NACS Magazine February 2021

convenience.org | FEBRUARY 2021

RISING STARS

Covenience catagories that shined bright in 2020 can still be profitable.

2021 U.S. CONVENIENCE STORE COUNT FOODSERVICE SAFETY

How the right equipment can help

Local, State and Federal tobacco taxes and restrictions on the sale of tobacco products can hurt your business. Governments often pass new laws quickly, so you need to stay informed about what is happening in your area. You and your business matter and making your voice heard is crucial to our success in fighting for fair tobacco policies.

Take this survey to learn more about how you can get involved

TAKE SURVEY CLICK HERE

Provided on behalf of Philip Morris USA, U.S. Smokeless Tobacco Co., John Middleton, and Helix Innovations. Š2021 Altria Group Distribution Company | For Trade Purposes Only

FEBRUARY 2021

28 34 36 42 48

Rising Stars of the Pandemic Convenience retailers look to leverage topperforming categories of 2020.

.S. Convenience Store Count U The industry fared well despite an eventful year, but the number of small companies continues to decline. ake It Till You Make It B Entice shoppers with great aromas, packaged products and LTOs. quipped for Success E Equipment pros stress sanitation protocols, touchless innovations and limited customer access to assure foodservice safety. race for Liability Lawsuits B Plaintiff’s attorneys are courting employees who contract COVID-19 on the job or bring it home.

Cover Art by Beyond Definition STAY CONNECTED WITH NACS

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CONVENIENCE.ORG

FEBRUARY 2021 |

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FEBRUARY 2021

Word of mouth is gold here, and that’s how we’ve grown the most.

Salty snacks continues to be one of the most important categories in the convenience-store channel.

IDEAS 2 GO | P.24

P.66

06 Convenience.org

54 Cool New Products

08 From the Editor

60 Gas Station Gourmet

16 Good Work 18 Inside Washington

The 117th Congress ushers in historic changes and a shift in power; policymakers view electric RINs as a tool to move from liquid motor fuels to electrification of the transportation system.

24 Ideas 2 Go

Uptown Kitchen & Food Mart treats its customers and staff as family.

62 Global Trends

Musgrave pivots convenience, foodservice and grocery during the pandemic to meet customer needs.

66 Category Close-Up

Typically high-performing salty snacks soften during the pandemic.

72 Back Page PLEASE RECYCLE THIS MAGAZINE 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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CONVENIENCE.ORG

iStock.com/Marat Musabirov

10 NACS News

Stop-N-Shop Over the Hill Grill prides itself on flavorful, fresh food and community.

CHANGE THE WAY

YOU PUMP

INCREASE BUSINESS AND CUSTOMER LOYALTY

VOLUME 20, ISSUE 2

FEBRUARY 2021

EDITORIAL Kim Stewart Editor-in-Chief (703) 518-4279 kstewart@convenience.org Sara Counihan Managing Editor (703) 518-4278 scounihan@convenience.org Lauren Brooks Digital Content Manager (703) 518-4283 lbrooks@convenience.org

What’s top of mind in convenience?

We’ll tell you.

Get the inside scoop on all things convenience by downloading our weekly podcast!

Convenience Matters® is the only podcast in the convenience industry that brings together thought leaders and retailer superstars each week to discuss matters of convenience.

Download the podcast today, and gain access to industry knowledge and trends — all in 24 minutes or less!

Available on:

CONTRIBUTING WRITERS Terri Allan, Fiona Briggs, Sarah Hamaker, Al Hebert, Pat Pape, Howard Riell, Stephenie Overman DESIGN Beyond Definition www.beyond-definition.com

ADVERTISING

NACS BOARD OF DIRECTORS CHAIR: Kevin Smartt, Kwik Chek Food Stores OFFICERS: Lisa Dell’Alba, Square One Markets Inc.; Brian Hannasch, Alimentation Couche-Tard Inc.; Andy Jones, Sprint Food Stores Inc.; Ken Parent, Pilot Flying J LLC; Victor Paterno, Philippine Seven Corp. dba 7-Eleven Convenience Store; Don Rhoads, The Convenience Group LLC; Jared Scheeler, The Hub Convenience Stores Inc. PAST CHAIRMEN: Frank Gleeson, Aramark Northern Europe; Julie Jackowski, Casey’s General Stores Inc. MEMBERS: Chris Bambury, Bambury Inc.; Chris Coborn, Coborn’s Inc. Little Dukes; Joseph M. DePinto, 7-Eleven Inc.; Bhagdeep S. Dhaliwal, Dhaliwal & Associates Inc.; George Fournier, EG America LLC; Anne Gauthier, St. Romain Oil

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

NACS SUPPLIER BOARD

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

CHAIRMAN-ELECT: Brent Cotten, The Hershey Company

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

PUBLISHING Erin Pressley Publisher and Vice President, Education & Media (703) 518-4208 epressley@convenience.org Rose Johnson Audience Development and Production Manager (703) 518-4218 rjohnson@convenience.org

CHAIRMAN: Rick Brindle, Mondelēz International

Company LLC; Varish Goyal, Loop Neighborhood Markets; Christine Hogan, Wheels Convenience Stores; William B. Kent, The Kent Companies dba Kent Kwik Convenience Stores; Sydney Kimball, Shell International Petroleum Company Limited; Chuck Maggelet, Maverik Inc.; Ina (Missy) Matthews, Childers Oil Co.; Charles McIlvaine, Coen Markets Inc.; Lonnie McQuirter, 36 Lyn Refuel Station; Glenn M. Plumby, Speedway LLC; Robert Razowsky, Rmarts LLC; Richard Wood, Wawa Inc. SUPPLIER BOARD REPRESENTATIVES: Rick Brindle, Mondelēz International; Brent Cotten, The Hershey Company STAFF LIAISON: Henry Armour, NACS GENERAL COUNSEL: Scott Sinder, Steptoe & Johnson LLP

VICE CHAIRMEN: David Charles, Cash Depot; Kevin Farley, GSP; George Ubing, E&J Gallo Winery

Coca-Cola Company; TJ Lynch; Vito Maurici, McLane Company Inc.; Bryan Morrow, PepsiCo Inc.; Sharon Porter, Saputo USA LLC, dba Saputo Convenience; Lesley D. Saitta, Impact 21; John Thomas, iSEE Store Innovations LLC; Dean Zurliene, Monster Beverage Company

PAST CHAIRMEN: Kevin Martello, Keurig Dr Pepper; Brad McGuinness, Qopper Inc.; Drew Mize, PDI

RETAIL BOARD REPRESENTATIVES: Steve Loehr, Kwik Trip Inc.; Chuck Maggelet, Maverik Inc.

MEMBERS: Blake Benefiel, Altria Group Distribution Company; Alicia Cleary, Anheuser-Busch InBev; Tony Gaines, NVIP LLC; Mike Gilroy, Mars Wrigley; Josh Halpern, FIFCO USA; David Jeffco, Krispy Krunchy Foods LLC; Tim Knight; Kevin M. LeMoyne,

STAFF LIAISON: Bob Hughes, NACS SUPPLIER BOARD NOMINATING CHAIRMAN: Joseph Vonder Haar, iSEE Store Innovations LLC

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 employees of nonmember companies at a rate of $70 per year.

Please add $15 for delivery outside the United States.

Subscription requests: nacsmagazine@convenience.org POSTMASTER: Send address changes to NACS Magazine, 1600 Duke Street, Alexandria, VA, 22314-2792 USA. Contents © 2021 by the National Association of Convenience Stores. Periodicals postage paid at Alexandria VA and additional mailing offices.

1600 Duke Street, Alexandria, VA, 22314-2792

Tune in at conveniencematters.com

CONVENIENCE.ORG

HAVE YOU SEEN THE NEW WILDHORSE? SAME GREAT FLAVOR. BOLD NEW LOOK.

EXPERIENCE THE FREEDOM ®

GOPREMIER.COM 800-272-8656

CONVENIENCE.ORG

WHAT’S ONLINE | FEBRUARY 2021

Safety First

Did you know that convenience.org has a page dedicated to food safety? With foodservice sales in convenience stores being about 23% of in-store sales, the category continues to be a key focus area for retailers, and the importance of food safety is paramount. Outbreaks affect not only individual brands but also the entire industry. Resources from NACS, allied industry groups and associations and the federal government can help retailers enhance their safe food-handling practices and reduce the risk of foodborne illness.

The page is filled with resources, including a thorough and updated list of food recalls, food safety training courses and government resources. Learn more at www.convenience.org/topics/food-safety.

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

NACS Convenience Corner blog showcases the dynamic convenience retail environment. Join the conversations on all things retail, NACS and convenience brought to you by industry experts and guests.

Don’t miss its most recent post, which takes a look at convenience industry trends for 2021 and beyond, as significant changes in consumer behaviors and needs have created shifts and new market realities for convenience retailers.

Check it out at www.convenience.org/conveniencecorner.

CONVENIENCE.ORG

iStock.com/FG Trade

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FROM THE EDITOR

Silver Linings Kim Stewart Editor-In-Chief

Spend per transaction remains above pre-pandemic levels because consumers are grabbing a few extras for the road.

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| FEBRUARY 2021

I

n the drop-off line at my teenage daughter’s school on a recent day, she realized she’d taken off her standard black cotton face mask at home when she put on her coat. I pointed out to her that there were several other more colorful options stashed in her backpack, but she deemed those uncomfortable or ill-fitting. She sorted through the jumble of sports-themed face masks her Dad had left in our SUV and found a plain black one but worried that her older brother may have worn it. In the end, she took an extra one I’d stashed in my purse for emergencies.

Just another day in 2021. This time last year none of us had much of an inkling of what lay ahead. And truth be told, we still don’t. To those of you who have lost loved ones or are struggling with health issues, I wish you comfort and healing.

Convenience retailers warily find themselves in familiar territory as cases surge across the U.S. Trips still have ground to retake in all dayparts, and dollar sales continue to fluctuate. One silver lining is that spend per transaction remains above pre-pandemic levels because consumers are grabbing a few extras for the road, according to the January report from PDI and NACS on how COVID-19 is affecting consumer behavior. (Access the monthly reports at www.convenience.org/Research/ Consumer-Insights/COVID-19-Impacton-Consumer-Behavior.)

As our “Rising Stars of the Pandemic” cover story outlines, certain categories have performed especially well in c-stores, while foodservice has taken a hit, along

with cold dispensed beverages, hot dispensed beverages and other traffic drivers as everyday routines have shifted.

Among the products to dramatically outperform total store sales trends last year were alcoholic beverages, sports/ energy drinks, cigars, smokeless tobacco, cigarettes and milk. The latter two were in the doldrums pre-COVID-19 but have enjoyed a rebound, at least during the early to middle months of the pandemic in 2020.

Convenience retailers expect that many of the in-store trends that emerged during the pandemic will stick around, at least for the immediate future. And it appears that we’ll also be wearing face masks in public much longer than first expected.

Heading into 2021, the NACS Research team knew we’d start the year with fewer convenience stores in the U.S. than we did in 2020. We did see a disappointing loss but not as bad as feared, as we share in this month’s magazine feature.

In such a disruptive environment, benchmarking your 2020 performance against competitors across the country and in your operating region is more important than ever. Please join us in April for the NACS State of the Industry Summit for deep dives into the data that will populate the SOI Report, forwardthinking ideas from thought leaders and a first look at some exciting enhancements NACS Research is adding for 2021.

Be safe and well, my friends.

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BEFORE WONDERBAR

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99 FACINGS

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Sell More Salty Snacks n Increased facings from 99 to 121, a 22% increase*. n Automatically billboards and faces product. n Reduces losses from bag hook tearout. n Cuts over 1 hour/day labor for restocking. n Allows rear restocking and proper date rotation.

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Trion Industries, Inc. TrionOnline.com info@triononline.com 800-444-4665

NACS NEWS

Tell Your Story to Capitol Hill

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| FEBRUARY 2021

Session webinar, you’ll learn more about the issues that you’ll be discussing with members of Congress and their staff. The webinar also will allow you to get to know the industry peers you’ll be teamed with for each virtual Hill meeting. We are dedicated to training you to be a strong advocate.

The team at NACS: • s chedules your congressional meetings and pairs you with other convenience retailers and experienced advocates; •p repares you with pre-reads, briefing materials and training on how to participate in a successful virtual congressional meeting; • provides you with all the information you need to share with your elected officials; and • e quips you with knowledge and skills you can apply immediately back home.

Register for NACS Day on the Hill today at www.convenience.org/dayonthehill.

CONVENIENCE.ORG

iStock.com/Toshe_O

E

very day, members of Congress work on legislation that can have a real impact on you and your business. The annual NACS Day on the Hill, formerly known as the Government Relations Conference, teaches you how to effectively advocate for your business and brings you face to face with policymakers. The conference, taking place March 23-24, gives you the opportunity to explain your business and share how policies will directly affect your operations and the convenience and fuel retailing industry.

This year, NACS Day on the Hill is happening virtually. Due to the COVID-19 pandemic, Capitol Hill isn’t open to visitors. However, lawmakers and their staff are still having virtual meetings with constituents.

As a Virtual Day on the Hill attendee, you’ll learn about the pressing issues affecting our industry, and you’ll be able to do it from the comfort of your home or office.

Before you meet with lawmakers, NACS will prepare you with a training video and briefing materials for each issue. During this General

Registr NACS D ation for ay on th e Hill is now op e www.c onvenie n! dayonth nce.org/ ehill

Benchmark for Success Data submission is now open for the NACS State of the Industry of 2020 Data survey, and your participation and support matters more than ever. Be a part of the industry’s most valuable data set by confidentially submitting your company data. It’s easy! Just download the firm-level data submission form provided at www.convenience.org/SOIsurvey—most companies complete it in just a few hours.

The process of collecting and preparing your data for submission also helps you to better understand your own business metrics and prepares you to benchmark against the insights unlocked in the aggregated data and metrics

revealed in the final SOI report. By participating, you’re helping NACS, our industry and perhaps most importantly, your business—all at the same time.

Survey participants will receive: • T wo access licenses to the NACS State of the Industry Report® of 2020 Data • One complimentary registration to the 2021 NACS State of the Industry Summit held on April 14, 2021 • A custom report of your company’s data in comparison to the State of the Industry 2020 aggregate data metrics to assist your internal analysis of your performance As with all sensitive company data, NACS SOI Survey data are kept completely confidential and will only be used in aggregate for analysis with data from other participating retail companies.

Submit your data today at www.convenience.org/ SOIsurvey.

NACS Calendar of Events

2021 MARCH 9-11

NACS Human Resources Forum Live Virtual

MARCH 23-24 NACS Day on the Hill Virtual

APRIL 13-14

NACS State of the Industry Summit Virtual

MAY 2-7

AUGUST 1-6

OCTOBER 24-29

NACS Leadership Forum Loews Kansas City Kansas City, MO

AUGUST 16-20

OCTOBER 31NOVEMBER 5

JUNE 1-3

SEPTEMBER

NACS Leadership for Success Virginia Crossings Hotel & Conference Center Glen Allen, VA

MAY 12-14

NACS Convenience Summit Europe Dublin, Ireland

JULY 25-29

NACS Executive Leadership Program at Cornell Cornell University Ithaca, NY

CONVENIENCE.ORG

NACS Financial Leadership Program at Wharton The Wharton School University of Pennsylvania Philadelphia, PA

NACS Women’s Leadership Program Yale School of Management New Haven, CT

NACS Convenience Summit Asia Virtual

NACS Innovation Leadership Program MIT Sloan School of Management Cambridge, MA

NACS Marketing Leadership Program Kellogg School of Management Northwestern University Evanston, IL

For more information about these NACS events, visit www.convenience.org/events.

For the most up-to-date information on event cancellations, please visit www.convenience.org.

OCTOBER 5-8 NACS Show Chicago, IL

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NACS NEWS

NACS released a bonus episode of its popular Convenience Matters podcast series to help the industry plan for the COVID-19 vaccination rollout for essential employees. Anna Ready Blom, director of government relations at NACS, shared the latest information on how the vaccine is being distributed and the prioritization process.

