NACS Magazine October 2022

SPIKED SODA Behind the boozy soft-drink trend

THIRD SHIFT How retailers make 24/7 operations work

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ONTENTS

NACS / OCTOBER 2022

On the cover: TeddyandMia/Getty Images. This page:

FEATURES

42

Today’s Customer Journey

Want to better engage customers? Master the nuances of meeting them where they’re at, and then prompt nextlevel connections.

51

Recruiting Foodservice Pros

Here are tips for surviving the current labor shortage in the kitchen.

69

Think Like a Restauranteur

Convenience veterans share the special sauce for a successful foodservice business.

76

Next-Level Convenience

Here’s why Core-Mark sees foodservice and tech as essential to the industry’s future.

80

A Boozy Blur

Beverage brands, alcohol suppliers cross category lines to quench consumer thirst for new products.

87

A Healthy Investment

Tiger Fuel’s CareTeam approach has paid dividends in both employee health, retention and recruitment.

92

CBD Opportunity

A Q&A with cbdMD Inc.

95

The Corporate Culture Evolution

How convenience retailers are rethinking their approach to management and employee expectations.

Pour Me a Drink Beverage equipment innovations are sweeping the c-store industry, powered by automation and customization.

FEATURES

108

Why Adding Ultra-Fast EV Charging Is a Smart Move

A quick rollout of ultra-fast chargers— without costly utility upgrades in low-power areas—is in reach.

113

Midterm Prime Time

In a redistricting year, Republicans look to retake the House, and Democrats fight to keep the Senate.

118

Do You Crypto?

Cryptocurrency acceptance and kiosks are growing in the c-store industry.

129

Biofuels in the Mix

A new Fuels Institute report shows how alternative fuels can and should be part of a decarbonized future.

ONTENTS

NACS / OCTOBER 2022

Always Open

These convenience retailers say operating 24/7 sets them up for success.

135

Pursuit of Healthiness

An emphasis on better-for-you food and drinks helps c-stores overcome unhealthy perceptions.

STAY CONNECTED WITH NACS

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

IT’S A FACT

ONTENTS

NACS / OCTOBER 2022

DEPARTMENTS

08 From the Editor

10 The Big Question

12 NACS News

24 Convenience Cares

26 Inside Washington

New legislation would force Visa and Mastercard to finally compete for retailers’ transactions.

32 Ideas 2 Go

Little’s Restaurant and Convenience Store pivoted to fresh foodservice more than 40 years ago.

36 Ideas 2 Go

How Golden Pantry is reinventing its traditional convenience store model.

144 Cool New Products

160 Gas Station Gourmet At Oak Grove Market, brick oven pizza, chicken salad and fire-blasted wings take center stage.

164 Category Close-Up

Consumers sought the comfort of confections during the pandemic, and the trend continues.

176 By the Numbers

The per-store, per-month gross profit for the candy category in 2021.

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

premium quality cigarettes, pipe tobacco, cigarette tubes, and roll-your-own tobacco products are all made from the finest U.S. tobacco.

EDITORIAL

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

Lisa King Managing Editor (703) 518-4281 lking@convenience.org

Sara Counihan

Contributing Editor (703) 518-4278 scounihan@convenience.org

CONTRIBUTING WRITERS

Terri Allan, Sarah Hamaker, Jim Ellis, Al Hebert, Maura Keller, Keith Reid, Renee Pas, Pat Pape

DESIGN

Imagination www.imaginepub.com

ADVERTISING

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

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

Ted Asprooth

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

PUBLISHING

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

Rose Johnson

Audience Development and Production Manager (703) 518-4218 rjohnson@convenience.org

NACS BOARD OF DIRECTORS

CHAIR: Jared Scheeler, The Hub Convenience Stores Inc.

OFFICERS: Lisa Dell’Alba, Square One Markets Inc.; Varish Goyal, Loop Neighborhood Markets; Brian Hannasch, Alimentation Couche-Tard Inc.; Chuck Maggelet, Maverik Inc.; Ken Parent, Pilot Flying J LLC; Victor Paterno, Philippine Seven Corp. dba 7-Eleven Convenience Store; Don Rhoads, The Convenience Group LLC

PAST CHAIR: Julie Jackowski, formerly Casey’s General Stores Inc.; Kevin Smartt, TXB Stores

MEMBERS: Chris Bambury, Bambury Inc.; Frederick Chaveyriat, MAPCO Express Inc.; Andrew Clyde, Murphy USA; Chris Coborn, Coborn’s Inc. Little Dukes; George Fournier, EG America LLC

NACS SUPPLIER BOARD

CHAIR: Brent Cotten, The Hershey Company

CHAIR-ELECT: Kevin Farley, GSP

VICE CHAIR: David Charles, Cash Depot; Vito Maurici, McLane Company; George Ubing, E&J Gallo Winery

PAST CHAIR: Rick Brindle, Mondelez International; Kevin Martello, Keurig Dr Pepper; Drew Mize, PDI Technologies

MEMBERS: Tony Battaglia, Juul Labs; Alicia Cleary, AnheuserBusch InBev; Matt Domingo, Reynolds; Mike Gilroy, Mars Wrigley; Josh Halpern JRS Hospitality; Danielle Holloway,Altria Group Distribution Company; Jim Hughes, Molson Coors

Terry Gallagher, Gasamat Oil/Smoker Friendly; Anne Gauthier, St. Romain Oil Company LLC; Douglas S. Haugh, Parkland USA; Raymond M. Huff, HJB Convenience Corp. dba Russell’s Convenience; Ina (Missy) Matthews, Childers Oil Co.; Charles McIlvaine, Coen Markets Inc.; Lonnie McQuirter, 36 Lyn Refuel Station; Jigar Patel, FASTIME; Elizabeth Pierce, Applegreen LTD; Glenn M. Plumby, 7-Eleven Inc.; Robert Razowsky, Rmarts LLC; Richard Wood III, Wawa Inc.

SUPPLIER BOARD REPRESENTATIVES: Brent Cotten, The Hershey Company; Kevin Farley, GSP

STAFF LIAISON: Henry Armour, NACS

GENERAL COUNSEL: Doug Kantor, NACS

Beverage Company; David Jeffco, Dirty Dough LLC; Kevin M. LeMoyne, Coca-Cola Company; Kevin Martello, Keurig Dr Pepper; Bryan Morrow, PepsiCo Inc.; Lesley D. Saitta, Impact 21; John J. Thomas, iSEE Store Innovations LLC; Sarah Vilim, Keurig Dr Pepper; Dean Zurliene, Monster Energy Company

RETAIL BOARD REPRESENTATIVES: Scott E. Hartman, Rutter’s; Steve Loehr, Kwik Trip Inc.; Chuck Maggelet, Maverik Inc.

STAFF LIAISON: Bob Hughes, NACS

SUPPLIER BOARD NOMINATING CHAIR: Brad McGuinness, PDI Technologies

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

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

Subscription requests: nacsmagazine@convenience.org

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

Contents © 2022 by the National Association of Convenience Stores. Periodicals postage paid at Alexandria VA and additional mailing offices.

1600 Duke Street, Alexandria, VA, 22314-2792

FRONT FROM THE EDITOR

All About the Journey

One hot summer morning found me in a TXB in Georgetown, Texas, a suburb of Austin, where I had the chance to chat with Anna Felz, director of brand manage ment for TXB Stores, and TXB CEO Kevin Smartt and his team about the new concept store, now a year old, and the innovation showcased there.

I watched a mom carrying a baby navigate the bright, fresh space along with another woman—Grandma?—and a preschool-age girl. Mom grabbed a hand shopping basket, and the family set out exploring the store. Mom picked up blueberries and cut-up watermelon from a grab-and-go case filled with fresh fruit, eyed the prepared graband-go foods and put a dozen eggs in her basket. She then headed to the TXB Market for breakfast—TXB has a fabulous menu of breakfast burritos and other freshly made-on-site foods. While waiting for her order, she selected a TXB private-label bottled tea from a gondola near the foodservice counter and examined one of the grab-and-go fresh salads the store stocks.

Meanwhile, Grandma spotted a display of apples and selected one. Then the little girl ran back and picked up two apples—one Red Delicious and the other Golden Delicious—and with Grandma’s help selected a bottle of chocolate milk from the cold case. By the time they made it to the counter to pay, the hand basket was full, and Mom had even add ed a jug of windshield washer fluid.

I got a kick out of watching the family’s journey through the store—as did Smartt, who had been taking in the scene from a different vantage point. I

jokingly asked him if he’d paid the fami ly to hit many of the special touchpoints I was there to see. He smiled and said, no, but he appeared tickled to see how the visit played out.

This family’s c-store trip may have started out as routine—a stop for gas and breakfast—but clearly became one of discovery and delight. Which brings us to our cover story this month: “Today’s Customer Journey,” in which we share insights from NielsenIQ, Cardlytics and Casey’s on behavioral segmentation, digital marketing strategies and advice for influencing customer journeys.

If you are reading this at the NACS Show in Las Vegas, you are on a discov ery journey of your own. I hope you’ll stop into the General Sessions this week where NACS will debut the 2022 Ideas 2 Go video series, introducing you to TXB and the five other c-stores our team visited over the past few months to help you think about the journeys your customers take to and within your stores—and how to engage them every step of the way.

Enjoy the Show!

A gondola at TXB Stores in Georgetown, Texas, is brimming with fresh salads, sandwiches, fruit, veggies, yogurt parfaits and more! Fresh fruit is a perfect on-the-go snack, says Anna Felz, director of brand management.

Kim Stewart , Editor-In-Chief

This family’s c-store trip may have started out as routine—a stop for gas and breakfast—but clearly became one of discovery and delight.

THE BIG QUESTION

As a small convenience retailer from western North Dakota, I’ve treasured my decade-long participation in NACS leadership. Not only have I had a tremendous opportunity to give back to the industry I love so much, but it’s also enabled me to take my businesses to levels that wouldn’t have been possible without NACS.

NACS has a broad reach, and as chairman over the past year I’ve been blessed with the opportunity to impact on a national scale the small operators in our industry. In this age of consolidation, the role of small operators who invest in our local communities in deeply personal ways is becoming more and more critical. At the same time, it’s also harder for us to compete against larger retailers. That’s why it’s so important that small c-store operators pay attention to what’s happening in the wider industry and become involved in NACS and likeminded groups where our voices can be amplified.

When I became NACS chairman in 2021, I set the intention to be a voice for small retailers. During the past year, I’ve hosted in North Dakota three different small retailers from all areas of the country, and we learned so much from one another. Iron sharpens iron, and I encourage independent convenience retailers to continue to share their experiences with each other into the future.

Relationships are essential in our industry. Whether we’re talking about the relationships with our customers,

our suppliers, or our community, relationships are at the heart of convenience stores. I’ve had the opportunity to forge many industry relationships in the past year, and I’m so grateful for that.

In one of my other jobs as a high school girls basketball coach, I work to help my players understand that ‘the process is the real prize.’ To me, that means that all of the little things— the wins and losses, lessons learned, adversity faced and relationships strengthened—are the things that

endure. I applied this mindset to my tenure as NACS chairman as well.

It’s been an amazing year, but more so, it’s been a remarkably positive experience serving on the NACS Board of Directors since 2011. My engagement has helped move the needle on Capitol Hill. I’ve developed friendships that will last a lifetime. My business is flourishing. And in hindsight, it’s not just the past year that has impacted me. The past decade of engaging with NACS has been the real prize.

 Jared Scheeler, CEO, The Hub Convenience Stores Inc., based in Dickinson, North Dakota, and 2021-22 NACS Chairman

What are the highlights of your year as NACS chairman?

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From flexible brand conversion and marketing, to convenient payment processing and training programs, we can provide your business with the support it needs to help you grow.

A name your customers trust, a brand you can count on –visit cenex.com/businessopportunities to learn more.

Fuels Institute Report Examines EV Infrastructure

The latest Fuels Institute Electric Vehicle Council report, “EV Charger Deployment Optimization: An Analy sis of U.S. State-level Electric Vehicle Supply Equipment Demand Forecast and Supporting Infrastructure Consid erations,” is now available. The report, which was written by S&P Global Mo bility, was designed to help government bodies and industry decision makers de termine how to best support the expan sion of the EV market with the strategic installation of charging stations.

“The market for electric vehicles (EVs) continues to grow at an accelerat ing pace, yet there remains great uncer tainty regarding how fast these vehicles will gain significant market share, how many chargers we will need, when and where we will need them and what kind of chargers will be required in different locations,” said John Eichberger, Fuels Institute executive director.

“Recognizing that billions of dollars would be invested in building out EV charging infrastructure, we commis sioned S&P Global Mobility to model

what the demand for EV chargers might look like over the next 10 years throughout the United States. This re port helps prioritize where those funds should be deployed to most effectively leverage business and taxpayer dollars, as well as to deliver the greatest value to drivers.”

Among the key findings:

• The report forecasts EV adoption nationwide will reach almost 6% of vehicles in operation by 2030. If accurate, to satisfy an optimal vehicle to charger ratio of about 10:1, the U.S. will need as many as 1.7 million charging stations, of which more than 90% could be strategically deployed Level 2 chargers.

• EV adoption rates vary by state, with 82% of all EVs in 2021 registered in just 15 states. By 2030, this concen tration is projected to remain high, with the top 15 states hosting 76% of all EVs.

• Given the diversity of population, market conditions and travel patterns, there is no one-size-fits-all solution

across the U.S. The report leverages a census track market analysis to prior itize EV charger deployment by state.

• To assist with strategic planning and analysis, the report presents three case studies detailing the benefits of market-specific insights when con sidering EV deployment plans. Cities profiled include Detroit, Dallas and Portland, Oregon.

Download the report at www.fuelsinstitute.org/Research/ Reports/EV-Charger-Deploy ment-Optimization .

UP FRONT NACS NEWS

Help Your Business Soar Using the NACS State of the Industry Report®

Today’s dynamic convenience retail landscape requires agility, a balance of efficiency and effectiveness that can free up resources and fuel new growth. Success requires knowing where you must invest in technology and how to harness data to deliver targeted, personalized offerings and customer experiences—it’s essential to winning trips and edging out the competition.

The NACS State of the Industry Report® is the industry’s best tool to navigate the maze of improving your business.

WHY IS THE NACS STATE OF THE INDUSTRY REPORT ESSENTIAL READING?

For more than 50 years, the convenience and fuel retailing industry has relied on the NACS State of the Industry Report to provide a benchmarking tool and the most comprehensive collection of data and trends. This report will help you:

• Understand the “big picture” with data and analysis on economic, market and shopper dynamics.

• Maximize effectiveness and profitabil ity with insider access to aggregate fi nancial, operational and category data from more than 27,000 convenience stores across the United States.

• Benchmark against top performers in the industry and determine key driv ers to their success.

WHO IS IT FOR, AND HOW WILL THEY BENEFIT?

Convenience and fuel retailers: Stay one step ahead with data and analysis that saves you time and money. Get a behindthe-scenes look at aggregate competitor data in critical areas, including finan cials, store operations, merchandising, foodservice, fuels and more.

Suppliers to convenience retailers: Streamline R&D resources with targeted

insights that will help you discover your next big product innovation or develop ment opportunity.

Investors, real estate developers, ap praisers, management consultants: Find out why investment partners and con sultants like you are getting behind the $650 billion convenience industry and adding convenience to their investment portfolios. Get savvy quickly and accu rately, with industry overviews, industry financial performance data and market performance comparisons.

WHAT’S INCLUDED?

Here’s what you’ll find: The Convenience Shopper—Valuable consumer insights from the NACS Con venience Voices program

Regional Performance—Comprehen sive regional data

Industry Overview—Critical findings and actionable recommendations from veteran industry analysts

Data Visualizations—Get the insights you need at-a-glance with compelling charts, graphs and tables that illustrate key trends and patterns

Category Studies—Deep dive into mainline and subcategory performance

data across a broad spectrum, including motor fuels, grocery, tobacco, foodser vice and more.

NACS/NielsenIQ TDLinx Convenience Store Census—Developed by NielsenIQ TDLinx, the premier source of retail/on-premise channel informa tion, and endorsed by NACS, the Conve nience Store Census offers universally accepted counts and classifications of businesses in the convenience and fuel retailing channel.

HOW IS IT DELIVERED?

Upon purchase of a digital license, you will receive access to the report through a DRM-secured PDF through your convenience.org login profile. Discounts are available for purchasing multiple licenses. Purchase your copy of the State of the Industry Report at www.conve nience.org or contact Chris Rapanick at crapanick@convenience.org

New this year: NACS Research has imported all the data from the past 10 years of the NACS State of the Industry Report into a searchable database. The NACS State of the Industry Data Archive is now available online via sub scription to NACS members only.

Learn How to Leverage Loyalty Programs

Convenience loyalty pro grams offer shoppers rewards, point accruals for discounts and promotions, yet these benefits are largely considered a bare minimum in consumers’ eyes. Benefits associated with loyalty programs are pivotal to elevating the offer and building distinction from other retailer loyalty efforts. NACS Research, in partnership with Bounteous, has published the white paper “Driving En gagement from Convenience Retail Loyalty Programs” sharing insight into how retailers can increase engagement with loyalty programs and build goodwill beyond rewards and discounts.

By understanding what shoppers want from a loyalty program, convenience retailers have an op portunity to play an active role in molding their program to increase engagement with shoppers. This research explores:

• Convenience loyalty program membership and competition

• How loyalty program members engage

• Shopper perspective on personalization

• Loyalty program access and communication with members NACS members can access the white paper at www.con venience.org/research

New Members

NACS welcomes the following companies that joined the association in July 2022. NACS membership is company-wide, so we encourage employees of member companies to create a username by visiting www.convenience.org/Create-Login All members receive access to the NACS Online Membership directory, latest industry news, information and resources. For more information about NACS membership, call 703-684-3600.

NEW HUNTER CLUB MEMBER

Clear Demand Inc. Scottsdale, AZ www.clear-demand.com

NEW GLOBAL SUPPLIER COUNCIL MEMBER

Techniche Carlsbad, CA www.technichegroup.com

NEW SUPPLIER MEMBERS

Albie’s Foods

Niagara Falls, NY www.pizzalogs.com

American Fuel & Petrochemical Manufacturers

Washington, DC www.afpm.org

ArrowStream Chicago, IL www.arrowstream.com

Congo Brands Louisville, KY www.congobrands.com

DeeSign

West Chester, OH www.deesign.com

E-Alternative Solutions Jacksonville, FL www.ealternativesolutions.com

G&J Marketing Alpharetta, GA www.gandj.com

Milo’s Tea Company Bessemer, AL www.drinkmilos.com

Moss Adams LLP Seattle, WA www.mossadams.com/about/locations/seattle

Oryxe

New York, NY www.oryxe.com

Radar Labs Inc. New York, NY www.radar.com

Rose Paving Co. Bridgeview, IL www.rosepaving.com

S. Abraham & Sons Inc. Grand Rapids, MI www.sasinc.com

The Naked Collective Ltd. www.drinkmood.com

Washie Pocatello, ID www.washietoiletseat.com

POWERING

Headquarter Sales

Retail Services

and

Business Process Outsourcing

Member News

RETAILERS

Liz Howard has joined Parker’s Convenience Stores as its vice president of op erations. Howard first came to the company as a cashier in 2004 working at the Hinesville, Georgia, location. In her new role, Howard will oversee operations of 11 Park er’s Convenience Stores in Glynn, Wayne, Liberty, McIntosh and Ap pling, Georgia, counties.

Ken Parent—a convenience and fuel retail industry veteran, NACS executive committee and board member, and CSP Retail Leader of

the Year 2022— has joined the board of directors of Stuzo, provider of unified loyalty, digital payments and cross-channel customer experi ence products.

Ameet Shetty, chief data officer for Pilot Company, was named to the DataIQ 100 2022 list as one of the most influential practitioners of data and analyt ics. Inclusion on the list reflects outstanding leadership in the field.

The 100 honorees were selected based on three factors: leadership, engagement with the broader data and analytics industry and support of DataIQ’s mission of advancing the profession of data and analytics.

Energy North Group an nounced Jeff Black as chief executive officer of Energy North and its family of companies. Black provides strate gic leadership to the organization. Black joined as a convenience store associate at age 16 and ad vanced to several sales and lead ership roles within Energy North.

Liz Howard

Ameet Shetty

Jeff Black

Ken Parent

IT’S ALL ABOUT THE

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UP FRONT NACS NEWS

Kevin Riley now serves as pres ident of opera tions and finance at Energy North Group. In his role, Riley oversees heating oper ations, finance, transportation, wholesale and retail. Riley previ ously served as the chief executive officer of Haffner’s.

Energy North Group announced Matt LaLone as president of administration and general counsel. LaLone is responsible for leading the organization’s HR, IT, legal and safety departments.

SUPPLIERS

Unified Brands announced Denny Berryhill as vice president of sales for the company’s central United States territory.

Berryhill will be responsible for driving sales as well as managing independent manufacturer repre sentatives in the central territory. Berryhill has served the foodser vice industry for over 13 years, mostly recently as design manager with Unified Brands.

Rich Products has named Mindy Rich as chair of the global, fami ly-owned corpo rate parent, Rich Holdings Inc., making her the third such chair in the company’s 77-year history. Rich, who most recently served as vice chair, has held a number of lead ership roles in her 37-year career with Rich’s.

Florida-based company. Packrall joined USG in 2014 and was vice president of operations since 2018.

KUDOS

Preston Packrall

Preston Packrall now serves as president of Universal Screen Graphics (USG). Packrall will lead the management of all facets of the Tampa,

Calendar of Events

2022

NOVEMBER

NACS Innovation Leadership Program at MIT

November 06–11 | MIT Sloan School of Management | Cambridge, MA

NACS Women’s Leadership Program at Yale

NACS Convenience Summit Asia February 28–March 02

Waldorf Astoria Bangkok

Bangkok, Thailand

MARCH

NACS Day on the Hill March 07–08

Washington, D.C.

The Spinx Company, the Green ville S.C.-based fuel and conve nience retail company with more than 80 locations, 45 car washes and 1,500 associates statewide, was recently named as the No. 1 Best Place to Work in South Carolina. The ranked companies were recognized at a reception in August at the Columbia Metro politan Convention Center. “Being recognized as the No. 1 Best Place to Work in South Carolina is one of the biggest honors we have been given over the past 50 years,” said Stewart Spinks, founder and chairman of Spinx. “At Spinx, we consider ourselves one big family and our people are the most important part of our company. Without our committed staff, we would not be where we are today. As leaders, making our teammates lives better is truly the only way we can make our guests’ lives easier and after all, at Spinx, that’s why we exist.”

MAY NACS Convenience Summit Europe May 30-June 01 | Intercontinental Dublin | Dublin, Ireland

JULY

November 13–18

Yale School of Management | New Haven, CT

2023

FEBRUARY

NACS Leadership Forum February 08–10 | Eden Roc | Miami Beach, FL

APRIL

NACS State of the Industry Summit April 18-20

Hyatt Regency DFW International Airport

Dallas, Texas

NACS Leadership for Success April 30-May 05 | Virginia Crossings Hotel & Conference Center | Glen Allen (Richmond), VA

NACS Marketing Leadership Program at Kellogg July 23-28 | Kellogg School of Management | Northwestern University | Evanston, Illinois

OCTOBER

NACS SHOW October 03-06 | Georgia World Congress Center | Atlanta, Georgia

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

Denny Berryhill

Matt LaLone

Kevin Riley

Mindy Rich

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Say

Take a Stand Against Human Trafficking

Stopping human trafficking is a serious responsibility. With close ties to the community, conve nience stores are positioned to share important messages that employees and customers can use to recognize and help victims of human trafficking.

“As a convenience store owner, I care about the community and our staff cares about the community. We can spot when something isn’t right, and sometimes that is human trafficking,” said Kent Couch, CEO of the Stop and Go conve nience store in Bend, Oregon.

Couch became involved with In Our Backyard, a national nonprofit known for its anti-trafficking work that operates the Convenience Stores Against Traf ficking (CSAT) program. “We wanted to make a difference in our community and keep it safe,” he said.

The restroom is often the only safe place where a victim is alone and able to call or text for help. CSAT’s “Freedom Stickers” are designed to be posted in restroom stalls and contain the National Human Trafficking Hotline number, 888-373-7888, or text INFO or HELP to BeFree (233733).

According to CSAT, Freedom Stickers raise awareness to 4 million people ev

ery day. More than 30,000 convenience stores and 17 state-based convenience store associations and 184 conve nience store companies have partnered with CSAT.

Human trafficking survivor Sara Perkins shares in a joint CSAT and Ready Training Online training video that she frequented convenience stores multiple times a day. “As a victim, I know that if I had gone into any bathroom and saw an In Our Backyard sticker it would’ve been an open door for me to get the help I needed,” she said.

More than 148,000 U.S. convenience stores conduct 165 million transactions a day in every community, and most of these businesses are open 24/7. Longer hours of operation, public restrooms and ease of access increase the likelihood that convenience stores can help those in peril, such as victims of human traffick ing or youth in need.

January is human trafficking aware ness month. To learn how you can get involved in the fight to stop human traf ficking and spot the signs of someone in need of help, visit www.convenience. org/humantrafficking for resources and information from NACS and antihuman trafficking groups.

SOCIAL SHARES

NACS encourages retailers to share their giving-back news on social media using #ConvenienceCares

In The Community

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

Learn more at www.conveniencecares.org

SHELL GIVING PUMP

FUELS 500+ LOCAL CHARITIES

1 From August 1 through October 31, Shell’s The Giving Pump will support 527 local charities across the U.S. Now in its second year, the pumps are located at 6,500 Shell conve nience stores in 48 states, and a portion of purchases made by consumers who use the desig nated pump will support nonprofits such as children’s hospitals, school and litera cy programs.

“We are thrilled to bring back The Giving Pump to make an even bigger impact this year and give customers the chance to support local charities across the country,” said Shannon Bry an, manager of brand and com munications for Shell Retail US. “We encourage our customers to pay it forward at the pump and choose The Giving Pump on their next fill up or road trip pit stop to help us fuel the fu ture of local communities.”

Convenience stores across the U.S. are involved in the fight against human trafficking via the Convenience Stores Against Trafficking program.

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Improve rotation and reduce shrinkage

WonderBar® Trays

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

temperature & extend shelf life.

n Durable cooler-capable steel construction ensures long life.

n Trays lift out for rear restocking & proper rotation.

n Versatile spring tension is gentle on delicate produce.

Cooler-Capable EWT

Expandable Wire Tray for refrigerated retail

n Quick drop-on, one-piece installation.

