CSN September 2025 by ensembleiq

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WHAT’S NEXT IN CONVENIENCE AND FUEL RETAILING

AS KWIK TRIP CELEBRATES SIX DECADES IN BUSINESS, THE RETAILER REFLECTS ON HOW IT GOT TO WHERE IT IS TODAY — AND WHERE IT’S GOING NEXT

Boost your business with a responsible digital platform that enhances customer engagement and loyalty. The AGDC Digital Trade Program helps retailers connect with Adult Tobacco Consumers 21+ while driving business growth through incentives.

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CONSISTENT LOYALTY ID (CID) PROMOTIONAL FUND

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Talking Tech

Without question, technology is a vital part of convenience and fuel retailing today

IN A FEW WEEKS, the convenience store industry will assemble in the Windy City for this year’s NACS Show. Against the backdrop of the conference and expo, Convenience Store News will host its annual Technology Leadership Roundtable & Awards Dinner.

Each year, this event brings together an intimate group of leading c-store technology executives to discuss the critical role of tech in convenience and fuel retailing, and examine the current and emerging technologies required for the future-focused c-store retailer.

When this event was launched in 2016, the conversation focused on EMV updates, touchscreen ordering, the rise of mobile and the threat of Amazon. There was also much discussion around the growing convergence of technology and marketing. As one retailer in attendance questioned, “Is it more IT or marketing? And who is going to win?”

Today, we know the answer is: It’s both.

Loyalty programs are one of the best examples of how technology and marketing unite to drive strong growth for convenience store operators. In this issue, we spotlight how c-store retailers of all sizes are reevaluating and elevating their loyalty programs. Leveraging tech (AI, predictive analytics, automation, etc.), they are moving beyond onesize-fits-all offers to give customers a dynamic and

EDITORIAL EXCELLENCE AWARDS (2016-2025)

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

2020 Trade Association Business Publications

Intl. Tabbie Awards

Honorable Mention, Best Single Issue, September 2019

2016 Trade Association Business Publications

Intl. Tabbie Awards Silver, Front Cover Illustration, June 2015

personalized experience that keeps them loyal to their brand.

In this issue, you’ll also find an insightful report on the many ways c-store retailers can connect with and engage customers apart from loyalty programs. Think email, text, geofencing, gamification, social media and more. These days, it’s all about “the customer journey” and making that journey seamless across channels — powered by the collection of data.

Four convenience retailers that have demonstrated exceptional vision and innovation in the development and utilization of tech solutions are this year’s Technology Leader of the Year honorees: Parker’s Kitchen, RaceTrac Inc., Nittany MinitMart and Taylor Wilson of Golden Oil Co. You can read about each one’s achievements in this issue. They will be presented with their awards at our Technology Leadership Roundtable & Awards Dinner on Oct. 14.

I’m eager to hear what topics dominate the conversation at this year’s event. Technology is undeniably an essential part of convenience and fuel retailing today. Going well beyond just marketing, tech touches nearly every aspect of the business now.

If you’re not investing in your tech stack, you may very well find yourself left behind.

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

2024 Eddie Award, Folio: magazine

Winner, Business to Business, Retail, Single Article, May 2024

Honorable Mention, Business to Business, Magazine Section, October 2024

2023 Eddie Award Honorable Mention, Folio: magazine

Business to Business, Retail, Full Issue, September 2022

Business to Business, Retail, Single Article, March 2023

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

Richard Cashion Curby’s Express Market

Billy Colemire Majors Management

Robert Falciani ExtraMile Convenience Stores

Jim Hachtel Core-Mark

Chris Hartman Rutter’s

Faheem Jamal CPD Energy Corp./ Chestnut Markets

Vito Maurici McLane Co. Inc.

Jonathan Polonsky Plaid Pantries Inc.

Greg Scriver Kwik Trip Inc.

Roy Strasburger StrasGlobal

The Three Horsemen of C-store Evolution

Food, technology and loyalty lead the way to future success

Today, we’re witnessing the culmination of three major trends.

AS THE CONVENIENCE STORE INDUSTRY gathers in Chicago next month for the 2025 NACS Show, I thought it would be a good time to review the current state of an industry that has been transforming over the better part of the last decade.

Today, we’re witnessing the culmination of three major trends. Foodservice excellence, digital innovation and loyalty engagement have converged into a single force that is reshaping what it means to be “convenient.”

Let’s start with foodservice. According to the latest consumer data, nearly 72% of shoppers now see c-stores as a viable alternative to quick-service restaurants. That’s up sharply from 56% last year, according to NACS research. This is a huge shift in perception, being driven by bold investments in made-to-order kitchens, fresh prep and chef-inspired menus.

Retailers such as Casey’s, Wawa and Sheetz, as well as the giants like 7-Eleven and Circle K aren’t dabbling in food — they’re going all in. And consumers are responding. In fact, 35% of shoppers say they’ve purchased a hot meal at a convenience store in the past month, up from just 29% a year ago.

Then, there’s technology. AI-driven inventory systems, ceiling-mounted sensors that capture behavioral data and even autonomous checkout are no longer futuristic. Pair that with retail media networks that not only engage customers, but also create a new revenue stream for retailers and you’ve got a digital frontier that’s as profitable as it is customer-friendly.

And let’s not forget loyalty. Today’s shoppers are digitally savvy, mobileconnected and hungry for personalized experiences. Nearly three-quarters are enrolled in some kind of loyalty program, and 85% of nonmembers say they’d be more likely to join if the perks were tailored to their behavior and preferences. This is where c-stores can shine — by leveraging data to connect the dots between what shoppers want and what retailers can offer.

So, what should c-store leaders be doing right now to capitalize on these intersecting trends?

First, think like a restaurant. That means committing to quality ingredients, craveable menu items and speed of service. You’re not just competing with other c-stores anymore. You’re in the same arena as Chick-fil-A, Starbucks and Taco Bell. If you want share of stomach, your food must be great, not just good enough.

Second, invest in your tech stack. Your store should be just as savvy as your shopper. That means mobile ordering, digital signage, intuitive loyalty apps and operational tech that cuts labor costs and boosts efficiency. In today’s market, technology isn’t a bonus, it’s the price of entry.

And third, get personal. Use your loyalty data to understand who your customers are and what they want. Then, show them you’re paying attention. From fuel rewards to free coffee, real-time offers based on their buying behavior is how you build long-term, high-value relationships.

As we are nearing the end of 2025, it’s clear that the retailers to beat in 2026 will be those that treat every store visit not just as a transaction, but as an opportunity to surprise, delight and deliver.

For comments, please contact Don Longo,

Editorial Director Emeritus

, at dlongo@ensembleiq.com.

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DEPARTMENTS

Convenience retailers have a responsibility to their customers and their community. LEARNING

have significant potential to develop their better-for-you offerings.

FEATURES COVER STORY

No Less Than Best

As Kwik Trip celebrates six decades in business, the retailer reflects on how it got to where it is today — and where it’s going next.

106 Redefining the Loyalty Experience

Convenience retailers of all sizes are reevaluating and elevating their loyalty programs.

113 Engagement Outside the Loyalty Box

There are many ways for c-store retailers to digitally capture the attention of customers apart from loyalty programs.

116 The Pulse of D&I Slows

Diversity and inclusion programs in the convenience store industry are under pressure.

COVER STORY - PAGE 34

CATEGORY MANAGEMENT

TOBACCO

46 Good News, Bad News

The FDA recently authorized more products, but illicit vapes remain a big problem.

FOODSERVICE

56 Firing Up Your Foodservice Business Highlights from the 2025 Convenience Foodservice Exchange event in Denver.

ALCOHOLIC BEVERAGES

90 Embracing Innovation Convenience Store News recognizes the 2025 Technology Leader of the Year honorees. TECHNOLOGY

70 The Explosive Growth of RTDs Ready-to-drink cocktails have become a primary growth driver in the category.

HEALTH & BEAUTY CARE

78 Deviating From Tradition

While pain relief is still important, vitamins and family planning products are fueling growth.

LOTTERY

84 Game On!

Go beyond luck to make your c-store the destination for lottery enthusiasts.

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BRAND MANAGEMENT

SENIOR VICE PRESIDENT/GROUP PUBLISHER, CONVENIENCE NORTH AMERICA Sandra Parente sparente@ensembleiq.com

EDITORIAL

EDITOR-IN-CHIEF Linda Lisanti llisanti@ensembleiq.com

EXECUTIVE EDITOR Melissa Kress mkress@ensembleiq.com

MANAGING EDITOR Danielle Romano dromano@ensembleiq.com

SENIOR EDITOR Angela Hanson ahanson@ensembleiq.com

EDITORIAL DIRECTOR EMERITUS Don Longo dlongo@ensembleiq.com

CONTRIBUTING EDITORS Renée M. Covino, Tammy Mastroberte

ADVERTISING SALES & BUSINESS

ASSOCIATE BRAND DIRECTOR Rachel McGaffigan - (774) 212-6455 rmcgaffigan@ensembleiq.com

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ART DIRECTOR Cristian Bejarano Rojas crojas@ensembleiq.com

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CORPORATE OFFICERS

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1 PHOTO GALLERY: Wawa Debuts Travel Center Format

The Hope Mills, N.C., location opened its doors on Aug. 28. Wawa’s first travel center offers its signature fresh food and beverages, plus fuel for passenger vehicles and a high-speed diesel fuel court for the needs of professional tractor-trailer drivers.

7-Eleven Parent Plans 1,300 Store Openings in North America by 2030

Insights in Action: Key Findings From Convenience Store News’ Exclusive Foodservice Research

3

Seven & i Holdings Co. Ltd. expects to add 1,300 new convenience stores in North America and around 1,000 new locations in Japan through the year ending February 2030. This expansion will boost revenue by an estimated $76.5 billion, according to the company.

Buc-ee’s Named Among America’s Best Retailers

With a score of 92.78, Buc-ee’s landed at No. 4 on the annual list compiled by Newsweek and Statista. The rankings were based on an independent survey of participants who have either made purchases, used services or gathered information about products or services in the past three years.

4 Maverik to Move Majority of Combined Operations to Its Base Camp

The adventure-themed convenience store chain will consolidate its headquarters operations in Salt Lake City to improve efficiency. A limited presence will remain in Des Moines, Iowa, the former headquarters of the Kum & Go brand, which Maverik acquired.

2 EXPERT VIEWPOINT

EG Group Cofounder Pushes for U.S. Sale

Zuber Issa called for the sale of EG Group’s entire U.S. business, valued at more than $5 billion, as an alternative to an initial public offering. The plan is backed by private equity firm TDR Capital, which owns 50% of EG Group.

Why Better Backbar Products Mean Better Business

Today, there are a growing number of new nicotine alternatives on store shelves, and more innovations on the way for America’s approximately 30 million legal-age adult smokers. Smokefree products aren’t just better for the legal-age adult smoker; they’re better for retailers as well, writes Dan Mulvaney, director of industry engagement for Philip Morris International Inc. U.S. The U.S. Food and Drug Administration should work with retailers to ensure they have clear, timely and accurate information about and access to authorized products to meet consumer demand.

Foodservice is an essential driver of growth, differentiation and customer loyalty for today’s convenience store retailers. This dynamic category is only becoming more important as c-store retailers work to establish themselves as top-of-mind dining destinations and expand their competitive landscape. In a recent webinar, Convenience Store News’ Foodservice Editor Angela Hanson and Vice President of Research Beth Brickel explored the findings of the brand’s 2025 Foodservice Study and highlighted cutting-edge examples of the insights in action.

For more webinars, visit the CSNews Webinars section of CSNews.com.

MOST VIEWED NEW PRODUCT

Oreo Cookies & Cream Muddy Buddies

General Mills Convenience elevates its Cookies & Cream Muddy Buddies variety with the introduction of Oreo Cookies & Cream Muddy Buddies. The snack features crispy corn Chex pieces coated with a topping of real Oreo cookie wafers. Oreo Cookies & Cream Muddy Buddies are available nationwide in a 4.25-ounce bag for $4.29. The new variety joins other Muddy Buddies flavors available in convenience stores, including Cinnamon Toast Crunch, Funfetti, Peanut Butter & Chocolate, Brownie Supreme and Girl Scout Thin Mint.

U.S. District Court Judge Overturns Swipe Fee Cap

Retailer groups cheer the decision even as part of the order is on hold pending appeals

RETAIL INDUSTRY ADVOCACY groups applauded a federal judge’s recent ruling that overturns the Federal Reserve’s 2011 cap on debit card swipe fees.

In the case of Corner Post v. Board of Governors of the Federal Reserve in the U.S. District Court for the District of North Dakota, Judge Daniel Traynor vacated regulations setting the debit card swipe fee rate, but put implementation on hold pending appeals “to prevent interchange transactions from becoming a completely unregulated market.” He noted that the order does not prevent the Fed’s proposed cap reduction — pending since 2023 — from taking effect if the Fed chooses to move forward with it.

Prior to the ruling, regulations allowed banks that have at least $10 billion in assets and follow rates set centrally by Visa and Mastercard to charge up to 21 cents per debit card transaction, as well as 1 cent for fraud prevention and 0.05% of the transaction amount for fraud loss recovery.

The federal lawsuit filed in 2021 by Corner Post, a truck stop and convenience store in Watford City, N.D., argued that the 2011 rate was set too high due to a 2010 law requiring that the rate be “reasonable” and “proportional” to the banks’ costs.

The North Dakota Retail Association and the North Dakota Petroleum Marketers Association joined Corner Post in the lawsuit,

which the U.S. Supreme Court ruled last year could move forward. The 6-3 decision found that the lawsuit filed by Corner Post was not blocked by the statute of limitations because the time limit did not begin for the business until it began accepting debit cards upon opening for business in 2018.

“As merchants have argued for 14 years, the Fed’s broad attempt to allow big banks to essentially charge rent-seeking fees for debit card transactions is illegal. That question is now settled,” Stephanie Martz, chief administrative officer and general counsel for the National Retail Federation, said after the ruling. “If the Durbin Amendment is to mean anything, it’s that there are specific costs that banks can recover from merchants and costs that they categorically cannot recover from merchants.”

The Retail Industry Leaders Association (RILA) also welcomed the ruling. “RILA is pleased to see the court’s decision in Corner Post, which squarely rejects the board’s flawed Reg II, which has — for far too long — imposed excessive costs on merchants and their customers,” said Deborah White, RILA’s senior executive vice president and general counsel, and president of the Retail Litigation Center.

The Merchants Payments Coalition urged the Fed to take quick action. “We are glad to see this well-reasoned decision,” said Doug Kantor, Merchants Payments Coalition executive committee member and NACS general counsel. “This case shows that banks have swiped a windfall of billions of dollars per year in debit fees from Main Street that go far beyond normal, competitive profit margins. The Federal Reserve should quickly rewrite its rules to cure this problem and reduce the inflationary pressure these fees impose on the entire U.S. economy.”

FAST FACTS

85%

of U.S. shoppers have tried made-to-order food at a convenience store.

— Intouch Insight

-3%

Hard seltzer category growth was down 3% year over year in the second quarter.

— Goldman Sachs

27.5%

of electric vehicle drivers favor loyalty perks or reward schemes.

— Konect

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Eye on Growth

Applegreen plc is expanding its U.S. presence through a $70 million investment in new highway service plazas in Colorado. The company’s plans call for four service plazas along the E-470 highway in Denver.

Wawa Inc. began construction on its first convenience stores in Middle Tennessee. The Murfreesboro and Clarksville locations are slated to open during the second half of 2026.

Blarney Castle Oil acquired Pri Mar Petroleum’s convenience and gas business, while Merle Boes took Pri Mar’s delivered fuels and lubricants business. Pri Mar operated 13 Pri Mart branded stores and supplied 12 wholesale dealers in southwest Michigan.

LV Petroleum secured a $20.11 million construction bridge loan from Forman Capital for the redevelopment of a travel plaza located between Mobile, Ala., and Pensacola, Fla. The 51-acre site has already been converted into a TA Travel Center.

Love’s Travel Stops opened a new compressed natural gas (CNG) station in Fresno, Calif. The site, which features six CNG fuel dispensers, is the first to open under the new Love’s Alternative Energy brand.

The Pala Band of Mission Indians broke ground on a new Pala Super Mart & Fuel Station between inland San Diego and the coast. The facility will include a grocery market, specialty coffee bar, full-service deli and electric vehicle charging stations.

The retailer will invest approximately $7.5 million to build each store.

Retailer Tidbits

Female executives from Weigel’s Stores Inc. and 7-Eleven Inc. were honored with 2025 Retail’s Top Women Awards from Chain Store Age, a sister publication of Convenience Store News. Weigel’s Director of Loyalty Jessica Starnes and 7-Eleven’s Senior Director of Electric Vehicle Charging and Utilities Ann Scott were among the 20 recognized.

Dash In debuted a refreshed look at two pilot stores. The retailer worked with GSP’s Retail Environments Team to create and deliver an enhanced shopping experience, refined brand aesthetics and brand consistency.

Curby’s Express Market closed its original location at 1903 Milwaukee Ave. in Lubbock, Texas, on July 22, bringing its store count down to just one location in Amarillo, Texas. A company statement hinted at future new locations.

Jacksons Food Stores celebrated its golden anniversary in August. The chain got its start in August 1975 with one Texaco service station and has grown to more than 1,400 Jacksons and ExtraMile stores across 10 states.