State are tasked with determining their individual frameworks for vaccine distribution plans for the CDC’s recommended phase 1-A (healthcare professionals, residents of long-term care facilities), 1-B (frontline essential workers, seniors age 75+) and 1-C (all other essential workers, seniors age 65+, those with a high-risk medical condition) priority groups. Retailers operating multiple stores throughout a state could see varying degrees of vaccine guidelines in different cities. “We’re advising our NACS retail members to be in touch with their state association partners and to be proactive reaching out to local officials, health departments and governors,” Ready Blom said.

Doug Kantor, partner at Steptoe & Johnson LLP, chimed in: “When this vaccine gets out in broader numbers, it will go to hospitals, pharmacies and health-care providers and others to

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administer—none of them has a ready list of who are the essential frontline workers in my community.”

So, it’s important for retailers to be proactive, he advised: “Whether you’re a multi-state operator or a single-store operator, reach out proactively to those health-care providers, hospitals and pharmacies” and let them know that your employees are designated frontline essential employees, which could speed up the vaccination process if these locations find themselves with vaccine on hand that is at risk of spoiling due to temperature control.

NACS is working with its state association partners to seek guidance from governors and state officials to develop templates that show documentation of who the essential workers are within the c-store industry. “We’re suggesting a template letter from individual convenience store companies that are personalized to their employees and shows they are, in fact, verified as an essential worker,” Kantor explained.

To listen to the rest of the conversation and guidance on how to prepare for vaccination distribution in your state, download “Special Episode: Vaccinating Essential Workers” at www.conveniencematters.com.

CONVENIENCE.ORG

iStock.com/Geber86

Vaccinating Essential Employees

NEW NACS MEMBERS NACS welcomes the following companies that joined the association between November 16 and December 15, 2020.

NACS membership is company-wide so we encourage employees of member companies to create a username by visiting www.convenience.org/Create-Login. All members receive access to the NACS Online Membership directory, latest industry news, information and resources. For more information about NACS membership, call (703) 684-3600.

NEW RETAIL MEMBERS Konnect General Services Houston, TX www.konnectgeneralservices.com

NEW SUPPLIER MEMBERS Beam Suntory Chicago, IL www.beamsuntory.com

Marvolus Mfg. Co. Chicago, IL www.marvolus.com Pristine InfoTech Inc. Burlington, MA www.pristineinfotech.com

NEW HUNTER CLUB MEMBERS SILVER

GSK Consumer Healthcare Madison, NJ www.pfizer.com

Truly Nolen Tucson, AZ www.trulynolen.com

MEMBER NEWS RETAILER Yesway announced that it has expanded its senior leadership team with the hiring of two industry veterans.

Tate Cutrer joins the firm from RaceTrac as Yesway’s new senior vice president of human resources, and Aaron Everett will take over as Yesway’s new chief information officer, joining the firm from Lucky’s Market.

SUPPLIER Mike Auger, president of RAI Trade Marketing Services Company, has announced his plans to retire in midFebruary 2021 after a career spanning a combined 30 years of service and leadership to Reynolds American.

Alto-Shaam has hired John Ulrich as vice president of national accounts.

Ulrich will be responsible for the strategic development and tactical execution of Alto-Shaam’s targeted regional and national chain and multi-unit account growth.

CONVENIENCE.ORG

Mike Auger

Swisher announced that John Haley has been named chief growth officer, overseeing Swisher’s newly formed corporate growth department. In this new role, Haley will focus on growth, innovation, strategy and structure of Swisher to enable organizational transformation to drive change throughout the company.

Klarco, a T&S Brass company, announced the promotion of Lorida Dehara to the role of general manager at the San Quirino, Italy-based operation. As general manager, Dehara is responsible for the overall operation, including leading and supporting company growth and customer service initiatives.

Lorida Dehara

KUDOS Pilot Company has been ranked No. 1 in the large employer category for the Knox News and Knox.biz Top Workplaces 2020 survey.

John Ulrich

FEBRUARY 2021 |

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NACS NEWS

BY THE NUMBERS

Feeling Good The results of the first-quarter 2021 NACS Retailer Pulse Survey poll are out, showing that retailer optimism grows increasingly stronger by quarter as the year progresses.

Looking back at 2020, sales were good in spite of the pandemic: 59% of retailers surveyed said that in-store sales were somewhat higher or significantly higher than 2019.

An expansion of SKUs (namely in ready-to-heat meals and canned/frozen goods) and an increased quantity of existing SKUs (in alcoholic beverages and grocery, among others) were a big part of that sales bump.

Shortages of some products were reported, with cleaning/toiletry items and alcoholic and packaged beverages at the top of the list. However, taking the No. 1 spot for shortages: qualified candidates to fill jobs, with 69% of retailers reporting challenges in 2020.

As we move into a new year, pessimism drops as each quarter passes, with the second half of the year revealing some positive momentum.

The first-quarter 2021 NACS Retailer Pulse Survey was fielded in late December 2020. A total of 71 member companies, representing a cumulative 1,717 stores, participated in the survey.

Which best describes your in-store sales in 2020 compared with 2019?

Our sales are significantly lower

14.08%

Our sales are somewhat lower Our sales are the same

15.49% 11.27%

Our sales are somewhat higher

42.25%

Our sales are significantly higher

16.90% 10%

20%

30%

40%

50%

60%

Overall Outlook for Shopper Foot Traffic in 2021

70%

80%

90%

Optimistic

100%

Pessimistic

100% 80% 60% 40%

64% 41% 24%

45% 23%

20%

8% Q1 (January-March)

67%

Q2 (April-June)

Q3 (July-September)

6% Q4 (October-December)

Source: Q1 2021 NACS Retailer Pulse Survey

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| FEBRUARY 2021

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GOOD WORK

C

BY THE NUMBERS

165 million Number of people convenience stores serve every day

40% of Americans say that human trafficking is a cause they would like their local retailer to address

90% of consumers say they think more favorably of convenience store jobs when they hear the company is fighting human trafficking

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| FEBRUARY 2021

onvenience stores serve 165 million people every day— approximately half of the U.S. population. The proximity of stores and retailers’ close relationships with the communities they serve give our industry the ability to help lead positive change on issues like fighting human trafficking.

Per the U.S. Department of Homeland Security’s Blue Campaign, traffickers and victims may utilize convenience stores to purchase food and other goods, gas or to use the restroom. If convenience retail employees learn how to recognize and report suspected human trafficking, they may be able to help victims leave their trafficking situation and keep traffickers from harming more people.

NACS has been a Blue Campaign program participant since 2017 to help retailers recognize the indicators of human trafficking and how to appropriately respond to possible cases. NACS recently worked with the Blue Campaign to develop a new resource, “Human Trafficking Awareness Guide for Convenience Retail Employees,” which highlights what human trafficking is, the indicators and how to report the crime.

“Convenience retailers can play a significant role in combating human

trafficking because of their presence in virtually every community—urban, suburban and rural—as well as their often 24/7 operations. Because convenience retail employees observe and communicate with the public so frequently, they are in a unique position to observe indicators of human trafficking while working,” said Jonathan Barry, the campaign coordinator for the Blue Campaign.

NACS also works with IN OUR BACKYARD’s Convenience Stores Against Trafficking (CSAT) program to amplify the important role of convenience stores to help raise awareness about human trafficking. More than 20,000 Freedom Stickers have been posted in convenience stores, and 17 state-based convenience store associations and 184 convenience store companies have partnered with CSAT. In recognition of the c-store industry’s contributions, NACS Vice President of Strategic Industry Initiatives Jeff Lenard was named IN OUR BACKYARD’s 2020 “Hero of the Year.”

“Consumers tell us that they have more favorable opinions of business that address important societal issues like fighting human trafficking. A September 2018 NACS consumer survey revealed that 40% of respondents believe human trafficking is an issue that they want our industry to be engaged in fighting, and a February 2019 survey found that 90% say they have a more favorable opinion of stores who fight human trafficking,” said Lenard.

NACS has more information and resources for retailers to help fight human trafficking at www.convenience.org/ humantrafficking.

CONVENIENCE.ORG

iStock.com/Willowpix

Not on Our Watch

IN THE COMMUNITY OnCue convenience stores and Big Brothers Big Sisters of Oklahoma partnered to release a limited-edition cup that will raise funds for its mentoring programs across the state. For every cup sold, OnCue will contribute 50 cents to Big Brothers Big Sisters of Oklahoma.

The cups retail for $1.99 and are available through the end of March.

“We’re thrilled to be partnering with Big Brothers Big Sisters of Oklahoma. The mentoring connection isn’t just the beginning of a friendship, it’s the spark of a longlasting impact on a child’s life,” said Laura Aufleger, president of OnCue. “Big Brothers Big Sisters has a special place in my heart as I served as a Big for many years. One to one mentoring can truly change a child’s trajectory, and we need this now more than ever.”

CEFCO Convenience Stores presented Children’s Miracle Network Hospitals representatives with a check for $400,000 in early January. The funds will benefit Baylor Scott & White McLane Children's Medical Center and 15 other CMN Hospitals.

The donation comes from CEFCO’s annual 2020 campaign that ran from September 21–October 30, 2020.

Since 1999, CEFCO has been serving the children of its community by raising more than $5 million for local Children’s Miracle Network Hospitals located in Texas and other southern states.

CONVENIENCE.ORG

From L to R: Lori Luppino, director of philanthropy, McLane Children’s Hospital; Kim Fikes, CAO of The Fikes Companies; Ken Rowland, COO of CEFCO; Raymond Smith, president of The Fikes Companies.

In December 2020, Tiger Fuel Company donated $20,000 to childhood cancer research in Walker Beery’s name to The St. Baldrick’s Foundation. In August 2019, Walker was diagnosed with medulloblastoma. With support from Tiger Fuel Company, Walker’s family and his supporters created the With Walker St. Baldrick’s Hero Fund.

“Walker has touched the hearts of many people within the Tiger Fuel family, and we are honored to support him and his fight against cancer,” said Gordon Sutton, president of Tiger Fuel Company. “In lieu of holiday gifts like wreaths and gift baskets that we typically send to our customers, we decided to make a meaningful contribution in their honor. The $20,000 With Walker Hero Fund will be dedicated toward research for a cure for pediatric brain tumors and immunotherapy.”

FEBRUARY 2021 |

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INSIDE WASHINGTON

New Beginnings The 117th Congress ushers in historic changes and a shift in power.

FACTS & FIGURES

70

new members were elected to Congress*

14

women were elected to Congress, a record number

*As of January 14, 2021

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T

he 117th Congress, which was sworn in last month, is a historic Congress for many reasons. One of the most consequential is that both the House of Representatives and the Senate have the narrowest majorities in history.

Republican gains in the House have left Democrats with their slimmest majority since World War II, and that is with two races, one in New York and one in Iowa, still not resolved.

President Biden’s appointments of former Reps. Cedric Richmond (D-LA), Karen Bass (D-OH) and Deb Halaand (D-NM) to his administration have further narrowed Speaker Nancy Pelosi’s margin for error, at least until the special elections for those seats,

which Democrats are favored to win, are held. In the Senate, Democrats gained four seats after winning the two runoff elections in Georgia, creating the second 50-50 Senate in the past 20 years. They now hold a tenuous majority due to Vice President Kamala Harris’ role as president of the Senate and her ability to cast a tie-breaking vote.

Another historic milestone for the 117th Congress is that it has the most female representatives in history. The 2018 elections set the previous record when 35 women, mostly Democrats, were elected for the first time. The new Congress has a net addition of 14 women, this time mostly Republicans, growing the female representation to above a quarter of all congressional seats for the first time.

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gettyimages.com/powerofforever

BY JON TAETS

There are many aspects of note about the 117th Congress, ranging from historic milestones to quirky facts: • Rep. Marilyn Strickland (D-WA-10) is the first Korean-American woman elected to Congress, and by joining Rep. Andy Kim (D-NJ-03), it marks the first time two Korean Americans have served in the same Congress.

• Rep. Kai Kahele (D-HI-2) is the second native-born Hawaiian elected to serve in Congress since statehood

and is the only member of the delegation not from Oahu.

• Sen. Mark Kelly (D-AZ) is the fourth astronaut elected to Congress and the first since 1982.

• Rep. Carlos Giminez (R-FL-26) is the second Cuban-born member of Congress, joining Rep. Albio Sires (D-NJ-8).

• The addition of Rep. Andrew Clyde (R-GA-9) makes three members of Congress born in Canada, joining

ONE VOICE This month, NACS talks to Julie Jackson, chief operating officer at Jaco Oil Company & Fastrip Food Stores.

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

Convenience stores are a public convenience and necessity and play Julie Jackson an important role in the community. Most are open 24 hours a day, seven days a week and provide a wide range of options with a quick in and out for time-starved customers. We serve a wide range of customers, from travelers passing through to the local little league team to those looking for a safe haven. Larger format stores serve as the local grocery store in smaller communities. They also provide great employment opportunities and, of course, tax revenues to local municipalities.

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

Political engagement for our industry is critical at the local, state and federal levels. I have found that most elected officials are very interested in our industry and are surprised when they see firsthand all the regulatory

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issues we deal with. I have had the opportunity to host several congressional visits at sites in Southern California (thank you Paige Anderson and NACS), which is always fun and productive, and I have met with other California state officials at their offices. It has been helpful to establish these relationships, so that I am able to discuss an important topic that could affect our industry (hopefully before a vote is made!). NACS has been very helpful coordinating with the California Fuels and Convenience Alliance (CFCA), as California is typically the genesis of regulations that eventually affect the rest of the country. Belonging to a state or regional trade association is extremely helpful, and I highly recommend it.

What federal legislative or regulatory issues keep you up at night?

2020 has been the year of COVID-19. Focusing on the health and safety of employees and customers has been front and center. We continue to navigate the ever-changing directives of county, state, federal, CAL OSHA and the CDC to ensure proper training, protocols and compliance are in place. Of course, there are other important issues such as the flavored tobacco ban and conducting business in California. There is always something to keep up with.

What c-store product could you not live without?

Starbucks Doubleshot Espresso!

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NACS works to build relationships with each new congressional member during their freshman terms.

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Rep. Sean Patrick Maloney (D-NY-18) and Sen. Ted Cruz (R-TX).

• No Republican incumbents in the House were defeated in November’s general election. This marks the second consecutive election where one party accomplished such a feat.

No House Democrats were defeated in the general election in 2018.

• Four former members of Congress returned. Three House members, who had either retired or were defeated in 2018, returned to the House, and one former House member, Cynthia Lummis (R-WY), won a Senate seat.

• T wo House members moved to the Senate: Sens. Rogers Marshall (R-KS) and Ben Ray Lujan (D-NM).

• Two first-time candidates won seats in the Senate: Sens. Tommy Tuberville (R-AL) and Bill Hagerty (R-TN).

Among the freshman class are a number of members who have connections with or are champions of our industry. The first is Rep. Peter Meijer (R-MI-3).

Meijer is a business analyst and U.S. Army veteran who hails from the family who owns NACS member company Meijer Inc.

Prior to his election to Congress, Meijer served as an intelligence adviser in Iraq, a conflict analyst for a humanitarian organization and a business analyst back home in Michigan. He also served as a board member of an organization which seeks to encourage more military veterans to run for elected offices. He joined Rep. Greg Pence (R-IN-6) as members with recent, direct ties to our industry and joined scores of others who worked in the convenience industry at some point in their younger years.

Another freshman familiar with the c-store industry is Rep. Stephanie Bice (R-OK). In the Oklahoma State Senate, she served as chair of the Senate Finance Committee and assistant majority leader for two years. Bice worked to modernize Oklahoma’s alcohol laws, which had not been updated since prohibition was repealed there in 1959. She championed legislation that allowed convenience and grocery stores to sell wine and high-point beer in Oklahoma. Bice won election after challenging first-term incumbent Rep. Kendra Horn (D-OK) by a vote of 52.1% to 47.9%. Bice is the first Iranian American to serve in Congress.

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gettyimages.com/PhotographyPerspectives

INSIDE WASHINGTON

gettyimages.com/tupungato

As noted, there were four incoming members of Congress who returned to the House and Senate and were not members of the 116th Congress but served in previous Congresses. NACS worked closely with them on a number of issues important to the convenience industry.

Before he announced he would not seek re-election in 2018, Rep. Darrell Issa represented California’s 49th congressional district from 2013 to 2019.