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

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

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

n Auto feed any product.

n Clear or Imprinted Front Product Stops.

n Vends oversize items like pizza.

Display & Scan Hooks

Hooks for every purpose

Right Angle Label Holder Hook

n A simple, inexpensive design.

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

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

Slatwall Hooks

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

Pouch Hook™ Merchandising

Pouch Hook™ Merchandising

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

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

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

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

Protect Your Merchandise

Anti-theft security hooks

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

Anti-Sweep™ Hooks

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

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

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

n Molded-in openings improve refrigeration air circulation.

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

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

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

Clear Scan® Label Holders

The complete shelf edge labeling system

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

n Unsurpassed range of sizes, styles & lengths.

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

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

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

In 2021, Shell wholesalers and retailers donated more than $1.5 million, supporting 400-plus chil dren’s charities through The Giving Pump. In the U.S., the designated giving pumps were used 7.2 million times and pumped 72 million gal lons of gasoline.

VOLTA OIL TOPS $1 MILLION TO HELP CURE ALZHEIMER’S 2 Family-owned Volta Oil in Plymouth, Massachusetts, raised more than $170,000 during its annual campaign to benefit the Alzheimer’s Association, bringing the total amount raised in its 11-year history to $1.1 million. Volta’s Purple Pump Up is the largest convenience store cause-marketing campaign in the U.S. to bolster awareness and raise funds toward the care, support and research efforts of the Alzheimer’s Association.

“I applaud our store personnel and the Purple Pump Up team members for another successful campaign,” said Jim Garrett, chair man of Volta Oil Company, adding, “I am also grateful to our dedicat ed sponsors who never fail to show their support for our communities through their generous donations.”

Eighteen Rapid Refill Conve nience and Garrett’s Family Market locations throughout Massachu setts, New Hampshire and Rhode Island participated in the cam paign from May 27-July 18, allow ing customers the option to give donations both inside stores and at the gas pumps.

“It is incredible to see Purple Pump Up reach the $1 million milestone, a clear testament to Volta Oil’s commitment, and the generosity of its customers, to make a difference in the fight to end Alzheimer’s,” said Jim Wessler, CEO of the Alzheimer’s Association Massachusetts/New Hampshire Chapter. “We are so grateful for this partnership which continues to have a direct impact supporting vital research and essential programs and ser vices in our local communities.”

LOVE’S SUPPORTS

TRUCKERS

3 Love’s Travel Stops showed its support of professional truck drivers by donating $100,000 to the St. Christopher Truckers Development and Relief Fund. This is the third year the compa ny has given to the organization that helps professional truck drivers and their families during trying times.

“Professional truck drivers are essential to the country’s suc cess, and Love’s can’t think of a better way to say ‘thank you’ than supporting them during difficult times,’’ said Jenny Love Meyer, executive vice presi dent and chief culture officer of Love’s. “St. Christopher is a great organization that helps drivers every day, and we’re glad to continue to support the organization.”

ALTA CONVENIENCE RAISES $36,523 FOR WINGS FOR LIFE

4 Alta Convenience’s 110 stores throughout Colorado, Kansas, Nebraska, New Mexico and Wyoming raised $36,523 for Wings for Life, a nonprofit created in 2003 by two-time motocross world champion Heinz Kinigadner and the founder of Red Bull, Dietrich Mateschitz, to raise money for spinal cord research.

FERRERO USA SUPPORTS CMNH

5 Ferrero USA donated $25,000 to benefit Children’s Miracle Network Hospitals as part of Ferrero’s 31 Days of Halloween Countdown Calendar fundraiser to help families celebrate Halloween while raising money for Children’s Miracle Network Hospitals. Consumers who visited Ferrero Halloween.com through Sep tember 15 and made a $31 donation to Children’s Miracle Network received a limitededition countdown calendar featuring Ferrero’s confections and cookies. Ferrero also donated treats to select local children’s hospitals located near the company’s offices and plants throughout North America to bring Halloween fun to young patients and their caregivers.

Competing for Swipes

New legislation would force Visa and Mastercard to finally compete for retailers’ transactions.

BY ANNA READY BLOM

Key Figures

$900

What U.S. consumers pay in swipe fees on average each year

Groundbreaking legislation intro duced in the Senate would bring relief to excessive credit card swipe fees. The Credit Card Competi tion Act (S. 4674) was introduced by Sen ators Richard Durbin (D-IL) and Roger Marshall (R-KS). The legislation gives retailers the ability to choose which net work to route a credit card transaction, creating competition that will have real benefits for retailers and their custom ers. Here is what the legislation could mean for convenience stores.

WHAT IS TRANSACTION ROUTING?

How much the Credit Card Competition Act could save U.S retailers each year

Whenever customers pay with their credit card, information is exchanged over a network (such as Visa or Master card) that allows the transaction to be settled. A helpful way to think of this process is that it is in many ways anal ogous to the way a phone call is routed through a carrier. A business chooses which phone carrier to use, whether it be AT&T, Verizon or another provid er, based on a number of factors from reliability to cost. Having that choice is crucial to ensuring competition. But to day, retailers have no choice of network when it comes to credit card transac tions. They must use the only one that is enabled on that particular credit card.

WHY IS ROUTING COMPETITION IMPORTANT?

There are nearly a dozen independent networks that are equipped to route transactions, but Visa and Mastercard

have prevented them from competing in the credit space. We know that these smaller networks are typically cheaper, have less fraud and run just as fast as the dominant global players. However, in their operating rules, Visa and Mas tercard prohibit the banks that issue their credit cards from putting a second network on those cards. Nearly 10 years ago, Congress passed the Durbin Amendment, which required the banks to have at least two networks on debit cards, and businesses and consumers have benefited.

WHAT WILL THE CREDIT CARD COMPETITION ACT DO?

The legislation requires that the largest banks issuing credit cards must enable a second, smaller network on a credit card. They can no longer just put Visa on their card or just Mastercard. That will

make all the networks on cards compete to be the retailer’s preferred choice when routing transactions, and their pricing will reflect that new competi tive landscape.

COULD VISA AND MASTERCARD BE THE TWO NETWORKS ON THE CARD?

No. The legislation ensures that when selecting the two networks on a card, banks could not choose both Visa and Mastercard and would have to choose at least one smaller network. Visa and Mastercard centrally set the swipe fees of their issuing banks, and instead of competing with each other and nego tiating those fees with merchants, the banks charge the same fees. Retailers in the U.S. paid $138 billion in swipe fees in 2021, and the convenience store channel paid $13 billion.

How You Can Support the Credit Card Competition Act

1. Call your senators and urge them to cosponsor the Credit Card Competition Act.

2. Scan the QR code to send a message to your members of Congress, asking them to support the bill.

3. Tag your members of Congress on Twitter or Facebook, and share how much your swipe fees have gone up and how they can help solve the problem.

4. Recruit a friend to do the same.

The only way this bill will get past the finish line is if our industry comes together to use our collective voice in Washington. With 148,000 locations across the country, we will be hard to ignore.

If you have any questions about other ways you can get involved in this fight or want specific talking points, contact Mar garet Hardin, NACS grass roots manager, at mhardin@ convenience.org

WILL THIS SAVE RETAILERS AND THEIR CUSTOMERS MONEY?

It’s estimated that the legislation will save American businesses $11 billion annually. For the convenience chan nel specifically, that means $1 billion, or $7,000 a store, each year. Just as swipe fees inflate the prices custom ers pay, savings from this legislation will benefit customers given the retail industry’s highly competitive nature.

WHAT WOULD BE OTHER BENEFITS FROM THE LEGISLATION?

A competitive market drives innova tion, and other savings will be seen from new technologies that don’t exist in the Visa/Mastercard monop olized market today. For instance, when dual routing on debit cards was implemented, the smaller debit net works developed PIN-less capabilities to compete for debit transactions that weren’t associated with a PIN, and they started offering security features like end-to-end encryption of payments data.

WHAT MAKES THIS ISSUE ES PECIALLY RELEVANT TODAY?

Swipe fees are out of control. In flation, an uptick in card usage and increased fees have combined to cre ate the perfect storm. For merchants across the nation, card fees were up

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

Convenience stores should support and in vest in their local com munity organizations, such as Little League, scouting organizations and other fundraising events that benefit their communities.

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

NACS has my back when it comes to federal leg islation and regulations. The NACS government relations team is en gaged and knowledge able, which is a primary benefit for members and state associations. NACS grassroots efforts are ef fective and useful in let ting our federal elected officials know what our members are thinking about important issues.

ONE VOICE This month, NACS talks to Peter D. Krueger, state executive, Nevada Petroleum Marketers & Convenience Store Association

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

Partisanship at the feder al, state and local levels keeps me up at night. We have lost the art of compromise and honest discussion of the issues.

What c-store product could you not live without?

Fuel, coffee and donuts!

Your voice can save your business.

Scan the QR code to tell us what’s keeping you up at night and where you’re willing to lend your voice to NACS advocacy efforts.

It’s estimated that the legislation will save American businesses $11 billion annually.

The credit card industry may have more resources, but the convenience industry has always outpaced them in passionate people.

25% in 2021. Through the first half of 2022, convenience industry swipe fees were up 38%. That can’t continue. And, with the inflationary environment, members of Congress are looking for op portunities to bring relief to Americans.

Swipe fees, of course, serve as in flation multipliers because they are a percentage of the transaction amount. The industry’s pretax profit in 2021 was 2.47%, and the average credit card fee is 2.25%. That shows retailers have no choice but to pass the cost of swipe fees onto their customers. The result is that American households paid $900 a year in swipe fees in 2021, and we know that number will be higher this year given inflation. This legislation is one way to bring a measure of relief to Americans.

WHAT IS THE PATH FORWARD FOR THE LEGISLATION?

NACS is aggressively advocating for its passage and is meeting with every mem ber of Congress to ask them to support the legislation. We are working with the Merchants Payments Coalition, a broad coalition NACS helped found that spans the retail sector. Our hope is that we can coalesce enough support for the legis lation that the Senate considers it for a vote this fall. However, the credit card industry is fighting the legislation with all of its might, spending millions on paid advertising to blanket the airwaves with mistruths about the bill.

The only way the convenience indus try will succeed in passing the Credit Card Competition Act is if every c-store retailer contacts their members of Congress. The credit card industry may have more resources, but the conve nience industry has always outpaced them in passionate people. Use your voice today, and ask Congress to support credit card competition.

Anna Ready Blom is NACS director of government relations. She can be reached at ablom@convenience.org.

NACSPAC DONORS

NACSPAC was created in 1979 by NACS as the entity through which the associa tion can legally contribute funds to political candidates supportive of our industry’s issues. For more informa tion about NACSPAC and how political action com mittees (PACs) work, go to www.convenience.org/ nacspac . NACSPAC donors who made contributions August 1-31, 2022, are:

Tod Butler Matrix Capital Markets Group Inc.

Angela Gearhart Nittany Oil Company

Jane Hartgrove Tres Picosos LLC

Nicole Masullo Nittany Oil Company

Vito Maurici McLane Company Inc.

Gilbert D. Moyle Moyle Petroleum Company

John Peyton Gate Petroleum Company

Darren M. Rebelez

Casey’s General Stores Inc.

Enrique Sales Abierto Networks LLC

Keith Solsvig

Buddy’s Kitchen Inc.

Van Tarver PDI Sustainability Solutions

Lynn Wallis Wallis Companies

Ena Williams

Casey’s General Stores Inc.

Ahead of the Curve

Name

BY SARAH HAMAKER

Little’s Restaurant and Convenience Store in Marion, Virginia, doesn’t have the ap pearance of being a trendsetter. The business, housed in a 100-year-old brick building, has served the local community as a general store since it was built. Its current owners recognized early on the value of offering fresh foodservice to its clientele.

“My mom and dad put in a hot dog machine shortly after purchasing the store in 1972,” said Mike Little, who worked in the store for 43 years before semi-retiring in January. “We sold 300 to 400 hot dogs a day because of the store’s proximity to several factories in the area.”

Little’s Restaurant and Convenience Store pivoted to fresh foodservice more than 40 years ago.

IDEAS 2 GO

THE RESTAURANT SIDE

The journey from the hot dog roller grill to a full-service kitchen took Little’s Restaurant and Convenience Store only a few short years. “The location has always been a general store,” Little said. “Back in the early days, staff made gro cery deliveries and got ice off the train to keep meat and other perishables cold.”

When his parents bought the store, groceries were the biggest seller, along with fuel. “It was basically a small grocery store with gas pumps,” he said. Even back in the mid-1970s, competi tion from Walmart, dollar stores and other retailers horned in on Little’s grocery business.

“The competition for groceries effec tively killed that part of our business, so we decided serving food would be the way to keep customers coming in,” Little said. After seeing the popularity of the hot dogs, they started the restaurant a few years later. “I made the first menu when I started working there full time in 1977,” he said.

The most popular menu item is the Big Daddy Burger—a double cheese burger with everything on it. “We’ve had people from California, Washington and elsewhere say it’s the best burger they’ve ever had,” Little said. “It’s con sistently been our top seller.”

Other menu items include hot dogs, cheesesteaks, chicken sandwiches, fries and tater tots. The restaurant also has daily specials such as chopped steak, spaghetti and meatloaf. Guests can en joy a meal in the 24-seat indoor dining area or outdoors on picnic or four-top tables, as well as order it to-go. “During the pandemic shutdown, our customers still came by regularly for takeout, so we

didn’t lose as much business as we might have,” he said.

THE CONVENIENCE SIDE

While the restaurant is flourishing, the convenience side of the store hasn’t fared as well. About 25 years ago, the Littles decided to remove their gas pumps because of new government regulations concerning underground storage tanks.

“We would have had to pull the existing tanks and install new ones to the tune of $150,000—money we didn’t have and weren’t likely to recoup, given the low gas margins and volume,” Little said. So, they tore out the pumps and had the underground tanks removed, a move Little has a few regrets about. “If I were a younger man, I would probably consider adding fuel pumps back, given the amount of traffic on Highway 11, which goes right by our store,” he said. “But even then, I’m not sure the margins on fuel would make it worth the effort.”

Instead, he focuses on stocking essen tial groceries, like bread and milk, and snacks, like chips and sweets. About five years ago, he ditched tobacco because the number of tobacco outlets popping up nearby siphoned off his cigarette business. Then a year ago, he stopped carrying alcohol because the profit margins weren’t enough to keep it on the shelves. “I really thought not having cig arettes would hurt my bottom line, but the truth of the matter is, we’re more of a fast-food place than a convenience store, and not carrying tobacco or alcohol hasn’t really impacted our profits.”

While Little officially retired in January after leasing the restaurant and store to Kevin Shaffer, he still comes in

BRIGHT IDEAS

For Mike Little, the best advice he has for other retailers is to “be nice and treat everyone fair. If you’re an honest person putting out a product you’d eat yourself, you’ll do OK.” He said that attitude has taken him through more than four decades of working in the industry and helped to cre ate a restaurant-store with loyal customers.

“I learned early on to run a friendly atmosphere be cause that makes custom ers feel at home,” he said.

“Smile a lot and treat them like you like to be treated.”

a few days a week to help out. “I don’t work as much as I used to, but I’m still part of Little’s,” he said. “It’s always been my hope that our customers are happy and enjoying good food—and that they keep coming back for more.”

Sarah Hamaker is a freelance writer, NACS Magazine contributor and 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 2021 and earlier, go to www.convenience.org/Ideas2Go.

BY JEFF LENARD

Golden Pantry Food Stores are a mainstay in the Athens and Northeast Georgia area. The family-owned company’s 32 convenience and deli stores are go-to destinations for traditional convenience items and are well-known by loyal customers for made-from-scratch biscuits and a robust breakfast menu.

The 57-year-old company opened its first store without fuel in 2019 in downtown Athens, Georgia, called the Golden Pantry Market—a stone’s throw from the Uni versity of Georgia campus.

How a midsize Georgia retailer is reinventing its traditional convenience store model.

IDEAS 2 GO

The Market features a retail store and inviting restaurant space for its diverse customer base. Situated in a student apartment complex, the Mar ket serves as a pantry and kitchen away from home for its customers.

Wooden endcaps and woven baskets throughout the store accent traditional shelving units and offer a unique op portunity to display local merchandise. Smaller gondolas and a large, curved checkout area create a new experience that encourages customers to shop the entire store. Indoor and outdoor seat ing makes the store a destination for students and professionals in the area to sit down and stay awhile.

“Local businesses endure when they adapt,” said Katie Morris, director of marketing for Golden Pantry Food Stores. “Our goal is to evoke comfort and curiosity when customers enter our stores. Even though I’m part of the team that oversees changes in these stores, I still feel like I’m on a treasure hunt every time I go in the Market— and that’s the experience we want for our customers.”

Like many convenience stores, break fast and lunch tend to be the busiest dayparts for food, while dinnertime foot traffic is slower. Golden Pantry’s solution is to make its state-of-the-art kitchen available to local chefs or food truck entrepreneurs at no charge. The company views the space as a place to foster innovation and community with in the store. The rotating pop-up “Sup per Clubs” are helping dinner sales and reinforce local ties to the community.

OUT WITH THE OLD

Another Golden Pantry store in Bishop, Georgia, is the retailer’s first raze and rebuild of a traditional store. The new design features a sleek new exterior, new deli items and a “biscuit theater” where guests can watch biscuits being made each morning.

Recognizing the importance of being a trusted neighborhood store, Gold en Pantry designed the new c-store concept to attract new customers but still feel comfortable to longtime, loyal patrons.

Morris said the new concept lends itself to creative test-and-learns within the store. The new floor plan, openair cooler and built-in shelving allow local businesses and creators to have dedicated shelf space that leads to browsing and a stronger connection to the community.

“Customers will continue to notice nods to our company heritage through out our stores. The door handles in our new stores are bowties reminiscent of our vintage logo and marquee signs,” said Morris.

Golden Pantry will continue to roll out its new concepts, introducing at least three more stores in the next two years.

And while they are still available, the stores will sell Golden Pantry Nation al Champs T-shirts that say, “33-18.” Those in the Athens area know that references a college football team that beat the University of Alabama on January 10, 2022.

Jeff Lenard is the NACS vice president of strategic industry initiatives and can be reached at jlenard@ convenience.org

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

To see videos of the c-stores we profiled in 2021 and earlier, go to www.convenience.org/Ideas2Go

The door handles in our new stores are bowties reminiscent of our vintage logo and marquee signs.”

Want to better engage customers?

BY RENEE PAS

his article is a think piece, meaning it’s intended to provoke thought and contemplate customers in a different way. It’s impossible not to speculate when pondering shopper behavior. Data tell us the “what” but not always the “why.” With the overwhelming amount of consumer data that exist today, the question becomes how to absorb it and channel the data into meaningful, usable bits of information.

Sometimes a story or research triggers you to think and connect information in a new way. Indeed, that is precisely what prompted this story: another story. An article in Harvard Business Review, “What You’re Getting Wrong About Customer Journeys,” engrossed Lori Buss Stillman, NACS vice president of research. The content immediately struck a chord with her affinity for c-store analytics, and the connections to convenience retailing kept coming as she contin ued through the article’s framework of a customer journey matrix, which outlined different experiences marketers can create to target consumers (see sidebar: The Story That Prompted a Story).

“For me, that article just connected on many different levels and brought new thinking on customers and journey maps and how technology has allowed all of it to be more personalized and directed today,” said Stillman.

Master the nuances of meeting them where they’re at, and then prompt next-level connections.

This is not a story designed to give you all the answers but instead fill you in on some new ideas that others are talking about—and executing—to draw you into the conversation so you can in turn engage your team in this conversation. For some readers, this informa tion will prove a box they can already check. For others, it may seem a bit aspirational. Either way, time spent re-examining the cus tomer journey is time well spent.

BEHAVIORAL SEGMENTATION

Understanding the customer journey directly connects to understanding the customer, of course. The process of sorting customers into behavioral segmentation has been ramping up to something convenience retailers—all segment retailers, actually—are doing more frequently, according to Jason Zelinski, client director, convenience and growth accounts, NielsenIQ. “Retailers used to plan out and assess behavioral segmentation maybe every three or four years, but now I’m finding many retailers are doing this every year. The behav ioral triggers of the different segments are changing faster now, so waiting two years is just too long. Those customers change faster today, and their triggers to buy from you are different.”

The idea of behavioral segmentation is to break consumers down in different lifestyle groups. For example, empty nesters and impulse shoppers have different shopping patterns, Zelinski notes. “Those customers are vastly different, and their triggers to buy from you are different. Once you determine how much of your business is made up of the segments you define, then you can determine which segments are worth defending and which you may not care that much about.”

Simply put, Zelinski believes audience segmentation drives better business decisions, particularly when it comes to marketing and making sure the messaging is on target, in addition to having the right product on

the shelves. Naturally, the pandemic had an impact on this. Shopping patterns changed throughout that period. For example, Ze linski points to a “newly cautious” customer segment that evolved from consumers who had money but were uneasy about spending it. Now NielsenIQ identifies “rebounders” as those who are back on their feet with spend ing habits.

“The whole way people are shopping has changed every single year for the past three years,” Zelinski notes.

As much as the way consumer shopping patterns are changing, so too is the way c-store retailers are approaching the role they play in guiding the customer journey. In similar fashion to the “first comes love, then comes marriage” lyrics, first comes gaining a grasp of the different customer segments. “Creat ing a successful digital marketing strategy should start with a strong understanding of the different customer segments visiting a particular c-store,” said Mike Novosel, head of industry, gas, grocery and convenience at Cardlytics. That means looking at the accumu lation of data, which often comes via rewards programs. “One of the best starting points is a loyalty program,” he said. “By starting there, brands can get an immediate understanding of who visits each store and their behavior, which lays the foundation for what will over time become an intentional, individualized marketing strategy.”

Once a strategy aligned primarily with only the most tech-sophisticated and large c-store retailers, today digital marketing’s value is viewed by even midsize operators as a key way to help shape the customer journey, according to Novosel. “Last year, I noticed an increase in digital marketing strategy among more regional c-store chains,” he said. “They are now seeing the value of having a loyalty program and looking at being more intentional in who they market to through that approach. That’s where digital tools come into play as incremental sales drivers and targeted marketing.”

It’s about establishing a more conscious, focused marketing target, Novosel said. He points to Casey’s as a leader in that arena.

The retailer’s scale—more than 2,000 stores— grants it the critical mass to be able to react to the data accumulated from customers. Even then, Novosel said, it only yields a certain level of loyalty penetration. The challenge becomes remaining laser-focused on how to reward

to

customers that spend every day, “which can be a challenge for even the best of the best when using digital marketing,” he said. “And it is an even greater challenge for chains wishing to move the bar today due to a talent gap in resources. You really need someone long term on your team who specializes in digital mar keting.”

CASEY’S JOURNEY

Unquestionably, Casey’s has put the resources behind understanding how to advance the customer journey with a digital-first philos ophy led by Art Sebastian, the Iowa-based retailer’s vice president of digital experiences. “We’ve made great progress in the last four years,” he said, which includes the launch of the retailer’s loyalty program in 2020, re launching its website, adding curbside pickup and delivery options and, most recently, test ing kiosks as an ordering solution in stores.

With more than five million rewards participants (Casey’s reported 5.5 million members in its fiscal first-quarter earnings report September 7), the program has quickly established itself with customers. While the five-million mark brings with it an immense amount of data, the rewards piece does not actually serve as the primary entry point for Casey’s, says Sebastian. Instead, the first step begins with building awareness of Casey’s in the market. Joining the rewards program reflects the endgame (or better yet, prompts the next level of marketing). “Ultimately, we want to recruit customers into the guest fun nel,” Sebastian explained, which begins by looking at the base of potential customers within a five-mile range of a store. After building awareness, the next filter is to draw those customers into the store.

For Casey’s, pizza frequently prompts the first entry, specifically via digital order ing. “Ordering a pizza through our website is a common entry point,” Sebastian said. “Pizza is a unique part of our business and what we are most known for. Other ways people funnel in are by subscribing to our

marketing channels or downloading the mo bile app. Then that leads to them joining the rewards program.”

The approach Casey’s takes follows much of what has become a traditional sales funnel model, which guides prospects through the funnel (widest at the top with awareness and narrower toward the bottom as the potential customer converts to an active customer). It’s a visual metaphor often referenced in sales and marketing teachings, and yet another way to think about the customer journey.

While a large chunk of Casey’s digital ex periences team works on acquiring a broader base of rewards members, another part of the team focuses on engagement, Sebastian says. “When looking at engagement, we have a very high active rate. Our engagement metrics are actually better than some large QSR brands.” When asked what he considers more im portant, acquisition or engagement, he leans toward engagement. “Both are important, but we want to engage more with those that joined the rewards program,” he said. “We have several behavioral segments available to us and leverage that to create the right audience and guide behavior. We look at the customer journey and how we can influence that journey once customers have joined. We want customers to transact business with us as a routine.”

Even operators without the scale and resources the likes of Casey’s can work toward a better mastery of the customer journey. Sebastian points to transaction-level data as one opportunity, as well as considering white-label options as an entry point into dig ital engagement. “Smaller operators can even look at their base of transactions and consider how to market to a select group,” he added. “For instance, the data may show a subset of customers use the store for a morning coffee run or as a tobacco convenience run. From there, it’s about how to communicate to cus tomers based on those trip types,” he said. “I do believe, however, that any size operator can benefit from making digital a priority.”

For Casey’s the next frontier lies in per sonalizing experiences. “There is so much opportunity with personalization,” Sebastian said. “We also see an opportunity to digitize the team member experience. There is a whole other world we can still tap when it comes to digitizing experience. Digital is more than e-commerce and loyalty programs.”

We look at the customer journey and how we can influence that journey once customers have joined.”

WHEN THE JOURNEY FLATLINES

The most common trend line Novosel finds in his work with large chains, including c-store, grocery and big-box segments, is that after the initial launch of a focused digital market ing effort to guide the customer journey, the program starts to stagnate. “As they come to the tail end of driving more sales from their most loyal consumers,” he said, “the next move is to focus on new ways to engage shoppers for more influence over that journey.”

One example of a large chain that no longer customizes the journey is Bed Bath & Beyond, Novosel says. “That’s not a selective program; the 20% off coupon is given universally.”

Retailers of all levels can take a hard look at how they engage with consumers today and determine where there are nonintrusive opportunities to learn about them, Novosel advises. Think breadth and depth, he said, lati tude and longitude. “How you talk to custom ers depends on where they are on the spec trum,” he said. “Understand the need state. Am I the customer who doesn’t show up frequent

ly, but I fill my basket in a big way when I do? Or am I the customer who always shows up on my way to work for coffee?” This is a common way to think about shoppers when it comes to merchandising, he added, saying digitizing that just means thinking about it within the context of data architecture.

