NACS Magazine September 2021 by NACS Magazine

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CLEARING HURDLES Utility demand fees stand in the way of c-stores profiting from EV charging.

PRE-NACS SHOW ISSUE HIRING GEN Z

Understand the new workforce

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

SEPTEMBER 2021

60 32

64 Hurdle to Overcome A Demand charges are stumbling blocks in the push for the fast chargers EV drivers want.

40 We Got This!

The NACS Show is on, and here’s why you should join us in Chicago.

he Pivot T NACS Show general session speaker Jennifer Powers shares what to do when “shift” happens. An

IDEA That’s Good for Everyone

Join us for a conversation to spark dialog that advances inclusion, diversity, equity and awareness.

68 74 78 84

STAY CONNECTED WITH NACS

 @nacsonline  facebook.com/nacsonline  instragram.com/nacs_online  linkedin.com/groups/1776505

Cover Art by Beyond Definition

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

CONVENIENCE.ORG

102 102

ig, Bold and Beautiful B The right digital messaging strategy can build brand loyalty and consumer engagement. raft Coffee Haven C Convenience retailers offer the kind of coffee drinks consumers can’t reproduce at home. elivery Dilemma D C-stores weigh the trade-offs between ownstaff versus third party in the mobile order and delivery landscape. Capturing

an Underserved Daypart

The afternoon and evening dayparts offer opportunity for retailers to grow basket size and customer base. iece of the Action P After largely losing out on increased consumer snacking during the pandemic, c-stores are positioning for recovery. Are

You Ready for a Gen Z Workforce?

Attracting the next-generation workforce means understanding what it seeks from employers. Evolving

the Fueling Experience

A Q&A with Dover Fueling Solutions. Mental

Health in the Workplace

Convenience retailers are prioritizing their employees’ emotional well-being. onoring Hometown Heroes H The third annual NACS 24/7 Day celebrated first responders and raised funds for disaster relief.

SEPTEMBER 2021 |

SEPTEMBER 2021

We see a huge opportunity to reach our audience digitally through Facebook and Instagram.

If you do it right and think of general merchandise from a strategy data sourced point of view, you can make that small amount of space work.

P.118

IDEAS 2 GO, P. 28

08 From the Editor 12 NACS News 20 Good Work 22 Inside Washington

NACS pushes for a level playing field; as EV adoption expands, global supply-chain issues relating to batteries and minerals also increase.

28 Ideas 2 Go

112 Gas Station Gourmet

Le Marché has it all—from specialty meats to hardware—in Vermilion Parish, Louisiana.

114 Global Trends

Mobility leaders see opportunities in EV charging, alongside a mix of fuels, from gasoline to hydrogen.

118 Category Close-Up

The general merchandise category is small, but it can be mighty.

124 Back Page

Roaster’s Market serves rotisserie chicken and high-quality coffee in a unique environment.

108 Cool New Products

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.

| SEPTEMBER 2021

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VOLUME 20, ISSUE 9

SEPTEMBER 2021

EDITORIAL Kim Stewart Editor-in-Chief (703) 518-4279 kstewart@convenience.org

What’s top of mind in convenience? We’ll tell you. Download our weekly podcast today and gain access to industry knowledge and trends — all in 24 minutes or less! Tune in at conveniencematters.com

Sara Counihan Managing Editor (703) 518-4278 scounihan@convenience.org Lauren Brooks Digital Content Manager (703) 518-4283 lbrooks@convenience.org CONTRIBUTING WRITERS Terri Allan, Sarah Hamaker, Al Hebert, Bruce Horovitz, Pat Pape, Renee Pas, Keith Reid, Jerry Soverinsky DESIGN Beyond Definition www.beyond-definition.com

ADVERTISING

Episode

Connections are Crucial for Successful Retailers Hear tips to attract and retain employees and beat your competition from 3-store convenience retailer, Bassem Nowyhed.

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 Leidich 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

#293

NACS BOARD OF DIRECTORS

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: Doug Kantor, NACS

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

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WHAT’S ONLINE | SEPTEMBER 2021

Duh-Na-Na-Na Cat Man!

Did you know that NACS offers online, self-paced courses on category management as part of its NACS Advanced Category Management curriculum? The curriculum includes three modules tailored to the needs of convenience retailers and supply partners. Topics include assortment analysis, space management and understanding shopper behavior. The course benefits all roles and responsibilities in the convenience channel including category managers for both retailers and suppliers, supply chain managers, merchandisers, planogram advisers and marketing executives. If you’d rather earn your certification at a rapid pace, NACS is offering an in-person advanced category management pre-conference workshop at the 2021 NACS Show. Completion of the online NACS Certified Convenience Category Manager course prior to this event is strongly encouraged since the pre-conference advanced program is designed for participants who already understand basic category management principles. Learn more about this opportunity and the online courses at www.convenience.org/topics/operations/category-management.

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

Fuels Market News, published by NACS, is the downstream petroleum industry’s trusted source for fuels-related news and information, covering the fuels of today and tomorrow. To stay up to date in this industry, FMN releases two weekly e-newsletters and a quarterly magazine (available in both print and digital pdf formats). Sign up for both today at www.fuelsmarketnews.com/subscribe-fmn.

CONVENIENCE.ORG

iStock.com/Eva-Katalin

Fuel Your Knowledge

We’ve been busy! Please take the opportunity to visit us at NACS!

Experience the many innovative 5-hour ENERGY products featured this year. ®

NACS Booth #2413

The FREE program designed for independent retailers.

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THIS STATEMENT HAS NOT BEEN EVALUATED BY THE FOOD AND DRUG ADMINISTRATION. THIS PRODUCT IS NOT INTENDED TO DIAGNOSE, TREAT, CURE OR PREVENT ANY DISEASE.

FROM THE EDITOR

Casablanca is a good p la slice—or c hicken sha ce for a warma—in Ithaca, N .Y .

ogram ership Pr d a e L e iv cu t e iconic NACS Exe t roll to th s y s e e d n e Universit at t at Cornell r e w o T M c G r aw

Kim Stewart Editor-In-Chief

I felt at home, all because two guys working on a Saturday night took the time to be authentically human. 8

| SEPTEMBER 2021

warm welcome Stop in for the ons Marke t in at Empire Comm Ithaca, N .Y.

New Connections

’m back on the road and in my happy place popping into corner stores. Most recently, I explored downtown Ithaca, New York, home of Cornell University— and host of the NACS Executive Leadership Program, endowed by Reynolds, which I had the opportunity to attend (a shoutout to my 2021 classmates). Wandering around Ithaca Commons the evening of my arrival, I stopped into Casablanca Pizzeria & Mediterranean Cuisine and got a slice of pepperoni and mushroom. The young guy working the counter tried his best to talk me into the chicken shawarma, but I explained that I prefer kabobs. He said he felt the same, but people come in all the time for the chicken. We ended up chatting about Ithaca a bit before I took my slice to eat at a table. When I stood up to leave, he called out, “Goodbye my friend! I hope you have a great week!” I left and ambled over to Empire Commons Market in search of wine in a can and a late-night snack until sadly, I realized that New York state doesn’t allow c-stores to sell wine. I ended up with an Angry Orchard hard cider. The clerk ringing me up asked, “Do you want to drink it here or to go?” Clever! “To go, please,” I said. He laughed and said, “You got that, huh?” This was my first time in Ithaca, and I felt at home, all because two guys working on a Saturday night took the time to be authentically human. Smiles and kind words can make anyone’s day—especially for a traveler looking forward to being in class with 30 leaders in the convenience retailing industry from across the Americas.

If the opportunity presents itself, I highly recommend attending the NACS executive education programs. There are five to pick from on leadership topics such as marketing, innovation and finance, including the NACS Women’s Leadership Program at Yale, endowed by Altria, October 26-28 and November 2-4. It’s a virtual program again this year (I attended the 2020 program, and many of the women shared that the virtual experience would have been the only way they could have attended given family demands). For more information on any of the executive education programs, go to www. convenience.org/leadership or contact Brandi Mauro, NACS education program manager, at bmauro@convenience.org. Speaking of traveling, NACS has been back on the road the past few months filming all-new Ideas 2 Go segments, and I tagged along for one of them. We can’t wait to introduce you to the folks—and canines—we met and the c-stores we visited along the way. The 2021 Ideas 2 Go will debut at the NACS Show next month, and you don’t want to miss any of it. By the way, I’ll be representing NACS Magazine with Al Hebert, aka, the Gas Station Gourmet, in the education session: “4 Ways to Stand Out as a Small Operator: Tips From the Gas Station Gourmet.” Stop by and say hi! See you at the NACS Show!

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NACS NEWS Response Relief

Bright Future

Future Fund Neighborhood Nourish Tomorrow Thrives

ine college students were selected as recipients of $3,000 scholarships through the Future Fund Scholarship Program—one of the signature programs supported by the NACS Foundation, a 501(c) (3) charitable organization. Each year, the NACS Foundation distributes up to 11 scholarships in the amount of $3,000 each for costs toward undergraduate career education at a community college or university. Since its inception, the program has awarded more than $500,000 in scholarships to NACS retail member company employees. The 2021–22 NACS Foundation Future Fund Scholarship recipients, each of whom is currently employed with a NACS retail member company, are: • Alexis Bonine, store lead, Bobby and Steve’s Auto World; University of Minnesota Twin Cities • Makayla Bowling, accounting clerk, Sutey Oil Company Inc.; Montana State University Billings • Jayden Dolechek, cashier, The Hub Convenience Stores Inc.; Dickinson State University

| SEPTEMBER 2021

• Rachel Faison, human resources generalist, Lone Star Food Stores/Douglass Distributing; University of Texas at Tyler • Katherine Kimmel, team member, Rutter’s; Wilson College • Matthew McDonnell, detail customer advisor/ level 3 detail technician, Delta Sonic Car Wash; The University of Iowa • Danielle Mosley, president/controller, Supermesa Fuel & Mer LLC dba Superpumper; Arizona State University • Erika Sanchez, regional trainer, EG America; University of Wyoming • Alexis Wood, foodservice area manager, Walters-Dimmick Petroleum; Grand Rapids Community College To be notified when the 2022–23 NACS Scholarship submission period opens or to learn more about how you can help develop the next generation of leaders in the convenience and fuel retailing industry, visit www.conveniencecares.org/future-fund. CONVENIENCE.ORG

iStock.com/zimmytws

Community Cleanup

Game On!

Join us for an evening of fun and games at the NACSPAC party in Chicago. You won’t want to miss out on an opportunity to show off all your gaming skills to industry friends while supporting NACSPAC at the same time.

WHERE

Emporium Arcade Bar Chicago 839 W Fulton Market Chicago, IL 60607

DATE

Wednesday, October 6th

TIME

This event is for current NACSPAC contributors only. Please wear your NACS Show badge with your NACSPAC ribbon for quick access. Need to contribute this year? Visit convenience.org/contribute to gain access to this year’s party. Questions? Contact: Katie Bohny | NACSPAC Manager kbohny@convenience.org | 703-518-4260

9:00 pm – Midnight

Contributions to NACSPAC are no deductible for federal income tax purposes. You must be a U.S. Citizen or a Permanent Resident Alien (i.e., a Green Card holder residing in the U.S.) to make a contribution. This maximum annual contribution is $5,000 per individual. Contributions using corporate funds are prohibited by law and cannot be accepted.

Federal law requires NACSPAC to use its best efforts to collect and report the name, mailing address, occupation and employer of individuals whose contributions exceed $200 in a calendar year.

All contributions to NACSPAC are voluntary. The amount given, or the refusal to give, will not benefit or disadvantage the person being solicited.

This solicitation is intended for members of NACS. If you do not believe you were an intended recipient, please disregard this solicitation.

We Missed You…

TEAR OUT + take this with you to the NACS Show!

Let us thank you for your unwavering support. Join us in the NACSPAC Lounge at the 2021 NACS Show, where you can put your feet up, catch up with your industry friends, grab a snack and recharge your battery...literally!

Hours & Location:

Schedule:

Tuesday, Oct. 5 Wednesday, Oct. 6 Thursday, Oct. 7 Friday, Oct. 8

Open Bar

10:00 am - 5:30 pm 8:00 am - 5:30 pm 8:00 am - 5:30 pm 8:00 am - 1:30 pm

Located in McCormick Place Hall B, North Building

Amenities: + + + + + + + + + + + +

Shoe Shine* Mobile Spa* Coffee/tea Open bar* Healthy snacks Desserts Charging stations Private meeting space** TV area ATM machine Computer & Printer Foot massagers

* Available only during certain times ** Appointment required

Wednesday, Oct. 6th Thursday, Oct. 7th Friday, Oct. 8th

12:00 pm - 5:30 pm 12:00 pm - 5:30 pm 9:00 am - 1:30 pm

Mobile Spa (Massage therapist & nail technician) Wednesday, Oct. 6th 1:00 pm - 5:30pm Thursday, Oct. 7th 1:00 pm - 5:30pm Friday, Oct. 8th 9:00 am - 1:00 pm Shoe Shine Wednesday, Oct. 6th Thursday, Oct. 7th Friday, Oct. 8th

8:00 am - 5:30 pm 8:00 am - 5:30 pm 8:00 am - 1:00 pm

Access to the NACSPAC Lounge is for current NACSPAC contributors only. Please wear your NACS Show badge with your NACSPAC ribbon for quick access

Not yet a NACSPAC member? Visit convenience.org/contribute to gain access to this year’s lounge

Questions? Contact: Katie Bohny | NACSPAC Manager kbohny@convenience.org | 703-518-4260

Federal law requires NACSPAC to use its best efforts to collect and report the name, mailing address, occupation and employer of individuals whose contributions exceed $200 in a calendar year.

All contributions to NACSPAC are voluntary. The amount given, or the refusal to give, will not benefit or disadvantage the person being solicited.

This solicitation is intended for members of NACS. If you do not believe you were an intended recipient, please disregard this solicitation.

NACS Hires Marketing Director Nancy Pappas has joined NACS as marketing director. In this role, Pappas will develop integrated campaigns for the association’s membership, global events and research, including the NACS State of the Industry enterprise. Prior to joining NACS, Pappas served as senior marketing manager for MyEyeDr., a network of optometry offices and eye care centers. She also served in leadership roles at Best Buy, where she developed and led the first company-wide integrated promotional planning process, Momentum Worldwide and Tommy Hilfiger. Pappas earned a B.A. in general studies from the University of Iowa.

Nancy Pappas

Continuing Education There’s still time left in the year to develop the leaders in your organization—or yourself—through NACS executive education programs. Here’s what NACS offers through 2021.

Women’s Leadership Program

October 26-28, 2021 and November 2-4, 2021 Yale School of Management (Live Virtual) While women have made substantial gains in the business world, today’s workplace can still benefit from leveraging the unique perspective and strengths that women can bring to the organizational table. The NACS Women’s Leadership Program at Yale University—held digitally this fall—examines the issues facing women in leadership positions and offers strategies for navigating them. The NACS Women’s Leadership Program offers convenience leaders the opportunity to: • Develop critical top team leadership skills • Refine strategic perspective and decision making • Understand and hone leadership style through feedback assessments • Improve executive presence and leverage diversity to accelerate innovation • Practice emotionally intelligent leadership

CONVENIENCE.ORG

To le arn m ore ab ou t th es e prog ra m s an d to re gi ster, vi si t www.convenien ce.org/ leadership.

Marketing Leadership Program

Innovation Leadership Program

October 31 to November 5, 2021 MIT Sloan School of Management, Massachusetts Institute of Technology, Cambridge, Massachusetts

November 14–19, 2021 Kellogg School of Management, Northwestern University, Evanston, Illinois

Embracing the motto of MIT—mans et manus (mind and hand)—the NACS Innovation Leadership Program combines research-based management frameworks with practical hands-on experience. Small group collaborative work, lightning talks with start-ups from the MIT ecosystem, whiteboarding breakouts and engaging professors cover topics found in the curriculum.

Marketing is much more than product promotion. Marketing is a way of looking at the world that is customer-focused, insight-driven—and ever-evolving. As you struggle in these challenging times to create new markets and deliver superior customer experiences, consider the NACS Marketing Leadership Program to fast-track your skills.

The NACS Innovation Leadership Program offers convenience leaders the opportunity to: • Learn how to build an innovation culture—focused on skills, desire, freedom of action, high commitment and high integrity • Recognize and overcome mental models that inhibit innovation • Leverage the principles and processes of design thinking • Identify choices for responding to disruptive competition • Apply innovative methods for designing work and operating models that engage employees/create competitive advantage • Experience first-hand MIT’s entrepreneurial innovation ecosystem

The NACS Marketing Leadership Program will give attendees the ability to: • Identify the most attractive targets for your company’s offerings • Make strategic decisions based on customer lifetime value • Understand how customers experience products and services, and how that affects retention, brand perception and competitive advantage • Use deep customer insights to build a strong brand positioning • Understand the critical importance of internal branding and identify best practices • Set price to capture value created

SEPTEMBER 2021 |

NACS NEWS

Help Stop Human Trafficking NACS and more than 100 contributing groups are participating in the 2021 National Outreach Survey for Transportation (NOST) led by United Against Slavery—including 59 oversight agencies from Canada, Brazil, the Netherlands and the United States. The project will analyze frontline data from experts in all modes of transportation to craft policies and solutions to disrupt human trafficking and ultimately make it difficult, unattractive and unprofitable. “Convenience stores have taken an exceptional leadership role in helping to address human trafficking in their neighborhoods. This survey will add valuable data from all areas of transportation to build programs that support the work already being

done,” said NACS Vice President of Strategic Industry Initiatives Jeff Lenard. A custom survey link has been developed for convenience retailers. Responses are needed from frontline staff, store managers and supervisors, to corporate human resources, training staff and leadership. All survey submissions are confidential, and the data will be anonymized prior to being exported for analysis. The survey should take about 15 minutes to complete at www.unitedagainstslavery.org/2021nost/nacs.

MEMBER NEWS RETAILER Casey’s General Stores Inc. announced the appointment of Gregory A. Trojan to its board of directors. Trojan has over 25 years of experience leading national restaurant, retail and consumer products companies. SUPPLIER Hathway has brought on Sam Herro as director of business development, a new role for the company. In his role, Herro is tasked with growing Hathway’s presence in the convenience store industry, working across Hathway’s current convenience store clients. Sound Payments welcomed Mike White as vice president of sales for the petroleum channel. White will lead and grow a team of professionals that will support solutions for the petroleum industry, including Sound Easy Pump.

Advanced Digital Data announced that Gregg Lounsbury, software application specialist, has retired after 20 years with ADD Systems. Lounsbury joined ADD Systems in 2000 as a former client. Gregory A. Trojan

Gregg Lounsbury Anchor Packaging has hired Subbu Subramanian as chief information officer. As CIO, Subramanian will play a key role in advancing Anchor’s strategic plan and supporting its continued growth. Subbu Subramanian

Sam Herro

Mike White

KUDOS The New York Association of Convenience Stores announced that Dennis Kemmeter and Marcia Russo have been elected to the New York Convenience Store Hall of Fame. The Hall of Fame honors individual retailers and suppliers for exceptional achievement in and distinguished service to New York’s convenience store industry.

Dennis Kemmeter

Marcia Russo

| SEPTEMBER 2021

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NACS NEWS

NEW NACS MEMBERS NACS welcomes the following companies that joined the association between June 16 and July 15, 2021. 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

Lambert Enterprises Joliet, IL

AB Marathon Chicago, IL

Mangat Inc. Racine, WI

Alpine Ladera Fuel Inc. Portola Valley, CA

Njisa LLC dba Route 10 Exxon East Hanover, NJ

AMG Petroleum Inc. San Jose, CA

Prairie State Energy LLC Hoffman Estates, IL www.psfuels.com

Bedrock Management Inc. Fox Lake, IL BWB Inc. dba Blue Water Buffalo Euless, TX www.bwbfoods.com Compass Fuel McCook, IL Curby’s Express Market LP Lubbock, TX www.curbys.com Cuyahoga Vending Maple Heights, OH www.cuyahogagroup.com Dottie’s Convenience Stores Oconomowoc, WI Five Star Rockford, IL Glencoe Shell Gadsden, AL Goodway Management Inc. Lawrenceville, GA High Hacks Holdings Inc. dba LuvMart Oakland, CA www.luvmart.co

| SEPTEMBER 2021

Ecoclear Products Inc. Lakewood Ranch, FL www.ecoclearproducts.com

Noka Pacific Palisades, CA www.nokaorganics.com

EverWash Philadelphia, PA www.morewashprofits.com

Plaque Buster LLC Indian Rocks Beach, FL www.theplaquebuster.com

Footprint Solutions Lisle, IL www.fprs.com

RedFin Holdings dba RedFin POS Pompano Beach, FL www.redfinpos.com

Ricky Rockets Fuel Ctr. Inc. Hoffman Estates, IL

Fresca Mexican Foods LLC Caldwell, ID www.frescamex.com

Riptidewaters LLC dba Rambler Sparkling Water & Energy Austin, TX www.ramblersparklingwater.com

Rose Market Lafayette, IN www.816rosemarket.com

HIVERY Surry Hills, Australia www.hivery.com

Woods Supermarkets Bolivar, MO www.weekenders.com

iVertical Payment Network LLC Boca Raton, FL www.iverticalpayment.com

NEW SUPPLIER MEMBERS

London Storm LLC Manassas, VA

Advancement Branding Graton, CA www.advancementbranding.com

Margherita Deutschland Gmbh dba Broker Spreitenbach, Switzerland

Al’s Beverage Company East Windsor, CT www.alsbeverage.com

Market Square Food Company - Happy Snacks Park City, IL www.marketsquarefood.com

ASP Holdings Inc. dba aspectLED St. Paul, MN www.aspectled.com

Michelle’s Bakery Connelly Springs, NC

CPG Milk LLC dba Milk Bar New York, NY www.milkbarstore.com

NAPJITSU Huntington Beach, CA www.napjitsu.com Next Level Health Sciences The Colony, TX www.nextlevelhealthsciences.com

Robovisor LLC Apopka, FL ww.robovisorusa.com Squadle Inc. Boston, MA www.squadle.com Tadim USA Corp. Fort Lee, NJ www.tadim.com Tessemae’s Essex, MD www.tessemaes.com Tossits LLC Clarkston, MI www.tossits.com Vandemoortele Bakeries USA Pawtucket, RI www.vandemoortele.com Vieler International LP Lithia Springs, GA www.vieler.net

CONVENIENCE.ORG

MODERNIZE YOUR MERCHANDISING

SELL MORE IN THE SAME SPACE

Gain Facings and Cut Labor with WONDERBAR®Tray Merchandising

BEFORE WONDERBAR

99 FACINGS

AFTER WONDERBAR

121 FACINGS

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.

WonderBar® Tray Merchandising

n Dramatically increases sales in the same space. n Adjusts to accommodate various package widths.