During his previous service, he chaired the House Committee on Oversight and Government Reform and served on six different House committees, including the House Judiciary Committee, House Energy and Commerce Committee and the House Select Committee on Intelligence. In addition to participating in a NACS In Store event in his district, Issa worked closely with NACS on swipe fees and fuels issues. He returned to Congress in the neighboring 50th district, a seat vacated with the resignation of former Congressman Duncan Hunter.

Before his defeat in 2018 to Democrat Rep. Collin Allred in Texas’ 32nd district, Rep. Pete Sessions served in Congress from 1997 to 2019. During that time, he chaired the National Republican Congressional Committee and was chairman of the House Rules Committee (2013-19). From swipe fees to menu labeling to fuels issues, Sessions worked closely with NACS and convenience retailers in his district. Like Issa, Sessions returned to Congress to represent a different

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district from when he last served. He now represents Texas’ 17th district, which was vacated by the retirement of former Congressman Bill Flores.

Rep. David Valadao represented California’s 21 st congressional district from 2013 to 2019 before being defeated by Democrat Rep. TJ Cox. He served on the House Appropriations Committee, where NACS worked with Valadao on a variety of issues relating to fuels and underground storage tanks. By winning his rematch with former Rep. Cox, Valadao has the unique distinction of being one of three Republican candidates in California to unseat an incumbent Democrat—the first time since 1994.

Sen. Cynthia Lummis will succeed Sen. Mike Enzi, who was a longtime friend of the convenience industry.

Lummis will be the first woman to represent Wyoming in the Senate.

She represented Wyoming’s at-large congressional district in the U.S. House of Representatives from 2009 until her retirement in 2017. She was known as a fiscal conservative, using her position on the House Appropriations Committee to cut federal spending and eliminate government waste. NACS worked with Lummis on swipe fees, fuels and environment issues.

NACS works to build relationships with each new congressional member during their freshman terms, and we urge you to do the same if your stores operate in any of these districts. Getting to know members early in their terms is one of the best things you can do for your business—before you need to ask them for a vote. Reach out to their new district offices and set up introductory meetings.

Offer yourself as a resource for issues, and work to keep those relationships going.

Today’s freshman class members may very well take on leadership roles in short order.

If you have questions about building such relationships, feel free to contact me, Jon Taets, at jtaets@convenenience.org.

Getting to know members early in their terms is one of the best things you can do for your business.

Jon Taets is the NACS director of government relations. He can be reached at jtaets@convenience.org.

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INSIDE WASHINGTON

Climate Corner

As the Biden Administration builds its agenda on climate change and reducing greenhouse gas emissions, one issue under discussion is electric Renewable Identification Numbers, otherwise known as eRINs. Many policymakers view eRINs as a tool to use under the Renewable Fuel Standard (RFS) program to transition from liquid motor fuels to the electrification of the U.S. transportation system.

A little history of the RFS is needed to understand how the concept of eRINs emerged. In 2007, Congress passed the Energy Independence and Security Act (EISA), which expanded the RFS program to include any form of renewable fuel “produced from renewable biomass.” The legislation also directed the Environmental Protection Agency (EPA) to study the feasibility of issuing credits, called Renewable Identification Numbers (RINs), under the RFS to electric vehicles powered by electricity generated from renewable energy sources.

Ultimately, instead of completing the study, the EPA established a process for credit generation as part of its RFS rulemaking process in 2010. In the rule, the EPA included a provision to allow fuel producers, importers and end users to include electricity, natural gas and propane made from renewable biomass as a RIN-generating renewable fuel in the RFS. In 2014, EPA finalized pathways for compressed gas, liquefied gas and renewable electricity derived from biogas and used as a transportation fuel to qualify under the RFS.

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To date, the EPA has not approved any applications to generate eRINs or credits under the RFS program. The EPA has requested input on how to implement such a credit and who should receive the credit, which has been a main sticking point in implementing an eRINs system.

The House Special Committee on Climate Crisis included a recommendation in its staff report released last year on eRINs. The recommendation states that “unless or until Congress creates a federal low carbon fuel standard, Congress should direct EPA to complete any necessary rulemakings or other administrative steps necessary to allow the generation of eRINs for biogas-derived electricity used as a transportation fuel.” In addition, a group of nine bipartisan senators sent a letter led by Senator Susan Collins (R-ME) to encourage EPA to use its authority and allow eRINs. Several environmental groups and the biogas industry support moving ahead with this program and believe it will encourage the transition to electric vehicles. Some in the oil and gas industry oppose moving ahead with eRINs due to the complexities in implementing such a program.

Those that oppose the RINs system in general are reluctant to create another layer to the system with eRINs. All stakeholders, including the convenience and fuel retailing industry, will have to look closely at any proposal to see if an eRINs system is an opportunity or an obstacle.

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gettyimages.com/Lalocracio

POLICYMAKERS VIEW ELECTRIC RINs AS A TOOL TO MOVE FROM LIQUID MOTOR FUELS TO ELECTRIFICATION OF THE TRANSPORTATION SYSTEM.

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

NACSPAC donors who made contributions December 1-31, 2020, are: Josh Alderson Carlin Group

Derek Gaskins Yesway

Scott McPherson Core-Mark International Inc.

Martin Smith Elmer Smith Oil Co.

Chris Bambury Bambury Inc.

Christopher Gheysens Wawa Inc.

William C. Milam, III

Stephen C. Spinks Spinx Company Inc.

Joseph Bona Bona Design Lab Inc.

Erin Graziosi Robinson Oil Corporation

Ned Bowman Florida Petroleum Marketers Association

Brian Hannasch Alimentation Couche-Tard Inc.

Stephen Brady Techniche

Shultz Hartgrove Naughty Chile Taqueria

RF Buche GF Buche Co.

Tom L. Heinz Coffee Cup Fuel Stops and Convenience Stores Inc.

Robert A. Buhler Open Pantry Food Marts of Wisconsin Inc. Nancy Caldarola Concept Associates Inc. Bradley Chivington High's of Baltimore LLC Nishant Chudasama Cadnicks Inc. Joseph M. DePinto 7-Eleven Inc. Rick DeRose TSN-A Bunzl Company Bhagdeep S. Dhaliwal Dhaliwal & Associates Inc. Jaspreet Dhillon 7-Eleven Franchise Colin Dornish Coen Markets Inc. Matt Durand Cumberland Farms Inc. Dean C. Durling QuickChek Corporation David B. Ezell Conexxus

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Christopher K. Hobson Core-Mark International Inc. Sonja Yates Hubbard Yates Group Inc. David Hutchinson Hutchinson Oil Co. Inc. Aj Jha Tustin Arco Robert S. Johnson Pinnacle Corporation Jack Kimberly Royal Cup Coffee and Tea Christine Lavelle Winsight LLC Aaron Littlefield Littlefield Oil Company Crystal Maggelet Maverik Inc. Brian C. McCarthy Blarney Castle Oil Co. Bill McCloskey Rmarts LLC Charles McIlvaine Coen Markets Inc.

Johnny Milazzo Lard Oil Company Inc.

Nicholas St. Romain St. Romain Oil Company LLC

Jeffrey G. Miller Miller Oil Co. Inc.

Darlene Stanley Johnson Junction Inc.

Greg Mitchell Toot'n Totum Food Stores LLP

Arthur Stawski, Sr. Ragin' Cajun Food and Fuel

Madalena Maria Morgan Bobby & Steve's Auto World

William Stein Core-Mark International Inc.

Jay Nelson Excel Tire Gauge LLC

Harvinder Thaper CFLFOA

Bill Newcomb Newcomb Oil Co.

Norman C. Turiano Turiano Strategic Consulting LLC

Brian Newcomb Newcomb Oil Co.

Tim Voyles Insignia Brands

Afroz Painter Rocket Fuels LLC

Ryan Warren Woody Creek Station LLC

Ken Parent Pilot Travel Centers LLC

Delone Wilson Cubby's Inc.

Sanjiv Patel National Petroleum

Richard Wood Wawa Inc.

Darrin Pohar Sheetz Inc.

Malik Yousif MYS Energy

Ryan G. Razowsky Rmarts LLC Eva Rigamonti RaceTrac Petroleum Inc. Lesley D. Saitta Impact 21 Amin Salkhi Grand Petroleum Inc. Money Samra Samra & Sons Josh Severson Severson Oil Co.

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IDEAS 2 GO

The Aloha Spirit Uptown Kitchen & Food Mart treats its customers and staff as family.

BY SARAH HAMAKER

We want [customers] to walk away thinking that we’re glad they came here and to make their day a little bit brighter.

Uptown Kitchen & Food Mart in Wailuku, Hawaii, started in 1953 as a gas station and repair shop. In the early 2000s, the garage became a convenience store with a full kitchen and walk-up window.

M

iss Aloha greets customers who walk into the Uptown Kitchen & Food Mart in Wailuku, Hawaii, giving each one a warm welcome. “We have a cashier we nicknamed Miss Aloha because of the way she made everyone feel like part of the Uptown family,” said owner Alvin Makimoto.

SEE MORE! Ideas 2 Go showcases how retailers today are operating the convenience store of tomorrow. To see videos of the c-stores we profiled in 2019 and earlier, go to www.convenience.org/Ideas2Go.

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When on a shift, Miss Aloha infused the store with such a positive, inclusive vibe, Makimoto decided to take her spirit of aloha to another level. “We now have a painting of her in the front window, and other staff also greet people as they walk in with her ‘Love you families’ greeting. We want [customers] to walk away thinking that we’re glad they came here and to make their day a little bit brighter.”

WHOLESALE CHANGE That aloha spirit underlies everything Makimoto has tried to do with Uptown Kitchen & Food Mart, a business his father started in 1953 as a gas station with a five-bay repair shop, which Makimoto took over in 1989. Until the early 2000s, he ran the business much CONVENIENCE.ORG

ABOUT

The c-store’s foodservice menu features bento boxes and Spam rice balls, a local specialty, plus baked goods. A mural on the front window is a nod to a cashier nicknamed “Miss Aloha,” who welcomes customers with a “Love you families” greeting.

Name of company Uptown Kitchen & Food Mart

like his father had, with the addition of a small section for drinks and snacks.

“By 2002, the snack shop was outdoing the repair side, and when Chevron—which owned the property—allowed me to purchase the land in 2004, we decided a major change was needed,” he said. Makimoto converted the entire repair shop into a convenience store with a full kitchen and walk-up window for takeout orders.

“This was very unusual for Hawaii, which tended to have convenience stores with grab-and-go sections, but rarely served fresh-made food for breakfast and lunch,” he said. With the assistance of a friend’s chef son, Makimoto designed a menu of takeout bento boxes and local specialties, such as Spam rice balls.

With gasoline sales already declining pre-pandemic because of larger chains like Costco and Safeway, focusing on food made Uptown Kitchen & Food Mart stand out. “On the island of Maui, there are only a handful of independent gas stations left, so we needed to be sure we had convenient items and foodservice our customers wanted in order to survive.”

One point of differentiation is with Uptown’s baked goods. When a local vendor retired, “the mom of one of our managers who was a good baker took over, and she started churning out simple things like Rice Krispies treats made with [Kellogg’s] Cocoa Krispies and [General

Date founded 1953

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Mills’] Chex Mix made with a local flare,” he said. Makimoto developed branded packaging for the baked goods, which soared from $1,000 in sales a month to $8,000 in sales a month.

# of stores 1 Website www.uptownchevron.com

SURVIVING COVID-19 When the pandemic hit, Makimoto thought his store would be a casualty. “I

BRIGHT IDEAS Where does Alvin Makimoto, owner of Uptown Kitchen & Food Mart in Wailuku, Hawaii, go for inspiration? You’re reading it. “The NACS Magazine has helped me a lot with ideas for merchandising and what trends are happening now,” he said. “I used to rely solely on my vendors for what to carry in our store, but I quickly realized our vendors don’t always know what will sell well in my store.”

He scours each issue for new products and how to sell those products successfully. “For example, I learned how to bring in new items and discount old items to make room for the new ones,” he said.

“It’s become part of our product rotation now and helps us keep the store fresh for our customers.”

Makimoto also recommends attending the NACS Show. “Our trip to the NACS Show gave us a lot of great ideas,” he said.

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IDEAS 2 GO

Sarah Hamaker is a freelance writer and NACS Daily and NACS Magazine contributor based in Fairfax, Virginia.

Visit her online at www. sarahhamakerfiction.com.

Half Horz.indd 1

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figured by the end of 2020, I would be turning my keys in as everybody’s business was struggling in the early days of COVID-19,” he said.

Once the shock of the new normal wore off, he went into survival mode, reducing staff and inventory to stay afloat. “We went down from three cash registers to two,” he said. “We scrambled to get online ordering up and running, which took us two months. For a while it was a lifeline because no one was coming into the store.”

Now, online orders have died down as foot traffic has increased. “We’re not back to where we were pre-pandemic, but we’re doing OK,” he said. As sales inched up, he brought back employees, although not to the previous level.

Like many convenience stores, Makimoto uses social media to stay connected with customers. “Social media is so important nowadays,” he said. Uptown

also runs radio commercials on a local station. “We’ve had a trade agreement for years with the station where they give us air time in exchange for fuel each month,” he said. Five years ago, Uptown started sending its daily menu for the DJ to read on-air, which helped boost sales of its fresh food.

But most of its customers come from walk-in traffic and word of mouth. “We’re centrally located, so people pass by our store on a daily basis,” Makimoto said.

“Word of mouth is gold here, and that’s how we’ve grown the most.”

While good food and word of mouth go a long way toward a store’s success, Makimoto pointed to another reason— his employees. “I’m so grateful for my employees, and I try to show them how much I appreciate them through little treats and verbal praise,” he said. “Find your Miss Aloha, and set the bar high with that person.”

12/8/2020 4:54:37 PM CONVENIENCE.ORG

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s r a t S g n i s c i i R andem P e h t of

CONVENIENCE RETAILERS LOOK TO LEVERAGE TOP-PERFORMING CATEGORIES OF 2020.

By Terri Allan

T

he impact the COVID-19 pandemic has had on the convenience store channel—both favorable and damaging—has been widely discussed for months. Store traffic, particularly during key dayparts such as the morning, has been diminished, while fuel demand has slipped as Americans scaled back on trips and hunkered down at home. The pantry-loading and planned-purchases boom for groceries, meanwhile, resulted in fewer impulse trips to outlets like convenience stores. But on the flip side, in some cases c-stores have reported an uptick in visits by consumers who have shunned big-box stores in favor of those with a smaller footprint, all in an effort to limit exposure to possible infection. And of course, the essential

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Category consumers

have more demands on them, whether they are on the front line of health care and delivery or juggling the multiple hats of work from home, school from home, everything from home.”

business designation of c-stores has put a spotlight on the value the channel provides to consumers.

A number of in-store categories also have benefited from the health crisis, and now, nearly a year since the outbreak first began, convenience retailers are putting in place best-practice initiatives to sustain and build upon those trends.

According to IRI, the Chicago-based market research firm, among the products to dramatically outperform total store sales trends between May and August last year were alcoholic beverages, sports drinks, cigars and smokeless tobacco.

Cigarettes and milk, meanwhile, were among the categories that transformed pre-COVID-19 declines into sales gains during the period.

“Beer, liquor and tobacco are the departments with the largest percentage increase,” said Sean Bumgarner, vice president at Scrivener Oil’s Signal Foods c-store chain in Missouri. He attributed the strong performances to customer ease “in coming into a smaller store to grab the items they need, instead of walking around a large superstore,” as well as the chain’s adherence to its regular operating hours and an effort to remain in stock on high-demand items.

SMOKES AND DRINKS According to IRI, dollar and volume trends for cigarettes in c-stores have improved during the pandemic, outperforming other trade channels.

“That’s a category that has been in decline for over a decade, and it’s now booming,” said Jayme Gough, NACS research manager. She surmised that with so many consumers now working from home, smokers face fewer restrictions on lighting up.

Vince Segura, retail manager at Fuel City, with seven locations in the Dallas area, remarked that CONVENIENCE.ORG

he’s also seen an uptick in tobacco sales. “People are nervous about the virus,” he commented, “and for smokers, when they’re nervous, they smoke.”

