NACS Magazine May 2024

Advancing Convenience & Fuel Retailing

May 2024 EMPLOYERS OF CHOICE A plan to grow the labor pool LEADERSHIP INSIGHTS How culture drives success

The latest NACS SOI numbers show that foodservice sales continue to grow

convenience.org

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ONTENTS NACS / MAY 2024

26 Foodservice

Sales Stack Up Convenience foodservice categories add another win as all foodservice categories increase in sales and gross profit dollars.

32 A Celebrity Chef’s

Creative Ways to Elevate Foodservice Chef Andrew Zimmern talks simple upgrades to food offerings that will impress customers.

36 Caught Red-Handed C-stores use a mix of old-fashioned techniques and new technology to limit internal theft.

On the Cover: nyvltart/Getty Images. This Page: Arthimedes/Shutterstock

44 A Parting of the Clouds Drivers continue to feel better about the economy, and they are looking for retailers who best understand their needs.

54 NACS Leadership

Forum: How to Build and Grow Your Culture Every company has a culture—but is it the one you want?

68 Cultivating C-Store Jobs into Careers of Choice

The NCCRRC offers an action plan for how convenience retailers can attract prospective employees.

76 Creating C-Store

Leaders of the Future This article is brought to you

by Ready Training Online.

Ready Training Online helps customize your c-store training program to set your managers on the path to success.

62 A C-Store’s Heartbeat Managers are the heart of the store, and retailers are finding the best ways to attract and retain them.

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 MAY 2024 1

ONTENTS NACS / MAY 2024 DEPARTMENTS 06 From the Editor IT’S A FACT

$37,496

The average sales per store, per month of packaged beverages in 2022.

CATEGORY CLOSE-UP PAGE 86

08 The Big Question 10 NACS News 18 Convenience Cares 20 Inside Washington

The NACS government relations team and state associations work together for the good of the industry.

24 Ideas 2 Go

Compass Travel Center offers European food delights and a focus on trucker amenities.

80 Cool New Products 84 Gas Station Gourmet At Blake’s Deli, seafood specials and southern cooking attract customers.

86 Category Close-Up

Packaged beverages remain key for c-stores as innovation beckons consumers.

Jonathan Knowles/Getty Images

96 By the Numbers

PLEASE RECYCLE THIS MAGAZINE 2 MAY 2024 convenience.org

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

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/ MAY 2024 EDITORIAL

NACS BOARD OF DIRECTORS

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

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

Ben Nussbaum Editor-in-Chief (703) 518-4248 bnussbaum@convenience.org Lisa King Managing Editor lking@convenience.org Leah Ash Editor/Writer lash@convenience.org Lauren Shanesy Editor/Writer lshanesy@convenience.org CONTRIBUTING WRITERS Terri Allan, Chrissy Blasinsky, Shannon Carroll, Sarah Hamaker, Al Hebert, Adam Rosenblatt, Emma Tainter DESIGN MX www.themxgroup.com

MEMBERS: Chris Bambury, Bambury Inc.; Tom Brennan, Casey’s; Frederic Chaveyriat, MAPCO Express Inc.; Andrew Clyde, Murphy USA; George Fournier, EG America LLC Terry Gallagher, Gasamat Oil/Smoker Friendly;

NACS SUPPLIER BOARD

Stacey Dodge Advertising Director/ Southeast (703) 518-4211 sdodge@convenience.org

CHAIR: David Charles, Cash Depot

Ted Asprooth National Sales Manager/ Midwest, West (703) 518-4277 tasprooth@convenience.org

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

Join us at conveniencecares.org

PAST CHAIRS: Don Rhoads, The Convenience Group LLC; Jared Scheeler, The Hub Convenience Stores Inc.

ADVERTISING

Jennifer Nichols Leidich National Advertising Manager/Northeast (703) 518-4276 jleidich@convenience.org

COME TOGETHER. DO MORE.

OFFICERS: Lisa Dell’Alba, Square One Markets Inc.; Annie Gauthier, St. Romain Oil Company LLC; Chuck Maggelet, Maverik Inc.; Don Rhoads, The Convenience Group LLC; Brian Hannasch, Alimentation Couche-Tard Inc.; Varish Goyal, Loop Neighborhood Markets; Lonnie McQuirter, 36 Lyn Refuel Station; Charlie McIlvaine, Coen Markets Inc.

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

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

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

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

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

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

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

Periodicals postage paid at Alexandria VA and additional mailing offices.

1600 Duke Street, Alexandria, VA 22314-2792

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UP FRONT FROM THE EDITOR

Winning With Foodservice

6 MAY 2024 convenience.org

With food prices spiking, a breakfast sandwich remains an affordable indulgence.

My neighborhood c-store embodies the industry’s move towards bigger and better foodservice.

only sets me back $2. Hey, that’s practically free.

My visits to the store had dwindled to once a month, at most, but now they’re back to about once a week.

The moral: Foodservice is powerful.

This isn’t new news, of course. Across all its categories, foodservice contributed $60,578 in sales per store, per month.

Emma Tainter dives deep into all the latest foodservice data in “Foodservice Sales Stack Up,” revealing the latest foodservice data from the NACS State of the Industry Report® of 2023 Data.

If my local c-store is any indicator, I can see how this industry’s food-forward future is looking pretty bright.

You can learn more about our industry’s foodservice trends, as well as its 2023 financial and operational performance, by purchasing a copy of the soon-to-be-released SOI Report at convenience.org/store.

Ben Nussbaum Editor-in-Chief

AnnapolisStudios/Getty Images

I

’ve probably walked through the doors of my local c-store more than 1,000 times.

In my first few visits—15 years ago—I was impressed how it always seemed to have those crucial little items that got lost in my move to the neighborhood, items like a lightbulb, an extension cord, duct tape.

The store quickly became part of my morning commute. Its chocolate-frosted cake donuts were ridiculously tasty.

When I started working from home, I discovered that the c-store was a fun option when I needed to throw together a quick school lunch for one of my kids—the go-to was a croissant, a pack of crackers and a fresh fruit cup.

I’ve walked or driven there for dozens of reasons over the years. Beer … milk … butter … a sugar craving.

But, honestly, I haven’t been going there as much. No particular reason. It just hasn’t spoken to me. I haven’t had any problems it solves.

But … plot twist. Breakfast tacos, two for $4, according to a big sign out front. I had to check it out.

Inside, I discovered a new hot case and an expanded grab-and-go section, plus an assortment of cookies by the register. I’m all in on this pivot toward foodservice. The tacos lured me in, but the sausage breakfast sandwich keeps me coming back. It’s tasty, filling and

©Mondelēz International group

ARTIFICIALLY FLAVORED

UP FRONT THE BIG QUESTION

“What’s the business case for investing in your people?”

Investing more in your people can feel expensive, but the reality is that not investing is far more expensive and far less competitive than many retail leaders realize. Low investment in people leads to high turnover. In an operationally intensive service industry like convenience, the cost of turnover is high, sometimes existential.

C-stores can fairly easily calculate the direct cost of turnover—hiring, training and getting teams to base productivity. We’ve seen this come in at 2-10% of revenue or 10-25% of payroll for some retailers and restaurants—and this is the smallest cost of turnover. Turnover will never be zero, but reducing turnover means you can invest those payroll dollars in keeping people (more training, higher pay) rather than losing them.

You need strong operational execution to deliver convenience: to be always in stock, process customers fast, offer quality food options, have relentlessly clean stores 24 hours a day and more. That level of execution is very hard to deliver with high turnover. We’ve heard from c-store leaders that the cost of poor execution is high—from higher shrink to lower inventory accuracy to maintenance issues to dirty stores to staff burnout.

All of these issues can increase costs and reduce sales today and tomorrow by reducing customer loyalty and goodwill. You can start to quantify this by looking at your

8 MAY 2024 convenience.org

 Sarah Kalloch, Executive Director, Good Jobs Institute key operational and customer satisfaction metrics and identifying the gap between where you are today and where you could be with stronger teams. We’ve found this gap is often substantial—20-50% untapped potential you could harness with better jobs. And this is still not the largest cost of low people investment.

Your customers have lots of choices about where to fuel up. For c-stores to stay competitive in a rapidly changing world—especially those carving out a niche in foodservice—you need to have strong, stable teams that drive operational execution, build customer relationships and help you adapt to new technology, regulations and market changes.

Even when looking at these costs, it can feel like a big leap to make higher investments in pay, especially

after many companies have made significant investments over the past few years. That is where the Good Jobs Strategy comes in. C-stores that make strategic investments in people can leverage and derisk that investment with better operations and job design to drive stronger productivity, execution, and service. And we can help, though our partnership with NACS. Your customers have lots of choices: if stable, engaged teams spend every day creating operational excellence and friendly service, that will position your business, and this industry, to be the channel of choice.

Discover more at www.convenience. org/Topics/Employee-Engagement/ The-Good-Jobs-Strategy/

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UP FRONT NACS NEWS

Go Deep With the State of the Industry Data Archive Subscription

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.

The NACS State of the Industry Data Archive puts 10 years’ worth of convenience fuel and retailing industry data at your fingertips, and it’s the only place to access a decade of proprietary NACS data.

Retailers can quickly view historical data and gain immediate year-over-year

10 MAY 2024 convenience.org

industry perspective, including quartile rankings by store, operating profit and chain size with weighted average based on the annual NACS NIQ/TDLinx Store Census. Other features of the archive include being able to view inside sales, gross profits and gross margin percentage across all years to the category level as well as fuel sales volume in gallons, price per gallon and margin in cents per gallon by fuel grade.

The State of the Industry Data Archive is available for purchase by NACS members only. Upon purchase of a digital license, you will receive access to the report through a DRM-secured PDF through your convenience.org login profile. The subscription is purchased for your company, so all employees included in your NACS account profile will be granted access.

Want to know more? Schedule a demonstration of the SOI Data Archive with Chris Rapanick, crapanick@ convenience.org.

adventtr/Getty Images

NACS members can get access to up to 10 years of exclusive data from over 27,000 convenience stores.

Helping to Build Leaders NACS Executive Education offers a range of classes at elite universities.

Worawut Prasuwan/Getty Images

Informed, confident and nuanced leaders are the best asset an organization can have. The NACS Executive Education series has partnered with world-class institutions—boasting some of the best educators in the world—to provide exclusive training to shape the forward-thinking, determined leaders who will seize the opportunities of tomorrow.

The NACS Executive Education series is the only comprehensive, multidiscipline industry curricula that offers customized, Ivy League training exclusively for senior convenience management. When it comes to transformative learning for the top-most sector of the convenience channel, NACS brings 60 years of industry experience and the global network to deliver an unparalleled education experience.

Each immersive program is designed to actualize potential. Which will you and your team attend?

Financial Leadership Program July 14-19, 2024 The Wharton School of the University of Pennsylvania Balance sheets are black and white. The thinking around finances, the insights and the strategies are where financial awareness (and associated action) grows more informed, more confident, more

lucrative. Designed for executives who seek to maximize their financial adeptness and in turn amp up their organizational value and their organization’s bottom line.

Endowed by:

Marketing Leadership Program July 21-26, 2024 Northwestern University When you deeply understand and connect with your customer, you excel.

When you don’t, you decline. Marketing is about showing customers that you understand them; you have what they need. And it’s about building the connections that create loyalty. Are you a senior-level executive looking refine your expertise when it comes to branding, consumer experience and analytics?

This program is for you.

Endowed by:

Executive Leadership Program July 28-August 1, 2024 Cornell University Competition surrounds you. How will you lead? How will you excel? Senior-level retail management, this program is designed to enlighten, inform and level up your skills. Foster new ways of thinking and responding to the challenges you will face. Be equipped, and own your position as a visionary leader.

Endowed by:

Innovation Leadership Program November 3-8, 2024 MIT Sloan School of Management Innovation isn’t just a word—it’s a necessity. In convenience, we must bring it to our perspective, our skillset and our implementation. Because without innovation, stagnation sets in. And we all know this fast-paced world has no room NACS MAY 2024 11

UP FRONT NACS NEWS

for stagnation. Want to be an innovator?

An innovative thinker? Want to network with other innovative leaders? This program is for you.

Supported by:

Women’s Leadership Program November 17-22, 2024 Yale School of Management Unapologetic. Powerful. Respected. Authentic. Women aren’t simply equipped to succeed because they are human—they have unique strengths.

Often they can harness an innate emotional intelligence that allows a deeper breadth of understanding and clarity.

This empowering course is designed for women who want to individually and collectively bolster their leadership abilities, reinvigorate their companies and expand their networks.

Endowed by:

12 MAY 2024 convenience.org

Coming Soon: NACS 24/7 Day NACS is preparing for the sixth annual 24/7 Day. This event celebrates local heroes who work 24 hours a day, seven days a week helping others in the community. It spotlights how convenience retailers across the country are open around the clock, becoming a safe respite for firefighters, police officers, EMTs and others.

“Convenience retailers are often the first supporters to first responders. Thanks to their 24/7 operations, convenience stores are often the only place open to serve first responders and medical personnel working overnight hours. Convenience stores also help ensure fuel, water, food and other necessities are available for emergency workers and customers during the duration of disaster events,” said Stephanie Sikorski, executive director of the NACS Foundation.

Sikorski says that the power of 24/7 Day is that it’s not a onesize-fits-all celebration—retailers who participate can tailor their recognition of these individuals.

“It’s about showing up and doing it in a way that’s true to who you are as a brand, as a company, how your employees show up,” she said.

Learn how you can get involved in this important initiative at www.conveniencecares.org.

InStore.ai

NACS MAY 2024 13

UP FRONT NACS NEWS

Member News RETAILERS

Mindy West now serves as executive vice president and chief operating officer at Murphy USA Inc. In the newly creatMindy West ed position, West is responsible for both the Murphy USA and QuickChek brands, including store operations, merchandise, marketing and fuels. As COO, West will drive strategic initiatives and enhance the performance and profitability of the entire business.

Murphy USA Inc. hired Galagher Jeff as executive vice president and chief financial officer. Jeff joins the company from Galagher Jeff Dollar Tree, where he served as SVP finance and strategy, treasurer and chief transformation officer. Jeff also held senior roles at Advanced Auto Parts and spent 11 years at Walmart.

Chris Click was promoted to executive vice president of strategy, growth and innovation at Murphy USA Inc., where Chris Click he is responsible for asset development and digital transformation.

Steve Perry

Tri Star Energy named Steve Perry as its new chief operating officer.

Perry joined the Tri Star Energy team in 2022, bringing over 20

14 MAY 2024 convenience.org

years of operations leadership experience within the convenience store industry. Perry most recently served as the company’s vice president of wholesale operations.

M&G Realty Inc., part of Rutter’s Holdings Inc., named Chris Hartman as its president. Hartman succeeds Chris Hartman Tim Rutter, who retired at the end of 2023. M&G plans to continue Rutter’s growth in Maryland, West Virginia, Delaware and Virginia.

Hartman is the 11th generation to join the Rutter family business.

SUPPLIERS

Derek Brodt joins Electrolux Professional Group Americas as the director of customer care. Brodt will drive the Derek Brodt long-term strategic vision and direction of Electrolux Professional Group’s branded service program, Essentia. His primary responsibility is creating a seamless after-sale customer experience.

Charles Jarrett joined ResultStack as executive vice president of the consulting practice. In his new role, Jarrett will Charles Jarrett oversee ResultStack’s consultants, assist with company growth and supervise project teams.

KUDOS

Melissa Trimmer, CEPC, corporate executive chef and director of Culinary and Innovation Studio, Dawn Foods, was Melissa Trimmer honored with the American Culinary Federation (ACF) Pastry Chef of the Year Award 2022 by the Michigan Chefs de Cuisine chapter of ACF. This year marked the first Chef of the Year dinner by the ACF Michigan Chefs de Cuisine since Covid, and they honored both 2022 and 2023 recipients.

The award recognized Trimmer’s passion for the craft, accomplished reputation in the pastry field and dedication to educating others by sharing skills and knowledge.

The Wills Group has received Great Place to Work certification, with an employee satisfaction rating of 87%, up from 82% in 2022 and 84% in 2023. The company, in part, credits that in recent years it has remodeled its benefits package to achieve equity across all offerings, ensuring both retail and corporate employees have equitable access to resources.

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

UP FRONT NACS NEWS

New Members

NACS welcomes the following companies that joined the Association in February 2024. NACS membership is companywide, so we encourage employees of member companies to create a username by visiting www.convenience.org/createlogin. All members receive access to the NACS Online Membership directory and the latest industry news, information and resources. For more information about NACS membership, visit convenience.org/membership.

NEW HUNTER CLUB MEMBER Silver SPYLT American Fork, UT spylt.com Bronze Zen Beverage LLC Irvine, CA zenwtr.com Built Brands LLC American Fork, UT built.com Crunch Pak Cashmere, WA crunchpak.com nData Services LLC Centennial, CO ndataservices.com RETAILERS

Berger Ridgeview LLC Olathe, KS

David Sahagun Enterprises, Inc. San Francisco, CA www.pacificheightschevron.com

Doman’s General Store Inc. Vassar, KS

Khushi Ali Inc Stockbridge, GA

Legacy Cooperative Bisbee, ND

16 MAY 2024 convenience.org

Meyer Oil Co. dba Mach 1 Food Shop Teutopolis, IL mach1stores.com

Addcentia Inc dba Autoreimbursement.com

Food Camp Corporation

Oconomowoc, WI autoreimbursement.com

Santa Fe Springs, CA sites.google.com/foodcampco.com/main/ home

Winthrop, WA

Bauducco Foods Inc.