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

NACS NEWS BY THE NUMBERS

Still Virtual With nearly 25% of the U.S. workforce telecommuting during the height of the pandemic lockdown in April 2020, shoppers limited personal travel, stayed close to home and made the most out of every outing. By September of the same year, NACS Convenience Voices recorded a shift in the majority of shopping trips to short, local occasions. Fast forward to the third quarter of 2021 and preliminary results from the 2021 NACS Convenience Voices program reflect a healthy percentage (38%) of convenience shoppers still working or attending school at home. The convenience shoppers that are still virtual include the most valuable, high-frequency core customer—outpacing the average convenience shopper in both daily and multiple trips throughout the week. According to a September 2018 NACS Consumer Survey, 93% of the U.S. population is reported to live within 10 minutes of a convenience store, and great corners plus proximity to the community are paying huge dividends. Although 15% of shoppers who work/school from home report that they intend to remain 100% virtual and don’t plan to return to the commute, 61% of the same group anticipate physically returning to work/school by year’s end. The increase in commuting and overall mobility should bolster morning traffic and add much needed sales momentum during the fourth quarter of 2021. THE NOT-SO-DAILY COMMUTE

Work/School at Home Shoppers 2021

Visit Frequency

When Do You Plan to Start/Resume Commuting From Home to Work or School?

19.0% 13.6% 17.6% 22.6%

Weekly (1-2 times per week)

26.4% 26.3%

Monthly (1-2 times per month)

7.2% 8.9%

Every 2-3 months

1.0% 1.2%

Less than every 3 months

.3% 1.0%

By the end of December 2021 (within 6 months)

12.9%

By the end of July 2022 (within 12 months)

4.0%

After July 2022 (within more than 12 months)

20%

30%

Do you currently work or attend school at home?

No 62.1%

15.1%

16.9%

I don’t know

10%

Yes 37.9%

3.5%

I plan to be 100% virtual, I do not plan to commute from home to work/school

.3% 1.0% 0%

47.6%

10%

20%

30%

40%

50%

Source: NACS Convenience Voices 2021; Preliminary Results, July 16 to August 1 (n= 1,506)

| SEPTEMBER 2021

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iStock.com/SDI Productions

5-6 times per week

First time/ never been here

By the end of September 2021 (within 3 months)

28.2% 25.5%

Daily

3-4 times per week

All Shoppers 2020

GOOD WORK

BY THE NUMBERS

$180,000+

Amount raised by Maverik customers for local food banks in a round-up campaign

Number of food banks benefiting from Maverik's $150,000 direct donation to Feeding America in January

| SEPTEMBER 2021

alt Lake City, Utah-based Maverik supports communities impacted by the COVID-19 pandemic through an initiative with Feeding America. The retailer’s “Round Up Your Change for Feeding America” program, which ran July 20 through September 6 across all Maverik stores in 11 Western states, invited customers to round up their transactions to the nearest dollar to help fight hunger and benefit the Feeding America network of food banks. The donations raised will stay local, benefiting food banks in nearby communities. “Our communities have supported us for more than 90 years, and it’s important to Maverik to give back,” said Chuck Maggelet, president and chief adventure guide of Maverik. “Because of the pandemic, the demand for food remains at an all-time high. We’re proud to team up with Feeding America to help our neighbors with food resources that will fuel their favorite adventures.” Earlier this year, all Maverik stores participated in the first “Round Up Your Change for Feeding America” initiative. Donations generated more than $180,000 for local food banks in those

communities. That campaign followed Maverik’s direct $150,000 donation to Feeding America in January to benefit six local food banks, including: • Roadrunner Food Bank (Albuquerque) • Idaho Food Bank (Boise) • Three Square Food Bank (Las Vegas) • Food Bank of Northern Nevada (Reno) • Second Harvest Inland Northwest (Spokane) • Food Bank of the Rockies (Wyoming) This “Round Up Your Change for Feeding America” campaign raised funds to align with Feeding America’s Hunger Action Month in September, an annual campaign dedicated to driving awareness and inspiring action to help end hunger in America. “The last year has brought numerous challenges for the communities we help serve.” said Lauren Biedron, vice president of corporate partnerships at Feeding America. “We are grateful to Maverik for its commitment to help end hunger and provide nourishing food to communities across the country.” NACS has developed resources to help convenience retailers manage food waste and embark on their own food donation program. Learn more at www.convenience.org/foodwaste. CONVENIENCE.ORG

iStock.com/ImagePixel

Maverik Campaign Rounds Up

Love’s Travel Stops Donates $100,000 to Truckers Fund L to R: Stewart Spinks (Spinx), Brandi Majewski (American Red Cross), Suzie Foley (Greenville Free Medical Clinic), Becky Callaham (Safe Harbor) and Tessa May (Loaves & Fishes).

Spinx Supports Local Businesses The Spinx Company, based in Greenville, South Carolina, donated $78,000 across four local charities: the American Red Cross, Safe Harbor, Loaves and Fishes and the Greenville Free Medical Clinic. Representatives from each organization were invited to enjoy “Spinx Day” on July 8 at the Greenville Drive game, where the ceremonial check was presented. “It was an honor to provide this money to our beneficiaries this year, especially after such a difficult 2020,” said Stewart Spinks, chairman and founder of Spinx. “I am so proud of our team, vendors and partners for their charitable contributions, and I look forward to an exciting tournament again next year to continue to provide for those in need within our community.”

Love’s Travel Stops, based in Oklahoma City, has donated another $100,000 to the St. Christopher Truckers Development and Relief Fund. The nonprofit helps professional truck drivers and their families during difficult times. “Professional truck drivers keep America moving, and this is one way we’re thanking them for all they do for the country,’’ said Jenny Love Meyer, executive vice president and chief culture officer of Love’s. “St. Christopher is a great organization that helps drivers every day, and we’re glad to continue to support the organization.” Love’s first donated to St. Christopher in April 2020 when the company gave $100,000 to help drivers during the coronavirus pandemic. The relief fund helps with expenses like rent, mortgage, utilities, insurance and vehicle payments, as well as provides health and wellness programs for drivers. “The trucking industry is the backbone of our economy, and professional drivers are the heart of the industry. We depend on those drivers every single day, and they can depend on St. Christopher Truckers Fund every single day,” said Shannon Currier, director of philanthropy and development for SCF. “We are humbled by the continued generosity of Love’s Travel Stops and their commitment to ensure the men and women of this industry have support when they need it most. Thank you for being a hero to our highway heroes.”

IN THE COMMUNITY GATE Raises $40,000 for ALS The GATE Foundation, the philanthropic arm of Jacksonville-based GATE Petroleum Company, raised $40,000 for the ALS Association at GATE’s convenience stores in Florida, Georgia, North Carolina and South Carolina. Between May 1 and May 21, customers could donate $1 and sign their name on an ALS paper icon displayed in a GATE store. Customers could also donate by rounding up their

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purchase to the nearest dollar. Funds were allocated to local ALS chapters throughout the regions where the funds were raised. “We continue to be overwhelmed at the generosity of our customers,” said Kathy Brady, executive director of the GATE Foundation. “In just three short weeks, customers helped us raise $40,000 to fund support programs for those impacted by ALS and research to help find a cure.”

In addition to corporate giving, the GATE Foundation conducts two paper icon and two coin box collection campaigns each year to benefit organizations that align with its mission to support efforts and services that nurture and protect the well-being of families and the community.

SEPTEMBER 2021 |

INSIDE WASHINGTON

Antitrust in Us

NACS pushes for a level playing field in the issues that matter most to convenience retailers. BY JON TAETS

The amount of major antitrust laws in the U.S.

1890

The year the first antitrust law, the Sherman Act, was passed

2,273

The current number of antitrust case filings with the Department of Justice

| SEPTEMBER 2021

here is a renewed interest in federal antitrust activity in Washington these days, and it’s bipartisan in nature. The initial focus of Congress has been in the big tech space. Congressional Democrats accuse companies, such as Google and Facebook, of gobbling up competitors and exercising market power in ways that make it very difficult for others to launch a competing product. On the other side of the ideological spectrum, many Republicans believe these types of companies have too much of a hold on information and

use that power to censor conservative viewpoints. The result has been a somewhat odd set of allies at congressional hearings, with senior tech company executives taking flak from both sides of the aisle. LEGAL MOVEMENT On the House side, legislation has begun to move in this arena. Not long ago, the House Judiciary Committee passed bills aimed at different ways to curb the power of big tech companies or attempt to force their breakup. At the time of this writing, these bills CONVENIENCE.ORG

iStock.com/Douglas Rissing

FACTS & FIGURES

have not seen action in the full House, but work continues to bring antitrust legislation to the f loor. In early July, President Joe Biden issued an executive order to promote competition in the American economy. The order directs various federal agencies to step up their enforcement activity and is focused primarily on agriculture, technology, telecommunications and pharmaceuticals but may have a much broader impact, depending on what action agencies like the Federal Trade Commission (FTC) or the Department of Justice (DOJ) take. A BROKEN SYSTEM Amid renewed interest in antitrust activity from Congress and the White House, NACS is working with policymakers to highlight market failures that put the convenience industry at a disadvantage. Payments is one of the top areas where our industry experiences a market failure due to the lack of competition. Having a duopoly on the market, Visa and Mastercard use their dominance to set the prices that the banks charge retailers each time a card is swiped in their stores. Furthermore, they have used exclusivity agreements to block smaller competitor networks. An egregious example is that banks are required to enable two networks on a debit card transaction, yet on transactions where a customer chooses to not enter a PIN, the bank has only enabled one network, either Visa or Mastercard. NACS has advocated for the FTC and DOJ to investigate the major card brands. The DOJ has started down this road by blocking Visa’s attempt to acquire payments company Plaid. And, the DOJ is investigating whether Visa’s work to block competition among networks that handle debit transactions violated CONVENIENCE.ORG

antitrust laws. Of course, given the broken credit card market, more is needed from Congress, DOJ and the FTC to try to bring real competition to credit cards.

NACS has advocated for the FTC and DOJ to investigate the major card brands.

UNFAIR PRICING NACS is also engaging with relevant federal authorities in channel price discrimination against the convenience industry. For decades, certain suppliers and manufacturers have charged higher prices to our industry than they do to other retail channels, such as big box stores or grocery stores, for the same products. This often occurs regardless of the sales volume or the delivery method. NACS has found many instances where convenience retailers are charged significantly higher prices for nonalcoholic packaged beverage products compared to competitors’ retail prices. Often, the only reason for these higher prices is that the manufacturers and distributors are selling to our channel. The problems don’t stop with being charged higher prices. Often, convenience retailers are not allowed to purchase certain popular package types or sizes simply because they aren’t designed for our channel. This treatment of our industry must come to an end. When retailers are purchasing the same amount of product, delivered in much the same way as our competitors, they should pay the same price as other retailers. Congress remains active on antitrust cases, including examining current issues through a series of hearings. And federal agencies, spurred by the president’s executive order, are reevaluating what they can do on these fronts. NACS will continue to work with federal authorities on these antitrust issues and others that may arise in the coming months.

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

SEPTEMBER 2021 |

INSIDE WASHINGTON

Climate Corner BATTERIES, MINERALS AND SUPPLY-CHAIN CHALLENGES

BY PAIGE ANDERSON Like other sectors of the economy, supply-chain issues on products and resources are a major issue for consumers, manufacturers, retailers and other businesses. And the same is true for the electric vehicle (EV) industry. Global supply-chain issues relating to the batteries and the minerals needed to produce them will only increase as countries, including the United States, move toward electrification of our transportation system. What does it mean for the future of EVs, and what are policymakers doing about these challenges? According to the International Energy Agency, the number of EVs on the road around the world could jump to an estimated 250 million vehicles by 2030. From 2010 to 2019, the number of EVs on the road rose from 17,000 to 7.2 million. With countries, including the United States, establishing zeroemissions goals, large incentives for EVs, ICE bans and other regulations to transition to an electric transportation system, the demand for lithium-ion batteries used in EVs is only going to increase, along with the key components and minerals in these batteries, such as lithium, cobalt, manganese and nickel. These minerals also are needed in other technologies, such as computers and cellphones. Why is this important? Affordability and manufacturing are two of the key factors that will determine how quickly people will adopt EV

technology, along with charging infrastructure and battery range. Though EV batteries can last 10 years, or about 150,000 miles, until they need to be replaced, battery manufacturers are struggling to secure supplies of key ingredients to these large power packs, especially cobalt and lithium. Several studies have shown that the demand for lithium could exceed supply by 2022, which will drive up prices and interest in lithium mining. Demand for cobalt and nickel could exceed production in less than a decade, according to the same studies. Cobalt has the most supply risks, as it has a highly concentrated production and limited reserves. There are not many producers of cobalt, with a single company producing onethird of the world’s annual supply, and 65% of cobalt coming from a single country. There also are geopolitical concerns. Most of the cobalt used in batteries today is claimed by China from mines in the Democratic Republic of Congo, which is known for human rights abuses and environmental degradation. The global lithium supply is also found in Australia, Chile, Bolivia and Argentina. With limited reserves and suppliers, battery manufacturers have been researching ways to reduce the amount of minerals used to manufacture the batteries, but each alternative comes with a technical downside or creates new supply challenges with new resources. Each mineral plays an important role regarding the performance of the battery. Nickel boosts a battery’s

NACSPAC DONORS

Thomas Brennan Casey’s General Stores Inc.

Jim Garrett Volta Oil Company Inc.

Bob Honkala Bud's Citgo

Dave Caruso Stewart's Shops

Jane Hartgrove Tres Picosos LLC

Paul Kern NCR Corporation

Terry Gallagher Gasamat Oil Corp./ Smoker Friendly

Edward S. Holmes, Jr. Holmes Oil Company Inc.

| SEPTEMBER 2021

Luther W. Lott, Jr. Lott Oil Inc. dba Shop-A-Lott James P. Morgan J.R. Morgan Oil Company Inc.

Darren M. Rebelez Casey’s General Stores Inc.

Keith Solsvig Buddy’s Kitchen Inc.

Jonathan Shaer New England Convenience Store & Energy Marketers Association

Ena Williams Casey's General Stores Inc.

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istock.com/Sven Loeffler

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 July 1-31, 2021, are:

Visit us at the 2021 NACS Show, booth #4602

INSIDE WASHINGTON

Paige Anderson is the NACS director of government relations. She can be reached at panderson@convenience.org.

energy density and range. Cobalt extends a battery’s lifespan and manganese helps a battery operate safer at higher temperatures. All work together to help deliver a long lifespan and range and high performance. In the U.S. alone, the amount of lithium, cobalt and battery-grade nickel needed to electrify every lightduty vehicle on the road surpasses the total amount of these resources mined globally in 2019, according to a report on supply-chain vulnerabilities. In addition, the U.S. does not have the geologic reserves needed to meet its future demand for these minerals and metals. As a result of both the domestic challenges and international challenges in the supply chain, President Joe Biden has created the Federal Consortium for Advanced Batteries, a cross-agency group headed by the U.S. Department of Energy. The consortium is identifying the supply and technical challenges in

batteries used for EVs and is developing potential solutions to overcome those challenges. In addition, it has created a National Blueprint for Lithium Batteries to help guide the development of a domestic battery industry. Some issues being looked at include reducing the use of nickel and cobalt from lithium batteries, looking at responsible sourcing for those minerals and if they can be safely and securely mined and developed, research for recycling batteries and a wide range of other issues. The issues surrounding the supply chain of EVs and EV batteries is just another example of the complexity in bringing alternative transportation technology to the marketplace. How these issues are addressed and how quickly solutions can be implemented is an open question, but it will certainly have an impact on how quickly the transportation sector will transition to electricity.

ONE VOICE This month, NACS talks to Lisa Biggs, president at Impact 21. What does NACS political engagement mean to you, and what benefits have you experienced from being politically engaged? All of us have a Lisa Biggs hometown, and many of us come from a small hometown. When I engage with NACS’ advocacy efforts, I know I’m carrying the voice for all of our constituents, large and small, across the country. And I know their voices are heard. The NACS Government Relations team does an incredible job keeping pulse on key industry issues and determining which to escalate during our industry’s fly-in, NACS Day on the Hill.

| SEPTEMBER 2021

What federal legislative or regulatory issues keep you up at night? The topic I have followed for 30 years is regulated products. We have incredible accountability to manage regulated products from a few perspectives: 1. Maintaining systems to execute fuel, merchandise, food and labor regulations. This includes purchase or sales tax, age or other purchase restrictions, and/or tracking for those scenarios as we are seeing today, such as cigarette sales. 2. Training and follow-up with our store associates and their ability to enforce regulations. 3. Managing the unwarranted negative press associated with the industry sales of certain regulated products, such as alcohol, cigarettes, e-cigs and CBD-infused products getting into the hands of minors. What c-store product could you not live without? Phone power cords. When you live on the road, invariably, you find a need for an extra power cord. So, I whip into a c-store and grab one. I also grab an Arizona tea!

CONVENIENCE.ORG

BOOTH #2134

IDEAS 2 GO

Living Up to Its Name

Roaster’s Market serves rotisserie chicken and high-quality coffee in a unique environment. BY SARAH HAMAKER

We wanted our first emphasis to be on our food and coffee service—this is what really sets us apart.

Roaster’s Market owner and founder Mike Lawson wanted to build something beyond the typical Oklahoma convenience store, so he visited many stores to garner ideas on what to offer his customers.

he most frequent comment from customers entering Roaster’s Market in Ada, Oklahoma, is “‘This isn’t what we expected from a convenience store,’” said Mike Lawson, owner and founder. “It’s a different experience that we created to wow our customers.”

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 2020 and earlier, go to www.convenience.org/Ideas2Go.

| SEPTEMBER 2021

Lawson put his 20 years of convenience and fuel retail experience to work when he crafted his vision for Roaster’s Market. “I like to try new things and jumped at the opportunity to build something beyond the typical Oklahoma convenience store,” he said. THE VISION Before embarking on his own branded store, Lawson explored what the “leaders in our industry were doing. I visited several convenience store chains to gather ideas of how to offer something unique of our own.” Those fact-finding trips helped him craft the three cornerstones of what became Roaster’s Market: food and coffee, convenience, and fuel. “We wanted CONVENIENCE.ORG

ABOUT

L to R: Foodservice at Roaster’s Market is made to order, with products chosen based on quality first. The market’s name comes from its high-quality coffee, as the store’s coffee offer strives to compete with Starbucks and other coffee shops. Name of company Roaster’s Market

our first emphasis to be on our food and coffee service—this is what really sets us apart,” he said. The very name Roaster’s came from the store’s high-quality coffee and rotisserie chicken. On the coffee front, Lawson “wanted to compete not with convenience stores but with Starbucks and other independent coffee shops.” Roaster’s sources beans from an Austin, Texas, roastery and sells the coffee under the Roaster’s brand. Eventually, he envisions offering whole beans and ground coffee packaged for take-home sale using the same beans in its coffee drinks. The full-fledged barista service provides everything from drip coffee to craft coffee via a high-end espresso machine, which he dubbed “the workhorse of our coffee program.” The fresh foodservice is centered on rotisserie chicken, which is sold as roasted quarters of white and dark meat. Roaster’s Market created its own rub for its rotisserie products, fresh carved-toorder turkey and even fresh roasted corn on the cob. Other menu items made to order in the kitchen include salads, sandwiches, breakfast items and quesadillas. Leftover rotisserie chicken is repurposed into chicken noodle soup and chicken salad. “For our fresh foodservice, we choose products not based on cost first but on quality first,” he said. “We’ve seen our customers respond CONVENIENCE.ORG

well to the higher quality of food we’re serving.” Customers can enjoy their food at one of the 24 interior dining seats or 32 outdoor patio seats. “Once COVID hit, we modified our building to add an outdoor canopy to cover much of our patio area, plus added misting fans and umbrellas to keep everyone cool and comfortable in the Oklahoma heat,” Lawson said. In addition to made-to-order food, the store has a grab-and-go section

Date founded June 2020 # of stores 1 Website www.roastersmarkets.com

BRIGHT IDEAS Roaster’s Market has embraced technology with self-checkout, online ordering and self-ordering. In November 2020, the store launched online ordering, which has brought in more than 100 new customers a month. On site, the store has four island ordering kiosks and a fifth one by the coffee bar. Each kiosk starts by offering the customer a choice between food and crafted beverages. “Rather than list a menu, we start with the customer picking which path he wants,” said Mike Lawson, owner and founder. “The customer determines the final outcome of every menu item.” In addition, the store has two self-checkout stations, as well as two manned cashier stations. “We were the first convenience store in Oklahoma to have self-checkout. We wanted to expedite customer time in the store, and this was one way we could do that,” he said.

SEPTEMBER 2021 |

IDEAS 2 GO

featuring many of the same menu items. “It’s a large, kidney-shaped cooler with cold grab-and-go prepackaged products that includes healthy snack items, juices, fruits and veggies,” he said.

Sarah Hamaker is a freelance writer and NACS Daily and NACS Magazine contributor based in Fairfax, Virginia. Visit her online at www. sarahhamakerfiction.com.

| SEPTEMBER 2021

INTERIOR VIBE Roaster’s Market also ditched traditional rows of shelves, opting instead to incorporate more wide open space to accommodate larger crowds of people waiting for their food or beverage order. “My goal was to combine the look of a Corner Market, Panera Bread or Zoës Kitchen—a warm, comfortable feeling,” he said. “That’s why we have a lot of unused space to allow people to walk around and wait.” For music, he designed a store playlist for all ages, mixing in ’70s, ’80s and on

up to current artists. “We have very fun, very contemporary music to make being in Roaster’s an enjoyable time for everyone,” he said. The store carries that vibe into its social media, which is managed by Lawson’s daughter, Caroline Lawson, who also handles marketing. “We see a huge opportunity to reach our audience digitally through Facebook and Instagram,” she said. “We’re continuing to broaden our reach online every day.” While Lawson continues to tweak the year-old Roaster’s Market, he’s also eyeing the future. “We’re convinced this is a very successful concept that hasn’t even reached its full potential because of COVID,” he said. “So we’ll definitely be looking to bring Roaster’s to new markets in the future.”

CONVENIENCE.ORG

A HURDLE TO

OVE

| SEPTEMBER 2021

CONVENIENCE.ORG

Demand charges are stumbling blocks in the push for the fast chargers EV drivers want.