Among packaged beverages, sports drinks have fared well. Maurice Bell, senior director of sales strategy/brand director—Gatorade, at PepsiCo, remarked, “Once state restrictions loosened, traffic returned to c-stores, and sports drinks saw some volume gains.” And while consumers have been forced to refine their athletic activities to better practice social distancing, “We found many athletes were still working out and seeking out sports drinks,” Bell added.

Elsewhere in the cold box, energy drinks have continued to post growth, according to IRI, albeit at a slower rate than pre-pandemic. “The need for energy is higher than ever right now,” explained Laura-Lynn Freck, director, shopper insights, at Red Bull North America. “Category consumers have more demands on them, whether they are on the front line of health care and delivery or juggling the multiple hats of work from home, school from home, everything from home. We hear from consumers that they’re increasing their purchases and consumption of energy drinks in order to meet the new work and life demands.”

Alcoholic beverages have experienced robust gains in grocery stores and c-stores during the pandemic, while sales in bars and restaurants have been hobbled due to closures and capacity

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constraints. According to IRI, beer sales in c-stores shot up 17% between May and August, while liquor sales skyrocketed 43%.

“The beer category has always been a trip driver for c-stores, and we continue to see this today with beer averaging 8.7 trips per buyer May through August, outpacing total edible trips by more than three trips per buyer,” remarked Sara Hillstrom, senior director, category development, at Anheuser-Busch. “Beer is the purpose for the trip, and that’s become even more prevalent with the closures on-premise.”

Segura agreed, noting that Fuel City has benefited from consumers opting to stay home for meals and drinks, rather than “waiting to be seated at a restaurant with limited capacity.”

Gough added, however, that the strong gains for beer in the channel of late might not be all pandemic related. “There’s been a lot of innovation in beer lately,” she said, pointing to high-flying segments like hard seltzers and craft brews.

municipalities have worked to support local businesses, the retailer said.

Tony Spinelli, vice president, national accounts at Diageo, said the surge in liquor sales in c-stores is actually an acceleration of pre-COVID-19 trends.

Among the top 20 categories in the channel prior to the outbreak, “spirits was already the fastest growing, outpacing store growth by a factor of five times,” he remarked. In recent months, the number has jumped to more than 10 times total store growth. “The shutdown and restriction of bars and restaurants resulted in a significant increase in at-home activities, including entertaining at home,” Spinelli noted.

Convenience retailers also reported an uptick in frozen foods. Peckat said frozen food sales at the PRIDE Stores were up about 15% last year. “People are coming in to grab something that they can heat up later,” he remarked. But while in the past it was single-serves that drove the frozen section, “We’re now selling more family-size items,” he said. At High’s convenience stores in the MidAtlantic, sales of the chain’s proprietary ice cream have been strong. “It seems that customers want to go to something they know and have enjoyed in the past, possibly as a form of comfort,” explained John Phelps Jr., vice president, marketing.

Not surprisingly, personal protective equipment such as face masks and gloves, as well as cleaning products and hand sanitizers, emerged as rising

AT-HOME ENTERTAINING LIFT Chris Peckat, director of purchasing at the PRIDE Stores in the Chicago area, reported, “We’ve seen great growth on beer, wine and liquor,” with 2020 sales through early December up 25%. In fact, the company has been able to expand liquor sales to more locations during the pandemic as

WHAT PRODUCTS/SERVICES DID YOU PUT MORE OF AN EMPHASIS ON IN YOUR STORES IN 2020? (SELECT ALL THAT APPLY.)

Pre-packaged, ready-to-eat food (sandwiches, salads, etc.)

49.30% 40.85%

Foodservice

39.44%

Cleaning/toiletry items

36.62%

Alcoholic beverages

33.80%

Grocery staples (milk, eggs, etc.)

23.94%

Ready-to-heat meals 11.27%

None of the above Canned/frozen goods

8.45%

Other

8.45% 0%

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10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

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FOR THE ITEMS YOU PLACED MORE EMPHASIS ON IN 2020, PLEASE SELECT WHICH ITEMS YOU ANTICIPATE INCREASING EMPHASIS ON IN 2021. (SELECT ALL THAT APPLY.)

Foodservice

58.14%

Pre-packaged, ready-to-eat food (sandwiches, salads, etc.)

51.16%

Ready-to-heat meals

30.23%

Alcoholic beverages

27.91%

Grocery staples (milk, eggs, etc.)

16.28%

Cleaning/toiletry items

11.63%

Other Canned/frozen goods

4.65% 0.00% 0%

10%

stars at c-stores during the pandemic. Marc Segal, CEO of Big Ideas Marketing, said c-store demand for the company’s COVID-19 products “went from 0 to 100.” But strong demand and supply shortages for masks and hand sanitizer in the early months of the pandemic were followed by abundant supply later in the year. “It was a constant challenge to meet the demands of customers where they wanted it,” Segal said.

Gough added that c-stores “have done a great job” stocking the items, despite supply challenges, and that they should continue to feature them. “People will be more aware of infectious diseases and may expect retailers to carry these items,” she said.

SUPERSIZE IT Beyond individual categories, some overall trends have emerged in the wake of the pandemic. Retailers and suppliers reported a shift toward larger and multipack sizes. “People are looking to reduce the time they go out in general, so instead of buying a bag of single-serve chips a couple of times a week, they’d rather grab a larger bag to consume over a longer period of time,” said Brad Chivington, senior vice president and general manager at High’s. Indeed, Bumgarner noted that Signal Foods is selling more cigarette two-fors and cartons than before the pandemic, as well as larger beer packages.

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20%

30%

40%

50%

60%

70%

80%

90%

100%

Which of the following do you anticipate offering or expanding upon in 2021?

(Select all that apply.)

Responses

ANSWER CHOICES

Percent

Number

App-based ordering/payment

37.88%

25

Curbside pickup

33.33%

22

Mobile order for in-store pickup

31.82%

21

Drive-thru pickup

18.18%

12

Delivery to off-site location

16.67%

11

At the pump ordering for in-store pickup

13.64%

9

At the pump ordering for delivery to car

9.09%

6

Lockers for pickup

7.58%

5

Partner with local businesses to cross-sell items

6.06%

4

None of the above

40.91%

27

Other

3.03%

2

TOTAL RESPONDENTS: 66 Source: NACS Q1 2021 Retailer Pulse Survey

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The shutdown and restriction

of bars and restaurants resulted in a significant increase in at-home activities, including entertaining at home.”

Ramona Giderof, vice president, small format, at Anheuser-Busch, confirmed, “during the pandemic, we’ve seen a shift toward larger multipacks. While singles still show strong growth, multipacks are capturing more of the dollars.” And according to Diageo’s Spinelli, customers are trading up in liquor bottle sizes, too. “This is driven by a shift in occasions from immediate consumption to fill-in, and even stock-up trips,” he said.

Daypart traffic has also been disrupted.

Executives at Fuel City, High’s and Signal Foods all report reduced morning traffic. “Since many people are still working from home, and some schools are out or only going every other day, the morning and evening drivetime customers are lower than before the pandemic,” Bumgarner said.

“We’ve had to lower the amount of breakfast and deli items we make so our waste is manageable.”

Convenience retailers are certainly focusing on sustaining the growth of categories aided by the pandemic into the future. “The most important thing is to be flexible and able to react quickly,” said Chivington. “We’ve seen demand for products like hand sanitizer have real demand peaks and then pretty sharp declines.” As a result, High’s has “set up ways and relationships to be able to quickly source items,” he noted, as well as different distribution channels to get the products to the stores.

In an effort to maximize strong beer trends, Fuel City, meanwhile, has added beer promotions and endcaps of multipacks, Segura said.

2021 AND BEYOND To hang on to any successful sales bumps retailers experienced in 2020, suppliers encouraged retailers to: • Pay close attention to offerings; • Avoid out-of-stocks; • Merchandise effectively; • Explore emerging sales channels.

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Noting that c-stores are still the channel of choice for energy drink consumers, Freck advised retailers to “focus on cold availability and efficient assortment.” Big Ideas’ Segal suggested that for at least the first half of 2021, c-stores should devote a special section to COVID-19-related merchandise, while alcoholic beverage marketers stressed the opportunity to promote packages for home-entertaining occasions via in-store merchandising. Both Anheuser-Busch’s Giderof and Diageo’s Spinelli pointed to the surge in e-commerce shopping during the pandemic and said c-stores should look to participate. “Operators must embrace this revolution or be left behind as the retail landscape adjusts,” Spinelli said.

Convenience retailers expect that many of the in-store trends born of the pandemic will continue, at least for the immediate future. “In the short term, customers will still be wary of visiting locations as often as they did before the pandemic,” said Bumgarner. “The further removed from the pandemic, things will slowly revert back to the way they were,” he continued, “but trends like delivery and increased cleanliness and disinfection will remain.”

PRIDE Stores’ Peckat added that one of the positive things that has emerged from the pandemic is support for local businesses, and that assistance will bolster a quick recovery for c-stores. “There will always be a need for convenience,” he said. “Traffic will come back.

We’ll do just fine.”

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

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U.S. Convenience Store Count Stands at 150,274 Stores The industry fared well despite an eventful year, but the number of small companies continues to decline.

“ While pandemic-related restrictions significantly affected commuting in 2020, leading to an estimated 10% to 15% decrease in fuel demand, fuel was still an important convenience offer as customers increasingly relied on their local convenience store to bundle shopping occasions when fueling up and also purchasing fill-in grocery items and take-home meals at stores,� said NACS Vice President of Research Lori Stillman.

150,274

There are convenience stores operating in the United States, a 1.6% decrease in the number of stores in operation (152,720) at the close of 2019, according to the 2021 NACS/NielsenIQ Convenience Industry Store Count. The store count is based on c-stores that were open as of December 31, 2020.

Convenience stores sell an ESTIMATED 80% of the fuel purchased in the United States, and the new store count shows that 121,538 convenience stores sell motor fuels (80.9% of all c-stores), a slight drop from 121,988 stores selling fuels the year prior.

The decrease in the total convenience store count was expected, given the overall retail contraction in the U.S. THE INDUSTRY DECLINE WAS LED BY A 3.1% DECREASE in single-store operators (92,196 in 2020 vs. 95,108 in 2019), which account for 61.4% of all convenience stores. In addition, the decrease in the industry store count was more pronounced among stores that did not sell fuel.

OF THE TOTAL 2,446-STORE DECLINE:

1,986 did not sell fuel, compared to 460 that sold fuel.

CHANGE IN STORE COUNT, 2020 VS. 2019 COMPANY SIZE

BY STORE COUNT

2020

2019

Unit Change

% Change

A (1-10)

96,963

99,837

(2,874)

-2.9

B (11-50)

9,704

10,082

(378)

-3.7

C (51-200)

8,063

7,569

494

6.5

D (201-500)

5,257

5,393

(136)

-2.5

30,287

29,839

448

1.5

E (501+)

Source: 2021 NACS/NielsenIQ Convenience Industry Store Count

The decline of one-store operators continues a multi-year trend.

Back in 2017, one-store operators made up a record 63.2% of the industry. Meanwhile, the percentage of one-store operators that sell fuel dropped to 57.1%, the lowest since 2010 (56.7%).

Store Count Growth Since 2009 Single stores

Despite the third-straight yearly decline in stores, the overall convenience store count has increased 2.7% during the past decade. The last time the industry saw multi-year declines was 2009 and 2010, related to the economic fallout of the Great Recession.

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+6.6% Chain Stores

+2.4% CONVENIENCE.ORG

The sustained growth of online shopping and the long-term effects of the pandemic will continue to reshape consumer shopping routines and affect the overall retail landscape and make for extremely challenging times. At the same time, there are opportunities, especially for small retail, to implement more online offers and last-mile fulfillment to provide convenience, however the customer defines it,” said Andy Jones, NACS vice chairman of research and technology, who is president and CEO of Sprint Food Stores of Augusta, Georgia.

PERFORMANCE VS. OTHER CHANNELS The decline in the convenience store count reflects a decline in all brick-and-mortar stores. Overall, retail contracted 2.1%, with the dollar store channel being one of the few channels that saw growth (+3.1%). All other major channels had fewer units by December 2020. The convenience store count represents nearly one third (31.9%) of the U.S. brick-and-mortar retail universe tracked by NielsenIQ. CHANNEL

2020

2019

Unit Change

% Change

Convenience

150,274

152,720

(2,446)

-1.6

Grocery

47,066

49,034

(1,968)

-4.0

Drug

41,000

41,127

(127)

-0.3

Dollar

34,215

33,185

1,030

3.1

Cigarette Outlet

10,180

11,109

(929)

-8.4

Liquor/Beer/Wine Specialty

45,473

46,381

(908)

-2.0

Source: 2021 NACS/NielsenIQ Convenience Industry Store Count

In addition, “gas station/kiosk” stores sell fuel but not enough of an in-store product assortment to be considered convenience stores. Overall, there are 15,638 kiosks, led by 1,673 kiosks in California, 1,339 in Texas and 924 in New Jersey, a state that requires full-service fueling. The kiosk format saw a 9.4% decline during the past year and a 29.2% drop over the past five years as more consumers seek out stores with robust food and beverage offers.

TOP 10 STATES BY STORE COUNT

New York (393 stores)

5,890

5,564

4,855

4,698

4,629

Florida (192)

6,574

5,000

8,096

12,074

10,000

9,619

15,000

California is the only state among the top 10 that added stores in 2020, with an increase of 84 stores over 2019.

15,695

NUMBER OF STORES

20,000

These States Lost the Most Stores:

as of December 31, 2020

Georgia

North Carolina

Ohio

Michigan

Pennsylvania

Illinois

0 Texas

California

Florida

New York

Texas (161)

Source: 2021 NACS/NielsenIQ Convenience Industry Store Count CONVENIENCE.ORG

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PAPE T A P Y B

T I E K BA T I E K A M T

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U O Y I LL

CONVENIENCE.ORG

Entice shoppers with great aromas, packaged products and LTOs.

S

ince last March, COVID-19 has altered the way Americans live, work, shop and eat. A survey conducted in May 2020 by Influence Central, a marketing organization, found that some Americans are making better food choices during the pandemic, including eating more fruits (42%), more vegetables (30%) and more protein (30%). However, 47% of respondents say they’re eating more sweets than pre-pandemic, which is not surprising. Reaching for a sweet treat is a common response to stress and boredom.

Research commissioned by General Mills found that the pandemic has spiked a craving for comfort food, with 26% of survey respondents hankering for baked goods more than

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normal during the past six months. The most-indemand treats were cookies (57%), bread (50%) and cake (42%), the survey discovered.

Commercial baked goods have been selling well since the pandemic began. “We’ve been seeing a 7 to 10% year-over-year overall increase,” said Eric Richard, industry relations coordinator, International Dairy Deli Bakery Association. “The year-to-year percentage for in-store fresh is not nearly at the same level as commercial, which makes sense. A lot of bakeries in retail settings have been closed or have been at limited capacity— at least in the early months of the pandemic.”

One big change for bakery is the former habit of buying baked goods in bulk. “People just aren’t buying a dozen donuts for an office event or rolls for a family dinner,” he said. “Their tastes haven’t changed. They’re still looking for those products.

It’s the quantity that’s different. People just aren’t having the same get-togethers and occasions that they did pre-pandemic.”

COVID-19 also has impacted self-serve foods. According to the U.S. Food and Drug Administration, there is no current evidence to support the transmission of COVID-19 from food or

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37

food packaging. However, the agency has advised foodservice operators to discontinue salad bars and self-serve food stations that require customers to share utensils or dispensers.

Before the pandemic, Yesway convenience stores of Des Moines, Iowa, and Allsup’s stores of Clovis, New Mexico, displayed fresh donuts in self-serve bakery cases. “Since then, the bakery case has transitioned to individually wrapped private-label items,” said Alan Adato, manager, merchandising and procurement for Yesway/Allsup’s.

It’s the same story in York, Pennsylvaniabased Rutter’s stores. “Around mid-March, we decided to move all our fresh self-serve products to packaging,” said Joseph Bortner, manager, center store category, Rutter’s. “This allowed us to maintain and stay in business through the pandemic, while extending the shelf life of products previously unpackaged.”

