CSN-Octane November 2023 by ensembleiq

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Core·Mark CANADA’S LEADER IN CONVENIENCE FOODSERVICE “Core-Mark has established itself as the largest marketer of consumer goods in North America. We are committed to curating one-stop-shop foodservice solutions that empower our operators to grow their business and make their convenience store a foodservice destination.” John Carbone, SVP Canadian region Scan below to visit the website:

Turn to page 24 to find details

How Core-Mark empowers c-store success From its humble beginnings in 1888, it has grown into the largest, most comprehensive marketer of consumer goods in North America. Core-Mark has four operating companies (OpCo’s) located across Canada. Each is dedicated to supporting the logistics and management requirements of consumer goods for its vendor partners. Core-Mark is dedicated to the purchasing and distribution of general merchandise, confectionary, groceries, retail beverages, health and beauty, tobacco, dairy, bread, fresh and foodservice products. Core-Mark understands its customers are unique and their success may stem from a variety of different paths. The company offers its customers customized solutions and services to grow sales and profits, whether they are independent, single-store operators or a significant-sized chain. Today, Core-Mark continues to develop innovative foodservice programs, cutting-edge technology solutions and targeted analytics to empower c-store customers to manage their day-to-day store operations.

THE BUZZ ON ENERGY DRINKS

THE FOODSERVICE ISSUE

ELEVATE YOUR COFFEE GAME

VALUES DRIVEN MEET THE FUTURE LEADERS IN CONVENIENCE + CAR WASH WINNERS

NOVEMBER/DECEMBER 2023 CCentral.ca @CSNC_Octane $12.00

CONTENTS

NOVEMBER | DECEMBER 2023

VOLUME 6 | NUMBER 6

12 5 Editor’s Message

Advertorial: Turn your store into a food destination p. 24

Future ready

6 The Buzz

People, places, news and events

8 Foodservice Fundamentals

Looking ahead: 4 factors shaping foodservice in 2024

10 Star Women in Convenience

The stars were out! Photos and highlights from the 2023 Star Women in Convenience Awards Event

12 Future Leaders in Convenience + Car Wash

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. Leslie Gordon, Circle K Marc Goodman, 7-Eleven Canada Wendy Kadlovski, Nicholby’s Robbie Broda, Little Short Stop Laurie & Randy Ure, Ure’s Country Kitchen Gino Vecia, Hasty Market

Values driven: Meet the 2023 winners

COVER ILLUSTRATION, KITTY O’ROURKE

25 Feature

Coffee time is any time: C-stores are investing in new equipment and menu items to elevate coffee programs, a foodservice staple, and perk up sales

28 Category Check

The buzz on energy drinks: From celebrity-backed brands and BFY options to AI-created recipes, competition in this thriving category is revving up

31 C-store IQ National Shopper Study

Prepared Foods Report: Serving up satisfaction CCentral.ca

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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

Future ready

ASSOCIATE EDITOR Tom Venetis tvenetis@ensembleiq.com ADVERTISING SALES AND BUSINESS

SALES DIRECTOR Julia Sokolova (647) 407-8236 jsokolova@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

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. ©2023 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:

JAIME HOGGE

SUBSCRIPTION SERVICES

WE ARE EXCITED TO SHARE WITH YOU THE INAUGURAL Future Leaders in Convenience + Car Wash Awards winners! This new-to-Canada awards program is the result of conversations with many of you, who champion this as a dynamic and exciting industry in which to build a rewarding career. What I hear again and again is that people who work in this business feel they are making a difference and playing an important role in communities across Canada. On a macro-level, attitudes towards work have changed tremendously in recent years. Drill down and studies show young people, in particular, want to bring their authentic selves to the workplace and that not only involves believing in the purpose of their work, but also working for organizations that share their personal values. With that in mind, we asked the FLICC winners about their career accomplishments, as well how their work aligns with their values around important issues, including giving back, sustainability, and diversity, equity and inclusion. In addition to big-picture thinking that’s driving business profitability, growth and innovation, these young leaders are contributing in myriad ways, from championing organic, fair-trade products to fundraising for charities and leading inclusiveness at every level of their organizations. I am so impressed and inspired by the passion and vision of the 2023 Future Leaders in Convenience + Car Wash and I am sure you will be, too (p. 12). Winners span all areas of the channel—from independent operators and dealers to those working for regional/national/international chains, as well as distributors, vendors, associations and CPG professionals. Our goal is for this program to become an industry beacon, much like the Star Women in Convenience Awards and the Impact Awards. This is also our annual Foodservice Issue, which seems more relevant than ever, as the channel works to drive revenue, meet changing customer needs (check out the C-store IQ Prepared Foods Report: Serving up satisfaction p. 31) and innovate in new categories. Across the country, retailers are investing in quality foodservice, from elevated coffee programs (p. 25) to major rebrands—read about how North Sun Energy is taking its Café Orange fresh food concept to new heights with a refreshed menu that puts a new spin on an old favourite (OCTANE p. 8). This is the final issue of 2023 and as the year draws to a close, we thank you for trusting us to tell your stories and for sharing your insights. Wishing you the very best of the season. CSNC

MICHELLE WARREN

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Convenience Store News Canada November | December 2023

THE BUZZ

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

98%

of consumers are actively trying to reduce food waste. Source: Kerry 2023 Left on the Shelf research

“It is conservatively estimated here that in 2022 contraband cigarettes likely accounted for at least 32.1% of the total market in British Columbia (and perhaps as much as 44.9%), at least 38.7% of the market in Ontario (and perhaps as much as 68.6%) and at least 31.1% of the market in Newfoundland (and perhaps as much as 44.2%).” EY Canada & CICC report: Impact on Legal Sales and Provincial Tobacco Tax Revenues

ON LI N E E XC LU S IVE S

10 HEADLINES YOU DON’T WANT TO MISS! 1. Traffic heating up in the frozen food aisle 2. Special report: Grey market products continue to make their way onto Canadian c-stores’ shelves 3. The future of ATMs at convenience stores

4. Alimentation Couche-Tard to sell 25 Canadian stores

6. PepsiCo to eliminate plastic rings from its beverage multipacks

7. Eco-friendly packaging can help drive c-store ready-to-eat sales 8. Leaders from North Sun Energy, Alimentation Couche-Tard and Parkland Corp. propose solutions to addressing illegal tobacco sales

9. Coca Cola to use fully recycled plastic bottles across Canada A MONTHLY SPOTLIGHT ON PRODUCT LAUNCHES IN CANADA

CSNC’s New on Shelf e-newsletter is a new monthly spotlight on products launching in Canada. Sent the first Thursday of every month, each newsletter will feature four products carefully selected by our editors, as well as guaranteed sponsored product placements. For the latest innovative products, subscribe at CCentral.ca/newsletter 6

November | December 2023 Convenience Store News Canada

10. Imperial Canada to make quitting smoking easer with Zonnic 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

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ILLUSTRATION MENTALMIND/SHUTTERSTOCK.COM; CIGARETTES, MYKHAILO BAIDALA/SHUTTERSTOCK.COM

5. D over Fueling Solutions’ ‘The future of Fuelling Report

MOVING ON UP

Nick Angelo joins Canco Petroleum as SVP of marketing & merchandising. An industry veteran who spent more than two decades with 7-Eleven Canada, Angelo will help grow the Canco brand across Canada. Helen Fiore is promoted to market director at PepsiCo Beverages. The 2023 Star Women in Convenience winner joined the company in 2011 and has earned several progressively senior roles. Francis Lapointe joins Parkland Corporation as vice-president of retail for Canada. He previously held the position of VP, operations Texas at Circle K with Alimentation Couche-Tard. Katie Logan joins Congo Brands as category and shopper insights analyst, working on the Prime beverage brand. The Star Women in Convenience winner was with Biosteel. Pierre Overvelde is senior manager sales capability at Coca-Cola Canada Bottling Ltd. He has been there for a decade, most recently as national account executive. Ross Robertson moves into a new role as chairman & CEO after nearly 18 years with ITWAL. Up until July, he was the distribution company’s president & CEO. Before that, he spent more than 34 years with Hershey Canada.