RCOME By Keith Reid

onvenience retailers are anxious to offer electric vehicle charging services that are both affordable for drivers and profitable for c-stores. Widespread adoption of EVs, where practical, hinges on the infrastructure buildout needed to solve the “range anxiety” problem, plus a competitive marketplace that doesn’t favor one sector over another, all combined with the Biden Administration’s ambitious goals to electrify the U.S. vehicle fleet. It is a tall order to be sure. “Any changes to the transportation energy mix must make it work for American consumers—which means those changes must work for our industry,” said AJ Siccardi, president, Metroplex Energy Inc., a RaceTrac subsidiary which purchases bulk and rack fuel to supply the Atlanta, Georgia-based retailer’s two operating divisions. “Fuel retailers already

CONVENIENCE.ORG

SEPTEMBER 2021 |

In 15 minutes, a fast charger adds the same power as the entire store operation running all the fuel pumps, all the refrigeration and freezer units. have the real estate. We offer the services and amenities that consumers have come to expect, alongside the refueling network such as foodservice facilities, restrooms, security and the like. Until consumers see alternatives like electricity at the outlets where they currently refuel, they will not adopt those alternatives in large numbers.” About 80% of U.S. convenience stores (121,538 out of 150,274) sell motor fuels. Traditional motor fuels retailers looking to make the move to EV charging currently face a significant hurdle— electric utility demand charges. Demand charges are additional fees that investor-owned utilities charge to nonresidential or commercial customers for maintaining a constant supply of electricity. Average energy usage by these businesses might not be exceptional, but on occasion their energy demand spikes well above the average, and the electricity capacity must be able to support those spikes. Utilities pass along those costs to the high peak users. Demand charges are typically based on the highest peak usage in any 15-minute period and can vary by state. So how does this come into play with EV charging at retail? Convenience stores must

| SEPTEMBER 2021

offer the fastest charging possible, with as many charging points as practical, so that the EV customer experience is comparable to the gasoline refueling experience. However, the faster the charger, the more energy that must be drawn. Level 1 and Level 2 chargers can be used in residential applications, and Level 2 also can be used in longer-term, incremental-charge retail applications such as shopping mall parking lots. The fastest Level 2 charger provides up to 30 miles of driving range per hour, with a full charge in eight hours or less (depending on the vehicle battery size). The cost to fully charge a battery can vary significantly based on variables such as the capabilities of the charger, the capabilities of the vehicle and the utility rate assessed. In general, the electricity used in Level 1 and Level 2 charging is relatively inexpensive, but charge times are slow. Typical EV drivers with conventional travel pattens use home charging about 80% of the time, according to the U.S. Department of Energy. Much broader EV penetration is expected to include drivers without access to at-home chargers, such as multiunit residents and urban dwellers, and increased needs to charge on the go. The convenience industry requires direct current fast chargers (Level 3) comparable to the quick tank fill-up experience for the customer, as well as the high-volume customer throughput business model. Fast-charger customers include: • Urban drivers who lack home-charging options • Ride-hailing and ride-sharing drivers • Interstate travelers • Drivers who mismanage their home charging CONVENIENCE.ORG

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A driver should not be penalized for needing to refuel at certain times of the day, and fuel retailers should not be penalized for providing the electricity for that refueling. Direct current fast chargers (DCFS) offer charging between 50 kW and 150 kW, with a full charge in about 30 minutes. While that is far faster than a Level 2 charger, it still takes three times as long as the typical gasoline fueling experience. For customers on the interstate looking to charge up quickly and get back on the road, chargers in the 250 kW to 350 kW range are needed, along with vehicles that can accept that charge rate (currently limited to high-end vehicles like the Porsche Taycan). In optimal conditions, Level 3 chargers can charge to a 192-mile range in 12 minutes at 350 kW. DCFCs typically charge to 80% of battery capacity since the last 20% can add significant time to the process. DCFCs, even the older generation, create issues with demand charges. In the current early adoption period, a DCFS charger might only be used occasionally. The energy consumed will be relatively light during a month, but that is calculated separately from the peak demand charges. “Just one of those fast chargers, give or take a little, adds about the power requirement during

NACS Connects C-Stores With EV Partners To promote the availability of electric vehicle chargers at convenience stores, in 2020 NACS launched the Electric Vehicle Infrastructure Program. Through this program, NACS has established relationships with organizations interested in supporting the installation of electric vehicle service equipment at convenience stores. These organizations range from those seeking to install and operate their own equipment at NACS member locations to those seeking to finance the installation or provide technical assistance to facilitate the installation of such equipment or future proofing stores. To learn more about this program, contact Fuels Institute Vice President Jeff Hove at jhove@fuelsinstitute.org or (515) 250-2966. You can also visit www.fuelsinstitute.org/councils.

| SEPTEMBER 2021

one of those 15-minute periods as the entire store operation running all the fuel pumps, all the refrigeration and freezer units—the whole thing,” said Doug Kantor, NACS general counsel. “So, it’s a big difference in terms of demand.” And what happens if on occasion multiple vehicles DCFS charge at the same time, especially when it comes to the latest DCFS? The peak demand could easily be over one megawatt. “Fuel retailers getting hit with demand charges cannot compete with a utility that has substantially lower costs for energy and power,” said Siccardi. “What’s more, demand charges are compounded, so a fuel retailer will be saddled with higher demand charges for every additional charger available to their customers.” CHALLENGES FOR CONVENIENCE RETAILERS “With the liquid motor fuels market, you have a commodity that you can go out and purchase from a wholesaler,” said Paige Anderson, NACS director, government relations. “You have lots of different suppliers and options. You have real-time competitive prices, and you have that wholesale cost and know the costs required to get the fuel in the tank. Then you’re able to sell it directly to the consumer every time they want to fill up their car. Unfortunately, the electricity market is quite different.” The major challenge with demand charges is setting a price that recoups cost, generates profit and avoids potential “price gouging” accusations if a retailer makes the wrong calculations on covering the costs. A 2019 Great Plains Institute study found that if EV penetration reaches 10 charging customers per day, 50 kW stations will break even at nearly all electric utility rates. For 150 kW (total), a DCFC station will break even for about half of the electric utility rates studied. A capacity increase beyond 150 kW (total) “makes it nearly impossible for a station operator to break even except in cases where the electric utility does NOT have a demand charge,” according to the study. CONVENIENCE.ORG

RMI, an independent, nonpartisan, nonprofit organization working to accelerate the clean energy transition, looked at the costs for EVgo, a retail charging network provider. It found that demand charges can be responsible for “over 90% of a charging station’s electricity costs” and result in customers paying a gasoline equivalent of $20 per gallon in a worst-case scenario. Retailers can reduce demand charges by adding additional battery capacity to even out peaks. But that comes with added capital costs. “There’s simply not a good justification for demand charges on the operators of electric vehicle charging stations,” said Kantor. “Anyone who actually wants this market to develop so that there can be more chargers and more electric vehicles out on the roads should agree that demand charges just should not apply to the dispensing of electricity. That would go a long way toward telling the private sector there might be a basis for real investment here.” THE UTILITY PERSPECTIVE The utility sector broadly disagrees with the sentiment that demand charges, a traditional feature of commercial rate structures, should disappear. “Demand charges serve a necessary role in ensuring cost recovery for the utility,” said Garrett Fitzgerald, principal, electrification, at Smart Electric Power Alliance, which helps electric utilities implement and deploy clean energy and distributed resources. “However, there are a number of examples where utilities and regulators have recognized the challenge they create for DCFC and have implemented temporary alternatives.” He noted that California and New York are ahead in these efforts, largely because “It’s where the EVs are,” and that the states that are behind will catch up quickly. The relief, seen as temporary during market development, can be a waiver. Or utilities might offer demand-charge credits or charge holidays where the first five years might have no demand charges. But, from year six to 10, demand charges gradually ramp back up. Demand charges should be much less of an issue as the market matures. “If your charger is used just once a month the demand charge component is going to make up a large fraction of your bill,” said Fitzgerald. “But if that charger is used a hundred times that month your demand charge didn’t actually go up. You’re CONVENIENCE.ORG

having something like the experience at a gas station where there’s folks just coming in and out.” CHARGING NETWORKS The greatest impact from demand charges would be felt by the smaller retailer looking to be an independent “electricity marketer” just as they might be an independent liquid fuel marketer today. Larger regional or national charging networks have leverage with utilities to negotiate more favorable arrangements and economies of scale relative to DCFS costs. Existing charge networks can absorb the relatively few DCFS customers across a broad network. Many of these networks will work with retailers to facilitate charging at their locations, often absorbing the capital and energy-rate risks. However, the retailer gives up control to the charging partner, and the model might or might not facilitate such things as revenue sharing or integrating charging into the retailer’s customer management and loyalty systems. Where networks are concerned, the number of offerings keeps expanding. Unconventional players are getting on board. For example, General Motors Co. and Ford Motor Co. are not only making big moves to electrify their vehicle line up but also have entered partnerships with charging providers. Tesla led the way, and a number of other automakers have followed. GM just announced a partnership with four companies that electrify parking lots and truck depots for a fleetfocused approach. EVgo is one of GM’s preferred providers for its Ultium Charge 360 fleet service. The major energy companies are looking to become electricity providers to support EVs and more, and not just at their traditional retail sites. They are making numerous acquisitions

at the NACS Show EV experts and experimenters will be at the NACS Show educating attendees in three key sessions: • EV 101: What Is EV/EV Charging and Why It’s Important • EV 201: How Do I Do EV? • EV 301: The Economics of EV Charging Register today at www.nacsshow.com.

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Fuel retailers getting hit with demand charges cannot compete with a utility that has substantially lower costs for energy and power. and investments to serve customers in any charging scenario. Utilities are also testing the waters, which has raised some concerns. How competitive can you be with a utility that also controls the wholesale costs? “Fuel retailers will be limited in their ability to lower the prices to the consumer unless you have competition in the fuel supply chain,” said Siccardi. “Utilities sell power to EV charging retailers at their own internal transfer price. Demand charges, which set our rates exorbitantly high, are another impediment to make the EV business case for retailers. A driver should not be penalized for needing to refuel at certain times of the day, and fuel retailers should not be penalized for providing the electricity for that refueling.” Fitzgerald noted that “on the very extreme” there are some cases where utilities do own and operate the chargers themselves, and that’s where there’s some discussion on what the role of the utility should be. So far, utilities have been careful not to make too many waves. “What we’ve seen is utilities will essentially look at the average cost of EV charging in that area, and then set their price to not undercut that so that they are competitive,” said Fitzgerald. “Now that might not be how it is in the future, because utilities are required and encouraged to set their rates based on the cost of service. And they’re regulated, and they’re serving kind of a societal purpose.”

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An argument can be made that branded retailers deal with this to some extent when the oil company operates company stores, though there is usually care taken to make sure the retailer has a competitive environment. However, efforts are made to minimize competitive overlap, and the retailer can switch brands in a competitive market or make the switch to unbranded fuel. “There are utilities that see the potential of the electric vehicle market and the growing market as an opportunity to try to translate their monopoly position in selling electricity to residential homes and buildings and businesses and translate that monopoly into the electric vehicle charging market,” said Kantor. “And if they’re successful doing that, that would be tragic for the country. Obviously, it’s problematic for our industry, but our industry operates in one of the most price competitive and price transparent commodities markets in the world. The electric utilities operate in one of the least transparent and least price-competitive markets in the world, because it’s mostly monopolized.” “Our decarbonization efforts should incentivize private sector investments in the desired behavior—offering alternatives that reduce carbon output,” said Siccardi of Metroplex Energy. “To be effective, any alternative—including electricity— should be offered in an open, competitive market that gives American consumers the fullest economic benefits of robust price competition.” Keith Reid is editor-in-chief of Fuels Market News, a NACS media entity. He can be reached at kreid@fmnweb.com. Visit Fuels Market News at www.fuelsmarketnews.com.

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he NACS Show is on, and now is the time to reconnect with familiar faces and build new relationships with other convenience industry stakeholders. From 300+ innovative new products to over 40 education sessions, this year’s Show will allow you to not only build a stronger business but also a more connected community.

Conference: October 5–8, 2021 Expo: October 6–8, 2021 McCormick Place, Chicago www.NACSShow.com

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A TIME TO LEARN When it comes to learning, the power of peers is unequaled. Only at the NACS Show can you connect and share with real-world industry insiders and retail superstars who are shaping the future of convenience. NACS offers education sessions, hands-on workshops and engaging keynotes designed to make sense of this COVID environment and put you on the path to success. Take a look at some of the sessions that will inspire and delight you:

CATEGORY MANAGEMENT Cold Vault in 2021: Trends and Takeaways TUESDAY, OCTOBER 5 12 - 1 PM The exponential growth in alternative nonalcoholic beverages, craft beer and mixed alcoholic drinks has given category managers and customers infinite choices in the cold vault. In this session, Dr. Kim Cuellar, category marketing manager at OnCue, will provide current trends and research on new options to help you benchmark and gain new ideas for your own cold vault. She will be joined by leading experts from Anheuser-Busch, PepsiCo and COOP Ale Works.

FOODSERVICE 4 Ways to Stand Out as a Small Operator: Tips From the Gas Station Gourmet TUESDAY, OCTOBER 5 2:30 - 3:30 PM From crawfish fettucine to Cajun curry to chicken fried steak, Al Hebert, aka, the Gas Station Gourmet, shares some memorable meals from his culinary journeys exploring small convenience stores across America. He also shares tales of the restrooms that have impressed him (and ones that scared him away from trying the food), and how small stores connect in big ways with their communities through social media.

CUSTOMER EXPERIENCE Creating an Integrated Mobile Experience THURSDAY, OCTOBER 7 8 - 9 AM One undeniable fact about consumer behavior, accelerated during the pandemic of 2020, is the consumer’s further embracement of mobile device connectivity for everything from search to order to payment. The needed digital footprint and app interface with consumers can be a challenge to create, especially for smaller operators. Kay Segal of Business Accelerator Team will share a digital journey roadmap that takes into consideration the consumer journey and how retailers can strategically begin their journey to create a superior consumer-oriented digital engagement interface. She will be joined by Conexxus and retail leaders from St Romain Oil and FavTrip.

FUELS EV 101: What Is EV/EV Charging and Why It’s Important TUESDAY, OCTOBER 5 12 – 1 PM Electric vehicles are being sold in increasing numbers and will become

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a significant part of the market in the near future, creating an opportunity for convenience retailers to continue servicing on-the-go consumers. This panel will discuss the anticipated pace of market evolution, explain why the convenience industry is well positioned to provide necessary charging services and help retailers prepare to participate in this growing market. EV 201: How Do I Do EV? WEDNESDAY, OCTOBER 6 8 – 9 AM Once you decide to offer charging services to your customers who drive electric vehicles, where do you start? This session will focus on the nuts and bolts you need to understand in order to successfully deliver EV charging services. Join experts from Chargepoint, EVgo and Shell who can help you navigate this new business opportunity from concept to execution. An EV 301 class—The Economics of EV Charging—is also not to be missed. LABOR/LEADERSHIP You Can Create Disney Magic Too! Lessons in Leadership, Management, Culture and Customer Service WEDNESDAY, OCTOBER 6 9:15 - 10:15 AM

SMALL AND MIGHTY As it does every year, NACS is offering four hands-on training workshops to help solve the challenges unique to smaller operators. Attendance is limited to the first 45 retailers that arrive. No pre-registration required. • Protecting Profits Through Loss Prevention • What’s In It for Me? How Incentive Programs Work for the Small Operator • How to Hire in the “New Normal” Labor Market • Understanding Store Economics

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In a tight labor market and the very competitive convenience channel, everyone is looking for ways to set their organization apart and to grow customer loyalty. Come to this session to hear from Lee Cockerell, the former executive vice president of operations for Walt Disney World Resort, as he brings his innovative and powerful leadership and service lessons to your organization. OPERATIONS Evolving Your Trip Drivers WEDNESDAY, OCTOBER 5 2:30 – 3:30 PM This session will start out with a broad overview of how customer trip missions are changing, then dive into how a retailer is evolving strategy based on these changes. NACS Research Director Leroy Kelsey is joined by the director of advertising and marketing for Kwik Trip, Mark Meisner. TECHNOLOGY The 2021 NACS/Conexxus Technology Roadmap THURSDAY, OCTOBER 7 8 – 9 AM NACS and Conexxus have revisited their technology roadmap, which includes essential and prospective technologies high-performing retailers should incorporate in their strategies. This roadmap will provide a picture of what relevant technologies will achieve reality, by when, to provide clarity to support a systems strategy. This roadmap is a compilation of research from outside the industry, specifically designed to see 10 years ahead to suggest technology and cultural evolutions that will prepare you for the new landscape. To see a list of all NACS Show Education Sessions, visit www.nacsshow.com/education. CONVENIENCE.ORG

GET A HEAD START NACS offers two pre-conference workshops where you can become certified in category management or master the challenges of becoming a multi-unit leader. These two workshops are limited to 50 participants each. Additional fee and pre-registration required.

MULTI-UNIT LEADERSHIP TUESDAY, OCTOBER 5 9 AM - 3:30 PM Available to buyers only Cost: $399/person

Author Jim Sullivan brings the principles from his bestselling book, Multi-Unit Leadership: The 7 Stages of Building Profitable Stores, to the NACS Show for a one-day workshop to help retail c-store managers build the needed skills to transition to multi-unit leaders. In this six-hour interactive workshop, Sullivan addresses one of the most challenging transitions in a store leader’s career: the move from single-store manager to multi-store manager. Designed for aspiring, newly promoted or current district/area managers, participants will walk away with skills and tools to: • Abandon the single store “quarterback” mentality and tasks for the more nuanced and leadership focused multi-store “coach” mentality and tasks • Proactively manage time • Execute effective store visits • Develop and build a team • S erve as a brand ambassador and role model for store managers •I mprove territory performance Attendees will receive a copy of Sullivan’s award-winning book Multi-Unit Leadership: The 7 Stages of Building Profitable Stores to continue their learning beyond the class.

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NACS ADVANCED CATEGORY MANAGEMENT CERTIFICATION TUESDAY, OCTOBER 5 9 AM - 3:30 PM Cost: $499 for NACS Show attendees; $599 for NACS Show exhibit staff

Earn your NACS Certified Convenience Advanced Category Management certification (CCACM) by completing this hands-on education session. Comprised of key strategic planning and analytical skill-building programs, the six-hour interactive workshop is tailored for experienced category management and merchandising professionals from retailers and suppliers in the convenience and fueling retailing channel. Learn how to develop a holistic brand strategy and identify points of differentiation for your brand. Discover how to integrate consumer shopping behavior to create winning space and assortment strategies—with an emphasis on how the coronavirus has impacted the industry. A deep dive into price elasticity modeling, utilizing some behavioral economic principles, will guide attendees on how to optimize price, promotions and overall profitability. Drawing on the fundamentals included in the online NACS Advanced Category Management curriculum, this in-person workshop will incorporate industry data and offer collaborative work sessions designed for maximum learning and retention. Completion of the online NACS Certified Convenience Category Manager (CCCM) course prior to this event is strongly encouraged, as an understanding of basic category management principles is assumed. Upon completion, each participant will earn a CCACM certificate from NACS and Impact 21.

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VISIT

NACS SUS AT BOOTH HOW 2110

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EXPO DISCOVER NEW PRODUCTS Explore 420,000 square feet of expo space, featuring more than 1,200 exhibitors across five categories of interest: Merchandise, Candy & Snacks, Technology, Facility Development & Store Operations, Fuel Equipment & Services, Food Equipment & Foodservice Programs. The New Exhibitor Area features companies that have never exhibited at the NACS Show. You don’t want to miss the opportunity to be one of the first to engage with the latest technology, products and companies entering the convenience store market, including emerging categories. The New Exhibitor Area is open early for attendees to explore emerging products before the expo opens. Retailers and convenience distributors also have exclusive access to the popular Cool New Products Preview Room, where the hottest new products available to the convenience stores are on display from the following categories: • Facility Operations • Foodservice • Fuel Equipment and Service • Merchandise, Candy and Snacks • Technology Attendees use the NACS Show mobile app to capture product details and access exhibitor contact information, as well as print a custom “shopping list” for a visit to the main expo. Take advantage of exclusive Preview Room hours before visiting the expo.

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BEFORE YOU GO… NACS Show tools can help you make the most of your time in Chicago. The My Show Planner online tool helps you set your schedule. Use the planner to: • Research the events you’d like to attend, create a personal agenda and export it to your calendar. • B rowse product categories, search exhibitors and save time by adding them to a list of booths you want to visit. • E xplore the more than 40 education sessions and speaker details, then “star” the sessions you want to attend. • Plan the most effective way to utilize your time on-site. My Show Planner automatically syncs with the NACS Show App, so you only need to enter your information once. Search “NACS Show” in the Apple store or Google Play for the free app or visit nacs21.mapyourshow.com. The NACS Show App also connects you with products in the Cool New Products Room.

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SCHEDULE OF EVENTS OVER FOUR ACTION-PACKED DAYS, the NACS Show has activities for every kind of convenience and fuel retailer and everyone on your team. Convenience store distributors, retailers, wholesalers and exhibitors/ vendors will all uncover the most innovative products and technologies, tap into impactful education sessions and access engaging networking opportunities.

Tuesday, October 5

Wednesday, October 6

7:30 a.m. - 5:30 p.m.

8:00 a.m. - 11:30 a.m. Cool New Products Preview Room (Retailers Only)

Registration

9:00 a.m. - 3:30 p.m. Preconference Workshop: Advanced Category Management Certification (pre-registration required) 9:00 a.m. - 3:30 p.m. Preconference Workshop: Multi Unit Leadership Training (pre-registration required) 10:00 a.m. - 5:30 p.m. Cool New Products Preview Room (Retailers Only) 12:00 p.m. - 3:30 p.m. Education Sessions 3:45 p.m. - 5:00 p.m. Opening General Session with Jennifer Powers 5:00 p.m. - 6:30 p.m. NACS Show Kick-Off Party (ticketed event)

GENERAL SESSION WITH JENNIFER POWERS

As a coach, speaker and best-selling author, Powers has spent the past 15 years helping people remove the mask, crack open their outer shell and reveal the power that lies beneath. She’s coached hundreds of professionals and mentored and trained more than 2,000 coaches. Based on the teachings and strategies found in her best-selling book Oh, shift! and her recent book, Good shift!, Powers uses wit, humor and audience interaction to help participants access tools to better handle change and discover ways to can help themselves (and others) be better. Powers will share easy-to-remember, simple, yet life-changing tools to react to change better and to view it in a much more positive light. 48

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8:00 a.m. - 10:15 a.m.

Education Sessions

10:30 a.m. - 11:45 a.m. General Session with Kendal Netmaker 10:30 a.m. - 5:30 p.m. New Exhibitor Area (Early Access 10:30 a.m.) 11:30 a.m. - 5:30 p.m. Expo (All Exhibits) 11:30 a.m. - 5:30 p.m. Cool New Products Preview Room

GENERAL SESSION WITH KENDAL NETMAKER

Kendal Netmaker is an award-winning entrepreneur, author and keynote speaker who is on a mission to empower and motivate people worldwide by sharing his message: Regardless of where you come from and what challenges you face, you have the power to enact change. From Sweetgrass First Nation, Netmaker and his siblings were raised by their single mother. Life wasn’t easy growing up on the reserve surrounded by poverty and few chances for opportunities. Netmaker is a master storyteller and a leading entrepreneur whose passion to succeed is contagious. One of Netmaker’s companies is Neechie Gear—a lifestyle apparel brand that gives back a percentage of its profits to fund underprivileged youth to empower them to take part in sports. He is the author of the book Driven to Succeed. CONVENIENCE.ORG

Premier Manufacturing: Brands Built on Integrity Owned by a cooperative of proud American farmers using the best U.S.-grown tobacco blends among their competitors, Premier provides high-quality, value-priced cigarette brands for the adult consumer. C-stores across the country are buying in.

Commitment to Quality Premier Manufacturing, Inc. is the consumer products division of U.S. Tobacco Cooperative Inc. (USTC), an American grower-owned marketing cooperative based in Raleigh, NC.

500+ member farmers throughout the Southeast

Members maintain GAP Connections Trackable process includes all aspects of manufacturing under one roof Certification Standards Ensures sustainable, ethical agricultural practices Tobacco processing & stemmery Primary blending / Cigarette finishing

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Premier’s support staff prides itself on meeting customer goals with seamless execution in achieving the highest regulatory standards.

Premier products use only top-end tobacco blends.

• Provides sales/service support across the U.S. • Develops POS materials for high visibility • Creates custom sales & merchandising programs • Maintains strong relationships with top distributors

• Partners with top national and regional retail chains

The finest flue-cured tobacco in the world • All U.S. grown • Environmentally sustainable • Compliant with every regulation The best blend among competitors • Highest concentration of flue-cured tobacco • Vibrant color • Blends provide exceptional aroma and flavor experience Manufactured on industry-leading equipment • Laser perforation • Inked code dating • Latest high-tech advancements

Your Trusted Premier Brands Choose the brand that suits your loyal consumers. Each brand features a variety of styles to satisfy every taste. Contact PremierManufacturing today! www.gopremier.com/contact

SCHEDULE OF EVENTS Thursday, October 7

Friday, October 8

7:30 a.m. - 5:30 p.m.