Expect to see a greater use of bags and pouches for merchandising all types of foods, according to the latest “Flexible Packaging Assessment Report” from the Association for Packaging and Processing Technologies. Advances in materials lower the cost of packaging, give shoppers a better view of the product and extend the shelf life of the food inside.

“Packaged sweet snacks are typically one of the more impulsive purchase categories in a c-store,” said Jayme Gough, research manager, NACS. “Items that are pre-packaged tend to be a great offer for customers who are on the move and will eat while performing some other activity.”

COOKING UP A PROGRAM C-stores can take several paths to offer customers a variety of baked goods. Retailers can source packaged products from vendors, choose a branded turnkey program, partner with a commissary that serves multiple locations or bake fresh items in store. They can even offer customers another retailer’s products as King Fuel, a 14-store-chain, is doing with Einstein Bros.

Bagels in Houston, Texas.

Some larger chains, such as Yesway and Allsup’s, offer their own private-label bakery items that are made and packaged in facilities across the

Bakery products are highly impulsive, and so we typically look to bundle them with other staples in the store.

The self-serve bakery case is still a good way to reach consumers, said Richard. “Offer these products pre-packaged, and maybe it’s one item in a package or two or three,” he said. “Consumers want these products, but they’re not going to commit to a dozen.”

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United States. “Items include fried pies, brownies, gourmet cookies, mini donuts and donut holes from California, honey buns from North Carolina, muffins from New Jersey and marshmallow rice squares from Pennsylvania,” said Derek Gaskins, chief marketing officer, Yesway.

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“We source our private-label items from suppliers who provide quality products at a great value,” he said. “Each brand of bakery items is stocked in their respective stores to provide a consistent selection of products for customers, and we’ll continue to explore opportunities to reciprocate across banners and offer a variety of each brand in our banners.”

The Rutter’s bakery sells traditional donuts, brownies, loaf cakes and muffins, as well as crème-filled whoopie pies, a regional favorite.

The chain offers products that are delivered fresh, baked in-store and prepared or finished products that can be thawed and served.

“We’ve taken a blend of all methods to increase variety while maximizing shelf life and margins,” said Bortner. “I wouldn’t say one is better than the other.

It all depends on the product quality and programming with the supplier in order to make the most out of any particular method.”

FRESH BAKED The aroma of warm pastries and cookies fresh from the oven serves as a form of “sensory marketing,” a tactic aimed at appealing to a consumer’s senses since smell is strongly linked to emotion. According to the American Marketing Association, an attractive scent can entice customers to stay in a store or business up to 44% longer, and certain smells can encourage hunger, boost alertness and prompt purchases.

The Plaza Pantry Bakery inside the Montevideo Travel Plaza in Montevideo, Minnesota, bakes a wide range of pastries in-store every day, which “makes the store smell amazing,” said Robin Envoldsen, manager.

“We purchase par-baked donuts, pastries, cookies, muffins, strudel and turnovers from Henry’s Foods,” she said. “In the early mornings, we focus on donuts and fresh-baked caramel rolls. Midday, we shift to muffins and strudel and move those CONVENIENCE.ORG

DIY Baking At-home baking has been on the rise since the COVID-19 pandemic hit. Preparing labor-intensive foods is a way to stay busy, keep homebound youngsters occupied and learn something new.

Although baking staples—flour, eggs, sugar and vanilla extract—aren’t commonly thought of as typical convenience store merchandise, sales of those items have trended upward since midMarch. In fact, shoppers are increasingly turning to c-stores for pantry items during the pandemic, according to a NACS survey of U.S. convenience store owners released April 1, 2020.

At King Arthur Flour in Norwich, Vermont, sales spiked 153% from March through June 2020. Company research found that 80% of “infrequent” bakers are now baking a minimum of a few times a month. And according to the NPD Group, sales of bread machines were up 800% in April, compared with April 2019.

Cal-Maine Foods, America’s largest egg company, reported sales for the fiscal fourth quarter up 62% over 2019. Company executives attribute the increase to consumers cooking at home. Innova Market Insight notes that home bakers like whipping up baked goods in their own kitchens because they know exactly what ingredients are in the finished product.

Normally, 83% of all products sold at convenience stores are consumed within an hour of purchase, but many c-store shoppers are buying items to bring home. “Convenience stores could be poised to be a dominant outlet for baking staples,” said Jeff Lenard, vice president of strategic industry initiatives for NACS.

items to the center of the case. Cookies are baked in the late afternoon hours to flood the store with the enticing smell.”

The travel plaza also creates a feast for the eyes.

“We use a variety of sprinkles and colored frostings,” Envoldsen said. “We change them with every season, and we have a very talented baker on staff that incorporates her fresh ideas and has a special touch.”

At 7-Eleven, fresh bakery and multi-day packaged bakery offerings are made and delivered by local partner bakeries, but the chain also gives customers that “just out of the oven” experience through a pilot program called “Bake in Store.”

Currently available at more than 2,000 select locations, “this program allows us to prepare craveable pastries like croissants, cookies and

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Yesway has transitioned away from self-serve bakery case items to pre-packaged private-label baked goods during the pandemic. 7-Eleven’s new Bake in Store program entices customers to enjoy cookies, muffins and butter croissants baked fresh daily.

40

muffins daily—sometimes made multiple times a day,” said Vareesha Shariff, product director, 7-Eleven. “Our most popular items are cookies, including the ever-popular chocolate chip, oatmeal and red velvet. The No. 1 pastry item is the all-butter croissant.”

VARIETY AND PROMOS Seasonal bakery items and limited-time offers are a proven way to spice up the everyday bakery case.

“People still celebrate,” Richard said. “They look for pumpkin spice and maple-flavored products in the fall, so it’s important that bakeries have those as part of their fall inventory.”

At Rutter’s, “we’ve always tried to maximize the bakery program by implementing some seasonal favorites, and LTOs offer us a way to add excitement and something new to the case,” said Bortner. “Bakery products are highly impulsive,

| FEBRUARY 2021

and so we typically look to bundle them with other staples in the store,” he said.

“Having bakery items in a good spot is the true key to a successful program,” said Envoldsen. “Our bakery case is at the end of a 21-foot coffee bar that features many items—coffee, juice, etc. We also have our cold-line merchandiser in the same area, so some customers may grab a soda, water or another cold item with their bakery product.

Of course, the smell of the product throughout the store is great marketing.”

Merchandising tactics vary by bakery SKU at 7-Eleven. “Packaged bakery items are merchandised in an inline set, typically adjacent to the coffee bar or on a rack at the sales counter,” said Shariff. “We display seasonal shippers in high-traffic areas to drive impulse purchasing.

We also strategically position deep-value promotional items under the front sales counter and in a basket at the register to try and catch the customer’s attention during checkout. Fresh bakery and bake-in-store products are merchandized in their designated cases, usually near the coffee bar.”

But don’t wait for shoppers to discover those tasty treasures inside your store. Use social media to generate interest in your baked offerings, Richard advised, and make sure you stay in stock.

“There was a sense of hesitancy about buying fresh [foods] online, but now people are at a place where they feel comfortable doing that,” he said.

For retailers who want a strong online presence, it’s important to have a robust online inventory, plus an accurate inventory tracking system.

“If someone is purchasing baked goods online, make sure those baked goods truly are available,” Richard said. “You don’t want shoppers receiving an order with missing items. And that could happen if your online platform doesn’t show all the products available and isn’t tracking the inventory properly.”

Pat Pape worked in the convenience store industry for more than 20 years before becoming a full-time writer.

See more of her articles at patpape.wordpress.com.

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FOR SUCCESS Equipment pros stress sanitation protocols, touchless innovations and limited customer access to assure foodservice safety.

BY HOWARD RIELL

A

s convenience store operators adjust to a new normal, they are faced with the challenge of re-evaluating their foodservice programs and updating food production areas to assure an all-new level of food safety and sanitation.

When it comes to foodservice equipment, upgrades may well be called for, and new policies and procedures for everything from beverage machines to condiment dispensers and roller grills to HVAC systems may need to be established and implemented. “First of all, thank God, so far there has not been any relationship between food and COVID,�

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FEBRUARY 2021 |

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HVAC’s Role in Fighting COVID-19 In this era of COVID-19, thorough ventilation is key. Open kitchens offer better airflow than confined spaces where employees prepare food.

“This is very critical,” said Jeff Nelken, a food safety/ HACCP consultant based in Woodland Hills, California.

“It’s not just a question of, ‘Oh I’ve got the air conditioner on.’ It’s like going into a room that has dead, stagnant air.

That’s the environment that the virus likes to live in; it’s not moving around and can just float. You have to make sure there is a 30% to 50% exchange of air. We need to get the HVAC people on their toes and say, ‘What can I do to improve this?’”

In fact, the Los Angeles County Department of Public Health, one of the nation’s largest, calls for HVAC systems to be in good working order and for operators “to the maximum extent possible” see to it that “ventilation has been increased.” It recommends “installing portable high-efficiency air cleaners, upgrading the building’s air filters to the highest efficiency possible and making other modifications to increase the quantity of outside air and ventilation in all working areas.”

Poorly ventilated spaces like retail stores have to ensure that their HVAC systems are properly cleaned with EPAapproved disinfectant, filters changed on a regular basis and air ducts disinfected to stop the spread of COVID-19 droplets, said Vinay Panday, director of marketing for Alliance Environmental Group LLC, an environmental remediation company based in Azusa, California.

said Jeff Nelken, a food safety/HACCP consultant based in Woodland Hills, California. That said, foodservice is still an area that requires the utmost attention.

“The world as we know it has changed postCOVID,” said Vinay Panday, director of marketing for Alliance Environmental Group LLC, an environmental remediation company based in Azusa, California. “Businesses have a far greater responsibility to ensure that customers and employees are safe on business premises. COVID-19 has placed a much-needed emphasis on ensuring cleanliness in every form.”

Indeed, in the wake of COVID-19, “consumer safety concerns are at the forefront of the minds of retailers and shoppers alike,” suggested Sean Burke, associate partner and retail industry lead for Clarkston Consulting in Durham, North Carolina.

“These concerns are escalated in higher-traffic, lower-square-footage stores that have tougher challenges with social distancing.”

C-store operators looking to update foodservice production to meet the challenges of COVID-19 are in a tough spot, according to David Crawford, president, Green Valley Grocery/Crawford Oil/ Crawford Coin in Las Vegas. “It is a difficult question to answer. Every city has different rules.

There will be new permanent local, state and federal rules that impact how we build and lay out stores and how we operate existing locations in regard to sanitation, packaging and self-serve versus employee-served items. Retailers are in a difficult position right now; many of us need to invest in our foodservice programs, and at the same time we don’t know what the regulatory landscape will look like in the months ahead.”

That said, operators are looking at a variety of ways and means to assure food safety.

SELF-SERVICE

Kaylyn Brunskole, technical manager of food equipment at Ann Arbor, Michigan-based NSF International, said she has seen an increase in requests for certification for touchless operations equipment or add-ons to existing equipment to render it touchless—for example, valves for beverage dispensers—as well as automated equipment and the addition of shields to products.

“A store can do everything right, but if a customer sees another customer breaking social norms or not following protocol, they are unlikely to make a purchase themselves,” Burke pointed

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out. He calls moving to staff-serve the likeliest way to ensure that customers feel that the integrity of protocols is being followed.

“It all comes down to the person handling the food,” said Amer Hawatmeh, a veteran convenience store and restaurant operator who recently shuttered his long-standing operations in St. Louis, Missouri, in favor of relocating to California. “They have to be clean, healthy and aware of all cross-contamination rules and must get food to 145 degrees to kick all possible germs.”

The other concern, Hawatmeh noted, is that the self-serve aspect is endangered by “people who are not hygienically smart … This may eliminate the self-serve operations.” Kitchens will become “more closed off or limited for the safety of the product delivered to customers. Passthrough boxes and sealed containers will become the norm.” With pass-through service, foodservice staff place the container onto a shelf on one side, and the customer takes it from the other to eliminate direct contact.

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“ Many of us need to invest in our foodservice programs, and at the same time we don’t know what the regulatory landscape will look like in the months ahead.”

country emerges from the pandemic. Sneeze guards, common in the past, should be considered a must at this stage.

Nelken agreed. “There are several companies that very inexpensively have begun using side guards. I would like to protect the roller grill a little bit better with COVID-19.” Many operators have introduced sealable food bags.

BEVERAGE STATIONS

Open-style condiment bins with flip-up lids for toppings such as diced onions, pickle relish, jalapeños and the like should also be positioned for staff-service only, said John Barja, president of Foodesign Associates in Charlotte, North Carolina. Self-service condiments should be limited to individually sealed packets.

Nelken said that to maximize contactless foodservice, companies have recently introduced condiment dispensers that pour automatically when a container is placed beneath a spout, much as hand-sanitizing units do. Their success is, of course, contingent on the thickness of the condiments being dispensed. “If your salsa has huge chunks the size of your fingernail it’s not going to go through the dispenser,” he said.

Digital-ordering kiosks and/or ordering via smartphone should be considered to reduce faceto-face contact between staff and customers, said Barja. “Grab-and-go self-service hot selections should be limited to individually packaged items using an enclosed heated case for items such as breakfast biscuit sandwiches, taquitos, dogs or pizza-type items.”

The idea is taking hold. According to Patsy Varpula, pricebook manager for the nine-store Fabulous Freddy’s Car Wash c-store chain in Las Vegas, “Nothing is self-service in our stores at this time. Where we were able to, we moved to a full-service approach of exposed items such as roller grills or anything open to the air, where a cashier would have to scrub down and serve the customer.”

ROLLER GRILLS In particular, roller grills should no longer have open access for customer self-service. Instead, they should be placed behind a tall-profile vertical protector view panel with staff access from the rear for filling customer orders, experts said.

From an equipment perspective, Burke expects roller-grill usage to resume once the

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| FEBRUARY 2021

Operators should consider the use of fully automated coffee-brewing dispenser machines that include top-mounted bean hoppers. These systems, said Barja, are set up to brew individual cups and eliminate a large portion of direct contact with equipment by staff as opposed to standard brewing in portable containers or pots.

“As important as soda is, you need to figure out whether you are going to pour it for your customer or request from your soda supplier a dispensing unit that can be contactless,” said food safety consultant Nelken. “You need to start looking at all the equipment that you are using in your operations, and what are the newest available resources for not touching the button, because that’s the hardest thing.”

SANITIZING AND MAINTENANCE

From both consumer and operator perspectives, said Alliance Environmental’s Panday, it is “all about the possible contamination of spaces and surfaces within the convenience store.” He calls it vital that c-store owners properly clean, sanitize, disinfect and decontaminate equipment properly to ensure the safety of their customers and employees.

Such policies and procedures, Panday said, are “over and above the hygienic preparation of food and extend to the actual kitchen systems.” For instance, it is “imperative that kitchen exhaust hoods are cleaned and sanitized. There should be a proper need for fire-stopping services, as well.

We have now deduced that the virus can remain on surfaces for a number of days, and therefore all the necessary sanitizing is required. But once more, this is a specialized service and should be conducted by a company that has the proper licensed and trained technicians and crews.”

Additionally, frequent handwashing and convenient access to sinks by all staff members who handle food products and open containers are critical.

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EQUIPMENT UPGRADES

“If your current foodservice operation cannot be adapted to meet safety suggestions, then now is a good time to consider a major design and equipment upgrade,” advised Barja. “Take proper planning steps that target your individual store’s needs, based on the specific range of food-and-beverage menu items you want to offer your customers and how to handle them in the safest manner.” Operators should consider using equipment with surfaces that feature anti-microbial finishes.

While upgrades obviously impact the bottom line, the expense may prove “miniscule compared to the lost income if the guidelines are not put into place,” Burke noted. If the expense cannot be absorbed into the standard cost of business, c-stores should be transparent with customers when it comes to pricing. “Rather than simply increasing the cost of a food item, note that a temporary service charge is in place to pay for increased sanitation measures. Customers will be

much more likely to accept price increases if they know it’s something they are benefiting from.”

Interestingly, NSF’s Brunskole concludes, “existing evidence suggests foodservice establishments do not need to change current cleaning and sanitizing processes for certified equipment to mitigate the potential risk of COVID-19.

