CSN-0722 by ensembleiq

WITH FRAZIL, THE #1 SLUSH PROGRAM IN THE US Call or scan for more details

888-898-3142

Let Frazil convert your slush equipment for free and sell 20%-50% more slush in 2022! (Offer ends 8/31/2022)

FREE rebrand of the front panel graphics and light lids FREE signage and point-of-sale materials FREE digital marketing support to drive consumer trial THE BEST tasting slush in the market

for mor can

nfo ei

20%-50% more sales!*

Call today for details: 888-898-3142 *SOURCE: sales data from 2,000+ stores that switched to Frazil from other slush programs during 1/1/2019-12/31/2021

Convenience Store News July 2022

W H AT ’ S N E X T I N C O N V E N I E N C E A N D F U E L R E TA I L I N G

THE PAYMENT EVOLUTION

NAVIGATING

ROADBLOCKS Despite obstacles, the convenience store industry’s small operators are continuing to invest in bettering their businesses. Volume 58, Number 7

J U LY 2 0 2 2

CSNEWS.COM

01.CSNcover_0722_v2.indd 1

7/6/22 2:26 PM

• • •

4247 Digital Trade Program Ad_CSNews_MECH.indd 1

2/18/22 11:16 AM

EDITOR’S NOTE

A Rising Tide Lifts All Boats “Convenience” has become a hot commodity, but more support is needed for the industry’s single-store and small operators to reap equal benefits President John F. Kennedy, the phrase “a rising tide lifts all boats” is mainly used by politicians and economists to convey the idea that if the economy improves, every participant in the economy will be in an improved financial position. COINED BY

The way I see it, in a perfect world, this phrase can also apply to the U.S. convenience store industry when it comes to the state of the industry’s single-store and small operators vs. the industry’s midsize players and large chains. “Convenience” has become a hot commodity in the age of COVID, putting convenience stores at an advantage. But right now, every participant in the industry is not reaping equal benefits. The rising tide is not lifting all boats. The number of single-store operators in the convenience channel declined for the fourth straight year in 2021, dropping by another 3.1 percent. While these operators still account for 60.4 percent of all convenience stores, single-store owners made up a record 63.2 percent of the industry in 2017. And this multiyear trend shows no sign of reversing. According to the third-annual Convenience Store News State of the Small Operator Study (see page 32), there are more small operators (1-20 stores) who are currently thinking about downsizing or throwing in the towel completely. Roughly 14 percent of the small operators we surveyed said they expect to either decrease their store count or sell all their stores and exit the business by the end of this year — a sharp jump from the 6.8 percent who said the same a year ago. Given the current retail landscape, I guess it’s not all that surprising to see such a jump. The labor shortage is still ongoing. Supply chain issues continue to plague retailers,

distributors and suppliers. Inflation is running rampant. And rising gas prices are threatening the strong summer season that convenience retailers of all sizes were anticipating just a few months ago. Despite these obstacles and others, though, the majority of the convenience store industry’s small operators are not giving up. They are continuing to invest in bettering their businesses, from rolling out enhanced foodservice options to implementing digital marketing. For the foreseeable future, “convenience” is going to continue being a key factor for Americans in where they choose to shop, which bodes well for all convenience stores. However, for the tide to rise and lift all boats, there needs to be more support for the industry’s single-store and small operators, and more resources specifically designed and tailored to their unique needs. Convenience Store News has been doing its part with our annual State of the Small Operator Study, Small Operator content in every issue of the magazine, an entire Small Operator section of our website, and a weekly Small Operator newsletter delivered to inboxes every Monday. Convenience Store News’ mission is to deliver the insights, analysis, market research and business intelligence that helps c-store retailers stay ahead of what’s next — and that includes the industry’s single-store owners, small operators, midsize players and large chains. As the new leader of editorial content for Convenience Store News, this mission is one that I take very seriously, and I am excited to find new, innovative ways to deliver on this mission. For comments, please contact Linda Lisanti, Editor-in-Chief, at llisanti@ensembleiq.com.

EDITORIAL EXCELLENCE AWARDS (2016-2022)

EDITORIAL ADVISORY BOARD

2021 Jesse H. Neal National Business Journalism Award Finalist, Best Infographics, June 2021

2018 Jesse H. Neal National Business Journalism Award Finalist, Best Editorial Use of Data, June 2017

2016 American Society of Business Press Editors, National Azbee Awards Gold, Best How-To Article, March 2015 Bronze, Best Original Research, June 2015 2016 American Society of Business Press Editors, Midwest Regional Azbee Awards Gold, Best How-To Article, March 2015 Silver, Best Original Research, June 2015

2020 Eddie Award, Folio: magazine Business to Business, Retail, Series of Articles, September 2019 2018 Eddie Award Honorable Mention, Folio: magazine Business to Business, Retail, Website Business to Business, Retail, Full Issue, October 2017 Business to Business, Editorial Use of Data, June 2017 2017 Eddie Award, Folio: magazine Winner, Business to Business, Retail, Single/Series of Articles, May 2017 Honorable Mention, Business to Business, Retail, Single/Series of Articles, June 2016 2016 Eddie Award Honorable Mention, Folio: magazine Business to Business, Retail, Full Issue, October 2015 Business to Business, Retail, Single/Series of Articles, August 2015

Ray Johnson Speedee Mart

Chad Beck Core-Mark

Ruth Ann Lilly GPM Investments LLC

Edward Davidson Ed Davidson & Associates (7-Eleven Inc., retired) Robert Falciani ExtraMile Convenience Stores Jim Hachtel Eby-Brown Co.

2020 Trade Association Business Publications Intl. Tabbie Awards Honorable Mention, Best Single Issue, September 2019

Chris Hartman Rutter’s

2016 Trade Association Business Publications Intl. Tabbie Awards Silver, Front Cover Illustration, June 2015

J ULY

03.EdNote_CSN_0722.indd 3

Laura Aufleger OnCue Express

20 22

Vito Maurici McLane Co. Inc. Matt Paduano Lakeport Markets Jonathan Polansky Plaid Pantries Inc. Greg Scriver Kwik Trip Inc. Roy Strasburger StrasGlobal

Convenience Store News 3

7/5/22 2:27 PM

VIEWPOINT

Not Goodbye Every new beginning comes from some other beginning’s end ON JULY 1, I transitioned to the new role of Editorial Director Emeritus at Convenience Store News. As part of this transition, Editor-in-Chief Linda Lisanti assumed additional responsibilities, and Senior News Editor Melissa Kress became Executive Editor.

For at least the next year, I’ll still be around to collaborate with Linda and Melissa on delivering insightful content and growing audience engagement for the leading source of business intelligence in the convenience store industry. It’s the beginning of a new and exciting era for CSNews. Linda is the only editor here who pre-dates me on the team. I couldn’t have had a more indispensable consigliore or right-hand-woman for the past 16 years. I know that in Linda and Melissa, I leave the editorial management in extremely competent hands. Also, in Paula Lashinsky, I couldn’t have had a better publisher to work with.

I’m so proud to have played a role in guiding, growing and championing CSNews’ journalism across our print, digital and event platforms for the past 16 years.

I’m so proud to have played a role in guiding, growing and championing CSNews’ journalism across our print, digital and event platforms for the past 16 years. Our team of editors has grown in both numbers and expertise. We’ve pushed past the competition to become the No. 1 c-store industry media brand in market share. We pioneered digital-first reporting and dedicated ourselves to providing breaking news and distinctive in-depth analysis. We’ve identified and stayed abreast of emerging category trends, from energy shots to e-cigs to CBD products. We’ve broadened our coverage of growing topics like foodservice and technology. We’ve invested in new platforms to serve our audience better, such as our Top Women in Convenience program, our Future Leaders in Convenience awards, our Convenience Foodservice Alliance membership community, our Technology Academy online learning module, and our Diversity & Inclusion educational platform.

Over the past 40 years, I’ve led the editorial efforts of four business publications that covered many different retail industries, from apparel to drug stores to building supply and home centers to mass merchandisers and grocery stores. The c-store channel has, by far, been my favorite. No other retail channel can match the entrepreneurial spirit, the resiliency, the congeniality and the graciousness of the retailers and suppliers who work in the convenience channel. When I finally ride off into the sunset, I want to be known not just for the editorial successes of the publications I led, but also for what I gave back to the companies I worked for, the editors and reporters who worked for me, and the retail industries I reported on and served. For comments, please contact Don Longo, Editorial Director Emeritus, at dlongo@ensembleiq.com.

4 Convenience Store News C S N E W S . c o m

04.Viewpoint_CSN_0722.indd 3

7/5/22 2:30 PM

WARNING: This product contains nicotine. Nicotine is an addictive chemical.

DISTRIBUTION

ROGUE RANKS

PROFIT BOOSTING

+48%

PARTNER PROGRAMS

OVER LAST YEAR

POUCH VOLUME

DISTRIBUTED AND SOLD BY

UNDERAGE SALE PROHIBITED MSAi Retail Database as of 3/26/22. Retail data 13 weeks ending 3/26/22

FullPgAdTemplate.indd 1

STOCK ROGUE TODAY!

800.874.9720

CUSTOMERSERVICE@SWISHER.COM

7/5/22 1:44 PM

Convenience Store News July 2022

CONTENTS JULY 22

VOLUME 58 N UMB ER 7

W H AT ’ S N E X T I N C O N V E N I E N C E A N D F U E L R E TA I L I N G

COVER STORY PAGE 32

76 Volume 58, Number 7

98 FEATURES

DEPARTMENTS

COVER STORY

EDITOR’S NOTE

VIEWPOINT

3 A Rising Tide Lifts All Boats “Convenience” has become a hot commodity, but more support is needed for the industry’s single-store and small operators to reap equal benefits.

4 Not Goodbye Every new beginning comes from some other beginning’s end.

32 Navigating Roadblocks Despite obstacles, the convenience store industry’s small operators are continuing to invest in bettering their businesses.

10 CSNews Online 24 New Products AN EYE ON D&I

76 Building Trust in Diversity, Equity & Inclusion Commitments Operational success can suffer if employees cannot trust their employer to fulfill the commitments they have made. STORE SPOTLIGHT

78 Showing Off New Tricks Sporting a canine logo, Curby’s Express Market aims to be a new breed of convenience. INSIDE THE CONSUMER MIND

98 Charged Up More convenience store customers are considering the switch to an electric vehicle.

6 Convenience Store News C S N E W S . c o m

06-08.TOC_CSN_0722.indd 6

7/6/22 11:35 AM

LIGHT UP YOUR SALES WITH QUALITY AND SAFETY.

MAXI CLASSIC®, AMERICA’S SAFEST & LONGEST-LASTING LIGHTER1

THE ULTIMATE LIGHTER FOR HARD-TO-REACH PLACES

Whatever your consumers’ lighting needs are, we’ve got you covered. Featuring options and styles for everyone, BIC® is the perfect choice for quality, safety and sales.