Casey’s General Stores Inc. joined NCR Atleos’ Allpoint Network to provide surcharge-free access to cash through Atleos managed ATMs. Access will be available in Casey’s stores across seven states: Wisconsin, Ohio, Tennessee, Arkansas, Nebraska, Kentucky and Oklahoma.

Jet Food Stores unveiled family-friendly restrooms at more of its locations. Nine of the retailer’s stores now feature Step ‘n Wash, a built-in retractable step stool that allows children to reach the sink safely and independently.

The “Neighborhood 2.2” project will roll out to more locations later this year.

Supplier Tidbits

McLane Co. Inc. unveiled a new chicken program, HiBird. Part of the McLane Fresh family of brands, the HiBird program provides comprehensive support — from implementation and training to merchandising and equipment.

Keurig Dr Pepper (KDP) will acquire JDE Peet’s in an all-cash transaction, creating a global coffee champion. Post closing, KDP plans to separate into two independent, U.S. listed, publicly traded companies: Global Coffee Co. and Beverage Co.

Core-Mark International, a Performance Food Group company, entered into a distribution agreement with Onvo. Under the terms of the pact, Core-Mark will serve as regional supplier for the retailer’s stores in Pennsylvania and New York markets.

PMI U.S. introduced its IQOS heated tobacco system in the greater Fort Lauderdale, Fla., area. The announcement came after more than 5,000 adults aged 21 and over participated in the “Be the First” pilot program in Austin, Texas.

American Car Wash Solutions signed a distribution agreement with Complete Car Wash Solutions to be the company’s lead distributor in the Southeast. This milestone marks the first major move under the leadership of CEO John Olert, who acquired American Car Wash Solutions in August 2024.

Johnson Brothers, a distributor of wine, spirits and beer, entered the Texas market by acquiring Maverick Beverage Co.’s operations in Texas, Arizona, Colorado and Florida. Approximately 400 Maverick team members will join the Johnson Brothers family.

Approximately $400 million in cost synergies are expected from this transaction.

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TWIX Snickerdoodle

Inspired by the classic cinnamon-sugar snickerdoodle cookie, TWIX Snickerdoodle features the iconic crunchy cookie, gooey caramel and smooth milk chocolate of TWIX with the addition of a cinnamon-sugar swirl of snickerdoodle-flavored caramel. The product taps into the deep well of nostalgia while embracing the current tastes and trends that fans crave, according to its maker. TWIX Snickerdoodle is available nationwide in a single 1.4-ounce size and 2.8-ounce share size. It is the third cookie-inspired flavor to join the TWIX lineup, following TWIX Cookie Dough and TWIX Cookies & Crème.

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Seagram’s Escapes Spiked WWE Series

Seagram’s Escapes, known for great-tasting flavored malt beverages, and WWE, a global leader in sports entertainment, announce a new multiyear partnership. The collaboration is highlighted by the launch of a cobranded product, the Seagram’s Escapes Spiked WWE Series, which marks WWE’s first-ever licensed ready-todrink product. Now available nationwide, the line features flavors such as Rumble Punch, Pineapple Powerhouse and Slammin’ Blueberry. As an official partner of WWE, Seagram’s Escapes also will receive prominent integrations within live events, a custom digital content series featuring WWE Superstars, and more. THE SEAGRAM BEVERAGE CO. • ROCHESTER, N.Y. • SEAGRAMSESCAPES.COM

Wip Energy Pouches

Wip Energy Pouches are designed to be a category-defining product that reimagines how caffeine is consumed. The pouches are available in both 100-milligram and 200-milligram caffeine strengths in four bold flavors — Orange Tangerine, Mint, Sour Cherry and Strawberry Kiwi. Wip pouches are zero sugar and zero calories, and formulated with natural caffeine sourced from non-GMO green coffee beans, B vitamins to support energy metabolism and healthy cognitive functions, and chromium to support stable blood sugar levels. Wip is available nationwide with a suggested retail price of $5.99 per can, containing 10 pouches. WIP • NEW YORK • WIP.COM

Throne Sport Coffee Premium Charged Lattes

Throne Sport Coffee seeks to outperform the “sugar-loaded coffee milkshakes” that have long dominated the ready-to-drink coffee landscape with the launch of Premium Charged Lattes, a better-for-you alternative. Made with no artificial flavors or sweeteners, each 11-ounce can contains 150 milligrams of natural caffeine for clean energy and focus; 10 grams of protein from ultra-filtered, lactose-free milk to support muscle recovery; electrolytes; and 100% daily value of vitamins B2, B3, B6 and B12. Four flavors are available: Mocha Java, French Vanilla, Salted Caramel and Coffee Latte. THRONE SPORT COFFEE • STAMFORD, CONN. • SPORTCOFFEE.COM

Johnsonville Pre-Sliced, Pre-Cooked Sausages

Three new pre-sliced, pre-cooked sausage varieties from Johnsonville Foodservice aim to help foodservice operators reduce prep time, save labor and deliver the bold, on-trend flavors customers crave. Available in Ultimate Italian, Jalapeño Cheddar and Southwestern, the sausages are fully cooked and frozen with a 270-day shelf life. They are also clean label, with no gluten, MSG, high-fructose corn syrup or artificial flavors. Each sausage is packed with visible, authentic ingredients such as bold herbs, real jalapeños and creamy cheddar. With five slices per ounce, they provide excellent coverage on pizzas, burritos, wraps, bowls and more.

JOHNSONVILLE LLC • SHEBOYGAN FALLS, WIS. • FOODSERVICE.JOHNSONVILLE.COM

THANK YOU, WE CARD.

For three decades, We Card has set the national standard in helping retailers prevent underage access to age-restricted products. Through employee training, in-store signage, and education programs, they’ve strengthened ID-checking practices across the country—helping retailers build trust and improve age veriﬁcation at the counter.

At PMI U.S., we’re proud to support We Card’s mission as an Advisory Council member. Their commitment to responsible retailing helps ensure that tobacco and nicotine products are sold only to adults 21 and over.

Here’s to 30 years of leadership, impact, and doing what’s right— with many more to come.

Scan to see the actions we’re taking to control access and work with others.

It’s All About You

Convenience retailers have a responsibility to their customers and their community

By Roy Strasburger, CEO, StrasGlobal

“WHO ARE YOU? Who, who, who, who?”

With all due respect to Pete Townsend, this is not an existential question, but rather a practical one. In today’s world of digital transactions, AI-generated personalities and relentless scammers, it is becoming more and more important to be able to verify that the person you are dealing with is, in fact, a real person and that they are who they say they are.

Convenience retailers have a responsibility to their customers and their community to make sure age-appropriate products are sold according to the law. Our industry, more than any other (with the exception of pharmacies), deals the most in restricted products, whether it be cigarettes, alcohol, lottery tickets or vape products. We are the gatekeepers, making sure restricted products get into the right hands.

There is a level of trust that must be earned by a retailer, and that trust reflects the operator’s integrity and professionalism, whether it be in handling money, preparing food, creating a safe environment for people to visit, enforcing legal requirements or protecting minors.

How can store operators accurately and

consistently know that the person they are facing is not a minor? Let’s review what you should do — and train your employees to do — to ensure you are legally selling restricted products.

First, and most important, is to identify the products that are age restricted. The customer service representative needs to know what they can, and cannot, sell to minors.

The second step is to check the identification of everyone who could be underage when they attempt to buy a restricted product. NACS recommends that employees check customer IDs if the buyer looks under 40 years old.

Third, when you’re handed an ID, look at it closely. Whether it is plastic, paper or digital, the burden is upon the retailer to make sure it is legitimate and that the ID matches the person presenting it. You must study the identification and the person in front of you very carefully. If there is any doubt that the person presenting the ID is not the same person in the photo, you should decline the sale.

A corollary to these three steps is that the cashier should use reasonable efforts to make sure that even if the person is the

WE CARD Celebrates 30 Years of Responsible Retailing

President Doug Anderson vows to continue the focus on the fundamentals of preventing underage access.

This year marks the 30th anniversary of the We Card Program, an initiative to equip retailers with the education, training and tools to prevent the sale of tobacco products to underage customers.

Over the past three decades, We Card — together with its retail partners — has made signiﬁcant strides in reducing youth access to tobacco and vapor products, helping to build a culture of responsibility across the industry.

Convenience Store News sat down with We Card President Doug Anderson to discuss the organization’s milestone anniversary, its ongoing mission and what’s in store for September’s We Card Awareness Month.

Convenience Store News: Thirty years is a signiﬁcant milestone—what does it mean to you?

Doug Anderson: We’ve seen a lot of changes in the past 30 years, but the fundamentals of responsible retailing of age-restricted products remain constant.

This 30-year commitment is a true testament to the dedication of our stakeholders — including retailers, wholesalers, manufacturers and our many supporters. Few corporate social responsibility programs can claim such longevity, and even fewer can match its sustained relevance, utility and impact on the retail industry. It’s not just been around a long time; it’s been used by both single store operators and retail chains.

CSN: Can you share the progress that has been achieved through the We Card program?

DA: More than 1.2 million We Card kits have been sent to our retail partners—90% of retail locations selling tobacco post We Card signage.

We’ve provided retailers with 4.5 million calculation tools, 7.2 million training tools and 6.1 million in-store signage materials. And we have 27,000plus monthly website users seeking tools, job , law summaries and other key information they can use to train and educate their employees and prevent underage sales.

CSN: What impact has We Card had on reducing sales to minors?

DA: In 1997, in federal government required compliance checks conducted by the states using underage decoys, the violation rate was 40%, meaning that four out of ten times, retailers were illegally selling to minors. Today, it hovers around 10%. That’s a signiﬁcant achievement and well below the federal government’s 20% target violation rate.

In 2024, FDA enforcement data of 116,000 store inspections using underage purchase attempts showed retailers achieved an 85% compliance rate.

We Card helped shape a culture of responsible retailing, from establishing “carding” best practices to establishing training on how to handle a variety of customer-sales associate scenarios. Our tools, job aids, in-store signage and mystery shopping program help, but the real credit goes to retailers who have embraced our services over the past 30 years.

We offer our in-store signage and training a la carte to ﬁt retailers’ needs — you can select a Renewal Kit or just what tools and training you need. We have our 2026 materials available by Labor Day so retailers can be ready for January 1.

CSN: Can you elaborate on the training program?

DA: September is We Card Awareness Month and we like to remind everyone about our training programs. One of the features of We Card is that we deliver more than just a decal in the store. We offer comprehensive training, including three training courses: an employee course, a refresher course and a manager course. We get constant feedback from retailer surveys so that we can stay current and make sure we offer valuable tools and what retailers need. Over 93% of We Card-trained employees rate our training as “good” or “great.”

Over 700,000 retail employees have been directly trained with our online training program. What’s interesting is that retailers tell us their trained employees go on to train an average of 11 co-workers, amplifying the reach and impact of our program. We want managers to impart their knowledge.

Retailers value our training. Ninety-nine percent of respondents report feeling more conﬁdent in enforcing age restrictions. Seventy-seven percent say they have increased conﬁdence in denying underage sales.

That’s important because we want trained and conﬁdent employees. You have to be conﬁdent standing behind the counter and assured you know what to do when selling age-restricted products — you know what to say, how to calculate age and handle a potential social sourcing situation.

CSN: What are you doing to address social sourcing?

DA: The CDC reports in surveys of high schoolers that 79% of the time minors are getting vaping products via social sourcing as opposed to saying they bought directly in the store. While commercial access to tobacco and vaping products has declined, this social sourcing avenue of bumming, borrowing or getting someone of age to buy or give it to them remains as a big youth access problem.

We have two campaigns that address the issue of minors asking adults to purchase for them. Retailers choose one of the campaigns to run in their store, with each getting the message across that if they’re under 21, there is no bumming, no borrowing and no buying for them. We want to reinforce that buying tobacco, vaping products, or other alternatives like nicotine pouches for minors is not a responsible thing to do and that retailers will deny those third party purchase attempts.

Our signage and training job aids have been updated to include emerging forms of alternative tobacco. We have several that talk about nicotine pouches and that serves to both alert customers and reinforce the training that it is an age-restricted product.

As We Card enters its fourth decade, the mission remains clear: help retailers stay compliant, support responsible retail practices, and prevent underage access to age-restricted products — one training, one toolkit, one retailer at a time.

correct age, they are not buying restricted product on behalf of a minor. Are there underage people standing outside waiting to be given cigarettes or alcohol after the adult has purchased it and left the store? If a clerk could reasonably assume that a third-party was buying restricted products for a minor, it is possible they could be charged with underage selling, and your business could lose its license.

An Increasingly Complicated Challenge

The challenge of age verification is becoming increasingly complicated with the sophistication of fake IDs and as society relies more heavily on smartphones to store personal information. Gen Z and millennials would much rather have all their data stored on their phone, so they do not have to carry wallets, bags or pieces of plastic to navigate the real world.

While convenience retailers don’t generally have to worry about deepfake videos, they do have a big issue regarding the verification of who is actually standing in front of them. Help may be on the way with the introduction of digital IDs that can be used on a phone.

In a recent Convenience Technology Vision Group (CTVG) meeting, we discussed the complexities of creating a digital ID. Christina Hulka, executive director of the Secure Technology Alliance (STA), gave the group an overview of what they are doing to create a national digital ID program. Without

Help may be on the way with the introduction of digital IDs that can be used on a phone.

getting too much into the details, the STA is creating a way to tokenize a person’s identity so that it is verified with a centralized registry and embedded in the phone on which it is kept. The token is unique to the phone and the person.

There would be a reader in the store that would scan the token, compare it against the database and verify whether it is legitimate. It would still be up to the retailer to determine whether the photo on the phone matches the person who’s holding it — in the same way the retailer has always had to with a physical ID — but this new technology provides an opportunity to develop more extensive loyalty programs, payment options and customer interactions. You may also have heard of TruAge, an initiative that was launched by NACS several years ago. It works the same way as the STA program does and has been adopted in several states.

The CTVG Vision Report on the meeting (available at vgnsharing.com) provides valuable insight into how digital IDs can address fraud concerns, such as credit card misuse. With a verified identification system, credit card fraud can be reduced because the payment system will reconcile whether the buyer’s ID matches the one they have for the card. If the two don’t match, the sale won’t go through.

The report also addresses the challenges that rolling out a national digital ID program face. First of all, since the United States does not have a national ID system (other than the Social Security number, which does not currently have a photo attached to it), each state has developed its own requirements for accepting and authorizing the verification of their identification cards or driver’s licenses. As you can imagine, getting approval in each state is a laborious process.

The second big challenge is getting the digital ID readers into stores. As we discovered with the EMV conversion, retailers are reluctant to make hardware upgrades unless there is a proven benefit for doing so.

One way to encourage the investment in equipment would be for state authorities to say that when a retailer uses a digital ID verification system, they are not held liable for underage selling. The benefit of not having to worry about a law enforcement sting operation or underage selling violations would be a real positive.

The other way to provide a retailer benefit is to make sure the hardware and software have an open API that integrates into legacy point-of-sale systems and other platforms. This would really unlock the value by linking digital IDs to loyalty programs, retail media networks and government benefit programs.

The effort to reduce the cost of implementing digital IDs and integrating them into other platforms has an advantage in that its application could impact multiple industries. There are all types of businesses that would benefit from a verified digital ID: pharmacies, restaurants, bars, casinos, airlines and cannabis-related retail stores. The economies of scale that go with implementing a program at so many locations should drive down the cost of hardware and encourage software companies to open up their platforms for easy integration.

At the end of the day, it is up to you to make sure that your store is operating responsibly and legally protect the interests of our underage neighbors. It is a responsibility we have to our community, and it is one that needs to be taken seriously 24/7/365. CSN

Roy Strasburger is CEO of StrasGlobal, a privately held retail consulting, operations and management provider serving the small-format retail industry nationwide. StrasGlobal operates retail locations for companies that don’t have the desire, expertise or infrastructure to operate them. Learn more at strasglobal.com. Strasburger is also cofounder of Vision Group Network, whose members discuss future trends, challenges and opportunities, and then share with all retailers and suppliers, regardless of the size of their business.

Editor’s note: The opinions expressed in this article are the author’s and do not necessarily reflect the views of Convenience Store News

THAN BEST NO LESS

AS KWIK TRIP CELEBRATES SIX DECADES IN BUSINESS, THE RETAILER REFLECTS ON HOW IT GOT TO WHERE IT IS TODAY — AND WHERE IT’S GOING NEXT

By Angela Hanson

INSIDE KWIK TRIP INC.’S headquarters in La Crosse, Wis., it’s not hard to reach CEO Scott Zietlow. More often than not, the second-generation owner can be found in his office without needing to knock on the door.

“I literally have an open-door policy,” Zietlow shared with Convenience Store News during a recent visit to the convenience store chain’s campus. “So, it’s rarely closed.”

On Zietlow’s wall hangs a large regional map marking every Kwik Trip convenience store and travel center — one that must be regularly updated as the retailer is on its way to having 1,200 stores by the year 2030. The company currently operates 870-plus locations, including those that operate under the Kwik Star banner in Iowa, Illinois and South Dakota.

Sixty years after Kwik Trip was founded in Eau Claire, Wis., in 1965 by Scott’s father Don Zietlow and business partner John Hansen, leaders of the family-owned company have no intention of slowing down. Periodically, the company goes through an exercise in which it looks at every

municipality with more than 1,500 people in its operating area to determine whether its capacity for c-stores is saturated or whether Kwik Trip could fill out the area.