Continuing to adhere to the food equipment manufacturer’s recommended cleaning instructions is essential for reducing potential contamination.”

Whatever the specifics, c-stores need at least to acknowledge that, in the age of COVID-19, business as usual when it comes to their foodservice program is no longer sufficient.

Howard Riell is a veteran journalist who has covered the convenience store industry for nearly 40 years.

2.9 Cent Transaction Fee NACS Payment Processing Program (PPP) is designed to reduce card processing fees for unbranded convenience and fuel retailers.

NACS members recieve a flat 2.9 cent transaction fee after interchange on all card payments.

Start Saving: convenience.org/LowerFees

Payment Processing Program

NACSMAG Half Page Ad Horizontal.indd 1 CONVENIENCE.ORG

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AM 2/7/2020 FEBRUARY 2021 | 10:00:42

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CONVENIENCE.ORG

BRACE FOR LIABILITY

Plaintiff’s attorneys are courting employees who contract COVID-19 on the job or bring it home.

BY STEPHENIE OVERMAN

LAWSUITS T

he next wave of COVID-19 cases that convenience stores face may be lawsuits brought by employees who contend that they were infected by the virus in the workplace.

Personal injury lawyers “are spending large sums of money advertising their services for COVID-19 lawsuits, a reliable barometer on tort litigation trends,” according to Neil L. Bradley, executive vice president and chief policy officer for the U.S. Chamber of Commerce.

“Just one prominent plaintiff’s firm alone has spent over $7 million on COVID-19 lawsuit ads.

Since April, COVID-19 has been the second most highly advertised lawsuit topic overall, and we expect these numbers to increase,” Bradley said in a September 10, 2020, letter sent to the U.S. Senate.

An employee who is injured on the job usually can only file federal or state workers’ compensation claims and cannot file a regular lawsuit, except in narrow cases. The workers’ compensation system caps businesses’ liability and bars expensive lawsuits. For employees, the advantage to this system is that they do not need to prove fault.

“Generally, employees don’t have the right to sue their employer for negligence,” noted Thomas

CONVENIENCE.ORG

P. Gies, a founding member of Crowell & Moring's Labor & Employment Group in Washington, D.C. But “many plaintiff’s attorneys are trying to plead around workers’ comp. They make a claim that an employer’s conduct was so outrageous that it was gross negligence or intentional tort.”

SEEKING TARGETED PROTECTION NACS, the Chamber of Commerce and other business groups have given support to a Senate bill that would provide targeted liability protections to businesses that have made efforts to protect individuals from the spread of the novel coronavirus. According to supporters, the legislation—“The SAFE TO WORK Act” (S. 4317)—would not protect bad actors, but only those who have made good faith efforts to comply with federal, state and local guidance. In the House, NACS has endorsed the Get America Back to Work Act (H.R. 7528).

More than a dozen states have enacted some type of liability shield to protect small business owners from being hit with lawsuits by employees who say they contracted the virus while at work. As of early December, those states

FEBRUARY 2021 |

49

Protecting Small Business According to a recent NFIB survey, nearly 70% of small business owners are concerned about increases in liability claims when reopening their businesses. More than a dozen states have enacted some type of liability shield to protect small business owners from being hit with lawsuits by employees who say they contracted the virus while at work. As of early December, those states included: Alabama, Arkansas, Georgia, Idaho, Iowa, Kansas, Louisiana, Michigan, Mississippi, Nevada, North Carolina, Ohio, Oklahoma, Tennessee, Utah and Wyoming.

States with liability shields to protect small businesses States without liability shields to protect small businesses

included Alabama, Arkansas, Georgia, Idaho, Iowa, Kansas, Louisiana, Michigan, Mississippi, Nevada, North Carolina, Ohio, Oklahoma, Tennessee, Utah and Wyoming.

The possibility of lawsuits “raises clear concerns,” said Douglas Kantor, who is counsel to NACS. He advised convenience store managers to first look closely at guidelines from the Centers for Disease Control (CDC) and the Occupational Health and Safety Administration (OHSA) and at state and local ordinances.

Create policies about sanitation, the use of face masks and rules for physical distancing that protect employees and customers from COVID-19. Then “document that employees have been made aware of the policy. Record when customers would not follow the policy. Recognize that there are some things you can’t do, but the more documentation you have shows that you’re taking it seriously,” said

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Kantor, who is a partner in the Washington, D.C., office of Steptoe & Johnson.

If an employee does contract the virus, “do contact tracing to see who that person may have been exposed to,” Kantor recommended. Depending on what you find, you may need to shut down for a period of time to have the workplace cleaned.

There are contractors who specialize in that.”

Make sure an infected employee is fully recovered before being allowed to return to work. “The typical timeframe recommended is two weeks. If they can be tested and have a negative test, that’s good,” he said, noting that companies have different policies regarding compensation during that time. “There are lots of factors—a part-time hourly worker is different than a full-time salary worker.”

Contact other employees to make sure they are monitoring themselves. “There are still some limitations, but ideally, get anybody who was exposed tested,” Kantor said. “Hopefully that ends it, but if a second person or others get it you may go through it again. You need to cut off the chain of infection as early as you possibly can.”

Don Rhoads, president and owner of The Convenience Group in Vancouver, Washington, has become something of an expert on the protocols needed to keep employees and customers safe because “Washington has been a kind of a benchmark for the rest of the country. This is where we started. We had the first confirmed case in January [2020].”

The company looked to the CDC and Food and Drug Administration (FDA) for guidance.

In addition, Washington is “very strict” about mask requirements in indoor public spaces, he said. “Early on, the governor started to lock down our state. There is a $10,000 fine if team members are not following mask protocol, unless they have a health condition. There’s one warning.

“We take this seriously and worry about thirdparty liability,” Rhoads continued. “I’ll bet the convenience-store industry has spent millions of dollars to provide safe workplaces, hundreds of thousands of dollars on PPE, premium pay so people will stay working,” he said. “It’s common throughout the industry.”

The minute an employee enters one of the group’s approximately 125 stores, “we have a temperature log. An employee cannot start the workday without that information in place. The CONVENIENCE.ORG

workplace is very clean—we use best practices,” he said.

When an employee tested positive, that person was required to isolate at home for two weeks, and “we went back and performed tracing. In 24 hours we had notified the community. That person just came back. We paid them. We did not put them on sick leave.”

Rhoads is proud that as providers of food and fuel, convenience stores have been recognized as part of the country’s critical infrastructure. “We believe as an industry that we are essential. We’ve worked hard to follow the evolution of best practices, and I believe we’re doing the best we can,” he said. “We deserve liability protection.”

New NACS Chairman Kevin Smartt testified last year in favor of targeted liability protection.

Smartt is the CEO and president of Kwik Chek Food Stores in Texas, which also has had the experience of an employee testing positive for the virus. “While we are proud of how we addressed the situation, it was neither easy nor inexpensive given the costs of the medical grade cleaning and the need to pull employees from another store in order to reopen the store where the employee worked,” he said.

Smartt noted that in addition to the internal company response, “we also notified the public via social media and the newspaper about why the store was closed and what we were doing to maintain a safe and healthy environment.”

TAKE-HOME CASES Lawsuits brought by employees who have contracted COVID-19 are not the only concern.

Between 7% and 9% of the more than 300,000 U.S. COVID-19 deaths so far are believed to stem from take-home infections, according to Praedicat, a firm that evaluates risks for insurers.

According to Thomas Gies, “we’re seeing the take-home issue across the country. People get infected and go home to their roommate or family members.” If a member of the employee’s household dies of the virus, the employee may sue, even though the household member was never on company premises.

“There’s a long history” of wrongful death cases involving industrial exposures to dangerous substances, Gies said. A case was brought by an employee who said that asbestos fibers CONVENIENCE.ORG

Generally, employees don’t have the right to sue their employer for negligence, but many plaintiff's attorneys are trying to plead around workers’ comp. brought home on his clothing infected his spouse, who died of mesothelioma.

Kantor said that take-home cases are difficult to prove, but “that cuts both ways. They’re hard for a business to disprove, too.”

In August 2020, the first take-home COVID-19 lawsuits were filed against an electrical supply company and a meatpacking facility, according to Praedicat.

Neither Gies nor Kantor have seen any of these lawsuits brought in the convenience store industry yet, but both expressed concern about the possibility.

There’s not a lot of guidance to be given about how to avoid take-home cases, Kantor said, but he recommended the same actions that are used to protect companies from employee lawsuits. Good safety policies and “the more documentation the better.”

Gies agreed. “Pay close attention to CDC, OSHA, state and local government orders. Do your level best to comply, and document like crazy everything you’ve done.”

Stephenie Overman is a workplace writer and author of Next-Generation Wellness at Work.

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Build expertise in areas that matter most to your business NACS Executive Education offers immersive learning experiences that are designed to enhance your leadership skills, fill knowledge gaps, and connect you to a global network of peers.

Expand your contribution to your organization now.

convenience.org/NACSExecEd

July 25-29, 2021

August 1-6, 2021

September 2021

Endowed by:

Endowed by:

Endowed by:

The Dyson School Cornell University

The Wharton School University of Pennsylvania

Kellogg School of Management Northwestern University

Questions?

Contact: Brandi Mauro NACS Education Program Manager (703) 518-4223 bmauro@convenience.org

October 24-29, 2021

October 31-November 5, 2021

Endowed by:

Supported by:

Yale School of Management Yale University

MIT Sloan School of Management Massachusetts Institute of Technology

Join the Masters.

Earn the exclusive Master of Convenience designation by completing 3 of our 5 programs. convenience.org/NACSMaster

COOL NEW PRODUCTS 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 last year’s NACS Show (after October 4).

The products featured here also can be seen at www.convenience.org/coolnewproducts.

COMPANY

Trident Seafoods

COMPANY

BIC Lighters

PRODUCT

PRODUCT

BIC® EZ Reach™

BIC EZ Reach

The new BIC® EZ Reach™ lighter features a 1.45-inch extended wand that helps keep fingers further from the flame. Its body is the size of a pocket lighter, so it fits comfortably in your hands, making it perfect for lighting candles, grilling and everything in between. The new design lights at any angle. Every lighter is 100% safety tested and up to 50% More Lights vs. non-refillable wand pocket lighters.

BIC® EZ Reach™ is the ultimate lighter. Visit www.shopBIC.com/newinquiry.

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Moji Sushi

Sushi Just Got a Whole Lot Cooler

Moji Sushi is the ultimate grab-n-go option for lifestyles on the run! Treat your taste buds to a flavorful, nutritious and healthy snack! Available in Classic California, Spicy Crab, California Cream Cheese and Coconut Shrimp. Moji Sushi is fully cooked and ready to eat in an 8ct tray that contains individual packets of wasabi, ginger and soy sauce!

Try Moji Sushi today and see why it’s one of the best-selling, grab-n-go items at retail.

For more information, email sales@tridentseafoods.com, call 1-800-367-6065 and visit www.tridentseafoods.com/mojisushi.

CONVENIENCE.ORG

COMPANY

Jolt

PRODUCT

Digital Task Management

With Jolt, Your Employees Exceed Expectations

Jolt Software helps c-store operators delight their customers by helping them serve hot and freshly prepared foods safely and accurately. Our team accountability and food safety solutions will put your shoppers at ease with sanitation task management you can’t fake and will provide an audit trail to make sure prepared foods are served under the highest quality and safety standards. Jolt’s labeling solution is state-of-the-art, and our digital temperature probes provide more safety and time-saving audit features that Redbook manual logbooks simply cannot match. Discover why thousands of QSR operators have become raving fans of Jolt’s food safety and team accountability solutions. To learn more, please call (888) 346-5658 option 2, or visit us at www.jolt.com.

COMPANY

COMPANY

PRODUCT

PRODUCT

Compliance Safe Solves Permit Problems

Affordable Retrofit to Enable EMV at the Pump

Compliance Safe Compliance Safe

Managing business-critical paperwork is a headache for every retailer, with risks that can lead to disruptions in your operations and loss of revenue. Built by retailers for retailers—no more spreadsheets, sticky notes or missed deadlines with Compliance Safe. Secure and store your documents in the cloud for easy access anytime and anywhere. Save time and money with CSP 2020 Retailer Choice Best New Technology Product. Available for $10/month, per location. For more information, contact Gerry@compliancesafe.com, and visit www.compliancesafe.com.

CONVENIENCE.ORG

Sound Payments Petro Solutions Sound Easy Pump

Sound Payments’ Sound Easy Pump™ is a semi-integrated, retrofit solution that can easily and cost-effectively enable EMV at the pump in a couple of hours or less. It supports contactless via card tap or NFC, QR code scanning, PIN-on-glass, MSR, and EMV chip and PIN. It is easy to install with only one power cord and eliminates the need to purchase new pumps and close stations. Sound Easy Pump™ is universally accepted and flexible, supporting future innovations. Reach out to Sound Payments at petrosales@ soundpayments.com, or call (844) 319-5635. Visit www.soundpayments.com.

FEBRUARY 2021 |

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COMPANY

Ecolab®

PRODUCT

Ecolab Science Certified™

Advancing Cleaner, Safer Practices.™

With expertise in industries ranging from foodservice and hospitality to healthcare, Ecolab® is a global leader in cleaning and disinfecting expertise for commercial environments.

Over 1,200 scientists, engineers and technical specialists have combined our science-based solutions with decades of cleaning expertise to develop the Ecolab Science Certified™ program. This comprehensive program was created to deliver a higher level of cleanliness through science-backed products, including the fastest product available proven to kill the COVID-19 virus, and protocols to help protect the places you shop, eat, play and stay by reducing the risk of exposure to germs. For more information, call (817) 527-3860, or email c-storeinfo@ecolab.com

COMPANY

NACS

PRODUCT

NACS State of the Industry Report® of 2019 Data

The Only Benchmarking Report for Convenience

Today’s dynamic landscape requires agility along with a balance of efficiency and effectiveness to free up resources and fuel new growth. But how do you know where to invest in technology and how to harness data to deliver targeted, personalized offerings and customer experiences? For more than 50 years, the convenience and fuel retailing industry has relied on the NACS State of the Industry Report® to answer that question and more. The report gives retailers the essential edge to win trips, exceed shopper expectations and grow in an increasingly competitive retail landscape. Both hard copy (last year in this format) and digital PDF versions are available now at convenience.org/soireports2020. Grab your copy today.

For more information, contact Doug Spencer, Director, Products and Services, (703) 518-4293.

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CONVENIENCE.ORG

COMPANY COMPANY

PepsiCo Inc. PRODUCT

Cheetos® Crunch Pop Mix

PepsiCo Inc. PRODUCT

Cheetos® Mac ‘n Cheese

Bringing Two Favorites Together!

Your Favorite Snack Is Now a Cheesy Mac!

COMPANY

COMPANY

PRODUCT

PRODUCT

The Flavor You Have Been Waiting For!

The Newest Addition to the DEW Flavor Family

The NEW Cheetos® Crunch Pop Mix gives you double the Cheetle® power and cheddar flavor with the perfect mix of Cheetos Popcorn and Crunchy Cheetos. Available nationwide in multiserve (7oz/ SRP $3.99) and single serve packages (2.5oz/ SRP $1.89).

For more information, visit www.cheetos.com.

PepsiCo Inc. Pepsi™ Mango

In March 2021, Pepsi will introduce the most popular fruit in the world to the cola category. Pepsi™ Mango—the deliciously refreshing taste of the Pepsi you love now with a splash of Real Mango. Uniquely refreshing, universally appealing. Also available in Zero Sugar.

CONVENIENCE.ORG

Introducing Cheetos® Mac ‘n Cheese. Bold, creamy and full of Cheetos® flavor, this is the mac you’ve been dreaming of for lunch, dinner and anytime in between. Get your paws on a box or cup of this deliciousness. Available Summer 2021. For more information, visit www.cheetos.com.

PepsiCo Inc. MTN DEW® MAJOR MELON™

MTN DEW® MAJOR MELON™ is the newest addition to the DEW flavor family. Its juicy, watermelon flavor has an added DEW twist and is sure to be an instant Dew Nation favorite. MTN DEW® MAJOR MELON™ is available nationwide in two iconic variations; Full Sugar and Zero Sugar.

