • Focus Shots with Trilogine™ enhance mental clarity and concentration. Discover the power of our latest innovations – don’t miss your shot. Come find us at NACS Show in Booth N1748 Call 866-960-1700 | 5hourEnergy.com/trade. Limit caffeine products to avoid nervousness, sleeplessness, and occasional rapid heartbeat. Individual results may vary. See 5-hourenergy.com for more details. ©2024 Living Essentials Marketing, LLC. All rights reserved.

NACS OCTOBER 2024 207

NEW DESIGN

BIC Lighters BIC Maxi Pocket Lighters and BIC EZ Reach Lighters

Light up your sales with quality and safety.

BIC Lighter’s Maxi Classic, America’s Safest and Longest-Lasting Lighter.

BIC EZ Reach, The Ultimate Lighter for hard-to-reach places.

NEW TO THE INDUSTRY

Big Machine Distillery Spiked Wine Cocktail

NEW! Wine Cocktails in Resealable Rouches!

C-stores have spoken and Big Machine Distillery listened! Introducing the all-new wine-based version of our popular Spiked Vodka Coolers. These high ABV (12.5%), single serve, ready-to-drink, wine-based cocktails are available in eight delicious “all-season” flavors: Espresso Martini, Orange Chocolate Swirl, Chocolate Mint Twist, Cinnamon Caramel Crunch, Luscious Lemon Drop, Mango Margarita, Passion Paradise, & Pina Colada Bliss. Spiked Wine Cocktails will be a huge hit with their C-store-specific display racks that are perfect for both cold boxes and countertops. Spiked Wine Cocktails are delicious non-carbonated, wine-based RTD’s in resealable pouches. Enjoy them chilled as a cocktail, or frozen as a boozy slushy!

Reach us at SET@BigMachineDistillery.com & learn more at www.SpikedCoolers.com.

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NEW TO THE INDUSTRY

C. Cretors and Company High Roller Hot Dog Grill

Cretors Introduces An Easy-to-Clean Roller Grill For Perfect Presentation!

The revolutionary High Roller Hot Dog Grill’s patented tip-up roller rack offers unobstructed access to the entire stainless-steel cooking surface, making cleanup quick and easy. The roller grill rack features removable roller sleeves that are dishwasher and sink safe for thorough cleaning, providing a cleaner and more appetizing product presentation. Accommodating a wide variety of products, including hot dogs, corn dogs, taquitos, grilled wraps, sausages, and more, it provides fresh and diverse options for customers. Save time and boost sales!

Contact Shelly Olesen at 847.616.6901 or visit www.cretors.com. See us at NACS Show, booth #C4430.

NEW TO THE INDUSTRY

BIC DJEEP Pocket Lighters

Ignite Your Passion.

To order visit NEWREQUEST.DJEEP.COM

NACS OCTOBER 2024 209

NEW FLAVORS

Rich Products Our Specialty Treat Shop™ Turtle Cheesecake Mousse Parfait Cups

GRAB AND GO WILD.

Delight on the go. Rich’s Our Specialty Treat Shop perfectly portioned Mousse Parfait Cups offer easily grabbable, irresistible treats for sweet pick-me-ups or daily delights. Fully finished, individually packaged and retail ready with labels attached, Mousse Parfait Cups can be easily stacked and replenished to satisfy shoppers on the go. Try our award-winning Turtle Cheesecake Mousse Parfait Cup for luscious layers of rich chocolate crumb, creamy cheesecake mousse, caramel and crunchy pecans for the perfect blend of sweet and salty in every bite.

NEW TO THE INDUSTRY

Geloso Beverage Group Clubtails Crushers

Try Clubtails Crushers Today!

Clubtails Crushers, at 5% ABV is the Clubtails Cocktail you can Crush! The same beloved Clubtails cocktails at a smoother 5% ABV - for the many consumers chasing the flavors they love in the massive Low ABV segment of the FMB category. The ABV segment of the FMB category is over $2.7 Billion in dollar sales and over 400 Million in unit sales over the last year. Clubtails is the #1 selling FMB cocktail in High ABV! Clubtails Crushers has the strong potential to become the #1 cocktail in Low ABV!

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NEW FLAVORS

Heineken USA Dos Equis Cheladas

Savor the Flavor

As an authentic Mexican beer, Dos Equis® delivers a genuine michelada experience that follows the traditional brewing process. Dos Equis® classic Mexican recipe combines the flavors of tomato, lime, spice and a hint of salt, with the refreshing taste of crisp beer. The New Lineup includes the Original Chelada, Mango, Pineapple and Lime and Salt.

NEW TO THE INDUSTRY

Heineken USA Dos Equis Lager

Introducing the New Dos Equis Lager 32oz Caguama Bottle.

The Import 1 pack 32oz bottle business is growing +37% and TX is the #1 state for this segment. All major players in this space are growing. 50% of 32oz beer Buyers purchase the size more than 2 times and that has grown 15% in the past year. Introducing the Dos Equis Lager 32oz Caguama bottle. Available now in TX and OK only.

Source: Nielsen TX x AOC, Liq, Conv, 2 Nielsen IQ panel Mar 2024.