TO ORDER, VISIT NEWREQUEST.BIC.COM *

vs. fixed-flame, non-refillable lighters of comparable size; *Source: Information Resources, INC. C-MULO 52 weeks ending 06/05/22

FullPgAdTemplate.indd 1

7/5/22 1:45 PM

CONTENTS JULY 22

VOLUME 58 N UMB ER 7

8550 W. Bryn Mawr Ave., Ste. 200, Chicago, IL 60631 (773) 992-4450 Fax: (773) 992-4455 www.csnews.com

BRAND MANAGEMENT Vice President/Group Brand Director Paula Lashinsky (917) 446-4117 plashinsky@ensembleiq.com EDITORIAL Editor-in-Chief

Linda Lisanti llisanti@ensembleiq.com

Executive Editor

Melissa Kress mkress@ensembleiq.com

Senior Editor

Angela Hanson ahanson@ensembleiq.com

Managing Editor

INDUSTRY ROUNDUP

CATEGORY MANAGEMENT

12 Shell Seals the Deal for Timewise Stores

FOODSERVICE STUDY

16 Eye on Growth

48 An Appetizing Opportunity Convenience store retailers are bullish about investing in foodservice despite rising costs and operational challenges.

18 Retailer Tidbits

TOBACCO

14 Couche-Tard Puts More Circle K Stores on the Market

20 Supplier Tidbits TECHNOLOGY 70 The Payment Evolution C-store retailers adapt to the ways consumers want to pay online, in-store and at the pump.

Danielle Romano dromano@ensembleiq.com

Associate Editor

Sanestina Hunter shunter@ensembleiq.com

Editorial Director Emeritus

Don Longo dlongo@ensembleiq.com

Contributing Editor

Renée M. Covino reneek@aol.com

Contributing Editor

Tammy Mastroberte tmastroberte@gmail.com

ADVERTISING SALES & BUSINESS Associate Brand Director & Northeast Sales Manager (774) 212-6455

Rachel McGaffigan rmcgaffigan@ensembleiq.com

Associate Brand Director & Western Sales Manager (330) 840-9557

Ron Lowy rlowy@ensembleiq.com

60 Marketing Revolutionaries Advanced digital strategies, loyalty programs and more are fueling a promotional evolution in the tobacco category.

Associate Publisher & Midwest Sales Manager Kelly Fischer (773) 992-4464 kfischer@ensembleiq.com

SNACKS

List Rental (914) 309-3378

66 Ingenuity on Display The 2022 Sweets & Snacks Expo showcased the resiliency and inventiveness of the industry as it emerges from a tumultuous period.

Account Executive & Classified Advertising Terry Kanganis (201) 855-7615 tkanganis@ensembleiq.com Classified Production Manager Mary Beth Medley (856) 809-0050 marybeth@marybethmedley.com AUDIENCE MeritDirect Marie Briganti

Subscriber Services/Customer Care TOLL-FREE: (877) 687-7321 FAX: (888) 520-3608

contact@csnews.com

PROJECT MANAGEMENT/PRODUCTION/ART Creative Director (973) 607-1320

Colette Magliaro cmagliaro@ensembleiq.com

Advertising/Production Manager (773) 992-4418

Ed Ward eward@ensembleiq.com

Art Director (973) 607-1321

Lauren DiMeo ldimeo@ensembleiq.com

CORPORATE OFFICERS Chief Executive Officer

Jennifer Litterick

Chief Financial Officer

Jane Volland

Chief Human Resources Officer

Ann Jadown

Executive Vice President, Content

Joe Territo

Executive Vice President, Production

Derek Estey

CONVENIENCE STORE NEWS AFFILIATIONS Premier Trade Press Exhibitor

The contents of this publication may not be reproduced in whole or in part without the consent of the publisher. The publisher is not responsible for product claims and representations.

Convenience Store News (ISSN 0194-8733; USPS 515-950) is published 12 times per year, monthly, by EnsembleIQ, 8550 W. Bryn Mawr Ave., Ste. 200, Chicago, IL 60631. Subscription rates: Subscription rate in the United States: $125 one year; $230 two year; $14 single issue copy; Canada and Mexico: $150 one year; $270 two year; $16 single issue copy; Foreign: $170 one year; $325 two year; $16 single issue copy; Digital One year, digital $87; two year, $161. Periodical postage paid at Chicago, IL 60631, and additional mailing addresses. Copyright 2022 by EnsembleIQ. All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording, or information storage and retrieval system, without permission in writing from the publisher. Reprints, permissions and licensing, please contact Wright’s Media at ensembleiq@wrightsmedia.com or (877) 652-5295. POSTMASTER: send address changes to Convenience Store News, 8550 W. Bryn Mawr Ave. Ste. 200, Chicago, IL 60631.

8 Convenience Store News C S N E W S . c o m

06-08.TOC_CSN_0722.indd 8

7/6/22 11:35 AM

EXOTIC

AVAILABLE IN 2 FOR 99¢ AND SAVE ON 2 POUCHES FOR MORE INFORMATION CONTACT YOUR SWEDISH MATCH REPRESENTATIVE 800-367-3677 • CUSTOMER.SERVICE@SMNA.COM

FullPgAdTemplate.indd 1

7/5/22 1:47 PM

CSNEWS ONLINE

ONLINE EXCLUSIVE

SPONSORED BY

48 Convenience Store News C S N E W S . c o m

48-56.FoodServiceStudy_CSN_0722.indd 48

7/7/22 11:08 AM

The products you trust now share

one recognized name.

With all your customers’ favorite toppings now under the Hillshire Farm® brand name, it’s never been easier to show customers how incredible c-store pizza can be.

Contact your Tyson Foodservice Representative for product information, resources and market-relevant solutions backed by our trusted brands.

FullPgAdTemplate.indd 1

7/5/22 2:01 PM

FOODSERVICE

Foodservice Sales by Daypart (average % of sales)

32%

29% 24% 22%

30%

30% 12% 9%

Breakfast (6-8:59 a.m.)

2022 2021 2020

Morning snack (9-10:59 a.m.)

11%

Lunch (11 a.m.-1:59 p.m.)

10% 9%

Retailers predict breakfast will lead sales growth for full-year 2022. Meanwhile, some respondents in this year’s study indicate concern about nighttime occasions experiencing sales drops. Evening snack time and dinner are the dayparts they predict to have the biggest sales declines for full-year 2022.

7% 7%

13%

Afternoon snack (2-3:59 p.m.)

segments have seen their availability at convenience stores increase in 2022. Prepared food, which constitutes more than half of all foodservice category revenue, and hot dispensed beverages are again being offered by virtually all c-stores. Breakfast and lunch are generating the majority of foodservice sales. An especially encouraging stat is that sales in the 6 a.m. to 8:59 a.m. daypart increased 5 percentage points from 2021 to 2022 — likely a result of people returning to the office and resuming their morning commutes. Breakfast now accounts for 29 percent of foodservice sales vs. 32 percent for lunchtime.

14% 15% 4% 4%

5% Dinner (4-6:59 p.m.)

Evening snack (7-9:59 p.m.)

3% Late night (10 p.m. or later)

Actual 2022 Foodservice Sales (January - May)

64%

74%

30% 6%

10% 2022 Increase

16%

36% 12% 53%

2021

2020

Stay the same

Decrease

Expected Full-Year 2022 Foodservice Sales

The Ups & Downs of Recovery From January through May 2022, c-store foodservice sales have continued their recovery from the major losses sustained in 2020. Nearly two-thirds of operators (64 percent) report that their foodservice sales increased from January through May. Sentiment is even

70%

Increase

Stay the same

19%

10%

Decrease

more positive for the full year, with 70 percent of operators saying they expect their foodservice sales for all of 2022 to increase compared to 2021. Foodservice profits are a different story. Less than half of operators (45 percent) report that their profits increased from January through May, while nearly a quarter say their profits decreased during this time. Expectations 50 Convenience Store News C S N E W S . c o m

48-56.FoodServiceStudy_CSN_0722.indd 50

7/6/22 2:29 PM

FullPgAdTemplate.indd 1

7/5/22 2:02 PM

FOODSERVICE

for foodservice profits for all of 2022 are more positive but still tempered compared to sales expectations, with 57 percent predicting increased profits for the year.

Actual 2022 Foodservice Profits (January - May)

Study participants who expect sales and profits to either decline or hold steady point to factors strongly tied to lingering effects of the pandemic and Russia’s war with Ukraine as the primary causes. Rising costs, high gas prices and supply chain issues were listed by most. On the opposite end of the spectrum, operators who are optimistic about future sales and profits point to factors related to the long-term health of the category. Numerous participants cited business volume gains that prompted expansion of their programs and physical spaces. Increased foot traffic and consumer awareness that c-stores are viable alternatives to the quick-service restaurant channel are also favorable to category growth. One retailer noted that consumers “discovered food with c-stores during the pandemic and found it quick and easy.” New menu options are also a significant driver. While supply chain issues have interfered with the introduction of new products for some, others have used this as a push to innovate.

45%

27%

71%

22%

31% 24% 2022

Increase

51%

20% 2021

2020

Stay the same

Decrease

Expected Full-Year 2022 Foodservice Profits

57%

Increase

22%

Stay the same

21%

Decrease

“Supply chain issues continue to be challenging.

Biggest Obstacles to Foodservice Success 2022

2021

2020

Supply chain

84%

42%

28%

Difficulty in hiring & retaining employees

75%

80%

35%

Finding the right products/programs

33%

16%

12%

Changes in store traffic/trips due to COVID-19

31%

36%

62%

Operational inefficiencies at store level

27%

16%

15%

Increasing competition for foodservice business

22%

17%

13%

Lower foot traffic in stores

22%

36%

49%

Negative consumer perceptions around c-store foodservice

19%

24%

23%

Lack of alternative shopping options (e.g. mobile ordering, curbside pickup, delivery)

16%

14%

17%

Other

52 Convenience Store News C S N E W S . c o m

48-56.FoodServiceStudy_CSN_0722.indd 52

7/7/22 9:12 AM

Restaurant Quality

without the Labor! Buffalo Style Chicken

Italian Style Meat

Cook & serve right in the package; watch them ﬂy off your shelves!

Steak & Cheese

BEST NEW P R O D U CT S AWA R D S

Chicken Bacon Ranch Award winner of 2021

Pepperoni & Cheese

Visit us at NACS and taste the deliciousness for yourself.

BOOTH #4429 FullPgAdTemplate.indd 1

Find out more at unofoods.com/calzones

7/5/22 2:02 PM

FOODSERVICE

Supply Chain Issues

However, this is driving us to be more open to various foods that we normally wouldn’t try,” one respondent noted.

