CSNC-Octane January 2024 by ensembleiq

5 WAYS TO IMPROVE OPERATIONS

WITH AI

UNWRAPPING

PRIVATE LABEL POTENTIAL

SCORE BIG WITH

SPORTS DRINKS

TR E N DS AND OPPORTU N ITI E S THE

ISSUE

PLUS!

INDUSTRY LEADERS SHARE WHAT’S ON THEIR RADAR FOR 2024

JANUARY/FEBRUARY 2024 CCentral.ca @CSNC_Octane PM42940023 $12.00

SAVE THE DATE

Canada’s LARGEST convenience, gas and car wash industry event

BROUGHT TO YOU BY

MARCH 5 & 6, 2024 TORONTO THE INTERNATIONAL CENTRE

DISCOVER

CONNECT

GROW

ConvenienceU.ca

CONTENTS

JANUARY | FEBRUARY 2024

VOLUME 7 | NUMBER 1

Illustration created with Adobe Stock using generative AI

5 Editor’s Message Stronger together

6 The Buzz

People, places, news and events

8 Top Ops

What if…: Do you have the right contingency plans and processes in place to protect your business in case of illness, accident or death?

10 2024 Outlook

Industry leaders from across Canada weigh in on the issues, trends and opportunities shaping the channel

14 Feature

Opportunity knocks: From AI to retail media, private label and beverage alcohol, here’s what will define the year ahead

19 Category Check

Scoring with sports drinks: Demand grows, as big names jump in the market ready to compete for Canadian consumers

TOP RIGHT, FRANCIS VACHON

22 Retailer Spotlight

Crushing it: Quebec entrepreneurs share their strategies for turning Le Garde Manger into a destination for beer and snacks

25 Backtalk

Private thoughts: Leslie Gordon, director of proprietary brands, Circle K, talks to CSNC contributor Chris Daniels about the evolution and untapped potential of private label brands

CCentral.ca

Marc Gauvin and Marie-Josée Dumas from Dépanneur Le Garde Manger

CSNC EDITORIAL ADVISORY BOARD

Comprised of leading retail executives and convenience operators, this volunteer group of industry champions offer advice, key insights and on-the-ground perspectives that serve as an invaluable resource to ensure content is relevant and meets the needs of the industry. Robbie Broda, Little Short Stop Marc Goodman, 7-Eleven Canada Leslie Gordon, Circle K Wendy Kadlovski, Nicholby’s Laurie & Randy Ure, Ure’s Country Kitchen Gino Vecia, Hasty Market

ALL CONVENIENCE E-NEWSLETTER

Delivered to your in-box Monday and Wednesday

The latest industry news and information, plus resources, foodservice insights, store solutions, tobacco/vaping updates and more. Don’t miss out! Sign up today at CCentral.ca/signup

Simply hover your phone’s camera over this code:

Convenience Store News Canada January | February 2024

YOUR FEEDBACK MATTERS Your feedback is invaluable to us. Together, we can drive change for the better in how we serve your interests.

Scan the QR code and let your voice be heard!

To show our appreciation, you’ll have the opportunity to enter to win a $100 Visa gift card.

All responses will be kept strictly conﬁdential. Neither your name nor your organization’s identity will be tied to your responses.

EDITOR’S MESSAGE 20 Eglinton Ave. West, Suite 1800, Toronto, ON M4R 1K8 (416) 256-9908 | (877) 687-7321 | Fax (888) 889-9522 www.CCentral.ca BRAND MANAGEMENT

SENIOR VICE PRESIDENT, GROCERY AND CONVENIENCE, CANADA Sandra Parente (416) 271-4706 sparente@ensembleiq.com EDITORIAL

EDITOR & ASSOCIATE PUBLISHER Michelle Warren mwarren@ensembleiq.com ASSOCIATE EDITOR Tom Venetis tvenetis@ensembleiq.com ADVERTISING SALES AND BUSINESS

SALES DIRECTOR Julia Sokolova (647) 407-8236 jsokolova@ensembleiq.com ACCOUNT MANAGER Holly Power 416-910-1085 hpower@ensembleiq.com SALES COORDINATOR Juan Chacon jchacon@ensembleiq.com DESIGN | PRODUCTION | MARKETING

CREATIVE DIRECTOR Nancy Peterman npeterman@ensembleiq.com ART DIRECTOR Jackie Shipley jshipley@ensembleiq.com SENIOR PRODUCTION DIRECTOR Michael Kimpton mkimpton@ensembleiq.com MARKETING MANAGER Jakob Wodnicki jwodnicki@ensembleiq.com

CORPORATE OFFICERS

CHIEF EXECUTIVE OFFICER Jennifer Litterick CHIEF FINANCIAL OFFICER Jane Volland CHIEF OPERATING OFFICER Derek Estey CHIEF PEOPLE OFFICER Ann Jadown CHIEF STRATEGY OFFICER Joe Territo

Stronger together

WE’RE EXCITED TO KICK OFF 2024 with a deep dive into the issues, trends and opportunities that will help position your business for success in the year ahead. With that in mind, we invited convenience, gas and car wash leaders, including retailers, vendors and distributors, from across the country to share their insights and predictions for 2024 (p. 10). It’s crowdsourcing at its finest and a fascinating read: A huge thank you to everyone who participated. Of course, we did our own research, too, and came up with four major topics— artificial intelligence, retail media, private label and beverage alcohol (2023 ended with welcome news for Ontario c-stores! )—we believe will shape the channel (p. 14). Our goal was to look at how each is impacting both corporate retailers and independents. For instance, if you think AI is something that only big chains can leverage to improve their operations and in-store experience, think again. AI is evolving quickly and there are countless solutions for c-store operations of all sizes. While the economy sputters along and some businesses are bracing for some challenging months, opportunities abound. Our goal, as always, is to make connections, tell your stories and give you the information you need to make important business decisions. With that in mind, we are also looking ahead to The Convenience U CARWACS Show March 5-6. As the event evolves to meet your changing needs, the Convenience Store News Canada team is thrilled to, once again, curate two mornings of education and inspiration with the C-store IQ Conference: Find out more on p. 7 of OCTANE. In addition to major events, magazines and newsletters, we’re committed to bringing you plenty of reasons to celebrate in 2024, with the Star Women in Convenience Awards, Impact Awards and Future Leaders in Convenience + Car Wash Awards. Here’s to good health and prosperity in 2024!

SUBSCRIPTION SERVICES

MICHELLE WARREN

Editor & associate publisher

standard

no gradients

watermark

BE A PART OF OUR COMMUNITY!

stacked logo (for sharing only)

CCENTRAL.CA E-NEWSLETTER

CSNCOCTANE

@CSNC_OCTANE

CONVENIENCESTORENEWSCANADA

Convenience Store News Canada | Octane is published 6 times a year by Ensembleiq. Convenience Store News Canada | Octane is circulated to managers, buyers and professionals working in Canada’s convenience, gas and wash channel. Please direct inquiries to the editorial offices. Contributions of articles, photographs and industry information are welcome, but cannot be acknowledged or returned. ©2024 All rights reserved. No part of this publication may be reproduced in any form, including photocopying and electronic retrieval/retransmission, without the permission of the publisher. Printed in Canada by Transcontinental Printing | PM42940023 CHANNEL ALLIANCES:

p.s. Speaking of health, writer Wendy Helfenbaum brings us an important story for anyone who runs their own business, particularly busy c-gas operators. In “What if” she shares one retailer’s personal story and dives into what you need to know to protect your business, family and staff in case of illness, accident or death (p. 8). CSNC

CCentral.ca

Convenience Store News Canada January | February 2024

THE BUZZ

CROS S- CANADA ROUND - UP / PEOPLE / PL ACES / NE WS & E VENTS

FU N FACT

There are

22,448

GET READY

Nominations open February 1 for the 2024 Star Women in Convenience Awards.

convenience stores in Canada—60% are independent and 40% are corporate owned.

READER POLL

The repayment deadline for Canada Emergency Business Account (CEBA) loans is being extended from December 31, 2023, to January 18, 2024. CEBA loan holders who need an extension are asked to make a refinancing application with the financial institution that provided their CEBA loan by January 18, 2024: The repayment deadline to qualify for partial loan forgiveness now includes a refinancing extension until March 28, 2024. In November and December we asked readers how this will impact their business.

95% 5% Yes 6

If you answered yes, were you able to pay back your loan?

5% 10% Yes, it’s done

Not yet, but I will pay back before the deadline

January | February 2024 Convenience Store News Canada

90%

No and I will need a further extension

SHUTTERSTOCK.COM

Did you apply for and receive a Canada Emergency Business Account loan during the COVID-19 pandemic?

CCentral.ca

MOVING ON UP

ON LI N E E XC LU S IVE S

Adam Ableman is now general manager with Hyde’s Distribution. Ableman, who spent several years at Mars, where he took on progressive roles, was most recently with ITWAL Ltd. Kaitlin Dowsett (Minsky) is promoted to senior brand manager - mainstream and handhelds on the frozen business at Conagra Brands. The 2019 Star Women in Convenience winner has been with Conagra for more than seven years, most recently as senior brand development manager – snacks. Karla Hewitt is now category manager - car wash at Suncor Energy Products Partnership. The 2023 Star Women in Convenience winner has been with Suncor for more than 12 years, most recently overseeing beverage and automotive. Jean-Philippe Leblanc takes over as vice-president of coffee for Keurig Dr Pepper Canada. He brings more than two decades of experience in consumer packaged goods to the role, mostly recently with Agropur. Stephanie Lilak is promoted to EVP and chief people officer at Mondelēz International, replacing Paulette Alviti, who is retiring.

10 HEADLINES YOU DON’T WANT TO MISS!

1. Ontario to expand beer, wine sales to all provincial convenience stores by 2026

2. Kenny Shim announced as new president of the OCSA, Dave Bryans retires 3. 7-Eleven Canada's Wallace & Carey acquisition will bring "stability"

4. De-escalating high-stress situations at work

Save the Date

The Convenience U CARWACS Show March 5-6, 2024

International Centre, Mississauga, Ont. ConvenienceU.ca

Future Leaders in Convenience + Car Wash Awards March 6, 2024

The International Centre

ACE 2024: Shaping the future April 23-24, 2024

Halifax Convention Centre, Halifax N.S SHUTTERSTOCK.COM

TheACEShow.ca

Star Women in Convenience Awards Event

5. Scotiabank arenas in Calgary and Toronto debut cashierless c-stores

6. Competition Bureau resolves competition concerns with Global Fuels acquisition of Greenergy’s retail fuel business 7. How to leverage convenience store OOH screens 8. Weighing the threat of Ozempic on snack sales 9. Parkland to expand EV charging network in Canada

10. How is AI transforming gas station security? Don’t miss the latest news and trends, get the All Convenience e-newsletter delivered to your in-box Monday + Wednesday. Sign up at CCentral.ca/newsletter

October 1, 2024

International Centre, Mississauga, Ont. StarWomenConvenience.ca CCentral.ca

Convenience Store News Canada January | February 2024

TOP OPS BY W E N DY H E LFE N BAU M

What if ...