Website: www.dosequis.com/en-us/ NACS OCTOBER 2024 211

NEW DESIGN

Greenridge Naturals All-Natural Snack Sticks

Snack Smart: All-Natural Meat Sticks for On-the-Go Fuel

Elevate your snack section with Greenridge Naturals’ fresh one-ounce beef and chicken snack sticks. Handcrafted from premium grass-fed beef and antibiotic-free chicken, these hardwood-smoked sticks, available in three flavors, have zero sugar, are lower in sodium, free from MSG, soy, and gluten, with no added nitrates, artificial flavors or colors. Made for health-conscious on-the-go shoppers and perfectly portioned, they cater to the increasing demand for convenient, wholesome snacks. Greenridge Naturals snack sticks are the ideal addition to your snack aisle, keeping customers satisfied and coming back for more. Visit us at NACS Show, booth #C3630 to learn more!

NEW FLAVORS

Johnsonville C-Store Johnsonville® Ultimate Sausages

ADD ULTIMATE FLAVOR TO YOUR ROLLER GRILL

Boost your traffic and sales with new trending flavors from America’s #1 sausage brand*. Johnsonville’s new Ultimate Hot Honey Sausage is perfect for the bold eater, blending spicy cayenne pepper and sweet honey for a flavor that consumers, and operators, love. Johnsonville’s new Ultimate Philly Cheese Sausage is a comfort food classic loaded with red and green bell peppers, onions, and provolone cheese, and tastes just like the real thing—in the convenience of a sausage. Add on-trend flavors that everyone loves to your roller grill! Try them yourself at the NACS Show 2024, booth #C5002. *Circana 1/7/24 212 OCTOBER 2024 convenience.org

HEALTH WELLNESS

KeHE Natural & Organic, Specialty, and Fresh Food Distributor Better-for-You products for Convenience

Natural All-Day Energy

KeHE carries over 8,000 brands of natural, organic, specialty, and fresh products, to satisfy your health-conscious consumers.

KeHE supports your business with merchandising and delivery services.

Email: KariConrad.Convenience@kehe.com for Your Healthy Sales Solutions.

NEW FLAVORS

REIGN Total Body Fuel / Monster Energy Corp.

REIGN Storm

Harness the Power of Great Tasting Clean Energy.

REIGN Storm contains ZERO sugar, just 10 calories, 200mg of plant based caffeine, is packed with B vitamins, Biotin and an immunity support blend containing Zinc, Vitamin A and C. No added preservatives, sodium benzoate or potassium sorbate, artificially sourced flavors or colors, high fructose corn syrup or BS claims. Take your world by Storm!

For more information, please visit reignstorm.com

NACS OCTOBER 2024 213

NEW TO THE INDUSTRY

Northeast DSD Group Inc. The Best You Ever Ate

An All New Line Combining Fun, Innovation, and Flavor!

Our brand is our motto, Bringing you the best you ever ate! Staying on the cutting edge of innovation, we strive to bring our customers and their consumers the best tasting snacks and pastries. With a wide selection of products, and most dietary certifications, our products appeal to all consumers.

At the NACS Show? Stop by and give us a try Booth C3896 or text INFO to (914) 274-1270

NEW TO THE INDUSTRY

The J.M. Smucker Company Uncrustables - Peanut Butter & Grape and Peanut Butter & Strawberry Sandwich

Give ‘Em The Best Part of the Sandwich

Retail’s #1 brand of PB&J, Uncrustables sandwiches are the portable, packable, anytime snackable way to deliver the familiar, yummy tastes your customers love. Salable by individual unit, Uncrustables sandwiches are made easy to stock on shelves and easy to enjoy anytime, anywhere.

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NEW TO THE INDUSTRY

Cream Delta Cream Zero - 20K

Cream Zero: Nicotine-Free, Tobacco-Free Vaporizers

Cream offers a revolutionary way to transition away from smoking. Our vaporizers deliver the satisfaction you crave without any nicotine or tobacco, providing a cleaner, healthier alternative for those looking to quit. Available in six unique flavors, Cream Zero vaporizers offer a smoother experience, allowing you to indulge in the act of vaping without the addictive ingredients. Whether you’re seeking to reduce your nicotine intake or find a healthier alternative, Cream Zero is here to support your journey to a better lifestyle. Make it a better day with Cream. Experience the satisfaction—without the compromise. NO PMTA REQUIRED Contact us at info@creamdelta.com

NEW TO THE INDUSTRY

Max Kick International Inc Kick Nicotine Pouches

Kick: Freedom in Every Pouch!

Break free from traditional tobacco and vaporizers with KICK—the nicotine pouch that’s all about your freedom, your way.

Crafted from premium European ingredients, KICK delivers a clean, discreet, and satisfying experience that fits seamlessly into your lifestyle. With bold flavors, smooth delivery, and a premium nicotine kick, KICK offers the perfect balance of taste and satisfaction. From smooth to strawberry watermelon, there’s a flavor for you. It’s the ideal choice for adults seeking more flavor and the freedom to enjoy nicotine anytime, anywhere. Whether you’re on the go, socializing, or unwinding, KICK is your nicotine—your way.

Available in select stores and online. Ready to experience freedom? Contact us at sales@maxkickusa.com for more information!

NACS OCTOBER 2024 215

NEW TECHNOLOGY

NEW TO THE INDUSTRY

Panoramic Packaging, A Division of Anchor Packaging

David’s Cookies

No-Tip Technology™ Cupcake Containers

Filled Cookie Dough 100/3.35 oz

Sell More, Waste Less

Flavor Combinations Done Right

Want to boost your baked goods bottom line? No-Tip™ Containers protect shelf appeal and keep cupcakes looking fresh longer – holding cupcakes secure, even when the package is turned upside down! No more margin lost to shrink, even when customers turn over the container to check the ingredients. Containers feature a full perimeter seal to double shelf life and Flex Safe™ technology which adds “freeze to fresh” durability so you can merchandise commissary-produced product. For free samples, please visit booth C5123 at NACS Show or contact info@anchorpac.com

David’s Cookies NEW Stuffed Cookie Dough is available in three fan-favorite flavor combinations: Peanut Butter Cookie with Grape Jelly filling, Birthday Cake Sugar Cookie with Vanilla Frosting filling, and our classic Chocolate Chip Cookie with Chocolate Fudge filling. We know you’ll love this new cookie style just as much as you do our other top selling cookie dough offerings. Each dough puck is 3.35 oz and bakes in 14-16 minutes. That’s not too long to wait to taste what is sure to be your new cookie obsession!

