NACS Magazine September 2024

Dining spaces invite customers to sit, stay and spend

SPIKED SODA

Behind the boozy soft-drink trend

THIRD SHIFT

How retailers make 24/7 operations work

PREVENT UNDERAGE SALES OF TOBACCO

PRODUCTS

Ensure that retail remains the most trusted place to responsibly sell tobacco products.

Did you know the average number of FDA compliance checks per month are approaching pre-COVID-19 levels?

In 2023, as of 9/30/23, the FDA conducted 9,381 compliance checks per month, which was an uptick from previous years.*

FDA COMPLIANCE CHECKS Per Month (Avg.)

*Source: FDA CTP Violation Rate analysis was completed using publicly available raw data posted online at fda.gov.

Calculations of Total Compliance Checks and Violation Rates were computed by AGDC based on Decision Data published. Inspections data FFY 2019 - 2023

Age Validation Technology (AVT)

Modernize and simplify the ID check process with AVT, helping to reduce the likelihood of selling tobacco products to underage individuals

Improve ID check rates at a store and individual employee level, with We Card™ Training, available for Free via AGDC

State and Federal Law

Summaries and additional resources via the We Card™ resource center

Reinforce your sales associates’ understanding of ID check requirements and policies with Mystery Shop incentives

38 Check It Out

This article is brought to you by GS1 US.

GS1’s Sunrise 2027 aims to bring a wealth of new product information to consumer goods.

42 Have A Seat

Inviting dining areas allow c-store customers to take a break while operators build baskets.

50 NACS Show Preview: Education Sessions

Developed by retailers for retailers, this year’s NACS Show features 50 unique learning opportunities.

66 Navigating the NACS Show

It’s even better when you plan ahead.

74 State of Self Check-Out

Retailers evaluate the benefits, drawbacks and best practices of self-checkout.

80 New Ideas in Merchandising

C-stores use innovative tactics to stand out and drive sales.

ONTENTS

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

NACS / SEPTEMBER 2024

Weathering the Storm Making sure that c-stores can be the last to close and the first to open in the face of a crisis requires constant planning. 122

FEATURES

94 CoCos Come Back

Major oil operators continue to return to retail.

100 Tapping the Neurodivergent Talent Pool

How to recruit, train and retain neurodiverse employees.

108

Looking Ahead: The Gas Station’s 10 Year Forecast

How will new options, electric charging and the popularity of hybrid vehicles change the forecourt?

114

Overheard at the Backbar

Retailers and suppliers offer perspectives on what remains of nicotine, one of the most important traffic drivers in c-stores.

132 Future Proofing Convenience

This article is brought to you by McLane.

Technology innovations, foodservice innovations and private label products cater to changing tastes.

NACS / SEPTEMBER 2024

DEPARTMENTS

08 From the Editor

$6,286

The average sales per store, per month for hot dispensed beverages in 2023.

CATEGORY CLOSE-UP PAGE 146 IT’S A FACT

Convenience Cares

30 Inside Washington

Seeking to make SNAP and EBT more secure, states are preparing to adopt EBT chip cards. Retailers should start preparing now.

36 Ideas 2 Go

Fav Trip provides an edgy, fun and satisfying customer experience.

136 Cool New Products

144 Gas Station Gourmet

A Massachusetts c-store gained local notoriety after a viral TikTok video of its tacos.

146 Category Close-Up

Hot coffee remains a staple, but changing tastes, temperatures and flavors are shaking up the hot dispensed beverage bar.

160 By the Numbers

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

PHARMACEUTICAL GRADE NICOTINE

6 FLAVOR PROFILES WITH 3 STRENGTHS (3MG, 6MG, AND 9MG)

EXTENDED NICOTINE RELEASE

LONG LASTING FLAVOR

PREMIUM SOFT POUCHES

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EDITORIAL

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

Ben Nussbaum Editor-in-Chief (703) 518-4248 bnussbaum@convenience.org

Leah Ash Editor/Writer lash@convenience.org

Noelle Riddle Editor/Writer nriddle@conveneince.org

Lauren Shanesy Editor/Writer lshanesy@convenience.org

CONTRIBUTING WRITERS

Angel Abcede, Terri Allan, Joe Beeton, Stephen Bennett, Jamie Grill Goodman, Sarah Hamaker, Al Hebert, Stephenie Overman, Pat Pape, Keith Reid, Emma Tainter

DESIGN MX www.themxgroup.com

ADVERTISING

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

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

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

PUBLISHING

Stephanie Sikorski Vice President, Marketing (703) 518-4231 ssikorski@convenience.org

Nancy Pappas Marketing Director (703) 518-4290 npappas@convenience.org

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

NACS BOARD OF DIRECTORS

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

TREASURER: Lisa Dell’Alba, Square One Markets Inc.

OFFICERS: Anne Gauthier, St. Romain Oil Company LLC; Varish Goyal, Loop Neighborhood Markets; Brian Hannasch, Alimentation Couche-Tard Inc.; Charles McIlvaine, Coen Markets Inc.; Lonnie McQuirter, 36 Lyn Refuel Station; Tony Miller Retail Delek US

GENERAL COUNSEL: Doug Kantor, NACS

LIAISON: Joseph Sheetz Sheetz Inc.

MEMBERS: Chris Bambury, Bambury Inc. dba BONNEAU; Tom Brennan, Casey’s General Stores Inc.; Andrew Clyde, Murphy USA; Terry Gallagher, Gasamat Oil Corp/Smoker Friendly; Raymond M. Huff,

NACS SUPPLIER BOARD

SUPPLIER BOARD CHAIR: David Charles, Cash Depot

VICE CHAIR: Sarah Vilim Keurig Dr Pepper

MEMBERS: Tony Battaglia, Tropicana Brands Group; Patricia Coe Advantage Solutions; Jerry Cutler, InComm Payments; Jack Dickinson, Dover Corporation; Matt Domingo, Reynolds American Inc.; Mark Falconi, Greenridge Naturals; Ramona Giderof, Diageo Beer Company USA; Mike Gilroy, Mars Wrigley; Danielle Keck Holloway, Altria Group Distribution Company; James Hughes; Kevin Kraft, Q Mixers; Kevin M. LeMoyne, The Coca-Cola Company; Kevin Martello, Keurig Dr Pepper; Bryan Morrow, Chobani; Jay Nelson, Excel Tire Gauge LLC; Nick Paich, GSTV

HJB Convenience Corp. dba Russell’s Convenience; John D. Jackson, Jacksons Food Stores Inc.; Mark Jordan, Refuel Operating Company; Missy Matthews, Childers Oil Co. dba Double Kwik; Brian C. McCarthy, Blarney Castle Oil Co.; Natalie Morhous, RaceTrac Inc.; Jigar Patel, FASTIME; Robert Razowsky, Rmarts LLC; Stanley Reynolds, 7-Eleven Inc.; Kristin Seabrook, Pilot Travel Centers LLC; Babir Sultan, Fav Trip; Richard Wood, Wawa Inc.

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

SUPPLIER BOARD REPRESENTATIVES: David Charles Sr., Cash Depot; Vito Maurici, McLane Company Inc.

STAFF LIAISON: Henry Armour, NACS

PAST CHAIRS: Brent Cotten, The Hershey Company; Kevin Farley W. Capra Consulting Group LLC (Axonet); Drew Mize PDI Technologies

RETAIL BOARD

REPRESENTATIVES: Tom Brennan, Casey’s General Stores Inc.; Scott E. Hartman Rutter’s; Kevin Smartt, TXB Stores

SUPPLIER BOARD REPRESENTATIVE: Vito Maurici, McLane Company Inc.

GENERAL COUNSEL: Doug Kantor, NACS

STAFF LIAISON: Bob Hughes, NACS

NACS Magazine (ISSN 1939-4780) is published monthly by the National Association of Convenience Stores (NACS), Alexandria, Virginia, USA.

Subscriptions are included in the dues paid by NACS member companies. Subscriptions are also available to qualified recipients. The publisher reserves the right to limit the number of free subscriptions and to set related qualifications criteria.

Subscription requests: nacsmagazine@convenience.org

POSTMASTER: Send address changes to NACS Magazine, 1600 Duke Street, Alexandria, VA, 22314-2792 USA.

Contents © 2023 by the National Association of Convenience Stores. Periodicals postage paid at Alexandria VA and additional mailing offices. 1600 Duke Street, Alexandria, VA 22314-2792

The Digital Forecourt

How interactive technology drives customer buying habits to

‘Good morning, John!’ John Maris saw more than a greeting at the pump—this new display is offering to get his usual breakfast and coffee ready inside, and reveals that it’s been ‘30+ days’ since his car has been washed. A bubble opens: “Would you like to check out now?”

Until he was greeted personally and sped through his ordering choices, that pit stop was like any other. But it was the experience that delighted him that morning.

Modern point-of-sale systems, loyalty memberships, interactive touchscreens, and centralized menu and promo management are all familiar technologies in the industry. But, most c-stores have only scratched the surface of their potential to impact the bottom line.

The next revenue growth opportunity won’t come from new shelf layouts, products, or a menu swap, but from reimagining how your existing tech delivers a more directed customer experience.

What your customers want is in the namesake of the niche: convenience. John’s experience when he pulled into the pump—being personally greeted and offered a more efficient, faster solution to fulfill his morning buying habits—changed the entire dynamic of his morning.

From pre-ordered food to a reminder to get his car washed, everything is served in a “done for you” way, ensuring he’s never late for work. This convenience reinforces his loyalty to the C-Store; it’s his favorite, and he won’t go anywhere else.

The forecourt is already digital, with computers managing inventory, tracking payments at the pump, and integrating customer loyalty programs. Now, c-stores are creating a true win-win: customers get the experience they desire both outside and inside the store, while you reap the benefits.

John’s new experience at his regular morning stop for gas and snacks was unlike any other, greeted personally and guided through his most probable order desires based on his past behavior. He took no notice of major overhauls at the C-Store he visited daily. Yet something was distinctly refined.

The digital forecourt future isn’t about replacement, but integration. The opportunity of the future is within the areas, floor space, and touch points you already have. Now, it’s just about executing on a vision to develop what you have into what your customers want.

Labor Gains

Expanding the labor pool might be good for your business and your community.

The December 2023 issue had a story from Stephenie Overman on hiring older workers, which showcased many benefits to hiring this generation, including their notable reliability. One simple change that the article suggested: Let them sit down. This accommodation can make a huge difference in whether someone can manage a full shift or not. And imagine the social good that might come with offering employment to people who thought they were “too old to work.”

In this issue, Overman looks at how to modify your hiring and operations to better support neurodiverse individuals. Her story, “Tapping the Neurodivergent Talent Pool,” has some practical tips along with great insights from operators in the field. It could be a double win:

With some planning and accommodations, you may have a star employee, and the social good speaks for itself.

Speaking of the convenience industry workforce … I’m so excited to debut a new element of the magazine. Check

out “Faces of the Industry” on page 8. We’ll use this space to tell the stories of the people who make our industry great while doing our part to broadcast the message that c-store jobs are great jobs.

To stick with that theme: NACS Show will be here before you know it. The time is right to start planning your trip. We list all the scheduled education sessions starting on page 50. Four are on the workforce, covering these topics: training and development, recruiting, retaining frontline workers and reigniting passion in disengaged employees. If you haven’t registered yet, NACSShow. com is open around the clock.

Ben Nussbaum Editor-in-Chief

The NACS Show returns to Las Vegas, and HR solutions are on the agenda.

NACS Show will be here before you know it.”

UP FRONT FACES OF THE INDUSTRY

From College Cashier to Corporate Career

Aisha Jefferson stopped at an Atlanta QuikTrip for gas on her way to college two decades ago. Knowing she would need a parttime job while in school (and wanting to prove to her parents that she could support herself), she filled out an application on the spot after she was “blown away by the customer service” when she went inside the store. “Everyone was so happy to be there and made work look fun. I was immediately like, ‘I want some of that,’” she said. Today, she’s QuikTrip’s corporate communications manager. She’s held roles at almost every level of the business, from a part-time clerk to a district manager overseeing 18 stores. Now, she has four years working in the retailer’s corporate headquarters under her belt. Jefferson shared her c-store story with NACS Magazine.

WHY SHE LOVES

WORKING AT QUIKTRIP

I’ve always thought that QuikTrip always has my best interest at heart. My parents taught me that if I worked hard, I’d reap the benefits of that hard work, and QuikTrip really recognized and rewarded my hard work and invested in me. That’s how my career here evolved so organically. No job has ever felt as good as working here because it’s always felt like a family, and that’s been so fulfilling. It’s a no-judgement zone, people accept you for who you are and this company has always taken care of me. It’s been my safe space and I have a sense of belonging here. Plus I really can’t discount how much fun we have.

I genuinely love all the people that I get to work with every day.

HER FAVORITE ROLE AT QUIKTRIP

Being a QuikTrip store manager was incredibly rewarding for me because it allowed me to use my experience to see employees grow. Watching them develop their skills and confidence under my guidance was fulfilling. I enjoyed mentoring them and witnessing their progress, knowing that I played a part in their professional growth. It also helped me improve my leadership skills and gave me a sense of accomplishment seeing the store thrive because of our collective efforts.

Celebrating the people who make our industry great.

HOW HER C-STORE EXPERIENCES HELP HER IN HER ROLE TODAY

We like to say that our people make the place, and I really believe that. When I was a part time-clerk, I really felt like the most important person to the store because you’re setting the tone for customers and can make or break their experience. And then when I became a store manager, I saw how important it was to have your whole team supporting you. … If you take care of your people, they’ll take care of you. And that’s a really important thing I learned by starting at the bottom.

Today, I speak on behalf of the 31,000 people that work for QuikTrip. I think about that every time I conduct an interview or draft a statement— my audience isn’t just the media. My audience is my employees and their family members. It’s our customers. And I’ve been all those things at some point.

WHY SHE THINKS THE CONVENIENCE RETAIL INDUSTRY IS A GREAT PLACE TO WORK

Working in the c-store business is really more than what people make it out to be. I think people don’t think of the convenience industry as a great job opportunity because they don’t know the ins and outs. They don’t understand that just like any other industry, we have frontline workers, different departments, distribution centers and sister companies, and all kinds of opportunities to have a fulfilling career.

Aisha Jefferson corporate communications manager QuikTrip

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EV Drivers Value Safety Features at Charging Sites

With the adoption of electric vehicles (EVs) set to increase over the next several years, retailers would be wise to ensure that their charging offering appeals to the broadest set of customers. According to a new report released earlier this year from the Transportation Energy Institute (TEI), the number one thing consumers are looking for when charging their EV is a site that is safe.

The report, “EV Market Insights,” found that four of the five most preferred site amenities and services of EV drivers were related to safety, including elements such as bright lights surrounding chargers and visible security cameras.

Yet fewer than two-thirds of charging facilities surveyed offer these specific services to their customers, TEI noted in the report.

“There have been hundreds of surveys released that ask drivers about their experience, preference and intent,” said John Eichberger, executive director of TEI. “But this is the first of which we are aware that combines insights from drivers with the experience of charger site hosts. This type

Register for Convenience Summit

Asia 2025 in Tokyo

of analysis is critical if we are to build a charging network that satisfies the needs of both the driver and the site host and provides a business value to those investing in infrastructure.”

According to the report, the most important site features desired by EV drivers included:

1. Multiple charging spots.

2. Open 24 hours per day, 7 days per week (provided by 52% of sites surveyed).

3. Chargers located in a highly visible location (provided by 68% of sites surveyed).

4. Bright lighting around charging units (provided by 56% of sites surveyed).

5. Visible security cameras (provided by 65% of sites surveyed).

Charging station site hosts that offer these services, plus a playground for children, could potentially “activate” 94.2% of EV drivers to visit their site for their charging needs, said the report.

If you want to stay ahead of the global curve in convenience retail and see what future innovations are already in practice elsewhere in the world, then there’s one major event you don’t want to miss—Convenience Summit Asia. Registration is now open for next year’s event , which will be held in Tokyo, Japan, February 25-27.

Over the course of three days—filled with networking events, education sessions and case studies, and interactive

store tours of some of Asia’s most iconic brands—attendees will uncover unique ideas and takeaways from one of the epicenters of convenience retailing.

“The NACS Convenience Summit Asia provides new regional and global perspectives about the highly competitive convenience retailing business. Networking with industry practitioners from all over the world let’s our team develop and implement innovative strategies to improve our business and

Industry Celebrates Another Successful 24/7 Day

On July 24, convenience retailers across the nation celebrated the commitment of first responders, medical personnel, 9-1-1 dispatch professionals and American Red Cross volunteers for the NACS Foundation’s annual 24/7 Day. The event not only thanked and recognized this core community and customer base with free items, like a cup of coffee or fountain soda, but also showcased the convenience store industry’s deep community ties and dedication with fundraising events including food and blood drives. Over 80 retailers and suppliers participated, representing 30,000 locations nationwide.

Kelley Smith, HOP Shops District Manager, shared her enthusiasm: “Our recent event was a phenomenal success, and I couldn’t be prouder of our entire team. It was a joy to see everyone come together, showcasing the dedication and passion that defines HOP Shops. The turnout was incredible, and you could really feel the positive energy. This event truly highlighted the strong bond we have with our community and the unwavering commitment of our employees. I am incredibly grateful for everyone’s hard work and enthusiasm, which made this event such a memorable experience.”

Social media played a pivotal role in amplifying the day, from retailers showcasing their efforts on company channels to influencer collaborations

that enhanced visibility and engagement—including Instagram posts by gymnast Zoe Miller and a supportive segment by Tank Sinatra on his “Tank’s Good News” network, bringing additional spotlight to the event on GSTV.

“As the new Executive Director of the NACS Foundation, I am both humbled and energized by the success of this year’s 24/7 Day, which showcased the vital role of our first responders and incredible support from the convenience store industry. Looking forward, I am committed to continuing this legacy of engagement and expanding our reach and impact, ensuring that each 24/7 Day further strengthens the bond between our stores and their communities,” said Kevin O’Connell, executive director for the NACS Foundation.

O’Connell joined NACS in July as the new executive director of the NACS Foundation. O’Connell most recently served as nonprofit strategic advisor to FYN Creative, the digital storytelling agency he founded in 2014 to produce video content, create campaigns and provide trainings for universities and nonprofits. Prior to that, Kevin founded and served as executive director of The Niche Movement, a global community reaching more than 5,000 people that helps college students and young professionals rethink the traditional career search and find a job they love.

O’Connell also has 15 years of higher education experience, most recently as adjunct professor at George Washington University’s School of Business. Kevin is an active volunteer in community groups including Food & Friends in Washington, D.C.

“The continuous growth of 24/7 Day each year underscores the convenience and fuel retailing industry’s dedication to strengthening community connections and supporting vital public services, promising even greater engagement and impact in future iterations,” O’Connell said.

To get involved next year or learn more about the NACS Foundation, email Kevin O’Connell at koconnell@convenience.org or visit conveniencecares.org .

keep pace with what our successful counterparts are doing,” said Juan Miguel T. Delgado, chief operating officer at Northern Star Energy Corporation in the Philippines.

Some highlights of the event include:

• Thought Leadership: Discover new ideas, products and solutions that are addressing the challenges and opportunities of today, tomorrow and 10-20 years into the future.

• Strategic Relationships: No other convenience industry event brings together leaders in store operations, marketing innovation, retail design, fuel delivery and other key performance retail areas. Meet leaders who can make a difference to your business and career in a face-to-face setting.

• Immersive Learning : On the heels of a disruptive few years, hear retailer case studies, success stories

and best practices that will help you benchmark your business for today and tomorrow. Exchange best practices and form deep collaborations through casual and facilitated conversations with the best and brightest minds in our industry. Visit www.convenience.org/events/ GlobalEvents/Convenience-Summit-Asia for more information and to register.

UP FRONT NACS NEWS

Member News

RETAILERS

Brian Hannasch, president and CEO of Alimentation Couche-Tard, will retire from those positions as well as his role on the company’s board of directors on September 6, 2024. He will continue to serve as a special advisor to both the new president and to Alain Bouchard, founder and executive chairman of the board.

Alimentation Couche-Tard appointed Alex Miller as president and CEO of the company, effective September 6, 2024. Prior to this appointment, Miller served as Couche-Tard’s chief operating officer.

Casey’s appointed Maria Castañón Moats to its board of directors beginning July 1. Her addition to the Board brings the number of directors to eleven. Castañón Moats has over 30 years of public accounting experience along with significant leadership roles at PricewaterhouseCoopers LLP in the areas of assurance services and corporate governance.

Lisa N’Chonon was recently named chief financial officer and treasurer of EG America. After serving in the role on an interim

basis for the last 11 months, she will continue to lead all aspects of the finance organization, including accounting, FP&A, tax and treasury and risk management. Since joining the company in 2017, Lisa has also served as chief accounting officer and VP of accounting operations.

Laura Sherman was recently named general counsel of EG America. Since joining the company in 2013, Laura has held a series of progressively senior leadership positions within the legal department, most recently assistant general counsel and interim general counsel. As general counsel, Sherman leads all aspects of the legal department, including litigation, contracts, records management, retail licensing and compliance and regulatory matters.

EG America also announced that Whitney Johnson has joined the company as vice president of loyalty and digital commerce, where she will spearhead and drive the company’s future growth through loyalty marketing and digital commerce.

Brandon Frampton

Loop Neighborhood Market appointed Brandon Frampton as its new director of fresh foods. The company stated that Frampton’s extensive experience and skill set will bring significant value to the company as it continues to innovate and grow.

Wawa hired Justin Tichy as its chief operating officer. Tichy has been chief operating officer at Petco since 2018. Before that, he was president of sales at insurance distribution company Confie and vice president of retail sales, among other roles, at electronics retailer Best Buy and affiliated companies. [no picture]

SUPPLIERS

Craig Morford , vice president, general counsel and secretary for Exxon Mobil Corporation, retired on July 1. Morford joined ExxonMobil in 2019 as deputy general counsel, after previous roles with the United States Department of Justice and in private industry. For more than 20 years, Morford advanced through the Department of Justice with assignments as U.S. Attorney in Michigan and Tennessee, and first assistant U.S. attorney in Ohio.

Brian Hannasch

Alex Miller

Lisa N’Chonon

Laura Sherman

Whitney Johnson

Craig Morford

UP FRONT NACS

Exxon Mobil elected Jeff Taylor to succeed Morford as vice president, general counsel and secretary. Taylor joined ExxonMobil in May 2024 from Fox Corporation, where he was executive vice president and general counsel. Before joining Fox, Taylor was the deputy general counsel and chief compliance officer for General Motors Co., and general counsel of Raytheon Integrated Defense Systems.

Hatco Corp. appointed Steve Bindl as its new head of global marketing. In this position, he will direct the company’s efforts in market analysis and product research to enhance product and market development strategies.

Josh Beale was hired by Hatco Corp. as its new key accounts specialist. He will work with the company’s key accounts team and will be responsible for actively managing and supporting OEM customers, collaborating with them and Hatco’s engineering team to design and develop commercial foodservice equipment solutions that meet their needs.

Steve Bindl

Josh Beale

Jeff Taylor

Loyalty Means Business

Returning customers create 80% of C-store future revenue

Top Store Opportunities to Attract and Retain Customers: Breakfast/Coffee Programs Hot Foods Functioning Equipment

Remodel/Signage

However, C-Stores are not realizing the sales expected from these initiatives.

Why

Missed timelines and lack of scalability

Exceeded budgets

Revenue generating equipment down

Poor customer experience

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Services over 30% of c-stores in the U.S. Dedicated c-store projects team

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UP FRONT NACS NEWS

New Members

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

RETAILERS

949 Boston Post Road LLC West Haven, CT

A.R. Sandri Inc. Greenfield, MA

Astoria Mini Mart East Astoria, OR

BreakRoom Choices Layton, UT Breakroomchoices.com

CEPSA Comercial Petroleos S.A. Madrid, Spain

Champs Fuel Inc. Austin, NV

Dossani Paradise Management Grapevine, TX

Gelson’s Santa Fe Springs, CA www.gelsons.com

Global Commerce Investments Salida, CA

Herd & Smith Holdings Ltd Trail, BC, Canada

HIJLEH Inc. Anaheim, CA

Home Oil Co. Inc. dba Hobo Pantry Food Stores Cowarts, AL

InConvenience Inc. Chicago, IL www.inconvenienceinc.com

Jordan’s Kwik Stop Harrisburg, AR www.jksinc.net

Kajy Petroleum Company Farmington, MI

KWIK SERV / Joe’s Gas & Smog Oxnard, CA

Lyons S&S Newhall, CA

Oak Cap Ventures Petaluma, CA oakcapventures.com

Pine Ridge Oil Pine Ridge, SD

Pitpalazzo Las Vegas, NV www.pitpalazzo.com

Ricky Rockets Fuel Ctr Inc. Hoffman Estates, IL

RIVERMART Sacramento, CA

Sage Mart Ridgecrest, CA

Shop-N-Go Inc. Fresno, CA

slid8inc Leesburg, FL

Small Stop Auburn, WA

Spencer Distributing Palestine, TX

Stadium Sub LLC Sturgeon, MO

Stop N Go LLC Cary, NC

The Gott Company Prince Frederick, MD

Welch’s Stop N Shop LLC Oakdale, LA

Whitehead Oil Company Lincoln, NE www.u-stop.com

SUPPLIERS

Acxion Odenton, MD acxion.com

Amcom Data Processing dba Amcom San Ramon, CA www.amcom.biz

Century Partners Real Estate Inc. Manhattan Beach, CA Centurypartnersre.com

CKE Restaurants Holdings Inc. Franklin, TN www.ckefranchise.com

CURO Group Saint Louis, MO www.curogrp.com

Energos.AI

North Hollywood, CA Energos.ai

Evolve Energy Construction Lethbridge County, AB, Canada

Groupe KSD Vaudreuil-Dorion, QC, Canada www.groupeksd.com

HIPPEAS Inc. New York, NY www.hippeas.com

Huhtamaki Inc. De Soto, KS www.huhtamaki.com

Illicit Labs Salt Lake City, UT ISN Dallas, TX

Koch Foods Fairfield, OH www.kochfood.com

N/S Corporation Valencia, CA www.nswash.com

ORBIS Corporation Oconomowoc, WI www.orbiscorporation.com

PAX Technology Inc. Jacksonville, FL www.pax.us

Premier Protective Security Inc. Brentwood, TN www.ppsinctn.com

Red River Commodities Inc. Fargo, ND

Republic National Distributing Company Houston, TX

Ronnoco Beverage Solutions Saint Louis, MO www.ronnoco.com

Stratacache Dayton, OH www.stratacache.com

The Dairy Alliance Atlanta, GA Thedairyalliance.com

Welch’s Concord, MA www.welchs.com

Winholt Equipment Woodbury, NY www.winholt.com

Woodford Oil Company Elkins, WV www.woodfordoil.com

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UP FRONT NACS NEWS

Calendar of Events

2024

OCTOBER

NACS Show

October 07-10 | Las Vegas Convention Center Las Vegas, Nevada

NOVEMBER

NACS Innovation Leadership Program at MIT

November 03-08 | MIT Sloan School of Management Cambridge, Massachusetts

NACS Women's Leadership Program at Yale

November 17-22 | Yale School of Management

New Haven, Connecticut

2025

JANUARY

Conexxus Annual Conference

January 26-30 | Loews Ventana Canyon Tucson, Arizona

FEBRUARY

NACS Leadership Forum

February 11-13 | The Ritz-Carlton Amelia Island, Florida

NACS Convenience Summit Asia

February 25-27 | Conrad Tokyo Tokyo, Japan

MARCH

NACS Day on the Hill

March 10-12

Washington, D.C.