FEBRUARY 2021 |

57

COMPANY

REIGN Total Body Fuel PRODUCT

REIGN Total Body Fuel & REIGN Inferno

New Year, New You, NEW FLAVORS!

BOOST, HYDRATE, RECOVER with 300 mg of natural caffeine, BCAAs, electrolytes and CoQ10—all with ZERO sugar. REIGN Total Body Fuel provides exactly what you need to power through your day. Try our NEWEST flavors launched January 25: Cherry Limeade, White Gummy Bear and Inferno’s Watermelon Warlord. For more information, visit www.reignbodyfuel.com and call (833) 836-5857.

INDEX NEW TO THE INDUSTRY

BIC Lighters................................................................................ 54 Trident Seafoods....................................................................... 54 NEW TECHNOLOGY

Compliance Safe....................................................................... 55 Jolt................................................................................................. 55 Sound Payments Petro Solutions........................................ 55 COMPANY

NEW SERVICES

Hunt Brothers® Pizza

Ecolab®......................................................................................... 56

PRODUCT

NACS

Chicken Alfredo Pizza

New Limited Time Offer From Hunt Brothers® Pizza!

Introducing Chicken Alfredo Pizza! A classic, favorite American dish, Chicken Alfredo Pizza offers a comforting flavor combination that customers already know and love.

Chicken Alfredo Pizza features our original crust topped with a creamy Alfredo sauce, a blend of 100% natural part-skim mozzarella, natural white cheddar, and aged Asiago cheeses, and all-natural chicken breast. For more information, call 800-453-3675, or visit www.huntbrotherspizza.com

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NACS............................................................................................. 56 NEW FLAVORS

Hunt Brothers® Pizza................................................................ 58 PepsiCo Inc................................................................................. 57 REIGN Total Body Fuel............................................................ 58

CONVENIENCE.ORG

A new year, offering tremendous opportunities.

With a full line-up of virtual and live programming in 2021, NACS has something for everyone.

convenience.org/events

Signature Event

Leadership

NACS Show October 5-8, 2021 Chicago, IL

NACS Leadership Forum

May 12-14, 2021 Kansas City, MO

October 24-29, 2021 Yale School of Management New Haven, CT Endowed by: Altria

Global

NACS Leadership for Success

NACS Innovation Leadership Program*

NACS Convenience Summit Europe June 1-3, 2021 Dublin, Ireland

NACS Convenience Summit Asia August 16-20, 2021 Virtual

Government Relations NACS Day on the Hill March 23-24, 2021 Live Virtual

NACS In Store Throughout 2021 Stay tuned!

May 2-7, 2021 Richmond, VA

NACS Executive Leadership Program* July 25-29, 2021 Dyson School Cornell University Ithaca, NY Endowed by: Reynolds

NACS Financial Leadership Program* August 1-6, 2021 The Wharton School University of Pennsylvania Philadelphia, PA Endowed by: Cash Depot

NACS Marketing Leadership Program* September 2021 Kellogg school of Management Northwestern University Evanston, IL Endowed by: Frito Lay, Keurig Dr Pepper, Nielsen

NACS Women’s Leadership Program*

October 31- November 5, 2021 MIT Sloan School of Management Cambridge, MA Supported by: Gilbarco Veeder-Root, Mondelez, PDI, Shell

Staff | Operations NACS Human Resources Forum March 9-11, 2021 Live Virtual

Industry Insights & Data NACS State of the Industry Summit April 14, 2021 Live Virtual

*PLAN NOW! Achieve the Master of Convenience designation by completing 3 of the 5 Executive Education programs.

GAS STATION GOURMET

Catfish and Bluegrass Stop-N-Shop Over the Hill Grill prides itself on flavorful, fresh food and community.

BY AL HEBERT

Stop-N-Shop Over the Hill Grill owner Dipa Patel and her all-female team keep the Loudon, Tennessee, c-store humming. Foodservice is a big part of the business, and Patel touts daily specials on social media.

I

n East Tennessee, just west of the tiny town of Loudon and off Interstate 75, sits the Stop-NShop Over the Hill Grill on a sprawling parcel fronting U.S. Highway 72. There, owner Dipa Patel works alongside a small but mighty team of women to keep local residents well-fed, fueled and supplied.

Patel bought the gas station and convenience store in 2017, her second venture after running another c-store about 40 miles away in Etowah, Tennessee. After taking over the business from the prior owners, Patel expanded the selection of goods for sale, adding “additional brands of beer, cigarettes and other items,” she said. Recently, she replaced the 60-year-old gasoline pumps on the forecourt—a major undertaking but a needed one to offer her customers the ability to pay at the pump.

From the outset, Patel knew she could stake her claim to fame with food, so she hired Mallory Davidson to make things happen in the kitchen.

“The cooks are important. Without them I’m nothing,” Patel said.

Davidson set about perfecting a Southern favorite—fried catfish. She wanted a dish to bring in customers and keep them coming back. “We do

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a special marinade. It’s a secret, but we marinate if for 24 hours. It’s coated in cornmeal and fried,” explained Davidson.

The fried catfish became popular with the East Tennessee locals, and in 2019, it gained national fame when a writer for USA Today happened into the store. “She loved our catfish,” Patel said. “I had great business; people came from all over. She put such a good word out, and that helped the store a lot. People came from everywhere.” The writer said of the catfish, “the breading provides a perfect crunch with a soft filet.”

The hamburgers are another popular choice at Over the Hill Grill. “We grind the meat fresh. We make quarter-pound and half-pound hamburgers.

Fresh meat makes the difference. Everything is cooked to order,” Patel said.

The store uses Facebook to get the word out about its breakfast and lunch specials. Recent offerings included meatloaf with mashed potatoes, brown gravy and fried okra. One fan on Facebook left this review: “Great place, friendly staff with really good food ... cooked right in front of you with daily specials; all is great ... haven’t had anything bad.

My fav is philly cheese steak sandwich with tots.”

CONVENIENCE.ORG

The USA Today lady came here, and she loved our catfish.

The Stop-N-Shop team from L to R: Mallory Davidson, Christina Monks and store owner Dipa Patel. On the foodservice side of the business, fried catfish is the grill’s specialty and grabbed the attention of a USA Today writer.

An open kitchen means customers can see their food being prepared, and there’s plenty of seating at the counter and at booths.

LADIES ONLY Patel is proud of the store and where her team of dedicated employees has helped her take it. Of course, she’s implemented a strategy that she feels is key to the growth: “Woman power! We have no men working here—only women,” she said.

Resourceful employees have allowed her to work with a small staff. “My employees are very good,” Patel said.

“I have only two people working for me—one in the morning and one in the evening. They love me, and I love them.

They work in the kitchen, and I work in the front.”

LIVE BLUEGRASS Besides the food and expanded c-store offerings, Patel made another important change that brought the community to the store. She removed the pool table that the prior owners left behind, freeing up space for live entertainment.

A local bluegrass band thought the Stop-N-Shop might be the perfect place to play music and Patel agreed. “The band is called Hard Road. They come and play, and their friends come and eat the food,” she said, adding, “We were doing it every other Thursday. People would come and dance.

We stopped with the coronavirus, and we’re waiting to see what happens in 2021.”

CONVENIENCE.ORG

THE PANDEMIC AND COMMUNITY Like many businesses around the country, the COVID-19 pandemic has had an impact on the Stop-N-Shop. “We didn’t shut down, but we reduced hours and really reduced what we could offer on the menu,” Patel said. “People were just too worried to come. It really did affect the business for a while. [Customers would] call in, and we’d take it out to them.”

Curbside service has slowed down, but indoor dining and to-go orders are picking up.

As the pandemic descended on Tennessee in 2020, Patel wanted to serve the struggling families in her community. So, Stop-N-Shop reached out via Facebook last March: “To all the residents of Loudon County ... Due to the schools being closed and the concern of parents to provide food for their children during this time of crisis we will be providing scrambled eggs with biscuit or toast for breakfast and grilled cheese/ hotdog for lunch for all children K-12.

Free of charge.”

Whether it’s Southern favorites like fried catfish, fried bologna sandwiches or bluegrass music, people are drawn to this unique little c-store. Maybe it’s just that folks feel at home here. This hardworking group of ladies will tell you, “We love the people of Loudon.” The people of Loudon return the warm sentiment day in and day out. It’s no wonder Patel and her team of wonder women are feeling a bit unstoppable.

Al Hebert is the Gas Station Gourmet and showcases America’s culinary treasure— gas station cuisine. He shares these stories and on occasion, a recipe or two at www.

GasStationGourmet.com. He is a NACS Magazine contributor, bringing foodservice ideas to readers.

FEBRUARY 2021 |

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GLOBAL TRENDS

Changing Course

Musgrave pivots convenience, foodservice and grocery during the pandemic to meet customer needs.

BY FIONA BRIGGS

In response to the pandemic, the Centra convenience chain offered phone-in facilities and moved quickly to look after vulnerable customers through an initiative that delivered groceries to them.

O

perating a world class, end-to-end food and beverage business, NACS member Musgrave has been on the front foot during the COVID-19 pandemic, and the business is set to leverage that advantage as the world comes out on the other side and adapts to the “new normal.”

Noel Keeley, who took up the reins as CEO of Musgrave in January 2020 after a 15-year career with Ireland’s leading food retail, wholesale and foodservice company, acknowledges he had to hit the ground running and respond to new shopping patterns and trends as the crisis hit. “The first thing we saw was a reversion to in-home consumption of food, particularly during the lockdown period,” he recalls.

There was also a drop in footfall but an increase in transaction size, across all store formats. “People were spending less time in store but buying more.

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They were getting in and out quickly, shopping with a list, and there was less browsing,” he said.

For its part, Musgrave moved quickly and was first in the market to introduce precautionary measures for both colleagues and consumers, Keeley said. “The first thing we did was ensure our colleagues were safe. Keeping the food supply chain open was of paramount importance. Our secondary priority was to make sure the consumer was safe, so we quickly moved to implement social distancing as well as installing glass screens, hand sanitization and hygiene measures before we were mandated to do so by government.” Those early actions paid off with Musgrave’s Centra convenience retail business and SuperValu supermarket chain both outperforming the market.

Protocols were also put in place in the event any colleague tested positive for the virus. Close CONVENIENCE.ORG

contacts would then be required to self-isolate.

It worked effectively, Keeley said. As a consequence, the business did not have to close stores, except for high convenience locations in cities like Dublin and Belfast, where the footfall was obliterated.

As in other markets, Musgrave also experienced a strong move toward contactless and frictionless payments and joined a successful lobby to increase the contactless limit from €30 to €50 (US$40 to $68). “That contributed to people’s safety,” he says.

ONLINE GROWTH There was also extraordinary demand in online grocery and a staggering 400% increase in sales, Keeley revealed. “That was like building eight large SuperValu stores in two weeks,” he said, adding that while, “it’s an ill wind that blows nobody any good, we were able to deploy our delivered foodservice and hospitality colleagues to meet that online demand.”

Within the Centra convenience chain, meanwhile, neighborhood stores offered phone-in facilities and moved quickly to look after vulnerable customers.

Musgrave also partnered with the Gaelic Athletic Association—the business is a key sponsor—to create Club Together, an initiative whereby local clubs shopped for the vulnerable and were given priority access in-store and then delivered to those customers.

“It was humbling and fantastic to watch,” Keeley said. “We talk about ‘growing good business,’ but what that means for us is having businesses that are commercially successful but also do good in the community. It’s not about running shops or supply chain but making sure people have food.”

At the height of the crisis, online penetration rose from 8% to 12%. It’s dropped back subsequently but not completely. “It will stay for some people, who have been pleasantly surprised by online shopping, but I believe it will be a mix of bricks CONVENIENCE.ORG

NACS GLOBAL CALENDAR JUNE 1-3, 2021

NACS Convenience Summit Europe Dublin, Ireland www.convenience.org/cse Musgrave has seen significant growth in plant-based products and has signed an exclusive partnership agreement across Ireland with The Happy Pear, the leading vegetarian and vegan food brand in the country.

AUGUST 16-20, 2021 NACS Convenience Summit Asia www.convenience.org/asia

OCTOBER 5-8, 2021

and clicks in the future, particularly for buying fresh food,” Keeley said.

NACS Show Chicago, Illinois, United States www.nacsshow.com

FORMAT EXPERIENCES The retail experience has been different across Musgrave’s varied retail formats, too. As a grocery supermarket, Supervalu has benefited, albeit with a shift in the product mix (and margin) to more traditional categories such as pasta, rice, home baking, household, hygiene products and alcohol and tobacco.

Centra’s community or neighborhood stores and forecourts have also enjoyed sales uplifts, catering for larger baskets, while still providing good value.

Forecourt locations with a stronger foodservice offer and/or high convenience have not traded as well, however. Fewer fuel customers had a knock-on effect in terms of footfall, with fewer people buying lunch on the go, for example.

ABOUT MUSGRAVE Founded in 1876 as a small grocery owner by two brothers, today Musgrave is Ireland’s largest private employer and leading food retail, wholesale and foodservice company. Together with retail partners, the company supports more than 41,000 jobs in more than 1,400 stores and offices, with combined total retail sales of €5.4 billion (US$7.4 billion). The company owns 11 food retail and wholesale brands and 1,500 retail partner stores across the Republic of Ireland, Northern Ireland and Spain.

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GLOBAL TRENDS

In Spain, where Keeley describes business as a microcosm of the Musgrave Group, with retail, cash and carry and foodservice operations represented, the patterns have been broadly similar to those in Ireland. While neighborhood/ community-style stores have done well, trading in coastal locations—Musgrave has strong representation in the Levante region—has been challenging as stores depend more on tourism.

Foodservice has suffered similarly, although the climate has enabled more outside dining versus Ireland. “That’s been made up in cash and carry and increased sales to small convenience retailers selling on to local communities,” Keeley said.

NACS EUROPEAN CONVENIENCE RETAIL AWARDS Nominations are open for the annual NACS European Convenience Retail Awards, which will be unveiled at the NACS Convenience Summit Europe in Dublin, Ireland, on June 3, 2021. The prestigious awards provide one of the greatest benchmarks of global convenience retailing excellence. Awards are presented in four categories: •E uropean Convenience Industry Leader of the Year • International Convenience Retailer of the Year • European Convenience Retail Sustainability • European Convenience Retail Technology The awards provide a benchmark for global convenience retailing excellence. In 2019, Reitan Convenience Denmark received the NACS International Convenience Retailer of the Year Award, which recognizes an innovative and successful international convenience store that breaks new ground and sets new innovative standards for the industry. The winner earns the accolade of “the best convenience store in the world.”

The deadline to enter the 2021 awards is March 6. Go to www.convenience.org/CSE to nominate your business for the 2021 International Convenience Retailer of the Year and for more information on Convenience Summit Europe.

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| FEBRUARY 2021

He reports that Musgrave’s foodservice business has dipped 29% and that it has not reduced its service levels. The company has also been facilitating this process with the launch of new software, which has allowed foodservice operators to get online very quickly, capturing customer orders and payments.

Keeley stated that “Credit control is a huge concern—if they have no cash flow it will be hard to continue to trade. We pride ourselves on building long-term, stable relationships, and our customers have appreciated the approach we have taken.”

NEW NORMAL Musgrave is looking to the future—the likely trends and market opportunities.

“It’s an overused phrase, but there definitely will be a ‘new normal,’” Keeley maintained. Hybrid working patterns are likely to prevail with a mix of home and office working. Similarly, there will be a mix of out-of-home and home dining. “I do think that people miss the experience of eating out—not just getting the food but that people will still search out experiential food opportunities. Food retail has an opportunity to step up,” he said.

For foodservice, the pandemic has driven growth in takeaway and aggregators with food, previously destined for people who dine out, now delivered to homes. Tapping that trend, Keeley revealed that Musgrave is trialing dark kitchens with two restaurants at a convenience store and at one of its food emporiums. “We are making that space available to those restaurants—it provides a new geography and is much more profitable for the operator as there are no front of house or insurance costs,” he said.

Other trends poised to bounce back include premiumization, and health has also become a key issue, as consumers become more conscious of what they eat and the provenance of their food. Keeley said Musgrave has seen significant growth in plant-based products, for example, and has signed an exclusive partnership CONVENIENCE.ORG

We talk about ‘growing good business,’ but what that means for us is having businesses that are commercially successful but also do good in the community.

