CSN - October 2023

WHAT’S NEXT IN CONVENIENCE AND FUEL RETAILING

INN VATI N ABOUNDS

FROM OPERATIONS TO CUSTOMER ENGAGEMENT, THE CONVENIENCE STORE INDUSTRY IS CONTINUOUSLY ADAPTING AND IMPROVING TO BETTER SERVE COMMUNITIES.

THE YEAR’S BEST NEW C-STORE PRODUCTS

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Be Our Guest

The drive to wow customers has c-stores innovating in all corners of the business

I AM A HUGE FAN of animated movies, and “Beauty & the Beast” is one of my favorites. In the film, there is a particularly catchy tune called “Be Our Guest.” While dishes and utensils come to life and dance, a candlestick and teapot sing: “Be our guest. Be our guest. Our command is your request. … And we’re obsessed with your meal, with your ease. Yes, indeed, we aim to please.”

Working on this month’s cover story with my fellow editors Melissa Kress and Danielle Romano, I couldn’t help but think of this song (and sing it in my head) as one convenience store retailer after another talked to us about the significance of being guest obsessed.

For bp, this means investing in talent and capabilities to deliver a best-in-class digital experience that gives its guests multiple avenues to transact with its stores digitally.

“A digital transformation will give us the opportunity to provide access points to our brand that are unique and individualized. It allows us to be even more guest obsessed,” Lisa Blalock, vice president of convenience, Americas for Houston-based bp, told us.

For Yesway, it entails leveraging data analytics and artificial intelligence to gain valuable insights into customer behavior, preferences and demand patterns. The Fort Worth, Texas-based convenience store retailer is then able to tailor its product assortments, pricing strategies and marketing efforts to match guest needs,

EDITORIAL EXCELLENCE AWARDS (2016-2023)

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

2023 American Society of Business Press Editors, National Azbee Awards

Silver, Data Journalism, January/April/June 2022

2023 American Society of Business Press Editors, Upper Midwest Regional Azbee Awards Gold, Data Journalism, January/April/June 2022

Bronze, Diversity, Equity and Inclusion, March 2022

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

leveraging data-driven decision making.

For Casey’s, guest service is top of mind. The Ankeny, Iowa-based convenience store chain recently launched its Easy for You initiative, designed to enhance operational efficiency and simplify the store experience for team members. By removing complexity from processes and reducing administrative tasks, team members are given back time that they can use instead to serve Casey’s guests and complete higherimpact work.

These are just a few examples of how c-store companies are adapting, improving and innovating while staying laser-focused on meeting the ever-evolving needs of their guests. There are many more examples like this, which made it difficult to choose which companies to spotlight in this issue of Convenience Store News — our annual “Innovation Issue.”

While they may not have dancing dishes or twirling utensils, c-store retailers across the country are finding new ways to deliver better guest experiences and, most impressive of all, they approach it as a never-ending process, constantly asking how they can further improve.

I’m eager to see what fresh innovations the future holds.

For comments, please contact Linda Lisanti, Editor-in-Chief, at llisanti@ensembleiq.com.

2022 Eddie Award, Folio: magazine

Winner, Business to Business, Retail, Single Article, March 2022

Winner, Business to Business, Food & Beverage, Series of Articles, October 2021

Honorable Mention, Business to Business, Retail, Single Article, September 2021

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

EDITORIAL ADVISORY BOARD

Laura Aufleger OnCue Express

Billy Colemire Stinker Stores

Robert Falciani ExtraMile Convenience Stores

Jim Hachtel Core-Mark

Chris Hartman Rutter’s

Faheem Jamal CPD Energy Corp./ Chestnut Markets

Ruth Ann Lilly GPM Investments LLC

Vito Maurici McLane Co. Inc.

Jonathan Polonsky Plaid Pantries Inc.

Greg Scriver Kwik Trip Inc.

Tony Sparks Curby’s Express Market

Roy Strasburger StrasGlobal

EV Charging Will Shape the Future of C-store Design

Electric vehicles will propel convenience store foodservice to greater heights

ELON MUSK has reportedly received approval to proceed with plans to build an all-night diner and drive-in movie theater in Hollywood. The 1950s-style drive-in will feature 32 stalls for all-night charging of electric vehicles (EVs), a restaurant with rooftop seating and two giant movie screens that will show clips from classic movies.

In covering the convenience store industry for the past 17 years, I’ve seen dozens of iterations of the “c-store of the future.” Like Musk’s latest dream, many of those futuristic prototypes featured electric vehicle charging stations to some degree. None showcased as many as the 32 that Musk envisions, but the brilliant entrepreneur has never been known for setting modest goals.

The predictions for EV sales are wildly divergent. One day, you’ll read a report that half of all new car sales by 2035 will be electric. The next day, you’ll read that Ford will lose $3 billion from EV sales to consumers this year. Recently, a former Ford executive told CNBC that EV demand is not keeping up with production.

Regardless of the varying predictions, I think the only thing that will slow EV sales in the near future is the availability of a charging infrastructure. Despite the federal and state government funding for new charging equipment, most experts see a deficit in the number of chargers needed to service the growing EV fleet. There certainly doesn’t appear to be enough charging locations to support the most optimistic predictions for 2035.

The current thinking is that you need at least two charging stations on a site. But is two even enough? Musk certainly doesn’t think so. He’s taking no chances that someone may pull into his facility and not be able to find an unused charger.

One thing that Musk’s new concept appears to understand is the important role foodservice will play as more sites add EV charging units. The whole definition of on-the-go convenience is likely to change as EV owners go inside for a bite to eat while their vehicles’ batteries are recharged. C-store foodservice will progress further from snack bar to fast food to fast casual sit-down restaurants.

I recognize that the obstacles to electrification of the motor vehicle fleet are huge and go beyond the number of charging locations. Who knows if car makers can find sufficient quantities of the minerals needed to make batteries or if the U.S. power grid can handle a massive influx of new electric vehicles. And, as the latest number of severe weather-related events show, the disastrous impact of one major hurricane would be amplified by an overreliance on electricity to power cars, trucks, homes and businesses.

Nevertheless, the momentum — fueled by government spending — appears to be moving the country inexorably toward EVs. The smart business decision is to be ready. Musk’s diner/drive-in/restaurant/charging facility might actually be a glimpse of the future convenience store.

For comments, please contact Don Longo, Editorial Director Emeritus, at dlongo@ensembleiq.com.

Musk’s diner/ drive-in/ restaurant/ charging facility might actually be a glimpse of the future convenience store.

FEATURES

COVER STORY

36 Innovation Abounds

From operations to customer engagement, the convenience store industry is continuously adapting and improving to better serve communities.

FEATURE

54 An All-Day Affair Products designed for snacking dominate this year’s Best New Products Awards winners.

FEATURE

78 Differentiating Through Private Label

A growing number of convenience stores are boosting their assortments of private brands to offer shoppers unique, high-value products.

DEPARTMENTS

E DITOR’S NOTE

4 Be Our Guest

The drive to wow customers has c-stores innovating in all corners of the business.

VIEWPOINT

6 EV Charging Will Shape the Future of C-store Design Electric vehicles will propel convenience store foodservice to greater heights.

12 CSNews Online

27 New Products SMALL OPERATOR

30 Setting Priorities

While customer-facing technology is important, small operators are also prioritizing the back office to create more efficiency at the store level.

TWIC TALK

106 Challenging the Status Quo Yesway earns the 2023 Top Women in Convenience Corporate Empowerment Award.

INSIDE THE CONSUMER MIND

129 Checking Out

C-store shoppers appreciate and embrace various frictionless offerings.

Display More. Sell More.

NEXT™ 2.0 trays display 20-30% more products.

Increase sales with a fuller, more attractive display

The NEXT™ 2.0 Tray Merchandising System allows retailers to increase merchandising space and improve product visibility. Each item remains faced and visible to the customer for easy product selection.

By incorporating the NEXT™ 2.0 System into a planogram, retailers can expand the selection of products beyond the limits of peg hooks and put more product in its place. This usually translates to an additional row of merchandise and up to 25-30% more facings in a given section.

Retailers can further reduce labor costs and simplify restocking with the NEXT™ 2.0 pull-out tray option. Customers benefit from a more organized and cohesive layout featuring enhanced product depth and merchandising which, in turn, increases sales.

NEXT™ 2.0 Trays

INDUSTRY ROUNDUP

84

Modern

continues

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SENIOR VICE PRESIDENT-GROUP PUBLISHERUS GROCERY & CONVENIENCE GROUP

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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 Danielle Romano dromano@ensembleiq.com

ASSOCIATE EDITOR Amanda Koprowski akoprowski@ensembleiq.com

EDITORIAL DIRECTOR EMERITUS Don Longo dlongo@ensembleiq.com

CONTRIBUTING EDITORS

Renée M. Covino, Tammy Mastroberte

ADVERTISING SALES & BUSINESS

ASSOCIATE BRAND DIRECTOR & NORTHEAST

SALES MANAGER Rachel McGaffigan - (774) 212-6455 rmcgaffigan@ensembleiq.com

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CLASSIFIED PRODUCTION MANAGER Mary Beth Medley (856) 809-0050 - marybeth@marybethmedley.com

DESIGN/PRODUCTION/MARKETING

90 Distinguished Deliciousness Kum & Go leads the 12th annual class of Foodservice Innovators Awards winners.

ART DIRECTOR Lauren DiMeo ldimeo@ensembleiq.com

PRODUCTION DIRECTOR Pat Wisser pwisser@ensembleiq.com

SENIOR MARKETING MANAGER Krista-Alana Travis ktravis@ensembleiq.com

SUBSCRIPTION SERVICES LIST RENTAL mbriganti@anteriad.com

SUBSCRIPTION QUESTIONS contact@csnews.com

CORPORATE OFFICERS

CHIEF EXECUTIVE OFFICER Jennifer Litterick

CHIEF FINANCIAL OFFICER Jane Volland

CHIEF PEOPLE OFFICER Ann Jadown

CHIEF STRATEGY OFFICER Joe Territo

CHIEF OPERATING OFFICER Derek Estey

TOP VIEWED STORIES

Golden Pantry to Open Georgia’s First Autonomous C-store

Golden Pantry Food Stores teamed up with Juxta to open a portable autonomous, micro retail store at Wire Park in Watkinsville. The integration of a Juxta Nomad store at the mixed-use development will cater to the diverse footfall ranging from local residents to daily visitors.

2

Chevron Refreshes Texaco Brand Image

Chevron U.S.A. Inc. is rolling out an initiative to refresh its Texaco-branded gas stations with a new, more modern look. This includes an evolved color scheme; 3-D canopy design; modern pole sign options; noticeable pump flags; and emphasis on the industry-leading Texaco with Techron fuels.

Mega Co-op Closes 13 Stores in Chapter 11 Bankruptcy Move

The Wisconsin-based cooperative will downsize to 18 stores in what it called an “important step toward preserving its future success.” All employees who work at a store marked for closure will be offered a position at a remaining Mega Co-op location.

Nouria Energy Adds Harry’s C-stores to Its Network

The acquisition of the assets of H.A. Mapes Inc. includes seven company-operated convenience stores under the proprietary Harry’s brand, commission dealer sites and leased wagon dealers, plus a network of open dealers and commercial accounts.

1 3 4 5

RaceTrac Moves Closer to Entering Ohio Market

Leaning into one of its core strengths — the willingness and desire to learn from one another — members of the convenience channel gathered at McLane Co. Inc.’s national trade show, McLane Engage, to get a taste of where the industry stands and where it is heading from a consumer perspective, operator perspective and product perspective.

At the event, McLane unveiled McLane Fresh, an expanded foodservice at retail program designed for c-stores. As demand for and sales of fresh and higherquality food items increase, c-stores are elevating their foodservice programs and in-store experiences to compete with fast-food and quick-service restaurants.

For more event coverage, visit the Awards & Events section of csnews.com.

MOST VIEWED NEW PRODUCT

Mtn Dew Baja Blast New Flavors

EXPERT VIEWPOINT

Turn Frequent Fuelers Into Loyal Shoppers

A recent Dover Fueling Solutions (DFS) survey found that nearly 70 percent of convenience store visitors are frequent fueling customers who return to the pump more than once a week. However, on average, only 30 to 40 percent of those fueling customers will enter the c-store, according to NACS. Fuel dispensers can serve as powerful digital advertising vehicles that attract and convert customers to buy new product categories, brands, fuels or service offerings, writes Dan Seymour, product marketing manager, dispensers, North America for DFS. Significant marketing benefits of incorporating intuitive digital media at the pump include higher return on advertising investment; a consistent brand experience for customers; and more efficient customer acquisition through high-frequency advertising.

PepsiCo Inc. is bringing back fan-favorite Mtn Dew flavor Baja Blast in three different varieties — original Baja Blast, Baja Blast Zero Sugar and Mtn Dew Energy Baja Blast — along with two new tropical options: Baja Blast Caribbean Splash and Baja Blast Passionfruit Punch. Fans will get the chance to win a daily giveaway of $500 Taco Bell gift cards by scanning any 16-ounce or 20-ounce bottle. The full Baja Blast lineup is also available in 12-pack cans and 16.9-ounce eight-packs, as well as 7.5-ounce cans for original Baja Blast.

PepsiCo Inc. Purchase, N.Y. pepsico.com

McLane Trade Show Engages Convenience Channel

Maverik Takes Ownership of Kum & Go

The company’s footprint expands to more than 800 c-stores across 20 states

MAVERIK — ADVENTURE’S FIRST STOP has officially doubled in size.

The convenience store retailer completed its acquisition of Kum & Go, operator of 400-plus convenience stores in 13 states, on Aug. 29. The deal also included tank truck carrier and logistics provider Solar Transport from Krause Group, parent company of Kum & Go.

This transaction creates a best-in-class c-store network across the Midwest and Rocky Mountain regions, growing Salt Lake City-based Maverik’s footprint to more than 800 stores in 20 states with approximately 14,000 team members, the company said.

“We are excited to welcome Kum & Go and Solar Transport team members to Maverik,” said Chuck Maggelet, CEO and Chief Adventure Guide of Maverik. “Together, we’ll offer our customers an adventurous and differentiated convenience store experience across fuel, foodservice and inside-store offerings. We look forward to using our combined resources to grow our business and further elevate our product offerings to provide the best service to our customers.”

Maggelet will lead the newly combined organization. Kum & Go’s Tanner Krause is transitioning out of the company following six years of leadership as president and CEO.

Maverik and Kum & Go announced the deal in April, two months after news emerged that Kum & Go was exploring all options for the future, including a potential sale. Financial terms of the acquisition were not disclosed.

“Together over four generations — from my grandfather Tony and my dad Bill to me and my son Tanner — we built these businesses over 64 years through shared vision, collective entrepreneurship and teamwork,” said Krause Group founder and CEO Kyle Krause.

“I’m also incredibly thankful for our associates and their unique contributions that allowed Kum & Go and Solar Transport to reach this level of success. We’ve run the businesses and differentiated ourselves by putting people first and making days better in all we do,” he added.

Starting in January, Kum & Go locations in Utah and the Intermountain West region will rebrand to Maverik stores.

New Leaders Take the Helm at Three Convenience Retail Chains

bp, EG America and GetGo see personnel changes at the top

TRAVELCENTERS OF AMERICA INC. (TA) named Debi Boffa as its new CEO effective Sept. 1. She succeeds Jonathan Pertchik, who led TA from 2019 through its May 2023 acquisition by bp and helped position the company for the future of alternative fuels. Boffa was previously named CEO-designate one week after the bp-TA deal closed in May.

A seasoned management executive, Boffa brings more than 25 years of experience with bp to her new role and has worked across many sectors, including engineering, retail, sales, marketing and operations. She recently served as president of both bp’s Retail Operating Organization and Thorntons LLC, where she led the integration of bp’s ampm business with Thorntons while concurrently overseeing the operations of more than 1,200 convenience stores nationwide.

Westborough, Mass.-based EG America, a subsidiary of EG Group, also has a new leader. John Carey was appointed president and CEO of EG America, effective Oct. 1. In his new role, Carey will drive forward the company’s growth strategy in the United States.

Carey brings significant experience operating global businesses and a track record of delivering highquality returns. His past roles include senior executive positions at bp plc and ADNOC Distribution, where as deputy CEO, he led its IPO on the Abu Dhabi stock exchange in 2018.

In Pittsburgh, Giant Eagle Inc. promoted Terri Micklin to executive vice president and president of GetGo convenience stores as part of a wider round of promotions. She brings more than 20 years of retail, fuel and convenience industry expertise to the role.

As president of GetGo, Micklin will lead the chain’s ongoing growth and expansion while prioritizing its food-first approach and guest-obsessed culture, the company said.