NEW FLAVORS

NEW DESIGN

The Vita Coco Company

Trion

Vita Coco Coconut Juice

WonderBar®

Tropical. Flavorful. Refrescante.

Sell More in the Same Space™

Vita Coco coconut juice is a sweet, hydrating drink that’s perfect with a meal, as a workday pick-me-up, or whenever you need a flavorful boost. Enjoy Vita Coco coconut juice in two delicious flavors: Original with Pulp (available now) and Piña Colada (coming soon)!

Gain 20-35% more facings in your candy & salty snack departments at NACS Show Booth #N2369! Trion’s revolutionizing candy & salty snack merchandising with WonderBar®. Easily increases your SKUs within the same retail footprint, improve shopability, increase profits, slash labor costs & reduce shrinkage with one system.

Maximize your retail space and enjoy the profit increase as your product stays consistently fronted in your customer’s view. Trust Trion, the company that’s been proudly manufacturing in the USA since 1965; (800) 444-4665, TrionOnline.com

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HEALTH WELLNESS

NEW TECHNOLOGY

Fiscal Systems

Flash Sales Inc.

TravStar AIR

Z!NGHA – Double Nasal Inhaler

Move More Gallons

Revitalize Your Senses!

Fiscal System’s new platform, TravStar AIR, is designed to help truck stops and convenience stores streamline operations and increase fuel sales. With real-time data insights, optimized inventory management, and seamless integration with existing systems, TravStar AIR enhances efficiency, driving more gallons at the pump. Truck stops and c-stores can expect faster service, better customer experiences, and ultimately, higher profitability. For more information, contact our sales teamf at 800-838-4549 or via email at sales@fis-cal.com.

Experience the power of aromatherapy with Z!NGHA Double Nasal Inhaler. Our unique double-tube design delivers an instant surge of wellness, perfect for those seeking a caffeine or sugar alternative, a nicotine substitute, or just a moment of calm, offering a natural way to refresh, energize, and uplift your mood. Available in versatile flavors, from the invigorating Fruit Collection to the soothing 100% Essential Oils Collection, our mint-based collections cater to every preference. Ideal for gas stations, spas, convenience stores, vape shops, gift shops, and pharmacies. Visit www.zngha.com

NEW FLAVORS

NEW FLAVORS

Frazil

Gurley’s Foods

Café Tango

Sour Rainbow Belts

Café Tango’s New Espresso Flavor

Fun New Flavor!

Elevate your coffee offerings with Café Tango’s latest sensation: Espresso. Crafted by the makers of Frazil, this premium frozen coffee is perfect for coffee lovers who seek bold flavor. With a rich, delicious taste and refreshing texture, our Espresso stands out as a true winner, outperforming industry leaders in blind taste tests. Visit us at the NACS Show, Frazil booth (C4739), and experience the new Espresso flavor for yourself!

Clean & Bright Graphics & Large Window for Product!

Multiple Purchase Preprice = Higher Ring OR Unpriced = Profit Advantage For info on all Gurley’s products call 320-235-0600 or email: Gurleyscommunications@gmail.com Gurley’s Foods, LLC • Box 88 • Willmar, MN 56201 • www.gurleysfoods.com NACS OCTOBER 2024 217

NEW SERVICE

NEW TO THE INDUSTRY

NACS

Trinchero Family Estates

2024 NACS Show Education Session Recordings

Atomic Boss Hard Punch

Access Exclusive NACS Show

LEVEL UP YOUR DRINK GAME

Don’t miss out on exclusive access to over 40 industry-leading education sessions from the 2024 NACS Show! With on-demand recordings, you can immerse yourself in cutting-edge insights and innovative strategies from expert speakers at your convenience. Stay ahead of the curve by reviewing sessions you attended or catch up on those you missed. Elevate your knowledge and skills with dynamic content that will empower you to drive success in the convenience industry. Invest in your professional growth today and purchase education session recordings at nacsshow.com/recordings.

The perfect non-carbonated, alcoholic drink that is as delicious as it is game-changing: a flavorful, high alcohol-content beverage that’s ready to go. Atomic Boss Hard Punch, available in Berry Blast and Tropical Fusion, packs a mouthwatering punch with 12% alcohol by volume, natural flavors and no added sugar. More than three servings per container, one box is all you need to share with your squad or reseal for later.

NACS

NACS My Voices

Your Questions, Our Expertise: Custom Insights On Demand.

Partner with NACS on a custom market research study for rapid customer insights. Get the insights you need, when you need them, backed by NACS expertise.

My Voices: Custom survey up to 15 questions, deployed any time, including NACS analysis and results presentation delivered in just weeks.

My Voices Pulse: Quick read on a specific topic with up to 8 custom questions, available year-round, results delivered within a month.

