2024 NACS Magazine

Advancing Convenience & Fuel Retailing

APRIL 2024 SWEET SCOOPS Hand-dipped cones draw customers JOBS, CRIME, PRICES NACS surveys c-store consumers

Preparing for

SUMMER

DRIVE Ideas to gear up for peak

travel season

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ONTENTS NACS / APRIL 2024 FEATURES

60

30 Boosting Revenue,

Dressed for Success

the Fun Way

Retailers navigate the fine line between brand identity and ease of operations.

This article is brought to you by Pace-O-Matic.

Pace-O-Matic skill games draw customers into stores and keep them there.

66 Learning Loyalty

34 Road Trip

From Restaurants What lessons can c-stores take from QSRs?

Revelations Summer road trips are on the horizon, and convenience stores are gearing up to be the ultimate one stop shop.

42 What Consumers On the cover: Goodboy Picture Company/Getty Images. This page: inhauscreative/Getty Images

Say About Prices, Crime and C-Store Jobs The good news is that consumers are in a way better mood than last year—but that doesn’t mean they don’t have concerns.

50 More Miles Means

More Maintenance With travelers hitting the road, summer is a chance to fine-tune your vehicle care offers.

72 Protect Your EV

Charging Station From Vandals Don’t let a copper caper keep EV customers from recharging.

80

Shake It Up, Baby!

Get the scoop on quality hand-dipped ice cream and shakes.

STAY CONNECTED WITH NACS @nacsonline facebook.com/nacsonline instragram.com/nacs_online

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.

linkedin.com/company/nacs NACS APRIL 2024 1

ONTENTS NACS / APRIL 2024

IT’S A FACT

$18,063 The average sales per store, per month of beer in 2022.

CATEGORY CLOSE-UP PAGE 94

DEPARTMENTS 06 From the Editor 08 The Big Question 10 NACS News 16 Convenience Cares 20 Inside Washington

NACS has worked to ensure retailers have a level playing field when it comes to EV charging.

28 Ideas 2 Go

Corner Post delivers fast, personalized convenience to its customers.

90 Cool New Products 92 Gas Station

Gourmet The Henry family makes customers feel like they’re a part of the family.

94 Category Close-Up

C-stores buck the trend of soft beer sales as the category drives trips for retailers.

IL21/Getty Images

104 By the Numbers

PLEASE RECYCLE THIS MAGAZINE 2 APRIL 2024 convenience.org

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

/ APRIL 2024 EDITORIAL

NACS BOARD OF DIRECTORS

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

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

Ben Nussbaum Editor-in-Chief (703) 518-4248 bnussbaum@convenience.org Lisa King Managing Editor lking@convenience.org Leah Ash Assistant Editor lash@convenience.org CONTRIBUTING WRITERS Terri Allan, Amanda Baltazar, Shannon Carroll, Sara Counihan, Sarah Hamaker, Al Hebert, Maura Keller, Pat Pape, Emma Tainter 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 Nancy Pappas Marketing Director (703) 518-4290 npappas@convenience.org

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

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

OFFICERS: Lisa Dell’Alba, Square One Markets Inc.; Annie Gauthier, St. Romain Oil Company LLC; Chuck Maggelet, Maverik Inc.; Don Rhoads, The Convenience Group LLC; Brian Hannasch, Alimentation Couche-Tard Inc.; Varish Goyal, Loop Neighborhood Markets; Lonnie McQuirter, 36 Lyn Refuel Station; Charlie McIlvaine, Coen Markets Inc. PAST CHAIRS: Don Rhoads, The Convenience Group LLC; Jared Scheeler, The Hub Convenience Stores Inc. MEMBERS: Chris Bambury, Bambury Inc.; Tom Brennan, Casey’s; Frederic Chaveyriat, MAPCO Express Inc.; Andrew Clyde, Murphy USA; George Fournier, EG America LLC Terry Gallagher, Gasamat Oil/Smoker Friendly;

Raymond M. Huff, HJB Convenience Corp. dba Russell’s Convenience; John Jackson, Jackson Food Stores Inc.; Ina (Missy) Matthews, Childers Oil Co.; Brian McCarthy, Blarney Castle Oil Co.; Tony Miller, Delek US; Natalie Morhous, RaceTrac Inc.; Jigar Patel, FASTIME; Robert Razowsky, Rmarts LLC; Kristin Seabrook, Pilot Travel Centers LLC; Babir Sultan, FavTrip; Richard Wood III, Wawa Inc. SUPPLIER BOARD REPRESENTATIVES: David Charles Sr., Cash Depot; Kevin Farley, Impact 21 STAFF LIAISON: Henry Armour, NACS GENERAL COUNSEL: Doug Kantor, NACS

NACS SUPPLIER BOARD CHAIR: David Charles, Cash Depot CHAIR-ELECT: Vito Maurici, McLane Company Inc. VICE CHAIRS: Josh Halpern, JRS Hospitality/BCIP dba Big Chicken; Bryan Morrow, PepsiCo Inc.; Kevin LeMoyne, Coca-Cola Company PAST CHAIRS: Kevin Farley, Impact 21; Brent Cotten, The Hershey Company; Drew Mize, PDI MEMBERS: Tony Battaglia, Tropicana Brands Group; Patricia Coe, Advantage Solutions; Jerry Cutler, InComm Payments; Jack Dickinson, Dover Corporation; Matt Domingo, Reynolds; Mark Falconi,

Oberto Snacks Inc.; Ramona Giderof; Mike Gilroy, Mars Wrigley; Danielle Holloway, Altria Group Distribution Company; Jim Hughes, Krispy Krunchy Foods LLC; Kevin Kraft, Q Mixers; Jay Nelson, Excel Tire Gauge; Nick Paich, GSTV; Sarah Vilim, Keurig Dr Pepper RETAIL BOARD REPRESENTATIVES: Scott E. Hartman, Rutter’s; Chuck Maggelet, Maverik Inc.; Tom Brennan, Casey’s STAFF LIAISON: Bob Hughes, NACS SUPPLIER BOARD NOMINATING CHAIR: Kevin Martello, Keurig Dr Pepper

NACS Magazine (ISSN 1939-4780) is published monthly by the National Association of Convenience Stores (NACS), Alexandria, Virginia, USA. Subscriptions are included in the dues paid by NACS member companies.

Subscriptions are also available to qualified recipients. The publisher reserves the right to limit the number of free subscriptions and to set related qualifications criteria.

Subscription requests: nacsmagazine@convenience.org POSTMASTER: Send address changes to NACS Magazine, 1600 Duke Street, Alexandria, VA, 22314-2792 USA. Contents © 2023 by the National Association of Convenience Stores.

Periodicals postage paid at Alexandria VA and additional mailing offices.

1600 Duke Street, Alexandria, VA 22314-2792

ameriCan grown • manufactured • owned

ThaT’s The Premier advanTage Premier Manufacturing, Inc. is owned by U.S. Tobacco Cooperative, a cooperative of proud American farmers who grow the finest flue-cured tobacco in the U.S. to make high-quality, value-priced cigarette brands for adult consumers.

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UP FRONT FROM THE EDITOR

Telling a Better Story About C-Store Jobs

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6 APRIL 2024 convenience.org

64% of the people surveyed agree that customers are generally kind and appreciative toward people who work in c-stores.”

• 53% feel that working in a c-store is a relatively easy job.

Jeff Lenard, NACS vice president of strategic industry initiatives, walks readers through the findings, starting on page 42. The results of the NACS survey show that there are opportunities to tell a better story about c-store jobs.

Be sure to check out our other highlights in this issue, too, with several focusing on getting ready for summer drive season. My favorite is our feature on ice cream, which starts on page 80.

I hope you’re looking forward to a great summer, packed with travelers and opportunity.

Ben Nussbaum Editor-in-Chief

nito100/Getty Images

hy don’t more people want to work in the convenience industry?

The NACS/Coca-Cola Retailing Research Council recently released a new report titled “Convenience Industry Action Plan for Becoming an Employer of Choice.” The report highlights how, for convenience stores, a small pool of candidates is a big problem.

In another sign (if you needed one) of how massive our industry is, a full 8% of respondents said they currently work in a c-store or have in the past, while 9% would be interested in working in a c-store. That means 83% of respondents would take a pass on working at a c-store.

The report highlights opportunities to change negative perceptions. For example, concerns about team member safety are keeping some people out of the c-store labor pool. These can be addressed. Look for detailed insights about this report in the May issue of NACS Magazine. You can download the report at www.convenience.org/NCCRRC. Separately, a recent NACS survey dove into various perceptions consumers have toward c-stores, including jobs in convenience retail. You can read some of the findings in the article “What Consumers Say About Prices, Crime and C-Store Jobs.”

To whet your appetite, here are a few results: • 82% of respondents agree that convenience stores provide good first jobs for those looking to enter the workforce.

• 64% of the people surveyed agree that customers are generally kind and appreciative toward people who work in c-stores.

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UP FRONT THE BIG QUESTION

Compared to previous generations, what’s different about Gen Z in the workforce?

But for most people who are Gen Z—people born between 1996 and 2010— they’ve had to grow up so fast. I was talking to someone the other day, she said “I was nine years old when the recession hit and that completely transformed my life. I remember how that affected my parents. I remember the serious conversations in our household.” Gen Z is just so much more practical, I feel like, than generations before. They’ve had to be.

You see people talking about this generation, and how they’re asking for higher wages, or they’re pushing back on the finances, and it’s kind of like, of course they are! They grew up during two recessions and then they lived through the pandemic and saw the kind of financial impact that had.

Gen Z tends to have Gen X parents, who are so different than Baby Boomer parents. Boomer parents tended to be more like, “I want to empower you to shoot for the stars and craft your own way.” And Gen X parents tend more towards, “Do you know how difficult the world is out there?”

With Gen Z, what we’re seeing is, because they are so practical, if you’re a leader for any kind of company, say to them, “I care about you as a person.

I’m going to give you some resources to train you. So even if you leave here, you can take the skills you learned at 8 APRIL 2024 convenience.org

 Hannah Ubl, Good Company Consulting. Ubl spoke at NACS Leadership Forum and NACS Human Resources Forum.

this company and they are transferable somewhere else.” I think Gen Z is drawn to places that invest in them.

Another thing: Gen Z is looking for a psychologically safe environment, and looking for leaders who take time to listen to them and then take action based on what they’re hearing.

One thing that’s important about this group is they want extremely clear, explicit instructions. We worked with a theme park for a couple of years. And people who are making funnel cakes, for example, might say, “You need to tell me exactly steps 1 through 10 of how to make these, but then I need to know all of the extra steps, like when do I change my gloves?” It’s about having truly explicit instructions. Whereas for Millennials, there’s less of a desire for some of that because it takes away the opportunity for them to try it their own way.

Anecdotally, I hear from people that this generation is great in the workplace. We should listen to them. We all do better when we listen to young voices.

UP FRONT NACS NEWS

Introducing the NACS State of the Industry Talent Insights Dashboard NACS’ annual compensation study aggregates convenience industry-specific compensation, total rewards and retention data to help retailers build a competitive compensation strategy. To ensure you can use NACS compensation data to its fullest potential, NACS has created an interactive dashboard that aids data visualization and helps retailers hire strategically and benchmark against peers in the industry.

The NACS State of the Industry Talent Insights Dashboard® provides the most current year’s human resource benchmarking data, highlighting 10 APRIL 2024 convenience.org

the key categories of compensation, turnover, benefits and recruitment. It’s all the same data and insights human resources professionals were used to seeing in the former Compensation Report, and is wholly collected from convenience retailers.

“This is a game-changer—no more scrolling through pages and pages of a static PDF. You’ll be able to easily and quickly find and access the benchmarking data you need,” said Jayme Gough, NACS research manager. Purchase access to the Dashboard at convenience. org/store.

JLco - Julia Amaral/Getty Images

The Dashboard, which replaces the Compensation Report, allows enterprise access to all of the benchmarking data retailers need.

metamorworks/Getty Images

NACS Welcomes New Staff NACS has added new staff, including two new members of its engagement team.

April VanApeldorn is the NACS director of retail engagement, west and Chris Postlewaite is the NACS director of retail engagement, east.

VanApeldorn most recently served as vice president of operations for Mass Equities, which operates roam’n stop stores. Prior to that, she served as director of dealer wholesale operations for MAPCO Express Inc. She also served in leadership roles with Delek and RaceTrac.

Postlewaite was most recently at Campell Oil Co./Minuteman Food Mart, where he was senior director of retail.

He also held leadership positions at Holmes Oil/Cruizers, CEFCO Convenience Stores, GPM Investments, Valor Oil/ Jumpin’ Jack’s and Postlewaite’s Gas & Deli. He also served three years in the United States Navy.

In these newly created roles, VanApeldorn and Postlewaite are responsible for engaging new and existing member companies and their employees.

“Bringing in these industry veterans is part of our commitment to making sure our retailer members have great partners at NACS who help them get the most out of NACS membership, including our educational resources, events and fantastic advocacy team,” said Jeff Burrell, NACS vice president of retail engagement. “April and Chris will be at many industry events and are also traveling to visit select retailers when they are able."

Scott Bolden joined NACS as a marketing manager. Bolden has extensive experience in strategic plan development, managing website and social media content development, exhibits and events marketing and project management. Most recently, Bolden was marketing manager for the Executive Leadership Council.

Romeo Clemente joined NACS as an accounts payable coordinator. Clemente earned a B.S. in finance from Virginia Commonwealth University earlier this year. While in school, he served as a financial advisor intern for First Financial Group and as an accounting intern for Energy Recovery Inc.

Dive Into Sustainable Transportation With TEI The Transportation Energy Institute will hold its annual conference at the Loews Minneapolis Hotel in Minneapolis, Minnesota, May 13-15.

This year’s theme is Innovation for Sustainable Transportation. The event offers attendees a chance to explore the latest issues facing the market and network with their peers.

The conference is an opportunity to learn from speakers and, more importantly, from other attendees who are deeply involved in the energy industry.

It is the one place to connect with experts from all facets of the transportation sector.

A list of session topics can be found online at transportationenergy.org. Some of the 2024 program topics include: • A Data-Centric Perspective on the Light-Duty Vehicle Transition • Transitioning Fleets to Zero Carbon • Building a Viable EV Charging Network • Electricity Reliability in an Increasingly Electrified World • Biofuels—The Near-Term Solution?

• Future of Low Carbon Fuel Standards

NACS APRIL 2024 11

UP FRONT NACS NEWS

Member News RETAILERS

Parkland Corporation announced the appointment of James Neate, an investment banking executive, to its board James Neate of directors.

Neate has an over 30-year career in the Canadian banking industry at Scotiabank.

Neate most recently served as president and group head of corporate and investment banking, with global management responsibility for investment banking, global business payments and corporate banking.

Emily Sheetz now serves as executive vice president of strategy and IT for Sheetz Inc. Emily is responsible for providing Emily Sheetz leadership and direction for 250 employees from Sheetz’s strategy, IT and innovation teams. Emily will also focus on formalizing the company’s strategic planning processes and forging new working relationships and synergies across the organization.

Ryan Sheetz is now executive vice president of marketing and supply chain at Sheetz Inc. Ryan oversees the comRyan Sheetz pany’s marketing, as well as Sheetz Distribution Services and Sheetz Brothers Kitchen. Ryan will develop the company’s annual marketing strategies and drive implementation of go-to-market plans.

12 APRIL 2024 convenience.org

Sheetz Inc. appointed Trevor Walter as executive vice president of petroleum supply management. Walter will Trevor Walter lead and direct all aspects of the organization’s supply chain policies, objectives and initiatives. Walter also will lead external logistics and control processes and oversee domestic sourcing of material and services and transportation.

SUPPLIERS

Mondelēz International Inc. appointed Brian McNamara to the company’s board of directors.

McNamara has Brian McNamara served as chief executive officer of Haleon plc, formerly GSK Consumer Healthcare, since May 2022.

Steve Wright is now manager, strategic dealers at Hoshizaki.

Wright has 26 years in the foodservice industry.

Steve Wright Wright brings a wealth of industry knowledge as a certified foodservice professional (CFSP) and certified professional manufacturer’s representative (CPMR).

John Blizzard

John Blizzard joins Hoshizaki as manager of strategic sales.

Blizzard will drive new business initiatives within national chains,

consultants and the medical channel. Blizzard has over 20 years of industry experience.

Kevin Geyer joins Hoshizaki as the newest area sales manager supporting the Michigan territory.

Geyer has 18 Kevin Geyer years industry experience and previously was part of Parks Maintenance, where he cultivated longterm industry relationships while selling foodservice equipment.

Tyler Cameron joined the Rovertown company as head of strategy and analytics.

Cameron will spearhead the Tyler Cameron development of next-generation digital engagement analytics and reporting. Cameron most recently served as MAPCO’s director of loyalty. Cameron also launched the MAPCO mobile app.

Kathy Puckett is now vice president of sales and business development at Reichel Foods. Puckett joined the Reichel Foods team in February 2023 as national sales manager. Puckett will continue to assist retailers in all industry channels including convenience, distributors, vending, airline and private brands.