Her career includes experience with ExxonMobil Corp. and more than 20 years with Wawa Inc., where she spearheaded multiple construction initiatives, including new stores, remodels and other significant projects. Micklin most recently served as senior vice president of development and strategy for GetGo.

Giant Eagle also appointed Bill Artman as CEO. He was named interim CEO in March.

Retailer Tidbits

Wawa also recently launched its first battery-electric truck in partnership with Penske Logistics.

autonomous trucks; serve as a hub for drivers for first- and last-mile deliveries; and support Kodiak’s autonomous deployment network.

Approximately

Approximately 150 convenience stores across Wawa Inc.’s operating footprint now offer electric vehicle (EV) charging. The retailer has hosted more than 6 million charging sessions across its network since 2017.

Road Ranger is launching FeedbackNow by Forrester across its network following a five-store pilot test of the technology. During the initial trial launch, the operator deployed Smiley Boxes with an optional QR code for additional comments, and Check-In & Check-Out Boxes to track cleaning schedules.

Pilot Co. and Kodiak Robotics Inc. are teaming up to open a truckport at Pilot’s travel center in Villa Rica, Ga. It will be used by Kodiak to launch and land

Huck’s partnered with app platform designer Rovertown to launch a revamped mobile app. The redesigned Huck’s Bucks Bigg Rewards app combines the latest in loyalty marketing, scan-and-go payments and customer engagement strategies.

In honor of the 50th anniversary of Allsup’s World Famous Burritos, Yesway is now offering the popular menu item for sale online. The burritos and “Chimi” Chimichangas are available to order in multiple sizes, including six-packs, 12-packs, 24-packs and 48-packs. Allsup’s Beef and Bean Burritos can also be ordered in 72-packs.

GAS STATIONS & C-STORES

WE CARD LAUNCHES IN-STORE CAMPAIGN FOCUSING ON SOCIAL SOURCING

A new in-store campaign raises awareness of the common practice used to procure tobacco and vaping products by those under legal age.

It is a frequent scene outside C-stores—underage youths asking legal-age adults to purchase tobacco and/or vaping products for them. Eighty percent of all underage access to those products is from social sources—friends, family and strangers.

This month, We Card is moving the issue to the forefront with an in-store program to address social sourcing—at no cost to retailers.

It builds upon the success We Card has achieved in preventing sales to underage consumers. We Card’s education, training and tools have helped retailers reduce the sales rate of tobacco products to underage consumers from 40% in 1997 to about 10% today. “Compliance education continues and now we are launching a campaign to put social sourcing on everyone’s radar,” said Doug Anderson, president of The We Card Program, Inc.

“We Card’s new in-store campaign complements rather than replaces existing responsible retailing efforts to identify and deny underage purchase attempts of age-restricted products like tobacco and vaping products,” he added.

The campaign is the result of thorough field testing and pilot programs. Through feedback, We Card offers two compelling choices that both produced positive test results. “We tested both campaigns and they both performed equally well. We are letting retailers choose what they want for their stores,” said Anderson.

Be A Real Influencer is one option and it taps into the importance of influencers. The campaign features young adults aged 21+, encouraging them to be “real influencers.” The message is that they can be positive role models by being comfortable saying “no” when asked by someone underage to buy or give them tobacco and vaping products.

The other option is We Card We Care, alerting customers that: If they’re under 21: NO Bumming. NO Borrowing. And NO Buying for Them. “That tagline resonated well with adult customers and retailers,” Anderson said.

Each campaign includes a variety of in-store signage with a QR code call-to-action for customers to scan with their smartphone to learn more and interact with the campaign website.

Did You Know?

Distributors and manufacturers are playing an important role in helping raise awareness and alert retailers to the new campaign. “We’ve activated our distributor network and are pleased to be part of this industry-wide effort,” said Kimberly Bolin, president and CEO of the Convenience Distribution Association and a We Card board member.

We Card is supporting retailers to help prevent and discourage adult purchases of tobacco and vaping products on behalf of those underage. These tested materials will help get the message across.

Both campaigns are readily available, and retailers are posting them in-store throughout 2023 and 2024 as it is a long-term, multiple-year campaign. Retailers can order either campaign at wecard.org/Free-Kit

80% of the time, underage youth report getting access to tobacco and vaping products from social sources—friends, family and strangers.

Supplier Tidbits

Juul Labs Inc. is restructuring the company to maximize profitability and cash-flow generation while allowing it to continue investing in its core priorities. Plans to reduce operating costs include layoffs and reducing the company’s headcount.

company alleges that certain JUUL products infringe certain patents owned by NJOY.

D&H United, a portfolio company of Wind Point Partners, acquired Tanknology Inc. The acquisition marks D&H’s entry into the Northeast, West Coast and Pacific Northwest markets, and expands its service footprint across the Mountain West, Midwest, Southeast and Southwest.

McLane Co. Inc. unveiled a new fresh food program, McLane Fresh, at its national trade show at the end of August. The program’s brands include CupZa!, a reimagined beverage program; a proprietary pizza program; and an expanded selection of McLane’s existing grab-and-go brand, Central Eats.

Altria Group Inc.’s subsidiary NJOY filed a complaint against Juul Labs Inc. with the International Trade Commission. The

The board of directors of 22nd Century Group Inc. has started to evaluate strategic alternatives for its tobacco assets. The process will include consideration of strategic, operational and financial transactions and alternatives, such as business combinations, asset sales, licensing agreements and alternate financing strategies.

Liquid Barcodes received an equity investment and capital infusion from Norwegian-based Viking Venture, an experienced firm in the business-to-business SaaS space. Liquid Barcodes plans to use part of the capital infusion to increase product development resources to enhance loyalty and subscription solutions.

Mobile: The Key to Delivering Your Brand Promise

An integrated e-commerce app can deliver myriad benefits in customer engagement

By Kathleen Furore

MOBILE INTEGRATION. It is something convenience store operators must focus on as they strive to build a seamless omnichannel shopping experience — one that will engage customers, build brand loyalty and communicate the specific brand message the retailer wants to convey, according to Meghan Wang, strategist for strategy and analytics at Newton, Mass.-based Paytronix, a provider of SaaS customer experience management solutions for c-stores and restaurants.

For Eric Rush, director of marketing for Tri Star Energy, the Nashville, Tenn.-based parent company of Twice Daily convenience stores, an integrated mobile app is more than just an option, it is a necessity — and one that Twice Daily has embraced.

“In order to even be considered as a destination during key times of the day, today’s c-stores need to include some form of alternative ordering, if not all of them,” Rush stressed. “For our loyal guests, our app has essentially taken on the role of the storefront or forecourt. It is the first thing they see when they are considering us as their breakfast, lunch or snack destination.”

Mobile integration, of course, does so much more than just drive foodservice sales.

“An integrated e-commerce app will provide guests a simple way to engage with your brand and streamline their purchases. An integrated app optimizes inventory

management through real-time data on stock levels,” Wang explained. “It enhances customer experience through tailored promotions and loyalty programs, and it can provide meaningful data back to the business on customer behavior to help shape more personalized marketing strategies in the future.”

Optimizing Your Guest Engagement Strategy

Before a convenience retailer can deliver a brand message, collect data and ultimately build long-term loyalty, they have to be able to reach customers where they are, at any time of day. Today, that “where” is on a mobile device — which means a store’s mobile app should play a critical role in the retailer’s digital guest engagement strategy.

As Wang noted, there are myriad benefits that mobile apps deliver from a customer engagement perspective.

“Apps enable stores to send targeted notifications about promotions, new arrivals or special events directly to customers’ phones. Operationally, they allow for a streamlined experience in which customers may utilize mobile payments and track order fulfillment,” she said. “The app can also collect valuable data on customer behavior, preferences and purchase history, which can then inform more personalized recommendations and tailored offers, making customers feel valued and understood. Finally, stores can incorporate gamification elements within the app, such as quizzes or challenges,

to engage customers and encourage more frequent interaction with the brand.”

Yatco Energy, the Northborough, Mass.-based operator of 20 convenience stores throughout New England, recognized the important role mobile apps play when it was in the early stages of building its digital presence. The company’s mobile app “has been our first step toward having a digital presence,” said Yatco Vice President Hussein Yatim. “It stemmed from the company growing regionally here in New England and really trying to push the Yatco brand and presence to consumers.”

Twice Daily’s app is also key to engaging customers, according to Rush, who said the company “has taken on a significant increase in our digital strategy over the last 12 months.”

Valuable Learnings

How can convenience store operators just getting up to speed with mobile know where to start?

Eric Rush, director of marketing for Tri Star Energy, the Nashville, Tenn.-based parent company of Twice Daily convenience stores, offered the following advice based on his experience:

Find out what your guests want — “What do they want to see, what would make them download your app and become a loyal shopper?” Rush asked. “Your already-loyal guests will not take any convincing, but what is going to turn a casual guest into a loyal one? And what could turn a nonguest into a casual one?”

Consider your business needs and what you hope to get out of the program — These are very important considerations, but if you prioritize them over your guests’ preferences, “the program will not be as successful,” Rush said. “It is a customer loyalty platform first.”

Leverage the big brands and their big pockets and experience — “The CPG brands are ready and willing to provide some amazing offers and contests as long as you can provide some real-time and accurate data back,” Rush pointed out.

Get the buy-in — This means all levels of the organization and must include a strong marketing campaign. “You cannot just roll out an app and let it go on its own,” he concluded.

Upgrading the company’s mobile app experience with the help of the new Mobile Experience Builder from Paytronix was an important step in refining that strategy, which also included “a total redesign of all of our websites and increased organizational focus on the loyalty program and mobile ordering,” he said.

The Mobile Experience Builder is a self-service tool that enables brands of all sizes to publish content in real time to their mobile apps — something that previously had been possible only for companies with the resources to invest heavily in custom mobile app development.

“With this focus on creating a stronger value proposition and finding ways to ensure the guests are aware of that value, we have strengthened our ability to communicate through other channels like SMS, email, social and other digital platforms,” Rush added.

Delivering Your Brand Message

What role does a mobile app play in delivering the specific brand message a c-store wants to convey? According to Wang, it provides a platform for consistent branding, personalized interactions, storytelling and engagement.

A well-designed app — one that is easy to navigate and use — reflects positively on the brand and creates “a strong and lasting impression of the brand” by providing unique value to the customer, she said. “Stores can communicate their message and engage with guests through customized content, push notifications, and in-app surveys or feedback opportunities.”

Yatim shared that Yatco’s mobile app has played “a very significant role in delivering the Yatco brand message,” which has been especially important because the company co-brands its fuel with major oil companies.

“From the consumer perspective, it sometimes isn’t clear what the brand is since our c-store is Yatco and our gas brand is another brand. The app has helped customers know that we are differentiated, and that starts in the store,” Yatim said. “We have used a variety of strategies to communicate our brand and the value it provides to customers. We have run various campaigns that give customers substantial discounts on gas or free items in-store relatively easily. That has helped position Yatco as a brand that is competitive and creative with what we offer. … As more and more consumers sign up on the app and become frequent users, it promotes brand visibility and recognition.”

Since implementing its more robust digital strategy, Twice Daily also has used its app in several ways to communicate its brand promise.

“The biggest change we made was to bring Member Pricing offers into the app through a web view. This has allowed us to display all of the member prices, along with contest information and new items/LTO [limited-time offers] without having to stick to any app limitations,” Rush explained. “It has also allowed us to use that link as a call to action for other digital/social advertising to show potential guests what types of offers and campaigns we run without them first having to download the app.

“When the guests are believers in your brand promise and trust you, they are far more likely to allow your app to take valuable space on their phones,” he observed.

Building Brand Loyalty

Top loyalty guests overwhelmingly represent the highest spenders and most frequent visitors, according to the “2022 Paytronix Annual Loyalty Report.” As c-store shoppers increasingly demand that loyalty be accessible through easy-to-use mobile apps, it’s not hard to see why giving customers a way to interact with your loyalty program via an app is so important to bottom-line success today.

“Through a combination of convenience, personalization, rewards and engagement, a well-crafted app will keep customers closely connected to the brand,” Wang explained. “By creating an efficient ecosystem, it will not only make shopping easier, but also help foster a deeper emotional bond between the customer and the brand.”

Wang noted that many brands rely on third-party apps to handle things like online ordering, but she cautioned that this isn’t the best way to engender loyalty.

“While the third parties are great for bringing in new customers, they stand between your brand and your customers. Building brand affinity means having your own place on your guest’s phone — then, they come directly to you,” she said. “But you also want to build in incentives to own this real estate, which could mean special offers, discounts or items that aren’t available through the third parties.”

This kind of customization is something Twice Daily anticipates offering in the near future.

“The further we get into the digital transformation, the greater our ability is,” Rush said. “We will be able to create a customized app approach for each guest based on their habits, their likes and what motivates them to continue coming to our stores.” CSN

Case

Study: Yatco Promotion Creates a Memorial Day to Remember

The benefits of using a mobile app to engage customers, deliver a brand message and build loyalty are many. Northborough, Mass.-based Yatco Energy’s campaign for Memorial Day 2023 is one example of how effective even a simple promotion delivered via an app can be.

The company offered a free 20-ounce Coca-Cola beverage that customers could redeem through the app throughout the holiday weekend.

“We were trying to layer in deals on top of points and rewards,” Hussein Yatim, vice president of Yatco Energy, which operates 20 convenience stores throughout New England, explained during a recent webinar presented by Paytronix and Convenience Store News.

The offer pulled customers who might have only stopped for gas into the store. “There were a couple hundred redemptions of that Coke offer,” Yatim reported.

Even better, a post-promotion report revealed a huge life in incremental sales.

“At least three-quarters of the time, those customers up-bought snacks, sandwiches, tobacco and lottery tickets,” Yatim said, noting that one customer who came for the Coke bought $30 worth of goods in-store.

“That is tremendous upsell and basket size for a c-store.

“You’re prompting customers to come in with the deal and seeing the basket build because you got them in-store,” he continued. “The holy grail of these programs is getting them in and then having your store, your brand, take it from there.”

Sponsored by

Yatco uses a variety of strategies to communicate its brand, including a mobile app, according to Vice President Hussein Yatim.

Unleashing the Potential of Mobile Application Management

By Jeff Hoover, Paytronix

IN TODAY’S DYNAMIC convenience store landscape, staying ahead demands more than just offering quality products and services. It means understanding consumer behavior and delivering personalized experiences. Convenience stores must control their own digital experience through the mobile device to make this work.

Modern consumers have come to expect an effortless shopping experience that transcends physical boundaries. That’s why an integrated e-commerce app has evolved from being a competitive advantage to a fundamental necessity.

By integrating real-time updates, personalized promotions and tailored messaging into their mobile apps, c-stores can deliver a great digital brand experience and gain valuable insights into customer behavior. The competitive edge is in the integration of a complete guest engagement solution through the mobile app.

Personalization: The Crux of Engagement

Beyond wanting it easy, customers want it to be personal, especially from those few apps they choose to keep on their phones. To connect with customers effectively, convenience stores must do more than just offer an app — they need to make sure it works smoothly with their digital guest engagement systems like online ordering, loyalty and CRM.

By using data about what customers like and what they buy, convenience stores can suggest products and deals that truly matter to customers. This not only encourages people to use the app, but also lets stores send them special messages and offers that are just right for that guest. It’s all about making customers feel important and understood.

A mobile app transcends its role as a digital storefront; it becomes an extension of the brand itself. To this end, consistent branding, personalized interactions and storytelling are crucial. A well-designed app that aligns with the brand’s identity reflects positively on the business. Through customized content, push notifications, and in-app surveys or feedback channels, companies can effectively communicate their message, enhancing brand recognition and loyalty.

More than just an e-commerce tool, a mobile app that offers convenience, personalization, rewards and engagement enables c-stores to create an efficient ecosystem that not only simplifies shopping, but also nurtures a deeper emotional bond between customer and brand.

Taking Ownership of the Customer Experience

Of course, customers have many choices and a brand’s app may be competing with the third-party aggregators. Those aggregators have a place in the overall marketing ecosystem, often by bringing in new customers, but capturing those guests and offering them additional value through a mobile app is key to increasing customer lifetime value.

Efficiency in Mobile Strategy

Achieving this level of sophistication takes time, energy and planning. And, of course, c-store executives are already stretched thin. That’s why it’s key to balance the different cost options against the needs of the brand. That is, you shouldn’t underinvest to the point of hurting the overall brand experience, but investing heavily before you’re ready can be equally as damaging.

Finding that right balance with the right partner will make the end result fit your needs while still offering room to grow. For example, a technology partner that offers guided processes can expedite app development, enabling a team to design and launch an app efficiently. Further refinements can be made as you grow and gather both data and insights, making the process more manageable and cost-effective.