While some convenience retailers still may find this a bit aspirational in terms of com mitment, consider that, at the core, it’s about evolving the culture of how to think about the customer journey. Whether that means going full steam ahead with tactics and technology or considering the inherent characteristic of customers, starting the internal conversations about the customer journey will never steer you wrong.

Renee Pas ’ writing draws from both her c-store background and her more than 20 years writing about various retail channels. She can be reached at reneepas4@gmail.com

“The new marketing battleground,” is how the authors of “What You’re Getting Wrong About Customer Journeys” describe customer journeys in a recent Harvard Business Review piece (see www.hbr.org/2022/07/what-youre-getting-wrongabout-customer-journeys). Authors Ahir Gopaldas and Anton Siebert examined five years of customer experience research and determined that four ar chetypes can serve as a guide to improve market ing practices.

The four archetypes are:

• Routines, which are effortless and predictable

• Joyrides, which are effortless and unpredictable

• Treks, which are effortful and predictable

• Odysseys, which are effortful and unpredictable

For Lori Buss Stillman, NACS vice president of research, the article quickly connected with the convenience-store industry. For example, when she read about creating effortless and predictable cus tomer journeys, she immediately thought of how convenience stores play into that philosophy every day, with Circle K’s unlimited car wash subscription plan as one example. 7-Eleven’s promotion last year that offered gamers a private stay at its Evolution Store connected as a joyride journey for Stillman, which HBR defines as a journey that allows people to escape the tedium of their everyday routine.

The premise is that “it’s not enough to give cus tomers a satisfying initial experience,” according to HBR. And, instead, there should be “a compelling series of experiences—a customer journey—to keep them coming back for more.”

The next move is to focus on new ways to engage shoppers for more influence over that journey.”

Recruiting Foodservice Pros

BY PAT PAPE

All foodservice operations—from pricey steakhouses to QSRs and c-store kiosks—are feeling the pinch from the industrywide labor shortage. The number of U.S. food service workers dropped about 6.1% from pre-pandemic levels through mid-year 2022, reports the National Restaurant Association. Of those 750,000 now-absent workers, many saw their employers’ businesses fail, while others turned to different occupations and industries during the 2020 lockdowns.

That employee shortage has many reper cussions, like slow service, which generates negative customer reviews on Yelp!, Open Table, Google and Facebook.

“Recruitment has been very hard for the last couple of years,” said Peter Rasmussen, founder and CEO of Convenience and Energy Advisors, a Boston-based consultancy. “In the past, if you were opening a new store, you’d post a job for a sales associate, let it sit for a couple of weeks and then do the hiring. Now when a candidate applies, you must respond

Here are tips for surviving the current labor shortage in the kitchen.

to the application almost immediately, wheth er in person or through technology. And your application process must be incredibly simple because you’re competing with so many other open jobs. It’s harder than it’s ever been.”

Employment websites and job boards give employers and potential applicants a quick, low-fuss way to connect. But it comes with its own set of challenges.

“When someone applies on Indeed.com, that is your opportunity to engage with them,” said Rasmussen. “In the past, an employer would call the applicant, but nobody answers unknown numbers anymore. Some retailers have seen success by sending a personalized

text message. ‘I got your application, and you seem talented. I would love to chat.’

“Once you talk to that candidate, remember that the interview goes both ways,” he said. “That candidate knows they have power. They listen to the inflection of your voice. Is this someone they want to work for? That phone interview is the point of where you get them to do a Zoom interview or in-person interview and move them to the hiring phase. If anything is too difficult or disengaging, people fall off the application process.”

BEST PRACTICES

Texas-based TXB Stores has 48 locations, plus two under construction. Employee recruitment efforts include a combination of social media, paper applications and employee referrals. Professionally printed “Help Want ed” window signs feature QR codes, a digital way to give the applicant more information.

At that same time, “we’re going back to 20 years ago when an applicant could walk into a store and say, ‘I’m looking for a job,’” said Dale Jackson, head of recruiting for TXB. “We’ve streamlined it so that if someone walks in, we can hire on the spot. And if you apply between 8 a.m. and 5 p.m. on weekdays, you will get a call back in 15 minutes.”

TXB has seen good results with this prac tice, and today about 20% of new hires are walk-in applicants. “Surprisingly, we find that in some of the rural areas where our stores are located, employees aren’t spending a lot of time job searching,” he said. “They know the businesses in their area, and they’ll walk in and say, ‘I see you’re hiring.’”

With the initial applicant contact, TXB does a quick screening and schedules a nextday interview. “We put it on the foodservice manager’s calendar, so they know that person is coming in,” Jackson said. “And we’ll have a recruiting coordinator there to handle on boarding and hiring.”

SEARCHING FOR TALENT

A good place to connect with foodservice workers is at schools and community colleges offering a culinary program. “Those students are people who have a passion for food and

When a candidate applies, you must respond to the application almost immediately whether in person or through technology.”

cooking,” said Jimmy Crowder, director, food operations and innovation at TXB. “But we also want people who have a personality be cause our open kitchens face our customers.”

“Attitude and personality are the two big things,” said Nathan Graham, director, human resources at TXB. “Anybody can be taught to work in our foodservice department or on the store side. If you have the right attitude and personality, we can train you and give you the tools to succeed in the foodser vice industry.”

Crowder favors hiring employees with QSR experience. “If they’ve worked at a QSR, they’re probably friendly, have a sense of urgency and will be fast,” he said. “And QSRs have some kind of structure where cleanli ness and safety are important.”

During the interview, he’ll determine if applicants enjoy cooking and listen care fully to see if they talk about the team or just themselves.

“If we’re hiring a foodservice manager, they’ll be in training 30-60 days in one of our

two training stores,” Crowder said. “Team members get a week or two of solid in-store training depending on how much experience they have,” he said.

“A retailer with less than 10 stores and who doesn’t have training facilities or a recruiting team should be investing in these things. This is what is going to create the future for their company,” Graham added.

RETAINING WORKERS

Most job applicants are more concerned about their base pay than potential benefits, accord ing to Rasmussen. “At the start of the pan demic, the restaurant industry got smacked,” he said. “You had a lot of foodservice and kitchen managers who had base bonus dif ferences, but the business closed. As a result, many companies have gotten aggressive with their base pay.”

Today’s employees also are more concerned with scheduling and flexibility than in the past. Traditionally, a c-store career required that you “earn your stripes,” Rasmussen said. “You started out with an overnight shift, then got the second shift. Eventually, you became a manager. But that doesn’t fly today. People place value on their personal life and their families, and the c-store industry must be more flexible than ever,” Rasmussen said.

“At TXB, we’re a great proponent of flexible scheduling,” said Jackson. “We post sched ules two weeks in advance so team members can plan their personal lives. Currently, we have eight foodservice managers in train ing. Three of those are products of internal promotions, so there are opportunities for growth. We talk about that when bringing hourly team members onboard.”

A 2021 study of U.S. workers conducted for Ceridian, a human resources and payroll management firm, found that 83% believe they should have access to their earned wages at the end of each shift or workday instead of being paid in traditional two-to-four-week cycles. TXB offers employees the daily pay option if they choose, and 73% of employees have signed up for that benefit.

“Employees can access up to 90% of their paycheck early,” Graham explained. “For

We post schedules two weeks in advance so team members can plan their personal lives.”

example, if you work Monday and Tuesday, you can access that money for those past two days on Wednesday. An employee can go on an app, request $100 and it’s instantly depos ited in their account. A third-party company handles 99% of the work, so it’s almost hands off for us.”

Other enticements include benefits for both part-time and full-time employees and a newhire program worth $200 in free fuel during their first 10 weeks on the job. In addition, the retailer pays team members a bonus for refer ring a new worker and puts a heavy emphasis on keeping communication channels open.

“I coach the managers and have the managers coach their team members to be authentic,” said Crowder. “We all need to be listening. If a team member is feeling anxiety or whatever, we want [management] to listen. The breakdown occurs when we don’t listen to team members, and we don’t communicate.”

If you aren’t sure what your employees want, ask them, Rasmussen said. “Every employer needs to survey their workforce to see what will give them the best bang for their buck,” he said. “Maybe you can’t offer tuition reimbursement, but if you have a strong food service offering you can offer complimentary

Recruiting nontraditional workers can give you an avenue for referrals.

meals to your associates during their shift. At the end of the day, you can’t give away every thing, so you have to survey employees and deliver the benefits that matter most to them and that give you the highest return.”

NONTRADITIONAL WORKERS

The employee shortage is causing hiring managers to be more open to nontraditional workers, including veterans, part-timers, par ents and caregivers who have been out of the workforce, seniors, people with special needs and jobseekers with no work experience or with gaps in their employment history. Some of these individuals may be “skilled through alternative routes,” which means they have the appropriate skills or potential to do the job, but no way to prove their experience.

“Recruiting nontraditional workers can give you an avenue for referrals,” said Ras mussen. “If you offer flexibility for teachers in the evening, you create engagement with that first hire. That turns into referrals, which is traditionally the best way to grow your workforce.”

In addition, “diversity and inclusion matter a lot. Recruiting a diverse and inclusive workforce at the entry level is one thing, but corporations have to actually show consis tent growth opportunities through upper management. A statement or affinity group is not enough. You have to really show it to your workforce,” Rasmussen added.

Of course, there is one more recruitment tactic that TXB admits is effective. “We will steal shamelessly,” said Jackson, admitting to what he calls “a little boots on the ground activity” when he sees a promising employee working at another business. “I can’t say I’ve never been thrown out of a location. We do a little of that, as well.”

Pat Pape worked in the convenience store industry for more than 20 years before becoming a full-time writer. Read more of her work at patpape.wordpress.com.

Beverage equipment innovations are sweeping the c-store industry, powered by automation and customization.

Pour Me a Drink

BY SARA COUNIHAN

Juanmonino/Getty Images

magine a world where a robot darts inside a kiosk and makes you a green smoothie with fresh ingredients, or you walk up to a coffee machine and with a couple of taps, a steaming flat white is made exactly to your prefer ence (a double espresso shot, 2% milk and a half flavor pump of pumpkin spice, thank you). Or you open a mobile app to control a soda ma chine, making yourself a sparkling water with three different flavor shots, hold the ice.

Well, this futuristic beverage world is reali ty, thanks to recent beverage equipment inno vations entering the convenience store scene. Although operators can choose from an array of different machines offering all types of drink combinations, automation and custom ization are similar threads running through today’s sophisticated beverage equipment.

“The growth opportunity with unattend ed retail solutions is immense,” said Greg Herman, senior marketing director, beverage innovation for PepsiCo Foodservice. “Since the pandemic, we’ve seen that consumers are prioritizing three things when they leave home: convenience, simplicity and low-con tact interactions. That said, they do not want to sacrifice choice.”

These consumer preferences were swirling around the convenience retailing industry prior to the COVID-19 pandemic, but once lockdowns ensued and new ways of shopping emerged, customization and automation were no longer nice-to-haves but must-haves.

“The convenience factor has become something else with the pandemic,” said Brittany Tresemer, marketing director at Franke, which provides fully automatic coffee machines for retailers. “[Consumers] want to be able to have something that they know is fresh, high quality but super convenient.”

LET’S GRAB COFFEE

In July 2021, Franke launched its A1000 Flex coffee machine, and it’s been a hit product with convenience stores. The machine makes espresso-based beverages, along with fresh bean-to-cup coffee, and it even has a powder hopper for hot chocolate.

“[Operators] want to see the biggest return

in the smallest amount of space,” said Trese mer. “This machine meets that unique need and has been a tremendous success.”

The A1000 services different customer bases as well, she said. For the customer want ing a simple, fresh cup of coffee, the machine can take care of them, while also providing robust options for the customer who wants a specialty espresso drink, made exactly to their preference.

“[Operators] want to be able to offer good coffee. In fact, that’s one of the things that people were leaving their house for during the pandemic—to have a coffee experience that they couldn’t recreate at home,” Trese mer said. “They’re expecting a little bit of an elevated experience now.”

7-Eleven bills itself as the “OG To-Go Since 1964” coffee destination, and the company claims to have invented to-go coffee in 1964 at a Long Island, New York, store. 7-Eleven takes the freshness level of its coffee seriously, sourcing its beans from around the world. Its Evolution Stores offer customers that elevated coffee experience with an array of java op tions, focusing on customization.

Clockwise from left, Coca-Cola’s Taprite Variety Tower; Franke’s A1000 Flex coffee machine; and Costa’s Smart Café.

Since the pandemic, we’ve seen that consumers are prioritizing three things when they leave home: convenience, simplicity and low-contact interactions.”

REFRESHMENT RUNS IN THE

Coca-Cola and so much more, o ering the preferred categories and leading brands to drive your sales and profit growth. Contact your Coca-Cola representative, call 1-800-241-COKE, or visit www.coca-colacompany.com.

2022 NACS Show, booth

“For coffee lovers, these stores feature custom espresso drinks, cold brew coffee and a second self-serve espresso machine where we’ll test specialty items such as cold foam, dirty chai, horchata latte and more,” said Molly Long, vice president of store evolution and design at 7-Eleven.

For operators looking for a lower-cost coffee program, Coca-Cola offers the Taprite Variety Tower, manufactured by Aalberts, for beverages, including coffee, tea and lemonade. The tower is similar to an urn, but it connects to and pours from a bag-in-box product. The equipment provides superior ra tio control and reliability and is easy to install and service, according to Melinda Pritchett, director of category strategy and innovation at The Coca-Cola Company.

Coca-Cola offers Barista Bros. iced coffee products to go along with the tower, and the products can also be dispensed from a legacy fountain machine. “This is a great solution for customers looking for a less labor-intensive iced-coffee program,” said Pritchett.

In 2019, Coca-Cola acquired Costa, a U.K.based coffee business with operations in more than 30 countries, and debuted Costa coffee this year in the U.S. as a “total coffee brand” that includes served and self-serve options for operators.

One of the options is Costa Smart Café, an autonomous coffee maker that makes hot and cold drinks using fresh beans ground inside the machine, as well as fresh milk also frothed inside the maker. It can make 100-plus drinks before human assistance is needed.

“[It’s] essentially an unmanned coffee shop in a box,” said Pritchett.

SODA SCENARIOS

Cold dispensed beverage machines have been traditionally self-serve at convenience stores for years, but what has evolved in the category since the pandemic is customization. PepsiCo Flavor Shots enhance a traditional soda fountain by allowing the consumer to dispense four flavors—vanilla, cherry, lemon and raspberry—into beverages.

“This is where unattended retail solutions bring value,” said Herman. “Solutions help to meet consumer desire to shop at their own pace while getting a variety of options.”

Coca-Cola has a similar customization offer—a prism valve, manufactured by Cornelius, that dispenses three different carbonated or non-carbonated beverages plus sparkling or filtered water from each valve of a traditional beverage fountain. The valve can typically be installed in less than an hour and is available as a retrofit kit or can be added to new equipment. It has the option to be selfserve or crew-serve.

“This capability increases variety and con sumer choice in the same footprint,” said Pritchett.

For operators wanting even more options for their customers, Coca-Cola’s Freestyle machines offer multiple beverage categories and flavors in a small footprint. Coca-Co la Freestyle 9100 can make more than 100 beverages across eight beverage categories, and during the pandemic, Coca-Cola rolled out a mobile pouring feature. Accessible via a mobile app, customers scan a QR code, which turns their phones into a remote control for the dispenser. The smaller Coca-Cola Free style 7100 is a countertop model that offers over 80 beverages across six categories.

PepsiCo is testing an unattended vending solution called Quik Pick, which transforms a standard cooler into a digital experience, where customers can browse, return and buy several products simultaneously. Consumers use their card or mobile wallet to unlock the cooler, then pick out (or put back) as many drinks as they like. Once they shut the door, their card is charged.

Clockwise from left, Coca-Cola’s Freestyle 9100; PepsiCo’s Flavor Shots and Quik Pick.

Unattended retail solutions can help fill various gaps, namely helping to fill holes created by ongoing staffing challenges within the industry.”

“An unattended solution like Quik Pick could bring tremendous value to convenience store settings, allowing consumers to shop at their own pace while still getting the variety of products they seek,” said Herman.

SMOOTH MOVES

In late summer, Love’s Travel Stops added a robotic smoothie maker to its Williams, California, location. The Jamba by Blendid kiosk is an 8-feet-by-8-feet, fully autonomous, contactless machine that makes smoothies using fresh ingredients. It can handle up to nine orders at a time received from a tablet at the kiosk or mobile orders.

“Knowing that our customer base is look ing for a healthy on-the-go offering, these machines offer greater variety to them with a high-quality product that people are familiar with,” said Joe Cotton, vice president of food service at Love’s Travel Stops.

According to Vipin Jain, CEO and co-founder of Blendid, the machines tackle a variety of challenges and opportunities c-store operators face, including labor issues, fresh-food options and working within a small footprint.

“This is a strategic expansion into travel stops. We think there is a very dire need for good quality food options, 24/7, which is ex actly what our kiosk is there for,” said Jain.

If c-stores wanted to add a full-service smoothie operation, they would need ample space in their store, not to mention a trained staff to run the operation.

“[With a] Blendid kiosk, you can put everything in 100 square feet,” Jain said. “It becomes a very attractive option in c-stores

where space is a big challenge. Working with Love’s has been a phenomenal tactic because we are tackling a standard store layout with Love’s.”

Although the kiosk is self-cleaning to an extent—it washes the jars after making each smoothie—store employees will need to clean the unit daily. That involves surface wiping and restocking all the dispensing bins that house the fresh ingredients used to make the drinks.

PepsiCo’s Herman says this is where au tonomous solutions benefit convenience store operators.

“Unattended retail solutions can help fill various gaps, namely helping to fill holes created by ongoing staffing challenges within the industry,” said Herman. “Additionally, the tech utilized in these solutions can help cap ture data about consumer habits and prefer ences to help inform growth opportunities.”

Love’s plans on adding these kiosks to three to five locations in California, with the possibility of expanding to additional markets, although there are no immediate plans to do so.

“Blendid’s AI technology and state-of-theart robotics helps get our drivers (both pro fessional and casual) back on the road faster with a healthier food choice prepared exactly to their specific wants,” said Cotton.

Personalization was Jain’s motivating factor behind co-founding Blendid, and he imagines a future where consumers enter a robotic food court with multiple food choic es, and the system knows who the customer is and prepares customized food based on their taste, allergies and food preferences.

“That’s the future we want to create, where the food is highly personalized, highly cus tomized to your taste, body and to your gut and your immune system, keeping your body and mind fresh and energized,” said Jain.

Cheers to the future!

Sara Counihan is contributing editor of NACS Magazine and NACS Daily. She can be reached at scounihan@ convenience.org.

A California Love’s Travel Stops location now has a Jamba by Blendid kiosk.

Knowing that our customer base is looking for a healthy on-the-go offering, these machines offer greater variety to them with a high-quality product that people are familiar with.”

To meet your on-the-go needs.

The Tyson Convenience team is thrilled to be here at the 2022 NACS Expo, and we hope you’ll stop by to see all the ways we can help with

From a single ingredient for made-to-order

grab-n-go

we’ve got you covered.

to

see us at booth #5137 and enter to win one of

on-the-go

BY PAT PAPE

CONVENIENCE VETERANS SHARE THE FOR A SUCCESSFUL FOODSERVICE BUSINESS.

ncreasing foodservice profit dollars, supply issues and managing costs and waste are top challenges for today’s post-pandemic convenience retailers, but two industry veterans see these concerns as opportunities and want to help c-stores find their special sauce.

Think like a restauranteur—not a retailer, advise Joseph G. Chiovera and Jeff Foley. Chiovera is founder of XS Foodservice Solutions and exec utive consultant to Premium Brands Holdings, and Foley is general manager of JF Heritage Food Company, the fresh food commissary for CEFCO stores. The foodservice pros shared their insights ahead of headlining the “Menu Optimization: Think Like a Restau rant” education session October 1 at the 2022 NACS Show.

THREE PHASES

Chiovera believes that creating a flourishing foodservice program occurs in three phases. The first is “Foundation Before Differentia tion.” This involves strategically planning the program, creating product specifications, es tablishing standards and training staff, among other things. It’s a lot to tackle, but program implementation should not be rushed.

“Many companies want to jump into a foodservice program,” he said. “They think it’s easy, but they try to run it like a retailer, and they fail. I call them the ‘margin watchers’ because they try to manage margins. They don’t understand the burden that foodservice puts on a facility and the risks that are associ ated with the reward, which is high margin if you pull it off correctly. It’s all about sales in units—not necessarily dollars.”

The second phase is “Building a Culture of Simplicity,” which is where the industry is now, Chiovera said, noting that this phase “includes menu rationalization, labor optimi zation, product optimization, tweaking your retails and doing what you do best and not much more.”

Chiovera said the “Simplicity” phase re quires making tough decisions about opera tions and points to foodservice winners like McDonald’s, Chick-fil-A and Panera Bread as positive examples. “They serve the same stuff every day. They have limited menus, and they do it fantastically,” he said. When a foodser vice operator reaches that point, “you go from driving sales in units to driving gross profit dollars. You cut your losses and go with the high-margin items that you do very well.”

Raising Canes, a chicken-finger QSR, is a model of simplicity with only four items on the menu, he said.

“The menu drives everything. Some people in the industry build a kitchen before they even have a menu. That’s like building the latest car and having the engineers start the design with the stereo system. Once you get the menu situated and you’ve conveyed this to the consumer, you can schedule your labor around that,” Chiovera said.

This also is a good time to take a look at ex penses. “If you sell a lot of fried chicken, you can negotiate better pricing on chicken,” he said. “Then, you push it out the door and in crease gross profit dollars. Plus, you will find different ways to serve that chicken. Serve it on a bun. Have it in a box ready to go. Make it available as a call-in order.”

After the centerpiece of a chain’s food service program is identified, it’s time to get aggressive with marketing. “Some say ‘if you build it, they will come,’” said Chiovera. “No, they won’t. Not in the days of social media and with all the competition on the street, you must tell your customers what you do. To day it’s all about unit volume, throughput and more people coming through your doors.”

The third and final phase of foodservice success is “Nurturing Greatness.” You’ve achieved some level of success, and “you’ve earned the right to manage margin,” he said.

Chiovera wants audience members to walk away from the NACS session with several ideas they can take back to their stores to

The menu drives everything.”

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help simplify their foodservice operations. “I know the struggles of not having labor and of having poor execution,” he said. “I’ll speak to utilizing the supply chain and vendors and segmenting categories within categories.”

He’ll also highlight the value of fully cooked proteins in the kitchen. “Today, food service employees are becoming assemblers as opposed to someone who is cooking stuff,” Chiovera said. “That’s where the restaurant industry is going.”

TALKING TACTICS

For Foley, it’s all “about being innovative while being simple,” he said. That means taking actionable steps to reduce labor, ease execution, invest marketing dollars, increase sales and boost buying power.

During the past two years, the Texas-based chain with 200-plus locations has added its proprietary CEFCO Kitchen concept to all new and many existing locations. The Kitchen includes a full-serve kiosk with touch-screen ordering that lets customers custom design their made-to-order meals and snacks.

The chain makes menu decisions by utilizing consumer information provided by vendors, and the company’s marketing de partment is planning customer focus groups. Retailers with a winning program know who their customers are and what they want. “But we’re not trying to be all things to all people,” said Foley.

Like Chiovera, Foley believes in differen tiating his stores’ foodservice from compet itors by “doing it better than everyone else. When CEFCO looked at its brand strategy, we

decided to be known for fried chicken tenders and tacos,” he said.

To reduce costs, control waste and keep it simple, CEFCO cross-utilizes pantry items. “We can come up with a great signature sauce and create a buffalo ranch chicken sandwich, and we can use different sauces to make great LTOs,” he said.

“We can add a Mexican-inspired sauce or Asian-inspired sauce to come up with all the big and bold flavors, and we can use them as a dipping sauce, topping or mix them in with our base chicken or steak products or carnitas. We keep the costs down thanks to mass purchasing power for our base ingredients,” he said.

One example of using that purchasing power occurred over the summer when CEFCO offered brisket sandwiches and burritos in all stores.

“Our vendor wanted us to buy a lot [of bris ket]. We figured we could take a little more off them if we could get a good deal through rebates, which we did,” Foley said. “We worked with our distribution vendor, who agreed to hold the brisket until we needed it, so we were able to take it all at once.”

The company then developed a promo tion that offered a free brisket product to customers when they downloaded the

Today, foodservice employees are becoming assemblers as opposed to someone who is cooking stuff.”

Stores that try to do one or two things very well are the ones that will succeed.”

CEFCO Reward App, which lets them earn points for redeeming for prizes and paying touch-free at the pump. “We were basically giving away brisket for free to customers all summer,” he said.

To enhance the offer, CEFCO leveraged beverage vendors—The Coca-Cola Company, PepsiCo and Keurig Dr Pepper—and offered to post their company images on store fountains and billboards on a by-market basis and on social media in exchange for products. “Then we went to Frito-Lay and said we wanted to give away a bag of chips,” Foley added.

The promo, which ended up offering a complete meal for free, was a hit and boosted rewards program membership 500%. “We’re negotiating with vendors all the time,” Foley said. “We have a lot of channels, and we can help them, too, with digital marketing. We market every way we can.”

CEFCO constantly seeks new ways to reduce foodservice costs and is currently bringing bulk meats into the commissary for staff to prep.

“A lot of labor goes into preparing food products for assembly, and we’re weighing the cost of that,” Foley said. “We work all the numbers and make sure we do what’s best for the customer. For example, we bring in a premium chocolate icing for our chocolate donuts. That’s going to be the cost of doing business, but we’ll make it up in volume. We know which products we can pay a little more for and still charge a great price to our cus tomers because we’ll get that back in volume.”

GOOD MENU, GOOD VALUE

CEFCO’s menu includes staple items like crispi tos, egg rolls, burritos and corndogs and nine types of kolaches, the popular Czech pastry filled with meat, cheese or fruit.

“Customers can select two items for $3.79, and the products are inter changeable,” Foley said. “There are over 20 items they can mix and match, and customers will mix and match kolaches with hot graband-go items like burritos. With a soda, they have a $5 lunch, which is a great deal. Right now, people don’t have the disposable income they had a year ago.”

Moving forward, “you’re going to see more operators finding partners who will grow with them,” Foley predicted. “You’ll also see some c-stores try to do a little of everything, and that’s where they’ll fail. Don’t try to be everything to everybody. Stores that try to do one or two things very well are the ones that will succeed.”