Do you have the right contingency plans and processes in place to protect your business in case of illness, accident or death?

January | February 2024 Convenience Store News Canada

faced with an emergency or a health crisis can be overwhelming. We asked experts across Canada how you can protect your business now.

Start with smart systems

The Canadian Federation of Independent Business recently published a report showing small business owners work an average of 59 hours a week to fill gaps due to the ongoing labour shortage. And only 6% of respondents were automating their processes to compensate for these shortfalls. That’s a recipe for chaos, says Beverlee Rasmussen, a certified systems business coach in Langley, British Columbia and author of Small Business Big Opportunity. Rasmussen notes that while tactical business owners bail water out of a sinking boat every day in a state of panic, strategic business owners pull the boat out of the water and fix the holes. Having a systems-based mindset allows you to pull a sinking boat out of the water if you fall ill. “A system is simply the way something CCentral.ca

GETTY IMAGES/FILO

When Mélanie Mainville with Payeur, is a 2023 Future and her business partner Leaders in Convenience + Car Karl Payeur bought four Wash winner. Dépanneur Voisin (Sobeys) “For the next two years, I c-stores in Lourdes-dejuggled our business in between Joliette, Quebec from their many doctor’s appointments. previous boss in 2021, they Without the help of Karl and were excited about their our team, I wouldn’t have made new venture. it. Everyone supported me, and But two weeks after taking I’ll never forget that. Unfortupossession of the stores, nately, that operation didn’t Mainville’s doctor delivwork; the tumor is back, and I’m ered some shocking news: waiting for my next surgery.” A mass in her chest she’d Running a c-store business had removed six months is often a seven-day-a-week earlier was diagnosed as an endeavour, and many owners aggressive desmoid tumor. are so busy they don’t stop to Although it was benign, wonder what would happen if she underwent a month of Mélanie Mainville they or their loved one were chemotherapy treatment to and Karl Payeur struck by critical illness or prevent it from returning. accident. If you’re incapaci“When the chemo stopped working three tated and there’s no contingency or succesmonths later, I had an 11-hour emergency sion plan in place, your business and the surgery to remove the tumor and affected ribs, well-being of your employees can suffer. then weeks of bed rest,” recalls Mainville, who, Scrambling to implement a game plan when

happens. Without formal systems, every action in your business is decided by you or your employees in the heat of the moment,” says Rasmussen. “Systems thinking reframes every problem in your organization as an opportunity for improvement.” Because many c-stores start small without any documentation, owner/operators do everything and hold most of the operational knowledge. Putting a contingency plan in place means someone else can quickly take over in an emergency, says Rasmussen. Begin by asking: What systems are already in place and what needs your attention? “You need an operating manual and procedures in case you need to step away. Write down what’s working so someone else can come in and take that over,” suggests Rasmussen. “In the past, owners would’ve rolled their eyes and said, ‘It’s going to take me months to write it down’, but now with artificial intelligence, you can feed the basic premise of how to merchandise your candy into ChatGPT and it’ll give you the step-by-step process, which you can then revise.” Write everything down in a spreadsheet or a notebook, she adds. How do you want the store to operate? How do you want clients to feel when they come in? What would be devastating if you didn’t have it on the shelf? What’s your return policy? “Add in all your supplier systems, your customer service systems, your cleanliness and restocking systems—everything that happens whether you’re there or not,” says Rasmussen. Ditto for your training systems because there’s no point having a manual on the shelf if your employees don’t know how to use it. “Your team can help you write procedures because they’re in the trenches with you and can make checklists like ‘Here’s how to cash out’ and ‘How to open the store’,” she adds. Build your contingency plan into your business plan, and list who will be responsible for management decisions while you’re away. Sensitive information about legal agreements or finances can be kept in a password-protected file that only one or two trusted employees can access. Create a contact list of repair people and suppliers, how much you regularly order and what terms have been negotiated, and keep that information in a convenient location, advises Rasmussen.

Ensure you have the right insurance coverage

C-store owners might not realize that their commercial liability insurance policy won’t cover them if they’re injured or ill, or if they CCentral.ca

take a leave of absence to care for a sick relative. Depending on where you live, workers’ compensation won’t cover you if you’re the sole proprietor, so if you fall off a ladder or have a car accident, you can’t make a claim. “While a commercial liability policy is great to cover stock, operations, theft, fire and lawsuits, it doesn’t actually cover the self,” explains Brandon Bowie, team lead in the property and hospitality space at Zen Insurance in Orangeville, Ont. “So, in a mom-and-pop shop where the owners are incredibly important to the business, you must cover the owners as well. Commercial policies can cover lost income due to a fire or total loss of property, but it can’t cover loss of time or loss due to personal sickness.” That’s why experts advise purchasing a ‘key person’ policy in tandem to your commercial one that will cover you, your spouse—if they work with you—and any employees vital to your business. This type of insurance covers short- and long-term disability, so you’ll be paid while you recover. “Disability insurance is more important than life insurance for a small business owner to cover their bills,” adds Leslie Gardner, a certified financial planner in Lantzville, B.C. Ask lots of questions when buying insurance to make sure you understand what’s covered. “Two convenience store owners could have completely different packages, depending on what they think they need to be covered for, what their risks are, and what they sell,” says Bowie.

Figure out the financials

If you’re incapacitated, do you have the cashflow to make payroll and pay vendors? Gardner’s first step is checking how the business runs so operations can continue even if you’re not there. “Where’s the money coming from? The biggest mistake I see is everybody spends the tax money, and you can’t spend that tax money. The minute your business income arrives in your bank account, set aside the tax money and then work with the rest,” she advises. Speaking of taxes, being in the hospital doesn’t get you off the hook for filing business or personal taxes, so it’s wise to file a taxpayer relief request form with the Canada Revenue Agency and your provincial tax department, suggests Brendan Rolfe, senior manager of business resources for Western Canada for the CFIB. “If I’m getting cancer treatments and can’t focus on my business, I can ask for relief from filing those payments and from the interest and penalties that would normally be associ-

ated with late remittance,” he says. Since most business owners aren’t eligible to collect employment insurance even if they’re paying into it, you can proactively register for EI for self-employed workers, depending on where you live, adds Rolfe.

Go with a pro to get the best business advice

It’s daunting to figure out everything on your own, so reach out for help when you need it, says Rolfe, whose team advises small business owners and offers HR, WCB, human rights and tax support services to its membership of about 100,000 businesses across the country. Rolf sees many business owners with an emergency plan in case of fire or flood, but nothing for injury or illness. First, choose someone to take over if you’re not there. “I recommend a succession or continuity plan. In HR, we call this ‘building your bench’: If I get sick or injured, who’s going to run the business while I recover?” says Rolfe. “It should be somebody you trust without question to do what’s right for your business and make the right decisions. I always recommend training and keeping an eye out for strong workers.”

Take your time, but get started now

You might need several weeks or months to organize important information and train employees to take over if necessary. Rasmussen suggests carving out five hours a week to work on your contingency plan. There’s no need to start from scratch; the Business Development Bank outlines an eight-step continuity plan on its website. Many banks and insurance companies provide similar guides. If you’re a franchisee, ask your parent company for guidance. The CFIB offers free resources to its members including Building a Succession Plan that can serve as a checklist, along with about 200 business templates covering everything from emergency disaster planning to continuity planning. “Plug in your information, and we’ll review it with you and add any contingencies you didn’t think of,” says Rolfe. “Your job is to run your business, but our job is to know everything about running the business to make our members’ lives easier.” Once you have a contingency plan, loop in your tax planning accountant, attorney, insurance agent and banker. Remember to update your plan regularly. By adopting a proactive approach to your business, you can quickly get things under control and focus on recovery. CSNC

Convenience Store News Canada January | February 2024

2024 OUTLOOK

Industry leaders from across Canada weigh in on the issues, trends and opportunities shaping the channel

January | February 2024 Convenience Store News Canada

CCentral.ca

TRENDS AND OPPORTUNITIES Farhan Alarakhia Fuel director, Alimentation Couche-Tard | Circle K

2024 will likely be a challenging year, as Canadians grapple with inf lation and higher cost of living. At CoucheTard/Circle K we are focused on finding opportunities to deliver more value through our forecourt offerings on both fuel, car wash and store offerings. As more and more Canadians are returning to the office, we need to find ways to save them time as they juggle busy schedules. Last year we invested significantly in upgrading most of our dispensers to enable contactless payment and other features. We also added the ability for our subscribers to activate their wash directly from their mobile phone. Another trend we are watching closely in the continued adoption of EV’s. We are working with our North American e-mobility team on building our EV charging network. Circle K continues to build on its experience and leading market position in Scandinavia to bring its North American customers easy and adapted EV charging solutions as well as a compelling customer journey. Finally, as fuel retailers we will need to prepare for increased renewable content in fuels. This will include a thorough assessment of existing fuel station equipment and working closely with equipment suppliers and petroleum contractors to ensure we have plans in place.

Chuck Arcand Corporate director of Canadian marketing, Core-Mark

If there is going to be one overarching theme for 2024, it is innovation. We are going to see more food providers seeing the importance of the convenience store channel to their business and customers, and that will spur them to continue to innovate with more products. You are going to see an even greater number of ready-to-eat meals arriving on convenience store shelves as food manufacturers strive to meet a consumer palate that is hungry for new flavours and healthier options. You will also see the introduction of new technologies that will allow convenience stores to prepare more fresh meals for customers to eat right there in the store or to take home. Convenience stores are fast becoming food shopping destinations very much as grocery stores are today. Here at our Innovation Centre, we are continuing to innovate with new foods and technologies that will bring quick-serve restaurant attributes to convenience stores, giving Canadians even more food and eating options, not just for 2024, but for many years going forward.

Stephen Bown Vice-president of sales – small store, Coca Cola Canada Bottling Limited

In 2024, the retail and manufacturing industries will face both challenges and opportunities. It will be an exciting year as retailers and manufacturers strive to understand the diverse behaviours and CCentral.ca

preferences of consumers and adjust offerings to meet the consumer’s expectations. One key area of interest will be the population changes that are taking place in Canada. Population is expected to grow nearly 2% due entirely to immigration. This will have an immediate and dramatic impact and will require brands, and retailers to quickly adapt in order to engage with an evolving consumer base. However, it is important to note that the country is also facing challenging economic conditions, putting pressure on households nationwide. As a result of inflation, consumers have become more cautious and selective in their spending habits. These concerns have led consumers to move away from discretionary spending and seek enhanced value in their essential purchases, while also looking for affordable luxury such as a small treat from time to time. Additionally, consumers are increasingly aware of the environmental impact of their consumption choices. They now seek out brands that prioritize sustainability and social responsibility. To succeed in this changing landscape, businesses must effectively communicate their authentic commitment to sustainability through innovative practices and clear messaging. Consumers are becoming purposeful in their purchasing decisions opting for fewer but higherquality products that align with their desire to live more sustainably. Therefore, value and purpose will likely be the primary drivers for consumers when choosing one brand over another in 2024.