Please reach out to Jayme Gough, Director, Research and Development for more information. jgough@convenience.org 703.518.4226 218 OCTOBER 2024 convenience.org

NEW DESIGN

NEW TECHNOLOGY

Inline Plastics

Novolex®

Safe-T-Chef® New Flat Lid Options

TamperFlag™ Rigid Containers

Savor the Secure Seal!

NEW Tamper-Evident Containers

Inline Plastics’ new Safe-T-Chef® additions are a game changer for grocers and convenience stores! This groundbreaking polypropylene product line is here to spice up your hot food packaging. Featuring cutting-edge patented tamper protection, these all-clear containers keep your culinary creations secure. Say goodbye to messy leaks and hello to worry-free transportation! Whether meal prepping or sending customers home with leftovers, Safe-T-Chef® has got you covered. Get ready to turn up the heat on food safety– your taste buds (and your customers) will thank you!

Novolex® announces our new tamper-evident TamperFlag™ rigid containers. The TamperFlag is activated in one-step as soon as the lid is closed creating efficiency in your packing operations. When opened, the TamperFlag is visible to alert customers.

These one-piece hinged containers have a smooth lid for clear and convenient labeling.

Available in up to 50% PCR (as requested), these stackable containers eliminate tear strips and the need for shrink bands. Ideal for both wet and dry grab-and-go snacks, the leak resistant design locks in freshness.

NEW TECHNOLOGY

NEW TO THE INDUSTRY

Novolex®

Stateside Brands

Power Prep™ Insulated Wraps & Bags

Surfside Starter Variety 8-Pack

NEW Power Prep™ Wraps & Bags

Fast Growing Spirit RTD Brand

Novolex is expanding our Power Prep collection of wraps and bags for grab-and-go hot sandwiches and other freshly made foods.

Manufactured by Bagcraft®, the Power Prep product line now includes a kraft sheet and a pinch bottom bag. Power Prep is paper laminated to a PET liner using a honeycomb pattern that creates an insulated layer. This multi-layer technology keeps food tasting fresh as it moves from the freezer to thawing and re-heating, and while it’s held for sale under heat.

Surfside Iced Tea + Vodka is made with vodka, real brewed tea, tastes absolutely delicious and has only 100 calories and 0 bubbles. Surfside is the #1 Selling Iced Tea + Vodka Variety 8-Pack SKU for 2024.

Please contact National Accounts Director Bobby to learn more about Surfside: Bobby.B@federaldistilling.com | 571.449.1276 | *Source: NIQ All Outlets L4 weeks ending June 29, 2024 NACS OCTOBER 2024 219

GAS STATION GOURMET

Remodels Rooted in Enhancing Customer Experience Fastime stores highlight classic Southern food and an inviting atmosphere.

BY AL HEBERT

Jigar Patel grew up in the convenience retail business. His first store was an unbranded location “in the middle of nowhere with an apartment upstairs,” the Alabama retailer recalled.

“I’d work it from open to close.”

Now, after purchasing the Fastime brand three years ago, Patel owns five stores, the flagship location of which is in Daphne, Alabama, and he’s about to

Fastime is known for its Southern cuisine, with livers and gizzards, biscuits and fried chicken sandwiches being some of the most popular menu items.

220 OCTOBER 2024 convenience.org

break ground on his sixth in Century, Florida.

When he bought the brand, Patel saw potential in the Fastime fan base and its Southern food. But the stores had a lot of room for improvement, and so Patel embarked on the process of remodeling the stores and upgrading them to high-quality c-stores, starting with his first c-store in Bay Minette and the Daphne location.

The Daphne store “really shined after the renovations,” Patel said. “We gave the store some TLC, made it better and more efficient, and we will rebrand our other stores to Fastime.”

EXECUTING THE VISION Patel’s vision as an owner-operator is to provide the best experience possible to his customers. That experience starts before the customer pulls into the parking lot: “The moment they lay their eyes on the price sign on the road, it has to make them want to pull in,” Patel said.

Additionally, Patel wants customers to see that the forecourt is clean and that the store looks inviting and appealing from the outside. “The inside of the store needs to be well lit and the windows shouldn’t be blocked by signage.

That’s a pet peeve of mine.”

It took a lot of work to make updates to the stores Patel acquired. Around the exterior, Patel updated the price sign to an LED, redid the landscaping, added

Fastime’s owner Jigar Patel, who currently operates five stores in Alabama.

new canopy lights and new pumps with an updated logo, plus upgraded camera systems and the store’s exterior lighting.

“Inside, we redid all the counters, shelving and kitchen appliances and other equipment,” he described. “We made the fountain options available to customers and brought in bean-to-cup machines so people have fresh coffee all day.”

“We tore the kitchen apart down to the studs,” he added. The team also brought in new kitchen equipment and changed menus to monitors.

The restrooms also needed an upgrade, so Patel spruced them up by replacing the sinks and other fixtures.

“If I don’t feel like using the restrooms at my store, then no customer will want to use them,” Patel said. “We clean them every hour and we pride ourselves on having clean restrooms”

Jigar Patel with staff members at the flagship Fastime location in Daphne, Alabama.

FASTIME’S FOODSERVICE More than 40% of Fastime’s sales come from food. “I have a lot of experience on the food side and so I knew foodservice would be profitable if it was done right.

We also knew there would be more opportunity if we could make it even better,” he said.

Patel prefers having his own menu and the flexibility to change up items rather than a branded foodservice program.

“We are known for our livers, gizzards and chicken sandwiches—livers and gizzards are our most popular menu items,” he said. The retailer has also sold about twenty thousand biscuits so far this year, with the chicken biscuit being the top seller followed by the sausage biscuit.