NACS Human Resources Forum

March 24-26 | Hutton Hotel Nashville, Tennessee

APRIL

NACS State of the Industry Summit

April 08-10 | Hyatt Regency

DFW International Airport Dallas, Texas

THE ART OF

Wills Group Commits to Combatting Food Insecurity

The retailer partnered with a local nonprofit to help bring fresh food and an outdoor gathering space to a food desert.

Earlier this year, Dash In, a convenience banner operated by the Wills Group, opened a new store in Indian Head, Maryland. The location builds on Dash In’s first-generation concept store that opened in 2023 in Virginia, with a reimagined layout, enhanced foodservice and a brand-new visual identity.

Aside from offering Dash In fuel and a new Splash In car wash, the 4,800-square-foot store serves as a flagship foodservice offer in an underserved community.

The Wills Group also partnered with Oasis Fresh Food Market to help bring fresh grocery items to Indian Head. Oasis Fresh Food Market is set to open later this year and will be the first grocery store within the town limits of Indian Head in 25 years.

Oasis Fresh Foods Market’s vision is to create access to fresh food while giving the community a gathering space and creating jobs with livable wages. To help support the initiative, the Wills Group invested more than $50,000 to support the development and the building of a community garden. This initiative furthers Dash In’s community engagement signature programs— Nourishing Children and Families and Reimagining Outdoor Spaces.

Rayma Alexander, director of corporate communications and diversity, equity and inclusion, said, “The community garden is a cornerstone of this project. It’s about transforming neglected spaces into vibrant, productive areas where people can grow their own food and come together outdoors for community events.”

The Wills Group won’t just be investing money in the community garden— its team will also be hands-on with its creation. Dash In and Wills Group employees will be volunteering to build garden beds, plant seeds, landscape and harvest crops.

While the market is set to open later this year, the community garden is currently projected to open later in 2025.

Alexander noted that as Dash In continues to open stores in the area, it will be open to exploring further opportunities with Oasis Fresh Food Market: “We see our sites and Oasis Foods Market as partners and as part of a bigger picture. Together, we’re working to find innovative solutions to meet the community’s needs.”

33 STATE SERVICE AREA

CONVENIENCE CARES

In The Community

Every year, the convenience retail industry dedicates billions of dollars to advancing the futures of individuals and families in our communities. The NACS Foundation unifies and builds on NACS members’ charitable efforts to amplify their work in communities across America and to share these powerful stories. Learn more at www.conveniencecares.org

YESWAY SUPPORTS LOCAL COMMUNITIES AFTER WILDFIRES

1 Yesway donated $100,000 to the New Mexico areas in and around Ruisoso that were tragically impact by catastrophic wildfires over the summer. As reported by the Las Cruces Sun News, the South Fork Fire, which started on June 17 inside the Lincoln National Forest and on Mescalero Apache Tribal lands, and the Salt Fire, which burned in southern New Mexico, consumed nearly 23,000 acres within a day.

Yesway and Allsup’s invited its customers, fans, friends and supplier partners to join the effort and donate as well. Through the roundup campaign, the company reached its goal of $200,000 for the affected communities.

CUBBY’S TEAMS UP WITH THE SALVATION ARMY

2 Cubby’s once again partnered with The Salvation Army 7 Can Help Kids Back to School Backpack Program. Customers were invited to drop off unused school supplies and new backpacks to participating Cubby’s locations or contribute to the cause through monetary donations. The backpacks were distributed in August.

Since the program started in 1998, more than 240,000 backpacks have been donated and given to a local child.

LITTLE GENERAL STORES RAISES MONEY FOR CANCER

3 Little General Stores hosted a fundraiser to raise money for cancer care in West Virginia. The event, an “Evening with Bob Huggins” (college basketball hall of fame coach), raised $100,000 at the reception and dinner. The Norma Mae Huggins Cancer Endowment Fund was established by Coach Huggins in his mother’s name to support cancer care and research across West Virginia.

Additionally, Little General Stores helped raise funds for WVU Medicine Children’s Hospital at annual legends weekend. Over $24,000 was raised at the golf tournament’s kickoff event. Along with team members who attended, the company donated

tumblers that were gifted to all golf participants.

TA OFFERS VETERANS AND ACTIVE MILITARY JULY FOURTH DEAL

4 TravelCenters of America gave a complimentary meal to active-duty military, veterans and reservists on the Fourth of July at participating TA, Petro and TA Express restaurants nationwide. The company also set up Fallen Soldier Tables at some restaurants. The display, which included a single place setting at an empty table, was meant to demonstrate “the sacrifices of those who gave their lives to protect our freedom.”

STEWART’S SHOPS HOSTS 9TH ANNUAL GIVE A PINT, GET A PINT

5 For the ninth year in a row, Stewart’s Shops teamed up with the American Red Cross of Eastern New York for a blood drive in June. The Give a Pint, Get a Pint event rewarded blood donors with a gift certificate for a pint of Stewart’s ice cream or gelato in thanks for their donation. The event attracted 812 first-time donors and collected enough blood donations to help nearly 27,600 patients.

SNAP Into Action: Get Ready for the Transition to EBT Chip Cards

Seeking to make SNAP and EBT more secure, states are preparing to adopt EBT chip cards. Retailers should start preparing now.

BY MARGARET HARDIN MANNION

This transition is moving fast in some places and could lead to system failures if retailers haven’t done the work to be ready.”

The Supplemental Nutrition Assistance Program (SNAP) has undergone significant modernization efforts since its creation in the 1960s—including the introduction of Electronic Benefit Transfer (EBT) payment cards in the 1980s to replace paper vouchers and coupons. EBT payment cards allow an individual on SNAP to purchase eligible food items at authorized retail stores, such as a convenience or grocery store.

When they were introduced, according to USDA, EBT cards helped cut back on food stamp fraud by creating an electronic record of each food stamp transaction, making it easier to identify any violations. The rate of trafficking (such as trading food stamps for cash) went from nearly 4% in the 1990s down to 1% after EBT was fully implemented

Recently, however, there have been prominent reports in the media about a new type of fraud that has emerged within SNAP: EBT skimming. As criminals exploit the vulnerability of EBT payment cards, efforts are underway to transition to more secure chip technology.

This transition is moving fast in some places and could lead to system failures if retailers haven’t done the work to be ready for this new transition. All companies should look at where they are in the process of getting ready for EBT chip cards—and may need to work with their state(s) to make sure the states don’t force the transition before retailers are able to support it.

HOW DID WE GET HERE?

Skimming is not unique to EBT cards. For many years, thieves have illegally installed devices on ATMs, point-of-sale (POS) terminals or fuel pumps to capture card data and PIN numbers to make unauthorized purchases or steal from a victim’s accounts. The FBI estimates that skimming costs more than $1 billion each year

With the adoption of microchips and other features like tap technology to make payment cards more secure,

it’s gotten harder for criminals to steal an individual’s debit or credit card information. Instead, they’ve now turned their attention to targeting individuals on SNAP who are already struggling financially.

EBT cards are attractive to bad actors because they can easily access benefit funds. Currently, no EBT cards are chip-enabled (more on this later). In one fell swoop, a criminal can cash out the entirety of an individual’s SNAP and other public assistance benefits right after their accounts receive monthly funding from the state. EBT cardholders do not receive the same level of protection that holders of common credit and debit cards normally do, and as a result, they may not be reimbursed fully or at all for benefits lost to criminals. This, in turn, can add to existing financial hardships.

TRANSITIONING TO CHIP CARDS

In mid-2023, USDA began meeting with food retailers, payments industry stakeholders, anti-hunger advocates and representatives from state and local governments to discuss a transition to chip-enabled EBT cards, called the “Chip Card Industry Forum”. According to USDA, modernizing EBT to include chip cards would be an important step to enhance SNAP benefit protection, because chip cards are harder to copy to steal SNAP account information. At the time of this writing, only two states (California and Oklahoma) are planning for an EBT chip migration, although it is possible that more states will soon follow. California plans to be the first, with a target of implementation by summer 2024.

Sounds straightforward, right? After all, don’t we already have POS systems that can accept chip-enabled credit and debit cards? Unfortunately, it’s not that simple.

Unlike credit or debit cards, each state contracts directly with an EBT processor, such as Conduent or FIS. These processors act as the network between the merchant’s gateway or acquirer and

INSIDE WASHINGTON

the individual states. This closed-loop system uses a different set of specifications than ordinary credit and debit cards, which means that new standards must be written for EBT cards to be able to work with existing chip technology. USDA’s group of stakeholders is currently working in partnership with the Accredited Standards Committee X9 Inc. to create new specifications to accommodate chip cards and update the existing payment standards.

California attempted testing earlier this year by creating production cards with the updated EBT chip specs and trying them out at live retailer locations. The tests were only intended to show that the chip-enabled cards would be able to fall back to magnetic stripe processing, but in their test of 100 retailers and ATMs, roughly 40% of their test transactions failed. Some terminals immediately rebooted, some crashed completely and some entered a so called “death loop” of swipe card, insert card, swipe card and so on.

These results show that many SNAP retailers’ systems may be negatively impacted if they are not chip ready, and SNAP customers may have no other choice but to pivot to another form of payment or abandon their groceries altogether. To date, California has not reported any additional data as a result of more widespread testing of production cards. NACS is concerned that if more time is not given to do state-wide testing, retailers will not be ready to accept EBT chip cards, resulting in chaos in many stores and leaving SNAP customers unable to access their funds to purchase food.

WHAT YOU NEED TO KNOW

The Merchant Advisory Group advises that retailers test their point-of-sale terminals to see how they will react to an unknown application (referred to as Empty Candidate List or ECL), which is what communicates with the chip card.

ONE VOICE Nick Stanley, vice president and co-owner, JJ’s Convenience Stores

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

C-stores are the core, always available stores in our communities—especially small family-owned stores like ours that directly support the community. I am a volunteer firefighter, and volunteer my time on boards and charitable activities in our community. Being a small business owner allows me the flexibility to do those things. We are there to provide great service, food and fuel to people who are going to and from work, activities and home.

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

I am politically engaged because it makes a difference for our business. The relationships that we develop help when legislative issues come up and the representatives know who we are when we call. It is also a great opportunity to build relationships with other members of the association.

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

I wonder what new regulation is going to tilt the scale so much that we can’t keep up. As a small family business, we don’t have big compliance departments so rules that make it difficult to do business could force us out. Credit card fees are also a big concern—especially with how much additional we’re paying in fees to collect and remit taxes for the state and federal governments.

What c-store product could you not live without? Donuts and strawberry milk!

INSIDE WASHINGTON

Merchants should test their payments system to understand how it will be impacted when a chip card is presented and may need to work with their IT teams, acquirers, gateway providers or POS manufacturers to correct any issues.

In California, the state plans to issue cards with dual interface capabilities, meaning they will also be NFC (tap)-enabled. The state of Oklahoma hopes to be right behind California, with plans to issue chip cards in 2025

Given the push for quick adoption, all retailers (especially those in California and Oklahoma) are encouraged to contact their processor or acquirer to request test cards to begin testing internally. If your processor is unable to supply test cards, FIS can provide them directly by contacting EMV.Testcards@ fisglobal.com.

At the time of this writing (early July 2024), California has not yet mailed out its new EBT chip cards, although it continues to maintain that the cards will be issued during the summer. The state also has not yet set a firm deadline for when SNAP retailers’ POS terminals must be upgraded in order to accept EBT chip and tap technology.

NACS and the Merchant Advisory Group hosted a webinar in July for SNAP retailers, during which they gave an update on California and Oklahoma’s transition to EBT chip cards and what retailers need to know to update their payments systems to accept these new cards. For access to the webinar recording or more information about the EBT chip card migration, reach out to Margaret Hardin Mannion, NACS manager of government relations, at mmannion@convenience.org

Margaret Hardin

Mannion is the NACS manager of government relations. She can be reached at mmannion@ convenience.org.

NACSPAC LIST

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

George Abdoo

Imperial Trading Company –S. Abraham & Sons Inc.

Karla Ahlert RaceTrac Inc.

Tony Battaglia Tropicana Brands Group

Brandon Duckett RaceTrac Inc.

Linnea Fohlbrook Noka

John Hill Utah Petroleum Marketers Association

Scott Minton OnCue Marketing

John Peyton Gate Petroleum Company

Darren Rebelez Casey’s General Stores Inc.

Louie Sheetz Sheetz Inc.

Sarah Vilim Keurig Dr Pepper

Ena Williams Casey’s General Stores Inc.

Marie Wise

Imperial Trading Company –S. Abraham & Sons Inc.

Doug Yawberry Weigel’s Stores Inc.

Personal Hygiene & Illness

Cooking Temperatures

Proper Steps for Cooling Foods

Cross Contamination

Inspections & Violations

Date Marking

Scan Me!

BY SARAH HAMAKER

Sultan, who started running Fav Trip with his family when he was 25, draws on his IT background and retail marketing experience to generate buzz about his brand on social media, solve problems and enhance the store experience for both customers and employees.

STICKING TO THE BASICS

The Missouri-based company has four locations: two stores in Kansas City, and one each in Independence and Grandview. All offer 24-hour delivery options, and two locations have drive-thrus.

Fav Trip carries most of the typical convenience store merchandise, from salty snacks and sweets to beverages and tobacco, plus branded deli foodservice with fresh-made sandwiches and salads. However, you won’t find alcohol or lottery tickets.

“We didn’t want to offer beer or wine because it’s our personal preference. We want to set ourselves apart by not including alcohol in our store,” Sultan said. “We are also working toward changing our business model enough that we can ditch tobacco in the future too.”

With his IT background, Sultan uses data as the basis for most business decisions. “Whenever we have to decide about signing a contract with a distributor, we’ll consider the data closely to see whether the products are aligning with what our customers are buying,” he said.

For example, a local coffee company currently fulfills its fresh coffee service, but the Grandview location just started trialing national brand Caribou Coffee. “I’ll look at the data from the pilot program and if it looks good, then we’ll switch all locations to Caribou,” he said.

USING HIS TALENTS

Sultan initially resisted coming to work in the convenience industry. When he and his family moved from New York to Kansas City, his parents leased a convenience store and convinced him to run it for them. “I didn’t want to do it at first,” he said. “Now I love it.”

Like all new ventures, there was a learning curve in the beginning stages. “I was learning on the job as I went along, but now we use NACS resources to help us,” Sultan said.

For example, he said the Good Job Strategy, which NACS helped bring to the convenience store industry, was a gamechanger for him when it came to enhancing the job for employees. “We took a lot of the advice about creating culture and hiring strategies directly from that program,” Sultan said. “It’s been extremely helpful in developing our HR practices, like over-hiring and cross-training.”

One thing that he implemented is a monthly one-on-one meeting between workers and store managers. “We use this time to find out more about how the employee is doing in the job as much as we do to let them know things to work on,” he said. Fav Trip also gives employees financial assistance beyond paychecks if the company learns the worker is struggling with transportation or other personal financial stressors. “We like to help out in those circumstances whenever possible, so they come happy and leave happy at work,” he said.

Sultan combined his IT experience with retail marketing and uses his computer background to fix technology problems at the store, such as register issues. He also likes drawing on his skills to promote the industry. He had dabbled in shooting short videos with an IT buddy on the weekends, so he brought that to Fav Trip by creating mini-movies, including one about a wedding that happened inside a store.

“I also started making these shoplifting videos to have a fun experience around something that costs the industry a lot,” Sultan said. His YouTube channel features videos of shoplifters caught at his stores through live AI cameras. “It’s really lowered shrinkage at our stores, and customers also leave positive comments on our YouTube channel about the videos,” Sultan said.

BRIGHT IDEAS

Babir Sultan, owner of the four-unit Fav Trip chain, taps artificial intelligence to help run his store. “I use machine-learning AI to let me know when to order more products at the right time,” he said. He also uses AI to monitor how long a customer has been waiting in the drive-thru line and how to allocate staff during busy times.

“I met with a supplier through NACS this year and they’re helping me with audio AI so we can know when receipt paper is out at the pump or a bathroom needs cleaning,” Sultan said. “Little annoying things like that make customers not want to come back to your store, and if AI can help us keep on top of those things, then that’s a win for everyone.”

In addition to YouTube, the store has an active Facebook page as well. Sultan has also written a book, Fuel for Success, about his journey of moving to the United States, entrepreneurship and lessons learned from growing the Fav Trip business.

Overall, he strives to provide each customer and employee with a positive experience at Fav Trip. “We want to be a local business that impacts our communities in a positive manner,” Sultan said.

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

Ideas 2 Go showcases how retailers today are operating the convenience store of tomorrow. To see videos of the c-stores we profiled in 2023 and earlier, go to www.convenience.org/Ideas2Go

CHECK IT OUT

Barcodes Enter the Next Dimension

GS1’s Sunrise 2027 aims to bring a wealth of new product information to consumer goods.

BY JOE BEETON

Going by the old adage, “If it ain’t broke, don’t fix it,” it’s hard to imagine why the trusty barcode would ever change. With its simple system of vertical lines printed on all packaged goods, the barcode reliably does what it was designed to do more than 50 years ago: electronically identify every product and its price point with one scan for inventory management and point-of-sale transactions.

Nothing about the barcode necessarily needs to be fixed, according to GS1 US, the not-for-profit data standards organization behind the universal system of identification in the one-dimensional (1D) lines that has been used worldwide for decades .

But that doesn’t mean barcodes shouldn’t be revolutionized. Evolution of the standard is exactly what GS1 US has been working tirelessly on, in close collaboration with industry leaders, in the years-long Sunrise 2027 initiative.

Brought to you by GS1 US

To better serve brands, retailers, manufacturers, distributors, regulatory bodies—and perhaps most importantly, retail customers—GS1 is powering the adoption of two-dimensional (2D) barcodes, such as QR codes, set to be able to be universally accepted at point-of-sale (POS) by the end of 2027. The 2D barcodes will provide everyone in the packaged-goods marketplace with access to more information and product transparency—and in a more seamless way—than ever before.

2D barcodes will unlock a host of new information and features—they can include batch and lot numbers that can alert retailers and shoppers to recall information, provide access to more specific allergen and nutritional data and help with traceability. In addition, they have implications for labor savings down the line.

The effects can be dramatic, and a lot of work has been taking place with both brands and retailers. But there is still a lot more to do. For now, even though 2D barcodes offer many powerful uses, the initiative focuses on building the capability to accept 2D barcodes at point-of-sale systems that currently scan 1D codes. Establishing this foundation will then open a new world of possibilities.

“The transition to 2D barcodes can be a game-changer for c-store operators,” said GS1 US Vice President of Standards Gena Morgan, who has been with the organization for more than 25 years. “With Sunrise 2027, 2D barcodes won’t just provide price lookup, they’ll tell a story. When a consumer scans them with a smartphone, they can provide an experience. And for retailers, they offer a set of powerful, new capabilities.”

A SMOOTH TRANSITION

QR codes—which became more widely adopted during the pandemic—are among myriad types of 2D barcodes that will come into greater use in the transition. 2D barcodes powered by GS1 Digital Link can contain web links, meaning that they provide access to information almost as limitless as the Internet itself.

Players along every link of the supply chain, including retailers, will scan the 2D barcode similar to the way they have always scanned

barcodes, and they’ll get the necessary Global Trade Item Number® (GTIN®) as if they scanned the universal product code (UPC) or international article number (EAN) for price lookup. “The information from the UPC will still be embedded in the 2D code, and it will still go beep at the register,” said Morgan.

In a nutshell, Morgan said, “the 2D barcode builds on the standard identification from the original UPC, but opens the door to a world of other useful product information that will prove crucial to the market. That matters because consumers, regulators and supply chains need more information and at a more granular level.”

THE NEXT LEVEL

So what type of information are we talking about?

Take the expiration date, for example. “Now, a barcode can identify the brand and size of a carton of milk. But when 2D barcodes have the expiration date encoded in them, you’ll know which cartons of milk from the same brand are set to expire without having to find and read smudgy printing,” Morgan explained. “Then, retailers can effectively rotate stock and prevent the consumer from walking out of the store with a product that might go bad.”

In addition, including batch and lot numbers in 2D barcodes could make it easier for consumers, brands and retailers to respond confidently, and with precision, to a food safety issue, such as a recall. Having this information in a machine-readable format means only impacted units could be pulled from shelves, rather than throwing out the entire stock of that product.

A 2D code can also identify product origin. It can link to a product certificate and its data, as well as safety instructions, more complex nutritional data, allergen information and other ingredient disclosures, and more.

That deeper level of info benefits consumers, who are increasingly seeking a breadth of information about what they buy.

Nearly 80% of consumers polled in a recent survey conducted by GS1 US said they are “more likely to purchase products with a smartphone-scannable QR code that provides

Consumers, regulators and supply chains need more information and at a more granular level.”

GS1 US Vice President of Standards Gena Morgan

Give This a Scan

To help you get ready for the Sunrise 2027 transition to 2D barcodes, GS1 US offers helpful resources including guides for how to get started, workshops and test kits to evaluate your systems.

• Get Ready for Sunrise 2027: additional information to learn about the transition.

• Workshop: The 2D Barcode Transformation and How to Prepare: this two-part workshop taking place September 17 and 24 will be led by industry experts.

• Evaluate Your System, Get Your Test Kit: this test kit will help you evaluate your current system and asses its readiness to support 2D barcodes.

• Point of Sale (POS) Getting Started Guide: this guide aims to walk you through the considerations and implications of utilizing an advanced data carrier at point-of-sale.

Learn more at www.gs1us.org/sunrise2027

the additional product information that they would want to see,” and 62% said they would even spend more money on products that make that information available. The information they are seeking includes data like country of origin, allergens, materials and ingredients, safety information and recall alerts.

Brands and marketers already deeply understand the power of the QR code, Morgan noted. All throughout a supermarket, for example, you’ll find CPGs with QR codes on the packaging, which link to recipes or a narrative about the brand.

“The [Sunrise transition] aims to marry the capability of the UPC code and the 2D code, which allows the brand to save space on a package. As long as they do all of this in a standardized way, brands and retailers can reap the benefits of the new capabilities, while minimizing disruption to current processes, especially at POS. It can also be a big opportunity for differentiation,” Morgan said.

UNLOCKING FUTURE POTENTIAL

Convenience retailers could leverage the power of QR codes with their loyal customers’ use of their store applications, Morgan noted, “allowing them to provide coupons, learn more about shoppers’ preferences based on how they interact with the product and offer a more personalized experience for their shopper.”

Pricing could also get a lot more dynamic, with retailers using real-time information about a product, such as automatically discounting it when it’s approaching an expiration date. Eventually, operators will be able to link information associated with individual product QR codes with digital shelf labels.

The move to 2D barcodes offers labor savings as well, Morgan continued. “An employee won’t have to spend time going through the store picking up individual items looking to see if they are about to expire.” Operators will “be able to better manage products so that what’s first-in is first-out.”

Two-dimensional barcodes also offer much more resilience to damage than the UPC. QR codes, for example, are equipped with four error correction levels, which means that even if the label is damaged, it can often still be read correctly.

As John Phillips, the senior vice president of customer supply chain and go-to-market for PepsiCo put it in a video for GS1 US, “The amount of information a consumer is seeking is expanding. It’s not contracting. If you’re not yet engaged in this conversation [about the move to 2D barcodes], the time is now.” Phillips used the example of including the definition of every single ingredient of a product and why it’s included in that particular product. “Think about trying to physically include that on a product package,” he said. “It would be impossible.”

In a digital world, he added, “The power is in the suppliers’ hands to notify consumers instantly,” whether it be about recall information, allergens or other key updates consumers need. “I have a digital activation on every package ... I can now instantly provide information to the consumer digitally. All of that is now possible with a single 2D barcode on a package.”

Have

Inviting dining areas allow c-store customers to take a break while operators build baskets.

BY TERRI ALLAN

aSeat

onvenience stores continue to become major destinations for consumers in search of top-notch food and drinks. At some stores, like Fuel City in Texas, amenities such as comfortable indoor and outdoor seating areas—complete with heaters and fans—have taken the c-store dining experience to a whole new level.

“We recently hosted a wedding rehearsal dinner on the patio of our Wylie store for a bride who loves our tacos,” said Fuel City CEO Joseph Bickham. With a growler bar and the ability to seat up to 30 guests inside and another 30 outside, the store “has a fun atmosphere,” Bickham explained. “Guests like to stay and hang out.”

Indeed, as c-stores have evolved, seating has become more common. Since opening its first store in Plymouth, Massachusetts, five years ago, Global Partners’ Alltown Fresh concept has installed both indoor and outdoor seating where it can.

According to Kristin Menconi, senior retail marketing manager, “Alltown Fresh guests enjoy being able to sit down and relax at our locations.” All 16 units offer some interior seating space and 11 have outdoor seating. “Our locations are in New England, so once the warmer months arrive, guests very much appreciate our outdoor areas. It’s a unique attribute to offer both indoor and outdoor seating at convenience stores,” she said, and the retailer plans to continue the option at all stores moving forward.