Marc Goodman Vice-president and general manager, 7-Eleven Canada

In 2024, the impact of inf lation will challenge Canadians to adopt new strategies to manage their budgets. This environment is an opportunity for us to deliver even more value to our customers without compromising quality including expanding our private brand assortment; offering a wider variety of affordable and craveable on-the-go meals and by generating buzzworthy excitement with industry exclusives that you can only get at 7-Eleven.

Paul Hogan Vice-president and general manager, Conagra Brands Canada & International

We see two big opportunities for 2024: Canadians seeking great affordable, convenient food and accelerated growth in snacking including new f lavours. Conagra Brands continues to modernize our iconic brands, leveraging fresh opportunities across our frozen, snacks and grocery portfolios to meet Canadian needs. We recently launched 34 new items including Swanson Oven Bakes, P.F. Chang’s, Bertolli skillet meals and Gardein Suprême chick’n meat alternatives in the Frozen aisle. In snacking, we now offer Slim Jim pantry packs and Angie’s Boomchicakpop’s Sweet Chili Puffs to satisfy snacking demands. 2024 will be another exciting year in food.

Convenience Store News Canada January | February 2024

Amanda Mitchell Director of loyalty, Petro-Canada | Suncor

Nicholas Parra Negotiation and merchandising director, Metro

Serge Nadeau Vice-president projects and development, Groupe Beaudry

Karla Schlieper President, Mondelēz Canada

Our Petro-Points program has been helping Canadians save at the pump for nearly 30 years. A trend we’ve seen over time is that what Canadians expect from loyalty programs (including Petro-Points) is evolving. Notably, Canadians expect seamless digital experiences. The paper punch cards Canadians carried decades ago have transformed into smartphone-enabled apps. Today’s top loyalty programs provide digital experiences that add value. They make it quicker and easier to transact. They bring commonly performed tasks, like buying a car wash, into a unified, self-serve format. They help members track progress in real-time, like how many points they need for their next redemption opportunity. And so, we’re investing in our PetroCanada app and Petro-Points program to do just that—provide a seamless digital experience that makes being a member even more rewarding. Canadians expect to see new ways of being rewarded. Accumulating points or credits toward free items is now table stakes. Canadians also want to see discounts, personalized offers, surprise offers, access to exclusive experiences, and value from partner programs for things like travel and dining out. Ultimately, it’s that full suite of benefits that counts. And so, we continually look at how we can reward Canadians in new ways, including launching a loyalty partnership soon with Canadian Tire. We’re also seeing that free loyalty programs like Petro-Points play an important role in providing value to Canadians when they need it most, especially when inflation has led to higher prices for just about everything. We’re excited about the continued evolution of Petro-Points, and we hope Canadians are too.

The focus for 2024 here at Groupe Beaudry will be all around fresh products and ready-to-serve meals, including fresh sandwiches. We are looking to bring fresh products and meals to those convenience store retail operations that don’t have the space, access to the needed commodities or the staff to prepare on their own those fresh meals and sandwiches. We are using a central kitchen where we are going to prepare fresh sandwiches and freshly made meals for those convenience retailers and deliver them to their stores each day. We have right now selected 15 best-selling meals and sandwiches to prepare at the kitchen and we are putting in place a series of dedicated delivery routes and systems to deliver those fresh meals and sandwiches to our convenience partners. What we want to do is provide them with premium products, not standard fare meals and sandwiches. That is why you will see sandwiches made with freshly baked croissants and wraps. We are going to be providing them premium products, not your standard ham-and-cheese sandwich. We are looking to be making sandwiches made with freshly baked croissants and wraps. And we are also looking at fresh breakfast products as well to go with your morning coffee. 12

January | February 2024 Convenience Store News Canada

In the coming year, several major trends are set to shape the consumption dynamics. One of the most significant factors influencing consumer behaviour is obviously inflation. It is expected to continue its impact as consumers will increasingly seek out promotions and discounts to stretch their budgets. In this tense and competitive environment driven by rising prices, our Proximity Banners have a unique opportunity to stand out. Their ability to offer value through a range of quality services, to foster conviviality and cater to the immediate needs of consumers can make them a preferred choice. In particular, we will continue to develop and invest in our stores, especially in our recently revamped Servi Express concept, and our Private Label brands will continue to gain market share, providing distinctive, good quality and affordable products. However, there are challenges that retailers and the industry must address to keep the stores operational. Curbing illegal activities, particularly related to contraband tobacco, as well as reducing credit card interchange fees are crucial. This is not new but regulations and tangible measures will need to be implemented on these pressing issues. Additionally, the end of Publisac, a well-known advertising flyer distribution system, will force us to quickly rethink our marketing strategies to maintain visibility and relevance in the eyes of consumers. In summary, the year ahead promises to be one of adaptation and innovation for retailers, as they navigate the challenges of inflation, competition, and evolving consumer preferences while striving to contribute to a more sustainable future.

As we head into 2024, we know Canadians are increasingly looking for snacking solutions that fit into their everyday life. Our biggest focus at Mondelēz across our brands, including Oreo, Crispers and Ritz, will be to continue to be top of mind for on-the-go snacking occasions. Canadians want convenience and value without sacrificing on taste. Mondelēz continues to prioritize quality ingredients to make products Canadians know and love. We’re accelerating our plans to deliver on innovation in the snacking space.

CCentral.ca

TRENDS AND OPPORTUNITIES Jacinda Simpson Category director, Aisle 24

In today’s rapidly evolving economy and consumer landscape, the focus on value and convenience in the grocery shopping experience has never been more pronounced. Consumers are seeking not only affordability, but also functional benefits in the products they purchase. This shift in consumer behaviour has given rise to the popularity of value-added products that offer convenience or unique ingredients. The frozen ready-to-go meal category has seen remarkable growth, driven by the convenience it provides to consumers. With the diminishing option of dining out for many, these products allow consumers to recreate restaurant-quality meals in the comfort of their own homes, often at a more budget-friendly price point. This trend is exemplified by businesses like Crafty Ramen and Porta Pizza, who have successfully packaged their beloved dishes into frozen, ready-to-go options that customers know and love, a trend we have capitalized on. Aisle 24’s commitment to providing user-friendly experiences is in sync with this evolving consumer landscape. In a world where consumers increasingly value both convenience and quality, businesses that can deliver on these fronts are likely to thrive and build strong customer loyalty.

Ian White President, Parkland Canada

Choice, value, and rewards. We believe these consumer trends are here to stay, as Canadians look for ways to be efficient and make their dollars go further. Through our family of Canadian retail brands, we are focused on helping customers make the most of every stop. That means providing the right selection of quality products, delivering personalized offers, and supplementing our physical connection with customers with an intuitive digital experience. Beyond making consumer transactions frictionless, customers want to be rewarded for their business. Through our Journie Rewards loyalty program, we will continue to offer increasingly localized, targeted offers that give our customers value on the products and services they want. And with an expanding loyalty partner roster, we are offering our customers more ways to redeem and save. CSNC Turn to page 13 of OCTANE to hear from more industry leaders

OPPORTUNITY KNOCKS

Store brands: Private label levels up

Store brands have shed the stigma of being inferiorly made. While still offering low prices, they are comparative in quality to national brands—and in some cases, outselling them. “We are competing and sometimes winning against national brands,” says Leslie Gordon, director of proprietary brands at Circle K. Recent additions to Circle K’s portfolio of proprietary products include triple chocolate cookie bites, roasted salted pistachios and spicy dill potato chips. 14

January | February 2024 Convenience Store News Canada

Gordon, who talks in-depth about Circle K’s proprietary business in Balktalk (p. 25), says, “Our plan is to launch more store products in 2024.” Rather than just appealing to value-focused shoppers, a study released in December from the Private Label Manufacturers Association indicates c-stores have “a big Peggy Davies consumer opportunity” to appeal to Gen Z with their store label. “Our study revealed that 64% of the Gen Zs who responded said they ‘always/frequently buy’ store brands,” says PLMA president Peggy Davies. CCentral.ca

ADOBE STOCK USING GENERATIVE A

Get ready for the trends and developments expected to shape the c-store industry in 2024. Think generative AI. In-store digital signage networks. The continued proliferation of store brands nationwide. And (in Ontario) prepping to sell beer. The year ahead will offer plenty of opportunity—here’s what you need to know.

From AI to retail media, private label and beverage alcohol, here’s what will define the year ahead

TRENDS AND OPPORTUNITIES With Gen Z shoppers making more frequent visits to c-stores than grocers according to PLMA’s research, Davies says c-stores should also look to expand their store brand to include “frozen and freshly prepared foods,” including natural, organic and plantbased items. “However, it’s not just food,” she says of categories to consider, noting PLMA’s annual private label trade show in November saw “non-food suppliers expand by 40%. That signals to us an increase in retail interest,” says Davies. “So, non-food opportunities could include small electronics, health and beauty, and household products.” “There’s infinite opportunity knocking for store brands in the c-store channel,” she concludes. As for national brands? Expect them to up their promo game. “National brands have to justify why they are more expensive,” says Bruce Winder, Toronto-based retail analyst and author. And so, expect “more price promotions or buy one get one promotions to combat private label.”

Beer: Ontario’s long-time coming attraction

In December, Ontario premier Doug Ford has made good on his commitment from 2018 and announced that starting no later than January 1, 2026, the provincial government will allow for the sale of beer, wine, cider, coolers, seltzers and other low-alcohol read-todrink beverages in convenience stores. It's a huge and hard-fought win, but the work has just begun. Operators are already prepping to welcome the new category. C-stores in Ontario have been extending their walk-in cooler space and/or introducing soda fountain dispensers in the event soft drinks need to take up less refrigerator real estate, says Chris Midbo, head of sales, marketing and new business development at Edmonton-based Western Refrigeration. “The biggest issue in Ontario, especially in urban centres, is store formats are Scott Simmons pretty small. So as great as this could

ADOBE STOCK USING GENERATIVE A

More online: Ontario convenience stores getting ready to sell beer and wine

CCentral.ca

be for them, the challenge for owners is facilitating the needed refrigeration, as well as addressing storage space in the back.” Retailers aren't the only ones celebrating. “Many craft brewers have long wanted the opportunity to sell their products to local convenience stores, and other local, retail outlets, and this is a big step in giving them that opportunity,” says Scott Simmons, president of the Ontario Craft Brewers Association. “That’s why it is great to see government is mandating dedicated shelf space for craft beer in c-stores, which is something convenience stores support, as well as continuing to prevent stocking fees so that consumer choice determines what is on the shelves.” Given craft breweries have seasonal rotations and collaborations with other breweries and are getting into emerging categories, like low alcohol and gluten-free beer, he says the category has options for every adult drinker’s taste. “Our message to c-store owners is to embrace craft and put in the effort to become a craft beer destination in their community for locals and visitors alike,” says Simmons. “I would encourage owners to begin outreach to their local craft brewers to build that partnership and be ready to get their beer on their shelves quickly, as we only see this being successful if c-stores across the province become champions for craft beer.”