Go Mouthwash

Prairie Band LLC

Miami, FL bauducco.com

Grand Rapids, MI gomouthwash.com

Holton, KS prairiebandllc.com

Big Mozz

Grass Flip Flops Inc

S&D Quisberg LLC

New York, NY bigmozz.com

Westlake Village, CA grassflipflops.com

Baxter, MN holiday-bla.com

Bite Brands LLC

Green Planet Inc

Simonson Station Stores Inc

Atlanta, GA bitebrands.com

Riverside, CA thegreenplanetproducts.com

Grand Forks, ND

Budderfly

Speedsmart

Shelton, CT budderfly.com

Pardner’s Mini Markets

Mesa, AZ

Cizmeci Gida San ve Tic AS Western Oil

San Francisco, CA harmlessharvest.com

Kocaeli, Turkey

International American Supermarkets Corp.

Clean Control Corporation

Piscataway, NJ iasusa.com

Omaha, NE

Muswick LLC

Harmless Harvest

Little Rock, AR

Warner Robins, GA odoban.com

NACS GLOBAL SUPPLIER COUNCIL

Cornerstone Consulting Engineers & Architectural Inc

Blue Yonder

Allentown, PA cornerstonenet.com

Jiangxi ECO Technology Group Co., Ltd

Deschutes Brewery

Nanchang, China jxecobox.com

A&C GLASS DOOR LLC

Bend, OR deschutesbrewery.com

LidWorks

Chino, CA www.shhag.com

Empacados USA

Plant City, FL lidworks.com

Scottsdale, AZ blueyonder.com SUPPLIERS

San Antonio, TX

J Plus Specialty Foods LLC Lincolnwood, IL tastelli.com

Master Creations Inc Atlanta, GA

Melinda’s Foods

Padrino Foods

RapidRMS

SLEEGERS Engineered Products Inc

Irving, TX

Irving, TX padrinofoods.com

Calhoun, GA rapidrms.com

London, Ontario, Canada sleegers.ca

Pilgrim’s Pride Corporation

Rosina Foods

Greeley, CO poultry.com

Buffalo, NY

Spectrum Industrial Products dba Mopit

Mira International Foods Inc East Brunswick, NJ enjoymira.com

Logan, UT mopit.com

Clive, IA

PLS

Sarpes Beverages LLC dba Dream Products

Noka

Tempe, AZ plsusa.com

Miami, FL drinkdreamwater.com

Pacific Palisades, CA nokaorganics.com

POSBANK

Show Cigars Inc New Castle, PA showcigars.net

Wismettac Asian Foods Inc

NXTPoint Logistics

Seoul, Korea posbank.com

Jacksonville, FL nxtpointlogistics.com

Qit Pouches Inc.

Slate Craft Goods

Zero FG

West Palm Beach, FL qitpouches.com

Westwood, MA

zerofgenergy.com

Nexchapter LLC

Pacific Blue Corp.

Upshop Tampa, FL upshop.com

Santa Fe Springs, CA

Slate Group

Capitol Heights, MD pbnoodle.com

Lubbock, TX

Calendar of Events 2024

JUNE NACS Convenience Summit Europe June 04-06 | Intercontinental Barcelona Barcelona, Spain JULY NACS Financial Leadership Program at Wharton July 14-19 | The Wharton School University of Pennsylvania Philadelphia, Pennsylvania NACS Marketing Leadership Program at Kellogg July 21-26 | Kellogg School of Management, Northwestern University Evanston, Illinois

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

NACS Women's Leadership Program at Yale November 17-22 | Yale School of Management New Haven, Connecticut 2025

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

NACS MAY 2024 17

CONVENIENCE CARES

Love’s Field Opened at University of Oklahoma The $37 million softball stadium that Love’s helped build opened on March 1.

I

n 2021, Love’s announced that it provided the lead and naming gift for the University of Oklahoma’s new softball stadium. Three years later, Love’s Field is completed, and the first pitch was thrown on March 1.

At the field, the company’s name is displayed at the top of the scoreboard, as well as behind home plate. The facility will feature a 10,669-square-foot indoor training facility, more than double the size of the previous training space, and several team spaces, including a training room, locker room and classroom. It will 18 MAY 2024 convenience.org

also have space for a recognition area to showcase national championships, All-Americans and other outstanding accomplishments.

“My family and I are so proud to play a part in making Love’s Field a reality,” Jenny Love Meyer, chief culture officer for the retailer, said. But she also pointed out that while the stadium might have the company name on it, this project took years and a village of dedicated people to complete.

“This 44,000-square-foot complex is a nod to Coach Gasso and all those who

have been instrumental to building the Oklahoma softball dynasty and hopefully an inspiration for the female student-athletes who compete in it. They are our leaders of the future,” Love Meyer said.

“Love’s is humbled to stand alongside the more than 1,100 donors who graciously supported this project. The $37 million raised is the largest dollar amount privately fundraised for a female-specific facility project in college athletics history.”

The first pitch in Love’s Field coincided with the start of Women’s History Month.

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.

CASEY’S LAUNCHES ANNUAL FEEDING AMERICA CAMPAIGN 1 Casey’s kicked off its annual campaign in the fight against hunger in March, partnering with Celsius and with Feeding America. Through April 2, Casey’s guests could round up at the register to participate in the campaign, supporting children and families impacted by food insecurity across the Midwest and South. Since the start of their partnership in 2020, Casey’s and Feeding America have donated over 30 million meals. This year, Casey’s is committed to helping provide 10 million meals.

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WAWA BATTLES FOOD INSECURITY WITH FLY BEYOND PROGRAM 2 Wawa launched its “Buy a Kids’ Meal, Make an Impact,” initiative last March. For every Wawa kids’ meal purchased until July 28, Wawa will donate funds to local food bank partners to provide meals to the community. The initiative is an extension of the retailer’s Fly Beyond program, which aims to expand access to fresh and nutritious foods to underserved communities through local Feeding America Food Bank partners.

MIRABITO CONVENIENCE STORES SUPPORTS HONOR FLIGHT NETWORK 3 Mirabito Convenience Stores launched a round-up campaign across all its stores dedicated to supporting the Honor Flight Network. The Honor Flight Network is a nonprofit organization that offers veterans the opportunity to visit the memorials dedicated to their service and sacrifices free of charge to them.

The round-up campaign took place throughout March. All funds collected during this campaign will be donated to local Honor Flight hubs in Upstate New York.

PARKER’S KITCHEN PARTNERS WITH THE WOUNDED WARRIOR PROJECT 4 Parker’s Kitchen announced a new partnership with Wounded Warrior Project (WWP) to support local veterans in Georgia and South Carolina. Parker’s Kitchen customers can round up their purchases to the nearest dollar to benefit WWP.

EG AMERICA KICKS OFF ANNUAL FUNDRAISER FOR THE AMERICAN RED CROSS 5 EG America, based in Westborough, Massachusetts, announced it will support the American Red Cross during Red Cross Month by hosting a nationwide in-store fundraiser.

During the month of March, guests who visited EG America’s Certified Oil, Cumberland Farms, Fastrac, Kwik Shop, Loaf N’ Jug, Minit Mart, Quik Stop, Sprint Food Stores, Tom Thumb and Turkey Hill stores had the opportunity to donate at checkout to the American Red Cross. The company’s goal for the fundraiser, which began March 1, is $250,000.

EG HOLDS HEARING AWARENESS CAMPAIGN 6 In honor of World Hearing Day, EG Group held a hearing awareness campaign for staff members in partnership with Clears Healthcare. Over 600 staff members were screened. A proactive step saw 546 employees opt for hearing tests, and 157 received ear wax removal services. The campaign was a hit, with 100% of participants expressing interest in making it an annual wellness event.

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Proceeds from the Parker’s Kitchen round-up campaign, which will run through July 4, will be donated to support WWP. Parker’s Kitchen will match 25% of each customer donation.

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NACS MAY 2024 19

INSIDE WASHINGTON

State-Level Advocacy Bolsters Industry Impact The NACS government relations team and state associations work together for the good of the industry.

BY THE NACS GOVERNMENT RELATIONS TEAM

W

hile the NACS government relations (GR) team is largely focused on the federal government, the team also keeps an eye on state capitals across the country as policy issues that affect our industry develop there.

Quite often, NACS’ work in Washington, D.C., can overlap with or complement work being done by our industry’s representatives in your home states. To that end, the NACS GR team works closely with our state association partners and occasionally takes direct actions at the state level in conjunction with those partners.

Most often, when engaging on a state-level issue, the NACS GR team provides support in the way of data, research or talking points, for example, to our state partners. Each month, the NACS team meets virtually with state executives from all over the country to share information about what’s happening at both the state and federal levels.

The NACS team and state executives also meet in person annually, just ahead of the NACS Show, for the same purpose. This partnership has proven to be 20 MAY 2024 convenience.org

fruitful on several occasions in the past and will continue to serve the industry in the future. Below are a few examples of times that NACS has engaged at the state level in partnership or cooperation with state partners when issues cross jurisdictional levels or rise to national significance.

ELECTRIC VEHICLES AND ELECTRIC VEHICLE CHARGING INFRASTRUCTURE Issues related to electric vehicles (EVs) and EV charging infrastructure are a good example of how issues can overlap at the federal and state levels. The National Electric Vehicle Infrastructure (NEVI) formula grants program is a federal incentives program created by Congress and implemented by the U.S. Department of Transportation but distributed by state governments via their approved state plans. Some states are adopting policies counter to guidance to discourage the sort of private sector investment and competition that NACS advocated for and that is stipulated in the bipartisan infrastructure bill.

For example, Minnesota and Iowa are

NACS has been working to create a competitive market for EV charging by modernizing outdated rules in the electricity market.

Eoneren/Getty Images

attempting to limit the profitability of EV charging.

In addition, NACS has been working to create a competitive market for EV charging by modernizing outdated rules in the electricity market. That includes providing the ability for non-utilities to sell electricity for the purpose of charging EVs and not be regulated like a utility, removing unnecessary demand charges and creating a level playing field for all players in the EV charging space.

NACS worked to include language in the Bipartisan Infrastructure Law to encourage states to address those issues and co-founded the Charge Ahead Partnership to advance these issues at the federal and state levels. Through the Charge Ahead Partnership, NACS has been able

to work closely with state associations and other stakeholders to pass legislation and weigh in with state public utility commissions working on developing the EV charging marketplace.

FUELS Fuels policy—particularly issues relating to low-carbon fuel programs, bans on the sale of vehicles powered by an internal combustion engine (ICE) and zero-emission vehicle (ZEV) mandates—has been active at the federal and state levels and is a good example of how state action can spread to federal action. Many states, such as California, have aggressively pursued these policies, and many states have followed the lead of these most aggressive states. California, Oregon and

Washington all have low-carbon fuel standards, with Minnesota and New Jersey considering similar programs. Some in Congress would like to federalize a low-carbon fuel standard. NACS is working with a broad group of stakeholders to look at a technology-neutral, pro-marketbased solution to lower carbon emissions in the transportation sector.

The same is happening with ICE bans and ZEV mandates. Again, California is leading the pack by establishing a ban on the sale of ICE-powered vehicles, with over 17 states poised to follow. At the same time, the Environment Protection Agency (EPA) has proposed an “indirect” EV mandate with its proposed rule on tailpipe emissions for light-, mediumand heavy-duty vehicles. NACS submitNACS MAY 2024 21

INSIDE WASHINGTON

ONE VOICE This month, NACS talks to

Tony Miller,

executive vice president, Delek US

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

The NACS government relations team is among the best in Washington. That said, if we (the convenience retail industry) want to make a difference on the Hill, let’s focus on moving mountains with the collective voices of the millions of convenience store employees.

Together we can make a difference and it will be very gratifying for everyone involved. When I am politically engaged, I am left with a feeling of making a difference. Traveling to D.C. to participate in Day on the Hill can be the most rewarding day of the year.

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

The only legislative issues that keep me up at night are the decisions that are made by the ill-informed or the politically motivated. I worry about any government intervention that is not driven by the free market, which is always the best for the consumer. We have experienced many legislative issues over recent years that have driven up cost to unsustainable levels—costs have reached a tipping point beyond affordability.

22 MAY 2024 convenience.org

ted comments critical of the proposed rule and is working with a wide range of groups and congressional leaders to halt or delay this rulemaking.

In addition to pursuing efforts on the legislative and regulatory side, NACS has been working to get good policy outcomes through the courts. NACS has worked with other groups to file three lawsuits challenging state technology mandates. These include challenging California’s light-duty and heavy-duty vehicle ZEV mandates, as well as Minnesota’s light-duty vehicle ZEV mandate that follows California’s rules. NACS hopes the courts will agree with its view that federal law prohibits states from implementing these technology mandates.

SWIPE FEES NACS has been playing offense on federal swipe fees legislation, and our state association affiliates have been playing offense as well. For several years now,

Lilit Amirkhanian/Getty Images

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

Convenience stores have long been—and continue to be—part of the fabric of the community by providing customers with the products and services they need to make their days a little easier. It is our obligation to serve and to give back to our communities in a very responsible way, and most importantly, to provide our customers with a unique shopping experience—which is fast, friendly and fresh each and every day.

NACSPAC DONORS

states around the country have been pursuing legislation that would prohibit banks from charging swipe fees on the sales tax portion of a transaction. It’s especially egregious that banks profit off the portion of the transaction that retailers don’t even get to keep. This year, Colorado, Georgia, North Dakota and Pennsylvania are pursuing bills. To be expected, the state banking trades are fighting the legislation with all of their might, but the retail and business communities have formed coalitions supporting the bills. Our collective efforts, at both the state and federal levels, to reform the swipe fee system place enormous pressure on the credit card industry and bring needed attention to this broken marketplace.

VAPE ENFORCEMENT The FDA has created mass confusion in its PMTA process by not providing a clear list to retailers of which vapes are

legal to sell. As a result, illicit vapes have flooded the market. In response, states around the country are considering directory bills to bring clarity to retailers and to call for enforcement against products not on the list.

Concurrently, NACS is working on federal legislation that would compel the FDA to provide a clear list to retailers of which vape products can be on the market to ensure retailers are complying with the law and not selling illicit products. Once a list is published, the FDA would be required to enforce the law and go after bad actors.

Additionally, NACS will engage with various state-level nongovernmental organizations as needs arise. Currently, NACS has a partnership with the National Governors Association, allowing the GR team access to policy experts at the association who can provide insight into governors’ priorities and a pipeline into governors’ offices nationwide to help pursue our industry’s goals. In the past, we have engaged with other groups, as well, including the National Conference of State Legislatures and the National Association of Attorneys General. NACS continually evaluates memberships in such organizations for the benefit of the convenience industry. The NGO memberships and our partnerships with state associations continue to help strengthen and protect our industry.

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 March 2024 are: Matt Domingo Reynolds Mike Gilroy Mars Wrigley Josh Halpern JRS Hospitality/ BCIP dba Big Chicken Julie Jackson Jackson Advisory & Consulting Aaron Littlefield Littlefield Oil Company James McNutt Midwest Petroleum Company Nicolas Papadopoulos Verifone Inc. Lisa Rountree TruAge Stanton Sheetz Sheetz Inc. Stephen Sheetz Sheetz Inc. Rich Spresser Alta Convenience Melissa Vonder Haar iSee Store Innovations John Wilson iSee Store Innovations

NACS MAY 2024 23

IDEAS 2 GO

The Comforts of Home Name of company: Compass Travel Center Year founded: 2022 # of stores: 1 Website: compasstravelcenter.com/

24 MAY 2024 convenience.org

Compass Travel Center offers European food delights and a focus on trucker amenities.

BY SARAH HAMAKER Compass Travel Center is more than a stop—it’s a destination along I-65 in Demotte, Indiana.

Its owner, Roy Dobrasinovic, is a former professional truck driver from Montenegro, so when he bought the property in 2014, he wanted to build a home away from home for truckers. The travel center first opened its doors in 2022.

HOME COMFORTS Dobrasinovic “makes sure Compass Travel Center has all the comforts of home for our truckers,” said Rick Farias, general manager. The center boasts eight showers, a driver’s laundry room and 85 semi-truck parking spots. “Plus, we have arcade games and massage chairs—it’s these little things that show we care about our customers,” he added.

But what makes the center unique is its treats and snacks from Europe, including candies, meats by the pound, chocolates, sausages, smoked beef and ham, a variety of cheeses and many kinds of European packaged beverages.

Bureks, similar to potpies, are one of the unusual and popular food items.

“Because of the owner’s European background, he wanted to bring in those foods and drinks popular overseas,” Farias said. “It’s been a huge hit with our customers, since they can get items here that aren’t available any place else.”

Because Dobrasinovic is a former trucker, he added special amenities for them, including a showroom with trucks for sale and Bob’s Chrome Shop. On the Trucker’s Path app, Compass is ranked third among independent truck stops and fourth overall in the United States.

“These are things that truckers both need and enjoy exploring when stopping with us,” Farias said. “Of course, we have 10 high-speed clean diesel islands and 24 fueling positions, which offer gasoline, auto-diesel, E85 and E15, along with air for tires. In addition, we’ve recently added a pool table and darts for more entertainment options, and will offer live music on Thursdays. This summer, we will be opening a patio dining area.”