Across the country in Seattle, two-unit Cone & Steiner has had indoor and outdoor seating “from day one,” owner Dani Cone said. “We designed the stores to include indoor and outdoor seating as we serve beer, wine, coffee and food items.”

For a small corkage fee, customers can drink their purchased alcoholic beverages on-site, Cone explained. “Having seating is an important part of our model, and we intentionally designed the stores to have a ‘thirdplace’ component.”

With stores in Maine, New Hampshire, Massachusetts and Rhode Island, Rusty Lantern Markets is another c-store operator that has offered both indoor and outdoor seating since its inception. “We wanted to give our customers a place to sit and relax while they enjoyed a meal or cup of coffee, to meet with friends in the morning, grab a quick bite for lunch or dinner, or to stop for a bite while they worked,” explained John Koch, manager and CEO of the chain.

With seating that can accommodate up to 25 guests, Rusty Lantern’s seated spaces include stone-faced indoor and outdoor fireplaces, table and lounge-chair seating options, and firepit table seating with Adirondack-style chairs. “Seats are regularly occupied and people appear to be enjoying themselves,” Koch said.

THE ‘THIRD PLACE’

“Starbucks popularized the ‘third place,’ with lots of seating options years ago,” remarked Joseph Bona, president, Bona Design Lab, a retail design consulting firm. “As foodservice in c-stores continues to get better and better, in-store seating could become a bigger consideration.”

But operators need to be aware of other trends before investing heavily in seating. Quick-service restaurants are serving more consumers via drive-thrus these days than in store, so for them, “seating isn’t as important as it once was,” Bona said. At the same time, some convenience retailers don’t want to infringe on valuable parking space. “Operators must figure out the right balance for offerings, including parking and in-store seating,” Bona advised.

Austin Burns, director of sales and marketing at Paragon Solutions, a retail design firm that specializes in c-stores, added that

“Guests like to stay and hang out” at Fuel City locations.

Customers don’t feel like they’re at a convenience store.”

food offerings should lead the consideration of customer seating. Signature items that may require two hands to consume warrant seating, he explained. Fuel City’s tacos, for example, lend themselves to a seated-dining experience.

“We’re a food-forward concept,” said Bickham, “so it makes sense to have seating. Customers don’t feel like they’re at a convenience store.”

The situation is much the same at Rusty Lantern. “Having freshly made food and specialty drinks encourages people to stay on-site,” explained Koch, pointing to items like Rusty Lantern’s fresh-made lobster rolls, lobster mac-and-cheese, lobster salad and lobster quesadillas.

For some c-stores, outside seating can be more attractive than in-store, possibly because it’s a smaller investment, noted Bona. “If there’s an underutilized area that can’t be used for parking, why not?” he asked. “A few tables, chairs and umbrellas are all that’s needed.” He and Burns agreed that if the outdoor space is attractive, it can provide a halo effect on a c-store. “Outdoor tables signal on the outside that there’s something to eat on the inside,” Bona said.

But outdoor seating can provide several challenges for c-stores. Weather, safety and maintenance can be drawbacks for outside seating, according to Mike Hamzeh, general manager at one of the two Duke’s Travel Pla-

za locations in Texas, which offer both indoor and outdoor seating. “Weather conditions— heat, cold, rain or snow—affect customer comfort,” he explained, so the spaces may see limited usage. “Maintenance and upkeep of outdoor furniture and facilities” is also necessary, Hamzeh said, as is “ensuring safety and security for customers in an outdoor setting.”

LOYALTY BUILDER

Whether the seating is outside or inside, c-store operators agree that the amenity helps provide a pleasant experience for customers and can draw them back again. “Our seating gives people a place to meet up with friends or business associates,” said Rusty Lantern’s Koch. “The seating lends itself to the social experience—get out into the community, grab a cup of coffee or visit with neighbors.”

At Duke’s, meanwhile, with seating for more than 80 customers in its food court, “climate-controlled seating areas provide a comfortable escape from extreme weather conditions,” Hamzeh noted. In addition to free Wi-Fi, Duke’s Travel Plazas also feature charging stations and entertainment options for customers.

The benefits of seating for c-stores range from larger basket spends to competitive advantages and enhanced customer loyalty. “Customers stay longer, so it expands the

FOOD FOR THOUGHT

For c-store operators who may be considering customer seating, Bona and Burns agree that it’s best to include seating with a new store build instead of adding it later. “Don’t look at it as an adjunct, such as if you have dead space in the store and decide to add a few tables,” Bona said. Rather, the design should be thought out.

“It doesn’t have to be Starbucks, but the seating should be thoughtful,” he advised. “Avoid having the seating in the middle of the space. You want the store to be the hero.”

Consider what your brand statement is.”

basket,” remarked Fuel City’s Bickham. He added that seating can also boost a daypart, such as the evening hours, when traffic might otherwise be slow.

“Offering indoor seating sets our business apart from competitors,” noted Duke’s Hamzeh, “making it a preferred stop for travelers.” Seating is also a way to show a level of commitment for customers and to build loyalty. “Providing a welcoming space fosters a positive impression, positive word-of-mouth support, and encourages loyalty and repeat visits,” he added.

But just as with outdoor seating, indoor seating comes with considerations. Bickham pointed to capital expenditures and the required space. “Every square foot must deliver, and with 2,000 square feet devoted to seating, it’s not directly generating revenue. You’re not selling anything within that space,” the Texas retailer noted. Bickham, Cone and Hamzeh all cited the maintenance and labor required to service dining areas of their stores. “We try to be lean and efficient with labor,” but indoor seating requires upkeep, Bickham said.

Hamzeh added that “the potential for loitering or disruptive behavior” can also be a challenge of c-store seating. Indeed, according to Bona, some c-store operators are “anti-seating. They don’t want people lounging. They don’t want to have to worry about tables turning, but rather parking spots turning.”

When it comes to furniture, Bona suggested, “give consumers options with different types of tables, both counter height and bartop height, as well as the ability to add chairs to a table.”

He also said retailers should consider adding outlets to power devices, and only use commercial-grade furniture, “not furniture meant for the home. It needs to stand up to abuse.” For that reason, he recommends against using fabrics, but rather materials that are easy to clean. For example, Bona noted that vinyl seat coverings are good for seating areas due to their cleanability and durability, and they also come in wide variety of colors and patterns.

The two design experts also agree that lighting in the space can’t be an afterthought. “Lighting is a part of the ambiance,” said Bona. “You don’t want cafeteria grade. You want people to be able to feel relaxed.”

Most importantly, the decision to include customer seating must complement the brand. “Consider what your brand statement is,” said Burns. “What do your customer demographics suggest? How do you differentiate from the competition?”

Indoor and outdoor seating may not work for all c-stores. “Stay true to your brand,” Burns said. “Don’t force it if it doesn’t make sense.”

Terri Allan is a New Jerseybased freelance writer, specializing in consumer products and retail channels. She can be reached at terri4beer@aol.com

Fuel City offers indoor and outdoor seating.

Conference: October 7-10

Expo: October 8-10

Las Vegas Convention Center

Developed by retailers for retailers, this year’s NACS Show features 50 unique learning opportunities.

The NACS Show

returns to Las Vegas this fall, where more than 24,000 industry players will converge to network, explore new products on the 430,000-square-foot expo floor and have some fun, too.

But the NACS Show isn’t just a place to network and check out the coolest new products—it also gives you the opportunity to ignite your learning with 50 Education Sessions designed by your industry peers.

This year, attendees can expect a robust lineup of sessions, trainings and interactive workshops that address a variety of industry hot topics and issues, ranging from the ins and outs of category management to developing loyalty to frontline labor solutions and more. Be sure to check out NACSShow.com for updates.

CATEGORY MANAGEMENT

Emerging Trends in the Tobacco Industry

Tuesday, October 8 at 8:00-9:00 a.m.

In this session shaped for category managers and operations professionals, we’ll explore how retailers have adapted their back bar with insights into the unique challenges of managing stores in areas affected by tobacco flavor bans. Learn more about the complexities of maintaining a consistent category assortment across diverse locations, as well as how to sustain profitability in the face of regulatory challenges.

Essential Do’s and Don’ts in Category Management

Monday, October 7 at 12:00-1:00 p.m.

Unlock the keys to successful category management by attending this session designed for new category managers and marketers. Learn the top three do’s and don’ts that can make or break your company’s strategy, from leveraging data to staying ahead of industry trends and optimizing product assortment. Don’t miss this opportunity to elevate your category management skills and drive in-store sales.

Convenience Store Feud: A Game Show Experience

Wednesday, October 9 at 9:15-10:15am

Think you know what the survey said? We asked 100 people about convenience retail to create a fun and interactive game show experience. You can watch or play along as attendees guess how consumers responded to a variety of questions about the industry. You’ll learn, laugh and potentially walk away as the winner in this fun look at what consumers think about our industry.

Expanding the Power of Private Label

Wednesday, October 9 at 9:15-10:15 a.m.

Private-label products offer a unique opportunity for differentiation and building brand loyalty. Hear retailers discuss the latest trends in private label, consumer insights and success stories. Whether you’re a retailer looking to enhance your private-label strategy or a supplier seeking to collaborate with retailers, this session will help you unlock the full potential of private-label programs.

Pack Bev Blueprint: Optimizing Space, Trends, Pricing and Promotions

Wednesday, October 9 at 8:00-9:00 a.m.

This comprehensive deep dive into the packaged beverages category will start with current research and trends, followed by initiatives and tactics from multiple retailers to energize the category and increase sales. Through this quick ignite format, participants will gain actionable ideas to fine-tune their product assortments, capitalize on trends and implement effective pricing and promotion strategies.

Rx

for Winning the Drug Channel

Shopper

Wednesday, October 9 at 9:15-10:15 a.m.

As consumer shopping patterns continue to evolve, it’s essential for retailers to adapt and enhance their offerings to meet the diverse needs of their customers. Designed for retailers in merchandising and operations roles, this session will uncover the key trends, consumer insights and practices that are shaping the drug store landscape that can be translated to convenience. Don’t miss out on this opportunity to gain a competitive edge and unlock the secrets to winning over health, beauty and pharmacy customers.

Strategies for Boosting Your Alcohol Category Performance

Tuesday, October 8 at 9:15-10:15 a.m.

As consumer preferences change for beer, wine and spirits, knowing how to navigate emerging opportunities is essential for continued success. Join us for a masterclass session on how industry experts identify key trends and create actionable tactics that help their businesses navigate this evolving landscape. Session speakers will offer insights on driving success in this competitive market. Both retailers and suppliers will find value in the knowledge and insights shared for thriving in these key categories.

Sweet Success: Maximizing Candy Sales for C-Store Shoppers

Monday, October 7 at 2:30-3:30 p.m.

Candy is a top 10 in-store category. We’ll uncover the latest research and metrics to help guide your candy aisle with a focus on patterns and demand, generational insights, seasonal engagement, technology and social media. This session is geared towards candy retail buyers and distributors, confectionery manufacturers and brokers with clients in confectionery.

Winning Against Dollar and Discount Stores

Monday, October 7 at 1:15-2:15 p.m.

Explore tactics to differentiate your offerings, enhance customer experiences and drive profitability in the face of fierce competition. Whether you’re a small retailer or a major chain, discover how to stand out among your dollar and discount store competitors, attract customers and achieve sustainable growth. With practical insights and real-world examples, this session equips you with the tools to emerge victorious.

CUSTOMER EXPERIENCE

Accelerating Growth Through Strategic Partnerships

Monday, October 7 at 12:00-1:00 p.m.

Although pricing and supply chain issues have created challenges for retailers and suppliers, the foundation of success remains rooted in shared objectives, trust, transparency and open communication. Nurturing these relationships ensures future success through collaboration and adaptability. Designed specifically for those embedded in retailer-vendor relations, this session has actionable strategies for navigating turbulent waters and ensuring a stronger and enduring partnership.

Global Retail Innovations from Around the World

Monday, October 7 at 1:15-2:15 p.m.

This session traverses continents to uncover pioneering strategies, unique ideas, disruptive technologies and visionary concepts that are transforming the global convenience retail landscape. From store design to digital experiences, we’ll share examples of the latest trends and emerging retail concepts to help guide your company and how you can apply them.

Spilling the Tea on Gen Z

Monday, October 7 at 12:00-1:00 p.m.

Join us as we discuss the unique characteristics, preferences, values and behaviors of Gen Z (those born between the late 1990s and 2014). We’ll explore effective hiring practices, workplace engagement strategies and innovative marketing techniques tailored to this diverse and digitally savvy generation. Whether you’re seeking to attract top Gen Z talent or capture this demographic’s attention at stores, this session offers tips to help you succeed.

FOODSERVICE

Foodservice Failures

That Lead to Innovation

Tuesday, October 8 at 8:00-9:00 a.m.

Embark on a journey through innovation in the foodservice industry, uncovering the stories behind transformative successes and the lessons learned from failures. This session is made to order for foodservice professionals seeking insights into how innovation impacts customer loyalty, shopper perception and the bottom line.

Innovating Your Foodservice With Equipment and Packaging

Tuesday, October 8 at 9:15-10:15 a.m.

Discover the newest trends retailers and QSRs are adopting, from cutting-edge equipment to innovative packaging solutions that enhance convenience and efficiency. Explore topics such as to-go and curbside, and effective hot and cold merchandising techniques that optimize customer satisfaction.

Protecting Consumers and Your Brand With Food Safety Basics

Wednesday, October 9 at 8:00-9:00 a.m.

Two retail leaders will share the common violations and key data necessary to help protect customers, your teams and your brand. During this session, designed for those in food safety, foodservice, risk management and quality assurance roles, learn firsthand from both a multi- and single-operator as they provide insights on preparing for inspections and navigating the larger regulatory landscape. Don’t miss this opportunity to enhance your understanding of food safety risks and compliance.

Sustainable Practices in Controlling Food Service Waste

Tuesday, October 8 at 9:15-10:15 a.m.

Through innovative and sustainable practices, we can significantly reduce the environmental impact of food service operations while benefiting the bottom line. This session is for store owners, store managers and operation managers and other loss prevention experts vested in controlling dollars lost through food programs.

Transforming Your Menu Like a Restaurant

Monday, October 7 at 1:15-2:15 p.m.

We all know food is the future of convenience, but how do we scale our menus to meet the needs of diverse customers? Hear from restauranteur Stafford Shurden on the hundreds of convenience stores he has visited and reviewed, and what it has taught him about food menus. Designed for those in foodservice or operations, Shurden will share the good and the bad when it comes to the stores he has seen in our industry, and what you can do to elevate your menu.

Winning the Dinner Daypart

Monday, October 7 at 2:30-3:30 p.m.

According to Food Genius, 80% of Americans don’t know what they are having for dinner by 4:00 p.m. They also don’t particularly enjoy making dinner, which is an opportunity for convenience retailers to grow their food business and gain a bigger share of the dinner daypart. In this fast-paced session, explore strategies and tactics to attract and retain customers during the evening, transforming c-stores as a destination for dinner. Designed for retailers aspiring to grow their dinner daypart business, attendees will explore consumer insights and market trends shaping dinner habits.

FUELS

Charging Your Profits With EVs

Tuesday, October 8 at 8:00-9:00 a.m.

As demand for EV chargers expands, how do retailers make money on their infrastructure investment? Designed for those working in fuels, finance and overall operational strategy, this session will address the current business prospects of EV charging and equip operators to be more knowledgeable in their strategy to develop their alternative fuels business.

Determining Your Fuel Mix

Monday, October 7 at 12:00-1:00 p.m.

As the transportation market and related legislation undergo rapid changes, fuel retailers need to anticipate the evolving needs of their customers and adapt accordingly. This session, designed for retailers in fuel operations, will focus on identifying strategies and positioning that will enable retailers to serve their customers’ mobility needs successfully through fuel, without complicating the marketplace.

FMN Fuel Marketers of the Year

Wednesday, October 9 at 8:00-9:00 a.m.

Join us for a conversation with the large format and small format fuel retailers of the year. These esteemed retailers were selected by our Fuels Market News Advisory Board for their strength and prominence in fuels retailing throughout a turbulent year. Listen to how they navigate current challenges and hear about their plan for navigating the future of fuels.

Watts Ahead for EV Charging

Tuesday, October 8 at 9:15-10:15 a.m.

Join this session, designed for those in fuels and operations, to discuss the realities of consumer adoption of EVs and the implications on the demand for chargers. The panelist will help retailers demystify hype versus reality and identify the early adoption signals that improve charger site selection and timing.

GOVERNMENT RELATIONS

Election Update

Tuesday, October 8 at 9:15-10:15 a.m.

Join esteemed political analyst Jim Ellis and the NACS government relations team for an in-depth preview of the 2024 elections. This session will cover key federal House and Senate races, gubernatorial contests and the presidential election. Don’t miss this opportunity to gain valuable insights into how the elections might shape the future legislative and regulatory landscape for your business.

HR AND LABOR

Reigniting Passion in Disengaged Employees

Monday, October 7 at 1:15-2:15 p.m.

It’s essential to recognize when employees are disengaged and take proactive steps to reignite their motivation and commitment. Attend this session to discover how to recognize the signs of disengagement and tap into your employees’ strengths and motivations to boost performance.

Retaining Your Frontline Through Manager Development

Monday, October 7 at 2:30-3:30 p.m.

This session is purpose-built for business owners, HR professionals and operations staff, and will explore the link between frontline staff retention and effective manager development. The speakers will discuss strategies and practices for nurturing and empowering store managers to become effective leaders and mentors. From leadership training and skill development, to fostering a culture of recognition and support, attendees will gain actionable insights to enhance manager capabilities and drive employee engagement.

Revamping Training and Development Strategies for C-Stores

Wednesday, October 9 at 8:00-9:00 a.m.

Join us for a compelling case study that showcases a retailer’s innovative training program that encompasses seamless onboarding, operational accountability and tangible results in turnover reduction and employee retention. Our speaker will unveil this cutting-edge approach, which is tailored to the evolving needs of the convenience industry. This session is designed for those in HR and operations.

Top 10 Essential Skills for Recruiting in 2025 and Beyond

Tuesday, October 8 at 8:00-9:00 a.m.

Frontline jobs in a convenience store are complex. As the recruitment landscape continues to evolve, staying ahead requires a comprehensive understanding of the skills and competencies that are most valuable in today’s competitive job market. Whether you’re a seasoned recruiter or new to the field, join us for actionable insights that can help you drive success in talent acquisition.

MARKETING

Building Brand Trust Through Effective Crisis Management

Monday, October 7 at 1:15-2:15 p.m.

Savvy retailers leverage storytelling to reinforce integrity, cultivate trust and foster loyalty during turbulent times. Learn from an industry leader who is an expert at crisis management as they share how to navigate challenges with grace and fortitude. Hear real-life examples and learn to strengthen your brand’s resilience and trust within the community. This session is designed for owners, operators, marketers and those who communicate their organization’s brand story.

Crafting Irresistible Promotions for Maximum Impact

Tuesday, October 8 at 8:00-9:00 a.m.

Through real-world examples of successes and failures, gain visibility into what drives maximum impact for promotions. Dive into actionable metrics and how-to’s, empowering you to create messages that captivate your audience. Whether you’re a marketer, category manager or business owner, this session will equip you with strategies to stand out in today’s competitive retail landscape.

Digital and Physical Marketing Strategies for Smaller Retailers

Tuesday, October 8 at 9:15-10:15 a.m.

From leveraging digital platforms to mastering traditional methods, discover how to attract and retain customers both online and offline. Gain practical insights and actionable tips to boost your visibility and sales in today’s competitive retail landscape. Whether you’re just starting out or looking to enhance your existing marketing efforts, this session will provide the tools you need to thrive.

Harnessing the Power of Retail Media in the Convenience Store Industry

Wednesday, October 9 at 8:00-9:00 a.m.

In an era where retail media is set to exceed $100 billion by 2027, convenience store chains are uniquely positioned to capitalize on this booming market. Their dense store networks and high purchase frequency make them ideal for leveraging retail media to drive value for consumers, advertisers and their own economics. Join us for an insightful session on

the rapid growth and potential of retail media, featuring a dynamic panel with leading retailers from various-sized chains. We will explore how c-stores can focus on first-party data, create valuable advertising inventory and build robust retail media strategies. Learn how to transform your convenience store chain into a retail media powerhouse, attracting new revenue streams and enhancing customer engagement.

Loyalty Isn’t an App, It’s an Outcome

Monday, October 7 at 2:30-3:30 p.m.

This session, designed with marketing professionals in mind, will challenge conventional notions of loyalty and unveil strategies to cultivate genuine customer loyalty beyond transactional interactions. In today’s crowded marketplace, simply offering a loyalty program or app isn’t enough to build lasting customer connections. Our speakers will explore the deeper drivers of loyalty, including personalized experiences, exceptional service and emotional engagement.

The Future of Loyalty

Wednesday, October 9 at 9:15-10:15 a.m.

From traditional scratch cards to today’s digital, multi-platform initiatives, we’ll delve into the transformative journey of retail loyalty programs. Gain insights into crafting authentic loyalty experiences that go beyond discounts and rebates, ensuring your brand stands out in a competitive landscape. Discover innovative strategies for maximizing customer engagement and loyalty in the modern retail era.

Unlocking Executive and Enterprise Value with Generative AI

Wednesday, October 9 at 9:15-10:15 a.m.

In this marquee session, we will discuss the purpose of generative AI in achieving value capture and value creation for your organizations. We will update you on the latest outcomes that generative AI has achieved, provide the most common use cases we’ve seen in action from generative checkout, generative pricing, and the automation of some roles and large system automations that are changing organizations completely. Led by an expert in AI from Kellogg School of Management, this session is designed for executives to leverage a process to transform their organizations and unlock value with AI, and defines the basics of AI and showcases practical applications. Join us to unlock AI’s potential for your organizations.

OPERATIONS

Breaking Down the Latest State of the Industry Data

Monday, October 7 at 12:00-1:00 p.m.

In this data-driven session, attendees will gain an extensive analysis of top performance metrics gleaned from proprietary NACS State of the Industry data. This session will deliver a comparative assessment of the industry’s financial health, operational efficiency and overall effectiveness, as well as opportunities for improvement. By leveraging NACS data, attendees will walk away with a deeper understanding of how to make informed strategic decisions and propel their companies toward greater success.

Creating a Safe Store Environment for Employees and Guests

Tuesday, October 8 at 8:00-9:00 a.m.

In this session, convenience retail loss prevention and risk experts will share strategies that they have successfully implemented to address safety concerns in their stores and on their forecourts. From doing what you can to control the store environment, working with law enforcement and the greater community and prioritizing risks, the two retail experts will provide multiple ideas to make small and big changes that can affect your bottom line, as well as customer experience and employee culture in your stores.

How Inflation Is Changing Consumer Shopping Habits

Monday, October 7 at 1:15-2:15 p.m.

As consumers try to stretch their dollars and meet their shopping wants and needs, understanding the trade-offs being made is essential. Led by an industry expert, this session will provide actionable insights for retailers and suppliers who are looking for guidance in understanding and adapting to the new consumer mindset in an inflationary environment. Don’t miss this opportunity to stay ahead of the curve and learn how to thrive in an ever-changing retail landscape, whether you are a retailer or a supplier.

Improving Synergy Between Merchandising and Operations

Wednesday, October 9 at 8:00-9:00 a.m.

Seamless coordination between merchandising and operations is essential for driving profitability and delivering exceptional customer experiences. In this “Newlywed Game” style session, three retailers will team up—merchandising vs operations to see where they are aligned and where more work is needed. From inventory management to store layout and customer engagement strategies, this session will deliver unique perspectives on organizational success.

Learning From Your Peers: Common Pitfalls in Remodels and New Builds

Monday, October 7 at 12:00-1:00 p.m.

Can drive-thrus help with sales? Do you need dedicated parking for mobile orders? How much space should you dedicate for cooler doors? What about touchless bathrooms? The lessons learned from others can help ensure your construction dollars and business disruptions are worth it. This session is designed for store owners and operations managers.

Strategies for Increasing Workforce Efficiency and Retention

Tuesday, October 8 at 9:15-10:15 a.m.

Utilizing technology to reduce administrative tasks, offering comprehensive training and fostering a supportive workplace culture can help ensure that employees remain engaged and committed, despite the allure of similar jobs with similar pay. This session is tailored for professionals in operations, HR, c-suite or managerial roles who are looking for new strategies for retaining talent and optimizing workforce performance.

SUPPLIER

Convenience Connect

Tuesday, October 8 at 9:00-10:30 a.m.

Convenience Connect is an opportunity for our newest NACS supplier members to meet and learn from our most influential convenience retailers. During this 90-minute roundtable, retailers representing a range of store sizes will host small groups of new suppliers to discuss industry topics relevant to their stores. Groups will rotate every 15 minutes to hear perspectives from other retailers. At the end of the second rotation, participants will continue informal conversations over light refreshments. Learn what’s top-of-mind for your customers and how you can help them improve their businesses.

PROFESSIONAL DEVELOPMENT

Connect for Success: The Steps to Influence

Monday, October 7 at 1:15-3:30 p.m.

This workshop is designed for those who want to enhance their communication skills with persuasive and positive methods. Attendees will gain insights on active listening, building rapport and emotional EQ. Attendees will also learn how to employ perspective variance and third-party intermediaries. We’ll cap this session with the incredible story of how retired FBI Special Agent Kyle Vowinkel persuaded the Boston Marathon bomber to surrender.

Ideas in Action: Solutions From the Front Line

Part 1: Wednesday, October 9 at 8:00-9:00 a.m.

Part 2: Wednesday, October 9 at 9:15-10:15 a.m.

The NACS Leadership for Success Program brings the brightest industry supervisors together to develop their personal leadership skills and become better leaders. For the past five months, the participants have been working on reducing turnover, increasing employee engagement and developing store managers by creating plans, setting goals and tracking their progress. They are ready to share the results! Hear what worked (and what didn’t) as they sought to develop and strengthen their teams.

Women in Convenience: Navigating Leadership Paths and Driving Success

Wednesday, October 9 at 9:15-10:15 a.m.