The chicken sandwich is another top seller. “It’s made to order with a chicken breast filet, which makes a 100% difference, though some customers substitute chicken tenders,” said Patel. “But the trick is that we cook them fresh.” Customers can customize their sandwich, but the “All the Way” version has a bun, mayo, lettuce, pickle, onions, breast filet, jalapeños and a slice of cheese.

Patel said the secret to offering good food versus better food “is how clean you keep your food. If you have good quality oil that is clean and filtered, then the food will look good and taste good. We focus on that a lot,” he said.

SOLVING THE STAFFING CHALLENGE Staffing is a major challenge for many retailers.

“We’re all facing the same problem.

I don’t think there’s a book out there that will give you a tailor-made solution for your store—there’s no one solution that fits all my five stores,” Patel said. “I have to be nimble and flexible.”

Fastime tries to set itself apart by offering flexible scheduling, health and dental insurance, and competitive pay.

“When employees are off the clock, we extend the employee discount to them. I don’t see any other way to attract and retain employees. We need people who understand the company’s vision.”

The Patel family has been in the convenience business since the 1980s, and Patel said the family came up with its own training system that he now uses in his stores. “It’s the nitty gritty of operating the equipment, stocking, etc., but the one simple ingredient is we tell our people ‘you treat others as you want to be treated.’”

He also focuses on setting his stores apart from the competition.

“In the sea of c-stores that sell the same items, how do you differentiate yourself from them? To me, customer service is the only thing that will set you apart.”

For Patel, it’s all about people and relationships—for both customers and employees, and those crucial relationships are what builds loyalty to the store.

“We don’t differentiate how people are treated at the stores. Everyone is treated with respect,” he said.

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

NACS OCTOBER 2024 221

CATEGORY CLOSE-UP SALTY SNACKS

Tried and True

Customers continue to depend on c-stores for salty snacks, but also seek new and exciting flavor innovations.

T

he convenience factor of salty snacks is what makes them a c-store’s bread and butter, as if the category is baked into the store’s footprint, said Kelly Weiler, who owns Weiler Convenience Stores with her husband, Wayne. “People like to get in and out quickly while getting their favorite salty snacks.”

But they’re also looking to find innovative new flavors that bring novelty to this staple category.

“Customers have come to rely on salty snacks for its combination of tried-andtrue classic snacks and consistent introduction of new and exciting flavors,” agreed Emma Tainter, NACS research analyst/writer. “In this category, it’s all about finding the perfect balance of core items and innovation.”

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SALTY SALES The salty snacks category has long been a reliable performer for convenience stores. According to the NACS State of the Industry Report® of 2023 Data, the category contributed 4.75% to total in-store sales last year and rose 9.7% in sales to reach $10,331 per store, per month on average. “This was higher than the NACS convenience CSX inflation metric, which means salty snacks experienced true growth as opposed to higher sales dollars due to inflation,” Tainter explained.

Gross profit dollars also jumped 9.5% in 2023 to hit $4,232, up from $3,867 in 2022. The majority of the category’s sales happen in the potato chips (32.9%), other salty snacks (28.4%) and tortilla/ corn chips (12.5%) subcategories.

Getty Images/fcafotodigital

BY SARAH HAMAKER

NACS CSX data also supports the healthy growth salty snacks is experiencing. The category peaked in May 2023 at $7,911 sales per store, per month, and started off 2024 strong—so far this year, monthly sales per store, per month have averaged $7,332.

“In general, salty snacks in convenience stores are doing well, driven by the expanding variety of flavor options that appeal to diverse consumer tastes,” said Diana Salsa, spokesperson for The Wonderful Company. “Additionally, the increasing trend of snacking replacing traditional meals bolsters the demand for convenient, ready-to-eat salty treats.”

Unique Snacks has also seen its salty snacks growing at convenience stores.

“It’s been steady growth year-over-year since 2020,” said Norman Cross, vice president of brand, sales and marketing.

At Weiler Convenience Stores, with three locations in Marshfield, Wisconsin, salty snacks have been a mixed bag in terms of sales. “Some of the salty snacks category have been down, but the healthier salty snacks, like baked chips and popcorn, have been up,” said Weiler.

Salty snacks have been selling well at the Cusseta, Georgia, location of Gas N Go. “We’ve always sold a lot of salty snacks because we have a good number of travelers passing through our store,” said manager Shanna Lewis. Within the category, popcorn has been a top seller at Lewis’ store.

$4,232

The average gross profit dollar contribution of salty snacks per store, per month.

Source: NACS State of the Industry Report® of 2023 Data

Industry Sales

% of In-Store Sales

4.52% 4.75% 2022

2023

Avg. Sales/Store

$9,419 $10,331 2022

2023

Gross Margin %

41.05% 40.97% 2022

2023

Source: NACS State of the Industry Report® of 2023 Data

WHAT’S TRENDING IN SALTY The category’s embrace of the hot and spicy trend has helped with boosting sales. “Consumers are increasingly seeking bold, innovative flavors,” said Salsa. “America’s favorite snack brands are getting spicier as a result.”

“Spicy is doing very well for us because of the influence of our Spanish-speaking community,” Weiler said. “Everyone likes anything spicy in salty snacks.” Her stores stock the NACS OCTOBER 2024 223

CATEGORY CLOSE-UP SALTY SNACKS

Salty Snacks Per Store, Per Month

n 2021

n 2022

n 2023 n 2024

$8,110

$9,000 $8,000 $7,000 $6,000 $5,000 $4,000 JAN

FEB

MAR

APR

MAY

JUN

JUL

AUG

SEP

OCT

NOV

DEC

Source: NACS CSX Convenience Benchmarking Database

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.