7:30 a.m. - 1:30 p.m.

Registration

8:00 a.m. - 10:15 a.m. Education Sessions 8:00 a.m. - 5:30 p.m. Cool New Products Preview Room

Registration

8:15 a.m. - 9:15 a.m. General Session: Ideas 2 Go Video and Panel Discussion

8:00 a.m. - 1:30 p.m. Cool New Products 10:30 a.m. - 11:45 a.m. General Session: Preview Room Reinventing Convenience and Reimagining Our Future 9:00 a.m. - 1:30 p.m. Expo (New Exhibitor Area and 10:30 a.m. - 5:30 p.m. New Exhibitor Area Main Exhibits) (Early Access 10:30 a.m.) 11:30 a.m. - 5:30 p.m. Expo (All Exhibits)

REINVENTING CONVENIENCE AND REIMAGINING OUR FUTURE

What could the future of convenience look like—and what do we need now to define that path? Join NACS President and CEO Henry Armour, 2020-21 NACS Chairman Kevin Smartt and Incoming NACS Chairman Jared Scheeler in this lively, interactive session.

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IDEAS 2 GO VIDEO AND PANEL DISCUSSION

Watch how eight companies—from one-store operators to those operating hundreds of locations—have redefined convenience around energy, foodservice, last-mile delivery, community and culture. New this year: An in-person panel of Ideas 2 Go retailers will discuss how their ideas can translate into your stores.

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MORE CHOICES. MORE “CHEERS!” With mor e off e r in g s th an ev er b efo re, we’re bring i ng ne w f r i en d s to win e an d sp irits wh ile conti nui ng t o c ultiv ate o u r p rem iu m b u sine s s . That m e a ns m or e cu sto m ers fo r y o u an d mo r e chee r s a l l a r ound. Gro w with u s.

The

Pivot

Author and executive coach Jennifer Powers shares what to do when “shift” happens. BY BRUCE HOROVITZ

Conference: October 5–8, 2021 Expo: October 6–8, 2021 McCormick Place, Chicago www.NACSShow.com

| SEPTEMBER 2021

Jennifer Powers NACS Show 2021 General session—October 5 3:45–5 p.m.

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ew things are harder for any c-store owner than the pivot. The air conditioner stops working on the hottest day of the year. The freezer stops operating right after you get a new delivery of ice cream. Your most dependable shift worker gets sick. A savvy competitor opens down the street. The real issue isn’t about what happens. It’s about how you react to what happens. That is the essence of the message that nationally recognized motivational speaker Jennifer Powers will offer to NACS Show attendees, October 5-8, at the McCormick Place Convention Center in Chicago. Powers’ speech comes at a moment of great change. The convenience and fuel retailing industry is under constant pressure to pivot to healthier foods, reduce sales of tobacco products and install electric vehicle charging stations. Then there’s the competitive pressure to improve technologies and to modernize with more contemporary formats. Change is a constant not just in the c-store industry but in all industries, and Powers knows this firsthand. “Change is something that happens to every business every day—without exception,” said Powers, who has authored three books on change, including Oh, Shift, and Good Shift. “Your ability to personally deal with change will help you deal with anything that comes your way professionally.” PANDEMIC PIVOT Powers learned this very difficult lesson firsthand. “During COVID-19, I had to do a serious pivot,” she said. For years, 90% of her business had been giving in-person motivational speeches and in-person training, coaching and mentoring of more than 2,000 coaches worldwide. She is a master certified coach—accredited by the International Coaching Federation. But along came the pandemic, and all of her person-to-person speaking and coaching engagements suddenly came to an instant halt. What to do? “It was a real ‘oh shift’ moment for me,” she said. “I had to immediately pivot to digital delivery and virtual engagement and a whole sector of business that I’d never considered before.” Instead of throwing in the towel, she posed this critical question to herself, just as you should when your c-store comes to a pivotal point of change: What is the opportunity here? Within three months she went from doing less than 10% of her business online to more than 90%. “It was a shift show,” she said. “It was an opportunity I’d have never found if I hadn’t asked the question.” She had to instantly learn so many new things. Like how to improve lighting for online sessions, how to improve internet connections and how to market and promote a now-digital business that had been an in-person business for so many years.

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Your ability to personally deal with change will help you deal with anything that comes your way professionally.

“It seemed like a hot mess, but I’m so grateful now that the change happened,” she said. That’s because she not only survived—she thrived. She added an entirely new digital niche to her business where she’s now coaching other coaches and credentialing them online. As a result, she said, she is earning more now than she did before she made the big pivot. “That would never have happened if I hadn’t been forced to look outside of what I’d been doing,” she said.

simply happen,” Powers said. So, it’s how you react to the change—which is completely within your control—that will determine the outcome. “We are so busy being victims of change that we forget we have choice in how we react,” she said. “How we react will determine our reality.” For clarity: The moment after something happens you do have control by virtue of your reaction. “If you choose your reactions thoughtfully, you choose your reality,” she said.

YOU’RE IN CONTROL Similarly, c-store owners have far more control over their lives—and their businesses—than they think they do, she said. “When change happens, you may feel like you don’t have control, but you do—in the way that you react to the change,” she said. The first and best way to exhibit that control is in the words you utter when unexpected change occurs. Some c-store owners are probably tempted to say things like: “This is a nightmare.” Well, it probably will be a nightmare if that’s how you react to the change. But what if, instead, staff and co-workers heard you say, “This is a growth opportunity.” How we speak about something can impact how we and others will feel about it—and how we will react to it, and, yes, what the ultimate result will be to that change, she said. Why is change so difficult for so many business owners? In part because owners too often feel like victims of change. They typically forget they have total power to choose how they respond to the change. So, it’s not uncommon for a business owner facing an unexpected change to ask out loud: “Why did this happen to me?” said Powers. But things don’t happen to you or against you, said Powers. “They

POWER IN THE SHIFT So, what, exactly, should a c-store owner do at the moment of unexpected change? The first and most important thing to do is to ask yourself good questions about what opportunity this change offers you and your business. But asking the question only gets you halfway there. “The shift won’t happen until you answer the question,” she said. Powers asks her clients questions to help them discover the positive and find the power in the shift. “I teach them self-coaching techniques to get more control over their reality.” But she doesn’t expect every NACS Show attendee will walk out of her motivational speech as a true believer. “I always tell my audience that they can take my advice and use it—or take it and leave it at the door on the way out,” she said. “You can choose to use anything—or not. That’s how much power you have. It’s your life experience. I’m just here to offer ways to think differently and therefore have different results. My audience can experience their power of choice in just listening to my message.” In the end, she said, it’s up to c-store owners to model the behavior they want to see from their

| SEPTEMBER 2021

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**Technomic Roller Grill Consumer Study, August 2020

If you can be supportive of your workers, everything else will take care of itself. employees. “If the leader isn’t modeling the behavior they want to see and taking more control of their reactions, they can’t expect their employees to do it,” Powers said. So, great leaders need to embrace the trickledown effect, and that includes reaching out to team members with good questions, Powers said. If an employee, for example, is asking for a schedule change, you need to be willing to ask good questions and hold space for their response and ultimately listen and respond with compassion. In the end, it’s all about good communication. “Successful teams communicate with consistency and with honesty,” Powers said. Too often, communication in the workplace is poor because of an overriding fear of not wanting to cause problems. Great teams, she said, have clear accountability systems where the team itself has accountability, and the team members also each hold themselves accountable. The key to good communication is to not just tell the team what to do but to involve them in the planning so that you’re extracting ideas from them, and they see it’s not just coming from the top down. “If you extract from them, you get way more buy-in,” she said. Employees want to feel valued. Business leaders can tremendously influence employee attitude— and even retention rates—by constantly offering opportunities for employee growth and by making efforts that not only support the business but also support the individual workers, said Powers. “If you can be supportive of your workers, everything else will take care of itself,” she said. There always will be unexpected chaos that interrupts the workplace. What matters most is how you respond to that chaos. Instead of wishing it wasn’t there, find a way for the chaos to work for

| SEPTEMBER 2021

you. “You can react by being a salmon swimming against the current or you can be a leaf flowing with it,” she said. Also, she cautions convenience retailers not be lulled by the often false hopes of digital technologies or social media. If you’re an independent c-store owner who owns just a store or two, it’s almost always more beneficial to devote your personal energy into serving every customer like they’re royalty rather than investing large amounts of time and money into digital messaging. Most of your customers are not looking to see what you’re doing on Facebook or Instagram or Snapchat, she said. Instead, she said, they want to know if you acknowledge them when they walk into your store. They want to see that the store is clean. They want to feel as if someone cares. Powers has had this experience at a local c-store she frequently visits near her Portland, Oregon, home. What matters, she said, is that the clerk always greets her with a big smile. “And he knows exactly what I want to buy.” She sometimes buys gluten-free beer at the store, and he recently greeted her with a remorseful explanation about why the store was out of her brand. His title may be store clerk, but she said he treats her more like he’s the manager or owner. “He makes me feel special,” she said. So should you. Bruce Horovitz is a freelance journalist and national media training consultant. Contact him at brucehorovitz@gmail.com.

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An IDEA That’s Good for Everyone Join us for a conversation to spark dialogue that advances inclusion, diversity, equity and awareness in the convenience industry.

uilding an inclusive culture is not only the role of HR but also the responsibility of every leader, manager and employee. In an inclusive work culture, people feel respected and valued, and they give the best of themselves, generating higher-quality production. This commitment to openness and access inspires innovation, engagement and retention. Join us for an in-person, one-day conference as we explore a path forward alongside senior HR professionals and retail leadership to hear their candid experiences, perspectives and plans to enhance inclusion, diversity, equity and awareness in their organizations.

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Called the NACS IDEA Conference—for its embrace of inclusion, diversity, equity and awareness—the live, industry-wide conversation begins on October 4 in Chicago, one day before the NACS Show kicks off. WHO IS SPEAKING Facilitated and keynoted by Michelle Duguid, associate dean of diversity, inclusion and belonging at Cornell University, the program will help attendees define, understand and leverage different types of diversity. Intimate retailer roundtable discussions will explore components of successful engagement, counteracting unconscious bias and fostering an inclusive climate in your organization, CONVENIENCE.ORG

NACS IDEA Conference Monday, October 4 10:00 a.m. - 5:30 p.m. Learn More McCormick Place, Chicago Register at www.convenience.org/ IDEAconference

as well as understanding communication strategies for diversity, equity and inclusion. During six quick-fire 30-minute presentations, chief HR and diversity officers from EG America, 7-Eleven, Giant Eagle/Get Go, Sheetz, Casey’s and Pilot Company will share their experiences and plans that—taken together—will begin to make the convenience industry stronger. A panel discussion with Thornton’s, RaceTrac and Kum & Go are also part of the program day. Hear from these leaders about what they have done, where they have focused (corporate, district, store level) as well as what worked, what didn’t work, what they would have done differently and—most importantly—what they still need to know.

Diversity

WHO SHOULD ATTEND? While program content is tailored to chief executives and senior HR leaders at convenience and fuel retailing companies, retailers of all functional areas and suppliers are very much welcome to join the conversation to gain firsthand insight into the challenges and opportunities around diversity and inclusion. When your workforce mirrors your marketplace, you’re stronger. You’re better positioned to thrive. Your customers will see you as a natural and better fit for them. That’s why diversity equals strength. It’s true in business and true in life. IDEA. More than a conference—a conversation. Join us.

Strength

Join us to kick off our industry-wide, in-person conversation about Inclusion, Diversity, Equity, and Awareness on October 4th in Chicago, one day before the NACS Show.

During five quick-fire 30-minute presentations, you and othertoindustry What Expectleaders will share perspectives, experiences, and plans that, taken together, will spark 10:00 a.m. – 10:15 a.m. Setting the Stage—Why Are We Here? to advance Presented by Henry Armour, Ph.D., president & CEO, NACS a beginning the Convenience industry.

10:15 a.m. – 11:30 a.m. Presentation: Building and Nurturing an Inclusive and Diverse Team Defining, understanding and leveraging different types of diversity. Fostering an inclusive climate. Presented by Michelle Duguid, Cornell University When your workforce mirrors your marketplace,

11:30 a.m. – 4:00 p.m. Top Industry Retailer Presentations—Sheetz, Giant Eagle/Get Go, 7-Eleven, you’re stronger. You’re better to thrive. EG America, Casey’spositioned and Pilot Company—a working lunch and breaks 4:00 customers p.m. – 4:20 p.m. will Tablesee Discussions: What did you hear this morning Your you as a natural and betterthat fitresonated most? 4:20 p.m. – 5:15 p.m. why Moderated Panel Discussion Audience Q&A for them. That’s diversity equalsandstrength. It’s Facilitated by Michelle Duguid of Cornell University and including RaceTrac, Thornton’s & Go true in business, and trueandinKum life. 5:15 p.m. – 5:30 p.m.

What Have We Learned? Where Do We Go From Here? Presented by Henry Armour, Ph.D., president & CEO, NACS

Thank you to these Hunter Club companies who have graciously provided their support for this conference and the issues discussed.

More than a conference. A conversation.

For the latest schedule updates and to register for the $399 conference, visit: www.convenience.org/IDEAconference.

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SEPTEMBER 2021 |

BIG, BOLD AND BEAUTIFUL

arketing and advertising failures fall into one of two generally accepted buckets: beautiful concepts that no one sees; and horrible concepts that everyone sees. For convenience store retailers overwhelmed by a growing list of competitors (Amazon, dollar stores, grocery and warehouse, among others)—not to mention a labor shortage —the advice is timely and underscores an urgent industry need: how best to create an engaging in-store experience that builds brand loyalty among consumers. For Rick Sales, president of engagement solutions provider Abierto Networks, “Brand messaging must be eye-catching as well as consistent. Having great digital content is just half the process. The other half is making sure that it plays at all of the right stores at the right times and in a way that will achieve the desired frequency of exposure.” Sales’ answer: Big, Bold and Beautiful, an alliteration of value propositions that equals results, according to Sales. “3B content is not simply a playlist of large, pretty pictures,” he says. Rather, it combines five distinct elements:

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A successful brand loyalty strategy starts with the right technology and finishes with sound execution. By Jerry Soverinsky

1. Simple: The content must be clear and easy to understand, with messaging as succinct as possible. 2. Large: The content must be visible, incorporating high-quality, accurate imagery and pictures. 3. Moving: Motion and animation, including video, are most effective. 4. Creative: Quality is as important as quantity. 5. Precise: Messaging must be on brand for messaging, colors, fonts and imagery. For convenience store retailers, the advice produces a paradox: The need to differentiate one’s brand is more important than ever, yet internal resources are stretched thin. The answer, Sales said, rests on technology: Retailers can deliver engaging and consistent brand messaging by leveraging smart, integrated tools. And there’s no time to waste, Sales said. IMPROVING THE IN-STORE EXPERIENCE “There are three main reasons why the on-premise, in-store experience is critical now,”

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Sales said. “Consumers’ expectation for high-quality digital content is already high, driven by their existing mobile and online experience.” Unless you are able to match that expectation, you risk losing credibility and engagement. “This is about perception,” he continued. “How well you are using digital content and technology and delivering a robust digital experience directly influences a consumer’s perception of your brand.” He likens this to the foundational need to provide clean bathrooms: “A memorable on-premise digital experience will significantly influence how consumers think of your brand.” Finally, to maximize your digital campaign, you must be able to cut through the media clutter. “Generating awareness is a contact sport in today’s c-store,” he said. “With thousands of messages assaulting consumers’ senses, you must get them to focus on your limited time offers, loyalty program and your coffee. This is not a sales lift initiative. It is a survival initiative.” But successful execution is not a matter of becoming a first adopter. Before embarking on any digital commitment, it’s best to view things through the proper lens. “Digital is not simply a cost,” Sales said. “It is an investment in generating sustained sales volume.” INTEGRATE FOR IMPACT There are no shortages of vendor options when it comes to digital in-store tools, but Sales said it is important to evaluate not just capabilities but approach. “The key is not impressions but engagement. And that occurs when you have a tightly synchronized messaging system.” Abierto, for instance, offers its OPEN Platform, a portfolio of modules that

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retailers can use to build a seamless network of digital touchpoints. It does so by focusing on creativity as well as consistency. CREATIVE OPEN incorporates a robust content management system (CMS) that allows retailers to quickly automate the creation and distribution of creative content throughout its modular system. An intuitive online dashboard makes creating messaging simple and straightforward, while easy-to-manage playlists refine distribution by daypart, devices and other customizable options. At the heart of the back-end process is the automated distribution of content, which uses metadata tagging and intelligent APIs. “This is how we guarantee that we can automate delivery with high accuracy,” Sales said. “By tagging digital content with metadata tags and using APIs to communicate, execute decision rules and collect data, OPEN can automate all scheduling, playlist building and content distribution tasks, freeing designers from these time consuming, highly detailed chores.” The focus for retailers, Sales said, is not on hardware know-how but software capabilities. “OPEN helps you automate your processes so that you can focus on creating an amazing on-premise consumer experience.” This reduces labor requirements, a critical resource savings that a retailer can reallocate to maximizing customer engagement. “By streamlining administrative tasks, improving performance, accuracy and reliability with automation and providing dedicated expert support and quality hardware, digital content creators and producers can focus on crafting the brand’s message into every

This article is brought to you by Abierto, a NACS member.

Brand messaging must be eyecatching as well as consistent.

SEPTEMBER 2021 |

communication and enhancing the in-store experience with amazing digital content, ” he said.

Listen to Convenience Matters podcast No. 297 “Quality Digital Content Matters” to learn why high-quality, effective and well-designed digital content is important, especially when the goal is to enhance the customer experience.

CONSISTENT Once a retailer enters and schedules content, distribution occurs through high-profile touchpoints, both inside and outside the store. These touchpoints include digital menus, video walls, interactive kiosks and LED signage—the primary visual landscapes associated with a store. OPEN Menu allows retailers to create bold, functional menus that can be updated in realtime. The modular design allows retailers to change images, prices and fonts quickly and even off-site. OPEN Videowall includes oversized messaging that a retailer can project across large format displays. Like OPEN Menu, OPEN Videowall incorporates bold messaging that is easily configured and that syncs automatically. OPEN Kiosk applies to interactive touch screens, allowing retailers to engage with both customers and employees. Deliver targeted messaging—for instance, COVID surveys to employees—and capture interactions and engagement, valuable metrics that allow you to continually refine messaging to improve performance. OPEN LED is designed for the forecourt, a proprietary, large format animated messaging (images and videos) module that rotates content and is available in varying sizes up to 150 feet. Transparent film projects a futuristic feel that engages customers, a dynamic first impression designed to draw customers into the store. Collectively, the OPEN modules deliver consistent and precise messaging that delivers on Sales’ Big, Bold and Beautiful imperative. “Research has shown that effective, on-premise digital messaging combines big, bold and beautiful content with frequent and timely exposure.”

To test its OPEN system for effectiveness, Abierto recently conducted an awareness survey at a major retailer to gauge the impact of its OPEN LED window film technology. Preliminary results (the survey is ongoing as of publication) of brand awareness and shopper behavior are compelling: • Increased recall among participants • Increased current and future in-store traffic • Increased unplanned purchases • I ncreased perception of store cleanliness and safety “The findings illustrated that OPEN LED signage can help communication with potential shoppers in an effective, memorable and helpful way, increasing both traffic and ring,” Sales said. DIFFERENTIATION WHEN DOING DIGITAL Few retailers would argue about the value of digital advertising today, but deliberation is key, Sales said, ensuring execution produces maximum positive impact. “Technology, combined with awesome content, can influence consumer perceptions of your brand and raise awareness of your offering, ultimately creating brand preference and loyalty.” But it’s a strategic coordination of these elements that will determine success, one with a foundation predicated on execution. “Remember, you don’t want to be the retailer with the amazing messaging that no one saw, or the retailer with the lousy messaging that everyone sees,” Sales said. “These self-inflicted wounds are preventable.”

Jerry Soverinsky is a freelance writer and NACS Magazine contributing writer. See his work at www.jerrysoverinsky.com.

| SEPTEMBER 2021

CONVENIENCE.ORG

Digital signage look like THIS?! We can help. Execute your vision with Abierto’s OPEN.PLATFORM

The OPEN.Platform combines state-ofthe-art technology solutions with intuitive content management and reporting tools that automate digital content scheduling and distribution; guaranteeing accurate distributions, while saving you valuable OPEN.Platform hardware modules are controlled by a centralized software interface, OPEN.CMS. time. With robust management and verification tools, you can easily ensure that your content plan is executed as you envisioned. Build a brand that keeps your customers coming back by giving them the digital experience they deserve, everytime - with OPEN. OPEN.AB-NET.US/PLATFORM

By Pat Pape

HAVEN

Convenience retailers offer the kind of coffee drinks consumers can’t reproduce at home.

| SEPTEMBER 2021

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ike most 20-somethings, Travis Messerschmitt loves coffee. A graduate student at the University of North Texas in Denton, Messerschmitt drinks several cups every day, usually adding milk, along with vanilla or peppermint coffee creamer. “I’ll also try the pretty wild coffee flavors, if it’s seasonal,” he said. “But I tend to avoid spending $5 to $7 on a cup of coffee if I can.” Messerschmitt’s most memorable coffee experience occurred not long ago at the Palace Coffee Company in Amarillo, Texas. “They put cayenne pepper and paprika in it, and it was amazing,” he said. “It’s not worth a six-hour drive out to West Texas, but if you’re ever within a one-hour radius of Amarillo, go there. I highly recommend it.” SPECIALTY COFFEE Specialty coffee falls into the hot dispensed beverage category, and like most foodservice categories, “hot dispensed beverages struggled in 2020 because of shutdowns due to COVID-19 and decreased store traffic,” said Jayme Gough, research manager, NACS. “Hot dispensed beverage sales fell 32.2% from 2019 to 2020, and gross profit dollars per store annually were down 34.4%.” But when customers did pour coffee, many poured specialty brews. Despite last year’s disappointing sales, specialty coffee made up the second largest percentage of hot dispensed beverage sales (38.4%) in convenience stores. “Single origin coffee is about as premium as you get in the convenience-store channel. Single origin imparts a very distinctive flavor and has a unique profile,” said Mark DiDomenico, director of customer success, Datassential, a market research company for the food industry. “But since January, there seems to be more of an emphasis on flavors instead of origins.” So far, 2021 has been a big year for sweet flavors, including a toasted caramel crunch latte and a cinnamon coffee at Wawa, a Peeps marshmallow latte from 7-Eleven, a raspberry crème brûlée from Kum & Go and a rainbow cookie-flavored brew from QuickChek. During the pandemic, “consumers got used to making coffee at home, and they’re buying premium coffee to brew at home,” DiDomenico said.