Decades of studies show that having women in leadership positions helps increase productivity, enhance collaboration, inspire organizational dedication and improve fairness. If you are looking to advance your career—or support the development of leadership diversity in your organization—don’t miss this session with female industry leaders who will share strategies for navigating leadership paths, overcoming obstacles and leveraging unique strengths to drive success.

TECHNOLOGY

AI for Everyone

Tuesday, October 8 at 8:00-10:15 a.m.

From automating repetitive tasks to augmenting human capabilities, artificial intelligence has the potential to transform the convenience industry and the way we work and interact with technology. Whether you’re a seasoned professional or exploring the world of AI, this session will provide valuable insights on how AI can be harnessed to drive innovation and efficiency in your organization.

A New Dimension in Barcodes?! Preparing for Sunrise 2027

Monday, October 7 at 2:30-3:30 p.m.

The current UPC barcode is going away. Are your systems and stores ready for this next industry transformation to the new 2D GS1 Digital link? Learn how these new capabilities will transform consumer engagement, enable new retailer use cases across the supply chain and enhance digital product data. Don’t miss this exciting and informative session presented by PepsiCo and GS1 that will prepare retailers for the Sunrise 2027 timeline and leverage these new capabilities across their organizations.

Cyberattacks Are Not a Matter of If, but When

Wednesday, October 9 at 8:00-9:00 a.m.

With cyberattacks becoming increasingly sophisticated and pervasive, it’s important to safeguard your organization’s assets and reputation. This session, designed for IT, operations and c-suite professionals, will provide insights into proactive measures, incident response strategies and the latest cybersecurity technologies. Don’t wait until it’s too late— stay ahead of the curve and protect your business from cyber adversaries.

The NACS/Conexxus Technology Roadmap

Wednesday, October 9 at 9:15-10:15 a.m.

Drawing from extensive research beyond the industry’s confines, the NACS/Conexxus Technology Roadmap outlines the technological and cultural shifts that will shape the retail landscape. From cutting-edge innovations to cultural evolutions, the roadmap will help you navigate and thrive in the ever-changing technological terrain. Don’t miss this opportunity to prepare today for the future.

WonderBar ® Merchandiser

For coolers, freezers and center store

WonderBar ® Trays

More ways to boost productivity

Standard Tray with Finger Product Stop Mini Tray

Dual Lane Tray

n Made from U.S. steel and heavy-duty wire frames.

n Multiple-depths range from 13" to 24".

n Adjustable-widths adapt from 1 3/4" to 17 1/2".

n Tool-free installation.

n Bar and shelf capable.

n Auto feed any product.

Radius or Square Tray Sidewalls

Oversize

Double-Wide Tray

Standard Tray with Locking, Molded Pusher

Create Exciting Cross-Sells

with Dual Lane merchandising

n Fit many more items, sell families of products in different sizes and increase impulse buying with cross-sells and adjacencies.

n Asymmetrical lanes sell different-width products.

n Each lane adjusts to fit products as small as 13/4" wide.

n Unique design features a separate paddle to push each item forward individually in its own lane.

WonderBar® Dual Lane Trays

Display Cheese & Salad

Improve rotation and reduce shrinkage

WonderBar® Trays

n Face more packages, accommodate a wider range of shapes and sizes, restock easily, and manage dated produce better.

n Air baffles maintain product temperature and extend shelf life.

n Durable cooler-capable steel construction ensures long life.

n Trays lift out for rear restocking and proper rotation.

n Versatile spring tension is gentle on delicate produce.

Cooler-Capable EWT ™

Expandable Wire Tray for refrigerated retail

n Quick drop-on, one-piece installation.

n Accommodates any style or size package adjusting from 3 3/8" to 17 1/2" lane width.

n Various built-in mounting capabilities available based on shelf component.

n Molded pusher paddle available, both locking and non-locking styles with wire- or metal-sided trays.

n Auto feed any product.

n Clear or Imprinted Front Product Stops.

n Vends oversize items like pizza.

Display & Scan Hooks Hooks for every purpose

n A simple, inexpensive design.

n Use with Quick Back® to maximize product density, provide easy mounting and relocation of stocked hooks in tight places, under shelves or in fully loaded displays, and speed re-merchandising and display changeover.

Right Angle Label Holder Hook

Economical

All Wire Hook

Slatwall Hooks

n Safer, rounded Ball-End Tips are available on all hooks at no extra charge and no minimum order.

n Use the Peg Hook Overlay to quickly convert All Wire Hooks to Scan Hooks.

Pouch Hook™ Merchandising

A new venue of product promotion

Pouch Hook™ Merchandising

n Standard and Gravity-Feed options keep items forwarded and automatically faced.

n Tool-free installation on most common gondola and cooler uprights.

n Stocked in 4 lengths compatible with all standard shelf sizes allowing mixed use in display.

Flip-front Label Holder swings up for easy access and product removal.

Protect Your Merchandise

Anti-theft security hooks

Scan Lock® Hooks

n Easy-to-use, inexpensive key-lock system.

n Prevent the removal of any stock or display 1 or 2 items unlocked to prevent sweeping.

Anti-Sweep™ Hooks

n Camel-back profile prevents sweeping while providing direct access for customers.

n Flip Scan® Label Holder swings up and out of the way.

n Use of plain-paper labels can save up to 65% on labels and up to 75% on labor.

Adjustable Merchandising Tray®

AMT ® for dairy, freezer and center store

n Molded-in openings improve refrigeration air circulation.

n Top-tier sidewall available for support and containment of tall or multi-tier products.

n Adjustable width trays, designed for yogurts, ice cream, and other difficult to organize products.

n Trays lift out with easy-grip handles to allow quick restocking or cleaning.

Clear Scan® Label Holders

The complete shelf edge labeling system

n Easy-to-use design flexes open at a touch for fast, drop-in, plain-paper labeling, then automatically springs shut to secure the label in place.

n Unsurpassed range of sizes, styles & lengths.

n Labels shielded from dirt, spills, moisture & wear so they last longer, read easier & scan more accurately.

n Long lasting PVC construction retains “memory” and shape, resists yellowing, darkening & aging.

Choice of magnetic, adhesive or clip-on mounting systems.

NAVIG the

It’s even better when you plan ahead.

BY CHRISSY BLASINSKY

ATING NA S Show

Here’s some great advice

for how to navigate the NACS Show—“Start with the end in mind,” said Jeff Miller, CEO of Millers Energy and the 2010-11 NACS chairman.

Miller has been to over two decades worth of NACS Shows, and although his company no longer operates stores, his expertise is a great blueprint for how to divide and conquer four days of networking, education and general sessions, and over 425,000 square feet of Expo.

“We typically brought about four to five people to the NACS Show and we each picked areas we were interested in,” he said. Each member of the team also got to pick an idea to pursue while at the Show.

In early 2022, Miller Oil Company Inc., (dba Millers Energy) sold its 23 Miller’s Neighborhood Market convenience stores to Global Partners LP, which also is acquired more than 70 Miller Oil wholesale dealer accounts in Virginia and North Carolina.

“After 40 years in a great industry that gave me and my family so much, we decided to focus on other areas of our business,” said Miller, whose father, the late Augustus “Gus” Miller, founded the company in 1977 when he purchased Exxon Company USA’s home heating oil business in Norfolk, Virginia.

As a former NACS chairman and industry champion, Miller continues to attend the NACS Show.

“When we came back from the Show, we would meet while everything was still fresh, and everybody would talk about what they saw, what education sessions they went to, what they learned and where they saw it,” Miller continued.

Those ideas turned into conversations about where they could improve the business, what they could do better and what to focus on.

“And then everybody got one idea that they could own, so they were empowered to go out and either order the product or explore a relationship with a particular vendor and bring it back to the group,” he said.

Some of those ideas stuck, and some didn’t, “but we had four or five people each focusing on one particular project or product, as opposed to one person trying to line up all these different things,” he said.

For the education sessions, Miller said his team chose the ones that gleaned new ideas and solutions.

“We always had weaknesses that needed to be shored up. Wherever we had problem spots, if there were sessions discussing those areas, we’d make sure somebody attended those. To get the most out of it for our business, we tried to focus in on what the upcoming challenges were,” Miller said.

TIMING IS EVERYTHING

The NACS Show’s timing early in the fourth quarter makes it a great opportunity for participants to chart their course for the coming year.

“The timing is perfect because it forced us to think about the next year in October. It fits nicely into the overall planning, and not just for new products and vendors—it’s also about your marketing plans and that’s something we’re working on in the fourth quarter,” said Miller.

After each day at the NACS Show, the New England-based Nouria team gets together to share the ideas they saw and what they learned during the day. “And sometimes those ideas were learned during the education sessions,” said Joe Hamza, chief operating officer at Nouria.

What Happens in Vegas …

There are a lot of new additions to Las Vegas since the NACS Show was last in town in 2022. Whether you’re a NACS Show regular or getting ready to attend your very first NACS Show, here’s a taste of what’s going on in the host city:

The Sphere Offers More Than Concerts

With headlining artists like U2, Phish and Dead & Company, the Sphere opened in September 2023 with a massive “wow” factor. But there’s more to do at the venue than score concert tickets— like the immersive “The Sphere Experience.”

Sports!

Vegas has become a hotbed for sporting events and teams relocating. The city’s first Formula 1 Grand Prix took place in November 2023, followed by the 2024 Super Bowl.

In four years, the Oakland Athletics could be moving to Las Vegas for the 2028 Major League Baseball season, and rumor has it that the Tampa Bay Rays aren’t far behind. Also, the NCAA announced that Las Vegas will host the Final Four in 2028.

Listen Up, Folks

A new “EDM and hip-hop inspired party bar and restaurant” opened in the Las Vegas Arts District. By day, Audio Bar serves as a listening bar for patrons to browse a collection of electronic dance music on vinyl. In the evening, it’s a venue that “straddles the line between nightclub and lounge,” according to Eater Las Vegas.

New Hotels in Vegas

Several luxury hotels recently opened their doors: the Horseshoe Las Vegas opened in December 2022, and the Fontainebleau Las Vegas and the Durango Casino & Resort both opened in December 2023.

But You Won’t Find Mirage on the Housing List … Hard Rock International acquired the Mirage in 2022 and the 35-year-old hotel closed on July 17, 2024. The property is slated to reopen as Hard Rock Las Vegas in the spring of 2027.

… Or the Tropicana

The 67-year-old Tropicana closed its doors in April 2024. Demolition is set to begin in October to make way for a $1.5 billion Major League Baseball stadium.

“When we come back from the NACS Show, we put everything together and say, ‘here’s how we’re going to rank these ideas and here’s what we’re going to execute.’ We divide these things among the various departments and get to work,” Hamza said.

Meg Rice, director of marketing at Nouria, attended her first NACS Show in 2023. “It opened my eyes to all the possibilities in the industry,” she said.

This year, Rice is ready to dive into all that the NACS Show offers, including what the team at Nouria will see and learn to help guide strategic decisions. “The Show is so big—you can’t see it all yourself,” she said.

A CANNOT MISS EVENT

If you’re still thinking about whether to attend the NACS Show, here’s what the veterans suggest:

“If you want to learn what the industry is doing, see the new innovations produced by our suppliers, meet other retailers and share ideas with them or get insights from them, it is the only place to go to,” said Hamza.

Sandy Delli Carpini, CMO of Seasons Corner Market, described the NACS Show as “your wildest dreams of products—things you could never even imagine are there.” She added that as long as you’re wearing good shoes, you will be able to find the latest products and ideas.

Miller started attending the NACS Show in 1994, but said the shows had a bigger impact on him and his business after he got more involved with NACS as an association in 1997.

“The most impactful thing you can do, if you want to grow your company, is get on a NACS committee and get involved because that’s where the action is. You can walk around 400,000 square feet all day long and go home with a bag full of candy and a bunch of ideas in your head. But you really want to hang out with the people who are implementing the ideas,” said Miller.

“Go to the Show, meet some NACS people, and then find out how you can get involved. It will pay huge dividends,” he added.

You’re My Best Friend

Chef Roy Choi, who revolutionized the modern food truck scene in 2008, opened his first Las Vegas restaurant, Best Friend, in December 2022 at Park MGM. The restaurant is known as the only place on the Strip “to sink your teeth into all the flavors, music and culture of Koreatown and beyond.”

Yes, That Peter Luger

The 137-year-old New York City-based dining institution, Peter Luger, opened its fourth restaurant in October 2023 at Caesars Palace called Peter Luger Steak House Las Vegas.

Wasted Away

The late Jimmy Buffett’s flagship restaurant chain, Margaritaville, closed its Vegas location in April 2024. The restaurant opened in 2003 at the Flamingo Las Vegas.

If you’re new to the NACS Show, here’s some additional tips for what’s happening in and around the Las Vegas Convention Center (LVCC):

Looping Around the LVCC

Here’s a quick and fun way to make your way around the LVCC in a Tesla Model Y. The Vegas Loop at LVCC provides fast transportation for attendees across the LVCC campus. The system is designed to transport more than 4,400 convention attendees per hour in vehicles capable of holding three people.

Speaking of the LVCC, it’s going through a significant renovation and upgrading the South, North and Central halls. The project is expected to be completed in 2025—but we’ll have to wait until 2026 to experience the changes. The 2025 NACS Show will take place in Chicago at McCormick Place.

Walking on Sunshine

Las Vegas has at least 320 days of sunshine every year and fewer than five inches of precipitation annually. So, the odds are that the weather during the NACS Show will be favorable with temps averaging 82°F / 28°C.

The Eagles Have Landed Guess which band will be playing at the aforementioned Sphere? The Eagles will play eight shows over four weekends from Friday, Sept. 20 through Saturday, Oct. 19.

I Got Friends

If country music is your jam, Garth Brooks began his residency at The Colosseum at Caesars Palace from June through December.

THE SECRET SAUCE

There are more than 1,300 booths covering hundreds of thousands of exhibit hall space at the Las Vegas Convention Center. Needless to say, a gameplan is essential. If you’re looking for what’s cool and new, here’s some advice for finding the unicorns:

Cool New Products Preview Room

Here’s where you’ll find over 300 cool products that are new to the industry—everything from general merchandise to foodservice equipment.

Retailers, wholesalers and convenience distributors can also take advantage of seeing these new products prior to the official NACS Show opening.

New Exhibitor

Area

This is where you’ll find companies that have never exhibited at the NACS Show before. It’s like a mini NACS Show of just new products, including everything from technology to emerging categories. Retailers, wholesalers and convenience distributors can gain early access to the New Exhibitor Area one hour before the Expo opens to all attendees.

Day Three of the Expo

The last day of the NACS Show is where a lot of the magic happens.

“Our exhibitors typically see their heaviest booth traffic on days one and two. The third day is a great opportunity to set up your prescheduled appointments,” said Jeff McQuilkin, director of exhibit sales and services at NACS.

“I’ve talked to many suppliers who said the third day is their favorite day because that’s when they get business done. So take advantage of it,” he said.

Every. Square. Inch.

“There’s some gold on the fringe, so don’t ignore the booths on the perimeter of the Expo hall,” said McQuilkin. Oftentimes these companies are newer to the NACS Show, or were able to jump in quickly off the waitlist.

The more NACS Shows you attend, the more you’ll see a first- or second-time company with a 10x10 booth grow into a top brand within their category within a few short years.

“Take the time to look at the website or the NACS Show mobile app before arriving to get an idea of which booths you want to see, where they are and try to plan out your day,” suggested McQuilkin. “The Expo is too big to go out there without a plan, so you’ll want to be as efficient with your time as possible— two and a half days goes by fast.”

Chrissy Blasinsky is the digital and content strategist at NACS. She can be reached at cblasinsky@convenience.org.

Retailers evaluate the benefits, drawbacks and best practices of self-checkout.

BY JAMIE GRILL-GOODMAN

Self-checkout (SCO) kiosks have a lot of benefits. They get customers in and out of the store quickly, reduce labor and for many consumers, improve the shopping experience.

But while having the option of self-checkout provides shoppers both speed and autonomy, there are drawbacks too. Common c-store purchases require age verification via employees, shrink is a growing concern throughout the retail industry and, while some customers prefer self-checkout, others do not.

“Self-checkout is a very polarizing technology,” said Neil Saunders, managing director, retail, GlobalData Retail. “Some consumers love it, others hate it and many are somewhere in the middle.”

Retailers have implemented self-checkout stations over the past few years as “a way to reduce costs and take out some of the bottlenecks at the checkout,” Saunders said. “However, increased shrink rates and rising customer dissatisfaction have caused several retailers to pause and review. I do not think self-checkout is disappearing, but there are now more restrictions around how its deployed and used.”

These reevaluations of the technology can already be witnessed across the wider retail industry. Dollar General’s CEO Todd Vasos made headlines in March when he told investors that, despite adoption rates for self-checkout

being high, the retailer was converting “some or all” self-checkout registers to assisted-checkout options in around 9,000 of the 14,000 stores in which SCO is available. The retailer also plans to completely remove self-checkout from more than 300 stores with the highest shrink.

Dollar General also imposed fiveitem limits to transactions in the remaining stores offering self-checkout. In the same month, Target announced that it was limiting self-checkout to customers with 10 items or less and ramping up the number of staffed checkout lanes.

While some retailers are voluntarily imposing item limits, a California bill seeks to require stores to limit SCO lanes to purchases of 10 items or less. In addition, Senate Bill 1446, introduced by State Senator Lola Smallwood-Cuevas in February, would require grocery and drug stores to offer at least one manual checkout station, require that employees attend self-checkout machines and create other restrictions.

Self-checkout is a rapidly expanding practice within convenience retail, according to Jack Hogan, senior vice president of sales and partnership at Mashgin, a marketer of SCO machines. However, he said that adoption within the c-store channel is “still slightly behind traditional grocery or [big box]style locations as nearly half of c-store transactions require some form of cashier verification.”

When implemented correctly, self-checkout can drive both additional sales and efficiency.

BENEFITS OF SELF-CHECKOUT FOR C-STORES

While there may be a list of questions to consider and challenges to overcome with SCO, 43% of retailers in the convenience and fuel industry along with the grocery and food industry have currently adopted the technology, according to an Incisiv report (in partnership with NCR Voyix). Another 34% are piloting the tech or planning to implement it in the future.

Retail executives who have already implemented SCO reported benefits for both retailers and shoppers:

• 75% believe the SCO stations enhanced store layout and space utilization.

• 79% reported a better customer experience.

• 58% reported lower labor costs.

• 51% reported improvements in operational efficiency.

Within convenience stores, “Self-checkout should play a role, as most people are only buying a handful of items, which makes using self-checkout easier,” noted Saunders. “It also means the design of self-checkout stations can be more compact compared to bigger supermarkets.”

And when implemented correctly, self-checkout can drive both additional sales and efficiency, Hogan said. “That means that lines in the store become shorter, more customers buy something thanks to those short lines, and staff have more time to keep the store clean, stock shelves, and help customers who need extra attention. As an additional benefit there should also be some increases in fuel sales as well, thanks to clearing the forecourt at a faster pace.”

Amit Acharya, vice president, product— retail self-checkout and POS endpoints, NCR Voyix, said that when self-checkout is deployed in a “thoughtful data-driven way … it can remove the queues and provide consumers with choice. The point about self-checkout is not that you’re making somebody else do the work, you’re providing them with a choice.”

Additionally, c-stores operate on a very lean labor model, he noted. “There are usually two or maximum three people in the store. SCO allows you to serve multiple customers with one cashier.”

Redistributing those employees to more effective tasks can make a store’s labor model more efficient. “This where you now drive higher experience versus an employee just waiting for somebody to check out. So, you’re effectively removing the inefficiencies of queue busting and poor stock rotation that leads to lost sales,” Acharya explained.

EVOLVING BEST PRACTICES FOR SELF-CHECKOUT

With both benefits and drawbacks to SCO, it’s important to consider best practices to make the most of the investment.

From the very beginning of a company’s self-checkout journey, retailers should be very clear on the intended outcome, Acharya said.

“What is the outcome you want to drive as a retailer?” he asked. “What are you trying to accomplish? What are your goals? Define that experience for the guest and for the attendant. That’s the key that will drive your front end. It’s not about putting a self-checkout machine in a corner.”

He also advised retailers to make sure everyone is on the same page in order for the implementation to be successful. “The IT team who’s deploying it, the marketing team, the stakeholder. … That alignment is important as to why are we doing it and how can all of us help with success?”

Once SCO technology is in place, everyone needs to know how to use it, and that requires training both shoppers and frontline associates at different points of the process.

“When to greet a guest, how to greet a guest, how to handle an intervention, how to manage the experience,” Acharya said.

“You need your staff to love the solution in order for your customers to love it,” Hogan said. “It’s really important to make sure your staff see self-checkout as a tool you’ve brought them to help them at their job, not a replacement. If you train your team on making the most of self-checkout and teach them how, it will help them do better in the other parts of their job, and they will happily teach customers how to use and be comfortable with the solution.”

SETS UP FAST PAYS

It’s important to make sure your staff see selfcheckout as a tool you’ve brought them to help them at their job, not a replacement.”

Retailers also need to express to customers that self-checkout isn’t replacing employees, Hogan added. “It’s allowing them to complete the other tasks that exist in the store daily. One way we see some stores handle this is they will sometimes put a ‘now hiring’ sign on top of our kiosks or put a little nametag on the Mashgin to emphasize it’s part of the team.”

John Goodwin, director of product management, Fujitsu Frontech North America, stressed that the human touch is important to reducing shrink.

“The self-checkout attendant dedicated to the self-checkout units combined with weight-based security is critical. Yes, new vision-based security solutions are available to assist with product identification, missed scans and ticket switching, but these advanced solutions depend on the self-checkout attendant,” Goodwin said.

And self-checkout is not just set it and forget it technology, said Goodwin. “Every first-time self-checkout retailer that initially implements self-checkout assumes they can simply install and let it run,” he said. “However, operational changes are needed, ranging from customer interaction to associate dayto-day procedure changes.”

Beyond training associates and customers and keeping up with the evolving procedural needs, the most important thing, according to Hogan, is to place self-checkout tech in the right locations.

“Typically, this is the main counter where staff are,” he said. “We found that trying different locations around the store often leads to confusion and lower adoption.”

Retailers should also offer all tender types at the self-checkout. Customers should be able to use cash, credit and their loyalty points at the self-checkout lane. “We’ve also found that selling fuel at self-checkout can be very powerful, especially in markets that have high rates of cash use. This opens up fueling much faster to unbanked customers who may otherwise have to wait in line. … As a result, those stores become preferred by unbanked customers and turn cars in their forecourt much faster,” said Goodwin.

THE POWER OF PERSONALIZATION

About 50% of retailers are using self-checkouts not just to speed up checkout, but as an engagement terminal to connect with

Leveraging

rewards programs is critical for personalization at self-checkout.”

customers, according to Incisiv’s report. Incisiv suggested this signals a clear shift from SCO as a tool for efficiency to SCO as a tool for a richer, integrated experience. Furthermore, the study found 37% of retailers display personalized ads or product suggestions at SCO terminals, using customer purchase history to fuel these insights.

Personalization is also regional—the same retailer’s store in North Carolina and in Florida shouldn’t be the same, Acharya pointed out.

“Your front end should be personalized. For example, if a local team wins a game, [that local store] should be able to celebrate for a week and then quickly go back to their own format.”

Once a loyalty card is scanned or through biometrics, the experience at the self-checkout should be personalized to the shopper. C-stores, for example, could remind a shopper that on their last visit they bought a particular candy bar and offer it at a discount, along with reminding the customer where to find it.

“Leveraging rewards programs is critical for personalization at self-checkout,” Goodwin agreed. “Through rewards, self-checkout can know that I always get my medium coffee in the morning or that I haven’t been in-store in a few days and welcome me back with a free donut offer. Anything and everything is possible.”

Jamie Grill-Goodman is a writer and editor with 20 years’ experience in multichannel content creation for both B2B and consumer publications.

C-stores use innovative tactics to stand out and drive sales.

BY TERRI ALLAN

NEW IDEAS IN MERCHANDISING

MERCHANDISING

It’s store theater.”

Visitors to any of the nine stores operated by The Convenience Group (TCG) in Washington State are noticing big changes in store design and merchandising tactics—the chain recently began installing multiple in-store video screens as it launches its own retail media network.

With the screens strategically placed in areas ranging from the food counter or drinks fountain to the checkout register, TCG is able to promote its offerings as well as tie in ads from suppliers, driving impulse sales of high-margin items.

“Whether it’s through an app or other digital means, effective merchandising is a great communications tactic,” said Don Rhoads, president and CEO of the Vancouver, Washington-based company. Not only does the digital merchandising approach appeal to today’s young shoppers, but it also helps stores “tell their story,” he explained. “It allows you to work with community stakeholders and spread the word that you’re local and care about the community.”

Retail media networks (RMN) are just one of a number of new approaches c-stores are taking to stand out in an increasingly competitive marketplace. Strategic merchandising programming has never been more important, and executions are necessary in all areas of the store.

“Effective merchandising practices are crucial for driving store sales, increasing customer traffic and building loyalty,” remarked Marcel Friedrich, group vice president, sales and marketing, at the Bruegmann Group, a provider of shelf-enhancing solutions for c-stores, including the Flex Roller and the Bruegmann Evo Rack. “Well-organized, visually appealing shelves attract customers and make it easier for them to find and purchase products.”

Efficient merchandising also reduces restocking time and labor costs, Friedrich added, allowing frontline workers to focus on customer service and increasing the basket.

DIGITAL UNIVERSE

Not surprisingly, the most dramatic developments in in-store merchandising have been in the digital realm. “As the industry is evolving, the digital universe is coming more into play,” said Rhoads, a former NACS chairman. The recent addition of an RMN at TCG, for example, enables the stores to promote unique store offers and promotions. “It’s store theater,” he said. Other c-stores, meanwhile, are now employing digital shelf talkers and pricing modules as traditional merchandising practices become more automated.

“Digital out-of-home [ads] continue to be one of the fastest growing segments of the advertising industry, and RMNs stand out because they are strategically positioned at the point of sale,” said Joe Dondanville, chief growth officer at OTT Communications, whose 33 Degrees Convenience Connect is a full-service provider of c-store retail media networks. C-stores are ideal for the networks, he noted, and the programming benefits retailers, advertising and supplier partners, and customers alike. “In-store advertising works really well in a c-store given that everything is in close proximity,” Dondanville said.