People like to get in and out quickly while getting their favorite salty snacks.”

224 OCTOBER 2024 convenience.org

Cheddar Puffzels. “Consumers want to buy snacks that make them feel good and are tasty, so they are looking for these callouts,” he said.

SELLING SALTY Knowing what other categories support salty snacks can bring in more sales, and merchandising salty snacks by the fresh foodservice and packaged beverages usually results in higher sales volume.

“We give them a top spot by the coolers, which are near our deli at one location,” Weiler said. “Many times, customers will grab a sub and soda, along with a bag of chips.”

Whenever the store has new salty snacks, Weiler puts them on a separate display to draw more attention to the product. “We sell a lot more when I do that,” she said. One Weiler’s location recently dedicated an additional four feet to the category to accommodate more salty snacks. “We needed more space at that store because of the increased sales in the category,” she said.

Salsa recommended using promotional signage provided by suppliers to draw even more attention to the category’s offerings. “By leveraging these merchandising strategies, retailers can maximize their salty snack sales effectively,” she said.

Retailers should also consider how customers are consuming salty snacks.

For example, Weiler offers both sin-

Getty Images/Cunaplus_M.Faba

The Power of CSX Data

hot-flavored Takis, and buffalo and habanero versions of other chips.

Unique Snacks’ Cross added, “Whatever gives it more of a kick is selling strong at convenience stores. While the strongest trend tends to be spicy, adding indulgent flavors, like sweet with the salty, is also popular in the category.”

The demand for better-for-you salty snacks “continues to dictate the need for flavorful snacks that consumers can feel good about,” said Salsa. “Our strategy to encourage customers to choose healthier snack options over traditional chips has been effective, particularly by introducing flavors that echo popular chip varieties.”

Cross pointed out the growing number of salty snacks highlighting non-GMO, gluten-free and other tags they consider healthier on packaging, such as Unique Snacks’ new gluten-free, non-GMO Honey Mustard and Aged

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CATEGORY CLOSE-UP SALTY SNACKS

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

Avg. Sales/Store

Avg. GP$/Store

Gross Margin %

2022

2023

2022

2023

2022

2023

2022

2023

Potato Chips

32.4%

32.9%

$3,055

$3,396

$1,125

$1,236

36.81%

36.40%

Other Salty Snacks

27.5%

28.4%

$2,594

$2,939

$1,265

$1,433

48.77%

48.76%

Tortilla/Corn Chips

13.3%

12.5%

$1,256

$1,288

$411

$430

32.74%

33.39%

Nuts/Seeds

8.8%

8.3%

$832

$863

$399

$416

47.91%

48.25%

Pretzels

4.8%

4.7%

$452

$484

$190

$203

41.98%

41.97%

Puffed Cheese

3.6%

3.9%

$340

$402

$106

$122

31.30%

30.36%

Crackers

3.6%

3.6%

$338

$370

$159

$171

46.95%

46.22%

Ready-to-Eat Popcorn

3.2%

3.0%

$298

$315

$106

$112

35.79%

35.68%

Mixed

2.7%

2.7%

$255

$274

$106

$108

41.46%

39.43%

Total

100.0%

100.0%

$9,419

$10,331

$3,867

$4,232

41.05%

40.97%

Salty Snacks

Source: NACS State of the Industry Report ® of 2023 Data

226 OCTOBER 2024 convenience.org

A SALTY OUTLOOK The future of salty snacks in convenience stores looks bright, with continued growth fueled by evolving consumer preferences, innovative product offerings and on-the-go sizes, according

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.

Getty Images/threeart

The increasing trend of snacking replacing traditional meals bolsters the demand for convenient, ready-to-eat salty treats.”

gle-serve and take-home sizes at all of its stores. “Many people like to pop in and grab the larger sizes because they don’t want to stop at a grocery store,” Weiler said.

Adding salty snacks to foodservice specials or promotions can boost sales as well. Gas N Go folds salty snacks into its regular promotions, including twofer and bundling with combo specials.

“Those are popular with customers and do move salty snacks,” Lewis said.

to The Wonderful Company’s Salsa.

“Salty snacks are popular for their quick, satisfying appeal for on-thego consumers seeking delicious and convenient snacks. The variety and accessibility of these snacks cater to diverse tastes and preferences, ensuring broad appeal,” she said.

“Our customers will continue to view convenience stores as the place to get salty snacks,” Lewis pointed out. “Our location along a highway brings in tourists who are looking for something salty, and our locals enjoy the quickness of a convenience store stop rather than getting their chips at a grocery store.”

ADVERTISER INDEX Contact Information

Page

5-hour ENERGY......................................................... 22-23, 207 www.5hourenergy.com Acuity Brands Lighting........................................................ 167 (800) 922-9641 (800) 705-SERV 770-922-9000 www.acuitybrands.com Altria Group Distribution Company...........Inside Front Cover AGDCTradeRelations@Altria.com www.altria.com www.tobaccoissues.com American Style Sunglasses..............................................................181 www.americanstylesunglasses.com Anchor Packaging.......................................................... 59, 216 (800) 467-3900 www.anchorpackaging.com The Bazooka Companies, LLC..........................................................169 www.bazookacandybrands.com

Contact Information

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

Page

Contact Information

Page

Federal Industries, a Standex Co......................................................93 (800) 356-4206 www.federalind.com

Liggett Vector Brands LLC...................................................... 41 (919) 990-3500 www.liggettvectorbrands.com