Retail media: New visual heights

2024 is looking to be the year more c-stores adopt data-driven high-impact digital signage. Adapt Media has recently signed on INS Market and BG Fuels, growing its advertising network to more than 10,000 c-stores nationwide, with each location either tapping into its network via 50-inch traffic-facing screens in their windows, static posters on the walls or digital displays found at POS. That includes thousands of independents and 2,000-plus Circle K locations nationwide, as well as Hasty Markets. Adapt Media pays a c-store a rental fee to have their digital screens join its network, and a store’s revenues also benefit from any incremental sales the screens drive. The network has been used by the likes of the Aboriginal Peoples Television Network, Ontario Lottery Gaming Corp and Coca-Cola to communicate messages to people passing by or coming into the stores, whether it be for a new product launch, price promotion or contextual messaging. “We command all the screens from a central point, with the ability to shut them off when the store closes, and to understand exactly when the ads are running and for how long,” says Jamie Thompson, CEO of Adapt Media, which recently celebrated its 25th anniversary. “We also have data to calculate the impressions reached.” Ads can be purchased on a programmatic basis—for instance, a buy of inventory near high schools and university campuses that runs only during lunch hour. Adapt Media also offers takeover activations, since it also sells static ad formats like window and floor decals, cooler clings and counter promotions, which can be combined with the digital screens for an immersive ad buy. Scotiabank is among the marketers who have executed takeover activations. Adapt Media is also working with retailers, including INS, to get more granular in their targeting. “We are overlaying transactional and loyalty data, as well as other sets like historical data, to understand customer buying patterns and drive new purchasing behaviours,” explains Thompson. Chicago-based Cooler Screens is another fast-growing provider of digital media, having created technology that takes existing surfaces, like glass cooler doors, and turning them into smart screens that adapt to consumer behaviour and data-driven context. With Convenience Store News Canada January | February 2024

professional lighting and high-quality photography, it can display product behind the coolers with greater clarity, and highlight information like a product’s nutritional information, for instance. It is currently doing a pilot project with Parkland in Canada, but results with stores in the U.S. have found cooler screens achieve a 3% to 5% incremental samestore sales lift. In the U.S., Cooler Screens has more than 11,200 screens in over 760 locations. “I don’t see why a Coca-Cola or Pepsi should ever spend a dollar outside the store—they should give their money to the retailer, because the eyeballs that come in day in and out can be influenced at point of sale,” says Cooler Screens CEO Arsen Avakian, who created the company after founding Argo Tea in 2003 (and sold in 2020) and never really knowing which half of his advertising spend was well-spent.

Arsen Avakian

FROM CREATING MARKETING AT SCALE TO THE METAVERSE, IT’S A NEW WORLD FOR C-STORE OPERATIONS OF ALL SIZES Think AI is something that only big chains can leverage to improve their operations and in-store experience? That may have been true, but not in 2024. “While economies of scale and large budgets often favour large retailers, the evolving landscape of AI for retail now provides more accessible options for smaller businesses,” says Helene Desmarais, chairman and co-CEO of IVADO Labs, a Montreal-based software consulting firm which harnesses AI methods to solve supply chain needs. “There are also funding grants and subsidies businesses can apply to both provincially and federally for adopting AI,” says Maxime Cohen, Scale AI professor of retail and operations management, director of research at the Bensadoun School of Retail Management at McGill University, and scientific advisor at IVADO Labs. The Bensadoun School also operates a working Montreal-based store lab in partnership with Couche-Tard. CSNC spoke to Desmarais and Cohen about the ways AI can be used by c-stores.

Digital marketing

You might have heard of a little tool called ChatGTP— short for “generative pre-trained transformer,” the chat16

January | February 2024 Convenience Store News Canada

bot can do everything from write college essays and create custom images to solve complex math problems. It’s free to use with a simple web interface. It can also help independent c-store owners and smaller chains punch above their weight when it comes to their marketing output. “Everything related to digital marketing can be done amazingly well and much more efficiently and cheaply than ever before,” says Cohen, “from advertising campaigns, optimizing social media, SEO and even creating visual assets for flyers.” “This new technology reduces drastically the cost of such campaigns and is hence accessible to small retailers and SMEs,” agrees Desmarais.

Planogram optimization

“The advantages of AI for retailers extend beyond corporate office functions, into enhancing store operations,” says Desmarais, both for large and small c-store chains. “The maturity of AI offerings and the availability of open-source tools have led to the development of frameworks and pre-trained models that can be fine-tuned and tailored to the specific needs and scale of smaller retailers.” One notable application? “The optimization of planograms, where AI can significantly boost the efficiency of replenishment operations. This leads to a reduction in the frequency of fill trips required to restock aisles, aligning more closely with demand patterns and optimizing product facings,” she says. “The result is an improved overall customer experience marked by well-maintained shelves and a more efficient shopping environment.” AI can also help with planning decisions around new product introductions where historical data is limited. “AI can help address this challenge by effectively identifying similarities between new and existing products, CCentral.ca

TRENDS AND OPPORTUNITIES by leveraging vast amounts of unstructured data, such as product attributes or images,” explains Desmarais. Speaking of planograms, Cohen has been working in the Bensadoun School store lab with Couche-Tard on optimization of shelving placement. “We all know that items displayed in the middle shelf at eye level sell the most than those displayed at the top or bottom, and so we are trying to quantify the effect by varying the position of different items on different shelves,” he says.

AI-guided visits

By using AI, Cohen says QR codes can be more highly personalized and smart in nature. “By having shoppers scan the code with their phones, stores will have the ability to deliver a promotion at the right price at the right time based on their personal preferences, purchase history and where they are in the store,” he says. It is the utilization of generative AI and digitalization that makes this possible, adds Desmarais. “This combination can generate value by guiding customers within the store, aiding them in locating products or suggesting complementary items to those already in their basket.”

Product demand optimization

IVADO Labs has been working with retailers like Couche-Tard on using AI “to gain deeper insights into consumer preferences, particularly in understanding

how consumers respond when their preferred products are unavailable,” says Desmarais. “This understanding is pivotal in predicting how consumer demand transfers to alternative products, enabling retailers to enhance customer retention and mitigate lost sales. For brick-and-mortar operations, these insights empower retailers to dynamically adjust forecasts for alternative products in the Helene Desmarais event of stockouts, effectively preparing for the shift in consumer demand.”

The metaverse

Tech giants like Google, Facebook and Amazon have invested in the so-called metaverse–a 3-D virtual reality that crosses over and enhances physical world capabilities. One of the most interesting future-forward projects McGill’s Bensadoun School and Couche-Tard have undertaken with the store lab is “to reproduce the digital twin,” says Cohen. “We’ve taken thousands of pictures of the store to reproduce a virtual immersive environment that looks exactly like the store.” In a few years, he imagines customers could through VR goggles “have an immersive digital store experience, even picking up items, flipping them around and placing orders to have the real products delivered to your doorstep.” CSNC

Maxime Cohen

23_009160_CN_Store_News_JAN_CN Mod: November 21, 2023 11:22 AM Print: 11/27/23 page 1 v2.5

π MATS ALWAYS IN STOCK AND READY TO SHIP

ORDER BY 6 PM FOR SAME DAY SHIPPING

COMPLETE CATALOG

1-800-295-5510

uline.ca

® /TM BA Sports Nutrition LLC, used under license.

CATEGORY CHECK BY MICHELE SPONAGLE

Scoring with sports drinks

SHUTTERSTOCK/ PIXELRAIN

Demand grows, as big names jump in the market ready to compete for Canadian consumers

How times have changed… The first sports drink dates to 1927 when a U.K. chemist named William Owen developed Glucozade. It was basically a water and glucose recipe that catered not to athletes and those with active lifestyles, but to people who were ill. In an ah-huh moment in the 1980s, the company, marketing the drink rebranded as Lucozade, did a major repositioning and sold it as a drink to replenish lost energy. Then there’s Gatorade, created originally with carbohydrates and electrolytes around 1965 for the University of Florida’s football team. It was called a “sleepy little brand” until Quaker Oats Co. bought it in 1983 and marketed it with help from basketball CCentral.ca

superstar Michael Jordan. PepsiCo purchased Gatorade in 2001. The sports drink continues to dominate the category. The timing could be right for some challengers to carve out a bigger market share of their own. The demand for sports drinks, especially those that fall under the “functional” beverage umbrella, is still growing and the projections for growth look rosy. Statista pegs the annual increase between 2023 and 2027 at 7.16%. for both energy and sports drinks. Sales of fortified/functional sports beverages alone jumped by about 13% from 2017 to 2022, while reduced sugars SKUs saw a healthy 20% boost.

New to Canada

New players are hopeful that they can make score points with Canadian consumers and win big in c-stores. One such notable new entry into the Canadian market is BodyArmor Sports Nutrition backed by the might of Coca-Cola Co., which acquired 100% ownership in 2021 for $5.6 billion. BodyArmor (Strawberry Banana, Fruit Punch, Orange Mango, Strawberry Grape, Tropical Punch) and its low-cal version, BodyArmor Lite (Peach Mango, Blueberry Pomegranate, Dragonfruit Berry), is rolling out across Canada in early 2024. BodyArmor is betting on being unique to stand out in a crowded category.