Among the 8,000 locations that 33 Degrees services are Circle K stores. “By digitizing limited time offers, Circle K shortens turnaround time to modify offers in the marketplace while also reducing reliance on print,” Dondanville explained of the 10-year-old Circle K Digital Store Network. “And by using the displays to showcase impulse purchases,

fere ce: October 7-10, 2024

Exp : October 8-10, 2024

Las Vegas Convention Center

Elevate Experience:Your

Start Planning Now

Prepare for your NACS Show experience in advance by utilizing My Show Planner to plan your agenda before your arrival. Once you’re ready, seamlessly sync your plans with the mobile app to access all your personalized information onsite.

In-store advertising works really well in a c-store given that everything is in close proximity.”

as well as high-volume, high-margin items, the network positively impacts both revenue and the profit and loss at each store and collectively.”

With the 33 Degrees network, all customized content—whether food menu boards, vendor partner ads that reach customers at the point of sale or store messaging tailored to that location’s clientele—is delivered daily and varies by daypart and location.

COLD VAULT TWEAKS

Beyond digital advances, c-stores are also seeing merchandising improvements in other areas of the store. In the cold vault, even small tweaks to popular fixtures are driving labor savings.

“Nearly 60% of all c-store shoppers make a beverage purchase, making the cold vault a revenue goldmine,” noted Friedrich. “This destination is worth a strategic investment to further optimize this space.”

iSee Store Innovations’ Apex cooler door rack was recently redesigned to allow for easier installation of point-of-sale materials, Joe Vonder Haar, CEO and founding partner, said. With the improvement, it’s no longer necessary to remove the display from cooler doors to make a price change. “It’s not a huge change, but at the store level, it’s a big improvement,” Vonder Haar said. The Apex vault display— which utilizes iSee’s DisplayLoc suction-cup technology—allows c-stores to add new products to coolers between shelf resets.

Bruegmann introduced its EvoRack, a solution for optimizing space and improving product visibility in cold vaults, at the 2023 NACS Show, and more than 1,200 c-stores have added the fixture to their operations. According to Friedrich, the tight upright hole spacing in the EvoRack allows retailers to add an additional shelf into every other door. Moreover, the Bruegmann EvoRack complements the company’s long-established FlexRoller.

DRIVING SALES WITH DISPLAYS

Bruegmann also markets ProQueue, a modular queue display fixture that positions products and promotions in previously untapped space to entice customers waiting to check out— driving impulse purchases. “The ProQueue creates new real estate in store,” he said, while merchandising to a captive audience.

“Visual organization and effective department signage programs are also now critical elements to sales success,” remarked Clay Smith, director of marketing and product design at MDI Worldwide, which designs and produces POS displays for c-stores. As an example, he pointed to a contour-cut, LED halo-lit logo panel that expanded into a fully developed graphic wall that MDI recently designed for RaceTrac’s Swirl World ice cream bar. The execution succeeded in providing good sight lines, legibility and cost effectiveness, Smith said.

Store exteriors also serve as key merchandising tools. “The c-store façade plays an important role in setting the tone and messaging that draws customers in,” Smith explained. “This starts with a clean and inviting architectural treatment and extends to lit graphics, window-mounted signage, spanner signs and in-window LED displays.”

‘UNEXPECTED DELIGHTS’

C-stores rely on unique offerings to merchandise their stores as destinations. Wally’s— with locations in Illinois and Missouri, and a third planned for Indiana—is known for road-trip-themed novelties, ranging from drinkware to clothing to “road trip glasses.” Some of the store’s proprietary merchandise is displayed in a vintage Winnebago that’s parked inside the stores.

“Merchandising is a vital part of the Wally’s experience and aids our customers

When new customers come in, they often say, ‘Whoa, I just came in to pay for my gas.’”

in uncovering what we call ‘unexpected delights,’” said Andy Strom, chief experience officer. “We like to extend the road trip imagery to the brand and the merchandise.” Merchandising tactics at Wally’s are “constantly evolving,” Strom noted, and a collaboration with a major lifestyle brand is coming soon.

Seasonal and locally sourced items can also go a long way in garnering a c-store a reputation for unique merchandise. About 10 years ago, Scottsdale, Arizona’s The Thumb began stocking a small selection of giftware that soon became popular with customers.

“We [then] took a lot of the space within the store and devoted it to gifts and specialty items,” said Erica Lassetter, retail manager, including items like the retailer’s Arizona-themed bags, t-shirts, hats and pillows. Many of its customers are snowbirds with second homes in Scottsdale, so The Thumb offers a wide array of home decor items. “When new customers come in, they often say, ‘Whoa, I just came in to pay for my gas, and didn’t expect this,’” Lassetter said. For inspiration on new merchandise, Lassetter and the store’s buyer frequently travel to giftware trade shows in Dallas and Atlanta, in addition to scouting out other stores.

At Cliff’s Local Market, which has 21 stores in upstate New York, “local isn’t just part of our name, it’s who we are,” said Bill Lara-

by, buyer for the chain. “Being local is very important to us,” he said, adding that the company eagerly pursues partnerships with other nearby companies and goes out of its way to merchandise locally produced items, including Cummings Farms milk, Ithaca Beer and River Rat cheese.

The retailer aggressively promotes the products both inside and outside the store via radio, television and billboard ads, as well as in-store signage, product giveaways, samples and social media. Feedback from customers and vendors has been “very positive,” noted Laraby, adding, “often, local companies reach out to us to collaborate because they’ve seen our other partnerships.”

Whether it’s local, seasonal or one-of-akind offerings, convenience retailers are increasingly finding that in order to stand out in a competitive market, impactful merchandising is more important than ever. In combination with state-of-the art display fixtures, shelving units, signage and digital support, c-stores are proving that they’re paving the way for the merchandising of the future.

Terri Allan is a New Jerseybased freelance writer specializing in consumer products and retail channels. She can be reached at terri4beer@aol.com

NACS LEADERSHIP FOR SUCCESS CLASS

OF 2024

THE PROOF IS IN THE DATA

Cutting into foodservice subcategory sales trends.

BY EMMA TAINTER

Aquick look at a comprehensive set of 2023 foodservice data shows promising growth:

total industry foodservice sales represented 26.7% of in-store sales, an increase of 1.1 points from last year, according to the NACS State of the Industry Report ® of 2023 Data released in June. Foodservice sales grew 9.0% year over year, from $54,835 to $59,752—and this wasn’t just due to inflation price increases.

Foodservice is as exciting to convenience operators as it is to consumers. Foodservice, which here is referred to as the five categories of prepared food, commissary, and hot, cold, and frozen dispensed beverages, are centers of innovation according to Deanna Hall, sr. product director of 7-Eleven. “Consumer needs are constantly evolving, and that’s what’s exciting,” said Hall.

Each of those foodservice categories has subcategories that make them unique, and retailers can capitalize on these attributes to create a foodservice program that keeps consumers satisfied all day. In this article, we’ll dig into the metrics of each subcategory to provide much-needed color for overall foodservice data.

PREPARED FOOD

Want detailed descriptions of each NACS subcategory?

You can find the NACS Category Definitions & Number Guide at convenience.org/ research

Prepared food is any food that has been ordered by a customer to be prepared on-site by a foodservice employee.

Prepared food in convenience continues to be on the upswing. In 2023, the category once again contributed the most—71.7%—to overall foodservice sales. This is an increase of 2.3 points from the year before and was paired with a high margin of 55.65% that allowed operators to rake in an average of $50,991 per store, per month.

Prepared food often takes center stage on the convenience store menu and is ideal for

introducing new flavors through limited-time offers (LTOs)—the amount of which convenience operators have doubled since 2019. LTOs allow retailers to cater to the taste of the consumer which can change with the seasons or even week-to-week.

Retailers have also used prepared food LTOs to encourage growth in the lagging morning daypart. Data shows that the morning commute is still down from pre-Covid rates, but there are still ways to boost morning sales. In 2023, 7-Eleven pushed LTOs to bring back the morning daypart and saw great success.

7-Eleven introduced “some of [their] biggest LTO successes” in the breakfast daypart,

including their “new signature French Toast Breakfast Sandwich line of Ham & Egg & Cheese with bacon mayo and Sausage, Egg & Cheese with chipotle mayo,” shared Hall.

COMMISSARY

Subcategories include: sandwiches and wraps, meals ready-to-eat, sides and salads, and thaw, heat and eat.

According to 2023 Convenience Voices data, 21.9% of respondents said they purchased commissary items within the last two weeks. Consumers on the run tend to reach for commissary items like fresh packaged

Value Is Key

It’s no secret that customers want the biggest bang for their buck—especially now when consumers are weary from being squeezed by higher prices. Communicating and delivering on the value of foodservice offerings is critical.

Convenience operator Dash In, based in La Plata, Maryland and owned by the Wills Group, is aware of the difficult situation their customers may find themselves in. “Value is going to be key for 2024 as consumers try to maneuver lower purchasing power due to inflationary pressures, record levels of consumer debt, the scaling back of governmental programs such as SNAP/EBT, and high interest rates,” said Mark Samuels, executive vice president, convenience retailing, at Dash In.

Value is not just about price. Deanna Hall, senior product director of 7-Eleven, brought another perspective. While a low price can draw consumers in, they are still expecting a “a premium experience … [7-Eleven] seek[s] to overdeliver on customers’ expectations by offering a balance of value with a high-quality, premium product and experience.”

sandwiches, cut fruit or frozen items they can heat up later in the day. Many retailers like Maryland’s Dash In prepare these offerings daily, and last year Dash In “saw an uptick in demand for fresh cold sandwiches, wraps and salads that we make daily as a fresh grab-andgo offering,” said Mark Samuels, executive vice president, convenience retailing, Dash In. Sandwiches and wraps were the largest portion of the category in 2023 and accounted for 47.0% of commissary sales, which saw another year of overall sales growth—from $5,833 to $6,224. The sandwiches and wraps subcategory sales also increased by 7.7% year over year to $2,926 per store, per month.

The second largest contributor to commissary sales were ready-to-eat meals at 28.6% in 2023. The subcategory earned $1,781 per store, per month in 2023, an increase of 12.5% compared to 2022. Sides and salads sales, which represented 20.1% of commissary sales in 2023, saw slight decrease of 0.8% in 2023 to $1,251 per store, per month.

Thaw, heat-and-eat food was the smallest commissary subcategory at 4.3% of sales and was the only other subcategory that experienced a sales decrease. Sales declined by 2.0% to $267 per store, per month in 2023.

HOT DISPENSED BEVERAGES

Subcategories include: coffee, cappuccino/specialty coffee, refills, hot chocolate, other hot dispensed beverages, coffee club mugs and hot tea.

The hot dispensed beverages category is primarily made up of coffee sales, which contributed almost three-fourths of sales (72.4%) in 2023. The category generated the second highest sales among foodservice categories. However, this success was hard won.

Hot dispensed beverages was one of the hardest hit foodservice categories during and after the pandemic. The morning daypart— usually the most popular time to purchase hot dispensed beverages—experienced a sluggish recovery as workers slowly trickled back into the office or not at all.

Further, consumers’ tastes are changing. In the third quarter of 2023, Starbucks recorded that its cold beverage business made up 75% of sales, a clear indication that more consumers are opting for a cold coffee over a hot one.

Retailers are getting more innovative with their coffee offerings, in addition to adding breakfast themed LTOs, to reinvigorate the morning daypart. Dash In, for example, “made investments in 2023 that included transitioning stores to B2C [bean to cup] equipment for Hot Beverage,” said Samuels. These types of investments helped coffee realize a 4.9% increase in per store, per month, from $4,323 to $4,554, and a per store, per month gross profit increase from $2,871 to $2,996. The second largest subcategory, cappuccino and specialty coffee, also saw success, and increased both sales (from $1,075 to $1,141) and gross profit (from $618 to $648).

The smaller subcategories of refills and hot chocolate fared similarly. Each claimed 3.9% of category sales. Refills contributed $246 in sales and $166 in monthly per store profits, and hot chocolate recorded $243 in sales and $125 in gross profits per store, per month in 2023.

COLD DISPENSED BEVERAGES

Subcategories include: carbonated, other cold dispensed beverages, non-carbonated, refills, fountain club mugs and sports drinks.

Of Convenience Voices respondents who chose a site due to its product offering, the third most popular reason (43.5%) was the quality of fountain or frozen beverages offered by the store.

Cold dispensed beverages category sales have been historically dominated by carbonated dispensed beverages. In 2023, they contributed 52.3% to category sales, a yearover-year decrease of 5.7 points. Sales were recorded as $2,772 per store, per month, a slight year-over-year decline of 1.1%. Gross profit dollars also fell by 7.3%, from $1,546 to $1,433 per store, per month.

“Consumer needs are constantly evolving, and that’s what’s exciting.”

The “other cold dispensed” category, which includes iced coffee, cold brew and more, increased its share of the category by 5.5 points to 37.1%, and saw per store, per month sales increase from $1,468 to $1,898 per month. Margins were slightly less profitable than the previous year (falling from 59.78% to 54.57%), but sales volume was enough to boost gross profits from $878 to $1,036.

The remaining 10.6% of sales came from the subcategories of non-carbonated, refills, fountain club mugs and sports drinks, and all except refills saw year-over-year sales increases. The largest of these subcategories, noncarbonated cold dispensed beverages, saw the highest gross margin percentage of all cold dispensed beverages (56.01%).

While Dash In experienced “a continued decline in traditional CSD fountain drink units,” the retailer pushed a new “proprietary fresh cold dispensed bubbler program for the cold dispensed category,” showing that “new innovation[s are] driving unit sales.”

FROZEN DISPENSED BEVERAGES

Subcategories include: frozen non-carbonated, frozen carbonated and other frozen dispensed beverages.

Frozen dispensed is typically the smallest contributor to foodservice sales (2023 contribution was 5.8%), but usually boasts the highest margin. Last year, frozen dispensed beverages margins were 65.31%, and beat the second highest category, hot dispensed beverages, by 2.09 points.

Frozen dispensed beverages can be an important trip driver—and consumers look for a quality frozen dispensed program. Last year, Dash In “invested in an automated frozen beverage technology that replaced a previous offer and led to significant growth.

Overall category sales increased by 18.1%, from $3,501 to $4,134, and gross profits increased by 21.7%, from $2,218 to $2,700. The majority of frozen dispensed beverages sales came from frozen non-carbonated beverages, which accounted for 74.4% of sales, a slight 0.1-point decrease from the prior year. Its sales increased 17.9% year over year, and averaged $3,076 per store, per month in 2023.

Frozen carbonated and other frozen dispensed beverages were the smallest contributors at 17.3% and 8.3%, respectively. Frozen carbonated beverages sales and gross profits both increased by double digits and saw the highest sales increase of 22.7%— from $583 to $716—but its margins were the lowest of the subcategories at 35.36%. “Other frozen dispensed,” the smallest subcategory, grew year-over-year sales by 10.6% in 2023 to $342 per store, per month.

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

Major oil companies continue to return to retail.

BY KEITH REID

The major oil companies have directly operated retail sites in the United States since the earliest days of the industry. The interest in direct operations has waxed and waned over the years depending on whether ownership and operation provided opportunities or disadvantages at that specific time. Going into the 2000s it was common for the majors to operate several thousand sites or more. This was a notable presence, but the industry was still dominated by independent operators.

In the mid-to-late 1990s oil prices had tanked. There was also considerable consolidation among the major oil companies that saw the Seven Sisters (or thereabouts) turn into roughly the Big Four: ExxonMobil, ConocoPhillips, BP/Amoco and ChevronTexaco.

Going into the early 2000s oil prices had rebounded, making upstream operations—exploration and production (E&P)—even more dominant while downstream was sluggish, facing numerous regulatory and operational challenges by comparison.

For example, at the time BP’s E&P upstream operations generated some $12 billion in earnings compared to downstream’s $2 billion, including refining. Upstream employed nearly 17,000 people while downstream was slightly over 73,000. The major oil bean counters came to a simple conclusion—get rid of company owned, company operated (COCO) sites but make sure the new owners had branded contracts.

“All the major oil companies have done is replace the cookie-cutter island marketer of the 1980s with the cookie-cutter 4,000 square-foot convenience store of today,” stated the late Jim Fisher, CEO of the retail site selection and improvement consultancy IMST, in NPN Magazine at the time. He

went on to speculate that too much uniformity made it hard for the locations to be truly convenient.

ConocoPhilips sold off 2,000 Circle K stores in 2003, followed by another 1,000 in 2004. The process spread throughout the major oil companies, and by the end of the decade the exodus was largely, but not entirely, complete. Chevron has, and continues to maintain, a notable COCO portfolio.

COCO RETAIL RETURNS

Now, times have changed considerably and at least some of the major oil companies have started to re-explore the concept of direct retail ownership, often with a venture capital partner and often maintaining the store brand and leveraging the former management. Why this reversal?

According to Roy Strasburger, CEO of the turnkey convenience retail management company StrasGlobal, one reason is that the oil companies want to burnish the reputation of the c-stores at their sites, since consumers directly relate the stores to the fuel brand.

“Also, the fuel supply contracts that were tied to the sale of the properties are starting to expire, so the major oil companies are concerned about losing volume.”

Strasburger noted that some consumers have gotten used to buying unbranded or proprietary branded fuel and don’t rely on major brand fuels to keep their engines running “clean.” Their gasoline must have a respected brand to command a retail price. “The premium message is conveyed through

In 2023, BP acquired TravelCenters of

the COCO sites. A good COCO image will also force branded dealers to up their game,” he said.

The rationale goes further. Even with the most aggressive possible carbon reduction policies, liquid fuels (including petroleum-based) will be around for decades to come. However, even with a significant pullback on the carbon front, fuel demand will still likely continue to decrease. Diversification of the business portfolio is undoubtedly appealing. These sites also represent the opportunity to serve as incubators for charging, alternative fuels and other developing low carbon explorations.

Retail can also be very profitable today both in the store and even at the forecourt. Though hardly as profitable as E&P, it wouldn’t be unprofitable (at least not initially). These operations, especially the larger and higher volume operations, guarantee rateable off-take for gallons. For example, Thorntons, which was acquired by BP, moves over 300 million gallons annually.

Finally, there is likely the thought, accurate or not, that they can manage the operations more effectively this time around.

The major oils are quick to point out that these sites pose no threat to their branded independent partners, and in fact can be used to improve services and offers in their branded network.

Thorntons was acuired by ArcLight Capital Partners and BP in 2021.

America.

Some of the major oil companies have started to re-explore the concept of direct retail ownership.

CURRENT ACQUISITIONS

ArcLight Capital Partners and BP acquired Thorntons in 2021. The company noted that this transaction would position BP as a leading convenience operator in the Midwest, with over 200 locations across six states, including Florida, Illinois, Indiana, Kentucky, Ohio and Tennessee. BP retained the Thorntons brand.

“We have a proud history of high-quality retail brands across the country. Incorporating Thorntons into our business combines their customer-first culture with our existing U.S. retail network and will help us deliver our convenience strategy of offering customers what they want, where and when they want it,” said David Lawler, who was chairman and president, BP America at the time.

This move was also seen as promoting BP’s strategy for its convenience and mobility business, with a goal of nearly doubling global earnings by 2030 and delivering 1520% returns.

In late 2021, Shell Retail and Convenience Operations acquired the Landmark fuel and

convenience network. This consisted of 248 company-owned fuel and convenience retail sites whose convenience stores operate in Texas under the Timewise brand. The agreement also included supply agreements with an additional 117 independently operated fuel and convenience sites.

The company noted that the acquisition advanced Shell’s Powering Progress strategy in three ways: by growing its retail footprint in one of its core markets, by providing opportunities to offer customers expanded fueling options (including electric vehicle charging, hydrogen, biofuels and lower-carbon premium fuels) and by allowing for the growth of non-fuel sales through an enhanced convenience offering.

Shell subsequently acquired 45 fuel and convenience store sites in New Mexico through the acquisition of Brewer Oil Company’s (BOC) retail division. The acquisition also included cardlocks for fleet vehicles.

What motivated Shell’s return to COCO sites?

“Having a core network of company operated locations can be beneficial,” said Barbara Stoyko, senior vice president, mobility Americas in a 2023 Fuels Market News Magazine interview. “In the big picture, with the energy transition, we are really setting ourselves up for success over the next 20-30 years. It provides us with a more integrated margin picture versus just fuels. So, we get a portion of our businesses coming from a business that has retail margin, store, car wash, those things.”

Stoyko noted that it doesn’t detract from Shell’s traditional wholesale and retail relationships. In fact, this provides Shell with a test bed for new retail concepts and operational initiatives.

Alta Convenience is a joint venture entity between Fortress Investment Group and a subsidiary of Phillips 66 Co., created after the acquisition of Pester Marketing Co. in 2021 (which had the Alta store brand). It has subsequently purchased Western Oil’s 46 Petro-Mart c-stores and 39 wholesale

With the energy transition, we are really setting ourselves up for success over the next 20-30 years.

dealers, the entire Get ’N Go Stores business from Red Horse Oil and eight Duran Oil JR’s Fuel Stop locations.

ExxonMobil has an interesting partnership agreement with convenience store products distributor C-StoreMaster to support fuel supply for its newly created C-StoreMaster Energy. The company is now acquiring retail operations, such as 13 Hays and Son properties.

“We are excited to continue providing the personalized and efficient service we are known for to new partners,” said Sharan Kalva, C-StoreMaster president. “Launching an energy distribution division in partnership with ExxonMobil feels like a natural next step in expanding our offerings as both companies have parallels in our brand identities—top-notch products and service.”

WHAT DOES THIS MEAN FOR THE INDUSTRY?

COCO operations were the norm at some level for the history of most of the industry. Independents did not see them as being threatening in the marketplace relative to their operations.

Strasburger noted that they tended to be well funded with the latest brand image and clean, well-maintained sites. However, independents felt they were better prepared to compete.

He noted that one advantage they enjoyed, or at least the perception existed, that whenever there were supply constraints the COCOs got priority on fuel. Further, they had excellent locations, a good brand image, the latest pump technology and major vendor promotions.

What can be expected in today’s market, should the trend significantly expand beyond the current levels? There’s a chance the competitive landscape could change, Strasburger said. “But,” he said, “such things remain to be seen.”

Keith Reid is editor-in-chief and editorial director of Fuels Market News. He can be reached at kreid@FMN.com.

Early in 2024, Shell acquired 45 fuel and convenience store sites in New Mexico.

TAPPING THE NEURODIVERGENT TALENT POOL

How to recruit, train and retain neurodiverse employees.

BY STEPHENIE OVERMAN

“DISABILITY DOES NOT EQUATE TO INABILITY,” said job coach and recruiter Arwyn Swanger.

An estimated 15-20% of people are neurodivergent, a term that refers to the differences in brain function and information processing among individuals. Neurodivergence includes people on the autism spectrum as well as those with ADD or ADHD, Tourette Syndrome, dyslexia, obsessive compulsive disorder or a number of other sensory processing conditions.

With convenience retailers no strangers to labor, recruitment and retainment challenges, tapping into this abundant talent pool of individuals with unique skillsets is a practical solution.

The unemployment rate for neurodiverse adults is between 30% and 40%, according to a CNBC study. A recent Deloitte study finds that as many as 85% of people on the autism spectrum are unemployed.

EFFECTIVE RECRUITING IS ABOUT WIDENING YOUR NET.

The Employer Assistance and Resource Network on Disability Inclusion (EARN), which offers resources to help employers recruit, hire, retain and advance people with disabilities, noted this huge untapped talent market offers companies skills that may include:

• Innovation and creativity

• Technical, design and creative strengths

• New ways to solve problems

• High levels of concentration

• Keen accuracy and ability to detect errors

• Strong recall of information and detailed factual knowledge

• Reliability and persistence

• Ability to excel at work that is routine or repetitive in nature

Swanger, who uses her own experience as neurodivergent to help others, said employers should remember that every neurodiverse person is unique. “No two people are alike. When you meet one neurodivergent person, you’ve met one,” she said.

Another benefit to companies is that the IRS offers tax credits and incentives for hiring disabled workers, including, in some cases, neurodiverse individuals.

REDI FOR RETAIL

Walgreens is committed to giving neurodivergent individuals a chance to succeed in the retail industry, said Natalie Pollett, a Westcoast based area field disability inclusion specialist for the drugstore chain. “We want them to have the same opportunities.”

The Walgreens Retail Employees with Disabilities Program (REDI) offers three-tofour weeks of training to teach entry-level prospective employees how to stock shelves, unload trucks, run a cash register and other core retail competencies.

The 20 to 25 hours of training is flexible and individualized, with a focus on customer service, Pollett said. “We want folks to get exposure to everything—merchandising, inventory, stocking, helping with the truck, curbside service.”

The cashier position can be especially daunting for prospective hires. “It’s the one people are most nervous about, but you can simplify the process and make it pretty user friendly,” she said. “Their biggest concern is trying to count cash and having a line stack up,” so designating credit card-only lines can help alleviate feelings of stress.

REDI is offered in partnership with job coaching agencies at 8,500 stores nationwide, according to Pollett, who was a job coach before she joined Walgreens. “We rely on the expertise of the job coach agencies that provide services to folks with disabilities.”

Having a job coach is the only requirement for the program, she adds. “We don’t collect medical or disability information.”

As prospective employees go through the training program, “We’re looking for core competencies. When a person meets the minimum, we flag them and expedite the process, bypassing the personality test,” she said. “We think of this as a working interview. It’s an alternative way of interviewing for the position that is more demonstrative” of candidates’ true skills.

There’s no guarantee of a job, Pollett noted, but everyone involved is working toward that goal. After neurodivergent individuals are hired, REDI team members—and sometimes job coaches—continue to work with them if store managers, co-workers or family members express concerns.

The Job Coach’s Role

A job coach can help ensure that a company successfully hires, supports and retains neurodivergent employees.

Job coaches help identify the skills and breadth of work each specific person should focus on. They provide one-on-one training tailored to the needs of the new employee and assist each employee’s transition into their role.

Job coaches can also offer support during the interview process and help determine how well the job fits, said Ludmila N. Praslova, who is an industrial-organizational psychology professor at Vanguard University of Southern California. “This can also help employers be more comfortable with the transition.”