12%

The vast majority of c-stores are asking their customers to pay more for their food and beverage offerings these days. Ninety-four percent of this year’s study participants say they have raised their prices within the last year. Among them, 64 percent have raised prices across the board, while 30 percent have raised them only on select items. Compared to last year, operators are significantly more likely this year to say they are maintaining promotional levels. More than six in 10 report that they have not changed the number of foodservice promotions at their stores in the last year. Price discounts and bundling/meal deals are the most effective promotions, according to operators. Lower-cost promotional channels such as social media and signage at the fuel pump and outside the store remain the most popular. Then again, the percentage of retailers offering promotions via loyalty programs — which many industry experts believe is critical to maximizing foodservice sales and profits — continues its multi-year growth to reach above 50 percent this year.

34%

31%

28% 55% 2%

January - May 2022 Improved Worsened

30% 8%

Stay the same Don't know

Removed Menu Item Because of Supply Chain Issues

No 27%

Obstacles on the Road to Success While convenience store operators are uniform in their assessment that foodservice is an important and growing category that is worth long-term investment, they acknowledge numerous challenges in the present and near-future. More than half of this year’s study participants (55 percent) say supply chain issues worsened from January through May 2022, while just 12 percent say the supply chain improved. There is some optimism for the second half of the year, as 34 percent predict supply chain issues will improve by the end of 2022. However, 30 percent expect issues to further

Prediction for rest of 2022

Yes 73%

ARE THEY PERMANENTLY REMOVED? Some brought back, some permanently removed

78%

All items will be brought back

22%

54 Convenience Store News C S N E W S . c o m

48-56.FoodServiceStudy_CSN_0722.indd 54

7/7/22 11:28 AM

TECHNOLOGY FOR YOUR FRESH FOOD PROGRAM BOHA! helps you calculate how much food to prep each day AND lets you print, on-demand FDA compliant, Grab ‘N Go labels. And that’s just the beginning. BOHA!’s cloud-based platform digitizes your store’s processes for temp taking, refrigeration monitoring, task management, and more — so you’re never in the dark and always running at the highest efficiency.

www.transact-tech.com/cstore | boha@transact-tech.com

FullPgAdTemplate.indd 1

7/5/22 2:06 PM

FOODSERVICE

Raised Prices of Foodservice Items in Past Year No, but I am considering it 6%

Yes, across the board 64%

Yes, some items

30%

worsen and 28 percent expect no change, indicating a rather mixed perspective on the future. To cope with the present state of the supply chain, nearly three-quarters of c-stores are offering a smaller foodservice menu. Seventy-three percent of study participants say they have removed at least one food item because of supply chain issues. Among these retailers, 22 percent expect to eventually bring back all items, whereas 78 percent expect to only bring back some. Unsurprisingly, when asked to identify their biggest obstacle to foodservice success, c-store operators overwhelmingly point to the supply chain — with 84 percent of respondents citing this, a sharp jump from the 42 percent that cited it as a major obstacle a year ago.

RAISED PRICES (NET):

94%

When asked to identify their biggest obstacle to foodservice success, c-store operators overwhelmingly point to the supply chain.

The tight labor market is also a problem, with 75 percent citing difficulty in hiring and retaining employees as an obstacle. As a small silver lining, the percentage of retailers citing lower in-store foot traffic as an obstacle fell from 36 percent last year to 22 percent this year. Despite these roadblocks, c-store retailers are ready to put their foot on the gas and cruise to a more profitable foodservice future. Their planned category enhancements range from smaller-scale changes such as menu innovation, to larger-scale initiatives such as developing or enhancing a mobile app, expanding the kitchen, and remodeling the store. It’s not enough to offer the same old menu items at just-good-enough quality. One retailer noted that they plan to “make changes to the menu with better-quality ingredients, sell trending flavors, [and] offer menu or flavor/ variety extensions to what we currently sell.” Retailers also point to plans to expand takehome products, pizza and barbecue offerings; add products like scoop ice cream, rotisserie chicken, meatless items and ethnic foods; and streamline their menus to make in-store operations easier. Operators also note that they want to add more food and beverage customization; make their foodservice areas “brighter and more functional;” and, perhaps most importantly, “listen to customers, bring in what they want.” CSN

56 Convenience Store News C S N E W S . c o m

48-56.FoodServiceStudy_CSN_0722.indd 56

7/6/22 2:30 PM

Sweet profits. Naturally. Bring natural sweetness and profitability to your C-Store Coffee Counter with N’Robed – a new kind of sugar. Our innovative enrobing process coats sugar crystals with reb-M from fermented sugarcane – making N’Robed sugar twice as sweet with half the calories and carbs as traditional sugar. Because customers only use ½ the amount, N’Robed Sugar Crystals deliver significant cost savings, better yields, reduced storage and many other operational benefits.

Popular flavors and creamers under the N’JOY Brand let customers make over 100 varieties of coffee “their way.”

N’Joy ® is a registered trademark of the SUGAR FOODS CORPORATION.

FullPgAdTemplate.indd 1

Find out more at: NJOYCares.com or call us at 800-383-NJOY

7/5/22 2:05 PM

pre-rolled cone sales are up

20% vs. 1 year ag ago*

Category Volume

127.3mm in retail locations* Carried in

86k retail stores*

2020 20

2021 20

today it’s all about

green & clean

™

Made with Organic Hemp

Vegan

Non-GMO Hemp

Hempire Cones are made from organic hemp to deliver a clean and slow-burning experience *Source: Swisher - MSAi Database as of 4/23/22. Retail data 52 weeks ending 4/23/22. Data reflects volume through traditional outlets.

FullPgAdTemplate.indd 1

that does not interfere with the taste of the herbal mix. Unbleached and vegan. No wonder these are the cones everyone’s looking for.

7/6/22 10:24 AM

ADVERTORIAL

HEMP’S GROWTH:

A Key Component in the Future of Convenience A Q&A WITH NICO PETTERSSON, SWISHER DIRECTOR – BRAND STRATEGY, ADJACENT BRANDS It’s no secret that adult consumers have taken more interest in hemp products in recent years. How have you seen the sector and product demand evolve in that time? The combustible hemp category has shown consistent growth year over year and there are no signs of that trend slowing down. For example, the hemp segment of the wraps category is responsible for 87.5 million wraps sold in the last 52 weeks ending April 23, 2022, up 61% from the same 52-week period one year ago. This substantial growth in volume is coupled with a distribution increase of over 8%, with an additional 14,900 stores receiving hemp wraps, raising total stores receiving to about 47,400. Additionally, the cones category continues to perform well, with volume growth up 20%, and the hemp segment continues to outperform the category, up 29%. Two key drivers in that growth have been adult consumers’ interest in more natural products and the desire for alternatives to combustible tobacco. Coupled with the higher margins hemp products offer due to being exempt from most tobacco tax, c-stores are increasingly considering hemp products in their planograms. How has the Hempire product line expanded over the past ﬁve years since joining the Swisher portfolio, especially as the hemp sector continues to grow? We started with Swisher back in 2017 with 11 different hemp rolling paper SKUs. We focused on being as strategic

CSN_SWISHER Hemp July 2022 issue.indd 1 FullPgAdTemplate.indd 1

as possible and we did a lot of listening and learning. This due diligence led to the release of our Hempire Wraps product line in July 2021. This product experienced immediate success in the c-store channel as a lot of synergy and familiarity already existed between the blends of Swisher’s legacy tobacco products and our hemp wraps. Speciﬁcally, we have already sold over 30.4 million wraps, accounting for 35% of all hemp wraps sold since the July 2021 launch. Hempire Wraps are in over 25,900 retail locations, which accounts for 55% of all stores receiving hemp wraps. This early success has led to earning several recognitions from the industry, including CSNews’ 2021 Best New Product award. And just this year, we released Hempire Cones – a product line that

we anticipate will serve as a key growth driver moving forward. This is especially true in the short term – after a strong initial launch period, we’re already seeing our cones in 11% of all retail locations carrying cones. Overall, the last five years have been filled with excitement and momentum, which has only grown in the past 24 months. And the most promising part is that we are only getting started. How has the emergence of alternative raw materials in convenience stores impacted the business? The emergence of these materials in the c-store channel has had a positive impact not only on our business, but also the hemp sector as a whole. Once again, a byproduct of the evolving tobacco regulation is the ongoing acceptance of herbals. This increase in acceptance has led to a stronger understanding and awareness of the products available across the hemp sector. This represents a unique and significant growth opportunity for hemp-based products to become more prevalent and widely used nationwide. What do the next five years look like for Hempire and the hemp sector? Given the past and projected future growth of the hemp sector, we will continue to increase our presence across the U.S. and look for opportunities to expand overseas when the time and opportunity are right. We will also continue to invest in digital transformation so that our products are even more accessible to adult consumers seeking alternatives. We will be watching the hemp sector’s growth closely as it represents a massive opportunity in its pursuit of playing a larger role in the future of convenience. Source: MSAi Database as of 4/23/22. Data reflects volume through traditional outlets – 52 weeks ending 4/23/22.

6/3/22 10:44 AM 7/6/22 10:25 AM

TOBACCO

Marketing Revolutionaries Advanced digital strategies, loyalty programs and more are fueling a promotional evolution in the tobacco category By Renée M. Covino AS ALTERNATIVE tobacco products evolve, so does the marketing activity behind them.

New technologies adopted by age-restricted (AR) manufacturers have helped enable “tremendous evolution in tobacco nicotine product marketing,” according to Ryan Griffin, senior director of age-restricted brand partnerships for Atlanta-based Professional Datasolutions Inc. (PDI), a provider of enterprise management software to the convenience store industry. Loyalty-based digital solutions, like those offered by PDI, are creating scenarios where “everyone is winning,” Griffin said. Adult consumers are receiving more targeted promotions that meet their individual needs; retailers of any size can participate at a local level; and manufacturers are learning more about their customers through data and insights.

“The industry is committed to fostering responsible use, which makes age verification and opt-in technology that much more critical for everyone involved,” he explained. “A robust digital offer network allows the introduction of emerging options, and a chance to educate consumers as their preferences change.” As part of their commitment to responsible use, tobacco manufacturers are innovating to create more and more products with potentially reduced risks. “The best-in-class companies are utilizing digital strategies, appropriate social channels, retail partner systems and shared databases to not only promote products, but also to engage with and enhance the brand relationship with adult consumers. There is no magic bullet, but the most effective programs are ecosystem-centric, not transaction-based,” John Miller, president of the tobacco division for 22nd Century Group, maker of reduced-nicotine VLN Cigarettes, told Convenience Store News.