Convenience Store News Canada January | February 2024

CATEGORY CHECK

STRENGTH TO STRENGTH

Sports drinks are among the Top 10 growing categories (excluding lottery and fuel) at convenience stores in Canada.

for a sports drink that will hydrate them, of course, but they want it to contain better ingredients and taste good, too. BodyArmor offers all of that.” While buyers are keen on functionality, they don’t want it to come with artificial ingredients, he notes. “BodyArmor is going to shake up the sports drink category by bringing a unique offering to the market, but also through unique marketing strategies and tactics. We are in the process of cooking something exciting up with our newly signed A-list partners and can’t wait to share it in the new year.” The brand is no stranger to A-list partners. The late basketball superstar Kobe Bryant was an early investor in the company, its third-largest shareholder and a member of its board of directors. According to a story published by Forbes, BodyArmor’s CEO, Mike Repole, made a promise to the late Bryant that the brand would become the top-selling sports drink by 2025. It’s game on for BodyArmor so expect big things ahead. Another new player to watch is Electrolit. It already has a proven track record. The brand

2022 sales:

$120,458,493 2021 sales:

$104,059,208 Up 15.8%

Source: CICC/Nielsen IQ Market Retail Measurement National C&G

January | February 2024 Convenience Store News Canada

was first launched in Mexico by Grupo PiSA, a pharmaceutical company in Latin America. It has a strong 70-year history as a leader in the sports drink category there. Electrolit entered the U.S. market in 2014, securing leading c-store retailers like 7-Eleven and Circle K. It continues to make a big splash, with sales increasing more than tenfold over the last five years. Credit goes to a science-based formula and the sales and distribution might of Keurig Dr Pepper. It’s a true testament to KDR’s belief in the potential of sports drinks. Electrolit is also making headway in Canada. Leading the charge is Enrico De La Torre, the former PepsiCo-Red Bull-Aurora Cannabis exec hired as Electrolit’s commercial director for Canada in late 2022. Being different from other sports drinks available may give it an appealing edge for consumers, who are looking for a more serious way to rehydrate. “Electrolit is a scientifically formulated, rapid rehydration beverage that replenishes the body with electrolytes,” explains De La Torre. “Our product is made with high

OVER EXTENDED

BioSteel, the high-flyin’ brand backed by a slew of high-profile athletes, came crashing down in September 2023 with the announcement that its then-owner Canopy Growth had filed for creditor protection in the U.S. and Canada, owing $12 million for sponsorship agreements, and was trying to find a buyer for the business. Fast forward to November. A deal for two buyers to take over the brand and its assets was approved. DC Holdings is taking over the intellectual property in Canada, the U.S. and around the globe. DC Holdings, which does business as Coachwood Group of Companies, is owned by Windsor, Ont.-based entrepreneur Dan Crosby, who operates several businesses, including sports nutrition company Canadian Protein. New Jersey-based Gregory Packaging Inc. picked up the BioSteel Manufacturing business. Watch CCentral.ca for the latest updates.

CCentral.ca

SHUTTERSTOCK/GAUDILAB

“BodyArmor disrupted the sports drink category by offering a premium coconut-water based product, packed with electrolytes and antioxidants,” says Tom Gargiulo, chief marketing officer, BodyArmor Sports Nutrition. “It was the first time a brand tried something different and brought consumers a better hydration option than what was currently on the market, as it contains no artificial flavours, sweeteners or dyes.” As trend watchers have noted, consumers want more bang for their buck, seeking health benefits from what they drink and eat more than ever before. “People are paying attention to ingredients,” he says. “This matters to them. We know they are looking

quality, pharmaceutical grade ingredients and is sweetened with natural glucose, Stevia and molasses. It also contains a complete and balanced blend of electrolytes and ions, including sodium, magnesium, potassium, calcium and chloride.” Getting noticed in a crowded marketplace isn’t easy, but Electrolit is building momentum. “Our biggest focus is making Electrolit more widely available and easier for Canadians to find wherever they often purchase their food and beverages, whether that is at their local convenience, grocery, or drugstore or online,” he says. “We are also connecting with consumers during times of need so that they can try our product and experience its functional benefits at sporting events, cultural events, music festivals, or while performing laborious work. We’re getting our product into the hands of consumers to sample and experience what Electrolit is all about.”

Trends driving consumption

A key driver for the interest in sports drinks is rapid hydration. “It is one of the hottest trends in beverages,” says De La Torre. “This growing sub-segment is in high demand as consumers look for more functionality and better-quality ingredients in their beverages.” He also predicts increased innovation around flavours, as well as lower and zero-calorie options. Starting May 1, Electrolit will bring its zero-sugar version to Canada with two of its most popular flavours—Berry Bliss and Lemon Breeze—already winning SKUs in the U.S.

Growing the category in-store

The bottom line for c-stores is that they should be ready to ride the wave as big brands carve out market share. 1. Effective merchandising is one of the best ways for owners to grow sales: As a high-impulse purchase, merchandising at the register will get results. 2. Keep product cold and visible at eye level. 3. Sports drinks are often bought alongside energy beverages, so presenting them together makes good sense. 4. Keep selections fresh and interesting. 5. Don’t forget to bundle sports drinks with prepared meals and healthy snacks to increase basket size. With so much happening in the sports drinks arena, watch this space for coming news. There’ll be plenty of it as major players battle for consumer dollars with celebrity backers, grand-scale promotions and innovative merchandising. CSNC CCentral.ca

Marc Gauvin, Marie-Josée Dumas and their daughters, Émy and Alexe

CRUSHING IT

Quebec entrepreneurs share their strategies for turning Dépanneur Le Garde Manger into a destination for beer and snacks BY M A R K CA R DW E L L

P H O T O G R A P H Y F R A N C I S VA C H O N

January | February 2024 Convenience Store News Canada

CCentral.ca

RETAILER SPOTLIGHT When people in Victoriaville, Quebec think of buying beer, chances are a local convenience store comes to mind. And that’s just how store owners Marc Gauvin and Marie-Josée Dumas want it. “Beer is our strength,” says Gauvin. “We’re one of the big sellers in town.” Beer was already a mainstay at the Dépanneur Le Garde Manger (The Pantry) when the couple bought the business in late 2018. But hard work, together with changes they’ve made based on their decades of experience working for McDonald’s restaurants, have helped raise suds sales at the store to a whole new level. Their experience is one that c-stores across Canada can learn from as they, too, embark on welcoming the opportunity to sell beverage alcohol.

Setting the stage

Gauvin credits a rented warehouse behind the 30-apartment block the store is connected to for providing them with the space to store large quantities of beer from big brewers. “We order by the semi-trailer,” says Gauvin, who uses a forklift to move product from the warehouse to the 2,800-sq.-ft. store, which is jam-packed with beers of all stripes. “Buying in volume means we get the best deals. And we always have product on hand.” The store also carries roughly 30 brands of craft beers, both local and imported. All craft beers are offered cold in more than two dozen fridges of all sizes, some of them supplied by companies, others owned by the store.

Gauvin personally samples every craft product before placing an order. “You have to be careful because not every craft beer is good,” he explains. “We’ve ordered some in the past that we couldn’t give away, they were so bad. I like beer so now I taste every new product. If I like it, chances are my customers will too.”

Getting the word out

Having large volumes of beer on hand allows the store to put on seasonal specials that are popular with people in Victoriaville, a regional hub of 45,000 in south-central Quebec. In November, for example, the store distributes a colourful Christmas flier as in an insert in local newspapers. The flier is filled with eye-catching specials on beers, as well as snacks, coffee and gift packages. “People here wait for it to come out,” says Gauvin. “A lot of them come in to shop with our flier in their hands.” He said the store’s summertime special is equally sought-after. “Suppliers know that, so they make deals with us to make sure their products get into our fliers.”

Think big

Gauvin says the absence of commercial beer warehouses in the region has also helped make the store a major supplier of beer for local festivals and events like weddings. “We’re like a subcontractor for the big breweries,” adds Gauvin,

SUD SALES

Excluding lottery and fuel, beer is the top growing category for convenience in terms of overall dollar value (despite the fact that sales are limited to select provinces, namely Quebec). Up 3.2%

2022 sales:

$489,046,997 2021 sales:

$474, 007,836 Source: CICC/NielsenIQ Market Retail Management National C&G

CCentral.ca

Convenience Store News Canada January | February 2024

RETAILER SPOTLIGHT who handles beer orders and deliveries at the store—duties he juggles with a full-time job outside the business. “They all have my cell phone number.”

Expand complimentary categories

Though beer is the principal driver of traffic at the store, sales of wine, cigarettes, lottery tickets and fresh-brewed coffee supplied by a local company, La Brulèrie des Cantons, are also on the rise. Gauvin and Dumas elevated the store’s coffee program, investing in a machine to make different brews. The store also offers ready-made sandwiches and meals from a local food distribution company, Les Aliments François. “We sell food items that are rapid and ready for people on the go,” says Dumas. “People can heat food in our microwave if they want. But we don’t make fresh food and we don’t want to because we don’t have the space for it, and we want to focus on our core products.”

Managing logistics

In addition to product selection, Dumas credits the store’s good location, its long opening hours and the friendly greetings customers receive when they walk through the doors for making it a popular stop for locals. “People know we’re pretty much always open and that they’ll be well served when they come here.” The store is open daily year-round from 7 a.m. until 10 p.m. Sundays to Wednesdays and until 11 p.m. Thursday to Saturday. The only exceptions are Christmas and New Year’s Day, when the store opens at 10 a.m. and closes at 9 p.m. The Gauvin-Dumas family always work and close the store together on Christmas Eve. “It’s a nice tradition we’ve created,” says Dumas, who runs daily operations at Le Garde Manger. Her responsibilities range from serving customers and doing inventory to placing orders, handling administration and managing the store’s eight employees, which include the couple’s two daughters—Émy, 18, and Alexe, 14—who work on weekends, holidays and during the busy summer months. Dumas is also always on call and goes into the store quickly when needed (even on her days off)—the family lives just a short drive away on the outskirts of Victoriaville.

Sacrifices made

“We have a big property with a dog, four cats and a pool,” says Dumas. “We used to have a travel trailer too, but we sold it because we weren’t able to use it much after we bought the store.” The couple’s Ducati motorcycles now also sit mostly idle in the garage. However, Dumas says their all-in approach and iron-clad commitment to the store is the price to pay to ensure both its efficiency and profitability. “We’ve built the business based on our experiences in the restaurant industry and the lessons we’ve learned as store owners,” says Dumas. “But like with anything, it takes hard work and dedication to make it work.”

Path to ownership

It was a life lesson both Gauvin and Dumas learned growing up in Quebec’s Lower St. Lawrence region. Born and raised in Rimouski, Gauvin moved to Matane, an hour’s drive east, to study to become an electrician. He also moonlighted there at a local McDonald’s—the same restaurant where Dumas, who grew up nearby, got her first job in the mid 1980s. 24

January | February 2024 Convenience Store News Canada

Despite an eight-year difference in age, the two hit it off. Over the next 20 years, they worked in several McDonald’s restaurants (often side by side in managerial positions) in Quebec, New Brunswick and Maine. In 2004, they settled in Victoriaville, where Gauvin was named general manager of six restaurants owned by a local McDonald’s franchisee. The franchisee, however, was reluctant to hire a married couple. In turn, Dumas ended her 18-year career at McDonald’s and got another job as an office manager in a swimming pool company across the street from Dépanneur Le Garde Manger. Both businesses are located on rue Girouard, a residential area next to Highway 116, which is a busy commercial artery in the southern end of Victoriaville and home to the region’s biggest shopping mall, La Grande Place des Bois-Francs. Eager to have a business of their own—one where they could keep working with the public and get their daughters involved—Dumas and Gauvin approached the owners of Le Garde Manger and offered to buy the business. “We really liked the fact that it was an established independent store with a good sales volume,” explains Dumas. “The deal happened very fast.”