Throughout the process of growing your program, you have to also keep your organization’s long-term strategic goals top of mind, Chiovera said. “You will have to convince your executive team that [creat ing a foodservice program] will take time,” he added. “To go from being a petroleum retailer to a being foodservice operator is not something you do on the side of the desk. Foodservice is a risk/reward category, and it’s not for the faint of heart.”

Pat Pape worked in the convenience store industry for more than 20 years before becoming a full-time writer. Read more of her work at patpape.wordpress.com.

Next-Level Convenience

BY SARA COUNIHAN

Core-Mark,

now North America’s largest and most comprehensive convenience distributor, will be among the most intriguing offerings of the 2022 NACS Show lineup—and the com ing year in convenience.

That’s because this newly-formed wholesale powerhouse is poised to deliver gamechanging store solutions that run the gamut from fresh and healthy grab-and-go items to hot-and-ready prepared foodservice programs and technology tools that keep retailers effi cient and connected to their shoppers.

If that sounds like a lot … you’re right.

That’s the beauty of the opportunities the company provides for its retail partners. Knowledge runs deep in the ranks of this dis tribution leader, and that breadth of expertise pairs perfectly with a dedication to customer service that’s hard to beat. The team at CoreMark understands the convenience business because they have evolved within it.

Perhaps the most significant outcome of the partnership has been the influx of exper tise in foodservice, thanks to the advantages of parent company Performance Food Group, one of the nation’s largest broadline food distributors, with more than 150 locations in the U.S. and parts of Canada. Serving foodser vice purveyors at multiple levels across the restaurant industry, PFG offers unmatched capabilities and invaluable insights to the convenience channel, at levels not readily found with other distributors.

Operating as one, the synergies and align ments of these leading companies have created a robust experience for their convenience retailer partners.

We talked with some key leaders from the Core-Mark team about where they see the industry moving, particularly in the arenas of foodservice and technology, and how the com pany plans to assist customers as they navigate that journey.

FOOD FORWARD Foodservice is only going to grow in the convenience retailing industry, according to Sharon Kuncl, senior director of foodservice merchandising at Core-Mark.

“Given the way consumers now eat, our retailers have a significant opportunity in front of them,” she said. “People now view conve

Our retailers will now be able to capitalize on the bestof-the-best from what we’d been offering.”

Here’s why Core-Mark sees foodservice and technology as essential to the industry’s future.

nience stores as a real option for food, and the potential revenue is a point of growth.”

Kuncl said that although the company is a leader in foodservice, with both independent and chain stores operating food programs— there still are many c-stores offering minimal foodservice or none at all.

“There truly is a huge gap there,” said Kun cl. “There’s a lot of white space to continue to be filled.”

And the team at Core-Mark is ready to fill that void with quality solutions that drive store revenue. When the companies came together, they took a hard look at what each one brought to the foodservice table, choosing the best programs and the most beneficial offerings for their operators.

“Our retailers will now be able to capitalize on the best-of-the-best from what we’d been offering,” said Kuncl. “They have more advan tages with us than ever before.”

Enter easily implemented programs that are turnkey solutions for convenience retailers— Contigo® Taqueria, Perfectly Southern® Fresh Fried Chicken, The Red Seal Pizzeria®, Deli 55® and Tru-Q BBQ™—complete franchise-styled programs without the fees. A team of cor porate chefs creates high-quality, flavorful options designed with convenience operators and customers in mind.

Do you want to be in the fried chicken business? Core-Mark provides a program that has all of the recipes, signature ingredients, supplies and items needed to be able to run the program, as well as digital menu boards, point-of-sale marketing, access to equipment and smallwares, training and education.

The same holds true for all these brand ed programs, designed to position a c-store retailer as a valuable source of food on the run, competitive with fast-food restaurants and takeout options, across all dayparts.

“There are a lot of bells and whistles with these programs that were really set up so the retailer could step into the foodservice busi ness quickly and easily,” she said.

In addition, the company recently rebrand ed its exclusive fresh food offer—Fresh Take™ Crave Away™—which continues to realize considerable growth in the market. Expansive programs for beverages and fresh sandwiches, as well as a wide and varied array of other gr ab-and-go items, round out the food offerings.

Private labeling is another forwardthinking idea within the convenience industry, honed for customers by Core-Mark.

Cost-efficient and customizable, the menu of private-label products allows a retailer to stand out among the competition.

“[Core-Mark] has a wide assortment of pri vate-label items that are different and unique from national-branded items,” said Kuncl. “Perhaps we create a breading for chicken tenders that has a different flavor profile than anything else out there. Or maybe the pack size we offer is much more conducive to a convenience store.”

It’s variations like those which are key to staying competitive among consumers. And not simply with other convenience retailers.

“No longer is a c-store only competing with the other c-store down the street,” Kuncl said. “QSRs, fast-food restaurants and even full-service restaurants are now vying for the convenience customer and vice versa.”

If knowledge truly is power, then valuable data is one advantage c-stores can use to stay ahead of the competition. Core-Mark provides its retailers with real-time data on what is happening within different segments of the restaurant industry.

“A lot of what happens in the restaurant business as a whole translates into what’s happening in the convenience store and what food the consumer is expecting,” she said. “We want to share those data and insight pieces so our customers are more knowl edgeable about what’s happening around them, which will allow them to make better business decisions.”

INNOVATION DRIVEN

Providing strategic sales and trend data is an important piece in the entire set of solutions the Core-Mark team offers its store partners. Another piece is technology—innovations that serve store owners and consumers alike.

Looking to the future, Sandra D’Asaro, vice president of sales development, analytics and technology at Core-Mark, sees con sumers frequenting c-stores for extended periods of time. Perhaps it’s because they’re waiting for their electric vehicle to charge, or because the c-store has a robust food offering, and they’re coupling a fill-up with a dining experience.

Sandra D’Asaro, Vice President of Sales Development, Analytics and Technology, Core-Mark

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

Sharon Kuncl, Senior Director of Foodservice Merchandising, Core-Mark

People now view convenience stores as a real option for food, and the potential revenue is a point of growth.”

“Consumers might need to be at these convenience stores for a longer stretch of time, and through that, they’re expecting a more fulfilling experience,” she said. “They’re looking for something that’s modernized, feels comfortable and is inviting to be in. We really see that we can play a significant role in creating that space.”

From a consumer’s perspective, “con venience” is a way to get their products, goods and services easy and on their terms, according to D’Asaro.

“Consumers want what they want, when they want it, and they want to pay for it their own way,” she said. “They want to interact with retailers on their own terms.”

Core-Mark meets those consumer prefer ences with a variety of solutions. For example, a partnership with Skip, a contactless mobile checkout solution provider, offers retailers a frictionless mobile payment option, with self-checkout kiosks for their stores.

“It’s about creating a modern experience,” said D’Asaro, who also predicts frictionless checkout is going to soon hit an inflection point, and such payment options for cus tomers will be a necessity if store owners are going to compete in the marketplace.

“The world of digital is exploding, and it’s imperative that the convenience channel has the tools and capabilities to deliver that same experience as has been established by other retail formats,” she said. “We want to be at the forefront of that, and for our operators to know that when they’re ready, we’re ready.”

If consumers are going to be spending more time inside c-stores as D’Asaro predicts, those stores will need to be continuously stocked with the right products. Core-Mark’s capabil ities in order solutions and order replenish ment have become a huge value for retailers.

“In today’s supply chain environment, the level of out-of-stocks is unprecedented. When c-stores sell through products and aren’t able to replenish, top-sellers can be forgotten,” she said.

Partnerships with Blue Yonder and leveraging Microsoft’s PowerBI help CoreMark engage with customers to optimize product assortment, build leading-edge planograms and deliver real-time, customized dashboards to monitor the health of their business. Once top-selling products are again available, tools like these ensure they aren’t lost and planograms are brought back to life.

“Those types of things might sound small,” said D’Asaro, “but for many of our operators, these are the things that simply drive their business.”

Core-Mark can allow retailers to go beyond simply identifying top sellers in their stores. Through the company’s Retailer Analytics Dashboard, operators can actually see what products are trending, even if they aren’t cur rently stocking them.

“We offer real time, up-to-date information about the state of their business, compare them to the benchmarks of the market around them, and then provide actionable insights to make more informed decisions,” said D’Asaro.

“They can leverage best practices or home in on areas where they might be underperforming compared to the market, or even compared to other stores within their chain,” she added.

CUSTOMER COMMITTED

Overall, the company remains committed to a customer-focused approach, which keeps its store partners at the forefront of its decision process. Be it strategic merchandising, food service implementation, innovative technology or valuable market research, the point of view is always that of the c-store owner.

“From a capability standpoint, we’ve really got two powerhouses that have come together, and we both have the same philosophy— putting customer interest first,” said D’Asaro. “This can be a point of differentiation from our competition, but further, we offer the tools and solutions to help our retailers differentiate themselves from their competition. Everything we do is with their needs in mind.”

Sara Counihan is contributing editor of NACS Magazine and NACS Daily. She can be reached at scounihan@ convenience.org.

The world of digital is exploding, and it’s imperative that the convenience channel has the tools and capabilities to deliver that same experience as has been established by other retail formats.”

Blur

Beverage brands, alcohol suppliers cross category lines

to quench consumer thirst for new products.

BY TERRI ALLAN

With overall sales of tradi tional packaged beverages languishing in recent years, it’s no wonder marketers have set their sights on other expanding and profitable categories. And while it’s still too early to know if these moves into new segments will be successful, they’re certainly gar nering a lot of attention from beverage industry members and retailers, as well as projections as to how the developments will affect the beverage business going forward.

“It’s a blur,” said Don Rhoads, president of The Convenience Group chain of stores in the Pacific Northwest, of recent partnerships between soft drink companies and alcoholic beverage mar keters on new age-restricted drinks. “Everyone wants into that space; it provides an opportu nity.” Changing consumer interests are also factoring into the partnerships, Rhoads said. Thanks to the pandemic and resulting product supply outages, consumers are open to new options more than ever.

Topo Chico hard seltzer, the spiked version of the popular Coca-Cola–owned mineral water, was introduced in 2021 and rolled out nationally earlier this year. It’s produced, distributed and marketed by Molson Coors Beverage Co. via a brand authorization agreement. According to the Chicago-based brewer, the hard seltzer has been an early success. Perhaps that’s why the two companies expanded their partnership this year.

Simply Spiked lemonade, an alcoholic version of the top-selling juice brand, launched during the summer. “We’re putting our strengths together in a way that’s collaborative and set up for success,” Jamie Wideman, vice president of innovation for Molson Coors, said of the expanded partnership.

Rutter’s, based in York, Pennsylvania, this spring partnered with Lancaster Brewing Co. on a limited-time-offer spiked tea cooler, inspired by Rutter’s Tea Cooler, made by Rutter’s Dairy.

Rolled out in May, the spiked version is brewed using the same ingredients as the original tea and lemonade combination and has an ABV of 5.5%.

“We’re thrilled to continue our partnership with Lancaster Brewing Co. by launching our second private-label beer product, Rutter’s Spiked Tea Cooler,” said Sean Pfeiff, Rutter’s senior category manager. “The great customer response and enthusiasm we saw from our Chocolate Milk Stout, released for a limited time in November 2021, made the decision to work together again a no-brainer.”

Coca-Cola recently teamed up with another beverage alcohol supplier to leverage yet another brand in the growing ready-to-drink cocktail segment. Under the agreement, Constellation Brands—a beer, wine and liquor supplier—will produce, distribute and market Fresca Mixed, with the launch expected this year. Fresca Mixed is the brainchild of Coca-Cola’s New Revenue Streams group, which, the company said, “sup ports Coke’s journey to become a total beverage company with drink options for all occasions and need states.”

According to Dan White, chief of the business unit, “third-party relationships with licensed alcohol manufacturers show how we’re following the consumer, taking an agile, experimentative approach to expanding our brands’ reach based on the evolving landscape.”

GAME CHANGER

PepsiCo is collaborating with a leading beverage alcohol supplier to expand one of its carbonated soft drinks into the age-restricted space, but it’s this partnership that has sparked concern among licensed drinks industry members. Under an agreement with Boston Beer Co., HARD Mtn Dew launched earlier this year in Florida, Iowa and Tennessee, and additional markets are on tap. While the producer of Samuel Adams Boston La ger and Truly hard seltzer is manufacturing the

Rutter’s partnered with Lancaster Brewing Co. on a limited-time-offer spiked tea cooler brewed using the same ingredients as its original tea and lemonade combina tion and has an ABV of 5.5%.

new flavored malt beverage, PepsiCo has the responsibility to sell, distribute and market it. Depending on state and local regulations, the new product will be distributed via Pepsi’s existing beverage trucks, independent beer wholesalers or the company’s fledgling Blue Cloud beverage alcohol distribution arm.

Speaking to beverage analysts earlier this year, PepsiCo CEO Ramon Laguarta called the move into age-restricted drinks “strate gically very incremental, sizable and profit able.” He added that other PepsiCo brands could also be extended into the space.

Some beer industry members and observ ers, however, are skeptical of PepsiCo’s entry into the beer distribution tier. “It simply clutters the landscape of an already-crowded field,” remarked Bump Williams, president and CEO of Bump Williams Consulting, which works as an adviser for the alcoholic beverage industry. “We already have an [al coholic distribution] system that works very well.” Williams questions how soft drink distributors will transition to distributing alcoholic beverages. “It will take soft drink distributors a long time to secure a new facing and obtain additional shelf space,” he noted. HARD Mtn Dew isn’t the first expansion of the popular CSD brand. Mtn Dew Energy is a recent entry into the energy drink segment.

In another collaboration, Boston Beer has partnered with Beam Suntory to expand some of both companies’ respective brands into other categories. Malt-based Sauza Agave cocktails (produced by Boston Beer) and Truly vodka and Twisted Tea Sweet Tea whiskey (produced by Beam Suntory)

launched earlier this year, and according to the two companies, more products are planned. While still early in the process, “in the convenience channel, multiple retailers are making Truly vodka their big spirit bet for 2022,” said Heather Boyd, managing di rector—U.S. RTDs, at Beam Suntory. “These retailers are excited to see the trial from Truly hard seltzer drinkers and see huge opportunities for cross-merchandising.”

For Sauza Agave FMB cocktails, mean while, among the lead packages for c-stores is the 24-ounce can of the Lime Crush flavor, according to Lesya Lysyj, chief marketing officer at Boston Beer.

CONSUMER-DRIVEN TREND

While beverage marketers see growth and profitability opportunity by expanding into new drink categories, the trend is also consumer driven. Rob Hertenstein, inno vation director at FIFCO USA, said, “One thing driving it is the consumer’s appetite to try new or novel things. While there used to be quite a high barrier to trial, that has gone away, and today consumers crave new and different.” As a result, he said, “Brands are being given permission by consumers to stretch into adjacent categories.”

Indeed, Boyd remarked that Truly hard seltzer drinkers are “active purchasers of vodka, so entering into the vodka space is an opportunity to introduce Truly flavors to a new category and bring the brand into new occasions.” For c-stores, the new products are helping retailers expand product assort ment while increasing foot traffic and basket size, Williams noted.

There’s a very high overlap of craft sour shoppers and hard seltzer shoppers.”

Two Trees Beverage Co. introduced Bourbon BarrelAged Seltzer, a malt-based, wood-crafted seltzer, this spring.

Beyond company collaborations, beverage blurring is playing out in other ways. Mon ster Beverage Corp. recently purchased the Canarchy Craft Brewery Collective, parent to craft breweries including Oskar Blues Brew ery and Cigar City Brewing. Upon announc ing the deal, Monster Vice Chairman and Co-CEO Hilton Schlosberg said it “provides us with a springboard from which to enter the alcoholic beverage sector,” including a “fully in-place infrastructure, people, distribution, licenses and alcoholic beverage development expertise and manufacturing capabilities.”

Indeed, in August, Monster announced the introduction of The Beast Unleashed, a flavored malt beverage packaged in 16-ounce single cans and variety packs.

Breweries are also blurring the lines be tween product categories with new offerings. Anheuser-Busch, for example, recently ex tended the Bud Light hard seltzer brand with Bud Light seltzer hard soda in four flavors. FIFCO, meanwhile, has expanded its Labatt Blue Light hard seltzer brand with a sour beer style variant. According to Hertenstein, La batt Blue Light Seltzer Tart was introduced in response to consumer interest in bold flavor profiles, as well as growing demand for sour beers. “There’s a very high overlap of craft sour shoppers and hard seltzer shoppers,” the beer executive explained.

EMBRACING THE OPPORTUNITY

If consumers are on an insatiable quest for new products, it’s important for retailers, including c-store operators, to have those products available, suppliers said. “We’re seeing consumers shopping agnostically across categories, looking for brands they know and love,” said Beam Suntory’s Boyd. “This presents a key opportunity to extend beloved brands into new expressions, formats and outlets and drive additional brand affinity and customer loyalty.” For c-stores, she added, continued innovation allows operators to offer “consumer-centric products and leverage strong brand affinity to drive purchases.” Some retailers are excited about the prospects.

“As big players like Coke and Pepsi enter the age-restricted space, I hope the marketing dollars will follow,” said Colin Dornish, senior director of operations at Coen Markets, a c-store chain based in the Mid-Atlantic.

Additional products and players in bever age alcohol will also bring some challenges for c-stores. Williams pointed to “more trucks in the parking lot of already-crowded stores and additional people calling on store and district managers.”

Rhoads foresees continued stress on shelf space. “With the arrival of new products that cross categories, we have to ask, ‘Where does this product belong?’” he said. “If it’s a new category, we’ll have to carve out new space.” Moreover, the new products will likely cannibalize existing offerings, he add ed. “While these new products can be a big opportunity, they can also be a big challenge from a category-management standpoint,” Rhoads noted.

Challenges aside, blurring of beverages is expected to continue, according to suppliers and retailers. “We’re expecting an explosion,” said Rhoads. “Because they’re grab-and-go products, they’ll result in additional trips to c-stores. We’re all about trips, so we’re in.”

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

Brands are being given permission by consumers to stretch into adjacent categories.”

Healthy Investment

TThese days, health and wellness centers run by retailers for their employees and/or customers have become a popular benefit and, at times, an additional profit center.

BY SARAH HAMAKER

For example, QuikTrip operates several Med Wise Urgent Care centers for both employees and the community in the Tulsa, Oklahoma, metro area. Dollar General has its eye on the booming health-care market with telemedicine and prescription medications in its pipeline. Sheetz offers an on-site employee health center at its headquarters campus in Altoona, Pennsyl vania, and San Antonio, Texas-based grocery chain H-E-B runs its own health and wellness platform that offers medical, dietician and pharmacy services at seven locations.

Tiger Fuel’s CareTeam approach has paid dividends in both employee health, retention and recruitment.

Smaller operators are also finding ways to provide health-care services beyond basic medical insurance. Tiger Fuel Company, which operates nine The Market c-stores and 10 car washes in and around Charlottesville, Virginia, opened the CareTeam Corporate Health Center in 2019, which is dedicated to employees and their families.

Here’s how Tiger Fuel made health and wellness central to the company’s employee benefits package—and how the move has ben efited both employees and the company.

THE SETUP

Tiger Fuel has a history of supporting the health of its employees. “We’ve long known the importance of engaging employees in a primary care model for longitudinal preven tative care,” said Ryan Whitlock, chief people officer at Tiger Fuel.

In 2018, Tiger Fuel’s insurance broker approached the company about participating in the CareTeam model as an added benefit to employees.

“Large corporations like Apple and Mic rosoft have on-site health-care facilities for their workers, and the idea that a company our size with 350 employees could offer something similar was worth exploring,” said Whitlock, adding that the company was look ing for a benefits program “that really blew

the competition away, and CareTeam became a central part of that option.”

A challenge for small- and medium-sized companies to operate an on-site medical facility is not having enough employees to make the venture economically feasible. Tiger Fuel’s insurance broker offered a simple solu tion: Team with a local and similarly sized asphalt company as partners in the CareTeam clinic. This gave both companies the ability to share costs, while providing a higher level of service to employees and their families.

Underscoring the need for a clinic available to employees and their dependents was the lack of enough primary care providers in the Charlottesville area. “Our employees told us they were going to urgent care or hospital emergency rooms when they were sick,” said Whitlock. “Since Tiger Fuel is self-insured, our claim costs were becoming unmanage ably high while our workers weren’t getting access to the health care they needed.”

Another concern was how long it took for employees to get appointments for preven tative care. “For us, it was important for our workers to have a health-care option where they could be seen easily,” said Shaleena Arreguin, people services manager for Tiger Fuel. “When speaking to market associates, they expressed a need for more appointment options so they’re not missing out on work time for preventative care.”

A WELLNESS VIEW

Health Care as Recruitment

Tiger Fuel realized another benefit of offering the CareTeam Corporate Health clinic: It is a recruitment tool. As the compa ny continues to raise awareness among employees, it is also showcasing the clinic as part of its recruitment advertising.

“We have people ask about it during the interview process, which is great because that means we’re getting the word out about this wonderful benefit,” said Shaleena Arreguin, people services manager for Tiger Fuel.

Job applicants can experience the CareTeam difference during the hiring process. “We can make a job offer and immediately send the candidate to CareTeam for the drug test required as part of their employment,” she said. “We see this as an added bonus because the new employee is introduced to CareTeam and sees firsthand what a wonderful benefit this is.”

Tiger Fuel uses CareTeam as the corner stone of its Wellness Program. For the past four years, workers have participated in this initiative, which includes an annual biometric screening and review coupled with a health risk assessment. A CareTeam provider then follows up with a care plan to help monitor participating employees’ health risk status quarterly.

“The health-care ecosystem is getting more and more confusing and difficult to navigate, so we felt strongly that integrating wellness into primary care was the path for ward,” Whitlock said. “It made perfect sense for us because the clinic provides preven tative care, as well as sick visits and health maintenance appointments.”

Our approach gives every employee the option to go to the clinic at an affordable cost to them.”

PROTEIN FOR

NUTS ON-THE-GO

Pistachios

Pistachios

Having a benefit like CareTeam Corporate Health puts our employees first.”

The Wellness Program helps employees become aware of the contributing factors that increase their risk of heart disease, stroke and type 2 diabetes. The program focuses on improving lifestyle choices and adherence to medication management in collaboration with the worker’s medical provider.

“All of this aligns with our company cul ture of helping our employees live healthy lifestyles,” Whitlock said.

EMPLOYEE FEEDBACK

Most employees (96%) are engaged in Care Team services because they are pleased with the quality and accessibility of the service. Employees who sign up for the company’s medical plan have immediate access to the clinic. Workers who are not on a medical plan can go to the clinic for $5 per pay period and receive the same level of service as those with a medical plan.

“We have many part-time workers and younger workers who aren’t interested in full medical coverage but still need to go to the doctor at times,” Whitlock said. “Our ap proach gives every employee the option to go to the clinic at an affordable cost to them.”

Employees visit the clinic three to four times a year, on average, with 24% of workers identifying CareTeam as their primary care provider (PCP). The top reasons employees visit the clinic are for diabetic support and high blood pressure checks, along with vacci nations and wellness checkups.

“While COVID-19 drove up clinic usage, once people go to CareTeam, the level of care makes them come back,” Whitlock said. In fact, during its most recent annual review, the patient satisfaction hit 100%. “They receive much better care and focus and outcomes from attending the clinic, as it’s truly a PCP,” Whitlock said.

Patient feedback is collected at every visit and shared with Tiger Fuel monthly, and all communication from CareTeam to Tiger Fuel complies with the Health Insurance Portabil ity and Accountability Act.

“Some of the feedback from employees includes having to wade through a lot less red tape for appointments and tests, having ac cess to a PCP, being able to talk about multiple

health issues at one appointment, and having so many options for appointment times,” Arreguin said.

One employee noted what “a pleasure to have these folks available to help with health matters in such a user-friendly way,” while another said, “I love using the CareTeam services. The provider is fantastic—friendly, knowledgeable and very skilled.”

This model has allowed more employees access to health care on a regular basis, a goal that Tiger Fuel set out to accomplish.

“To us, CareTeam highlights how important the whole person is,” Whitlock said. “The last couple of years has taught us a lot in how mental and physical health impact workers. We’re proud we can offer an easy way for our team to go for health needs.”

While Whitlock acknowledges it’s not an inexpensive venture for the company, “it’s an extremely important investment into our people. Tiger Fuel’s leadership fully believes that and backs the CareTeam program.”

FUTURE HEALTH

Tiger Fuel isn’t stopping with CareTeam. The company plans to engage its entire communi ty of employees with more wellness opportu nities, such as a step challenge and hydration awareness month.

“We are on the brink of starting a larger employee wellness initiative that will build on the CareTeam clinic and our current wellness program,” Whitlock said.

The company will continue to evaluate its employee modifiable health risk status and develop creative programs and challenges to drive behavior change among its employees.

“We believe in doing things a little bit dif ferent, and it’s paid off for us. It’s not just the same old employment market, and you have to do more to attract the best workers,” he said.

“Having a benefit like CareTeam Corporate Health puts our employees first.”

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

CBD Opportunity

Q: CONSUMER INTEREST IN CBD PRODUCTS IS GROWING, AND RETAILERS IN MULTIPLE CHANNELS ARE COMPETING IN THE SAME SPACE. WHY SHOULD CONVENIENCE RETAILERS JUMP IN IF THEY HAVEN’T ALREADY?

CBD is still new enough to the retail space that there are plenty of opportunities for new players. Offering these products at the convenience level gives stores the opportunity to capitalize on the growing interest in CBD products. On top of that, many CBD products are offered at affordable prices, and smaller packaging sizes mean retailers can maximize profits within a small display space. Lastly, convenience store customers are typically looking for products to meet immediate needs, and cbdMD has a growing line of products that fit within catego ries focused on things like relaxation, sleep and energy. It’s a win-win.

Q: WHAT DO RETAILERS AND CONSUMERS NEED TO KNOW ABOUT HEMP-BASED CBD PRODUCTS? It’s quite simple: Cannabidiol, or CBD, doesn’t get consumers “high,” and neither do most of the other minor cannabinoids like CBG and CBC. THC is the active compound of cannabis that causes the “high” associated with cannabis products. There are a wide range of products that offer varying concen trations of minor cannabinoids which have different effects. CBD is one of over a hundred cannabinoids which naturally occur in hemp. Cannabinoids have been consumed in various forms throughout human history. Only recently have consumer products made from hemp-extracted cannabinoids gained a level of recognition. CBD and the majority of the other minor cannabinoids are not like THC; they do not impair consumers when ingested at any level.