“It’s not just about the stores, it’s about production and distribution and the full ecosystem,” said Zietlow, noting that adding 45 to 50 stores per year is “the sweet spot” in terms of absorbing them into the company’s processes for production, distribution, hiring and training.

Along with its expansion efforts, which Kwik Trip primarily pursues via new-build stores due to its minimum square footage requirements, the retailer is about halfway through a three-year interior and exterior remodeling project that will align all locations in terms of look and store quality.

“Not everybody continues to upgrade

“We don’t intend to be the biggest, but we do intend to be the best.”

—

Scott Zietlow, CEO, Kwik Trip Inc.

their locations and put money back into them. That, I think, is a poor strategy,” Zietlow said.

These efforts all contribute to Kwik Trip’s primary long-term goal, which is less about raising its store count than it is about raising the quality of the chain’s reputation.

“We don’t intend to be the biggest, but we do intend to be the best,” the chief executive said. “That is definitely, always a goal.”

Committed to Culture

Much of Kwik Trip’s success comes from founder Don Zietlow’s strong vision for the company and his decision to make major investments in initiatives such as the centralized dairy, kitchens and bakeries, as well as the shift to focus on foodservice in the early 2000s, long before it was common wisdom that the category was the future of convenience retail.

As chairman of the board since 2000, Scott Zietlow was “involved in every major decision in this company this century,” he said, but prior to succeeding his father, he served as a professor of surgery in the trauma, critical care and general surgery division of the Mayo Clinic in Rochester, Minn. In his post-retirement career as Kwik Trip’s CEO, Zietlow uses many of the same skills to pursue his goal of servant leadership and live up to the responsibility of leaving things better than one inherited them.

“My goal is to make everybody better and to help them in their leadership skills and development, so that everybody wins,” he said. “One of the most rewarding things I did in my prior life was train the next generation of surgeons … to become competent and caring for others.”

Pursuing a similar goal at Kwik Trip benefits the company and the people who make it what it is.

“It’s not about me, it’s about how we make

things better for the institution or the company, develop the next generation of leaders, and how we best serve our customers,” Zietlow said, recalling a familiar saying of his father. “The family needs to take care of our coworkers, and our coworkers need to take care of our guests — except do it 12 million times.”

It’s About People

The development of Kwik Trip’s present-day culture began around 21 years ago, according to John McHugh, vice president of external affairs, who was recruited as

Scott Zietlow (wearing hat) took over the CEO role from his father in 2023.

a trainer around the time that the company’s “cultural revolution” began.

Inspired by a convention presentation by former Southwest Airlines Vice President of People Ann Rhoades and the airline’s highly regarded customer service, Don Zietlow became determined to create a customer service culture that was the pinnacle of the convenience store industry. At the time, Kwik Trip had a training program, but no real leadership development.

“I said, ‘Well, I’ll give you one year,’” McHugh recalled. “I was here three months and said I’m never leaving because the higher up you went in the company, the nicer the people got. I feel like it’s usually the opposite.”

Today, Kwik Trip’s hiring process looks beyond retail

“I challenge you to go to any one of our employees and say, What’s Kwik Trip’s mission statement? They’ll all be able to tell you.”

— John McHugh, Vice President of External Affairs, Kwik Trip Inc.

experience to focus on character. Three key interview questions are:

• What was the last random act of kindness you did?

• How have you made a difference in someone’s life in the last six weeks?

• Have you treated others as you’d like to be treated?

“I challenge you to go to any one of our employees and say, What’s Kwik Trip’s mission statement? They’ll all be able to tell you — it’s to treat others as you’d like to be treated, to make a difference in someone’s life,” McHugh said. “It’s the golden rule applied to business.”

The company’s modern-day leadership development includes more than three weeks of training at the Kwik Trip Support Center in La Crosse, covering “every topic under the sun in terms of leadership,” along with ongoing leadership development at the store and district levels. Executive coaching and 360-degree leadership assessments at higher levels are also routine.

As a result, Kwik Trip tends to promote internally, giving coworkers the chance to build a career, not just have a job. “It’s not

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very often that we hire a high-level leader from outside the organization, and partly it’s because the culture is so unique here,” McHugh said.

Beyond payment and benefits, company leadership believes that what any coworker wants — whether they work for Kwik Trip or an entirely different business — is “to know that there was a purpose to your job, that it was more important than just selling stuff to people,” he said.

“When you know at the end of the day that because of the quality guest service you provided that you made a difference in someone’s life, that gives you job satisfaction deeper than the paycheck,” McHugh continued. “When you have that kind of deep satisfaction, it inspires you to do the same thing tomorrow.”

Because Kwik Trip asks much of its coworkers, it also takes steps to give them the support they deserve. Procedures are in place to escalate the more challenging guest encounters to the proper departments rather than push everything to be handled at the store level.

“Our coworkers put up with a lot, but there’s some things that they should not have to put up with,” McHugh said. “So, when our coworkers know that we’ll support them in those difficult situations and protect them, I think that’s important in a culture like ours.”

The company always tries to resolve customer incidents calmly but at the end of the day, the customer does not always come first if they are being inappropriate or threatening. “We believe that our coworkers come first because if we don’t treat them with compassion internally, I can’t expect them to work an eight-hour shift and be compassionate to the public,” he explained.

Additional ways Kwik Trip shows appreciation are regular public recognition of coworkers and customer success stories, a more recently implemented coworker appreciation week that includes a drawing for a $5,000 bonus check plus the associated taxes, and a one-month paid sabbatical for company veterans who reach 20 years. There’s also an employee stock ownership plan (ESOP), which gives 40% of pretax profits back to Kwik Trip coworkers each year.

As a vertically integrated company, Kwik Trip operates its own bakery, dairy, distribution center and more.

“I’m not aware of any other company in this country, probably the world, where that exists,” Zietlow said. “That has not changed, and we don’t intend to do that. I think it’s given everyone a sense of family ownership that’s important for our culture.”

It’s possible that Kwik Trip could grow faster without the ESOP, he admitted. “But maybe you wouldn’t, because you wouldn’t have the same quality of people and the same culture.”

The Next 60 Change is a necessary part of success, Zietlow acknowledged.

“We’re in the business of convenience. What is it you can continue to provide the customer that they want or need? And so, we’ll continue to morph,” he told CSNews

He pointed to Kwik Trip’s use of no-fee

Kwik Trip’s Core Values

Innovation

Excellence

Honesty & Integrity

Humility

Respect

Work Ethic

ATMs as a small example of an amenity that may be leaving money on the table but cultivates loyalty because it is better for customers.

At the same time, certain aspects of Kwik Trip have not changed since the company’s founding, nor will they, according to Zietlow.

“Our goals, our values, none of that has changed. That’s kind of our true north, if you will, and that helps ground you at times with decisions about what you could or should do,” he said. “Other things that haven’t changed are the long-term strategy and vision because we intend to continue to be family owned, privately held, and that is a very good anchor.”

During CSNews’ visit to Kwik Trip’s headquarters, Zietlow highlighted one statistic in particular that makes the company stand out and makes him proud.

“Only about 13% of family-owned businesses make it to 60 years in this country,” he noted. “The goal is: How do you get to the next 60? That’s what we’re doing.”

Kwik Trip, which today has grown to a chain of 870-plus locations across the Midwest, opened its first store in 1965.

Building a Foodservice Empire From the Ground Up

Kwik Trip’s success is rooted in vertical integration and the determination to be the best

KWIK TRIP IS A GOLD STANDARD for quality control of its food and beverage products and their fresh distribution due to its vertical integration, which enables the retailer to operate its own bakery, dairy, kitchens, food safety lab, distribution center and more.

Today, an astonishing 80% of in-store products are Kwik Trip branded products that it makes, ships and sells.

However, in the early 2000s when the company began pursuing foodservice in earnest, it was far from a guarantee that it would become a core part of its success.

The pivot to foodservice came directly from longtime CEO and company cofounder Don Zietlow, who recognized that tobacco products were facing longterm decline.

“If Don said we were going to do something, you didn’t question it, so you didn’t doubt it,” said Paul Servais, retail foodservice director at Kwik Trip, who was a district leader at the time. “My approach was, ‘OK, what do I gotta do to make this work?’”

By around 2002, Kwik Trip had launched a high-end sandwich program. The next year, most locations had simple breakfast programs. The expansion didn’t automatically bring success, though.

“We were selling more, but we weren’t selling the numbers we felt we could,” Servais recalled. “Our waste was atrocious. Our execution at store level was mediocre at best. We still had a lot of people in the company that didn’t believe we should do it.”

80% of in-store

products

are

Kwik Trip

branded products that it makes, ships and sells.

So then, how did Kwik Trip go from a fledgling foodservice purveyor to its current status as the winner of multiple Convenience Store News Foodservice Innovators Awards?

“Relentless execution,” Servais shared.

Development of the foodservice district leader role was also key. Then and now, the sole responsibility of foodservice district leaders is to sell more food safely with less waste.

The role has become so important, in

in the company. Every current district leader was once a foodservice district leader, which ingrains Kwik Trip’s food culture in everybody, according to Servais.

The Power of Fried Chicken

By the mid-2010s, Kwik Trip’s prepared food offering was “really exploding,” he said. Then in 2019, it launched a proprietary fried chicken program, made fresh from raw, unfrozen chicken.

“That took our whole food program to another level,” Servais recounted. “We had a great program before, but it legitimized it to all the customers that hadn’t tried it yet

because they’re like, ‘OK, they’re frying fresh food. We know their food’s got to be quality. We know it’s fresh. It’s not just a rehydrated burger.’”

Kwik Trip’s vertical integration gave it more control over the chicken program, but it also presented the company with some challenges. “We had to basically rewrite all our policies and it wasn’t just at store level, it was at warehouse level since we self-distribute,” he explained.

Changes had to be made at the distribution center for raw product and inside semi-trucks, which include compartments for ambient temperatures, coolers and freezers. Store kitchens also had to have designated sections for working with raw chicken.

“I would not have the success in our food program that we have if we didn’t have vertical integration. There is no way.”

— Paul Servais, Retail Foodservice Director, Kwik Trip Inc.

“At that point, we were well established and we had a food safety team; we had a store engineering design team that would pretty much take anything that myself and the chef drew up and make it into a kitchen for us,” Servais said. “We had the resources to do this ourselves and that’s why it works so well for us.”

Three years into the fried chicken program, sales were “on fire,” he recalled. The introduction of fryers in every store also started “a whole new ballgame in foodservice” for Kwik Trip.

“Fry everything!” he said. “Our next best-selling group of foods has become appetizers. Cheese curds, the mini tacos, all that fried stuff. It’s comfort food. Anything cheesy is a homerun.”

Thanks to vertical integration, Servais and his team work hand-in-hand with Kwik Trip’s research and development team and production team to come up with new items.

“When we do LTOs [limited-time offers], we throw out ideas of flavors of ice cream and milks that sound nuts. ... We can do that because it’s all here,” he said. “We’re not going to an outside company saying, ‘Hey, do you want to try and take a risk and make that for us?’ We’re taking our own risk and making our own products.”

The benefits of vertical integration apply as well to production and other operations that keep things running smoothly. The retailer is vertically integrated through real estate, as well through store engineering and repairs with its own service technicians that go to the stores.

“I would not have the success in our food program that we have if we didn’t have vertical integration. There is no way,” Servais asserted. CSN

Kwik Trip's first hot food program (above) started modestly. Today, the retailer serves up fried and rotisserie chicken, pizza and much more.

Good News, Bad News

The FDA recently authorized more products, but illicit vapes remain a big problem

By Renée M. Covino

E-CIGARETTES AND VAPES are lighting up the nicotine news feed once again.

Most recently, the list of approved e-cigarettes expanded by five items in July, when the U.S. Food and Drug Administration (FDA) authorized the sale of Juul Labs Inc.'s e-cigarette device and refill cartridges in tobacco and menthol flavors.

An FDA spokesperson said the agency authorized the handful of JUUL products after additional evidence provided by the company demonstrated that the benefits to public health outweighed the risks. The FDA noted that Juul Labs “submitted robust data — including a two-year longitudinal cohort study — demonstrating high rates of adults completely switching from cigarettes to either the tobacco- or menthol-flavored JUUL products.”

After a federal ban of its products in 2022

and then a subsequent court challenge/appeal, Juul Labs said it views the recent authorizations as “a significant milestone.” The company plans to launch additional FDA applications soon.

“Over the past decade, our product design team in Silicon Valley has been working on the next generation of JUUL products to provide adults who smoke with preferred alternatives to cigarettes,” a company spokesperson stated. “[The FDA authorization] enables us to submit applications with updates to the device and pod hardware with the goal of improving the user experience.”

The company is touting its new JUUL2 platform as incorporating “a suite of innovative technology for an enhanced, more consistent vapor experience for adults moving away from cigarettes, and built-in access control capabilities to prevent underage use.” Juul Labs also said it’s developed a portfolio of adult-oriented flavors beyond Virginia tobacco and menthol to provide adults who smoke with an increasing variety of options.

“The end of smoking in America is within our grasp,” the

company spokesperson said. “Our team remains committed to our mission to make the cigarette obsolete.”

The Impact of the Illicit Market

Meanwhile, it’s no secret that illicit disposable vapor products continue to flood store shelves across the country, typically targeting underage consumers with inappropriate flavors — some even identified as Bubble Gum and Rainbow Candy.

Manufacturers of illicit vape products routinely engage with customs brokers who facilitate the importation of the illicit disposable vapor products by misdeclaring shipments, according to Matt Domingo, senior director of trade external relations for Reynolds American Inc., maker of Vuse products. He also explained to Convenience Store News that illicit product manufacturers routinely under-declare the value of the package contents, thereby avoiding taxes.

Retailers remain concerned about illicit market activity around disposable vape products. While it is difficult to quantify the direct sales or volume impact, 63% of retailers surveyed this April by Goldman Sachs Global Investment Research said illicit activity has grown worse, compared to 57% who said the same in January.

Several retailers in that same survey indicated that more nicotine trips are shifting to vapor shops and/or retailers willing to sell illicit vapor products. In terms of the 2025 yearend outlook, less than 27% of retailers are optimistic about the illicit market pressures easing up. Many cite slow progress on enforcement by the FDA.

The Goldman Sachs survey, however, came out just before the FDA and U.S. Customs Border Protection (CBP) in May seized illegal e-cigarettes valued at nearly $34 million. The joint operation took place in Chicago and targeted shipments of e-cigarettes that violated the Federal Food, Drug and Cosmetic Act and intellectual property rights for unauthorized use of protected trademarks. The seized e-cigarettes were primarily imported from China and intended for distribution across the United States. All the products lacked premarket authorization from the FDA.

While there have been other CBP vape seizures, what’s unique about this one is that customs is calling out the illegal practice of misidentifying the e-cigarettes as innocuous goods, such as flashlights, according to Bryan Haynes, a partner with the national law firm of Troutman Pepper.

For the first time, the FDA sent letters to 24 tobacco importers and entry filers responsible for importing these illegal e-cigarettes, advising them that it is a federal crime to make false statements or entries to the U.S. government. The FDA is seeking information on the steps they’ve taken to ensure compliance with applicable federal tobacco laws and regulations.

“You’re continuing to see the supply of illicit products being constricted, so fewer and fewer will be available for sale in the U.S.,” Haynes said. “There’s pretty robust enforcement at the border, but what’s still missing in my mind is the enforcement efforts once products get into the country among retailers and distributors. You’re seeing warning letters, several money penalties and injunction actions, but not comprehensive actions.”

In recent public comments, both U.S. Health and Human Services Secretary Robert F. Kennedy Jr. and FDA Commissioner Dr. Martin Adel Makary provided insight into the Trump Administration crackdown on illicit disposable vapor products from China.

“We are going to wipe out the illicit vapes off the market,” Kennedy said.

“Chinese smugglers are laughing at us, and we are going to stop it,” Makary vowed.

David Spross, executive director of the

National Association of Tobacco Outlets, told CSNews that “based on these comments and recent enforcement actions, I would expect a further crackdown on illicit disposable vapor products from China.”

Retailers’ Responsibility

With the overflow of different illicit vapor products entering U.S. borders, enforcement is still struggling to keep up in real time, but that doesn’t ease up retailer responsibility.

So, what can, and should, convenience store retailers do right now?

63% of retailers surveyed this April said illicit activity has grown worse, compared to 57% who said the same in

January.

Source: Goldman Sachs Global Investment Research

FDA Commissioner Dr. Martin Adel Makary has vowed to put a stop to Chinese smugglers.

As of press time, the FDA had authorized just 39 vapor products. Numerous applications remain under review, years after filing.

“It’s important for c-stores to not only be knowledgeable about the products, but also about which products can be sold, as opposed to illicit disposable vapor products which are openly marketed to youth and could be subjected to costly fines and other penalties,” Reynolds’ Domingo stated, adding that the company engages closely with retailers, wholesalers and their respective state associations on these issues.

“I would be more diligent, for sure, if I were a retailer,” Haynes advised. “While the government, principally the FDA, has not been aggressive about enforcement once these products get into the country, that could change at any time and it is reasonable to assume that given the administration’s known stance on imported goods, including imported goods from China, it would not be surprising if it directed additional resources to [this effort].”

Retailers also should be aware that in midJune, the U.S. Supreme Court ruled that marketing denial orders (MDOs) issued by the FDA can be challenged not only by the manufacturer or importer of the products, but also now by retailers who would sell such products.