Supporting employees

The first thing new owners did was to build a staff room in the back where employees can eat or get away from the hustle and bustle out front. “That was critically important,” says Dumas. “Employees need a clean break so they can refresh and reset during work shifts.” She and her husband also developed a McDonald’s-inspired hiring and training program—they recently learned it’s being cited by a local college business professor as an example to follow. “It really starts at the initial interview,” says Dumas. “We look for people who have a pleasant demeanor and a nice appearance. It’s important because every employee has an impact on the entire team.” Perspective employees then receive 20-plus hours of hands-on, in-store training with an experienced employee. “They learn to handle the cash registers and how to deal with customers,” says Dumas. “That includes giving every person who walks in the store a friendly greeting.”

Full circle

Employees are also trained to offer to help customers look for products, while people looking for craft beers are offered recycled energy drink boxes to carry products in. “We used to throw those boxes out,” said Gauvin. “But that was wasteful and time consuming. Now they’ve got a second life. And people really like using them.” Store employees also always offer to carry beer to customers’ cars. “We insist on it,” said Dumas. “It’s part of our core philosophy of being friendly and helpful. People appreciate it and it gives them another reason to think of us when they go shopping for beer.” In addition to increased sales, the couple’s dynamic approach to business has earned them accolades within Quebec’s vibrant c-store industry. In September, Gauvin and Dumas received an entrepreneurial award from the Association des Marchands Dépanneurs et Épiciers du Québec. Gauvin says one challenge that comes from the store’s popularity—especially on Friday nights and weekends—is limited parking. “We only have 14 spots. They can fill up fast.” CSNC CCentral.ca

BACKTALK

PRIVATE THOUGHTS

Leslie Gordon, director of proprietary brands, Circle K, talks about the evolution and untapped potential of store brands BY CHRIS DANIELS

When Leslie Gordon joined Circle K in 2021—after more than 10 years at Suncor as category portfolio manager of convenience retail—the 2020 Star Woman in Convenience winner says, “the private label business was underdeveloped.” While the portfolio of proprietary brands at Circle K now numbers over 100, “there’s still a lot of room for us to grow,” she says. “Fortunately, we have a corporate culture that supports growth, and we’re taking the opportunity to build our proprietary brand offering.”

Do you market the private label any differently than national brands? Our private label brands are

right next to the national brands to allow customers to make their choice. And so, many of the programs we do with national vendors we also do with our proprietary brands, whether it’s a window sign or gamification integration. It shows to consumers that our private label is a legitimate brand. Challenges around supply chain are well-documented. What advantages does having control of that with a proprietary label give Circle K? The big

Some of Circle K’s brands are seeing bigger sales than national brands. What do you attribute the success? The economy is, for sure, playing a part. But

our private brands—and most private brands now—are very similar in quality or better than national brands. And so, when consumers try our products, they deliver the value as well as quality they’re looking for, and buy them again and again. How do you ensure quality control? I spend a lot

of time researching vendors. Some of our vendors are national brands and they also work for us on our private brands and are great partners. We also do a lot of benchmarking to make sure we get what we’re looking for in quality. How do you decide which categories to get into with a proprietary product? We look at customer needs

and match that up with sales data. What are the categories that are growing? What categories could provide CCentral.ca

consumers with more options? Thirst is a big one, of course, so beverages. Confectionery is also a category where customers are looking for options, although we have healthy store brand snacks too, like nuts. We like to look at and compare ourselves to the grocery sector because they are so much further ahead in what their private label offers customers.

advantage is that vendors make our product to order. It’s not like with national brands where products are sitting in a warehouse with a number of different customers who can pull from the inventory. We have to plan months in advance, including around promotions and the increased volumes anticipated with that. Private label is also at an advantage when we’re in stock and other brands are not. Does having a private label create friction with national brands? Sometimes we perform a lot better

than they were expecting us, too. There was a time when they would have dismissed private brands. But now we’re competing and sometimes winning. It’s healthy competition. How does having a strong store brand elevate the Circle K brand in other ways? It definitely differenti-

ates our presence on social media. Five years ago, you didn’t really see c-stores on social media in a big way, but now they have much bigger presences and private label brands are a big part of that. We can also help accelerate our sustainability goals. Our corporate goal is to have all our private brands be made out of 100% recyclable packaging content by 2030. It’s something we’ve been talking to our vendors about from the beginning, and I am pleased to say we are getting to that goal post together. CSNC

Convenience Store News Canada January | February 2024

OCTANE

MARCH 5 & 6, 2024 TORONTO THE INTERNATIONAL CENTRE

CANADA’S CAR WASH & PETROLEUM MAGAZINE

BROUGHT TO YOU BY

CLE AN S L ATE

CLEARWATER CAR WASH REIMAGINES THE CAR WASH, FROM DESIGN TO DRYING

PLUS!

JANUARY/FEBRUARY 2024 CCentral.ca @CSNC_Octane PM42940023 $12.00

2024 OUTLOOK: CAR WASH EXPERTS DISCUSS TRENDS AND OPPORTUNITIES

CONTENTS

20 Eglinton Ave. West, Suite 1800, Toronto, ON M4R 1K8 (416) 256-9908 | (877) 687-7321 | Fax (888) 889-9522 www.CCentral.ca BRAND MANAGEMENT

SENIOR VICE PRESIDENT, GROCERY AND CONVENIENCE, CANADA Sandra Parente (416) 271-4706 sparente@ensembleiq.com EDITORIAL

EDITOR & ASSOCIATE PUBLISHER Michelle Warren mwarren@ensembleiq.com ASSOCIATE EDITOR Tom Venetis tvenetis@ensembleiq.com ADVERTISING SALES AND BUSINESS

JANUARY | FEBRUARY 2024

VOLUME 29 | NUMBER 1

5 The Road Ahead To charge or not to charge?

Tips for evaluating an EV charging station investment

7 Show preview

The main event: Get ready for The Convenience U CARWACS Show

8 Operator profile

BROUGHT TO YOU BY

Clean slate: Travis Braithwaite from ClearWater Car Wash reimagines the car wash experience, from design to drying

13 Feature

2024 outlook: Industry leaders on the issues, trends and opportunities shaping car wash

CREATIVE DIRECTOR Nancy Peterman npeterman@ensembleiq.com

2024 OUTLOOK

ART DIRECTOR Jackie Shipley jshipley@ensembleiq.com SENIOR PRODUCTION DIRECTOR Michael Kimpton mkimpton@ensembleiq.com MARKETING MANAGER Jakob Wodnicki jwodnicki@ensembleiq.com

CORPORATE OFFICERS

CHIEF EXECUTIVE OFFICER Jennifer Litterick CHIEF FINANCIAL OFFICER Jane Volland CHIEF OPERATING OFFICER Derek Estey CHIEF PEOPLE OFFICER Ann Jadown CHIEF STRATEGY OFFICER Joe Territo SUBSCRIPTION SERVICES

Subscription Questions contactus@ccentral.ca Subscriptions: Print $78.00 per year, 2 year $144.00, Digital $45.00 per year, 2 year $84.00, Outside Canada $120.00 per year, Single copy $14.40, Groups $55.20, Outside Canada Single copy $19.20. Email: csnc@ccentral.ca Phone: 1-877-687-7321, between 9 a.m. to 5 p.m. EST weekdays Fax: 1-888-520-3608 | Online: www.ccentral.ca/subscribe Convenience Store News Canada | Octane is published 6 times a year by Ensembleiq. Convenience Store News Canada | Octane is circulated to managers, buyers and professionals working in Canada’s convenience, gas and wash channel. Please direct inquiries to the editorial offices. Contributions of articles, photographs and industry information are welcome, but cannot be acknowledged or returned. ©2024 All rights reserved. No part of this publication may be reproduced in any form, including photocopying and electronic retrieval/retransmission, without the permission of the publisher. Printed in Canada by Transcontinental Printing | PM42940023 CHANNEL ALLIANCES:

13 STAY CURRENT

Don’t miss our e-newsletter!

Car wash, petroleum, and convenience news & insights, delivered weekly. Sign up today at www.CCentral.ca/signup

Simply hover your phone’s camera over this code:

standard

no gradients

watermark

BE A PART OF OUR COMMUNITY!

stacked logo (for sharing only)

CCENTRAL.CA E-NEWSLETTER

CSNCOCTANE

@CSNC_OCTANE

CONVENIENCESTORENEWSCANADA

OCTANE January | February 2024

Equipment built to last. Tommy Car Wash Systems® offers equipment, systems, detergents, and technology that can take your car wash to the next level.

...and more!

Performance-driven car wash solutions. Our stainless-steel, made-in-the-USA equipment is high efficiency, low maintenance, and can wash over 40 cars per hour. Dazzle your customers with the best-quality wash experience.

Scan to view our offerings.

Contact our car wash experts today! sales@tommycarwash.com ∙ (616) 494-0411

THE ROAD AHEAD BY MARK HACKING

To charge or not to charge?

SHUTTERSTOCK/ FAHRONI

Evaluating an EV charging station investment

Installing an electric vehicle (EV) charging station in a retail or commercial location is no small matter. There’s an entire range of considerations at play and fair amount of complexity to the charging landscape. This article provides a brief overview of the key aspects to consider and some secondary sources to consult for further guidance. The first step is to conduct a site analysis to determine the feasibility of installing one or more chargers. One of the leading Canadian EV charging networks, FLO, has extremely useful guidance on its website for prospective customers. Included in this guidance is something called the “ideal ratio” of chargers to potential EV drivers likely to visit your location. The ideal ratio is calculated according to the following formula: attachment rate multiplied by the number of available parking spaces for EVs multiplied by the penetration of EVs in your area. Attachment rate is equal to the number of charging ports per 1000 EVs; EV penetration is calculated according to the number of EVs registered divided by the total number of vehicles registered in the same year. According to the Business Development Bank of Canada (BDC), the three most common options for installing an EV charging station are as follows. First: CCentral.ca