Compass has a double-drive thru Dunkin’, a Hunt Brothers Pizza and its full-service Roadhouse Grill concept serves breakfast, lunch and dinner and has a three-way license to offer wine, beer and liquor.

COMMUNITY CONNECTIONS Two billboards welcome truckers and tourists to stop at Compass Travel Center. “We do a lot of our own promotions and advertisements on the 20 TVs throughout the complex and on our gas and diesel dispensers, letting our customers know about truck and trailer

leasing, factoring, smart board, restaurant specials, groceries or gifts we have available,” Farias said.

The store connects with the community through participation in local events via the chamber of commerce and other nonprofit opportunities, such as the annual Touch of Dutch Festival.

“We gladly give away a lot but we’re fairly new in the community and we want to be part of the local area to get our name out there,” he said.

But the best advertisement comes from the employees. “Our management team has a ton of experience in the industry. For example, Phil Brauchla, director of operations, has 34 years of experience and I have 31 years in the industry, and that shows with how we manage our people,” Farias said. “We’ve always been more people-minded in trying to reduce turnover and create a positive work environment.”

Compass sets the tone with a warm welcome during the new employee orientation, which includes a facility tour, staff introductions and a talk about the company culture and expectations.

“We want each member of our staff to know the expectations and to make sure they can achieve success while working here,” Farias said. “All of our managers have an open-door policy for suggestions or concerns, along with monthly manager and safety meetings.”

While he acknowledged on open-door policy might feel unstructured, “the relaxed atmosphere cultivates a very open communication style among employees and management staff.” The emphasis on communication has reduced annual turnover to 20% or under. “When we hire someone, we focus on the things we can’t train, such as having a positive attitude,” Farias said. “So once they’re here, they can grow and flourish with training and the opportunities for advancement we give them.”

BRIGHT IDEAS For Rick Farias, general manager of Compass Travel Center in Demotte, Indiana, the best advice for convenience retailers is to take chances. “Don’t be afraid to try new things,” he said. “You should track and evaluate them, tweak them if necessary to make them work in your store, and say it doesn’t work if that’s the case.”

He credits a willingness to see how different ideas, products or services work for the Compass facility as how they’ve kept the concept fresh and exciting for their core customers and visitors alike. “You need to see what works for you in your situation, because everywhere is different.”

Overall, Compass Travel Center’s goal is to “make customers feel welcome and wanting to come back, to make this a destination, not just a stop,” he said. “I think we’re heading in the right direction.”

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

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

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

razum/Shutterstock

FOODSERVICE SALES STACK UP Convenience foodservice categories add another win as all foodservice categories increase in sales and gross profit dollars.

BY EMMA TAINTER

E

ach May, NACS releases preliminary foodservice State of the Industry data.

The data not only tells us how the industry performed but sets a tone for the coming year—especially in an important category such as foodservice.

Of course, the data is just that—preliminary. This data comes before the release of the NACS State of the Industry Report® of 2023 Data, which will be hitting the (online) shelves in mid-June.

However, the NACS 2024 State of the Industry Summit has already come and

gone, and you may have heard the news: sales in prepared food once again beat sales of cigarettes, bringing its winning streak over the long-time c-store juggernaut to two years.

At this point, it is easy to drive home the point that foodservice has become one of the most important parts of the convenience business. Foodservice—which consists of prepared food, commissary, hot dispensed beverages, cold dispensed beverages and frozen dispensed beverages—grew to 26.9% of in-store sales.

Foodservice adds a much-needed opportunity for growth for convenience NACS MAY 2024 27

2023 Inflation Gauge:

Foodservice has become one of the most important parts of the convenience business.

28 MAY 2024 convenience.org

Did Your Company Grow or Keep Pace?

NACS Research calculated that if a company’s sales growth was 8.9% or better, their stores experienced true growth. Foodservice sales were up 9.3% in 2023, meaning that sales beat inflation, and foodservice saw true growth, not just increased numbers fueled by inflation-related price increases.

PREPARED FOOD Prepared food accounts for 71.9% of total foodservice sales, by far the largest contributor to the category. It is also continuing to experience growth, increasing sales 12.2%, to $51,500 per store, per month in 2023.

Prepared food gross profit dollars increased 13.9% to $28,627 per store, per month.

Margins increased 1.5 percentage points, rising to 55.59%.

Foodservice does more than drive great margins—it also drives frequency among c-store shoppers. According to NACS’ Convenience Voices program, which captures insights from thousands of c-store shoppers, nearly one in nine customers (10.9%) who purchased prepared food said that they shopped more than once a day. Because these customers tend to be store loyal, becoming a prepared food destination creates brand stickiness for core categories other than prepared food. For example, of customers who purchased prepared food at a certain c-store chain, 70.5% of them also purchased a cold dispensed beverage from that chain.

mphillips007/Getty Images; Tim Macpherson/Getty Images

retailers who face the ongoing challenge of encouraging customers at the pump to go inside the store and make additional purchases. Foodservice, across all its categories, contributed $60,578 in sales per store, per month, a year-over-year increase of 9.3%. In comparison, the other top two best-sellers of packaged beverages and cigarettes brought in $40,339 and $44,765, respectively.

And it’s profitable. Foodservice margins are consistently higher than those of other in-store items, with 2023 margins at 51.34%, a year-over-year increase of 0.65 points. Foodservice gross profit numbers rose to $31,103 per store, per month, a solid 10.7% increase from $28,106 in 2022.

When looking at total profits, which include in-store and at the pump, foodservice is responsible for 21.2% of total gross profit dollars, up from 19.8% the year prior.

THE TOTAL ROLLER GRILL PACKAGE

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©2023 Johnsonville, LLC • *Technomic Roller Grill Consumer Study, August 2020 • **IRI 1/2/22

Foodservice, across all its categories, contributed $60,578 in sales per store, per month.

Prepared Food and Wages Prepared food is obviously the most labor-intensive foodservice category, and foodservice wages reflect this. According to the 2024 NACS State of the Industry Talent Insights Dashboard (previously known as the NACS Compensation Report), foodservice associates are responsible for a clean, safe and customer-friendly foodservice area, and that requires mastering multiple skills. They receive both register and food preparation training and work under the supervision of the foodservice manager.

In 2023, the average foodservice employee wage was $14.76, just slightly more than the $14.73 earned by other full-time employees. This is almost a full dollar more per hour than part-time employees, reflecting the value of that regular, familiar face behind the counter. Foodservice employees also complete more training than part-time employees.

Overall, 17.8% of foodservice employee training is focused on foodservice safety training, compared to 9.1% for non-foodservice employees. For cleaning protocols, 13.9% of foodservice employees’ training focuses on cleaning, compared to 11.0% for nonfoodservice employees.

Food safety is a critical part of operations for anyone providing foodservice. NACS holds an annual Food Safety Forum in conjunction with the NACS Show. To learn more about this year’s event, contact Chrissy Blasinsky, NACS’ digital and content strategist, at cblasinsky@convenience.org.

30 MAY 2024 convenience.org

COMMISSARY Commissary—which includes ready-to-eat meals; sandwiches and wraps; thaw, heat and eat meals; and sides and salads—was 6.0% of foodservice sales in 2023. Sales increased 6.0% to $4,260 per store, per month. Margins had solid growth, rising 1.77 percentage points to 31.62%. Gross profit dollars had even more impressive growth—up 12.3% to $1,347 per store, per month in 2023.

Commissary can be an unsung hero of the c-store foodservice operations—according to NACS’ Convenience Voices program, 27.7% of customers chose a certain site because of the availability of good pre-packaged foods.

DISPENSED BEVERAGES Hot dispensed beverages—including coffee, tea, hot chocolate, cappuccino/specialty coffee, refills and coffee club mugs—were 8.8% of foodservice sales in 2023. In 2023, hot dispensed beverage sales were $6,324 per store, per month, a 5.1% increase from the year prior. Margins decreased by 0.38 percentage points, falling to 63.21%; however, gross profit dollars increased from $3,825 to $3,997.

While hot dispensed beverage margins declined, profits in this category increased because of increased sales—not an easy feat when the morning daypart is still struggling to recover from a decrease in morning commuter traffic related to the pandemic and the resultant work-from-home policies that many office workplaces have at least partially embraced. In 2023, only 27% of workers commuted, a still-significant drop from the 35% who commuted before the pandemic,

JulieAlexK/Getty Images

Pay to Play:

Farknot_Architect/Getty Images

Nearly one of two (46%) shoppers describe their c-store visit as a meal or snack occasion. although the number of commuters has increased over the past few years.

Cold dispensed beverages—carbonated, non-carbonated, refills, sports drinks, club mugs, other non-carbonated—were 7.3% of foodservice sales. This category increased sales by 9.4% to $5,233 per store, per month.

Margins, however, decreased 3.53 percentage points to 50.97%, although strong sales helped grow gross profit dollars 2.3% to $2,667, per store, per month.

The smallest contributor to foodservice sales mix is frozen dispensed beverages— which includes the subcategories of frozen-non-carbonated, frozen-carbonated and other. While it was the smallest contributor at 5.8% of sales, it increased the most in sales dollars, surging 18.0% to $4,182. Frozen dispensed beverages historically have the highest margins among foodservice categories, and 2023 was no different. Frozen dispensed margins in 2023 were 64.12%, a year-overyear increase of 0.76 percentage points.

FOODSERVICE PRESENTS MORE OPPORTUNITIES IN 2024 According to the NACS Convenience Voices program, nearly one of two (46%) shoppers describe their c-store visit as a meal or snack occasion, and three out of the top five reasons why people stopped at convenience stores related to food. Additionally, 23.3% of people reported that they would shop more at convenience stores if they had higher quality food.

To continue to grow sales and customer loyalty, convenience retailers must continue to find ways to connect the needs and wants of the consumers to their offerings. The first step in growing foodservice sales could be to grab the attention of the consumer with the quality of the options.

Emma Tainter is the NACS research analyst/writer. She can be reached at etainter@ convenience.org.

NACS MAY 2024 31

A CELEBRITY CHEF’S

Creative Ways TO ELEVATE FOODSERVICE

32 MAY 2024 convenience.org

Chef Andrew Zimmern talks simple upgrades to food offerings that will impress customers.

ommanding 26% of sales and 35% of profits in 2022, foodservice is the biggest category in the convenience industry.

To elevate its foodservice products, Team Modern, a wholesale and inventory distribution business for c-stores, partnered with award-winning TV host and chef Andrew Zimmern. On a recent episode of the NACS Convenience Matters podcast, Zimmern talked about how he’s inspiring convenience retailers to rethink their foodservice offerings.

NACS: When you heard about this opportunity, how did you look at doing foodservice in a different way than in a traditional kitchen?

Zimmern: I’m a traveler—I spend two weeks at a time driving around in a van shooting shows in the U.S. I love stopping at convenience stores because if you get off the main road, the regional foods that you’re able to taste in these convenience stores are equal to or better than anything that you’ll find anywhere else. Gas stations now offer so much more.

The trend has been to see how we can take the most popular items from our food culture that we know consumers love—burgers, fried chicken, burritos and pizza—and make them a value add to what we’re already doing. C-stores adding breakfast pizzas 15 years ago is a great example of this really smart idea. Or as a consumer, when I’m in the Southwest, I don’t want a plain hamburger. I want one with hatch chilies on it. So how does somebody who has two burners, a griddle and a different cook every day make simple changes to their menu that engage customers in a more personal way?

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For these smaller companies, I am helping jumpstart that creative process for them. After doing three chicken tender sandwich demos, I don’t care if any of those vendors put those examples in their stores. What I care about is that they upgrade their chicken sandwich offerings for their customers. It’s very fulfilling for me as a culinarian to be able to put these simple ideas in front of people knowing that they can use them and it’s going to make a difference in their lives, and more importantly, in their business, which means in their communities. I’d love to see these stores be competitive and do so at a price that everyone can afford.

NACS: And when you’re a retailer, you have to do this all in a small space and do it fast. What has been the feedback on whether people can do this in a small kitchen?

Zimmern: As an example, recently at the Food Network South Beach Wine and Food Festival, we cooked our version of Choripán, an Argentinian street food, in our booth for thousands of people. It was a grilled sausage sandwich topped with peppers, cheese, herbs and relish. We had store-bought hot red relish and sweet red relish that we mixed together in gallon containers. We did not make it from scratch, I just combined existing elements and offered people something new, but something that was familiar at the same time. Who doesn’t love a grilled sausage sandwich? If you can differentiate yourself and build a reputation as the place with the Argentine

sausage sandwich that everyone talks about, for example, that’s where I’d like stores to get to. It’s a story and an experience for consumers, and that’s what drives everything.

NACS: Working in the food community and talking to people about how to elevate things, how do you nudge consumers to change behavior?

Zimmern: You’re not going to move someone a mile. But if someone’s doctor is telling them to mix in a salad every once in a while, but they love fried chicken … then give them a fried chicken salad. It allows people to mix in more fresh vegetables. Science and technology have allowed lettuce to stay fresher in bags longer, there’s less cutting and you can buy really good salad dressings from foodservice companies. There are so many ways people can be helped even with limited product, so if you’re only selling five or six a day, no problem. You will grow to sell more as people realize that it’s not only good for you but tastes really great as well.

You can do this with packaged snacks too— those little three packs of salami-wrapped cheese fly off the shelves. And the reason is someone’s spouse or doctor told them to slow down on the carbs, and this is a super easy pick-me-up snack that’s just protein and dairy. I buy them myself when I’m in a convenience store. These are the simple little changes we can make to help improve everything.

This interview has been shortened and edited for clarity. To hear the whole conversation, listen to Convenience Matters episode 433—How Celebrity Chef Andrew Zimmern is Changing C-Store Foodservice at conveniencematters.com.

34 MAY 2024 convenience.org

CHOOSE

C-stores use a mix of old-fashioned techniques and new technology to limit internal theft.

BY SHANNON CARROLL

36 MAY 2024 convenience.org

Fertnig/Getty Images

Red-Handed

NACS MAY 2024 37

If someone is stealing, chances are they’re not keeping an orderly till.

38 MAY 2024 convenience.org

explaining how. “That’s really good publicity for the store team,” he said, “because if there are other people stealing in your store, they’re going to stop.”

Important, too, is exception reporting.

At RaceTrac, Harrington is working to improve exception reports. Not too long ago, he was at a workshop where, in 30 minutes, attendees found several cases of internal theft just by looking at data and reporting.

Harrington said that clutter around the register and associates using their phones during work hours can be signs that the risk of internal theft is high.

“It doesn’t mean that every time you see chaos and disorder you have theft going on,” he said. “But if someone is stealing, chances are they’re not keeping an orderly till and things like that.”

“When our corporate asset protection team is monitoring exceptions, they can see, hey, something’s going on here and can work that down the chain,” he said. “That helps make everyone realize you’re on top of things every step of the way so that it’s harder for [employees] to get away with something.”

At a previous job, Harrington worked on a team that established and enhanced a tip line.

“Some of the best internal cases I’ve worked came because someone came forward,” he said. “Associates make a choice: ‘I’m going to do it, too,’ or, ‘I’m going to tell someone about it.’ So tapping into that and offering a reward or incentive program is a good benefit.”

INNOVATIVE STRATEGIES FOR INTERNAL THEFT PREVENTION Babir Sultan, the president and CEO of Kansas City-based Fav Trip and a NACS board member, has seen a number of scams. Those include cashiers pretending to scan an item but not actually ringing it up; an accomplice buying $40 worth of merchandise, giving the cashier a $20 bill and getting $60 from the cashier in return; employees stocking cigarettes throw a few packs in a trash can, only to collect their ill-gotten goods on their way out; and an employee who claimed they were exchanging five $20 bills for a $100 bill but instead put five $1 bills in the register.

Sultan talked to an absentee c-store owner who was letting employees fill up the ATM

Valerie Loiseleux/Getty Images

hile organized retail crime is getting plenty of buzz, convenience stores face an equally damaging threat to profits: internal theft.

Many of the suggested remedies boil down to good old-fashioned discipline and monitoring to recognize an issue before it spirals out of control.

Kelly Harrington, the director of asset protection at RaceTrac, said preventing internal theft starts early. “If you can create an impression of control out of the gate, people either go one of two paths,” he said. They take the risk of stealing despite knowing that they could be caught, or they decide to “take their business elsewhere and go down the road” and try to steal at some other business.

Harrington added that while people may like to point fingers at new employees, they’re not always the perpetrators. Sometimes, the thieves are long-tenured employees who have established trust and have figured out ways to keep their sticky fingers under the radar.

A big piece of curbing internal theft is publicizing it when it happens, Harrington said.

It’s not about defaming someone; instead, share that someone was caught without

They start off small and think, ‘Did anybody tell me anything the next day?’

40 MAY 2024 convenience.org

RETAILERS ARE TURNING TO ARTIFICIAL INTELLIGENCE To curtail crime, Fav Trip amped up its internal camera monitoring, and then realized that other retailers would pay for similar video monitoring, too. Now, Sultan has a team of about a dozen people who monitor c-store video almost 24/7 for about ten retail companies.

He’s a little wary of AI—“We had an AI system in place where every time an employee picked up their phone or put their phone in their pocket, it gave 400-plus notifications”— but he’s aware there is plenty of technology that could make AI a game-changer in curtailing internal theft.

Standard AI, a San Francisco-based company at the forefront of the industry, uses AI in certain zones in stores—including the backbar. As a result, if there’s a sale that doesn’t line up with, say, a tobacco-related item, a store manager or front-office employee can check to make sure a transaction lines up with video.