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Contact your GOYA® representative or email salesinfo@goya.com | trade.goya.com NACS APRIL 2024 13

UP FRONT NACS NEWS

New Members

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

NEW HUNTER CLUB MEMBER

Bronze

AMCON Distributing Company Omaha, NE www.amcon.com J & M Distributors Inc. Little Rock, AR www.jmdistributorsinc.com OLIPOP Oakland, CA www.drinkolipop.com Philips 66 Company Houston, TX REDCON1 Boca Raton, FL www.recon1.com

Silver Chobani Norwich, NY www.chobani.com Lucky Beverage Co. Austin, TX Trinchero Family Estates dba Sutter Home Winery Saint Helena, CA www.tfewines.com RETAILERS Brenton Investment Corp. dba Hit-n-Run Food Stores Youngsville, LA

Posto de Gasolina Lord Barra Sul Ltda Rio de Janeiro, Brazil www.autolord.com RMC Brea, CA www.rahimiancorp.com SUPPLIERS 1st Phorm Fenton, MO www.1stphorm.com AdToScreen Pleasant Grove, UT Advanced Refrigeration Technology (China) Co. Ltd Yantai, Shandong, China Aqua Case Scottsdale, AZ www.aquacase.net Arla Foods Inc. Basking Ridge, NJ www.arlausa.com Azure Standard Dufur, OR www.azurestandard.com Best Name Badges Plantation, FL www.bestnamebadges.com BlackArch Partners Charlotte, NC

Broadway Express Svcs Ltd. Arima, Trinidad and Tobago

Bolthouse Fresh Foods Bakersfield, CA www.bolthouse.com

Bowlin Travel Centers Inc. Albuquerque, NM www.bowlintc.com

C. Cretors & Company Wood Dale, IL www.cretors.com

Phillips 66 Company Houston, TX

CAMO Energy Pittsburgh, PA www.camoenergyshots.com

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Central Beer Miami, FL Chenming Industry and Commerce Shougang Co. Ltd Shouguang, Shandong, China www.chenhongwood.com Chuckanut Bay Foods Blaine, WA www.chuckanutbay.com Club 13/Deltiva Hastings, FL Confetti Snacks Inc. San Fransico, CA Convenience Store News dba EnsembleIQ Chicago, IL www.csnews.com Cosun Technology (Shenzhen) Co. Ltd. Pudong New District, Shanghai, China CT Bakery Etobicoke, ON, Canada www.ctbakery.com Dauphinias Sherbrooke, QC, Canada www.dauphinias.co Dieffenbach’s Potato Chips Inc. Womelsdorf, PA www.dieffenbachs.com Dongguan Display Leader Co. Ltd. Dongguan, China www.tonghuihardware.en.alibaba.com E S Foods Woodbury, NY www.esfoods.com Emmi Roth Stoughton, WI www.emmiroth.com Fanale Drinks Hayward, CA

Ford Gum & Machine Co. Inc. Buffalo Grove, IL www.fordgum.com Fox Marketing Products Murrieta, CA Fresh Innovations LLC Rhome, TX www.freshinnovationsllc.com Go Energy Foods Inc. Bluffdale, UT www.e3energycubes.com Gorilla Mind Boise, ID www.gorillamind.com Gaungzhou Trond Display Co. LTD Guangzhou, Guangdong, China www.gspmed.com Hara Brands Las Vegas, NV www.harabrands.com Hawaiian Host Group South Lebanon, OH www.hawaiianhostgroup.com Imperial Brown Portland, OR Imprint Plus Richmond, BC, Canada www.imprintplus.com Jail Breaker Brands London, KY www.jailbreakerbrands.com Jans Enterprises Corp.

El Monte, CA www.jansfood.com Kagome Foods Inc. Los Banos, CA KC Belle Baton Rouge, LA

KC Store Fixtures Kansas City, MO

Mitra9 Brands Fort Myers, FL

King B Distribution LLC Sandy, UT www.gotkushkubes.com

NAELCO INC. Columbia, TN www.bigdotlighting.com

Kırdağ LTD/Perfect Delights USA

Neon Phoenix, AZ

Schafer Retail Solutions + Adair, IA

Kudo Snacks Sandy, UT

Northeast DSD Group Inc. Mount Vernon, NY

Simply Gum Brooklyn, NY

Loomis Houston, TX www.loomis.us

Nutrifreeze Cypress, TX www.nutrifreezellc.com

Southern Champion Tray Murfreesboro, TN

Trimark Food Brands Inc. Toronto, ON, CA www.tropicaldelight.com

Lust Vapes Inc. Edison, NJ

Palermo’s Villa Inc. dba Palermo’s Pizza Milwaukee, WI www.palermospizza.com

Spylt Lehi, UT

Tugboat Creative Works New Haven, CT

Star Charge Americas Corp Santa Ana, CA

U.S. Cooler Quincy, IL www.uscooler.com

M&Q Packaging LLC dba PanSaver Limerick, PA www.pansaver.com Mama’s Creations East Rutherford, NJ Mini Melts Ice Cream Trevose, PA www.minimeltsusa.com

Platinum Goods Corp.

Miami, FL Pure Green Juice Co. Sunrise, FL www.puregreen.com Revolution Consumer Solutions Vernon, CA

Sauer Brands Richmond, VA www.cfsauer.com

Synergy Flavors Wauconda, IL www.synergytaste.com

Sawang Leangtong Company Bangkae, Thailand

Tillamook Country Smoker Inc. Bay City, OR www.tcsjerky.com Top Notch Jerky LLC Sugar City, ID www.topnotchjerky.com

Suzhou HongYuan Business Equipment Manufacturing Co. Ltd Suzhou, China SwiftScale Retail Solutions Rolling Meadows, IL www.swiftscaleretail.com

VoCoVo Aurora, IL www.vocovo.com Zyng Technologies Chandler, AZ www.zyngtechnologies.com

Calendar of Events APRIL Conexxus Annual Conference April 28-May 02 | Live! By Loews Arlington, Texas

NACS Executive Leadership Program at Cornell July 28-August 01 | Dyson School, Cornell University Ithaca, New York

JUNE NACS Convenience Summit Europe June 04-06 | Intercontinental Barcelona Barcelona, Spain

OCTOBER NACS Show October 07-10 | Las Vegas Convention Center Las Vegas, Nevada

JULY NACS Financial Leadership Program at Wharton July 14-19 | The Wharton School University of Pennsylvania Philadelphia, Pennsylvania

NOVEMBER NACS Innovation Leadership Program at MIT November 03-08 | MIT Sloan School of Management Cambridge, Massachusetts

2024

NACS Women's Leadership Program at Yale November 17-22 | Yale School of Management New Haven, Connecticut 2025

JANUARY Conexxus Annual Conference January 26-30 | Loews Ventana Canyon Tucson, Arizona

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

NACS APRIL 2024 15

CONVENIENCE CARES

Sheetz For the Kidz Raised $1.7 Million in 2023 More than 11,000 children directly benefitted from the contributions.

S

heetz For the Kidz, an employeedriven charity supporting underprivileged children, raised more than $1.7 million in 2023, including a record-breaking $807,328 in December.

During the months of July and December, Sheetz customers made donations at checkout through donation boxes or by adding donations to their purchase at point of sale. Each of Sheetz’s more than 700 stores supported 16 children from their local communities, totaling over 11,500 children helped this past holiday season. In the last two years, Sheetz For the Kidz has raised over $3 million for local families in need during its annual months of instore fundraising.

“Each and every year, we are blown away by our customers, who always exceed our expectations. Our customers continue to bring hope and joy to thousands of children across our footprint during the holiday season,” said Brittany Funcheon, Sheetz For the Kidz executive director.

In partnership with Make-A-Wish, funds raised during the campaign also sponsored wishes of children with

16 APRIL 2024 convenience.org

life-threatening medical conditions. The charity sponsors one child per Sheetz operating district, totaling 71 children this past year.

In addition, Sheetz For the Kidz partners with Feeding America to provide food to children in need. In 2023, its $716,000 commitment served over 1.5 million meals through backpack programs, kids cafés, school and mobile pantries and summer programs.

In 1992, two district managers created Sheetz For the Kidz as a way to give children in need the opportunity to celebrate the holidays with new toys, clothes and other basic needs. That first year, the managers raised $12,000 and took 126 children shopping. The charity partners with the Salvation Army, which selects families within each store’s community to participate in the program.

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CONVENIENCE CARES In The Community Every year, the convenience retail industry dedicates billions of dollars to advancing the futures of individuals and families in our communities.

The NACS Foundation unifies and builds on NACS members’ charitable efforts to amplify their work in communities across America and to share these powerful stories.

Learn more at www.conveniencecares.org.

fifth annual fundraiser for Disabled American Veterans (DAV). In total, EG America raised $750,000. DAV programs include transportation to and from medical appointments at no cost. Members of EG America’s leadership team presented a check to DAV Executive Director and CFO Cody VanBoxel in January.

THE GATE FOUNDATION RAISES $50K FOR THE AMERICAN LUNG ASSOCIATION

ALIMENTATION COUCHE-TARD DONATES TO UNITED WAY CANADA 1 United Way Canada (Greater Montreal Area) was the recipient of more than $318,000 from Alimentation CoucheTard. The funds were raised through a variety of initiatives, including events such as a company auction, a special pastries day event, the generous donations of employees and a series of fundraising activities across various points of sale.

EG AMERICA RAISES $750,000 FOR DISABLED AMERICAN VETERANS 2 Guests at EG America’s Certified Oil, Cumberland Farms, Fastrac, Kwik Shop, Loaf N’ Jug, Minit Mart, Quik Stop, Sprint Food Stores, Tom Thumb and Turkey Hill stores donated $1, $5 or an amount of their choosing during EG America’s

3 The GATE Foundation, the philanthropic arm of Jacksonville-based GATE Petroleum Company, and GATE customers raised $50,000 for the American Lung Association. Funds were collected in coin boxes located at the registers of all GATE locations in Florida, Georgia, North Carolina and South Carolina, beginning in July and running through December 2023.

GPM RAISES OVER $193,000 FOR THE MUSCULAR DYSTROPHY ASSOCIATION 4 GPM Investments LLC, a subsidiary of ARKO Corp., raised more than $193,000 in customer donations during its 13th annual holiday pinup campaign in 2023, and cumulatively has raised over $2 million for the mission of the Muscular Dystrophy Association since 2011.

PARKER’S COMMUNITY FUND DONATES $5 MILLION 5 Parker’s Kitchen celebrated the new Gregory M. Parker Emergency Department at Roper St. Francis Healthcare in Charleston, South Carolina, on January 29. The ribbon-cutting ceremony recognized Parker’s $5 million donation—the largest in the system’s history—which established the Roper St. Francis Foundation Parker’s Community Impact Fund to support uninsured and underinsured residents throughout the greater Charleston area.

SINCLAIR OIL RAISES OVER $635,000 FOR FOLDS OF HONOR 6 Sinclair Oil raised more than $635,000 in its campaign Fueling Folds of Honor for educational scholarships to support the children and spouses of fallen or disabled veterans and first responders.

The funds were raised during the company’s fall 2023 giving campaign. A portion of funds from fuel purchased at participating retail locations and $3 for every new DINOPAY app account went to Folds of Honor.

About 127 educational scholarships of $5,000 each will go to families of fallen veterans and first responders in the areas served by Sinclair stations.

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NJOY

INSIDE WASHINGTON

Inside the Biden Administration’s Ambitious EV Charging Goal NACS has worked to ensure retailers have a level playing field.

BY PAIGE ANDERSON

Key Figures

500,000 the number of EV charging stations that the Biden administration aims to install

$2.5 billion

the money allocated to a grant program to help fund EV charging projects along designated alternative fuel corridors.

20 APRIL 2024 convenience.org

A

t the beginning of his term, President Joe Biden stated that his administration had a goal of installing at least 500,000 EV chargers in the transportation refueling system across the United States to lower the carbon footprint of the transportation system.

To meet that goal, the Biden administration has been pursuing an aggressive regulatory agenda to reduce carbon emissions in the transportation sector. The administration has also been pursuing an expedited transition to a net-zero vehicle profile through incentives included in the Infrastructure Investment and Jobs Act (IIJA) (also known as the Bipartisan Infrastructure Law) and the Inflation Reduction Act for EVs and EV charging infrastructure, along with regulatory proposals, such as EPA’s tailpipe emissions rulemakings on light-duty vehicles and mediumand heavy-duty vehicles. While the regulatory rulemakings have not been finalized, funding has begun to be released from the incentive programs, including the National Electric Vehicle Infrastructure (NEVI) program.

The NEVI program was created and included in the $1.2 trillion bipartisan infrastructure bill, which was passed

by Congress and signed into law by President Biden in November 2021.

The NEVI program will allocate $7.5 billion for EV charging projects and to establish an interconnected network to facilitate data collection, access and reliability of the EV charging network.

There are two groups of funding: The

Keep an Eye Out for More Regulatory Rules Soon

Scharfsinn86/Getty Images

BY JON TAETS

Funding has begun to be released from the incentive programs.

In January, the U.S. Department of Labor (DOL) released its new rule governing independent contractor status and, at publication time, is tentatively scheduled to release its final rule governing overtime exemptions sometime in February.

These are just two of the myriad regulations we are likely to see released by the Biden administration before July. The DOL has almost three dozen rules listed in the “proposed rule stage,” according to the latest Unified Agenda of Regulatory and Deregulatory Actions. Other agencies—such as the Department of Interior and the EPA—have dozens more pending. Many of those won’t directly affect the convenience retailing industry, but some will.

This kind of rush to finalize new rules in, potentially, the final year of an administration is nothing new. Every four years, we tend to see an increase in the pace of significant rulemakings out of Washington in the first half of the year or so. The reason has to do with the Congressional Review Act (CRA). The CRA allows Congress to vote to nullify regulations if such a resolution of disapproval is acted on within a 60-consecutive-legislative-day window after the rule is released. The law was created in 1996 but was only successfully used once prior to 2016. In the last eight years, Congress has successfully nullified 19 more regulations. The majority of those happened following President’s Trump inauguration in 2017.

The 60-consecutive-legislation-day window is the real driver of the timing. If that clock has not expired before the end of a Congress, the next Congress gets an additional window of time within which to file such a resolution. Because both chambers are scheduled to be out of session for the entire months of August and October, rules must be finalized before some time likely in May or June to avoid running out the clock during the 118th Congress.

With the possibility of changes in the White House and in Congressional majorities on the table, the Biden administration wants to avoid having that clock running out.

NACS APRIL 2024 21

INSIDE WASHINGTON

first is the NEVI formula program for the states, and the second is a $2.5 billion grant program to help fund EV charging projects along designated alternative fuel corridors. The goal of these two programs is to create a nationwide, interconnected network of DC fast-charging stations along federally designated alternative fuel corridors.

During the IIJA legislative process, NACS supported the statute and worked to make sure language was included that ensures that convenience and fuel retailers would have access to these incentives. Ensuring this program encouraged private sector investment and a competitive market and level playing 22 APRIL 2024 convenience.org

field for EV charging were top priorities for NACS. As part of the NEVI program implementation, states had to submit their plans for approval on how they would spend and distribute these funds, and they will have to submit updated plans annually. All state plans were approved for the initial round in 2023.

These state plans varied and took many approaches to expand EV charging station networks. Some states took a traditional, competitive RFP approach with a large number of recipients. Other states had a single application approved for funding. Some states focused on larger businesses,

with broader sites receiving funds, and other states had a mix of large and small business operators based on their sites win funding. As part of the criteria to determine who would receive funding, businesses that had amenities such as bathrooms and food service or that were open 24/7 were rated positively.

And in some states, limits on profits are being considered if a business receives NEVI funding.

••• Also included in the IIJA was language to encourage states to look at their electricity rates for transportation and to address potential obstacles for private sector investment, such as

coffeekai/Getty Images

These state plans … took many approaches to expand EV charging station networks.

INSIDE WASHINGTON ONE VOICE This month, NACS talks to

Bill Weigel, unfair rates and extra fees, including demand charges. Again, state actions were varied. Some state public utility commissions are looking at alternative rate structures for electricity being used to charge EVs, with some states specifically looking at ways to address demand charges. Meanwhile, other states took a cursory approach with little change.

Throughout the implementation process, whether it has been the state implementation plan process, public utility commission proceedings or state legislative proposals for modernizing the electricity market and the role of investor-owned utilities in expanding the EV charging network, NACS has been closely monitoring this effort. NACS has also been looking at whether or not the legislative intent and guardrails to ensure private sector investment and competition are being met.

NACS, as a founding member, has been working through the Charge Ahead Partnership on much of this work, and where appropriate, has sent joint industry letters. NACS will continue to keep a close eye on this program and work to ensure the convenience and fuel retailing industry has the opportunity to compete and offer EV charging to its customers.

If you are interested in learning more about what’s happening with the NEVI program in your state, you can go to the Federal Highway Administration’s website at www.fhwa.dot.gov and go to the Bipartisan Infrastructure Law section.

In addition, the Charge Ahead Partnership is another valuable resource to learn about what is going on with creating a competitive EV charging market.