Fiscal Systems...................................................................... 217 www.fis-cal.com

LUXIIKON INC...................................................................................... 88 www.savereign.com

Flash Sales........................................................................................ 217 (800) 468-0956 www.flashsales.com

Mars Wrigley...........................................................................39 www.mars.com/made-by-mars/mars-wrigley

FLO Services USA Inc..........................................................................32 801-858-0321 877-372-9455 www.flo.com

Matrix Capital Markets Group Inc.........................................131 (667) 217-3316 NY (410) 752-3833 MD (804) 780-0060 VA www.matrixcmg.com

Franke Coffee Systems......................................................... 163 www.franke.com Frazil..................................................................................... 217 www.frazil.com/frazil

McLane Company Inc...................................................... Insert (254) 771-7500 www.mclaneco.com Mike’s Hot Honey................................................................................ 61 info@mikeshothoney.com wholesale@mikeshothoney.com www.mikeshothoney.com

BIC Corporation................................................................... 208 www.us.bic.com/en_us

Rich’s / f’real........................................................................210 (800) 356-7094 www.richsusa.com www.freal.com

Big Machine Distillery...............................................................191, 208 www.bigmachinevodka.com

GALLO......................................................................................77 www.gallo.com

Black Buffalo Inc.................................................................... 91 www.Blackbuffalo.com

Geloso Beverage Group LLC.............................................................210 (585) 247-2310 www.gelosobeveragegroup.com

MOOSOO Corporation........................................................................ 80 www.moosoo.com

Ghirardelli Chocolate Company........................................................67 www.ghirardelli.com

Musco Family Olive Co...................................................................... 143 www.olives.com/milliontrees/about-musco/

Goya Foods, Inc.................................................................................. 19 (201) 348-4900

NACS Convenience Voices................................................................ 218 jgough@convenience.org www.convenience.org/Solutions/Business-Intelligence-DataAnalytics/Convenience-Voices

BIC, DJEEP.......................................................................117, 209 www.djeep.com/en-US Bojangles Restaurants, Inc.............................................................164 www.bojangles.com Buzzballz LLC......................................................................................75 (972) 242-3777 www.buzzballz.com C. Cretors & Company...................................................................... 209 (847) 616-6900 (800) 228-1885 www.cretors.com Calico Brands, Inc.............................................................................. 36 www.calicobrands.com Cash Depot.............................................................................. 13 (800) 776-8834 sales@cdlatm.com www.cdlatm.com Cool New Products Guide........................................................206-219 www.convenience.org/Media/NACS-Magazine/Cool-New-Products

Cheyenne International, Inc.............................................................121 (704) 937-7200 www.cheyenneintl.com The Coca-Cola Company...................................................... 127 1-800-GET-COKE 1-888-348-2404 www.coca-colacompany.com Cookies United.................................................................................225 www.cookiesunited.com Core-Mark International.......................................................119 www.core-mark.com Cornerstone Consulting Engineers & Architectural, Inc................ 197 www.cornerstonenet.com Darrell Lea Brands dba DL Distribution LLC....................................227 www.darrelllea.com David’s Cookies................................................................................ 216 www.davidscookies.com

Greenridge Naturals............................................................ 212 847-434-1803 www.greenridgenaturals.com GS1 US............................................................................................... 205 (937) 435-3870 info@gs1us.org www.gs1us.org GSTV....................................................................................... 95 (888) 581-GSTV www.gstv.com Gurley’s Foods.................................................................................. 217 320-235-0600 www.gurleysfoods.com Heineken USA, Inc.............................................................................211 www.heinekenusa.com Hormel Foods Corporation................................................................27 (800) 523-4635 www.hormelfoods.com Hunt Brothers Pizza...............................................................55 (800) 453-3675 www.huntbrotherspizza.com Inline Plastics Corp........................................................................... 219 (800) 826-5567 (203) 924-5933 www.inlineplastics.com ITG Brands..................................................................35, 79, 137 (866) 328-2485 Domestic US toll free (336) 335-6669 North Carolina www.itgbrands.com

Monster Energy Company............................................103, 213 www.monsterenergy.com

NACS Global Supplier Council Membership................................... 229 www.convenience.org/Membership/Supplier/Global NACS Hunter Club Membership........................................................113 www.convenience.org/Membership/Supplier/HunterClub NACS Industry Advancements, THRIVR.......................................... 197 www.convenience.org/THRIVR NACS Show 2024............................................................................... 231 www.nacsshow.com NACS State of the Industry ® Data Archive..................................... 206 www.convenience.org/Solutions/Store/Products/SOI-DataArchive-Supplier-10-Year NACS Show Education Session Recordings 2024............................ 218 www.nacsshow.com/recordings NACS Show Translation Services...................................................... 111 www.nacsshow.com Northeast DSD Group Inc................................................................. 214 (914) 274-1270 Novolex............................................................................................. 219 (800) 845-6051 www.novolex.com NuVue Foods Inc............................................................................... 135 (800)-498-DELI www.nuvuefoods.com OptiSigns............................................................................................57 www.optisigns.com

The J.M. Smucker Company / Hostess Brands................ 3, 214 www.jmsmucker.com

OWL Services........................................................................201 www.owlservices.com

Johnsonville Sausage Co............................................................97, 212 www.johnsonville.com

Pace-O-Matic......................................................................... 29 (770) 441-9500 www.paceomatic.com

KeHE Distributors Holdings LLC dba KeHE Distributors..... 213 www.kehe.com

DEEL Media.........................................................................................101 www.deelmedia.com (770) 619-1225

Kretek International......................................................................... 49 www.kretek.com

Dover Fueling Solutions......................................................105 www.doverfuelingsolutions.com

Krispy Krunchy Foods LLC...................................................... 71 www.krispykrunchy.com

228 OCTOBER 2024 convenience.org

Mondelez International.........................................................83 www.mondelezinternational.com

Patron Points..........................................................................37 (877) 623-6073 hwww.patronpoints.com PennPak Solutions............................................................................ 34 (610) 850-7223 www.pennpaksolutions.com

Thank you to the NACS Global Supplier Council for their support of the industry’s international activities.