Alex Plant, the company’s vice president of marketing said, “I think a lot of these problems seem kind of simple … but I think that’s how this whole AI thing is going to be. It can’t be so complicated or inaccessible or expensive or complex—you have to meet the market where the market is, and the market needs help to address shrink.”

Read Hayes, the director of the Loss Prevention Research Council (LPRC) and the co-director of the Loss Prevention Research Team at the University of Florida, said, “What AI is doing is finding things that we might not. It can help us because [on the video], there’s a lot of noise and a lot of boredom.”

Before, employees might have had to watch store tape for hours. Plant said Standard AI can tell an employee exactly when shrink might have occurred. “With AI and computer vision, we can add the actions and transactions concept. I think you can get a lot closer to the prevention of loss.”

Friendly Express implements Standard AI’s technology in one of its stores and is monitoring the experience. Amy Wood, director of enterprise IT at the Georgia-based retailer, said the company installed cameras on its backbar. If an item is removed from that area, Friendly Express should see a corresponding transaction.

stnazkul/Getty Images

and who brought Sultan in to help him figure out why he was losing money. Sultan said, “By the time we came on board and figured out what [employees were] doing, they got them for almost $20,000-plus.” An employee was saying they were filling up the ATM, but the owner never checked to see if there were appropriate, corresponding transactions.

“We noticed [the employees tested] out the waters,” he said. “They start off small and think, ‘Did anybody tell me anything the next day? No? OK, great.’ Then they start going for the big dollar amounts.”

To figure out how to decrease issues with safe drops, Sultan turned to an interesting source: the casino industry. “We suggest everybody look into other industries because all of us business owners have common problems,” he said.

Casinos make employees show their hands (even if the only observer is a camera) whenever they handle cash or chips. Similarly, to ensure there’s no theft happening at Fav Trip, the retailer put in its training manual that management must clearly show what they’re doing with their hands during safe drops— with no fidgeting whatsoever. That way, no one can sneak any money out.

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Now, we just say, ‘I want to learn how they went about it.’

42 MAY 2024 convenience.org

“If we don’t see that transaction occur, then it’s going to create an alert to send to the manager that there was an issue,” Wood said. “But the really cool part is [the technology has] captured images from that time frame for you to be able to determine what happens. Now, instead of looking at 24 hours of data, we can look at 15 minutes. … It’s a huge time-saving technology.”

If there’s an issue, then Friendly Express can match up the data with video before going to an employee. The retailer already has cameras in its stores and currently encourages managers to watch surveillance videos.

So Wood doesn’t think the backbar cameras will be too much of a change for the company’s employees. Plus, Friendly Express tries to educate its employees that, with the more general rise in crime, “This is for your safety, as well,” she said.

“It’s not to be Big Brother and catch every little thing [employees] do,” Wood said, “but it is to ensure that, when there is an issue, we have something to back it up. We have visual proof, and it’s not just an assumption. Right now, we may not have a good view of the area. [Previously] it could have been that you were working with another person on a shift and [the theft] might have been a little bit of a gray area. So we feel like this is just one more tool that we will have to help confirm what issue we have so we can determine, ‘Who actually did this?’ so that there’s absolutely no confusion.”

She said retailers often don’t know an issue has happened until weeks later, and thieves will continue stealing because they realize no one at the company has picked up on what they’re doing.

ADDITIONAL WAYS TO DETER INTERNAL THEFT Regardless of exactly how big of an issue internal theft is, there are a plethora of innovative ideas for limiting it.

The LPRC’s Hayes recommended working to help employees understand that “corporations and companies aren’t just faceless entities—they’re all people.” And they’re operating at very slim margins to serve and provide for the communities where these employees live.

To make sure Fav Trip is hiring trustworthy employees, Sultan makes sure the retailer is thoroughly checking references. The managerial team will call references to verify that a potential employee worked there—and that people who worked with that person have good things to say.

“It might be a little bit of a slower hiring process,” he said, “but it’s worthwhile.”

Still, he goes back to—and emphasizes— what Harrington originally said: Make it clear you’re aware of potential internal theft and can nip it in the bud. “[For us, internal theft] always starts with the newcomers who think they can outsmart us, but it’s also a good thing for us,” Sultan said. “I look at it as a learning curve. Before, it used to be, ‘Oh, my God, how could you do this?’ … Now, we just say, ‘I want to learn how they went about it. How long did it take us to realize what was happening and fire them quickly?’ instead of dwelling on the why, which can help our monitoring staff get trained better.”

Essentially, Sultan wants to create an environment where potential thieves think: “I shouldn’t try my luck here.”

Shannon Carroll is a contract writer/editor for NACS.

JohnDWilliams/Getty Images

“Then it’s a big issue all of a sudden,” she said. “We’re hoping to be more active instead of reactive. I feel like [AI is] going to help us address an issue or determine when there’s an issue so it’s not just, ‘We had this huge loss and there’s nothing we can do about it.’ If we had realized this issue was going on three weeks ago, we could have stopped it before it became a true big issue.”

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A PA R T I N G

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DRIVERS CONTINUE TO FEEL BETTER ABOUT THE ECONOMY, AND THEY

44 MAY 2024 convenience.org

OF THE ARE LOOKING FOR RETAILERS WHO BEST UNDERSTAND THEIR NEEDS.

BY JEFF LENARD AND ADAM ROSENBLATT

T

he latest NACS Consumer Fuels Survey reveals that many Americans are feeling better—though that doesn’t yet mean things are good. On the whole, consumers today are sour on the state of the economy, with 56% of drivers saying they are pessimistic compared to 44% saying optimistic. But this is a noteworthy 10 percentage point improvement compared to one year ago, when 34% were optimistic while 66% were pessimistic.

As it relates to convenience retailing, the newest survey shows several signs that overall consumer behavior is creeping closer to what it was like before the pandemic.

The morning commute continues to see more traffic as businesses are increasingly encouraging workers to return to their offices.

Though inflation remains a fact of life, consumers today appear a little less concerned about gas prices and, in turn, they are less likely to blame their local retailer for the price at the pump.

That’s all definitely good news. But the findings from the 2024 NACS Consumer Fuels Survey also show that the consumer psyche is still shaken four years after the start of the pandemic. Winning customers is still a fight. Here’s a look at how consumers think so you can best meet their needs, grow customer traffic and win lasting loyalty.

NACS MAY 2024 45

GAS PRICES TAKE A BIT OF A BACK SEAT Drivers will always be concerned about gas prices, regardless of where prices are. Despite natural swings based on seasonality and other external factors, gas prices are roughly the same as they were this time last year ($3.38 at the time of the 2024 NACS survey, compared to $3.34 for the 2023 survey).

Overall, 89% of drivers say that gas prices impact their feelings about the economy, and 78% say that gas prices impact their driving decisions. With the price at the pump essentially on par with where it was last year, both data points should be taken as welcome, positive news for attracting drivers—and shoppers.

The survey suggests that inflation may be having an unintended ripple effect on consumers’ sensitivity towards gas prices, as Americans have grown accustomed to rising prices across all parts of the economy.

In prior years, drivers said they would drive significantly less if the price at the pump were around $4.50 and that they would seek out an alternative to driving or dramatically change their behavior if prices hit $5.50. When looking at those same questions in 2024, the mean today is essentially $1.50 higher.

Price that would cause consumers to: seek out alternatives to driving or dramatically cut back

24 .

6 $

$7 .11

Reduce the amount they drive or even change their behavior

For most, buying gas is not a discretionary purchase but rather something requisite to accomplish other things in their lives. To that end, the price of gas remains the dominant factor in where they choose to fuel up.

For every 10 drivers, seven seek out price, two base their decision on location and one is a dedicated loyalist to a specific brand. These factors have held remarkably steady over the past three years.

Which of these factors is most important when buying gas?

About the 2024 Survey NACS has conducted national consumer sentiment surveys since 2007, with a specific focus on fueling issues. The April 2024 issue of NACS Magazine featured a consumer survey looking at attitudes specifically related to jobs, crime and prices. This latest survey focuses more on fuels-related issues.

It was conducted by national public opinion research firm Bold Decision (bold-decision.com); a total of 1,200 U.S. adults nationwide, including N=990 drivers, were surveyed from March 8-12, 2024. The overall margin for error for the study is +/- 2.83% at the 95% confidence level.

When referring to survey respondents, this article uses “drivers,” “consumers,” “Americans,” etc.—they all refer to people who buy fuel at least once a month unless otherwise indicated.

46 MAY 2024 convenience.org

2024

2023

2022

Price

70%

68%

69%

Location

20%

21%

22%

Brand

10%

12%

10%

Despite the above, price is not the sole factor and there are many keys to success for building loyal customers.

More than half of all drivers (55%) say that they have a preference for a certain gas station or chain—and price is but one of many factors, including important in-store attributes.

56% It usually has lower prices 48% Location of a particular store

46% Quality of fuel 39% Loyalty program with store/chain

20% Quality of other items inside the store

19% Quality of prepared food/drinks

19% Quality of employees 18% Restrooms/cleanliness Gas prices certainly are a big reason that drivers go to your store, but there are other opportunities to win them over beyond the price at pump.

LOTS OF OPPORTUNITIES INSIDE THE STORE Thinking specifically about the last time they fueled up, nearly three in five drivers (58%) said they went inside the store.

Which did you do first?

Overall Females Frequent customers Went inside the store, 57% 64% 61% then bought gas Bought gas, then went inside the store

43%

36%

39%

58% of consumers say they also went inside the store the last time they purchased gas.

48 MAY 2024 convenience.org

In fact, most consumers (56%) say that they go inside the store before they purchase gas.

And that’s even more pronounced for females.

Why might so many be heading inside the store first? For many, it’s nature calling. 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 a pressing issue that takes priority over other behaviors.

That also means that the bathroom door is really a second front door for more than one in four of your 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.

Speaking of foodservice, the number of people who purchased a sandwich or meal is nearly double what it was last year: 25% in 2024 compared to 13% in 2023.

And as meals grow in popularity, so do beverages, which consistently remain a leading reason why customers come inside the store.

With the American workforce moving closer towards a post-pandemic, return-to-office world, we see a one percentage point increase in those who are working along with a three percentage point increase in those now commuting at least two days per week. The rise in beverage sales shown below may be from commuters looking to jumpstart their morning with a caffeinated option.

Road Trips Have Gone to the Dogs

Tina Terras && Michael Walter/Getty Images

Why do you prefer a specific gas station or chain?

What did you do the last time you went inside the store? (multiple responses permitted; top 10 responses listed)

Breakfast sandwiches may also be what consumers are grabbing as the morning rush has returned—and then some. A record 27% of drivers say that they tend to buy gas during the morning commute, up five percentage points over the past two years. It’s also possible that inflation-pressed consumers are increasingly open to having a morning meal via a convenience store rather than buying groceries or eating out elsewhere.

46% Bought a drink (fountain or packaged) (+3 vs 2023)

46% Paid for gas at the register 39% Bought a snack (+7) 26% Used the bathroom (+4) 25% Bought a sandwich/ meal (+12)

When do you buy gas?

23% Bought cigarettes/

27% Morning (6-10 a.m.)

22% Bought lottery tickets

36% Midday (10 a.m.-3 p.m.)

13% Used the ATM (-3)

30% Afternoon (3-7 p.m.)

13% Bought gum/mints (+3)

6% Night (7 p.m.-12 a.m.)

11% Bought beer/wine

1% Overnight (12-7 a.m.)

vaping product (-5)

(+3% over 2023)

It’s shaping up to be another busy summer drive season. Nearly two in three American adults (62%) say they are likely to take a road trip this summer, led by 78% of those ages 18 to 34.

The top three reasons for road trips?

70% It is fun/enjoyable • 46% It is an easy way to see multiple destinations • 41% It is less expensive than other forms of travel •

Nearly two-thirds of Americans are pet owners, and half of all pet owners have gone on a road trip with their pet. Moreover, those who have traveled with their pets enjoyed doing so: 71% of Americans road tripping with their pets said it makes the journey more enjoyable, compared to 29% who said more challenging. If you have a dog-friendly store—with treats or toys, dog parks or dog washes—use social media to raise awareness of what you offer those traveling with dogs. And if you have a location that is friendly for those traveling with cats, let’s talk. That’s an interesting story to share.

NACS MAY 2024 49

While new innovations are constantly reshaping the industry, many Americans still prefer the good-old-fashioned way of checking out with a cashier. If presented with the option of a cashier or a self-checkout machine, more Americans pick a real person (46% to 29%). That said, one in four customers (26%) say they don’t have a preference. As we have observed in the past, there are significant variances by age, with younger customers much more likely to embrace a technology-powered and conversation-free experience over a human. By contrast, older customers, as well as frequent customers, are more interested in maintaining their classic experience with a cashier; 51% of frequent customers and 57% of those age 65+ say they prefer a cashier, and for many that relationship likely plays a major role in why they value the store at which they shop.

I Would …

74% Take a left-hand turn

across a busy street to go to the store I like more (+9 over 2023)

73% Drive five minutes out of my way to go to the store I like more (+1)

66% Drive five minutes out

of my way to save five cents/gal.

(-6)

66% Take a left-hand turn

across a busy street to save five cents/gal. (+3)

49% Drive five minutes out

of my way to go to the store offering a special meal or drink discount (+2)

47% Drive five minutes out of

my way to go to the store with a higher quality food offer (+4)

If both options were available, which do you prefer?

Total

Age 18-34

Age 65+

Interact with a live cashier

46%

37%

57%

Use a self-checkout machine

29%

47%

11%

No preference

25%

16%

32%

WHAT THEY THINK ABOUT YOU MATTERS Enhanced offerings help build lasting loyalty among customers. They are more likely to inconvenience themselves to go to a store that they like than one that has the best gas price—and that’s a huge shift in behavior from just a decade ago.

50 MAY 2024 convenience.org

We see sizable a nine percentage point increase in those who would make a left-hand turn to go to a store they like more—yet a six percentage point drop in those who would drive five minutes out of their way just to save five cents per gallon.

Whether or not drivers do go out of their way to visit a store, it’s clear the basics are more important than ever. Safety and cleanliness, the top two attributes, are even more important to consumers than a year ago. As consumers purchase more c-store foodservice, they also expect the quality to be high.

And it’s also important to show that you care about the community, whether by communicating your value offer or your charitable contributions.

Those who are the most frequent customers are most interested in hearing how you care about your local community (45% “very important” among frequent customers, compared to 34% among all customers). In fact, those frequent customers may keep coming back because they already know what you do for the community.

Executive Education

Equipping today’s leaders for tomorrow’s challenges.

From disruption comes opportunity. At this very moment, the convenience industry is rich with possibility. The key to success?

Leaders who can forge a new path. Informed, confident and nuanced leaders are the best asset an organization can have. NACS Executive Education has partnered with world-class, Ivy League institutions — boasting some of the best educators in the world — to provide exclusive education to shape the forward-thinking, determined leaders who will illuminate and seize the opportunities of tomorrow.

convenience.org/NACSExecEd

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How important are the following when it comes to choosing to shop at a specific c-store? (multiple selections permitted; top eight responses listed)

% who said Overall Women “very important” Safety

Frequent customers

70% (+5 over 2023)

78%

66%

Cleanliness

66% (+3)

72%

68%

In and out quickly

51%

53%

56%

Availability of the products

45%

46%

56%

Friendly employees

46%

53%

55%

39% (+8%)

46%

54%

Cares about the community

34%

40%

45%

Loyalty/ rewards program

34%

39%

38%

Quality of food/meals

Want More Info?

NACS has online fuels-related resources that communicate the industry’s voice to consumers and to the media.

Convenience Corner (convenience.org/media/conveniencecorner) Our blog attracts hundreds of thousands of readers.

Some recent transportation-related articles include: • Three Fueling Predictions for 2024 • Does the President Control Gas Prices?

• What It’s Like to Drive an EV for the First Time • What’s Making Gas Prices Rise?

Got a question that you want us to answer?

Send a note to Jeff Lenard at jlenard@convenience.org.

Fuels Resource Center (www.convenience.org/fuels) The online Fuels Resource Center shares updated consumerfriendly content related to gas prices, retail operations and consumer behavior, as well as fun pieces on 9/10 cent pricing and the evolution of self-serve fueling.

Fuels Market News (www.fuelsmarketnews.com) Published by NACS, FMN is the downstream petroleum industry’s trusted source for fuels-related news and information, covering the fuels of today and tomorrow.

52 MAY 2024 convenience.org

The past few pages highlighted consumer preferences and what you can do to grow your customer traffic over the coming months. The good news is that you’ve already done a lot. C-stores are a valued part of their communities.

78% agree

The convenience store closest to my home is an important part of the community.

80% agree

I would be sad or disappointed if the convenience store closest to my home were to permanently close or go out of business. (+4% over 2023)

While pessimism may be the present default for how people feel about the economy, it’s clear that they are favorable to our industry and the valued roles we play in their local communities. This is great news for an industry that continues to evolve and create that convenient, customized customer experience that keeps them coming back.

Jeff Lenard is NACS vice president, strategic industry initiatives. You can reach him at jlenard@convenience.org.

Adam Rosenblatt is the founding partner of Bold Decisions and has been leading NACS consumer surveys since 2009.

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

Revolutionizing age verification at the register and beyond

Optimizing retailers’ digital presence to drive traffic & growth

Belitas/Getty Images

54 MAY 2024 convenience.org

How To Build and Grow Your

Culture Every company has a culture—but is it the one you want?