Information can be found at www. chargeaheadpartnership.com.

Paige Anderson is NACS director of government relations.

She can be reached at panderson@ convenience.org.

24 APRIL 2024 convenience.org

chief executive officer, Weigel’s What role in the community do you think convenience stores should play?

Convenience stores, by their very nature, are central to the daily lives of their customers and the communities they serve. They are not just stops for fuel or last-minute groceries—they are neighborhood hubs where people can connect, find essential items at any hour and access services that might not be available elsewhere. We aim to be more than just a place to shop. We also strive to be a supportive neighbor—providing jobs, sourcing local products such as our own packaged milk and participating in community and charitable events. Our convenience stores are places where customers feel recognized and valued and where they can rely on us for more than just products—namely community engagement and support.

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

NACS political engagement, to me, means having a voice in the shaping of policies that directly affect our industry and our ability to serve our communities effectively. It’s about advocacy, education and partnership—ensuring the unique challenges and opportunities facing the convenience store industry are recognized and addressed by policymakers. Being politically engaged has allowed us to contribute to discussions that affect our operations—from credit/ debit card fee issues to regulations on fuel standards and tobacco sales to labor laws. The benefits are tangible. We’ve been able to influence positive changes, mitigate challenges before they become hurdles and ensure our industry’s needs are considered in legislative and regulatory processes. Being engaged has empowered us to better navigate the complex regulatory landscape and anticipate changes that could affect both our business and our customers.

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

Several federal legislative and regulatory issues are of concern, particularly those related to labor laws, fuel regulations and credit/debit card fee issues. The ongoing discussions around minimum wage increases and overtime rules could significantly affect our operational costs and staffing flexibility. Fuel regulations, including those related to renewable fuel standards and emissions, are also critical issues. Finally, the financial pressure our industry continues to face with credit card fees is at the forefront and is a key to providing value to our customers.

What c-store product could you not live without?

On a lighter note, the one c-store product I couldn’t live without has to be Weigel’s own locally produced milk. It’s a staple in my daily routine, a direct link to our roots as a dairy and a reminder of the importance of supporting local products and businesses. It also represents the quality and care we put into all our offerings—symbolizing our commitment to only providing the best to our community.

Plus, it’s just incredibly fresh and delicious!

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

Brandon Hofmann The Parker Companies

Alexander Baloga Pennsylvania Food Merchants Association

Kendall Huckabee The Coca-Cola Company

Michael Barley Pace-O-Matic Tumay Basaranlar Atlantis Management Group Lisa Biggs Impact 21 Gary Braaten CHS Inc. (Cenex) Patricia Coe Advantage Solutions Lucia Crater Impact 21 Matt Durand EG America LLC Ryan McElroy Weigel’s Stores Inc. James Fiene Clark Oil Company Inc. David Freese Titan Cloud Software Terry Gallagher Gasamat Oil Corp./ Smoker Friendly Paul Goldean Pace-O-Matic

Jen Johnson NACS Sam Johnson J & M Distributors Inc. Abbey Karel Bounteous Andy McIlvaine Coen Markets Inc. Laura Miller NACS Bryan Morrow PepsiCo Inc. Paul Neuhoff GSP James Norberg Krispy Krunchy Foods Gus Olympidis Family Express Corporation Steven O’Toole Stuzo LLC Nick Paich GSTV Jigar (JP) Patel FASTIME

John Rudolfs The Parker Companies Darrin Samaha Yesway Jonathan Shaer Altria Client Services LLC Dan Shapiro Krispy Krunchy Foods Adam Sheetz Sheetz Inc. Keith Slater Family Express Corporation Gray Taylor Conexxus Ron Tobb Minor Decliner Tom Trkla Yesway Daniel Trotzer GSTV David Tucker NCR Corporation Jason Wakely Pilot Travel Centers LLC Scott Walters Rovertown Paula Weeks The Coca-Cola Company

David Poulnot Upside

Alicia West Altria Group Distribution Company

Nicolas Poxson Krispy Krunchy Foods

Geoffrey Wigner Nashville Wire Products

Allen Preslar InComm Payments

Kathy Williams The Coca-Cola Company

Ryan Herrin Kellanova Away From Home

Trish Riddle Keurig Dr Pepper

Michael Winton Republic Amusements

Scott Hill Jack Link’s Protein Snacks

John Rodriguez Upside

Scott Worthington Juice Head Pouches

Jeffry Harrison Rovertown Jessica Hendrickson Altria Group Distribution Company

26 APRIL 2024 convenience.org

IDEAS 2 GO

Name of company: Corner Post Year founded: 2018 # of stores: 1 Website: cornerpostnd.com

28 APRIL 2024 convenience.org

Cornering the Market

Corner Post delivers fast, personalized convenience to its customers.

BY SARAH HAMAKER In Watford City, North Dakota, locals and tourists can find quick, customized service at Corner Post Convenience Store. “We offer the community a convenient location that serves quality food and offers fuel,” said manager Starla Davis. “As we like to say, we’re a place that doesn’t sacrifice quality for convenience.”

In 2018, Brady Lund, a local businessman, opened the store with the idea “to strive to make our customers’ day a little more awesome,” according to the store’s mission statement. Lund had worked for his parents’ gas station and store for years before branching out on his own with Corner Post. “He took his experience in running a gas station property and put that into Corner Post,” Davis said.

The Corner Post has a thriving car wash as well, with salt from the roads in the winter, mud from the banks of Lake Sakakawea in the summer and plenty of unpaved roads around the area.

FRESH TASTE The cornerstone of Corner Post is its fresh foodservice program. “Our kitchen puts out our own customized food products,” Davis said. Homemade fried chicken, pizza, meatloaf, tacos and other comfort foods dominate the menu. The store has a rotation of daily specials: Meatloaf Mondays, Taco Tuesdays, Chinese Wednesdays, Pasta Thursdays and Barbecue Fridays. “Everything we serve is prepared fresh each day in our kitchen,” Davis said.

The kitchen also stocks the store’s grab-and-go section with pizzas, breakfast sandwiches and burritos, salads, fruit cups, wraps and sandwiches. In addition, all of the meals can be packaged to go. “We also have four two-tops and three tables that could seat four to six people if our customers want to eat their meal on the premises,” she said.

The foodservice has proven to be a big draw for customers. “While Watford City has lots of restaurants, we offer restaurant-quality food faster, which our customers appreciate,” Davis said.

The store has fresh coffee, tea, iced coffee, slushies and fountain drinks too.

The store doesn’t stock wine or beer because of a North Dakota law requiring alcohol sales to be conducted in a separate location from other products. “We do have tobacco products and the usual snacks, along with a large number of protein bars, and also packaged drinks, including a huge selection of energy drinks,” she said.

Soon, the Corner Post will offer barista coffee under its own store brand.

“This will be another way we can offer a more personalized experience to our customers,” Davis said.

In addition to food and beverages, the store has an extensive bait and tackle

department with top-of-the-line equipment. “We’re situated near a good area for water and ice fishing, and the owner is an avid outdoorsman, so we do a brisk business in bait and tackle all year long,” she said.

The store also stocks gear for cold or warm weather depending on the season, novelty items and automotive products.

“We do hats and hoodies all year long, and warm jackets and gloves in the winter and sunscreen, sunglasses and UV-protected clothing items in the summer,” Davis said.

STABILITY AND COMMUNITY Treating employees like family has many of them sticking around for years.

“We offer a very close, calm and welcoming atmosphere to staff and customers alike,” David said. “With competitive pay as well, we don’t have an issue keeping people working at our store.”

The Corner Post has become a staple in the community, providing sponsorships for many children’s and teen sports teams and schools, as well as giving donations to various charities and events. “We also participate in community cleanups, and had a cookies with Santa event this past December,” Davis said.

Each year on the anniversary of the store’s opening, it throws a bash for the community with free hot dogs and games in the parking lot. “We’re very passionate about giving back to the community,” she said.

Overall, it’s the family-oriented environment that turns one-time visitors into regulars. “A lot of our local customers have become friends,” she said. “I like to say we’re ‘Cheers’ without the beer.”

BRIGHT IDEAS Part of the way Corner Post in Watford, North Dakota, gives back to the community is through an on-the-job training program run by the local high school. “We get kids from this class who work in the store to learn the ropes,” said manager Starla Davis.

The high schoolers learn what it takes to run all aspects of a gas station and convenience store during their class. Over the years, several of them have graduated and returned to work at the Corner Post as fullfledged employees. “Our employees love working with these kids, who might be young but they’ve all made a good impression.

It’s been fun to watch them blossom and grow into responsible young adults,” she said.

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

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

To see videos of the c-stores we profiled in 2023 and earlier, go to www.convenience.org/Ideas2Go. NACS APRIL 2024 29

BOOSTING REVENUE, THE FUN WAY Pace-O-Matic skill games draw customers into stores and keep them there. BY AMANDA BALTAZAR

W

hen potential customers ask Pace-O-Matic about their skill games and if they’d be a good fit for their stores, the company is more than happy to answer their questions.

But quite often, the most valuable response can come from existing customers. The customers who, years ago, made the decision to go with Pace-O-Matic and have stuck with them.

“We operate with a lot of transparency,” said Paul Goldean, the CEO of Pace-O-Matic. “We always say, don’t take our word for it, ask the companies who have been with us for years.”

What do they say?

Bill Douglass, chairman of Douglass Distributing, who owned Lone Star Food Stores, a chain of 23 establishments, for decades, says Pace-O-Matic’s skill games are “the best single investment any retailer can make.”

Douglass says retailers are looking for new sources of revenue to offset an increase in operating costs and a decrease in gallons sold.

To get there, he said, you must have a product that draws consumers in. And keeps drawing them in.

“We have sold more fuel and inside sales since going with the games,” he said, adding that games remove the chore for consumers of stopping at a convenience store for gas.

30 APRIL 2024 convenience.org

“Every month our sales increase, and the reason the sales increase is because the games are creating a marketing awareness that we’ve got a fun activity. Fun sells. Fun works.”

REAL RESULTS Goldean says he hears the same thing from Pilot, 7-Eleven and Love’s, along with hundreds of mom-and-pop convenience stores.

“We’re all about metrics,” Goldean said.

“Our research shows that once customers come in to play the games, they’ll stay in the store for around 30 minutes.”

That equates to a boost in overall revenue.

That extra revenue can accomplish many things, he said. From buying a new roof, to paying competitive wages, to expanding healthcare access for employees or paying critical expenses.

“One retailer was able to get specialized oncology care for his wife thanks to the revenue Pace-O-Matic games brought in,” he said.

Goldean says Pace-O-Matic takes a lot of pride in helping operators of all sizes, but it’s “particularly meaningful” when the games make a big impact in the lives of smaller operators.

“When you make it possible for a momand-pop store, which was on its last legs, to stay open in Rock Springs, Wyoming, that’s exciting.”

HOW IT WORKS When a convenience store signs up with PaceO-Matic, the two parties sign a contract.

The agreement states that a store cannot have more than five machines and that the machines cannot bring in more than half of the store’s revenue.

“That way we’re always a supplement to the main business of a c-store,” Goldean said.

The successful partnership of Pace-O-Matic and Republic Amusements, a multistate operational company based in Colorado, works together to deliver supplemental income to small businesses.

Like Goldean, Matt Pascal, the owner of Republic Amusements, gets most excited when helping small businesses turn around.

“This gives people an entry point to the American dream,” Pascal said.

“They see their margins slip and see the cost of business continually going up, not to mention the clampdowns in their industry,” he said.

“But we can come in and give them an opportunity to earn equal or more revenue per square foot than anything else they can earn in the store,” he said. “That is exhilarating.”

Pascal has been working with Pace-OMatic for seven years and his company is responsible, in some states, for installing the machines, servicing them, handling the money and dealing with any service issues.

Pascal mentioned one improvement that has made things much easier for operators is the use of ticket redemption terminals (TRTs).

When players win, they can cash out that ticket at the TRT so that the store staff doesn’t have to worry about paying out winnings and the safety of carrying that cash.

“Pace-O-Matic is always making improvements,” Pascal said. “And the best part about it is we all have a voice. We can tell Pace-OMatic any challenges we’re having and they’ll work on it. The TRT is a great example.”

CUSTOMERS … STAY IN THE STORE FOR AROUND 30 MINUTES.

—Paul Goldean Pace-O-Matic CEO

NACS APRIL 2024 31

FUN SELLS. FUN WORKS.

—Bill Douglass Chairman, Douglass Distributing

LEGAL AND COMPLIANT Crucial to Pace-O-Matic’s success are the regulations it adheres to.

“Everyone knows the rules. It’s a limited field and you have referees,” Goldean said. “You have to have that type of regulatory structure in place. Operators have to agree to that.”

Frank Fina, Pace-O-Matic’s chief administrative officer, is in charge of compliance. He’s got a strong network of compliance officers in every state, largely made up of former law enforcement officials.

“We want to be regulated and we want to be good corporate citizens,” Fina said, pointing out that Pace-O-Matic’s business model ensures most of the income of the games goes into the states—to the c-stores, the local operators, as well as to taxing agencies.

Because Pace-O-Matic is so confident in the legality of its games, it indemnifies any convenience store it works with against damages.

Michael Pace: Revolutionizing Entertainment in Small Businesses The mastermind behind Pace-O-Matic, Michael Pace, pioneered a new era of entertainment for small businesses. With a rich history in gaming innovation, Pace’s journey began in 1980 with the invention of the first bar-top video game. A decade later, he introduced the world to the electronic pull tab, “Pot of Gold.”

However, Pace’s vision extended beyond mere entertainment; he sought to empower small businesses with revenue-generating opportunities. In his quest to merge skill-based gaming with local establishments, Pace-O-Matic was born.

In 2000, Pace realized his dream by launching Pace-O-Matic.

His dedication to legal compliance and ethical practices attracted the attention of Paul Goldean, who joined the company in 2019, recognizing the potential for small businesses to thrive amidst economic challenges.

“There’s nothing I’ve come across that is as economically powerful for a small business. People can sustain themselves through the ups and downs.”

Goldean said, emphasizing PaceO-Matic’s commitment to small business and partnerships.

“Pace-O-Matic has become a beacon of hope for both large and small convenience store operations,” he said.

Pace-O-Matic’s journey isn’t just about entertainment; it’s about empowerment, innovation, and integrity. By providing a lifeline for mom-and-pop stores and fostering economic resilience, Michael Pace’s legacy extends far Michael Pace Founder and Chairman beyond gaming—it’s about transPace-O-Matic forming lives.

32 APRIL 2024 convenience.org

“If anyone challenges the legality of the game, we show up with an army of experts and lawyers, show them the facts and the data and have always prevailed,” Fina said.

Pace-O-Matic takes this so seriously that it turned off all 7,000 of its terminals in the state of Virginia in July 2021 when the state passed a bill making them illegal.

“And we didn’t turn them back on until we won an injunction against the state against that ban,” said Goldean.

Although there is no evidence that skill games impact casino revenues, large casino conglomerates have opposed regulating the games, Fina said. “They’ve launched campaigns against us—sometimes attempting to regulate us out of existence—but when you have the facts and court rulings on your side it’s easy to come out on top,” he said.

The legality of the games, he said, is on a state-by-state basis, and Pace-O-Matic conducts an intense analysis of every state before it even begins to think about entering that market.

Because of this, Pace-O-Matic only operates in certain states—10 currently, though that may expand.

In some states, such as New York and Texas, it only operates in certain counties.

“We’re very deliberate, and we don’t want to rush into states until we feel we’re going to be secure there and have the human capital to expand and do it the right way,” Fina said.

‘EVERYONE FOLLOWS THE RULES’ The Pace-O-Matic compliance team conducts store visits to ensure adherence to contracts, proper operation of Pace-O-Matic machines and compliance with local regulations by operators. “We provide full operational support and ensure everyone follows the rules,” said Goldean.

The software in all Pace-O-Matic’s machines is checked and certified, too, by an outside party, and each machine features a sticker showing that it’s been certified and showing that it is legal.

Convenience stores are an ideal location for Pace-O-Matic’s games because they work best in locations where a business is accustomed to identifying the age of its shoppers.

“Convenience stores are used to selling beer, cigarettes and lottery tickets and have a system that can check the age of the player,” Goldean said. “We don’t want them in places that don’t have that built-in expertise.”

34 APRIL 2024 convenience.org

Summer road trips are on the horizon, and convenience stores are gearing up to be the ultimate one-stop shop.

Road Trip Revelations Emilija Manevska/Getty Images

BY SARA COUNIHAN

As summer approaches

and the call of the open road beckons, road trippers across the nation are gearing up for their adventures.

Their stops at c-stores won’t be just about grabbing a quick snack; today’s travelers are seeking a comprehensive experience. They crave clean bathrooms, energizing meals, beverages and top-notch customer service.

NACS APRIL 2024 35

GET YOUR SNACKS According to Circana’s 2023 Snacking Survey, close to half of consumers eat three or more snacks during the day.