Once an employee is comfortable with the responsibilities and workload of the job, job coaching is usually phased out.

For retailers looking to partner with job coaches, state vocational rehabilitation agencies are a good place to start. These agencies employ job coaches, have job coaching as part of their vocational rehabilitation counselors’ roles or, more often, refer their clients to (or contract with) various non-profit organizations that provide job coaching.

TWEAKING THE PROCESS

The usual steps convenience stores use to recruit, onboard, train and retain employees can—with some tweaks—be used with neurodivergent individuals.

Effective recruiting is about widening your net, said Swanger.

Swanger calls on companies to use a wide variety of job boards, Craigslist, community organizations and employment consultants.

“Work with job seekers through social media. Search Reddit for different posts. Use keywords customized to your search.”

Before operators advertise for positions, Ludmila N. Praslova, an industrial-organizational psychology professor at Vanguard University of Southern California, recommends carefully cataloguing the various tasks that make up the job in question.

“It could be so many hours of putting things on shelf, so many hours of working

the cash register. In the ad, be very specific. Advertise for just what you need, then you will attract the right kind of person. If you have unnecessary job requirements, you will not find people.”

Flexibility is the one feature that will attract the most neurodivergent candidates to a role. “Many people also like paid time off or paid time off that accrues faster. They’re particularly interested in healthcare that aligns with their needs,” Praslova said.

When onboarding and training neurodivergent workers “You need to be flexible. One size fits none,” Praslova emphasized. She urges companies to customize training as much as possible to assist people with different kinds of needs.

Don’t overload new workers and be sure to limit multitasking. “Many people want to

GIVE PEOPLE WHO DON’T FIT THE MOLD AN OPPORTUNITY TO SHOW THAT THEY CAN CONTRIBUTE.

do one particular thing at a time. Don’t tell them ‘here are 10 things,’” she said. Be sure to allow all employees to feel comfortable asking questions.

It’s best to have a system that looks at each individual’s strengths and adjusts for what that person can best contribute on the job, Praslova said. “For example, someone might not care for social interaction. Another person likes social interaction but doesn’t like doing records. If you can separate the different parts of the job, why not? Give them jobs that align with who they are.”

If a neurodivergent worker is carefully matched to a job in the first place, chances are they won’t need any type of accommodation, she added.

When accommodations are needed, they frequently cost little to nothing.

“Sometimes someone needs a quieter environment. If someone is sensory sensitive, allow them to wear protective gear. Maybe have a quiet shift. … If someone is using a communications device they may need a little extra time,” she said.

Persons with severe dyslexia or other conditions may benefit from signage that includes pictures or is color-coded. Visual reminders such as flash cards are often helpful. It may help to record someone completing a task to train people who best learn visually.

C-store co-workers may be concerned about working with neurodivergent individuals, Swanger said. “Sometimes people on staff will say: Is this going to mean more work for me? I say: ‘my disabilities are not going to make your job harder.’”

Ultimately, the goal is to give people who don’t fit the mold an opportunity to show that they can contribute. Spread the net to recruit them and customize the training to suit them. “Start with smaller tasks. Find out what a person’s strengths are. Find ways of incorporating their passions into their work.”

Stephenie Overman is a freelance writer who specializes in workplace issues.

INSIDE A CAR WASH BUILT FOR NEURODIVERSE EMPLOYEES

BY LAUREN SHANESY

Car wash employees

have to be detail oriented, precise and able to work diligently through a structured set of steps and processes. On top of that, they have to be engaged in their work and a friendly, welcoming face for customers and among the community.

Those characteristics also describe many individuals on the autism spectrum. And yet, according to Rising Tide Car Wash’s website, up to 80% of people with autism are unemployed. Rising Tide, a car wash in Parkland, Florida, is flipping the script—it was founded specifically to hire people with autism.

Thomas D’Eri and his father John founded Rising Tide Car Wash over ten years ago so Thomas’ brother Andrew, who is on the autism spectrum, would have somewhere to work. “At that time, there were not a lot of employment opportunities for Andrew or people with neurodivergengies in general,” said Thomas D’Eri. So the father-son duo bought a struggling car wash, and over the past decade have expanded into a three-location business that now employs just under 100 people with autism—accounting for around 80% of the company’s workforce.

“We looked at a lot of different businesses, and we really liked the car wash because it’s very structured and process-oriented work. Plus it’s community driven, similarly to convenience stores,” said D’Eri. “We thought [a car wash would be] a really nice way to communicate how capable people with autism are.”

Individuals with autism tend to follow processes and rules better than the average person, described D’Eri. “My brother and many of his peers are able to do a great job in the interior cleaning department, for example, because that’s structure-oriented work,” he said. “But one thing I’ve learned from running this business is that you can structure a role effectively for anyone. When you make tasks and responsibilities clear and simple, and use tools that make the role consistent, then people with autism and neurodivergence can excel at any role.”

Rising Tide makes sure its employees succeed by providing them with clear, specific instructions and checklists to follow so they don’t miss a step and can replicate processes consistently. And that starts during the hiring process, which doesn’t have a traditional interview.

“It’s more of a job audition, where we show prospective employees how to work on the cars and evaluate them with a scorecard of sorts. We show them how to do basic tasks like cleaning a window, drying down the car exterior and tires, vacuuming interiors and using the pneumatic air tool. By going through that process where they learn and then show that they can do it, we get a much more accurate idea of whether or not this person can be successful,” explained D’Eri.

Employees then complete a “pre-hire training” for entry level roles that teaches them

to wash the cars in a consistent and timely fashion, and then move on to the onboarding process which includes another series of trainings that helps them get acclimated to the job—all before their first day. “We want them to feel comfortable before arriving on-site for the job,” said D’Eri.

And by structuring the role in a way that speaks to the needs of this employee group, “We now have people with autism in every role across the whole organization, from location managers through maintenance technicians and sales associates,” he said. “Whenever someone struggles, we frame failure as a learning opportunity—which is critical for this group—and look at it as an opportunity to redesign and improve the system that the person is interacting with. And that has allowed us to build a really replicable and resilient operating model, which is better for business. When you want your employees to succeed and train them to do so, your operating model is better.”

Rising Tide’s turnover rate is about 20%—a stark difference from other car washes in the market and the convenience industry at large, which are both over 100%, said D’Eri.

He attests that for these types of retail roles, especially entry level ones, individuals with autism can often be “more engaged” than other candidates. “This is a job of choice for our team members. They really want to be here,

Out-of-the-Box Recruiting

Rising Tide employs close to 100 individuals with autism across its three locations, which are all within a five-mile radius of each other. “And we still have quite a long wait list of people that want to work for us—that’s very different than a normal car wash operation,” said Thomas D’Eri, co-founder of Rising Tide Car Wash.

D’Eri said that once you get the right recruiting process in place, there is a robust talent pipeline of neurodiverse individuals available for hire. “When it comes to hiring neurodiverse employees, business owners tend to stall at the recruiting stage because they use a standardized recruiting process. But that is not effective for this community,” he said.

Sixty percent of Rising Tide’s recruiting happens through the school system, where students with autism are often aging out of their education programs and looking for the next step.

“We go into the local schools and engage with the special education teachers, job coaches and transition coordinators and tell them about our opportunities,” he said. “They can then help us identify candidates.”

Additionally, Rising Tide also sources local community-based programs and nonprofits that serve the neurodiverse community.

“We really use a grassroots recruiting process, and that is much more effective,” he said. “Once you start to build those pipelines and relationships, you will have more people available than then you can actually employ.”

enjoy coming to work and really take pride in what they’re doing. They have so much enthusiasm, sometimes more than a typical employee might have in this type of role.”

Before the D’Eri’s purchased Rising Tide, the former car wash was processing about 35,000 cars per year. “We turned that business around into one that now washes over 170,000 cars a year,” he said. Beyond the businesses successful operating model, he said one of the reasons for its success can be attributed to community response.

“When there is not a lot of differentiation in the quality of service among car washes in your area, supporting a business that employs people with autism or disabilities is definitely a differentiator for customers in our community,” said D’Eri.

10 Year Forecast AheadLooking The Gas Station’s

How will new fuel options, electric charging and the popularity of hybrid vehicles change the forecourt?

BY STEPHEN BENNETT

What will gas stations look like in 2034? What will they be dispensing, and for what kinds of vehicles? How different will they look from today’s gas stations?

The answers to these questions depend largely on upcoming policy and what it will target, said John Eichberger, executive director of the Transportation Energy Institute. “If policy aims to reduce life-cycle carbon emissions and credit carbon reductions throughout the well-to-wheel lifecycle, then I think we’ll start seeing an enhanced attention on low-carbon liquid fuels,” Eichberger said.

“Hydrogen shows some promise.”

THE FUTURE OF FUEL

Policies that aim to reduce carbon emissions could mean biofuel blends will play a bigger role, as could carbon reduction technologies that can be deployed in oil fields, at refineries, at feedstock agricultural fields and at biorefineries to reduce carbon intensity of fuel, Eichberger said. “And to the customer, it should be transparent. No difference. It’s just a fuel with a low-carbon intensity, and that’s a positive thing.”

Jeff Lenard, vice president of strategic industry initiatives for NACS, said, “The best guess as to what the fuels ten years from now will look like is that they’ll look a lot like now, but with some variations. We may see a broader adoption of E15, for instance, into traditional gasoline. We may see more renewable biodiesel, addressing some of the issues related to carbon emissions reduction.”

In Europe, Lenard said, “There’s been a little traction in the way of e-fuels,” which he described as “essentially fuels that are carbon-neutral in how they’re produced, and they act exactly like traditional petroleum products in terms of how they’re dispensed.”

Among other potentially viable alternative fuels, Lenard said, “Hydrogen shows some promise.” But to date hydrogen availability— and therefore its use—is minimal and limited primarily to California, he said. While incentives are making hydrogen a little bit more affordable, it lacks a full-fledged fueling network. “For consumers to become dependent on an alternative source that’s not gasoline or diesel, they must be really comfortable with where they can get it,” Lenard said.

Too much customer choice can backfire, Lenard pointed out. “If there are somehow ten different fuels that are relatively popular, it’s going to be very difficult for anybody to sell all of them very well,” Lenard said. “It’s just too complex. You need too much land. It’s confusing to the driver.”

Because of customers’ desire to have certainty about “which fuels will be available everywhere, we’re not going to see many options,” Lenard said. “It’ll continue to be petroleum. It’ll continue to be EV. And the question is, will something join them or will it be a variation of those two?”

EVALUATING EVS

As ongoing efforts to grow EV usage continue to make progress, their impact will continue to prompt changes at gas stations, Lenard and others said.

“You’re going to see a lot more stores with chargers on the side,” said Eichberger. “But with some notable exceptions I don’t envision that the forecourt with petroleum that we see today is going to be replaced by anything dramatic in the next ten years.” There are 280 million-plus vehicles in the United States and no technology is going to replace those overnight.”

For retailers in California or other jurisdictions where electric vehicle policies are “a little more assertive, it may behoove you to have a couple of chargers,” Eichberger said. Florida, New York and Texas are expected to be the next big growth markets for EVs, but EV charging “doesn’t replace your fuel pump,” he said. “It is an additional service.”

Adding that service means choosing where to place charging ports, and that involves multiple considerations.

“Do you put your chargers in your best parking spots or your worst parking spots?” Lenard asked. “If you put them in your best parking spots, what you’re doing is preventing them from turning over quickly because charging takes 20-30 minutes or longer. And you want those spots to turn over. However, if you put them in the worst spots, then what’s the incentive for somebody to get out of their car and go inside the store?”

He said it’s rare for drivers to go to a gas station and purchase gas without a canopy

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Policies that aim to reduce carbon emissions could mean biofuel blends will play a bigger role.

overhead. By the same token, “very rarely do you charge and find a canopy over you,” he said. “There’s still uncertainty about where chargers fit best. You don’t want to totally redesign everything. It wouldn’t surprise me if the charging site of the future looks more like a Sonic.”

Practical considerations—access to power being a major one—have long dictated decisions of where to place charging spaces. “Early on, the engineers would say, ‘Put the chargers close to the ingress of the power supply so it’s cheaper,’” Eichberger recalled. That approach reduces or limits the amount of conduit and tunneling required. “The problem is that’s usually out by the curb,” Eichberger said.

Many convenience stores that exist today were built in the 1970s, said Joe Bona, founder of Bona Design Lab, a company that designs convenience-petroleum retail sites.

Many of those businesses stand on smaller sites, with limited parking. If a site has eight spaces, and one or two are for employees, operators likely aren’t keen to give up three or four spaces for charging, especially when those spaces will be occupied for 20 minutes, Bona said.

A WIDER REACH

Meanwhile, businesses other than gas stations are installing charge ports. Where and when drivers will charge their EVs and plug-in hybrids is going to change as charging becomes more widespread and much more convenient, said Seth Haas-Levin, vice president of marketing for the Grubbs family of automobile dealerships, which has six locations in Grapevine, Houston and San Antonio, Texas, and one in Tulsa, Oklahoma.

Haas-Levin said, “There are a lot of customers right now who are EV owners who aren’t looking for a gas station” to get a charge. Instead, drivers of EVs look for chargers at their place of work or locations such as their grocery store. “We have a handful of employees who have switched to EVs because they can charge at work,” Haas-Levin said, explaining that Grubbs has installed 48 standard EV charge ports and four fast-charge ports across its dealerships.

In March the EPA issued new rules that were widely seen as favorable to hybrid vehicles. After the rules were announced, General Motors and Ford announced that they were re-committing to production of hybrids.

“Hybrids will continue to gain market share,” Eichberger said. “For the convenience retailer that’s great, because they run on gasoline. They’re more efficient vehicles, but they run on gasoline.”

Haas-Levin noted, “Based on how things are performing in the market, with EV sales as well as gas sales, we feel that a lot of the manufacturers are going to go towards the plug-in hybrid option.”

As to how all this will play out at the convenience retail level in ten years, Lenard said, “The only thing I can say with certainty is that the gas station of the future will be convenient, and that ‘convenient’ will be defined by the customer.”

Convenient, he continued, “is a combination of the cars that are being sold and car buyers’ comfort with their ability to keep the vehicle fully fueled or charged wherever they are.”

Bona discussed the possibility of an EZ Passlike technology application that customers might be able to use one day. Such technology, he said, would automatically recognize a vehicle, the credit card attached to that vehicle and whatever other information it needs to register. “And you could just drive up to the pump, take the nozzle off, fill up and it’s automatically charged. And you just drive away.”

Even as convenience retailing adapts going forward, its basic mission remains much the same, said Bona. He remarked on the current popularity of the term “mobility hubs—it’s a different way of saying convenience store. It’s [about] finding those other opportunities to serve people when they’re going from point A to point B no matter what they drive, whether they’re charging or filling—and when they’re not charging or filling.”

Stephen Bennett is a freelance reporter specializing in fuel marketing and trucking. He is based in Connecticut.

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OveRhEarD at tHE BaCKbaR

Retailers and suppliers offer perspectives on what remains one of the most important traffic drivers in c-stores.

BY LAUREN SHANESY

f you walk into a Rusty Lantern store in New England, you’ll be met with an open, bright entrance thanks to the expansive, unobstructed windows overlooking the forecourt outside. Plants line the windowsills, giving the c-store a homey and comforting feel. What you might notice is missing is the typical backbar that spans the full wall height behind the checkout counter.

The retailer, which has 28 stores in four states, opted for a low-profile tobacco section under the windows that’s not much taller than counter height. It worked with a local millwork provider to design custom fixtures and wooden shelves that help elevate the overall look of the store and make the register more inviting.

“You don’t usually see plants on displays in other convenience stores,” said Keri Weekley, category manager at the food-focused c-store that’s a local hit for its fresh lobster rolls. “But we’re not your typical convenience store. And we want you to walk in and immediately see that.”

Like all retailers, Rusty Lantern’s category managers are grappling with the rapidly changing tobacco inventory as consumer preferences evolve and new products hit the market.

“The product mix is changing so much more frequently than it ever has. There is always something new coming out because the cigarette category is declining, so [suppliers] have to try to make up those dollars. It’s crazy how fast it’s changing,” said Weekley.

“ Vapor is the fastest growing category in the smoke-fre E nicotine space.”

in 2022 to 12.3% in 2023. Overall, smokeless, e-cigarettes, cigars and other tobacco accounted for 91.3% of OTP category sales.

Smokeless products represented 37.0% of other tobacco category sales according to the NACS State of the Industry Report ® of 2023 Data—the largest Other Tobacco Product (OTP) subcategory. The second-largest sales contributor to the category was e-cigarettes at 28.1% of sales, and in addition to cigars at No. 3, the only other subcategory to account for over 10% of category sales was the catchall category “other tobacco,” which includes products like modern oral tobacco. The subcategory grew from 8.0% of category sales

When consumers transition to alternative nicotine products, “vapor is what most adult smokers turn to first,” said a spokesperson from Reynolds American Inc. “Vapor is the fastest growing category in the smoke-free

Reynolds and many other major tobacco manufacturers are transitioning to more smokeless options and are putting more spend behind developing “potentially less risky” alternatives to combustibles. In July, Reynolds launched a nicotine-free vape product. The Sensa line comes in six fruit-infused flavors and follows the company’s ethos for tobacco harm reduction. Globally, Reynolds aims to “have 50 million adult consumers migrate to non-combustible products by 2030. The industry has an opportunity to offer adult smokers who do not wish to quit tobacco products altogether evidence-based, innovative choices that are potentially less risky than traditional combustible cigarettes,” the Reynolds spokesperson told NACS Magazine.

Altria, which has also committed to growing its smoke-free product category, said that smokers “have transitioned to smoke-free products at an accelerated pace. Of the 52 million tobacco consumers, we estimate that nearly 30% exclusively use smoke-free formats.”

Altria is focusing heavily on its recently acquired NJOY brand and e-vapor business. NJOY ACE is currently the only pod-based e-vapor product with market authorization from the FDA, said the company.

And Black Buffalo offers a unique alternative to chewing tobacco—minus the tobacco. The company’s nicotine pouches and dip products are made with tobacco alternatives, and it also carries nicotine-free variations of both products. “Our non-nicotine versions are booming, which I never expected. They’re the number one seller right now,” said Matthew Hanson, chief growth officer at Black Buffalo.

MORE EMPHASIS ON MERCHANDISING

With a sea of products to choose from and limited space due to its fixture design, Rusty Lantern has no room to stock items that won’t sell. “You can’t grow a fixture,” Blanchette joked.

“Now, you’re se E ing very defined sections for cigarettes, smokel Ess, new modern oral products and vapes so customers know wher E to loOk.”

“Everybody is vying for space [in the backbar], and we have to make sure we have space for all of the items that are growing, while still keeping true to the rest of the category and servicing our consumer needs,” she explained.

“It’s a really creative process to fine tune the planograms and sometimes it comes down to two facings—just two or three little spots that can make or break some categories.”

Notes LessonsfromLearned

Retailers in any state can learn a lesson from the regulatory challenges that retailers like Lonnie McQuirter, owner of 36 Lyn Refuel Station in Minneapolis, and Rusty Lantern have to navigate.

“People should really think about what their business model will look like if [these restrictions] happen on a federal level,” said McQuirter. “It wouldn’t hurt to look at places like Minneapolis, San Francisco and Massachusetts to see what a potential future might look like. I’d encourage retailers that operate in more hands-off states, where they’re allowed to sell many products, to see how other retailers are getting by.”

He added that he wouldn’t have been able to pivot his business strategies and adapt to new regulations so well if he hadn’t networked with European retailers that went through similar changes years before. “It opened my eyes to see some of that happening in real time. And while the challenges others face are different, there is always something to take away and learn from.”

Reynolds said that retailers who are dedicat ing “highly visible” space to new smokeless products and showcasing them in the backbar “are growing in the smoke-free space at a faster pace than their counterparts.”

Hanson agreed, adding that “A couple years ago, you would have seen all these products intermingled and it used to feel like anything goes in the backbar,” he said. “Now, you’re seeing very defined sections for cigarettes, smokeless, new modern oral products and vapes so customers know where to look. And the merchandising has stepped up in a big way, with well lit, very clearly defined and maintained spaces for the next generation of nicotine products.”

COMPLIANCE COMPLICATIONS

Keeping up with the latest product innovations also means retailers need to stay vigilant about compliance as illicit products flood the market. At the time of publication, the FDA has only approved 34 e-cigarette products out of millions of applications, and much uncertainty remains as to what retailers can and cannot sell.

“There are still many products that the FDA hasn’t made determinations on, and they’ve granted some exceptions to products they’ve denied. This has created mass confusion within the industry of which products can be on shelves and which can’t,” said Anna Ready Blom, director of government relations at NACS. “NACS has continually asked FDA for clarity, but they have refused, which is why we are now looking at federal legislation to help.”

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“ w e E r R on the side of caution, because ther E are a lot of products wher E we’re not entirely sure of the legality”

Lonnie McQuirter, who owns 36 Lyn Refuel Station in Minneapolis, takes a conservative approach in the strictly regulated city.

“We’ve made the decision not to really be first in the space when it comes to stocking products on the tobacco side. We err on the side of caution, because there are a lot of products where we’re not entirely sure of the legality, and I’m not willing to take the chance of harm coming to the consumer for some reason. It’s better for me to take a conservative approach,” he explained.

In today’s current market rife with illicit products, “compliance will rule the day,” said Hanson. “That’s responsible marketing from the manufacturing side as well as responsible age verification at the retail side. At Black Buffalo, we live and die by compliance, and

we have earned the right to exist by getting approved by the FDA. The brands that do that have seen a positive reception from retailers who know they’re dealing with a company that’s built for the long haul and isn’t just a fast money mover trying to make a quick buck

For Rusty Lantern, which operates stores in multiple municipalities and states, the local piecemeal approach to regulations and approved products—which vary by town, can often be inconsistent and are updated without warning—presents a different host of compli-

On a state-wide level, updating pricing information or inventory in the retailer’s system is easy, but when local cities and towns change a rule it’s tough to individually track and manage, Weekley and Blanchette said. Take menthol and flavor bans for example, which in New England are regularly enacted on a town-by-town basis. There is of course the state-wide Massachusetts ban, but Rusty Lantern’s category managers said there are six cities in Maine that have individual flavor bans and more towns are likely to follow suit.

Plus, the local councils often don’t announce or update retailers on new changes, adding another layer of complication.

“We obviously want to be compliant and are trying to be at every step and with every law. But it can be a daunting task, and the towns are not proactive about letting us know when things change,” said Weekley. “Sometimes we hear something secondhand and have to scramble to adhere. Overall it’s hard to wrangle because tobacco regulations are ever-evolving.”

Retailers should make a concerted effort to “stay in front of policymakers and remind them that we’re their partner,” said McQuirter. “The convenience industry has the longest track record of selling age-restricted products in the U.S., and we are the best outlets for these types of products. We’ve been doing this for longer than any other industry. There are bad actors out there just like anywhere, but we are very much the good guys when it comes to compliance.”

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

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Weathering

Making sure that c-stores can be the last to close and the first to open in the face of a crisis requires constant planning.

BY LEAH ASH

Weathering the Storm

Wildfires, snowstorms:hurricanes,

Establishing a plan, knowing the protocol and communicating the details sets the stage for operational success when dealing with these and similar situations.

Operators are more likely to have a plan for how to handle a crisis than ever before, says Ned Bowman, executive director at the Florida Petroleum Marketers Association (FPMA). “There has been a progression of members being more proactive. In Florida, 90% of the c-stores now have a plan.”

Peak hurricane season in the state generally runs from late August into October. FPMA prompts its members to get ready well in advance with an annual call with meteorologists. That call offers a glimpse of what the experts are seeing and outlines projections for the upcoming hurricane season.

Modify the plan as needed, but if you don’t have a plan going in, you have nothing to start with.”

The number one concern is always the health and safety of employees, Bowman said. Operators must consider not only safety concerns for when a storm hits but plan for employee-related problems that can impact labor levels after the storm. In Florida, often the biggest impact on a business is the flooding afterward, Bowman said. “It’s the after effect, and that extends to employees, who may have had severe damage to their houses. People think convenience stores will reopen right away after a big storm, but that’s not often how it works, particularly if staff cannot return to work.”

During Hurricane Ian in September 2022, some convenience stores paid double wages to those who stayed and worked, Bowman said. “A lot of variables keep employees there,” he said. “Do they have elderly parents that might not be able to evacuate? Do they need to board up their house? It’s a balancing act of what to do.”

Across the board, all three crisis-savvy operators NACS spoke to for this story—Redwood Oil, Casey’s and RaceTrac—emphasized that employee safety comes first. Each company has a slightly different approach to preparing and operating during a natural disaster, but all approaches have two things in common: an intentional, well-defined idea of how to handle operations, and the flexibility for on-site personnel to adjust the plan and make decisions in the moment.

REDWOOD OIL

Thinking about what may happen ahead of time is critical, said Lionel Vincenti, vice president of operations and marketing for Redwood Oil, a mostly Chevron-branded operator in California. “Thinking about every ‘what if’ with those who have been through it before and can anticipate things is critical. Brainstorm with as many people as possible who can offer knowledge from different angles.”

Resources are available to download for free at convenience.org/ disasterplan.

Preparing for Mother Nature

Operating with a first to open, last to close philosophy requires detailed planning and preparations—and NACS offers resources to help operators prepare for the worst. To assist retailers in developing a plan to weather emergencies, NACS developed an emergency preparedness program with support from the National Institute for Hometown Security through the U.S. Department of Homeland Security.

The NACS Convenience Store Emergency Planning and Job Aid resources help convenience stores enhance their resiliency as they plan, prepare and recover from a disaster. The Convenience Store Emergency Planning and Job Evaluation guide provides a great starting point, as it helps retailers assess their current emergency plans or develop their own.

hosted firefighters. “The fire crew set up base camp right behind the store and used us as a food box,” Vincenti said. “We have full kitchens and cook from scratch and were able to provide them with basic necessities.”

While it is difficult to prepare for every unique situation, Redwood Oil has an emergency kit for store managers. When the need arises, the kit includes both provisions and guidance. It contains a checklist of what to do both inside and outside the store. It is also stocked with N95 masks and other essentials. In 2019, Redwood Oil invested in generators that now enable stores to remain open as long as possible.