BY CHRISSY BLASINSKY

A

t NACS, we are serious about our culture. In July 2005, Henry Armour became president and CEO—the third leader of NACS since its founding on August 14, 1961—and brought forth a clear vision for the organization’s culture.

“We focus on developing a culture of constructive behaviors,” Armour said in a Convenience Matters podcast in 2022. “We relish different perspectives and debate. We want different points of view because that allows us to make better decisions.”

“An intentional culture doesn’t just happen, you have to work at it,” he added.

NACS MAY 2024 55

Travis Sheetz (left) and Henry Armour (right)

Leaders make great decisions, but Armour doesn’t believe decision-making is at the core of leadership. “It’s creating an environment in which talented people can achieve far more together than they can individually,” he said, adding that, in convenience, this is where store managers can excel.

“A great store manager creates that environment. It’s role modeling, it’s listening, it’s being responsive, it’s making hard decisions” and it’s being honest, Armour said.

Leaders also have to communicate effectively, especially with their teams.

“There’s downward communication and what I call upward listening because employees want to be heard,” Armour said, adding that they also want to know what’s going on. “They want to know what the new initiatives are, and they especially want to know the why.”

THE VISION BEGINS AT THE TOP Culture can be a nebulous topic. There is no accepted common definition for culture. It’s invisible yet touches and influences everything, according to Mark Miller, co-founder of Lead Every Day. A good, pragmatic definition of culture, he said, is that it’s the cumulative effect of what people see, hear, experience and believe. Whether intentional or unintentional, all organizations have a culture.

Your culture is either by design or default, and the ones that are by default are not healthy.”

Mark Miller, co-founder of Lead Every Day

56 MAY 2024 convenience.org

Miller’s team surveyed more than 6,000 global leaders from 10 countries. It found that most leaders in the U.S. admit culture is the most powerful tool at their disposal to drive performance, but it does not rank high on their list of priorities. More like No. 12.

“Your culture is either by design or default, and the ones that are by default are not healthy,” Miller said at this year’s NACS Leadership Forum.

The 72% of leaders who acknowledge culture is important, yet struggle to work on it, are what Miller calls “stuck in quicksand.”

“Quicksand is anything that is impeding your leadership effectiveness,” Miller said.

“It’s a toxic mix. It includes things like business complexity, distractions, fear, fatigue and even a little success,” he said.

A leader trying to move through quicksand will have difficulty pulling others out. By extension, the teams surrounding the leader are also stuck, Miller said, adding that this is the No. 1 reason why leaders today are not working on culture.

“Leaders in quicksand are not working on culture—they’re working on survival,” he said.

Miller’s book “Smart Leadership: Four Simple Choices to Scale Your Impact” details how leaders can get out of quicksand (this is a CliffsNotes synopsis): 1. Confront reality to stay grounded in the truth and lead from a position of strength.

2. Grow capacity to meet the demands of the moment and the challenges of the future.

An intentional culture doesn’t just happen, you have to work at it.”

3. Fuel curiosity to maintain relevance and vitality in a changing world.

4. Create change today to ensure a better tomorrow.

Next on the journey is getting to a place where culture can flourish. Miller shared several guidelines for building a high-performance culture: Aspire. “You have to be able to share your hopes and dreams for your culture. … We met far too many leaders around the world who did not have clarity of what they were trying to say. ... To inculcate it and sustain it, people have to know what you’re trying to create.”

Amplify. “Always look for ways to reinforce the aspiration”—role modeling, for example, because people always watch the leader. “If you have a clear aspiration and you amplify it well, you will see movement. You will see behavior change.”

Adapt. Constantly work on enhancing your culture by: • Jumping on critical gaps immediately.

• Attacking the toxins, or patterns of unhealthy and unproductive behavior.

• Doubling down on strengths. “Culture is the most powerful tool at your disposal.”

• Introducing capabilities. “You can introduce new things to your culture to make it stronger.”

“You may have a new capability that could position you for the future and strengthen your culture simultaneously,” Miller said.

Hannah Ubl, co-founder of Good Company Consulting

When you think about culture, every single person impacts it.”

PUT YOUR PEOPLE FIRST Good pay and benefits are important, but culture makes the difference.

A 2021 study found that toxic culture was the best predictor of attrition during the first six months of the Great Resignation—it was 10 times more powerful than how employees viewed their compensation in predicting employee turnover, according to MIT Sloan Management Review.

“The way people think about how work fits into their lives is drastically shifting and changing,” said Hannah Ubl, co-founder of Good Company Consulting, at the NACS Leadership Forum.

Remember the golden rule? Treat others the way you want to be treated.

Today, there’s the platinum rule: Treat others the way they want to be treated.

“Think about it as feedback, as recognition. … Communicate with others the way they want to be communicated with. If you’re thinking about how to create a people-first culture, it’s constantly making sure that you’re operating by the platinum rule,” she said.

Leaders of a people-first culture are those who: • Lead with compassion: Meet people where they are and extend grace to others and yourself.

• Treat people as humans, not robots: Prioritize psychological safety—create an environment where ideas are encouraged without the fear of backlash or judgment.

• Lead like a coach: Inspire action, listen more than talk and maximize potential over productivity.

NACS MAY 2024 57

Panelists discussed becoming an employer of choice (below) and community engagement (right).

The way people think about how work fits into their lives is drastically shifting and changing.”

By some accounts, we’ve moved from the Great Resignation to the Great Reassessment, where people are looking for purpose both at home and at work.

“When you think about culture, every single person impacts it,” Ubl said, noting that communication can be the difference between stress and ease. “If we just fixed communication, everything would feel a lot easier.”

A CULTURE OF BELONGING According to McKinsey’s 2021 “Great Attrition” survey, the top three reasons employees quit their jobs were that they didn’t feel valued by their organizations (54%) or their managers (52%) or because they didn’t feel a sense of belonging at work (51%).

“Employees want stronger relationships, a sense of connection and to be seen,” the survey noted.

People want to belong. So much so that conversations about diversity, equity and inclusion have evolved to also focus on belonging, said Katie Mooney, managing director of Seramount. More companies are recognizing that belonging “can inspire productivity and engagement within a culture,” she added.

58 MAY 2024 convenience.org

Ankeny, Iowa-based Casey’s has a team member commitment-based culture that creates engagement and belonging among its 45,000 team members in 17 states. The company’s values statement is on the Casey’s website: “At Casey’s, we believe great companies keep engaged team members by having a strong culture that is founded upon clear values. Our Casey’s CARES culture is built around Commitment, Authenticity, Respect, Evolving and Service.”

According to Nan Thomae, vice president of HR field operations at Casey’s, “We take our values seriously—so seriously that they’re a part of the performance review for all team members, because it takes everyone to create a culture.”

Casey’s conducts engagement surveys of all 45,000 team members, which has an 80% completion rate. The results show how elements of CARES are evolving the team member experience. “Year over year, we’ve seen continued progress in our engagement survey results,” Thomae said.

Colette Matthews, global vice president of customer experience and inclusion executive sponsor at Alimentation Couche-Tard, shared how the global company is creating engagement and belonging through its Women’s Council, which supports underrepresented team members.

“We set an ambition for women in 2018 when we kicked off the Women’s Council, and that was that 30% of women, directors and up, would be represented—and we’ve stayed true to that. Every functional team is tracking that and [is] held accountable,” Matthews said.

She added that every year Couche-Tard’s Women’s Council “celebrates or has two town halls; one is around International Women’s Day, which is a huge initiative for us at Circle K, and the other is around equity.”

CEO INSIGHT:

Dr. Scott Zietlow

It’s hard to imagine Dr. Scott Zietlow being flustered. For years he was a trauma surgeon and a professor at the renowned Mayo Clinic in Rochester, Minnesota. “In that life, I had to bring my A+ game every day,” he said at the NACS Leadership Forum.

His second act: Leading 40,000 co-workers across more than 850 stores as the CEO of Kwik Trip, a company his father ran for two decades. On the surface, there might not be a lot of overlap, but both roles are about making a difference in people’s lives. The trauma surgeon makes an obvious difference: His job is to enter a person’s life at a moment of crisis and redirect that person towards health.

From the standpoint of convenience retailers, “You don’t know how that particular guest’s day has been. It’s the beginning, it’s the end, it’s been great, it’s been terrible, it’s somewhere in between,” Zietlow said. “Half of the country visits our stores on a daily basis, so we can have a huge impact.”

Kwik Trip received more than 2,600 unsolicited comments praising team members for going above and beyond last year—“stories that are very touching,” Zietlow said.

A LEADERSHIP RECIPE The importance of precision is another overlap between the operating room and retail operations. Consider the humble banana. Kwik Trip sells about 150 pounds of bananas per store, per day. Multiply that number by 865 stores and 365 days in a year. It takes operational excellence to deliver that produce across the Midwest in a cost-effective way.

That’s the tip of the iceberg of Kwik Trip’s operational complexity. It is a vertically integrated business, with its own food production facility and all the logistical challenges that come with that. Even its milk program is executed at a high level—from the cow to the store in 24 hours.

A tolerance for risk is part of the recipe, too.

“You need to fail at something. If not, you’re not taking enough risks,” Zietlow said. “You just have to not fail too often, and recognize it early.”

MANAGING CULTURE AND GROWTH Kwik Trip has expansion plans that are both incremental and impressive, with plans to add around 50 stores a year, mostly opting for new builds that expand its footprint one site at a time instead of acquisitions.

Like other expanding retailers, Kwik Trip has to plan to push its culture into each new site. If responsibility for culture rested only with top executives, the bigger the company, the more daunting maintaining culture would be. “We actually look at it differently,” Zietlow said. “It’s everybody’s job.” There’s a sort of peer pressure at play, with everyone expecting more from themselves and each other.

On a practical level, that means looking to seasoned store managers to “take the culture into the new stores,” as key representatives of the company.

“People often ask, ‘How do you put an ROI on culture, on values?’” Zietlow said. Part of the answer for Kwik Trip is its very low turnover, which spiked during the pandemic … all the way to 45%. That figure means Kwik Trip is doing something—or probably a lot of things—right.

Private Label Perspectives Kwik Trip has seen success with its private label program. Zietlow shared a few considerations for retailers as they launch or expand their own private label assortment.

• Have very strong working relationships with your suppliers.

• Work closely with any relevant regulatory agencies. “Sometimes people view those as adversarial.

We choose to work hand-in-hand with them,” Zietlow said.

• If you’re going to produce the products yourself, “It has to be a long game. You’ll have large expenses early on.”

• As a program develops, consider attaching a brand to it and promoting that brand instead of winning on price point alone.

—Ben Nussbaum NACS MAY 2024 59

Show Your Company Has Heart U.S. convenience stores conduct roughly 160 million transactions per day—that means half the U.S. population frequents a local c-store daily. Arguably, no other retail location has the opportunity to effect change within their communities like convenience stores do.

A 2018 NACS survey found that convenience stores contribute more than $1 billion a year to charitable and community groups. “It’s a huge number and likely under-reported,” said Stephanie Sikorski, vice president of marketing at NACS and executive director of the NACS Foundation.

The research also found that companies don’t always feel comfortable sharing all the great things they’re doing within their local communities.

“It’s important for us to continue to tell these positive stories in the community,” Sikorski said. “We have the ability to change the narrative and change what convenience looks like,” as well as to foster belonging among customers and employees.

Here’s what community means to four convenience retailers: • Kevin Smartt, CEO of TXB Stores: “We put a lot of time and effort around creating heart within our company, and it starts with our people, and we’re super proud of that.”

• Nick Ruffner, public relations manager at Sheetz Inc.: “As a family-owned and -operated company, our goal every day is translating that family atmosphere not only to our corporate offices and our stores but also our communities.”

• Olivia Parker, communications and outreach manager at Parker’s Kitchen: “We want to be a force of change in any community that we go into.”

• Nick Triantafellou, director of marketing and merchandising at Weigel’s Stores Inc.: “The community is everything for us. Without our community, we wouldn’t exist. We wouldn’t be where we are today.”

PEOPLE NEED TO BELONG In 1943, American psychologist Abraham Maslow published “A Theory of Human Motivation,” which described a hierarchy of needs for human survival and fulfillment: physiological, safety/security, belongingness and love, esteem and self-actualization.

Basic needs, such as oxygen, food and water, are at the bottom of the hierarchy, or the base of the pyramid. Safety includes things such as health, financial stability and feeling free from harm. The third need encompasses what this article has been discussing: belonging, where a person focuses on the need for a community and for love.

The Harvard Business Review article “What Does It Take to Build a Culture of Belonging?” noted that because the need to belong is universal and fundamental, “focusing on it has the power to draw in the whole workforce.”

I’m reminded of a phrase I’ve heard many times: Choose your hard. Is building culture in the workplace hard? Absolutely. Is going deeper and building a people-first culture and creating a sense of belonging hard? Yes, 100%.

But if you choose not to take this path, what kind of culture will you have?

Consider your hard because you will have a culture—but you may not like it.

Chrissy Blasinsky, digital and content strategist, has been with NACS for 19 years and can be reached at cblasinsky@convenience.org.

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CEO INSIGHT: Travis Sheetz Sheetz is a great place to work. That’s the opinion of the people who matter most— Sheetz employees. The retailer ranked 58th on a Fortune Magazine list of best places to work as judged by actual employees. Among all large retailers it ranked third, behind only Wegmans grocery stores and Target.

How can it maintain that culture as it grows? The answer: “We move the culture with us,” according to Travis Sheetz, the retailer’s president and CEO. As just one example, the company moved 100 managers to Columbus, Ohio, when it expanded into that city. That huge investment shows how committed Sheetz is to maintaining a clear identity internally even as it grows.

At NACS Leadership Forum, Sheetz noted how each CEO of the company has brought a different focus. It’s a combination of who they are as people and what the company needed at the time. For Sheetz, the focus right now is on people. “The business model is good. Our business model works. … we’re growing. We need to focus on people.”

RECRUITMENT AND RETAINMENT The retailer’s executives think in terms of three audiences. The actual in-store customer is just one of the three. The broader community is another one—that’s where future customers and future employees are, and it’s smart to make sure they know about Sheetz and understand how the retailer benefits the communities it operates in.

The third audience is its own team members.

The company thinks in terms of an employee value proposition. What does it offer its own employees, and how can it be sure employees understand the offer? Part of the value proposition, according to Sheetz: “We’re high energy, we’re family-oriented and we really focus on employees.” Another aspect of the value proposition: “We have tremendous growth opportunities.”

Sheetz no longer relies just on store managers to hire people, and instead has dedicated recruiters. “Those resources in the field have really been great for us,” Sheetz said.

INHERENT INNOVATION Sheetz said innovation is inherent to the company’s culture, but it used to be something people did on the side. Everyone had a full plate and squeezed in innovation. “And that worked well for a long time,” Sheetz said.

But with growth, innovation became harder to just squeeze in. The company created an innovation hub in Pittsburgh in 2019. “We needed to dedicate people [to innovation],” Sheetz said. “We wanted new people, outside of the core business, really working independently.”

That doesn’t mean everyone else is shut out of innovating. The separate innovation hub is “not by any means where all or even most of the innovation takes place. We’re still innovating all the time,” Sheetz said.

“Our purpose is to make people’s daily lives easier,” Sheetz said. With an eye on the customer, that led to better facilities and better offers. But that word “people” in the purpose statement can also mean Sheetz employees.

The company has focused on making sure there’s a balance between innovating for the customer and innovating for the team member, with innovations like self-checkout, more flexible schedules or automation enabling team members to do their best.

—Ben Nussbaum NACS MAY 2024 61

Hear A C-Store’s

Managers are the heart of the store,

and retailers are finding the best ways to attract and retain them.

Arthimedes/Shutterstock

BY SHANNON CARROLL

62 MAY 2024 convenience.org

tbeat “

P

eople don’t leave jobs, people leave people,” said Abby Curlin, recruitment coordinator and training developer at Texas-based convenience retailer TXB. As a result, she said, creating a culture where people enjoy coming to work is crucial. “I think environment and culture are kind of the foundation for retention,” she said. “If we’re creating an environment in a culture where people feel valued, they feel seen, they have fun at their job, that’s where retention really gets built.”

Hannah Ubl, the co-founder of management consulting firm Good Company Consulting, said, “It sounds really cliche, but I feel like when people feel like they’re taken care of, they stick around a lot longer—or if they leave, they’ll come back.”

She said that, while paying employees well is obviously important, investing in employees is “a massive differentiator.”

Making it clear to your managers that

you’re committed to their development makes them feel valued During the hiring process, being able to tell potential managers what kinds of growth programs you have can set you apart from your competition, Ubl said.

According to Ubl, development should involve saying to employees, “If I develop you, if you take these skills and go somewhere else, that’s OK. I celebrate you taking the next step in your career. … So come here and we will give you the best experience possible to set you up for future success.”

Ubl has seen plenty of creative ways companies are approaching managerial issues. Some companies in the healthcare industry have started offering schoolhour shifts so parents can drop their kids off, work and pick their kids up. Some of those companies are also telling employees that if their work hours are the only time when they can exercise, the company will pay for their exercise time.

NACS MAY 2024 63

How to Hire for Managerial Roles

64 MAY 2024 convenience.org

Curlin said.

She added that the program provides connection. “As you’re going through training, you know if you have another manager in training that you might want to call on, there is that connection, there is that relationship right there.” And talking about that program during the hiring process can let potential managers know that they’re not just going to be thrown into the deep end and will instead be supported from day one.