“One trend we’ve seen and expect to see through the summer is all-day snacking,” said Casey Creegan, manager of private brands at Love’s Travel Stops. Creegan says that peach rings, beef jerky and doughnuts are popular snacks at Love’s during the summer.

According to Stuckey, travelers want a mix of tried-and-true comfort food and something new. She sees her customers pairing the company’s classic pecan log rolls with Stuckey’s new habanero cumin trail mix, for example.

Travelers also want international flavors and unique taste profiles.

People want to be indulgent on a road trip.”

36 APRIL 2024 convenience.org

“[Road trips] are a time when you’re open to exploring, so you’re also open not only to exploring different places but exploring different palettes because that’s part of the experience,” she said.

According to the Frito Lay Snacking Index, 80% of respondents agree that combining multiple food products to create the perfect bite is an art form, while 65% say they have their own favorite “eccentric” snack combos.

Consumers are also looking for nutritional value, with protein being the most important nutritional attribute (55%).

Some snacks are never far from customers’ minds when they’re in a convenience store.

According to the most recent NACS State of the Industry Report®, salty snacks was the only category that had unit increases among the top six in-store merchandise categories in 2022. Salty snacks accounted for 4.57% of inside sales, up 0.42 points from 2021, and was the sixth largest sales contributor and fifth largest margin contributor inside the store.

Although salty snacks still have consumers’ hearts and wallets, candy is not far behind, representing 3.55% of inside sales in 2022.

Alex Ringle, owner of EddieWorld in Yermo, California, is making sure that his store is fully supplied with gummy candy for the summer, and he’s also stocking up on another buzzing sweet treat—freeze-dried candy. “[Freeze-dried candy] is the massive new trend,” he said. “It’s selling ridiculously.”

According to Stuckey, customers use their road trip as a time to be indulgent in their snacking.

“More people are looking for combos, asking ‘What am I going to buy with this and make it fun?’” she said. “So putting those two together and telling your customers, ‘You’re road-tripping this summer? Be sure to grab something sweet and […] pair it with our really good Colombian coffee,’ recognizing that when people are on road trips, it is a moment to treat themselves.”

spaxiax/Getty Images; indigo_design/Shutterstock

HOP IN The mid-20th century saw the construction of the Interstate Highway System, which led to the birth of the Great American Road Trip.

Now, summer road trips are deeply embedded in the nation’s culture.

According to Stephanie Stuckey, the CEO of Stuckey’s, the road trip is making a comeback.

And she would know—her grandfather’s company, which is now hers, was founded on supplying travelers fuel, food and a few smiles.

“I think people are rediscovering literally their backyards and that you can take a road trip and not have to get in a woody station wagon and drive for a week,” she said.

We want to make sure that as the times change, we change with them.”

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FRESHEN UP According to the 2022 NACS Convenience Voices survey, 16% of all shoppers describe their reason for visiting a c-store as “I want to use the restroom.”

“Clean restrooms are so important to a traveler, and of course, they don’t know what the restroom’s going to be like from the outside, so they’re analyzing the outer appearance of the store, and if it’s well-maintained, that’s likely a reflection of what the inside will be,” said Stafford Shurden, a frequent road tripper and restaurant owner.

Ringle takes clean restrooms so seriously that he hires staff members whose sole responsibility is to clean and maintain the restrooms, and during the busy summer travel season, he hires extra staff members for this role. “[Clean restrooms] is the name of our game.

That’s what we built our reputation on,” he said. “We built two sets of bathrooms to ensure that they’re always clean, and we rotate between the two.”

Maintaining a clean and efficient store is another key to attracting and keeping discerning consumers. According to the Con38 APRIL 2024 convenience.org

What Road Trippers Want Here are tips and tricks from savvy retailers on catering to summer road trippers.

Casey Creegan, Love’s Travel Centers Retailers should expand their offerings to summer road trippers beyond just food and beverages. “[Our] customers are also really enjoying cooling gel neck pillows.”

Jamie King, Pilot Travel Centers Convenience is key on the road, so make sure there are enough quick food options for customers. “We have plenty of grab-and-go hot and cold items, including freshly cut fruit, sweet and salty snacks, and all the coffee and cold beverages a road tripper needs.”

Al Hebert, Gas Station Gourmet Bibs should be available at convenience stores for customers eating on the move, and it’s a thoughtful touch much appreciated by parents.

Alex Ringle, EddieWorld Discover the newest food and merchandise trends by exploring TikTok. “I feel like TikTok is definitely becoming a leading indicator of what’s coming and what is relevant.”

Stafford Shurden, Gas Station Tailgate Review and restaurant owner Don’t be afraid to stretch the limits of your foodservice offer. “Any gas station that serves hot food has the same kitchen I have [in my restaurant].

I do wish that some owners wouldn’t mentally limit themselves. You can literally do anything.”

Antonio_Diaz/Getty Images; indigo_design/Shutterstock

RECHARGE Speaking of coffee, nearly two-thirds of Americans have a cup of Joe every day, says the American Coffee Association, and cold coffee is quickly taking center stage, growing in popularity by 45% since January 2023 and a staggering 300% since January 2016.

“As the weather warms up, travelers are looking for a refreshing caffeine kick to keep them fueled,” said Jamie King, vice president, food and deli operations at Pilot Travel Centers, which offers iced coffee and cold brew with a rotation of limited-time flavors.

And customers aren’t just reaching for coffee to get that spark of energy. They are also opting for energy drinks to give them a jolt for the road. According to a Statista survey, 33% of respondents aged 18 to 29 years old state that they drink energy drinks regularly.

“Any convenience store shelf [should] be well-stocked, not just with coffee, but also with energy drinks,” Stuckey said. “A lot of the younger consumers especially are grabbing an energy drink instead of a coffee.”

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“People want to be indulgent on a road trip.

It’s when you’re exploring, it’s when you’re taking time to discover new products and new flavors. So be cognizant of that and build your store displays around it. ‘Are you discovering America? Well, discover our snack aisles while you’re at it,’” she said.

venience Voices data, c-store shoppers who noted dirty or broken equipment and didn’t make a purchase increased from 5.4% in 2021 to 7.8% in 2022.

Prior to the busy summer season, Ringle also invests in maintenance in and around the property. He paints the exterior, resurfaces sidewalks and relandscapes, among other tasks.

“I want people to feel like we’re reinvesting and keeping our property up to standard,” he said. “I think it is important to either maintain or enhance the facility, which shows the customers you’re committed to reinvesting in the business to give them a better experience.”

Along with maintenance, Ringle also makes sure his store is stocked well before road-tripping season begins. “I’m placing a lot of my orders [in the winter], and I’m actually ordering extra of my most popular items, because I know that those are the things I can’t take the chance of running out of,” he said.

How retailers stock the store is vital to setting the stage for increased summer sales, according to Stuckey, who emphasized the importance of catering to road trippers’ indulgent desires.

If you can sell someone a candy bar at your register, it makes more sense to sell them a freshly baked cookie from your kitchen instead.”

40 APRIL 2024 convenience.org

HIT THE ROAD Convenience stores are no longer just pit stops; they are evolving into one-stop shops that cater to the needs and desires of modern road trippers, and the industry has a unique opportunity to play in this space.

“Convenience stores [should be] the onestop shop,” Stuckey said. “We don’t want our consumers having to go down the street to another store to get what they want. We want them to be able to pull over, fuel up, get their snacks and drinks and anything else they might need.”

By understanding what road trippers want and expect—whether it’s a diverse selection of snacks, energizing beverages, or quick and efficient service—retailers can position themselves as indispensable allies in the quest for the perfect summer adventure.

Sara Counihan is a frequent contributor to NACS Magazine and previously was managing editor of the publication.

P Maxwell Photography/Shutterstock; indigo_design/Shutterstock

[Freeze-dried candy] is the massive new trend.”

GRAB A BITE As the self-proclaimed Gas Station Gourmet, Al Hebert has visited hundreds of convenience stores in search of the best food. He says fresh food is the best, but that fresh food also needs to be convenient, which is why he recommends “food on a stick.”

“If you put your chicken tender on a stick, you’re going to sell more,” he said. “I’ve seen all kinds of c-store foods on a stick. It makes life easier for the traveler.”

Like Hebert, Shurden is also in pursuit of the best gas-station cuisine and has filmed dozens of YouTube videos under the moniker Gas Station Tailgate Review. He also says that fresh, portable snacks are key.

“If you can sell someone a candy bar at your register, it makes more sense to sell them a freshly baked cookie from your kitchen instead,” he said. “Your customers can get a candy bar anywhere, so offer them something fresh and unique to your store.”

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What Consumers Say About Prices, Crime and C-Store Jobs

The good news is that consumers are in a way better mood than last year—but that doesn’t mean they don’t have concerns.

BY JEFF LENARD

42 APRIL 2024 convenience.org

Vitalii Vodolazskyi/Shutterstock

W

hat a difference a year makes. Consumers are in a much better mood than they were this time last year, and consumer sentiment has largely returned to the levels of 2022.

The bad news is that consumers weren’t overly optimistic two years ago.

Nearly two in three Americans (64%) still say the country is heading down the wrong track, but that’s a significant improvement over the 70% who felt that way last year. When asked specifically about their area, consumers were considerably more optimistic, with 50% saying that things are heading in the right direction, the same percentage as last year.

NACS APRIL 2024 43

Rural consumers are particularly pessimistic; 81% say that the country is headed down the wrong track and 61% say their area also is, the highest rate of any demographic measured.

The United States is headed …

In the right direction Down the wrong track

2024

2023

2022

64% 36%

70% 63% 30%% 37%%

One particularly distressing number did emerge. While 51% say that life has gone “back to normal,” meaning as it was before the pandemic, 22% of Americans say that things will never get back to normal, an increase of two points over last year. Females and Midwesterners were particularly pessimistic, with 27% of each group saying things will never get back to normal.

With around one in five Americans saying things will never get back to normal, that means it’s more important than ever to understand what consumers are thinking—and what you can do about it. Three areas in particular popped: Concerns about fuel prices, mixed feelings on c-store jobs and crime.

This word cloud illustrates how people responded to the question “What would you say is the most important issue facing your community today?

44 APRIL 2024 convenience.org

PRICES AFFECT SENTIMENT— AND BEHAVIOR People are in a better mood, but they’re not in a great mood. What’s behind current consumer sentiment? Certainly gas prices play a role.

An overwhelming 83% of Americans say that gas prices affect their feelings about the economy. The good news is that gas prices were in decline at the start of 2024; in January, when the survey was fielded, gas prices were $3.10 per gallon, 24 cents lower than when the survey was fielded last year.

How much do gas prices affect your feelings on the economy?

34% Great impact 49% Some impact 11% Little impact 6% No impact While consumers are feeling better than last year, and lower gas prices may play a role, they are definitely concerned about prices overall.

Inflation has cooled considerably from 9.1% in June 2022 to 3.4% in December 2023, but the cumulative effect from the past few years is taking its toll. Fully three in four Americans (75%) say that higher prices have forced their family to adjust their spending habits. Given that approximately 80% of items purchased in a convenience store are impulse items consumed within the hour, that’s a worrisome statistic.

Another worrisome number: 36% of Americans (and 42% of rural Americans) say we are currently in a recession and another 35% say we will be in a recession this year; only 30% say that we will likely avoid a recession.

This consumer angst may be affecting c-store trips. Only one in three Americans (31%) say they shop convenience stores at least multiple times per week, a 9-point decline from last year.

About the 2024 Survey

purchases How often do you make purchases from a c-store?

28% 26% 2024 21%

2023 19% 15%

17% 17% 15

13%

12%

NACS has conducted national consumer sentiment surveys since 2007, with a specific focus on fueling issues. The 2024 NACS Consumer Survey was conducted by national public opinion research firm Bold Decision (bold30 A total of decision.com).

600 U.S. consumers were surveyed from25January 2128, 2024. The margin for error for the study is +/- 4.0 20 at the 95% confidence level.

13%

10%

10%

10 5 0

Daily

Multiple Once or Once or times twice per twice per per week week month

However, there are ways to entice pricestrapped consumers, and customer service can play a role. Consumers generally give our industry positive marks for customer service, with three in four (75%) rating their experience as at least good.

How would you rate your last experience at a c-store?

23% Excellent 51% Good 22% Fair

Less than once a month

Never

In another good sign, customers say they like their customer experience in convenience stores more than in other retail channels: 23% say our industry provides a better customer experience than other channels, compared with 14% who say the customer experience is worse at c-stores.

POSITIVES AND NEGATIVES ASSOCIATED WITH JOBS Customers give the industry solid scores for customer service, but great service requires a continuous pipeline of new employees. However, consumer perceptions are very mixed in terms of what they think about convenience store jobs, especially when it comes to wages.

Let’s start out with the good news: By a nearly 4:1 ratio, consumers have a positive perception of convenience store jobs compared to a negative perception.

4% Poor NACS APRIL 2024 45

Consumers Would Support Stores That Support Their Communities

What do you think c-store wages are in your area?

50% Minimum wage

Consumers have a more favorable view of companies that take a leadership role in addressing societal issues.

72%

There may be an opportunity to tell your story on wages if you pay considerably higher than perceptions.

say they are more favorable to retailers that partner with nonprofits dedicated to raising awareness of human trafficking and identifying victims (only 5% say they are less favorable).

64%

say they are more favorable to stores that have Narcan available in the event someone has an opioid overdose (only 7% say they are less favorable).

15% Don’t know Americans living in the Midwest are most likely to say that jobs pay above minimum wage (41%), while those in the West are least likely to say jobs pay above minimum wage (23%).

To dive deeper, we prodded consumers to guess the average wage of convenience store jobs. The median answer was $13 per hour, but it varied by region and location.

What is the average c-store wage?

$13 Overall average $15 Northeast $12 Midwest $12 South $15 West

What is your perception of convenience store jobs?

36% Positive 49% Neutral 10% Negative 5% Don’t know However, Americans clearly don’t think that convenience store pay well. Fully half of all consumers say that convenience stores pay minimum wage.

46 APRIL 2024 convenience.org

35% Above minimum wage

Estimated c-store salaries in the West were the highest, but consumers in the West also say that salaries were most likely only at minimum wage. This dynamic may be related to the higher state minimum wages in many Western states, with California and Washington both having minimum wages over $15 per hour.

Regardless of your region, there may be an opportunity to tell your story on wages if you pay considerably higher than perceptions—or the competition.

There are other messages that may work in telling your jobs story. The survey tested 11 messages related to c-store jobs (six positive ones, five negative ones). The two positive messages testing best related to first jobs and the ability to move up the ladder.

However, anything stating that c-store jobs can be good careers or provide a middle-class living did less well.

Percent who agree with these jobs-related messages:

82% Convenience stores

provide good first jobs for those looking to enter the workforce.

78% Working in a c-store

is a good temporary job for making money but it’s not a real career.

77% Working in a c-store is more difficult today than it was five years ago.

Want More Info?

NACS has online resources that dive deeper into the issues covered.

Topics pages at convenience.org: Under “topics” in the main navigation bar you can find information on these issues and many more: • Security and safety • Human resources • Community • Human trafficking • PR strategies

76% The challenges of

working in a c-store make it a high burnout job.

75% C-stores have a lot of difficulty finding good job applicants.

74% Entry-level c-store

employees often work their way up to become managers or even run their own stores.

67% C-stores jobs are

enjoyable where employees get to interact with different people in their community.

Convenience Corner (convenience.org/media/conveniencecorner): Our blog attracts hundreds of thousands of readers. Some popular, recent fuel-related articles include: • How to Get Social With Your Food • Does the President Control Gas Prices?

• Three Fueling Predictions for 2024 • What Convenience Stores Do Best

64% Customers are generally rude and disrespectful toward people who work in c-stores.

64% Customers are generally kind and appreciative toward people who work in c-stores.

53% Working in a c-store is a relatively easy job.

42% A person working in a c-store can earn a middle-class living.

Convenience Matters podcast (conveniencematters.com) With 400 episodes and counting, the weekly Convenience Matters podcast has covered every topic discussed in this article. The 20- to 30-minute episodes are perfect for on-the-go education and entertainment, whether you’re at the gym, walking the dog or spending some windshield time traveling between stores.

Do you have a question you want answered in any or all of these forums? Send a note to Jeff Lenard at jlenard@convenience.org.

NACS APRIL 2024 47

One in three customers (32%) say that they have changed shopping habits because they felt unsafe at a particular store or location.

CRIME IS A GROWING CONCERN A big issue on consumers’ mind is crime.

Nearly half of all Americans say that crime has increased (45%), almost four times the number who say that crime has decreased (12%).

Americans also see that stores take preventative measures to address crime; 72% say that they have been to stores where products are locked behind security cases. And nearly half (49%) have been to stores that had security guards. Both practices are most common in the West; 83% of these survey respondents have seen locked cases and 73% have seen security guards.

Most worrisome is that customers are also taking preventative measures. One in three customers (32%) say that they have changed shopping habits because they felt unsafe at a particular store or location.

Consumers also weighed in on how to address crime. They were split 50-50 when asked whether local law enforcement or retailers should have greater responsibility for preventing crime and shoplifting in stores.