As c-stores continue to navigate the challenges and opportunities presented by the mobile landscape, it’s evident that the key lies in understanding and adapting to evolving consumer expectations. Whether through personalized experiences, efficient integration or cohesive brand messaging, the power of mobile applications in customer engagement is undeniable. Businesses that embrace this power stand to thrive in a digital-first world.

Jeff Hoover is the director of strategy and analytics for convenience store brands at Paytronix. He’s an experienced marketing professional with a multifaceted background working on both the brand and agency side, including brand management at Kimberly-Clark, Scotts Miracle-Gro and Wendy’s.

Built Protein Snacks

Built brings to market three new products: Built Bites, Built Balls and Built Krispy. These new varieties combine Built’s protein and balanced macros to provide consumers the nutrients needed to thrive. The Bites and Balls feature a blend of whey and collagen, with the former including a chocolate-dipped exterior and the latter launched with a peanut butter flavor. Built Krispy features a crispy concoction of high-quality protein sources like hydrolyzed collagen and whey protein isolate in two flavors, Peanut Butter Chocolate and Mint Chocolate.

BUILT • AMERICAN FORK, UTAH • BUILT.COM

Electrolit Mango

Electrolit Hydration Beverage introduces its newest flavor, Mango, which joins the global brand’s now 15-drink lineup. Intended as a convenience store take on the company’s traditional formula, each 21-ounce serving of Electrolit Mango contains 326 milligrams of electrolytes, alongside magnesium, sodium, potassium, calcium and real glucose, a natural source of energy that can boost the body’s recovery from dehydration. Electrolit Mango is currently stocked in 1,200 7-Eleven Inc., Stripes and RaceTrac Inc. stores throughout the United States.  ELECTROLIT • CERRITOS, CALIF. • ELECTROLIT.COM

Treat Planet Dog Toys

Treat Planet LLC releases its first line of pet toys under the Cosmo’s Snack Shack brand. The Fly N’ Float is a frisbee that is lightweight, floatable and tough, yet soft and pliable, and gentle on a dog’s mouth. The Fling N’ Fetch is a bouncing ball attached to a string and acts as an interactive fetch toy that is safer for the dog’s teeth than a tennis ball, according to the company. Both toys are made with BPA-free natural rubber. They are nontoxic and latex-free.

TREAT PLANET LLC • EARTH CITY, MO. • TREATPLANET.COM

BIC Special Edition Good Vibes Series Lighters

BIC debuts a refreshed lineup for its Special Edition Good Vibes Series of lighters. According to the company, the series is aimed at humorloving consumers who don’t want to settle for boring lighters. The designs feature everything from robots to chicken wings to mammoths with attitude. The Good Vibes Series lighters have a suggested retail price of $2.29 per unit and like all BIC Maxi Lighters, are long-lasting, reliable and 100 percent quality inspected.

BIC USA INC. • SHELTON, CONN. • US.BIC.COM

Midway Reusable Shopping Bag Rack

Midway Displays presents its Reusable Shopping Bag Rack for convenience stores. The display rack is designed to be space-efficient, cost-effective, and to support retailers looking to comply with any upcoming plastic bag laws, regulations or ordinances aimed at reducing the number of single-use plastic bags in circulation. The 2-inch-wide wire loop rotors are designed to hold all types of handles on totes, and will evenly present bags no matter the handle style. Additionally, operators can choose from brandable or mobile bases. The racks are selectively made with recyclable materials and knock down and ship compactly, potentially saving both fuel costs and warehousing space.

MIDWAY DISPLAYS • BEDFORD PARK, ILL. • MIDWAYDISPLAYS.COM

Whoa Dough Chocolate Chip Cookie Dough

Whoa Dough is launching its newest product, Chocolate Chip Cookie Dough. At only 90 calories and 8 grams of sugar per serving, the sweet and salty refrigerated snack can be enjoyed straight from the package or baked into nine cookies within minutes. Allergen-friendly and sensitive for those with dairy restrictions, Whoa Dough Chocolate Chip Cookie Dough is certified gluten-free, vegan, egg-free, nut-free, soy-free and dairy-free. The product is also Non-GMO Project Verified and OU kosher. Whoa Dough Chocolate Chip Cookie Dough became available nationally starting in September 2023.

WHOA DOUGH • HIGHLAND HEIGHTS, OHIO • WHOADOUGH.COM

Good2grow Bigger Juice Line

Children’s snack brand good2grow now offers a larger 10-ounce size of its fan-favorite juice that is compatible with hundreds of its collectible licensed character tops. The Bigger Juice line — its second new product innovation of 2023 — features 65 percent more juice than the brand’s 6-ounce products and comes in two flavors: Raspberry Lemonade and Orange Mango. According to the company, its juices are a good source of vitamin C, zinc and calcium, and contain no added sugar. The Bigger Juice line began hitting shelves this summer at various grocers and convenience store retailers, including Casey’s General Stores Inc.

GOOD2GROW • ATLANTA • GOOD2GROW.COM

Think! High Protein Bars New Flavors

Glanbia Performance Nutrition brings to market two new dessert-inspired flavors as part of its think! high protein bars line: Boston Crème Pie and Chocolate Mint. The Boston Crème bars layer crème and chocolate while delivering 15 grams of protein, 4 grams of fiber and 1 gram of sugar. The Chocolate Mint bars combine mint and dark chocolate while providing 20 grams of protein, 2 grams of fiber and zero grams of sugar. Like all think! products, the new varieties are gluten free with no artificial flavors or colors. Both are available as single bars for $2.29 or a five-count box for $9.99 and come in new packaging that aims to improve shelf findability.

GLANBIA PERFORMANCE NUTRITION • DOWNERS GROVE, ILL. • SHOP.THINKPRODUCTS.COM

LaserWash 360 Plus LaserGlow Arch

OPW Vehicle Wash Solutions introduces the LaserWash 360 Plus LaserGlow Arch from PDQ Manufacturing. The arch is intended to provide easy-tounderstand guidance during the loading process that visually communicates to drivers when they should pull forward, back up or stop in the wash bay. The lighting of the arch system has numerous colors and lighting patterns available, allowing operators to use it as a marketing tool to display brand colors or cheer on a local sports team. According to the company, the LaserGlow Arch also has improved arch-rotation navigation that makes it easier to troubleshoot and more resistant to normal mechanical wear, with an improved arch-rotation drivetrain and optimized torque output and control of the spray-arch position.

OPW VEHICLE WASH SOLUTIONS • DEPERE, WIS. • OPWVWS.COM

Plastic-Free Cold Cups

Foodservice products manufacturer Continental Cup is rolling out a new line of Plastic-Free Cold Cups. The line was created in response to the growing consumer concern over plastic waste and its detrimental impact on the planet, the company stated. The new cups contain no PLA, bio-plastics or other resin or plant-based polymers, providing a sustainable and renewable alternative to plastic. The cups are designed to break down naturally in just 90 days via compost or they can be recycled at a majority of curbside recycling programs. The Plastic-Free Cold Cups are available in various sizes and can be customized to each client’s branding needs.

CONTINENTAL CUP

BETHLEHEM, PA.

CONTINENTALCUP.COM

Setting Priorities

While customer-facing technology is important, small operators are also prioritizing the back office to create more efficiency at the store level

By Tammy Mastroberte

RETAIL TECHNOLOGY continues to change and evolve, and there are so many new and exciting options for convenience store retailers to utilize in the operation of their stores. However, when it comes to small chains, the budget size is minimal compared to large companies and although many innovative technologies offer lower-priced alternatives for smaller operators, there are far more options available than there are dollars in the budget.

“Technology is still expensive, [so] small operators need to uncover what they are trying to do with it and ask, ‘How can this make me more efficient?’ or ‘How can this save me money?’ when evaluating what to invest in,” Steve Morris, owner and president of St. Paul, Minn.-based Retail Management Inc., operator of 17 stores throughout the United States, told Convenience Store News. “In some cases, they won’t be able to find revenue-generating options, but will improve customer service or employee satisfaction or just become more efficient, which could lead to a cost savings.”

When it comes to technology, retailers are often looking for a return on investment

(ROI), whether that’s an actual dollar amount or measured by improvements in customer satisfaction, labor or efficiency. At Smith Oil Co., based in New Cumberland, W.Va., and operating 12 sites — four with fuel only — the chain requires a hands-on and engaged approach from its entire management team to successfully execute any new initiative, including technology.

“We initially start with a low-tech approach, but if that doesn’t meet expectations, we look to technology to help,” explained Michelle Fluharty, secretary and treasurer for the company. “With each decision, our management team must discuss cost analysis, labor implications, effectiveness and necessity of the technology.”

Smith Oil also evaluates efficiency because that has a direct effect on employee retention and customer satisfaction, including having the right products in stock, accurate pricing and adequate inventory at each location. “All of it combined helps give you a good reputation in the towns you operate, and an efficiently run business will be more profitable,” Fluharty added.

In fact, along with customer-facing technology, administrative and back-office tasks are often a priority for small operators because that is where they see “the actual ROI” through efficiency and labor management, noted Morris.

For example, Smith Oil recently launched a new app for its rewards program while also making investments in the back office, such as suggested ordering software.

“We look at both back and front-facing because both are equally important,” Fluharty said.

Customer-Centric Technology

Mobile apps, digital signage and selfcheckout are all options available to c-store owners today that can have a positive impact on customer satisfaction and, in some cases, employee satisfaction as well. Chains of all sizes are investing in these technologies, and that includes small operators as more affordable options continue to become available.

“For smaller operators, the elusive self-checkout has become much more affordable,” said Morris. “There are so many more options that can be integrated with a standard point-of-sale (POS).”

Retail Management Inc. installed Gilbarco’s self-checkout system into a high-volume store that struggled with labor and had three POS stations to be staffed. Now, the store only needs two employees and can reallocate labor to stocking shelves, cleaning and other tasks.

“I didn’t see a labor increase or decrease, and not seeing an increase is my return on that investment,” Morris noted. “Also, my in-stock position is improved because I have people stocking more frequently, and the store is cleaner — which are intangibles that are harder to measure.”

Another investment the company made recently was installing digital menuboards, which has allowed the retailer to decrease printing costs and improve efficiency in updating menuboards and food prices, according to Morris.

Loyalty programs and mobile apps are also top of mind for many small operators.

Marshfield, Wis.-based Weiler Convenience Stores, operating three locations, upgraded from a punch card system for coffee and pizza to using an app to track purchases and points that can be redeemed on in-store products and fuel. Customers can use the app to look at their transaction history, the number of points they earned and how far along they are in the coffee or pizza program. Additionally, the loyalty program is based on a customer’s 10-digit phone number, so those who do not want to use the app can give their number at checkout.

“We decided to invest in the technology because it’s really the trend, and we want to keep up with it,” said Kelly Weiler, co-owner of the chain with her husband. “We watch what is out there in the industry and listen to what customers and vendors are telling us as well.”

In fact, it was customers who asked for the ability to use a phone number to track their coffee and pizza program purchases rather than carrying around a punch card. The app also allows the small chain to gather data on its customers, including how many times they visit and what they are buying, and even compare data between stores.

“We try to keep up with what is out there with other chains, and we have a five-year plan on spending whether it’s technology, painting a store or upgrading a bathroom,” Weiler noted. “Every year, we update something. With technology, we pay attention to what is out there, but if you jump on the first new thing and it’s not proven, it can be expensive to be a guinea pig.”

Weiler Convenience Stores upgraded from a punch card system to using an app to track purchases and points.

Smith Oil had an app for eight years prior to rolling out its new one. Relaunching with Liquid Barcodes, the new app functions as a loyalty card, while also enabling customers to activate the fuel pump and roll back pricing by 10 cents per gallon. Phase two will integrate its beverage program of buy five, get one free, as well as tailored discounts, said Fluharty.

“We will also be rolling out a subscription service in the app where customers can pay a set amount each month and then come in and get coffee or a fountain drink with it,” she added.

Liquid Barcodes integrates with the company’s POS system. The operator opted to invest in an upgraded app and program because they wanted to offer customers a “wide range of benefits comparable to industry-leading competitors,” Fluharty explained.

Additionally, the chain decided to participate in Skupos for the ability to offer additional product discounts. Skupos brings independent operators together to participate in brand-funded promotions and more. The solution also allows operators to gather data and see who is using the program, while offering customers discounts to stand out amongst competitors.

Back-Office Investments

For small chains with limited staff, freeing up administrative work can be a huge benefit to them, which is why so many are investing in back-office and payroll technology.

Without this type of automation, paperwork can become time-consuming and limit a manager or owner from being able to handle other tasks, Morris pointed out.

“Anything small operators can do to automate or assist them with administrative tasks, such as payroll or vendor reconciliation, is where they are going to find the best ROI,” he said. “That may not be customer-facing, but when I talk to my clients that are single-store or two-store operators, this technology is freeing up their time to focus on something that is more revenue-generating.”

For the 17 sites his company operates, they rolled out payroll technology with a mobile app and electronic onboarding, which reduced paperwork and training documentation for new hires, and improved the ability to interact with employees electronically and individually.

“It saved a ton of paperwork, and saved

both money and time because as the company grows, we can be more efficient and won’t have to hire more administration support,” Morris noted. “It allows for company growth with growth in expenses, and the efficiency and time savings allow us to give employees other things to do.”

Also focusing on back-office technology, Smith Oil implemented suggested ordering software to optimize its inventory levels and resource allocation, and is getting ready to introduce an advanced software for retail site management along with upgraded handheld devices “to enable our managers to dedicate a greater portion of their time to the sales floor, reducing their time on administrative, back-office tasks,” said Fluharty.

The company uses PDI Technologies for back-office software, through which they can run reports to check overstocks and previous sales data to see how much inventory is on hand, how much is overstocked, and identify out-of-stock missed profit opportunities.

“You don’t want to have too much and if you are running out, then you have missed sales, so the technology is allowing us to finetune it to the best of our ability,” said Fluharty. “Monetarily, you can’t put a number on it for savings, but once we move a store to suggested ordering, I compare overstocks and out-of-stocks before and after and you wind up with additional sales when something is not out of stock.”

At Weiler Convenience Stores, the chain has been scanning for years not only at the POS, but also in the back office with vendor invoices.

“It gives you better control over your pricing and making sure your pricing is accurate,” Weiler said. “We have one of our office staff perform audits and being able to scan in the vendors lets her audit cigarettes, tobacco, liquor, lottery tickets and more, so we will know if we have a thief quickly because if you don’t shut it down, the store becomes a target for more.”

Retail Management Inc. is looking into scanning invoices and investing more in back-office technology because moving from scanning one invoice rather than scanning each product will offer a big savings in labor, according to Morris.

“The labor market is tough and I don’t see it changing any time soon,” he said. “Every labor hour is expensive, so if I spend $20 a month on technology and save seven hours of labor, then sign me up.” CSN

“We initially start with a low-tech approach, but if that doesn’t meet expectations, we look to technology to help.”

— Michelle Fluharty, Smith Oil Co.

your COOLER just got HOTTER

INTRODUCING THE COOL FLAVOR THAT’S HOT IN SALES

Smirnoff Ice Blue Raspberry Lemonade joins the all-star innovation lineup of successes like Smirnoff Ice Red White & Berry, Smirnoff Ice Pink Lemonade and the Smirnoff Ice Neon Lemonade. Combining the nostalgic taste of blue raspberries over sweet and refreshing-tasting lemonade, its not just for summer but a year round new favorite. A flavor that’s destined to spark taste buds and sales alike. For more information, call your Smirnoff Ice Distributor.

INN VATI N ABOUNDS

FROM OPERATIONS TO CUSTOMER ENGAGEMENT, THE CONVENIENCE STORE INDUSTRY IS CONTINUOUSLY ADAPTING AND IMPROVING TO BETTER SERVE COMMUNITIES

BY MELISSA KRESS, LINDA LISANTI & DANIELLE ROMANO

WHILE THE COVID-19 pandemic undoubtedly brought on an innovation surge, the pace of innovation in the U.S. convenience store industry has not slowed down; in fact, it only keeps accelerating. Industryleading retailers are finding new and better ways to deliver “convenience,” whether it’s streamlining processes for team members or improving the experience for guests.

If asked five or six years ago whether the c-store industry was doing a good job of innovating, Choice Market founder and CEO Mike Fogarty said his answer would have been no. In fact, it is part of the reason Choice Market was started, because he saw a lack of innovation.

With eight locations in the Denver area, the retailer combines quick service and user-friendly technology with fresh, quality food from local vendors and a practical product selection.

Today, Fogarty said his opinion has changed. He thinks most c-store retailers are really starting to “get their arms around the customer and the needs of the customer” and as a result, he’s seeing sizable investments happening around mobility, design, technology, checkout options, etc.

“A lot of these organizations are very large and sometimes it takes a while for that innovation to really take place. But overall, I am impressed personally with where the industry is starting to head,” he told Convenience Store News. “And then, you have younger leaders that are relying on Gen Zs and that are leading these organizations; they get it and they understand it. And I think, ultimately, it’s good for the industry and, ultimately, for the customer.”