Broad Spectrum products are hemp-based cannabinoid products that are considered “THC-free.” They may include CBD and other cannabinoids (like CBG or CBC), as well as at least one terpene found in hemp, but they have undetectable levels of THC.

Full Spectrum products are hemp-based cannabinoid products that include CBD, other minor cannabinoids and varying low levels of THC, as well as terpenes found in the hemp plant.

High Potency Full Spectrum products (sometimes referred to as Delta 9 THC products) have higher concentra tion levels of THC than standard Full Spectrum products. Microdose Full Spectrum products (also sometimes re ferred to as Delta 9 THC products) are specifically designed to have a very low fixed amount of THC per serving. They can be combined with other Broad or Full Spectrum prod ucts to achieve the desired result.

There is one constant with all cbdMD products: They are all de rived from hemp. The difference between marijuana and hemp (otherwise known as “industrial hemp”) is that hemp plants are specific strains of cannabis which are grown and cultivated in a way that results in less than 0.3% THC by dry weight.

Q: THERE ARE LOTS OF COMPANIES SELLING CBD PRODUCTS. WHAT SETS cbdMD APART? At cbdMD, we believe cannabinoids like CBD can truly be a difference maker in the lives of everyday people. The power of the hemp plant is just beginning to be understood, and cbdMD is at the forefront of both product and research innovation. We were the first pure-play CBD brand to go public on the NYSE: American (YCBD). We were one of the first brands to

What convenience retailers need to know about this emerging hemp-based product category.

expand into functional products that go beyond CBD to meet the needs of customers from all walks of life. We were the first, and are currently the only, company to achieve the NSF for Sport Certification for ANY CBD products, which means that our Certified for Sport product line ensures a customer will not fail a drug test and is the only product on the market suitable for first responders, drug-tested athletes, or anyone who has a job where they are subject to drug testing for THC.

cbdMD puts science first. To support the safe consumption of our products, we compiled an extensive dossier of safety data that has been reviewed thoroughly by toxicologists and various regulatory and certification authorities. cbdMD has completed clinical trials in dogs and humans. Data gathered from those studies will be used to communicate and educate our custom ers about the benefits of our products.

We’ve always been focused on ensuring all of our products are manufactured in clean, safe, GMP-certified facilities. We have taken that a step further by seeking out the most well-re spected third-party certification bodies in the United States and secured NSF GMP for Dietary Supplements. We test products in-house and provide accredited third-party lab results to our customers to ensure what is on the label is in the bottle. Whether with a QR code or direct on site, we’ve made it easy for consumers to understand exactly what’s in their wellness products. Customers have access to the full suite of testing that we complete for each product to ensure that they meet label claims. It should be noted that many brands fail to do this and provide “sample” COAs or COAs which are dated and not spe cific to a particular batch of product.

Q: WHAT UNIQUE OPPORTUNITIES DOES cbdMD OFFER CONVENIENCE RETAILERS?

One of the latest consumer trends we see is a significant increased demand for High Potency Delta 9 THC products, which do have higher concentrations of THC. Through re search and development, we’ve crafted products that unlock a whole new world of wellness options for consumers.

While we’ve experienced expansive growth in the Del ta 9 sector, the same is true for our gummy products. We’re constantly finding new ways to produce products that take advantage of a whole list of natural and proprietary ingredients, all designed to work together to achieve a functional goal.

We’re always evolving and perfecting the way we do things, regardless of what part of the business that includes. As retail and convenience opportu nities emerge, we’ll be the one constantly innovating to meet customer needs and open new sales opportunities for store owners all while offering the best products at the best prices. That’s the cbdMD difference.

Q: FOR ATHLETES, IN PARTICULAR, HOW DO cbdMD PRODUCTS FIT INTO THEIR FITNESS REGIMES?

When we first started cbdMD, athletes and recovery were at the core of what we did. If we could get these products into the hands of some of the hardest working people on the planet, then surely the every day person could get interested in those same products. We started with people who were open to the idea of CBD and have continued to grow our portfolio of big-name athletes to further solidify the message that hemp really can help anyone. From UFC World Champion Daniel Cormier to INDYCAR driver and 7x NASCAR Champion Jimmie Johnson, and many Olympic and extreme sports champions along the way, we’ve established our brand as one that is synonymous with sports of all sizes.

MLB recently announced it would welcome partnering with CBD brands which hold the NSF for Sport certification. And as the first and only CBD company offering products that are certified NSF for Sport, this will only draw further interest to our brand and our products from a vast array of different demo graphics ... in the end, benefiting everything cbdMD is planning with retailer relationships.

We at cbdMD are committed to helping our customers own their day. Entirely new groups of consumers are being exposed to the wealth of CBD products, and now’s the time to capitalize on giving the people what they want. Our customers do not want to have to worry about testing positive on a drug test for taking our products. The NSF Certified for Sport logo means that they will not face those negative repercussions. In this industry, being able to trust your brand matters.

This product has not been reviewed or approved for sale by the U.S. FDA, and it is illegal to sell this product under the laws of some states. You should check the applicable state and local rules before engaging in the retail sale of this product.

This interview is brought to you by cbdMD Inc., a NACS member.

Sibyl Swift, Ph.D. Vice President, Scientific & Regulatory Affairs, cbdMD Inc., CBD Industries LLC

Brian Marks

Chief Customer Officer, FDMC Channel Sales, cbdMD Inc., CBD Industries LLC www.cbdmd.com

EVOLUTION

BY RENEE PAS

Jo

How convenience retailers are rethinking their approach to management and employee expectations.

Acompany’s culture is defined as a way of thinking, behaving, or working that exists in an organization. That’s the clas sic dictionary definition. How that plays out in any given organization is an entirely different story, and it is less about dictating and more about listening.

Since culture is largely intangible, it is hard to pin down. “A company can say, ‘this is our culture,’ but it is really employees who dictate that. It is how they perceive it,” said Mi chael Raisbeck, chief people officer at Fikes Wholesale Inc., parent company of CEFCO Convenience Stores. He likes how employees at Fikes perceive the company today. “What I hear over and over is ‘I’m not a number,’ and ‘They know who I am,’” he said. Both of those statements reflect a connection to the company beyond a paycheck, something Fikes has worked hard to achieve.

This year marks the fourth year of Fikes’ culture change efforts. One of the key com ponents of the change—and one that many leaders are working on—is shifting from a perceived command-and-control leadership style to a decentralized style, where deci sion-making and daily operations entre preneurial leadership comes from middle and lower management teams. “That meant some people had to let go of the reigns a little bit,” said Raisbeck, which proved a tough challenge for some. (This approach is one of the management styles explored during the NACS Executive Leadership Program at Cornell, endowed by Reynolds. For more information, go to www.convenience.org./ education/NACS-Executive-Education .)

CULTURE CUES

CEFCO, Kum & Go and Sheetz

Open communication is an important part of the cultures at each of these three companies, HR executives said. Their views provide some insight into how culture takes shape day by day.

Michael Raisbeck, chief people officer at The Fikes Companies, CEFCO Convenience Stores: “Senior-level leaders visit our stores every day, and employees are asked for their feedback on what we are doing well and what we can be doing better. It’s a smaller company feeling, even though we are not a small company.”

Stephanie Doliveira, vice president of human resources at Sheetz: “Staying connected to our team members is really something led by the Sheetz family that has spilled over to the Sheetz leadership team. The family atmosphere perme ates throughout the halls of the Sheetz offices. If anyone has an idea, they are welcome to share it.”

Matthew Spackman, senior vice president of the Grow People department at Kum & Go: “Our annual employee engagement survey offers insight into how we are progress ing with employees. While it can be somewhat subjective, it’s also a great way to track how people feel about some thing: Ask them.”

That mental shift to a more decentralized approach is in line with how the compa ny views its headquarters staff today. In fact, Raisbeck said, “We don’t really look at ourselves as a corporate headquarters. We view everything more as a customer support group. Yes, the parent company sits in Tem ple, Texas, but most of the business engages from multiple offices around the country to support our people on the front lines.”

Raisbeck believes the corporate culture changes are a contributing factor to growth. He noted that CEFCO has enjoyed three con secutive years of increased inside sales, fuel gallons sold and food sales. “I connect a lot of it to that culture change,” he said, as well as an increased focus on food sales with the company’s new CEFCO Kitchens. Fikes also opened a commissary in November 2021.

Notably, not everyone made the transition as Fikes went through its culture change efforts. “Some tough decisions were made,” Raisbeck said. In some cases, team members themselves opted out.

Raisbeck said the top concern at Fikes is attracting the right people at every level. “It’s not necessarily true today that the higher up you go, the longer you stay. Certain positions are in high demand and are transferable [to other industries], such as IT security,” he said. “The most difficult thing right now is being able to find, identify, land good talent and keep it. It has always been a struggle, but now, keeping a hold of good people is a business imperative.”

TRANSFORMING THE WORKPLACE

Even corporations recognized as best-inclass, such as Sheetz, struggle with retention at the corporate level. “Although we work hard to retain our employees, people do leave,” said Stephanie Doliveira, vice presi dent of human resources at Sheetz, adding that the Pennsylvania-based company is “dedicated to strengthening our culture and work environment while meeting the needs of our changing workforce.”

In today’s workplace, keeping people means considering unique benefits like greater flexi bility for office-level staff. “We are committed to finding a way to be flexible,” Doliveira said. Flexibility was a key goal for shifting from a work-at-home environment to working back in the office, and allowing employees to have the flexibility they crave, while also main taining a collaborative, innovative environ ment that includes social interaction.

“Listening to employees is incredibly im portant to everything we do. We have heard loud and clear that employees appreciate the flexibility to work remotely,” said Doliveira.

Kum & Go continues to assess its workfrom-home strategy, as well. Earlier this year, the corporate headquarters in Des Moines, Iowa, remained open but employees were not required to work from that location. Everyone was welcome, but it was not a requirement, said Matthew Spackman, senior vice pres ident of Kum & Go’s Grow People department.

Like other convenience retailers, Kum & Go set a date for employees to return to the office, then pushed it back as new COVID-19 variants emerged. As employees continue to return, a new rule allows corporate employ ees to work at home eight times per month. Associates work with their leaders on which days are remote, Spackman explained, adding that there may be specific days a team leader wants everyone together, like Mondays.

IT HAS ALWAYS BEEN A STRUGGLE, BUT NOW, KEEPING A HOLD OF GOOD PEOPLE IS A BUSINESS IMPERATIVE.”

“While working remote can be efficient, it might not always be the most effective,” Spackman said. “We want to make sure the communication is effective, that people are happy with their work … the softer sides of relationships are most easily strengthened when people are in the same place. We want to give people the advantage of working at home and not spending a lot of time commut ing to the office but also preserve the culture that exists at headquarters.”

DIVERSITY, EQUITY AND INCLUSION

In addition to adjusting to a more flexible work environment, both Kum & Go and Sheetz are advancing diversity, equity and inclusion (DEI) and building on their commit ments to an inclusive culture.

“LGBTQ issues have been an area of con cern for Krause Group [parent company to Kum & Go] for a while and an area the compa ny wants to continue to support,” said Spack man. To further its commitment to inclusion efforts, the company hired Heather Schott as its diversity, equity and inclusion manager in 2020, and implemented DEI initiatives like hosting guest speakers and providing a leadership training program.

Spackman said that establishing a formal DEI role took the effort that the company long supported and gave it more traction. “When a DEI committee was established, the inter est level grew within the organization,” he said, adding that Schott’s role brings formal expertise and is helping the company move forward. “We feel we are making good prog ress as an organization,” he said. “We commit to it publicly; we need to live it internally.”

The public commitment includes ways that go beyond financial donations. For example,

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last summer Kum & Go collaborated with a clothing designer for Pride Month on a line of merchandise sold at stores, with proceeds benefiting the Transgender Law Center. For each “Kum & Gay Rights” shirt and tank sold, a $10 donation was made to a suicide and crisis organization for LGBTQ youth.

Krause Group established formal objec tives and metrics in place around DEI goals, including a broader range of representation in leadership positions. The company uses an annual employee engagement survey as a guidepost on some of those metrics.

For Sheetz, 2022 also brought a renewed commitment to DEI. “A team of executives and leadership has spent the last year really working behind the scenes on educating ourselves on best practices and immersing ourselves in learning,” Doliveira said. “We have launched a corporate initiative around diversity, equity and inclusion.

“We believe that creating an inclusive work environment based on respect of each employee’s identity will make us a stronger organization. We want an employee to feel comfortable bringing their whole self to work,” Doliveira said.

Doliveira described the culture at Sheetz as “special and unique.” The idea of work family comes up a lot, and the Sheetz leadership team, which includes Sheetz family members and nonfamily members, wants to hear ideas and suggestions from others. “It’s a very collaborative culture,” she said. “It all stems from a common goal of working together to support store operations.”

Building a team with longer retention often occurs when there are more connections be tween the person and the workplace, such as the same ethnicity, gender or age, explained James Pogue, a consultant, coach and educa tor in the field of inclusivity and diversity. “It

creates a stickiness between the person and organization when there are more connec tions,” he said.

Companies that want to attract employees should focus more on diversity and inclusion, suggested Pogue. “That’s going to be even more important to be relevant to the younger workforce, particularly top-tier candidates,” he said. “I don’t believe young people today are experiencing any more difficulty around self-identity than in the past, but leaders should understand the difference is that they are allowed to express it today. They expect to come into their work environment and be accepted for who they are.”

Companies can embark on their diver sity journey with inclusionary leadership, beginning with the leadership team. “Maybe the leadership team does not look all that diverse—that’s OK. They can still be more di verse as leaders than ever before,” Pogue said. “Consider factors such as age, disability, even women—all of that works to engage in greater diversity. Sometimes the best on-ramp is a piece that we connect with easily.”

Having a strong sense of what you believe in and how it impacts you as a leader is criti cal, Pogue believes. “Leaders must be willing to push themselves. … You don’t want to be the one to say, ‘Where is my organization going? If I can find out, I can lead them.’”

His biggest piece of advice for leaders is this: “Start on the journey, then keep walk ing the diversity journey, and demand it of your team.”

Renee Pas ’ writing draws from both her c-store background and her more than 20 years writing about various retail channels. She can be reached at reneepas4@gmail.com .

BELIEVE YOUNG PEOPLE

ARE

ANY MORE DIFFICULTY AROUND SELF-IDENTITY THAN IN THE

BUT

SHOULD

THE

IS THAT THEY ARE ALLOWED TO EXPRESS IT TODAY.”

BY SARAH HAMAKER

Iin the United States and beyond. In fact, nearly all of Japan’s convenience stores, called konbinis, stay open 24 hours a day, seven days a week. In the U.S., travel centers catering to truck drivers like Love’s Travel Stops and Pilot Flying J have long been open all the time, but other convenience store chains also find never closing to be an added value to their customers.

These convenience retailers say operating 24/7 sets them up for success.

“Convenience stores by their very nature are essential to their communities, providing food, fuel and drinks to travelers and locals alike,” said Jeff Lenard, NACS vice president of strategic industry initiatives. “Stores near highways and those close to factories, hos pitals and warehouses with 24/7 operations are more likely to be open 24 hours to serve those workers and to prep for the next day’s morning rush.”

Convenience retailers take seriously their mission to serve their communities and that can mean operating 24/7. “Our mission at RaceTrac is to make people’s lives simpler and more enjoyable,” said Eric Ritter, executive director of store support for RaceTrac. The Atlanta-based chain has more than 500 loca tions throughout the south. “To do that, we believe we need to be available for our guests to get ‘Whatever Gets Them Going,’ regardless of the hour.”

“Our customers like that we’re there for them, whether they’re leaving early on a family road trip or coming off work from a warehouse job,” said JT McGlynn, director of operations for The PRIDE Stores Inc., owned by Par ent Petroleum Inc. and based in St. Charles, Illinois. The majority of overnight customers include truckers and warehouse workers who stop by daily for drinks, snacks and fuel. “Our customers count on us to be open when other stores are closed,” McGlynn said.

WHY 24 HOURS

The reasons for operating 24/7 are similar for these retailers. “RaceTrac has maintained 24/7 operations at most of our stores for well over 20 years now,” said Ritter. “While we constantly assess and adjust (where needed) what critical tasks are performed on what shifts, we have not made major adjustments to our hours.”

RaceTrac makes its round-the-clock op erations work by establishing standardized training, effective scheduling, good processes and a safety-first mindset. “This allows us to maintain our facilities while still serving guests regardless of the hour,” Ritter said.

All 16 of The PRIDE Stores operate 24/7. “We’re always available for the customer, and

we are always ready for the next day,” said McGlynn. In recent years, he’s seen a handful of other c-stores cease 24/7 operations in the Chicago area, but it’s not something PRIDE has considered. “We try to take convenience to the next level by making it a priority that we are there to serve our community,” McGlynn said. “And that includes being open all the time for our customers.”

McGlynn pointed out the need for overnight shift workers to have a place to pick up food or fuel when going to or getting off work. “While we do close our foodservice or quick-service restaurants overnight, we still have fresh grab-and-go items available, along with all the other products stocked at each store,” he said. All coffee and fountain drinks are also available during all hours of operation.

Rutter’s has operated nearly every store 24 hours for a long time. “We make 24-hour operations work by having great manage ment and employees in our stores,” said Chris Hartman, senior director of fuels, forecourt, advertising and construction for Rutter’s. “In this day and age, being open 24 hours is a com petitive advantage that makes us a destination stop in customers’ minds no matter the time.”

THE 24-HOUR CHALLENGE

Never closing presents its own unique set of circumstances for retailers. For example, The PRIDE Stores sometimes struggles with find ing enough workers for the overnight shift. “While the majority of our overnight staff we’ve had for years, finding new workers for the third shift can be difficult at times,” Mc Glynn said. While some stores have a single staffer on-site overnight, others have two or more employees on staff and security.

For PRIDE, the third shift is key to its over all operations. “Our third shift is really about getting ready for the next day’s business—we see it as a very important position,” McGlynn said. “When you have the right third shift, it sets you up for a more successful morning.”

RaceTrac pays close attention to store volume and traffic, as well as which items are for sale and when, especially overnight.

“In many cases, our third shifts are a little slower, and we take on more detailed clean

“While we do close our foodservice or quickservice restaurants overnight, we still have fresh graband-go items available, along with all the other products stocked at each store.”

ing activities. In order to set our teams up for success, we have to make some adjustments at sites that have heavier overnight traf fic,” Ritter said. “This could be as simple as increasing our staffing overnight or shifting the cleaning schedule on a critical piece of equipment to a slower time of day.”

SAFETY FIRST

All these retailers say security is vital to ensuring the safety of both customers and employees. Both RaceTrac and PRIDE have professional security at designated locations, as well as safety procedures in place to protect their workers and customers.

“We have strict policies in place to keep our teams safe at all locations,” Ritter said. Those policies include telling employees to stay inside the building and locking the doors and serving customers through a window if a worker is alone or feels unsafe. “We also pro vide personal panic alarms for our managers to wear, which directly contact local authori ties if activated.”

In addition, PRIDE and RaceTrac proac tively seek to develop relationships with local law enforcement within the communities they serve by providing free fountain and coffee drinks to police and other emergency workers. (For more on store security, see “Security Check” in the September issue.)

OVERNIGHT STAFFING

These retailers say that having the right people working overnight makes a huge difference. Many third-shift workers have been with PRIDE Stores for many years. “You have to make them part of the employee community and keep them engaged,” McGlynn said. “You want them to know they are not the forgotten shift but an integral part of the business.”

PRIDE Stores has managers update the third-shift workers in person at least once a week to be sure the employees are aware of any companywide sales or employee policy updates. “I’m a big believer you get out what you put in, which means the more tasks and programs you let people be a part of, the better employee retention you’ll have,” McGlynn

said. “For example, we make sure they are assessed for raises and annual wage reviews the same way as our other employees.”

RaceTrac recognizes not every employee is suited to overnight work. “It’s generally more difficult to find team members who are an ideal fit for overnight work,” Ritter said. “It’s also challenging to handle unexpected callouts, as fewer people are readily available to come in at a moment’s notice to pick up a shift overnight.”

That said, RaceTrac has found the over night schedule to work well for many people’s lives better than day shifts for the flexibility it affords for handling daytime commit ments. The chain also pays higher rates for overnight workers.

Rutter’s also incentivizes the third shift with additional pay to help with staffing. “We see the overnight shift as giving job oppor tunities to more people, including those who are furthering their education during the day and are looking to work as well,” Hartman said. “For Rutter’s, being open 24 hours gives customers another reason to say, ‘Rutter’s … Why Go Anywhere Else?’”

A 24-HOUR FUTURE

Retailers considering 24/7 operations should ensure they have the right security policies in place as well as an overall idea of specific overnight tasks, such as deep cleaning food service machines or prepping for the morning rush. “We’ve always viewed the third shift as the foundation of our business,” McGlynn said. “We don’t measure the success of our overnight shifts by sales numbers alone—we view it as essential to getting our stores ready for the next day,” he said.

“More than anything, it’s really about being there for our guests whenever they need us,” Ritter pointed out. “That’s what convenience is all about.”

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

“We make 24-hour operations work by having great management and employees in our stores.”

Why Adding Ultra-Fast EV Charging Is a

BY SARAH HAMAKER

Convenience retailers have been hearing about the coming electric vehicle (EV) revolution for years. Today, buoyed by unprecedented industry and government support, consumer and fleet EVs are forecast to number more than 11.6 million by 2025, which is up from 6.7 million in 2021. These combined steps and support contribute to EVs becoming more cost effective and practical. This means the current demand for ultra-fast charging stations will accelerate further. Despite this, the U.S. still lags behind Europe in the number of EV chargers available to the public and EVs on the road.

That will likely change soon, given the Biden Ad ministration’s National Electric Vehicle Infrastruc ture Formula Program (NEVI), which includes a goal of having EV chargers every 50 miles and

A quick rollout of ultrafast chargers—without costly utility upgrades in low-power areas—is in reach.

no more than one mile off high-use corri dors. “The logistics and cost of adding EV charging capabilities to their forecourt have pushed many retailers to abandon hope of being able to provide this service,” said John Tuccillo, global head of corporate and gov ernment affairs, ADS-TEC Energy. “How ever, technology advancements have eased many of the barriers convenience retailers face, opening up a potential revenue stream for the industry.”

This presents a golden opportunity for convenience retailers—including those that offer fuel—to provide ultra-fast EV charging stations—and the food and drinks that EV drivers want as they wait.

TECHNOLOGY BASICS

There are three levels of EV charging. Levels 1 and 2 are typically found in homes, as the charging stations use readily available AC power. Despite convenient install, these chargers take hours to fully charge a vehicle. Level 3—or Direct Current Fast Charging (DCFC)—can charge up to 60-80% of a ve hicle’s battery in approximately 30 minutes. That’s an improvement but still significantly longer than the 10 minutes or less a typical consumer would expect to spend at a tradi tional service station. On top of that, DCFC requires access to high-powered service (typically 300kW).

Additionally, installing the DCFC stations can create a triple-hit with large financial investments in installation and charging equipment, plus permit requests and weeks of disruption as forecourts are dug up to ac commodate the chargers. Retailers also need to ensure their infrastructure provides access to high-powered service (typically 300kW). In many places, this means requesting (and paying for) the higher powered electrical ser vice upgrades and extensions, which could take months and require additional digging and installation, followed by electrical rate hikes given the site demand increases.

“Even as EVs are becoming more widely available, the demand for fast, convenient charging is nowhere near being met,” said Tuccillo. “Part of the challenge lies in the

existing electrical grid, which isn’t prepared to meet the need for high-output, fastcharging stations.”

Unless the charging station is installed near high-power transmission and distri bution sources, or along a major freeway corridor, it’s likely limited in its ability to access the high-powered service necessary to offer what the EV industry refers to as fast charging.

One solution is ADS-TEC Energy’s battery-buffered, ultra-fast ChargeBox charging system, which can connect to the current low-to-medium-power grid most retailers operate on. This technology allows convenience stores to facilitate a transition to EVs in an economical way, so they can quick ly ramp up to provide ultra-fast charging.

The genius of ADS-TEC Energy’s battery-buffering technology is how it pulls from existing electrical sources—which can be as low as a 50kW supply—and transforms it into the higher voltage charge needed for electric vehicles. “Our technology also allows the retailer to provide one charging model that can meet the demands of each EV make and model,” said Tuccillo.

ADS-TEC Energy’s ChargeBox enables cus tomized, ultra-fast charging using the existing power from the area’s electrical grid without disruptive, expensive grid expansion. Its in ternal battery buffer is filled from the existing electric grid on a lower power input rate. It then discharges the stored power at the higher output and rate needed to recharge the connected EV at its individual requirement.

The ChargeBox automatically registers how much current the plugged-in vehicle needs and adjusts the output accordingly. When a high-demand vehicle like a Porsche Taycan plugs in, the ChargeBox delivers up to 320kW, well beyond what the 270kW Tay can needs. When a Chevy Volt plugs in, the ChargeBox delivers the lower charge level that the Volt requires. The end user receives an ultra-fast charge on site as the ChargeBox recharges itself, ensuring it’s always ready for the next customer.

The ChargeBox also operates on a lower cost by minimizing peak demand charges.

John Tuccillo Global Head of Corporate and Government Affairs ADS-TEC Energy www.adstec-energy.com

This article is brought to you by ADS-TEC Energy, a NACS member.

Even as EVs are becoming more widely available, the demand for fast, convenient charging is nowhere near being met.”

ChargeBox charging a 150kW Audi e-tron in minutes instead of hours, with up to 320kW available, on existing power-limited grids without additional electrical infrastructure upgrades.

Standard, non-battery-buffering DC chargers that require 300kW of power can be subject to peak demand charges, especially if more than one vehicle is charging at the same time.

A RETAIL SOLUTION

With its decentralized battery-buffering plat form and compact size, the ADS-TEC Energy ChargeBox can be easily situated on a retail er’s existing forecourt without disrupting op erations. “Our ChargeBox yields a substantial 30% lower total cost of ownership compared with other EV chargers, which can help retail ers become an EV destination quicker,” said Tuccillo. “In addition, the ChargeBox is com patible with many EVs and can be installed in a few weeks, allowing retailers a faster return on their investment as well as minimal disrup tion to their normal business.”

E-mobility startup JOLT Energy has part nered with ADS-TEC Energy to accelerate the deployment of ultra-fast charging sta tions in major cities in Europe and the United States. Five thousand ultra-fast charging sta tions are planned in Europe and the U.S. by 2027. “The introduction of ultra-fast charging is progressing too slowly due to the enormous investments,” said Maurice Neligan, CEO, JOLT Energy Group. “That’s why, from our point of view, you have to leverage all the possibilities that exist to finance a very fast e-charging infrastructure.”

