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Worth the Road Trip
Retailers along key travel routes are building unique experiences to make their stores a memorable piece of customers’ journeys.
41 Leadership Lessons
What’s next for the industry? A renewed focus on food, fuel and experience.
48 Big Ideas From Convenience Summit Asia
Tokyo is the center of the global c-store world—and it’s got the ideas to prove it.
56 Luring Customers to the Forecourt
From firewood and bait to bottled water and windshield wash, smart retailers use the fuel pad to extend merchandising space.
inbox every weekday. Subscribe at www.convenience.org/NACSdaily STAY CONNECTED WITH NACS
MEMBERS: Lisa Blalock BP North America Inc.; Tom Brennan, Casey’s; Andrew Clyde, Murphy USA; Terry Gallagher, Gasamat Oil Corp/ Smoker Friendly; Raymond Huff, HJB Convenience Corp. dba Russell’s
NACS SUPPLIER BOARD
SUPPLIER BOARD CHAIR: Vito Maurici, McLane Co. Inc.
CHAIR-ELECT: Bryan Morrow Chobani & La Colombe
VICE CHAIRS: Kevin LeMoyne, The Coca-Cola Company; Mike Gilroy, Mars Wrigley; Jim Hughes, GALLO
MEMBERS: Tony Battaglia; Jerry Cutler InComm Payments; Jack Dickinson, Dover Corporation; Matt Domingo, Reynolds; Mark Falcone, Greenridge Naturals; Danielle Holloway, Altria Group Distribution Co.; Kevin Kraft, Tropicana Brands; Sarah Vilim, Keurig Dr Pepper; Jay Nelson, Excel Tire Gauge; Nick Paich, TriggerPoint Media; Ramona Giderof,
Convenience; Mark Jordan, Refuel Operating Co.; Brian McCarthy, Blarney Castle Oil Co.; Natalie Morhous, RaceTrac Inc.; JP Patel, FASTIME; Robert Razowsky, Rmarts LLC; Stanley Reynolds, 7-Eleven Inc.; Kristin Seabrook, Pilot Travel Centers LLC; Travis Sheetz, Sheetz Inc.; Babir Sultan, Fav Trip; Doug Yawberry, Weigel’s Stores Inc., Scott Zietlow, Kwik Trip Inc.
PAST CHAIRS: Victor Paterno, president and CEO of Philippine Seven Corp.; Don Rhoads, president and CEO of The Convenience Group LLC.
SUPPLIER BOARD REPRESENTATIVES: Vito Maurici, McLane; Brian Morrow, Chobani & La Colombe
Diageo Beer; Ryan Calong, Pabst; Jordan Nicgorski, JUUL; Derek Zahajko, CAF
GENERAL COUNSEL: Doug Kantor, NACS
STAFF LIAISON: Bob Hughes, NACS
RETAIL BOARD REPRESENTATIVES: Tom Brennan, Casey’s; Scott Hartman, Rutter’s; Kevin Smartt, TXB
PAST CHAIRS: David Charles, Cash Depot; Brent Cotten, The Hershey Company; Kevin Farley,
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.
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Big Little Stores
This is a big industry.
One challenge c-store operators have is helping employees— current and potential—realize that this industry is filled with career paths and fantastic opportunities for growth.
That was one takeaway from last year’s NACS/Coca-Cola Retailing Research Council’s “Convenience Industry Action Plan for Becoming an Employer of Choice,” and it’s one reason we created the Faces of the Industry feature, which you can find on page 8. Faces of the Industry has become one of my favorite elements of our magazine. If your stores have someone you want to feature—the only requirement is that they love their job—let us know at news@convenience.org.
It’s a big industry.
That’s a thread running through this issue. It’s definitely present in Jeff Lenard’s recap of the NACS Convenience Summit Asia. Convenience stores in Tokyo have small footprints and don’t sell fuel, but nevertheless are thoroughly part of daily life in Japan. It’s also present in two articles from Steve
Holtz that show the breadth of the U.S. convenience retailing industry. Selling kayaks on the forecourt? Sure. Offering a gift shop with apparel from a local university? Why not. Steve’s articles are “Luring Customers to the Forecourt” and “Worth the (Road) Trip!”
One last thought: Flip to the back of the magazine and this issue’s Gas Station Gourmet to discover my favorite creative idea in an issue full of them. This particular creative solution may not be a fit for most stores, but it goes to show that across the 152,000+ c-stores in the United States, there is an almost limitless amount of smart people doing cool things. It’s a big industry, after all.
Ben Nussbaum Editor-in-Chief
Will forecourt merchandising trend up in the future? Depending on where your stores are located, items as outof-the-box as kayaks could be an option.
There is an almost limitless amount of smart people doing cool things.
UP FRONT FACES OF THE INDUSTRY
Committed to Customer Service
Amber Turner was a Parker’s Kitchen regular before she started working for the Georgia- and South Carolina-based convenience retailer. She started at Parker’s Kitchen as a kitchen associate in 2016. “Within a month I was promoted to kitchen manager and held that role for six years,” she said.
She’s now a store leader for a Parker’s Kitchen store in Pooler, Georgia, where she’s worked since 2023. Earlier this year, Turner was recognized as
the 2024 Parker’s Kitchen District Store Leader of the Year for District
C. “Receiving this award was my most memorable moment at Parker’s Kitchen. I work very hard and was thrilled to be recognized as a top store leader in the company,” she said.
Turner spoke with NACS about:
WHY SHE LOVES WORKING IN CONVENIENCE
I love working in the convenience industry because I love the fast-paced
Celebrating the people who make our industry great.
Parker’s Kitchen store leader Amber Turner is passionate about giving back, “whether I’m asking customers to round up for charity or volunteering at the local food bank.”
environment, and most of all I love the customers. I consider myself a people person and, in convenience, you come across so many people.
I love creating a great customer experience for my regulars as well as my new customers. I spend much of my day leading, training and developing my team, keeping the Parker’s Kitchen hot bar stocked and making sure we have plenty of hot and cold grab-and-go food selections available for customers. I also make sure the store looks customer-ready by stocking grocery shelves, sweeping the parking lot and stocking coolers. I understand the importance of providing exceptional customer service to every customer and encourage my team to take that commitment to heart every day.
WHAT SHE FINDS MOST FULFILLING ABOUT HER JOB
Being the leader of my team—I love to train and develop my people into future leaders at the company. I feel most fulfilled when I can see potential in someone and help them grow their career.
WHAT SHE WOULD TELL SOMEONE CONSIDERING A JOB IN CONVENIENCE
You will never be bored at work. We always have new challenges, which keeps it exciting. I’m a testament that if you work hard, you can accomplish whatever you set your mind to. I’m proud to go from a kitchen associate to kitchen manager and now a store leader.
Parker’s Kitchen is a great company that truly rewards hard work, and I look forward to continuing to grow for many years to come.
Spotlighting Excellence
At the NACS Convenience Summit Asia in February, NACS honored its Convenience Retail Awards Asia-Pacific winners.
“Industry progress is not only driven by innovative companies, but by the energies, determination and inspiration of the individuals who lead them,” said NACS President and CEO Henry Armour at the NACS Convenience Summit Asia, adding, “These awards recognize and honor the contributions of successful and influential industry leaders who represent excellence, dedication and influence in the convenience retail community.”
NACS CONVENIENCE RETAILER OF THE YEAR ASIA-PACIFIC: TOPS DAILY LAGUNA VILLAGE
Tops Daily Laguna Village is a small-format brand by Central Food Retail Co. Ltd., the leading food retailer in Thailand. The company operates the supermarket brands Tops, Tops Food Hall and Tops Fine Food, as well as the convenience store brand Tops Daily in the highly competitive Thailand retail market.
In 2024, the company launched a new hybrid store concept called Tops Daily X Tops Wine Cellar at its Laguna Village location in Phuket, Thailand. The hybrid model combines a convenience store with a dedicated section for wine and chilled beer and features wines from 13 countries, with on-site chillers to quickly chill room temperature beer and wine for customers.
The concept has changed Tops Daily from a traditional convenience store to a spot to also relax and socialize. In the six months after it launched, sales at the store exceeded projections by 37%.
Tops Daily Laguna Village was recognized as the 2025 NACS Convenience Retailer of the Year Asia-Pacific.
NACS CONVENIENCE RETAIL TECHNOLOGY
AWARD ASIA-PACIFIC: GS25
Operated by parent company GS Retail in South Korea, GS25 is the top convenience store brand in the country. For 16 consecutive years, GS25 has been named “Korea’s Most Respected Company.”
Today, GS25 boasts an independently developed brand and operating system that offers a differentiated online and offline experience. The company’s smart store format, called GS25 DX Lab, is a 190-square-meter space that relies completely on artificial intelligence technology. Customers can purchase products through facial recognition software and receive information on wine with the touch of their palm, as well as view customized advertisements through AI sensors that recognize a person’s gender and age.
2025 NACS CONVENIENCE RETAIL
SUSTAINABILITY AWARD ASIA-PACIFIC: USMILE
Headquartered in Beijing, China, there are nearly 20,000 uSmile convenience stores in provincial capitals, coastal cities and municipalities throughout the country.
PetroChina uSmile’s approach to sustainability is focused on reducing the environmental impact of its service station operations. The company aims to achieve carbon neutrality (net zero emissions) within its business activities under the time frame specified in the Paris Agreement.
In 2024, uSmile treated 200,000 tons of nitrogen oxides and cut CO2 emissions by 100,000 tons. By the end of 2024, uSmile built 2,000 new EV charging stations with 30,000 chargers, bringing its total to 4,000 EV charging stations with 59,000 chargers.
To promote multiple energy supplies, PetroChina introduced and expanded its network of alternative fuels, including LNG, hydrogen, EV charging and battery swap. By 2024, PetroChina had built 1,400 new photovoltaic (PV) stations and now operate 3,000 PV stations in China.
NACS CONVENIENCE INDUSTRY LEADER ASIA-PACIFIC: U-MING TAN
U-Ming Tan is the co-chief executive officer and executive director of 7-Eleven Malaysia Holdings Bhd. With over 2,400 stores, 7-Eleven Malaysia is the largest convenience store operator in Malaysia. In 2021, it debuted its 7Café concept, which combines a convenience store and café in one location, with seating for customers to enjoy ready-to-eat meals, snacks, coffee and desserts. More than 550 stores already have the concept, which features locally sourced, fresh ingredients. Tan was named co-CEO of 7-Eleven Malaysia in 2020. He joined 7-Eleven Malaysia as director in 2008, overseeing the merchandising, procurement and marketing functions. Tan was promoted to executive director in 2011 and appointed to the Board of 7-Eleven Malaysia Holdings in 2013. He is also on the board of eight other companies.
NACS Helps Fight Hunger in Florida
At the NACS Leadership Forum in February, NACS staff and event attendees packed 10,000 meals for local Florida residents through a partnership with US Hunger. The meals provided immediate support to families in need in St. Augustine, Florida, reinforcing the convenience industry’s collective commitment to investing in our communities at a local level.
“The energy in the room was incredible—seeing leaders from across the industry working side by side with a shared purpose was truly inspiring. It’s a testament to the power of collaboration and the difference we can make when we come together,” said Kevin O’Connell, executive director of the NACS Foundation. “Whether you were on-site in Amelia Island or cheering us on from afar, your dedication to our NACS Foundation pillar of Neighborhood Nourish was on full display. I want to give a huge thank you to Jenna Collard, director of education engagement
at NACS, for leading this initiative and to the US Hunger team for being an outstanding partner in the fight against food insecurity. We’re proud to support their mission through Neighborhood Nourish.”
The NACS Foundation’s Neighborhood Nourish programs helps fight hunger by collecting donations for
local food banks and participating in volunteer activities to help people experiencing homelessness or food insecurity. For more information about the NACS Foundation and ways to partner with the Neighborhood Nourish program, visit conveniencecares.org or email Kevin O’Connell at koconnell@convenience.org
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UP FRONT NACS NEWS
Build Your Knowledge With NACS Webinars
One of NACS’ core objectives is enhancing convenience retailers’ knowledge, bringing them the information, best practices and strategies they need to better run their businesses and enhance their stores for both employees and customers.
NACS webinars offer complimentary, online education and trainings hosted by industry experts to keep you up-to-date on legislative issues, category management, human resources, technology and other pivotal convenience industry topics.
Recent webinars have covered topics on food safety, creating a culture of safety in stores and preparing employees for potential safety situations that might arise while working, among others. Upcoming webinars include:
PREPARING & ACTING WHEN DISASTER STRIKES
May 20, 2025, 2:00 PM-3:00 PM ET
Join us for a conversation specifically designed for convenience store owners and operators to prepare for, respond to and recover from natural disasters and emergencies. As critical community resources during crisis situations, your store’s ability to operate safely and effectively during emergencies is vital. Learn how to protect your business, serve your community and recover quickly when disaster strikes.
PREVENTING & RECOGNIZING HUMAN TRAFFICKING IN YOUR STORES
September 17, 2025, 2:00 PM-3:00 PM ET
This essential webinar will equip retail managers and staff with the knowledge and tools to identify potential human trafficking situations and take appropriate action. Human trafficking can occur anywhere, and store employees are uniquely positioned to serve as front-line responders in recognizing and safely responding to these situations.
WHAT IS “TOTAL LOSS” AND HOW DOES IT HELP PERFORMANCE WITHIN LOSS PREVENTION?