Being customer-centric is at the heart of Choice Market. “We really think about that customer as we make decisions around all those different areas that we innovate in,” Fogarty added.

Darrin Samaha, vice president of marketing at Yesway, shares a similar perspective. The role of innovation in today’s convenience store industry, he says, is delivering “wow” moments to customers by reimagining ways to make the shopping experience faster, easier and more enjoyable. This requires cultivating a customer-centric mindset.

It also entails leveraging data analytics and artificial intelligence (AI) to gain valuable insights into customer behavior, preferences and demand patterns. Through data-driven decision making, Yesway can tailor its product assortments, pricing strategies and marketing efforts to match consumer needs, he explained.

Fort Worth, Texas-based Yesway’s c-store portfolio consists of 441 stores in Texas, New Mexico, South Dakota, Iowa, Kansas, Missouri, Wyoming, Oklahoma and Nebraska. Its stores operate primarily under the Yesway and Allsup’s banners.

Using Technology Wisely

Of course, a conversation on innovation cannot be had without talking about technology.

“The most important development and advancement in our space is increased use of technology in a variety of ways,” said Kevin Smartt, CEO of Texas Born (TXB). The Spicewood, Texas-based convenience store chain operates 50-plus locations in Texas and Oklahoma.

“From mobile ordering [to] selfcheckout stations, AI technology to quickly identify store needs, customizable mobile apps and loyalty programs, these are all extremely valuable tools to ultimately help our guests get in and out of the store as efficiently and comfortably as possible, while taking some of the pressure off our employees as well,” Smartt noted.

By using SparkCognition’s Visual AI Advisor solution at its Georgetown, Texas, location, he said TXB has been able to gain insight into the demographic mix of shoppers, movement of customers from the forecourt to the store, where and how people are traversing the store and spending time, and service-level measures at the foodservice and checkout counters.

“This is extremely insightful for us as we’re able to identify when shelves are low on product faster, how many times someone has entered the restroom and how often we need to go in and clean, when there is a line at the register and more employees need to be at the counter to help checkout, etc.,” Smartt explained.

Like TXB, Casey’s General Stores Inc. is also deploying digital technology, ranging from AI-enabled voice ordering for its kitchens to data-driven inventory management and fulfillment processes, to an improved digital platform and rewards program.

“Together, this technology optimizes our operations, improves the experience for our team members, and offers more contemporary and personalized ways to engage our guests,” said Ena Williams, chief operating officer for the Ankeny, Iowa-based chain that has more than 2,500 convenience stores serving customers across 16 states.

In an industry focused on meeting the ever-evolving needs of consumers, she shared that Casey’s has realized innovation that comes from “the inside out” is critical to bringing the latest and greatest products and services to its guests.

With this in mind, the company recently launched its Easy for You initiative, designed to enhance operational efficiency and simplify the store experience for team members. So far, the initiative has streamlined a number of internal processes, including:

• Using automated smart safes and outsourcing laundry services to reduce time-intensive tasks;

• Standardizing kitchen processes and equipment to improve food quality and increase capacity; and

• Piloting self-checkout and AI-enabled voice ordering technologies to offer faster service.

“By removing complexity from processes and reducing administrative tasks, these improvements have given back an average of 11 hours per week to each store across our 16-state footprint,” Williams reported. “This is time our team members can use to serve our guests and complete higher-impact work, such as merchandising or food preparation. This is an example of how simple — yet effective — innovation can be when we focus on team success and guest service.”

“Our goal as marketers is to elevate convenience retail customer engagement, loyalty and brand marketing so that it is held in the same regard as the best-in-class channels.”

— Darrin Samaha, Yesway

Using innovation to challenge the status quo is something bp is focused on as well across its two c-store banners, ampm and Thorntons, and its newly acquired TravelCenters of America network.

“We as a brand are constantly iterating and leveraging technology to reach our guests. Consumers are digitally enabled and we’re investing in capabilities to meet their evolving needs,” said Lisa Blalock, vice president of convenience, Americas for Houston-based bp.

The company sees innovation as critical to its ability to engage with the next generation of guests, and is focused on connecting with guests — both present and future — through digital channels to engage them with offers, products and services.

“A digital transformation will give us the opportunity to provide access points to our brand that are unique and individualized. It allows us to be even more guest obsessed,” said Blalock.

Coming back to the question of whether the c-store industry is doing a good job of innovating, Yesway’s Samaha thinks the industry is doing “a very good job” in this area, but nonetheless he believes you should continually be looking to improve. And this may mean looking to other retail channels for inspiration and ideas on how to reimagine the guest experience.

“Our goal as marketers is to elevate convenience retail customer engagement, loyalty and brand marketing so that it is held in the same regard as the best-inclass channels, whether that be hospitality, airlines, entertainment or big-box retail. There are things that these channels do very well that we are looking to emulate,” he said.

The customer-centric mindset, however, will always guide the innovation journey.

“Technology and innovation are cool, yes, and in marketing, we have so many touchpoints with technology, but great retailers apply technology with a customer-centric mindset to drive a better experience,” Samaha stressed. “Innovation to us is not so much revolutionary as it is solving a clear problem, shopping roadblock or consumer need state to make it easier to shop at our stores. At the end of the day, that is our job — to consistently deliver an exceptional value to our customers.”

What Does Innovation Mean to You?

Innovation means improving convenience for our guests and streamlining processes for our team members. We’re always looking for and testing new technology.

At Casey’s, we’re always growing and evolving to better serve our guests, team and communities. To me, innovation is about looking for new products, concepts and processes that make life easier for our team members and improve the experience for our guests. It can be anything from the launch of ground-breaking technology to simplify operations, to a new menu item exclusive to Casey’s.

— ENA WILLIAMS, CASEY’S GENERAL STORES INC.

When we innovate, we’re focused on our ability to connect with our guests through digital channels to engage them with our offers, products and services. Innovation gives us the opportunity to challenge the status quo of our guest experience in a positive way.

— LISA BLALOCK, BP

Innovation in convenience retail refers to the continuous improvement and adaptation of processes, technologies and customer experiences to enhance convenience, speed and efficiency in the retail environment. This includes the implementation of cuttingedge technologies like walk in/walk out, mobile payment options and automated inventory management systems. It also involves the development of creative solutions to meet evolving customer needs, such as convenient grab-and-go food options or personalized shopping recommendations through data analysis. Lastly, innovation means embracing digital transformation to offer personalized and frictionless shopping experiences.

— DARRIN SAMAHA, YESWAY

There’s a famous quote that says, ‘Innovate or die.’ Innovation has to not only span product mix and merchandising mix in terms of evolving with that customer, but also things like store design and checkout options and technology. And even small things like lighting and how you incorporate things like art into the store. All these things matter to the customer.

— MIKE FOGARTY, CHOICE MARKET

— KEVIN SMARTT, TEXAS BORN

INNOVATION SPOTLIGHT: Casey’s

Enhancing its operational efficiencies is a key focus for the chain

In early 2020, Casey’s General Stores Inc. outlined three strategic pillars for moving forward: reinvent the guest experience, create capacities through efficiencies, and be where the guest is through unit growth. After successfully wrapping up the three-year agenda this year, the Ankeny, Iowa-based convenience store retailer kicked off the next phase of its strategic journey — one that includes enhancing its operational efficiencies.

“What I want all of you to understand is that we are taking aggressive steps to make our stores more efficient and easier to run. Our goal is not only to lower operating costs, but to improve the guest and team member experience,” Chief Operating Officer Ena Williams said at Casey’s 2023 Investor Day, held June 27. “I see this as a critical part of enabling growth.”

According to Williams, Casey’s store operations have been, historically, too complex — its tools, processes and technologies were not streamlined or very efficient.

The retailer is now working to change that. Notably, leaders in its new centralized Store Support Center “bring a disciplined, data-driven approach to improve operations and hit financial targets,” Williams said. “As a result, we are now measuring almost everything that happens in our stores so that we can understand where we can improve.”

The convenience store chain’s approach to boosting operational efficiencies centers around four strategic steps:

1. Store simplification: removing steps from any process that don’t add value; equipping managers and team members with the right tools and support to make running the stores easier; streamlining communications; and modernizing labor and management.

2. Streamline the kitchen: introducing equipment, technologies and supplies, all intentionally laid out to be at the right places to drive efficiency and cut down the time for preparing and delivering each order.

3. Faster service: rolling out self-checkout and artificial intelligence (AI) solutions like AI-enabled ordering; and improving point-of-sale capabilities.

4. Inventory optimization: simplifying the ordering process; placing the right products in the right places; and establishing store-level inventory management.

These four strategic steps are rooted in two foundational elements: store modernization and a culture of continuous improvement at Casey’s.

While the customer experience is always front of mind, the c-store operator is well aware that customer experience and team member satisfaction go hand in hand. To get to this point, Casey’s began gathering feedback from its stores through surveys and interviews conducted over two years. It also established a store manager advisory board representing various locations across its 2,500-plus-store footprint, according to Williams.

“We asked what their biggest challenges were and how we could help them be more successful. The feedback was clear — managers had too many tasks that took them away from the guest. There were too many steps in each process. They didn’t have the latest tools and technologies. Operations were not designed for efficiency,” she said. “This was the starting point for our strategy. We decided to take the voice of the store seriously.”

INNOVATION SPOTLIGHT: Yesway

The retailer is reimagining its rewards program to increase its share of customer wallets

The convenience store shoppers of today are not who they were yesterday. Over the last several years, the channel has experienced a seismic shift in how shoppers expect a loyalty program to be and how it is delivered to them. What started as card-based programs that evolved to card-and-mobile programs has now evolved into a fully immersive experience across multiple touchpoints.

“Customers across all retail expect loyalty programs to be highly personalized, digitally integrated, accessible across multiple channels, capable of providing instant rewards, and focused on enhancing their overall brand experience. Meeting these evolving expectations is crucial for retailers looking to build and maintain loyal customer relationships in the modern marketplace,” said Darrin Samaha, Yesway’s vice president of marketing. “Those who adapt quickly will ultimately continue to earn their customers’ loyalty.”

Yesway, the Fort Worth, Texas-based operator of 440-plus convenience stores, has always embraced technology, according to Samaha. In doing so, the retailer has had access to more data capture, more learning and more automation underpinning its guest engagement platforms, specifically loyalty.

By levering data analytics centered on criteria such as customers’ buying habits, preferences and demographics, the retailer can offer personalized product recommendations, promotions and communication, strengthening those loyal customer relationships.

“We are moving to an omnichannel experience. It is a buzzword to a certain extent, but it is true. Today’s customers expect a seamless experience across various channels,” Samaha said. “We do our best to ensure that our brand presence is consistent and cohesive across [all] platforms to provide Yesway and Allsup’s customers with a unified and convenient shopping journey.”

To provide its guests with enhanced experiences and a loyalty program that enriches the overall customer experience, Yesway earlier this year tapped solution provider Stuzo to introduce the third iteration of the Yesway Rewards program. The retailer will leverage Stuzo’s Wallet Steering solution to understand the incremental wallet opportunity it has with its customers on both a one-to-one and wallet-by-wallet basis. Yesway will use the new software solution to activate this data in real time in order to increase its share of customer wallets.

“Using Stuzo’s Wallet Steering technology, we will enable an even more robust level of personalization and we hope we will find new wallet share opportunities to help drive more trips from our current members,” Samaha said, adding that Yesway also looked for friction points along its signup process and has removed obstacles.

“We are taking a 360-degree view of our current program and have identified improvements to offer a better customer experience overall,” he explained. “We are shifting from a traditional feature-driven mindset, where we look at what cool or trendy things we can do with our customer segments, and are really flipping the script to understand the opportunities that exist outside of our four walls to drive incremental business outcomes. Those outcomes may be visits, gallons, baskets, or brand affinity overall. It is exciting given this is where the best retailers and lifestyle brands are already operating.”

INNOVATION SPOTLIGHT: bp

Electric vehicle charging is one of the company’s five strategic transition growth engines

Convenience stores are the go-to place for U.S. motorists to buy fuel. In fact, according to NACS, the channel sells 80 percent of the gasoline purchased here every year. So, with electric vehicles (EVs) growing in popularity — and government officials taking aim at the sale of gas-powered vehicles — it would make sense for c-store operators to be concerned.

But not bp. The energy giant is putting a focus on EV charging as one of its five strategic transition growth engines, in which it aims to significantly grow investment through this decade. Convenience, bioenergy, renewables and hydrogen are the other four.

According to bp, from 2023 to 2030, roughly half of its cumulative $55 billion to $65 billion transition growth engine investment will go into convenience, bioenergy and EV charging.

“Globally, 550 million people live within 20 minutes of a bp site. We are very well positioned as the world goes through this transition to take advantage of that and provide that service for the guests who would care for it. Across the U.S., we have close to 8,000 sites across different brand platforms — bp, Amoco, Thorntons, and ARCO and ampm on the West Coast. Now, we’ve added TravelCenters of America,” Greg Franks, senior vice president, Mobility & Convenience, Americas at bp, told Convenience Store News

“You look at a network like that, [which] is now on highway [and] off highway, we are very well positioned to invest in things that we believe customers are going to want in the future,” he continued. “Our ability to be in those locations is really interesting and that’s why we’ve announced that by 2030, we intend to put $1 billion into EV charging across the U.S.”

A cornerstone of that investment is bp’s partnership with Hertz to bring fast charging infrastructure to Hertz locations in major cities, including Atlanta; Austin, Texas; Boston; Chicago; Denver; Houston; Miami; New York; Orlando, Fla.; Phoenix; San Francisco; and Washington, D.C.

Several of these fast-charging installations will include gigahub locations. These are large-scale fast charging hubs that will serve rideshare and taxi drivers, car rental customers and the general public at high-demand locations, such as airports. The buildout will be informed by telematics from Hertz’s fleet of connected cars.

Further positioning the company to make sizeable inroads into EV charging is bp’s $1.3 billion acquisition of Westlake, Ohio-based TravelCenters of America (TA) earlier this year.

“TA is going to be very important. We’re very excited to have TA as part of the family. It’s an amazing legacy brand; they have done great work taking care of their guests and their customers and now, they’re well positioned on the highway corridors of the United States,” Franks said.

“Range anxiety is always a thing for an EV consumer, so for us to be able to go along these corridors and be there where the consumer needs to be, and then while they are charging, to be able to offer them the amenities that TA has,” he added. “For professional drivers, you have showers, laundry, business centers, truck scales and fitness facilities. For passenger car vehicles, we’ve got restaurants and convenience, and facilities that they can use. There’s a lot to do at a TA. It’s well positioned, and we believe that it’s very exciting for the future.”

INNOVATION SPOTLIGHT: Texas Born

The retailer encourages all eyes to be on its foodservice innovation

At Texas Born (TXB) convenience stores, directing customers’ attention to the brand’s unique, freshmade menu items begins before they ever set foot inside. From the fuel pumps to the building itself, everything serves a purpose.

“We start the messaging outside. You start seeing food at the pump,” said Kevin Smartt, CEO of Spicewood, Texas-based TXB, pointing to the food-centric digital and physical signage that drivers see as they gas up. “You see the outdoor dining facility. When you walk in, you get a very fresh-feeling store. You see a lot of different connotations of food.”

This is done in service of making food a central traffic driver, Smartt explained during a presentation at the 2023 Convenience Store News Convenience Foodservice Exchange event, held earlier this year in Nashville, Tenn.

“We focus pretty much 100 percent on the food,” he said.

On the menu innovation front, TXB launches a new limited-time offer (LTO) every quarter, which the team tries to plan a year in advance. LTOs generate consumer interest in trying something new, but they don’t have to add to ingredient costs. “We try to limit what we bring in. We want to use pretty much the same ingredients we have,” Smartt explained.

He pointed to TXB’s pizza’dilla as “a big winner for us” that only required additional sourcing of pepperoni and sausage, with all the other ingredients already available on the existing menu. Other LTOs, like TXB’s cubano quesadilla and pork ‘n mac sandwich, also have done well using minimal to no new ingredients.

The goal is for the team to constantly think about how to create opportunities for customers to shop and eat at TXB multiple times per week. “That’s our goal. We’ve got a lot of people coming to us two or three times per week, but we want them to eat with us two or three times a week,” Smartt said. “So, how do you keep your menu from being fatigued? This is one way that we do it.”

Other ways to innovate and differentiate include thinking local and launching occasion-based menu items. After Austin, Texas-based Yellowbird Sauce reached out to TXB, the brands collaborated on items like TXB’s fish taco during the Lenten season.

“I challenge you to think about who’s in your area,

what products are sold, what partnerships could you create,” Smartt urged.