Musgrave introduced loose fruit and vegetables and com­p ostable bags and has a target that all its own brand and in-store packaging will be recyclable, compostable or reusable by 2025.

agreement across Ireland with The Happy Pear, the leading vegetarian and vegan food brand in the country.

“While people will be accessing food in multiple ways—at the convenience store, supermarket, by online delivery and in restaurants—the one common thread will be convenience. Consumers will have the expectation to access food where and when they want it,” Keeley said.

BREXIT Trade deal or no trade deal, Musgrave anticipates changes in the supply chain due to Brexit. Keeley shared that the business has been preparing for Brexit for four years on the basis of a no-deal, worst-case scenario. It has built additional warehouse space for product to ensure availability, for example.

On a positive note, Musgrave benefits from sourcing policies—it only sells 100% Irish meat and poultry in Ireland and adopts a similar position in Northern Ireland.

How the Northern Ireland protocol will operate remains to be seen, Keeley said.

Product coming through ports could be delayed by customs, which would hamper customer satisfaction. And with no trade deal yet, a question hangs over the possibility of tariffs, too. “It’s a competitive market, and it’s difficult to call what would happen with prices,” Keeley said.

CONVENIENCE.ORG

“I think tariffs would cause the industry to say ‘is there another way?’, such as changing the supply chain and shipping directly from Europe not via the U.K. SUSTAINABILITY While COVID-19 may have temporarily stalled sustainability issues like single-use plastics in retail and hospitality, it remains staunchly on Musgrave’s agenda. “We can’t let the pandemic get in the way, and we are absolutely committed to driving a sustainability program, and we are proud to be leaders in that space,” Keeley said.

The business has already introduced loose fruit and vegetables and compostable bags and has a target that all its own brand and in-store packaging will be recyclable, compostable or reusable by 2025.

For Gen Z it is even more relevant, but there is a say-do gap, Keeley maintained.

“When I talk to my own kids, I tell them Musgrave was the first to introduce compostable coffee cups, but they challenge me that it’s not reusable,” he said with a smile. “The next generation vote with their feet—there’s no let up, and we won’t let up.”

This article was reprinted with permission from Global Convenience Store Focus, a newsletter from Insight Research. To subscribe, visit www.globalconveniencestorefocus.co.uk.

Fiona Briggs is a retail business journalist. She can be reached at fionalbriggs@gmail.com.

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CATEGORY CLOSE-UP / SALTY SNACKS

Feeling the Crunch

Typically high-performing salty snacks soften during the pandemic.

S

alty snacks have been a valued margin contributor to convenience stores for years. While the category has seen some disruption in the wake of the COVID-19 pandemic, there’s no doubt that c-stores that adhere to tried-and-true ordering and merchandising practices will be well positioned to capitalize when store traffic picks up and prior consumer shopping habits return post pandemic.

“Salty snacks continues to be one of the most important categories in the convenience-store channel and was demonstrating healthy momentum

JUST THE FACTS Average in-store category sales rose 1.6% in 2019 to $79,681, from $78,427 in the year prior, according to NACS State of the Industry data, making salty snacks the seventh-largest in-store sales contributor.

heading into 2020 before COVID,” remarked Jordan Beazley, associate manager, consumer insights and market intelligence at General Mills Convenience & Foodservice, marketer of brands including Chex Mix, Bugles and Gardetto’s. “The onset of the pandemic put a big dent into c-store traffic, and even as stay-at-home restrictions eased, consumers were still limiting trips and shopping more for at-home and less for on-the-go,” Beazley continued, resulting in increased demand for large and multipack servings, products some c-stores typically don’t offer.

Average in-store category sales rose 1.6% in 2019 to $79,681, from $78,427 in the year prior, according to the NACS State of the Industry Report of 2019 Data, making salty snacks the seventh-largest in-store sales contributor. And the category is a profitable one for c-stores. Salty snacks was the sixth-largest contributor of in-store gross margins in 2019, with 5.15% of gross margin contribution.

“The category has been showing continual year-over-year growth,” said Jayme Gough, NACS research manager.

She attributed the performance to “so much innovation, including new flavors, package types and inroads by marketers to tap into different emerging health trends.” Indeed, among the subcategories to post sales growth in 2019 were tortilla chips, puffed cheese, nuts and CONVENIENCE.ORG

iStock.com/Plateresca

BY TERRI ALLAN

Industry Sales

% of In-Store Sales 2018

2019

4.27% 4.31%

% of Stores Selling

Avg. Sales/Store 2018

$78,427

2018

2019

2019

99.6% 99.8%

$79,681

Source: NACS State of the Industry Report of 2019 Data

seeds, and “other” salty snacks, which include products like puffed onions, pork rinds, vegetable chips and chickpea puffs.

Potato chips continued to lead the category, accounting for 29% of c-store salty snacks sales, according to NACS data, down from 30% in 2018.

PANDEMIC PAUSE While complete 2020 data weren’t available at press time, there were indications that salty snacks sales in c-stores—the category’s second-largest trade channel— were challenged as the pandemic raged on. Monthly NACS CSX data indicated “a notable sales dip at the end of March into April, when many stay-at-home orders were in place,” Gough noted, with April sales even falling below that of 2017.

By June, however, with a bit of a return to travel, category sales outpaced those of the year prior. Among subcategories, potato chips appeared to be the most severely impacted during the first wave of the virus, with tortilla chips showing the smallest decline, Gough remarked.

Tom Donigan, co-founder, Field Trip Snacks, marketer of protein snacks such as pork rinds, and meat snacks like jerky, said grocery sales of his products dropped as impulse purchases receded.

“Consumers made targeted runs to grocery stores in 2020,” he explained. “They CONVENIENCE.ORG

shopped with lists, so there wasn’t much impulse buying.” In c-stores, however, “people were still buying on impulse,” Donigan said, and the company’s sales to its convenience distributors remained stable. He added that Field Trip saw a big shift to online sales last year, balancing out losses in other channels.

Elsa Douglas, manager of OK One Stop in Ardmore, Oklahoma, confirmed a falloff in salty snack sales at her store last year, largely due to slowed in-store traffic. “Many of the kids are out of school, so we don’t have parents running in looking to pick up bags of chips to go with lunch,” she explained.

Other convenience retailers reported an uptick in salty snack sales in 2020 in spite of the pandemic. Lynette Stoudt, owner of Tramway Market in Stateline,

There’s an interest in products that are perceived as healthier, such as tortilla chips.

THE POWER OF CSX DATA CSX, the engine behind category metrics and NACS State of the Industry data, provides current and customizable tools for financial and operational reporting and analysis in the convenience industry. Retailers can measure their company by any of the myriad metrics generated via our live database. Contact Chris Rapanick at (703) 518–4253 or crapanick@convenience.org for a complimentary executive walkthrough.

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CATEGORY CLOSE-UP / SALTY SNACKS

PER STORE, PER MONTH SALES

2017

2018

2019

2020

$6,500 $5,844

$6,000

$5,500

$5,000

$4,500

$4,000

JAN

FEB

MAR

APR

MAY

JUN

JUL

AUG

SEP

OCT

NOV

DEC

Nevada, said many of her customers have been indulging in snacks as virus fears permeated. “We’re selling more salty snacks, ice cream and candy,” she remarked. “People are home more and hunkering down.” Among the salty snacks that performed well at Stoudt’s store was Kraft Foods’ Corn Nuts.

DeAnn Tracy, owner of Tank-n-Tummy in Cleveland, Oklahoma, said category sales have remained strong, both before and during the pandemic. “We’ve been really busy during the pandemic,” Tracy said, noting that the rural store has proved appealing to local senior citizens forgoing trips to larger shops. Tank-nTummy devotes one-and-a-half rows to single-serve and large-size packs of salty snacks, with top-selling brands including Chex Mix, Cheetos and Gardetto’s.

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BETTER-FOR-YOU IMPACT As with other in-store categories, salty snacks have been increasingly impacted by better-for-you eating habits. “There’s an interest in products that are perceived as healthier, such as tortilla chips,” Gough remarked. That’s been the case at Wink’s Convenience store in Cape Giradeau, Missouri. According to manager Dawn Lucas, “We sell vegetable straws and baked chips, and we go through them.”

Similarly, at OK One Stop, Douglas noted that since the pandemic began, “People are eating really healthy.” Rather than bags of potato chips, customers are leaning toward items like packaged nuts and Quest protein chips, she said. Even a discount on a bag of chips (99 cents versus the typical $1.89) with the purchase of a sandwich hasn’t persuaded customers.

CONVENIENCE.ORG

iStock.com/Floortje

Source: CSX; csxllc.com

CATEGORY CLOSE-UP / SALTY SNACKS

Subcategory Performance Percent of Sales

Avg. Sales/Store

2018

2019

2018

2019

2018

2019

2018

2019

Potato Chips

30.4%

29.3%

$23,847

$23,332

$8,587

$8,253

36.01%

35.37%

Other Salty Snacks

21.7%

22.0%

$17,045

$17,550

$7,138

$6,837

41.88%

38.96%

Tortilla Corn Chips

13.7%

13.9%

$10,715

$11,054

$3,261

$3,448

30.43%

31.19%

Pretzels

10.4%

9.6%

$8,177

$7,627

$3,787

$3,509

46.32%

46.01%

Nuts/Seeds

9.0%

9.5%

$7,092

$7,557

$3,154

$3,249

44.47%

42.99%

Puffed Cheese

4.9%

5.6%

$3,835

$4,423

$1,249

$1,402

32.58%

31.71%

Crackers

3.7%

3.8%

$2,895

$3,035

$1,251

$1,354

43.22%

44.61%

Mixed

3.1%

3.3%

$2,436

$2,593

$1,027

$1,031

42.18%

39.78%

Ready-to-Eat Popcorn

3.0%

3.1%

$2,386

$2,509

$845

$976

35.43%

38.89%

100.0%

100.0%

$78,427

$79,681

$30,301

$30,060

38.64%

37.73%

SALTY SNACKS

TOTAL

Avg. GP$/Store

Gross Margin %

Those stores that separate better-for-you salty snacks from traditional items may be losing out on upselling opportunities.

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| FEBRUARY 2021

“Most buy the sandwich without the chips,” Douglas said.

Growing consumer interest in low-carbohydrate/high-fat diets such as keto has been a boon for the salty snacks marketed by Field Trip. “People have been gravitating to the keto diet. They’ve been excited about the drastic effect of the diet on their weight and health,” Donigan reported. No-carb pork rinds are among the functional salty snacks benefiting from the keto approach.

Effective assortment and merchandising of salty snacks are important to driving category sales, whether it’s during a health crisis or less troubling times. Gough pointed to special in-store offers such as lunch. Promotions, like buy one, get one, are also “great programs,” she said. Jessica McMillan, marketing manager at General Mills Convenience, added, “Since salty snacks are typically an impulse buy and eaten on the go, we recommend that retailers offer a variety of salty snacks en route to or near the register to capture incremental impulse

purchases. Cross-promoting with hightraffic areas like the beverage cooler is another great way to capitalize on in-store traffic and build a higher basket ring.” But most important, according to McMillan, is that retailers offer the right assortment of products, including forms and flavors to meet all of their customers’ needs. She identified consumer need states as “healthy, enhanced experience, sweet and salty, and flavor craving.”

Innovation is another tactic helping to drive interest in the salty snacks category. According to Gough, innovation can include new products or packaging or simpler variations, such as new flavors. At General Mills, “We think it’s important to leverage the nostalgia and familiarity of our brands that consumers know and trust, but give them a way to experience these products in new ways,” McMillan said. With spicy flavors continuing to drive growth in salty snacks, for example, the company is adding variations like Chili Cheese Bugles, Jalapeno Chili Chex Mix MAX’D and Spicy Italian Gardetto’s.

CONVENIENCE.ORG

iStock.com/Marat Musabirov

For more information on NACS category definitions, visit www.convenience.org/categorydefinitions.

Source: NACS State of the Industry Report of 2019 Data

General Mills is also introducing Muddy Buddies Pretzel Bites, a sweet and salty snack, featuring dipped pretzels with a powered-sugar coating.

BALANCING ACT While innovation plays an important role in bringing variety to the salty snacks category, McMillan noted, “Core brands still drive two times sales and over four times profit of non-core brands, so ensuring top-turning brands are on the shelf is key.” When setting shelves, General Mills recommends first grouping by segment (chips, pretzels, snack mixes, seeds, etc.), followed by brand and then by flavor. Field Trip’s Donigan, meanwhile, suggested that BFY salty snacks be included in traditional shelf sets. “Those stores that separate better-for-you salty snacks

from traditional items may be losing out on upselling opportunities,” he explained. “With consumers so interested in running in and out of stores today, they may not venture into a separate section.” He even recommended that retailers consider merchandising with buzzwords. “Salty snacks can have a negative image for millennials,” Donigan remarked, while “low-carb snacks” may be a better modifier for some BFY items.

With proper merchandising and assortment practices in place, marketers and retailers are confident that the salty snacks category will bounce back post pandemic. “When things return to normal and kids are back in school regularly,” said Douglas, “strong sales of salty snacks in convenience stores will return.”

ADVERTISER INDEX Contact Information

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AGDCTradeRelations@Altria.com................... Inside Front Cover www.altria.com www.tobaccoissues.com Calico Brands Inc. (Scripto)....................................................................26 (800) 544-4837 www.calicobrands.com C ash Depot.....................................................................................3 (800) 776-8834 sales@cdlatm.com www.cdlatm.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.

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EcoLab......................................................................................................27 www.ecolab.com L iving Essentials LLC (5-hour ENERGY)........................................7 (866) 960-1700 www.5HErewards.com

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Contact Information

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M cLane Company Inc................................................... Back Cover www.mclaneco.com

Premier Manufacturing Inc..............................................................5 & 33 www.gopremier.com

M ondelēz Global Inc. ........................................ Inside Back Cover www.mondelezinternational.com

S wedish Match North America (Zyn)..........................................15 (800) 367-3677 www.smna.com

NACS 2021 Events....................................................................................59 www.convenience.org/events NACS Convenience Matters.......................................................................4 www.conveniencematters.com NACS Executive Education.................................................................52-53 www.convenience.org/NACSExecEd

Cool New Products Guide.................54-58 www.convenience.org/coolnewproducts

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

NACS Foundation.......................................................................................6 www.conveniencecares.com

Trident Seafoods..................................................................................... 41 www.tridentseafoods.com Trion Industries Inc...................................................................................9 (800) 444-4665 www.triononline.com Vitamin Energy LLC.................................................................................69 (800) 420-3106 sales@vitaminenergyllc.com www.vitaminenergy.com

NACS Payment Processing Program......................................................47 www.convenience.org/LowerFees Placon......................................................................................................45 (800) 541-1535 www.placon.com

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BACK PAGE

Signs of Humor In addition to providing customers with gas, snacks and drinks, some convenience stores give their customers a dose of humor via signs. One store representative said about the c-store’s silly signs: “It’s easy to think of useful messages to put on the sign for things like service promotions and store specials and the like,” but the store wanted to do something different. Some of the clever messages include: • “Do not trust atoms. They make up everything.”

• “The past, future and present walk into a bar. It was tense.”

• “ Went to the Air and Space Museum, but there was nothing there.”

• “Ants are healthy because they have little antibodies.”

• “ When man discovered milk, what was he doing to the cow? Half gal $2.69.”

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Celebrity Sightings ‘Pon de Replay’ That Video. One Rihanna fan received the ultimate Christmas gift when he spotted her at a gas station in Barbados over the holiday. The pop star shot a sweet video with him, during which the fan said, “My Christmas just got made merry.” Describing the circumstances of the run-in, Rihanna said they were “at a random gas station. We’re not even buying gas.

We’re not even driving.” She ended the video with a shout-out to her home country, screaming “Barbados!” to the camera.

Fueling Style. Even celebrities pump their own gas—but not without doing it in style of course. Selma Blair was photographed striking a pose next to a fuel pump at a Los Angeles gas station. She wore an all-black outfit that included a sweater, speckled skirt, tights, ankle boots and a black face mask to match, completing the look with red sunglasses. She fueled up her white SUV before meeting her boyfriend, Ron Carlson, for coffee.

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