November 19, 2025, 2:00 PM-3:00 PM ET
Retail loss today extends far beyond the visible issues of drive-offs, theft and physical damage. A Total Loss framework looks at the impact that food waste, administrative errors, supplier fraud and markdowns all collectively contribute to your bottom line, in addition to loss through shrink. In this webinar, retailers will unpack the details behind the Total Retail Loss (TRL) approach and highlight how to embrace this comprehensive solution to prevent loss, protect your profits and unlock organizational efficiency.
For more information about NACS webinars, visit convenience.org/Education/ Webinars or email Jenna Collard, NACS director of education engagement at jcollard@convenience.org .
Calendar of Events
JULY
NACS Financial Leadership Program at Wharton
July 13-18 | The Wharton School, University of Pennsylvania Philadelphia, Pennsylvania
NACS Marketing Leadership Program at Kellogg
July 20-25 | Kellogg School of Management, Northwestern University Evanston, Illinois
AUGUST
NACS Executive Leadership Program at Cornell August 03-07 | Dyson School, Cornell University Ithaca, New York
OCTOBER
NACS Show October 14-17 | McCormick Place Convention Center Chicago, Illinois
NOVEMBER
NACS Innovation Leadership Program at MIT November 02-07 | MIT Sloan School of Management Cambridge, Massachusetts
NACS Women’s Leadership Program at Yale November 09-14 | Yale School of Management, Yale University New Haven, Connecticut
2026
JANUARY Conexxus Annual Conference
January 25-29 | Live! By Loews Arlington Texas Arlington, Texas
FEBRUARY
NACS Leadership Forum February 10-12 | Fontainebleau, Miami Miami, Florida
For a full listing of events and information, visit www.convenience.org/ events.
UP FRONT NACS NEWS
Member News
RETAILERS
Parker’s Kitchen company founder, Greg Parker, transitioned to executive chairman after serving as CEO for the past 50 years. He will continue to oversee the company’s growth, strategy and philanthropy.
Parker’s Kitchen named Brandon Hofmann as CEO. Hofmann previously served as the president of Parker’s Kitchen and is the architect behind the company’s expansion plans and strategic marketing campaigns. He oversees operations at nearly 100 Parker’s Kitchen stores across Georgia and South Carolina and is currently spearheading the company’s ambitious expansion into new markets.
John Rudolfs was promoted to president and CFO of Parker’s Kitchen. Rudolfs previously served as the chief development officer at Parker’s Kitchen and originally joined the company in 2021.
Parker’s Kitchen hired Renzo Bassanini as senior vice president of human resources. In his new role, Bassanini leads recruitment, employee relations, training and compensation and benefits at Parker’s Kitchen while shaping the company culture, enhancing employee engagement
and ensuring the alignment of HR strategies with overall business objectives.
EG America promoted Whitney Johnson to senior vice president of marketing. In her new role, she will continue to lead loyalty, digital commerce, advertising and social media for the company, as well as its tobacco business, guest services and other support functions.
Stephen Hayes Dacus will succeed Ryuichi Isaka as president and representative director and CEO of Seven & i Holdings Co. Ltd. Dacus has been a member of the company’s board since May 2022 and was appointed chairman and lead independent outside director in April 2024.
SUPPLIERS
Celsius Holdings Inc. appointed Eric Hanson as president and chief operating officer. Hanson will lead key growth-driving functions at Celsius and will apply his nearly three decades of experience in the food and beverage industry to unlock additional synergies with the company’s strategic partners.
Celsius Holdings Inc. promoted Tyler Bohannon to executive vice president of North American sales and will lead the company’s direct store delivery (DSD) network, field sales and U.S. regional key accounts. Bohannon
has more than 20 years of experience in the beverage industry and was previously Celsius executive vice president of field sales.
Lex Shankle was promoted to executive vice president of global sales at Celsius Holdings Inc. Shankle will lead the company’s global sales team across EMEA and APAC. He previously was Celsius executive vice president of North American sales.
Mars Inc. appointed David Jacobs as vice president of marketing for Mars food and nutrition North America. Jacob will lead strategies to drive penetration and accelerate growth across the rice and ready meal categories in the United States and Canada. He will oversee growth plans for Ben’s Original and Seeds of Change, as well as other strategic initiatives to drive value creation across the business.
KUDOS
Joe DePinto, CEO of 7-Eleven, received the Sam Johnson Defender of Freedom Award.
The award, presented by the National Defense Briefing Series (NDBS), recognizes Dallas-Fort Worth area leaders who have demonstrated continuing and unwavering support for veterans and their families.
“I am deeply honored to receive the 2025 Congressman Sam Johnson Defender of Freedom Award,” said DePinto. “It was incredibly moving to be surrounded by family, friends and colleagues at this special event.”
Greg Parker
Brandon Hofmann
John Rudolfs
Renzo Bassanini
Whitney Johnson
Eric Hanson
Lex Shankle
David Jacobs
Tyler Bohannon
UP FRONT NACS NEWS
New Members
NACS welcomes the following companies that joined the Association in February 2025. 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
HUNTER CLUB
SILVER Eternal Beverage LLC Redding, CA www.eternalwater.com
Grabba Leaf LLC Pompano Beach, FL www.grabbaleaf.cmo
BRONZE Cimbali USA Renton, WA www.cimbaligroup.com
Guayaki Yerba Mate Sebastopol, CA www.guayaki.com
LF*GO Inc.
Toronto, Ontario, Canada lfgoenergy.com
The Schwan Food Company dba Schwan’s Food Service Bloomington, MN www.schwansfoodservice.com
RETAILERS Bonanza Express Nome, AK
Calhoun Oil Co. Inc. St Matthews, SC
New Holland Exxon New Holland, PA
SUPPLIERS
Age Retail Partners Lancaster, PA
Alamance Foods Burlington, NC alamancefoods.com
Bag N Dash Raytown, MO www.bagndash.com
BJ’s Wholesale Club Inc. Westborough, MA
Brez West Palm Beach, FL www.drinkbrez.com
Cofresco Foodservice Clearwater, FL
Delta Munchies deltamunchies.com
EDT USA Corporation Coral Gables, FL
Fentimans Craft Sodas & Mixers Pittsburgh, PA www.fentimansusa.com
Gravitate Fayetteville, AR gravitate.energy.com
Icon Meats Cadott, WI www.iconmeats.com
ID Tech Products Cypress, CA www.idtechproducts.com
Janey Lou’s Inc. Salt Lake City, UT www.janeylous.com
LeVecke Corporation Jurupa Valley, CA www.levecke.com
Loyalty Methods Irving, TX www.loyaltymethods.com
Melting Forest Corona, CA meltingforest.com
Mies Products Inc. West Bend, WI www.miesproducts.com
Nestlé Professional Solutions Solon, OH www.nestleprofessional.us
NewTide Development Charleston, SC www.newtide.ai
Omaha Protein Popcorn Omaha, NE www.omahaproteinpopcorn.com
Pinnacle Financial Partners McLean, VA www.pnfp.com
Shenzhen HB Electronic Co. Ltd Shenzhen, Guangdong, China www.hbe-tech.com
Soxygen Inc. Los Angeles, CA
Sunsof Inc. Hialeah, FL www.sunsof.com
UNDO Gummies Long Beach, CA
VAE Labs Inc. Wilmington, DE
VALR Energy Coral Springs, FL valrbrand.com
Yoobic Miami Beach, FL
Pilot Honors Heart Health Month
The retailer supported lifesaving research and heart health education in February.
In honor of American Heart Month in February, Pilot called on its guests to join the fight against heart disease and stroke. Marking its eighth year of supporting lifesaving research and heart health education, Pilot invited its guests to donate in-store and, as a thank you, “fueled their day with a free cup of coffee.”
“At Pilot, safety goes beyond being road-ready—it’s about protecting what matters most: our team members, guests and communities,” said Adrienne Ingoldt, Pilot’s chief marketing officer. “Standing together in the fight against heart disease and stroke—the leading and fifth-leading causes of death in our country—is a
meaningful way to bring our purpose to life and show people they matter at every turn.”
Ways for guests to contribute included purchasing $1, $3 and $5 paper hearts, with 100% of the proceeds supporting the American Heart Association’s Life is Why campaign in the United States and the Heart and Stroke Foundation in Canada. Additionally, guests who purchased a paper heart at U.S. locations received a free any-size hot coffee through Pilot’s myRewards Plus app. Guests were also invited to contribute by rounding up their instore purchases to the nearest dollar or donating an amount of their choice during checkout.
In The Community
1 NACS MEMBERS SUPPORT ANTI-TRAFFICKING CAMPAIGN
NACS and convenience retail companies Clipper Petroleum, Jet Food Stores, BP and TravelCenters of America came together to raise awareness about human trafficking during an event held on February 1 in New Orleans. The 16th annual Linking Freedom event was led by In Our Backyard (IOB), a national nonprofit dedicated to the fight against sex and labor trafficking.
In support of the program, Clipper Petroleum (Flowery Branch, Georgia) and Jet Food Stores (Sandersville, Georgia) donated thousands of dollars raised through fundraising events. TravelCenters of America provided funding for the development and distribution of community outreach material, and BP raised $75,000 and awareness through its “Community Pump” program.
2 TWICE DAILY CELEBRATES PARTNERSHIP WITH FOOD BANK
Tri Star Energy, the Nashvillebased parent company of Twice Daily convenience stores, recently reached a five-year
partnership milestone with Second Harvest Food Bank of Middle Tennessee. The company announced that the funds raised for the organization over the last five years “have resulted in 314,800 meals for food-insecure Middle and West Tennessee residents.”
The Twice Daily team joined Second Harvest’s Power of One campaign by selling Power of One icons in-store. Each icon purchased provided four meals for those in need. To celebrate the funds raised during this campaign, Twice Daily presented Second Harvest Food Bank of Middle Tennessee with a check for over $14,000.
3 CASEY’S AND U.S. SMOKELESS TOBACCO COMPANY SUPPORT VETERANS
Each year, Casey’s asks its guests to round up in-store purchases, with the funds raised donated to Hope For The Warriors. “This national nonprofit dedicates its work to restoring stability, strength and community for veterans, service members and their families,” Casey’s said.
This year, U.S. Smokeless Tobacco Company (USSTC) partnered with the retailer for a donation of $25,000 to benefit
Hope For The Warriors and further Casey’s ongoing support for veterans, active service members and military families. Casey’s said the USSTC’s gift of $25,000 adds to the more than $610,000 donated from the Casey’s round-up campaign.
4 7-ELEVEN HAWAI‘I DONATES TO COMMUNITY
7-Eleven Hawai‘i recently gave back to local families. “For several years, 7-Eleven Hawai‘i has been a proud sponsor of the Laulima Giving Program by Keiki O Ka ‘Aina. This year, we are honored to have donated $30,000 to support their efforts in helping keiki, kupuna and ʻohana in need through community generosity.”
5 MIRABITO CELEBRATES SUCCESSFUL GOLF TOURNAMENT
Mirabito Philanthropy announced that its 33rd Annual Mirabito Golf Classic, held in the summer of 2024, raised $150,000 to support charities aligned with the mission of Mirabito Philanthropy: advancing medical research and supporting families in our communities.”
Convenience Industry Advocates Go to Capitol Hill
Retailers representing 37 states met with lawmakers to share the industry’s story at NACS’ annual Day on the Hill.
BY KATIE BOHNY
As Washington, D.C. enjoyed the first beautiful spring weather of the year, convenience industry advocates arrived on Capitol Hill with a mission: To urge Congress to support Main Street businesses and the communities they serve.
NACS Day on the Hill is the convenience and fuel retailing industry’s premier advocacy event, providing retailers, state association executives and suppliers the opportunity to engage directly with lawmakers. From March 11-12, over 160 attendees representing approximately 12,000 locations nationwide met with legislators and their staff to discuss critical issues impacting the industry, participating in nearly 200 meetings and representing 37 states.
This year’s meetings focused on four key policy areas: reducing excessive credit card swipe fees, protecting critical tax provisions, expanding access to E15 and modernizing the Supplemental Nutrition Assistance Program (SNAP).
Before heading to the Capitol on Wednesday, attendees were welcomed to the event’s general session on Tuesday by Lonnie McQuirter, who serves as NACS Legislative Chairman and is the director of operations of 36 Lyn Refuel Station in Minneapolis, Minnesota. McQuirter stressed that political engagement is about building long-term, meaningful relationships with lawmakers, and that every member of Congress needs to hear
our industry’s stories—whether they are a freshman representative or a Senator entering their eighth term.
The general session also included remarks from Sen. Peter Welch (D-VT), who stressed the importance of reining in excessive swipe fees that burden Main Street businesses and customers alike: “We need real competition in the credit card market, and that’s exactly what the Credit Card Competition Act will deliver. I’ve been working alongside my colleagues to move this forward because it’s time to stop these unfair practices.”
Welch has been a consistent advocate for reforming the credit card fee system and stands with retailers in their fight against excessive costs. “This is about fairness and competition,” Welch added. “We need to ensure Main Street businesses have a fighting chance against these financial giants.”
Credit card swipe fees remain one of the most significant financial burdens on convenience retailers, ranking as their second-highest operating cost. The Credit Card Competition Act (CCCA) aims to inject more competition into the payments market by preventing Visa and Mastercard from unfairly setting the bank’s prices and dictating fees. The legislation would require at least two networking routing options on credit cards, fostering a more competitive environment that would drive down credit card swipe fees.
Ella Marino with Senate Majority Leader John Thune (R-SD)
Day on the Hill attendees made it clear to lawmakers that Congress needs to level the playing field and pass the CCCA to provide relief for both businesses and consumers who ultimately bear the burden of these excessive fees.