“As a result, more challenges to MDOs are likely to be brought before the U.S. Court of Appeals for the Fifth Circuit, where litigants have generally had greater success to date in challenging MDOs relative to other appellate courts,” said Haynes.

This is a good thing for retailers looking to stock legitimate products on their shelves.

Harm Reduction Hope

As of press time, the FDA had authorized just 39 vapor products (see “What’s Legal?” sidebar on page 54). Numerous applications remain under review, years after filing.

States Stepping In

Mississippi recently joined 13 other states trying to curb illicit e-cigarettes and vapes through vapor product directory laws, also known as e-cigarette registry laws. The introduction of these bills is in response to the uncertainty around the Premarket Tobacco Product Application (PMTA) process and the proliferation of flavored disposable e-cigs on the market.

While the U.S. Food and Drug Administration (FDA) has authorized the marketing of only a few dozen products, there are still thousands awaiting responses, noted David Spross, executive director of the National Association of Tobacco Outlets (NATO).

“As a result, retailers and the public lack clarity as to the regulatory status of many products, including those for which a PMTA was never filed, those for which a PMTA was timely filed and is awaiting an order, and those for which a PMTA was denied but the application remains pending for legal reasons,” he detailed.

The new state-level legislation creates a state-based directory/registry that requires e-cigarette and vape manufacturers to submit information to state tobacco regulators regarding the FDA regulatory status of their products.

“Ultimately, for states that have passed directory legislation, state enforcement will be critical to cleaning up the marketplace,” Spross said. “Retailers need to be aware of these laws and need to be in compliance to avoid enforcement action.”

With many states actively enforcing these vapor directory laws, Reynolds American Inc. expects some positive impact. “However, not every state will have the same outcomes, and many still do not have a directory in place,” said Matt Domingo, the company’s senior director of trade external relations. “Therefore, compliant retailers must continue to take the initiative to inform local/state and federal authorities on these issues.”

Spross noted that NATO has been monitoring the state laws. “Some of our membership has been supportive of this kind of legislation to rid the market of illegal vapor products, while others believe that this legislation is unnecessary as it is the FDA’s role to review products and enforce against illicit tobacco and nicotine products,” he said.

“Providing transparency around where those products stand in the review process would be very helpful for retailers,” Spross maintained. “Additionally, FDA needs to authorize more vapor products to provide adult tobacco and nicotine consumers wider access to choices that help them successfully move down the risk continuum.”

Haynes agrees that while more rigorous enforcement is part of the solution, the other piece is to authorize more scientifically backed products.

The model for tobacco harm reduction is Sweden, according to Spross, where smoking rates are low and as a result, so is tobacco-related disease.

“This is attributable to the use of snus, a tobacco product that does not require combustion,” he explained. “While not risk-free, vapor products are also noncombustible and therefore should be used as part of a tobacco harm reduction strategy.”

Haynes is hopeful that more FDA authorizations will come before year’s end, including products in the vape and pouch space that have followed a science-based approach. CSN

What’s Legal?

As of July 2025, these are the only e-cigarette/ vape products authorized by the FDA to be sold in the United States, listed in alphabetical order by manufacturer:

Juul Labs Inc.

• JUULpods (Menthol 3.0%)

• JUULpods (Menthol 5.0%)

• JUULpods (Virginia Tobacco 3.0%)

• JUULpods (Virginia Tobacco 5.0%)

• JUUL Device

Logic Technology Development LLC

• Logic Regular Cartridge/Capsule Package

• Logic Pro Capsule Tank System (1)

• Logic Vapeleaf Cartridge/Capsule Package

• Logic Pro Capsule Tank System (2)

• Logic Vapeleaf Tobacco Vapor System

• Logic Power Tobacco e-Liquid Package

• Logic Pro Tobacco e-Liquid Package

• Logic Power Rechargeable Kit

NJOY LLC

• NJOY DAILY Rich Tobacco 4.5%

• NJOY ACE POD Classic Tobacco 2.4%

• NJOY DAILY EXTRA Rich Tobacco 6%

• NJOY ACE POD Classic Tobacco 5%

• NJOY DAILY EXTRA Menthol 6%

• NJOY ACE POD Rich Tobacco 5%

• NJOY DAILY Menthol 4.5%

• NJOY ACE POD Menthol 2.4%

• NJOY ACE Device

• NJOY ACE POD Menthol 5%

“FDA needs to authorize more vapor products to provide adult tobacco and nicotine consumers wider access to choices that help them successfully move down the risk continuum.”

— David Spross, National Association of Tobacco Outlets

R.J. Reynolds Vapor Co.

• Vuse Vibe Power Unit (1)

• Vuse Replacement Cartridge Original 4.8% G2

• Vuse Vibe Tank Original 3.0%

• Vuse Alto Power Unit

• Vuse Vibe Power Unit (2)

• Vuse Alto Pod Golden Tobacco 5%

• Vuse Ciro Power Unit (1)

• Vuse Alto Pod Rich Tobacco 5%

• Vuse Ciro Cartridge Original 1.5%

• Vuse Alto Pod Golden Tobacco 2.4%

• Vuse Ciro Power Unit (2)

• Vuse Alto Pod Rich

Firing Up Your Foodservice Business

Highlights from the 2025 Convenience Foodservice Exchange event in Denver

A Convenience Store News Staff Report

FOODSERVICE EXECUTIVES from across the convenience store industry enjoyed food tours, store visits, top-notch speakers, one-on-one networking and more at the 2025 Convenience Foodservice Exchange (CFX), presented by Convenience Store News

Held in Denver, the 10th annual CFX event was an exclusive networking and experience-focused conference that left attendees with innovative ideas, best practices and new connections to take back to their organizations and strengthen their foodservice business.

Multiple executives from leading food-forward convenience store chains spoke at the event, as well as prominent category experts. Among the highlights were the keynote presentation on Kwik Trip Inc.’s holistic approach to culture; a powerhouse panel that delved into the generational shifts driving marketplace changes; and the presentation of new and insightful research conducted among both convenience store shoppers and retail operators.

The agenda also included the 2025 Foodservice Innovators Awards ceremony; a local history and food tour of downtown Denver; and store tour visits to c-store foodservice market leader Maverik Inc. and innovative community market Leevers Locavore.

Read on for highlights from the event.

How Kwik Trip Cooked Up a Successful Company Culture

WHAT IS THE FOUNDATION of an outstanding foodservice culture?

At Kwik Trip, it's more than what's on the menu. The La Crosse, Wis.-based operator of nearly 900 convenience stores often symbolizes its culture as a triangle, with the three sides consisting of food, the company's vertical integration and — perhaps most importantly — people.

During the keynote presentation of this year’s Convenience Foodservice Exchange, two of Kwik Trip’s directors of foodservice, Selia Kleine and Ben Wilson, discussed how the company defines a food-forward culture and how that culture has empowered the retailer to be the best it can be.

According to Wilson, foodservice has been the baseline of Kwik Trip's culture for many years — since cofounder and former CEO Don Zietlow looked at the convenience landscape and predicted that c-stores would not survive long-term focusing on gasoline and cigarettes.

"It was not easy. It was extremely hard," Wilson said of the pivot toward foodservice, noting that Kwik Trip's early efforts included a lot of trial and error and throwing things away when they got it wrong. "It took a lot of perseverance and drive to work through all that to get to the right mix of product and to start building the foodservice program that we have today."

Zietlow's early vision for Kwik Trip's foodservice culture, and the ensuing trial and error as the company worked to make it a reality, led to the focus on company values that persists to this day and is regularly discussed at meetings on all levels.

"The idea of our vision is to be better than the best. It's the idea of constant improvement," Wilson said, adding

that Kwik Trip's goal is fundamentally a variation of the Golden Rule. "It's to serve our customers and the community more effectively than anyone else by treating our customers, coworkers and suppliers as we personally would like to be treated, and to make a difference in someone's life."

Alignment with Kwik Trip's core values is something the company looks for in its hiring process. "We can train a lot of things. It's hard to train values," he said.

Once hired, coworkers have numerous opportunities to grow within the company, but long-term advancement requires foodservice experience. Currently, seven of Kwik Trip's 10 zone leaders and 58 of its district leaders were once foodservice district leaders.

Both Wilson and Kleine have experienced long-term, food-focused growth at Kwik Trip firsthand. Kleine started working for the company in high school, while Wilson balanced work at Kwik Trip with his service in the National Guard for more than a decade.

"When I think of how fast you can grow with the company, if it's something you really want to do, the growth is there," Kleine said. "If you want it, you just have to be willing to put the time in."

Inside its stores, Kwik Trip “coworkers” focus on fast and friendly service first, as well as food safety, clean restrooms, and the quality and freshness of its food and beverage products. Coworkers are empowered to do what's needed to make things right for the customer.

While Kleine's and Wilson's careers and Kwik Trip's foodservice offering may have changed over the years, Zietlow's vision for the company's culture has not, they explained.

"Don talked a lot about how his job was to take care of us as employees. If he takes care of us as employees, our job is to take care of the customers. If our coworkers are happy, then our customers are happy," Kleine said. "A lot of that comes down to our coworkers having a purpose and knowing why they come to work every day, and their 'why' is to take care of our guests. And if they love what they're doing, they're going to want to come to work."

Competitive Differentiation Today & In the Future

WHEN IT COMES TO COMPETITION for foodservice customers, factors such as consumer perception, food quality and staff friendliness will always play a role in a brand's competitive strength. But as convenience store retailers increasingly go up against segments such as fast-casual and quick-service restaurants (QSRs) — not to mention unconventional venues like micromarkets and prepared food in universities and healthcare — they need to take steps to leverage their strengths and minimize their weaknesses.

This is particularly true when competing against QSRs, which have taken notice of how c-stores own snacking and are trying to make inroads in that space, according to CFX presenter Tim Powell, a principal at Chicago-based research and consulting firm Foodservice IP.

"We've hit the map," he said, noting that the convenience channel's strength in snacking gives it a collective point of competitive differentiation compared to other foodservice channels, and makes it a natural fit for consumers who are increasingly eating snacks rather than meals.

C-stores also benefit from the retail products they offer, which gives consumers more reasons to visit. Disposable income and unemployment levels are key factors in foodservice spending as both impact consumer confidence. When confidence is low, people are likely to cut outside-the-home food purchases first, according to Powell.

In addition to brick-and-mortar foodservice competitors, c-stores are competing with third-party delivery providers such

as DoorDash and Uber Eats. These services offer extra convenience, but have also pushed prices up significantly in recent years, even as standard QSR prices are rising.

"These are opportunities," Powell pointed out.

Recognition of convenience stores as a competitive threat is pushing QSRs into rolling out more snacks and specialty beverages; grocers into experimenting with smaller formats; and automated concepts into positioning around optimized convenience. "They're stealing our stuff right from under us," he said, which means "we've gotten on their radar."

C-store operators that recognize this shift in competition and take steps to positively differentiate themselves are the most likely to thrive. The good news is there's numerous avenues to do so, such as leaning into limited-time offers, local/regional items, value, better for you, madeto-order, bakery, grab and go, and more.

"There's a ton of bases of differentiation that you can look at," said Powell.

Whatever operators decide to focus on, they should make the basics of fast and friendly service their foundation. These two factors are the ones most likely to prompt consumers to visit a particular c-store vs. another venue, according to Foodservice IP's April 2025 consumer survey.

Having a good selection of grocery staples is also popular with c-store customers and is not something they can get at a QSR like Taco Bell or McDonald's.

Powell urged CFX attendees to monitor the full competitive landscape and their resources; find a niche; be storytellers around quality and value; look to foodservice for new snacks; lean into customization; and have clear, multifaceted goals for investment.

"Define your value beyond price," he emphasized.

New Breakfast and Snack Solutions Elevate Your Grab-and-Go Lineup

From 5 Generation Bakers — makers of the popular Jenny Lee Swirl Bread — come two indulgent additions for your c-store menu.

Jenny Lee SammichesTM

• Sausage, Egg & Cheese

• Bacon, Egg & Cheese

Heat & Eat French Toast Breakfast Sandwiches are made from our award-winning, customerfavorite Jenny Lee Cinnamon Swirl Bread® — go from fridge to cash register in less than 1 minute Interested in

Individually packaged for ready-to-sell convenience and increased sales!

Jenny Lee GOBsTM Pittsburgh’s take on the whoopie pie features luscious Jenny Lee buttercream sandwiched between moist layers of decadent cake — an upgraded, indulgent take on a classic sweet snack.

• Chocolate GOB — devil’s food cake with white buttercream

• Cinnamon GOB — yellow cake with cinnamon buttercream

• Red Velvet GOB — red velvet cake with white buttercream

and

Unlocking the Power of Foodservice Beverages

BUILDING A STRONG dispensed beverage program doesn't mean offering only the hot, cold and frozen options that have always been popular. Some of the latest successes in the beverage world have proven to be a surprise, panelists shared during the event.

During a discussion on the power of beverages in foodservice, Dave Grimes, vice president of foodservice at Martin and Bayley Inc./Huck's, which has more than 130 locations across Illinois, Indiana, Missouri, Kentucky and Tennessee, described some recent aha moments with flavors at the soda fountain. Currently performing well are several zero soda options, such as Coke Zero, Dr Pepper Zero and MTN Dew Zero, as well as some exotic flavor shots like Raspberry Hibiscus, Mango Tango and Orange Ginger.

"I was the most skeptical guy, but it's working," Grimes shared. "On the coffee side, everybody has a Colombian and a House Blend, but we brought in Blueberry and it's one of our best sellers."

As a Gen Xer, Jeff Hagans, category manager for Greenville, S.C.-based The Spinx Co., which operates more than 90 convenience stores across North Carolina and South Carolina, admitted that "I drink more sodas than I should." He's been surprised by how the younger generations in particular are gravitating toward flavors, fizzy drinks and enhanced waters.

"This is where we're really missing the boat in c-stores, not getting ahead of the next generation in fountains," he said. "I don't think where we are today is going to play well 10 years from now."

He also observed that frozen dispensed

beverages are seeing "something of a comeback," noting that Spinx is leveraging this segment for limited-time opportunities and dessert promotions.

Product naming can be used to make beverages stand out from competitors, according to Grimes. All of Huck's dispensed beverages have names like Bigg Swigg, Bigg Chill and its "newest baby," Bigg Swirl. These names even lead to social media excitement, especially when "we send the Bigg Swigg guy to new store openings" and pictures are taken and posted, he explained.

The panel also featured Suzy Badaracco, president of Culinary Tides Inc., which helps its food industry partners navigate trends. She revealed that "adventure and excitement through taste" is gaining traction, along with the idea of beverages being "a thrilling comfort" to consumers.

Badaracco encouraged the audience to think about "drinking outside the box" when it comes to displays and promotions that combine food items and beverages.

"Foodservice needs to play with retail a bit more," she urged.

Her "surprise" endcap suggestions included:

• Create a "Make Your Own Drink" kit with one canned or bottled beverage, one mixer and one add-in.

• Have a "Flavor Booster" station offering add-in liquids that can enhance both foodservice and packaged drinks; rotate it seasonally.

• Do unexpected pairings of shelf-stable items with foodservice beverages, inspiring more impulse purchases "from aisle to aperitif."

• Make "grab-and-go" boxed sets, pairing salty snacks with beverages that take customers beyond the cooler displays.

• Give shoppers dinner party ideas, especially around holiday time, pairing canned cocktails with hot cocoa and peppermint sticks, for example.

"Consumers value authenticity, convenience and a sense of adventure in their beverage choices today," Badaracco concluded. "Elevated experiences make up the backbone of many trends, but remember, it does not always mean higher cost."

Does Your Store Pass the Generation Taste Test?

DO YOU KNOW THE DIFFERENT ways to please baby boomers, Generation X, millennials and Generation Z through the customer journey? How about through loyalty programs or online food ordering platforms?

According to a group of panelists who discussed generational shifts in food trends, generational segmenting should be studied and strategized by today's convenience store retailers. However, they should also allow for some complex and overlapping layers.

In its basic form, generational segmentation is important to the convenience channel because of the buying power of each generation, explained Kevin Farley, a convenience industry expert and founder of Farley Retail Advisors. "The spending power is increasing for millennials and Gen Z as it is decreasing for Gen X and boomers," he said.

The customer journey is at the heart of it all and is very fragmented right now, noted Jeannie Amerson, an executive consultant with W. Capra, specializing in retail technology. "It makes it tough when you're adding a loyalty program because you have to approach these generational consumers at different levels," she pointed out.

Amerson outlined some of the key differences between the generations in relation to the customer journey:

• Boomers prefer a certain way of shopping, which has been disrupted and changed, and they want clearer paths. They rely on the in-store experience to make decisions and/or look for something in stores after seeing it on TV.

• Gen X is blending traditional and digital touchpoints. They've often researched a product online before making the purchase in-store.

• Millennials are experts in navigating a nonlinear brand journey and have engaged with brands across all touchpoints. They want to be marketed to on social media by peers and influencers, and prefer a lot of user-generated content.

• Gen Z is very experienced in a highly fragmented journey, often discovering brands on social media and valuing that interactive experience across brands.

"It is really hard in our environment to create a uniformed customer experience across all of these different touchpoints," Amerson observed. "The consumer today wants to be talked to individually; that's a massive undertaking."

She advised retailers to make sure they are customizing their content by individual generations, using the right channels and reinforcing that with consistency to build trust.