60 Convenience Store News C S N E W S . c o m

60-64.cmTobacco_CSN0722.indd 60

7/5/22 4:27 PM

FullPgAdTemplate.indd 1

7/5/22 2:06 PM

TOBACCO

He noted, however, that the reality is many tobacco manufacturers have not made this organizational jump and “still rely on past practices while expecting different results.” Because tobacco is a category with extreme brand loyalty, there is opportunity to learn from it and set new promotional standards for many other consumable products, too. “As we create and refine digital marketing solutions to support the needs of consumers, retailers and manufacturers alike, we’re looking at changing how offers are done across the entire convenience store,” stated Brian Lind, PDI’s vice president of product strategy and partnerships. “Packaged beverages, confectionery and other CPGs, take note: Where we’re going in AR with personalized value delivery based on past purchase history has the potential to impact the convenience channel as a whole for the better.”

Changing With the Times Forward-thinking tobacco manufacturers are positioning their promotional programs to change with the changing times, trying to stay ahead of the everevolving adult consumer. E-Alternative Solutions (EAS), the maker of Leap and Leap Go products, earned CSNews’ 2022 Category Captain award for e-cigarettes and vapor products, partly due to its advancements in marketing. EAS recently expanded its Leap Smart Rewards loyalty program, which offers seasonal giveaways and sweepstakes to the most engaged Leap fans, and entices customers to come back to the store. What’s more, it was recently announced that Leap Smart Rewards is developing market research surveys to better understand the evolving attitudes, desires and lifestyles of adult vapers. The program is also building a catalog of prize incentives to best complement these consumers. 22nd Century Group’s VLN brand is also launching a new rewards program, VLN Rewards, with a community feature and discounts. Additionally, the company is currently working with DigiVerum, a technology company that specializes in regulated products subject to age verification, on pricing/promotional

“The best-in-class companies are utilizing digital strategies, appropriate social channels, retail partner systems and shared databases to not only promote products, but also to engage with and enhance the brand relationship with adult consumers.” — John Miller, 22nd Century Group

activities and appropriate adult communication. “It’s going to change how we communicate and interact with adult smokers in licensed tobacco retail stores,” Miller said, explaining that the first phase of the program is entirely optimized around a mobile device experience, including a store locator and store-specific promotions that will be executed on a weekby-week basis. The second phase will focus on transformational ways to engage with adult smokers who are struggling with transitioning from high-nicotine cigarettes to reduced-nicotine cigarettes as part of their journey to cessation. As the first combustible cigarette authorized by the Food and Drug Administration (FDA) as a Modified Risk Tobacco Product (MRTP), VLN Cigarettes launched as part of a pilot program in 159 Circle K stores in the Chicago area. The supplier’s goal is to finalize the pilot this summer and then coordinate the next steps to launch the brand nationally. “The learnings from the program will enhance the next phase of the launch to help adult smokers across the United States smoke less,” Miller said. Before even stocking the shelves for the pilot program, VLN reached out to the medical community in Chicago for what would lead to a unique tobacco marketing opportunity. This April, when the pilot was nearly ready to launch, VLN’s Vice President of Regulatory Sciences John Pritchard met with representatives of the Chicago Medical Society, including the organization’s president Dr. Tariq Butt. In advance of this meeting, Pritchard provided the organization with the company’s rigorous clinical studies, so the conversation could focus on answering their questions from a scientific standpoint, Miller relayed. After this meeting, Butt stated in the Chicago Tribune: “We can’t ignore new products that could help people smoke less. If the FDA says this reduced-nicotine cigarette will help people smoke less, then as doctors, it’s something we need to consider for patients.” VLN’s conversations with the Chicago Medical Society have continued. “We are optimistic about communicating to their nearly 7,000 members about how our product helps adult smokers who have been unable or unwilling to quit smoking,” said Miller. “As Dr. Butt told us, and which research supports,

62 Convenience Store News C S N E W S . c o m

60-64.cmTobacco_CSN0722.indd 62

7/7/22 12:08 PM

FullPgAdTemplate.indd 1

7/5/22 2:06 PM

TOBACCO

many patients have not had success with cessation products like gum, lozenges or patches. Our leading claim is simply ‘helps you smoke less,’ which the FDA demanded we use. We are the first tobacco product whose slogan was created by the FDA.”

“A robust digital offer network allows the introduction of emerging options, and a chance to educate consumers as their preferences change.”

Smaller Players, Big Vision The convenience store industry’s singlestore owners and small operators are not being left out of the new tobacco marketing equation, according to PDI. The company’s PDI CStore Essentials, which is aimed at smaller operators, is one of its fastest-growing solutions. “Retailers of all sizes are investing in digital — from mobile platforms to loyalty solutions and more — so they can fully participate in AR marketing programs to realize their complete value,” said Alvin Prasia, director of consumer engagement at PDI. The company’s tobacco loyalty solution for smaller operators upgrades their benefits to resemble those of larger retailers, such as: connecting with pointof-sale systems though a loyalty host to

— Ryan Griffin, Professional Datasolutions Inc. manage all transactions; data and reporting compliance directly with tobacco manufacturers; connecting customers’ purchase data and unique loyalty ID; enabling tobacco rebates from manufacturers through automated scan data reporting; allowing consumers to receive tobacco discounts using their phone number or alternate loyalty ID; and automatically passing on savings to consumers. According to Miller, the ultimate goal is to get away from Big Tobacco “monopolizing space and margin for retailers of all sizes and be able to focus more on alternatives that consumers want.” The new imperative, he said, is to “help convenience retailers pioneer this emerging category through trade incentives, world-class marketing programs and effective adult consumer communication, so adult smokers and tobacco retailers can reach their unique goals.” CSN

Solving Big Problems, Inspiring Bold Ideas EnsembleIQ is a premier business intelligence resource that believes in Solving Big Problems and Inspiring Bold Ideas. Our brands work in harmony to inform, connect, and provide predictive analysis for retailers, consumer goods manufacturers, technology vendors, marketing agencies and service providers.

Magazines

Events

Digital Media Solutions

Research

Custom Content

64 Convenience Store News C S N E W S . c o m EIQ Group HP ad.indd 1

60-64.cmTobacco_CSN0722.indd 64

6/26/20 10:52 AM

7/5/22 4:27 PM

FullPgAdTemplate.indd 1

7/5/22 2:07 PM

CANDY & SNACKS

Ingenuity on Display The 2022 Sweets & Snacks Expo showcased the resiliency and inventiveness of the industry as it emerges from a tumultuous period By Angela Hanson AS THE 2022 SWEETS & SNACKS EXPO celebrated its silver anniversary in May, the many innovative new offerings and category trends seen on the show floor came together to send a single message: the next 25 years may be even better.

Weathering the COVID-19 pandemic, supply chain difficulties and other challenges, the candy and snacks industry has proven it is resilient, evolving, and an evergreen source of enjoyment and indulgence for consumers. Nearly 700 exhibitors and roughly 16,000 attendees filled 4.5 acres of candy and snack innovation at the annual event, which is hosted by the National Confectioners Association (NCA) and was held May 23-26 at Chicago's McCormick Place. A wide range of products were on display from chocolate to nonchocolate, gum, mints, and sweet and savory snacks. "There's no better way to celebrate this milestone anniversary for the Sweets & Snacks Expo than in Chicago with the full industry on display," said John Downs, president and CEO of the National Confectioners Association. "Throughout its history, the show has served as a launch pad for new products and companies, and brought new ideas to the forefront of the candy and snack industries. I am proud of the work we have done to make the Sweets & Snacks Expo the premier trade show for the

“Snacking is a lifestyle in the United States. This is not something that’s going away anytime soon.” — Sally Lyons Wyatt, IRI candy and snack industries, and I can't wait to see what the next 25 years of innovation looks like from these dynamic and resilient categories." Even during this period of inflation and rising fuel prices, which has prompted consumers to tighten their spending, candy and snacks are in a relatively strong position as many shoppers view them as affordable indulgences. Because of this, there was no lack of creativity seen from the supplier companies exhibiting on the expo floor. What should convenience store retailers consider stocking in their stores in the near future? Some of the top trends on display at the 2022 Sweets & Snacks Expo included: Extreme Flavors Mega-spicy is a hot trend, with everything from potato chips to meat snacks to ready-to-eat popcorn adding a heavy dose of heat. Takis, which made a name for itself in the spicy snack market with its rolled tortilla chips, has extended the brand to other product types. Meanwhile, Pringles teamed up with hot sauce-themed talk show "Hot Ones" for a new line of Scorchin' chips. Plenty of other brands are also kicking up the

66 Convenience Store News C S N E W S . c o m

66-69.cmSnacks_CSN0722_v2.indd 66

7/5/22 2:39 PM

FullPgAdTemplate.indd 1

7/5/22 2:07 PM

CANDY & SNACKS

This year's Sweets & Snacks Expo featured 4.5 acres of candy and snack innovation.

temperature. Intensely sweet or sour flavors were widely seen, too. S'more S'mores Consumers won't have to make their own s'mores this summer as s'moresthemed treats are gaining popularity. While demand is sure to be high during the summer due to the strong association with the season, the NCA expects a variety of s'mores items to remain popular throughout the year. Clean Ingredients Candy and snack consumers haven't turned their backs on indulgence, but there is a solid and growing base of shoppers who appreciate and actively look for better-for-you products and items made with clean ingredients. The expo floor showcased cleaner versions of established treats, such as Red Vines Made Simple, which are non-GMO and use cane sugar, and packaged meat snacks made with grass-fed beef. Additionally, research from IRI indicates that while plant-based snacks do not yet appeal to the masses, they are gaining penetration and increasing sales. "Newstalgia" Consumers want more of their favorite classic treats, but they also want more than the same old, same old. Thus, suppliers are offering them fresh and innovative twists on items they already know and love, combining the comfort of familiarity with the excitement of something new.

Package Variety Because everyone enjoys their treats differently, and consumers have changed up their snack patterns over the past few years, candy and snack suppliers are offering a wider range of package sizes. Smaller options cater to those who just want a quick, small treat, while larger units and multipacks cater to those who want to stock up or share.

THE STATE OF CANDY IN 2022 The candy category had a solid first half of 2022 and has plenty of opportunities to finish the year strong despite ongoing challenges. Currently, rising inflation means that dollar sales are outperforming unit volume, experts shared during the Sweets & Snacks Expo. Experimentation is key for fueling candy sales — not just old favorites, but new items that catch the shopper's eye, AnneMarie Roerink, president of 210 Analytics, said during her "State of Treating" presentation at the event. Forty-three percent of consumers report "trying something new" as a reason for buying a different brand, package size or product type. This should encourage further innovation from suppliers and the addition of new items by retailers to their store shelves. While the four major candy holidays — Valentine's Day, Easter, Halloween and Christmas — remain strong drivers of candy sales, there are many other occasions that can be profitable if retailers properly capitalize on them. This includes events like summer road trips, backyard barbecues, graduation days, and the Super Bowl. "We have big opportunities," Roerink said. She even encourages retailers to try promoting self-invented holidays, such as S'mores Sundays, with appropriate product displays. Roerink also shared a list of key pieces of advice that can present store operators with "a world of opportunities": • In an omnichannel world, impress consumers inside the store. • Capitalize on continued growth in e-commerce.