TXB also encourages managers to have fun with their employees.

“Whether that’s Wacky Hat Wednesday or wearing your team’s jersey on Fridays, we let them kind of have that store individuality to create some fun within the team,” Curlin said.

TXB has seen more success with some of its programs than it has with upping wages and bonuses—although the retailer follows the industry trends on both. “Monetary bonuses only last so long for us; we haven’t seen [them] really build our bench. … The money kind of only got us so far. People appreciated that, but ... you’re spending most of your day at work, so you need to feel connected to what you’re doing.”

East Tennessee-based Weigel’s found that

Hiring for managerial roles doesn’t have to be complicated, said Good Company Consulting’s Hannah Ubl. A top quality for a leader is that they’re open-minded and approach the role with a growth mindset.

She said, “[Managers] can’t go in thinking, ‘Well, my generation did it this way.’ … So if you can find someone whose instinct is to ask questions, instead of judge, that is one of the most powerful leadership skills.”

Ubl also recommended looking at interview processes. She said behavioral and situational questions—e.g., I’m going to give you an example of something that happens all the time, and you explain how you would respond—are important because you learn how trainable someone is.

But interviews shouldn’t feel like a checklist; interviewees should ask deep follow-up questions to understand a person. Evaluating that interview process might also mean considering providing questions to the potential hire ahead of time. Ubl said that while some people function well on the spot, others can freeze, which doesn’t mean they aren’t a good candidate.

“Providing questions in advance just sets someone up for success and allows you, the interviewer, to get a better understanding of the person so that you can feel like you’re getting more of a great hire right away rather than finding out some more things later.”

Arthimedes/Shutterstock

“

People don’t leave jobs, people leave people.”

FOSTERING CONNECTION TXB’s Curlin said the retailer tries to make sure its managers are connected and have support from others who might be experiencing similar things. “They get their groups together a lot … having weekly meetings so that they have face-to-face time because you are kind of on your own island when you’re running an operation. So having those weekly meetings, having those touch points just to say, ‘This is what I’m struggling with this week,’ or, ‘I took the idea that Emily gave me last week, and I implemented it in my store, and this is a success,’ has been really important.”

For the past month, TXB has been holding virtual manager-in-training (MIT) calls where everyone who is going through the retailer’s manager training program can talk about what they’re doing in a given week. On the call also are members of the company’s senior leadership—from the vice president of operations to Curlin. In these calls, for example, a man­ager can say, “I feel like I didn’t learn lotto as well as I needed to.”

“That’s something we can immediately address the following day just to make sure [managers] know they’re being supported,”

Arthimedes/Shutterstock

it was losing its store leaders to a number of large manufacturing plants in the area. As a result, the retailer had to get creative.

Melanie Wilson Disney, Weigel’s director of human resources, said, “Our assistant managers used to be required to work 55 hours a week. That was just part of the program, and they’d enjoy overtime, but we got a lot of feedback that they’d rather have time off, they’d rather have a work-life balance with 40 hours a week. So we listened to that.” In January, after a company-wide survey, Weigel’s reduced hours—while also raising hourly pay “to be the best in class,” Wilson Disney said.

To make sure Weigel’s remains attractive to current managers—and can attract potential ones—Wilson Disney said the retailer has put together “some pretty robust programs that I don’t think anyone in the industry has ever attempted.” Because it’s still in the works, she wasn’t able to share too many details, but noted the company has a bonus structure that goes all the way down to hourly employees and creates incentives so that all the store’s employees know what the retailer’s expectations are.

NURTURING TALENT “In the past, [we’ve been focused on employees who are] more task-oriented, who can multitask,” Wilson Disney said. “But now, we’re more focused on the people side of things. … A lot of it is personality. And you have to look generationally … we have to navigate what people need and want. So [the ideal manager] for us is someone who is open-minded, who is going to be progressive, who understands that you have multiple generations in their store and understands how to lead each one.”

Linda Sutton, the director of recruiting at RaceTrac, said the retailer has observed that there’s a wider range of qualified candidates available, allowing for more selective recruitment. There have also been store closures that changed the market for external hires, which she said has meant that, “given RaceTrac’s strong brand, we’ve been successful in attracting this talent to our organization.”

She said Covid “transformed how we approach hiring. We recognize that applicants today have higher expectations. Our recruiting team takes the time to understand what each candidate’s aspirations are, as well as

their deal breakers. This focus on relatability allows us to uncover what truly motivates [managers] in their careers and identify potential culture misalignments.”

Like Weigel’s, RaceTrac prefers to hire from within—which Sutton said is what the retailer’s “success hinges on.” The company’s HR and operations departments work together to identify high-potential employees and to prepare them for leadership roles. When internal talent isn’t available, the retailer leverages its “strong understanding of transferable skills from adjacent retail sectors, allowing us to identify individuals who will flourish in our unique culture.”

Sutton added, “Our ideal candidate prioritizes cultural fit—someone we can train on the technical side but who already embodies the leadership qualities and empathy that make a great manager in our environment.”

At TXB, the mix of internal hires to external hires is about 60-40% throughout the entire company, according to Curlin. The retailer’s “top priority” is always to hire internally, so executives will start having early conversations with employees they identify as strong managerial candidates. “We want to lay the foundation that, ‘We see a path for you, and we want to start adding in responsibility.’” That doesn’t just mean promoting directly but moving people in the company to their best fit—recently, TXB had a manager move to its IT department.

“If we’re hiring for the employee who has the attitude and the commitment and the motivation, we will find the right spot for you,” she said. “We don’t want to lose someone just because management might not be their thing.”

But that has meant taking a step back and looking at how TXB approached its hiring.

“

Monetary bonuses only last so long for us.”

NACS MAY 2024 65

IDEAS FROM THE WILLS GROUP Like other retailers, the mid-Atlantic-based and family-owned Wills Group tries to hire internally. But Rayma Alexander, the retailer’s director of corporate communications and diversity, equity and inclusion (DE&I), said the retailer’s location also allows it to “attract talent from a lot of different areas [and backgrounds]—whether that’s people who live in rural or urban areas, people who have served in the military, people who have different education levels.”

“We’re not stuck on whether you’ve worked in the industry before. We’re very open to recruiting from other industries, because they bring other experiences,” she said. “They’re 66 MAY 2024 convenience.org

bringing new skills or a new approach to business than maybe we’ve done traditionally.

So I think it’s a combination of veterans in the industry and people who are bringing new skills and perspectives, as well.”

Alexander said the Wills Group’s support for DE&I, “focusing on this culture of belonging,” has been a game-changer.

A manager who is Indian recently spoke at an employee engagement activity about what Diwali is. A manager who is Muslim talked to fellow employees about why he and others pray at certain times of the day.

“It makes people feel valued and included, and they are helping grow the organization,” Alexander said. “They leave their own sort of imprint on that … [and] it does build morale.”

The Wills Group makes it a point to listen to all sorts of feedback. After hearing how much employees love their pets, the company created a pet insurance program that gets high usage. Alexander said that because people can fall on hard times and need some help, the Wills Group offers crisis grants. Now, the retailer is looking into compassion time off.

She added, “We just lean into our benefits, try to be competitive and create a sense of an inclusive environment where people feel that they have a voice and they are able to be part of the decision-making process.”

Shannon Carroll is a contract writer/editor for NACS.

Arthimedes/Shutterstock

“

We need people who have the right attitude— and we can teach them the industry.”

“We really liked people who knew the industry, [but] we took a step back from that and said, ‘Maybe that’s not the best way for us to go,” Curlin said. “We need people who have the right attitude—and we can teach them the industry. But we can’t teach them to want to come to work. We can’t teach them to want to be here. So we started looking for people who are really passionate about coming in and leading a team and really around that attitude around leadership and executive leadership in a store. And that has made all the difference.”

As a result, TXB has hired managers with various backgrounds—for example, someone who used to run a bank branch is one of its store managers. TXB pitches the opportunity to potential hires as: The store is your business. It’s part of this whole system, but this is yours, and you have to own it. Curlin said, “That leads to a trickle-down effect for us, because then they are hiring staff members who carry around that attitude and same opinion about guest service and make sure the operation is running efficiently and effectively, versus people who’ve [run a c-store] before who know how to run our POS system.”

TXB also tailors its hiring and training to its locations, because it has found that its North Texas stores are very different from its stores in South Texas.

“We as a recruiting team have to be able to look in that market and know what that market responds to, what type of leadership that group needs, and then find it for them,” Curlin said.

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BROUGHT TO YOU BY

POWERED BY

49%

of people cite safety concerns as one of their top three reasons for not wanting a convenience retail job.

61%

of females believe a robbery could occur while they are working.

68 MAY 2024 convenience.org

Portra/Getty Images

22%

of people who might be willing to look at a c-store job currently work in healthcare.

CULTIVATING C-STORE JOBS INTO CAREERS OF

CH ICE The NCCRRC offers an action plan for how convenience retailers can attract prospective employees.

BY LAUREN SHANESY

nly 17% of people would be interested in taking a job at a c-store today or have previously worked at one. Considering that convenience retailers are facing a recruitment and retention problem, and hiring is both costly and time consuming, this stat is staggering for many business owners.

The number came out of the most recent NACS/Coca-Cola Retailing Research Council (NCCRRC) action plan. The NCCRRC brings together convenience retail industry leaders to examine the biggest issues facing the industry and how they can be addressed.

Released in February, “Convenience Industry Action Plan for Becoming an Employer of Choice” looked at ways to attract and retain talent in c-stores.

“Imagine if that was 83% of consumers saying they have no interest in buying your products,” Kevin Lewis, chief growth officer at Alimentation Couche-Tard, said at the 2024 NACS Leadership Forum. “If that isn’t a call to action, then I don’t know what is.”

Through interviews with frontline workers and a survey of 45,000 participants, the action plan uncovered a handful of pain points—competing with the gig economy, misconceptions around safety at work, concerns about the viability of a long-term career and other barriers to entry for employment—that have positioned c-store jobs as unappealing for many workers.

But by addressing these issues, individually at the company level and together as an industry, retailers can broaden the funnel

NACS MAY 2024 69

Holding Hands It’s easy to talk about the individual initiatives a company can implement to help with recruitment and retention, but what’s more important to council members is how the industry can work together to tackle the problems that no one company can solve single-handedly.

A combined industry-wide campaign, as well as continual efforts from individual retailers, will be critical to “achieving the goal of convenience retail being viewed as an employer of choice,” the report wrote.

“Everyone can figure out how to pay more or offer better benefits. But the industry needs to hold hands on the same things, like transport, access to labor pools that are traditionally disenfranchised from working with us, safety and security, media messaging, definitions of transferable skills and regulatory changes,” said Lewis.

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“When I see the opportunity compared to where we are now, I can look on the bright side and say, wow, what an incredible future we will have when we solve this piece,” said Lewis. “This is why all of us in the industry can hold hands together to address these things, because they’re solvable problems.

We just need to acknowledge that they exist and realize that there are opportunities for us to get better.”

SAFETY SOLUTIONS Apart from wages, a perceived lack of safety at work is the top deterrent for people who said that they aren’t interested in a convenience retail job, with 49% of people citing it as one of their top three reasons.

“We always assume when we ask employees what makes them want to work for us, and keep working for us, that pay is number one,” said Lewis. “But it wasn’t number one, and when you look more broadly at the responses of our direct workforce, safety was the single largest reason people said that they were opting in or out of this industry. We have an opportunity to increase our labor pool by addressing this head on and it’s in all of our collective interest to make that happen.”

Physical Safety Respondents were most concerned about physical safety from robberies, with 48% of males and 61% of females saying they believed a robbery could occur while working.

Increasing safety should be top of mind for c-store owners, and the report offered several possible solutions: increasing anti-theft legislation, working more closely with local law enforcement and investing in employee de-escalation training, among others.

“The industry must address both the reality and the perception of safety—the reality being how we take concrete steps to make the store’s shopping and work experience safer,” said Sansolo, citing examples like better relationships with local law enforcement, increasing lighting around store areas and improving the exterior of stores with safety reinforcements. “And then, how do we communicate those improved safety measures to people?”

PeopleImages/Getty Images

of “If you can just move that [17%] number a little, then you’re now talking about millions of people suddenly becoming prospective employees,” said Michael Sansolo, research director for the NCCRRC. There’s a long way to go to remove the barriers to entry for c-store jobs, but the good news is the problems are solvable. The NCCRRC action plan offers retailers a blueprint for addressing the top concerns of prospective employees considering (or not considering) a job in convenience retail.

FG Trade/Getty Images

Technology can also play a role in mitigating crime and enhancing physical safety for frontline workers by detecting potential threats before they occur.

“The technologies include the scraping of both social media and proprietary data sources, as well as nascent artificial intelligence solutions designed to identify intent as people enter a store,” said the action plan, cautioning that safeguards are key when implementing these technologies to make sure they’re being used in ethical ways.

With industry-wide implementation, “smaller operators would benefit both from help in curating which technology solutions to deploy and from collectively negotiated rates, and larger operators would benefit from an industry-wide scan of nascent technologies and the sharing of common practices,” the action plan wrote.

Verbal Harassment Safety includes physical safety in the traditional sense, but the research surfaced the need for a better feeling of emotional safety from anti-social behavior, bullying, harassment and customers just being frankly unpleasant to employees.

Verbal abuse was the second safety concern for respondents, with 40% of women and 46% of men saying they believed it could occur while working.

“There has been a level of anger and rudeness, however we want to call it, in convenience stores, where the clerk merely might say to our customer, ‘we can’t sell beer at this hour of the day,’ and they get yelled at, or the confrontation turns much uglier than it should,” described Sansolo.

Circle K decided to take a stand and try and do somethiing. Several years ago, the company implemented a Kindness Day across its European stores and has seen a positive effect from connecting customers with the staff who serve them.

“The idea was to set a tone in our stores that we expect you to respect each other and respect the folks that are working. It sounds like such a basic idea, but our employees told us this wasn’t happening,” said Lewis.

Safety was the single largest reason people said that they were opting in or out of this industry.”

The initiative focused on PR campaigns and media messaging about what’s acceptable behavior in stores and what’s not. Specifics varied by market and employee feedback about what a Kindness Day would mean to them in practice, but included things like in-store promotions, contests and giveaways for recognition and signage around stores about kindness and treating employees with respect.

“This was a way of getting the message out to our customers and to the public, but by taking the microphone and talking about it, our folks felt like we had their backs,” explained Lewis. “What we found was that our employees were thankful for the acknowledgement that this was going on and that we were doing something about it. They felt appreciated and listened to, and customers who may have been engaging in those behaviors stopped to a large extent. So we had higher employee and customer satisfaction and lower incidents.”

NACS MAY 2024 71

When frontline employees do have to bear the brunt of aggressive customers, the NCCRRC action plan calls for retailers to provide employees with safety training. “Employees would benefit from both de-escalation skills and formalized procedures for bringing in help to address customer issues. Training programs on Civility, Respect and Dignity (CRD) and in conflict avoidance could include both positive engagement and diversion techniques to address anti-social behavior,” the action plan stated.

MISCONCEPTIONS The disconnect between perceptions of c-store safety and reality is also vast. While safety concerns are not to be dismissed, only 21% of people said they actually left a c-store job due to safety concerns, compared to the almost 50% that said they believed crime could occur in the store while working.

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RichLegg/Getty Images

The idea was to set a tone in our stores that we expect you to respect each other and respect the folks that are working.”

The perceived lack of safety stems from media coverage of c-stores, which often zeros in on negative events without promoting the positives, deterring potential employees from the field.

News stories on convenience stores regularly highlight crime. The top five search results for a late 2023 Google search on convenience stores were all crime-related, a sharp contrast with results for searches of grocery stores. According to the report, a Google search for grocery stores tended to highlight weekly sales, new products and new store locations.

Additionally, in movies or tv shows, convenience stores are regularly used as a setting for robberies.

“Safety is a basic need for humans, and you need to feel comfortable and safe in your work environment. If the perception is that you won’t get that at your place of work, then of course you’re not going to want to be part of that,” said Melanie Isbill, chief marketing officer at RaceTrac, at NACS Leadership Forum. “Yes, we have to acknowledge that crime generally is at an all-time high, but unfortunately, in some cases, we get blamed in a larger way than is the reality. We have to figure out how to change that perception, and need to lean into doing some campaigning around the positive things that happen to balance all of the negative things you see.”

With so much positive work being done in their communities, convenience retailers need to be the ones telling their own story, the council said, and work to make sure the countless positive stories about working in the industry get promoted. Campaigns that reshape c-store narratives in a positive light, like Circle K’s Kindness Day, could go a long way in both improving everyday interactions with customers and with improving perceptions of the job.

“The survey respondents told us we’re doing a really good job in some areas, like career trajectory. There’s a deep base of things that people recognize us for, and the quality of work is something that people really enjoy,” said Lewis.

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A BRIGHT FUTURE While only 17% of people said they’d consider a job in convenience retail, the news isn’t all grim. Based on the survey, 23% of people are “persuadable.” These potential employees could be swayed by factors like if the job were close to home and if they had a better understanding of safety, pay and benefits, and opportunities for career progression.

As broadening the funnel of potential employees is a key initiative to solving convenience retail’s labor problem, tapping into this pool of potential employees is paramount.