Tax reform was another top issue discussed in meetings, as many provisions of the Tax Cuts & Jobs Act are set to expire at the end of 2025 unless Congress acts. Advocates emphasized the importance of preserving or extending provisions such as the 199A deduction and returning bonus depreciation to 100%. Both would provide crucial tax relief for small businesses and would allow convenience store operators to reinvest in their businesses, upgrade facilities and support job growth. Attendees urged Congress
Kjell Alsaker (Alsaker Corp), Don Rhoads (The Convenience Group), Jennifer Rhoads (The Firstenburg Foundation), Representative Michael Baumgartner (R-WA), Tammie Hetrick (Washington Food Industry Association), Carly Furman (Nayax), Damon Borden (Alsaker Corp.), Dan Alsaker (Alsaker Corp.)
to extend and make these tax provisions permanent to ensure continued economic stability and growth in their communities.
Expanding access to E15 was also a key issue, with attendees advocating for year-round sales of the fuel blend. Eighty percent of the motor fuels in the United States are sold by the convenience industry—including E15 and other biofuels that customers want. E15 provides consumers with more affordable and environmentally friendly fuel options, but outdated regulations currently limit its availability during summer months. Industry leaders stressed the need for legislative or regulatory action to permanently allow year-round sales, promoting energy independence and consumer choice.
This is about fairness and competition.”
Charlie McIlvaine (Coen Markets), Chris Hartman (Rutter’s), Rep. John Joyce (R-PA), Nick Ruffner (Sheetz)
Peter Brennan (New England Convenience Store & Energy Marketers Association), Rep. Jim McGovern (D-MA), Tom Healey (Nouria) and Jay Nelson (Excel Tire Gauge)
INSIDE WASHINGTON
Finally, advocates pressed Congress to modernize the SNAP program by permanently allowing the purchase of hot foods, an option currently restricted under federal law. Many families rely on SNAP benefits for their food purchases, and allowing hot food options would provide greater flexibility. Expanding food choice within the program ensures that SNAP recipients can purchase the same foods available to other consumers.
The impact of NACS Day on the Hill is clear: Lawmakers hear directly from those on the front lines of the industry, gaining firsthand insight into the challenges and opportunities that convenience retailers face. The indus-
try’s presence in Washington sends a powerful message about the importance of these issues—not just for businesses, but for the millions of customers they serve daily.
Momentum is building for continued advocacy efforts. Your engagement makes a difference in shaping policies that support Main Street businesses and their communities. Interested in making your voice heard? Mark your calendar for NACS Day on the Hill 2026: Tuesday, March 17–Wednesday, March 18. If you’re looking for other ways to get involved, reach out to NACS Grassroots Manager Esmeralda Orozco at eorozco@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 March 2025 are:
Justin Baxley PDI Technologies
Matt Domingo Reynolds Marketing Services Company
Jessica Hendrickson Altria Group Distribution Company
James Hervey Verifone Inc.
Peter Krueger Energy & Convenience Association of Nevada
James McNutt Midwest Petroleum Company
Paul Neuhoff GSP Marketing Technologies
Jerry Niblett Perfetti Van Melle USA Inc.
Stanton Sheetz Sheetz Inc.
Steve Sheetz Sheetz Inc.
Linda Toth Conexxus
Melissa Vonder Haar iSee Store Innovations
Mike Wilson Cubby’s Inc.
Jordan Nicgorski (Juul), Anna Blom (NACS), Steven Berk (GetGo Cafe + Market), Sen. Jon Husted (R-OH), Travis Sheetz (Sheetz), Jason Bassett (Sheetz)
Eva Rigamonti (Pilot Travel Centers), Ieva Grimm (J.M. Davis Industries), Jason Bassett (Sheetz), Jeff Mercer (Family Fare), Rep. David Rouzer (R-NC), Jessica Battaglia, Tony Battaglia (Tropicana Brands Group), Preston Hawkins (Wawa)
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IDEAS 2 GO
A One-of-a-Kind Local Market
Greg Cassis used his extensive supermarket background to open his own Greg’s Market stores.
BY SARAH HAMAKER
Greg Cassis has been in the grocery store business since he was 14 and started as a bagger. “I worked my way up to temporary manager through college,” he said. After graduation, he decided to put his grocery experience to use. He bought a 2,100-square-foot corner store and turned the existing business into his own Greg’s Market located in Moundsville, West Virginia.
“Luckily, my father owned that building, so he was able to work with me to get the store [up and running]. During my time working for other grocers, I honed my instincts about what people wanted and how to serve them,” Cassis said.
EXPANSION EVOLUTION
Cassis said that in the early years of running the store, “We tried everything we could to evolve and be what the community needed us to be.” For example, when he had to raise prices because of the increasing costs of goods, he would up the cost of cigarettes rather than candy.
When he replaced his original store with a new 8,000-square-foot building (four times the size of his first store) in 2004, he segmented the store into a 2,000-square-foot convenience store to the left of the entrance and a full grocery store with a meat deli to the right. He added a second location in 1989—a 7,500-square-foot store in
company:
Date founded: November 1983
Cameron, West Virgina, which he has since rented to Dollar General—and opened another Greg’s Market location, also in Moundsville, in April 1998. “The two [current Greg’s Market] stores are basically identical in terms of products and services,” he said.
One of the big draws of Greg’s Market is its fresh deli and foodservice offerings. “When I originally opened the first store, I used my second cousin Marlene’s recipes for ham salad, cucumber salad, etc., as well as developed our own pizza program where we sell hot and take-home pies,” he said, noting that he still uses Marlene’s recipes today. “We focused on making things in house that our customers couldn’t get anywhere else.”
His biggest seller is chicken wings, which customers can take home to
Name of
Greg’s Markets
The first Greg’s Market opened in 1983.
bake fresh in their own ovens. “The secret is in the seasoning, which is a handmade recipe that I created. We sell around 800 pounds of wings per week, and 2,000 pounds of wings (more than 14,000 individual wings) the week of the Super Bowl,” Cassis said.
He also emphasized that details and “the little things” matter to customers, such as putting paper between slices of cheese when slicing to order. “We do a huge deli business because we pay attention to the things that customers want,” Cassis said.
Another popular destination in the store is the beer cave, which Cassis designed himself as a walk-in, rearfilled cooler. “I ended up expanding it to include another six doors and we keep them as cold as possible—I want to sell the coldest beer anywhere,” he said. He stocks national brands and some local brews, and carries the widest selection
Chicken wings are one of the store’s top-selling menu items, selling 800 pounds per week. Customers can also purchase a take-home kit and make the wings fresh at home.
possible, including one door dedicated to Mexican beer. One of his most popular alcoholic drinks isn’t beer, it’s the non-carbonated alcoholic Twisted Tea. “I sell five cases of the 25-ounce cans each day out of two cooler doors,” Cassis said.
SERVICE WITH A SMILE
The most important thing in running his business is ensuring his staff treats customers well, Cassis said. “We have a banner from the store’s 30th anniversary that says, ‘Service with a smile never goes out of style.’ And it’s true, because our customers are comfortable shopping with us because we try to keep a good, happy attitude,” he said. While he doesn’t run the big customer appreciation events today that he held back when vendors helped to defray the costs, he does try to stay connected to the community through youth sports team sponsorships.
Cassis works hard to make his employees happy and keep them satisfied in their jobs. He cooks lunch for them most days to eat as a group and strives to create a family atmosphere among the employees, which he hopes makes working at Greg’s seem less like a job and more like being part of a family, especially for the younger generation
BRIGHT IDEAS
Greg Cassis, owner of two Greg’s Markets in Moundsville, West Virginia, said he’s not only survived, but thrived, in a tough retail environment by being strategic with his branding. “Everything is branded under our name, including our deli recipes,” he said.
Cassis said that branding has enabled his stores to stay in business despite stiff competition from a nearby Walmart and other national retail stores. “A Giant Eagle location closed when Walmart came to our area, but our sales rose 35% because we focus on giving customers quality goods and services under our own brand that they can’t get anywhere else,” he said.
of workers. “I’m very casual and try to make everyone’s life a little bit more pleasant,” he said.
For Cassis, the sign he’s succeeded in making Greg’s Market a welcoming place to shop is when a customer returns. “You know we did it right when they come back, and when you see them coming back for generations, that’s when you know you’ve created something special,” he 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 2024 and earlier, go to www.convenience.org/Ideas2Go
Owner Greg Cassis, his wife Lynnette and their granddaughters.
Worth the Road AND MORE! FUEL
Retailers along key travel routes are building unique experiences to make their stores a memorable piece of customers’ journeys.
BY STEVE HOLTZ
It started in 1936 with a hand-painted billboard.
Local foot traffic was minimal and stagnant. Sales weren’t growing. And with the recent birth of their second child, store owners Ted and Dorothy Hustead were worried about going broke. They needed to draw more attention to their five-year-old retail site on Main Street in Wall, South Dakota, about a half a mile from the highway.
“There was a constant drone of tourist cars coming out of the Badlands on U.S. 16 and 14. [Dorothy] had an idea,” said current store owner Rick Hustead. “She told Ted, I think we should let people know we’re here. We should put a sign up that says, ‘Get a soda. Get a beer. Turn next corner. Just as near to highway 16 and 14.’”
And the real kicker: “Free ice water. Wall Drug.”
They made the sign, put it up and before Ted got back to the store, the first customers had already stopped, said Rick Hustead, Wall Drug’s current owner and Ted and Dorothy’s grandson. “They were giving out glasses of free ice water, which on a hot day in cars with no air conditioner sounded really good. They were selling ice cream cones, Coca-Cola,
knickknacks and snacks. And instantly, they [turned their slow sales around].”
Today, Hustead runs Wall Drug Store with his daughter Sarah, vice president and the fourth generation Hustead in the family business.
“Road-trip season is huge,” he said. “In six months we do 70% of our business for the year.”
A MEMORABLE DESTINATION
Retailers who recognize their place along well-traveled routes can cash in with signage, unique design, local products, souvenirs and nostalgia.
That was the whole strategy behind the creation of the Wally’s retail brand. Currently building its third site near Indianapolis, founders and cousins Michael Rubenstein and Chad Wallis brainstormed a must-stop retail concept that they hoped could become a remarkable and unexpected resting point.
The result: a 30,000-square-foot travel stop with 76 fuel pumps that’s half convenience store/restaurant and half souvenir/ collectibles shop. The first store sits on 20 acres in Pontiac, Illinois, along Interstate 55, previously part of Route 66, the legendary
highway that opened the West to travelers from points east back in the 1930s. The brand has dubbed itself “Home of the Great American Road Trip.”
“The entire [Wally’s] concept is loosely based on a 1970s or ’80s road trip. [The name] was a slight nod to Wally World [from National Lampoon’s Vacation]. ... That really was the inspiration the entire time—unexpected delight—and we’ve stayed true to that,” said Andy Strom, chief experience officer for the retailer based in St. Louis. “Little elements stand out. Our soda labels on the soda fountain are retro from the ’70s and ’80s. That’s a little touch that people pick up on along the way. Small touches that bring our guests back and put smiles on faces.”
Other unique touches include a full-size Winnebago Brave recreational vehicle—an iconic road warrior of the 1970s and ’80s— that’s been converted into a retail display; a taxidermy diorama of common Midwestern animals having a party and wearing Wally’s gear; and a vintage Jeep Wagoneer in front of
Proudly dubbing itself “Home of the Great American Road Trip,” Wally’s has built several nostalgic design elements into its 30,000-square foot stores, including a full-sized recreational vehicle converted for branded merchandise display.
Building a Billboard Strategy
Wall Drug Store’s first sign was such a success that it didn’t stop there.
“Ted thought, if one sign had such a dramatic impact, what would 30 or 40 Wall Drug signs do?” current store owner and grandson of original owner Ted Hustead, Rick Hustead said. “He started putting up Wall Drug signs east and west of Wall, South Dakota, leading [motorists] to Wall Drug. It was then that Wall Drug was really on its way.”
Now a kitschy but welcome sight to travelers nearly 90 years later, there are still about 300 Wall Drug billboards across the north-central United States, some
of them up to 300 miles from the single store location, according to Hustead. Some line up over a stretch of road, counting down the distance to the store.
“We covered South Dakota. We expanded into Wyoming and Minnesota,” he said. “It’s really how we stayed in business and how we stay in business today.”
Since opening its JP Travel Center in Jackson, Georgia, Jones Petroleum has leaned on billboards to attract travelers to the store about 45 miles south of Atlanta with a cheeky message about its “golden toilet” to drive home a message of clean restrooms.
“One of our owners worked with
Photographs courtesy of Wally’s
Ted Hustead painted an abandoned billboard in South Dakota in the 1930s. His family’s Wall Drug Store would become a legendary stop for travelers across the Great Plains states.
the store that’s “converted to be an iconic part of what happens outside of the store. ... It’s elements like that in the store that stand out.”
BUILDING A BRAND
For Denise Molnar, co-owner of Tioga Gas Mart and Whoa Nellie Deli 20 minutes from the east entrance to Yosemite National Park in California, collectibles—such as branded water bottles, mugs, stickers, etc.—are a source of pride.
“The gift store provides all ranges of souvenirs, from postcards to T-shirts and locally crafted art,” she said. “We have to think ahead since they are mostly custom-made and often take weeks to get through production.”
Tourist season is immensely important to Tioga Gas Mart/Whoa Nellie Deli as winter weather forces the shop, and the main road, to close for up to six months of the year.
“We are a seasonal business, so we stay open from the end of April to early November,” Molnar said. “Business really ramps up when Tioga Pass opens, which depends on the amount of snow received during the winter.
Once schools get out, we go into full summer mode with huge summer crowds.”
Having the collectibles available and fully stocked in time for that seasonal opening is of utmost importance.