68 Convenience Store News C S N E W S . c o m

66-69.cmSnacks_CSN0722_v2.indd 68

7/5/22 2:39 PM

• Underscore candy's role in a happy, balanced lifestyle. • Celebrate all the seasons and create your own. • Narrow the gap between inspiration and purchase. • Have fun with social media — you could be the next viral trend. • Be transparent in all areas of sustainability. • Proactively address economic pressure. To decipher between longer-term trends and fleeting fads that will not persist, IRI's Dan Sadler, principal of client insights, noted that families with children have continued to be important to candy sales throughout the pandemic, but that not all families are created equal. Purchase behavior can vary significantly based on economic segmentation. Therefore, it is important to understand the attitudes of target segments and how they shop to maximize the return on investment of promotional spend, according to Sadler. For example, "savvy shoppers" have a strong economic position and outlook, but strongly care about value, while "optimistics" are in a stable financial position and consider both price and premium quality to be relevant to them. Convenience stores are experiencing strong quarter-over-quarter growth in candy sales, with chains outpacing independents, according to Sadler. Increased consumer mobility and the lifting of COVID-related restrictions have contributed to this, but a transition to larger package sizes is also playing a key role in fueling c-store sales. The better-for-you candy segment is worth keeping an eye on, too, as consumers continue to purchase items that support their dietary lifestyles, such as vegan, non-GMO and natural sweeteners. Zero sugar/no sugar added is also an area of strong growth, with year-over-year dollar sales up 132 percent as of February 2022. "It's here to stay," Sadler said.

THE STATE OF SNACKS IN 2022 Snacking remains a multiple-times-perday habit for consumers everywhere. “Snacking is a lifestyle in the United States. This is not something that’s going away anytime soon,” Sally Lyons Wyatt, executive vice president and practice leader at IRI,

said during her “State of Snacking” presentation at this year’s Sweets & Snacks Expo. As of spring 2022, multipack offerings have been a notable growth driver in the category, while meat snacks stand out as a particular snack type that had "phenomenal growth across the board" in 2021, Wyatt noted. A high number of new snacking brands have also arrived and are bringing excitement to the category. A top hazard to snack success is keeping items in stock despite supply chain challenges. As Wyatt noted, “if we don’t have products on the shelf, the consumer can’t buy them.” Inflation or a potential recession could also harm sales, although certain snack products are less sensitive to price, such as potato chips, tortilla chips, and dried meat snacks. Convenience stores are well positioned to continue growing snack sales based on their success in maximizing daypart sales and capitalizing on consumer preferences for snack types — 51 percent of Americans are looking for snacks that can be eaten on the go. Wyatt pointed to three major influences on snack purchases: 74 percent of U.S. consumers are influenced by previous usage and trust of brands; 74 percent are influenced by item price; and 53 percent of consumers are influenced by product label/packaging. At the same time, operators should consider the value of social influencers and social/digital communications. “Tik Tok has become a home for influencers,” she cited. Sustainability, local credentials and evolved holistic health factors can also be influential — in other words, consumers are looking for more than one benefit in their snacks. Discussing the future of snacks, PepsiCo Inc.’s Mike Gervasio, vice president of category leadership, noted that the company has shifted its approach from a category-based view to a consumerbased view. Rather than focus narrowly on traditional snacks like popcorn, pretzels and potato chips, he said retailers and suppliers should recognize that snacking occasions have expanded significantly. Depending on the format, almost anything can be a snack now, even pizza leftover from the night before. “Consumption has changed dramatically, so we’re here to change with it,” Gervasio said. To keep up with these evolving consumption trends, companies should consider: • Need states: What needs must be met during this snacking occasion? • Location: Where does this occasion take place? • Who they’re with: Is the snacker alone or with other people? • Purchase location: Where is the item being purchased? • Meal type: Would this be considered a snack, a small meal, etc.? • Accompaniment: What role does the product play in the meal? By considering these factors, companies can determine how a product is likely to fulfill a particular consumer need: uplift, indulgence, satisfaction, energy or nourishment. “Each category is DNA within the need state,” Gervasio said. CSN J ULY

66-69.cmSnacks_CSN0722_v2.indd 69

20 22

Convenience Store News 6 9

7/5/22 2:39 PM

TECHNOLOGY

Grabango allows shoppers to skip the checkout line entirely.

The Payment Evolution C-store retailers adapt to the ways consumers want to pay online, in-store and at the pump By Tammy Mastroberte

consumers use to pay for goods and services were previously a matter of credit, debit or cash, but in today’s world of mobile phones, online banking and even cryptocurrency, payment options have become so much more.

THE METHODS

While innovation in payment has been occurring for years, it picked up speed in the last two years since the onset of the COVID-19 pandemic, especially contactless options. “Some of the newest payment options available in convenience and fuel retail today have been heavily influenced by consumer demand based on the events of the past two years,” Gabe Olives, chief information officer at Impact 21, a retail consult-

ing firm based in Lexington, Ky., told Convenience Store News. “During the pandemic, retailers turned their attention to serving customers in touchless, sanitary and time-saving ways.” In February 2022, the U.S. Payments Forum and the Secure Technology Alliance had a meeting and discussed the transition to contactless since the pandemic, noting how there’s been a “significant pickup,” according to Executive Director Jason Bohrer. “Some of the stats show a 160-percent increase year over year in contactless, and Visa said 20 percent of all transactions are now contactless, with some percentages higher in larger metropolitan areas like New York and San Francisco,” Bohrer cited. Other innovative payment options have also begun making their way into the convenience store market — both in-store and at the pump — including mobile payment, self-checkout with artificial intelligence (AI), electronic benefits transfer (EBT), PayPal, Venmo and other peer-to-peer transactions, and cryptocurrency. The option of Buy Now, Pay Later is making some headway as

70 Convenience Store News C S N E W S . c o m

70-75.Technology_CSN0722.indd 70

7/7/22 10:37 AM

well, first introduced by Chevron where the company allowed consumers to pay for purchases in four installments over six weeks through Zip or Klarna. “The big post-COVID surprise was Chevron’s Buy Now, Pay Later at the pump, but this is something available elsewhere that is coming to the c-store industry,” said Kevin Struthers, associate director of digital at W. Capra Consulting, a retail technology consulting company based in Chicago. “There is nothing being introduced in the c-store industry that is not available elsewhere, so it’s about what your consumer base is wanting to use.” Adoption of Buy Now, Pay Later is currently infiltrating the United Kingdom and Europe, according to Elliott Winskill, head of solutions at PMC Retail, based in the United Kingdom. This option is popular with millennials because “while many are earning good salaries, capital is not always available every time they need it,” he said. When it comes to implementing payment options in the c-store space, there are really two pieces of the puzzle that operators must look at and understand. The first is understanding what their actual customers want, and the second is finding and working with a payment processor that can provide what is needed.

“Data is the key driver in the end for understanding what your customer wants, what they are doing, and how they are making purchases because it moves past your own bias or point of view,” noted Struthers. “Use the data that comes into your store and augment it with third-party data.” And because the payment space is evolving so quickly, a solid relationship with a payment provider is important to keep up with the changes, advised Bohrer, noting “they should be able to sift through the offerings and create a user experience that is compelling for customers.”

AI & Computer Vision Thanks to Amazon and its Amazon Go stores, artificial intelligence and computer vision have entered the retail marketplace and become more accessible. Companies such as Standard AI and Grabango are being used by c-store retailers, including Circle K and BP America, respectively. Both solutions allow consumers to grab items off the shelves and pay with their mobile devices as they walk out of the store. “With Grabango, once you have downloaded the app, you just walk into the store, pick up the items you want and as you exit the store, you are charged through the app,” said Gregory Franks, senior vice president of mobility and convenience at BP America, based in Warrenville, Ill. The Grabango technology is easy to retrofit into existing stores, and is currently in 10 BP stores so far, according to Franks. “It’s a one-time app setup for consumers and then once they elect to use it, they just walk in, get their items and leave,” he said.

BP is testing Mashgin's artificial intelligence powered self-checkout system at select ampm stores.

J ULY

70-75.Technology_CSN0722.indd 71

20 22

Convenience Store News 7 1

7/5/22 2:26 PM

ADVERTORIAL

CPI solutions enhance your customer experience, reduce labor costs, and increase throughput.

Done Right, Self-Checkout Yields

BIG BENEFITS It’s no secret that consumers crave self-checkout; in fact, 87% of consumers queried by Bloomberg said they prefer shopping in stores with robust self-checkout options. But introducing self-checkout does more for c-stores than delivering on customer demand. It also benefits the business—in more ways than one. CSN recently sat down with Bassam Estaitieh, business development strategic marketing director, retail at CPI, to discuss these benefits and how to maximize them. CSN: CPI recently added end-user companies, including c-store operators, to its customer base while continuing to work with OEMs. Why? BE: We’ve found that we can provide additional value to customers by leveraging our history and expertise in cash management to advise on improving cash management practices in stores in general. Focusing on OEMs as well as retailers helps them optimize their cash

management practices, because we also have other equipment in our portfolio— like back-office cash counters and safes, so we have many ideas on how to make the whole process seamless. Regardless, we ensure that the system we sell to each operator suits its needs and is not a ‘one-size-fits-all’ configuration. We can streamline implementation and provide c-stores—and all retailers—with a complete range of support and services. CPI develops integrated technologies that keep customers moving. Our full portfolio includes everything from self-checkout, custom kiosks, and attended lane automation to smart safes, cash processing and fourth wall revenue solutions. With 30 million devices in operation, processing 40 million cash payments and powering 4 billion transactions each week, we have everything customers need for productivity and peace of mind. Whether you’re a local independent or a large multinational,

CSN: How does self-checkout technology benefit c-stores’ business? BE: Automation—including self-checkout—is the future of solving business problems and reaping business benefits. Let’s start with labor and relieving pressure tied to the labor shortage. With self-checkout stations, you still need cashiers, especially to accommodate customers who are unwilling or unable to use self-checkout machines. However, you don’t need as many of them—instead of assigning a cashier to each register, you may only need one employee to monitor several self-checkout stations. But the story goes beyond this. Self-checkout frees up employees to spend time helping customers, contributing to a better customer experience and bottom line. Instead of assigning many of their associates to a cashier station, c-stores can ‘repurpose’ to help build relationships with customers and assist them in using self-checkout stations. According to a study by Mindtree, shoppers who interact with a sales associate are 43% more likely to purchase a product, and their transactions have 81% more value, compared to those who don’t interact with an associate. Regular customers are the core of business, and it’s important to maintain relationships with them. Removing physical barriers between staff and customers—allowing employees to step into floor space to speak with shoppers— can help with this. And of course, freed-up associates can also handle other important tasks, like stocking products and cleaning.