Culturally, those that work in the broader healthcare and hospitality sectors “care a lot about the same mission that we have of helping others and serving our communities,” said Lewis. “I was surprised at how willing they were to listen to our message and how we have historically not talked to them as potential employees in this industry.”

Messaging is at the root of reaching the next wave of c-store workers if retailers want to become an employer of choice.

“There’s an incredible opportunity for us, because there’s so many people that really enjoy not just the job, but the career in convenience retail. And we have not been successful in bringing that message to a lot of folks. And as a result, they’re barely interested in hearing from us,” said Lewis. “But if you look under the covers at what they really care about, which is a dynamic work environment, working with people they care about, making a difference in their community, helping and caring for people … all the raw materials are there for them to have a really meaningful job and career, but they don’t naturally think of us as the place for that.”

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.

DOWNLOAD THE FULL ACTION PLAN AT www.convenience.org/Research/Customer-Engagement/ NACSCoca-ColaRetailingResearchCouncil 74 MAY 2024 convenience.org

Hispanolistic/Getty Images

Messaging is at the root of reaching the next wave of c-store workers.

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

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

Creating C-Store Leaders of the Future Ready Training Online helps customize your c-store training program to set managers on the path to success.

Times are always changing, and our training changes too.

76 MAY 2024 convenience.org

I

t is one thing to hire a c-store manager. It is something else entirely to train one.

In the multibillion-dollar world of c-stores, the store manager stands head over heels as that key person who keeps the machine running. Yet each store manager’s training can be anything from pedestrian to unpredictable.

“The store manager is the heart of the company,” said Jeff Kahler, CEO of Ready Training Online (RTO). “They can make or break a business.”

That’s why RTO created Gears to Your Career®, an online digital training program for c-store managers in training. The system offers a way to verify, guide and support a structured path for the store manager to learn new skills, said Tom Hart, director of business development at RTO. “Today’s managers are running $2-million operations and have to deal with everything from regulatory issues to leading a team, from labor shortages to product shortages,” Hart said. “The store manager is the hardest work-

ing person in the store, but sometimes they just don’t have the skills to succeed.”

The online training program is designed to educate employees from “the day they’re hired until the day they retire,” said Kahler.

According to Hart, the system is customized and can focus on anything from how to merchandise a new product to how to go out and write your own grocery order. The program then requires that the store manager meet certain milestones, such as passing online quizzes, that demonstrate a solid understanding of each section before moving on to the next one. Each milestone also includes a recap and a progress report on how the newly trained store manager is doing. Programs can stretch from 10 to 14 weeks but are flexible enough to adapt to the needs of any c-store.

“Gears to Your Career is really a philosophy for how we think about learning, training and supporting the manager. It’s a philosophy to implement tools and content that deliver insights to people on the team,” said Kahler.

This article is brought to you by Ready Training Online, a NACS Hunter Club Member.

FOSTERING FUTURE LEADERS Training milestones aren’t just there for managers to check off their list—for RTO, the heart of the initiative is continual learning and development.

“I think most managers have enough training to get through the day and be pretty good at what they do. But in order for them to really succeed and be the type of leaders we want to take us into the future, we need to really focus on making sure we’re thinking about them in every aspect of their development,” said Hart.

“The c-store manager of the future simply can’t be shortchanged on development,” said Hart.

“This isn’t just about training someone on how to write an order or a schedule. We need to have coaching and mentorship opportunities from district managers, and from other store managers within that district. At RTO, we create a learning path that supports mentorship along the way, so trainees know they’re not in this by themselves,” he said. “It’s not just about trying to learn the fundamentals of the job, but about how to succeed as a leader.”

RTO isn’t just listening. It’s responding.

The company is focusing on creating more on-demand training tools, like QR codes and other job aids, for on-the-job situations or anything that might arise in the field.

For example: Using specialized skills, like interviewing, for the first time takes advanced learning. To prepare for this, RTO not only recommends they assign their best practices interviewing video, but also confirm their understanding through an activity assignment with the training manager. “It’s a lot of responsibility and we want to get it right and build their confidence,” said Hart.

RTO also leaves room for honest feedback.

“Let’s encourage employees to say, ‘I’ve never had any training on that’ and then use a tool to identify, ‘Here’s my deficiency, let’s work on it.’ No one is ever fully developed because something could change tomorrow, so this is really a process of improvement and continuous education,” said Kahler.

Kahler estimates that RTO already has helped to train store managers in as many as 25,000 sites. And as the leader and culture

driver of that location, the more successful a manager is, the more successful a store can be.

“The Gears to Your Career program was designed to inspire employees so they know there is a bright future in convenience,” said Kahler. “It’s not just about career potential. It’s about mentoring our store leaders in their journey—after all they are the foundation for our future success in the industry.”

A CUSTOMIZED CURRICULUM RTO can create customized programs for c-stores, with everything from step-by-step training modules for how to complete tasks to video courses on specific topics. When RTO rolled out its newest safety module, training employees on how to de-escalate difficult situations, earlier this year, “it was our most popular release in the company’s history,” said Hart.

“Times are always changing, and our training changes too. We want to support store managers and their teams to be prepared for whatever they might encounter on the job,” Hart said.

The company also teaches how to handle everything from loss prevention and robbery deterrence, harassment and DEI, as well as responsible age-restricted sales like tobacco, alcohol and lottery.

These are extremely sensitive issues, of course, and often lead to the most common legal issues faced by overwhelmed store man-

We built the program based on our knowledge of the industry.

NACS MAY 2024 77

The leaders we mentor today are the foundation for our success in the future.

agers. But specialized training can help to nip that in the bud.

RTO starts with a training template, and then helps retailers customize their program by moving module topics around based on priority level. For one client, this might mean they want employees to learn about loss prevention and safety first, while others might want to focus on culture, facility care and customer service, said Hart.

“I try to build learning paths that create a cadence to instill confidence in people. The more an employee feels like they’re getting their footing in week one, the more success they’ll have. So, I recommend starting with critical areas that deal with safety and compliance, but quickly move on to areas that are going to build confidence and competency,” he said.

With its own production studio and 3,000-square-foot mock c-store set, RTO can customize training modules to a specific brand and mimic its store—the actors can wear a convenience retailer’s apparel, use props like branded coffee cups and have logos visible on TVs or signage.

The studio includes familiar c-store brands including Hershey’s, Five-Hour Energy, Clif Bars, Utz and Stuckey’s, so that most of the products and imagery seen in the training videos appear genuine.

“This way, the content of the video is relatable to everyone who sees it,” said Kahler.

BUILT ON EXPERIENCE While Kahler’s c-store experience is limited, his retail experience is expansive. He worked in the restaurant and pizzeria business for 27 years and is familiar with training pizzeria store managers from his time at Mustang Pizza & Subs.

78 MAY 2024 convenience.org

Kahler said he got the initial inspiration for the training videos on a flight way back in 1997, when he listened for the first time to a video featuring the president of American Airlines thanking each passenger for flying American.

“I remember asking myself: How could I speak to each frontline member of my pizzeria?”

His life passion has always been in developing people. Though only 17 years old at the time, he found himself running Mustang Pizza, a then-$1 million per unit pizza chain, that was competing for delivery against industry giants like Domino’s and Papa John’s. Training his employees—particularly the store managers—to be the best in the business was critical.

“I learned how to train by listening to my employees,” he said.

He discovered that finding out what a store manager doesn’t know can be just as important as finding out what they do know.

Then, in 2009, while at a NACS event, he met Tom Hart—who, along with his operations team, had previously developed a manual version of the Gears to Your Career training program.

The initial training content was developed

by Hart, who has extensive convenience retail experience from his time working at Store 24, a 90-store convenience chain in the Boston area. Hart served as a Store 24 store manager, and then became a district manager before eventually working his way to chief operating officer. Through his experience, he personally learned about the need for consistent training videos for all c-store managers.

“We built the program based on our knowledge of the industry, not based on our knowledge of software,” said Hart.

“The leaders we mentor today are the foundation for our success in the future. We feel a sense of urgency as we see the challenges unfolding. The expectations are so high in technology advancements, foodservice innovation, customer experience, along with new safety challenges – and that all centers around the person leading the store team – the store manager. That’s what gets me so excited when I start each day here at RTO. The opportunity to support their career success in convenience. It’s both a calling and a privilege.”

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.

NEW FLAVORS

BODYARMOR BODYARMOR FLASH I.V. and BODYARMOR ZERO SUGAR

REACH FOR REAL HYDRATION

Rehydrate in a flash with BODYARMOR FLASH IV formulated for faster and longer-lasting hydration that helps boost your immune function with zinc and vitamins B and C. It’s your go-to for rapid rehydration, with 2290mg of electrolytes, natural flavors and sweeteners, and coconut water. It’s hydration in a FLASH! Also, introducing BODYARMOR ZERO SUGAR. A new, better-for-you sports drink with ZERO sugar and ZERO grams of carbs and all the electrolytes, antioxidants, and vitamins you know and have come to expect from a BODYARMOR sports drink. BODYARMOR ZERO SUGAR provides real hydration to get you through any game, intense workout, or keep you going throughout your busy day. Reach for real hydration with BODYARMOR ZERO SUGAR. www.drinkbodyarmor.com 80 MAY 2024 convenience.org

NEW TO THE INDUSTRY

Kretek International, Inc. Djarum BLISS Filtered Clove Smokes

Kretek Rolls Out Djarum Bliss Nicotine-Free Clove Smokes

Djarum Bliss and Black Bliss zero-tobacco filtered smokes offer nicotine-free, hemp-free true clove taste and aroma. The amazing clove and coffee blend of Djarum Bliss Java and traditional Djarum Bliss Special each deliver 40 years of clove enjoyment. The six Djarum Bliss flavors come in flip-top 20-packs for loyal clove smokers to choose from. More than 60% of surveyed Djarum smokers said they wouldn’t miss the nicotine. Djarum Bliss 20-packs are not subject to tobacco excise taxes in most areas. It’s not too early for zero-tobacco alternatives.

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 MAY 2024 81

NEW FLAVORS

Stone Gate Foods Tater Kegs

THE TATER THAT’S GREATER

Tater Kegs are shredded potato mixed with delicious flavors. All the best parts of a baked potato in the perfect handheld package. From the freezer, to the fryer, to the customer.

Serve them in a variety of different ways and in many different applications. Great for to-go. Tater Kegs have a hold time of up to 4 hours under heat lamps.

With all the uncertainties in the world today we should be able to be certain that our food always has great flavor, and Tater Kegs provide that comfort in every bite!

Tater Keg flavors include Bacon Cheddar Chive, Cheese Bomb, Bacon Jalapeno, Buffalo Chicken, Crab Feast, Chorizo Burrito, Breakfast Skillet & The Reuben.

Request samples today at www.taterkegs.com!

NEW FLAVORS

NEW FLAVORS

GALLO

GALLO

High Noon Tequila Lime 700ml

ViBE Peach & Mango

High Noon Tequila Lime Big Can

NEW ViBE Flavors are Here!

High Noon is the #1 Spirits Based Hard Seltzer, and is the perfect grab & go drink for any occasion. Single Serve RTD beverages are continuing to grow and are typically shopped for immediate consumption. With the High Noon Big Can’s unique re-closable lid, consumers will be able to reseal their cans to prevent spills when on the go. Make sure High Noon Big Cans are merchandised in cold boxes to capitalize on this grab & go occasion!

ViBE by Vendange is capitalizing on growing consumer demand as more full-flavored & fun beverages have been added to the ViBE lineup. These fun fruity flavors are packed into a convenient Tetra Pak®. Each pack holds three 5.6 oz beverages, contains 12% alcohol, and has 60% less carbon footprint than the same size in glass. Merchandise these new ViBE flavors in the premixed cocktail section of the cold box to give consumers an easy grab-and-go option.

82 MAY 2024 convenience.org

Conference: October 7-10, 2024 Expo: October 8-10, 2024 Las Vegas Convention Center

We’re back in Vegas!

ready to bring it!

The NACS Show gives you four dedicated days with your convenience community to learn from your peers, co-explore the latest products and leave ready to conquer another year of owning convenience!

Registration is Now Open! nacsshow.com

Scan now to register!

GAS STATION GOURMET

Family Focus Helps Deli Flourish At Blake’s Deli, seafood specials and southern cooking attract customers.

BY AL HEBERT

T

here are over 150,000 convenience stores in the country, and many of them are alike. But it would be hard to replicate the close family feel and culture at Blake’s Deli in Louisiana, where the owners of the second-generation family business make customers and employees alike feel like they’re right at home.

Brothers Randy and Bubbie Robichaux took over the company their father Blake McDonald started more than forty years ago, and now own two locations—one in the Adventure Truck Plaza in Thibodeaux, Louisiana, and the other in a truck stop in Vacherie, Louisiana.

Forty years after starting the deli in the 1980s, Blake himself can still be found cooking its food each day. His homecooked southern menu and weekly specials draw in customers for breakfast burritos, the deli’s famous po’boys and seafood plate lunches.

At Blake’s Deli, it’s all about making the customers feel like part of the Robichaux family too.

“We have great customer service. It’s a small company, so it’s easy to be hands on. My father goes to every store each day.

You can’t do that at a big company. People that work for us care,” said manager John Henry Robichaux, Randy’s son.

84 MAY 2024 convenience.org

IT STARTS AT THE COUNTER Good employees create a better environment for customers, and with many family members working together, a family feel permeates the store. In addition to the Robichaux’s, many employees are also friends or family members of each other.

“At one store, we have a manager whose two daughters work there also,” John Henry said. “We hear that people want to work here because we’re so hands on. Not every convenience store can do that. I manage one store, but go to all the stores to meet new employees.

I like to show our employees that we care and take pride in our work. It helps them care too.”

SUCCESS WITH SOUTHERN COOKING Blake’s Deli was started by McDonald in the mid-1980s, and you can still find him cooking its food each day. In the Deep South where it’s all about the food, you have to have a great menu if you’re going to compete.

Bubbie’s son, Nick Robichaux, general manager of both Blake’s Delis, drove the evolution of the food program. “We’ve changed so much in the last ten years,” he said. Previously, the store didn’t have much variety and everything was tailored to grab & go options.

But after he attended his first food and fuel expo in Biloxi, Mississippi, Nick added the store’s first food gamechanger—a bigger hot box.

“We loaded it with red beans, white beans, jambalaya, fish and chicken tenders, expanding the grab and go section,” he said. “We offered a lot [of options], so we focused on streamlining our menu.

We cut out fried liver, gizzards and onion rings. We couldn’t keep up everything with the labor force,” Nick recalled.

THE MOST IMPORTANT MEAL OF THE DAY Breakfast is busy in these industrial areas and is a popular meal for the store.

Left: Blake McDonald, left, and his grandson, Nick Robichaux, right, are at the heart of the food program

“We start at 4AM. Our number one sellers are the breakfast wraps and breakfast burritos, which we’ve been making for about two years. It’s so easy to eat in the car on the way to work,” said Nick. “There’s one ingredient that makes them really good—but I can’t give away the secret.”

In the hotbox, customers have a choice of grits, eggs, sausage, smoked Cajun sausage, bacon, toast or a biscuit.

“We have a lot of regulars at both locations, but also see a lot of new faces,” said Nick. “Our customers are people going to and from work, and a lot of people work in the [nearby] plants.”

PLATE LUNCHES AND PO’BOYS Blake’s became well known for its po’boys—a sandwich on French cut bread, loaded with mayo, pickle, tomato and a choice of protein, often including ham, roast beef or fried seafood.

And in a town where seafood is king, the overstuffed shrimp po’boy is Blake’s most popular menu item. “Mr. Blake started that in the 80s. It’s almost a pound of shrimp. It’s popular yearround,” Nick said.

The roast beef po’boys are also a hit, and Blake’s makes its own roast beef each day, shredding it by hand and also using it to make homemade gravy. The deli outsources the bread baking, but it’s baked fresh each morning, said Nick, noting that “bread is the most important ingredient in a po’boy.”

In this part of the world, customers also love Blake’s plate lunches, which Nick said saw a huge bump in popularity because of its to-go nature during Covid.

“We always did them, but not to the magnitude we do now. Customers found out we had good, home cooking,” he said. “Seafood Friday is our most popular day, and the special is shrimp stew, served over rice with potato salad, sweet peas and fried fish. We also do a seafood stuffed potato, shrimp fettuccine and a shrimp and sausage jambalaya.”

RESTROOM RENOVATION If you’re in the c-store business, then you know how important and essential clean restaurants are to customers.

Cleanliness is the first priority, but an upscale restroom can be surprisingly otherworldly for customers. And Blake’s

visitors are sure to be surprised by the level of design detail at the deli’s Thibodeaux location.

Right after Hurricane Ida hit the area hard in 2021, Blake’s renovated its bathroom with decorative tile, using ceramics to cover the walls all the way up to and on the ceiling.

“It’s much easier to keep up with the maintenance,” explained Nick. “Customers from time to time express how much they appreciate the attention we give to the restrooms. We check them twice every hour, all day. I learned that from NACS.” NAVIGATING HIRING CHALLENGES Blake’s is going through staffing challenges like most other c-stores, said Nick.

“I don’t think there’s a secret to fixing it,” he said, “but we are in there working with our people. We don’t just throw them in and say ‘run the store.’”

It all comes back to the family-oriented nature of the company, which Nick said is one of its keys to success.

“I have [employees] who have been with me longer than I’ve been with the company. We are with the staff more than we’re with our own families. Showing them how to be a member of our team is part of the training process.”