Amerson also compared online food platform preferences by generation:

• Gen Z is most engaged with online food ordering, using third-party apps such as DoorDash and Uber Eats weekly, and frequently engaging with loyalty/branded mobile apps from retailers.

• Millennials adopted online ordering early and use it regularly, but they are also using subscriptions like Hello Fresh. They prefer mobile apps over desktop apps.

• Gen X uses online ordering platforms, but often from food ordering platforms, a website or on a branded app. They prefer desktop apps.

• Boomers are the slowest adopters; they don't trust the systems or technology is inconvenient for them. They use online ordering occasionally.

Lens Layering

Generational preferences offer sound insight, but Richard Poye, a trained chef and founder of the Food Trends Think Tank, warned retailers not to look through a single lens.

"If you oversimplify, you can really be challenged with a generational lens, especially for [chains] operating across wide geographies or serving varied economic demographics," he said.

Poye offered hatch chili peppers as an example, noting that a customer in New Mexico who grew up with fireroasted chilis is probably going to like them, whereas a customer of the same age, income and political affiliation in Atlanta, who probably has never eaten a hatch chili, might be afraid to try them. "Geographic bias has to be factored in," he advised.

While customer preference testing is a great starting point, layers must be added on. Poye recommends TURF (Total Unduplicated Reach and Frequency) analysis for retailers trying to streamline a new menu. This can help them identify the optimal combination of menu items to reach the maximum number of unique customers.

"The idea is adding new items without cannibalizing," he said. "TURF analysis helps you take the guesswork out of menu development and win more customers."

It's not about pleasing everybody, he cautioned, adding that retailers who attempt to do so won't have a clear strategy and will end up wasting a lot of food.

"Go and eat in local restaurants," he recommended, noting that when retailers expand into a new environment, the best menus grow from the intersection of generational preferences with regional understanding and culinary curiosity.

Rutter's Modern Experience

Just because its roots date back to 1747, that doesn't mean York, Pa.-based convenience store chain Rutter's isn't focused on the upcoming generations. In fact, it's just the opposite.

Philip Santini, senior director of advertising and foodservice, showed off the modern features of Rutter's new 14,000-squarefoot prototype store, which includes the 1747 Bar and Lounge. The concept boasts 20 unique TVs, gaming terminals, tickers on the walls for promotional engagement, and the ability to enjoy coffee or an adult beverage plus food from Rutter's madefor-you menu while playing and watching. The bar and lounge blends the energy of a sports bar with the ease and accessibility of a c-store — and clearly targets a younger adult crowd.

"It's really a sight to see," Santini stated.

Limited-time food offers and menu items that can be built upon are other ways Rutter's is enhancing its customer experience for upcoming generations. Santini cited bologna and cheese sandwiches with potato chips inside, a chicken/avocado/ bacon wrap, a fish and chips submarine sandwich, and a crab mac and cheese wrap as examples.

"These are all things that are going to increase our graphic excitement — photography communication is a very important way to talk to the next generation," he said.

What's not exciting anymore in the Rutter's world is loyalty cards. "We're really pushing the app first. App-focused data and graphics are now central to our loyalty offering and personalized offers," Santini said. "This is the path, the direction we need to take for years and years to come."

Philip Santini showed off Rutter's new 14,000-square-foot prototype store.

Exploring the Benefits of a Production Kitchen

A PRODUCTION KITCHEN, or commissary, to centrally produce finished foods such as breakfast sandwiches, lunch sandwiches, salads and burritos can decrease food costs, increase consistency and quality, and increase margins and profitability for convenience store retailers.

"Having a central commissary also takes the staff focus off food and puts it on guests," Bob Derian, a chef, traditional restaurant operator, convenience store foodservice director and partner in the Business Accelerator Team, said in a session on optimizing foodservice growth.

Derian shared six imperative steps for convenience foodservice retailers to get started:

1. Start with the menu — pick 10 SKUs. Everything flows from the menu, noted Derian, who is also the current owner of a multi-award-winning food truck and restaurant. He suggests starting small with just 10 items that can be assembled. "Think cold cuts, burritos and then keep tweaking until you love it. Start small and work on the process," he said. "Mixing and cooking can come later."

2. Run through "needs vs. wants" logistics. Based off the menu, operators should decide what they need vs. what they want. Consider ingredients, equipment, storage prep and warewashing. Find out what the current costs are, and consider seasonality and how to bring down the costs. This is also the time to examine transport logistics — what truck you're to use, where to park it, cross-dock it, etc.

3. Spend research time in your stores. Get feedback from guests, but also team members, about your current food items, Derian advised. For each item, ask if it looks appetizing; does it stay fresh; is it selling out; what is the waste; and what are the margins? Operators should look at all the numbers for a week at a time, consider what works and what doesn't, and then compare that to their 10 SKUs.

4. Look at established commissaries. Evaluate established commissaries for your needs, such as schools, churches, dinner-only restaurants, lodges and clubs. Operators should take into account the space they are using and what they might be able to share, including equipment, parking and a refrigerated production room, which is key, according to Derian. Find out when they're there and when they're not.

5. Create standards and processes. Establish a HACCP (Hazard Analysis and Critical Control Points) food safety program and understand what your responsibilities are to the public. "You don't want anybody sick or worse," Derian said. "Food safety is always No. 1." Operators must incorporate traceability (i.e., where did the food come from, where did it go, what were the temperatures on the truck when it was transported, etc.) and certify that their team is following guidelines from the U.S. Food and Drug Administration and Department of Agriculture. "Follow up, follow up, follow up, follow up," he emphasized.

6. Do the math, then tweak and start over. Figure out menu costs and add lease, labor and expenses. Set extended financial goals that project out six months, 12 months and 18 months. Revisit return on investment, projections for cost, labor, production units, waste and more, he advised. "Be nimble and be open to make changes. It's important that you listen to the math," Derian said. "Follow the money. What makes the most money for you?"

He cautioned c-store retailers not to get caught up in emotional decisions. "The numbers alone determine what stays and what goes, and what changes you need to make," he concluded.

Sponsors of the 2025 Convenience Foodservice Exchange included gold sponsors Hunt Brothers Pizza, Johnsonville Foodservice, Krispy Krunchy Chicken, LSI Industries, Steritech, Stuffed Foods, Sugar Foods, SupplyIt by Jera Concepts and BOHA!; silver sponsors J&J Snack Foods Corp., Vollrath and Chester's Chicken; and Innovation Zone sponsor Upshop. CSN

The Explosive Growth of RTDs

Ready-to-drink cocktails have become a primary growth driver in the category

By Kathleen Furore

ARE YOUR CONVENIENCE STORES making the most of the space allotted to alcoholic beverages?

If you’re not inventorying a selection of ready-to-drink (RTD) cocktails, the answer is likely no based on what’s trending in the category. While total off-premise sales of beer, wine and spirits are struggling, RTDs are a bright spot, continuing to capture market share.

“Ready-to-drink cocktails have become one of the fastest-growing categories in our beverage set,” reported Marat Yeshchin, senior category manager at Loop Neighborhood Market, a chain of 50-plus convenience stores located throughout California.

“RTDs are very important to overall alcohol sales,” he continued. “They are still one of

the fastest-growing segments; they broaden our consumer base, especially with the younger generation; and their continued innovation and flavor diversity make them a key growth contributor to the category.”

Clement Pappas, cofounder and CEO of Stateside Brands, the parent company of Surfside, sums up the important role of RTDs this way: “From an industry perspective, RTDs are now the primary growth driver in the bev-alc industry and are critical to maintaining a profitable and healthy mix within the broader bev-alc offering.”

“We are seeing consumers consistently shift away from malt-based seltzers, FMBs [flavored malt beverages] and traditional beer and gravitating toward spirits-based RTDs,” Pappas added. “Based on the growth and share gains, shelf space should be adjusted appropriately to capture the growth.”

What’s Driving Sales?

Greg Johnson, founder and CEO of Mpact Beverage, maker of island-style canned cocktails, cites three

factors driving RTDs’ popularity: convenience, value and flavor innovation.

“Today’s drinkers want bar-quality cocktails without the hassle, whether it's in a social setting or a casual atmosphere,” he said, adding that they also want a premium craft cocktail experience “at a nonpremium cocktail price” and fruit-forward flavors “that deliver an ultra-smooth, high ABV, true cocktail experience.”

Pappas likewise attributes the surge in sales to the convenience and flavor variety RTDs deliver.

“I think that consumers have long wanted an alternative to beer — [something] with the same low ABV and convenience of a can, but [something] that is less filling and offers different flavor profiles,” he explained.

These cited factors are certainly drawing RTD customers to Loop’s stores, according to Yeshchin, who noted that

“I’d advise any convenience store operator to strongly consider adding RTDs. If you don't have them, your competitor down the street will!”

— Marat Yeshchin, Loop Neighborhood Market

“customers appreciate the convenience of grabbing a chilled RTD on the go without compromising on quality or flavor.”

Merchandising & Marketing RTDs

Stocking a wide variety of brands and flavors is an important first step in making your single store or chain a destination for RTD fans. Loop’s c-stores, for example, offer a curated selection that reflects both customer favorites and emerging trends.

“Our lineup includes popular brands like Beatbox, BuzzBallz, Big Sipz, High Noon and Chi-Chi's cocktails,” Yeshchin told Convenience Store News. “We rotate in new flavors and seasonal offerings to keep things fresh and exciting, making sure there’s something for every taste, whether it’s a tropical vodka seltzer or a bold tequila-based cocktail.”

However, it’s where those products are stocked and how they’re promoted that ultimately will determine success. Focusing on visibility and convenience is the approach Loop takes.

“RTDs are featured prominently in our cold vaults, often placed near beer, seltzer and wine to attract crossover shoppers. We also build endcap displays that highlight seasonal flavors and bundle RTDs, such as BuzzBallz, with beer as a supplemental purchase,” Yeshchin said.

Front-of-entrance digital screens measuring 60 inches help promote RTD specials at Loop, catching customers' attention as they enter the store.

“Additionally, we utilize our Loop app to send targeted push notifications for limited-time offers, which has been very

“We are seeing consumers consistently shift away from malt-based seltzers, FMBs and traditional beer and gravitating toward spirits-based RTDs.”

— Clement Pappas, Stateside Brands

effective in driving impulse purchases and increasing basket size,” he shared.

Additional ways the retailer highlights RTDs is by dedicating space in its singles cooler door to the segment, placing smaller RTD floor merchandisers in key areas to drive visibility and impulse purchases, and offering special RTD promotions.

“Our two-for deals on BuzzBallz and BeatBox have an especially high take rate, as customers typically prefer to buy more than one,” said Yeshchin. “Occasionally, we

run three-for offers to add extra value and boost unit movement even further.”

Vendor merchandising and marketing support also plays a key role in the RTD space.

“In-store marketing is key to creating brand impressions leading to purchase,” Johnson said, noting that Mpact often places signage and displays in c-stores to stimulate sales. One example is its 50-milliliter minis "Give it a Shot" display at the register.

He also suggests using cooler suction racks, cooler door stickers, ambient displays and neon signs outside the store in applicable states, and stressed how effective tastings can be as a marketing strategy. “Sample! Sample! Sample!” he urged.

Teaming with sports teams, retailers and wholesalers is the approach Stateside Brands has employed to build awareness of its Surfside RTD cocktails.

“We've had a number of very successful collaborations running sweepstakes with our national MLB [Major League Baseball], and regional sports partnerships with the Cleveland Cavaliers and Penn State University,” Pappas said. “We have partnered with [7-Eleven’s] 7REWARDS and Casey's on several successful rewards programs as well, which has helped to drive awareness and incremental pull.”

The bottom line, according to all three industry players, is that RTDs are essential today to a convenience store’s bottom line when it comes to the alcoholic beverages category.

“I’d advise any convenience store operator to strongly consider adding RTDs. If you don't have them, your competitor down the street will!” Yeshchin cautioned. CSN

“Today’s drinkers want bar-quality cocktails without the hassle, whether it's in a social setting or a casual atmosphere.”

— Greg Johnson, Mpact Beverage

New Laws Fuel RTD Sales in Convenience

On Sept. 16, 2024, a law allowing Pennsylvania convenience and grocery stores licensed to sell alcohol and holding a Ready-to-Drink Cocktail (RTDC) Permit took effect — a development that significantly, and positively, changed the trajectory of RTD sales in the state.

“…This is a big win for consumers in terms of convenience and just makes common sense,” said Clement Pappas, cofounder and CEO of Stateside Brands, the Pennsylvania-based parent company of Surfside. “Older laws didn't contemplate spirits-based RTD products, but it makes sense that a 4.5% ABV product could be sold in the same stores with malt and wine-based products that range up to 17% ABV.”

Pennsylvania is one of 30 states that now allow convenience stores to sell spirits-based RTDs — and more states are following suit. Case in point: In late April of this year, the Texas Senate advanced a bill that would allow spirits-based RTDs to be sold in convenience and grocery stores where beer and wine

beverages with the same alcohol content, limited to 17% alcohol by volume, are already being sold. If passed, the bill will take effect Sept. 1, 2025.

It could mean big business for retailers and the Lone Star State if passed. According to an analysis by the Distilled Spirits Council of the United States (DISCUS), expanding RTD sales could generate approximately $160 million in new state tax revenue over the next three to five years.

Texas is not alone. In 2025, spirits-based RTD tax or market access legislation was considered in 11 other states, too: Alabama, Arizona, Hawaii, Maine, New Jersey, New York, North Carolina, Ohio, Oregon, Washington and West Virginia, according to Ainsley Giglierano, vice president of public affairs and state policy for DISCUS.

“We expect this to be a big issue for states again in 2026 as legislative sessions pick back up,” she told Convenience Store News

States allowing spirits-based RTD sales in grocery & convenience stores

States allowing spirits-based RTDs in grocery stores, but not convenience stores

Source: Distilled Spirits Council of the United States

Deviating From Tradition

While pain relief is still important, vitamins and family planning products are fueling growth

By Kathleen Furore

THE HEALTH AND BEAUTY CARE (HBC) category in convenience stores is growing in 2025, but is being led by some less traditional segments, according to industry insiders.

From January through June, almost all segments of HBC were down in unit volume year over year, but up in dollar sales due to inflation. One exception was the vitamins and supplements segment, which experienced a 4.9% increase in unit volume and a 9.5% increase in dollar sales industrywide, according to sales data from Chicago-based market researcher NIQ.

Doug Middlebrooks, senior vice president of convenience channel sales for Advantage Solutions, an omnichannel retail solutions agency in North America that’s positioned at the intersection of consumer packaged goods brands and retailers, confirms that vitamins and supplements are “showing significant growth in the channel.” Other segments that he says are performing well this year are sexual health products and first aid treatments.

The family planning and sexual health segment is “a standout segment which has seen accelerated growth,” echoes

Ryan Lutes, senior manager of analytics and insights at Lil’ Drug Store Products, which offers category management solutions to c-store retailers and wholesalers. According to Lutes, the Morning After Pill emergency contraceptive from Cadence OTC is the predominant growth driver in this segment.

“It is an item that’s bringing critical access to a channel that historically lacked it,” he said. “With new [over-the-counter] innovations like Haleon’s Eroxon, an erectile dysfunction treatment gel, and the increasing availability of over-the-counter birth control, this category is poised for continued momentum in convenience.”

Pharmacy Closures

Equal Opportunity

While consumer trends are driving some of the HBC category’s growth, the demise of drugstores is another factor at play. “Some

Be Ready in Weeks, Not Months

Guidance from the P+ Experts

Minimal Gaps in Service

of the growth may be driven by c-stores becoming more convenient with major drug chains closing locations due to profitability challenges,” Middlebrooks noted.

After shuttering hundreds of locations over the past year, Rite Aid Corp. is preparing to close all its remaining stores as part of ongoing bankruptcy proceedings. Meanwhile, CVS Health announced it would be closing 271 retail stores in 2025, a move that follows the closures of some 900 stores between 2022 and 2024. And a similar story is playing out at Walgreen Co., which in October 2024 announced its intention to close 1,200 stores over the next three years. Plus, those numbers don’t include the small pharmacies that are disappearing in communities nationwide.

While this news is sobering, it does create an opportunity for c-stores to become a destination for those shoppers who have typically relied on drugstores for their health and beauty purchases. “This is a key opportunity for

“While core sales categories will continue to be driven by trusted household names like Tylenol and DayQuil, there's room to integrate more trend-forward brands in relevant subcategories.”

— Ryan Lutes, Lil’ Drug Store Products

retailers,” Lutes stressed.

Kate Voyten, senior vice president of commercial operations at Cadence OTC, reiterated that the health and beauty category has an opportunity to become “a highly incremental business for the convenience channel” given the recent drugstore industry developments.

“Pharmacy closures over the last five years have left millions of women without access to over-the-counter medications and contraceptive care. We launched the emergency contraceptive in convenience stores to help close the pharmacy gap while growing a sustainable category for c-stores,” Voyten explained.

Growing the Category

For c-store operators, building the HBC category in ways that will make their locations a go-to stop for consumers requires a focus on assortment, presentation and visibility.

“Over 60% of c-store shoppers state that they buy pain relief products, so leaning in on the pain relief segment is a great place to start,” Middlebrooks advised.

“Well-known, trusted brands are important as well, as shoppers appreciate speed of choice and ease of navigation when they have a need.”

Lutes agrees that trusted brands are important, but stressed that expanding beyond well-known product lines is an approach c-store retailers should consider.