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MY COFFEE’S COLD Four years ago, the National Coffee Association began including statistics about Gen Z coffee drinkers in its annual report on coffee consumption trends, and the importance of that consumer group keeps growing. The generation born between 1997 and 2012 is 68-million strong and the largest age demographic in the U.S. Today, consumers between 18 and 24 have $150 billion in spending power and influence everything in the marketplace, including the coffee category. Gen Z also loves cold coffee. According to the National Restaurant Association’s “State of the Restaurant Industry Outlook for 2021,” regular hot coffee remains the most popular choice for 47% of java fans, but cold brew coffee is the fastest-growing coffee drink, with sales increasing by 4.6% year over year. “Cold brew coffee, nitro cold brew and frozen coffee beverages continue to lead the growth in premium coffee beverages,” said Jeff Ulrich,

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strategic account manager, BUNN, an American manufacturer of dispensed beverage equipment. Because Gen Zs are accustomed to instant gratification—think on-demand entertainment and one-hour delivery—they have different expectations, and that attitude causes many retailers to complain that younger shoppers aren’t loyal to a brand. “Younger consumers 18 to 24 are loyal to themselves,” said Ulrich. “They’ve never known anything but customization. They like innovation and being at the forefront. They like cold coffee and convenience stores, and 40% of 18 to 24 year-olds wish their local c-stores had more cold coffee offerings.” Cold coffee is a blank canvas for younger consumers. “They like that they can customize [their beverages], because that’s what they’re used to,” he said. “As for cold coffee in a can, the flavoring is pre-set. But if you have dispensed coffee, you can mix, match, add flavors or do whatever you like to your drink. Putting in different flavors, syrups and creamers gives them the ability to make it theirs.” COFFEE-TO-GO In 1964, a Long Island 7-Eleven store offered consumers the first coffee-to-go, a product that quickly became the norm, and this year, 7-Eleven began tweaking its coffee program to allow more customization. “Between the coffee machines and toppings bar at select 7-Eleven locations, you can create over 3,000 different menu items, so we offer something for everyone,” said Dave Strachan, innovation implementation leader, 7-Eleven. “We’ve dramatically expanded and enhanced our coffee offerings in more than 1,500 stores across the country, including in Los Angeles, San Diego, Washington, D.C., Manhattan and Queens and many cities across Virginia, New Jersey and Maryland as part of our biggest beverage and food renovation ever. “Younger customers, especially millennials and Gen Zs, are looking for customized options, whether that be the shopping experience itself or menu customizations,” he said. “Where we have revamped our coffee innovation, we’ve received great feedback. Customers love the different customizations available. Even more so, they love the low cost compared CONVENIENCE.ORG

iStock.com/:kickimages, rustemgurler; unsplash/fahmi-fakhrudin

“But they can’t replicate a toasted caramel crunch latte. That’s where the opportunity is for retailers to provide something that consumers can’t do for themselves at home.” Offering a generous selection of flavored coffee doesn’t mean eliminating flavor and syrup options at the coffee bar. “People will get a cup of French vanilla that is already flavorful and sweet, and they’ll add a couple more shots of vanilla to it,” he said.

“Younger customers, especially millennials and Gen Zs‚ are looking for customized options.”

to other retailers as the cost is determined by the size of the cup, not what’s in it. That allows customers to get creative without paying extra.” TRANSPARENCY Gen Z also expects transparency in the foods and beverages they consume. “Sustainability is a big buzz word right now, and 73% of consumers say they’d change their coffee consumption habits to ensure their coffee was sustainable,” said Scott Reed, communications and data specialist for BUNN. One thing helping to grow the cold coffee business is the fact that “there is equipment available to prepare it consistently,” said Jason Greb, regional account manager, BUNN. “Even before the pandemic, we saw a lot of operators looking for ways to reduce waste and present a consistent, fresh-ground product. Bean-to-cup technology is a way retailers can differentiate themselves and put a better, more premium product in front of the customer.” While coffee lovers can find bean-to-cup coffee in most large markets, there are still opportunities to kick an existing coffee program up a notch with new brewing technology. In 7-Eleven stores with the enhanced program, “touchscreen machines allow customers to brew custom hot coffee drinks, such as lattes and cappuccinos, in seconds with coffee beans that are ground fresh for every single serving,” Strachan said.

The stores also feature self-serve taps that let customers be their own baristas, pouring cold beverages like nitro cold brew, cold brew and tea and creating custom orders. Updated beverage equipment can be pricey, but the investment can be worth it for the right operator. “An average convenience store doing 80 to 100 cups of coffee a day can see an ROI on bean-to-cup equipment in two to four months,” Greb said. “The life span on the equipment is seven to 10 years, and a lot of that has to do with the store’s water quality and whether the retailer follows the recommended maintenance schedule.” No matter what kind of coffee a store serves, always start with the basics, he added. “The key to any coffee program is freshness and cleanliness. That’s never going away,” said Greb. “As we emerge from the last 18 months, this is a great time to start something new. New consumer habits are forming every day, and now is the time to be innovative.”

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.

CAPPUCCINO/ SPECIALTY COFFEE: 2020 SNAPSHOT

HOT DISPENSED BEVERAGE SALES CONTRIBUTION Percent of Sales by Subcategory Coffee 48.8%

$32,708

Cappuccino/ Specialty Coffee 38.4%

Average sales/ store

$23,819

Refills 3.1% Coffee Club Mugs 0.5% Hot Tea 0.3%

Average GP$ per store

72.82%

Hot Chocolate 8.9%

Gross margin %

Source: NACS State of the Industry Report of 2020 Data

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DELIVERY DILEMMA

By Terri Allan

C-stores weigh the trade-offs between own-staff versus third party in the mobile order and delivery landscape.

esponding to on-demand consumer orders has been “part of our vision since 2011,” said Anne Gauthier, co-CEO and chief finance officer of Y-Not-Stop, the Louisiana chain of more than a dozen convenience stores owned by St. Romain Oil Co. Acknowledging how most millennials and young consumers grew up with technology, Y-Not Stop began pursuing the potential of mobile orders and delivery a decade ago. And with demand skyrocketing in the past year, Gauthier doesn’t see any reason to turn back. “We’re betting on mobile ordering and delivery to play an increasing role at our stores,” she noted. C-store industry experts agreed that on-demand ordering and delivery is here to stay. “Those c-stores not providing it are at risk of being out-convenienced,” remarked John Nelson, president and CEO of Vroom Delivery,

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We saw a massive increase in demand for delivery during COVID.

which helps provide e-commerce solutions for c-stores. Nelson pointed to increased competition from the likes of DoorDash’s DashMart concept and GoPuff. “In the past, convenience meant first in proximity,” he said. “Today, there are more options. The meaning of convenience is changing, and those who aren’t keeping up are at risk.” Lori Stillman, NACS vice president of research, added that in today’s environment, digital ordering and delivery “keeps retailers relevant to their customers.” In the past year, consumers have had a tremendous opportunity to access products and services digitally, she continued, “and they like it. It saves them time. It’s convenient, and it provides a value.” Indeed, the pandemic has dramatically accelerated retailer adoption of a number of e-commerce strategies. “The pandemic has pushed e-commerce ahead by three years,” said Nelson, noting that prior to March 2020, on-demand grocery delivery was typically valued at $1 billion a month. These days, it easily tops $7 billion. The opportunity hasn’t been lost on c-store operators big and small. “When the pandemic hit, we saw that consumers wanted limited contact, and there was an increase in delivery orders,” remarked Art Sebastian, vice president of digital experience at Casey’s, with more then 20,000 stores. As a result, Casey’s stepped up its mobile order and delivery offerings. Similarly, single-store owner Anthony Perrine, president of Lou Perrine’s Gas & Grocery in Kenosha, Wisconsin, said, “We saw a massive increase in demand for delivery during COVID.”

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The NACS research report “Last-Mile Fulfillment in Convenience Retail,” released last year, also pointed to the recent ratcheting up in on-demand services by c-stores, with 68% of North Americanbased store operators polled saying that they began offering last-mile fulfillment in response to the pandemic. While the study found that mobile orders for in-store pickup were the most frequently offered last-mile service, delivery is gaining ground. Third-party platforms like DoorDash and Uber Eats were the most frequent method for ordering, but delivery providers varied, with more than one-third of the stores surveyed using their own staff for delivery, according to the report. DIVERSE MODELS C-store partnerships with third-party delivery partners run the gamut. 7-Eleven exclusively uses third-party partners for delivery, with orders placed via outside platforms or the chain’s 7Now app. The company first started offering delivery four years ago. “In the past year we doubled our delivery footprint and quadrupled our daily delivery orders,” said Raghu Mahadevan, 7-Eleven senior vice president of digital, with much of the expansion driven by pandemic-induced consumer shopping habits. “We now offer on-demand ordering to more than 90% of our footprint, reaching 60 million households.” Casey’s delivery method—which for years entailed largely phone-in pizza orders delivered by staff employees using their own vehicles—has transitioned during the course of the past year. According to Sebastian, the chain is utilizing a hybrid delivery model, powered by its own staff and third-party marketplace drivers, who fulfill orders either placed on the platforms themselves or via their “white label” delivery solutions. (White label platforms allow for orders to be placed on retailers’ own websites, while delivery is supported by the third party.) “We’re very pleased with the results. We’ve had highly incremental sales,” Sebastian said of the partnership with DoorDash, noting that a similar partnership with Uber Eats is in the works. Choice Market, the upscale c-store concept now with four locations in Denver, is shifting toward a CONVENIENCE.ORG

native mobile ordering and delivery system via its app, launched in September 2020. Mike Fogarty, founder and CEO, said that while the stores “still leverage third-party providers, our goal is to increasingly focus on our native model” to ensure the best customer service and reduce store fees associated with outside platforms. “We’ve seen a lot of user growth and growth in basket size,” Fogarty said of the shift. Choice utilizes electric vehicles and e-bikes when making its own deliveries and is looking into “unmanned delivery” through remote control or autonomous vehicles, Fogarty said, noting, “It’s a good fit for our model.” HEIGHTENED CONSUMER NEED DoorDash has increased its emphasis on the c-store channel in the past year, after seeing a “heightened consumer need for household essentials on demand,” said Mike Goldblatt, head of grocery and convenience partnerships. Today, DoorDash has more than 21,000 c-stores on the platform, including banners like 7-Eleven, Casey’s, Circle K, E-Z Mart, GetGo, United Pacific and Wawa. Requirements and fees charged to retail partners vary by market and according to the specific set of products and services offered, Goldblatt noted. “It’s early days for the category,” he said of mobile ordering and delivery in c-stores, but it’s marked with “tremendous potential.” Also last year, DoorDash launched its own digital c-store, DashMart, in several cities around the country. Rival Uber Eats began working with c-stores two years ago, and, again, those relationships accelerated during the pandemic, according to Matt Miller, new verticals operations lead for Uber Eats in the U.S. and Canada. Among the c-stores Uber Eats services are 7-Eleven, Circle K, Sheetz and Wawa,

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along with independent operators. “Given Uber’s expertise in last-mile delivery logistics and partnerships with merchants around the globe, we’re uniquely positioned to meet this need for both convenience merchants and consumers,” Miller remarked. Third-party ordering and delivery platforms offer c-stores increased visibility to their offerings. “Our local logistics platform provides our merchant partners with the opportunity to reach new consumers, grow their businesses and benefit from incremental sales that leverage the fixed cost investments they’ve already made,” remarked Goldblatt. Gauthier and Fogarty, who both have experience with the popular apps, agree. “They come with a built-in customer base,” said Fogarty. Other benefits include reduced labor costs and technology investments compared with storeonly delivery. “They have the drivers, so there’s no liability, and you’re not paying someone to wait around to make deliveries,” explained Roy Strasburger, president of StrasGlobal, a c-store operations and consulting company. Stillman, meanwhile, noted that with the platforms, “the technology doesn’t have to be built.” The challenges outweigh the benefits for some c-stores. Retailers and c-store experts

SEPTEMBER 2021 |

Discover important insights on winning trips, growing baskets and reinforcing industry leadership through last-mile fulfillment solutions. Scan the QR code to download the free NACS report “Last Mile Fulfillment in Convenience Retail.”

pointed to the high fees involved with partnering with third-party providers and limited access to customer information and data as the biggest drawbacks. According to Strasburger, fees can reach as high as 30% per order. “If you’re only making a 31-34% margin, you don’t have much to work with,” he said. Fogarty noted that one of the big reasons he pursued Choice Markets’ native platform was “to understand the customer better. We want to own the data to merchandise better and have the right products,” he said. Added Strasburger, “With third parties, you don’t own the customer. They do.” Pointing to concepts like DashMart, he cautioned that third-party platforms are now in the position to “harvest your data to use against you. So, the partnerships may only be short-term gains.” Perhaps in an effort to address these concerns, DoorDash and Vroom Delivery recently unveiled an e-commerce program that allows c-stores to retain access to customer information. Through the platform, serviced by DoorDash, orders are processed via Vroom, giving retailers the ability to market their own e-commerce programs and reduce the high costs typically associated with third-party fulfillment. Lou Perrine’s was one of the first retailers to partner with the new program this spring, and the company planned to transition from the own-delivery service it has offered for the past eight years to the DoorDash network. Among the other challenges of third-party providers is the inability to deliver age-restricted products—with legalities varying by state and market—syncing the technology of the platforms to that of POS systems, space constraints and the potential for adverse customer service experiences. “Retailers must do a risk/benefit assessment” before partnering with a provider, Strasburger advised.

| SEPTEMBER 2021

LABOR WOES Native mobile ordering and delivery platforms also carry their share of benefits and drawbacks. According to both Sebastian and Stillman, the biggest perk is that retailers control the entire process—“from the web to the delivery driver,” Sebastian said. System integration is also minimized, Stillman noted. And when it comes to the delivery of age-restricted products, it is more common for store employees to be able to make deliveries to customers’ homes than third-party couriers. Still, store delivery carries high costs, including labor, insurance, liability and vehicles. “It’s a static labor model,” remarked Sebastian. “You’re scheduling hours for drivers without orders,” he said, noting that Casey’s delivery personnel are compensated differently than in-store workers and utilize their own vehicles. Perrine added that it can be difficult to part with an employee to make a delivery when the store is busy. “It hinders our business to send someone out,” he said. Delivery—whether own-store or third party— may not be right for all c-stores. “Take a look at your core competencies,” advised Stillman. “If you have the technology and footprint for a delivery model, look into it. If not, mobile orders and pickup may be a better solution.” Both Goldblatt and Miller noted that while c-store mobile ordering and delivery is still emerging, the potential is vast. “C-stores that embrace delivery now are best set up for growth by building customer loyalty early,” Goldblatt said. Perrine expects that in the future delivery will be just another service that c-stores provide. “It will never overtake the in-store model,” he said, “but it is a way to reach customers.” 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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Capturing an Underserved Daypart

The afternoon and evening dayparts offer opportunity for retailers to grow basket size and customer base. BY SARAH HAMAKER 74

| SEPTEMBER 2021

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he coronavirus pandemic upended foot traffic, shifting the traditional busy breakfast and morning commuter period to later in the day and lunch to well beyond noon. “Because of this change in foot traffic patterns, we saw an opportunity to capture interest and food dollars in a nontraditional daypart for convenience stores—the afternoon snack and evening meal,” said Jac Moskalik, director of fresh and foodservice for Core-Mark, based in Westlake, Texas. “During COVID-19, retailers attracted new consumers, and they want to keep those customers coming into their stores, so they need to expand their offerings with more immediate consumption and future consumption products.” The convenience store industry is especially well-positioned to win more snacking opportunities in the afternoon and evening hours. For example, the coronavirus pandemic accelerated snacking and snack food consumption, which had been rising prior to 2020, according to the NPD Group. “America is a nation of snackers, and we’re no longer as averse to snacking as we once were. Instead, snacking is viewed as a way to have a quick bite in between meals or as a convenient meal side,” said Darren Seifer, NPD food and beverage industry analyst. “Snacking is woven into the fabric of our daily lives, and this way of thinking provides endless opportunities for food and snack marketers.” The evening daypart also offers an area with potential for growth at convenience stores. Today’s consumer wants evening meal options for immediate consumption and to cook at home with their families. “This has been a traditionally underserved meal for the industry,” Moskalik said. “We see the increased interest in frozen foods and fresh-prepared, family-sized meals as feeding this trend.” Both afternoon snacking and dinner represent two additional ways convenience stores can capture more of the consumer food dollar, and pivoting to meet that need can be relatively simple. FIRST STEPS Switching your mindset from morning and lunch to afternoon and dinner doesn’t mean upending current operations. “Of course, it’s challenging to try to attract a different consumer from the daily commuter picking up a pastry or breakfast sandwich on his way to work,” she said. “But there are simple approaches to make gradual inroads into these dayparts.” Evaluate current selections to see if you can reposition snack items for afternoon or evening

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This article is brought to you by Core-Mark, a NACS Hunter Cub Gold member.

consumption. For example, some baked goods, such as whole grain muffins or soft pretzels, could be easily promoted as more substantial afternoon snack options. One independent retailer close to an elementary school stocks up on ice cream novelties during the school year because of the rush from kids stopping by after school for a snack on their way home or to sports practice. Moskalik also recommended retailers consider how close each location is to a grocery or dollar store. “Check out the competition to see what offerings the closest store has for dinner. Who is their consumer—do they overlap with yours? How much space have they dedicated to freezer, foodservice and grab-and-go?” she said. “Answering those questions first can guide you in deciding how to reach this consumer.” FROZEN FILL-INS Frozen foods heated up during the pandemic, a trend that shows no sign of cooling off. According to the “2021 Power of Frozen” report by the American Frozen Food Institute and FMI—the Food Industry Association, the frozen food category rang in $65.1 billion in retail sales last year—a 21% increase in dollars and a 13.3% increase in units over the previous year. Nearly all types of frozen foods experienced double-digit gains, led by seafood, poultry and appetizers. At convenience stores, the frozen food category grew from 33.33% of the gross margin in 2019 to 52.61% in 2020, according to the NACS State of the Industry data. The average gross margin dollars jumped 226.1% in 2020 over the previous year, rising to $4,362. For retailers who want to ease into this daypart, expanding their frozen food section can be an economical way to start. “Frozen grocery is a great way to introduce customers to your future consumption offerings, like frozen pizzas and frozen entrees,” Moskalik said. “More brands with better-for-you, plant-based, organic and clean food frozen options have come into the convenience channel since COVID, making it easier to provide a variety of products to keep customers coming back.”

SEPTEMBER 2021 |

FRESH FOODSERVICE While many convenience stores have boosted their breakfast and lunch fresh foodservice menus, dinner remains an afterthought. “For fresh foodservice, convenience stores would do well to remember our competition is other quick-service restaurants,” Moskalik said. “Since many of them also focus on the morning and midday meals, convenience stores have an open window to grab the dinner consumer.” So far, few convenience stores have dipped their toes into a dinner menu. For example, one major East Coast chain launched its evening menu earlier this year with burgers as its dinner platform centerpiece. Some independent retailers are experimenting with fresh-prepared grab-and-go dinners as well.

But overall, the evening meal has untapped potential for convenience retailers. “For assistance in developing a dinner menu, reach out to your supplier and distributor partners and tell them what you want to accomplish,” she said. “Many suppliers are also trying to crossover into the convenience segment and will often have great ideas to help retailers reach the evening meal consumer.” PUSH TRIAL Once you have your afternoon snack and dinner offerings in place, it’s time to let customers know what you have. The key to growing foodservice business during the afternoon and evening daypart is to have a consistent marketing program. “You have to tell the consumer who’s getting fuel that you have dinner options inside,” said Moskalik. “Your customers have to know they can get those snack and evening meal products every day.” She recommended using a variety of channels to connect with consumers on your afternoon and evening products. “Use your app and digital marketing to tell the story you can provide dinner, either through your frozen section, your prepared meals in the graband-go or your fresh foodservice,” she said. Tied to your marketing should be targeted promotions, such as bundling frozen pizzas with two liters of soda or two-for-four hot dogs. “Multiples do better for the evening meal because people are generally buying for their family, so think about larger bundles to grow the basket ring and deliver what customers need,” Moskalik said. Highlight your deals in several areas of the store. “Make sure you have signage in place that tells the customer that you can be a place for dinner options,” she said. “It’s a matter of understanding your afternoon customer is seeking different things from your morning customer and trying to cater to that different need.” As Americans get back to in-person schooling and at-the-office work, the afternoon and evening dayparts will grow in importance. Convenience retailers who have afternoon snack offerings and evening meal plans will have an advantage, one that can turn occasional shoppers into loyal customers. “By focusing on frozen and fresh-prepared meal components, convenience retailers can easily position themselves as the afternoon snack and evening meal solutions consumers crave,” Moskalik said." Sarah Hamaker is a freelance writer and NACS Daily and NACS Magazine contributor based in Fairfax, Virginia. Visit her online at www.sarahhamakerfiction.com.

| SEPTEMBER 2021

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iStock.com/SolStock

Moskalik pointed out that adding a frozen section has never been easier. “There are allinclusive freezers that are essentially plug and sell at a low price point, making freezers less of an upfront investment. Plus, with frozen foods, there’s less spoilage, too,” she said. “Many retailers are adding either freezers for the first time or expanding the number of freezer doors.” One national convenience store chain quickly moved to add freezers to as many locations as possible during the pandemic. “We originally had freezers in very few stores, but we realized early on during COVID-19 that we needed to get freezers in our stores fast,” the company spokesperson said. “For stores with freezers, we couldn’t keep frozen pizzas in stock, and soon expanded to include frozen dinners, French fries, burgers and six to eight brands of pizza.”

An exclusive, national commissary program

After largely losing out on increased consumer snacking during the pandemic, c-stores are positioning for recovery. By Terri Allan

| SEPTEMBER 2021

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mericans’ penchant to indulge in tasty treats during the pandemic last year was countered by altered shopping patterns in convenience stores, conditions that dramatically influenced the performances of snack food categories in the channel. With the situation easing in 2021, retailers and marketers alike are keeping a watchful eye to see if last year’s trends will continue, and if so, how to respond. Increased snacking by pandemic-weary consumers was well documented in 2020. According to Mondelēz International’s State of Snacking report, released late last year, nearly 90% of adults said they were snacking the same or more than before the outbreak. That increased demand for treats largely benefited channels like supermarkets and club stores, where consumers loaded up on their favorite snacks. In c-stores, however, slowed foot traffic—as many worked from home—disrupted some of the leading snack categories. “Last year was a tough one for center-store categories,” explained Jayme Gough, NACS research manager. “Customers were interested in getting in and out of stores quickly. They weren’t interested in browsing.” Except for candy, all centerstore categories lost in-store sales share in 2020 versus 2019, Gough said. “The pandemic had a huge impact as trends for the snack categories follow our guest count and store-traffic patterns,” said Maddie Crandall, category manager, snacks and candy, at RaceTrac, with more than 550 stores. Some categories suffered more than others, she added, noting that “salty snacks—one of the largest categories—took the biggest hit as our store volume wasn’t typical.” CRUNCH TIME Salty snacks, a key in-store category for c-stores, were hit hard last year, a direct result of new work-from-home routines and slowed store traffic. According to the NACS State of the Industry Report of 2020 Data, average store sales in the salty snacks category slipped 3.2% to $123,751, and the category’s share of in-store sales dropped slightly to 4.3%. “Salty snacks purchases rely heavily on the number of trips consumers make to convenience stores,” said Bob Clark, vice president, marketing, at Herr Foods Inc., of the performance. “Pre-pandemic, the growth rate for salty snacks year on year was stronger in c-stores than traditional supermarkets.” (According to NielsenIQ data, c-stores account for 22.3% of all salty snack sales, with food stores at 42.0%.) Among the salty snacks subcategories to post declines last year were potato chips, pretzels and nuts and seeds, while other salty snacks (vegetable chips, pork rinds) and tortilla and corn chips grew in average store sales and gross profit dollars year over year. Gough said she was a bit surprised that potato chips suffered in the c-store channel in 2020. “Initially, I expected they might have benefited due to increased indulgency trends during the pandemic; however, package sizes played such a large role last year.” Indeed, increased demand for larger salty snacks pack sizes bled over to c-stores. “In the past year, we’ve seen consumers gravitate toward larger size packaging and more take-home offerings as they sought out value,” reported Stefanie Nobly, consumer and market intelligence manager at General Mills Convenience. “We saw more at-home consumption as overall c-store shifted a little from immediate consumption.” Kimberly Billings, director of category management for Pilot Co., agreed, noting that despite the category’s weak performance last year, it “saw the biggest lift in take-home packages.” Bold—and often spicy—remains the key flavor trend for salty snacks, retailers and marketers said. “Consumers still love hot and indulgent flavors,” noted Clark. “The level of heat desired seems to keep rising.” At RaceTrac, “extra hot, flaming hot and spicy continue to drive the category,” Crandall said.