The store manager kit “details things like how to manage traffic, how to manage their own safety and staff safety, and what they need to do with the generator,” Vincenti said. “It’s not a training manual per se, but it captures best practices from those who have managed through it before. The procedures and checklists are key in these situations where there is not much time to think in the moment.”

Redwood Oil has been through numerous wildfires. In fact, when Vincenti joined the company five years ago, it was in the midst of enduring widespread wildfires in its area of operation.

“Many people had to evacuate the area. Some stores were not accessible because streets were closed,” he recalled. Things can quickly escalate in this scenario, he noted. Sometimes customers panic about purchasing gasoline, which may require an employee to manage lines of cars and potentially frustrated customers.

Sometimes the retailer has to juggle different approaches at the same time. For example, during one wildfire, a Redwood Oil store remained open to serve its normal customer base (only part of the town was evacuated), while at the same time the store essentially

Vincenti stressed the importance of not working in silos in these situations. Redwood Oil gathers key constituents at headquarters in a war room-style approach. “Being in the same room together, we can make decisions together as fast as the information comes in,” he said. “It makes sure everyone is exposed to the issues of the moment, avoids working in verticals and aligns communications.”

RACETRAC

RaceTrac, which has many locations in the Southeast, including in Florida, gets started preparing for tropical storms well before storm season. The retailer conducts an annual review every spring to make process adjustments to the chain’s core response plan, said Drew Gardner, senior operations project manager for RaceTrac. “All stores have a preparedness guide that is referenced, as well as a hurricane tote with necessary supplies,” he said. Review sessions are also conducted after each event and again at the end of hurricane season.

“The fundamental core plan does not change much from a structure standpoint,” Gardner said. “However, we absolutely are always adjusting the execution of the plan.”

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Casey’s has a community playbook that lets local leaders respond nimbly when their locales need assistance.

We believe the process for our store teams has to be as easy to execute as possible, regardless of if it is their first storm or their 10th storm.”

One main consideration is the ease of that execution. “We believe the process for our store teams has to be as easy to execute as possible, regardless of if it is their first storm or their 10th storm,” he said.

RaceTrac’s Boots on the Ground plan is comprised of two portions: Jump Teams and Local Resources. Jump Teams are volunteers from the in-house maintenance team, field operations and field human resources teams— specifically, individuals who “raise their hand” in May when a list of names is compiled. “These volunteers cover the entire fleet, from Texas to Indiana,” Gardner said.

During what RaceTrac dubs Level 2 activation, Jump Team members are confirmed based on who can respond for the specific event. HR then secures hotel rooms in areas outside the main impact zone. Jump Teams depart home locations early to ensure they can arrive on-site as soon as it’s safe to do so, Gardner said. These teams bring critical supplies with them, including items such as extra parts for fuel dispensers, IT equipment and generators. “Jump Teams pivot quite often to support multiple stores depending on need,” he added.

When Hurricane Ian hit Florida in 2022, the governor at the time, Ron DeSantis, offered police escorts to any of the c-stores that agreed to remain open as long as possible.

“Some stores took him up on that,” Bowman said. “It was a forward-thinking approach, since one problem is that traffic gets clogged getting off the Florida Keys with only one highway route to evacuate.”

The list of possible challenges to navigate can seem endless, from evacuation routes being limited to high winds preventing trucks from crossing over bridges, which in turn prevents gasoline being delivered to stores— another obstacle that happened with Ian. Indeed, Ian was so destructive that at least one c-store in Fort Myers, Florida, only just recently reopened, Bowman said.

Operators undoubtedly must be ready to adjust on the fly in these situations, but having an initial roadmap will ensure a starting point. “Modify the plan as needed,” Bowman said, “but if you don’t have a plan going in, you have nothing to start with.”

Beyond a starting point, Bowman recommends reevaluating the plan each year and kicking off the review session with these

Brainstorm with

as many people as possible who can offer knowledge from different angles.”

critical questions: Have any new leaders come into the organization? Is everyone on board? Do we need to adjust anything as we consider this storm (or wildfire, etc.)?

Depending on the storm’s track, a company may opt to move personnel around to help at different locations. Indeed, that is exactly how RaceTrac approached things—after a major Florida hurricane, the retailer moved employees around to ensure proper staffing at stores. “When you have employees and regional managers who have been through it before, those are key employees to rely on,” Bowman said. “It’s a constant assessment of staff capability and labor numbers and trying to figure out assets and feasibility.”

When crisis mode hits, people come together to figure out where and how to get fuel and supplies. “There is a lot of outside-the-box thinking that happens,” Bowman said. “That’s when a lot of leadership happens, and we get things done.”

CASEY’S

At Casey’s, when a crisis hits, the retailer benefits from its local field leadership providing updates and ensuring that first and foremost its team members are safe, said Katie Petru, director of communications and community at Casey’s. “We have an amazing network of field leaders and store managers who see what is happening on the ground firsthand and communicate to us. For example, telling us where to ship pallets of water.”

To help local Casey’s best serve their communities—both in times of crisis and during normal operations—the company created a community playbook. Petru said that it offers guidance on how much retail value of product the store can donate, how many pizzas the store can drop off, etc. “We organized the playbook in the last couple of years, and it helps our store teams be empowered to take action and do what they would like to do, be agile and make decisions quickly,” she said.

In addition, Casey’s has an ongoing relationship with the American Red Cross as the company’s disaster preparedness and relief partner. Casey’s jumped into action with the American Red Cross following a major outbreak of tornadoes in April, when dozens of tornadoes tore through communities ranging from Texas to Iowa.

Immediately following the devastating storms, Casey’s took action, launching a roundup campaign at Casey’s stores in Iowa, Nebraska and Oklahoma, with all proceeds supporting the American Red Cross. The retailer also made a $10,000 donation to the Red Cross to help communities that were ravaged by tornadoes.

Convenience stores are often the backbones of their communities, especially in emergency situations and during natural disasters. C-stores typically stay in operation as long as possible without endangering employees, and then are the first stores to reopen after a disaster. To slightly alter a phrase often cited as the postman’s motto, “neither rain, nor snow, nor sleet, nor hail, nor hurricane, nor wildfire, nor tornado shall keep the c-store from its appointed role in the community.”

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

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Future-Proofing Convenience

Technology advancements, foodservice innovations and private label products cater to changing tastes.

BY ANGEL ABCEDE

With millennials maturing and the Gen Z crowd becoming young adults, convenience retailers find customers’ shifting dispositions both a challenge and an opportunity. The question: How to stay relevant?

Retailers addressing change head on often find solutions coming from trusted business partners, many of whom have invested real time and resources to support these retailers.

“Our customers are consumers, and expectations of all consumers have changed in recent years” said Sean Luce, vice president of sales for convenience, travel and military for McLane, Temple, Texas. “When our customers win, we win and serving as a strategic partner enables us to make the most of our partnership.”

McLane has developed a series of programs designed to meet retailers where they are in their journey, whether they are feeling price pressures, wanting to stock new and innovative products in their store, or needing to expand their foodservice offering in order to combat the declining tobacco sales, Luce said.

Here is a rundown of these programs:

• Emerging Brands . A digital item discovery tool at McLaneMarketplace.com that allows retailers to test new up-and-coming brands and products.

• Private Label. An opportunity for retailers to increase margin and provide consumer value on a host of packaged goods through a private-label strategy.

• McLane Fresh. A three-part program involving labor-saving equipment and a variety of menu options from food to cold coffee.

Luce said that as a distributor it is vital to communicate—to become a strategic partner with retailers by having intimate, thoughtful conversations.

“Our customers tell us, ‘I want to grow past where I am now,’” Luce said. “We can help them do that.”

RETAIL INNOVATION

Retailers may find the notion of keeping up with changing consumer trends hard to grasp. A clearer vision of the issue may be where an interesting product just seen on an episode of TV’s “Shark Tank” suddenly appears on a c-store shelf.

Describing McLane’s new Emerging Brands platform, Michelle Patterson, vice president, marketing and communications for McLane, said retailers wanting new products—for instance, items from a new-to-market brand—can have samples shipped to stores or category managers without hassle.

McLane’s marketplace allows retailers to shop for local, trending and purpose-driven products gaining momentum in the grocery channel, on social media or in emerging categories completely new to c-stores. As an example, Patterson mentioned freeze-dried candy. Retailers saw these items on social media and we were able to quickly onboard two new brands. “You can see the perfect TikTok video today, then authorize and order it in the McLane system,” she said. “Along those lines, we have five brands from ‘Shark Tank.’”

Brought to you by McLane, a NACS Hunter Club member.

Building a Foodservice Culture

For retailers interested in mastering foodservice, a key component is food safety and the foundational task of building what many describe as a “foodservice culture,” according to Terry Levee, senior director of food safety and quality assurance for McLane.

Creating a robust food safety culture begins at the top, fostering a mindset centered on attitudes, behaviors, practices, and prioritizing food safety. Here are key components to help you establish a strong food safety culture within your organization:

• Start at the top. An effective food-safety culture starts with c-suite leaders. They must prioritize adherence to standards and allow those values to cascade throughout the company.

• Policies and procedures. Establish rules for food safety involving delivery times, storage temperature and sanitation. Companies then need to back up what they preach through ongoing training, measurement and accountability.

• Continual messaging and reinforcement. Critical to a foodservice culture is constantly bringing up food safety at regular meetings, conducting audits and posting signage and reminders throughout the company’s workspaces.

The program further encourages retail experimentation and innovation with low-minimum orders reducing financial investment and inventory commitments to sample and stock new or niche products. Retailers can order one case or a pallet, depending on the scale of their test. “It’s a great way to [test products and] differentiate their store,” Patterson said.

At the same time, retailers are spared the complexity of signing on and building relationships with dozens of up-and-coming vendors. “From a retailer’s perspective, it’s a lot of work to deal with vendors, select product and if something is not working, find a way to adjust quickly at shelf.”

Having just launched last fall, McLane’s Emerging Brands program currently offers approximately 1,000 products from more than 140 brands and counting. Popular c-store categories like snacks and candy are well represented, but the assortment also features health, beauty, and wellness items and pet products. The platform is also distinguished by the capability to search and filter according to criteria important to retailers and consumers, such as location, diet, and brand values. This program is unique to the industry, Patterson said. “It’s a more comprehensive way to help customers discover new products and find winners that resonate with end consumers.”

FOODSERVICE FINESSE

Another pillar of support comes with foodservice. The McLane Fresh program offers what it calls an “end-to-end solution,” involving everything from equipment and in-store merchandising to quality assurance and food safety.

In terms of menu offerings, McLane has three core programs. First is its Central Eats program, a grab-and-go brand that includes a range of packaged, freshly prepared options, including snacks, parfaits, cut fruit, hot and cold sandwiches, wraps and salads.

Then beverages come into play with its CupZa! offer of coffee and cold beverages like teas and lemonades. The brand includes

“It’s a more comprehensive way to help customers find winners.”

– Michelle Patterson, vice president, marketing and communications for McLane.

“Our customers tell us, ‘I want to grow past where I am now.’ We can help them do that.”

– Sean Luce, vice president of sales for convenience, travel and military, McLane.

nitro and cold brew coffee options, a technology enabled bean-to-cup coffee component and a customizable, flavored-syrup shot program.

Finally, McLane developed its Prendisimo pizza brand, a freezer-to-oven program tailored for the convenience-retail environment.

“With fluctuation in other categories, retailers are looking to foodservice to drive sales,” Luce said. “It’s something that we’ve more than doubled down on this year, with our food innovation kitchen, chefs and national coffee and pizza programs.”

Equipment and technology also play a role, said Terry Levee, senior director of food safety and quality assurance for McLane. “Our goal is to provide fresh and wholesome products in the safest way possible,” he said. “For some, that means providing equipment within a package.

The easy-to-use equipment saves time and effort, allowing retailers to redirect their resources to customers themselves.”

PRIVATE LABEL

While foodservice can bolster relevancy and a sense of uniqueness for a c-store, another strategy in McLane’s arsenal has been a growing track record for boosting profits. Through yet another pillar of support, the distributor offers a private label portfolio with over 240 high-quality SKUs from McLane’s Consumer Value Products (CVP) program, enabling retailers to offer attractive prices without sacrificing gross margins, according to Teresa Voelter, director of private label for McLane.

“Over the past several years, private label sales have been increasing while national brands have seen declines, in both dollars and units,” Voelter said. “[Private label] within convenience is up as well.”

In choosing what products to bring into its program, CVP uses industry data and information from its own category management teams to bring new innovation to the shelf. CVP offers a wide range of products across many categories, and gross margins ranging from 8% to over 70% on items within the portfolio.

An important aspect of any private label offering is quality, Voelter said. “Quality is a must,” she said. “Consumers coming into stores have an expectation of quality and value. They want the same experience in private label as with national brands.”

CVP recently redesigned their Yumbees candy brand to better meet consumer expectations. Proprietary c-store consumer research indicates that Yumbees new package design outperforms national brands, scoring above average on key measures for value, fun packaging, quality, and kid-friendliness.

Other brands in the portfolio have added even more on-trend, relevant products for consumers, such as the Beau Dacious pet line, which is launching upcycled dog treats made from reused ingredients that otherwise would have been discarded, which contributes to a more sustainable food system.

Hometown Market snacks such as nuts and trail mix, everyday home essentials, and RoadTech automotive supplies are other popular private label lines.

TABLE STAKES

In the end, strategizing for the future is critical, but equally important for McLane is providing the basics, Luce said. These fundamentals include on-time delivery “in full,” meaning no product orders being short or substituted.

“We always talk about removing friction from the system,” Luce said. “We want to be easy to work with.”

“It’s all about making sure we’re aligned with our customers,” he said, “whether it’s at the corporate level or with a driver interaction at the store, we want to make sure we are adding value.”

Cool New Products Guide

This advertorial-style guide of services and packaging appears monthly and is an information-packed tour of ideas and approaches that can change how consumers view your store or choose your brand. It spotlights the newest thinking in convenience and fuel retailing and gives you an advance look at ways of staying in front of industry trends. Products are categorized the same way we organize the Cool New Products Preview Room at the NACS Show each year in October— New Design, New to the Industry, New Flavors, Health & Wellness, Green (EcoFriendly), New Services and New Technology Products are considered “new” this year if they’ve been introduced since October 2023. The products featured here also can be seen in the Cool New Products Discovery Center at www.convenience.org/coolnewproducts

Vita Coco coconut juice is a sweet, hydrating drink that’s perfect with a meal, as a workday pick-me-up, or whenever you need a flavorful boost. Enjoy Vita Coco coconut juice in two delicious flavors: Original with Pulp (available now) and Piña Colada (coming soon)!

Gain 20-40% more facings in retail’s top-seller. The WonderBar Merchandising System easily increases your SKUs within the same retail footprint and improves shopability. Enjoy the profit increase as your product stays consistently fronted in your customer’s view. Due to WonderBar’s versatility and tray customization, this merchandising system can be deployed throughout your store with proven results in candy, salty snacks, jerky and storewide categories. Proudly made in the USA for over 55 years, rejuvenate your merchandising with Trion; (800) 444-4665, TrionOnline.com

Vita Coco Coconut Juice Original with Pulp

The Vita Coco Company

NEW FLAVORS

NEW DESIGN

Big Machine Distillery

Spiked Wine Cocktails

NEW! The Party’s in The Pouch!

C-stores have spoken and Big Machine Distillery listened! Introducing the all-new wine-based version of our popular Spiked Vodka Coolers. These high ABV (12.5%), single serve, ready-to-drink, wine-based cocktails are available in eight delicious “all-season” flavors: Espresso Martini, Orange Chocolate Swirl, Chocolate Mint Twist, Cinnamon Caramel Crunch, Luscious Lemon Drop, Mango Margarita, Passion Paradise, & Pina Colada Bliss. Spiked Wine Cocktails will be a huge hit with their C-store-specific display racks that are perfect for both cold boxes and countertops. Spiked Wine Cocktails are delicious non-carbonated, wine-based RTD’s in resealable pouches. Enjoy them chilled as a cocktail, or frozen as a boozy slushy!

Reach us at SET@BigMachineDistillery.com & learn more at www.SpikedCoolers.com.

Roller Hot Dog Grill C. Cretors and Company

Contact Shelly Olesen at 847.616.6901 or visit www.cretors.com. See us at NACS Show, booth #C4430.

Goya Foods, Inc.

GOYA® Chickpea Puffs

GOYA® INTRODUCES CHICKPEA PUFFS

The bold Latin flavor of the new Chickpea Puffs from GOYA® will have your customers smiling. They offer the unique Latin flavors your shoppers want, like Chile Limón, Elote, or Churro, with the authenticity only GOYA® can deliver. They’re made from a wonderful mix of chickpea flour, rice flour, pea protein, cassava starch, sunflower oil, and seasoned with natural extracts, spices and other ingredients. They’re nut free, Kosher, vegan and gluten free. These Chickpea Puffs are available in 1 oz. and 4 oz. sizes, catering to different preferences and ensuring convenience for your customers.

For more details, contact your GOYA® representative or email salesinfo@goya.com

Johnsonville®

Chipotle Cheddar Sausage Links

Get Roller Grill Sales Rolling

Drive traffic and sales with Johnsonville’s new on-trend flavor, Chipotle Cheddar sausage! Not only is a bold and spicy addition to your roller grill, it is also the winner of the Best New Product award in the lunch category for CSN Foodservice. That’s the quality you get from America’s #1 Sausage brand.* Visit us at the 2024 NACS Show, Booth #C5002 *IRI 1/7/24

KeHE Natural & Organic, Specialty, and Fresh Food Distributor

products for Convenience

KeHE carries over 8,000 brands of natural, organic, specialty, and fresh products, to satisfy your health-conscious, on-the-go consumers. In addition to a wide assortment of fresh cooler items, KeHE offers over 40+ turnkey, customizable, segment sets incorporating high volume and high growth brands and designed for small-footprint and limited assortment retail formats.

KeHE supports your business with merchandising and delivery services that include DC-to-DC delivery with order minimum OR direct store drop ship delivery with no minimum order. Email: KariConrad.Convenience@kehe.com for Your Healthy Sales Solutions!

Krispy Krunchy Chicken® NEW

Cajun Chicken Sandwich

Quality, Craveability, Profitability.

Krispy Krunchy Chicken’s® new Cajun Chicken Sandwich is the addition to your foodservice offering that will take you to a whole new level! Crafted with a whole muscle, all white meat chicken breast fillet that has been pre-marinated in our proprietary blend of mild Cajun spices, it’s coated in our famous breading, topped with our signature honey sauce and two pickles, and served on a warm brioche bun. Designed for those on the go, this sandwich is the perfect complement to our bone-in chicken and amazing tenders, delivering the crispy, juicy, and flavorful experience you expect from Krispy Krunchy® at an exceptional value. Visit krispykrunchy.com/krispy-krunchy-program to learn more about adding KKC to your store!

REIGN Total Body Fuel / Monster Energy Corp.

REIGN Storm

Harness the Power of Great Tasting Clean Energy.

REIGN Storm contains ZERO sugar, just 10 calories, 200mg of plant based caffeine, is packed with B vitamins, Biotin and an immunity support blend containing Zinc, Vitamin A and C. No added preservatives, sodium benzoate or potassium sorbate, artificially sourced flavors or colors, high fructose corn syrup or BS claims. Take your world by Storm! For more information, please visit reignstorm.com

Premier Manufacturing

NEW TO THE INDUSTRY

Utilizing pharmaceutical-grade synthetic nicotine, NIC-S offers an incomparable, 100% tobacco-free experience. NIC-S revolutionizes nicotine enjoyment by only using pharmaceuticalgrade, non-tobacco synthetic nicotine, meticulously crafted to isolate S-type molecules. NIC-S delivers a consistent and unparallel premium quality in flavor and nicotine experience with every pouch. Every flavor is thoughtfully blended to satisfy the most demanding connoisseurs. Prior to packaging, each NIC-S Nicotine Pouch is delicately moistened with water, ensuring the ideal level of moisture for maximum enjoyment. Savor the flavor and enjoy your nicotine moment. NIC-S is smoke-free, sugar-free, discreet, comfortable and does not impact your surroundings. Available in six flavors: mint, wintergreen, cinnamon, berry, orange and flavor free in 3mg, 6mg and 9mg strengths. NIC-S represents a pioneering breakthrough in nicotine delivery.

Flash Sales Inc.

Z!NGHA – Double Nasal Inhaler

Revitalize Your Senses!

HEALTH WELLNESS

GALLO

André Wine Cocktail Cans

NEW André Wine Cocktail Cans

Experience the power of aromatherapy with Z!NGHA Double Nasal Inhaler. Our unique double-tube design delivers an instant surge of wellness, perfect for those seeking a caffeine or sugar alternative, a nicotine substitute, or just a moment of calm, offering a natural way to refresh, energize, and uplift your mood. Available in versatile flavors, from the invigorating Fruit Collection to the soothing 100% Essential Oils Collection, our mint-based collections cater to every preference. Ideal for gas stations, spas, convenience stores, vape shops, gift shops, and pharmacies. Visit www.zngha.com

Inline Plastics

Andre, the #1 California Champagne brand, is now serving up mimosas in NEW on-the-go formats! Each 375mL can contains 3 cocktails at 10% ABV, providing a superior value at a great price. These are available in two refreshing flavors: Pineapple Mimosa & Strawberry Mimosa. Capitalize on the growing canned premixed cocktails segment by offering these to your customers cold.

Savor

Seal! Safe-T-Chef® New Flat Lid Options

the

Secure

Inline Plastics’ new Safe-T-Chef® additions are a game changer for grocers and convenience stores! This groundbreaking polypropylene product line is here to spice up your hot food packaging. Featuring cutting-edge patented tamper protection, these all-clear containers keep your culinary creations secure. Say goodbye to messy leaks and hello to worry-free transportation! Whether meal prepping or sending customers home with leftovers, Safe-T-Chef® has got you covered. Get ready to turn up the heat on food safety– your taste buds (and your customers) will thank you!

NEW PolarView Viewing Windows

PolarView telescoping windows are an indispensable element in establishing an environment conducive to showing products. Ideal for walk-in coolers and freezers, such as beer caves or food prep areas, these lightweight windows are DOE compliant and offer increased visibility for viewing displays. With a focus on customer appeal and adaptability, and a fast and easy installation process, Thermoseal’s aluminum-framed viewing windows are the perfect solution for businesses seeking to enhance their visual appeal while maintaining energy efficiency. www.thermoseal.com

Sunny Sky Products

Hershey’s Cold Brew Mocha Latte

NEW TO THE INDUSTRY

Stateside Brands

Surfside Starter Variety 8-Pack

Hershey’s Cold Brew Mocha Latte

We are thrilled to announce the launch of our newest product innovation, Hershey’s Cold Brew Mocha Latte. This delectable beverage combines the rich, smooth taste of cold brew coffee with the beloved flavor of real Hershey’s cocoa, creating a delightful treat for chocolate lovers. Contact Sunny Sky Products for samples!

Phone: (877) 235-6466 | Email: info@sunnyskyproducts.com

Fast Growing Spirit RTD Brand

Surfside Iced Tea + Vodka is made with vodka, real brewed tea, tastes absolutely delicious and has only 100 calories and 0 bubbles. Surfside is the #1 Selling Iced Tea + Vodka Variety 8-Pack SKU for 2024.

Please contact National Accounts Director Bobby to learn more about Surfside: Bobby.B@federaldistilling.com | 571.449.1276 | *Source: NIQ All Outlets L4 weeks ending June 29, 2024

Cool New Products Discovery Center NACS

Access New Products Year Round

Thirty-thousand new products enter the market each year, and with innovation making up to 20% of a convenience store’s set, new products are critical. We can help. NACS Cool New Products help you to find new packaging solutions, merchandising displays, technology, product designs, exciting new flavors and more. We have several year-round ways for you to discover what’s new—and cool—in the convenience channel.

Check it out here: www.convenience.org/CNP

GAS STATION GOURMET

Yo!Boca!Taco! is the Talk of the Town

The Massachusetts c-store gained local notoriety after a viral TikTok video of its tacos.

BY AL HEBERT

Some convenience retailers come up in the business—others are drawn to it seemingly out of the blue. Such was the case for K.C. Ueberroth, owner of Yo!Boca!Taco! with locations in Wayland and Sturbridge, Massachusetts.

The now-owner had worked in a family hotel business for 15 years when he decided to relocate across the country from the West Coast.

“I saw a picture of the gas station and was drawn to it. I didn’t even know where the town it was located in was,” said Ueberroth. “I had no experience

in the business when I got into it, but I thought I could use my marketing skills.”

When he took over the business, he discovered that “there were many more complications” than he expected. “People felt like it was just a gas station. The c-store was stripped down, and so I wanted to make the c-store more relevant,” he said. He changed everything in the station and started selling tacos out of an unused section of the store. Yo!Boca!Taco! opened in May 2022.

WORD OF MOUTH

The rent for the building was going up, and Ueberroth had extra interior space that wasn’t being used. When a friend suggested putting a taco truck outside, he did some research. “Personally, I love tacos. But it was complicated to do— there were limitations on food trucks within the city,” he recalled.

“I had $50,000 total to spend total, so I had to get creative to set the kitchen up,” he said.

With some more advice from Carlos Magalhaes, the founder of Fuel America Coffee, under his belt, he started serving the original Yo!Boca!Taco!

My biggest competitor had a Dunkin’. I thought, ‘how could I do this inside the store, but with tacos?’”

Instead, he studied the Dunkin’ model. “They owned the area. My biggest competitor had a Dunkin’. I thought, ‘how could I do this inside the store, but with tacos?’”

The thought ignited his taco quest. “I tried every taco place in Boston. I found the best one and asked if they would mentor me,” he said. That shop—in his opinion—was Taqueria El Amigo, whose cooks from Tijuana, Mexico, taught him what sauces were popular and how to set up a kitchen.

“We kept it simple—a Mexican style street taco. Then, we ended up working with a vendor from Mexico and decided to introduce burritos,” he said. “We also do a breakfast taco that is popular. No one else does a breakfast taco around here.”

People are blown away by the tacos that pop with flavor, Ueberroth said. “Our tacos are moist and juicy. People want to buy the meat.”