Value is also a key differentiator as consumers try to get more bang for their buck. He noted that it is still very possible to include value options on the menu that are creative and high quality. Instead of a full chicken sandwich, retailers might offer slider sandwiches at a lower price point, such as TXB’s buffalo, BBQ and boom-boom pork sliders.

Finally, while technology may not be menu innovation, it is innovation that is important to foodservice. TXB customers can use the retailer’s mobile app to: order food; use loyalty points to receive special rewards or donate to charity; and take part in TXB’s beverage subscription program.

“You can order our food from our app, you can have it delivered and you can pick it up in the store. You can also order other convenience store items,” Smartt said. “And when you get in our app, we’re offering you other coupons and discounts on food in our app. We want to drive as much foot traffic or eyeball traffic to our app as possible because that’s how we learn about our customer.”

INNOVATION SPOTLIGHT:

Choice Market

The small operator designs each of its stores specifically for the neighborhood it serves

When Mike Fogarty developed the idea for Choice Market, he sought to redefine consumers’ notion of “convenience” with a format that provided the transaction time, product diversity and operating hours of a traditional convenience store, but married to a

product selection more along the lines of shoppers’ growing preferences for fresh, local and organic.

After three years in the making, Choice made its debut in October 2017. Fast forward to today, and the Denver-based retailer operates eight stores in total — four larger-format stores and four mini-mart locations.

Each of Choice’s stores is designed specifically for the neighborhood it serves, but generally, the company operates three store formats:

• The first is what the company refers to as its “urban market,” which ranges anywhere from 3,000 to 6,000 square feet and features a full kitchen, a larger selection of SKUs and a full seating area. This format is intended to accommodate longer dwell times and is situated mostly in urban, high-density, walkable neighborhoods.

• The second is what the company refers to as the “mobility center,” which features fuel pumps, electric vehicle (EV) supercharging, a bike share terminal, electric scooter charging stations, and solar collection on the canopy. It also offers autonomous checkout, order and pay ahead via the Choice mobile app, and traditional checkout.

• The third is a mini-mart format, which was designed for nontraditional retail spaces such as hospitals, airports and campuses, and features Choice:NOW, a technology that uses artificial intelligence and cameras to check out customers without the need for a cashier. This model ranges anywhere from 50 to 500 square feet and does not offer seating or a kitchen. These fully automated sites are intended to accommodate a less than three- to four-minute trip.

“[Each format] impacts the customer journey. It’s all about efficiency and speed. I think each format has its own kind of customer experience and journey, and that informs our design intent,” said Fogarty.

The shopping habits of today’s customers are changing. They are eating healthier, smoking less and driving less. This means store design has to evolve, too, he emphasized.

Fogarty believes Choice’s various store formats help it combat the headwinds that today’s convenience retailers face — inflation, limited labor, and theft — while giving customers what they want, which is their time back.

“Convenience is exactly that. For us, we feel that this is the future of shopping and what customers want in many cases, especially in convenience stores, is to be able to come in, get their products and get out as quickly as possible because they’re usually time strapped,” he said, noting that having an array of checkout options and the right product selection that aligns the customer experience with the store design is important for retailers that want to achieve an omnichannel experience.

Looking to the future, Choice plans to focus on scaling its automated mini-mart format. The retailer intends to build a national network that will be expanded through strategic partnerships with hospitals, apartment developers, venues, airports, EV charging stations and college campuses.

“A lot of our growth will be the smaller format, automated mini-marts. But as we look into other markets and other cities, we will certainly still build the larger-format urban markets and create somewhat of a hub-and-spoke model with those larger formats,” Fogarty said.

Not stopping there, Choice recently opened a

portable Nomad autonomous micro retail store in partnership with Juxta, a venture by Vontier Corp., parent company of Gilbarco Veeder-Root. A Juxta Nomad store can be installed and operational within just 12 hours.

Choice Market’s Nomad store initially deployed at the Renewal 2023 music festival in Buena Vista, Colo., from Sept. 21-24, where it was open to campers and festival-goers 24 hours a day. The store was then moved to a home base in Denver, where it now operates.

In terms of innovation, Fogarty sees Choice as being in a unique position as a small operator.

“I mean, it’s like a speedboat vs. a cruise ship. You can turn very quickly and react to the customer and innovate at a quicker pace than a larger organization that has a lot of levels typically,” he said. “I think we’re in a unique position where we are small and nimble and innovative and have a really great team that leads in this innovation, but also have good capital partners and other folks in the industry that we work with really to execute this vision for the company.” CSN

AN ALL-DAY AFFAIR

Products designed for snacking dominate this year’s Best New Products Awards winners

By Susan Durtschi

CONSUMERS ARE REDEFINING convenience, making snacking on the go an all-day affair, and convenience store suppliers in turn are filling the innovation pipeline with new products that meet the evolving eating and drinking habits of today’s consumers.

The winners of this year’s Convenience Store News Best New Products Awards skew heavily toward snacks, both center-store and foodservice category items. Many of them can be consumed during any daypart or even used as a substitute for a full meal. The snack categories received the largest number of entries in this year’s competition.

Beverages and foodservice items also make a strong showing in this year’s collection of honorees. In the beverage categories, fruit-flavored hard seltzers and malt beverages seize the day while in foodservice, the emphasis among the winning entries is on taste and flavor.

Big trends across several categories include Latino flavors and new twists on existing brands. Another notable trend this year is related to the economy. Many of the winning entries focus on value as consumers are cutting back on spending in today’s uncertain economic climate.

MOVE & WITH LOVE ARE WINNERS!

Convenience Store News has awarded Coca-Cola Move as Best New Product for Packaged Beverages: Carbonated Soft Drinks and vitaminwater zero sugar with love wins Best New Product in the Packaged Beverages: Enhanced Water Category. Congrats to both!

BEST NEW PRODUCTS $:$5'6

Overall, the 27th annual Best New Products Awards program places the spotlight on 33 innovative products introduced into the convenience channel in the past year. Products brought to the market between May 31, 2022 and June 1, 2023 were eligible for entry.

A panel of consumers judged the submitted products on value, convenience, appearance and packaging, along with attributes such as taste and ingredients for edible items. Judging was supervised and tallied by Past Times Marketing, a New York-based consumer research and product-testing firm.

The 2023 Best New Products Awards winners are:

sales, but also brings a new drinker demographic into flavored malt beverages in convenience. Our tasters like its “vibrant” flavor.

ALCOHOLIC BEVERAGES: HARD SODA

Cantaritos By Jarritos – Hard Soda Variety Pack, Anheuser-Busch

Cantaritos By Jarritos boasts the great flavor of Jarritos Mexican soda that has been around since 1950, but also contains 5 percent ABV. The beloved Latino soda brand is known as the “official drink of tacos” and this alcoholic version is authentic with a buzz. Presented in glass bottles that have a nostalgic look, Pineapple and Fruit Punch scored the highest with our testers.

ALCOHOLIC BEVERAGES: CHELADAS

Bud Light Chelada Tajin Chile Limon, Anheuser-Busch

Anheuser-Busch introduced an innovative canned version of a popular Mexican beer cocktail. A chelada is a way to serve beer in Mexico by combining light beer, fresh lime juice and a pinch of salt in a glass. This version is bursting with flavor and mildly spicy with Tajin and lemon citrus added to the mix. Our testers liked the taste and called it a refreshing summer drink.

ALCOHOLIC BEVERAGES:

FLAVORED MALT

Twisted Tea Pineapple, Boston Beer Co.

Twisted Tea Pineapple is a smooth hard iced tea made with real brewed black tea and a tropical twist of pineapple flavor. Noncarbonated and naturally sweetened with a 5 percent ABV, it’s designed to be “your favorite iced tea with a juicy twist.” According to the company, the beverage not only drives 24-ounce can

ALCOHOLIC BEVERAGES: SELTZER

High Noon Tequila Variety Pack, E&J Gallo Winery

Tequila enthusiasts can enjoy a new, light, ready-to-drink canned cocktail from High Noon. The innovative tequila seltzer made with real Blanco tequila and real fruit juice is only 100 calories per can. It is gluten free, low sugar and perfect for dietary restrictions. The variety eight-pack includes two Strawberry, two Lime, two Grapefruit and two Passionfruit cans. Our panelists said it is incredibly easy to drink and the carbonation keeps it from tasting cloyingly sweet.

ALTERNATIVE SNACKS: BARS

Chex Mix Peanut Butter Chocolate Bars, General Mills

Chex Mix Peanut Butter Chocolate Bars are a delicious combination of Chex pieces, pretzels, peanut butter and chocolate. They are a chewy on-the-go bar perfect for after school or as a quick snack, each one individually wrapped. Our judges cited the right combination of textures and crunch. Additional high marks were given for smart packaging.

ALTERNATIVE SNACKS: FRUIT Cranberry Sweeties, Oh Snap! Pickling LLC

Consumers are continuously looking for new healthy snacks to try. Packaged for on-the-go consumption, Cranberry Sweeties fill the better-for-you niche. Unlike common cranberries, these are infused with a flavorful juice blend, resulting in a unique, flavor-packed fruit snack. They could be a great add-on to foodservice cold cases in convenience stores.

CANDY

Twizzlers Gummies, The Hershey Co.

Twizzlers Gummies are a new twist on an all-time favorite. A variety of colorful, smooth and chewy gummy pieces come packaged in an eye-catching 7-ounce bag. Their tasty flavor combinations include grape and cherry, lemonade and cherry, and peach and cherry. According to our panelists, each bag contains approximately 35 “nice and soft pieces with great flavor.” The gummy category is outpacing the sweets category, The Hershey Co. noted, and Twizzlers Gummies have successfully reached a younger, incremental consumer.

CBD Buck’A Buzz, J and A Consumable Products

Buck’A Buzz THC gummies allow consumers to test out the product without having to shell out a large amount of cash. The $5 price point for the five-pack of gummies is value priced. Made in the United States and third-party lab tested in the U.S., each gummy contains 10 milligrams of THC. The manufacturer says these gummies are fully legal and comply with federal laws for products that contain 0.3 percent THC or less. Our testers liked the price point and that the package size easily fits in your pocket.

FOODSERVICE: BREAKFAST

EDIBLE GROCERY

Cucumber

Chili Lime Beer Salt, Twang Partners LLC

Dressing beer with salt is a long-time tradition that originally came from Mexico. Cucumber Chili Lime Beer Salt from Twang gives consumers the opportunity to add Latino flavor to their favorite beer or hard seltzer. This niche item is a great add-on to an alcoholic beverage sale, and a cross-cultural item. The beer salt is available for merchandising on the front counter and on eye-catching clip strips on cooler doors.

FOODSERVICE: LUNCH

Chester’s New Everything Fried Chicken Sandwich, Chester’s Chicken

The public’s enthusiasm for a good chicken sandwich has not slowed down. Chester’s New Everything Fried Chicken Sandwich is a marinated and double-breaded whole breast filet that is topped with Chester’s tangy sauce and crunchy crinkle-cut dill pickles, and served on a Martin potato roll. Chester’s relaunched this fan favorite with some tweaks and the result is a juicier, more flavorful version of the original. Our testers agreed it is moist and flavorful.

Jimmy Dean Sausage, Egg & Cheese Roll-Up, Tyson Foods

Tyson Foods introduces a new way to eat breakfast. At just 3.5 inches long, the Jimmy Dean Sausage, Egg & Cheese Roll-Up is easy to hold and does not fall apart while being consumed. Made with a flaky biscuit, the roll-up contains a mix of Jimmy Dean breakfast sausage, real eggs and cheese. It offers quick heating and a four-hour hold time. Our panelists gave it high marks for flavor, portability and convenience.

FOODSERVICE: SNACK

Cheesy Pull Apart Flatbread, Rich Products Corp.

This cheesy flatbread is easy to bake and pull apart along precut impressions to separate into soft, individual sticks or serve as a shareable snack that consumers pull apart themselves. It is ideal for c-stores that want to serve a delicious, fresh-baked snack but are challenged

by limited labor and space. Topped with mozzarella, cheddar, provolone, parmesan, Romano and asiago cheeses, and sprinkled with Italian herbs, the flatbread can be paired with dipping sauces. Our testers felt that the taste of this product is a cut above traditional c-store fare.

100 percent real, creamy and rich ice cream. The cookie sandwich brings the ice cream parlor right to a consumer’s own freezer. Judges noted that the sandwich has a great crunch and is the perfect size for a quick treat.

FOODSERVICE: PACKAGING Anchorware Reusables, Anchor Packaging

Durable yet lightweight, Anchorware Reusables are microwaveable and dishwasher-safe containers that have one-step push button lids. These containers deliver reusability without sacrificing convenience, and their design draws attention to the prepared food within. Our panelists liked the leakproof lid and noticed right away that these were “keeper” containers — not your ordinary foodservice packaging.

GENERAL MERCHANDISE BIC Djeep Lighter, BIC USA Inc.

Djeep lighters are unique in form and function with their rectangular tank that boasts up to 3,500 lights. The product comes in distinctive contemporary designs and embossed wraps that provide an appealing tactile quality. Djeep lighters enable consumers to trade up when purchasing a lighter. Our testers loved their rectangular shape and cool designs, along with their long-lasting lights.

FROZEN NOVELTIES

M&M’S Cookies and Cream Ice Cream Cookie

Sandwich, Mars Wrigley

The M&M’S Cookies and Cream Ice Cream Cookie Sandwich delivers a multitexture taste experience that leans into indulgence. The treat combines M&M’S chocolate candies, baked chocolate cookies, cookie pieces and

HEALTH & BEAUTY CARE Vitamin Energy Shot, Vitamin Energy

Vitamin Energy is a better-for-you energy shot that is super-infused with both vitamins and caffeine, providing an all-in-one solution for those looking to support their immune health and increase their energy levels. At less than 2 ounces, it is packed with vitamins B12 and B6, along with niacin, L-carnitine and potassium. Natural caffeine, green tea and citicoline boost stamina and clarity without the crash-producing effects of added sugar or carbohydrates, and no bloat. It is designed to last seven-plus hours. Our testers reported that the Vitamin Immune+ variety had great flavor, and the zero calories was a plus.

EASY. CHEESY. DELICIOUS.

CHEESY PULL APART FLATBREAD

A grab ‘n go essential. Retail-ready Cheesy Pull Apart Flatbread delivers a delicious bake-athome appetizer, pizza accompaniment or late-night snack anyone can pull off.

To learn more, visit richsusa.com/pizza.

RETAILREADY!

HEALTHY SNACKS Rockit Apples, Rockit Global Ltd

Apples are full of concentrated energy and nutrition, and these miniature apples-to-go from Rockit Apples are a hot new item. The distinctive look of the 2-inch apples in clear tubes sets these apples apart, but they are still full of flavor and crunch and provide a powerful punch of fiber and antioxidants. The fact that they are packaged and not loose is a definite plus in these times of food safety concerns. Our panelists gave high marks to the packaging innovation, as well as the size and flavor of the apples.

LIQUOR Twisted Tea Whiskey, Beam Suntory

Twisted Tea Whiskey is brewed with real tea, according to its maker, as it works to preserve the original flavor of Twisted Tea Hard Iced Tea. The product is an innovative partnership between Beam Suntory and Boston Beer Co., and can be an add-on to the popular Twisted Tea sale. Twisted Tea Whiskey comes in 50-milliter, 750-milliter and 1-liter bottles with a 32.5 percent ABV or 65-proof label. “Smooth” and “boozy” were the two words most often used by our evaluators.

OTHER TOBACCO PRODUCTS: CIGARS Game Leaf Dark Rum, Swedish Match

After seeing the success of the April 2022 launch of Game Leaf Dark, Swedish Match recognized the need to give consumers a limited-time offer (LTO) on a dark

rolled leaf cigar. Consumer testing showed that Dark Rum was the perfect flavor profile to introduce as an LTO. The product was offered in three price points to ensure flexibility at all retail locations: two for $1.29, an unpriced two-pack, and five for $2.99. Game Leaf Dark Rum was the second LTO to include the Game Leaf Rewards program on the back of the pouch.

OTHER TOBACCO PRODUCTS: SMOKELESS Mojo Balanced Energy Pouch, E-Alternative Solutions

Mojo pouches offer a unique approach to OTP by providing a hands-free, convenient way to get your energy, vitamins and herbs all in one place. Each pouch contains 50 milligrams of caffeine derived from coffee beans, as well as a proprietary blend of functional ingredients

BEST NEW PRODUCTS

BEST NEW PRODUCTS

such as ginseng root, yerba mate, B vitamins and amino acids. Just place one pouch between the lip and gum for a boost that lasts up to three hours. Mojo pouches are available in a wide range of flavors that are sugar free and have zero calories. Each can contains 15 pouches.