CSN_CPI QA_Rev.indd 1

2022-07-06 9:59 AM

FullPgAdTemplate.indd 1

7/6/22 11:39 AM

ADVERTORIAL

Then, there’s optimizing the shopper experience. The better that experience, the more satisfied customers are and the greater the potential to prevent lost sales and cultivate shopper loyalty. Figures from Fidelity Payment Services indicate that 81% of consumers avoid stores where they think lines are too long, and a study by Intel and Box Technologies shows that 41% of customers will abandon a purchase because of long checkout lines. Self-checkout creates the opposite effect. Self-checkout can also save c-store operators a lot of money and increase business efficiencies. Take cash-handling. IHL Consulting says two-thirds of the cost of handling cash is the labor involved in manual cash drawer processing—opening and closing the cash drawer, counting and providing change, and reconciling the cash drawer at shift’s end. IHL also found that the average cost of cash in the c-store segment is 8.3%—versus the approximately 2% of each purchase retailers pay in credit card processing fees. And physically making deposits can be time-consuming as well as expensive. While implementing self-checkouts means an up-front investment, the savings on cash handling and the increase in margins quickly yield a quantifiable benefit. CSN: How can c-store operators maximize the potential of selfcheckout to overcome their business challenges? BE: Insist on self-checkout technology that accepts cash payments along with electronic ones. If you only accept credit and debit card payments, you’re sacrificing sales. Consider the numbers: According to the Federal Reserve, 47% of transactions under $25 are paid in cash. A study by Cardtronics found that 63% of convenience store purchases are made in cash. Self-checkout payments with loyalty card apps should also be an option. Think about this, too. To reap a real ROI from self-checkout, you need to

C-STORE OPERATORS SHOULD CHOOSE A TECHNOLOGY PROVIDER THAT ALSO SERVES AS A TRUSTED PARTNER

automate cash. The labor savings from cash management increases ROI much more significantly than is the case with card-based transactions. With cashless-only self-checkout, c-stores can’t fully eliminate a cashier, as cash would need to be taken in the staffed POS lane, increasing lines. Additionally, some c-store operators have been moving away from accepting cash because they assume cash transactions add to their costs and their financial challenges, when in fact inflation has significantly increased the cost associated with credit card transactions. Remember, card processing fees are a percentage of the transaction, and as transaction totals are higher because merchandise now costs more, processing fees are higher as well. Conversely, the cost of managing cash is the same no matter what—it’s becoming cheaper to handle as inflation boosts prices.

Just as important, building relationships with customers and carrying a wide assortment of products can be a challenge for c-stores. Opting not to accept cash in self-checkout lanes is unfair to customers who prefer to pay in cash, as well as to unbanked and underbanked shoppers who have no choice but to do so—and it can be a turnoff for them. Plus, taking cash at the self-checkout allows customers to get cash back, possibly eliminating the need for an in-store ATM and freeing up floor space for additional merchandise. C-store operators should also choose a technology provider that also serves as a trusted partner. As I’ve already mentioned, we work one-on-one with c-store operators to create a self-checkout configuration that will accommodate their current and future needs, as well as to plan a streamlined implementation that will work for them. We’ve developed a suite of preventive maintenance and other services to meet individual c-store operators’ specific requirements and can recommend the right plan for each of our customers depending on what those requirements are. Our in-house service and support team comprises more than 500 service personnel, which gives our c-store operator partners easy, quick access to help from a CPI technician. Our technicians will also visit stores on request just to ensure that retailers’ CPI equipment is in good working order. Additionally, we’re committed to resolving service and support issues within 24 hours. It’s part of our preventive maintenance agreements. As it’s easy to see, self-checkout offers many benefits to c-store operators—and mitigates multiple business challenges— when done right. We can help. TO LEARN MORE ABOUT CPI, http://learn.cranepi.com/cstore

CSN_CPI QA_Rev.indd 2

2022-07-06 9:59 AM

FullPgAdTemplate.indd 1

7/6/22 11:39 AM

TECHNOLOGY

While BP already has traditional self-checkout in some of its locations, including its acquired Thorntons stores, the company is also testing AI-powered self-checkout with devices by Mashgin at four locations. Mashgin uses computer vision rather than scanning barcodes and allows customers to pay for their items in the traditional way. “You walk up to the self-checkout and there is an area where you can sit products down. Then, about two feet above the checkout is a camera that takes an image of the products to recognize what they are within a split second — even food items, which can be challenging with traditional self-checkouts,” Franks explained. “It brings it up on the screen and then consumers can pay. It can be done in less than 10 seconds.” While Amazon uses both computer vision and sensor fusion, using computer vision only is much more cost effective, according to W. Capra Consulting’s Struthers. Computer vision is rapidly advancing and will likely remain in play at stores in the future, he predicts. “The density or amount of cameras needed is going down as these technology companies get their algorithms better, and the adoption of this is moving faster than other technologies in the past,” said Struthers, comparing the adoption of this technology to scanning, which was patented in the 1950s, but not really used until the 1970s. “In the past, you would need a camera every eight square feet and now it’s every 20,” he added. Amazon has gone even a step further with its Amazon One technology, whereby consumers can scan their palm as they walk through a turnstile on their way into a store and no longer have to get their phone out to pay. “Facial recognition, holographic barcodes and ‘just walk out’ methods like Amazon One are all on the horizon,” said Olives. “Trends in consumer privacy and emerging data protection legislation will help determine which of these become mainstream.”

EBT, Crypto & Peer to Peer 7-Eleven Hawaii became the first c-store retailer to launch online EBT food stamp payments in January 2022. Wesco

“Facial recognition, holographic barcodes and ‘just walk out’ methods like Amazon One are all on the horizon. Trends in consumer privacy and emerging data protection legislation will help determine which of these become mainstream.” — Gabe Olives, Impact 21

announced the addition of EBT to its online order platform through Vroom Delivery in March 2022. Instacart also added EBT processing as part of its platform in early 2022, along with Target and a number of grocery stores. “With the increased traffic in c-stores spurred by shifting consumer patterns, the acceptance of EBT should be seriously considered,” said Olives. “This can be accomplished via standalone terminals or through integrations to your card processor. EBT functionality has been added by most payment processors, and the integration requires pointof-sale, payment server and back-office support to ensure compliance with program requirements, which can vary by jurisdiction.” Another payment option already popular online and now making its way into the c-store space both online and in-store is peer-to-peer transactions available through companies like Paypal, Venmo, WePay, WhatsApp, Revolut and Zelle. These options are often more convenient for people

74 Convenience Store News C S N E W S . c o m

70-75.Technology_CSN0722.indd 74

7/7/22 10:37 AM

“For us, it’s about really driving to innovate for consumers and understanding that they want faster and more frictionless experiences.” — Gregory Franks, BP America

than pulling out a credit card, and since the cornerstone of the c-store industry is convenience, these payment methods are something to watch, said Struthers. “Peer to peer payments have grown in popularity over the past five years. The initial adoption by millennials has spread to Gen X and baby boomers,” noted Olives. “Retailers would be wise to create linkages to the plans with the highest volumes as a core group of options, and then add others selectively and as customers express interest.” In August 2021, Giant Eagle’s GetGo Café and Market c-stores began accepting both Paypal and Venmo as payment options at its more than 400 locations, and even offered customers $10 cash back for using the options when first launched. Additionally, BP added Paypal as an option within its BP Rewards program for payment through the app for fuel, and will be looking to add more such options in the future, according to Franks. “For us, it’s about really driving to innovate for consumers and understanding that they want faster and more frictionless experiences,” he said. Yet another form of payment in retail and c-stores is cryptocurrency, although on a very limited basis at this point. Some experts believe crypto will eventually become mainstream, whereas others think there are a lot of aspects to be ironed out before this occurs. “I think it’s a very narrow segment, but

the users of cryptocurrency over-index as white males from age 20 to 44, so it goes back to realizing if this segment is important to your store,” Struthers explained. “The challenge for merchants now is this can shift quickly, so you have to be looking at it.” Sheetz Inc. became the first c-store chain to accept the digital currency bitcoin both in-store and at the pump in May 2021. Last July, Circle K also announced an exclusive, international partnership with Bitcoin Depot to install cryptocurrency ATM kiosks at its stores across the United States and Canada. Additionally, retail technology provider NCR acquired LibertyX to give its customers the ability to accept digital currency payments across digital and physical channels. BP is likewise testing this concept in its Thorntons stores with 200 digital cryptocurrency machines installed in February and March 2022. The chain is promoting it through marketing efforts to see if it’s something customers want from the retailer, said Franks. One challenge right now is that cryptocurrency is very volatile. This makes it harder for retailers to work with it and accept it as payment because they can take a payment at 9 a.m. and by 9:05 a.m., it could be worth nothing, according to Winskill. “I think it will stabilize and it will become a very valid tender across retail, but I think it has a few years,” he projected. When all is said and done, it remains to be seen which new payment methods stick — although many are viable depending on the customer base and market. This is where c-store retailers need to start when deciding which offerings to jump into at their locations. “Listening to customers is always a good place to start,” said Olives. “Gauging customer demand is more important over the long-term than making a decision to implement a new payment method based on economics alone.” He also urged retailers to keep an eye on adjacent areas of retail and other industries to gauge where they should be placing their attention and effort. Consumer expectations of the c-store space or any retail merchant are often based on their “favorite aspects of the shopping experience” at other retailers they shop frequently, he said. In addition, c-store retailers must analyze their site infrastructure to make sure it can handle fast changes so that they can easily plug and play with other vendors and options as they become available. Problems with Wi-Fi and connectivity will impact the rollout of these newer options, Winskill cautioned. “Those who are slightly further behind in upgrading their site networking need to start here because Wi-Fi, connectivity and mobility are needed for all digital payments,” he explained. “Make sure you invest in infrastructure to have the right technology and flexibility to embrace these new payment mechanisms.” CSN

J ULY

70-75.Technology_CSN0722.indd 75

20 22

Convenience Store News 7 5

7/6/22 3:00 PM

AN EYE ON D&I

Building Trust in Diversity, Equity & Inclusion Commitments Operational success can suffer if employees cannot trust their employer to fulfill the commitments they have made By Don Longo OVER THE PAST YEAR AND A HALF, many studies have noted workers’ concerns about their organizations’ diversity, equity and inclusion (DEI) commitments. Some believe their employers haven’t set their ambitions high enough; and, perhaps more troubling, others noted that their employers had made promises they weren’t keeping.

To understand the level of trust that workers have in their organizations’ DEI initiatives, Deloitte, a multinational advisory and consulting firm, surveyed more than 1,500 workers across U.S. regions, industry sectors, age groups, and functional roles. Conducted in August and September 2021, the survey targeted larger samples of diverse respondents to capture their perspectives on the evolution of these types of programs and the impact on their work lives and relationships with their employers. Findings from the survey were analyzed along with other similar DEI employee studies, as well as with the perspectives of subject matter specialists in human capital, culture and purpose-related disciplines. The results were recently published in a whitepaper entitled “Build Trust in Diversity, Equity and Inclusion Commitments.”