Currently, installation at gas stations has begun, with plans to put in 120 ultra-fast chargers from ADS-TEC Energy at 60 ESSO locations operated by EG Group in key German cities within the next six to eight months. “For us, speed of deployment and the

flexibility to provide high quality ultra-fast charging in large population centers is key. The German charger and battery technology from ADS-TEC Energy is best in class, in terms of power, quietness and charging time,” said Neligan.

He pointed out how EV charging requires a different business model than selling fuel or snacks. “While on the surface the entire process—from length of customer stay to payment to dealing with electricity—appears the same, it’s radically different,” Neligan said. “EV charging is highly digital, whereas mineral oil and fast-food sales, for example, are quite analog in the sales process.”

Introducing ultra-fast charging into the existing footprint of a convenience store requires getting adequate electricity to the site as well as finding an affordable way to add EV chargers. “For most gas station and convenience store operators already working on tight margins, figuring out how to finance this level of equipment is often too challeng ing,” Neligan said. “Partnering with a compa ny like JOLT can give the retailer quicker and more affordable access to chargers.”

JOLT Energy sees adding EV chargers to existing convenience forecourts as a major advantage. “The EV driver is captive for a certain period of time, usually 20 minutes,” Neligan said. “During this time, they gen erally grab coffee or snacks, which are good margin categories for convenience retailers.”

With technological advancements like ADS-TEC Energy’s ChargeBox, convenience retailers can more easily join the EV revo lution and provide another needed service to their customers. EVs are here to stay, and the more retailers can accommodate these drivers with ultra-fast charging solutions like ADS-TEC Energy’s ChargeBox, the more EV motorists will view convenience stores as their driving partners.

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

Partnering with a company like JOLT can give the retailer quicker and more affordable access to chargers.”

Midterm Prime Time

Primary season has all but conclud ed, and that means we are enter ing the heart of the 2022 political season. It is during this period when the most money will be spent on message delivery. Election prime time is shorter than ever. Before, it consumed the period between Labor Day and Election Day, but early voting procedures in most states have now created an “election month,” and many county clerks and election officials will begin accepting either mailed or in-person ballots during the second half of October.

The Senate races are taking full shape with all but one key state, New Hampshire, now having their general election nominees chosen. The New Hampshire primary, always one of the latest in the country, was scheduled for September 13. At press time, it appeared set to produce a Republican nominee who should be relatively well positioned to win the general election in what is one of the country’s most defined swing states.

BY JIM ELLIS

The 2022 Senate map features 34 regular elec tions and one special election in Oklahoma held to select a replacement to serve the balance of resign ing Sen. Jim Inhofe’s (R) final term. Republicans must defend seven more seats than Democrats; and, when looking at the 14 Democratic defense seats, the party is really only vulnerable in four

Boris Zhitkov

Getty Imges; JasonDoiy/Getty Images

of those: Arizona (Sen. Mark Kelly), Georgia (Sen. Raphael Warnock), Nevada (Sen. Cath erine Cortez Masto), and the aforementioned New Hampshire (Sen. Maggie Hassan).

Republicans also must defend six open seats as part of their 2022 task, three of which are highly competitive. The Pennsylvania seat (Democrat John Fetterman vs. Repub lican Mehmet Oz) is the state at this point in the election cycle looking most likely to flip. Fetterman, the Keystone State Lt. Governor who suffered a serious stroke right before the May primary election, has opened consistent leads over Dr. Oz, and it will be a substantial feat at this point for the Republicans to turn the trajectory of this race.

RECORD PRIMARY TURNOUT

The key point in the Pennsylvania Repub licans’ favor is the primary turnout, which is an indication of political enthusiasm and

could be a precursor for the general election. Both parties increased substantially in 2022 primary turnout when compared with the last midterm election in 2018, but Republicans almost doubled their turnout.

A total of 92% more people voted in this year’s Republican primary than four years ago. In fact, this number represents even more people than those voting in the 2020 Pennsylvania presidential primary, which simply doesn’t happen. Therefore, the general election turnout model could develop in the Republicans’ favor.

Another off-the-charts primary turnout state was Georgia. In fact, the Republican participation percentage in this state—110% higher in comparison to the 2018 midterm election—even eclipsed the Pennsylvania number.

Though Sen. Warnock (D) has a large lead in financial resources over Republican Herschel Walker, the turnout model and Gov. Brian Kemp (R) doing very well against Democrat Stacey Abrams could help pull the Senate race over the finish line. Though Sen. Warnock appears to be running the better campaign, he has yet to pull away from Walker in polling. Ten surveys were publicly released in July and early August, seven of which Sen. Warnock led, but in only two was the preference margin beyond four points.

Arizona Sen. Kelly (D) looks to be opening a significant lead over Republican venture cap italist Blake Masters, but he also held similar margins over then-Sen. Martha McSally (R) in the 2020 special election yet only scored a two-point win.

Nevada and New Hampshire are key to any Republican hopes of claiming a small Senate majority. Both swing states are close in polling, and they become must wins for the GOP should Dr. Oz lose the Republican seat in Pennsylvania.

REPUBLICANS EYE THE HOUSE

The House looks much better for Republicans, since the GOP still remains the clear favor ite to claim a new majority in the November election. Early leadership predictions of Re publicans winning 40-50 seats in the House now seem too optimistic, especially when

Victor

are key to any Republican hopes of claiming a small Senate majority.

year, which leads to a political stabilization of

himself a former House member, guided through the legislature could yield four Republican seats. The strongest Democratic post-redistricting state is Illinois, where the new congressional map could allow the party candidates to net three seats.

Should the Democrats hold and increase their Senate majority, Republicans winning the House becomes all the more important to give them the ability to stifle some of the president’s agenda.

GOVERNOR RACES

A total of 36 governors’ races are on the ballot, 26 of which appear to offer some level of com petition. Eight of the offices are open in 2022, mostly due to term limits taking effect. The only open seat not dictated by a term limit is in Massachusetts, where Gov. Charlie Baker (R) chose not to seek a third term.

Most of the general election competition lies in the West, as gubernatorial races in Arizona, Nevada, New Mexico and Oregon are all in toss-up mode. The Midwest features tight gubernatorial contests in Kansas and Wisconsin, and there is major competition in Michigan and Ohio, and in the Mid-Atlantic, possibly Pennsylvania. Texas and Georgia are the two southern states worth watching, as is Gov. DeSantis’ re-election run in the Sun shine State.

Democrats. Seven members have lost through redistricting pairings or unfavorable maps (five Democrats and two Republicans), four Republicans who voted for former President Trump’s impeachment have fallen, and two Republicans and a Democrat were defeated because of ideological or ethical reasons.

After the large number of special elections during this election cycle, Republicans are just a handful of seats from already capturing the majority. A net gain in the mid-20s would award them a majority in the low-to-mid 230s, which is well beyond the minimum 218 to wrest control away from the Democrats.

Republicans look to Florida as the state where they can reap the largest gains. The redistricting map that Gov. Ron DeSantis (R),

Two open seats are primed to flip from Republican to Democrat, Maryland and Mas sachusetts, while the GOP could score con version gains in several of the aforementioned states, particularly in the West and Midwest.

Political prime time will change the out come of some of these projected races, and we will again see a large number of close results. With so many states now allowing ballots to be received and counted in the post-election period, the total universe of final results may not be complete until Thanksgiving.

Jim Ellis is a 37-year veteran of politics at the state and national levels who analyzes election data for major corporations, associations and legislative advocacy firms. He is president of Ellis Insight LLC. He can be reached at jim@elllisinsight.com

Do You

Cryptocurrency acceptance and kiosks are growing in the c-store industry.

BY MAURA KELLER

Cryptocurrency is still in the early stage of development in the con venience-store industry. Only a handful of locations (less than 5% of total stores) are accepting this type of payment, while slightly more than 10% have some form of a bitcoin kiosk, according to one crypto industry leader. However, crypto is starting to catch on in the c-store world.

“Self-service digital currency machines (DCM), sometimes called bitcoin ATMs (BATM) or bitcoin teller machines (BTM) are still relatively new to the conve nience environment but becoming more prevalent,” said Michael Tomlinson, chief revenue officer at Coin Cloud, which has nearly 6,000 DCMs, half of which are located in convenience stores, including 7-Eleven, Allsups, Cum berland Farms, Royal Farms, Thorntons, Yesway and several other c-store partners.

Convenience retailer Circle K, owned by Canada-based Alimentation Couche-Tard Inc., was reportedly the first major retail chain to deploy bitcoin ATMs in its stores in 2021 via an agreement with Bitcoin Depot. The Atlanta-based fintech company, which in August struck an $885 million deal with GSR II Meteora Acquisition Corp. to go public, has more than 7,000 kiosk locations in 47 U.S. states and nine Canadian provinces, where users can convert their cash into bitcoin, ethereum and litecoin. Through a partnership with an unnamed payment solutions provider, Bitcoin Depot said its BDCheckout platform also enables customers to fund their Bitcoin Depot accounts with cash at more than 8,000 locations at major retailers, including Circle K. Despite recent downturns in cryptocurren cy valuations, interest is still growing in cryp to and its potential to positively contribute to the future of financial services.

counts or those who regularly send money to family members living outside the U.S.

“The majority of NCR’s customers that offer foreign remittances powered by the bitcoin net work are convenience retailers, and the growth in self-service kiosks will increase access to underserved customers,” Wilkinson said.

As Wilkinson explains, consumer adoption has grown steadily in recent years, with global crypto ownership estimated to exceed $320 million, according to a study by TripleA, a company that evaluates how consumers and businesses are connected through blockchain technology and cryptocurrency.

“As more consumers own cryptocurrency, particularly younger generations, retailers will expand ways to offer and accept it at their stores,” Wilkinson said.

While still early in the adoption cycle, con venience retailers are increasingly accepting cryptocurrency payments for purchases. For example, Sheetz, based in Altoona, Pennsyl vania, became the first convenience retailer to accept bitcoin and other digital currencies in-store and at the pump in 2021.

“At c-stores, cryptocurrency use cases surrounding on-ramps and cross-border pay ments are where we’ve seen the most growth, and we believe paying for goods and services is the next area poised for a strong uptick in adoption and usage,” Wilkinson said.

THE CRYPTO CUSTOMER

GROWTH POTENTIAL

The number of cryptocurrency ATMs from various providers has surpassed 39,000 world wide, and c-stores play a big role in this business segment, representing more than half of all locations. The U.S. has more than 34,000 crypto ATMs, accounting for nearly 88% of the global market, according to coinatmradar.com data.

David Wilkinson, president and general manager of NCR Retail, notes that ATMs that enable customers to purchase bitcoin and other cryptocurrencies are widely deployed by convenience stores and are being enhanced to offer additional digital financial services, especially for people without U.S. bank ac

Understanding the crypto customer is para mount for the success of crypto in the c-store environment. David Charles, president and owner of Cash Depot, explained that crypto is here, and people do buy it.

“There is a cash customer who will buy crypto in convenience. So, if you understand who your crypto customer is, it’s the same customer that uses ATMs; the same customer that does pay at the pump; the same customer that pays cash for lottery tickets, beer and cig arettes. The cash customer who does every thing in a cash environment also does cash in crypto. And they pay a premium to do that in cash” in terms of ATM fees.

Charles also stressed that the business cost of serving crypto customers, along with the

“At c-stores, cryptocurrency use cases surrounding on-ramps and cross-border payments are where we’ve seen the most growth, and we believe paying for goods and services is the next area poised for a strong uptick in adoption and usage.”

store space, the equipment and the couri ers, is expensive for merchants and crypto operators alike.

“To make it work, you need a pretty high volume of business for everybody to make money—something in the range of $1,500 a day,” Charles said. “The problem is you can no longer really make money in the crypto business in the c-store if you are a crypto operator in the traditional sense. For the last two years, people would install a $6,000 or $7,000 machine, spend $600 or $700 a month running it, and then pay rent to the merchant at pretty high numbers and maybe even give them a piece of the revenue,” he said.

To offset the cost of deployment, Charles said the next-generation solution is to incor porate crypto services into equipment that does multiple functions.

“My advice to the merchant is to know the company you’re doing business with. Finding a good credible partner is one of the critical keys to look at right now,” he said. “Don’t lose sight of the fact that you’re providing a service to your customer. And you’re getting revenue from two square feet of floor space, and if you have it available and if the rent is acceptable, that’s pretty much the whole deal.”

tocurrency within his Sherman, Texas-based company’s c-stores has proved to be less than ideal because of the currency’s volatility.

“It was the hot thing for Wall Street, and of course, lots of people jumped in and start ed their own crypto companies,” Douglass said. “We decided that we would try it with bitcoin. It started off paying some, but we haven’t been paid by bitcoin yet this year. So, it’s really slowed down.”

While Douglass has six cryptocurrency machines in his c-stores, they are “only being used as a depository at this point,” he said.

“We also don’t accept any payments in cryp tocurrency in our stores at this time.”

DUE DILIGENCE

For c-stores interested in exploring cryp tocurrency, Wilkinson advised retailers to identify partners that can help internal stake holders understand the technology and build consensus on strategic priorities for their brand. Also, retailers should involve represen tatives from across their organization to make decisions regarding infrastructure, compli ance, security and go-to-market strategy.

“As retailers progress toward develop ing detailed designs, seek out technology partners that have the licenses and proven operational experience to provide your cus tomers with a secure and compliant solution,” Wilkinson said.

C-stores are optimized for speed and efficiency, so it’s also important to consider the user experience. For example, returns and refunds take on a new dimension when dealing with fluctuating cryptocurrency exchange rates.

CHALLENGES APLENTY

As with any new technology or innovation, cryptocurrency brings additional challenges for c-store retailers. Many of these depend on where retailers are in their cryptocurren cy journey.

For Bill Douglass, chairman of Douglass Dis tributing, the adoption and integration of cryp

“Working with an experienced service designer on a small number of pilot loca tions will enable you to iterate toward a low-friction design that is intuitive for both employees and shoppers,” Wilkinson said.

While education and awareness of digital asset technologies continues to improve, many retailers have yet to prioritize the development of a holistic crypto strategy. As Wilkinson pointed out, the market may have cooled off in recent months, but counterintu itively this represents the best time to begin

“To make it work, you need a pretty high volume of business for everybody to make money—something in the range of $1,500 a day.”

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planning and executing without the noise and distraction of an overheated market.

Of course, for some c-store retailers, the adoption of cryptocurrencies is a differenti ator, with early adopters attracting new cus tomers and enhancing their brand perception. For others, the crypto environment needs to stabilize in order for them to become true proponents of this digital currency.

value to both consumers and retailers,” Wilkinson said.

The experts at NCR expect to see contin ued growth in cryptocurrency-enabled ATMs and foreign remittance, and while growing off a low baseline, payments and loyalty pro gram use cases are poised for a strong uptick in adoption.

“Crypto has taken longer to mature in terms of providing a widely adopted alterna tive to the traditional payments system, but there is still a significant opportunity there,” Wilkinson said. In a June 2022 Deloitte study, nearly 75% of responding retailers surveyed in December 2021 indicated that they plan to accept cryptocurrency payments within the next 24 months. About 85% of merchants surveyed said they expect suppliers in their industry to widely adopt digital currency payments within the next five years.

“This alternative form of payment is con tinually being adopted by a growing number of retailers, including convenience stores,” said Ray Taddeo, vice president of sales at Coin Cloud.

Taddeo said cryptocurrency is a benefit to the retailer because it’s a cheaper form of payment acceptance than credit and debit cards, offering a way to reduce swipe fees. Holders of digital currencies are also looking for a way to use their tokens in retail without the hassle of converting to fiat and reverting to traditional payment methods.

LOCKING IN LOYALTY

“An emerging opportunity is the use of digital assets as a differentiator for customer loyalty and rewards programs. Whether as points paid in bitcoin or a digital collectible, retailers are exploring novel ways to engage with their cus tomers using digital assets,” Wilkinson said.

Most retail loyalty programs today are traditional earn-and-burn programs where consumers earn points as they shop. How ever, as consumers build up rewards, these assets represent a liability for retailers that can be redeemed unpredictably.

“By integrating digital assets like bitcoin into loyalty programs, the incentives can become assets and bring broader market

“In addition to offering customers the ability to buy and sell with a digital currency machine, the retailer will be able to provide customers with a way to buy, sell and spend their holdings efficiently,” Taddeo said. “We continually advise retailers to explore this space and understand the opportunity to save on payment costs as well as offer addition al forms of payment acceptance from their consumers.”

Maura Keller is an awardwinning freelance writer, editor, book author and proofreader with over 22 years of expe rience, including significant content in the downstream petroleum and convenience store industries.

“An emerging opportunity is the use of digital assets as a differentiator for customer loyalty and rewards programs.”

How Cash at the sco can ease labor issues

It’s 2022--Retailers have recognized the value of selfcheckout technology and the benefits it will bring to their stores including easing labor shortage problems, improving the customer experience, and, of course, increasing the bottom line. Now you need to consider how to deploy your self-checkout to best suit the needs of your stores and your customers; the big question is— do you automate cash, or go completely cashless?

lead customers to perceive unfairness—why should they wait in line while the card paying customer can breeze right through? It’s not worth the risk alienating such a large portion of your customers.

Card-only self-checkouts will still require a cashier to handle all cash payments, increasing the likelihood that lines will continue to be long at rush hour, and risk customers walking out without purchasing. 41% of customers will abandon their purchase if they see a long line, and one bad experience can sour customers on your entire business. Almost half of consumers avoid a specific store if they have to wait longer than 5 minutes. No one wants to lose business due to customer dissatisfaction, and these lines can be effectively eliminated by deploying cash automation with self-checkout.

41% of customers will abandon their purchase if they see a long line

You may be leaning toward cashless—it’s less costly upfront, and card payments seem more like “the future.” Let’s examine that assumption—can you get the full ROI you expect from your self-checkout without adding cash? First consider from the perspective of the speed of service; self-checkout will move your customers through the line faster and eliminate long lines at peak times of day. If you’ve only automated cashless payments you haven’t solved the complete problem, and will not be able to repurpose cashiers to take on additional store related tasks, like cleaning, stocking shelves, etc. Stores that struggle with staff shortages will find relief by allowing their customers to checkout without their assistance, ensuring only one cashier is required to ring up ageverified products.

47% of all purchase values under $25 are paid in cash

Next, think about your customer’s experience. For the average purchase in convenience stores, consumers overwhelmingly choose cash; 47% of all purchase values under $25 are paid in cash. The percentage of cash usage in your stores may be even higher given that the average c-store transaction is between $3.75-9.00; recent studies report around 40-50% of purchases are made in cash. In addition to preferences, the Federal Reserve estimates 20-28% of the population is currently “un-banked,” or “under-banked,” and do not have access to card payments. Cashless only self-checkouts could

Lastly, cashless processing isn’t always as cheap as it seems to be. There’s a good chance cash payments cost less as a percentage of your revenue than cashless. Driving customers to cashless may actually increase costs and negatively impact profit margins.

In order to fully reap the benefits of your self-checkout deployment you need to include both cash and cashless payments. Cash automation makes it a well-rounded solution and delivers a superior ROI for your business.

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Your customers don’t expect to wait in a long checkout line; it defeats the purpose of “convenience.” Up to 50% of convenience store transactions are paid in cash. Don’t leave it out of the fast lane.

CPI is a provider of payment solutions with 30 million devices in operation, processing 40 million cash payments and powering 4 billion transactions each week to keep your stores productive and give you piece of mind.

Experience

Many Brands

One Mission Your Success

The fueling and convenience retail industries are uniquely complicated. There are so many products and services that must work seamlessly together for each system to function. In the past, owners would have to work with countless vendors and companies to build, operate and maintain even a single retail location. At Dover Fueling Solutions, we saw it as an oppurtunity to capture all the disjointed hardware and softwate into a single, integrated source. And that’s exactly what we did. We became the single source. We brought it all together. We made the system work for our customers. Why? Because it just made sense. Simplicity is what everyone is looking for – and simplicity is what we deliver.

Come see us at NACS! Visit the DFS booth (7219) for more information.

©2022 Dover Fueling Solutions. All rights reserved. DOVER, the DOVER D Design, DOVER FUELING SOLUTIONS, and other trademarks referenced herein are trademarks of Delaware Capital Formation Inc., Dover Corporation, Dover Fueling Solutions UK. Ltd., and their affiliated entities, registered or claimed in the United States and various other countries

Biofuels

BY KEITH REID in the Mix

The tremendous push for electric vehi cles to help meet net-zero carbon goals largely ignores the reality that internal combustion engines make up a large majority of the current—and the projected future—vehicle fleet—and the fact that zero emission at the tailpipe does not equate to zero emissions in the carbon life cycle. What’s more, there are a number of applications where forcing an EV solution is impractical, especially since other solutions are ready to meet functional needs as well as carbon emissions reduction goals.

A new Fuels Institute report shows how alternative fuels can and should be part of a decarbonized future.

A new Fuels Institute white paper, “As sessment of Biofuels Policy: Effectiveness of Emissions Reductions,” explores this issue in detail, focusing on true carbon reduction performance based on life cycle. It covers fuel ethanol, biodiesel, renewable diesel and gasoline, hydrogen and R80B20. It also eval uates the policies that affect these fuels, the availability of feedstocks to expand their market share and the vehicle and infrastructure capabil ities of accommodating such an expansion.

The report notes that zero-emission vehicle (ZEV) penetration will be marginal over the next decade and largely hinge on infrastructure, range anxiety and price constraints. The light-duty vehicle fleet, which numbered about 260.58 million vehicles in 2020, is ex pected to grow to about 284.7 million vehicles by 2030. The projection is that 76.8% of these vehicles will be gasoline powered, 5.2% will be ethanol/flex fuel, 2.5% will be diesel, 5.1% will be hybrid gasoline, 1.4% will be plug-in hybrid electric vehicles and 8.8% will be EVs.

“If we’re going to decarbonize transpor tation, you can’t wait for technology shifts,” said John Eichberger, executive director, Fuels Institute. “There are 300 million com bustion engine vehicles, and they’re going to continue emitting carbon unless we figure out a low-carbon fuel option. This is the only viable low-carbon option we have. We want ed to quantify what that carbon intensity potential was, and what the opportunities were to lower carbon over time. Let’s see where we’re heading, and then explore the policies and regulations hindering our ability to leverage that carbon intensity benefit.”

Biofuels have already helped to significantly reduce CO2 emissions in the U.S. transpor tation sector. For example, the increased use of natural gas has made electric generation far more carbon friendly. As covered in the report, carbon reductions from ethanol, bio diesel and renewable diesel were just over 90 MMT, which is equal to about $251 per metric ton of CO2 emission reductions in 2019. How ever, there is more work to be done to meet future net-zero carbon goals.

CARBON INTENSITY MODELS

As the report details, the key to meeting net-zero goals is tied heavily to life-cycle car bon intensity models, which are not universal and are highly subjective.

Life cycle is important in that carbon enters the environment through the entire cycle of a solution from the raw materials through production and not just as a vehicle moves down the road. This can be impacted by landuse issues, and with fuels, this can come down to the choice of one feedstock over another having a huge impact on carbon intensity.

The U.S., Canada and China pull from the Greenhouse Gases, Regulated Emissions and Energy Use in Transportation (GREET) model, while Europe pulls from another model. The viability of any solution can vary greatly depending upon the model. The Cali fornia Air Resources Board model is general ly centered on GREET, but the Fuels Insti tute report notes it tends to be less life-cycle critical of electricity pathways compared to biofuel pathways.

“There are 300 million combustion engine vehicles, and they’re going to continue emitting carbon unless we figure out a lowcarbon fuel option.”

“There’s a lot of conflict and contradicto ry approaches to life-cycle analyses (LCA). What we really need is for EPA to establish a LCA model that’s transparent, repeatable and dispensable,” said Eichberger. “Then you can run everything through that as a baseline. Maybe it’s the GREET model, and I think it should be. Is it perfect? Of course not. But if we’re comparing everything you use in the same model, at least you have apples to apples. The report shows the differ ence between GREET and Germany’s model. Your carbon intensity score with different feedstocks is ridicu lously different without having some consistency in how you measure it.”

AN OVERLOOKED SOLUTION

The biofuels associations are confident advanced versions of their fuels can meet net-zero carbon goals if given the oppor tunity. Not only are the fuels low-carbon emitting but there are clear pathways to re ducing carbon intensity in the full life cycle through techniques such as carbon seques tration (capturing carbon from the process and trapping it where it can’t escape in the environment, such as underground). Etha nol, for example, has tremendous benefits in carbon intensity from this approach. The oil companies are also confident in their ability to produce and distribute biofuels, reducing their own carbon intensity throughout the

production process. So why do biofuels get so little consideration compared to EVs? Is it an educational challenge?

“I really don’t think we need a lot more education,” said Eichberger. “What we do need is to break this logjam that the only path to lower carbon is electric vehicles. There’s such an animosity to having any conversation about liquid fuels and combustion engines [among various circles], and the leaders in power right now don’t want to talk about it.”

According to Eichberger, getting them to talk about it comes down to forcing them to address the elephant in the room. “They’re abrogating the responsibility to take care of the environment by not addressing 99% of the market and putting all their eggs on a market that might—or might not—develop over the next 30 years,” he said. “We have millions of legacy vehicles now, and millions more com ing to the market in the next 20 years—what are you going to do about them? You can’t ignore them. Once they open their ears, then you start talking about solutions. But we have a problem of not being able to have a conver sation right now.”

Download the free white paper at www. fuelsinstitute.org

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

“What we really need is for EPA to establish a LCA model that’s transparent, repeatable and dispensable.”

Healthiness

BY TERRI ALLAN

An emphasis on better-for-you food and drinks helps c-stores overcome unhealthy perceptions.

Customers at The Goods Mart store are label readers.

“There’s a more conscious consumer today,” explained Rachel Krupa, owner of the New York City-based better-for-you convenience store, of her customers, many of whom are in search of low-sugar and high-protein foods and beverages that provide calming effects. As a result, “they’re reading labels and com paring items,” Krupa said.

Indeed, the better-for-you trend continues unabated, and food-and-beverage suppliers and retailers of all stripes are leaning in. Ac cording to Jeff Church, CEO and co-founder of Rowdy Energy, marketer of functional energy drinks, consumers are increasingly seeking clean-label products and pushing brands for transparency. “Consumers want to know and understand the ingredients they’re ingesting,” said Church. “There’s an increase in focus and education around ingredients and the impact they have on health.”