“We try to stock up on as many items as we can before [opening] so we don’t run out of stock. Always being flexible when certain brands are unavailable is key,” she said. “Keeping track of high-selling items is important. If possible, we can order pallets and large quantities of items that we know sell fast.”
When convenience retailer Jones Petroleum opened its first JP Travel Center in Jackson, Georgia, in 2019, it purposely made itself the first site for drivers coming in or out of Atlanta on Interstate 75.
Working with designers Paragon Solutions, Jones included a 2,500-square-foot gift section right up front, displaying home decor and University of Georgia collectables. Other amenities of the site geared to motorists include spacious restrooms, a dog park and a well-stocked section of unique local products.
our billboard broker to come up with the golden toilet campaign,” said Ken Johnson, director of marketing operations. “We have been running it for about four years on about 15 boards, and we change up the slogan yearly.”
The company, which operates about 50 convenience stores, reserves the golden toilet campaign for the travel center.
“This was our first travel center, and the only time we have used this type of billboard design,” Johnson said. Jones Petroleum will open two more travel centers this year and next.
A billboard calls out an early foodservice offer at Wall Drug.
“Once people visit a Wally’s, they typically revisit Wally’s. It’s such a different experience that our guests not only like to visit themselves, they like to tell their friends about it, which is most important to us.”
“Our travel is seasonal for this location, [but] we do not do a lot of additional marketing since it’s only one unit and costs are prohibitive,” said Ken Johnson, director of marketing operations at Jones Petroleum. “Our product mix changes based on seasonality inside the location.” The retailer will open its second travel center in LaGrange, Georgia, in mid-2025 and a third in Midway, Georgia, about a year later.
At Wally’s, the souvenirs and collectibles are all about branding and fun.
“We love to create memorable items that folks like to purchase when they have the opportunity to visit one of our stores, whether it’s hats or T-shirts or drinkware,” Strom said. “We just did a collaboration with a lifestyle brand called Camp Wandawega. That’s really fun. [The products are] displayed on our Winnebegos.”
Camp Wandawega is an Elkhorn, Wisconsin-based manufacturer “of goods that help us explore the great outdoors.” The Wally’s-branded products include items for camping and summertime activities, ranging from frisbees and paddle games to flasks, koozies and hats. “We’re looking to do more brand collaborations in the future,” Strom said. “We’re always creating new retail items to keep things fresh and push the envelope.”
With a 76,000-square-foot store, Wall Drug has a lot of retail space to fill, and customers can walk out with everything from coffee mugs, potholders and magnets to entire Western outfits. There are also exhibits: a sculpture garden, apothecary museum, game room and more.
“We have a lot of souvenirs; that’s a big section for us,” Hustead said. “We have Black Hills Gold jewelry, which is really popular, in two different jewelry departments.” His daughter Sarah sourced all of the handmade native American turquoise and silver jewelry.
“We also have 6,000 pairs of cowboy boots on display and for sale. We have Western clothing. We have a poster-printing shop. We sell original art, pottery ... all kinds of things,” said Hustead.
The retailer aims to have 90% of the merchandise it’s going to sell during the travel season on hand by May. “There’s a huge push getting the merchandise in. My wife, Patt, runs our camping department, and she’s getting in merchandise every day and marking it for the coming season,” Hustead said in January.
The branded items serve their purpose as keepsakes and marketing tools, but the true goal is crafting a unique experience and creating word-of-mouth recommendations.
“Once people visit a Wally’s, they typically revisit Wally’s,” said Strom. “It’s such a different experience that our guests not only like to visit themselves, but like to tell their friends and families, which is most important to us.”
PLEASING THE CUSTOMER
The keys to a good road-trip store are firstrate facilities and customer service.
“It starts with the restrooms. Those have to be meticulously clean,” Strom said. Wally’s
Photograph courtesy of Jones Petroleum
Jones Petroleum aims to create a reputation for sparkling clean restrooms with its “golden toilet” billboard campaign, now in its third year, to promote its JP Travel Center.
bathrooms have touchless fixtures and are cleaned every hour.
Jones Petroleum committed extra space to the restrooms for privacy. Owner Bill Jones said the upscale restrooms were the “real home run” of the company’s first travel center at the time of opening. “It’s the moms out there who are going to pick where to stop for coffee or a bite to eat,” Jones said, “and she’s going to settle on restrooms that she knows are clean.”
At Wall Drug Store, “We have a special crew that cleans our bathrooms because in our industry—roadside attractions—people judge us based on how clean the bathrooms are,” Hustead said. “It’s a big deal.”
Synergy Co-op, which has 17 Cenex-branded convenience stores in northwest Wisconsin, sees travelers heading north to fish, camp and attend any number of local summer festivals.
Preparation for the season includes a spring cleanup of each store, inside and out, and making sure equipment—from plumbing and the POS system to light bulbs and shelving—is in good and clean shape.
From there, the Ridgeland, Wisconsin-based chain calls attention to the sites with timely promotions through radio ads and electronic sign boards outside the stores.
“That’s one of the things I would hit up on my radio ads,” said Category Manager Sean Rooney, “talking about road-trip season. Here
Wall Drug Store has effectively made itself one of the attractions for road tripping across the Great Plains region by pairing its branded souvenirs with those for other local landmarks.
The Route to Road-Trip Readiness
For retailers hoping to take advantage of their location along well-traveled road-trip routes, here are some ideas from those who are already making it happen.
• Offer something everyone driving past needs or wants: free water, free doughnuts, affordable fountain, camping necessities and clean restrooms.
• Create a theme or represent a community or attraction with souvenirs, nostalgia and local color, products and food to create a unique offer.
• Tell a story ... about your store, about the area, about a local hero, etc.
• Promote the heck out of your store and related promotions through billboards, radio ads and pump toppers.
• If traffic is seasonal, place merchandise orders early so the store is fully stocked when the rush begins.
• Staff up in time for seasonal booms.
• Use slower months to revamp and update the store and merchandising as necessary.
in northwest Wisconsin, festivals are a very big thing—muskie festivals, rodeos, aquatic fests. Every town has its own festival. People come up to go to [their favorite] lake, but they’re also going out to Chippewa Falls or Eau Claire for music, so there’s a lot of opportunity to talk about [road-trip travel].”
Retail Division Manager Troy Strand added that the retailer uses its electronic signs to let people know a store’s seasonal product offer.
“We contracted with a company out of the Twin Cities that does all of our marketing on our electronic reader boards out in front on our stores,” he said. “We’ll post some roadtrip ads out there. Social media is a big one, too. We’ll send a blast to all of our followers on Facebook or elsewhere.”
Wally’s uses the slower months to make sure equipment and facilities are working appropriately.
“While we have these quieter months, we look into our facilities and make sure that things are operating as efficiently as they can,” Strom said. “We’re fixing anything that needs work so that once [traffic] ramps up, we’re firing on all cylinders.”
Excellent customer service is similarly important. “It’s appreciated in the moment and drives repeat visits,” Hustead said. “All our employees are our representatives, and that’s something we really emphasize, to be polite and courteous to our customers.”
That means maintaining meticulous attention during the hiring process. In preparation for busy season, Wall Drug staffs up from 70 employees to nearly 200.
“I’ve got 35 [new employees lined up] right now, so I’m on a good track,” Amanda Frink, HR director at Wall Drug, said, noting in January that she was in the process of hiring 110 employees. “We have a big store, and that’s what it takes to run it during summer hours.”
Wall Drug leans into the designation of being a “roadside attraction” and focuses on hiring international college students,
Wall Drug set a template for many of the things that should go into a good road-trip stop.
“All our employees are our representatives, and that’s something we really emphasize, to be polite and courteous to our customers.”
“workampers” and foreign nationals through H-2B visas.
The store employed 80 international college students and 20 “workampers” in 2024. Workampers, according to publication Workamper News, are “adventuresome individuals, couples and families who have chosen a lifestyle that combines any kind of part-time or full-time work with RV camping.” Frink said the number of H-2B visa workers is “always up in the air,” as it’s based on a government lottery. “Last year, we got five, and the previous year there were 26,” she said.
NEW AND NOTICED
One of the things road trippers stop the most for: food.
“We’re constantly tweaking our retail mix. We’re constantly tweaking and adding items to our c-store and Wally’s-branded offerings,” Strom said. “We try to keep it fresh, whether it’s new merchandise, new Wally’s snacks, seasonal food items, or popcorn flavors.”
At Wally’s, whose newest store under construction in Whitetown, Indiana, will be 54,000 square feet, customer favorites include foodservice “experience stations.” These are the bakery, coffee section and Wally’s BBQ Sandwich House, as well as a proprietary popcorn program.
“Not only do we pop it fresh in-house, we grow it ourselves,” Strom said. “[We’ve got] more than 80 acres of cornfields on the Illinois-Missouri border. We like to say it goes from field to popper. That’s something that differentiates us. It’s our own product, our own recipes. It’s a much more premium product.”
At Wall Drug Store, it’s the homemade doughnuts that stand out.
“In the late ’50s, we started giving out doughnuts to all military veterans and active military,” Hustead said. “When I came back
[to the business] 44 years ago at 30 years old, the first thing my dad had me do was learn how to make the doughnuts. Now we have 10 people making doughnuts. He would say, ‘We can never run out of doughnuts!’”
They’re still free to veterans and active service men and women, too. “It’s part of our customer service. We give them a free coffee and a free doughnut and thank them for their service,” Hustead said. “I think it’s one of the coolest things we do.”
Wall Drug also operates the Western Art Gallery Restaurant that seats more than 500 people. It’s known for its rolls, pies and ice cream, as well as hot beef sandwiches, buffalo burgers and five-cent coffee.
Jones Petroleum also invested in foodservice, including space for three QSRs in its 23,000-square-foot travel center. The site includes Burger King, Dunkin’ and Subway, two of them with drive-thru windows.
And at Tioga Gas Mart, its Whoa Nellie Deli is its most popular attraction, according to Molnar.
“We have a very well-known restaurant inside our store. Menu items consist of something for everyone, from slices of pizza to fish tacos and elk chops,” she said. “Plus we have a nice selection of craft beer and quality wines.”
While being in such an out-of-the way location can make for a challenging business atmosphere, Molnar points out one benefit that makes it worthwhile as a retailer.
“We see travelers from all around the world, so our clientele varies a lot,” she said. “However, we are lucky in the regard that most people who come to Tioga Gas Mart are on vacation. So all in all, they are mostly happy to be here.”
Steve Holtz is a veteran c-store journalist with more than 20 years in the industry. He is currently president of Holtz Media Consulting and host of the Convenience Weekly podcast on Spotify. Reach him at Steve@HoltzMC.com
Wall Drug Store makes itself synonymous with road trips through creative use of branded souvenirs.
Photograph courtesy of Wall Drug Store
Leadership Lessons
What’s next for the industry?
A renewed focus on food, fuel and experience.
BY CHRISSY BLASINSKY AND BEN NUSSBAUM
The annual NACS Leadership Forum was held on Amelia Island, Florida, in February. Industry executives gathered for networking and dynamic sessions on a range of pressing topics for the industry.
The best VPs I’ve had, when I look back at who ran the business well, are people who err on the side of being in the store.”
‘How Do We Drive Change?’
Henry Armour has led NACS as president and CEO for two decades and was a highly engaged NACS member and an accomplished retailer before that, while Brian Hannasch was president and CEO of Alimentation Couche-Tard before recently becoming a special advisor to the company. Couche-Tard operates in 31 countries and, with its Circle K stores, is the second-largest U.S. convenience retailer. Hannasch also currently serves as the chairman of NACS.
The two leaders held a wide-ranging Leadership Masterclass to kick off the event.
“I think everyone would agree that our country and the world have never really experienced more change than right now,” said Armour. “So how do we respond to that? And I think maybe more importantly, how do we drive change? How do we become the change agents?”
Leadership Lessons
Hannasch shared that during the Covid lockdown, with the corporate offices closed, he and other Couche-Tard executives spent more time in stores. “And we spent time stocking coolers.” The executives found that the process was awkward and frustrating.
As a result of this hands-on experience, Couche-Tard changed the way it stocks coolers. “Little things like that you just don’t see from our offices,” Hannasch said. “The best VPs I’ve had, when I look back at who ran the business well, are people who err on the side of being in the store.”
Couche-Tard experienced rapid growth through acquisition with Hannasch at the helm. A key to making that work: “We’ve been out. We’ve been visible, welcoming new members into the family, integrating them into the culture, not letting that happen by accident.”
NACS President and CEO Henry Armour and Brian Hannasch, special advisor to Circle K
As workplaces evolve, another key attribute of a leader is emotional intelligence. Hannasch cited the need for “genuine empathy for the people out there working in our stores 365 days a year.” Empathy, he said, is foundational to culture. “I can’t say our culture is perfect, but given what we’ve done in bringing companies together, I feel pretty good about the journey that we’ve been on.”
The Future of Fuel
With its large footprint in the Nordic countries, Circle K has as much EV charging insights as any global retailer. Norway in particular has taken the lead on EVs through large government investments, including incentives to purchase EVs, as well as disincentives (in the form of taxes) to purchase internal combustion engine vehicles. The result is that over 90% of new vehicles sold in Norway are EVs. Driving an EV is “a good customer experience,” said Hannasch. However, the experience of charging an EV is not always a good one.
When Couche-Tard first invested in EV charging, “Like what you’re seeing in the United States, we treated it as a side business.” That meant a charger far from the store, without a canopy or amenities like a squeegee. “So our offer really looked like the McDonald’s offer or Starbucks’ and everybody else,” said Hannasch. “Since then, we pivoted. We’re treating that customer like a customer.”