According to the report, trust begins with making and demonstrating effort. “When stakeholders, including workers, perceive an organization as lacking the ability to execute its DEI strategy, or the accountability to fulfill its commitments, their trust in the organization can dwindle. When promises are not kept, perceptions of organizational integrity can erode,” according to Deloitte. This can lead an organization to develop a reputation for performative activism or virtue signaling: the perception that the organization is involved in activism primarily for image enhancement without genuine commitment to back it up. Despite these pitfalls, however, Deloitte’s survey results indicate that some organizations are learning how to earn their workers’ trust and, by and large, workers do currently trust their organizations’ and leaders’ commitments to DEI and their ability to execute successful DEI programs. Significantly, these results are consistent across demographic groups. Trust can be a critical factor in the relationship between a worker’s performance and operational success. Prior research indicates that if employees cannot trust their employers to fulfill the commitments they have made, their levels of engagement could decrease, and they may become more likely to withhold their best efforts. Alternatively, if employees trust their employer’s commitments, their engagement level can increase up to 20 percent, and the likelihood they will leave their organization decreases by 87 percent. Additionally, amid

76 Convenience Store News C S N E W S . c o m

76-77.D&I_CSN0722.indd 76

7/5/22 2:30 PM

DEI SURVEY FINDINGS

If I can’t trust my organization to fulfill its DEI commitments...

40% of total respondents

56% of total respondents would

would consider leaving

not feel comfortable recommending it as a place to work to their friends or family

84% of respondents say

80% of respondents

are confident their

that their leaders who

believe their leaders

organization will

make public statements

are sincere in their

achieve its targeted

on DEI back their

commitment to achieve

DEI outcomes

words with action

targeted outcomes

80% of respondents

Respondents who agreed or strongly agreed included: Ethnically or racially diverse 80%

Respondents who agreed or strongly agreed included:

84%

78%

86%

81%

LGBTQIA+ 79%

45% of respondents aged 18-44

45% of ethnically or racially diverse

54% of respondents in upper

respondents

management roles

62% of respondents in upper

57% of LGBTQIA+ respondents

management roles 63% of LGBTQIA+ respondents

Agender, female, gender-nonconforming, and nonbinary 76%

80%

77%

the “Great Resignation,” there has been a notable shift in workers’ feelings about the role of work in their lives and increasing expectations that employers share and reflect their workers’ values, including commitments to DEI. “What we’ve found in our research is encouraging. Workers, including those who as part of our survey demographic questions self-identified as members of diverse populations, currently trust their employers’ DEI efforts. But our research also shows that it would be a mistake to take this trust for granted, and that organizations may already be at risk of drifting off course from the commitments they made,” stated Deloitte. Failing to meet DEI commitments can damage worker trust. Developing strategies to stay true to the commitments they made can help organizations create long-lasting, successful DEI programs, contributing to trust within their workforce. Deloitte’s paper explains its definitions for trust, diversity, equity and inclusion as: • Trust is the foundation of a meaningful relationship

between an organization and its stakeholders, at both the individual and organizational levels. • Diversity is the characteristics with which we are born and gain through experience, both seen and unseen, that make us different and similar. • Equity is the outcome of diversity, inclusion and anti-oppression actions, wherein all people have fair access, opportunity, resources and power to thrive, with consideration for and elimination of historical and systemic barriers and privileges that cause oppression. • Inclusion is the actions taken to understand, embrace and leverage the unique strengths and facets of identity for all individuals so that all feel welcomed, valued and supported. The report goes on to outline the consequences of not following through on DEI commitments, and offers ideas from study respondents on how an organization can build trusted DEI programs over time and who within the organization should be accountable for different elements of a successful program. The full report can be viewed at deloitte.com/us/en.html. The firm concludes by reminding readers that DEI is a journey without a finish line. CSN

Convenience Store News has launched a new industrywide initiative to facilitate engagement among all stakeholders in the convenience channel around diversity and inclusion, with underwriting support from Altria Group Distribution Co., The Coca-Cola Co., The Hershey Co. and WorkJam. The mission is to show retailers the business case for diversity and inclusion through education and the sharing of best practices. CSNews appreciates the support of our 2022 Diversity & Inclusion Advisory Board: • • • • • •

Carlton Austin, The Coca-Cola Co. Treasa Bowers, 7-Eleven Inc. Rahim Budhwani, Encore Franchises LLC Emil Cantrell, Imperial Trading Co. Derek Gaskins, Yesway Inc. Elisa Goria, Alimentation Couche-Tard Inc./Circle K

• • • • • •

Danielle Holloway, Altria Group Distribution Co. Steven Kramer, WorkJam Lonnie McQuirter, 36 Lyn Refuel Station Alicia Petross, The Hershey Co. Tonya Robinson, Thorntons LLC Heather Schott, Kum & Go LC

J ULY

76-77.D&I_CSN0722.indd 77

20 22

Convenience Store News 77

7/7/22 9:13 AM

STORE SPOTLIGHT

Showing Off New Tricks Sporting a canine logo, Curby’s Express Market aims to be a new breed of convenience By Renée M. Covino YOU DON’T have

At a Glance Curby’s Express Market Opened: February 2022 Location: Lubbock, Texas Size: 4,000 square feet Unique features: A progressive market-style shopping experience; double-lane covered drive-thru with everything in the store available at the window; proprietary madeto-order energy drinks called Zoomies; a 20-foot self-serve tea bar; sandwich melts made on toasted brioche bread

to be a dog lover to recognize the friendly appeal of a happy canine with his head hanging out the window of a moving car. This is the logo of Curby’s Express Market, which opened its first store in Lubbock, Texas, in February. “We consider it the next generation of c-store retailing,” Tony Sparks, head of Customer Wow for Curby’s, said of the “progressive” concept that had been in the works by its Dallas-based commercial developer parent company for three years. And yes, Sparks recognizes that his job title “tells you right there, this is different.” What most convenience store chains have in common, he said, is a half quick-service restaurant, half traditional consumer packaged goods approach. But this is not what Curby’s Express Market is modeled after. “We wanted to go back to a smallformat grocery idea, like how Wawa

started — and with no fuel,” Sparks explained. “We’re also going for more of a progressive, innovative customer experience.” He highlighted four elements that are “super important” to the Curby’s concept: A modern-market shopping experience; 2. A protected drive-thru emphasizing speed of service; 3. A fresh, made-to-order primary menu of melts and flatbreads; and 4. Made-to-order beverages, including energy drinks and a tea bar. 1.

This core quad captures the changing nature of consumers today and speaks to what they are now demanding from convenience retail, according to Sparks.

Something Different Curby’s Express Market is homing in on a different experience for customers than they would get from a traditional convenience store. “We’re using that word

78 Convenience Store News C S N E W S . c o m

78-81.StoreSpotlight_CSN 0722.indd 78

7/5/22 2:22 PM

FIRST EVER. The 1 st ModiFIed Risk Tobacco Product

LEAD THE WAY. STOCK THE AUTHENTIC SWEDISH SNUS.

Or contact your Swedish Match representative. Learn more about modified risk at GENERALSNUS.COM

FullPgAdTemplate.indd 1

CALL 800-774-7754

7/5/22 2:08 PM

STORE SPOTLIGHT

‘market’ intentionally. We’re not tethered to the ugliness of fuel,” Sparks said. Design-wise, Curby’s doesn’t use linear gondolas. Instead, it uses four-sided shelving that Sparks refers to as “pods.” When customers enter the store, they see wine, produce, flowers and specialty bread in a unique freshness cube. “They already know something is different from that of a typical c-store,” he said. Every part of the business has some design element to it, he noted. For instance, the open-concept store features an angled roof, and the glass that divides the tea bar lights up in panels, a feature the retailer replicated from a movie theater. “We’re not ashamed of replication,” he told Convenience Store News. “We looked at tons of food and beverage concepts. We took inspiration from a lot of different retailers and brought it into this concept.” Curby’s double-lane, covered, temperature-modified drive-thru — where anything in the store can be purchased without ever leaving the car — is “a big piece of what this concept is about,” according to Sparks, who admitted the goal was to replicate the customer experience at a Chick-fil-A drive-thru. Like the popular fast-food chain, Curby’s drive-thru is staffed by order-takers who greet customers with a tablet and paper menus. Customers pull around the covered bay area and up to a window to receive their orders.

Curby’s offers everything in the store at its double-lane, covered, temperature-modified drive-thru.

Finding a Foodservice Niche Working with an industry food consultant, Curby’s landed on its niche in the foodservice space: sandwich melts for all dayparts. “What’s great about them is we’re limited only by the imagination for melt ideas,” Sparks said. Options include the Cinnamon Toast Sausage Egg & Cheese Melt, Grown Up Grilled Cheese Melt, Brisket Melt, Caprese Melt, and Buffalo Fried Chicken Melt. Made on toasted brioche bread, the melts are its flagship food line, but Curby’s also serves flatbread pizza “similar to Panera,” according to Sparks. Additionally, the company partners with Johnsonville to sell kolaches (flavored sausages wrapped in a bun).

Curby’s doesn’t offer “grab-and-go food.” Rather, the retailer features its menu items “very deli style,” where all the food is presented behind glass, and everything is made in front of the customers, Sparks explained. This approach helps foster a personal connection between customers and employees. On the beverage side, Curby’s considers itself a more modern Starbucks; a progressive coffeehouse “with a younger vibe that’s more fun and inviting,” he said. While there are coffee classics on the menu like Americano, cappuccino, Café Latte, espresso (served hot or iced) and freshbrewed coffee, more exotic creations boast names such as Old Yeller (espresso blended with caramel, vanilla, breve, and topped with whipped cream) and White Fang (espresso blended with white chocolate, Irish cream, breve, and topped with whipped cream).

80 Convenience Store News C S N E W S . c o m

78-81.StoreSpotlight_CSN 0722.indd 80

7/5/22 2:22 PM

Made-to-order food and beverages are a core component of the Curby’s experience.

Zoomies, which refers to those frenetic explosions of energy that dogs have on occasion, is the name of Curby’s colorfully vibrant line of made-to-order energy drinks. Customers can choose the Sparky, Curby’s Tail Chaser, Dog Days, and Pretty Paws Zoomies. Using stacked flavors/colors, as many as three in a beverage, makes for a “beautiful” presentation, Sparks said, pointing out that Zoomies provide the most stimulant per ounce of anything you can buy, and they are all natural and sugar-free. “They’re super on-trend, especially here in the Dallas area,” he said. Curby’s also offers a 20-foot self-serve tea bar, with 18 flavors of tea in sugar and sugar-free versions served from fountain heads. “It’s very high-quality loose-leaf tea that we’re brewing every minute of every day,” he said. “We thought it would do well, but it’s exceeding what we thought. We hired people to just brew tea; that’s how big it is.” Sparks guesstimates that 200 drive-thru transactions a day include its tea. Curby’s tea is sold in gallon jugs as well.