The key to the success of the food is the quality of the ingredients, he added.

“We use an award-winning tortilla company. We use made-from-scratch black and pinto beans as well as homemade rice,” he said. “It’s kind of like a band. You put a world class drummer next to a world class bassist and they are

going to play well together. It’s why we end up voted as the best burrito in the state. I’m not a chef, but the one thing I’m good at is the details and I pay attention to what works.”

Soon, word began to spread about the store’s tacos and a viral TikTok video put Yo!Boca!Taco! on the map.

“A guy named Matt Shearer from WBZ radio reached out to me. He has a big following and we got one million views from his video,” Ueberroth said. “Then we got really packed. People made trips out to see us and we were doing double the sales.”

That lead to other media, including a feature in the Boston Globe. “We kind of became media darlings. I was a marketing guy, but did no marketing,” he said.

THE PERFECT COMBO

However, if you have great food, you want everyone to know about it. Ueberroth came up with the idea for Pass It On, a program where he surprises people by bringing them lunch or breakfast from the store. “We ask them who they think should get the next order. Rather than spend the money on virtual stuff, go meet your neighbors,” he said.

Ueberroth gets a kick out of seeing the expression on the faces of first-time customers who can’t wrap their head

and he suggested using my art,” he said. “I draw pictures of people who come in day in and day out. Certain people really want to be up there. It’s an unwritten thing. The drawings are fun and playful,” he said.

around a gas station having great food.

“It’s fun to watch them come into the gas station. They’re surprised to see food, and when they find out we have tacos they wonder what universe they have stepped into,” he said.

He said the customer base is also very diverse. “We’ll have a grandmother in line along with blue collar workers. A lot of our employees are Latin American, and people come in and like to speak Spanish with them,” he added.

Customers are also often struck by the sense of fun in the store—and by Ueberroth’s drawings on the walls.

“When I was growing up, I liked art. We were working on logos and designs with an artist, so I drew up a few ideas

Ueberroth recently opened a second location in Sturbridge, Massachusetts. “It’s 45 miles away on the border of Connecticut. It’s so far away that no one knew us, but people still liked us.”

He estimates that he’s made at least 100,000 tacos and is now looking toward the future. “I have a lot of bucket list items—it would be fun to own the land and gas station and have my own brand of gas,” he said. “I’d also like to work with other stations to help them. I could help a lot of struggling c-stores that are underperforming, help them build a brand and help turn things around.”

For aspiring business owners, he said that adding food to a gas station is the perfect combination because it allows you to offer affordably priced food—a key traffic driver as Americans cut back on eating out due to inflation pressure.

“The gas allows you to offset the food cost and balance the pricing. Eating out is a luxury now. We want to make the price affordable for everyone,” he said. “It’s a big deal to be able to offer customers a good value.”

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

Ueberroth with his family.

One of the taco options offered at Yo!Boca!Taco!

Some of the art displayed in Yo!Boca!Taco!

Cold Is Hot

Hot coffee remains a staple, but changing tastes, temperatures and flavors are shaking up the hot dispensed beverage bar.

BY PAT PAPE

4.59%

Hot dispensed beverages gross margin contribution in 2023.

Source: NACS State of the Industry Report® of 2023 Data

On September 29, coffee retailers across the country will celebrate National Coffee Day, honoring the ubiquitous caffeinated beverage that wakes up the world each morning. Tulsa, Oklahoma-based QuikTrip, and likely many other coffee retailers, will offer customers a free cup of java for the occasion.

“National Coffee Day, leading into fall, is a very popular coffee time of the year, with Pumpkin Spice being a popular choice everywhere,” said Aisha Jefferson, corporate communications manager for QuikTrip. “It’s a good time for customers to try out the seasonal LTOs as fall leads into winter.”

A lot of consumers love coffee, but hot dispensed beverage sales are mostly flat, according to the latest NACS State of the Industry Report® of 2023 Data. This is significant since hot dispensed beverages make up the industry’s second largest foodservice category after prepared food and made up 8.9% of foodservice sales in 2023, down from 9.1%.

While the gross margin percentage decreased slightly from 63.59% to 63.22%, “sales increased from $5,973 to $6,286, and gross profits increased from $3,798 to $3,974,” said Emma Tainter, NACS research analyst/writer. “While

this trends in the right direction, it wasn’t enough to beat inflation. NACS determined that only sales growth of over 8.9% was ‘true’ sales growth. Hot dispensed sales increased by only 5.2%.”

There are seven hot dispensed beverage subcategories: coffee, cappuccino and specialty coffee, refills, hot chocolate, other hot dispensed beverages, coffee club mugs and hot tea. Coffee obviously contributes the most to hot dispensed beverage sales (72.4% in 2023), but the cappuccino and specialty coffee subcategory is gaining traction.

“Cappuccino and specialty coffee sales increased from 18.0% to 18.2% of the category year over year,” Tainter said.

CHANGING CONSUMER BEHAVIORS

Although there’s no way to confirm the origin of coffee, it’s believed that a 9th century goat herder in Yemen noticed that his goats were overly energetic after munching beans from a specific bush. He shared the beans with local monks, who then created a hot drink that has remained popular throughout the ages. However, ways to consume that drink have expanded and evolved.

“Today’s trend is cold beverages,” said Tim Cox, marketing manager for Franke Coffee Systems Americas. “Most coffee consumed is still hot, but cold drinks have seen tremendous growth since 2020, largely driven by younger millennial and Gen Z consumers. Cold coffee used to be a spring and summer drink, but now consumers enjoy cold coffee year-round.”

In addition, younger consumers are becoming coffee drinkers at an earlier age.

Industry Sales

2.68% % of In-Store Sales

2.71%

$5,973

$6,286

$3,798

$3,974

Source: NACS State of the Industry Report ® of 2023 Data

CATEGORY CLOSE-UP HOT DISPENSED BEVERAGES

Hot Dispensed Beverages Sales Per Store, Per Month

$5,000

$4,000

$3,000

Source: NACS CSX Convenience Benchmarking Database

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.

“Gen Z customers started drinking coffee at the youngest age of all generations—as young as 14 years old, according to Statista,” said Drew Whitefield, senior category manager of hot and cold coffee for 7-Eleven. “Cold coffee—both cold brew and iced specialty—is the most popular when it comes to young consumers.”

In fact, about 75% of cold coffee buyers are under the age of 35, according to Chairil McClain, vice president for market strategy at BUNN, the beverage equipment manufacturer. “Throughout the foodservice industry, leaders are focusing on the cold coffee segment,” she said. “They see much opportunity for growth in this area.”

Factors other than youthful trendsetting have impacted coffee consumption. Art Lopez, vice president of marketing for Finlays, a global coffee supplier, believes cold coffee’s growing popularity is partly due to the quintessential American time crunch.

“A hot beverage tends to be enjoyed over time, time which Americans don’t have these days,” he said. “Coffee shop culture is to sit down, relax and enjoy your hot drink. But there’s no such thing as a 15-minute coffee break anymore. In the United States, we’ve gotten more go, go, go than ever before. Cold beverages lend themselves to quick consumption and quick energy.”

Plus, long established consumer work schedules and coffee-drinking habits changed during the pandemic, said Jennie Jones, senior vice president of convenience and retail at SEB Professional, a California-based coffee solutions company.

CATEGORY CLOSE-UP HOT DISPENSED BEVERAGES

Subcategory Data

Same-Firm Sample, Per Store, Per Month

Consumers spend an average of $301 million on coffee and related goods every day.”

Source: NACS State of the Industry Report ® of 2023 Data

“The convenience industry’s traditional dayparts have been disrupted,” she said. “For years, the morning daypart was top of mind. Now, dayparts merge together, and that’s impactful. But retailers can gain additional sales if they pay attention to the entire day.”

Research confirms that. The National Coffee Association (NCA) reports that while 81% of U.S. coffee consumers enjoy coffee with breakfast and 38% sip “in the morning,” others drink coffee with lunch (15%), in the afternoon (19%), with dinner (7%) and in the evening (10%). Despite cravings for cold, hot coffee remains vital. “Quality, flavor variety and energizing hot dispensed beverages are always in demand,” said Donna Hood Crecca, a principal at Technomic. “But today’s consumer also wants new, unique options. Hot specialty coffees with unexpected flavors, such as TXB’s Southern Pecan, or higher caffeine levels, like Cliff’s Local Markets’ Wake the Hell Up blend, are very much on trend.”

SPECIALTY COFFEE

PICKS UP STEAM

Specialty coffee starts with premium beans that score 80 or more on a 100-point scale as determined by professional bean raters, known as Q Graders. Coffee drinkers may know zilch about Q Graders, but they recognize quality when they taste it. According to a recent report jointly produced by the NCA and the Specialty Coffee As-

INSPIRED BY SEATTLE COFFEE LOVERS

CATEGORY CLOSE-UP HOT DISPENSED BEVERAGES

sociation, 45% of Americans say they’ve consumed some form of specialty coffee within the past day.

“That’s the highest past-day specialty coffee consumption level since 2011, up by 80% since then,” said Bruce Goldsmith, president of Baronet Coffee of Windsor, Connecticut, and an NCA board member.

The Coffee Lowdown Behind the Grind

In the past week, In the past day,

In addition, “44% of Americans have had an espresso-based beverage in the past week, up by almost 20% since 2020,” he said. “Lattes are the most popular espresso-based beverage, enjoyed by 18% of American adults in the past week and followed by espresso (16%) and cappuccinos (14%).”

“Those drinks are harder to execute at home, so offering them can be a great way for retailers to entice customers away from home for their coffee purchases,” McClain added.

CUSTOMIZATION AND VARIETY

coffee—

Coffee customers crave variety. That’s why 7-Eleven recently introduced its first-ever flavored cold brews, all made from 100% Arabica cold brew extract, real cold brew, whole milk and cane sugar. “It’s all about variety, something new to try as a reward or whenever you’re feeling adventurous,” Whitefield said of the expanded selection, which includes flavors like Mocha and Caramel Cream.

In January, Oregon-based Dutch Bros Coffee rolled out an LTO protein coffee. Customers loved it, and it’s now a permanent offering. Sometimes dubbed “proffee,” protein coffee combines coffee or espresso with protein powder or a pre-made protein shake. It’s served cold since protein products and hot coffee don’t blend well. Advocates claim it suppresses appetite and boosts metabolism.

Anthony Lynch, senior vice president of c-store sales for Westrock, a beverage solutions provider based in Arkansas, said the company’s data points to customers “looking for origin differences, roast profile ranges and different levels of caffeine. With a range of geographical resources, we can offer different blends and different flavored coffee options, and we can create coffee offerings with additional caffeine to capture the energy consumer who is seeking a pick-me-up they can customize themselves via

condiment bar.”

Driving the industry forward, together

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

Revolutionizing age verification at the register and beyond

Optimizing retailers’ digital presence to drive traffic & growth

CATEGORY CLOSE-UP HOT DISPENSED BEVERAGES

There’s no such thing as a 15-minute coffee break anymore.”

And that customization is critical. Many c-store beverage bars feature basic “add-ons,” including sweeteners, syrups, flavors and creamers, but traditional items may not satisfy young shoppers who increasingly want plantbased milks, natural sweeteners like maple syrup or honey, and spices, such as cinnamon and cardamom.

“Natural sweeteners and plant-based creamers are often difficult to get in portion-controlled cups,” noted Lynch. Because variety drives coffee sales, a well-appointed beverage bar can be the deciding factor among the competition.

“Over three-quarters of drinkers prefer their coffee flavored in some way— whether opting for flavored beans or adding flavors via syrups, creamers, sweeteners or toppings,” Cox said. “Providing a variety of additives is a great way to ensure every customer gets their coffee exactly how they like it.”

UPGRADE TO ENTICE SHOPPERS

Hot tea and chocolate sales can’t compete with that of coffee, but both have growth potential.

NIQ reports that functional beverage sales jumped 54% to $9.2 billion between March 2020 and March 2024 as shoppers seek healthier drinks that pro -

vide hydration. “Tea has that halo effect of that functional, healthier beverage,” McClain said. “There are opportunities [in foodservice] for growth with chai latte and matcha, but I haven’t seen c-stores offering those two.”

For a more indulgent hot drink, “Mexican hot chocolate is delicious and has a hint of spiciness,” she said. “Consumers can dress it up with hot foam, whipped cream or cookie crumbles to make a textured drink and enjoy a more elevated experience.”

People will always drink hot coffee, “but when it comes to growth, it’s going to be cold,” said Lopez. “Americans need energy now more than ever, and beverages will always be a place to solve that problem for people. At the end of the day, most people choose coffee, tea or whatever else because they need a pick-me-up.”

Retailers interested in boosting their beverage bar business should work with their roaster partner to set up a plan for growth. “C-store operators may want to experiment with flavors, specialty coffees and even espresso-based beverages, hot and cold,” Goldsmith said.

And as always, quality and value remain beverage bar priorities.

“Retailers that convey quality cues—freshness, roasts, brand and preparation—will ramp up the quality perception,” said Crecca. “That allows them to price hot coffee at a point that is competitive with coffee shops, yet still delivers margin.”

According to NCA’s 2023 economic impact study, coffee accounts for 8% of the total value of the U.S. foodservice sector, said Goldsmith. “Consumers spend an average of $301 million on coffee and related goods every day—that’s $110 billion per year, and $7.4 billion of that is spent in c-stores. Although we can’t predict the future, it’s safe to say that America’s love affair with coffee will continue for generations to come.”

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Technology Tackles Challenges at the Coffee Bar

Innovations and automations in equipment can help improve hot dispensed programs.

BY PAT PAPE

Convenience stores don’t just compete with other c-stores for coffee sales—they’re challenged by QSRs, coffee shops, online platforms and delivery services, plus drive-thru chains like Dutch Bros Coffee and 7 Brew.

But retailers across all channels share challenges resulting from labor shortages, turnover and wage increases. While technology can’t resolve every problem, it can reduce many issues that come with brewing and selling to-go cups.

BEAN-TO-CUP BOOST

Over the last decade, the buzz about bean-to-cup technology has motivated thousands of North American c-stores to install beanto-cup machines.

“Bean-to-cup equipment has a built-in grinder,” said Anthony Lynch, senior vice president of

sales, convenience store, for Westrock Coffee. “All you have to do is add the beans to the machine, and it will grind them, heat the water and dispense the fresh coffee at the touch of a button. The coffee is always fresh.”

Back in 2018, Bruce Goldsmith, president of Baronet Coffee Inc., saw that bean-to-cup machines could alleviate many of the challenges convenience stores face. But promoting them “was a tough decision for a coffee roaster, because the biggest advantage to the machine is that it cuts waste in the store between 30-50%, depending on the store’s brewing procedures,” he said.

“That’s a big reduction in the coffee pounds that we were going to be selling to the stores.”

But the pros outweighed the cons, and Baronet jumped on the

bean-to-cup bandwagon. Despite his early reservations, Goldsmith has since actually seen overall poundage increase in the convenience store category.

“Now, the customer is guaranteed a fresh cup of high-quality coffee no matter what time they come into the store,” he said.

Another advantage is labor reduction, he added. “It shifts brewing the coffee from the employee to the customer in a way that … streamlines cleaning and reduces labor while improving the guest experience.”

AUTOMATIC CUSTOMIZATIONS

Technology that automatically adds desired condiments straight into the coffee, then delivers the finished drink to the customer, can also improve the customer experience and keep the beverage bar cleaner.

Providing pre-programmed flavors helps control the drink by

providing the proper dosage for each drink’s size and meeting customer expectations for quality, flavor and consistency.

“Many customers aren’t educated on how much syrup to add, so self-service bars can negatively affect the coffee experience,” said Tim Cox, marketing manager for Franke Coffee Americas. “We have technologies—like our automated flavor stations—that integrate with the coffee machine to dispense flavors and condiments into the beverage. If you order a vanilla latte, the machine dispenses espresso, milk and syrup as one complete beverage, which provides variety without burdening the staff.”

A few c-stores now offer a barista-style beverage program, but Cox doesn’t see that becoming commonplace. “In light of increasing wages and the complicated labor market, ultimately, automated solutions will be more prevalent than

Our new equipment is designed to give the same kind of beverage you get from your favorite coffee shop at the pull of a lever.”

the clerk-serve format,” he said.

Other available options allow retailers to manage dayparts by pre-scheduling the machine to brew at the appropriate times.

“In a slower daypart, you don’t want to brew so much, and at high demand times, you can have full internal reservoirs within a hot coffee brewer,” said Chairil McLain, vice president for market strategy at BUNN. “You can control how much to brew, as well.”

DIY DRINK PROGRAMS

When QuikTrip wanted to pump up its coffee offering, its leaders gathered with coffee and equipment suppliers and spent hundreds of hours in the corporate test kitchen to identify ways to produce the best cup of coffee. The result was the retailer’s new Coffee Wow program, which includes everything from new counters to coffee machines.

“We set out to create the first ever equipment for customers to dispense a real latte on demand,” said Aisha Jefferson, corporate communications manager for QuikTrip. “Legacy cappuccino equipment that’s prevalent in c-stores doesn’t produce a traditional cappuccino. It blends dry ingredients and hot water. Our new equipment is designed to give the same kind of beverage you get from your favorite coffee shop at the pull of a lever.”

The machine blends milk, coffee and real sugar to produce a hot or cold latte. “The real magic is the nitro technology, which we developed

to create the foamy goodness that a coffee shop gets from using their steam wand,” Jefferson said.

As a bonus, the collaborators also produced a simplified auto-cleaning system that freshens the latte bar at the press of a button. “Both pieces of equipment are a huge lift for the company,” said Jefferson.

COFFEE OF THE FUTURE

Coffee providers will continue to look for ways to improve their services and stay relevant to their customers.

For the past year, 7-Eleven has been assessing its proprietary Coffee of the Future (COFU) machine at an Evolution test store in Dallas. The goal is to provide shoppers with barista-quality coffee and doit-yourself convenience.

Presently, the COFU dispenses four fresh-brewed coffee blends, along with cappuccino, espresso, latte, mocha, chai latte and cold brew nitro options. All coffee condiments are contained inside the machine to help keep the coffee bar area tidy.

“This machine is the first of its kind, so we are routinely gathering learnings and feedback from customers so we can continue to optimize the unit,” said a 7-Eleven spokesperson.

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.

ADVERTISER INDEX

Contact Information

5-hour ENERGY 12-13 www.5hourenergy.com

ADD Systems 18 www.addsys.com

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

AMCON Distributing Company

402-331-3727 www.amcon.com/#/

Big Machine Distillery

www.bigmachinevodka.com

Black Buffalo Inc.

www.Blackbuffalo.com

Buzzballz LLC

(972) 242-3777 www.buzzballz.com

C. Cretors & Company

(847) 616-6900 (800) 228-1885 www.cretors.com

Calico Brands, Inc. 22 www.calicobrands.com

Cash Depot 3,Outsert (800) 776-8834 sales@cdlatm.com www.cdlatm.com

Chester’s International 73 1-800-646-9403 www.chesterschicken.com

Coca-Cola Company 57 1-800-GET-COKE 1-888-348-2404 www.coca-colacompany.com

Cool New Products Guide 136-143 www.convenience.org/Media/NACS-Magazine/Cool-New-Products

Darrell Lea Brands dba DL Distribution LLC

www.darrelllea.com

DEEL Media

www.deelmedia.com (770) 619-1225

DJEEP

www.djeep.com/en-US

DMF Bait Company

www.dmfbait.com

DYMA Brands

1(800) 654-5115 www.dymabrands .com

Federal Industries, a Standex Co.

(800) 356-4206 www.federalind.com

Flash Sales

(800) 468-0956 www.flashsales.com

Franke Coffee Systems

www.franke.com

www.gallo.com

Goya Foods, Inc.

(201) 348-4900 www.goya.com

GS1 US

(937) 435-3870 info@gs1us.org www.gs1us.org

Hunt Brothers Pizza

(800) 453-3675 www.huntbrotherspizza.com

Inline Plastics Corp.

(800) 826-5567 (203) 924-5933 www.inlineplastics.com

ITG Brands

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

NuVue Foods

(800)-498-DELI www.nuvuefoods.com

OptiSigns 7 www.optisigns.com

Pace-O-Matic 23 (770) 441-9500 www.paceomatic.com Placon 127 www.placon.com

(866) 328-2485 Domestic US toll free (336) 335-6669 North Carolina www.itgbrands.com

J&J Snack Foods Corp.

(800) 486-9533 www.jjsnack.com

Johnsonville Sausage Co.

www.johnsonville.com

KeHE Distributors Holdings LLC

www.kehe.com

Krispy Krunchy Foods LLC

www.krispykrunchy.com

Liggett Vector Brands LLC

(919) 990-3500 www.liggettvectorbrands.com

Matrix Capital Markets Group Inc.

(667) 217-3316 NY (410) 752-3833 MD (804) 780-0060 VA www.matrixcmg.com McLane Company Inc.

(254) 771-7500 www.mclaneco.com

Mike’s Hot Honey

info@mikeshothoney.com wholesale@mikeshothoney.com www.mikeshothoney.com

Energy Company

www.monsterenergy.com MOOSOO Corporation

www.moosoo.com

NACS Cool New Products Discovery Center 143 www.convenience.org/Solutions/Cool-New-Products-Discovery-Center

NACS Industry Advancements, THRIVR & TruAge ®

www.mytruage.org  www.convenience.org/THRIVR

NACS Membership

MaxYourNACS@convenience.org www.convenience.org/Membership

NACS Show 2024 Registration

www.nacsshow.com

NACS Show: Mobile App & My Show Planner

www.nacsshow.com/MyShow-Planner

NACS Leadership for Success, Endowed by Hershey 87 Convenience.org/leadershipforsuccess

NACS State of the Industry ® Data Archive 121 www.convenience.org/Solutions/Store/Products/SOI-Data-Archive-Supplier-10-Year

NACS State of the Industry ® Talent Insights Dashboard 55 www.convenience.org/Research

NACS Executive Education 159 www.convenience.org/Education/NACS-Executive-Education

Polar King International Inc. 9 (866) 576-7645 www.polarking.com www.polarleasing.com

Premier Manufacturing

(636) 537-6800 www.gopremier.com

Ready Training Online 35 (800) 247-8514 www.readytrainingonline.com

Senneca Holdings

(513) 603-2999 www.senneca.com

Sharpline Converting, Inc.

www.sharpline.com

Stone Gate Foods Outsert (952) 445-1350 www.stonegate-foods.com

Sunny Sky Products North America, Ltd. 129, 143 (877) 235-6466 ww.sunnyskyproducts.com

Stateside Brands, Surfside 59, 143 (215) 425-4200 www.drinksurfside.com www.statesidevodka.com

Swedish Match North America LLC (Game) 11 (800) 367-3677 www.smna.com

Swedish Match North America LLC (Longhorn) 21 (800) 367-3677 www.smna.com

Swedish Match North America LLC (ZYN) 71 (800) 367-3677 www.smna.com

The Vita Coco Company 125, 136 (212) 206-0763 www.vitacoco.com

TravelCenters of America Bellyband www.ta-petro.com

Trion Industries 24-25, 136, Insert (800) 444-4665 www.triononline.com

TruAge ® 119 www.mytruage.org TY INC. 61 www.ty.com

Vixxo Corporation 19 (844) 468-4996 www.vixxo.com

Xcaliber International 117 (888) 4-XCALIBER www.xcaliberinternational.com

The Wharton School

University of Pennsylvania

Kellogg School of Management

Northwestern University

The Dyson School

Cornell University

MIT

Massachusetts Institute of Technology

The Cost of Swipe Fees

Your customers are likely using either a mobile payment option or a debit or credit card to pay for their purchases. In 2023, 78.3% of convenience store sales dollars were transacted with a card, and cards have been the most popular form of payment option at convenience stores for over a decade.

Cards are convenient for the consumer, but the fees associated with card payments are a strain on convenience retailers.

Credit card fees have been on the rise, and in 2023 fees paid by the industry topped $19.7 billion. While that is only a 1.0% increase from the year prior (likely tempered by a 11.3% decline in fuel prices and 3.0% drop in inside transaction count), this means swipe fees have risen a whopping 84.1% for the industry since 2020.

Credit card swipe fees are a percentage of the total transaction costs, which means when fuel prices rise and the cost of goods increase, these fees increase with them.

Swipe fees are also inflated by Visa and Mastercard’s market dominance, which remains relatively unchecked in the United States.

Without legislative action to reign in Visa and Mastercard, swipe fees will continue to be a growing operating expense. The NACS government relations team is fighting these fees through its advocacy of the Credit Card Competition Act, a bipartisan bill that would require the largest banks who use Visa or Mastercard’s network to put a second network on their cards, giving retailers a competitive routing choice.

CMSPI, a payments consultant, estimates the legislation would save the convenience store industry more than $10,000 per store annually.

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Hours & Location:

Monday, October 7 10:00 am – 5:30 pm

Tuesday, October 8 8:00 am – 5:30 pm

Wednesday, October 9 8:00 am – 5:30 pm

Thursday, October 10 8:00 am – 1:30 pm

Located in the Las Vegas Convention Center, Grand Lobby.

Amenities:

+ Open Bar + Shoe Shine

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+ ATM Machine

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*Access to the NACSPAC Lounge is for current NACSPAC contributors only. If you aren’t a 1 Star contributor ($365/year) or higher, access is a $100 NACSPAC contribution at the door.

Schedule:

Open Bar

Tuesday, October 8 12:00 pm – 5:30 pm Wednesday, October 9 12:00 pm – 5:30 pm

Thursday, October 10 9:00 am – 1:30 pm

Shoe Shine

Tuesday, October 8 8:00 am – 5:30 pm

Wednesday, October 9 8:00 am – 5:30 pm

Thursday, October 10 8:00 am – 1:00 pm

Mobile Spa

Tuesday, October 8 1:00 pm – 5:30 pm

Wednesday, October 9 1:00 pm – 5:30 pm

Thursday, October 10 10:00 am – 1:00 pm

Not yet a NACSPAC member?

Visit nacspac.convenience.org/contribute* to gain access to this year’s lounge. *Must be logged in to view content.

Questions? Contact:

Katie Bohny | Political Engagement Director kbohny@convenience.org | 703-518-4260

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