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

NACS MAY 2024 85

CATEGORY CLOSE-UP PACKAGED BEVERAGES

Thirst Quenchers Packaged beverages remain key for c-stores as innovation beckons consumers.

Jonathan Knowles/Getty Images

BY TERRI ALLAN

86 MAY 2024 convenience.org

43.96% The average gross margin % for packaged beverages in 2022.

dkidpix/Getty Images

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

If there’s one thing universally available in convenience stores, it’s packaged beverages. According to Emma Tainter, research analyst at NACS, “99.9% of convenience stores sell packaged beverages.” As a result, it’s hard to think of a more vitally important category to the channel than the one that drives in-store traffic, often leads to bigger shopper baskets and encourages c-store loyalty. Indeed, Tainter said, “packaged beverages have been a top-performing category in terms of sales and gross profit growth over the last 10 years.” In 2022 alone, packaged beverages comprised 17.2% of in-store sales and 21% of in-store gross margin.

And packaged beverages’ strength continued in 2023. Through November, per store, per month sales outperformed those of the same period in 2022, and at press time the 2023 numbers were likely to surpass the year-earlier average of $37,500 per store, per month. “Packaged beverages is one of the few categories that typically remains steady year over year,” explained Tainter, noting that the segment isn’t impacted by time-of-day variants, with products like carbonated soft drinks (CSDs) and energy drinks selling well throughout the day.

Bryan Santee, chief commercial officer at PepsiCo Beverages North America, said that a resurgence in business and leisure travel in 2023 and consumers spending more time away

from home aided the category. “People shopped more outside of traditional grocery stores, and that raised the bar for convenience stores as consumers looked for better-for-you options and new flavors,” he said.

While there are eight packaged beverage subcategories, the two biggest— CSDs and energy drinks—combine for more than half of total category sales.

The two subcategories are running “neck and neck” for the lead based on currently available per store, per month sales in 2023, Tainter said, each accounting for approximately $10,500 in average sales.

ENERGY DRINKS SURGE Energy drinks, driven by new brands and innovation within established labels, continue to gain ground in c-stores. Through November, per store, per month sales of energy drinks easily outperformed those of the same 2022 period, according to NACS CSX data. Tony Guilfoyle, executive vice president, sales, North America, at Celsius Holdings, reported that dollar sales of energy drinks surged 15% in c-stores last year. According to Guilfoyle, “Celsius was the No. 1 driver,” accounting for 39% of the growth, as sales of the brand skyrocketed 173%.

Celsius is now distributed by PepsiCo, a move that Guilfoyle said has enabled national coverage and placement in independent c-store accounts. Earlier this year, 7-Eleven named Celsius its 2023 non-alcohol supplier of the year.

C-store operators concur that energy drinks are thriving. At Wesco stores in Michigan, dollar sales of energy drinks jumped 27% last year, Jason Grimm, category manager, packaged beverage, reported. Similarly, at TXB stores in Texas, “energy drinks by far were one of the biggest trends as new brands grew dramatically,” Ben Hoffmeyer, vice president, marketing and merchandising, said.

In addition to Celsius, Hoffmeyer pointed to upstart brands like

Industry Sales

% of In-Store Sales

16.56% 17.20% 2021

2022

Avg. Sales/Store

$34,056 $37,496 2021

2022

Source: State of the Industry Report® of 2022 Data

NACS MAY 2024 87

CATEGORY CLOSE-UP PACKAGED BEVERAGES

Package Beverage Sales Per Store, Per Month (Jan 2020-Nov 2023)

n 2020

n 2021

n 2022

n 2023

$46,141

$50,000 $40,000 $30,000 $20,000 $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.

88 MAY 2024 convenience.org

Prime, C4, Ghost, and Alani Nu as those gaining share within the energy subcategory. Unique flavors are also trending, Hoffmeyer said, as are co-branded offerings, like C4 Skittles, Ghost Warheads and Ghost Sour Patch Kids. Meanwhile at Tank-N-Tummy c-store in Cleveland, Oklahoma, energy stalwarts like Red Bull, Monster and Rockstar are the overall heavy lifters in the cold box, according to owner DeAnn Tracy, as consumption occasions expand. “People drink energy drinks in the morning, and then come back and drink them in the afternoon,” the retailer said.

Through November, per store, per month sales of CSDs were also outperforming year-earlier trends. Perhaps the biggest trend within CSDs is the growing popularity of zero-sugar beverages, and marketers have responded in kind.

Last year, PepsiCo reformulated Pepsi Zero Sugar, and according to Santee, the new version is “outpacing the old formula across the board.” Other zero sugar options from the company include Mtn Dew Pitch Black and Starry. At TXB, Hoffmeyer said, “zero sugar has become a staple requirement on new items,” while “indulgent” soft drinks like Dr Pepper Strawberries & Cream have been well received too.

KEEPING THINGS FRESH Innovation has long been instrumental to cold-box sales and packaged beverage marketers continue to churn out new offerings. Earlier this year, The Coca-Cola Company launched Coca-Cola Spiced and Coca-Cola Spiced Zero Sugar, its first new permanent flavor in years.

New and relaunched CSDs from PepsiCo, meanwhile, include Starry and Pepsi Wild Cherry, along with the recent national rollout of Mtn Dew Baja Blast.

Starry is particularly resonating with Gen Z consumers, said Santee, pointing to their high interest in lemon-lime flavors. Moreover, the recent relaunch of Pepsi Wild Cherry was “designed with millennial females in mind, as they’re driving flavored cola growth,” the executive continued.

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The Power of CSX Data

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We’re betting big on categoryspecific growth in the water, energy and sports segments.”

90 MAY 2024 convenience.org

Within the energy subcategory, “we’re seeing a shift from traditional energy drink flavors to fruity, confectionary flavors, or more distinct flavor profiles,” Guilfoyle said. Seasonal and limited-time-only flavors are also making inroads. “Alani Nu’s Witch’s Brew and Red Bull’s Winter Edition in pear cinnamon had strong sales as guests gravitated to new LTO flavors,” Hoffmeyer reported.

Packaged-beverage innovation has also included a number of crossover drinks, beverages that don’t necessarily fit snugly in any one subcategory, as well as the expansion of established brands into new subcategories. PepsiCo, for example, recently added the energy drink Fast Twitch from Gatorade and Gatorade water. “We’re betting big on category-specific growth in the water, energy and sports segments,” said Santee. Gatorade water, which rolled out in c-stores in the first quarter of 2024, is “the first-ever unflavored water to support all-day hydration for active consumers and is electrolyte infused for a refreshing and crisp taste,” Santee said. With the new entries, he added, “We saw more people turning to convenience stores for Gatorade and snack purchases in 2023, highlighting how these innovations can fuel growth for retailers.”

Rockstar energy drink, meanwhile, has crossed into the functional energy space with the recent introduction of Rockstar Focus, claiming an “energy and mental boost.”

Better-for-you offerings continue to gain share in the cold vault, whether from established players or newcomers.

According to Santee, PepsiCo is working to reduce added sugars across its beverage portfolio with the goal of shifting a

“significant portion” of its beverage portfolio toward lower added-sugar levels.

“We’ve set a goal to achieve 100 calories or fewer from added sugars per 12 oz serving in at least 67% of our beverage portfolio by 2025,” he revealed, with brands like Pepsi Zero Sugar and Starry Zero contributing to the mission. At Celsius, Guilfoyle said that the brand’s better-for-you attributes are “critical” to its success. “Consumers are looking for something different, and Celsius’s innovation and sugar-free offerings answer the call,” he said.

Functional sodas are increasingly appearing on c-store shelves. Olipop, for example, is now available in most Casey’s, Kum & Go and Plaid Pantry stores, as well as West Coast locations of 7-Eleven, according to Andrew Steele, vice president of sales, c-store and drug, at Olipop Inc. He added that expansion with an “iconic East Coast c-store” was planned at press time. “As consumers are increasingly searching for betterfor-you options across the board, our presence in c-stores has been very well received,” Steele said. “This positive response has influenced our strategy to continue expanding into additional convenience retailers and locations.” With sodas one of the most popular items in c-stores, “we’re excited to provide a healthier option that doesn’t compromise on taste for shoppers,” Steele said.

At Wesco stores, “Customers are definitely looking for better-for-you beverages,” noted Grimm. As a result, key brands like Celsius and Gatorlyte are registering double- and even triple-digit sales gains, the retailer said. Similarly, Hoffmeyer noted that Celsius is gaining share at TXB, while enhanced functional waters like Bai and Propel have also experienced strong growth.

PROMOTIONAL AIDS With packaged beverages so key to virtually all c-stores, promotional and merchandising support are impera-

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

Avg. Sales/Store

Avg. GP$/Store

Gross Margin %

2021

2022

2021

2022

2021

2022

2021

2022

Carbonated Drinks

26.3%

26.0%

$8,962

$9,750

$3,242

$3,648

36.18%

37.41%

Energy Drinks

24.6%

25.2%

$8,381

$9,413

$3,517

$4,057

41.96%

43.10%

Sports Drinks

15.0%

16.4%

$5,108

$6,166

$2,203

$2,729

43.14%

44.26%

Bottled Water

12.2%

12.0%

$4,155

$4,516

$2,251

$2,454

54.18%

54.35%

Iced Tea, Readyto-Drink

6.5%

6.0%

$2,208

$2,247

$1,041

$1,101

47.14%

48.98%

Other Packaged Beverages

6.4%

5.8%

$2,178

$2,180

$905

$952

41.54%

43.66%

Juice/Juice Drinks

6.4%

5.8%

$2,191

$2,167

$1,031

$1,041

47.03%

48.05%

Enhanced Water

2.6%

2.8%

$873

$1,057

$409

$501

46.85%

47.41%

100.0%

100.0%

$34,056

$37,496

$14,599

$16,482

42.87%

43.96%

Packaged Beverages

Total

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

Check out the latest industry data in the NACS State of the Industry Report® of 2023 Data, available at convenience.org/store.

92 MAY 2024 convenience.org

Nadya So/Getty Images

Energy drinks by far were one of the biggest trends as new brands grew dramatically.”

tive to drive in-store traffic and build bigger baskets. “The shopper journey begins well before customers arrive at the store, so omnichannel marketing is one of the biggest ways to boost sales,” said Santee. “Starting with digital communications that drive foot traffic to signage in and around the store—from the curb to cold vault—there are many ways to elevate the customer experience and expand on touchpoints along the path to purchase.”

At Wesco, loyalty members can often save at the pump via special offers on packaged beverages, Grimm noted.

Displays and secondary placements, meanwhile, are successful tools at Tank-N-Tummy and TXB, Tracy and Hoffmeyer said. “We have different points of interruption beyond just

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CATEGORY CLOSE-UP PACKAGED BEVERAGES

Zero sugar has become a staple requirement on new items.” the cooler vault,” the Texas retailer explained, such as floor coolers near the checkout area featuring hydration drinks, water, energy drinks and teas.

But perhaps the most effective sales tactics for packaged beverages, the retailers agreed, are deals on multiples.

With hot weather in Texas in 2023, Hoffmeyer said that TXB “experienced more guests taking advantage of multibuy promotional offers such as ‘buy 2,

Contact Information

Page

Altria Group Distribution Company...........Inside Front Cover AGDCTradeRelations@Altria.com www.altria.com www.tobaccoissues.com Beamer x SmokeHouse Distribution................................................. 15 www.beamersmoke.com BODYARMOR | POWERADE................................................................. 80 www.drinkbodyarmor.com www.powerade.com Chester’s International..........................................................35 1-800-646-9403 www.chesterschicken.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

Kretek International.......................................................................... 81 www.kretek.com Liggett Vector Brands LLC......................................................39 (919) 990-3500 www.liggettvectorbrands.com Mondelez International...........................................................7 www.mondelezinternational.com Monster Energy Company.....................................................81 www.monsterenergy.com MOOSOO Corporation........................................................................ 89 www.moosoo.com NACS Executive Education Programs 2024....................................... 51 www.convenience.org/Education/NACS-Executive-Education

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

Coca-Cola Company...............................................................73 (800) 438-2653 www.coca-colacompany.com Conexxus............................................................................................ 13 www.conexxus.org Diageo Beer Company USA .............................................................. 93 www.diageo.com E&J Gallo.................................................................................82 www.gallo.com Johnsonville Sausage Co.................................................................. 29 www.johnsonville.com

94 MAY 2024 convenience.org

Terri Allan is a New Jersey-based freelance writer, specializing in the beverage industry.

She can be reached at terri4beer@aol.com.

NACS Industry Advancements, THRIVR & TruAge............................53 www.convenience.org/THRIVR www.mytruage.org NACS 24/7 Day................................................................................... 95 www.conveniencecares.org NACS Show 2024 Registration Open.................................................83 www.nacsshow.com

Contact Information

Page

Polar King International Inc..............................................................41 (866) 576-7645 www.polarking.com www.polarleasing.com www.polarkingmobile.com Premier Manufacturing.................................................. 5, Back Cover (636) 537-6800 www.gopremier.com Ready Training Online.......................................................... 79 (800) 247-8514 www.readytrainingonline.com Stone Gate Foods.............................................................................. 82 (952) 445-1350 www.stonegate-foods.com Swedish Match North America LLC (ZYN).............................. 9 (800) 367-3677 www.smna.com Swisher International Inc............................Inside Back Cover www.swisher.com THRIVR................................................................................................67 www.convenience.org/THRIVR

NACS SOI Talent Insights Dashboard.................................................75 www.convenience.org/Research

Trion Industries................................................................................... 3 (800) 444-4665 www.triononline.com

NuVue Foods Inc. ............................................................................... 91 www.18thstreetfresh.com

Verifone Inc............................................................................43 www.verifone.com/en/us

Pace-O-Matic..........................................................................47 www.paceomatic.com (770) 441-9500

samuelnielsen/Getty Images

ADVERTISER INDEX

get 1 free’ or ‘2-for’ buys to stretch their purchasing power.”

Multibuy promotions, along with the chain’s line of private-label drinks, are expected to continue to drive sales of packaged beverages at TXB this year, Hoffmeyer noted. Innovation will also remain a factor for the category. Led by energy and hydration drinks, “We expect to see the continued blurring of lines across subcategories,” he said.

CELEBRATE 24/7 HEROES Convenience retailing industry unites to honor local heroes supporting communities 24/7/365.

Now in its sixth year, 24/7 Day (held July 24) is the only day that celebrates the convenience store industry. The NACS Foundation Response Relief program’s signature event celebrates and recognizes the first responders, medical personnel and Red Cross volunteers who are there for their communities during times of need. The event unifies the collective efforts of more than 30,000 convenience stores that honor and thank those who work 24/7 through disaster relief donations or promotions specific to their business, like a hot cup of coffee, cold beverage or a breakfast sandwich.

There is no cost to join the 24/7 Day celebration. The NACS Foundation does all the legwork in terms of digital content, media and support alongside participating retailers and suppliers to promote these activities.

To join the effort, visit 247Day.org

#conveniencecares The American Red Cross name, emblem and copyrighted materials are being used with its permission, which in no way constitutes an endorsement, express or implied, of any product, service, company, opinion or political position. The American Red Cross logo is a registered trademark owned by The American National Red Cross. Should you require a receipt, please donate by calling 1-800-RED CROSS (1-800-733-2767), or give online at redcross.org

BY THE NUMBERS

The Background on Background Checks 75% for full-and-part-time sales associates. Beyond requiring time and money, these checks can sometimes inject unfair bias into the hiring process.

Some companies have started to consider a more skillsbased hiring approach. Aptitude and situational judgment tests were conducted by just over 20% of companies hiring for store manager and assistant manager positions, and around 15% of companies used these tests when hiring fulland part-time associates.

The most recent addition to the screening metrics tracked by the Dashboard is a social media screening. While the portion of companies using social media screenings is currently small, with 16% of companies reporting that they survey store managers’ digital footprints before hiring, it’s likely that usage of this screening tactic will grow.

Store Manager

Assistant Manager

Full-Time Sales Associate

Part-Time Sales Associate

Criminal Background Check

94%

87%

75%

75%

DMV Background Check

32%

28%

7%

7%

Verification of Credit History

10%

8%

0%

0%

Verification of Education Credentials

8%

7%

5%

5%

Verification of References

49%

41%

34%

32%

Drug Testing

30%

31%

22%

19%

Aptitude Tests

22%

21%

14%

16%

Situational Judgement Tests

21%

22%

15%

15%

Personality Tests

25%

22%

16%

15%

Values Tests

16%

19%

13%

13%

Social Media Screening

16%

12%

11%

10%

The NACS State of the Industry Talent Insights Dashboard® provides the most recent convenience human resource benchmarking data available and highlights the key categories of compensation, benefits, recruitment and turnover.

The Dashboard evolved from the long-standing NACS State of the Industry Compensation Report® and continues to feature data collected by convenience retailers.

96 MAY 2024 convenience.org

matdesign24/Getty Images

Recruiting excellent employees is an evergreen challenge for HR professionals across the country. In the convenience channel, the costs associated with high turnover rates at the store level exacerbate that challenge even further.

According to the NACS State of the Industry Talent Insights Dashboard® of 2023 Data, the cost to hire a store manager averaged $3,015 and the cost to hire a full-time associate was $1,294. This amount includes everything from interviews to training to multiple forms of pre-employment screenings.

The most common hiring screening is a criminal background check: 94% of companies conducted them for prospective store managers, 87% for assistant managers and

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