Global Supplier Council Advantage

Membership in the NACS Global Supplier Council (GSC) provides rich and unique benefits to NACS supplier members who conduct business on a global scale in the international convenience and fuel retailing industry.

For more information about becoming a Global Supplier Council member, contact: Bob Hughes | +1 (703) 518-4270 bhughes@convenience.org Leigh Walls | +1 (703) 518-4215 lwalls@convenience.org Member companies as of September 2024

Global Supplier Council Classic

ADVERTISER INDEX Contact Information

Page

Perfetti Van Melle USA, Inc.................................................... 15 (859) 283-1234 www.perfettivanmelleus.com PIM Brands............................................................................. 69 www.pimbrands.com Placon.................................................................................................25 www.placon.com Polar King International Inc.............................................................171 (866) 576-7645 www.polarking.com www.polarleasing.com Portion PadL...................................................................................... 30 (330) 608-5928 www.portionpadl.com Premier Manufacturing............................................................... 5, 149 (636) 537-6800 www.gopremier.com

Contact Information

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

Page

SEB Professional North America............................................11 www.partstown.com/seb-professional Sesh Products US, Inc...................................................................... 157 www.seshproducts.com Sharpline Converting, Inc.................................................................. 21 www.sharpline.com Surfside Iced Tea | Stateside Vodka | Stateside Vodka Soda............. 85, 219 Bobby.B@federaldistilling.com www.store.statesidevodka.com Swedish Match North America LLC (General Snus).............. 17 (800) 367-3677 www.smna.com Swedish Match North America LLC (ZYN).............................33 (800) 367-3677 www.smna.com Swisher International Inc......... 43, 87, 139, Inside Back Cover www.swisher.com

Contact Information

Page

Trion Industries................................................................ 7, 216, Insert (800) 444-4665 www.triononline.com TY INC................................................................................................ 185 www.ty.com Valero Marketing & Supply..................................................8-9 www.valero.com The Vita Coco Company................................................129, 216 (212) 206-0763 www.vitacoco.com Vixxo Corporation............................................................................ 175 (844) 468-4996 www.vixxo.com Wanzl dba Technibilt........................................................................ 65 (828) 464-7388 www.wanzl.com/en_US

Ready Training Online........................................................... 31 (800) 247-8514 www.readytrainingonline.com

Thayer Distribution............................................................. Back Cover www.thayerdistribution.com

Welch’s..............................................................................................207 (800) 340-6870 www.welchs.com

Reynolds American Inc........................................................ 193 (336) 741-2000 www.reynoldsamerican.com

Tommy’s Car Wash System............................................................. 230 www.landing.tommycarwash.com

The Wonderful Company................................................................. 145 www.wonderful.com

Tote.ai................................................................................................ 62 www.tote.ai

Xcaliber International..........................................................189 (888) 4-XCALIBER www.xcaliberinternational.com

Ronpak................................................................................................45 318-219-4300 ww.ronpak.com Ruiz Foods..............................................................................151 (800) 477-6474 www.ruizfoods.com SageNet............................................................................................ 153 918-270-7000 www.sagenet.com

TravelCenters of America.................................................... 183 www.ta-petro.com Trinchero Family Estates dba Sutter Home Winery........... 218 www.tfewines.com www.sutterhome.com

Xpress Gear Wireless Accessories LLC................................. 50-51, 215 www.creamdelta.com sales@maxkickusa.com www.maxkickusa.com

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BY THE NUMBERS

The Power of Productivity— and How to Track It There are multiple ways to track operational productivity in convenience stores. Each metric can help reveal aspects from return on square footage to employee productivity— as well as uncover opportunities to increase productivity or identify areas where there’s been decreased return on employee hours.

In the NACS State of the Industry Report® of 2023 Data, operational productivity benchmarks include inside sales per labor hour and labor dollar, total sales per labor hour and labor dollar, and gross profit per labor hour and per labor dollar. These NACS Research-generated metrics are generally used to measure both employee and operational efficiencies to

determine an overall return on investment into the business.

Different operational productivity metrics can be leveraged in different ways. For example, inside sales per labor hour (which is calculated by dividing total sales by the number of hours worked), can show whether your business is generating a high ratio of sales from each hour worked. The inside sales per labor hour ratio can be influenced by either reducing labor hours or increasing inside sales—both valid strategies depending on the goals of the operator.

In 2023, the average inside sales per labor hour was $147.31.

E-sized (those with 500 stores or more) was the only operator class that saw a higher average, reporting $160.21.

Interested in learning about other operational productivity metrics? Visit www.convenience.org/Research.

$160.21

OPERATIONAL PRODUCTIVITY Inside Sales Per Labor Hour

$123.77

1-10

$85.30

l

ag

Al

Fi

e

11-50

r m s Ave r

$147.31 232 OCTOBER 2024 convenience.org

$105.08 51-200

201-500

500+

Shutterstock/Visual Generation Inc.

$88.11

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