They also felt that addressing the social issues that can cause crime should have a higher priority than law enforcement and deterring crime.

If you were forced to choose, which statement do you more support?

56% More money and effort

should go towards addressing social and economic problems that lead to crime.

44% More money and effort

should go towards law enforcement and deterring crime.

If there is any good news about crime, it’s that convenience stores aren’t blamed as the reason for it.

48 APRIL 2024 convenience.org

If you were forced to choose, which comes closer to your view?

71% Problems and crime might occur at c-stores and gas stations, but the stores are not the cause.

21% C-stores and gas stations attract problems and crime in communities.

9% Don’t know.

SO WHAT? … AND WHAT’S NEXT? There’s a lot on consumers’ minds now, and it’s possible that consumer sentiment will backtrack during a contentious election cycle in which both sides will use pocketbook issues—especially gas prices—as a central talking point.

So how do you keep customers coming to your stores with all the noise that they are facing?

First, be an oasis of normalcy. It was clear from the survey results that consumers want things to be better and care about their communities. Play to your strengths in both of these areas.

Find ways to give your customers at least a few minutes of refuge from negative things in the world. Play to their concerns over inflation by communicating your value offer, whether price cuts or 2-for-1 and combo deals. Make your stores as fun as they can be.

And show that you care about the community and issues important to them.

And most of all tell them—over and over again—about what you stand for. They want to hear it.

Jeff Lenard is NACS vice president, strategic industry initiatives. You can reach him at jlenard@convenience.org.

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NANCE

With travelers hitting the road, summer is a chance to fine-tune your vehicle care offers.

BY MAURA KELLER NACS APRIL 2024 51

WORKING AT THE CAR WASH Shannon Jandt, car wash manager at Kwik Trip, said today’s c-store customers want to ensure they are protecting their vehicle

52 APRIL 2024 convenience.org

investments—after all, the average price of a new car is almost $50,000, while used cars top $25,000 on average.

“In the area of the car wash, conveyor/tunnel washes have reduced wait times, which increases wash counts,” Jandt said. Kwik Trip currently has 41 conveyor/tunnel washes on its c-store sites and is planning more tunnel washes in the future.

“To accomplish quality, consistency and value, you must control your operating costs, and one of the best ways to control operating costs is to maintain the car wash equipment,” Jandt said.

This can be as simple as cleaning the car wash bays daily by spraying down debris and sand and weekly by scrubbing the floors and walls. Keeping the equipment and bays clean will prevent unnecessary wear and tear on belts, tracks, wheels and other parts and will extend the life of the equipment.

A significant way to ensure equipment is well-maintained is to have a regularly scheduled maintenance program. As Jandt explained, this includes technicians replacing filters, changing oil, testing chemical functions, checking water hardness and total dissolved solids (TDS), inspecting brushes, checking the general condition of the equipment and running test washes at regular intervals.

“Every manufacturer has a different schedule on how often that [maintenance program] should be completed,” Jandt said. “You’ll be able to control those expenses even more so if you can do these at store level or with your own general maintenance team.”

Lastly, it’s vital that retail workers, at least a couple times a day, inspect vehicle washes to ensure the equipment is working as it should.

“If you catch a broken nozzle, a chemical not dispensing or low water pressure right away, you ensure your customers will get quality, consistency and value by catching it immediately and having it fixed,” Jandt said.

Because consumers often purchase a car wash on impulse or because it is convenient, actively promoting the car wash is the best strategy to follow. And due to the high margins associated with operating a car wash, it is important to convert as many opportunities as possible to a purchase.

Dejan Marjanovic/Getty Images

A

s c-stores continue to evolve, the vehicle maintenance area is evolving, too. This includes car washes, air and vacuum machines and in-store vehicle maintenance products.

According to Rob Deal, vice president of key accounts at OPW Vehicle Wash Solutions, c-store operators are increasingly offering the kinds of enhanced vehicle care options that would normally be found at standalone service locations.

Deal said, “Consumers are now expecting much more than the old, standard car wash.

They are expecting more wash options, better quality washes, faster service and a monthly wash club that can be used at more than one location and be managed in a mobile app. The air and vacuum machines should be free with the purchase of a car wash club program.”

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extremely effective method of upselling the in-store customer.

OPW features a wide variety of products for the vehicle maintenance segment, including an extensive line of products for the entire car wash segment. The company offers tunnel wash systems to fit in areas 50 feet to 200-plus feet in length, as well as touch-free and friction rollover wash systems for in-bay automatic washes.

OPW features payment systems and back-office management systems to manage the pay-at-wash capability, club programs and mobile app.

“We are adding innovative equipment options that improve the way the consumers interact with the car wash,” Deal said, “from mobile apps to help make it easier to buy to customer-friendly wash equipment that improves the quality and experience for every type of car or truck.” In addition, license-plate recognition systems can recognize the frequent customer and reward their loyalty.

Aja Koska/Getty Images

To ensure a car wash is successful, it’s important to make sure it’s placed in a densely populated area with household rooftops around or near large retail shopping areas.

Jandt stressed that the car wash building should be visible so that a guest can’t miss that there is one on-site in addition to the convenience store. The site also should have room for a good turn radius so a vehicle can easily pull in or out, as well as ample area for vehicles to stack in a line.

“Another consideration in a location is that the lot should allow the car wash to be near the convenience store to aid in customer assistance, bay cleaning maintenance and troubleshooting,” Jandt said.

According to Amy Robinson, Soapy Joe’s general manager of c-stores and oil changes, a solid preventative maintenance routine helps keep a c-store’s car wash at maximum uptime, which is an important contributing factor in terms of revenue potential.

“When washes are down, it can be weeks, not days or hours, until you’re back in action,” Robinson said. “Our daily and monthly maintenance routine is woven into everything we do. For c-store leadership, upholding these standards contributes to their bonus criteria and strategic relations with vendors for outsourcing and supply chain needs.”

In addition, a c-store car wash should be aggressively promoted to ensure a healthy revenue stream and a strong return on investment.

One easy and effective technique is to discount at-the-pump sales, typically structured as cents per gallon off with the purchase of a car wash. Another strategy for success is to offer a POS code for the car wash.

For many c-stores, external marketing begins at the pump, which is the first and most critical touch point for the consumer. Car wash promotions can include a large, colorful pump topper or advertising placed directly on the dispenser. In addition to pump signs, parking lot advertising such as a wind sign is effective at drawing attention to the car wash.

Another key touch point for the customer is the cashier. The cashier can inform or educate the customer about the existing car wash. This personal sales technique is an

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IN-STORE OPPORTUNITIES While air machines and car washes are key components of the vehicle maintenance category within the c-store environment, there are ample opportunities for companies to offer products within the store itself.

“Purchases of vehicle maintenance accessories such as vent clips, oil and air fresheners remain strong,” Robinson said. “We’re seeing a shift in product mix to expand from the expected hard-good lines to include technological advances in offerings like car wash memberships and app points for vehicle maintenance category purchases.”

Benedek Alpar/Shutterstock

ADVANCEMENTS IN AIR/VAC SYSTEMS David Charles, Jr. of Cash Depot said digital readouts are now the standard for air/vac displays. Although Cash Depot is best known for its ATMs and cash management systems, it also offers air/vac machines.

“Consumers don’t want to use a messy and inaccurate air gauge,” he said. “In the northern climates, heated chucks are also a heavily sought-after feature. Customers are starting to rely on these options and seek out locations that provide them.”

In the past, Charles said, air/vac machines were fully coin-based and revenues were collected only when someone got around to emptying the quarters from the machine.

Today, Cash Depot can offer more accurate monthly payments to the merchant based on machine usage. And the company can even provide fully auditable statements.

Jandt added that the advances in today’s air machines for tire maintenance include the ability for consumers to select the pressure desired. Then, when the tire is filled to the desired pressure, a chime will sound. Kwik Trip offers free air machines at all of its stores.

In terms of air products, today’s c-store consumers are requesting credit card readers, digital pressure readers, heated chucks and well-lit spaces. And as with car washes, ensuring solid operations is key when it comes to air/vac equipment.

“For retailers who own their equipment, keeping the machine operational, clean and well-lit is key to keeping customers satisfied,” Charles said. “Equipment that is not well-lit and maintained puts the machine at risk of vandalism and deters customers from using the services, especially at night.”

When it comes to Cash Depot’s air/vac placements, the company implemented a remote monitoring service to keep tabs on all of its machines. People prefer new, clean, well-maintained equipment, so making sure air/vac machines look and operate their best will increase usage and reduce maintenance and downtime, Charles said.

With the remote monitoring system, “We don’t have to wait for a phone call from a store to tell us their machine is broken or malfunctioning,” Charles said. “We know when it happens and can respond accordingly.”

It’s always good for c-store owners and operators to speak with experts in the air/vac field to get advice on what equipment options are available, what works best in a specific region and what steps should be taken to ensure the safety of customers and equipment.

“Make sure to focus on the customer experience,” Charles said. “Ask yourself if you would want to use the machine or if you would want your family member, wife or daughter to use the machine. Where would you place it for their safety, and what would it look like? If you follow this strategy, people will be complimenting your air program rather than complaining about it.”

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While Soapy Joe’s receives more consumer requests for items such as phone holders than for specific vehicle maintenance products, Soapy Joe’s air fresheners sell well.

“We also offer a per-gallon discount at the pump when a car wash is purchased, which is something our customers take advantage of,” said Robinson, who is seeing more usage of air and water near easily accessible ingress and egress areas and near fuel areas. “The more customers take advantage of these vehicle maintenance add-ons, the more they see the value in choosing you over your competition.”

Deal said the car wash segment at the c-store is continuing to grow in revenue and profit.

“We are constantly engaged with c-store operators about what the consumers are asking for,” he said. “We take that information and

58 APRIL 2024 convenience.org

develop enhancements or equipment offerings to help keep the services offered at their sites at the forefront of the consumer demands.

“We are always analyzing the industry for requirements to keep the equipment and chemicals up to date with the changes in the vehicle shapes and finishes to help keep our operators more successful and profitable.”

Based in Minneapolis, Minnesota, Maura Keller is a seasoned writer, editor and published author, with more than 25 years of experience.

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NACS APRIL 2024 61

Before TXB made the switch to its policy of any appropriate black shirt, it had to face an age-old industry question: When do you provide new hires with store uniforms?

“We were providing polos for every employee,” Graham said, “and with the turnover that we know is in our industry, that can get expensive.”

The then-uniforms—branded polos— were around $15 apiece, so TXB developed a “new-hire shirt,” which was very basic with just the retailer’s logo on it. Managers kept the shirts in stock at each location, so when an employee was hired, they were handed two shirts that cost less than $6 each.

“Being able to give them that t-shirt on day one helped them feel like they were part of the team,” Graham said.

He added that the new-hire shirts also cut costs and helped people identify new employees.

When area managers would pop into a store and see an employee with this specific shirt, they knew to make it a point to check in with the employee and introduce themselves.

Under this policy, when employees got to 60 days with TXB, they were given the polo shirts.

NEWE HIR RTS I T-SH

62 APRIL 2024 convenience.org

At TXB Stores, the uniform policy strikes a balance between practicality, self-expression and branding. Its employees wear an image-less or textless black shirt in any style of their choosing and any bottoms that aren’t athletic or scrub pants—generally jeans (without too much distressing or too many holes), khakis or dress pants.

Nathan Graham, TXB’s director of human resources, said that when the retailer rebranded from Kwik Chek a few years ago, TXB decided to take the “Target approach” and have employees wear a singular, recognizable color. In TXB’s case: black. The change came partially after the organization heard comments from employees that the uniforms weren’t their favorite color or didn’t fit right.

Graham said the company thought, “What if we just let them wear their own shirt?”

“We would offer a men’s shirt and a women’s shirt, but they wouldn’t all fit the same,” he said. “This way, you’re able to go get the shirt that you like, that fits you best and that you feel most comfortable in, and it really allows people to do what they want to do.”

He added that the new uniform policy has helped because people feel good when they think they look good. Employees are more comfortable and are happier. They don’t have a reason to say things such as “Oh, my shirt was dirty” and show up in something that doesn’t adhere to employee guidelines. And employees are more willing to follow the retailer’s uniform guidelines because they’re easy to adhere to.

REDEFINING UNIFORMITY TXB still provides employees ways to wear the retailer’s branding via aprons, hats and visors, all of which are optional (except for foodservice employees, for whom a hat or visor is mandated). Employees similarly can purchase TXB shirts—which are also black— from the retailer’s website for under $10.

Arip Jaelani/Shutterstock

A

uniform might seem simple: Give each team member a couple shirts, and you’re done.

But retailers are finding new ways to use uniforms for messaging and to keep team members happy.

For example, at the height of the pandemic, Lonnie McQuirter, the operator of 36 Lyn Refuel Station in Minneapolis and a NACS board member, gave his team members t-shirts that read “The whole world is short staffed right now. Be kind to those who showed up.”

Corner Store, a three-location retailer in Texas, stresses its hometown ties in its branding. Team members wear t-shirts that proudly say “Where Local Matters!”

Larger retailers have to figure out solutions that work across many locations and that limit the operational burden of making sure every new team member has an appropriate uniform.

While most employees wear a black polo shirt to work, the attire can run the gamut.

Graham said, “We’ve got some managers and assistants out there, and even some of our hourly workers, who are wearing a straight button-down, dress-type shirt daily. That’s what they feel comfortable in. That’s what they want to wear.”

The “what they want to wear” aspect has been a huge part of TXB’s approach—especially after what used to be the case with its uniform.

At one point, the retailer had purple shirts, and found there were a number of people who didn’t want to wear the color. Graham said there were employees who, as a result, wouldn’t show up wearing their work uniform. It could be a challenge for managers to send people home for uniform infractions, so team members sometimes worked while not wearing the purple shirt.

The retailer also lets employees have plenty of fun with their nametags, which can be personalized however they want. They’re inspired by chalkboards and at the bottom say “We Are Texas Born.” While the retailer supplies employees with a white chalk pen, Graham said several managers have brought in lots of different colors.

“You wouldn’t believe the name tags we see out there,” he said.

People draw designs with the employee’s name or with some more general artwork.

Some employees’ name tags have butterflies and ladybugs and other things that can give a glimpse into who the employee is.

“It’s really taken off as an individuality piece,” he said. “It’s been really neat to see.”

Graham added that TXB is considering allowing employees to wear some of the more fun, branded shirts that the retailer sells, including one that, in big letters, says “We Are Texas Born” and another that says “This Is Not My First Rodeo.”

Of course, no solution will be best for every single team member. Graham said he has heard from some employees who prefer a uniform. He said one such person, a year or two ago, told him, “I don’t feel like part of the team because I don’t have a uniform.”

He noted that these employees can order TXB-branded shirts.

ELEVATING THE EXPERIENCE Wally’s, on the other hand, has a uniform: a polo shirt (in a variety of colors) and khaki pants.

Andy Strom, the retailer’s chief experience officer, said that’s partially because “first impressions are everything, and knowing who to find if you need help within the store is extremely important.”

The retailer wanted to find a way to highlight its made-on-site food. Enter white chef jackets for the foodservice workers. The idea started as the brainchild of executive chef Lute Cain, who came to Wally’s with longterm experience with myriad country clubs.

“As we’ve grown as a company, 50-plus percent of our inside sales is from the food that we’ve prepared in our kitchens,” Cain said. “So we implemented a policy that every foodservice team member wears a chef coat so guests know who is working on the food.

By distinguishing team members by uni-

Chef’s whites elevate the Wally’s experience— for both customers and employees.

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Employees are more comfortable and are happier.”

form, guests know it is not a maintenance person who has been out on the gas pumps in their polo and now they’re making your sandwiches. It’s the same with a bathroom attendant or a cashier.”

He added, “We wanted to make sure that everybody understood that we do, 100%, put a lot of effort into our food.”

One of the reasons for the switch to the chef jackets was because, as Cain said, a number of Wally’s foodservice team members come from big restaurants and country clubs, so the retailer “wants to make sure people know that they are trained chefs.” The switch has been a huge hit, he said, because those employees who have spent a lot of time in the culinary field enjoy putting on their “whites.”

Cain said the coats are also improving customer experience. He’s found that, with foodservice workers in chef coats, customers are more likely to request a special kind of sandwich with modifications because the people behind the counter look more like trained experts—which they are.

He was taught that “you work like you dress,” so if the appearance of the uniform is lacking, workers aren’t “going to perform to the highest level.” Plus, he added that when foodservice employees are in their chef whites, things just look cleaner.

The change also helps with recruitment, especially from local culinary colleges. Cain said it helps those individuals “understand there’s more to Wally’s than just a gas station.”

ALWAYS ADJUSTING Wally’s looked at overhauling its uniforms with what Strom called “grandiose uniform plans,” but that process was derailed by Covid and supply chain issues. Before then, though, the retailer was playing around with expanding on its base concept—it’s loosely based on

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an ’80s family road trip—and was looking at having employees wear classic cardigan sweaters with a big emblazoned “W.” “We’re always making adjustments,” Strom said, “but we’re very focused on optimization and repeatability as we work toward opening our two new locations in Kansas City and Indianapolis and just continuing to grow the business. The focus is on scalability and just keeping the experience consistent, but we’re always adapting, we’re always changing and keeping things fresh as we continue to build.”