This shift provides enormous opportunity for convenience stores, despite the chan nel’s reputation as a purveyor of indulgent and empty-calorie food and drinks. “More consumers are focused on managing chronic illnesses or the risk of them, getting better sleep, reducing stress, improving mental health or targeting spe cific nutrients and functional benefits,” said Mike Kostyo, trendologist at Datassential, which tracks

and consults on food trends. “For c-store op erators, meeting those need states and touting the beneficial nutrients and functional attri butes of both food and drink are key ways to attract a larger consumer base.”

PANDEMIC PAUSE

Still, many consumers put enhanced focus on healthy consumables on pause as stress and uncertainty about the COVID-19 pandemic swirled. Even at Choice Market, a Denver chain with a heavy emphasis on healthy, clean and ethically sourced food and drinks, customers gravitated toward comfort foods. “We saw a shift toward things like our fried chicken sandwich at the height of the pan demic,” remarked Mike Fogarty, founder of the chain, which boasts three locations, with plans for three more to open this year. More recently though, Fogarty has seen renewed commitment among his customers toward their health goals as “people are getting back to a normal rhythm, going to the gym and doing their regular routines.”

Chad White, foodservice category man ager at York, Pennsylvania-based Rutter’s, reported a similar response to the pandemic. Customers went for the “quick grab-and-go items over the healthier food options,” he said. While some Rutter’s customers continue to seek healthy food and drink alternatives, “the pandem ic has altered the trends we were seeing prior to 2020,” White noted, adding, “Until customers are able to get back into a normal routine, it will be tough to determine what trends are here to stay.”

Others said that the COVID-19 pandemic has helped bolster consumer attention to leading healthy lifestyles to boost their immuni ty. “People are increasingly aware that what you put into your body can make you healthier and stron ger and not sick,” remarked Krupa. Datassential’s Kostyo agreed. “Health

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and healthy eating are top priorities for many consumers post-COVID because of the evolution of their own lifestyle changes,” he said. With many people less active due to re mote work and the lack of commutes, they’re anxious to get back on track, particularly if they overindulged in the early stages of the pandemic.

POWER OF PROTEIN

Convenience retailers and suppliers report several overriding trends pertaining to healthy food and beverages. Protein-focused diets such as ketogenic (keto) have been popular for the past several years, and many c-stores have ramped up their selection of keto-friendly items such as jerky, nuts and protein packs.

According to Kostyo, the keto diet has been the fastest growing diet in terms of awareness or practice since 2019, and the momentum continues today, with the term “keto” growing 63% on menus in 2021, he reported.

The keto diet has been widely apparent at Rutter’s for some time, White said, with many practitioners eschewing carbohydrates. “A number of years ago, we had customers requesting no bun on our food menu, so we added that option to our kiosks,” he reported.

Keto diets have also impacted Rutter’s cen ter-store sales, the retailer added, particularly for items like beef jerky. As a result, suppliers of keto-friendly items are making headway in c-stores. Tessemae’s buffalo ranch keto box and organic chicken avocado ranch salad kit, for example, are offered at up to 700 Circle K stores in the west, according to Genevieve Vetter, chief brand officer at the dressing and condiment marketer. Kostyo doesn’t see the keto trend vanishing anytime soon.

“C-stores can capitalize on keto growth by packing more protein-forward options and placing them in more prominent store positions,” he advised.

Plant-based proteins, of course, are the latest rage, and leading QSR chains were among the first to jump on the bandwagon, with innovative c-stores following shortly thereafter. “Food is be coming more and more sophisti

cated, with plant-based proteins increasingly reconstructing the feel, texture and look of proteins,” remarked Fogarty from Choice Market, which offers the Impossible Burger, as well as plant-based dairy and snack alter natives. Rutter’s, meanwhile, has featured the Dr. Praeger’s Perfect Burger, a plant-based item, for two years, and according to White, “The response has been very good. We saw a lot of customer interaction with the product after it launched.” The Western c-store chain also markets the MorningStar Farms Black Bean Burger and Silk almond-based creamer is on its coffee bar. At the Goods Mart, Krupa reported that plant-based milks and snacks loaded with protein “do extremely well.”

OPTIONS ABOUND

Emerging plant-based proteins are also capturing the interest of c-store operators. Fogarty pointed to products like plant-based bacon and tuna alternatives. “Consumers have reached a comfort level with plant-based proteins,” said Kostyo, “and in the coming years, innovation will be focused on every thing from jerky to seafood. For the c-store market, plant-based jerky or charcuterie packs will be a differentiator for operators looking to put more health-forward options on the shelves.”

Beyond protein-driven demands, con sumers remain interested in foods that are gluten-free, vegetarian, vegan and organic, as well as those sourced sustainably and ethically. Choice Market boasts numerous such options, including a vegan breakfast burrito, tofu, organic buffalo cauliflower

Health and healthy eating are top priorities for many consumers post-COVID because of the evolution of their own lifestyle changes.”

CUSTOMERS WITH COFFEE

According to the NACS State of the Industry Summit Report of 2022, as of March, inflation had gone up to 8.5%. With limited resources - and time - consumers are now more selective of their in-store purchases. They are not only looking for high-quality and convenience, but also more spending conscious. What if there was a way to upgrade and build excitement around your beverage program while meeting consumer expectations?

By providing a full-scale, top-quality coffee program, you are providing consistent, reliable hot and cold coffee options all day long!

and gluten-free cheese puffs. Fogarty has long been committed to offering fresh foods and ingredients, often locally sourced and sustainably raised. “Consumers are realizing that sustainability plays a role in healthy food choices,” the retailer remarked.

Among beverages, functional products are now receiving attention for their health attributes. According to Kostyo, 80% of con sumers say they’re interested in functional beverages, with nearly half reporting that energy is their top desired function. Taste, low sugar, vitamins and hydration are also top-of-mind attributes, he noted. Rowdy En ergy, co-founded by professional racer Kurt Busch, was designed to be a cleaner energy drink than others on the market, Church said. “We set out to create energy drinks that deliver natural caffeine without the use of artificial sweeteners, artificial ingredients or chemical preservatives,” he explained of the drink, which features caffeine derived from green tea.

PERCEPTION BATTLE

While commitment to healthy food and bev erage items provides c-stores with improved margin and customer loyalty opportunities, challenges also abound. The channel’s per ception as a go-to destination for unhealthy food and drink offerings is a big obstacle.

“C-stores are a destination for comfort food,” remarked Heather Campbell, vice president, foodservice, at distributor S. Abraham & Sons (SAS), “so healthy food options often take a back seat.” Still, even products like “grab-and-go, single-serve fresh foods” put c-stores in the health-food game, she noted. Rutter’s White believes that for c-stores to overcome the repu tation, it will require more than just offering healthy food, “but executing it well above customer expectations.

C-stores promote speed of service, and the perception is that a healthy meal can’t be fast. We focus on showing that healthy and quick service can be done right.”

Independent retailers like Krupa and Fog arty say the industry’s supply chain can also be a roadblock in store advancements toward healthy food and drinks. “Most c-stores rely on one or two wholesalers, and they don’t provide a lot of options,” the Denver retailer said. “It can be a challenge for small, innova tive retailers to find healthy offerings,” added Krupa, when distribution isn’t available.

SAS is working to expand its healthy food offerings. The company recently changed produce sourcing for its Fruit Fridge Farms salads brand from California or Mexico to Revolution Farms, located in the distribu tor’s home state of Michigan. According to Campbell, closer proximity in sourcing allows for a “superior, fresher product.” Marie Wise, vice president of marketing at SAS, added that the distributor will soon enter the plant-based protein segment. “This is a product we know is needed, and we’re excited to have a wide variety of lines coming into the market and helping to fill that need,” she remarked.

Just as with fresh foods, inevitable success with healthy foods for c-stores requires a time commitment. “We’ve seen keto and gluten-free be the most significant health trends for us, along with plant-based options,” said White. “That being said, these trends take some time to play out and gain traction with our customer base. We have a focus on these healthy options, and as we see these trends moving to our customer base, we will continue to grow these options.”

Consumer demand for healthy food and drinks isn’t going away, and marketers will continue to respond. PepsiCo, for instance, is expected to release new plant-based snacks and drinks through its joint venture with Beyond Meat. And Kostyo expects increased interest in food and drinks that offer sup port for mental health, including functional beverages with adaptogens and CBD options. For retailers not yet committed to the healthy foods space, it may be time to shed the dated perception that c-stores offer only unhealthy foods and invest in the future.

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

Touting the beneficial nutrients and functional attributes of both food and drink are key ways to attract a larger consumer base.”

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 2021. The products featured here also can be seen in the Cool New Products Discovery Center at www.convenience.org/coolnewproducts

Shiftsmart

Shiftsmart Fractional On-Site Staffing

The Future Of Hourly Work Is Shifts

Staffing shortages, lost sales revenue, lower customer satisfaction scores - sounds familiar? Shiftsmart is powering the modern workforce by connecting top global retail brands with skilled workers to increase fulfillment, reduce turnover and improve quality.

From store audits and inspections to in-store merchandising and retail work, Shiftsmart is working with retail brands like Circle K, EG America, and Sam’s Club to help reduce the total cost of employership while capturing lost sales and dramatically increasing customer satisfaction. Take the stress out of retail staffing. Tap into the unique talent pool of over 1.6 million pre-screened workers who chose Shiftsmart for flexibility and independence. Visit us at booth #3674 at the NACS Show.

Promotions Designed for Success

Partner with us and gain access to ou r nationwide resource team to set you up with tools for su ccess, one of which is i n-store promotions. Each year we strategically pla n a marketing cal endar that bo th customers and operators love! Our marketing cal endar offers quarte rly promotion s that are affordable to customers a nd still prof i table to the operator. To learn more, visit krispykr unchy.com o r call 1-800-290-6097.

Waste & Recycling Software

Rubicon’s sma r t waste and recycling man agement prod ucts help retailers increa se recycling and diversion rates at every step of the s upply chain . Enhanced vi sibility into your operatio ns means deeper insight into your wa ste streams, informed de cision making, and i ncreasingly efficient act i on taken acros s locations. A cloud-ba sed p latform enables you to c ut costs by improving process efficiencies, drive transparency through data v isibility, a nd achieve su stainability goals. Visi t Rubicon.com or email h e llo@rubicon.com to get sta rted.

NEW TECHNOLOGY

NEW DESIGN

Save Labor & Simplify Ordering

Our Self-Serve Order Kiosk is a labor-reducing solution that allows customers to place orders without having to wait for an employee to help. Our kiosks are fully customizable to meet the needs of your location and utilize captivating menu templates, optimized to drive sales of profitable items. The dynamic digital display sets your menu in motion to create an engaging and frictionless experience for the consumer that drives traffic through your store quickly and raises brand awareness in busy environments. For more information, reach out to us at info@olmfoods.com.

Italian Glass Federal Industries

New Heated Italian Glass

Designed for customers looking for a rich, up-scale Italian styling for maximum visual appeal, that will drive product sales. Available as a floor standing model with base, or as a drop-in countertop installation. The new Italian Glass heated merchandiser elegantly displays hot foods, including deli and prepared foods. Electronic temperature and optional humidity controls, help food stay fresh longer, which means less waste and maximum profits. Also available in refrigerated & non-refrigerated models, and designed for seamless line-up applications. Visit us at www.federalind.com

K rispy Krunchy Chic ken ®

Rubicon ®

RUBICONConnect™

DESIGN

Anastasia Confections

2-Pack Coconut Patties

New 2-Pack Coconut Patties Display Shipper!

From Anastasia Confections, part of the Las Olas Confections and Snacks family of brands, comes the new 2-Pack Coconut Patties Display Shipper. This new display features 120 units of our world-famous Coconut Patties. These tropical treats are made with a unique, time-tested recipe that will transport you to a tropical paradise with every creamy, chocolatey bite.

Anastasia Confections has been committed to developing innovative tropical confections since 1984. We offer a lineup of premium tropical treats like Coconut Patties, multi-award winning Coconut Cashew Crunch, Gourmet Taffy, Choc-O-Gators, and much more!

NEW DESIGN

DJEEP

Long-Lasting Performance

T hanks to our unique triple-tank techn o logy, ever y DJEEP lighter delivers u p to 3,500 l ights. Paire d with striki ng designs, t e x tures, and f i nishes, they offer a premiu m option l ike no other.

When you st o ck up on DJEEP lighters, you’ll benefit from in cre ased consum er reach and a higher pri ce point as s hoppers trad e up. Light up your sales with the long- lasting quality your shoppers ar e looking for.

To learn more and order, visit NEWREQUEST.DJEE P COM

MasonWays Indestr uctible Plastics

A menity II - Double S ided Amenity Un i

New all-in-one Refuse Bin

M asonWays keeps you and y o ur family saf e when refueling at the p ump with our new A menity Refu s e Bin. Availa b le with a Pu rell ® Sanitizing Ge l Dispenser a nd Glove Dispenser to protect customers from g e r ms. Towel Dis penser comes with a three-gallon windshield fl uid bucket t hat attach es on one or two sides of th e unit. S e p arate forty-f ive-gallon i nner trash li ner is removable for easy cleaning. L i ner has s pecial engineered bag holder to grip bag tightly an d prevent trash bag colla p ses. Unit i s UPS shipp a ble and avai lable in col ors. Towel Dispenser Wate r Bucket so l d separately.

NEW DESIGN

D|13 Group

D25 Sink System

Elevate Your Restroom Experience

Eliminate the need for messy and costly paper towels and keep people coming back by installing the brand new D25 Sink System, featuring the XLERATORsync® Hand Dryer from Excel Dryer in your business’ restroom. The sleek D25 will enhance any modern restroom as it provides a streamlined and touchless experience for people to conveniently wash, rinse and dry their hands hygienically and effectively—all in one place. The D25 Sink System is available for a quick and easy purchase and a speedy installation. Reach out to us online (www. exceldryer.com/contact) or call 1-888-670-3107 to learn more.

NEW DESIGN

NEW DESIGN

Flash Sales

Curly Cord USB Charger

Cord stretches up to 8 feet!

-Curly Cord cable comes with multiple connectors (micro USB, type C, and Iphones)

-Charges 2 devices at the same time

-Charges from your computer or a USB charging block

-Cords available in a variety of colors

-USB 2.0 compatible port

-Heavy duty cord stretches up to 8 feet

-Master case comes prepacked with merchandise in an easy to assemble floor display

RTS Companies Inc.

Roll Up Merchandiser

Easy Glide, Lockable Display

Rotomolded with durable UV plastic panels and heavy duty, rust proof powder coated metal top and back, featuring an easy glide rolling aluminum lockable door. The three spacious shelves conveniently accommodate various goods, including windshield washer fluid, salt, firewood, etc., Available in different colors, to match your corporate branding. Large unit 48”W x 24”D x 47”H. Visit us at our booth #2175. Inquiries please call: 1.800.663.2803 . ext.2130 and visit rtscompaniesinc.com.

DESIGN

Modern Store Equipment

MOCO Quick-Load Tobacco Merchandisers

Display, Store & Quickly Restock Tobacco Products at Checkout

Modern Store’s exclusive line of MOCO modular and convenient Tobacco Merchandisers provides busy c-stores with a variety of ways to display, store, and quickly restock products. Exclusive models range from top-to-bottom push-load shelves displaying 144 SKUs to options with a combination of push-load shelves and convenient 1- or 2-drawer storage. For c-stores with serious space constraints, Modern Store offers a unique merchandising unit with a sliding front section that allows more display and storage in a compact footprint. Available in sleek, durable black melamine and proudly Made in America. Modern Store’s modular MOCO components can be combined to create a full store, including shelving, checkouts, coffee and food prep, self-serve beverage, walk-ins and more. Email info@modernstoreonline.com or visit modernstoreonline.com/cstore for more details.

NEW TO THE INDUSTRY

NEW TO THE INDUSTRY

We’re Back! Missed Us?

Originally established in Canada in 1969, The PoP Shoppe was a pioneer of craft sodas, selling 24+ flavours in their beautiful nostalgic red crates through franchised outlets and its own brick & mortar stores. In & around 1971, The PoP Shoppe made it’s move to the USA. Sadly, in 1983 the brand disappeared.

Fast forward to 2006, the brand was resurrected in Canada and is a leading craft soda in the market! We are ready now to relaunch into America & beyond!

ampm

B reakfast Sandwich In novation

Innovation is easy on you.

ampm’s constantly evo lving lineup of breakfas t sandwiches may have sophisticated flavor profil e s, but the process of mak i ng them st ays simple. Whi l e we deliver delicious s andwiches, e mployees can spend more t i me delivering quality customer service, and our changing menu ensures repeat vis it s through it all. Explo re franchising opportunities at www.arcoa mpmfranchising s outh.com.

NEW TO THE INDUSTRY

NEW TO THE INDUSTRY

FILLED CakeBites

Cookies Will Never Be The Same!

The next revolution in cookies are here…Introducing FILLED, by CakeBites. Start with a crunchy cookie shell and FILL IT with mouth-watering fillings and enrobed in array of coatings and toppings! 3 Flavors will be available in Q1 2023, Cookies & Crème, The Peanutter, and TWIX®. All flavors will be available in grab & go pouches and come in a 10ct counter display. Breathe new life into the cookie category with these marvelous cookie creations! Contact fgardner@cookiesunited.com for all sales enquires.

T yson Foods

T yson ® Bu tcher-Wrapped Chic ken Sandwiches

Add Some Whoa! To On-The-Go

T he chicken s andwich craz e shows no si gns of slowing down. N o w it’s easier than e v er to jump in —with award w inning Tyso n ® chicken sa ndwiches fe at uring the d estination-worthy quality your custom e rs crave. T he se award-winnin g sandwiches c ome in South e r n Style, Ch i cken n’ Waffle and Hot n’ Spicy Chicken n’ Waffle. Coming soon, the Ty s on ® Spicy Southe r n Sandwich! Learn more at tysonfoodservice.com/ tyson-chicken sandwiches-i nnovation-produ cts.

NEW TO THE INDUSTRY

R i ch Products

Our Specialty Treat Shop™ New Full y F in i shed Desserts by Rich’s ® GRAB AND GO WILD

Rich’s Our S p ecialty Treat Shop fully finished dess erts are indi vidually indu l g ent and ent i cingly unique for any sweet tooth cravin g on the go! Pre-packaged and ready o n demand, our Brownie Dess e r t Pizzas and Parfaits provide maximum convenience and satisfact i o n – and the power to make a nyone’s d ay a little sweeter. Our Brownie Dessert Pizzas, ma d e with c rushed REESE’S Peanut Butter Cups or H E RSHEY’S Choco l ate Chips, make chocolate lover dreams come true w i th a rich, f udgy bite a nd fan-favorite candies. O ur grab and go Mousse Parfait Cups and Cake Cu p s offer a celebration in a cup, with ir resistible, o n-trend flavor combinati o ns.

*HERSHEY’S an d REESE’S t rademarks are used under l icense.

NEW TO THE INDUSTRY

NEW TO THE INDUSTRY

Veggies Made Great

Stuffed Cauliflower Bites

Healthier Hot Menu Solution

New Stuffed Cauliflower Bites make the ultimate better-for-you hot snack or mini-meal. Convenient and easy-to-serve, they can go straight from the freezer into the fryer, high speed oven, or microwave with zero prep needed. The crispy cauliflower crust and flavorful filling of cheese and veggies are sure to delight your customers.

Veggies Made Great: Where Vegetables are Always the #1 Ingredient

For more info visit VeggiesMadeGreatFoodservice.com or email sales@elohi.us

Veggies Made Great

Veggie-Rich Muffins & Frittatas

Healthier Grab n’ Go Solutions

New individually wrapped Veggies Made Great muffins and frittatas make the ultimate better-for-you breakfast or snack. Perfect for going from the microwave to a warmer display for grab n’ go convenience. Nutritionally smart and remarkably delicious, they will be a hit with your customers.

Veggies Made Great: Where Vegetables Are Always the #1 Ingredient.

For additional info visit VeggiesMadeGreatFoodservice.com or email sales@elohi.us

NEW TO THE INDUSTRY

NEW TO THE INDUSTRY

Cell Phone Seat LLC

Cell Phone Seat - Universal Cell Phone Mount

EVERYONE CAN BE HANDS-FREE

24 out of 50 states have enacted policy against touching your phone while driving. It’s becoming a HANDS-FREE NATION and EVERY driver needs a cell phone mount that’s easy to use and works. Introducing Cell Phone Seat, the easiest cell phone mount on the market to install and use. It holds any size phone and doesn’t block ANYTHING in your car including your dashboard, vents or cup holder. Cell Phone Seat is Patented, Made in America and Veteran-Owned. Our mission is to help America BE HANDS-FREE. Learn more at www.cellphoneseat.com or call (844) 449-9546.

Sunny Sky Products

UPOURIA Frappe Mixes

Versatile & Easy to Prepare!

Elevate your beverage program with UPOURIA Frappe Mixes. This versatile frappe mix can be prepared Iced, Hot, Blended or in a Granita machine for endless possibilities. Crafted from premium ingredients, Upouria Frappe Mixes come in a 3.5 lb re-sealable pouch and are available in five flavors: Coffee, Vanilla, Mocha, Caramel & Chai. Easy to use and even easier to add high profit specialty beverages to any menu.

PHONE: (877) 235-6466 | EMAIL: info@sunnyskyproducts.com

NEW TO THE INDUSTRY

RTS Companies Inc.

Biodegradable All-Purpose Cleaning Wipes

More Wipes Per Package Than Leading Brands.

RTS Retail All-Purpose Hard Surface Cleaning Wipes are biodegradable, super soft and are derived from all natural ingredients. Made from spunlace rayon, a non-woven material made from bamboo pulp. Spunlace rayon is softer and more absorbent than traditional cleaning wipes while being more sustainable for the environment. Available in 90, 160 and 460 counts, they are conveniently packaged by the case and are in stock and ready to ship to you today. White Label opportunities are available, with complimentary design services. Special show pricing, visit us at our booth #2175.

Free samples and white label inquiries please call: rtscompaniesinc.com 1.800.663.2803 ext. 2130

NEW TO THE INDUSTRY

Joy Tower ™ Toysmith

Top Tier Merchandising Solution

Our Joy Tower ™ program offers 24 of our best selling impulse items. With this small 1’x2’ footprint it can fit nearly anywhere while bringing in big margins. Your customers may not come in looking for a squishy dinosaur but they’ll leave with one!

NEW TO THE INDUSTRY

NEW C-Store PROFITABLE hemp-derived cbdMD Delta 9 THC Gummies

cbd M D h e mp d e rived De l ta 9 T HC Gu mm i es a re t he p erfec t combo of highly effectiv e a nd hig hly a ffo r d a b le. Del ta 9 THC i s very similar to the “raw” THC found in the hemp plant, altered on ly slig ht ly b y th e he at appli ed in t he e x tr a ct i o n process. O ur Del ta 9 THC f o r mu la co mbi ne s he mp-de r i v ed TH C w i th th e po w e r of CBD, a nd e verything else hemp has to o ffer . A s al ways, all cbdM D De l ta 9 p ro d uc ts a re m an uf a ct ure d fr o m Fa r m B i l l com p lia nt US G ro w n H e mp an d o ur 10 mg Del ta 9 TH C G um mie s cont a i n le s s than 0.3% THC on a dry we ig ht b a s i s + 5 0 m g o f C BD p e r gu mm y . Availa b l e in 5 co unt p a ck e ts - 2 fl avors; Fast growing C BD p r o d uc t segme nt ; Tested by i nde p e ndent ISO 17025 certified labs f o r q uality a nd co nsi s te nc y . Ta k e adv a nt a g e to fin a l l y s ell r e a l , D e l ta 9 THC i n yo ur s to r e a nd e l evate INCREMENTAL profits. For more inform a ti on contact Brian Marks - Chief Customer Officer, cbd M D v i a e mail at b r i a n. ma r k s @cbdmd. c o m - OR- s to r eh e l p@ cbd md.co m Ope n your m i nd an d profits with cbd M D $9.99 Ret a i l / +50% Margins / $ 1 1 9 Ret a i ler Profit Per Sq Ft . Th i s pro duct h a s not been r evie

NEW TO THE INDUSTRY

True North Beverage

True North Pure Energy Seltzer

Introducing True North Pure Energy Seltzer

True North goes beyond the average seltzer (also known as sparkling water). Our plant-based energy blend is infused with natural caffeine from plants such as Guayusa, Ginseng, Guarana, and Green Tea. But we didn’t stop there. We wanted to give you the added benefit of an immunity boost so you could feel good about fueling your body with everything it needs to keep you going on your journey. We kept all the stuff out that you don’t need, so you won’t find any sugar, nor sweeteners of any kind. We also stayed away from artificial flavors or colors. When we say natural, we mean it. Our products do not contain any chemicals or GMO’s. True North gives you the purest of energy for your next adventure. For more information, call (844) 538-7742 and visit www.truenorthenergy.com

NEW TO THE INDUSTRY

Geloso Beverage Group

Buzz Tea

What’s the Buzz?

Presenting: Buzz Tea — your new favorite hard tea available nationwide in three refreshing flavors, Original, Half & Half, and Peach. All containing 6.5% alcohol, there’s no way this elevated beverage won’t get you Buzzing.

NEW TO THE INDUSTRY

Ty Inc.

Squishy Beanies

Want to carry our product?

Please contact Peter Olbrys at 630.432.3329 or polbrys@tymail.com about bringing Ty into your locations.

NEW TO THE INDUSTRY

NEW TO THE INDUSTRY

11 Options, Nicotine From Tobacco

T he BIDI ® Stick delivers a consis tent experien ce using uni q ue technology, meeting the expectations of adult con s umers. And a fter court decisions gran ting first a stay and then setting aside a mar k eting denial order from the FDA, it s 11 flavor cho i ces contin ue to be legal for sale. The BIDI ® Stick has al so been awa rded a UL 813 9 certifica tion for its b attery and electrical systems’ durabi l i ty. Togethe r, these attribu tes provid e adult consumers of combustible cigarettes a significant alternative.

StarKist® Smart Bowls™ Pouches StarKist Co.

NEW fuel for a healthy lifestyle

•Seasoned gr ains, heart y vege tables an d wild-caugh t tuna

•10g+ of prot ein, 180 calories or less, and a goo d sou rc e of f i b er

•F ully cook ed & r eady t o e njo y - Jus t t ear , e a t and g o ! ®

•Perfec t f or a ligh t lunch o r s atisf ying sna ck when cra vings strike

•F or mor e informa tion, visit St arKist.com

BOOTH #

and taste, without the waste.