PACKAGED BEVERAGES: ENERGY DRINKS

Gym Weed Adaptogen Energy, Gym Weed

PACKAGED BEVERAGES: ENHANCED WATER

Vitaminwater Zero Sugar With Love, The Coca-Cola Co.

Boasting a dynamic flavor, Vitaminwater Zero Sugar With Love is the first of its kind and aims to appeal to teens and adults looking for new experiences and sensations to liven up their day. The raspberry and chocolate flavored beverage is nutrient rich, zero sugar and electrolyte enhanced, making it perfect for on-the-go hydration. Our panelists liked the raspberry mashup and said they would welcome more flavors of zero sugar Vitaminwater.

PACKAGED BEVERAGES: CARBONATED SOFT DRINKS

Coca-Cola Move/Zero Sugar Move, The Coca-Cola Co.

Generation Z is a must-win audience for c-stores, and this limited-edition carbonated soft drink delivers bold flavors and the excitement of discovery in partnership with Grammy-award-winning artist Rosalia. Embracing the contrasts of her personality through packaging and taste, Coca-Cola created this unique flavor, which is a mixture of Coke with vanilla flavors and a bit of muskiness. Coca-Cola Move leverages cultural macro trends and is a triple threat with its bold taste, interactive experiences and connection to music. The beverage received high marks from our panelists for its packaging and trend-forward taste.

Gym Weed Adaptogen Energy pairs caffeine from green tea with ashwagandha, lion’s mane and L-theanine to deliver focused energy without the jitters or crash. The blend of 700 milligrams of plantbased functional ingredients provides a balanced, chill energy. Available in craveable flavors such as Rainbow Sherbet, Candy Shop and Pear Pineapple, its combination of energy with functional benefits appeals to the energy drink customer looking for a new fix.

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PACKAGED SWEET SNACKS: DOUGHNUTS

Lemon Cheese Cake Donuts, Bon Appetit

Bon Appetit seeks to bring new customers into the packaged sweet snacks category who are looking for new flavor profiles. This Lemon Cheese Cake variety fills the niche for a new and unique flavor in the doughnut segment. Valued priced, the six-pack of mini doughnuts is an impulse item that can be grabbed to savor with your morning coffee. Our panelists scored the lemon flavor highest, but also liked the blueberry version.

PACKAGED BEVERAGES: RTD COFFEE DRINKS

Split Shift Swift Kick Blend Cold Brew

Unsweetened, Harbor Foods

Split Shift Coffee was developed specifically for the convenience store consumer, and its new Split Shift Cold Brew is a perfect addition to the cold vault with its slow brewed, smooth taste. This innovative variety of its signature Swift Kick blend truly packs a kick with more than 350 milligrams of caffeine in a 12-ounce can. Like all Split Shift coffee, the cold brew is roasted, brewed and canned in the Pacific Northwest. Our testers loved the convenience — just chill, shake and drink.

General Mills Honored with Three Convenience Store News BEST NEW PRODUCTS AWARDS

ALTERNATE SNACK BARS: King Size Peanut Butter Chocolate Chex MixTM Bars

Responding to consumers’ number one request for larger size bars versus existing choices, General Mills created King Size Peanut Butter Chocolate Chex Mix Bars. These highly craveable, sweet-and-salty treats are producing big results.

• 87% of consumers intend to repurchase.

• 90% view the bars as new and different from what’s been offered.

• Eating occasions span multiple dayparts with 49% consuming in the morning, 75% in the afternoon and 35% in the evening.

• King Size Peanut Butter Chocolate Chex Mix Bars appeal across all demographics—adult men, women and children.

Ibotta Insights: Chex Mix Bars

Early User Study, April 2022

SALTY SNACKS: Old El Paso TM Fiesta Twists

This wild new twist on salty snacks addresses convenience store shoppers’ quest for hot and spicy flavors in the booming corn chip segment of salty snacks.

• Convenience store corn chip sales hit $664 million with a 3-year CAGR of 13.6% that outpaces the volume gains in total Salty Snacks.1

• The Old El Paso brand has a 41% household penetration — 98% are already shopping the Salty Snack aisle.2

• Old El Paso Twists fill a gap in the market with crunchy textured, bold Mexicaninspired flavors and unique shapes.

1 Nielsen CONV. Dollar Volume, Latest 52-weeks WE 6/10/23

2Nielsen Panel Data FY22

PACKAGED SWEET SNACKS: Dunkaroos TM Cinnamon Toast CrunchTM

The pairing of the flavor of the beloved Cinnamon Toast Cereal with Dunkable Frosting puts Cinnamon Toast Crunch Dunkaroos in a class of their own with a taste that can’t be duplicated.

• Kid Pleasing: Cinnamon Toast Crunch is #1 in cereal equity.1

• Built-in Recognition: Cinnamon Toast Crunch has a household penetration of 22 million.2

• A perfect snack to help disconnect from overscheduled, overworked and over-pressured lives.

Dunkaroos Combination consumer study, June 2022

PACKAGED SWEET SNACKS: COOKIES

Dunkaroos Cinnamon Toast Crunch, General Mills

Dunkaroos Cinnamon Toast Crunch combines consumers’ love of the beloved cookie and icing combo from the 1990s with one of their favorite cereals. Featuring vanilla cookies and Cinnadust frosting, the new product gives retailers a fun option for their packaged sweet set that features two recognizable and beloved brands. Judges commented on the product’s indulgence, calling it a “real treat” and a “familiar nostalgic snack.”

Big Dipper makes its Pop Crunch is special. Each popped kernel is large and uniformly coated, making it easy to pop into your mouth from the bag. Our panelists tried two varieties: Almond Butter Caramel and Peanut Butter Caramel. Each flavor was pretty equal in high marks for taste depending on the tester’s preference for peanut butter or not. They enthusiastically noted that the pieces do not stick together in the bag or make their fingers sticky unlike other coated popcorn.

PACKAGED SWEET SNACKS: OVERALL

Kazbars, Hostess Brands Inc.

Kazbars is not a candy bar, nor is it a piece of cake, but rather it’s a multitextured stacked bar. The new Hostess innovation combines layers of soft chocolate cake, crème, candy crunch and caramel. The bars are covered in a rich chocolate-flavored coating and topped with a drizzle. The product is ideal for an afternoon reward or on-the-go treat. Our testers said they were “decadent” and liked the Kazbars so much that they asked for seconds.

SALTY SNACKS: READY-TO-EAT POPCORN

Pop Crunch, Big Dipper Food Co.

Popcorn with a crunch is not a new idea, but the way

SALTY SNACKS: PORK RINDS

Old-Timey Butterscotch Flavor Pork Rinds, Pork King Good

In an era where consumers increasingly seek low-carb and keto-friendly alternatives, these butterscotch flavored pork rinds provide a guilt-free way to indulge in a sweet yet crunchy treat. By offering a sweet version of a typically savory snack, Pork King Good provides a oneof-a-kind option. Each serving of these dessert-flavored pork rinds has only 1 gram of sugar and carbohydrates. Our testers marveled at this innovative salty-and-sweet flavor addition to the pork rinds category.

SALTY SNACKS: TORTILLA CHIPS

Chipoys Spicy Ranch, Chipoys

Consumers are looking for fewer ingredients in their products, but not wanting to lose the taste and crunch that salty snacks provide. Chipoys is able to deliver this

with its authentic Mexican rolled corn tortilla chips. The spicy ranch variety has a nice garlic and onion flavor. Our panelists were quick to enjoy the spice and crunch, and wanted to know more about the brand.

750-milliter bottles of Pink Moscato, Chardonnay and Cabernet Sauvignon priced under $8. All three varieties earned the distinction of being voted a “Best Buy” by Tastings.com and Wine Enthusiast.

SALTY SNACKS: OVERALL Old El Paso Fiesta Twists Queso, General Mills

The Old El Paso brand, famous for its tasty salsa, has ventured into the salty snacks market. Old El Paso Fiesta Twists Queso are loaded with the smooth taste of queso cheese and the salty flavor of corn chips. They are rather light and airy for a corn chip, according to our testers, and the twist is not too tight. The panel also liked the product’s spicy crunch.

WINE Sunshine Bliss Wine, Circle K Stores Inc.

Private label wine appeals especially to millennials and Gen Z who have shown a tendency to be budget conscious while seeking out the best mix of value and quality. Circle K’s Sunshine Bliss private label wine exceeded the expectations of our testers with

OVERALL INNOVATION

Reese’s Dipped Animal Crackers, The Hershey Co.

Reese’s is a top brand in the c-store market, so it makes sense that the company came out with the cool combo of Reese’s Dipped Animal Crackers. Each 4.25ounce bag features 13 different animal shapes. These bite-sized animal crackers are covered in peanut butter candy and dipped in milk chocolate to give consumers the delicious Reese’s taste in every bite. Dipped snacks of all sorts have been trending over the past year, and our testers said this one is irresistible. CSN

THE SELECTION PROCESS

panel of consumers judged submitted products on value, convenience, appearance and packaging, along with attributes such as taste and ingredients for edible items. Judging

A

was supervised and tallied by Past Times Marketing, a New York-based consumer research and product-testing firm.

CHIPOYS Spicy Ranch is the WINNER OF BEST NEW PRODUCT AWARD in the Salty Snacks, Tortilla Chips category!

DIFFERENTIATING THROUGH PRIVATE LABEL

A growing number of convenience stores are boosting their assortments of private brands to offer shoppers unique, high-value products

By Greg Sleter

SALES OF PRIVATE BRAND products across numerous categories continue to grow as mass merchants, grocery stores and home retailers, among others, have their respective product development pipelines running at full speed.

Joining this movement are convenience stores. Several leading c-store chains either have in place or are ramping up strategic plans in an effort to boost their assortment of private label products. And their motivation is clear: They’re not looking to simply offer their shoppers lowerpriced national brand equivalents (NBEs). They are using this opportunity to develop proprietary products that will further build loyalty with those walking through their doors.

When looking to grow private label assortments, industry experts say it's important for c-store operators to focus on how they brand their

products, and then how the products are marketed to consumers.

“It has to start with the brand and offering a clear picture of what the brand stands for,” said Kay Segal, founding partner of Business Accelerator Team, a consulting agency based in Scottsdale, Ariz. “Once defined, that leads right into the marketing strategy to promote the brand. And it’s important to go beyond just having an alternative water or alternative candy selection.”

Convenience store retailers like Spicewood, Texasbased Texas Born (TXB) are clear in their desire to develop private brand assortments that offer products not found at other retailers and provide shoppers something different than the national brand items already on their shelves.

“Our goal when developing our private label assortment

was not to be necessarily sourcing products,” said Kevin Smartt, CEO of TXB. “We are trying to offer products that are high quality and unique either in flavor or in packaging size. We want to offer something that gives us some differentiating factors from the other CPG brand we are selling.”

With those guardrails in mind, TXB’s private label assortment — which is sold under the TXB brand — has grown to the point that today, the retailer has a strong pipeline of products that includes items such as meat snacks, juices, water, a rehydration beverage line and coffee.

Similar to TXB, the private brand product development effort at Love’s Travel Stops has been focused on developing unique products that allow the retailer to differentiate from its competitors. But first, team members focused on growing the company’s private label assortment developed a communication strategy to raise awareness of own brands internally, said Casey Creegan, manager of merchandising at Love’s Travel Stops, based in Oklahoma City.

“We had to educate folks within our company as to why we needed private label products, their importance, and why it is important to focus on quality when we do private label, especially when we’re putting the Love’s name on these items,” she said.

A key product in the retailer’s private brand assortment is its bottled water program, sold under the Love’s brand. The water, Creegan said, has an eye-catching label design and is one that shoppers often include in photos they post to Instagram. “It’s been a good branding and marketing piece for us,” she added.

At Casey’s General Stores Inc., its growth in private brands over the past three years stems largely from a strategic plan that was put in place in early 2020. In spite of the challenges the pandemic presented, the Ankeny, Iowa-based convenience store chain has charged forward and continues to see growth.

“We knew it was really critical for us to continue to offer affordable, high-quality choices to our guests,” said Tom Brennan, chief merchandising officer at Casey’s. “Our customers know us for our high-quality pizza that we make from scratch, so we know that anything we put the Casey’s brand on absolutely has to deliver on quality.”

Today, Casey’s has hundreds of private brand products in more than 27 categories across the store. And differing from others in the c-store space, Casey’s opportunistically has developed sub-brands for specific product categories. For example, its selection of UP water is positioned as a premium product in the category. Casey’s also features a selection of ice cream in pint sizes sold under the Happyness By The Pint brand.

“Most of our private label products are sold under the Casey’s brand, and we also include the Casey’s name on our sub-branded products as well,” Brennan said.

Driving Sales

Based on his experience, TXB’s Smartt said there are several factors to the success of private brands. They include strong packaging design, product quality and the uniqueness of flavors offered.

The CEO noted that he’s received positive feedback directly from shoppers during his visits to

Casey's has hundreds of private brand products in more than 27 categories across the store.

stores across the chain. “People have stopped me to tell me how much they love our rehydration products or other unique items we have developed,” Smartt said. “It’s so exciting to get that type of input directly from our shoppers. It tells me that our team is on the right pathway.”

Echoing Smartt, Creegan said Love’s private brand success stems mainly from the company’s focus on providing quality products. In fact, the retailer puts quality ahead of price as part of its effort to ensure customers have quality products from which to choose.

“We would rather pay a little higher price and take a little bit of a margin hit to make sure we have topquality products in our private label assortment,” she said. “We also work with our analytics team to make sure we are getting the prices right on our items.”

At Casey’s, Brennan attributes the company’s success in private label to a process that is disciplined. “You have to make sure that you have some non-negotiables when it comes to products that you’re going to put your brand on,” he said. “And that, obviously, starts with quality. And then you also have to make sure that the product pops on the shelf.”

With a focus on doing private label products that are not just NBEs, Brennan said Casey’s works to identify white spaces across all categories that provide opportunities to develop unique items. When an opening is targeted, the company goes through a review process to see what type of products it can get in front of its shoppers.

“We know not everything is going to be a hit,” he said. “But you will never know what will be a success until we get the products in stores.”

Future Expansion

With success comes a desire for future growth, and the executives at TXB, Casey’s and Love’s are each looking

forward to new opportunities to grow their respective private brand assortments.

According to Smartt, TXB has identified several categories for growth including energy drinks, nuts and seeds, trail mix, granola bars, a new line of candy, and additions to its popular general merchandise assortment that includes shirts and hats.

“We are always looking and always trying to develop, and we work to expand the list of products in our pipeline,” he said. “And we’re also like any manufacturer of products. We go back and evaluate our existing products to see what is working and work to take out the slower movers. We’ll bring in new flavors to test and keep what works and what doesn’t.”

Creegan and her team also have their eye on new opportunities, which includes expanding nonconsumable product offerings such as mobile comfort (neck pillows and blankets) and various items in the travel gear category. Also on her radar in consumables are a variety of products including jerky, cold press juice, sunflower seeds and homestyle pretzels.

Brennan is bullish on what’s ahead for private brands at Casey’s, calling the future “very bright and exciting.” Store brand products currently account for more than 9 percent of unit sales and gross profit dollars in the company’s grocery and general merchandise unit, and that number is expected to grow.

What’s the next big thing at Casey’s in private brands? Liquor.

“We’re excited about what the initial launch is going to look like and the future opportunities in the [liquor] category,” Brennan said. “As we continue to grow our private label assortment, we will continue to leverage our brand because we know our customers understand that products sold under the Casey’s brand provides them with high-quality, affordable products.” CSN

A key product in Love's private brand assortment is its bottled water program.

Smoke(less) Signals Rising

Modern oral nicotine continues to show impressive growth, which is expected to boost the entire segment moving forward

By Renée M. Covino

ARE YOU ONBOARD for a smokefree and smokeless future? The tobacco companies are setting the pace and potentially, your backbar space.

In November of last year, Philip Morris International completed its acquisition of Swedish Match, providing the opportunity to significantly accelerate its smokefree transformation and product portfolio with leadership positions in modern oral nicotine (ZYN).

Meanwhile, Altria Group Inc. has stated its vision of “Moving Beyond Smoking.” The company aims to responsibly lead the transition of adult smokers to a smokefree future with increased smokefree product research, development and regulatory preparation. Altria believes taking action to transition millions to potentially less harmful choices is a substantial opportunity for adult tobacco consumers, its businesses and society.

The overall smokeless tobacco segment, including modern oral nicotine, is predicted to grow about 6 percent for 2023, according to Goldman Sachs Global Investment Research. But that is just a

small part of the picture. Convenience store operators would be wise to observe some key smokeless signals that are currently rising.

For example, the traditional smokeless segment is expected to decline between 3 percent and 5 percent in 2023, according to data from Management Science Associates Inc. (MSA), a Pittsburgh-based company focused on analytics and informatics.