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SEPTEMBER 2021 |

“ Pre-pandemic, the growth rate for salty snacks year on year was stronger in c-stores than traditional supermarkets.” HOW SWEET IT IS Candy was the snack category bright spot in 2020, as average sales per store increased 1.9% to $79,690. “The confections category is resilient and is known to play a role in emotional well-being during times of stress and uncertainty,” remarked Caroline Bader, vice president, category management, at Ferrara USA. “COVID drove growth as shoppers sought comfort from familiar brands and excitement from innovation.” Gough added that unlike other snack categories, candy may have benefited from its ubiquitous merchandising at c-store counters. Chocolate bars, nonchocolate, bagged and pegged candy, novelties and seasonals, and bulk candy all saw average store sales and gross profit growth from 2019 to 2020. However, gum and rolls/mints/drops fell—victims to work from home, social distancing and masking practices during the pandemic. “Chocolate was cited in The Wall Street Journal as the No. 1 quarantine comfort food,” said Glenn Frazier, director of category management - convenience store, at the Hershey Co. Still, he conceded that shopper behavior was different last year. “Trips were down, and basket size was up,” Frazier said. Gummy sales in c-stores continued to surge, several retailers reported. Jodi Meinen, chief financial officer at Wisconsin’s Handy Mart, pointed to dramatic sales growth for products like Ferrara’s Trolli Sour Brite gummies. “With kids out of school, they would come in and purchase them,” she remarked.

| SEPTEMBER 2021

As with salty snacks, large candy packs saw increased demand in c-stores. “As the home became the center of life for consumers, c-store shoppers gravitated toward buying larger pack sizes for stocking-up purposes,” said Lance Smith, vice president, industry affairs and customer strategy, at PIM Brands Inc., marketer of products including Sun-Maid chocolate-covered raisins and Original Gummi FunMix. “We saw consumers opt for stand-up pouches and peg bag candy,” remarked Pilot’s Billings, which coincided with “less frequent in-store visits.” Average store sales of packaged sweet snacks, meanwhile, declined 2.7% last year. Snack cakes, pastries and desserts fell in both sales and gross profit, while muffins and donuts registered sales and gross profit gains. “Early morning daypart sales during the pandemic were impacted by fewer people commuting to work,” noted Scott Ward, vice president of sales, at Hostess Brands, “but have since stabilized.” Billings added that Pilot experienced a decline in morning pastry sales with fewer consumers stopping for gas early in the day. “However, we did see growth in snack cakes, which typically were purchased in the afternoon hours,” she noted. Even packaged sweet snacks leveraged increased demand for larger pack sizes during the pandemic. According to Ward, “Hostess bagged donettes experienced a significant increase in sales, and some retailers expanded their Hostess portfolio by adding larger take-home packs.” Nick Smith, director of category management at Hostess, added that the company has “been able to gain distribution for some of our legacy brands in c-stores in the last few years, thanks to our warehouse model.” Combined in-store sales of alternative snacks increased to $56,196, according to NACS SOI data, largely driven by gains in the granola and fruit snacks subcategory. Gough noted that since many of the category’s products—which include better-for-you products like health, energy and protein bars—require trial, they suffered, as consumers “leaned on comfort snacks heavily.” But General Mills’ Nobly believes that “better-for-you products will circle back,” although it “likely will take a year or so to fully recover.” SO FAR SO GOOD By all accounts, snack food trends in c-stores so far in 2021 are vastly improved. According to CONVENIENCE.ORG

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Gough, through the first quarter of the year, sales of salty snacks, candy and alternatives were all up versus 2019, with packaged sweet snacks flat. “Consumers are starting to get back to their previous lives,” noted Nobly, “but also have embraced new values that will stick with them coming out of the pandemic.” Hershey’s Frazier reported that the company is seeing “very strong demand” through the first half of the year, and that while gum and mints are performing better, they’re still down versus 2019. Smith said PIM “expects continued momentum behind candy sales in 2021, both chocolate and nonchocolate, as tailwinds will outweigh headwinds.” Those tailwinds include increases in both incidence and frequency of snacking and the return of c-store traffic to pre-pandemic levels. At RaceTrac, Crandall

“ Consumers still love hot and indulgent flavors.” noted at mid-year that “things have changed for the positive. Since April, our guest numbers are up, and salty snacks are rebounding.” Salty snack sales are also on the rise at Pilot this year, Billings said, while the larger pack sizes and bigger baskets that sprung from the pandemic continue. While snack categories are pivotal for c-stores, they present their share of challenges, both ongoing and new. “With new products introduced virtually every day, we don’t have the room to stock them all, so it’s always a matter of finding the right mix,” remarked Handy Mart’s Meinen. And PIM’s Smith conceded, “c-store shoppers are pushing for healthier and betterfor-you options, which will present a challenge to the candy category.” But most immediately, retailers are concerned about supply-chain challenges, troubles born of the pandemic. “The biggest challenge is distribution and trying to get the products,” said Lane

| SEPTEMBER 2021

Attrash, owner of Skinny’s c-store in St. Helens, Oregon. “The supply chain has been inconsistent, and it’s frustrating. The customer thinks it’s the retailer’s fault.” FEED THE IMPULSE One way to confront the challenges, retailers and marketers agreed, is through effective merchandising. “Confections is a very impulsive category, so secondary placement is key,” remarked Ferrara’s Bader. “Many retailers are investing in front-end placement near checkout, dedicated end stands and floor displays,” and are successfully converting shoppers into buyers, she noted. That’s the case at Handy Mart, where, according to Meinen, “whatever we put on the counter sells.” At RaceTrac and Skinny’s, shipper displays go a long way in encouraging impulse sales of snacks. “We keep them updated and fresh and move them around the store,” Attrash said of shippers to promote both candy and salty snacks. The Oregon c-store also relies on multiple-unit promotions, a tactic that Hostess supports. “Offering an everyday ‘two for $X’ can drive a lot of incremental purchases,” Ward noted. Marketers and retailers are optimistic that the conditions that damped sales of snack foods last year have waned. “We predict that c-store traffic will get closer to pre-pandemic levels, which will bring further growth to the channel and the candy and snacking categories,” said Smith. But Bader noted that continued workfrom-home practices will restrict c-store visits, so retailers must drive basket size via displays, promotions and the correct product and packaging assortment. These days, the Ferrara executive noted, “right-size pack type assortments ensure representation across both small and larger pack types to cater to a wider variety of trip missions.” Indeed, she added, “COVID has redefined convenience and value for c-store shoppers.”

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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READY READY READY ARE YOU

GEN Z

Attracting the next-generation workforce means understanding what it seeks from employers.

| SEPTEMBER 2021

FOR A

WORK

BY RENEE PAS

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iStock.com/Khosrork

FORCE?

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ou would be hard-pressed to find a convenience store not hiring today. Even the biggest c-store chains are struggling to fill every open spot. Wage increases, extra pay during the summer travel season and hiring bonuses have been widely reported as the industry remains in the struggle-to-hire-and-retain camp, along with restaurants and other sectors. Even as U.S. unemployment claims jump, hiring simply has not gotten easier. As the pandemic showed signs of subsiding, many assumed it would become an employer’s market given the number of displaced workers around the country. “That has not been the case, however,” said Eleesha Martin, recruiting manager at G&A Partners, a human resources firm based in Houston. “Candidates found new things to do, and even if their unemployment benefits might be coming to an end, it’s still not an employer’s market.” Understanding how to attract the younger generation of employees, specifically Generation Z, can yield new perspectives in hiring and retention. In 2021, Gen Z lands right in the sweet spot for potential c-store new hires as they are now teenagers and in their early 20s. The Pew Research center defines Generation Z as anyone born after 1996. This group comes with their own views on life and work; understanding how they approach both can benefit any industry looking to draw employees from this demographic. Two notable workplace “wants” from Gen Z, according to a Yello Recruiting Study, are the desire for greater flexibility with the key to that being work-life balance and a desire to move up the career path. Knowing how to connect with Gen Z can at minimum offer some guidance in today’s difficult labor landscape.

SEPTEMBER 2021 |

IN PRACTICE: HOW TXB INTERVIEWS TODAY

Now, the first person a potential employee comes into contact with at the store has the tools to start things moving. They start by welcoming the person to the store, Graham said, and tell the applicant that if they become part of the store team, they get a free drink on every shift. “Then they get them a free drink and walk them around the store and introduce them to everyone—it’s a quick store tour,” he said. That employee has a baseline of roughly 10 questions to ask, who then (assuming the potential employee seems like a fit at that time) hands the candidate off to a cashier for what TXB dubs a Realistic Job Preview, or RJP. The RJP essentially allows a potential employee to shadow the cashier and watch the interaction that happens with customers. “It gives them an idea of what they would be doing,” Graham explained. Then, if things still seem like a fit, the person speaks with the store manager. The new approach provides a better hiring gauge for whether or not someone is a fit, Graham said, while at the same time giving everyone on-site a way to be connected and engaged with the process. Another advantage: The new person would have already met several other co-workers before even starting work. “It helps eliminate some of the ‘new person’ feelings of the first day,” he said.

| SEPTEMBER 2021

There is a lot of frustration going on right now as employers navigate the new hiring and retention landscape, Martin said. “It’s difficult to keep candidates engaged right now throughout the hiring process.” A tough hiring landscape is not something new for c-stores, said Nathan Graham, human resources director at 47-store chain TXB, or Texas Born, formerly known as Kwik Chek. “It’s never been easy to hire and retain employees at the store level,” he noted. “It’s just a little harder to bring people into this industry. There’s just a bit of a stigma about convenience stores. Yet once [new hires] experience it, it’s generally different than what they thought.” Graham has been approaching hiring with a fresh set of eyes as he worked to staff up for the opening of the first ground-up TXB in August in Georgetown, Texas. The new store comes with an elevated approach to its c-store offering and also ups the ante from employees’ perspectives, he added. “The younger generation definitely views it as the cool new place to work,” he said. It’s definitely the bright new shiny thing, he added, with a clean, modern design that creates an elevated work environment compared to how potential employees might view a legacy-style gas station. The goal when staffing discussions were first happening for the new store was to aim for “40% over,” Graham said, meaning to hire 40% more staff than what they would actually need to run the store. As of late July, there were 26 people on staff for CONVENIENCE.ORG

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The interview process has changed drastically at TXB, or Texas Born, formerly known as Kwik Chek. The standard approach the 47-store chain used to follow was a sit-down interview with the store manager, who then essentially provided a yes or no stamp of approval. “We threw that process out the window,” said Nathan Graham, human resources director for TXB.

the store, with Graham still looking for a few more. “The goal was to staff heavy,” he said, in anticipation of turnover. Standard hiring elements applied, including the chain’s referral bonus program, which pays an employee $250 the first day someone they referred starts the job, and an additional $250 if that person remains with the company 90 days later. One Gen Z employee hired for the new store subsequently referred five of her friends.

Whether they went to college or not, they want to be trained to be leaders.

Hiring for that location did yield a few learnings about employee expectations today. One unexpected challenge was the lack of interest among new hires—many of whom are Gen Zers—in traveling to train for their new jobs. It’s too early to tell if that reluctance is unique to Gen Z or caused by some other factor, but it is something TXB will continue to monitor and adjust as needed. “There are a handful of existing stores within an hour of the Georgetown site,” Graham said, “but the new hires absolutely didn’t want to drive that far, even though we pay them for the travel.” The TXB team got creative and resolved the issue by renting a van to bus people back and forth for training sessions. One of the side benefits of escorting employees was the discussion en route. “There were some

| SEPTEMBER 2021

great conversations along the way,” Graham said. They’d talk about what the expectations were for the day, for example, or review learnings from the day on the ride home. “There was also a lot of learning about the individuals,” he added, for example, sports that some of the younger hires play. The time together allowed for team bonding. Once hired, expect that Gen Z employees will want to be able to continue to grow, Martin pointed out. “Whether they went to college or not, they want to be trained to be leaders.” Another “want” from Gen Z employees today: flexibility. “Don’t blow that off,” she advised. “Keep it in consideration.” The new normal is still being shaped right now, said Martin. “Employers are still figuring out flexibility. They are negotiating it out with employees.” She noted even internally at G&A Partners, the company expected everyone to come back to the office in September but decided to postpone the return until February 2022, following some employee pushback. “Figure out what’s important to each person,” she advised. “What can you make concessions on?” Babir Sultan, owner of FavTrip, a 12-store chain based in Independence, Missouri, strives to work with employees wherever he can. For example, he switched to a two-month-in-advance employee schedule based on feedback. “People want to have a personal life and schedule stuff out,” he said. It was a relatively simple change to rethink shift schedules, and it made a difference to employees. He noted that while traits such as having a more flexible work schedule might be attributed to Gen Z most frequently in research reports, he finds the desire for more control over their schedule applies to all his employees. The idea of schedule flexibility was supported by research at the Workforce Institute at UKG, which provides research and education on workplace issues. When talking about the research in an online post, Dan Schawbel, a board member at Workforce Institute who worked on a global study of Gen Z, found Gen Z will work “harder and longer if they are in a culture that supports a flexible schedule.” CONVENIENCE.ORG

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Sultan noted, “It’s not always about pay. We ask [employees] what they are looking for. We want them to feel appreciated and want to try and meet their needs.” Many FavTrip employees have remained store-level employees for five years or more, he said. “We want to be invested for the long term with them.” “Communicate, communicate, communicate” is a mantra Sultan adheres to with employees. That’s a refrain echoed by Todd Jenney, a consultant with Phoenix-based Business Accelerator Team (BATeam) and former CEO for Martin & Bayley, dba Huck’s Convenience Stores. He recalls the value of listening to store-level employees during his time with Huck’s and believes the significance of those conversations has only accelerated today. “It was important for employees to know that senior leaders wanted to hear what they were feeling,” Jenney said. “We always felt like we were getting to the grassroots when we did what we called the ‘great store tours’ and listened to how we could make the company better for [store associates].” During those visits, each staff member was allotted five minutes to talk and have their voice heard. While the first few times around the conversations were a bit intense, he admitted, over time it became clear employees wanted their voice to be heard. SURVEY SAYS … Young millennials and Gen Z (born between 1989 and 2001) want to work for an organization that cares about employees’ well-being, according to a 2018 Gallup survey. Two other priorities for

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those groups: ethical leadership and a diverse, inclusive organization. “These themes have only been amplified over the past year,” said Ed O’Boyle, global practice leader for Gallup’s workplace and marketplace consulting, in a March 2021 Gallup article following up on the 2018 survey results. In fact, the first two of those themes—employee well-being and ethical leadership—also extended to reach what Gallup classifies as older millennials (born between 1980 and 1988), as well as Gen X (born between 1965 and 1979) and baby boomers (born between 1946 and 1964). The varying element among age groups was in the No. 3 spot: Young millennials and Gen Z noted diversity and inclusion; older millennials cited open and transparent leadership; and Gen X and baby boomers both said financial stability. In essence, the big priorities for all employees today—employee well-being and ethical leadership—translate to every age sector. Caring about well-being can connect to things such as career, social, financial, community and physical, according to Gallup. The thinking is that each influences the other. Here’s how an idea in practice demonstrates this: Amarillo, Texas-based Pak-A-Sak convenience stores participated in a #meetourmanagers social media campaign that spotlighted one store manager each week on Facebook, then moved on to district managers. Each person’s story ultimately touched on multiple connections. CONVENIENCE.ORG

iStock.com/blackCAT

Employers are still figuring out flexibility. They are negotiating it out with employees.

Here’s what employees expect from an organization today: 1. Care about employee well-being 2. E thical leadership 3. D iversity and inclusivity The first two expectations extend to employees of any age group. The priority shifted in the third slot, where older millennials (born 1980–88) cited open and transparent leadership instead of diversity and inclusivity, and Gen X and baby boomers cited financial stability. Source: Gallup

For example, the post of store manager Ken Chrostowski talked about how he strives to help his staff grow within the parameters of their jobs. He has touched not only the employees’ lives but also their families. He has received letters from family members of former clerks thanking him for the time he spent teaching and motiving those former staffers. That story serves double duty to both recognize Chrostowski and demonstrate to potential employees that Pak-A-Sak offers a unique work environment and will take the time to guide personal career growth. There are ample studies regarding Gen Z and what they want from a workplace, most of which have common themes such as noting they grew up with technology in a way no other generation has. All the studies offer good insights on this new generation entering the workforce, but one comment that Workforce Institute at UKG referenced earlier now seems more relevant: mental health. Simone Biles and her plight at the Olympics drew fresh attention to emotional well-being. It is something that Gen Z connects with intensely, with the Workforce Institute blog noting that “anxiety is the biggest thing holding [Gen Z] back from achieving success at work and life.” The media reports surrounding Biles and how she handled her own bout of anxiety may open the flood gates for future mental health conversations. While mental health remains a stigma in the workplace, noted Schawbel, more companies are bringing therapists in-house to help employees. (See “Mental Health in the Workplace” on page 96.) “Smart companies will help Gen Z solve their basic human needs in order for them to realize their full potential at work.”

enee Pas has spent more than R 20 years writing about various retail channels. Her formative c-store years were spent in communications at White Hen Pantry, a family-owned c-store chain acquired by 7-Eleven in 2006. She can be reached at reneepas4@gmail.com.

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EVOLVING THE FUELING EXPERIENCE Optimize assets on the forecourt and win customer trust through a frictionless forecourt experience.

Scott Negley Sr. Director, Product Management www.doverfuelingsolutions.com

| SEPTEMBER 2021

DOVER FUELING SOLUTIONS (DFS) HAS A LONG, STRONG HISTORY IN THE FUELS SPACE. HOW IS THAT HISTORY STILL EVIDENT TODAY? DFS and Wayne Fueling Systems, a legacy brand within DFS, have been leaders in the fueling industry for nearly 130 years. The historical knowledge that comes with serving a customer base for that long creates an inherent respect for how our customers do business. That respect ignites our passion to help them drive business more efficiently and more effectively. We apply these years of learning to every product we create. This starts underground with wetstock management programs, and extends to the forecourt and into the store. With the past in mind, we now take great pride in focusing on the future. Historically, the fuels industry prioritized one thing: reliability. For consumers, that translates to never letting stores run out of fuel, keeping all fueling points operational and ensuring the most accurate measurement of fuel. But for retailers, the time is now to focus on innovation. What can take our customers to the next level? Technology. We can leverage technology to not only reduce downtime and increase reliability, but we can leverage technology to bring

experiences to c-stores and gas stations that were previously unheard of. Also, why stop at reducing downtime when we can engage with customers, drive loyalty, learn from data and save retailers time through cloud-based management techniques? Fuel is the driving factor for most customer visits, but imagine the margin opportunities that are possible with an integrated customer experience, blending the forecourt with in-store opportunities. AND TECHNOLOGY CAN HELP LEVEL THE COMPETITIVE ADVANTAGE WHEN IT COMES TO MARKETING, IS THAT RIGHT? Yes, marketing is an incredible area of opportunity for fuel retailers, becau se not all c-stores are created equal. Not all c-stores receive the same marketing support from a corporate level. Not all c-stores can maintain outdoor signage on their own and often rely on their CPG relationships for printed materials. DFS is leveling the playing field in several ways. We offer more tools for the retailer, whether they’re a corporate big box or a smaller operator, to drive top-end revenue growth on the forecourt or in the stores. CONVENIENCE.ORG

This article is brought to you by Dover Fueling Solutions, a NACS Hunter Club and Global Supplier Council member.

We can leverage technology to not only reduce downtime and increase reliability, but we can leverage technology to bring experiences to c-stores and gas stations that were previously unheard of.

The flexible, stylish DFS Anthem UXTM user experience platform puts retailers in the driver’s seat when it comes to forecourt marketing. Bringing interactive touchscreens to the forecourt targets customers while they are a captive audience during fueling. It highlights unique promotions and drives high-margin sales. The Anthem UX platform is like putting a sales rep and a marketing professional at each fueling point to drive sales. Promoting loyalty programs, educating consumers about premium fuels and advertising in-store specials have never been easier. Technology enables a two-way exchange. Promotions can be tailored to customers by time of day, fueling stage, curated daily specials or weekly specials. In return, customers will respond with increased buying patterns. And the key to sustainable success is repeat business. WHEN IT COMES DOWN TO IT, FUELING UP NEEDS TO BE FAST, SIMPLE AND FUN FOR CONSUMERS TO BE SATISFIED. HOW DOES DFS HELP WITH THAT? DFS has built a legacy of providing reliable, durable equipment. Fast fueling comes standard with our iMeter product line and can be upgraded to flawless performance with the Xflo Meter option. And the simplicity of the transaction has never been easier. With an innovation overhaul to revamp the user experience, DFS imitates the known consumer experience with an intuitive, simple transaction. Standard transaction flow, similar button design and guiding prompts lead customers through their checkout. CONVENIENCE.ORG

The groundbreaking part is how fun fueling has become. We have taken the stress out of a distressed purchase and blended a world of touchscreen engagement with the forecourt. Users seeking weather updates, traffic outlooks or video media have their choice. Prefer to turn the volume down? The customer is in control. Is the 27-inch touchscreen a bit too bright during nighttime re-fueling? Switch to dark mode and edit the contrast for ease of use. It also has multi-lingual capability initially available in English, French and Spanish. INVESTING IN THE FORECOURT IS AN EXPENSIVE PROPOSITION FOR MOST RETAILERS. HOW CAN YOU HELP RETAILERS FUTURE-PROOF THEIR INVESTMENT? Fuel retailing is a competitive space. To stay one step ahead of the competition, business owners must make data-driven decisions that show a return on investment. Technology has proven time and time again to be an upfront expense with years of reward thanks to comprehensive visibility, enhanced data exchange and controlled processes being brought to one screen. The business management tools that come from investing in technology will save time and improve resource utilization. Specific to Anthem UX and the DFS DXTM line of solutions that span the entire business, fuel retailers have an opportunity to increase high-margin sales, improve order accuracy, eliminate out-ofstocks, prevent fuel theft and more. The software will not go out of date, because remote upgrades are capable with every software enhancement and can take place immediately within the platform.

SEPTEMBER 2021 |

By Pat Pape

in the Workplace Convenience retailers are prioritizing their employees’ emotional well-being.

t was a business operator’s worst nightmare. In March 2020, a 31-year-old man armed with a rifle and a handgun drove to a Springfield, Missouri, Kum & Go and opened fire on people inside and outside the store. Police described the man as a well-armed “roving active shooter,” who had been terrorizing the city’s east side. “He’d been firing the weapon from his vehicle, then got off the interstate and stumbled onto our parking lot,” said Tanner Krause, CEO, Kum & Go. “Unfortunately, we were the scene of the crime.”