Another retailer that has streamlined its uniform policy is Love’s, which has designed its policy to help customers easily identify team members and to “make it easier to know which team member can serve them best in what area,” as Lauren Daniels, the retailer’s media relations specialist, said.

For the most part, employees wear red or black polo shirts, although more colors can be ordered on the company’s store website.

Other guidelines—such as non-slip shoes, steel-toed boots and hair nets—vary across different parts of the store and “ensure the health and safety of all parties.”

Daniels said, “As a 60-year-old company, you can imagine there have been several iterations of uniforms spanning back decades.

When Tom Love opened the first Love’s in 1964, he worked hard to understand the industry and implement best practices to make the location successful. As the years went on and additional locations opened, adding uniforms became a way to standardize locations and help customers identify the friendly faces Love’s is known for.”

Shannon Carroll is a contract writer/editor for NACS.

What lessons can c-stores take from QSRs? BY AMANDA BALTAZAR

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Loyalty Lessons LEARNING

FROM RESTAURANTS

Roman Samborskyi/Shutterstock

B

oosting engagement in loyalty programs remain a great opportunity for convenience stores. “You have this remarkable chance for frequency, as everyone needs to buy fuel,” said Dan Bejmuk, CEO and co-founder of Dreambox, a full-service digital advertising agency that works with more than 150 restaurant brands.

The most important factor of any loyalty program, Bejmuk said, is “it has to be frictionless, easy to use.” He defines friction as anything that requires a customer to jump through hoops. “We look at successful digital experiences as something where a consumer can place an order and earn credit for that order without thinking about it. On the flip side, they can redeem [offers] fluidly, easily. The more hoops someone has to jump through, the less likely they are to use it.”

Although loyalty programs have evolved since then, a 2019 report from KPMG showed that 61% of consumers said loyalty programs are either too difficult to join or that it’s too hard to earn rewards. There is still room to grow.

The best loyalty programs, Bejmuk said, are clear, so that customers know exactly what they’re getting. “Ambiguity is when you lose guests quickly,” he said. “The more clarity they have before they sign up, the more they sign up.”

What can c-stores learn from their competition for foodservice dollars?

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National chain Teriyaki Madness offers Asian-inspired bowls. The loyalty program leans away from coupons and focuses on points.

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MORE VISITS, HIGHER CHECKS One of the big goals with a loyalty program is to bring customers into your restaurant—or convenience store—more often and have them spend more.

Potbelly Sandwich Works launched its new loyalty program, Potbelly Perks, at the beginning of this year. The goal was to make it more appealing to sign up and engage. The revised program provides more incentives to order with Potbelly, rewarding its biggest fans faster and in a bigger way, and letting them use their points more frequently even at lower levels. “That flexibility was very important to us,” said David Daniels, Potbelly’s chief marketing officer.

Potbelly’s program is tiered, based on the number of points (“coins”) earned in a year, and members receive greater rewards and more points per purchase at each level. Members also receive double points on Thursdays;

birthday rewards; and special offers, like a free cookie on National Cookie Day. “We offer incentives to say thank you,” said Daniels.

At Wings and Rings, a fast-service brand based in Ohio, loyalty members visit twice as much as non-loyalty diners. The restaurant focuses on making its loyalty program as easy to use as possible. Diners receive one point for every $1 they spend. When they reach 100 points, they can cash the points in for a $10 reward. “There aren’t different tiers for redeeming, and you know exactly where you are,” said Linsey Case, marketing director.

Wings and Rings also lets its loyalty members know first about new food and beverage launches, which they can order before everyone else. “It builds excitement and makes [members] feel they’re exclusive,” Case pointed out.

Teriyaki Madness, with locations around the country, offers Asian-inspired bowls, such

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Kolache Factory reminds loyalty members when they near important points thresholds.

as an orange chicken or a salmon teriyaki bowl. The restaurant reported that loyalty guests spend on average 10% more than non-loyalty guests, in addition to visiting stores more often. There are also secret menu items guests can only order on the app, accessible only to Mad Rewards members.

Teriyaki Madness’s Mad Rewards program offers different brackets, which unlock rewards at different milestones. The program has to be easy, said Jodi Boyce, chief marketing officer, and won’t work if customers don’t understand it.

Teriyaki Madness also works hard to consistently reach all of its loyalty members. A lapsed user might receive an email saying “we miss you” after 30 days of no visits. At 60 to 90 days, the chain might send them an offer to bring them back in.

Teriyaki Madness’s loyalty program also doesn’t rely heavily on coupons. “We prefer to let them earn their points,” said Boyce.

Kolache Factory, which has around 200 locations across the United States, relaunched its loyalty program in 2022. Customers

can redeem their points once they reach 50 points, and when they’re almost at this amount they receive an email or push notification letting them know, to encourage them to visit again and reach their goal.

“It’s the points people like,” said Dawn Nielsen, COO of the Katy, Texas-based brand.

“Everything is measured by how many tokens or points you need to get to the next level, so there’s that element of being reminded that you’re nearly there.”

This is especially important with younger customers, she said, who are “all about feeling they’re valued and appreciated.”

KEEPING EXCITEMENT HIGH Teriyaki Madness likes to surprise loyalty members. It puts discounts in the app from time to time, sometimes without announcing them, often having one that expires soon to drive store visits. “It’s about making sure there’s something there at all times,” said Case. “It keeps them engaged.”

Teriyaki Madness also sends incentives and frequency promotions to its loyalty members.

In January, for example, guests could receive 400 bonus points if they visited twice that month; in February, guests received a coupon for $5 off their next order; and in March, they were entered into a free-bowls-for-a-year giveaway. The brand, said Boyce, is trying to “move the needle” and bring loyalty members in more frequently.

And what guests love, she said, is “the psychological piece when you know you’re one visit away from earning your free meal.

You do find people go in more often, or sooner than they would have.”

ENCOURAGING BUY-IN There’s no point having a loyalty program if no one signs up, and that’s where frontline employees come in, said Nielsen.

“They’re integral in making a rewards program successful,” she pointed out. “An employee needs to successfully talk about the program and what it can do. You can put up artwork and social media yourself to death, but that first person customers connect with is going to turn them into a rewards member.”

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Nielsen pays particular attention to the top five and bottom five performing stores.

It’s vital to stay on top of this data, she said.

“It’s so easy to implement a rewards program, set it and forget it, but it won’t grow in that way.”

Managers should talk about the loyalty program in their weekly staff meetings, Nielsen said, and frontline employees should ask every customer if they’re a member, then tell them why they should become one.

That’s true for Potbelly, too. “Our highest touch point is in our restaurants,” Daniels said. To ensure employees ask every customer if they’re a member, they have to identify whether the person is a Perks member before they take their order on the POS system.

Potbelly also has merchandising material throughout the restaurants and QR codes that customers can scan to sign up instantly.

One reason Wings and Rings keeps its loyalty program straightforward is to make it easy for staff to explain to guests.

DATA DIVES The real reward that comes with a loyalty program is, of course, on the operators’ side.

It’s mountains of data about who customers are, when they purchase food, what they eat and how motivated they are by discounts.

When running special offers, said Dreambox’s Bejmuk, restaurants and retailers need to assess their long-term success. Does a 50% discount bring a customer back just once to redeem that coupon, or week after week?

For Potbelly, the loyalty program lets it understand what customers are buying so it can tailor offers that are “more meaningful to them,” said Daniels.

Potbelly also looks into what motivates customers. If a customer always buys a sandwich, will they buy a beverage if they receive an offer?

Teriyaki Madness likes to know what consumers are buying and to send personalized incentives to loyalty members to push them into different areas of the menu, or towards different menu offerings, or incentivize them to come at different times of the day. “We follow the whole customer journey,” said Boyce.

Wings and Rings also tracks customer purchases, especially when it launches something new or provides a new offer. And it looks at how frequently customers are visiting.

“We can slice and dice the data in almost any way we want,” explained Case, adding that the company checks the loyalty program before it launches any offers to see where its biggest opportunity is to drive business.

Teriyaki Madness looks at how quickly customers go to a store after receiving an offer, and how much they spend and see if that changes long-term behavior.

Wings and Rings also likes to send personalized, relevant offers to customers, and tries to encourage them to eat from the brand at different times of the day to increase visits.

“When we challenged people to come one more time based on how often they were visiting, that was pretty successful,” Case said.

In a slightly different move, Teriyaki Madness runs surveys with its loyalty members to find out what it can do better or what customers would like to see on the menu. “We’ve got remarkable responses, getting thousands of replies, and that’s essentially free,” she said.

At the end of the day, loyalty programs offer benefits to customers and are a boon to brands. Boyce said: “Loyalty is about training guest habits and training them to come in over and over.”

Amanda Baltazar has been writing about foodservice and retail for trade magazines for more than 20 years. Read more of her work at www.chaterink.com.

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PROTECT YOUR EV CHARGING STATION FROM

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W

hen Jenna Hauss arrived at her job at One Generation, a Los Angeles-area nonprofit, everything seemed normal.

The eight-acre campus was starting to hum with employees tending to the facility’s food bank and greeting clients who use the nonprofit’s intergenerational daycare centers. But then a worker came to her with bad news.

Each of the site’s 40 EV charging ports had been vandalized overnight.

OlenaMykhaylova/Getty Images

DALS

Don’t let a copper caper keep EV customers from recharging.

BY PAT PAPE

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EV station vandalism isn’t limited to the United States or to copper thieves.

German stations have reported similar problems, including one Munich facility where minced meat was stuffed into the connector. However, vanishing cables are not a problem across the pond. European charging stations have no attached cables as European EV owners purchase and travel with their own portable cables.

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Another reason for charging station damage has been dubbed “Green Backlash.”

More than 20% of U.S. charging stations have experienced some form of vandalism.

VisualArtStudio/Shutterstock

Someone broke through the fence surrounding the campus, cut the charging cables and made off with the copper inside. “We got photos of the thief on video, but he was wearing a mask” said Hauss, CEO of One Generation. “It was April 2022, and at that time, everyone was wearing a mask. The thief didn’t get Covid, but he did get a lot of copper.”

The incident was reported to law enforcement, and the facility had insurance to underwrite the pricey repairs. But the evildoer was never apprehended. “We now have a locked steel cage around each charging station,” she said. “We unlock them during business hours, so employees and clients have access to them. But we have to lock them up every night. It’s frustrating.”

The crime at One Generation is shocking, but not unusual. As the number of EV charging stations grows, so does vandalism and other damage. According to a 2023 U.S. Department of Energy’s Alternative Fuels Data Center report, the United States has approximately 50,000 public EV charging stations, for a total of nearly 130,000 individual charging ports. The Sacramento-based Electric Vehicle Charging Association notes that more than 20% of U.S. charging stations have experienced some form of vandalism, ranging from copper theft to tampering with the electrical components to short circuiting the charger.

COPPER FOR PENNIES Bill Ferro is president of EVSession, a Charlotte, North Carolina, technology company that consolidates information on the availability of direct current fast charging stations nationwide and distributes it to EV drivers and fleet managers to help them make travel plans. Although copper thieves sell their ill-gotten goods to recyclers and scrap dealers, he said no one is getting rich robbing charging stations.

“We track the industry very closely, and unfortunately, these incidents are too common,” Ferro said. “With the right tools, it takes only a couple of minutes to cut the cable. But no one is getting rich selling cables.

Copper goes for $3-5 per kilogram, and there are about 2 pounds of wire in a cable. A thief is not going to receive full price. They’ll have to sell it for half of what it’s worth, so vandals aren’t making a lot of money.”

Another reason for charging station damage has been dubbed “Green Backlash.”

“It’s the same twisted thought process that causes people to ICE the charging station [meaning block it with an internal combustion engine vehicles] or to key a Tesla as they walk by,” Ferro said. “I can’t explain the thought process, but typically those people are afraid of change in some way.”

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PROTECT YOUR STATION EV recharging equipment is a big investment.

According to Ricchiuti, a Level 2 charger for the home market can cost $300-500. A highend commercial version can run $5,000. The cost of a newer, faster Level 3 charger starts at about $40,000, and installation can run $40,000-plus, depending on the site’s trenching and power requirements.

Various ideas have been floated about protecting EV charging equipment, such as installing retractable cables. Tesla has reportedly used a solar-powered, camera-equipped “MacGyver” robot to protect its own equip-

“With the right tools, it takes only a couple of minutes to cut the cable.”

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ment, along with more traditional solutions such as visible surveillance cameras, bollards and steel cages. But when it comes to keeping chargers operational, Ferro believes the answer is “placement, lighting and security.”

“Don’t bury your charging equipment behind the convenience store,” he said. “Make sure it is well-lit, out in the open and in sight of the security cameras that are commonplace in convenience stores today.”

Ferro said that his favorite place to recharge his EV is a Tesla Super Charger at a Spinx outlet in Orangeburg, South Carolina.

“It’s right in front of the store, well-lit and under a solar canopy,” he said. When circumstances require it, he’ll use a charger “buried behind a fast-food restaurant near the trash bins. I’ll go there during the daytime, but not after dark,” he said.

When convenience stores offer “a welcome, inviting space for drivers to spend 20-40 minutes charging their car, they will generate

Owlie Productions/Shutterstock

In addition to intentional vandalism, there are mishaps that can damage charging stations, such as drivers accidentally backing into a charger. “They don’t harm the station they’re using. It’s usually the one next to it.” said Greg Ricchiuti, technical leader of platform integration at Techniche in Carlsbad, California, a global software company supporting the reliable operation of charging networks.

Plus, damage can occur due to user frustration when drivers attempt to recharge and the equipment doesn’t function properly. “People get frustrated, and they may pull out the connector and drive away,” he said. “That’s where you see a lot of the connectors hitting the ground and cracking.”

Today, 90% of public chargers are Level 2 chargers, also called slow chargers, and are used for home, workplace and public charging.

“With lower-level chargers, the cable is your source of truth,” Ricchiuti said. Problems occur “if the cable isn’t long enough, if there are too many bends in it, if people have stepped on it or driven over it. …. With the newer chargers, we don’t see as much vandalism because they work.”

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more traffic, more store revenue and more eyeballs to help with security,” he said. “To me, that’s really the best approach.”

Don’t bury your charging equipment behind the convenience store.

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PLANNING FOR THE FUTURE “We are still in the land-grab phase. People are working to get an anchor space, get sites installed and later move the chargers,” said Ricchiuti.

He advises retailers to plan carefully for charging installation. “Put them where power is available. You don’t want to trench cross the store parking lot or anywhere near the fuel tanks,” he said. “A lot of companies have battery-storage systems located near their chargers. They use solar panels to supplement the power available for charging sessions, making them less dependent on the grid. You

don’t see as many convenience stores using solar panels yet, but some chains are already planning for them.”

“I strongly believe winners of the EV charging race over the next 5-7 years will be convenience stores,” Ferro said. “C-stores are usually staffed around the clock, and we can expect to see to see better placement of this equipment as more c-stores sign up for chargers.”

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

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

Will Digital Coupons Revolutionize the C-Store Industry?

Episode

#428 For more on digital coupons and all things convenience, download our weekly podcast!

There are upwards of 200 billion coupons issued in the United States every year, mostly paper. Digital coupons, called 8112s, are reshaping the coupon landscape. How can convenience retailers jump on the emerging opportunities?

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revolutionize couponing by providing high-value digital discounts directly to consumers’ phones.

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IT UP, BABY! Get the scoop on quality hand-dipped ice cream and customized shakes.

BY PAT PAPE

NACS APRIL 2024 81

United Dairy Farmers serves customers its proprietary ice cream for hand-dipped treats.

People talk about eating healthy, but ice cream is a treat.”

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1940, when Carl Lindner Sr. opened the first United Dairy Farmers store in Cincinnati, his goal was to sell milk from local dairies directly to consumers, saving them the cost of home delivery. At the time, Lindner could not have imagined that his small outlet would morph into 174 retail units across Ohio, Indiana and Kentucky, selling dairy products—including four million shakes and malts a year—along with fresh foods, groceries and fuel.

A lot has changed in 84 years, and a lot hasn’t, according to Mark Wilson, corporate head of human resources for United Dairy Farmers. Today, the company produces its proprietary ice cream for hand-dipped shakes, malts, cones and sundaes using the same recipes that have been handed down for four generations.

“The process of making our ice cream and the quality of ingredients has stayed paramount throughout our history,” Wilson said.

“For example, we use real Oreo cookies in our cookies-and-cream ice cream. Some other producers may take shortcuts, such as using a private-label, Oreo-like cookie in theirs. And some put so much air in their product that they can’t call it ‘ice cream.’ They must label it a ‘frozen treat’ based on FDA regulations.

This lessens the quality, not to mention the flavor profile.”

SWEETEN THE MENU The appeal of ice cream and personalized shakes is not lost on other c-store leaders.