“While core sales categories will continue to be driven by trusted household names

like Tylenol and DayQuil, there's room to integrate more trend-forward brands in relevant subcategories,” he said. “Skin care — items including lotion, body wash, deodorant and facial treatments — is a space that we've seen trend-forward brands grow in other channels, though we've yet to see anything take off and become a category leader in our space.”

Once inventory selection has been completed, making the shopping experience more appealing and easier to navigate is the next important step, according to Middlebrooks.

“Educational shelf signage and category organization help guide the shopper and make it easier for them to find the solutions they are seeking quickly, which in turn encourages them to return again and again,” he noted. “Clear delineation between immediate-use products — single-serve and peggable products — and multi-use products is an example of a way to organize sections. Shoppers are solutions focused, so organizing sets by usage and purpose is a smart move.”

Beyond assortment, Lutes believes the

“Some of the growth may be driven by c-stores becoming more convenient with major drug chains closing locations due to profitability challenges.”

— Doug Middlebrooks, Advantage Solutions

real opportunity lies in visibility. “Leveraging social media, retail media, loyalty apps, cross-promotions and other means to raise awareness of health care access in our channel,” he said. “Done right, these strategies can reposition convenience locations as go-to destinations for health and beauty needs.”

Retailers can turn to their suppliers for help in implementing these strategies. For example, Voyten pointed out that Cadence OTC supports its c-store partners with local advertising that drives foot traffic directly to their stores.

“Start by partnering with suppliers who are invested in helping you grow — those who see your store as a health access point in the community,” Lutes concluded. CSN

Game On!

Go beyond luck to make your c-store the destination for lottery enthusiasts

By Renée M. Covino

ARE YOU HITTING the jackpot with lottery sales?

Convenience stores can be great partners to state lotteries, but the most successful operators know it goes beyond chance to score big. At stake is increased foot traffic and additional sales — industry data shows that as high as 95% of lottery customers will purchase at least one additional item from inside the store.

Lottery tickets are a high-demand product, especially during large jackpots or special promotions, according to Orange, Calif.-based H&S Energy Group, which operates nearly 300 locations throughout the western United States.

“People who might not otherwise visit your store will come in specifically to purchase lottery tickets,” a company spokesperson said, adding that the surge in foot traffic often leads to additional sales, such as snacks, beverages and essential groceries. “The psychology of a potential win puts lottery customers in a positive mindset, making them more likely to indulge in additional purchases.”

Encouraging repeat visits is another top benefit of lottery. The thinking is that regular lottery players often have a routine — they purchase tickets for weekly draws and check results just as regularly. A c-store can become their habitual stop.

A successful program also can enhance a c-store’s brand identity and promote community engagement as lottery supports state programs such as education, parks and social services.

While luck is key to winning the lottery, it is not an effective sales tactic. So, it’s essential for forward-thinking convenience retailers to implement these winning strategies:

Practice the practical

State lottery commissions can be a good resource for retailers to get best-practice ideas.

According to the Minnesota Lottery, keeping scratch ticket dispensers clean and free from obstructions so that customers can easily see their favorite games is a must. A clean dispenser and counter also show lottery players that you are inviting them to shop.

Keeping scratch dispensers full goes along with that. Retailers should check before

“Highlight new scratcher games and display them as soon as you receive them. Frequent players are always looking to be the first to play new games.”

— Mehdi Mahmoodi, LottoShield

each weekend to ensure they have enough tickets on hand to prevent out-of-stocks.

The Minnesota Lottery also advises retailers to activate new scratch games as early as possible, ideally on “Ticket Tuesday,” for the greatest incremental sales potential. The organization gives players the opportunity to be the first to sample new scratch tickets on the first Tuesday of every month when it sets up shop at one retail location.

“Highlight new scratcher games and display them as soon as you receive them. Frequent players are always looking to be the first to play new games,” echoed Mehdi Mahmoodi, cofounder and chief operating officer of San Ramon, Calif.-based LottoShield, a fully automated

lottery management platform tailored to convenience stores.

Scratcher games should be clearly displayed in high-traffic areas, such as the counter, but many retailers are also using digital menus to attract customers, he noted.

Regarding draw games, c-stores should be displaying the jackpot amounts — especially when they’re high — in a visible area to help drive ticket sales.

Motivate & mandate

Sales associates should be knowledgeable about the lottery games on offer. At the most basic level, they should be able to answer customer questions about the features and benefits of each game.

Beyond that, store managers should be discussing with their associates different ways to “ask for the sale,” according to the Minnesota Lottery, and motivating their staff with frequent lottery sales contests to keep them engaged.

Unfortunately, retailers also need to take a defensive stance with their staff. In other words, employees need to know they are being watched.

“You should notify them immediately when there’s a shortage or issue, no matter how small,” Mahmoodi said. “If they sense you’re not watching, it can snowball into significant losses. We recommend a zero-tolerance policy when it comes to theft.”

Automate the process

There’s no doubt, the top challenges with lottery sales are theft, account errors and poor inventory control. Scratchers and online tickets are high-theft, high-risk items with very low margins — usually 5% to 6% — meaning that theft is essentially like stealing cash, and most theft is internal, according to Mahmoodi.

“Retailers need to reconcile daily and manage cash accurately,” he said. “We advise stores to implement automated lottery management systems to reduce manual errors and theft. Our customers have reduced shrinkage by over 90%.”

Core features of lottery management systems are real-time inventory tracking, theft prevention tools, automated reconciliation, and seamless integration with state lottery systems.

SunStop, the convenience store subsidiary of Southwest Georgia Oil Co., based in Bainbridge, Ga., is one of the latest retailers to streamline its lottery operations by partnering with LottoShield. The chain integrated LottoShield's lottery management system across 54 of SunStop's 70 stores in less than two weeks this July.

With the new system, SunStop aims to strengthen its efforts against lottery theft, free up productive hours for store staff and modernize its lottery operations. Other convenience retailers that have integrated with LottoShield include H&S Energy, New York-based Chestnut Market and Tooley Oil Co. in northern California.

Embrace online & mobile opportunities

Online lottery sales, such as through Lotto.com, Lottery.com and Jackpocket, currently account for a very small portion of total lottery sales, but could be a potential threat to the convenience channel’s lottery business moving forward.

“Online seems to represent additional revenue, rather than a shift. However, the future may play out differently, especially with younger generations being so dependent on online ordering in general,” said Mahmoodi. “I think it’s too early to tell.”

It is not too early, however, for retailers to consider teaming up with online lottery providers, as 7-Eleven

Inc. did late last year when it tapped San Francisco-based Jackpot.com to serve as the convenience store chain's official lottery courier service. The program initially launched in 600-plus 7-Eleven and Speedway stores in Ohio and Massachusetts, where customers signed up to play lottery games and scratchers on the Jackpot.com app or website. A special launch promotion gave 7-Eleven customers a free lottery ticket upon their first deposit.

Jackpot.com, which allows customers to order official state lottery tickets from a mobile phone, tablet or computer, is currently available in Colorado, Massachusetts, Arkansas, New Jersey, New York, Ohio and Texas. It is also expanding its lottery courier service to additional markets across the U.S.

Regardless of online partnerships, c-store operators should aim to at least have a strong digital marketing presence around their lottery program. Actively promoting on the retailer’s app and social media channels, especially during high-profile jackpots, is a successful strategy, according to H&S Energy. CSN

Embracing Innovation

Convenience Store News recognizes the 2025 Technology Leader of the Year honorees

By Melissa Kress

IN SIMPLE TERMS, innovation means a new idea, method or device; or the introduction of something new. Anyone who works in the retail technology space, however, knows that the process from ideation to pilot to rollout and beyond is anything but simple.

For their forward-thinking and willingness to embrace innovation, Convenience Store News has chosen four convenience retailers as winners in its 2025 Technology Leader of the Year awards program, sponsored by Hughes.

Now in its 10th year, the program honors convenience store retailers (company or individual) that demonstrate exceptional vision and innovation in the development

and utilization of technology solutions for the good of their own organization, and contribute to the advancement of the c-store industry as a whole.

This year, for this first time, nominations were accepted in two categories: Small Chain Award, recognizing a retailer with 50 stores or less; and Large Chain Award, recognizing a retailer with 51 stores or more.

The 2025 Technology Leader of the Year honorees are:

• Small Chain Award, Gold Medal: Nittany MinitMart

• Small Chain Award Silver Medal: Taylor Wilson, Golden Oil Co.

• Large Chain Award, Gold Medal: Parker's Kitchen

• Large Chain Award, Silver Medal: RaceTrac Inc.

Read on for profiles of this year’s winners.

Join Us in Celebrating Excellence

The Technology Leader of the Year honorees will be presented with their awards at the 2025 Technology Leadership Roundtable & Awards Dinner, hosted by Convenience Store News. Against the backdrop of the NACS Show in Chicago, the event will take place the evening of Oct. 14 at Swift & Sons Steakhouse. Along with the awards ceremony, the night will feature interactive discussions, an exclusive research presentation and more.

Retailers interested in attending can scan the QR code to register.

WARNING: Cigar smoking can cause lung cancer and heart disease.

Small Chain Award, Gold Medal: Nittany MinitMart

State College, Pa.

WITH 28 CONVENIENCE STORES, Nittany MinitMart has established a strong foundation in central Pennsylvania. In 2024, the retailer took a big step toward building upon that foundation with the simultaneous launch of a new mobile app, loyalty program and online ordering platform.

Going live with three new platforms required months of work — think setup, design, testing and troubleshooting — but the shift was planned to create a single, simple transition for customers.

The overarching goal was to improve the user experience and design consistency with the Nittany MinitMart app, increase enrollment in and usage of the Nittany MinitRewards loyalty program, and boost online food sales.

Although the convenience retailer recognized that its customers in mostly rural and small-town communities valued the simple discounts its previous rewards program and app offered, Nittany MinitMart saw opportunity to drive growth, increase engagement and build loyalty through a new, more robust program.

Room for Improvement

Unlike some smaller-sized chains that are wary to step into the technology space,

Nittany MinitMart did not hesitate when it came to refreshing its connection with customers. According to the company, the previous Nittany MinitRewards app lacked the functionality and adaptability needed to support a modern loyalty program and vigorous promotional strategy.

Additionally, the app had limited features, an outdated interface and offered little incentive for ongoing engagement. The retailer’s digital platforms weren’t aligned with the highly dynamic in-store experience that Nittany MinitMart locations offer, or with the evolving expectations of customers — especially when competing with other, larger c-store chains.

Nittany MinitMart collaborated with Rovertown for its new mobile app and incorporated loyalty from Punchh, online ordering from Vroom and 21-plus offers from PDI Technologies. The effort unites a complex network of c-store technology providers chosen to best suit the small chain’s customers and integrate with its backend systems.

“From first learning about the Rovertown platform late in 2023 to launching their new app, loyalty and online ordering in September 2024, the entire digital transformation took less than a year, thanks to the entire Nittany team’s drive to embrace innovation and develop a tech suite that would give customers an engaging, valuable and seamless digital experience,” the company’s nominator noted.

“While Nittany’s former loyalty program offered a static everyday gas discount but not much else, their 2024 digital rebrand replaced old-school loyalty cards with a dynamic app-based loyalty program that rewards customers with points on purchases, rotating vendor offers and incentives for online ordering,” the nominator added.

Growing Engagement

To highlight the launch, Nittany MinitMart kicked off a

“…The entire digital transformation took less than a year, thanks to the entire Nittany team’s drive to embrace innovation and develop a tech suite that would give customers an engaging, valuable and seamless digital experience.”

— Nittany MinitMart’s nominator

revamped version of its annual sweepstakes. Previously, customers earned entries by scanning their loyalty card in stores and at the pump or by placing food orders at in-store kiosks.

The revamped version went digital. Customers earned entries by using their new app-based loyalty card or filling out a free entry form on the Nittany MinitRewards app. Additionally, each on-app food order earned 10 bonus entries. The retailer spread the word through in-store signage, digital advertising, social media campaigns, push notifications and email marketing.

Nittany MinitMart was more than pleased with the results. The convenience store operator saw a 302% increase

in daily entries compared to 2023, after accounting for bonus entries. Total entries jumped from around 18,000 in 2023 to more than 110,000 in 2024.

In all, the sweepstakes helped drive 11,700 new app downloads and 153,000 app sessions, and doubled the number of total app users in just 90 days.

At the same time, the retailer leveraged Rovertown’s Employee Hub feature to run a separate giveaway exclusively for its employees, driving employee buy-in and engagement as the new app rolled out. Since then, it’s used the mobile Employee Hub to make announcements, explain new features and promotions, and promote an employee loyalty program that’s just as robust as the public-facing rewards program, according to the retailer.

Not Standing Still

Nittany MinitMart didn’t call it a day after the successful three-way launch.

The retailer has since worked closely with the teams at Rovertown and Vroom to share feedback, test new features and demonstrate how small chains in rural areas can utilize technology in forward-thinking ways.

Rather than letting their app remain static, Nittany MinitMart has fully incorporated digital platforms into its promotional efforts. Senergy Marketing, a creative marketing agency specializing in the convenience store and petroleum industries, designs the retailer’s in-store signage, social media and digital marketing content with a tie-in to the local communities Nittany MinitMart serves.

Along with creating print materials and digital advertising to push app downloads, they work to keep app users engaged by regularly rolling out app-exclusive content and updating the look and feel of the MinitRewards app alongside every changeout.

Nittany MinitMart also has worked closely with Vroom to boost online ordering through digital advertising. In addition, the team has collaborated with Vroom to test new features to improve their ability to make data-informed decisions.

Digital and in-store promotions drove hundreds of orders in the first days following the launch of the new app and online ordering platform. Online orders have continued to increase steadily since.

Nittany MinitMart highlighted the launch with a revamp of its annual sweepstakes.

Small Chain Award, Silver Medal: Taylor Wilson

Director of Technology,

Golden Oil Co. Kenosha, Wis.

TAYLOR WILSON is no stranger to retail technology. Until early 2022, however, he was a stranger to convenience retailing.

Prior to joining Golden Oil Co., a Kenosha, Wis.-based full-service distributor of wholesale petroleum products for new and existing Midwest locations, Wilson was a network engineer with Mako Networks. Through that position, he did some consulting work with Golden Oil, which also owns and operates bp and Amoco branded gas stations and truck stops throughout Wisconsin.

Nearly four years ago, Wilson decided to make a career change — a decision that led him from consulting with Golden Oil to working for the company as its director of technology.

“I have always been on the support side before, so the position with Golden was my

introduction to the retailer side,” Wilson told CSNews. “It was a big adjustment.”

Before he joined the company, Golden Oil did not have an internal technology team; everything was sourced out to third-party contractors and IT consultants. “We had to go from third party everything to bringing everything in-house and securing everything in-house,” he recalled.

For the first year and a half, Wilson was a technology team of one. Company leadership eventually gave him the go-ahead to hire a second team member — not that he cannot handle the work. “I'm very, very hands-on,” he said. “I wouldn't ask one of my employees to do something that I don't know how to do.”

Taking the Reins

Wilson’s experience on the other side of the retail technology proposition certainly helped him tackle his new role — to a point, he acknowledged.

“There's a huge disconnect from the support side to the retail side,” he explained. “As the support side, yes, I'm familiar with what a POS [point-of-sale] is and I'm familiar with what a tank gauge is. I'm familiar with certain things, but I wasn't familiar with EBT and all of the extra little things that I had to take a crash course in. I had to learn different fleet cards, different processing networks.

“There was a lot of stuff that I had to catch up on to learn the retail side, but now that I've got the support side experience and I've got the retail side experience, I'm

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“Now that I've got the support side experience and I've got the retail side experience, I'm able to combine the two together to really help my company.”

— Taylor Wilson, Golden Oil Co.

able to combine the two together to really help my company,” he continued.

When Wilson came on board, roughly half of Golden Oil’s stores still had POTS, or plain old telephone service lines and the locations were not working on Voice over Internet Protocol (VoIP). Today, half of the locations have been switched to VoIP providers and the company has centralized and streamlined everything to one single provider for all its locations.

“We have a single pane of glass for our

voice system, plus we saved $20,000 a year just on POTS lines,” Wilson noted. “Whenever I come into a company and take on technology, my motto is doing more with less. I don't want to ever come into a company and start having to ask to spend money on this, this and this. My outlook on life is: Where can we save money without impacting service or support?”

And save money he did. Prior to bringing technology in-house, Golden Oil’s tech spend was $1.5 million a year. Now, it’s $750,000. According to Wilson, a major portion of the company’s technology spend was used previously to call in technicians “to fix every little thing. Now, this is stuff we can fix ourselves, so we're not reliant on other third-party support.”

Getting Back to Basics

While many convenience retail companies are focused on rolling out mobile apps and new versions of their loyalty program, Wilson started at step one and stripped Golden Oil's tech infrastructure down to the basics — literally.

As he told CSNews, the company did not have VLANs, a grouping of network devices allowing for network segmentation on a single physical switch. Additionally, there was no security, and it was not following PCI Standards.

"So, we spent 27 days at corporate breaking everything and resetting the network and resetting all the security segregating, all the VLANs, segregating all the networks, everything. We are now 100% secure," Wilson stated proudly.

Now that Golden Oil's network is secure and stable, he is setting his sights on ticking things off "a never-ending list" of tech-related initiatives. "We've got all of the right tools in place now. The next year is going to be quality-of-life improvements," he said.