Buy the charger outright and operate it independently, selecting either a non-networked model or one that uses third-party software. Second: Create your own network of chargers. Third: Ask an existing network to install their chargers at your location. In this case, the network owns and operates the equipment and pays a leasing fee back to you for using your location. Once you’ve determined the ideal ratio, then think about the physical space where your charging station will be located. At the top of the list is to identify existing sources of power and assess whether additional conduits are required. Positioning EV chargers close to existing buildings can short circuit the need for additional installation costs and satisfy another requirement: ensuring customers are recharging vehicles in safe and well-lit areas of the property. To gain some sense of what goes into installing an EV charging station, your budget should include a fair number of line items. Among these: permits and inspection costs, the EV charging equipment itself, pavement demolition and repair, signage and paint, equipment rentals and labour costs. Without question, there will be more EVs on the road in five years than there are today, so time should also be spent on mapping out potential expansion plans. If scalabil-

ity is important to your location, another key decision is on whether to network your charging station(s). With a networked station, energy consumption and charger performance can be analyzed remotely, and chargers can be upgraded over-the-air. With the benefit of data on station performance, operators can take advantage of smart power sharing among chargers and determine if more stations are required down the line. A networked station can also allow for payment processing, another key determination in estimating the return on investment. Even when it comes to a payment plan for recharging, there are different ways to go. Some owners may choose to set ultra-competitive rates in order to bring more customers into the location, a reasonable plan if you’re looking to put your stations on the map. Some owners may also look at tiered pricing for less busy times or even free charging at the start, while others could adopt a “surge pricing” model that charges more during high-traffic times of the day. After all of these considerations, it’s then time to consult municipal, provincial and national guidelines. Governments in Canada have a vested interest in promoting electrification and in seeing more EV chargers installed across the country. As such, the governments have developed standards for new charging stations that represent required reading. In addition, there are various incentive programs for businesses that run from time to time. As of this writing, the province of Ontario has the ChargeON program, which provides subsidies for businesses installing chargers in communities with fewer than 170,000 people. Natural Resources Canada also offers subsidies for public and private sector businesses that are planning to install charging stations. Both of these programs are competitive in nature; they require applications by a set deadline, so it’s best to understand the criteria in advance. As we all know, the EV landscape is changing at a furious pace. The ROI of an EV charging station now will not be the same five years from now; it may not be the same by the time you read this story. That’s why it’s important to crunch the numbers and figure out when the time is right for your business to jump on the bandwagon. OCTANE Mark Hacking is an award-winning editor/writer with an affinity for all things automotive. He contributes to leading publications in Canada, Australia, Switzerland and the U.S. OCTANE January | February 2024

Where Legacy Meets Innovation

Wayne Ovation® fuel dispenser with Anthem UX® platform

As a global leader representing eight key brands in fueling and convenience retail, we haven't stopped innovating for 132 years. Dover Fueling Solutions combines unparalleled industry expertise with new and evolving technologies to generate end-to-end solutions to outpace your competition. Contact your rep today or see us at CARWACS! Booth #217

Petro Vend® 300 E Fuel Island Terminal

© 2023 Dover Fueling Solutions. All rights reserved. DOVER, the DOVER D Design, DOVER FUELING SOLUTIONS, and other trademarks referenced herein are trademarks of Delaware Capital Formation, Inc./Dover Corporation, Dover Fueling Solutions UK Ltd. and their affiliated entities, registered or used in the United States and/or various other countries.

DOVER FUELING SOLUTIONS

Serving the Canadian Retail Petroleum / Convenience Industry for over 35 Years

We provide over 100,000 service visits annually to our customers

Fast & Easy – Enhance customer satisfaction

Safety First Culture

SERVICE | TECHNOLOGY INTEGRITY | ACCOUNTABILITY

800-263-1429 www.air-serv.ca

S IN

TIE

T LA

ServiceWorks Company

INF

AIR-serv is a

JUST TAP N GO!

Visit the site

TIR

ES FOR

The main event

Get ready for The 2024 Convenience U CARWACS Show

THE MAIN EVENT BROUGHT TO YOU BY

The Convenience U CARWACS Show—Canada’s largest and bestattended convenience, gas and car wash event—is the place to be March 5-6, 2024, to DISCOVER, CONNECT and GROW your business. “The momentum and the excitement are off the charts—we can’t wait to welcome everyone to the 2024 show,” says Sandra Parente, SVP, Grocery & Convenience, EnsembleIQ. “It’s all about modernizing and elevating the experience for all stakeholders. With that in mind, we are thrilled to introduce several new and innovative features to drive value and ensure delegates and exhibitors make the most of their experience at the 2024 Convenience U CARWACS Show.”

NEW IN 2024

Power Hour: Rapid-fire 1:1 conversations that will connect

you with the convenience, gas and car wash industry peers and leaders you want to meet!

Trade Show Stage: Enjoy live demonstrations and learn from Industry Leaders all from the tradeshow floor!

Beer & Wine Garden: Meet with beverage alcohol suppliers

and sample products, as you get your business ready for the future.

Future Leaders in Convenience + Car Wash Awards: Be there when the industry comes together to celebrate the inaugural FLICC winners during the C-store IQ Conference the morning of Wednesday March 6. CCentral.ca

PLUS

C-store IQ Conference: This conference is back

for the second year to provide valuable content and expert insight designed to help operators position their businesses for success. The content will include an exclusive preview of the 2024 C-store IQ National Shopper Study, as well as engaging expert advice, research and panels. *Note, space is limited, so register today.

Car Wash Education: The Canadian Car Wash

Association is on site with two mornings of exciting education designed to help car wash operators maximize results.

Trade Show: Find everything you need to run your

business, from the latest snacks to technology and more. This is a unique opportunity to meet with key vendors, suppliers and experts all under one roof from 12 p.m. to 5 p.m. both days. Join thousands of industry leaders, decision makers, key manufacturers, vendors, and suppliers from Canada and across North America. This is your chance to meet in-person and hear firsthand about the latest products, services, technologies and insights that will help you prepare your business for the challenges and opportunities ahead. Visit ConvenienceU.ca to register. Plus, get the latest details about exhibitors and Conference speakers, as well as information about the Canadian Carwash Association education and networking opportunities. OCTANE OCTANE January | February 2024

Travis Braithwaite from ClearWater Car Wash reimagines the car wash experience, from design to drying BY TOM VENETIS PHOTOGRAPHY BY AARON PEDERSEN

When one thinks of a car wash, the first thing that comes to mind for most is a greylooking, nondescript box where cars enter one end and come out clean the other. When Travis Braithwaite began thinking of starting a car wash, however, he wanted something totally unique. It started when his cousin and uncle announced in 2017 they were interested in opening a car wash (they did so in 2019). Looking to take his sales career in a new direction, Braithwaite decided to join them to discover for himself what was needed to operate a car wash. After attending several car wash shows, he quickly realized that to start and maintain a car wash operation, one first needed a clear understanding of what makes a car wash successful. Braithwaite, who now had his father along for the venture, turned to the experts, first meeting with John Sorenson, who was with National Carwash Solutions at the time (he’s now director of capital for Wow Carwash). Sorenson took Braithwaite and his cousin, to see some of the top car wash operations across the country—they toured close to 100 high-performing car washes in Canada, and even some in Europe. “Because of his background, he would go to the owners and say, ‘Hey, I’ve got two people here that are new to the business. They just want to hear your story about how you got into the car wash business, what were the lessons you learned, what would you do over again?’ We learned how they treated their staff, their customers, what their marketing programs were and how they developed and rolled out their retail presence.” 8

January | February 2024 OCTANE

CCentral.ca

C LEAN SLATE CCentral.ca

OCTANE January | February 2024

MAXIMIZE. ENHANCE. PROFIT.

TUNNELS MARK VII EQUIPMENT

FOR CONVENIENCE STORES

Along with these meetings, he also attended training seminars and sessions put on by Sonny’s CarWash College and National Carwash Solutions. He says these programs were highly beneficial as they taught him not just about the equipment used in a car wash, but also “whether a piece of equipment performs well, what parts you need to have on the shelf if they break down, if they break down often.” These meetings allowed him to realize that to succeed, he would need to create something that was not like most car washes out there. And he set out to do exactly that. Ground was broken for ClearWater Car Wash in August 2021 and opened its doors in September of 2022.

Not a typical design

THE ULTIMATE

PROFIT CENTER SOFTLINE¹® TUNNEL SYSTEM WWW.MARKVII.NET | CARWACS SHOW BOOTH #318

Get It Now Conveyors, Tire Brushes, Wraps, Tire Shiners, Blowers & More SCAN TO

LEARN

SonnysDIrect.com 800-327-8723

Member of SONNY’S Select Service Organization

Call Bill Barber at 1-855-695-3141 or email at bill@washlinks.ca

Too often, most car washes operating today are dull affairs— functional, efficient but lacking in any character—says Braithwaite, nothing more than what he describes as an industrial shoebox. “You see it a lot in Canada, where the car wash is almost, it would seem, an afterthought.” He decided the design for ClearWater Car Wash, located in St. Albert, a suburb of Edmonton, needed to be something that would make it stand out in the community, catch one’s eye and establish a unique and memorable retail presence. Instead of hiring a traditional car wash designer, Braithwaite went in a direction that when first mentioned sounds utterly surprising: He approached Jim Gartner, one of the architects behind The Cheesecake Factory restaurant. Braithwaite’s thinking is not as far-fetched as some may think it is. Most restaurant chains tend to follow a rigid standardized design for each location, making them recognizable to everyone regardless of where they may be located. The Cheesecake Factory is different and each location is unique, standing out in the crowd of all other restaurants around it. The designs are never stagnant but made to catch the eye and draw customers inside. “It is not as if we wanted to steal [The Cheesecake Factory] designs…. We took instead design cues of what makes a building aesthetically pleasing, what makes it stand out,” he says. Working primarily with the team at Hodgson Schilf Evans Architects Inc. in Edmonton, as well as California-based James Gartner & Associates Architects, Inc. on the building design, and Dawson Wallace Construction in Edmonton, Braithwaite achieved his goal. ClearWater Car Wash resembles a high-end business that beacons one to stop. The show-stopping design starts with its iconic tower, where the name of the operation glows brightly and sign can change colour, followed by the large windows that allow a clear view into the tunnel and can be lit in bright colours as well. “We use G&G Lighting’s LED lighting technologies that allows us to change the colours in the tower and tunnel,” says Braithwaite. “When the Edmonton Oilers Play, I can change the lights in the tunnel to be their colours, white, blue and gold. During Christmas, I change the colours to be more festive, such as red, green, and white. Even the tower was carefully thought out. It is three storeys tall with the name of the car wash running down its height and it stands out as a beacon.” The overall design is open, allowing for plenty of room for vehicles to move about and for easy access to the 13 Vacutech vacuum stalls with their dual hoses and 60 hp motors. Customer service and pay is a smooth process, as the DRB Point of Sale system allows for multiple payment options, including

credit cards, tap or the company’s easily reloadable monthly club membership. There are also programs for fleet accounts and family accounts.

Delivering a quality wash, even in extreme weather

Before he broke ground, Braithwaite says he took quite a bit of time to learn not just what makes a good car wash, but also what users find disappointing. When he looked at reviews of existing car washes, he found similar complaints: For example, that the cars come out at the end are rather poorly washed; and in the winter months, many come out still wet, which results in frozen doors or windows. The way to overcome that was to design a car wash that could deliver optimal performance in the kind of cold weather that Alberta is known for—to do that one needs the right equipment. During his time visiting car wash operations and suppliers of services and technologies with Sorenson, he learned a lot about investing in the right equipment. This helped him decide upon AccuPump equipment for soap dispensing, SoBrite for the reclamation system, DRB Tunnel Solutions for POS and, for chemicals, Blair Ceramics and National Car Wash Solutions (CleanTouch). In relation to finding equipment to withstand the cold, Braithwaite points to the blowers he uses to dry cars. A standard car wash might use two 10-horsepower drying motors,

ClearWater Car Wash resembles a high-end business that beacons one to stop. The show-stopping design starts with its iconic tower, where the name of the operation glows brightly and sign can change colour

MANUFACTURED IN WESTERN CANADA BY PUMPS & PRESSURE INC.