Rutter’s, based in York, Pennsylvania, began as a family dairy with 20 milk cows in 1921. Today, it has 85 convenience stores across Pennsylvania, West Virginia and

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than just a frozen treat. They desire inclusions, natural ingredients and indulgence. We cater to these preferences by offering a variety of toppings and emphasizing the portability of our packaging for on-the-go enjoyment.”

Curby’s Express Markets in Lubbock, Texas, introduced customized milk shakes more than a year ago.

“We have a soft-serve ice cream machine and use that ice cream to make our shakes,” said Tony Sparks, head of customer wow for Curby’s. “When the customer gets the shake, it’s immediately drinkable.”

The Curby’s team dreamed up the softserve shake and added it to the stores’ already robust beverage menu. “We just tried it, and it worked,” Sparks said. “It’s really a dessert item … more of a luxury than a coffee or an energy drink.”

SCREAM FOR ICE CREAM The average American consumes about 20 pounds, or four gallons, of ice cream a year, reports the International Dairy Foods Association. According to Mintel, 51% of consumers enjoy enhancing their frozen treats with cookies, candy and other toppings.

“There is definitely seasonality,” said Paula Finnen, category manager for United Dairy Farmers. “The highest sales are in the summer months when kids are out of school, with Friday, Saturday and Sunday evenings having the highest sales.”

But don’t neglect the ice cream consumer during colder weather. “Packaged ice cream sales of certain products are strong during the Subjug/Getty Images

Don’t neglect the ice cream consumer during colder weather.

Maryland. The stores introduced made-toorder shakes in 2019 and added the “Xtreme” shake in 2022.

“Offering customers the ability to create their own shakes allows them to customize their dining experience,” said Chad White, food service category manager for Rutter’s.

“We offer a foundation of classic flavors, including chocolate, vanilla and the ever-popular peanut butter. These base flavors serve as the canvas for creating delightful shakes that cater to traditional tastes.”

Using Blendtec commercial blenders, Rutter’s staffers add premium treats to basic shakes per each customer’s request. Or customers can choose an Xtreme shake with a full-size, name-brand candy bar mixed in.

“Our most popular option is the Reese’s Peanut Butter Xtreme Shake,” White said.

This is no surprise to the folks at The Hershey Company. “Reese’s Peanut Butter Cup emerges as a predominant flavor pairing across diverse demographic segments, including Gen Z, Hispanic, Asian and Black consumers,” said Al Adams, senior manager, foodservice marketing for Hershey, sharing research from Datassential.

Baltimore-based High’s was born in 1928 as a single ice cream parlor in Richmond, Virginia. Today, High’s has 60 locations selling its own branded ice cream and serving handdipped treats and shakes.

“We partner with a third-party manufacturer to produce ice cream to our exact specifications,” said Sherryn Diamond, director of foodservice at High’s. “Customers seek more

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In addition to serving cones and shakes, High’s sells its own branded ice cream.

The key is to give the ice cream offer a home that adds a touch of theater.”

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winter months,” said Wilson. “We’ve found that our guests simply switch to enjoying ice cream in the warmth of their home versus going out for a treat. We have winter-themed flavors like Homemade brand Santa’s Cookie and Peppermint Stick.”

“It’s not surprising that shake sales maintain a relatively consistent pace throughout the year, given their widespread appeal,” said White of Rutter’s, which features seasonal flavors like eggnog and mint chip. “Our LTO offerings add a touch of freshness and anticipation to our menu, allowing customers to savor the essence of each season in a delicious shake. The noticeable bump in sales over the summer is a trend that aligns with the season’s characteristics.”

MAKE SHAKES United Dairy Farmers, Rutter’s and High’s began their lives as dairy product providers and grew into convenience stores. Curby’s Express Market started as a c-store during the pandemic and added customized shakes to enhance a growing beverage program.

Would a shake program be right for your store? Although United Dairy Farmers has a foodservice program and fresh bakery offerings, “we have that dairy culture built in, and that makes us a bit different from other c-store chains out there,” said Wilson. He believes a small-scale shake program could work for c-store retailers, “but you must think holistically. Think about your supply chain, warehousing, maintenance and your desired customer experience,” he said.

Not long ago, United Dairy Farmers acquired several stores in good locations. “However, we had to invest significant capital to add the equipment necessary to those stores to enable them to sell ice cream the UDF way,” he said. “Probably the biggest expense is the expanded freezer area, which we call a hardening room, both in the back of the store and in the customer-facing areas.”

The retailer’s outlets, some as large as 6,000 square feet, offer seating so that customers can enjoy ice cream on site. The company also has the necessary logistic and warehouse support to make and package its own ice cream—it owns more than 400,000 square feet of warehouse space.

“The majority is cold storage, with people working in an environment that is 20 degrees below zero,” Wilson said. “If you don’t have the capacity, a network or third-party partners to create the right logistic solutions, it can be very challenging.”

According to Diamond, an in-store ice cream program similar to High’s does not need the physical space that other foodservice efforts may require. “Essential equipment— like a dip case, dip well and scoops—ensures a streamlined and efficient service,” she said.

“The key is to give the ice cream offer a home that adds a touch of theater, making the experience fun and enjoyable for customers.”

Successfully selling hand-dipped ice cream requires a different approach to staffing. “You still have the convenience-store guests who want to run in and get something fast,” said Fannin. “But hand-dipping takes time. It’s personalized and customized, especially in the summer when stores are packed with guests looking for that after-dinner snack or shake.”

And don’t forget those mandatory sauces, nuts and candies, which must be fresh and look pristine. “In a small store setting, retailers can capitalize on this demand by curating a well-thought-out selection of ice cream products with branded inclusions or providing customizable options for customers to add their preferred mix-ins,” said Adams.

While implementing a shake program may pose challenges in terms of space and equipment, “the potential sales and custom-

Driving the industry forward, together Convenience is always evolving, but NACS delivers the insights and innovative tools to help retailers win. Our latest initiatives improve how you serve your customers and communities and keep your business one step ahead.

Revolutionizing age verification at the register and beyond

Optimizing retailers’ digital presence to drive traffic & growth

The appeal of shakes spans across various age groups, making them a timeless, universally loved treat.”

88 APRIL 2024 convenience.org

er satisfaction benefits can outweigh these considerations,” said White. “The appeal of shakes spans across various age groups, making them a timeless, universally loved treat.

The key lies in offering a range of options that cater to different preferences and age groups.”

NO SPACE FOR SHAKES? Not every convenience store has the necessary space or the staff to serve hand-dipped ice cream or made-to-order shakes. But every store with a cooler can display ice cream, and there are many opportunities to make that offering special.

Private-label ice cream has been well-received by American consumers. In 2022, Ben & Jerry’s, the nation’s leading ice cream brand, sold 182 million units, according to Statista, while all private-label ice cream brands combined sold 410 million units. Since 2015, 7-Eleven has sold ice cream pints under the 7-Select brand, which has been a win for the company.

“Our private-label products are popular with customers for the value they offer, with a winning combination of high quality and affordability,” said Allie Castillo, senior product development manager for 7-Eleven. “And customers love 7-Select ice cream because it offers convenience without compromising on quality, whether they are craving a treat or bringing dessert to a social gathering.”

Along with traditional flavors, a 7-Eleven freezer features diverse choices ranging from banana cream pie and caramel butter pecan to strawberry banana shortcake. This summer, birthday cake ice cream will be available for a limited time.

“We strive to offer options for all tastes and preferences,” said Castillo. “If someone is looking for a treat, we have 7-Select ice cream or fresh baked cookies. Or if someone is looking for better-for-you snacks, we offer fresh fruits, yogurt parfaits and cold-pressed juices.”

Over the past few decades, surveys have indicated that consumers want better-for-you foods and treats. But what they say they want is not always what they order.

“Better for you is important, and United Dairy Farmers has offered a low-fat ice cream and shakes for years,” said Finnen. “We’ve tried Greek yogurt and tangy yogurt and no sugar added. And then there’s keto ice cream.

We’ve looked at it but not produced it. People talk about eating healthy, but ice cream is a treat. And when people want a treat, they’re not going to look at the calories.”

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

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

Conference: October 7-10, 2024 Expo: October 8-10, 2024 Las Vegas Convention Center

We’re back in Vegas!

ready to bring it!

The NACS Show gives you four dedicated days with your convenience community to learn from your peers, co-explore the latest products and leave ready to conquer another year of owning convenience!

Be the first to know when Registration Opens Next Month. Add your name to the “notify me” list at nacsshow.com/notify

Scan now to be notified!

Cool New Products Guide This advertorial-style guide of services and packaging appears monthly and is an information-packed tour of ideas and approaches that can change how consumers view your store or choose your brand. It spotlights the newest thinking in convenience and fuel retailing and gives you an advance look at ways of staying in front of industry trends.

Products are categorized the same way we organize the Cool New Products Preview Room at the NACS Show each year in October— New Design, New to the Industry, New Flavors, Health & Wellness, Green (EcoFriendly), New Services and New Technology.

Products are considered “new” this year if they’ve been introduced since October 2023.

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

NEW FLAVORS

KeHE Distributors Waters & Functional Beverages

Thirst-quenching, Better-For-You Waters & Functional Beverages

Be the “better-for-you” leader in your market.

KeHE carries over 8,000 brands of natural, organic, specialty, and fresh products, to satisfy your health-conscious, on-the-go consumers.

In addition to Better-For-You Beverages, KeHE offers over 35 turnkey, customizable, segment solution sets incorporating high volume and high growth brands designed for small-footprint and limited assortment retail formats. KeHE supports your business with merchandising and delivery services that include DC-to-DC delivery with order minimum OR direct store delivery - No minimum order, drop-ship, and free delivery for orders of $50 or more. Email: MarcRosenthal.CStore@kehe.com for Your Healthy Sales Solutions!

90 APRIL 2024 convenience.org

NEW FLAVORS

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THE TATER THAT’S GREATER

Tater Kegs are shredded potato mixed with delicious flavors. All the best parts of a baked potato in the perfect handheld package. From the freezer, to the fryer, to the customer.

Serve them in a variety of different ways and in many different applications. Great for to-go. Tater Kegs have a hold time of up to 4 hours under heat lamps.

With all the uncertainties in the world today we should be able to be certain that our food always has great flavor, and Tater Kegs provide that comfort in every bite!

Tater Keg flavors include Bacon Cheddar Chive, Cheese Bomb, Bacon Jalapeno, Buffalo Chicken, Crab Feast, Chorizo Burrito, Breakfast Skillet & The Reuben.

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For more information, please visit: reignbodyfuel.com NACS APRIL 2024 91

GAS STATION GOURMET

Home-Cooked Cajun The Henry family makes customers feel like they’re part of the family.

BY AL HEBERT

W

hen you walk into Henry’s Travel Plaza in Lacassine, Louisiana, you might notice that it has a large footprint, but it feels a bit like home. You might also hear bells.

No, it’s not angels, but pretty close. It’s the cashier ringing the bell and yelling the names of regular customers.

If you’re roadtripping through south Louisiana on I-10, take exit 48 for the food, the fun and the family feeling.

Kendal and Brandon Henry own the travel plaza, which opened in 2020.

“They traveled a lot. They wanted a place where families can feel safe when they

Cashier Gabby Degeyter makes regulars “feel welcome and loved.”

92 APRIL 2024 convenience.org

stop. They wanted Louisiana items, clean restrooms and great food available to travelers,” general manager Marlee Henry explained. Marlee is the owner’s niece.

“We are a full-on family operation,” Marlee said. “My sister, Corren, is the chef. My parents worked and she learned to cook for us. The Henrys are a farming and ranching family. Rice and gravy, pork chops are things people want to eat. With us not having a smoke house, we get creative with a bunch of different products. [Corren] has done a good job of creating really good food.

She’s good at catering to the customers.”

In January, the retailer decided to change the way it does food. “We switched to Cajun food. Our travelers want Cajun food and we felt we were missing the mark,” she said.

BOWLS AND BURRITOS If the food here feels like home, it’s because menu items come right from the Henry family table. It starts with breakfast. “The Camp Bowl is bacon, egg and rice or sausage, egg and rice,” Marlee said. The bowls originated during family hunting trips. “We also do smoked sausage on Texas toast,” Marlee said.

“Our burritos are the most popular breakfast item. When we first started selling them, we sold 320 burritos in five days. We put smoked sausage, eggs, cheese and potato wedges,” Marlee said.

Another version uses bacon instead of sausage. “We have a lot of construction guys around here and they love it. It’s easy to eat on the go and it’s filling,” Marlee said.

We are a full-on family operation.”

‘SWEET AND HEAT’ Foodservice operators have to come up with great menu items. More importantly, customers have to love them.

“Our baked barbecue chicken sells out each time. The chicken is seasoned and marinated for two or three days before we sear it on our grill. Then, we put it in pans and layer it and cover it with our pepper jelly barbecue sauce. We bake it for about an hour or two. As it bakes, the flavor is infused throughout the chicken. Right before it’s served, we baste it one more time and serve it with homemade mac and cheese, baked beans and a garlic roll,” Marlee said, adding, “Our first week we sold 86 chickens before noon. Next week we had 96, and we sold out before noon.”

Some people may not be familiar with pepper jelly. It seems to be everywhere in Cajun country. It’s basically jelly combined with peppers and sugar.

It is the sweet and heat that is so popular in this part of the world.

Meatball stew is a customer favorite.

It’s one of those items that is hard to find outside of Louisiana. It’s made with homemade Cajun meatballs. They are browned and cooked in a thick, brown gravy.

Marlee wasn’t sure about its success in the beginning. “When Corren put it on the menu, I wondered if people would like it. People buy family pans of it. We sell out on meatball stew.”

Left: It’s a full-on family business. Owner Kendal Henry and general manager Marlee Henry.

SIDES WORTH NOTING Coming up with sides that complement a great entree is important. Some sides just have to be created in-house. “Our homemade mac and cheese is made inhouse. So are our baked beans. People love the rolls. They are basic garlic rolls,” said Marlee.

There seems to be something special about chicken salad. Travelers like it because, if it’s good, it takes you home for a minute. Here, it’s very good.

“We just started making our own chicken salad and we can’t keep it in stock. When we are out, customers hound the cashiers wanting to know when we’re making more. It’s our spice that sets it apart. My sister created an all-purpose blend of spices. It’s not too spicy. It’s seasoned well,” Marlee said, adding, “When you’re traveling, it’s not going to weigh you down.”

There is something unique about the way it’s made. The chicken is seasoned with Corren’s special blend of spices

and marinates for a couple of days. The magic might be that the chicken is not boiled, it’s grilled.

GIVING BACK AND MANAGING WITH A HEART When you talk to Marlee, you understand that this family feels blessed with the success it has experienced. Giving back is important. The family makes sure the community understands their gratitude.

“We’re local, so we have a lot of local support. Each December, we do an outreach program and adopt families. We get them gifts. We wanted to add to the community. We like to do a lot of things like that throughout the year to show our appreciation,” Marlee said.

“We also host a farmers markets during the summer. We charge for booths. We’ve taken that money and started a scholarship. We employ students. They write an essay, and we award the winner scholarship money,” Marlee said.

A SENSE OF FUN About that bell: One of the cashiers, Gabby Degeyter, rings the bell. “It makes you feel welcome and loved. Any time one of her regulars comes in she’ll ring the cowbell and yell your name. If you’re a regular and you don’t acknowledge her, she will ring the bell and yell at you,” Marlee said. “People will say they were having a bad day and the crazy woman with the cowbell rang it and yelled and made their day.”

Marlee said, “We just hope to continue to grow. This industry is ever-changing, and we will adapt to what’s to come.

I don’t think we will become a franchise. We like to do one thing and do it well and keep that family, faith-based community feel.”

Al Hebert is the Gas Station Gourmet, showcasing America’s hidden culinary treasures. Find him at www.GasStationGourmet.com.

NACS APRIL 2024 93

CATEGORY CLOSE-UP BEER

Diamond in the Rough C-stores buck the trend of soft beer sales as the category drives trips for retailers.

IL21/Getty Images

BY TERRI ALLAN

94 APRIL 2024 convenience.org

3.89%

Beer’s in-store gross margin contribution Source: NACS State of the Industry Report® of 2022 Data

Kuzmik_A/Getty Images

D

espite all the media reports of the recent demise in beer sales, the category remains a steady one for convenience retailers. And while c-store operators and marketers don’t dispute the challenges beer faces—competition from other alcoholic beverages and an increasingly moderating consumer—they’re optimistic that the category will remain a top driver for instore sales and traffic.

“The headlines of declining beer do not apply to convenience,” remarked David Garcia, national accounts vice president, convenience stores, at Molson Coors Beverage Co., citing a 5% increase in dollar sales in the channel last year.

Greg Merlo, vice president, category leadership, at Anheuser-Busch, pointed to beer’s “resiliency” in the trade channel last year, and its key contributions to overall c-store sales. “Beer continues to be a huge trip driver, with unit sales up 3%, outperforming the total store,” Merlo said.

NACS’s data also paints a stable picture for beer. According to Emma Tainter, research analyst, with the exception of a dip in February, average sales per store, per month through October closely modeled that of the same timeframe in 2022. While 2023 year-end data wasn’t available at press time, Tainter noted that average sales per store, per month for beer in 2022 were $18,063, accounting for 7.03% of in-store sales.