With an average dwell time of above 20 minutes, “Those people are looking for something to do.” Hannasch noted that CoucheTard was fortunate in that it was already food-forward in the countries that have most eagerly embraced EVs, since foodservice is such a natural fit with longer dwell times Using Norway as a model, “Trips are down. You have a high percentage of charging happening at your home,” work, or elsewhere. “But the economics are good. We make money selling food and electricity and everything else.” With demand decreasing, weaker sites will inevitably close—but that creates opportunity for stronger sites.
Giving Back in a Big Way
At the NACS Leadership Forum, NACS Chairman Brian Hannasch announced that the NACS Board of Directors approved a $2.5 million matching donation to the NACS Foundation. The NACS Foundation unifies, amplifies and sustains the convenience industry’s commitment to giving back. Signature programs include 24/7 Day and the Future Fund, which provides college scholarships to convenience industry employees and the children of store employees. Learn more at conveniencecares.org
Kindness Day
Kindness Day, an initiative with the goal “to promote mutual respect and foster a safe, inclusive work environment for all,” has been a hit for Circle K, starting small in 2023, spreading to more countries in 2024 and swelling into Kindness Week in 2025.
The idea started in Lithuania, a country of less than three million people on the Russian border. Among the unique challenges that country faced was spillover from the war in Ukraine, with displaced Ukrainians sharing space with Lithuanians of Russian descent who speak Russian. “We saw violence in our stores grow,” Hannasch shared.
Lithuanian store leadership convinced Circle K operators in Latvia and Estonia, similarly small countries bordering Russia, to join in the first Kindness Day. “It was a resounding success,” Hannasch said. “It’s really nothing more than encouraging the celebration of our employees, our team members and celebrating the customer.” Items like free cookies helped spread positivity. “It’s got to be one of the top two or three things that our employees have recognized us for.”
Foodservice Is the Future
The convenience industry succeeds together, and Hannasch credited U.S. food-forward retailers for leading the way, “showing us that food can be done well in our industry. It really set the foundation for all of us to convince customers that we are a viable option.”
When it comes to foodservice, “First and foremost, you have to have it there.” But that’s not enough. “Stay committed,” said Hannasch. “We’re not very patient. We’re not very good at not making money.” Since some customers still haven’t tried c-store food, it’s vital to keep “pushing trial, pushing advertising, not sacrificing on quality.”
Hannasch identified a “cultural shift” happening in c-stores. Minimizing waste will always be critical—and Couche-Tard has “invested pretty heavily” in tools that control foodservice waste—but not at the expense of quality.
“What’s going to differentiate a customer turning right or left in the future? I think that food is a key driver of that,” Hannasch said.
6 Takeaways From 2 Food-Forward Retailers
Keeping an eye on the competition, marketing to different demographics, providing an assortment of limited time offers and better-for-you options, incorporating online ordering and delivery, navigating fads and trends … these ingredients can advance a successful food program in convenience retail.
Philip Santini, senior director of advertising at York, Pennsylvania-based Rutter’s, and Dr. Jay Ellingson, chief science officer at La Crosse, Wisconsin-based Kwik Trip, shared their insights and expertise on building a food-forward culture in their respective organizations at the NACS Leadership Forum.
For most retailers with a foodservice offer, the competition is the quick-service restaurant (QSR) down the street. Both have food and drinks, and both serve a customer’s need for speed, but only one has a variety of options beyond the menu board. This leads to takeaway No. 1: competing with QSRs. QSRs are typically associated with specific types of food, like Mexican, pizza, burgers and fries or sandwiches. In contrast, convenience stores offer so much more, making them a complete one-stop-shop with a variety of offers for different customer needs—aka the c-store industry’s differentiator, noted Santini.
“It’s that opportunity to take your day-to-day and condense it into the convenience space … I can get this opportunity for food. I can get some groceries ... our competitive edge lies in the fact that it’s not one sole purpose” that’s driving customers to convenience stores, he said.
At Kwik Trip, the competitive advantage is found in its consistency and hyper focus on exceptional guest services: clean restrooms, clean stores and forecourts, customer service and knowing the guest.
Ellingson shared how in 2009, Kwik Trip founder Don Zietlow asked of his team, “How do we get the sizzle in our food programs?” That sizzle today—or vibe—means hiring the right people to execute the company’s food programs and food protection systems at a high level and build trust.
“Our sizzle today is our family-style guest engagement, where our coworkers get to know our guests locally and the guests get to know the coworkers,” which creates trust within the community, said Ellingson.
Those customers Santini and Ellingson referenced range from Gen Alpha to Baby Boomers—and everything in between. How can c-stores be everything to everyone? That takes us to No. 2: marketing and messaging your offer.
Different marketing strategies appeal to different people. Rutter’s has digital capabilities that speak to different generations and customer segments who frequent its stores.
“We look at different ways to incorporate a digital presence inside of our stores with high-quality photos of our foodservice offers and promotions,” said Santini. In addition, Rutter’s was one of the c-store industry’s earliest adopters of mobile apps, and the Rutter’s app helps promote the food offers.
Ellingson admittedly had not delved much into social marketing until his Gen Z son Ryan became a social media influencer. His son’s experiences—and his mostly Gen A followers—gave Ellingson a new perspective on how the youngest shoppers use convenience stores.
“This age group is young, they’re still around their home and they come into the store with mom and dad” and they are snackers, Ellingson said. “ They don’t sit down for three straight meals a day. They are picking up food and snacks and eating them all day.”
As for the Gen Zs, young adults who are forming their life-long shopping behaviors, “We know they are our future; we hope they will be in our stores for the next 50 years and we target those groups with our social media content” by showcasing trends and what’s new and exciting in Kwik Trip stores, he said.
Different customers want different things, as both Santini and Ellingson established. Which leads to takeaway No. 3: offering better-for-you choices.
A common and observed behavior across most food retail is that what customers say they want isn’t necessarily what they buy. A customer may intend to buy a salad, but man those french fries smell good. Just this one time, right? Yes, but sometimes shoppers’ good intentions win out.
For Kwik Trip, offering better-for-you choices is the norm. The company’s banana ripening rooms in its distribution centers support its massive sales of bananas, with well over 35 million pounds sold each year. Kwik Trip was the first convenience store company to make a commitment with the Partnership for a Healthier America. Through an initial commitment in 2014, Kwik Trip expanded its fruit and vegetable offers and prominently displayed healthier food choices to customers—a practice it continues today across its 878 stores.
“In our organization, we’ve always had healthy alternatives. We always have fresh whole fruit and cut fruit, wraps, protein snacks and dairy,” said Ellingson. In terms of promotion, “You don’t need a ton of healthy alternatives, but you need enough so that people feel good about their choices—if they want it, they can get it,” he said.
Santini agreed, noting that there are ways to promote better-for-you options without having to bring in new menu items. “There are opportunities for us to present [healthier choices] by highlighting those options,” especially to younger customers, he said.
“Historically, we’ve had success with those products with the next generation of people coming into our stores. They’re going to want different things and now is our opportunity to learn from them what they want,” said Santini.
Operationally and technically, online ordering and delivery—takeaway No. 4 are not accelerating at a fast pace, but enough to stay the course instead of abandoning ship.
For online ordering and delivery options, “There is an opportunity for us to expand with our foodservice program,” said Santini. Also, there is opportunity to decrease trips to other retail locations and drive more foot traffic to convenience stores.
“We have some of those essential products that can save you a trip to the grocery store. We have fueling, we have other opportunities inside the store to grab something to go with your family and not have to take another trip,” he said.
Kwik Trip uses mobile ordering and third-party delivery services, but is still “feeling our way through it” because teams want
You don’t need a ton of healthy alternatives, but you need enough so that people feel good about their choices.”
Dr. Jay Ellingson from Kwik Trip, Philip Santini from Rutter’s and moderator Jessica Williams of Food Forward Thinking
to interact with guests inside the stores, said Ellingson. The preference, he explained, is to drive guests to the store for pickup so as not to miss out on valuable opportunities to serve and engage with customers.
While new food items and products create excitement and brand awareness, one of the best ways to drive trial to new food items is through takeaway No. 5: leaning into LTOs.
Santini shared Rutter’s strategy for launching limited time offers. The chain runs new LTOs quarterly, either around new items or bringing back previous favorites that performed well. “The idea is to do something that is exciting, new and fresh—something that a customer didn’t think they could get at a Rutter’s,” he said.
A big part of this strategy is combining items that are already on the menu rather than bringing in something totally new. Rutter’s has also found that it can compete with QSRs by driving volume to its stores, where customers purchase a high-quality foodservice item at an affordable price while also picking up other in-store merchandise.
One way to enhance LTOs is through unique sauces and condiments, suggested Santini. For example, if a menu already offers chicken tenders, adding a spicy aioli and pepper flakes can create a “fire-breathing LTO” that features a new flavor profile.
Kwik Trip has a six-week LTO rollout schedule and has found success in promoting its new offers through a classic marketing strategy: paper flyers. “We have people coming into our stores with these flyers in their hands, just like the old days,” said Ellingson.
So, what’s next for foodservice? What’s on the horizon for developing and marketing new food offers that keep customers coming back? That’s our final takeaway: No. 6, identifying future trends.
One that is top of mind is portion size.
With the rise of GLP-1 medications, “Portion control is obviously top of mind,” said Santini. “As we look at our menu development and engineering and the FDA’s perspective, we’ll be ready to take something like this on,” he said.
Kwik Trip has a six-week LTO rollout schedule and has found success in promoting its new offers through a classic marketing strategy: paper flyers.
“It’s wait and see right now, but it will impact our business,” agreed Ellingson.
Within a complex world of food, safe food handling and being a food-forward destination, a bonus takeaway from Ellingson is to keep it simple.
“We serve over 12 million guests a week in the upper Midwest. When guests say, ‘This is my Kwik Trip,’ I know that the engagement has come full circle,” said Ellingson. “They’ve tried our food and we’ve built that trust … they respect what we’re doing as a foodservice entity,” he said, adding the importance of not overcomplicating human interactions and exceptional customer service.
“As a scientist, I like to boil things down to how simple they should be, and I think the reason why our organization is successful is because of our customer engagement,” he said. Santini’s bonus takeaway comes from how he finds ideas.
“Being a chef by trade and working in the QSR space, I look at food differently than most,” he said. He keeps a journal of things he sees, like ingredients or new food items. “I have a long running list of ideas that I continuously go back to” and share with his colleagues.
Chrissy Blasinsky is the digital and content strategist at NACS.
Ben Nussbaum is the editorin-chief of NACS Magazine.
is the center of the global c-store world—and it’s got the ideas to prove it.
BY JEFF LENARD
BIG IDEAS FROM CONVENIENCE SUMMIT ASIA
“We bring our industry together to find and make our industry’s future,” said NACS President and CEO Henry Armour, broadly speaking about the role of NACS. And that was certainly the case for the record number of attendees at the 2025 NACS Convenience Summit Asia, which took place in Tokyo, Japan.
In every city that hosts a Convenience Summit Asia, tours are focused on the specific retail excellence found in the market. Tokyo, with a population of over 14 million, is densely populated with both people and small-format retail, where customers pick up items that they can carry home, either walking or using public transportation. Only 17% of the population has a car.
Here are 17 themes that I saw over 9.9 miles of store tours spread over three days and 39 locations. To quote the speakers on stage, feel free to “copy, paste, localize and scale.” So come take a walk with me.
Unlike the United States in which the c-store industry is dominated by independent operators, the Japanese c-store market is concentrated around a few large players. Of the approximately 56,000 stores in the country, more than 53,000 are operated by seven brands.
All About Foodservice
7-Eleven: 21,248 stores
Lawson: 13,779 stores
FamilyMart: 16,047 stores
HOT IS COOL
Be careful which beverages you grab in the “cold vault”—some of them may be hot. Virtually every c-store had a special section of what looked like the cold vault dedicated to ready-to-drink packaged beverages like coffee and tea that were heated. The beverages seamlessly blended in with the overall offer and didn’t require any unique merchandising beyond the different temperatures—except for the signs that screamed “Hot!” that I failed to notice the first time I grabbed one. I’m okay—they weren’t overly hot. It was a great example of providing a new level of convenience to customers who can select either dispensed or packaged options for hot beverages, just like they can with cold beverages.
Ministop: 1,814 stores
Seicomart (no locations in Tokyo, only in Hokkaido): 1,173 stores
NewDays: 345 stores
Daily Yamazaki: 953 stores
ICE IS NICE
While some like it hot (beverages, that is), others like to cool down, especially younger consumers who prefer iced coffee to hot coffee. In most stores I’ve seen in the United States, customers seeking iced coffee have to plan an elaborate dance to grab a cup, find the ice machine and then return to a coffee station to prepare a drink. Not in Tokyo. Stores speed up the process—and eliminate the concern over stray ice cubes creating slip-and-fall issues if they melt on the floor. Simply grab a cup that’s lidded and already filled with ice and make your favorite chilled treat.
BETWEEN TWO SLICES
Japanese c-stores are renowned for their sandwiches (or “sandos”), which feature pillowy slices of bread with the crust cut off. The egg sandos are just as amazing as their social media reviews attest, but there are many options, some of which seem to have been designed by a mad scientist. Like blueberry and whipped cream cheese—it was like eating a yogurt parfait between two slices … and delicious. The strawberry and cream sando was even better. And because I can only eat so much, I didn’t get a chance to try some other options like sandwiches filled with mayonnaise and corn—or noodles. Yes, a noodle sando. Next time.