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Before it was over, one police officer, one Kum & Go employee and two bystanders were dead. Two others, another officer and a store employee, were injured. The shooter took his own life before he could be apprehended. Krause immediately traveled to Springfield with other company leaders and called a meeting with the store team. “We talked about what we knew and what we didn’t know, about victims and events. And we listened to our associates about what was on their minds and how they were feeling,” Krause said.

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“We made sure there was double coverage at that store for an extended period of time to make people feel more comfortable,” he said. “We have an Employee Assistance Program (EAP), which allows our associates to talk to a professional counselor confidentially, and we encouraged people to use it. The associates who worked there were guaranteed their income while the store was closed for the remodel.”

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After the crime, Krause experienced a bout of depression, and COVID-19 shutdowns followed several days later. In late 2019, he had begun meeting with a mental health counselor, “and it’s fortunate that I did,” Krause said. “It was helpful to have a professional coach me through those moments.” Today, Krause still sees the counselor once a week and credits her with helping him manage life’s challenges. “She’s part of my success,” he said, adding he has made mental health a top priority at Kum & Go. Stress is a part of everyday life, and the pandemic increased anxiety and tension for everyone. But even before the pandemic began, a large percentage of the workforce needed mental health support. A study, conducted between 2019 and 2020 and published in the Journal of Occupational and Environmental Medicine, reported that 60% of people in need of mental health care never seek help, and those that do may wait for as long as a decade to reach out. The researchers also found that more than 70% of the study’s participants were at risk for common, highly treatable mental health conditions, such as depression, anxiety and chronic stress. COVID-19-related issues enhanced that scenario. A 2020 survey of more than 5,000 people conducted by Mental Health America, a national nonprofit, found that most employees were experiencing signs of burnout, concerned about their current financial situation and weren’t receiving the support they needed to manage stress. Those issues are crippling and costly. Mental health disorders worldwide are projected to cost $16 trillion in the 20-year period between 2010 and 2030, according to a Reuters report. CONVENIENCE.ORG

unsplash.com/leilani-angel. ehsan-ahmadi, casey-horner

“Signs of stress and burnout include difficulty listening, focusing or empathizing, as well as fear, anger and increased cynicism.”

BURNED OUT In March, Joni Dolce, assistant professor in the Department of Psychiatric Rehabilitation and Counseling Professions at Rutgers School of Health Professions, spoke at the virtual NACS HR Forum. After opening remarks, she polled the audience to determine how well they were dealing with pandemic-related stress. Of the respondents, 55% said they were coping well, 27% admitted feeling overwhelmed, 16% said they were “hanging in there” and 2% said they were unsure because “they’re in the thick of it.” “As we progress through the pandemic, it’s heartening and hopeful to see that some people are beginning to feel like they’re coping well,” she said. “But there are still people who are feeling overwhelmed. Several individuals in a single household may be working at home. There may be a need for childcare or schooling, but those resources may not be available. “If you or your supervisors feel a sense of helplessness, this is a sign,” Dolce said. “Maybe in the past—a year-and-a-half ago—you could think of innovative ways to address problems, to be creative in how you managed certain HR procedures or practices. And now you realize you can’t.” Other signs of stress and burnout include difficulty listening, focusing or empathizing, as well as fear, anger and increased cynicism. These symptoms can result in increased absenteeism, lower employee morale, drug or alcohol use and lack of cooperation with others. WHAT CAN YOU DO? The work environment is an ideal setting to address stress and mental health problems, and HR managers are in a good position to do that. “The employment setting can provide policies and practices, resources and established communication lines. Networks are already in place, and people already have social connections that HR professionals can use and improve upon,” Dolce said. Tools to support employees in need include flexible work schedules, plus more support and encouragement through texts, emails and personal calls. “Communicate information about EAP and additional services,” said Dolce. “Carve out time every morning, maybe 30 minutes, to communicate.” She suggests emailing employees a short video of company leaders discussing mental health and expressing gratitude for what employees have done during the pandemic. Share helpful tools and ask employees to submit resources CONVENIENCE.ORG

Time and Money According to Tanner Krause, CEO, Kum & Go, “the best thing that convenience-store leaders can do for employees’ mental health is to provide stability and raise wages.” To that end, Kum & Go has implemented Store Structure, a program designed to simplify work schedules and provide more stability for employees. “We converted our workforce to 75% full time, and our associates work the same five-shift pattern every single week of the year, so they’ll have stability in their lives,” he said. “They know what days they’ll be off and can plan their life around their schedules.” On top of the company’s annual merit increases, the chain has added a bonus for all full-time store associates. “We’ll continue to invest in wages over the next three to five years,” Krause said. “Companies can have team-building days and a positive culture. That’s important. But the reality for most workers in our industry is that their economic situation is unstable. There are many risks in their financial situation. “Making our stores a little more fun to work at is great, but it’s unmatched in terms of the anxiety that some people feel about not knowing if they can make ends meet,” he added. “I know this is the most expensive solution, but if someone can go from living in debt to living debt free, that relief is better for their mental health than any sort of hotline or recognition day that a company can create.”

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“Mental health issues are not something people should be ashamed of addressing.” that have been valuable to them. Schedule insurance company representatives to make presentations on how employees can access health care. “Have a Motivational Monday, and send out a motivational quote once a week,” Dolce said. “Reach out individually to employees dealing with family situations. Increase your interaction with all staff members, and provide The Centers for Disease additional accommodations Control offers additional to those who need them.” information on workplace She said to use active mental health at listening skills when talking www.cdc.gov. to employees. “Let the person know you’re listening. Don’t immediately give advice or try to solve the problem. It’s easy to tell people what to do, but really listening builds the relationship with the individual,” Dolce said. “Today, having workplaces that address and support mental health is critical.”

FOR MORE INFO

WORKPLACE SUPPORT The Pilot Company of Knoxville, Tennessee, has built a comprehensive mental-healthfriendly program for its 28,000 employees with a focus on prevention. An on-demand EAP is available to all employees and their family members. It provides confidential, no-cost assistance with well-being and mental health issues ranging from stress and fitness to finances, relationships and careers. Currently, each employee can receive three oneon-one counseling sessions, but that benefit will expand to five sessions in 2022. Employees can contact a 24/7 online therapy platform with in-person, phone, video or text access to professional counselors, plus access to 24/7 crisis and suicide-prevention support. Pilot also offers a mental health/self-help app and website that provide on-demand assistance in the form of clinical techniques and tools to address mental health issues. Each week virtual well-being discussions and expert-led panels are made available, and mental health and well-being content is posted in an internal app. Field leaders receive training

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to help them recognize situations before they become problems. “The well-being of our team members has always been a priority for Pilot Company, and the pandemic highlighted the need for further mental health resources that are accessible when people need them most,” said Diana Morgan, director of benefits and well-being at Pilot. “We continue to look at what else we can offer in the future to further support mental health, while ensuring that our leadership is trained to watch for warning signs and help their teams cope with mental health issues,” Morgan said. “We are prioritizing education around mental health awareness, coping skills and resources that are available to our team members. The key is to keep listening and adapting to mental health needs.” WELCOME UNCOMFORTABLE ISSUES At Kum & Go, talking about awkward issues, such as mental health, is encouraged. “Create a space where people can talk. That seems simple or rudimentary, but it’s so important,” said Krause. “Not everybody is comfortable being honest or vulnerable at work. They fear they’ll be seen as weak or incompetent, and that fear stems from decades of powerful people not showing empathy when these things arise in the workplace.” He advises management to “lead with vulnerability. Don’t project what you think the company needs to hear or wants to see. Project your authentic self. In doing so, you’ll be able to connect more easily with your workforce, and you’ll create space in your business for other people to do the same.” Adds Dolce, “Help people with whatever is going on in their lives. Self-care is not selfish. Mental health issues are not something people should be ashamed of addressing. What is one thing you can do in the next month to help your organization?”

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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Honoring

HOMETOW HEROES The third annual NACS 24/7 Day celebrated first responders and raised funds for disaster relief. BY SARAH HAMAKER Convenience stores are often the front-line supporters of first responders during times of natural disasters, providing fuel, food, water and a safe place to gather. These retailers see firsthand how hard police, fire and medical personnel and American Red Cross volunteers work for their communities. And over the past year-plus, many stores supported these same front-line heroes as they battled the pandemic. On July 24, more than 30,000 retailer locations participated in the third annual 24/7 Day, hosted by the NACS Foundation, to thank those workers. “It’s our goal in every community to be the best neighbor we can be,” said Nicholas Ruffner, public relations manager for Sheetz, a 24/7 Day Community Leader Sponsor.

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In 2021, retailer participation spanned 34 retail companies with locations across the United States.

“We’ve developed a strong relationship with those who keep us safe, and we wanted to honor their service on July 24,” Ruffner said. “These front-line workers and first responders are our neighbors, friends and customers,” added Corey Cuvelier, convenience retailing manager for the U.S. at Shell, a 24/7 Day Community Advocate Sponsor. “Our participation in 24/7 Day recognizes their sacrifices and is one way we can express our sincere appreciation for their work in keeping our communities safe and secure.” “Through wildfires, floods, hurricanes, snowstorms, tornadoes and a pandemic, convenience stores—with their 24/7 operations—are often the only place open to serve first responders and medical personnel working around the clock,” said Stephanie Sikorski, executive director of the NACS Foundation. “Our members have embraced 24/7 Day as one way they give back. And while it’s a single day, it underscores our commitment to uniting the efforts of convenience retailers and suppliers year-round to create positive change and real disaster relief for the communities we serve. Proof that together, we can do more.” During its third year, 24/7 Day grew participation 89% from 2020—and 1,033% since its inaugural event in 2019. This year, retailer participation spanned 34 retail companies with locations across

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the United States. In addition to giving away food and beverages, many retailers also gathered donations for the American Red Cross. Here are a few of their stories. SHELL: ALIGNING INTERESTS For Shell, 24/7 Day is an extension of its philanthropy efforts all year long. “This strengthens not only our relationship with NACS but also those we’ve forged with first responders, medical personnel and the American Red Cross in our communities,” Cuvelier said. “To us, this was a natural fit to support this campaign to give back to our communities.” Across its 13,000 U.S. locations, Shell stations offered free sandwiches, water, fountain drinks and coffee. The company also partnered with Feeding America to provide mental health resources for those in need. “We’ve received very positive feedback from our communities about 24/7 Day,” Cuvelier said. “For us, the spirit of 24/7 Day carries through our entire year.” SHEETZ: BEST NEIGHBOR Sheetz sees its involvement with 24/7 Day as a way to embody a good neighbor in every community with a store. “Besides wanting to honor the service of those who work to keep us safe, we also liked the component of supporting the Red Cross,” Ruffner said. Sheetz regularly supports the Red Cross during community disasters, “and it’s important to us to show our support any way we can,” he said. As a yearly participant since its inception, Sheetz has seen 24/7 Day evolve. “We’ve taken the learnings from this one day and applied it to different circumstances throughout the year,” Ruffner said. For example, during the early days of the COVID-19 pandemic, the chain instituted free coffee drinks for first responders and those on the front lines in hospitals. “Free coffee and free fountain drinks are the beginning of our community effort, as our teams are active in their communities supporting nonprofits through donations and Sheetz’s own charities, like Sheetz for the Kidz,” Ruffner said. RUTTER’S: HIGHLIGHTING HEROES For the second consecutive year, Rutter’s has run Feeding the Frontline as part of its NACS Foundation 24/7 Day participation. “The event highlights front-line workers, who are very important to us and our communities, and being able to recognize all of them truly hits home with our company’s core values,” said Chris Hartman, director of fuels, forecourt and advertising for Rutter’s. CONVENIENCE.ORG

This year, the company had more than 2,200 first responders, medical personnel and truck drivers visit a Rutter’s store on July 24. “Our stores gave away almost 4,000 free meals of a grab-and-go sandwich or wrap, chips, fountain drink and candy bar,” Hartman said. “Supporting our communities is not just a one-day event—it’s a 365-day opportunity to help out in a variety of ways.” WAWA: 24/7 DNA For Wawa, 24/7 Day is a natural fit with its roundthe-clock operations. “It gives us great pride to unite with other convenience retailers to celebrate those everyday heroes who are working 24/7 to serve their communities,” said Brian Schaller, chief real-estate and fuel officer for Wawa. “It’s become an annual tradition for Wawa and The Wawa Foundation to celebrate its annual partnership with the American Red Cross.” The chain uses 24/7 Day to announce its in-store fundraising campaign results for the American Red Cross and thank its customers for their support, as well as distribute more than 30,000 breakfast and coffee coupons to American Red Cross volunteers. “It’s in our company’s DNA to acknowledge everyday heroes, including first responders, health-care workers and volunteers all year round, so we will continue to champion 24/7 Day in everything we do,” Schaller said. TXB: UPLIFTING COMMUNITIES TXB (Texas Born) honored hometown heroes on 24/7 Day by offering free private-label products, including TXB jerky and one-liter bottles of electrolyte water, to doctors, nurses, EMTs, police officers, sheriffs, highway patrol, firefighters, border patrol, 911 dispatchers and American Red Cross volunteers. TXB has participated in 24/7 Day the past two years. “Especially over this past year, first responders, medical personnel and volunteers have gone above and beyond to keep our communities safe and healthy, and participating in 24/7 Day was the least we could do to say thank you,” said Anna Felz, marketing brand manager at TXB. “Our communities know they can rely on TXB to provide essential items, as we’re often the only store with grocery and CONVENIENCE.ORG

NACS 24/7 DAY PARTICIPANTS A sincere thank you to all participants in the 2021 NACS Foundation 24/7 Day, as well as GSTV as the official media sponsor and NENA— The 9-1-1 Association: • Sheetz (Community Leader Sponsor)

• ExtraMile

• Shell (Community Advocate Sponsor)

• Huck’s

• bp and Amoco • Casey’s • Certified Oil • CFCA • Coen Markets • Cumberland Farms • The Convenience Group LLC

• Fastrac

• Sprint Food Stores • Square One Markets

• High’s

• St. Romain Oil Company

• Irving Oil • Kwik Shop • Loaf N’ Jug

• The Hub Convenience Stores

• Loop Neighborhood • The Markets of Tiger Fuel Markets Company • Minit Mart • Tom Thumb • Pilot Company • Turkey Hill • Quik Stop • TXB • Rapid Refill/ • Wawa Garrett’s Family Market • Yesway/ • Rutter’s Allsup’s

For a complete list of how each partner embraced 24/7 Day, visit www.247Day.org.

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grab-and-go items in their area, and 24/7 Day is one way we celebrate our local communities.” TXB views 24/7 Day as an important component in its charity initiatives. “Community giving is a priority of ours, and a focus of our CEO Kevin Smartt, current NACS chairman,” Felz said. “We encourage all retailers to evaluate what more they can do to support and uplift their local communities.” GSTV: SPREADING THE WORD The participating retailers couldn’t easily say thank you to first responders without assistance in getting the word out about 24/7 Day. GSTV, the official media partner of the NACS Foundation and 24/7 Day, shared a video about 24/7 Day across its network of 25,000+ locations, offering participating retailers a customized version showcasing their specific offers. “As a media partner to fuel and convenience retailers situated in the hearts of communities, it’s important for GSTV to recognize and thank our local heroes—the essential workers and first responders who are vital to our thriving neighborhoods,” said Dan Trotzer, executive vice president of industry for GSTV. “It’s also important that we use GSTV’s platform to communicate all the positive contributions that the convenience and fuel industry delivers to the communities they serve, and initiatives like 24/7 Day provide us that opportunity.”

carries throughout the year. Convenience stores are closely tied to their communities, providing fuel, water, food and other necessities to emergency workers and customers craving a return to normalcy after disasters. Having an initiative like 24/7 Day gives retailers another way to honor their customers and communities. “When we started 24/7 Day in 2019, we hoped it would spark participation by our retail and supplier members,” Sikorski said. “We’ve been thrilled with how much it’s grown in just three years and can’t wait to see what 24/7 Day in 2022 will bring.”

Sarah Hamaker is a freelance writer and NACS Daily and NACS Magazine contributor based in Fairfax, Virginia. Visit her online at www.sarahhamakerfiction.com.

ALL YEAR LONG As these retailers stated, the essence of 24/7 Day is one the convenience and fuel retailing industry

HOW TO GET INVOLVED NEXT YEAR Now more than ever, we must come together to support those who work around the clock to take care of our communities. Learn how you can get involved and partner with the NACS Foundation’s 24/7 Day by visiting www.conveniencecares.org/get-involved.

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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 October 2020. The products featured here also can be seen at www.convenience.org/coolnewproducts.

COMPANY

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Get ready to REFRESH + RECOVER + REVIVE. Introducing the newest Rehab Monster flavor, Strawberry Lemonade, available in a 15.5oz size, that joins the refreshed Rehab Monster lineup including Tea + Lemonade, Peach Tea, Raspberry Tea, and Orangeade. The addition of Strawberry Lemonade kicks off the new look of the entire Rehab Monster family that gets new can designs and a refreshed formula stacked with Electrolytes, Vitamins, & Botanicals that help provide Advanced Hydration, Reduced Fatigue, and Increased Concentration. Strawberry Lemonade is nationally available beginning in March with updated Rehab Monster cans available in April. For more information, call (800) 426-7367 and visit www.monsterenergy.com

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A fresh spin on proven quality, this product line is sure to impress on every level – from its sleek, contemporary design to its ease of operation and unparalleled reliability. By combining an elegant Italian inspired aesthetic with American ingenuity, Vision Series sets a bold new precedent in food merchandising that elevates product appeal and maximizes profits. With Heated, Dry & Refrigerated offerings, you’ll find everything you need to gain a competitive edge. Visit us at https://federalind.com or call at 800-356-4206.

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CONVENIENCE.ORG

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109

NEW TO THE INDUSTRY

Haliburton International Foods Breakfast Scrambles

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Breakfast has never been so easy! Single-serve grab and go breakfast cups are convenient, easy, fast and they are delicious. Easy to use, just heat & eat! Classic American Breakfast made with scrambled whole egg or egg white, bacon, ham, sausage or chorizo and fresh roasted vegetables all seasoned to perfection. Choose from The Classic American Scramble, The Ranchero Breakfast Scramble, The Meat Lover’s Ultimate Scramble or The Egg White Veggie Scramble or have our team of talented chefs create your unique Signature Breakfast Scramble For more information about creating your Breakfast Scrambles and our capabilities, please contact us at hifsales@haliburton.net.

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| SEPTEMBER 2021

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Federal Industries................................................................... 109 MTL Cool.................................................................................... 109 NEW FLAVORS

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Information on Demand Inc.................................................. 110

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CONVENIENCE.ORG

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111

GAS STATION GOURMET

One Stop Cajun Shop Le Marché has it all—from specialty meats to hardware—in Vermilion Parish, Louisiana. BY AL HEBERT

La Marché’s building has been a store for nearly 100 years, and the owners want to keep the old-time atmosphere—you can buy something to cook for dinner or get what you need to build a fence.

ew, modern c-stores are popping up around the country. With lots of glass, LED lights and spacious interiors, they are sleek and roomy. Then there are stores like Le Marché in Maurice, Louisiana, that are a throwback—in a good way—to the nostalgic feel that makes visiting a unique experience. “Le Marché means The Market. When we took it over we wanted to keep the old feel. We wanted customers to step back in time like an old school market. You can buy something to cook for supper or get what you need to build a fence. This was a convenience store before people knew what a convenience store was,” said co-owner Trevor Courville. Courville and his partner, Scott Bourque, both worked in Louisiana’s oil industry. Things slowed down in 2016, and when the store came up for sale, they bought it. They renamed it and began doing business on January 1, 2017. “We’re excited to be a part of the community. At a time with COVID, supporting local business in a small community is huge. It’s about people taking care of each other,” Courville said. It’s one of those places that just makes you feel good when you step through the door. Generations of customers have smelled fresh bread baking as

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| SEPTEMBER 2021

they walked across the worn, wooden floors. The building has been a store for almost a hundred years. Customers will find snacks, tobacco, grocery staples, produce, ice cream, adult beverages and pre-cooked meals, as well as kitchen tools and utensils, cleaning supplies, hardware and even animal feed. LADY BUTCHER One of the things that sets Le Marché apart is the specialty meats offer, which includes a wide range of marinated and raw meats, from pork to beef to chicken. Jessi Dubois is the on-site butcher. “When I hired Jessi, she fell right into the role. She has done everything I could have asked and more. She likes what she does. People call, and they want to talk to Jessi.” Dubois is unique in this male-dominated profession. “Around here, I’m the only lady butcher that I know of. At first, it was a little intimidating. It’s a satisfying job and probably the best thing that’s ever happened to me,” she said. Le Marché’s resident butcher also supplies meat to a satellite market started by co-owner Bourque in Elk City, Oklahoma, where he owns an oilfield company. “We’ve sold more rice pots up there than you can imagine,” said Courville. “We cut the meat here, freeze it and ship it up there. People up there love it.” CONVENIENCE.ORG

You can buy something to cook for supper or get what you need to build a fence.

L: Le Marché offers specialty meats, including marinated and raw meats, and Jessi Dubois is the on-site butcher. R: Amy Claire Bourque and Tasha Savoy are Le Marché employees who strive to make sure every customer who walks in the store is treated like family.

Dubois and her coworkers have formed authentic connections with customers. “Jessi is coming up with new ideas each week. Customers want to talk to Monica for deli orders. Our whole team is involved. Everyone is taking care of our customers all the time,” said Courville. FRESH BREAD AND CHICKEN BURGERS This area of Louisiana is considered a food destination, so the competition is stiff. Courville knew the c-store had to have great food, and bread made fresh in the store was a tradition that Courville and his partner wanted to continue. “Baking fresh bread gives the store a certain feel. It’s an aroma that brings you comfort. An old store like this, it’s important to us how our customers feel. Keeping those traditions that have been going on for a long time is important,” said Courville. “Jalapeño bread is very popular. We get customers who call and just want plain bread with nothing in it. Some people want it with cheese. If you can think of it, we will make it.” Aside from bread, hamburgers are the most popular menu item. “Our customers come in and ask for cheeseburgers made with love.” he said. The buns are perfectly toasted on an old toaster that just seems to fit the nostalgic atmosphere of the store. CONVENIENCE.ORG

Le Marché’s Chicken Burger became a customer favorite just two weeks after landing on the menu. Courville shared the story: “We process deer. A guy came in and asked me to mix his deer with chicken thighs. He said for us to figure it out. We mixed some seasoning, put it in a casing and made sausage out of it. He came back and said nothing made his deer taste this good. He made a patty out of it, and it was great,” recalled Courville. Courville simply used the same seasoning and made a chicken patty. “It was just a customer asking for something different. Customers have good ideas; sometimes you just have to listen,” he said. “I like to tell the customers if you’re looking for something, and you can’t find it—don’t leave. We probably have it—from toilet repair to supper, we have it.” Like so many c-stores, growth is on the agenda. “We’d like to get a full deli and be able to do French fries and Sunday meals. People used to do one plate lunch on Sunday. I want something different like barbecue, pork stew, red beans and rice. With the number of people moving to the area it’s important for us to keep up,” Courville said. Le Marché is a general store with heart and customers feel it. “This is a place where you can talk to a complete stranger, and soon it feels like you’ve known them all your life.” This is what Cajun Country is all about.

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.