This includes streamlining reporting, automating reporting analytics for business integration, and using artificial intelligence to analyze all the ledgers and logs for data blips.

"Our goal for the course of the next year is to be proactive and automating quality-of-life improvements, making life easier," Wilson said.

and expected,” Smith told CSNews. “That direction encourages employees to surface ideas, pilot new approaches and collaborate across functions — often producing solutions that I hadn’t even envisioned.

IT’S LONG BEEN said that the convenience store industry has been traditionally slow to innovate, lagging behind its competitors in other retail channels. The way Parker’s Kitchen Vice President of IT Scott Smith views it, the industry is cautious about change.

That description does not apply to Savannah, Ga.-based Parker’s Kitchen, however.

In 2013, company founder and longtime CEO Greg Parker was the recipient of Convenience Store News’ former Top Tech Executive award, which was presented to a c-store executive who demonstrates vision and leads the way for technology solutions that impact the entire industry. Earlier this year, he handed the chief executive reins to Brandon Hofmann, but remains involved in the company as executive chairman.

“What sets Parker’s apart in an industry that’s often cautious about change is a clear, consistent commitment to technology from leadership through to frontline teams. Greg has long emphasized using technology as a lever for better service and smarter operations, which shows every team that tech investments are both supported

“What sets Parker’s apart in an industry that’s often cautious about change is a clear, consistent commitment to technology from leadership through to frontline teams.”

— Scott Smith, Parker’s Kitchen

“Put simply, innovation at Parker’s is driven by our teams, and team members that want to improve customer experience, and a culture that treats experimentation and continuous improvement as business as usual,” he continued. “And sometimes, the best ideas don’t involve technology but simple improvements. Everyone has a conduit to submit their ideas to the company.”

A Seat at the Table

It is that mindset that invites technology to have a voice in nearly every conversation at the company, from new software and hardware to new processes, according to Smith, “because Parker’s treats technology as a partner, not an afterthought.”

The convenience store retailer’s business teams vet ideas and then bring IT in to collaborate on next steps. “Together, we evaluate feasibility, security and operational impact, and take shared ownership of the outcome,” he explained. “We win as a team and lose as a team. And by team, [it’s] more like family.”

In the past, Parker’s Kitchen tried to tackle technology on its own and build everything in-house. Now, it’s pivoted to being a strategic partner that works closely with its vendors to turn ideas into reliable, supported outcomes and takes operational responsibility for the final solution.

That doesn’t mean the company abdicates technical ownership. “In practice, we sit between the business and vendors: the business defines the use case and outcome, and [the] technology [team] helps drive the technology with the vendors to meet the outcome,” Smith said.

Setting the Agenda

Among the recent technology highlights at Parker’s Kitchen are its proprietary SmartKitchen AI-enabled

Large Chain Award, Gold Medal: Parker’s Kitchen Savannah, Ga.

technology, fuel optimization efforts through a partnership with Titan Cloud, the rollout of NCR Voyix self-checkout lanes in approximately two-thirds of its stores, and data-driven decision-making leveraging insights from PDI’s reporting features.

These initiatives are part of the company’s goal to implement cutting-edge tech and innovative systems to further its mission to exceed customer expectations and reduce friction at key touchpoints where guests interact with the brand.

That goal requires a long and active to-do list. Currently, Smith is working to build a better tech agenda with the technology team that’s more flexible and shaped with input from various business partners at Parker’s Kitchen.

“They set priorities and we stay ready to pivot as needs change,” he said. “Longer three- to five-year plans don’t work anymore. … A multiyear roadmap can be obsolete before it launches.”

Instead, Smith shared that he and his team are working to build a 90-day tactical plan, a rolling 12-month roadmap, and a flexible one- to three-year strategic view so that “we can deliver value quickly and adapt to business and vendor changes.”

What’s next for Parker’s Kitchen on the technology front?

That’s the million-dollar question, according to Smith.

“At Parker’s, technology is a continuous engine for better customer experiences,” he said. “We’ll keep empowering team members to surface the best ideas, run fast experiments and scale what works — whether that’s a smoother mobile journey, smarter in-store experiences or back-office automation that keeps stores running and providing a better experience for our internal customers, the store team members.”

OVER THE PAST FEW YEARS, RaceTrac Inc. has undergone a comprehensive technology transformation.

Among the mile markers in its journey, the retailer relaunched its mobile app in 2024, which achieved a 4.9-star rating at launch and increased daily engagement by two to three times. That’s a noticeable difference from

the retailer’s previous app, which faced several challenges — namely, stability issues and slowness, and people didn’t know how to use it.

When developing the next-gen app, RaceTrac focused on personalization, better accessibility, a simplified loyalty experience, and awareness around finding the nearest store with a customer’s desired features and amenities.

Driving that personalization is data, Tyler Grubbs, executive director of digital and store technology, discussed at a recent industry conference. “It’s not just who they are, but the trip occasion. Where are they along the journey?” he said. “Ultimately, how do we gather more data, action it and enrich it? Without that foundation, you will be casting wide nets.”

Diving Into the Data

Personalization is not the only area where data plays a central role at RaceTrac. According to the retailer, data forms the foundation of every major decision made. The operator of more than 800 convenience stores leverages advanced analytics platforms and AI tools to derive

Large Chain Award, Silver Medal: RaceTrac Inc. Atlanta

RaceTrac employs AI and machine learning tools for dynamic pricing, margin optimization and promotion tracking, enabling real-time adjustments that directly impact profitability.

insights from customer behavior, sales patterns and operational performance.

For example, RaceTrac Rewards loyalty data informs product assortment and personalized marketing, while predictive analytics optimize staffing and finetune store formats. The company even uses intelligent data to remotely monitor and troubleshoot technology, fuel pumps and kitchen equipment — ensuring maximum uptime while reducing maintenance costs.

RaceTrac also employs AI and machine learning tools for dynamic pricing, margin optimization and promotion tracking, enabling real-time adjustments that directly impact profitability.

Additionally, according to the retailer, automation in

loss prevention and intelligent cameras reduce shrink, while upsell-enabled digital menuboards and loyalty integration drive incremental sales and increase basket size. The company’s strategic technology investments ensure clear ROI by turning everyday transactions into long-term customer value.

Speaking of long-term customer value, the company’s nominator pointed out that RaceTrac has deployed self-checkout kiosks at more than half of its locations and implemented mobile ordering at select stores, “truly fulfilling its mission to ‘make people’s lives simpler and more enjoyable.’ This frictionless ecosystem meets customers wherever they are — whether fueling up or grabbing food on the go.”

Empowering Employees

Not all the company’s technology moves are aimed at the customer. RaceTrac works to improve the workplace for its team members and invests heavily in employee-focused technology, including mobile scheduling tools, digital training platforms, and automated routine functions such as bookkeeping and cashier data entry.

Notably, in 2024, the company launched digital checklists that eliminated paper and reduced task completion time, while new hardware reduced failures by 90% post-launch.

Additionally, its Instant Pay program launched in 2025 and gives associates financial flexibility, with nearly 30% of associates already utilizing the service. “These intuitive tools require minimal training while making jobs easier and more rewarding,” the nominator noted.

Ultimately, whether employee-facing or customer-facing, innovation plays a leading role at RaceTrac. The company’s Innovation Lab at its Store Support Center enables rapid testing and scaling of solutions.

“Innovation is embedded in RaceTrac’s culture with consistent identification and piloting of emerging technologies, including smart checkout systems, remote orchestration, AI-powered inventory tracking and computer vision for loss prevention,” its nominator said. “By partnering with startups and established tech vendors, RaceTrac isn’t just keeping pace with the c-store industry, it’s helping lead through innovative technologies with clear ROI.” CSN

REDEFINING THE LOYALTY EXPERIENCE

Convenience retailers of all sizes are reevaluating and elevating their loyalty programs

By Danielle Romano

WHEN NITTANY MINITMART, the central Pennsylvania-based operator of 28 convenience stores, decided to revamp its loyalty program, the company wasn’t just focused on re-platforming it. The retailer was reimagining what loyalty could look like for its customers.

“We have learned that the most successful loyalty programs are simple, mobilefriendly and focused on delivering value. Our previous program served us well for a time, but we started to see its limitations, particularly around flexibility, ease of use and mobile integration,” Nicole Masullo, operations manager at Nittany MinitMart, told Convenience Store News. “Customers want a rewards program that is easy to understand and quick to redeem.”

According to Masullo, its previous loyalty program and app had limited features, an outdated interface and offered little incentive for ongoing engagement. Those experiences informed the retailer’s decision to switch to Punchh, a PAR Technology brand, and redesign its program from the ground up.

During the 2023 NACS Show, Nittany MinitMart began evaluating digital platforms that would meet its long-term goals. After signing with Punchh and mobile platform provider Rovertown in January 2024, the retailer went straight

to work. From that point, it took about nine months to fully integrate the existing customer base, develop a points system that truly delivered value, and design and roll out a brand-new mobile app through Rovertown.

“Our loyalty program is now completely digital and fully integrated into the Nittany MinitMart app,” Masullo said. “Our customers can access everything in one place with just a few taps.”

Delivering More Value

Whether an independent, small chain or large operator, the list of convenience store retailers that are moving beyond a one-size-fits-all approach to loyalty to give their customers a dynamic and personalized experience continues to grow.

Earlier this year, Quality Oil Co., which owns and operates three convenience retail brands, partnered with Newtown, Mass.-based Paytronix, a cloud-based digital guest engagement platform, to launch the provider’s suite of solutions across its 138 retail locations. The Quality Perks mobile app, built on the Rovertown platform, delivers a next-generation experience designed to appeal to today’s customers. With intuitive self-service capabilities, Quality Oil can easily manage its promotions and overall user experience.

Although the app is accessible to all customers, it fully integrates with Paytronix to streamline loyalty marketing and ensure secure age verification — enhancing value for everyone.

“Paytronix gives us a refined loyalty system that we can use to reward our customers with one-to-one offers that

"The Arcade has become a daily habit for thousands of our users and it proves that loyalty isn't just earned through points — it's built through moments."

— Jessica Starnes, Weigel’s Stores Inc.

matter to them,” said Michael Robb, vice president of marketing at Winston-Salem, N.C.-based Quality Oil. “Our goal is to increase our loyalty penetration and create even more opportunities to engage with our Quality Perks mobile app.”

Breaking the mold on the convenience loyalty experience, Weigel’s Stores Inc., operator of 84 stores in Tennessee, recently hit a major milestone in its customer engagement journey. The Powell, Tenn.based retailer surpassed 1 million plays in the Weigel’s Arcade & Coin Catalog, available exclusively in the MyWeigel’s app.

Originally launched in January in partnership with Rovertown, the new digital experience was created for families in the communities it serves, combining entertainment with its loyalty program. The Weigel’s Arcade & Coin Catalog offers a collection of kid-friendly, ad-free, in-app games. Players can redeem the in-app coins earned through gameplay for exclusive rewards in the MyWeigel’s Rewards program.

"This milestone is a reflection of how guests want to engage with our brand — not just at the pump or in-store, but wherever they are," said Jessica Starnes, the company’s director of loyalty. "The Arcade has become a daily habit for thousands of our users and it proves that loyalty isn't just earned through points — it's built through moments."

As loyalty expectations evolve, technology is the key to keeping pace and staying ahead. Artificial intelligence (AI) and predictive analytics have completely changed the loyalty game, noted Bonnie Woods, senior strategist at Paytronix. By analyzing past visit frequency, price sensitivity and category purchases, among other things,

AI can anticipate what a customer might need next and tailor offers accordingly.

“Automation of 1-1 campaigns improves offer relevancy and timing, and builds a relationship with consumers beyond the blanket one-size-fits-all approach of the past,” she said. “Personalization transforms a loyalty program from a generic discount engine into a relevant, value-adding service.”

Brett Narlinger, head of global commerce at Pleasanton, Calif.-based Blackhawk Network (BHN), a branded payment solutions provider, echoes this sentiment. “AI-driven insights help customize promotions that offer smarter rewards as opposed to one-time discounts. Our research found this strategy drives higher redemption rates, ongoing engagement and promotion ROI,” he said.

Additionally, tracking which rewards loyalty program members have used in the past can help inform shopperspecific rewards they are more likely to use and want to earn again — driving ongoing engagement and purchases, Narlinger advised.

— Bonnie Woods, Paytronix

“Modern tactics like gamification, surpriseand-delight tactics and exclusive offers can maintain consumer interest and create emotional connections that deepen brand loyalty,” he said. “Loyalty isn’t static. It has to reflect changing customer needs, especially in a high-cost, high-choice environment.”

Preventing Fatigue

Even without a full program revamp, retailers should be refreshing their loyalty approach. New offers and experiences

keep members engaged — and keep fatigue from setting in.

For example, when it comes to design, Nittany MinitMart updates the look and feel of its mobile app every other month along with in-store changeouts and puts new foodservice items, promotions and sweepstakes front and center.

“There’s always something new to check out,” said Masullo. “We really take pride in our loyalty program and mobile app. It’s a way for Nittany MinitMart to stay connected with our customer family and keep them engaged with fun, meaningful rewards.”

Loyalty is a relationship that needs to be maintained through active, thoughtful measures, according to Donnie Fairbanks, senior loyalty strategist at Paytronix. So, he recommends setting up campaign automation that monitors members on a one-to-one basis, looking for behavior changes and dynamically responding as necessary.

“If a member’s coffee cadence suddenly slows, they should be served an invitation for a free cup on their next visit. If another is 50 points short of a reward for a prolonged period, let them know they’re close to earning a reward, or take it to the next level by simply bonusing them the 50 points and directing them to the rewards catalog. All of these without any human

interaction as triggered campaigns do the lifting,” he explained.

Another way to inject excitement into the program is through tentpole promotions in the form of national campaigns, free giveaway periods, flash fuel promotions tied to key dates, or member milestones such as a sign-up anniversary.

“Lastly, don't be afraid to mix it up every now and then with a little surprise-and-delight, like double points days or a free soda with the fill-up they're just initiating at the pump (which has the dual benefit of also driving them into store),” Fairbanks said.

Final Dos & Don’ts

With so many levers available to pull, Nittany MinitMart’s Masullo cautions fellow retailers to keep it simple. She provided the following pointers:

• A successful loyalty program should be simple to use across in-store, online and mobile platforms, while offering rewards that provide real value.

• Don’t overcomplicate how customers join, earn or redeem rewards.

• Listening to customers through direct feedback, social media and app interactions is key to shaping a program that meets their needs.

• Go to market with strong advertising to support loyalty campaigns. “Letting customers know about the program through in-store audio advertising, social media, billboards and store signage is just as important as the program itself,” she said.

• Don’t let the program get stale or repetitive. “I believe that the best loyalty programs are continually evolving based on what customers want,” she said. CSN

Evaluate to Elevate

It’s important to remember that loyalty is a long-term strategy — it takes time to build a strong member base and optimize the right mix of features, campaigns and engagement that make members feel appreciated. To that end, convenience brands should be very thoughtful when considering whether to change or upgrade their program, according to Donnie Fairbanks, senior loyalty strategist at Paytronix.

“Consumers expect that program relaunches are typically a devaluation on some level and, at the very least, they will need to relearn how to interact and get the most from a new iteration,” he noted.

If considering an upgrade, he recommends evaluating these three key design areas:

• Flexibility: Programs should be designed to be optimally flexible to meet future shifts in the business in the form of new products, services or customer trends. “The program is a foundation of the relationship, and its core goal is to attract and retain the largest audience.”

• Liability: One of the main reasons brands relaunch loyalty programs is because of high program liability — which means when too many points go unredeemed, it creates a financial strain. “The best practice for getting out in front of this challenge is to establish and communicate expiry rules that are fair and obvious, actively utilizing efficient point-burning tactics (i.e., sweepstakes entry, charitable donations, gamification, etc.).”

• Profitability: Profitability in loyalty programs can be a complex challenge. “Many brands overlook key factors when evaluating profitability, such as the compounding value of a new member over time and the increased customer lifespan typical of loyalty members — which industry experts estimate to be 20% to 40% longer.”

The new Quality Perks mobile app delivers one-to-one offers.

ENGAGEMENT OUTSIDE THE LOYALTY BOX

There are many ways for c-store retailers to digitally capture the attention of customers apart from loyalty programs

By Tammy Mastroberte

WHILE LOYALTY PROGRAMS remain a hot topic in the convenience store industry, the use of mobile apps, email, text, geofencing and other marketing options to engage customers remains important to a c-store retailer’s overall marketing plan. In many cases, retailers are utilizing all options together, loyalty included, to reach and speak to customers on a personal level.

“While loyalty programs are important, they are just one part of the customer journey,” said Mike Flebotte, a partner at Business Accelerator Team, a convenience retailing consultant agency based in Phoenix. “Retailers have begun to focus more broadly on providing customers with a seamless digital experience across channels, such as online ordering, mobile apps, in-store digital signage and kiosks.”

Enabling this seamless experience is the collection of data, which can be done through an app, phone number or other digital touchpoints, he noted. This “customer data portal” feeds into a centralized

database that retailers can analyze, segment and utilize to create personalized messaging, and targeted and relevant offers — all leading to “a more rewarding customer journey,” Flebotte explained.

“Hyper-personalization across marketing platforms and touchpoints is a gamechanger for retailers seeking to engage customers digitally,” he continued. “Artificial intelligence [AI] and machine learning are unlocking new types of personalization, such as product recommendations, customized promotions and tailored messaging.”