“We brew it and bottle it and sell it in our open-air case with the Curby’s name,” he added.

Multiplying Soon Curby’s will not be a lone dog for long. Two more stores are slated to open in Lubbock before the end of this year. “We will run these three for a time to prove the concept and figure out what we’re doing wrong — or not right enough,” Sparks relayed. Even though its first location has only been open since February, Curby’s has already taken note of some areas that can be tweaked. For instance, it was initially prepping and holding food, but has since stopped that because of quality issues. The retailer also wants to find a better, fully automatic espresso machine. And it plans to move the tea bar in future locations to the food side of the store, rather than the packaged goods side where it is now. “We wanted a balance [of consumables] on the left and right but in hindsight, it makes more sense to put it with the food,” Sparks said. Once the concept has been finetuned, the company plans to acquire/revamp locations simultaneously, and is aiming to have a total of 10 stores in its first 24-36 months. “The ambition is to make this the Shake Shack of convenience retailing. The expectation is for us to grow rapidly once we finish up proof of concept and work out the bugs,” said Sparks. CSN J ULY

78-81.StoreSpotlight_CSN 0722.indd 81

20 22

Convenience Store News 81

7/8/22 9:05 AM

HOT PRODUCTS SPECIAL ADVERTISING SECTION

ATM’s

82 Convenience Store News C S N E W S . c o m

CSN_Class_Jul_2022.indd 2

7/5/2022 7:29:09 PM

HOT PRODUCTS SPECIAL ADVERTISING SECTION

Cash Registers/Scanning Items

J U LY

CSN_Class_Jul_2022.indd 3

2022

Convenience Store News

7/5/2022 7:29:10 PM

HOT PRODUCTS SPECIAL ADVERTISING SECTION

Gourmet Pet Treats

84 Convenience Store News C S N E W S . c o m

CSN_Class_Jul_2022.indd 4

7/5/2022 7:29:10 PM

HOT PRODUCTS SPECIAL ADVERTISING SECTION

Mobile Coupon Services

POS/Equipment/Supplies

J U LY

CSN_Class_Jul_2022.indd 5

2022

Convenience Store News

7/5/2022 7:29:11 PM

HOT PRODUCTS SPECIAL ADVERTISING SECTION

Kiosk Pre- Paid Services

Age Verifier

Promotional Services

LOOKING FOR SOMETHING?

STOP GOING FROM WEBSITE TO WEBSITE

HATS, BANDANAS, RAINCOATS, WATCHES, TOYS, BAGS

UNIFROMS, SAFETY PRODUCTS, REWARD & VISA CARDS,

PENS, LIGHTHERS, CUPS, MAGNETS

YOUR SOURCE FOR ANYTHING AND EVERYTHING WITH YOUR LOGO ON IT OR NOT

REACH OUT FOR THAT CUSTOM QUOTE FOR YOUR BUSINESS , FRANCHISE OR STORE www.everythingpromotionalproducts.com

561-710-9743

1700 N Dixie Hwy Suite 104 Boca Raton, FL 33432 MENTION CONVENIENCE FOR YOUR SPECIAL DISCOUNT WE OFFER BULK DISCOUNTS & WELCOME BID REQUESTS

COUNTER CHECKOUT ITEMS, LOTTO SWAG

86 Convenience Store News C S N E W S . c o m

CSN_Class_Jul_2022.indd 6

7/5/2022 7:29:12 PM

CLASSIFIEDS

Credit Card Processing / Merchant Services

J U LY

CSN_Class_Jul_2022.indd 7

2022

Convenience Store News

7/5/2022 7:29:12 PM

CLASSIFIEDS

Services

88 Convenience Store News C S N E W S . c o m

CSN_Class_Jul_2022.indd 8

7/5/2022 7:29:14 PM

CLASSIFIEDS

Credit Card Processing / Merchant Services

J U LY

CSN_Class_Jul_2022.indd 9

2022

Convenience Store News

7/5/2022 7:29:14 PM

CLASSIFIEDS

Air Vacs

90 Convenience Store News C S N E W S . c o m

CSN_Class_Jul_2022.indd 10

7/5/2022 7:29:15 PM

CLASSIFIEDS

Credit Card Processing / Merchant Services

J U LY

CSN_Class_Jul_2022.indd 11

2022

Convenience Store News

7/5/2022 7:29:15 PM

CLASSIFIEDS

ATM’s

92 Convenience Store News C S N E W S . c o m

CSN_Class_Jul_2022.indd 12

7/5/2022 7:29:16 PM

CLASSIFIEDS

Plastics

Air Vacs

J U LY

CSN_Class_Jul_2022.indd 13

2022

Convenience Store News

7/5/2022 7:29:16 PM

CLASSIFIEDS

Equipment/Supplies

C-store Services

Spill Response Solutions

94 Convenience Store News C S N E W S . c o m

CSN_Class_Jul_2022.indd 14

7/5/2022 7:29:16 PM

CLASSIFIEDS

ATMs

Help Wanted

J U LY

CSN_Class_Jul_2022.indd 15

2022

Convenience Store News

7/5/2022 7:29:17 PM

CLASSIFIEDS

Age Verifier

ATM’s

Credit Card Processing

Petroleum/Equiment

96 Convenience Store News C S N E W S . c o m

CSN_Class_Jul_2022.indd 16

7/5/2022 7:29:17 PM

CLASSIFIEDS

Sunglasses

POS/ Equipment

ADINDEX Wholesale Refrigeration 22nd Century Group Inc...................61

ITG Brands...........................................47

Altria Group Distribution.................2

J&J Snack Foods Corp......................67

BelGioioso Cheese, Inc.....................43

Krispy Krunchy Chicken...................51

BIC USA Inc.........................................7

Liggett Vector Brands......................65

Brinks INC............................................37

MPACT Beverage...............................27

Calico Brands, Inc..............................16

Petrosoft LLC .....................................35

Chester’s International.....................45

Premier Manufacturing.....................21

Chevron Corporation........................13

Reynolds American Trade Marketing Services............................28–31

Crane Payment Innovations............72–73 Diebold Nixdorf Incorporated........40–41 E-Alternative Solutions....................15 Federal Industries Inc.......................20 Forte Products....................................18 Freezing Point LLC Frazil...............1 Furmano Foods..................................17 GlaxoSmithKline Consumer Health Care......................11, 63 Hunt Brothers Pizza LLC .................19

8550 W. Bryn Mawr Ave, Suite 200, Chicago, IL 60631 Phone 773-992-4450 Fax 773-992-4455 www.ensembleiq.com

Sugar Foods Corporation................57 Swedish Match North America LLC 9, 25, 79, 100 Swisher International, Inc................5, 58–59 TransAct Technologies Inc...............55 Tyson Foods........................................49 Uno Foods...........................................53 Universal Merchant Services...........Outsert

Invenco.................................................22–23

J U LY

CSN_Class_Jul_2022.indd 17

SEB Professional................................39

2022

Convenience Store News

7/5/2022 7:29:18 PM

INSIDE THE CONSUMER MIND

Charged Up More convenience store customers are considering the switch to an electric vehicle While only one in 10 convenience store customers currently owns an electric vehicle, more are considering making the switch, especially amid the record-high gas prices of late. The 2022 Convenience Store News Realities of the Aisle Study, which surveyed 1,500-plus consumers who shop a c-store at least once a month, showed an increase in the percentage of c-store shoppers who say they’re extremely/very likely to consider purchasing an electric vehicle within the next two to three years, as well an increase among those who say they’re somewhat likely.

10% of U.S. convenience store shoppers own a plug-in electric vehicle vs.

9% in 2021.

Likelihood to Consider Purchasing an Electric Vehicle in Next 2-3 Years Extremely/ very likely 16%

Somewhat likely 23%

Not at all/not very likely 61%

+4 points +3 points -8 points YOY

YOY

86% of these current owners indicate that they charge their electric vehicles at least some of the time when making convenience store visits.

70% Among c-shoppers who currently own an electric vehicle, 70% say it is extremely/very important to them that a convenience store has a charging station for plug-in electric vehicles.

98 Convenience Store News CSNEWS.com

98.InsidetheConsumer_CSN0722.indd 82

7/5/22 2:38 PM

SPONSORSHIPS ARE NOW AVAILABLE!

W MEN IN CONVENIENCE OCTOBER 2, 2022

LAS VEGAS

The 2022 Convenience Store News’ Top Women in Convenience awards program recognizes the integral role women play in convenience retailing. Women will be honored from the retailer, wholesaler and supplier communities in four different categories:

AWARD CATEGORIES* • • • •

Women of the Year Senior Level Leaders Rising Stars Mentors

BENEFITS OF BEING A SPONSOR •

Celebrate and network with leaders in the industry at this inspiring event

•

Meet with our attendees. Attendees will include the 2022 Top Women in Convenience winners, retail colleagues, manufacturers, distributors, key industry associations, industry luminaries and thought leaders and solution providers

•

Establish stronger retailer relationships

•

Create a positive impression of your brands among existing and prospective business partners

SPONSORSHIPS AVAILABLE!

PAULA LASHINSKY

RACHEL MCGAFFIGAN

RON LOWY

KELLY FISCHER

Vice President and Brand Director 917.446.4117 plashinsky@ensembleIQ.com Associate Brand Director/West Coast 330.840.9557 rlowy@ensembleIQ.com

TWIC2022_FullPg_0222_v1.indd FullPgAdTemplate.indd 1 1

Associate Brand Director/Northeast 774.212.6455 rmcgafﬁgan@ensembleIQ.com Associate Publisher/Midwest 847.894.8134 kﬁscher@ensembleIQ.com

3/3/22 7/5/22 11:46 2:08 PM AM

AVAILABLE IN 2 FOR 99¢ AND SAVE ON 2 POUCHES FOR MORE INFORMATION, CONTACT YOUR SWEDISH MATCH REPRESENTATIVE. 800-367-3677 • CUSTOMER.SERVICE@SMNA.COM

20SWM0077_GM-Straw-Colada_TradeAd_CSN_v2ol.indd 1 FullPgAdTemplate.indd 1

6/16/22 8:41 AM 7/5/22 2:09 PM

EBT/Snap Transaction Fee

© 2022 North American Bancard, LLC (NAB). All rights reserved. NAB is a registered ISO of BMO Harris Bank N.A., Chicago, IL, Citizens Bank N.A., Providence, RI, The Bancorp Bank, Philadelphia, PA, and First Fresno Bank, Fresno CA. American Express may require separate approval. *Durbin regulated Check Card percentage rate. A per transaction fee will also apply. **Some restrictions apply. This advertisement is sponsored by an ISO of North American Bancard. Apple Pay is a trademark of Apple