NEW TO THE INDUSTRY

NEW TO THE INDUSTRY

Van’s Kitchen

Van’s Kitchen Roller Grill Egg Rolls

Convenience store solutions:

Van’s Kitchen is a certified Women-owned and Minority-owned egg roll provider to over 10,000 supermarkets and convenience stores around the nation. Our made-tolove pork and chicken egg rolls are crafted in artisan batches using fresh, whole ingredients! Thanks to our proprietary process, Van’s Kitchen egg rolls continuously move on a roller grill to cook more evenly and maintain their crisp texture. Our roller grill egg rolls come with individual bags, and make the ideal on-the-go mini-meal or quick snack!

NEW FLAVORS

FLAVORS

Our Boldest Coconut Drink Yet

A refreshing blend of coconut water and a burst of tropical, refreshing flavor, Vita Coco Coconut Juice is a thirst-quenching, convenient on-the-go boost. Vita Coco Coconut Juice is available in two bold flavors, with a sweet, unexpected taste that demands one more sip. It is gluten-free and non-GMO, and 50 calories for Original with Pulp (per 8 fluid ounces) with 10 grams of sugar, and 80 calories for Mango (per 8 fluid ounces) with 17 grams of sugar. CONTACT: info@vitacoco.com, 855-526-0778.

NEW FLAVORS

The Hershey Company

Reese’s Snack Bar

Reese’s Snack Bar

Named “Best Sweet Snack” by the judges of NCA Sweets & Snacks Expo Most Innovative New Products Awards! Your day just got sweeter, and nuttier. Reese’s Snack Bars are the perfect mix of crispy, crunchy, salty and sweet flavors, sure to put an extra spring in your step. These tasty treats feature peanut butter creme, crisp whole grain brown rice, crunchy roasted peanuts and smooth milk chocolate. Each 2-oz. pack comes with two bars so you can bookend your morning break with deliciousness.

The Hershey Company

Jolly Rancher Berry Gummies

Jolly Rancher Berry Gummies

It’s safe to say these Jolly Rancher Gummies are BERRY good, bursting with juicy berry flavor in every mouthwatering bite. Each pack of Jolly Rancher Gummies Very Berry has five flavors in soft and chewy form: Blue Raspberry, Blackberry, Wild Berry, Black Cherry and Wild Strawberry. Enjoy this berry flavor ride on the go with your gang or keep them just for you.

Vita Coco Coconut Juice Drink

Vita Coco

NEW FLAVORS

NEW FLAVORS

Albanese Confectionery Group

A l banese ® W orld’s Best Sour 12 Flavor Mini Gummi Worms™

Introducing a new sour gummi!

A lbanese’s l atest innovatio n, Sour 12 F lavor Mini Gummi Worms™ features mou thp uckering gumm ies that exci te taste buds with two s o ur flavors i n each gummi!

A lbanese is k nown for the i r intense, 12 fruity flavors so this so ur worm item is the p erfect addition to their World’s Best line. Not only does th i s assortment have all the fan-favorite flavors, thes e gummies al s o have the t rending attr i b utes of allergen free, g luten free, fat free, l ow sodium, an d are made in the USA!

Frazil Energy Frazil

Introducing Frazil Energy Slush

Slush just got a little pep in its step. Frazil is adding fuel to its flavor with Frazil Energy, the first broadscale energy slush in the industry. We figured it was time to combine the high-growth energy drink category with Frazil’s fan favorite slush. We also figured we’d better have amazing flavors: Pina Colada, Smashberry, Limonade, and Orange Cream. Energy is just what you need to power through NACS Show. So, do yourself a flavor and come see us at booth 5319 to try it.

MegaMex Foods

Triple Play 7oz.

Burrito

Don Miguel Foods is stepping up its breakfast game with the launch of the new Triple Play Breakfast Burrito. It’s a family-friendly breakfast item - filled with 3 Breakfast Meats (Bacon, Sausage & Ham), Roasted Breakfast Potatoes and 3 Cheeses (Cheddar, Monterey Jack & American Cheese). And at 7oz., big enough to give your customers the energy they need to start their day!

For more information or a sample, call 1-800-725-7212 or visit www.donmiguel.com

La Colombe

La Colombe Single-Serve

Lattes

Super-Premium Ready-to-Drink Coffee

Twang

Cucumber

Dress Your Seltzers!

Now you can take the dressing your beer concept to seltzers! Twang Partners, the creators of the Original Beer Salt since 1986, has just launched new LTO exciting flavors that are great on beer AND tailored especially for seltzers. Visit Twang.com or visit us at booth #438 in the North Hall to taste and see merchandising options that fit your needs. Add incremental sales to your beer, seltzer and canned cocktail sets!

The industry’s newest products delivered to your doorstep!

Reserve your Cool New Products Innovations Box, a curated collection of new products from NACS supplier members.

NEW TO THE INDUSTRY

Hemper

Quickhitters

The Worlds 1st Flavor Infused Disposable One-Hitter

HEMPER, the #1 lifestyle accessory brand in the world presents a revolutionary new apparatus for the O.T.P category. Hemper Quickhitters are designed for convenient flavor packed hits on the go. Unlike traditional one-hitters, Hemper Quickhitters are packaged in a resealable smell proof bag that’s great for discreet consumption. Each Quickhitter features a heat resistant ceramic bowl, natural paper body design, and a built in filter tip. Quickhitters come in non-flavored and flavored varieties. To use a non-flavored Quickhitter simply pack the bowl and enjoy. To use a flavored Quickhitter pack the bowl and squeeze the flavor infused tip. This will release the real fruit terpenes into your Quickhitter, resulting in flavor packed hits. Each flavored Quickhitter comes with 2 flavor beads within the filter tip. Squeeze one bead for flavor, squeeze two beads for extra flavor. Hemper is proud to introduce this game changing product with keystone pricing. Contact Sales@harabrands.com | +1 (631) 223-8901 for more information or visit www.harabrands.com

NEW TO THE INDUSTRY

NACS

NACS State of the Industry Compensation Report® of 2021 Data

Win the Race to Attract and Retain Talent

Today’s labor market positions convenience retailers against QSRs and other retail channels in the race to attract, hire and retain talent. To compete, c-stores must keep up with the rapid pace of change by developing and implementing competitive compensation strategies. A data-driven strategy can inform decision making and execution. This year’s report covers the latest industry data, trends and insights on salaries, benefits, turnover, recruitment & retention—plus: New Positions (Director of Food Safety and Social Media/Marketing Manager); New Benefits (career development planning, bonus/incentive programs, in-store discounts, severance); Cost to Hire & Cost to Train; Productivity (number of days to full productivity and number of training hours in the first 90 days). Order your digital copy at www.convenience.org/CompReport.

Cool New Products Index

NEW SERVICE

Krispy Krunchy Chicken 145

Shiftsmart 144

GREEN Rubicon 145

NEW DESIGN

Anastasia Confections 146

BIC Lighters

146

D|13 Group 147

Federal Industries

145

Flash Sales 147

MasonWays Indestructible Plastics ....................... 146

Modern Store Equipment 148

RTS Companies Inc. 147

NEW FLAVORS

Albanese Confectionery Group 156

Freezing Point Flavors 156

La Colombe Coffee Roasters 157

MegaMex Foods 156

The Hershey Company................................................ 155

The Vita Coco Company 155

Twang ............................................................................... 157

NEW TECHNOLOGY

OLM Food Solutions 145

NEW TO THE INDUSTRY

Alliant Coffee Solutions 154

Beverage World Industry ...........................................148

Bidi Vapor, LLC 154

BP Industry .....................................................................148 cbdMD, Inc. 152

Cell Phone Seat LLC 150

Cookies United 149 Geloso Beverage Group 153 Hara 158 NACS 157,158

Rich Products 149

RTS Companies Inc. 151

StarKist Co.

154

Sunny Sky Products 150

Toysmith

151

True North Beverage 152

TY INC. 153

Tyson 149 Van’s Kitchen 155

Veggies Made Great 150

Food First Not Fuel

At Oak Grove Market, brick oven pizza, chicken salad and fire-blasted wings take center stage.

BY AL HEBERT

After 25 years in the convenience store business, Gregg Patter son has found his niche. Pit Stop Exxon in St. Amant, Louisiana, was the first of five stores he would build over the years before realizing that what he liked best was having a community-centered store in an area with regular customers.

Patterson and business partner Ben Bercegeay decided to try something different in Prairieville, Louisiana. That meant giving their customers another reason to stop in besides fuel and con venience items—great food and a sense of community. “We wanted them to come for our food,” Patterson said of the convenience store that opened its doors in April 2022.

“The high percentage of people who get fuel, pay at the pump and don’t come in the store is astounding. We are trying to reverse this. Instead, the hope is that the customer comes inside the store to shop and thinks, ‘Hey, I can get fuel as well,’ Patterson said. “We’re not focused on being only an Exxon station. We’re focused on being a market. We are Oak Grove Market.”

Designed by Paragon Solutions, Oak Grove feels like an upscale market. What one doesn’t see at the front of the store are fuel pumps. From the road, people see an attractive market, beautifully landscaped and inviting, with an outdoor seating area.

There’s also a huge covered and well-lit drive-thru, where customers can

Food is the main focus at Oak Grove Market, where the kitchen features a brick pizza oven.

Seasoned wings are fire-blasted in the brick pizza oven, a central feature of the Paragon Solutions-designed market in Prairieville, Louisiana.

GAS STATION GOURMET

purchase food and most anything for sale in the c-store. The goal was to do a hybrid with convenience store items, chips, candy, bags of ice, but also do brick-oven pizza, wings and hot-pressed sandwiches using homemade bread,” Patterson explained.

“Fuel is not the focus; it’s an option,” Patterson said. “We sell Exxon fuel, but we offer a lot more than that—a market, great food and a feeling of community with all of the convenience.”

BRICK OVEN

The partners have tried various turnkey foodservice programs in their c-stores, and with countless pizza options in the area, they decided to create their own menu for Oak Grove Market. They asked themselves, “Why can’t we make the sandwich wedge? Why can’t we make chicken salad?”

So, Patterson and Bercegeay bought an Italian-made brick pizza oven. And it proved to be a smart decision.

“One of our most unique pizzas is built with thin sliced, smoked green onion sau sage, a white sauce and sprinkled with green onions. It’s called the Grunyon, and customers love it,” Patterson said.

With an eye to boosting pizza sales over the summer, Oak Grove Market launched Five Dollar Friday Pizza with a choice of pepperoni or cheese. “It took off,” Patterson said. “Kids eat the pepper oni or cheese pizza, and mom and dad buy the specialty pizza.”

Patterson then turned his attention to chicken salad.

“Very few people offer homemade chicken salad,” he said, and when they do, there’s often “too much stuff in it,” Patterson says, like nuts or fruit. Oak Grove Market keeps it simple with the basic ingredients and “a little kick, a little spice,” he said. “We’re the jambalaya cap ital of the world. People like it this way.”

Chicken salad has become the most popular menu item.

“When we started, we were doing 20 pounds of chicken at a time. One batch every three or four days. Now, we’re

doing two batches with 40 pounds daily,” he said, adding, “99% of the people who try it like it, and people drive here for it. They say the store is beautiful, and they leave with chicken salad.”

WINGING IT

Wings are popular, too, and it’s no surprise that Oak Grove Market is trying something a bit different.

The team had a thought: “We have this big ‘ole brick oven and all we’re doing is pizza? We said no, let’s try doing wings in it,” Patterson said.

The foodservice team seasons the wings and lets them sit overnight. Next, “We bag them, add sauce, shake them and dump them into a black iron skillet and fire blast them at 640 degrees,” he explained.

Fire blasting the wings in the sauce makes a difference. “All of that flavor is fired into that wing,” he said.

The brick oven is also used to roast fresh ingredients for homemade salsa.

“We’re learning every day. We’re ex perimenting and trying to get it right. We make mistakes, but we strive to always serve good food,” Patterson said.

WELCOME INSIDE

Oak Grove offers free Community beanto-cup coffee to customers on Monday as a way to build loyalty. “Our thought was by offering a free coffee on Mondays maybe they’ll come Tuesday, Wednesday and the rest of the week and buy a cup,” he said.

Getting customers inside the c-store is a priority, and part of the goal as the partners planned the store was a design that would make women feel welcome.

“Women won’t sit down in a conve nience store. What would we have to do to get them to sit down and eat?” Patter son and Bercegeay wondered.

“We built a beautiful sitting area and top-notch bathrooms. We have a huge section with complimentary Wi-Fi,” Patterson said. And, of course, there’s the fresh food.

“We want people to drive to eat our pizza, wings and other homemade food items. We want you to come with your family and sit down and eat in a clean, comfortable atmosphere. We want people to make our store a destination,” Patterson said.

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

L to R: Gregg Patterson, owner of Oak Grove Market, and business partner Ben Bercegeay check an order of wings siz zling in an iron skillet.

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CREATED IN 1982, THE HUNTER CLUB is an elite category of supplier membership named in honor of NACS’ founding CEO: Harry C. Hunter. The club’s symbol commemorates Harry’s nickname: “The Silver Fox.” For their dauntless commitment and support in advancing convenience and fuel retailing, NACS celebrates and thanks its Hunter Club Member companies.

The candy category accounted for

3.52%

of inside sales contribution, ranking seventh out of all in-store categories.

Source: NACS State of the Industry Report of 2021 Data

Sweet Sales

BY PAT PAPE

From chocolate bars to gummies and sour candies, consumers craved confections during the early days of the pandemic. The good news for convenience re tailers is that the momentum for this high impulse-driven category remains strong.

The candy category represented 3.52% of inside c-store sales in 2021, according to the NACS State of the Industry Report of 2021 Data . “The largest subcategory contribu tor to sales in 2021 was chocolate bars and packs (32.5%), followed by bagged and repacked peg candy (20.3%), non chocolate bars and packs (18.8%) and gum (11.9%),” said Jayme Gough, NACS research manager.

Coming out of the pandemic, pricing, promotion and display strategies for the category drove double-digit sales growth in 2021 (13.5%) and increased per store, per month sales from $5,975 to $6,781. The NACS State of the Industry Report notes that a gross margin percentage increase of 0.48 point also helped the category boost gross profit 14.6% year over year to a total of $3,410 per store, per month.

Consumers sought the comfort of confections during the pandemic, and the trend continues.

CATEGORY CLOSE-UP

To combat the uncertainty, Young said it’s important to nail down the mer chandising aspect “to create points of interruption” and “have a promotional endcap that really stops folks when they first walk in.”

Kahlie Kilcher, category consultant–convenience at The Hershey Company, says retailers should make sure they’re optimizing the center-store candy aisle, noting that about “two-thirds of candy, mint and gum sales come from that aisle, so merchandise it in a way that makes sense to customers. … That includes dedicating the shelves where consumers look first, which is just below eye level, to top-performing items within each segment and size. This method improves takeaway by an average of 4% to 6%.”

As the industry continues to battle declining transaction counts, Kilcher says that retailers can boost confection

value to their basket.

SWEETEN THE SEASONS

Retailers were able to capitalize on seasonal candy sales as in-store traffic began to rebound and pandemic lockdowns eased. These products also help drive impulse sales during four major holidays: Easter, Valentine’s Day, Halloween and Christmas. Accord ing to NACS State of the Industry data, seasonal candy experienced the second-largest sales and gross profit year-over-year increases of all candy subcategories in 2021 (25.7% and 37.7%, respectively).

Category managers can prepare for busy holiday selling seasons by show casing the offerings on eye-catching and impulse-driven displays that capture high foot traffic, like endcap displays and at the checkout.

Carrollton,

Per Store, Per Month Sales

$7,000

KEEP CANDY DANDY

To maintain freshness, store candy at an ideal tempera ture of 70 degrees Fahrenheit with 50% relative humidity.

Candy companies advise retailers to get ahead of these unique selling seasons by sourcing supply sooner than later. “To prepare for key holiday moments, we recommend that retailers place product orders a few months in advance,” said Robert Swaigen, vice president of global marketing at Jelly Belly.

Kilcher also suggests that seasonal confections should be on store shelves before the selling season begins.

can capture those initial and repeat purchases.”

SWEET INNOVATION

Don’t freeze candy or leave it in direct sunlight.

“Retailers should order the top-selling instant consumable seasonal candy as soon as distributors allow,” she said, add ing that with supply chain constraints, “placing orders with advance notice can help manufacturers schedule production and help distributors plan to get retailers enough product to meet demand.”

During the pandemic, when consum ers were minimizing shopping trips and stocking up on their favorite treats, “we rolled out larger, standup pouch sizes across products like SKITTLES Gummies,” said Jim Dodge, vice presi dent of convenience for Mars Wrigley. “Those larger pack sizes remain a popular option.”

Regularly rotate both displayed and stored merchandise.

Chocolate typically has a shelf life of 10-12 months, caramels 3-12 months and gummy treats 9-18 months.

According to candy producers, the softer the candy, the more fragile it is.

Source: National Confectioners Association

Kilcher added that consumers “crave their favorite seasonal candies and look forward to the time when they can finally get them. Plus, they are highly likely to buy again in the same season. That means c-store retailers who merchandise holiday candy early

Dodge credits the growth of gum mies to consumers being willing to try new textures and flavor profiles of their favorite confections. “Our STAR BURST Airs product offers a twist on the original STARBURST candy with a distinct, first-of-its kind aerated gum my that differentiates the product,” he said.

According to Swaigen, consumer demographics have a lot to do with candy purchases. “Gen Z and millenni als are more likely to purchase candy

The Power of CSX Data

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

JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC

CATEGORY CLOSE-UP CANDY

Subcategory Performance

Percent of Sales Avg. Sales/Store Avg. GP$/Store Gross Margin % 2020 2021 2020 2021 2020 2021 2020 2021 Chocolate Bars/ Packs 34.8% 32.5% $2,077 $2,205 $1,100 $1,108 52.96% 50.24%

CANDY

Bagged or Repacked Peg Candy 19.2% 20.3% $1,149 $1,379 $514 $686 44.74% 49.76%

Non-Chocolate Bars/Packs 17.4% 18.8% $1,043 $1,273 $509 $623 48.82% 48.94%

Gum 11.7% 11.9% $699 $807 $343 $392 49.07% 48.61% Novelties/Sea sonal 6.1% 6.7% $362 $455 $176 $243 48.62% 53.30%

Candy Rolls, Mints, Drops 8.3% 6.6% $495 $449 $254 $241 51.36% 53.63%

Change Makers/ Penny Counter Goods 1.1% 1.7% $64 $114 $36 $64 55.48% 56.36%

Bulk Candy 1.4% 1.5% $86 $99 $44 $53 51.79% 53.53%

Total 100.0% 100.0% $5,975 $6,781 $2,976 $3,410 49.81% 50.29%

Source: NACS State of the Industry Report of 2021 Data

from convenience stores than Gen X or boomers, which is why at Jelly Belly, we’re always looking to innovate toward the younger generations,” said Swaigen. “One of our most popular candy offerings with younger consum ers is BeanBoozled, which pairs two jelly beans that look exactly alike but couldn’t taste more different.”

From packaging innovation, new flavors, textures and pack sizes, conve nience stores will continue to reap the benefits of consumers looking for indul gent treats and afternoon pick-me-ups that the candy category provides—as well as put a smile on their face.

“A lot of times when people come in, you’re catching them at all points during the day. Somebody might be having a great day. Somebody may not have a great day at all. It’s a matter of trying to put programs together so when people come into our stores, they’re going to walk out satisfied,” said Young.

Pat Pape worked in the convenience store industry for more than 20 years before becoming a full-time writer. Read more of her work at patpape.wordpress.com.

Picsfive/Getty Images

Gen Z and millennials are more likely to purchase candy from convenience stores than Gen X or boomers.”

ADVERTISER INDEX

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Contact Information Page

5-hour ENERGY 22-23 (866) 960-1700 www.5hourEnergy.com/trade

ADS-Tech Energy Inc. 111 https://go.ads-tec.de/us/hpc/whitepaper

Advantage Solutions 17 & Outsert www.advantagesolutions.net

Anastasia Confections Inc. 170 www.anastasiawholesale.com

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

Beam Suntory (Truly Vodka) 133 www.beamsuntory.com

Bayer 86 www.bayer.com

BIC Corporation 3 & Bellyband Ad around “NACS Show” copies www. newrequest.bic.com

Black Buffalo 9 wholesale@blackbuffalo.com

BP North America (ARCO) 107 ARCOampmfranchisingnorth@bp.com ARCOampmfranso@marathonpetroleum.com

Calico Brands Inc. (Scripto) 171 (800) 544-4837 www.calicobrands.com

Capital Sales Co. 15 (Breeze Smoke) www.breezesmoke.com

Cash Depot 7 (800) 776-8834 sales@cdlatm.com www.cdlatm.com

CHS Inc. (CENEX) 11 www.cenex.com/businessopportunities

Cheyenne International LLC 117 www. cheyenneintl.com

Cookies United 131 www.cookiesunited.com

The Coca-Cola Company 63 www.coca-colacompany.com Cool New Products Guide 144-159 www.convenience.org/CNP

Core-Mark & Eby-Brown 79 www.core-mark.com www.eby-brown.com

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Crane Payment Innovations 126-127 www.cranepi.com

Crispy Filled Inc. (Rosti Stuft Spuds) 55 (503) 333-7700 www.stuftspuds.com Darrell Lea Brands 83 www.darrelllea.com

Delicato Family Wines 85 www.delicato.com

Diageo Beer Company 94 Smirnoff ICE Smash www.smirnoff.com

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

Dover Corporation 128 www.doverfuelingsolutions.com/nacs

Electrolit USA 58-59 www.electrolit.com

Franke 19 www.us.coffee.franke.com

Ganymede Technologies Corp dba J3POS 37 www.j3pos.biz

GOYA Foods Inc. 21 salesinfo@goya.com www.GoyaTrade.com

GSTV 175 www.GSTV.com

The Hershey Company Back Cover www.hersheysolutions.com

Hunt Brothers Pizza 53 www.huntbrotherspizza.com

Innovative Control Systems 91 www.icscarwashsystems.com

ITG Brands 31, 49, 97 www.itgbrands.com

Johnsonville Sausage LLC 57 www. johnsonville.com

Jonny Almond Nut Company 169 www.werebetterthannothing.com

Krispy Krunchy Foods LLC 50 www.krispykrunchy.com

Lavi Industries 161 www.lavi.com

Liggett Vector Brands Inc. 35 www.liggettvectorbrands.com

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LSI Industries 40-41 www.lsicorp.com/rcs

Mars Wrigley 33 www.mars.com

MasonWays 18 (800) 837-2881 info@masonways.com www.masonways.com

Matrix Capital Group Inside Back Cover www.matrixcmg.com

MIXVAL 142-143 www.MIXVAL.com

Modern Store Equipment 71 (877) 532-8433 sales@modernstoreonline.com www.modernstoreonline.com/cstore

Mondelez International 29

Musco Family Olive Co. 73 www.olives.com

NACS Foundation 6 www.conveniencecares.org

NACS Global Supplier Council 173 www.convenience.org

NACS Hunter Club 163 www.convenience.org

NACS Show 102 www.nacsshow.com

OLM Food Solutions 141 www.orderhotstuff.com

PDI Technologies 121 www.pditechnologies.com

Perfetti Van Melle USA 75 (Mentos) www.perfettivanmelle.com

Petromo – a Gluon Product 165 www.petromo.com

PIM Brands 65 (800) 369-7391 www.pimbrands.com

Premier Manufacturing Inc. 5 & 123 www.gopremier.com

RTS Companies 174 www.rtscompaniesinc.com

NACS would like to thank the members of the NACS

Global Supplier Council for their support of the industry’s international activities.

Membership in the NACS Global Supplier Council (GSC) provides rich and unique benefits to NACS supplier members who conduct business on a global scale in the international convenience and fuel retailing industry.

For more information about becoming a Global Supplier Council member, contact:

Bob Hughes | +1 (703) 518-4270 bhughes@convenience.org

Leigh Walls | +1 (703) 518-4215 lwalls@convenience.org

Member companies as

August 2022

Global Supplier Council Advantage

Global Supplier Council Classic

ADVERTISER INDEX

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SEB Professional 139 www.wmf-coffeemachines.com www.schaererusa.com www.wilburcurtis.com

Southern Champion (Buzzballz LLC) 167 www.southern-champion.com

Sirius XM Satellite Radio 47 www.siriusxm.com

Sugar Foods Corporation 115 (888) 708-2222

Swedish Match North America Game 45 (800) 367-3677 www.gamecigars.com

Swedish Match North America General Snus 112 (800) 774-7754 www.smna.com

Contact Information

Thank you to these advertisers who have demonstrated their support of the convenience and fuel retailing industry by investing in NACS Magazine.

Page Contact Information Page

Swedish Match North America White Owl 125 (800) 367-3677 www.whiteowlcigar.com

Swedish Match North America Zyn 13 (800) 367-3677 www.smna.com

Swisher International Inc. 105 www.swisher.com TMG International 137 www.tmginternationalinc.com

Travel Centers of America (TA) 99 www.ta-petro.com/franchising-opportunities

TRAX Retail 134 www.traxretail.com

Trion Industries Inc. Insert b/t 24 & 25 (800) 444-4665 www.triononline.com

Tyson Convenience 68 www.tysonfoodservice.com/your-channel/convenience

The Vita Coco Company 67 www.thevitacococompany.com

Wonderful Pistachios & Almonds LLC 89 www.wonderfulpistachiosandalmonds.com

XCaliber International 101 www.xcaliberinternational.com

BY THE NUMBERS

Convenience sales of prepared and ready-todrink (RTD) cocktails continue to be a boon for convenience retailers, outpac ing all other channels in sales and units sold across the first half of 2022 year over year. Despite the widespread reopening of bars and restaurants in 2021 and 2022, consumers continue to show they favor enjoying pre pared and RTD cocktails at home or at gatherings with family and friends.

Prepared and RTD cocktail sales in convenience increased from $206.1 million in the first half of 2021 to $280.5 million in the first half of 2022, a gain of 36.1%. In comparison, sales of those same subcatego

ries improved by 11.0% in all other channels across the same year-over-year period. Similarly, unit sales surged by 26.4% in convenience, while moving to the upside by only 5.1% in all other channels during the first half of 2022. Whether it’s kicking back at home or a quick trip to grab something to bring to a gathering, consumers are choosing convenience for a variety of libations.

The strong performance in prepared and RTD cocktails is also noteworthy as some of the closest substitutes for these products, alcoholic cider and alcoholic seltzer, saw sales decline in the first six months of 2022 relative to 2021, falling by 2.2% and 4.9%, respectively. Convenience shoppers appear to be increasingly turning to their favorite cocktails in an easy-toconsume format rather than alternative alcoholic beverages.

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