FRESH WITHOUT ONSITE PREP
A key to the delicious food offered in Japanese c-stores is the efficiency of delivery— as many as three times a day. This allows stores to offer ultra fresh and tasty items without having to prepare food on-site—an important consideration given store footprints are typically between 1,000 to 2,000 square feet. In our pre-tour walk-through, we visited one store that had plenty of out of stocks at the end of a three-day holiday weekend, and I was concerned it wouldn’t be a great visit the next day. But it was fully stocked and full of fresh items.
GOING VIRAL
Sandos aren’t the only fantastic option available for grab-andgo dining. There are many fresh, tasty and relatively inexpensive snacks—and look no further than TikTok to see what people love about them. Leading the way on posts—and views—are onigiri. Technically, many of these rice balls are triangles, but regardless of shape, the packaging is next-level engineering. There is a three-step process to open them so that the moist rice is separate from the crispy seaweed sheet until you’re ready to eat it. The treat is very filling and popular across many other Asian markets. The day I sampled the first of many onigiri (the one with mayonnaise and tuna was my favorite) an article in The Japan Times reported that c-store sales in South Korea increased significantly while sales in competing channels had lagged. A big reason for the growth: value-priced rice balls.
OODLES OF NOODLES
Remember that “no hot pots” rule in college dorm rooms? Maybe ignoring the rules and heating up a late-night snack is why ramen holds a special place in my heart—and stomach. But if I could go back to school, I’d relocate near a Japanese c-store. Yes, they have the familiar options, but there is so much more, as well as handy hot water dispensers to prepare the meal to eat on-site.
Unique Merch and Services
ATMS AND MORE
All c-stores had ATMs, but it’s doing them a disservice to call them that—they are really financial services centers. Sure, they could dispense cash. But they also could be used to establish bank accounts, purchase one-day or multi-day car insurance packages, redeem loyalty points, pay bills and even purchase tickets for sporting events or concerts. The machines drive traffic and revenue—10% or more of total store revenues in some cases.
GET DRESSED
SAVE IT FOR A RAINY DAY
The weather couldn’t have been nicer during the store tours, but stores were definitely prepared for rainy days. Every store had a stock of umbrellas conveniently located by the entrance for purchase. I didn’t see any of them store branded, but for stores that have raving fans who will buy anything with a logo on it (I’m looking at you, Buc-ee’s), it seems like a potential opportunity for retailers in any country.
Some industry experts have called Japan a “sea of sameness,” which is great for customers who have an exceptional experience, but how do stores stand out from the intense and exceptional competition? For FamilyMart, it’s a whole clothing line designed by world-renowned designer Hiromichi Ochiai. The company has sold more than 10 million pairs of socks, but that is just a start. You can buy underwear, dress shirts, jackets and even some shoes. The only branding is a slight hint of company colors on some items.
Innovating Store Operations
SHOW THEM WHAT TO BUY
Upscale grocer Meidi-Ya has stores that are about the size of a Trader Joe’s or even smaller. With space at a premium, it’s essential to make it easy to quickly grab items—or find ideas. A QR code next to products showed items needed for a complete recipe, and a video on a small screen showed how to make the meal.
THE PRICE IS RIGHT
Electronic price signs are becoming increasingly common across retail.
In the United States, I’ve seen them largely used for high-ticket items like kitchen appliances at The Home Depot. In one Tokyo grocery store, the tags were used to price everyday groceries, including soft drinks. Meanwhile, in c-stores, we saw employees manually putting “on sale” stickers on fresh items to help clear the shelves for the next delivery, a very labor-intensive process. Variable pricing—particularly to mark down items—will probably be much more prevalent as the cost of these tags continues to come down.
DISPENSER-FREE FUELING
In Tokyo’s downtown, there was a cool solution to move cars through a small lot as they purchase fuel—eliminate the dispensers. Nozzles hung from the canopy, with signs showing the price and volume pumped attached to the ceiling. As a bonus, workers also wiped down cars during the fill-up. A laundry washer and dryer on the forecourt allowed the towels used for these quick cleans to be reused throughout the day.
WHAT IS LOCATION?
The traditional model in the United States— and many other countries—is to find a location that is easily accessible for drivers, preferably taking a right-hand turn (or left-hand turn in Japan). But can a store in a mall that requires going up four escalators and then walking down a long hall that appears to be a dead end also be convenient? In Tokyo, the answer is yes!
At FamilyMart’s Famima!! concept, the lines of customers were truly astonishing. The self-serve line went the whole length of the store and curved around the corner. The cashiered lanes did the same on the other side, with both sides meeting in the back of the store. Unlike other c-stores we visited, this one felt like a purposely designed store, as opposed to others in downtown areas in which stores move into an existing location with set size limits. One other thing worth pointing out: Customers could buy food items and donate them to those in need through marked bins.
In the City
THE QUIETEST BIG CITY … MOSTLY
Tokyo was described as the “quietest big city in the world” by Mark Wohltmann, NACS director of global, and he wasn’t wrong. Having lived and worked in New York City, which is the very definition of cacophony, Tokyo was eerily the opposite—in a good way. Few people spoke on the subway, or only at a whisper, I never heard a car honk, and it appeared that even construction was more muted. Then there is the discount store Don Quijote, which made up for the quiet with four stories of sensory overload. Known for skincare products, many of which are big on social media, the store had plenty of products beyond that, and colors, lighting and sounds that would make some of the stores on Canal Street in New York City appear sedate. But it also was awesome.
The 2026 NACS Convenience Summit Asia will take place in China. Until then, arigato, Japan!
PORTION CONTROL
We visited numerous grocery stores, and I never saw any giant packages—whether for meat, fruits and vegetables or packaged items. Instead, I saw loaves of bread that were half loaves—or even just three slices. For multiple reasons, shoppers visit stores multiple times a week. It’s certainly a convenience culture, and that also plays to c-stores’ strengths.
CALLING TRUAGE
Vending machines were everywhere, mainly for beverages. One of particular interest to me had Kirin’s “Mets” beverage, which seemed to have branding very similar to a certain New York baseball team. But vending machines also sold other products—including cigarettes. The smoking age is 20 in Japan, and it seems that the honor system is in place for whether you are age appropriate to purchase them. The machines seem like a perfect fit for NACS’ TruAge age-verification solution.
TRASH TALK
In Tokyo, it’s very difficult to find a garbage can—whether on the street or even in a store. Consumers are encouraged to take their trash home with them. You won’t find many places to throw out cigarettes, either: Most Japanese smokers carry portable ashtrays they put their butts in.
HAVE FUN
“Every Life, Every Fun” is the message you see at some Famima!! stores, but it’s more than a slogan. Even a merchandise rack featured products that were called “Fun.” I expected toys or games, but it was food. And that word sums up the Japanese retail experience. It was flat-out fun. I can’t wait to come back.
Jeff Lenard is NACS vice president of media & strategic planning. As a kid he was awed by, and terrified of, Godzilla.
From firewood and bait to bottled water and windshield wash, smart retailers use the fuel pad to extend merchandising space.
BY STEVE HOLTZ
CUSTOMERS LURING
FO ECOURT TO THE
ECOURT
wice a week, Steve Raney hops into his car and drives a 190-mile circuit around the Chicago market, beginning in northeast Illinois, traveling to the western suburbs of the city and up into southern Wisconsin. His passengers on the trip: hundreds of Canadian nightcrawlers, giant redworms and minnows.
“Bait-and-tackle stores were becoming a thing of the past. It was very difficult to make a living off the store that we opened, and the machine opened up so many other possibilities: multiple locations, no common-area maintenance fees and so on,” he said.
I always say, ‘we’ve got some prime real estate so why not use it?”
For nearly 25 years, Raney, owner of Trading Post Vending, Woodstock, Illinois, has attended to live bait vending machines stationed at convenience stores, liquor stores and forest preserve properties across the two states. His journey to this line of work suggests a unique relationship with retailing and the role of direct-store supplier.
“I always wanted to do two things when I was younger: I wanted to build my own house, and I wanted to own a bait-and-tackle store,” Raney said. “I built the house, and then I opened the bait-and-tackle store in Harvard, Illinois. It was then that I ran into one of these [bait vending] machines ... and I could see the advantages of it real quick.” Raney acquired a vending machine for his store, working with the manufacturer—Automated Merchandising Systems Inc., Kearneysville, West Virginia—to create a machine that fit his specific needs.
Having weaned himself of several ancillary businesses as the years piled up, Raney currently services 15 sites in Illinois and Wisconsin, managing just one aspect of what for some convenience retailers is a lowkey but profitable niche: exterior merchandising.
A STORE’S FRONT PORCH
KornerStores convenience stores sell “a little bit of everything” on the forecourt, according to Derek Medved, owner of the Duluth, Minnesota-based chain of 15 c-stores in prime fishing destinations across Minnesota, North Dakota and Wisconsin: “firewood, window wash, road salt, mulch, dirt.”
Operating in communities where residents embrace the great outdoors, KornerStore has found the forecourt a prime spot to show customers that it understands their needs and, in the process, build the sales basket.
“We’re around some lakes and some cabins, so we’ve [sold] kayaks at the pumps,” he said. And as this spring nears, Medved is considering a new opportunity: selling lawnmowers on the forecourt. “We’re looking at partnering with one of the local dealers and giving them some exposure out there. I always say, ‘we’ve got some prime real estate, so why not use it?”
As to bait, Medved prefers to merchandise his nightcrawlers and other wiggly options indoors.
“We sell significant amounts of bait, but we believe that customer service is the top priority. So we want customers to come in the store, have that interaction,” he said. “Come on in and get a pop!”
Similarly, Synergy Cooperative sells live bait in seven of its 17 Cenex-partnered convenience stores in northwest Wisconsin.
“Most of those also have bait tanks with minnows, suckers and so on for fishing,” said Sean Rooney, category manager. “They all have at least 12 feet of retail space, and some have significantly more. Most of that space consists of terminal (or basic) tackle, which is used year-round, and then others have seasonal tackle that changes from ice fishing
Photograph by Steve Holtz
Impulse products such as live bait and firewood work well at stores near a lake or campground.
season to open-water fishing, and the accessories that go with that.”
“It’s one of those things that helps bring the customer into the store,” said Troy Strand, c-store division manager for Synergy Co-op, “and it supports the local fishermen who live right there.”
Deerfield, Illinois-based Rmarts is more functional about outdoor merchandising, though no less committed to it.
“We always have something [merchandised] outside,” said Ryan Razowsky, president of the 13-store chain. Depending on the season, the company’s forecourts are typically stacked high with windshield wash, road salt, firewood and/or 24-packs of bottled water, as well as bagged ice merchandisers and propane cages.
The selection “will vary based on how much real estate we have in front of the stores, whether it’s open 24 hours or not, [and other] dynamics of the site,” he said. The goal, ultimately, is to drive impulse buying.
IMPULSIVE BEHAVIOR
In urban or suburban markets, outdoor merchandising is built on impulse. While pumping fuel or buying a drink can get a customer on the lot, seeing a pallet of window wash or a rack of firewood provides a reminder that the customer is in need of these vehicle or homeowner necessities.
“It’s impulsive for people who are at the pump or walking into the store,” Razowsky said. “A customer sees it and thinks, ‘That reminds me, my wife’s car needs window wash.’”
Product Closeup
LIVE BAIT
“The old-school bait stores you used to see all over are fading out,” said Nolan Smith, co-owner of DMF Bait Co. “And convenience stores, with long hours, are becoming more of the go-to place to get bait. For the customer, you can come in with your boat, get gassed up, buy three or four cups of worms, along with your snacks and drinks and ice, all in one stop.”
DMF Bait’s program provides a branded refrigerator that goes inside the store. Cups of bait—six common types of worms—can be ordered through familiar distributors, including Core-Mark, H.T. Hackney and Imperial Distributors. Smith also ships direct to more remote stores using FedEx. DMF also provides fishing accessories, telescopic fishing poles and smaller poles for children.
“If you’re selling recreational fuel or other products that are geared toward campers or boats, [bait] helps bring that customer in,” Smith said. Beer helps, too. “If a store sells alcohol, that is a huge bonus: gas, beer and bait,” said Steve Raney, owner of Trading Post Vending. “You’re trying to create a one-stop opportunity for the customer.” Troy Strand of Synergy Cooperative added, “I joke that for every bucket of minnows that goes out, a 30-pack of Busch Light goes with it.”
Raney’s live-bait program places a bait vending machine outside a store free of charge. He manages the stock, from worms to minnows and fishing-tackle basics. He sets the prices. The customer pays at the machine through a credit card reader.
“It’s a hands-off program. We do everything,” he said. “The store gets 10% of the gross sales, less if any taxes are collected. That makes it real simple for both sides.”
In general, the price for live bait can range from $5 to $9 for 12 to 24 nightcrawlers depending on the vendor.
I joke that for every bucket of minnows that goes out, a 30-pack of Busch Light goes with it.
Trading Post Vending clears out its bait vending machines during cold months, with signage to note the worms and minnows will return in the spring.
Conversely, in rural communities, the products on the forecourt can become a destination.
“We’re very selective about what we put at each location,” Medved said. “Every location has a little bit different personality. That’s our goal.”
Product Closeup
PROPANE
Propane tank exchanges accounted for 15.2% of general merchandise sales in convenience stores, according to the NACS State of the Industry Report® of 2023 data. Propane merchandising is typically done from a locked cage placed outside a store and managed by a distributor. Completing a sale, however, does require an associate’s attention.
“[A propane] transaction requires the employee to go outside, and that’s really where we focus our training efforts,” said Danny Thurmond, senior director of sales for Blue Rhino, a Winston-Salem, North Carolina-based company that supplies nearly 30,000 c-store locations across the United States.