“Overall, this reflects that most consumers have returned to the work environment, following the pandemic, where it is not as easy to consume the product, along with the effects of some cannibalization from the nicotine pouch/modern oral category,” noted Don Burke, senior vice president of MSA.

He cites the “bright spot” in traditional smokeless as the deep discount segment, which MSA shows to be growing at nearly 2 percent this year.

“This trend reflects the continuing impact of economic pressures on the tobacco consumer: increased inflation, high gasoline prices, and the elimination of the government financial incentives that were in place during the pandemic,” Burke added.

The smokeless tobacco alternatives segment, on the other hand, is showing impressive sales growth. “In fact, the rate of growth of the alternative smokeless category

is currently stronger than it was for the nicotine pouch (modern oral) category at a similar stage in the development of both products,” Burke told Convenience Store News. “While the alternative smokeless category is still far smaller than the traditional category, it is certainly a product category that retailers should be stocking and continuing to monitor.”

During a recent National Association of Tobacco Outlets webinar entitled “Current Trends and What’s Ahead in Tobacco & Nicotine,” Goldman Sachs managing director and senior consumer analyst Bonnie Herzog explained that the modern oral tobacco category is still quite small — representing less than 30 percent of the total oral tobacco category — but it is growing rapidly.

“I do expect that slice of the pie to continue to expand in the next five to 10-plus years, especially with Philip Morris entering with Swedish Match and ZYN, and everything Altria is doing with on! And we keep having more innovation on that front,” Herzog said.

The Smokeless Consumer

The smokeless alternatives consumer appears to be different than the traditional smokeless tobacco user.

“I think why this category is attractive [is] it appeals to a younger, maybe more affluent, better educated consumer and also the margin profile is much more attractive,” Herzog noted. “This is where

I’m hearing that more retailers are allocating space to this category because it’s simply driving volume, sales and, certainly, profitability.”

Along the same lines, Alex Morrison, senior business analyst for Wilton, Conn.-based Cadent Consulting Group, pointed out that the benefits of the modern oral category have been promoted to a younger demographic (especially males 18-44) as potentially lower health risks, lower price points, less social stigma, no offensive odors and convenience.

“It has also been heavily popularized on social media, including TikTok,” he said.

Whereas tobacco suppliers and retailers have traditionally been satisfied with marketing tactics that include pricing, promotion, visibility and availability, the alternative segment of smokeless is lending itself to a more digitally focused strategy.

“The more progressive and highest-performing retailers in our universe have been impressed with our ability to leverage consumer insights from our direct-to-adult-consumer online database and our ability to leverage digital capabilities well beyond those of more traditional products and brands,” said Matthew Hanson, chief financial officer/chief growth officer of Black Buffalo, a modern oral nicotine product that mimics moist smokeless tobacco, but without the tobacco leaf. It is available in long cut and pouches.

Hanson advises c-store retailers to: “Do your homework and seek products that match up first with your adult consumers, not your planograms. We have seen the very highest-producing retailers focus on traditional as well as digital activation, including in-store screens, email campaigns, SMS programs, loyalty programs and apps to drive growth in the category.”

What’s to Come

Once more alternative smokeless products make it through

The purchase of Swedish Match and its ZYN nicotine pouch product line accelerated Philip Morris International’s smokefree transformation.

the U.S. Food and Drug Administration’s (FDA) premarket tobacco product application (PMTA) process — which is required by law for a tobacco product to be authorized for sale in the United States — more retailers are expected to come onboard.

But for now, “regulatory uncertainty will keep a large portion of retailers more conservative until resolved,” according to Hanson.

Herzog agrees that for smokeless and other nicotine innovation (such as heatnot-burn) to truly move forward, much will depend on how fast the FDA is reviewing PMTAs.

As more retailers begin to carry a larger assortment of alternative smokeless products and consumers become educated and repeat their purchases, the segment is expected to continue achieving strong sales growth over the next several years.

“This does not spell gloom for the traditional [smokeless] category that will continue to appeal to the dedicated

2023 Growth Outlook for Smokeless Brands

Copenhagen: 0%

Grizzly: -1%

Skoal: -2%

ZYN: +23%

On!: +26%

Velo: -1%

Rogue: +17%

Source: Goldman Sachs Q2 2023 Nicotine Nuggets Survey

tobacco consumer,” Burke maintained. “While today, the traditional category is slowly declining, the alternative products being introduced will invigorate consumer attention to the entire category.”

Thus, he urges retailers to stock items from both sides of the smokeless segment to meet existing consumer demand, as well as new, emerging demand.

Herzog said there is the potential for “things to get quite interesting, exciting.” CSN

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EnsembleIQ is the premier resource of actionable insights and connections powering business growth throughout the path to purchase We help retail, technology, consumer goods, healthcare and hospitality professionals make informed decisions and gain a competitive advantage.

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Distinguished Deliciousness

Kum & Go leads the 12th annual class of Foodservice Innovators Awards winners

By Angela Hanson

SUCCEEDING in convenience foodservice means never stopping. Meeting the everevolving preferences of consumers while competing for their attention and share of wallet, both in and outside the channel, requires a relentless focus on quality, consistency and innovation.

Winners of the 2023 Foodservice Innovators Awards have proven their ability to think outside the takeout box, and offer creative and tasty prepared food and beverages that make them industry leaders. Each year, Convenience Store News recognizes c-store retailers that demonstrate the highest levels of quality, service and inventiveness in the foodservice category.

Winners are chosen by the CSNews Foodservice Advisory Council, a panel of foodservice experts from the retailer, supplier, wholesaler, research and consulting fields. First launched in 2012, the latest class of Foodservice Innovators Awards honorees are retailers with sterling reputations that have proven their excellence in a variety of ways.

They were celebrated earlier this year amongst their peers at the 2023 Convenience Foodservice Exchange event hosted by CSNews in Nashville, Tenn.

FOODSERVICE

INNOVATOR

OF THE YEAR: Kum & Go

Prior to its acquisition by Salt Lake Citybased Maverik — Adventure’s First Stop, Des Moines, Iowa-based Kum & Go LC took its foodservice program from good to great with the launch of a fresh, madeto-order menu, which began testing at

select Arkansas stores in 2021 before expanding with improvements and updates based on pilot program findings.

With the concept of “Real, Fresh, Fast Eats” at its foundation, Kum & Go’s new program features premium ingredients plus fresh toppings and sauces for stackers, bowls and other menu items that can be enjoyed during all dayparts.

Kum & Go's "Real, Fresh, Fast Eats" menu features premium ingredients and can be enjoyed during all dayparts.

Jac Moskalik, vice president of food innovation, stated that the menu supports Kum & Go’s “democratizing healthy initiative within the convenience space” by giving customers something different and healthier without sacrificing quality and speed of service.

“They have totally transformed their foodservice menu,” said one judge. “[They] culled back on traditional items and grab-and-go; have introduced new menu items focused on fresh ingredients, made-to-order, flavor and variety with a good-for-you theme; [and are] going after new customers while maintaining core customers.”

The retailer also got creative in marketing its new menu. In addition to highlighting it in a “Happy Food/Sad Food” campaign in traditional media such as television, radio and billboards, Kum & Go launched its first-ever food truck in Des Moines to promote sales and trial. It also wrapped sister company Solar Transport’s tanker trucks in graphics promoting the program.

Kum & Go’s classic grab-and-go items like burritos, pizza and bakery items remain on the menu and will become focus areas for future innovation and enhancements. Additionally, the retailer has added c-store flair to more premium items such as topping its mango pork stacker with Takis chips and adding Corn Nuts to its chimi chicken bowl.

PREPARED FOODS INNOVATOR OF THE YEAR: Dash In Food Stores

La Plata. Md.-based Dash In Food Stores, a subsidiary of The Wills Group, elevated its foodservice reputation by debuting a comprehensive, proprietary prepared food offer that competes and offers innovation across all dayparts. From sweet to savory, and from breakfast to a late-night snack, Dash In embraced versatility that it could execute at a high level.

“A smashed burger at a c-store? Yes! A French bakery and fresh fried doughnut operation? Absolutely! Dash In is serious about their food,” remarked one judge.

The retailer’s efforts to create a distinctive foodservice identity are even more impressive considering that some of its most interesting offerings were created during a period of intense supply chain challenges. Dash In’s Stackadilla, which features multiple quesadillas stacked atop each other, uses the same ingredients as a standard quesadilla but captured consumer interest due to its unique presentation and became a best-seller.

Benjamin Lucky, category manager of foodservice, said that while Dash In embraced the need to work within increased limitations, it was not desperation but rather a creative mindset that led to the Stackadilla’s success.

“They have gone beyond simple ‘evolution’ to catapult into something truly ‘revolutionary’ by taking a traditional c-store concept and through innovation, evolving it into a foodservice powerhouse,” another judge observed.

Dash In, which was previously honored as the Foodservice Innovator to Watch in 2018, also makes a point of offering items that fit at different points along the health spectrum — such as vegetarian flatbreads — while still catering to what most consumers want and staying practical in what it can offer. Its goal is to give people options.

The Stackadilla from Dash In was born out of creativity during a period of intense supply chain challenges.

DISPENSED

BEVERAGES

INNOVATOR OF THE YEAR:

Alimentation

Couche-Tard Inc./Circle K

Couche-Tard’s Circle K chain took home a third Foodservice Innovators Award for its beverage offering — this time as inaugural winner of a newly combined award for hot, cold and frozen beverages. Based in Laval, Quebec, the company previously won Hot Beverages Innovator of the Year in 2021 and 2016, and overall Foodservice Innovator of the Year in 2020.

The convenience store giant stirred up excitement with its exclusive Mtn Dew Purple Thunder flavor, the result of a collaboration with PepsiCo Inc. The retailer first offered Purple Thunder, which combines the tangy tastes of berry and plum, in 20-ounce bottles and as a Polar Pop fountain drink. However, its popularity prompted Circle K to add Purple Thunder to its Froster line of frozen carbonated beverages to celebrate its first anniversary.

Judges also praised Circle K for its smart marketing, which sparked big buzz on social media, television and news outlets. The company kept the buzz going this summer with a 33-stop “Thunderversary Tour” that brought fans free food and drinks, photo opportunities, games, prizes, live music and other in-store offers at sites across the United States.

On the hot beverages side, Circle K continues to drive store traffic through its Sip & Save beverage subscription program and promotional initiatives like its taste test for “Kafe” branded coffee that was served from a truck that surprised coffee lovers when it was revealed as Circle K coffee.

FOODSERVICE INNOVATOR TO WATCH:

Curby’s Express Market

Lubbock, Texas-based Curby’s Express Market wasted no time in making its mark as what Tony Sparks, head of Customer Wow! for Curby’s, calls “the next generation of c-store retailing.” Since its debut in February 2022, the now three-store chain has built innovation, speed and volume into its concept.

The Circle K chain was celebrated for its beverage offering.

Curby's was lauded for its focus on foodservice and eye-catching branding.

Each Curby’s location features a modernmarket shopping experience with a protected drive-thru to emphasize speed of service, while its foodservice program features a fresh, made-to-order primary menu of melts and flatbreads plus made-to-order beverages, including energy drinks and a tea bar. These core elements are meant to capture consumers’ changing nature and speak to what they demand from convenience retail today.

Judges praised Curby’s for “pushing the envelope when it comes to innovation in the segment;” for going after the drivethru business; and for its eye-catching, friendly branding that features a happy dog hanging its head out the window of a moving car, which judges described as terrific, memorable, enjoyable and approachable.

Curby’s offers healthier, higher-quality offerings without going too upscale to the point that it is a mismatch with the desires of its customers. A full half of the store is focused on quick-service restaurant style food and beverages, with standard c-store offerings in the other half.

BEST USE OF TECHNOLOGY IN FOODSERVICE OPERATIONS: High’s

High’s won this year’s inaugural award for Best Use of Technology in Foodservice

Operations, which was prompted by the increasing convergence of technology and foodservice in recent years. This marks High’s first-ever Foodservice Innovators Award.

The Baltimore-based chain leaned into technology with the opening of its 60th store and new flagship location in July 2022. The 5,000-square-foot store features a wide range of updated technology options, including self-checkout, mobile ordering, frictionless payment and touchscreen ordering for food. The store’s goal is to make every shopping experience smoother.

“Modernization to self-checkout and mobile ordering is paying off nicely for them,” said one judge. Another praised the chain for moving to a dual food and technology focus while maintaining its connection to the brand’s heritage.

Along with cutting-edge technology, High’s features its classic, signature menu items at the flagship store, including hand-breaded chicken, handmade pizza, hand-dipped ice cream, and an expanded area for hot and cold dispensed beverages.

The store reflects what High’s sees as a fundamental aspect of innovation: the ability to keep moving in pursuit of better ways to fulfill customer needs and wants.

“Innovation means staying relevant to our customers — making sure that we are continuously exceeding their expectations,” said Senior Vice President Brad Chivington. “We do this by listening to their feedback and creating points of difference from our competitors.” CSN

High's leans into a wide range of updated technology options with the goal to make shoppers' experience smoother.

ACTIONABLE INSIGHTS & CONNECTIONS POWERING BUSINESS GROWTH

EnsembleIQ is the premier resource of actionable insights and connections powering business growth throughout the path to purchase. We help retail, technology, consumer goods, healthcare and hospitality professionals make informed decisions and gain a competitive advantage.

EnsembleIQ delivers the most trusted business intelligence from leading industry experts, creative marketing solutions and impactful event experiences that connect best-in-class suppliers and service providers with our vibrant business-building communities.

Making Tech the Basis of a Better Experience

C-store retailers are choosing their technology priorities based on what they can do for customers

By Angela Hanson

BETTER, FASTER, MORE STREAMLINED. Convenience store retailers are pursuing these attributes through investments in a range of technologies, and it all adds up to a better customer experience.

Today’s c-store operators are investing in technology upgrades that affect both shopping trips and backend improvements that strengthen operations as a whole, but resource shortages and deployment difficulties make it a challenge to turn investments into results, according to the findings of the 2023 Convenience Store News Technology Study

Social media, consumer-facing websites and digital loyalty programs lead the way in key technology investments currently offered by c-stores, with digital loyalty seeing a significant year-over-year jump (up 15 points) as retailers work to bring back repeat customers.

On the forecourt, c-stores are focusing on different but complementary investments in the form of at-pump ads/coupons (offered by 50 percent of respondents) and at-pump digital monitors (offered by 46 percent) — two tools that help to entice motorists into the store.

The top store-related technology investments that surveyed retailers plan to add in the future are text messaging to customers and GPS/geolocation alerts (both cited by 30 percent). Additionally, nearly a quarter of retailer respondents expect to add digital loyalty programs, touchscreen monitors for ordering and email marketing within the next one to two years.

In terms of forecourt-related tech investments, study respondents listed at-pump merchandise/ foodservice ordering and digital monitors among their future plans.

Although the percentages of surveyed retailers indicating they will add these options is down compared to last year’s study, directional increases in retailers’ current offerings suggest that many operators followed through on their previous goals and completed last year’s planned upgrades.

C-store customers should be able to see the results of these investments during shopping trips as study respondents reported that 62 percent of their technology spending goes to store-level technology, while 38 percent goes to headquarters technology. Similarly, 58 percent of their spending goes to consumerfacing tech, while 42 percent is employee-facing.

The total amount convenience channel retailers are spending on technology is going up: 58 percent said their company’s technology budget increased from 2021 to 2022, and 50 percent expect it to increase again this year.

Frontend vs. Backend Technology

Improving the overall customer experience is a key objective for c-store operators: 66 percent cited this as the biggest opportunity driving their investments in customer-facing technology. Other leading drivers are employee training and providing better product information.

SPONSORED BY

Key Technology Investments: Currently Offer

“Our customers drive our success. Happy customers leave reviews and give referrals, which brings more customers in,” one retailer commented.

Another study participant noted that a better customer experience is their top tech priority because it encompasses “a holistic view of the whole operation instead of just one aspect of the business.”

When it comes to backend technology, retailers ranked developing greater business intelligence and reporting capabilities, better management of store-level inventory and revenue, and improving the use of loyalty data as the top opportunities driving their investments.

Study participants prioritizing the development of greater business intelligence and reporting capabilities noted that doing so supports all other priorities.

“Only with good optics of business performance can we best determine how to make changes and/or improvements,” said one respondent.

Operators cited resource gaps (38 percent), training and execution (28 percent) and resistance to change/ skepticism (22 percent) as their biggest obstacles to new technology investments, aside from cost. Twelve percent said finding the right tool is one of their biggest challenges.

In addition to affecting day-to-day operations, the labor shortage is affecting c-stores’ ability to use technology to improve overall company operations. “Our biggest obstacles are teaching people to use the technologies that we put into place. Large turnover rates make implementation even harder,” one retailer lamented.