• Commercial Vehicle Wash Equipment • Cleaning Equipment • Automatic Car Washes • Waste Water Recycle • CAT Pumps & pumps of all kinds • Pressure Washers • Air Compressors • Cleaning Chemicals • Car Wash Accessories

1•888•430•9359 www pumpsandpressure com •

•

but in many cases, they are not enough to fully dry a car, and certainly not during winter. “We have 13 drying motors [at 15 hp each = 185 hp], and we went a step beyond and made sure that they have high-efficiency motors, so they also don’t burn up as much power when in use,” he explains. “We can also dial them up or down depending on the season, to further save on electrical usage. For example, in the summer when it is hot outside, you don’t need to have as much drying power.” In addition, power gates help to improve their efficiency and everything is computer controlled, so they run only when the car is present. Braithwaite explains that because of the car wash’s tunnel length, some 150 feet, partition walls are placed at the entrance and exit of the operations. Not only do those walls clearly mark the prewash preparation area and drying area, but also, they act as barriers to cold. “When it is winter and it is -30 or -40 Celsius outside, and you open your doors to let a car in or out, that cold air stays in those delineated areas,” he adds. “The cold does not migrate through the tunnel.” As well, the tunnel floors are heated and there are infrared radiant heaters inside to prevent any freezing of the equipment. The water and soaps are heated as well, and the asphalt is heated so that vehicles do not hit ice when exiting.

Putting the customer first

“We focus on one thing, and we do it very well,” says Braithwaite. “We sell car washes and nothing else. Our value

Good looks.

Great performance. Take your carwash to the next level with Vacuum and Detailing Systems from Eurovac – a trusted leader for over 30 years. Our high quality, custom engineered solutions are designed to deliver superior suction and filtration at sensible pricing.

“We focus on one thing, and we do it very well. We sell car washes and nothing else. Our value proposition is about a clean car experience that makes you feel good"

proposition is about a clean car experience that makes you feel good. Consequently, we focus on every aspect that amps up the good feeling. For example, our staff are directed to smile at every customer first and foremost, and for holidays we do something extra, like chocolates on Valentine’s Day or flowers for Mother’s Day. And training our staff is all about how to talk to the customers, to make the most of every opportunity and delivering a consistent service. This is achieved through video training, quizzes, mentorship, peer training, internal performance competitions judged by their peers.” He adds that to help provide a good customer experience, it is also important that his staff is happy and enjoy their work. “We provide a work environment where staff are appreciated, provide opportunities to learn and support their hobbies and career ambitions through company projects, and of course, having fun with the daily routines to make work enjoyable.” OCTANE

SAVE THE DATE

Canada’s LARGEST convenience, gas and car wash industry event

BROUGHT TO YOU BY

MARCH 5 & 6, 2024 TORONTO THE INTERNATIONAL CENTRE

DISCOVER

CONNECT

GROW

ConvenienceU.ca

Ready to experience a better system? Contact Eurovac 1-800-265-3878 info@eurovac.com CNUE24_HouseAds.indd 6

12/12/23 11:06 AM

TRENDS AND OPPORTUNITIES

2024 OUTLOOK Mack Ewing

Director of strategic initiatives, Transchem Group and Turtle Wax Pro In 2024, a significant trend in the car wash chemistry space is a focus on reclaim-optimized products that enhance customer experience while ensuring effective vehicle cleaning. This trend is driven by the need for sustainable practices Mark Ewing and consumer demand for an engaging car wash experience. The shift towards reclaim-compatible chemicals involves formulations that are safe for water recycling systems, avoiding substances like harsh dyes and heavy solvents. Innovatively, LED lighting is being used for visual appeal, reducing chemical loads on reclaim systems and offering an environmentally friendly alternative to traditional dyes. Simultaneously, the industry is introducing pleasant scents into car wash chemicals, enhancing customer satisfaction through a perceived sense of cleanliness and enjoyment. These scents are carefully CCentral.ca

Industry leaders on the issues, trends and opportunities shaping car wash BY TOM VENETIS

selected to be compatible with water reclamation processes. The paramount focus remains on the cleaning effectiveness of these chemicals. Advanced chemical engineering is enabling the creation of eco-friendly formulations that powerfully remove dirt, oil, and grime without harming the environment. This trend represents a balanced approach in car wash chemical development, aligning environmental responsibility with customer experience and maintaining high cleaning standards. It’s a strategic response to environmental awareness and a way for car wash businesses to stand out in the market.

Matt Verity

Principal, Car Wash & Self Storage Consulting Services In 2023, the Canadian car wash industry flourished, setting the stage for a promising year ahead. In 2024, car wash operators eagerly seek insights into upcoming trends that will shape their success. While

Matt Verity

OCTANE January | February 2024

TRENDS AND OPPORTUNITIES familiar trends like the growth of membership programs persist, two emerging post-pandemic trends stand out for sustainable growth in the coming year. 1. Automation drives profits: Technology’s evolution has revolutionized consumer-business interactions, notably accelerated by the pandemic. Car wash operators increasingly rely on technological advancements—apps, virtual wallets, remote monitoring, RFID chips, License Plate Recognition (LPR), and point-of-sale (POS) systems—to enhance convenience, streamline operations, cut labor costs, and boost profitability. 2. Embracing green initiatives spurs growth: The rising emphasis on eco-consciousness reshapes consumer preferences, driving a shift towards environmentally responsible practices. Car wash operators incorporating eco-friendly methods like water recycling systems, energy-efficient technologies and biodegradable cleaning solutions not only align with consumer values, but also position them as champions of environmental sustainability, gaining a competitive edge. Optimism abounds for the Canadian car wash industry, yet challenges loom, including supply chain disruptions, labour shortages, escalating operational costs, increased taxes and borrowing expenses. Addressing these challenges is crucial for operators to sustain their competitiveness. The year ahead holds promise, but adaptation to these trends and adeptly handling challenges is essential for car wash operators to thrive.

GET THE POWER OF THE SHELL BRAND

Constance Wrigley-Thomas

Director of operations, Canadian Car Wash Association The Canadian Carwash Association has observed an increase in interest by investors, who view car washes as a viable investment. It is no coincidence that investors, who in the past may have parked their money in Real Estate Investment Constance WrigleyThomas Trusts or commercial office real estate (which is experiencing high vacancies), are now seeing the long-term economic value and profitability of Canadian car wash operations. We anticipate that this will continue to be a trend over the next few years. There are still challenges ahead to be sure. For someone wanting to build from the ground-up, there are regulations, paperwork and bureaucracy, which slows the pace for permitting and building new car washes. This can be a deterrent for those looking to come into this industry. Once they clear these hurdles, however, the car wash industry can be an attractive business investment. CCA recognizes the increasing demand for market data. As the trade association for the car wash industry, we are working on securing Canadian statistics that will help investors make informed decisions but will also provide value to our car wash owner/operator members. We hope to gather data that will provide a more detailed look at the car wash industry, how it is growing, how much it costs to get into the car wash business and how profitable it can be. Access to this data will be exclusive to members.

Tim Walker

President, Soapy Brushy Several important trends will impact car wash operations. Technology integration: Car wash operations use more technology, including smartphone apps, for scheduling and payment, automated payment systems, and cutting-edge equipment for faster, more thorough cleaning.

Tim Walker

Environmental concerns: Many car wash businesses are using water-saving technologies and ecofriendly cleaning solutions since there is an increasing emphasis on environmentally friendly practices. Consumers are growing more ecologically sensitive, so this trend is probably here to stay.

GRANGER FUELS LTD. Trusted Experience Performance Oriented Quality Focused

Your success is our success and we are here every step of the way CONTACT US FOR MORE INFORMATION: 519-963-3001

GRANGERFUELS.COM

Customization and upselling: Car washes may offer more customized services and push extra waxes to their exterior wash to boost income. Market consolidation: As larger car wash chains buy up smaller, independent businesses, the market may experience additional consolidation. Larger companies are attempting to attain economies of scale, as observed in several industries. OCTANE

JANUARY 2024 DEDICATED TO SHARING KNOWLEDGE AND BEST PRACTICES IN THE CARWASH INDUSTRY

BOARD OF DIRECTORS PRESIDENT: Karen L. Smith - Valet Car Wash Jeff Beam - Mondo Products Travis Braithwaite - ClearWater CarWash Michael Destro - Rainbow Car Wash Karla Hewitt - Suncor Energy Inc. Michael Howe - WashLinks Mike Jacques - National Car Wash Solutions Michael Saunders - Mark VII Equipment Grady Taylor - Transchem Group Rudy van Woerkom - Belvedere Technical Services Matt Verity - Matt Verity Consulting Tim Walker - Soapy Brushy NATIONAL OFFICE Constance Wrigley-Thomas, CAE, DES Director of Operations Brynne Wrigley, DES Director of Events Heidi Loney, DES Digital Media Specialist

LOOKING FORWARD TO 2024 Thank you for your support in 2023. We are off to a great start for 2024. Educational Webinars that cover topics important to the car wash industry including car wash chemistry, operations, health and safety and lighting; Market Research through our Wash Volume Report and NEW access to IBISWorld market research data; Advocacy, free business services, discounts and courses through the Canadian Federation of Independent Business (included in all CCA memberships) Professional Development and Networking events at The Convenience U CARWACS Show, March 5 and 6, 2024 in The International Centre. CCA will be hosting Car Wash Education the morning of March 5 and a Bus Tour the morning of March 6. Socialize and connect at our Golf Tournament in June ...and more.

BECOME A CCA SPONSOR Suppliers to the carwash industry are a significant part of the CCA member base. The relationship between the carwash industry, suppliers and oil companies are closely connected and the CCA actively promotes communication and cooperation between these groups. These valuable relationships have impact and influence on the industry’s business and legislative environments.

Please Note Our Contact Info 3228 South Service Road, Suite 109 Burlington, ON L7N 3H8 (905) 331-1768

Our suppliers are encouraged to take advantage of connecting with operators. This allows them to learn what their needs are and how they can better serve them. Suppliers are given opportunities to get in front of our members through hosting webinars, presenting educational sessions and sponsoring CCA in a number of ways. Suppliers to the carwash industry join the CCA as Associate Members. For information on CCA’s Sponsorship and Associate Memberships visit www.canadiancarwash.ca/Supplier-to-the-Industry

office@canadiancarwash.ca