“Propane is a hazardous material. It’s prohibited from going
inside the store,” Thurmond said. “The consumer needs to make the transaction indoors, then the store associate needs to go outside to complete the transaction. [They need to] make sure the consumer has an empty tank to exchange, if that’s what they told you inside.”
Store associates are asked to conduct a quick inspection of any incoming, 20-pound propane cylinders.
“[The store] is responsible for making sure [tanks are] in acceptable condition and safe for us to take into our supply chain,” Thurmond said, “so there’s training to make sure the tanks we are bringing in are acceptable.”
Canada-based SLEEGERS Engineered Products, meanwhile, is pioneering a self-service kiosk system that takes the store associate out of the equation.
“Our kiosks fully automate the exchange process,” said company president Dan Granger. “Custom-
Which outdoor merchandise fits at a store “largely depends on its location and the outdoor-related activities relevant to your customers,” said Toni Emerson, director merchandising systems for McLane Company, Temple, Texas.
A store near a campground or national park—or even a watering hole known just to locals—can build a reputation as an ideal last stop before reaching the camping location. Get the customer inside to pay for a bundle of firewood, only to be greeted by a display of relevant products.
“Stores near parks and open spaces often see high demand for cookout-related items, such as aluminum foil, lighters, paper plates, bags of ice and charcoal,” Emerson said. “Additionally, items like sunscreen, sunglasses, hats, water, snacks, insect repellent, wet
ers simply approach the kiosk, follow the on-screen instructions, and complete their transaction independently. This streamlined process significantly improves efficiency and eliminates the need for site-employee involvement.”
Establishing a propane program is generally low expense and labor. SLEEGERS places one of its kiosks on the c-store property. From there, “The responsibility of sourcing propane falls on the convenience store owner, who leverages their existing relationship with a propane supplier,” Granger said. “Our role is to provide the cutting-edge kiosk technology and ongoing support to ensure seamless operations, enabling store owners to manage propane distribution efficiently within their current supply chain.”
Alternately, Blue Rhino will place a propane cage and supply the tanks free of charge. Retailers are responsible for the cost of
Many communities require parking lot bollards to maintain safety at stores that sell propane.
wipes, portable coolers and first aid kits are popular.”
“For winter and other outdoor activities, consider stocking hand warmers, gloves, hats, lip balm, moisturizer, energy bars, flashlights and batteries.”
The products that are outside provide an incentive to a customer to go inside the store, said Nolan Smith, co-owner of DMF Bait Co., Waterford, Michigan.
“The idea is to get the customer to go inside the store,” he said. “[While at the store for bait], they’re going to buy a bag of ice, a couple pops. They’re going to buy their snacks, whatever they’re going to take out onto the water. ... They end up spending an extra $15 on whatever else they’re going to need for their trip.”
TAKING STOCK
Once you’ve decided forecourt merchandising is right for your store, one of the most cited challenges is finding and managing the numerous distributors it can require.
McLane Company can provide many of the most essential outdoor products: propane, firewood, antifreeze, windshield cleaning fluid and road salt. “Our general merchandise includes products that support outdoor adventures and trips,” Emerson said.
At Rmarts, bottled water and bait come through the chain’s primary distributor, Imperial Trading Co./S. Abraham and Sons, Inc., Grand Rapids, Michigan. Most others, including propane, firewood, windshield wash, road salt and bagged ice, come through direct-store shippers.
the propane itself and have the freedom to establish their own pricing structure—one cost for exchanging a tank (typically about $20-$30) and a second price for
buying a prefilled tank without having an exchange ($50-$70).
“Propane is probably one of the highest gross-margin dollar rings a convenience store may offer,”
Thurmond said. Sales volume can vary significantly and may be seasonal, but an average store could expect typical gross margin of about $2,500 per year. According to the NACS State of the Industry Report® of 2023 data, propane exchanges average gross margin percentage at 45.44%. Other seasonal general merchandise averaged at 43.59%.
The impulsiveness of the products make them less price-sensitive. “[Propane] is very much a convenience-driven product,” said Thurmond. “A lot of times, what sparks demand for our product is somebody is grilling out or has a patio with a heater and they unexpectedly run out [of propane]. ‘Oh no, I’ve got to go get a new bottle!’ And few people are Googling ‘best price for propane.’ It’s more likely, ‘Where can I go in the shortest amount of time to exchange an empty tank for a new one?’”
“They are coming from different places,” Razowsky said. But once those products are placed on the forecourt, they’re generally low maintenance.
With firewood, for example, “They [Lake Zurich, Illinois-based Snugglewood] deliver it and merchandise it. We’re pretty hands off other than shifting [the wood] around as it starts to sell down,” he said. “For windshield wash, it gets delivered on a pallet, so our team has to break down the pallets, and then we’ll do an inside display in addition to the outside display. We merchandise those, and we shift around the promotional activity based on the time of year.”
Rooney at Synergy Co-op said even managing a single product segment like bait and tackle requires multiple suppliers.
“We have several different suppliers: Robinson Wholesale, Sports Specialist, Big Rock,” he said. “They each have their own specialty, and we try to streamline it to get the best selection for us. Much of it has to do with their ability to work within our Cenex operating systems.”
And to call attention to such products, Emerson recommends “point-of-purchase displays, signage and shelf-toppers in high-traffic areas to promote these items. Additionally, digital promotions, online advertisements and social media campaigns have proven successful in driving sales.”
Because many of the products sold outdoors are subject to seasonality and regionality, keeping a close eye on sales and consumer trends helps a retailer manage the selection, she said.
“Our product offerings are primarily driven by customer demand, so it is crucial for operators to stay updated on changing needs and adapt accordingly,” Emerson said. “We respond promptly to these changes to ensure our distribution centers nationwide have the necessary items in stock.”
RIGHT FOR YOU?
One of convenience retailers’ greatest laments is a lack of space. There’s always a desire for more square footage, additional cooler doors and extra space at the front counter.
Using vacant space in front of a store or between fuel pumps opens a whole other merchandising area, as long as it’s not impeding customer traffic. And with their impulsiveness, the products that make sense there—propane, firewood, road salt, wind-
Baiting the Hook
A by-no-means-complete list of products that may deserve a spot on your forecourt. Use your imagination.
• Bagged ice
• Black dirt
• Bottled water
• Camping chairs
• Coolers
• Firewood
• Sports drinks
• Kayaks
• Lawnmowers
• Live bait
• Mulch
• Potting soil
• Propane
• Road salt
• Windshield wash
shield wash, etc.—are less price-sensitive and can provide a healthy gross profit margin.
But outdoor merchandising isn’t for everyone. Wade Griffin, retail manager of Southern Valley Travel Center in southeast North Dakota, prefers an unimpeded forecourt. The single-store retailer is located within 20 miles of several campgrounds and just a mile from the trout-rich Red River. The area receives about 30 inches of snow each winter. Still, don’t expect to find firewood, road salt or bait on the forecourt. Griffin limits the product placed out front to ice bins.
“We talked about that when we were building the store: Did we want to have washer fluid or other product out there?” he said. “We decided, out of a desire to help keep product inventory to a minimum, not to do it.”
Whether forecourt products are right for your store depends on your location and understanding your customer. Some items, such as propane and ice, don’t require a fuel island at all; sidewalk space in front of a strip mall may do. But niche items like bait and certainly kayaks require a closer look at your store location and weather trends, said Smith of DMF Bait Co.
“If you are in Texas or Florida, by all means you are pretty much a year-round fishing state,” he said. “We’re located in Michigan. Here, you are primarily talking about April through Oct. 1 [to sell bait]. You’ve got some diehards that will go later into the season looking for specific types of fish up north, but your general weekend warrior is April through Labor Day.”
Raney of Trading Post Vending echoed these thoughts about seasonality, and got even more specific about location.
“[Bait vending] is a real niche market. It doesn’t work everywhere,” he said. “Where [my machines] are, you can throw a stone and hit water. It works very well in that circumstance.”
The choice falls to the retailer. Do your research. Will these products sell here? Do we have access to a reliable supply chain? And what are our priorities as a company? The answers will point the way—possibly outside.
Steve Holtz is a veteran c-store journalist with more than 20 years in the industry. He is currently president of Holtz Media Consulting and host of the Convenience Weekly podcast on Spotify. Reach him at Steve@HoltzMC.com.
Executive Education
From disruption comes opportunity. At this very moment, the convenience industry is rich with possibility. The key to success? Leaders who can forge a new path. Informed, confident and nuanced leaders are the best asset an organization can have. NACS Executive Education has partnered with world-class, Ivy League institutions — boasting some of the best educators in the world — to provide exclusive education to shape the forward-thinking, determined leaders who will illuminate and seize the opportunities of tomorrow.
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The Wharton School University of Pennsylvania Philadelphia, PA
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MIT Sloan School of Management Cambridge, MA
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The NACS Master of Convenience designation acknowledges the leaders from around the globe who have invested in their personal leadership development and attended 3 or more NACS Executive Education Programs. Learn more at convenience.org/NACSMaster
Bite First
The June issue of NACS Magazine will contain deep dives into the NACS State of the Industry data and insights from the NACS State of the Industry Summit.
Preliminary NACS State of the Industry numbers are in— here’s how foodservice performed in 2024.
Preliminary NACS State of the Industry data for 2024 shows how retailers that prioritize their foodservice programs are benefiting. “A solid foodservice program is critical to the future of convenience. In 2024, foodservice contributed 25.12% to inside sales, second only to cigarettes and tobacco (25.16%),” said Chris Rapanick, managing director, NACS research. Although store traffic overall was down in 2024, foodservice is enticing customers inside the store.
The top decile of convenience operators, defined as those in the top 10% of store operating profit, excel at foodservice. In 2024, these retailers saw nearly three times more foodservice sales and four times more foodservice gross profit dollars than the bottom decile. Foodservice contributed 31.3% to the margin for top decile companies.
Overall sales of the five foodservice categories of prepared food, commissary, and hot, cold and frozen dispensed beverages grew 5.3% year over year.
Prepared food, which saw promising growth in 2024, with an average margin of 47.32% and brought in $48,939 per store, per month.
Hot dispensed beverages sales were lukewarm, seeing only an increase of 0.7%, from an average of $4,942 to
$4,977 per store, per month sales.
Commissary was the only foodservice category that did not see growth in 2024, with sales of $3,201 per store, per month.
Cold dispensed beverage sales increased 5.8% and gross profit dollars followed suit, increasing 5.2% year over year.
Frozen dispensed beverages typically boasts some of the highest margins in the category. In 2024, it averaged a 50.20% margin, slightly less than the previous year.
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 2024. The products featured here also can be seen in the Cool New Products Discovery Center at www.convenience.org/coolnewproducts
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State of the Industry Talent Insights Dashboard
Considered an essential dashboard for HR professionals in the convenience channel for more than 40 years, the NACS State of the Industry® Talent Insights Dashboard is the industry’s premier compensation benchmarking resource. This year’s report is based on data submitted by 92 retail companies and representing more than 21,000 stores and 344,000 corporate, operational, and store-level employees. Although overall totals are statistically valid, some breakdowns may not be available due to limited sample sizes. To maintain confidentiality, where the unweighted sample size is insufficient, exhibits include the notation N/A (not available, not sufficient data). www.convenience.org/research
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Facing the Storm
Port Quick Shop was saved from closing through determination and creative problem-solving.
BY AL HEBERT
Brandon Duncan, co-owner of Port Quick Shop in New Iberia, Louisiana, glides through the kitchen as the frenetic breakfast rush begins. Scores of empty white paper bags sit near the hotbox waiting to be filled for the customers that will soon descend on the store. It’s a bit like the last few minutes before a big game, but this game happens each morning.
Brandon was once a vice president and financial advisor with Merrill Lynch. He
served in that position for 15 years, with his wealth management practice focused on managing the liabilities of affluent individuals and business owners.
“I worked with business owners in raising equity and divestiture,” he said. “I didn’t think that one day I’d convince my parents not to monetize a small c-store.”
His parents, Brooke and Lucia Duncan, had thought that they had enough of the c-store business. “We were about to close after 15 years of running an
exceptional business. We had 18 employees, plus my husband and I were here full time,” Lucia explained.
From Hurricane Rita flooding the store in 2005 to the BP oil spill in 2010, the ups and downs of a business were weighing heavy on the Duncans. One day, they decided to shut it down.
“I think it might have even been before lunch, they literally locked the doors and said, we’re done,” recalled Brandon. “I initially reopened it just to
Brandon Duncan cooking up some shrimp tacos, which he added to Port Quick Shop’s menu after taking it over from his parents.
Like everyone with a food program, the Duncans are grappling with rising costs.
“I realized the other day that these eggs are small, and I paid 71 cents an egg. We crack hundreds of eggs. So, when we make an omelet, we’re probably using five eggs, even though it’s not a big omelet. You’re charging for an omelet with sausage and cheese and bacon and everything else. I realized that we probably weren’t making money on an omelet, which is unconscionable. So managing food costs is a big thing.”
“We try to keep it affordable, but we’re in the business of making a profit,” Brandon said.
fast burritos. I also bring some lunch meals, like barbecue burgers, hot link po’ boys, chili cheese dogs, stuff like that,” Brandon said.
“Now my break business is probably the biggest of the day as far as delivery,” he added.
But being so close to the water in Louisiana comes with its own risks. It’s not a question of if a hurricane will hit the coast, it’s when. “My dad was having to empty the store every time they had a threat of a big surge. He was getting 18-wheelers to move everything off-site. It was a huge task and very stressful,” Brandon said. “My fiancé and I emptied the store three times in the last eight years.”
sell the store. We had a small staff, and then I realized that it was a darkest before dawn situation, that they were just tired. And it was a typical small business owner just having enough.”