One potentially surprising factor that is still affecting technology development and pushing exploration forward is COVID-19. As the world shifts from a pandemic to the endemic phase for the illness, four out of 10 surveyed operators said the coronavirus is no longer influencing their technology development. However, six in 10 said COVID is still affecting their approach to technology in some way.

Key Technology Investments: Plan to Add

Text messaging to customers

GPS/geolocation alerts

Digital loyalty program

Touchscreen monitors for ordering in-store*

Email marketing

CRM software

Mobile app

Data analytics platform

Digital monitors with ads in-store

Social media

Consumer-facing website

Retailers differ on the specifics of COVID’s impact and are fairly split on whether it continues to speed up expansion of existing technology (20 percent), speed up implementation of new technology (18 percent) or spark interest in exploring technology (20 percent).

Payment, Ordering & Fulfillment

The growth of payment technology has sped up significantly in 2023, according to the study findings, indicating a movement toward greater payment flexibility within the channel.

Offering payment via credit/debit card is standard (offered by 94 percent of c-store operators surveyed), but the percentage of retailers that offer thirdparty mobile payment in-store jumped 18 points to 88 percent in this year’s study. This payment option also climbed in availability at the fuel pump, rising from 32 percent in last year’s study to 58 percent in 2023.

Twenty-six percent of surveyed retailers currently offer in-app proprietary mobile

Top Business Opportunities: Customer-Facing Technology

Providing a better customer experience

Employee training

Securing customer loyalty

Compel customers from pump into store

Provide better product info to customers

Mobile app

Personalized marketing

Increase customer payment options

Mobile/online ordering

EV charging stations

Optimize menuboards

Replace aging POS tech

Contactless/self-checkout tech

Home delivery

Curbside pickup

Implement Wi-Fi in all stores

payment both in-store and at the pump. This option is also the No. 1 payment technology that c-store operators plan to add in the future (at 36 percent for in-store and 24 percent at the pump).

More than a quarter of surveyed retailers also plan to add contactless self-checkout using an app (28 percent) or contactless self-checkout using AI/sensors (26 percent) in the next one to two years. Additionally, 22 percent of survey respondents said they plan to enable customers to use an in-car payment system at their forecourt in the near future.

Compared to previous years, fewer operators this year indicated plans to add various types of in-store and forecourt payment technology. However, mobile app payment and contactless self-checkout remain strong areas of focus for c-stores.

Similarly, operators expressed plans to add ordering via website and ordering via mobile app at lower rates this year than in last year’s study. The ability to order via website appears to be less of a priority, as 52 percent of study respondents have no plans to offer this option and 34 percent plan to add it in the future. In comparison, 38 percent of respondents have no plans to offer ordering via an app, but 46 percent plan to add it in the future.

Those that do expect to add these ordering options feel a sense of urgency about it. Study respondents who plan to add website ordering or app ordering were more likely to say they intend to offer it within the next year rather than a longer timeframe.

In-store pickup remains the dominant option for customers to get what they’ve ordered, as nearly six in 10 retailers surveyed (58 percent) offer in-store pickup only. Just 34 percent offer in-store pickup plus at least one other method. Alternatives include curbside pickup (offered by 20 percent), drive-thru (16 percent) and pumpside pickup (6 percent). Curbside pickup is trending downward as customers adjust their post-COVID shopping habits.

Compared to last year, both small and large operators this year expressed less interest in adding any kind of delivery service. Fifty-eight percent of study respondents have no plans to offer delivery, a significant jump from the 36 percent who said the same in 2022.

Twenty-two percent of operators currently offer delivery, while 20 percent plan to add it in the future. Given the ongoing labor

Top Business Opportunities: Backend Technology

Develop greater business intelligence and reporting capabilities

Better management of store level inventory/revenue

Improve use of loyalty data

Reduce theft/shrink

Better management of store labor expense

Employee communications

System integration (upgrading/unifying backend systems)

Improve data security

Provide store manager with decision tools

Food safety tech

Improve HQ accounting systems

Artificial intelligence

Supply chain

Automation and robotics

Data warehousing

Becoming EMV compliant at the pump

Implement CRM tools

Increase reliability/capacity of bandwidth for data communication

Becoming EMV compliant at the POS

In-Store Payment Technology: Currently Implemented

Credit/debit

Third-party mobile payment

Electronic benefits transfer (EBT)

Prepaid card

Contactless self-checkout using kiosk

Proprietary mobile payment in app

Electronic check verification

RFID

Contactless self-checkout using app

Contactless self-checkout using AI/sensors

Biometric payment tech

shortage, it’s unsurprising that the majority of retailers that offer delivery partner with a third-party company such as DoorDash, Uber Eats or Grubhub.

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Loyalty, Mobile Apps & Social Media

Loyalty programs and the valuable customer data they bring in continue to grow in importance to convenience retailers. More than two-thirds of surveyed operators (68 percent) have some kind of loyalty program, up from 52 percent in 2021 and 59 percent in 2022.

Among c-stores that currently have a loyalty program, proprietary programs are the most popular — offered by 65 percent of respondents — while a third-party loyalty program through a partner such as Upside or GasBuddy are offered by 32 percent. Additionally, 35 percent of retailers say they have a loyalty program tied to a major oil brand.

Point/reward-based loyalty programs are the most common, while 41 percent indicate that their program features both points/rewards and a credit card or other payment option. More than three-quarters of those with loyalty programs offer a mobile app (77 percent).

Among all surveyed operators, 52 percent offer a mobile app. The three most common app features are a store locator (offered by 96 percent), an option for customer feedback (77 percent) and a loyalty program tie-in (73 percent).

Limited-time specials, proprietary product coupons, fuel price listings and vendor coupons are also offered by more than half of study respondents in their apps.

Promotions are also the most frequently provided content on convenience stores’ social media channels (at 98 percent), followed by events (76 percent), contests (66 percent), new vendor products (56 percent) and community service initiatives (56 percent).

Social media continues to be a top c-store marketing vehicle, with Facebook leading the way in usage (cited by 98 percent of study respondents), followed by Instagram (61 percent) and X (formerly Twitter) at 51 percent.

Just under half of respondents (48 percent) actively track consumer feedback, down significantly from the 75 percent who reported doing so in 2022. This may be a case of prioritizing other efforts. Manual tracking is the most commonly used method, followed by customer surveys, third-party analytics solutions and internally built analytics solutions. CSN

In-Store Payment Technology: Plan to Add

Proprietary mobile payment in app

Contactless self-checkout using app

Contactless self-checkout using AI/sensors

Biometric payment tech

Contactless self-checkout using kiosk

Prepaid card

Electronic check verification

RFID

Third-party mobile payment

Electronic benefits transfer (EBT)

Loyalty Program Features

Mobile App Features

Challenging the Status Quo

Yesway earns the 2023 Top Women in Convenience Corporate Empowerment Award

By Linda Lisanti

THE LEADERSHIP team at Yesway firmly believes that the best outcomes for the convenience store chain’s customers and investors come from having a company culture that promotes diversity of thought and challenges the status quo.

“Yesway has always prided itself as a company that is diverse, inclusive and equitable,” said Tom Trkla, chairman and CEO of the Fort Worth, Texas-based organization.

Part of this commitment is an unwavering dedication to strengthening gender equality from all sides and for its outstanding efforts, Yesway earned the 2023 Convenience Store News Top Women in Convenience Corporate Empowerment Award. Now in its second year, this award honors a convenience retail company that paves the way to empower women in leadership roles and is a champion for the inclusion of women in the goals and vision of the enterprise.

“We support the principles of gender equality not because it is fashionable, but because it matters, and we continually take meaningful steps to advance that cause,” Trkla said.

In addition to keeping a watchful eye on human resources metrics such as employment statistics, employee retention, tenure and pay differentials, Yesway insists that gender equality and inclusion be a major factor across a broad range of initiatives from its capital planning decisions and security measures to its continuing education procedures and employee benefits plans.

The company’s hiring practices are always gender-blind and merit based, and Yesway has “a very strong bias to promoting from within,” according to the chief executive.

Over the last few years, the retailer has sent several female executives to a weeklong Strategic Leadership Programme at Oxford University, and others to industryspecific leadership programs at Wharton Business School and to advanced study in business analytics at Drake University.

“We strive to ensure balance in our advancement programs through education and skill-building initiatives. By ensuring that our women leaders have access to the best continuing education tools, we are better able to support the transition to more senior leadership positions within the organization,” Trkla explained.

Multiple female leaders within the company have been promoted from within, including but not limited to: Chief Financial Officer Ericka Ayles, Director of Acquisition Integration Amy Gordon, Director of Corporate HR Bonnie Ascioti, Director of Field HR Angelina Meza, and Director of Merchandising and Space Planning Lisa Ham.

Yesway Chief Financial Officer Ericka Ayles is one of multiple female leaders who have been promoted within the company.

Ensuring All Voices Are Heard

Yesway’s efforts to strengthen gender equality don’t just focus on senior leadership.

Approximately 61 percent of its total workforce is made up of women currently. On average, women in retailfocused roles — which account for more than 96 percent of Yesway’s workforce — have a 17 percent longer average tenure than their male counterparts and earn approximately 4 percent more. Women represent 75 percent of all promotions earned at Yesway in the last 12 months, with 77 percent of those among its retail teams.

While the retailer views gender equality and equitable female advancement as the product of both hiring practices and internal advancement programs, company leaders also believe that strong procedures in these areas are insufficient by themselves and must be accompanied by the creation of an equitable playing field that is supportive of family and education.

The 440-plus-store chain allows each retail manager to control his or her team’s schedule in recognition of the need to balance family and work requirements. Flexible scheduling has become a critical factor in Yesway’s ability to hire and retain female managers and district leaders, who

currently account for 77 percent of its retail workforce.

“Flexible scheduling also serves as a leading contributor to retaining and growing our frontline staff. We have a particularly low turnover rate, especially amongst our female employees in field management positions (21 percent), relative to other companies in our industry,” Trkla noted.

Additionally, Yesway ensures that the voices of women are heard throughout the organization by actively soliciting input, both individually and collectively. The retailer regularly conducts group discussions, one-on-one conversations and anonymous surveys with employees in an environment that is comfortable, open and safe.

“By doing so, we are able to gather thoughts, opinions and suggestions in an even-handed manner and ensure that we give equal weight and credibility to women at all levels,” said Trkla.

An initiative to make its stores feel welcoming and safe for female customers and employees was guided by direct input from Yesway’s female employees, from its store associates to its regional managers. The project included making comprehensive upgrades to store lighting, security and camera systems; doubling overnight staffing in challenging neighborhoods; and tweaking store layouts so that there are no longer areas hidden from the employee counter.

All of these measures combined result in an equitable work environment, and have a continuous positive impact on Yesway’s ability to hire and retain female employees.

“Given our aim to ensure all voices are heard and that women’s voices are represented from the most senior levels of the c-store industry through the frontlines serving customers, we count exemplary women leaders at all levels of our team,” Trkla said. CSN

THE 2023 CONVENIENCE STORE NEWS TOP WOMEN IN CONVENIENCE PROGRAM IS SPONSORED BY:

Founding & Presenting Sponsor: Corporate Empowerment Award Sponsor:

Gold Sponsors:

Platinum Sponsors:

Silver Sponsors:

Bronze Sponsor:

The Top Women in Convenience program is part of The Convenience Inclusion Initiative, a Convenience Store News platform that champions a modern-day convenience store industry where current and emerging leaders foster an inclusive work culture that celebrates differences, allows team members to bring their whole selves to work, and enables companies to benefit from diversity of thought and background.

C-store Display Racks

Checking Out

C-store shoppers appreciate and embrace various frictionless offerings

Convenience has always meant fast but, increasingly, it’s also coming to mean little to no interaction required during the ordering and payment processes. According to the 2023 Convenience Store News Realities of the Aisle Study — which polled 1,500 consumers who shop a c-store at least once a month — availability of order ahead and pickup, drive-thru, contactless shopping and mobile ordering are all among the top 10 aspects that shoppers say influence their decision to visit a convenience store. The study also found:

Convenience channel shoppers say they’ve tried these services at a c-store:

• Mobile pay at the pump 74%

• Mobile pay in-store 58%

• Contactless using AI sensors 51%

• Contactless using app 47%

• Contactless using kiosk 42%

• Order online & pickup in-store 20%

• Drive-thru 19%

• Order online & pickup curbside 18%

The percentage of shoppers who say they’ve tried contactless shopping using a kiosk at a c-store jumped 12 points year over year, while the percentage trying contactless shopping using an app at a c-store jumped 9 points year over year.

When asked about their current usage of these low-friction o erings vs. a year ago, more than four in 10 c-store shoppers said they’re using the following services MORE these days:

• Contactless using app

• Order online & pickup curbside

• Contactless using kiosk

• Contactless using AI sensors

• Mobile pay in-store

CHECKOUT METHOD PREFERRED

57% At register with human interaction

43% Self-checkout

Despite growing adoption of frictionless o erings, more than half of convenience store shoppers still prefer human interaction at a register over self-checkout.

25% of Generation Z shoppers (vs. 16% of shoppers overall) say they would use contactless shopping using AI sensors at a convenience store if available.

The younger generations, however, are significantly more likely to favor self-checkout: 57% of Gen Z shoppers and 53% of millennials indicate this preference.

Motiva is the smartest decision; from tech implementation to expert business strategy to enhancing the overall customer experience.

Motiva has a proven track record in the ability to be nimble and adaptable, providing overall stability, dependable fuel supply, and custom solutions for all business partners.

Motiva customer service and support allows business owners to leverage years of expertise and precision, allowing businesses and communities to thrive.

From iconic to innovative. Tap into the power of a legacy brand with a modernized experience.

FOR MOTIVA, IT’S THE PEOPLE AND THE PARTNERSHIPS THAT COUNT

Holistic and people-centric. These are the terms that best describe the approach followed by Houston-based Motiva when it comes to working with the wholesalers and c-store operators to which it supplies 76® brand fuel. The company focuses on forming and sustaining true partnerships with customers and supporting them as they grow their business. Leah Adams-Sutherland, Sales Manager for the 76® brand, sat down with CSN to explore this unique stance.

CSN: How does Motiva’s unique approach play out when wholesalers and dealers convert to the 76® brand?

LAS: We don’t just look what the move would mean for us. We evaluate whether it’s best for the partner. For example, where is the best supply point? How many households in the area? Which location makes the best sense? What other brands are big there?

We work together and meet several times on strategy of how to go to market. We have kickoff calls with the customer and the marketing team before grand openings to ensure all logistics are planned out, and everyone knows their role for the day of. Motiva team members attend grand openings. Each partner is assigned a dedicated territory manager from our team.

CSN: What can wholesalers and dealers expect from Motiva once the conversion is complete?

LAS: We provide the expertise and support needed to build a following for 76®-branded sites, through traffic-driving promotions, local community sponsorships, site-specific advertising programs, special events like grand opening parties that feature discounted fuel as well as food and entertainment, and targeted media buys, including billboards, radio, digital, and social advertising.

Our events and initiatives are family- and community-oriented, often involving charities that help kids or the underprivileged and/or have tie-ins to local sports teams and colleges or universities, etc. It’s all about helping our partners connect with and give back to their communities.

One of our wholesaler partners is JC Oil in Madison, Ga., which supplies fuel to its own c-stores and others. We recently helped them plan, execute, and promote a customer appreciation event in Sewanee, Ga., with appearances and autograph signings by Atlanta United legends, entertainment, branded giveaways, a raffle for tickets to an Atlanta United match, and the biggest draw—gas for $.76 a gallon. During the event, JC Oil— in conjunction with the Atlanta Community Fund—donated $10,000 ($5,000 each) to benefit the Atlanta Community Food Bank and Meals by Grace.

In keeping with our focus on relationships with our customers, we make it a point to have a Motiva presence at events like these. Mike Chawla, a JC Oil principal, complimented our presence in Sewanee and said he’d never experienced something like that with other fuel suppliers.

CSN: In what other ways does Motiva support its wholesaler and dealer partners?

LAS: Through verbal communication—in person and by telephone. It’s much more effective than written communication for developing and nurturing personal relationships with our partners and understanding their objectives. It’s also more conducive to working with customers to brainstorm strategies for meeting goals, fostering growth, and solving problems.

We emphasize that the lines of communication are always open—and our customers appreciate it. As Hani Baskaron, chairman of Daybreak Market & Fuel in Boca Raton, Fla., told CSN, “Any time there’s an issue, a question, a need for a suggestion…I can pick up the phone without hesitation and get an answer. No stone is left unturned.”

CSN: What’s next for Motiva and 76®?

LAS: Motiva now supplies 76® fuel to nearly 500 gas stations. My goal is to have 1,000 stations in the portfolio in 2028. But no matter how things play out, for us, it will always be people and relationships first.

We emphasize that the lines of communication are always open—and our customers appreciate it.