SINGLES RULE Single serves are the workhorse for beer in the cold box. “Singles continue to be a significant driver of growth for the category,” said Merlo, surging nearly 13% last year and accounting for 30% of total dollar sales and most of beer’s growth. The strong performance was likely due to shoppers trading down to lower-priced options, the A-B executive said, as well as the growing popularity of brands known for flavor and ABV. With singles accounting for more than 50% of all category trips, Merlo encouraged retailers to ensure they have the appropriate space, days of supply and variety in the singles door that shoppers expect.

Garcia added that with singles—driven by domestic premiums and imports— representing two out of every three beer units purchased in c-stores, they serve multiple need states. He recommends retailers promote a “clear value proposition” for the products, such as two-for offers. At Casey’s, singles sales are “very healthy,” Chris Stewart, vice president, merchandising, reported, and are popular with weekday customers who purchase a slice of pizza. “That

Industry Sales: Beer % of In-Store Sales

7.07% 7.03% 2021

2022

Avg. Sales/Store

$17,217 $18,063 2021

2022

% of Stores Selling

85.0% 86.1% 2021

2022

Source: NACS State of the Industry Report® of 2022 Data

NACS APRIL 2024 95

CATEGORY CLOSE-UP BEER

Beer Sales Per Store, Per Month Jan 2020-Nov 2023

n 2020

n 2021

n 2022

n 2023

$23,622

$25,000

$20,000

$15,000

$10,000 JAN

FEB

MAR

APR

MAY

JUN

JUL

AUG

SEP

OCT

NOV

DEC

Source: NACS CSX Convenience Benchmarking Database

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.

96 APRIL 2024 convenience.org

same customer will come in on a Friday and purchase a 12-pack for the weekend,” he said.

Another growth engine for beer these days is imports, particularly Mexican brews. Constellation Brands’ Modelo Especial has been soaring for a number of years, and 2023 was no exception.

When it comes to imports, “it’s all Modelo at our store,” remarked Lynette Stoudt, owner of Tramway Market in Stateline, Nevada. Craft brews, another higher-priced subcategory, are generally slowing, retailers said, but continue to hold opportunity for the channel. At Rusty Lantern Markets in New England, in fact, a heavy focus on local and craft brews helped the chain achieve a 23% increase in beer sales last year, according to John Koch, manager and CEO. He also credits Keri Weekley and Shelly

FMBS AND NABS Two of the fastest-growing subcategories in beer are flavored malt beverages (FMBs) and nascent non-alcoholic beers. At Plaid Pantry, with more than 100 stores in Oregon and Washington, “2023 was the year for FMBs,” as well as imperial ciders and imported brews, Jon Manuyag, director of marketing, reported. He points to products like hard teas and the emergence of established beverage brands into the subcategory via the likes of Hard Mtn Dew, Simply Spiked lemonade and Monster’s The Beast Unleashed for helping to drive a 22% gain in FMB sales at the

Tetra Images/Getty Images

The Power of CSX Data

Blanchette, Rusty Lantern’s category managers, for their oversight in beer’s strong performance.

Craft singles, particularly 19.2-ounce cans that boast high gravity and flavors, have been notably strong in c-stores in recent years. For that reason, Leo Basile, vice president of sales at Louisiana’s Abita Brewing Co.— producer of brands like AndyGator lager—recommends that c-stores “give opportunities to local brands that have consumer loyalty and buying power.”

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CATEGORY CLOSE-UP BEER

60% of alcohol occasions are centered around a meal.”

chain last year. Casey’s Stewart said the popular FMBs are just the latest development in alternatives to beer. “Three or four years ago, everybody was creating a hard seltzer,” he noted. “Today, it’s an FMB or ready-to-drink cocktail.”

According to Tainter, non-alcoholic beers registered a big gain year to date through October, albeit on a very small base. “The sales dollars are still pretty low, and it’s a small percentage of the category,” at just 0.2% of sales, she explained. Still, c-store operators report growing interest from their customers, particularly young legal-drinking-age consumers, in the offerings. “We only sell three brands, but customers seem interested in them,” remarked Stoudt in Nevada.

PAIR WITH FOOD One of the best ways for c-stores to maximize growth in the beer category is to cross promote with meals where doing so is legal, Merlo said. According to the Anheuser-Busch executive, 49% of households purchased a meal at a c-store within the last year and their items per basket were 40% greater than non-meal baskets. “Beer is a great partner for the meal pairings, as 60% of alcohol occasions are centered around a meal,” he noted. Casey’s is a big believer in cross promoting beer with meals and coined itself the “Official Pizza and Beer Headquarters” last year while hiring its first-ever “chief pizza and beer officer” this year. Noting that Casey’s is the fifth-largest pizza

Members of Congress Get an Up-Close Look at Local Businesses in Our Industry

Your Store Could Be Next…

The NACS In Store program brings convenience and fuel industry members together with members of Congress to gain first-hand knowledge of our industry and local operations.

Multiple dates and locations available across the United States.

Learn how you can host a NACS In Store event in your store.

98 APRIL 2024 convenience.org

Your exclusive source of the most up-to-date compensation data for the convenience industry is now available in an interactive, digital tool. The Dashboard is the only convenience-specific HR professional's guide to industry benchmarks on compensation, benefits, recruitment and retention.

Benchmark against comprehensive, retailer-supplied data to offer differentiated compensation and incentive programs.

Design a competitive strategy to recruit and retain corporate, operations and store-level personnel.

Build high-performing, efficient teams through insights on screening, hiring and training practices from leading retailers.

CATEGORY CLOSE-UP BEER Subcategory Data Same-Firm Sample, Per Store, Per Month Percent of Sales

Avg. Sales/Store

Avg. GP$/Store

Gross Margin %

2021

2022

2021

2022

2021

2022

2021

2022

Premium

33.6%

32.6%

$5,791

$5,874

$1,007

$1,040

17.39%

17.71%

Popular

15.6%

15.4%

$2,693

$2,789

$444

$443

16.50%

15.88%

Flavored Malt

15.3%

15.3%

$2,634

$2,766

$639

$684

24.27%

24.73%

Imports

13.4%

14.7%

$2,303

$2,653

$508

$590

22.08%

22.23%

Budget

8.1%

7.6%

$1,403

$1,382

$246

$249

17.51%

18.01%

Microbrews/Craft

7.6%

7.4%

$1,307

$1,346

$314

$325

24.01%

24.18%

Super Premium

5.3%

5.2%

$904

$936

$204

$214

22.60%

22.84%

Malt Liquor

0.9%

1.6%

$156

$286

$49

$81

31.05%

28.31%

Non-Alcoholic

0.1%

0.2%

$26

$32

$6

$6

21.52%

20.42%

Total

100%

100%

$17,217

$18,063

$3,417

$3,632

19.85%

20.11%

Beer

Source: NACS State of the Industry Report of 2022 Data ®

chain in the country and that most of its competitors don’t sell beer, Stewart said, “We see pizza and beer as a point of differentiation versus the rest of the market.” Where it legally can, Casey’s promotes offers like $5 off a 12-pack with a pizza purchase.

While overall sales of beer have been soft, marketers like Anheuser-Busch and Molson Coors expect the category

to register a low single-digit increase in c-stores this year. Still, retailers must monitor the buying patterns and requests of their customers, particularly if some of them are cutting back on alcohol consumption. “Gen Z consumers are definitely not drinking as much as previous generations,” Tainter remarked.

“This is something retailers need to pay attention to.”

Industry Sales: Liquor

1.34% 1.41% 2021

2022

Avg. Sales/Store

% of Stores Selling

$3,496 $3,585

25.4% 26.7%

2021

2021

2022

2022

Source: NACS State of the Industry Report of 2022 Data ®

100 APRIL 2024 convenience.org

tatniz/Getty Images

% of In-Store Sales

Wine and Liquor Pack a Punch While beer remains a key sales and traffic driver for c-stores, retailers are increasingly focusing on wine and liquor in an effort to market their stores as total alcoholic beverage destinations. Following sales spikes during the pandemic, per-store per-month sales of wine and liquor for the first 10 months of 2023 “fell in the middle of the pack,” Tainter said.

“Like a lot of categories, they’re seeing a slower growth post pandemic.”

Still, retailers and marketers are enthused about the opportunity for the categories, and particularly for wine- and spirits-based ready-todrink (RTD) offerings. “While wine continues to grow in popularity, we’re seeing tremendous growth in wine-based RTDs, which has really penetrated the c-store channel with multiple formats,” said Herb Smith, vice president, customer development, at E. & J. Gallo Winery.

At Rusty Lantern, wine-based cocktails and bottled and boxed wines combined for a 42% increase in sales last year, Koch reported. He attributed the strong performance to set maintenance, SKU rationalization by region and the offering of both chilled and ambient wines.

At Plaid Pantry, meanwhile, wine growth is “due to our ongoing investment in the category,” which includes constantly evaluating the amount of dedicated wine space in the store, as well as strategically crafting its assortment of 750 ml wines to tailor to local offerings, Manuyag said.

Within the liquor category, Smith and retailers point to canned cocktails and small-format bottles as driving much of the excitement lately. Gallo’s High Noon alone generated $124 million in c-store sales last year, Smith noted. Casey’s Stewart said he’s seeing migration from malt-based seltzers to spirits-based seltzers and canned cocktails. As a result, the stores now sell brands like High Noon, Nütrl and Cutwater cold, including in the singles door. “We also have unique displays and activities throughout the course of the year, such as endcaps showcasing new products,” Stewart noted.

According to Smith, sales of 50ml bottles are growing at a double-digit rate and represent 16% of c-store liquor sales. “Make room for small formats,” he said, such as behind the counter. At Casey’s—which, Stewart said, is the fourth-largest off-premise liquor permit holder in the country, after Walmart, CVS and Walgreen’s, with 1,500 licenses—50 ml bottles of brands like Fireball are merchandised in a self-service on-counter display. “We’re seeing strong growth on 50 ml,” the retailer said.

Indeed, Casey’s is making a big investment in alcoholic beverages in general. “As we look ahead, the ability for Casey’s to sell liquor, beer and wine puts us in a position to adjust to the changing consumer,” Stewart said. “We expect the alcohol category in general to perform well at Casey’s into the foreseeable future.”

Industry Sales: Wine % of In-Store Sales

0.39% 0.41% 2021

2022

Avg. Sales/Store

$1,198 $1,331 2021

2022

% of Stores Selling

68.1% 69.1%

iStock/Getty Images

2021

2022

Source: NACS State of the Industry Report® of 2022 Data NACS APRIL 2024 101

CATEGORY CLOSE-UP BEER

Whatever beer products c-store shoppers are searching for these days, Garcia said retailers must understand that “balance is key.” He recommends having the right allocation for high-growth singles and popular brands, as well as “making smart bets on innovation that are communicated clearly.” The Molson Coors executive also advises that category sets be well organized, promotions are communicated at the shelf, and because the majority of beer purchased

Gen Z consumers are definitely not drinking as much.”

ADVERTISER INDEX Contact Information

Page

Altria Group Distribution Company......Inside Front Cover, 19 AGDCTradeRelations@Altria.com www.altria.com www.tobaccoissues.com Beamer x SmokeHouse Distribution.................................................. 9 www.beamersmoke.com BIC USA Inc................................................................................7 www.us.bic.com/en_us Black Buffalo Inc................................................................... 65 www.Blackbuffalo.com Buzzballs LLC...................................................................................... 41 (972) 242-3777 www.buzzballz.com Calico Brands Inc............................................................................... 58 www.calicobrands.com

Cool New Products Guide............................................................90-91 www.convenience.org/Media/NACS-Magazine/Cool-New-Products

Contact Information

Page

KeHE Distributors Holdings LLC............................................ 90 www.kehe.com

NuVue Foods Inc................................................................................ 49 www.18thstreetfresh.com

Kretek International..........................................................................25 www.kretek.com

Pace-O-Matic..........................................................................33 www.paceomatic.com (770) 441-9500

Krispy Krunchy Foods LLC....................................................... 3 www.krispykrunchy.com Liggett Vector Brands LLC............................Inside Back Cover (919) 990-3500 www.liggettvectorbrands.com Mike’s Hot Honey................................................................................53 www.mikeshothoney.com Monster Energy Company..................................................... 91 www.monsterenergy.com MOOSOO Corporation.........................................................................37 www.moosoo.com NACS Convenience Matters............................................................79, 4 www.conveniencematters.com

NACS Food Safety...............................................................................85 www.convenience.org/Education/Food-Safety-Forum

Goya Foods Inc................................................................................... 13 www.goya.com

NACS Industry Advancements, THRIVR & TruAge............................87 www.convenience.org/THRIVR www.mytruage.org

102 APRIL 2024 convenience.org

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NACS SOI Talent Insights Dashboard................................................ 99 www.convenience.org/Research

DMF Bait Company.............................................................................78 www.dmfbait.com

International Dairy Deli Bakery Association.................................. 103 www.iddba.org

Contact Information

Johnsonville Sausage Co...................................................................57 www.johnsonville.com

NACS Executive Education Programs 2024.......................................83 www.convenience.org/Education/NACS-Executive-Education

Hunt Brothers Pizza...............................................................39 www.huntbrotherspizza.com

Terri Allan is a New Jersey-based freelance writer, specializing in the beverage industry.

She can be reached at terri4beer@aol.com.

Thank you to these advertisers who have demonstrated their support of the convenience and fuel retailing industry by investing in NACS Magazine.

Diageo Beer Company USA............................................................... 97 www.diageo.com

The Hershey Company............................................ Back Cover www.thehersheycompany.com

in c-stores is consumed within a few hours of purchasing, the cold box is well stocked. With the right tactics in place, Garcia said, beer will “play a role in total store growth in 2024.”

PIM Brands Inc........................................................................27 www.pimbrands.com Polar King International Inc..............................................................23 (866) 576-7645 www.polarking.com www.polarleasing.com www.polarkingmobile.com Premier Manufacturing................................................................ 5, 59 (636) 537-6800 www.gopremier.com Stone Gate Foods...............................................................................91 (952) 445-1350 www.stonegate-foods.com Swedish Match North America LLC (Game Leaf).................. 17 (800) 367-3677 www.smna.com Swedish Match North America LLC (White Owl)...................75 (800) 367-3677 www.smna.com Swedish Match North America LLC (ZYN).............................55 (800) 367-3677

NACS In-Store.................................................................................... 98 www.convenience.org/Advocacy/Get-Involved/NACS-In-Store

Verifone Inc........................................................................................77 www.verifone.com/en/us

NACS Show 2024 Save the Date........................................................ 89 www.nacsshow.com

Xcaliber International........................................................... 69 (888) 4-XCALIBER www.xcaliberinternational.com

Retailers, manufacturers, wholesalers, brokers, and distributors from around the world – all together, in Houston!

CALL IT THE “SHOW-STOPPER” REGISTER NOW The premier industry trade show for retail dairy, deli, bakery and foodservice.

IDDBA 2023 By The Numbers: • 81% of attendees represented buyers and key decision makers • Over 1,600 retail attendees represented 564 retail companies • 1,977 Exhibit Booths/810 Companies/235 New Companies

IDDBA.ORG

BY THE NUMBERS

The Top 10 In-Store Categories The NACS State of the Industry Report® of 2023 Data will be available for purchase by early July.

As a refresher, here are the in-store categories that took the top spots in 2022.

One of the biggest changes in the 2022 top 10 line-up was prepared food becoming the No. 1 in-store category in sales and gross profit dollars for the first time.

Prepared food averaged $44,878 in sales per store, per month in 2022—besting the second-highest contributor of cigarettes, which came in at $43,195 per store, per month.

Prepared food also saw the most year-on-year sales growth at 13.8%. In fact, all categories, except for hot dispensed beverages, earned more sales in 2022 compared to 2021.

To no surprise, packaged beverages took the third slot.

Packaged beverages have been a top-performing category in terms of sales over the last 10 years and shows no sign of slowing down. Fifth place, Other Tobacco Products, averaged $17,436 per store, per month in 2022 in sales, an increase of 10.0% from 2021.

For insights on the top 10 in-store categories of 2023, make sure to purchase the NACS State of the Industry Report® of 2023 Data, which will be available digitally or in print at convenience.org/solutions/store.

Prepared food saw the most year-on-year sales growth at

13.8%

.

2021

2022

Prepared Food

$39,452

$44,878

Cigarettes

$44,623

$43,195

Packaged Beverages

$34,056

$37,496

Beer

$17,217

$18,063

Other Tobacco Products

$15,852

$17,436

Salty Snacks

$7,850

$8,972

Candy

$6,876

$7,914

Hot Dispensed Beverages

$6,173

$6,147

Cold Dispensed Beverages

$4,018

$4,569

Frozen Dispensed Beverages

$3,572

CATEGORY

$3,977 Source: NACS State of the Industry Report® of 2022 Data

104 APRIL 2024 convenience.org

dla4/Getty Images

TOP 10 IN-STORE CATEGORY SALES PER STORE, PER MONTH