One example, Flebotte cited, is Oklahoma City-based Love's Travel Stops & Country Stores, which recently added smart kiosks to its quick-service restaurant concepts to provide customers “a more personalized digital experience” that is integrated with other marketing platforms across the chain, including loyalty.

Another example is Chestnut Market, the New Paltz, N.Y.-based operator of 75 c-stores, which launched a new app in April of this year and started email marketing at the same time.

Chestnut Market customers are registered to its app and loyalty program by email and phone number, and the chain

Chestnut Market customers are registered to its app and loyalty program by email and phone number, and the chain uses both push notifications and email to reach out.

is using both push notifications and email to reach out, according to Abigail Cerra, the retailer’s marketing and loyalty manager.

“We have industry-average results in push notifications and above average in email click-through rates,” she shared with Convenience Store News.

When trying to figure out which option to use, the type of content can guide retailers in whether to text, email or communicate in-app. Text messages often have higher open and engagement rates, so time-sensitive promotions such as a limited-time deal or expiring offer would be ideally sent this way, according to Flebotte.

“Email marketing is better suited for campaigns with more detailed messaging, imagery and even video,”

he said. “Since both approaches enable personalization, anticipating how the customer will engage with a campaign and on what device will help retailers reach customers more effectively and in more meaningful ways.”

Leveraging Third-Party Partners

Savvy c-store retailers are looking outside the usual customer acquisition avenues and using third parties to digitally engage potential customers. They are also using third-party options to engage their current customers.

For instance, Chestnut Market partners with Cardlytics, which utilizes a financial media network to connect brands with customers through their banking cards. Customers are presented offers in their banking apps based on past purchases. If someone shopped at Chestnut Market in the past, they might be shown an offer to go back within their banking app, Cerra explained.

“It offers discounts or rebates, so when a customer opens their banking app, at the bottom there are offers based on credit or debit behavior,” she said. “We’ve tested this and saw a significant decrease in churn of customers after our first campaign.”

Another third-party option that retailers such as Chestnut Market, Circle K and Chevron are leveraging to engage customers while bringing in extra revenue is Mobivity. The company taps into the mobile gaming audience, which is twothirds of the country, according to Jeff Michaels, vice president of sales and marketing. The technology sits between mobile game developers and retailers, and offers consumers a discount at the retailer when they download a game.

“Retailers are promoting a game with their offer, and the game developer is paying us for an audience,” said Michaels. “We are passing the majority of that to the retailers, and it is no cost to them. Every time a customer redeems the offer and downloads the game, the retailer gets paid.”

The mobile game offers can be presented inside an app, via email or through a text message; it’s up to the retailer. Mobivity did head-to-head tests comparing a retailer’s standard offer to one paired with a mobile game and found that the mobile game offer will “typically outperform by 22% or better,” Michaels pointed out. The company is also seeing the return purchase rate going up for its retailer

“While loyalty programs are important, they are just one part of the customer journey.”

— Mike Flebotte, Business Accelerator Team

partners, with customers coming back two and a half times more frequently.

While Chestnut Market only started working with Mobivity a few months ago, Cerra spoke about her experience working with the company at her former employer, Refuel Market in Charleston, S.C., which operates 200-plus convenience stores.

“At Refuel, we used it to drive engagement in our app and drive repeat visits to the stores, and our members would receive a push notification or email,” she said. “We also advertised it in various places on our app. Every 30 to 60 days, we would change the game.”

The offer tied to the game download was 20 cents off per gallon of gas. This was redeemed at a higher rate than any other offer in the store, Cerra explained, adding that the gaming population proved to be “a much more valuable customer to us.”

Redemption of the offer depends on the retailer and can be integrated with loyalty or done by phone number. At Refuel, the process is now integrated with its loyalty provider, so when a customer downloads the game, the fuel savings are automatically applied to their account. “Before we integrated, they would get a text with a promo code to manually enter in,” Cerra said.

Harnessing the Power of Social Media

One cannot talk about digital engagement without mentioning social media. This is another way c-store retailers can digitally engage potential and current customers, whether through posting content and offers or having customers spread the word for them as brand ambassadors.

Chestnut Market utilizes Instagram, Facebook, LinkedIn and Threads. According

Mobile games are a way to engage customers and bring in revenue.

to Cerra, their social media community is very engaged and interactive when the retailer posts.

Flebotte noted that retailers can leverage unique content on social media to engage with customers in new ways. “For example, Buc-ee's encourages user-generated content from a devoted fanbase that features their branded merchandise, brisket sandwiches and even selfies with their beaver mascot,” he said.

Another route is social media influencer marketing, which involves partnering with a social media influencer to advertise and talk about a brand and its products and offers. This is especially helpful if the effort is localized, Flebotte advised.

“Influencers with strong followings in those markets where the retailer operates are able to connect with customers in more authentic and relevant ways, which helps grow the retailer audience and drive overall engagement,” he said. CSN

The Pulse of D&I Slows

Diversity and inclusion programs in the convenience store industry are under pressure

By Linda Lisanti

FIVE YEARS AFTER THE MURDER of George Floyd and the height of the Black Lives Matter movement, several U.S. companies have walked back or abandoned their commitments to diversity, equity and inclusion due to political pressure and public scrutiny.

Convenience store industry companies are among them. According to the 2025 Diversity & Inclusion Pulse Study conducted by Convenience Store News, fewer than two in 10 respondents reported that their organization currently has a D&I program in place, a significant decline from the 35% who said the same last year. Meanwhile, more than five in 10 respondents indicated their organization does not have a program nor plans to develop one, up from 39% a year ago.

The study is designed to investigate the current state of diversity and inclusion in the industry and capture the sentiments of retailer, distributor, manufacturer and service/solution provider employees and employers at all levels — from the C-suite to the c-store.

The top five reasons for not having or planning to have a D&I program are:

1. We are already diverse and inclusive; don’t need a formal D&I program (last year’s No. 2)

2. Diversity and inclusion are not issues our organization is concerned about (last year’s No. 1)

3. Our organization doesn’t feel it is a

corporate responsibility to get involved in D&I issues

4. Our organization isn’t large enough (last year’s No. 5)

5. Too many higher-priority issues to deal with (last year’s No. 4)

Similar to a year ago, some respondents strongly oppose any endeavors focused on diversity, equity or inclusion by an organization. Comments among this group include:

• “We just pick the best people for the job regardless of anyone’s race, sexuality, gender, etc.”

• “Our organization hires based upon merit and skills, and does not believe discriminating against some groups for DEI purposes is fair to anyone.”

• “Equal outcomes is not realistic. You should abandon all expectations to do so.”

• “We refuse to bend our knee to woke trends.”

On the other side of this divisive issue, respondents who are proponents of D&I programs note that such efforts create a safe and welcoming culture where all team members can contribute fully and authentically, leading to an organization that thrives together. Additional benefits they cite are increases in employee engagement and retention; innovation powered by the inclusion of diverse perspectives and lived experiences; and better reflection of the communities they serve.

C-store industry companies with active D&I programs have workforce diversity levels significantly higher than those without programs, this year’s study found. When asked to describe the level of workforce diversity at their organization, 57% of respondents from companies with programs selected very diverse, compared to 36% of respondents from companies without a program.

As one proponent stated, “Equality makes for a happy environment. Diversity gives you access to ideas and perspectives we would not normally have, which gives us

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No, and no plans to develop

Does Your Organization Currently Have a Diversity & Inclusion Program? Reasons for Not Having or Planning to Have a D&I Program

an advantage. Inclusion creates buy-in, which makes every company stronger.”

Forging Ahead

Last year’s top ranked priorities — collecting feedback from employees on how to improve/ expand the D&I program, and providing D&I training to all employees — fell to No. 3 and 54% 4% 5% 4% 18% 14%

C-store industry organizations with existing D&I programs remain committed to expanding and advancing their efforts. However, they face barriers — namely, limited budgets and not enough resources (which jumped from the No. 6 challenge last year to No. 1 this year), and skepticism among employees and perceptions that D&I efforts are “virtue signaling” (cited as the No. 2 challenge for the second consecutive year).

As for future plans and goals, perhaps due to the resource and budgetary challenges, the number of priorities has shrunk compared to last year, indicating a higher level of focus, and some priorities have shifted in importance.

“We just pick the best people for the job regardless of anyone’s race, sexuality, gender, etc.”

— Study participant

Already diverse and inclusive; we don’t need a formal D&I program

D&I are not issues our organization is concerned about

Our organization doesn’t feel it is a corporate responsibility to get involved in D&I issues

Our organization isn’t large enough

Too many higher-priority issues to deal with

Having a D&I program would alienate us from our customers and/or business partners

Don’t have the organizational structure to support it

Don’t have enough people willing to lead or participate in it

Don’t have the budget to support it

Don’t know what to do/where to start

Describe the Level of Workforce Diversity at Your Organization

No. 4, respectively, this year. Conversely, a heightened focus on mentoring and allyship jumped to No. 1 this year compared to No. 4 a year ago, while prioritizing D&I as part of the business strategy ranked No. 2 this year, gaining one spot over last year.

“Personally, I think it’s important for future D&I efforts to focus on representation at all levels, ongoing education and inclusive decision-making,” one respondent shared. “It’s not just about who’s in the room, but whose voice is heard and valued.”

Several supporters of D&I programs maintain that in order to build and sustain a culture of equity, representation and respect, diversity and inclusion must be integrated into all aspects of the business and requires participation across

every level of the organization.

“I believe that for any diversity and inclusion program to be meaningful and impactful, it needs to go beyond statements and be woven into the culture and daily operations of the organization,” said one respondent. Another stated: “It is a company culture, not a program.”

When asked how they define success for their D&I program, respondents pointed to measures such as representation metrics, pay equity, leadership diversity, retention rates, and employee participation in resource groups and other D&I initiatives. CSN

Future Plans for D&I Programs

Expand focus on mentorship & encourage allyship

Prioritize D&I as part of business strategy

Collect employee feedback on how to improve/expand D&I program

Provide D&I training for all employees

Develop/expand employee resource groups

Expand D&I efforts beyond gender, racial & ethnic lines

Develop clearly defined performance metrics

Expand efforts to reach more levels of organization

Develop clearly defined goals for D&I program

“It is a company culture, not a program.”

— Study participant

TAKING OWNERSHIP OF YOUR CAREER ADVANCEMENT

Convenience Store News' Future Leaders Learning Lab provides techniques to position yourself as a must-promote employee

By Danielle Romano

MEANINGFUL CAREER GROWTH requires more than just hard work and confidence. While those qualities are important, it's imperative to take ownership of your career advancement with the right mindset and strategic goals to position yourself as a must-promote employee.

"We get hyper-focused and tend to put our heads down, and we charge forward. We isolate ourselves. We build barriers around us and we don't incorporate and engage others in the work that we do," said Kolby Goodman, founder and lead career strategist at The Job Huntr. "We're not building up that kind of influence or support around us, and that will absolutely hinder your ability to go farther faster because there's nobody on your side to champion you moving forward."

Goodman explained. "If we become proactive problem solvers … you become a go-to resource for your employer for the most exciting, for the most interesting and for the most profitable problems that your company is going to face."

2. Set strategic and achievable short- and long-term goals

Emerging leaders should make sure they're setting intentions and making action plans for the short- and long-term. He stressed the importance of achievable, measurable milestones they can control, and suggested they ask themselves three key questions:

• What specific actions can I take in the next six months to position myself for a new role or a new promotion?

• What skills can I learn or improve today that will help me advance in my career over the next one to three years?

SCAN THE QR CODE BELOW TO WATCH THE REPLAY:

As part of Convenience Store News’ Future Leaders Learning Lab, Goodman explored practical techniques that individuals can use to shift from being a job-doer to an in-demand problem solver. The webinar series aims to give participants techniques and tools they can use to take their careers to the next level.

Focusing solely on task completion is not sustainable and leads to burnout, missed opportunities and misalignment with professional goals, he said. Instead, Goodman advocated for stepping beyond your role and positioning yourself as a leader and strategic partner who proactively solves problems and drives organizational success.

To have this kind of career trajectory, he laid out the following framework:

1. Develop the mindset of a future leader by seeing yourself not just as a contributor, but as a key driver of solutions and success "Instead of working harder and grinding to complete the next task, I want you to evolve into thinking about how to be the most impactful problem solver because people appreciate when a job is done, but we also internalize how people made us feel and the pain they relieved for us,"

• How can I consistently measure and track to know that I'm making progress toward the career that I want over the next year?

3. Build a strong personal brand and foster relationships to boost your reputation and drive long-term career growth

Working in hyper-focused mode and prioritizing the urgency of everyday tasks, young professionals struggle to grow their own careers not because of a lack of experience, but because of a lack of examples of great work, according to Goodman.

"You want to make sure that people making decisions know about you. … That you are advocating for yourself to these individuals and that you're giving regular updates,” he said. “Keeping them informed and communicating with them on a regular basis is going to make sure that you stay top of mind. Don't assume somebody's going to see the fruit of your labor and give you credit."

The Future Leaders Learning Lab is an element of CSNews' Future Leaders in Convenience (FLIC) program. Now in its eighth year, FLIC is designed to help celebrate and develop the next generation of c-store industry leaders. It provides a forum for talented young business people to hone their leadership skills and also recognizes the achievements of a select few rising stars already making significant contributions to the industry. CSN

Kolby Goodman

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Getting Healthy

C-stores have significant potential to develop their better-for-you offerings

Roughly six in 10 convenience store shoppers consider themselves health-conscious, according to the 2025 Convenience Store News Realities of the Aisle Study, which surveyed 1,500 consumers who shop a c-store at least once a month. However, the majority are not turning to convenience stores for their purchases of healthy and better-foryou products, suggesting that there remains significant potential for c-store operators to develop and expand their offerings in this category. The research also revealed:

Do You Purchase Healthy & Better-for-You Products?

More than half of the convenience store customers surveyed reported that they currently include healthy and better-for-you products in their purchases at least some of the time.

How Often Do You Purchase Healthy & Better-for-You Products From:

The majority of these purchases are occurring at mass retailers and traditional grocery stores.

Satisfaction With Selection of Healthy Foods at Convenience Stores

Among those c-store shoppers who identify as health conscious, just 35% said they are extremely/very satisfied with the current selection of healthy food and beverages available in the channel. This number did increase by 9 points year over year

Health-conscious convenience store shoppers are most concerned about:

• Fresh

• Sugar

• Protein

• All-natural

• Ingredients I can understand and pronounce

Protein moved into the No. 3 spot this year after ranking sixth last year

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CSN September 2025

A FORCE OF NATURE

A MILLENNIA IN THE MAKING

Be the first to become A Force of Nature®

NATURALLY ALKALINE ARTESIAN WATER

NATURALLY ALKALINE ARTESIAN WATER

NATURALLY ALKALINE ARTESIAN WATER

NATURALLY ALKALINE ARTESIAN WATER

SCAN DATA BASE INCENTIVE

CONSISTENT LOYALTY ID (CID) PROMOTIONAL FUND

SCAN DATA MAINTENANCE INCENTIVE

Talking Tech

The Three Horsemen of C-store Evolution

Food, technology and loyalty lead the way to future success

CATEGORY MANAGEMENT

CORPORATE OFFICERS

TOP VIEWED STORIES

1

PHOTO GALLERY: Wawa Debuts Travel Center Format

7-Eleven Parent Plans 1,300 Store Openings in North America by 2030

Insights in Action: Key Findings From Convenience Store News’ Exclusive Foodservice Research

3

Buc-ee’s Named Among America’s Best Retailers

4

Maverik to Move Majority of Combined Operations to Its Base Camp

EG Group Cofounder Pushes for U.S. Sale

Why Better Backbar Products Mean Better Business

MOST VIEWED NEW PRODUCT

U.S. District Court Judge Overturns Swipe Fee Cap

FAST FACTS

Eye on Growth

Retailer Tidbits

Supplier Tidbits

PIZZA THAT PAY$.

TWIX Snickerdoodle

Wip Energy Pouches

Johnsonville Pre-Sliced, Pre-Cooked Sausages

THANK YOU, WE CARD.

It’s All About You

WE CARD Celebrates 30 Years of Responsible Retailing

An Increasingly Complicated Challenge

THAN BEST NO LESS

Committed to Culture

It’s About People

Fall Lineup. Full of Proﬁt.

Kwik Trip’s Core Values

Innovation

Building a Foodservice Empire From the Ground Up

products

Kwik Trip

The Power of Fried Chicken

Good News, Bad News

The Impact of the Illicit Market

Harm Reduction Hope

States Stepping In

What’s Legal?

Firing Up Your Foodservice Business

How Kwik Trip Cooked Up a Successful Company Culture

Competitive Differentiation Today & In the Future

Unlocking the Power of Foodservice Beverages

Does Your Store Pass the Generation Taste Test?

Lens Layering

Exploring the Benefits of a Production Kitchen

The Explosive Growth of RTDs

What’s Driving Sales?

New Laws Fuel RTD Sales in Convenience

Deviating From Tradition

Growing the Category

Game On!

Practice the practical

Automate the process

Embrace online & mobile opportunities

Embracing Innovation

Join Us in Celebrating Excellence

Small Chain Award, Gold Medal: Nittany MinitMart

Room for Improvement

Growing Engagement

Not Standing Still

Director of Technology,

All-in-One Foodservice Operations Platform