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GLOBAL TRENDS

Where Do You Fit in the Future of Fuels? Mobility leaders see opportunities in EV charging, alongside a mix of fuels, from gasoline to hydrogen. BY KEITH REID

Shell plans to offer a mosaic of fuels to its customers—traditional, LNG, CNG, hydrogen—and with renewables in the mix. On the EV front, Shell currently has 75,000 charge points around the world and 200,000 that the company can connect to through partners.

he NACS Convenience Summit Europe, which ran June 1 to June 3, was a virtual event from Dublin, Ireland, that brought together a variety of experts to discuss industry issues ranging from future fuels to foodservice to employee training. One of the highest interest sessions was “The Future Vehicles and the Fuels That Will Power Them.” Panelists Martin Roemheld, head of e-mobility services at the Volkswagen Group, and István Kapitány, global executive vice president Shell

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Mobility, Shell Hungary, provided an automaker and global energy company perspective on the current state and future of electric vehicle charging and what that might mean for liquid fuel retailers. Henry Armour, NACS president and CEO, joined the panelists after their presentations for a question and answer session. CHARGING TIMES The convenience/fuel retailing model is based on filling customers’ needs, including fueling, in a CONVENIENCE.ORG

NACS GLOBAL CALENDAR OCTOBER 5-8, 2021 NACS Show Chicago, Illinois, United States www.nacsshow.com

MAY 31-JUNE 2, 2022

NACS Convenience Summit Europe Berlin, Germany www.convenience.org/cse

Shell’s station of the future concept is a customer-centric hub for refueling, recharging and refreshment. It features 24 EV charging positions, 12 conventional gasoline or diesel fueling positions and alternative locations for such commercial fuels as LNG. There’s a playground on-site, plus a lounge and foodservice areas.

timely manner. Charging solutions range from slow but inexpensive home systems to extremely fast (and expensive) fastcharging technology. Roemheld noted that the first generation commercial-level 50 kW charging solutions can take up to an hour to charge a vehicle. The second generation 125 kW ID.3 charging solutions cut that time roughly in half. A step beyond that, bleeding edge charging solutions are available for premium vehicles, such as the Porsche Taycan at 270 kW charging with 350 kW charging already in the mix. These can recharge high-end batteries between 12 and 20 minutes, which he noted would be a perfect match for inside sales in convenience retail. How does that translate to a current retail fueling site? Roemheld provided a comparison where Martin Roemheld a current liquid-fuel customer profile involves 12 minutes on site, including five minutes shopping inside the store. The EV profile, using the fastest charging István Kapitány available, resulted in CONVENIENCE.ORG

14 minutes of total site time but with 10 minutes inside the store. The extra store time is gained because the EV charging process can be unattended compared to minding the fill with gasoline or diesel. “[This charging time] is when the customer can actually leave the vehicle and spend time in the shop, so there are a lot of opportunities for customer interaction for retail,” said Roemheld. “In the future, the customer will be charging 400 kilometers (249 miles) in those 10 minutes.”

NACS and Conexxus are looking at IT integration with the chargers to identify the customer and entice them into the store.

SITE OF THE FUTURE What was a perspective on an EV future from a senior executive at what has been a traditional oil company? Quite positive. “They say by 2035, 80% of the motorists in the U.K. won’t need to go to a Shell service station,” said Kapitány. “And I am the guy who is responsible for 46,000 service stations around the world. So, that is a challenge, isn’t it? I think it’s a great opportunity.” Kapitány noted that there are 10 million battery electric vehicles today, at least 150 million are expected by 2030 and 600 to 800 million by 2040. There are about 1.4 billion cars on the road today, according to WardsAuto, and the World Economic Forum expects there will be two billion

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GLOBAL TRENDS

cars on the road by 2040. The most growth will be largely in emerging markets such as China and India, resulting from an anticipated growth in their GDP. However, incremental growth or even declines can be The World Economic Forum expected in mature regions such expects there will be two billion cars as the West. on the road by 2040, and Kapitány believes there still 600 to 800 million of them will be internal combustion are expected to be battery engines, but they will be far electric vehicles. more effective and efficient than they are today. Still, Kapitány’s forecast shows EVs would likely be at least one-third of the worldwide fleet by 2040. Shell plans on offering a mosaic of fuels to its customers—traditional, LNG, CNG, hydrogen—and with renewables in the mix. On the EV front, Shell currently has 75,000 charge points around the world and 200,000 that the company can connect to through partners. And that Shell footprint—and the charging environment in general—will be far broader than you see with liquid fuels today. “The customer’s greatest concern relative to EV charging, according to surveys, is range anxiety,” Kapitány said. “So, this is our job together as retailers and partners in the e-mobility sphere to make sure this infrastructure will be built. Shell is planning to have 500,000

JUST THE FACTS

NACS CONVENIENCE SUMMIT EUROPE 2022 The NACS Convenience Summit Europe took place virtually June 1-3. Next year, the event takes place live in Berlin, Germany, from May 31 to June 2, 2022. Visit www.convenience.org/cse for more information.

charging points by 2025, which is only four years away. A significant part of that will be public charging, charging on our Shell service stations or at destination sites with significant power (150+ kW).” Moving away from the current model where virtually all fueling is accomplished at dedicated consumer or commercial fueling sites to one where a car can be charged in the garage, shopping mall, public street or existing convenience store raises some concerns over market loss. Kapitány downplayed those fears. “This is giving us an opportunity—it’s not making that pie smaller, it’s making the pie bigger,” Kapitány said. “The customers that are going to be driving EVs—many are driving fewer cars today. Many don’t drive now but will drive or will be driven in an automated vehicle. We will have an opportunity to serve a broader range of demand from our customers, and for that we need collaboration. Governments, lawmakers, OEMs, engine manufacturers, car manufacturers, retailers, mobility players and, of course, importantly we need society to go through this transition together.” A highlight of Kapitány’s presentation was a station of the future concept. This provided a roving view of the artistically represented site, which was roughly the size and scope of a current interstate travel plaza. It featured roughly 24 car-capable charging positions, 12 conventional gasoline or diesel fueling positions, alternative locations for such commercial fuels as LNG, an interior that featured lounges, foodservice areas and other convenience-focused entertainment and retail options plus an outside playground. THE FINER POINTS In addition to discussing some of the highway funding ramifications of EV charging versus the current fuel tax model, Armour finished out the Q&A session by addressing several issues directly related to the current convenience/fuel retailing infrastructure. Armour asked how retailers can be sure that the customer will leave the vehicle to access the store instead of

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CONVENIENCE.ORG

This is our job together as retailers and partners in the e-mobility sphere to make sure this infrastructure will be built.

Shell has diversified into a range of potential EV charging opportunities, such as the company’s recent acquisition of Ubitricity, which provides EV street charging through such infrastructure as streetlamps and bollards.

spending the extra time searching social media in the car. Roemheld cited the desire for people on long trips to get out and stretch their legs, with charging offering a perfect opportunity for an enhanced break from the road. Kapitány elaborated that the EV charging process makes it easy to walk away from the car and into a retail merchandising environment because of charging’s unattended nature. Experience already shows an increased basket size from the EV customer, they said. Armour added that NACS, through its technology standards group, Conexxus, is looking at IT integration with the chargers to identify the customer, plug the customer into the loyalty systems and send offers to entice the customer into the store. Armour then asked Roemheld where should retailers place their chargers and how many are required? Roemheld noted that the closer to the shop the better, and it makes a lot of sense to have a canopy to make the walk inside as painless as possible. As for the number of chargers, it makes sense to have enough to meet demand to avoid excessive wait times. This generated a discussion where Kapitány stated that there could be an electricity charging model similar to today’s offer of regular midgrade and premium fuels, only based on charging time. Some of this would be cost driven—the faster the charger the more capital-expensive and higher the grid cost—but there would also be profitability options. Armour noted there are a range CONVENIENCE.ORG

of conceptual and regulatory issues that need to be resolved before retailers can start charging for electricity on a similar model as liquid fuels today. Armour also asked about the barriers to rollout. There are numerous infrastructure details that need to be overcome, which prompted Kapitány to highlight the need once again for collaboration to speed the rollout of EV charging infrastructure. He outlined Shell’s diversification into a range of potential EV charging opportunities, such as the company’s recent acquisition of Ubitricity, which provides EV street charging through such infrastructure as streetlamps and bollards. Similarly, Shell was in the news in 2019 for its acquisition of the German home charging (and more) startup Sonnen to be positioned as an energy provider at that level. “We are talking to retailers—we ourselves are retailers,” Kapitány said. “We are working with different supermarkets and hypermarket companies, parking garages and destination charging. How can we work together? In our industry we thought it is all about competition, but in fact you need to collaborate because if you do not it will be very difficult to build the network fast enough. We need to switch away from where we are direct competitors to where we are partners to build this ecosystem.” Armour responded with the considerations required for the retailing sector. “When you shift away from a convenience retailing site, the indirect opportunities decline (inside sales) and the direct profitability has to increase,” he said.

Keith Reid is editor-in-chief of Fuels Market News, published by NACS Media. He can be reached at kreid@fmnweb.com.

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CATEGORY CLOSE-UP / GENERAL MERCHANDISE

General Store

The general merchandise category is small, but it can be mighty. BY PAT PAPE

JUST THE FACTS In 2020, general merchandise average sales per store topped $55,000 annually, a 16.3% increase year over year, according to the NACS State of the Industry Report of 2020 Data.

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That sounds right to Adrienne Smith, product director, merchandising, for McLane Co. “As far as thinking about general merchandise in September, stores should be planning for winter, and depending on their location, merchandising things like snow brushes, ice scrapers, gloves, etc.,” she said. “And by now, retailers should also have scheduled distributions for seasonal novelty products. And don’t forget batteries—plenty of batteries. “Bringing that product in early ensures stores are able to capture the additional sales that take place as consumers grab those extra batteries they forgot while Christmas shopping,” Smith said. CATCH-ALL CATEGORY “GM is a small category,” said Jayme Gough, NACS research manager. “It includes everything from cellphone accessories to batteries to propane exchanges and school and office supplies. It’s really a catch-all.” While many convenience categories suffered during the pandemic in 2020, general merchandise performed well. “Many retailers put items related to COVID-19 safety, like hand sanitizers and masks, in the GM category, which boosted sales year over year,” Gough said. “In 2019, general merchandise was 1.69% of in-store sales, and in 2020, it was 2.0%. Average sales per store topped over $55,000 annually, and that was a 16.3% increase year over year.” CONVENIENCE.ORG

iStock.com/DarrenMower

hen it comes to ordering general merchandise for Rutter’s, the 78-store Mid-Atlantic chain, Joseph Bortner always works about six months ahead of the next big season. “Space is at a premium, and so we’re very selective when it comes to general merchandise and make sure we’re only putting the items with high demand in the stores,” said Bortner, category manager of center store, Rutter’s.

Industry Sales

% of In-Store Sales 2019

2020

1.69% 2.00%

% of Stores Selling

Avg. Sales/Store 2019

2019

2020

97.6% 98.4%

$47,833 $55,645

iStock.com/Lebazele; daboost; clubfoto

Source: NACS State of the Industry Report of 2020 Data

Like other retailers, Rutter’s saw a huge demand for personal protection products during the pandemic and collaborated with several suppliers to stay well stocked. “Around the beginning of 2021, we began reducing our inventory because we anticipated demand to fall,” said Bortner. “From then on, we partnered with select suppliers who could meet our needs, and we continue to offer options without needing to constantly monitor inventories.” In 2020, the largest subcategory of general merchandise was “other general merchandise” (20.1% of category sales), including fans, trash cans, candles, boxes, flashlights and additional miscellaneous items. The next largest subcategory was propane exchanges, which typically make up a sizable portion of sales. “CSX monthly sales data show a significant increase in propane exchanges in 2020, perhaps as a result of customers cooking at home during restaurant closures related to the pandemic,” Gough said, “though the subcategory’s sales typically spike in the summer with the warmer weather.” The third largest subcategory was smoking accessories, such as lighters (12.0% of category sales). CONVENIENCE.ORG

IN GENERAL Most c-stores carry some version of the same general merchandise items, but there are exceptions. Outlets in vacation areas offer items that visitors may have forgotten, such as swim goggles, sunscreen, earmuffs and ski hats. At Buc-ee’s travel centers, the big box stores of the convenience industry, general merchandise is an art form. The centers, located in Texas, Alabama, Georgia and Florida, offer everything from home décor, kitchenware, wind chimes and books to toys, hats and clothing (much of it featuring the chain’s big-toothed beaver mascot).

General merchandise is a way to stay trendy and relevant.

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 / GENERAL MERCHANDISE

PER STORE, PER MONTH SALES

2018

2019

2020

2021

$3,500 $3,169 $3,000

$2,500

$2,000

$1,500

$1,000 JAN

FEB

MAR

APR

MAY

JUN

JUL

AUG

SEP

OCT

NOV

DEC

Source: CSX; www.csxllc.com

They also carry merchandise that shoppers may not realize they need, such as deer feeders, fire pits, giant flasks covered in real cowhide, a barbeque pit that retails for $1,200 and snake boots, which aren’t made of snakeskin but instead protect the wearer from snake bites. A recent review in Texas Highways magazine described Buc-ee’s as “a high-end flea market crossed with the nicest Fina station you’ve ever been to.” Still, for many c-store operators, general merchandise “is sometimes a forgotten category,” said Erica Ward, corporate category director, general merchandise for Core-Mark. “It’s hard to manage because of regionality and trying to stay on trend. But you don’t want to be too trendy and order too much. You might be stuck with a bunch of merchandise.”

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Ward recommends that 75% of any store’s general merchandise be “triedand-true top sellers, your everyday items, your technology items.” The remaining 25% can be seasonal and trendy merchandise, and “that’s when you have to be thoughtful about the assortment and order in advance,” she said. “And make sure you have an exit strategy after the season ends.” WHAT RETAILERS WANT Convenience retailers want to be the first to offer the next fidget spinner, a toy that millions of people have purchased for about $2 each. Ward is always on the lookout for a big winner, and fortunately, she has a 7-year-old son she can use as a test base. Currently, she sees potential in CONVENIENCE.ORG

Subcategory Performance GENERAL MERCHANDISE

% of Sales

Avg. Sales/Store

Avg. GP$/Store

Gross Margin %

2019

2020

2019

2020

2019

2020

2019

2020

Other General Merchandise

18.1%

20.1%

$8,149

$9,685

$3,310

$4,385

40.62%

45.27%

Propane Exchanges

13.1%

12.6%

$5,888

$6,069

$2,242

$2,557

38.08%

42.14%

Smoking Accessories

13.8%

12.0%

$6,201

$5,746

$2,728

$2,813

43.99%

48.96%

Telecommunications Hardware

13.0%

11.7%

$5,830

$5,647

$2,475

$2,667

42.45%

47.23%

Seasonal

7.1%

8.5%

$3,169

$4,094

$961

$1,185

30.33%

28.93%

Wearables/Apparel

9.8%

7.8%

$4,403

$3,742

$1,785

$1,639

40.55%

43.81%

Greeting/Gift/Novelties/ Toys/Rec Equipment

6.4%

6.3%

$2,891

$3,045

$1,360

$1,596

47.03%

52.42%

Hardware/Tools/ Housewares

5.8%

6.2%

$2,585

$2,999

$789

$956

30.53%

31.86%

Batteries

6.5%

5.7%

$2,922

$2,739

$1,084

$1,013

37.11%

36.98%

School/Office Supplies

2.4%

4.6%

$1,088

$2,197

$367

$848

33.68%

38.62%

Floral

2.7%

2.5%

$1,214

$1,217

$547

$603

45.05%

49.51%

Video/Audio Tapes

0.9%

1.4%

$386

$679

$101

$243

26.07%

35.77%

Trading Cards

0.3%

$138

$159

$64

$84

46.37%

53.10%

Film/Photo

0.1%

$47

$53

$19

$28

39.64%

54.20%

100.0%

$47,833

$55,645

$17,832

$20,616

37.28%

37.05%

TOTAL

iStock.com/farakos, 943296500

For more information on NACS category definitions, visit www.convenience.org/categorydefinitions. Source: NACS State of the Industry Report of 2020 Data

Funko Pop vinyl toys, small dolls that are available in hundreds of characters, and The Push Pop Fidget Toy, a silicone trinket that kids can pop like bubble wrap. Fortunately—or unfortunately— the toy can be used repeatedly. Core-Mark features open stock general merchandise items in the Core Gear catalog, while seasonal and pre-book merchandise is showcased in digital publications. Each company division holds trade shows during the year where retailers can visit one-on-one with vendors. In addition, the Core-Mark app and desktop ordering portal let retailers review new products and promotions and order from the Core Gear catalog and from all other categories. CONVENIENCE.ORG

McLane helps retailers stay updated on trending products and special monthly offers via its McLane EDGE platform. The company also features seasonal or holiday-specific virtual shows on its Virtual Trade Show site, an online ordering platform where suppliers offer deals and discounts. “We’ve recently launched a sourcing program called McLane Select that features specific product segments,” Smith said. “We can target particular categories through this program and find reputable suppliers with quality products that we can partner with to fill customers’ exact needs.” Plus, customers can schedule customized sessions with team members to

Average GM sales per store topped $55,000 annually, and that was a 16.3% increase year over year.

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CATEGORY CLOSE-UP / GENERAL MERCHANDISE

ADVERTISER INDEX Contact Information

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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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Contact Information

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L iggett Vector Brands Inc...........................................................43 (877) 415-4100 www.liggettvectorbrands.com

Swedish Match North America (Game Leaf)..............................27 (800) 367-3677 www.smna.com

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

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

Swisher International Inc. ..........................................................15 (800) 874-9720 www.kayak-outdoors.com

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

Trion Industries Inc..................................................................................17 (800) 444-4665 www.triononline.com

B IC Corporation...........................................................................45 www.biclighter.com

NACS Convenience Matters.......................................................................4 www.conveniencematters.com

Calico Brands Inc. (Scripto)....................................................................30 (800) 544-4837 www.calicobrands.com

NACS Foundation.......................................................................................6 www.conveniencecares.org

Abierto.....................................................................................................63 www.ab-net.us ADD Systems............................................................................................ 73 www.addsys.com

C ash Depot...................................................................................25 (800) 776-8834 sales@cdlatm.com www.cdlatm.com

Cool New Products Guide................108-111 www.convenience.org/coolnewproducts

NACS IDEA Conference.......................................................................... 107 www.convenience.org/idea

TY Inc........................................................................................................87 www.ty.com Vitamin Energy...................................................................................10-11 www.vitaminenergy.com ZOA Energy.....................................Bellyband wraps around front cover www.zoaenergy.com

NACS Show...............................................................................................93 www.nacsshow.com/lastchance NACS Show App .....................................................................................123 www.nacssshow.com NACS State of the Industry Report .......................................................101 www.convenience.org/SOIreport

Chester’s International..................................... Inside Back Cover (800) 646-9403 www.chesterschicken.com

NACSPAC..................................................................................... b/t 12 & 13 www.convenience.org/nacspac

Core-Mark International............................................................. 77 www.core-mark.com

NorthAmerican Bancard.........................Outsert (polybagged w/ issue) (866) 481-4604 www.nynab.com

Diaego Beer Company USA.....................................................................83 www.diageo.com

Old World Industries...............................................................................35 www.owi.com

DMF Bait Company..................................................................................39 (800) 332-2248 orders@dmfbait.com www.dmfbait.com

PIM Brands Inc............................................................................. 81 800) 369-7391 www.welchsfruitsnacks.com

E&J Gallo.......................................................................................51 www.gallo.com Haliburton International Foods Corp.....................................................89 www.haliburton.net H unt Brothers Pizza....................................................................47 www.huntbrotherspizza.com Invenco Group Limited ............................................................................3 www.invenco.com Johnsonville Sausage LLC............................................................................ 55 www.johnsonville.com K rispy Krunchy Chicken...............................................................31 www.krispykrunchy.com

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Premier Manufacturing Inc..............................................................5 & 49 www.gopremier.com Refrigeration Design Technologies Inc................................................123 www.rdtonline.com Silentmode Sdn Bhd (Slurp!)................................................................. 91. . www.getslurp.com Southern Wine (Buzzballz LLC).............................................................. 57 www.buzzballz.com StarKist Company.................................................................................... 19 www.starkist.com Swedish Match North America (Zyn)...........................................9 (800) 367-3677 www.smna.com

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review their item mix against McLane’s extensive data warehouse. SPACE SHORTAGE No room for more general merchandise? No problem. Review store sales data and ditch slow sellers. For example, Wells saw a drop in demand for light bulbs, paper, pencils and office supplies during 2020. “Today, people use their phones for notes and order light bulbs online,” Ward said. “There are opportunities to get rid of old items and bring in new

ones. Think about your demographics and where your stores are. It’s probably easier for the independent retailer. But every area has a sports team—local or professional—and team logo items are a potential ring opportunity. If you do it right and think of general merchandise from a strategy data-sourced point of view, you can make that small amount of space work,” Ward said. “General merchandise is a way to stay trendy and relevant in your market,” said Bortner of Rutter’s. “And you can offer some core items year-round.”

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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Beer in Your Breeches Northern Virginia police responded to a theft at a gas station, where an employee reported that a man took two cans of beer from the beer cooler, stuffed them in his pants and left the store without paying. A deputy in the area saw a man matching the description of the larceny suspect leaving a trail of beer cans behind him as he stumbled through a different c-store parking lot. Another deputy arrived on the scene and noticed “a distinct bulge in the shape of a beer can,” according to a news release. Maybe skinny jeans weren’t the best fashion choice in this situation?

Free the Fritters Celebrity chef Ree Drummond bills herself as an “accidental country girl,” but during one c-store visit, you could call her an “accident-prone girl.” A few years ago, Drummond and her husband, Ladd, decided to stop by a convenience store to grab a cup of coffee. While inside, Drummond was enticed by the apple fritters in a self-serve glass display case and just had to pair one with her coffee. When she went to grab her treat, she pulled the knob on the glass case the wrong way, and the entire display shattered. Drummond said she stood in front of the shattered case “stunned” and “shocked,” as there was tempered glass everywhere. The store manager quickly rushed to her side to check on her and reassure her. “Poor [Ladd] can’t take me anywhere,” joked Drummond. 124

| SEPTEMBER 2021

One True Love The Tokyo Olympic Games may be over, but one journalist’s love affair with Japanese convenience stores will never be. Canadian journalist Devin Heroux covered the games for public broadcaster CBC, and at the beginning of his trip discovered there was a 7-Eleven right outside his hotel. He narrated his entire love story with the convenience store via Twitter, beginning with the first time he walked into the store to updates on each visit and what he purchased. His tweets went viral after he tweeted about how thrilled he was to enjoy a substantial meal from the 7-Eleven at 2 a.m. after covering the games for 18 hours. The tweet was translated into Japanese and amassed 34,000 likes and more than 18,000 retweets, and his newfound followers waited on his 7-Eleven reports throughout his time in Tokyo.

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Visit our booth at NACS Show and check out our latest technology innovations, enjoy samples of our tasty new foodservice offerings from McLane Kitchen, and try candy and snack samples from our private label line, Consumer Value Products (CVP). We will also be launching exciting new programs! Don’t miss it! Stop by to access show-only deals and see firsthand how McLane’s products and solutions can help you buy better, sell smarter, and profit more. NACS Show Booth #5713 For more information on McLane, go to mclanegrocery.com © 2021 McLane Company, Inc. All rights reserved.

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