“Eventually, I convinced them to let me run it. I moved here permanently about nine years ago,” Brandon said. Even with Brandon at the helm, it remains a family business. His mom comes in a few hours a day to help.
BUILDING OUT THE MENU
Brandon has built out the foodservice program at the store and developed some popular menu items.
“He’s added a lot, like shrimp tacos. We never had that before. He does shrimp and pasta and lasagna. He just kind of does his own thing and nobody can cook as good as he does,” said Lucia.
The plate lunches are popular—and there are some favorites. “The hamburger steak is a crowd favorite, so is the crawfish étouffée,” said Brandon. “Usually about once a week, I’ll do a smoked chicken plate lunch along with a really awesome rice dressing.”
The hamburger has a touch of Cajun flair and is a hit with customers. It’s a half-pound smashburger that’s “seasoned to perfection.” The Cajun trinity of seasoning, onions, bell peppers and celery, are placed in a blender along with other ingredients. Once blended, the mix is added to 80% lean ground beef. This technique makes for even distribution of the seasoning in the meat.
WATER MEANS BUSINESS— AND STORMS
Port Quick Shop is located near the Port of Iberia, which is a busy deepwater port. Six companies moved here in the last year and land is being cleared for new industries—which means more workers and more customers for the c-store.
Brandon developed a business strategy to tap into the port worker customer base. He delivers food to the work sites during the workers’ short breaks. “In the morning, I’ll bring a combination of breakfast things, you know, all the things we serve like sandwiches, break-
Brandon’s father came up with a creative solution to save time with each big surge. “He put everything in the store on wheels, including the shelves. Even the large counters with the register are on wheels. Then he installed a boat lift at the back door,” Brandon explained. Everything in the store can be rolled out and lifted to a raised storage container made out of a shipping container.
Al Hebert is the Gas Station Gourmet, showcasing America’s hidden culinary treasures. Find him at www.GasStationGourmet.com.
Port Quick Shop is located on the Louisiana coast and has an ingenious solution to managing the inevitable high waters. Everything in the store is on wheels and can be moved to a platform that can be elevated above the rising water. The platform is above the vehicle in the photo.
The smashburger, made with a touch of Cajun flair, is a hit with customers.
CATEGORY CLOSE-UP PACKAGED BEVERAGES
Keeping the Cooler Hot
Packaged beverages help satisfy the thirst for sales.
BY PAT PAPE
It’s unlikely that anyone will ever encounter a genuine jackalope, Bigfoot, Wampus cat or North American convenience store that doesn’t sell packaged beverages. According to 7-Eleven, more than two-thirds of customers’ store trips include a beverage purchase, making it essential to provide a broad selection of drinks to satisfy consumer preferences.
In 2023, packaged beverages were the second largest contributor to c-store instore sales when excluding foodservice categories, according to the NACS State of the Industry® Report of 2023 Data.
“Packaged beverages made up 17.96% of in-store sales and totaled $40,014 per store, per month in sales on average,” said Emma Tainter, research analyst and writer at NACS. “This was an 8.2% increase year over year. Energy drinks were the largest contributor to packaged beverage sales in 2023, reclaiming the number one spot after coming in second to carbonated soft drinks in 2022.”
“Year over year, energy drink sales increased per store, per month by 16.3%. Sales went from $9,229 in 2022 to $10,737 in 2023,” she said. “You’re seeing a lot more ‘clean’ and better-foryou energy drinks, and manufacturers are being very transparent about the ingredients. They’re promoting them as a healthy way to get your energy.”
You’re seeing a lot more ‘clean’ energy drinks, and manufacturers are being very transparent about the ingredients.”
PERK UP PLUS
The packaged beverage category is made up of nine subcategories: carbonated soft drinks, RTD iced tea, sports drinks, juice/juice drinks, bottled water, other package soft drinks, energy drinks, enhanced water and the newest category, RTD coffee.
Energy drinks, which first started to be a defined segment in 1987 with the launch of Red Bull, are leading the category in sales. The U.S. energy drink market was valued at $25.8 billion last year, according to Custom Market Insights, and is expected to hit $50.8 billion by 2033.
$17,865
The average gross profit dollar contribution of packaged beverages per store, per month.
Source: NACS State of the Industry Report® of 2023 Data
Impressive sales growth is occurring in functional SKUs and better-for-you beverages. The latest brands on the market—some produced by small, regional manufacturers—are aimed at consumers who want clean-label beverages that may improve cognitive performance, stress relief or gut health.
Functional beverages are attracting Millennial and Gen Z shoppers—together, the two generations make up almost 40% of the U.S. population. NielsenIQ reports that Gen Z’s spending power will be approximately $12 trillion by 2030.
Functional beverages may include vitamins, antioxidants, prebiotics,
CATEGORY CLOSE-UP PACKAGED BEVERAGES
Packaged Beverage Sales Per Store, Per Month Jan 2021–Nov 2024
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.
dietary fiber and adaptogens, as well as herbal ingredients used in traditional medicines, such as turmeric, ginger, mushrooms and ginkgo. To protect their proprietary formulas, most brands don’t disclose the amount of active ingredients in their beverages.
Recently, PepsiCo bought Poppi, a maker of beverages that include apple cider vinegar, prebiotics and fruit juice, for almost $2 billion, a sure sign that these beverages aren’t just here to stay, but are here to grow.
“Probiotics, or anything that assists with gut health, are appealing right now,” said Donna Hood Crecca, principal at Technomic. “And we’re seeing consumers—especially younger consumers—interested in plant-based beverages and enhanced protein.”
In addition to health benefits, “consumers are looking for innovation and new flavors,” said Lex Shankle, executive vice president of global sales for Celsius, which produces energy drinks containing ingredients such as guarana seed extract, ginger, green tea and essential vitamins.
Fruit flavors are perennial favorites, but this year, experts predict an increased demand for tropical tastes, such as banana, pineapple, kiwi and coconut. Celsius recently introduced two new flavors: sparkling strawberry passionfruit and Retro Vibe, which blends orange and lime flavors with raspberry.
“You must have new flavors,” said Shankle. “That’s staying relevant, and it allows us to continue bringing new consumers to the category.”
BUNDLES AND BARGAINS
Packaged beverages are a great addition to meal deals and bundled promotions that encourage customers to try new products.
In Virginia, The Market by Tiger Fuel runs a thriving catering business, providing area residents with bagged lunches, trays and platters of prepared foods. Canned beverages have made a significant contribution to that growth.
“Our catering numbers have skyrocketed year over year, and a big focal point of that is our bagged lunches,” said Nick Rogers, retail merchandis-
Packaged Beverages Subcategory Data
Same-Firm Sample, Per Store, Per Month
ing manager for The Market. “Bagged lunches include our signature sandwich, chips and a canned soda. You’ll see The Market bagged lunches everywhere, from conference room tables to charity golf tournaments.”
Recently, Texas-based TXB created packaged beverage and food pairings for breakfast and lunch via digital coupons. “Customers get a dollar off the purchase of a TXB quesadilla and an RTD Starbucks coffee,” said Ben Hoffmeyer, vice president of marketing and merchandising at TXB. “We plan to expand our TXB Rewards app digital coupon to other brands, including Red Bull, Monster, Celsius, Gatorade and Bodyarmor, and tie them in with our hero foodservice items across various dayparts.”
7-Eleven adds canned beverages to various food bundles, which offers customers value-driven meal options. “For our 7Rewards and Speedy Rewards members, we have offered a $4 meal deal at Laredo Taco Company, which includes a chorizo breakfast taco and any 8.4 oz Red Bull,” said a spokesperson for
Source: NACS State of the Industry Report of 2023 Data
Bagged lunches include our signature sandwich, chips and a canned soda.”
the Texas-based chain. “Additionally, at Raise the Roost and Speedy Café, members can enjoy a $4 meal deal, which includes a croissant breakfast sandwich and any 8.4 oz Red Bull.”
Celsius has also teamed with various c-store operators to create food-and-beverage bundles. “Casey’s is famous for their pizza, and we ran a promotion featuring Celsius and slice of pizza,” Shankle said. “We also ran a food bundle with 7-Eleven featuring taquitos, and we’ve had a packaged snack bundle. We have several more food bundles scheduled this year.”
For smaller chains that want to team up with a national brand to develop similar bundle promos, “They should work back through their sales channels and talk with their account team,” Shankle advised.
CATEGORY CLOSE-UP PACKAGED BEVERAGES
PRIVATE LABEL
Sales of private-label products hit a high in 2024 at $271 billion, according to the Private Label Manufacturers Association. That was a sales increase of 3.9% compared to the previous year, and it outpaced the growth of national brands, which grew 1% year over year. Part of that growth came from private-label packaged beverages.
Make DataDriven Decisions
Get the latest c-store data with the NACS State of the Industry Report® of 2024 Data, which will be available for purchase on June 15. The report will be available in a digital version, with a print version for NACS members while supplies last. Visit www.convenience.org/SOI to purchase your copy.
Private-label products are becoming increasingly popular at Yesway and Allsup’s stores as consumers seek high-quality, cost-effective options. “We offer a variety of private-label items under our packaged beverage category, including tea, water, lemonade and milk that have all proven to be very successful,” said Alan Adato, senior manager of merchandising and procurement for Yesway, which has headquarters in Texas.
“Yesway and Allsup’s provide a great assortment of quality beverages at a value price, and we’ll continue to introduce new products in the future in both packaged beverage and other categories across the store,” he added.
Over the past few years, Iowa-based Casey’s General Stores has sold various proprietary products, including packaged beverages, bottled waters, juices, teas and lemonades.
At Casey’s, “Our marketing team continually looks for innovative ways to highlight our newest products and drive trial, and we utilize our Casey’s Rewards program to increase awareness with targeted offers for guests,” said Chris Stewart, vice president of merchandising for Casey’s. “Our merchandise teams are consistently engaging with brand partners to develop exclusive brands and flavors because we want to give our guests ‘Only at Casey’s’ offerings.”
TXB refreshes shoppers with its “TXB Hydration Sports drink line, PH+9 Alkaline Water line, TXB Packaged Tea line and packaged TXB Nitro Coffee line,” said Hoffmeyer. “We also offer TXB Fresh Brew Tea, including our latest flavor, watermelon tea. This year, we’re exploring larger package sizes to provide customers with greater value, as well as more unique tastes, like flavored and functional lemonades.”
Under its proprietary 7-Select brand, 7-Eleven stores offer shoppers a selection of water, sports drinks, juices and teas. In 2019, the company launched 7-Select Replenish, a functional energy drink and it’s first in the category. The Replenish line recently underwent a packaging redesign with the goal of reducing plastic waste and enhancing transportation efficiency.
In 2024, the company introduced sugar-free 7-Select Fusion Energy in four flavors. “Energy drinks were among our top selling items over the last year,” said the 7-Eleven spokesperson. “Fusion Energy provides a flavorful boost to elevate energy, enhance mood and support mental sharpness—all without artificial colors or high fructose corn syrup.”
Last year, the chain also added three flavors of 7-Select Rehydrate, a hydration beverage combining five electrolytes and vitamins. A new addition to the line is 7-Select Rehydrate Zero, a sugar-free version of the original.
The steady growth of private-label beverages and other merchandise is expected to continue. A 2024 survey by
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CATEGORY CLOSE-UP PACKAGED BEVERAGES
Packaged
beverages are great additions to meal deals and bundle promotions that encourage customers to try new products.
market research company Numerator found that 7% of U.S. consumers believe private-label brands provide above-average value for the price, and 51% of consumers say they are very likely to continue buying private-label products, even if the economy improves, according to the Food Industry Association.
While specific figures are not available for the total number of new beverage introductions last year, manufacturers are responding to consumer preferences, and the packaged beverage category will continue to evolve. While that makes for a dynamic marketplace, it can be challenging for c-store retailers with limited in-store space.
“Shelf space is and will always be the recurring theme when making category decisions,” said Rogers of The Market. “New entrants mean creative thinking when it comes to space and promotion.
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We merchandise packaged beverages together based on themes, both in the cooler and center store. The category is so critical to our growth that we also take our messaging and promotion outside of the store, being sure to include the category in our LTO promotions, samplings at our rewards program’s events and NIL activations.
“There’s never a dull moment in retail merchandising,” he continued. “But it’s a fantastic feeling when the puzzle pieces fit together, and a new packaged beverage brand grabs our customers’ attention.”
Pat Pape worked in the convenience store industry for more than 20 years before becoming a full-time writer. See more of her articles at patpape.wordpress.com.
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How Much Does It Cost to Build?
The average store remodel costs $707,179, according to the NACS State of the Industry Report® of 2023 Data. This is a decrease from the average cost of $765,704 in 2022.
Retailers were also slightly more likely to remodel their stores than in recent years—the interval between remodels declined from 12.6 to 11.6 years.
The percentage of stores remodeled increased from 2.3% to 2.8% in 2023, and the percentage of stores remodeled in the last five years increased from 28.5% to 30.8%— the second-largest percentage in the last five years.
Retailers looking to expand existing stores or build new stores rather than remodel current ones face different costs depending on where they choose to build. Typically, urban investments require a larger capital investment when compared to their rural counterparts.
In 2023, retailers experienced a bit of relief from skyrocketing construction costs, and merchandise equipment costs were down from 2022 for both urban and rural sites.
The latest numbers will be released with the NACS State of the Industry Report® of 2024 Data in June.
Dollar Investment Per New Store
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