Now Expanding in North & South America

Tom Szostok is now SVP, sales for Lactalis Canada where he will lead the company’s commercial sales, overseeing both the customer accounts as well as customer strategy and development teams.

Shannon Wing is promoted to general manager, retail at Suncor. The 2022 Star Women in Convenience winner has been with the company for over 21 years, in a number of increasingly senior roles. Most recently, Wing was senior director and head, strategy and business development.

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FOODSERVICE FUNDAMENTALS BY JEFF DOVER

Looking ahead

Expect these 4 factors to influence your foodservice business in 2024 2023 has been a challenging year for foodservice operators, including those operating foodservices in convenience stores. Food inflation has continued to be significant since February 2022. Convenience stores have a labour advantage over commercial foodservice (i.e., minimum incremental labour to provide foodservice); however, while recruiting and retaining labour is easier than it was a year ago, it remains a challenge and the cost of doing so has grown. With the cost of food and labour being the two greatest costs in providing foodservice, menu prices have increased significantly. Coming out of the pandemic, foodservice operations benefited from revenge spending: People who saved significantly during the pandemic were spending on recreation and entertainment activities, including restaurant meals, at an unprecedented pace. With the post-pandemic euphoria subsiding and consumers growing concerned about the cost of living and the economy, foodservice spending is slowing: 2024 will be yet another challenging year for the foodservice industry.

1. Customers seeking value

With rising prices and concerns over the economy, consumers will seek value. Foodservice operations able to provide value will succeed. This trend is one that convenience store foodservice operators can take advantage of given their built-in cost advantage. Look at providing (and promoting) quality food at prices lower than area commercial foodservice competitors. Historically, restaurant operations price their menu items to achieve a 30% to 35% cost of sales (i.e., a 60% to 65% markup). With the significant increase in the cost of food, menu prices are getting to the point where consumers are rejecting them. Foodservice operations that change the way they do their pricing will be more successful. If the cost to make a menu item increases $1, restaurants would increase the price by $2.86 to $3.00 in order to maintain the 30% to 35% cost of sales. Restaurants that raise 8

prices in this case by, or close to, $1 will maintain the contribution margin of the product without adversely impacting the value perception. You don’t take percentages to the bank.

2. Sustainability and ethics

Millennials and generation Z are the greatest purchasers of food away from home. For many consumers, especially those from younger generations, concern for the planet is significant. When making purchases, they favour businesses that share their values when it comes to sustainability and ethical business practices. Successful restaurants are embracing these trends and making sure they are communicating their business practices to their customers. Convenience store foodservice, in almost all cases, is consumed off-premises. Packaging of menu items should be limited and recyclable or compostable. In some jurisdictions, operators are working together to implement reusable takeout container programs. Disposable takeout containers, at some point in the near future, will be unacceptable to consumers. Ethical sourcing is important to consumers. They want to know the origins of the food they are eating. Make sure you are communicating where the food you serve is coming from, especially if you have a story to tell that will be embraced by consumers.

3. Technology

The use of technology will continue to be important to foodservice providers. Technology is being used to increase sales. Mobile ordering applications and ordering kiosks generate greater average checks than traditional ordering methods. Technology never forgets to upsell, suggesting complementary items and allowing customers to customize their order on their own without feeling sales pressure. Some customers are more comfortable upgrading orders to larger sizes when they are request-

November | December 2023 Convenience Store News Canada

ing it from a machine instead of a human. Many restaurateurs are using technology to address labour challenges. Replacing the cashier position with mobile apps and order kiosks is one way. In addition, robots are used for repetitive food preparation tasks and fully autonomous restaurants are being developed. Using technology to overcome labour shortages, however, makes the remaining human points of contact more important.

4. Diverse diets

More consumers are following special diets. This may be for health reasons (e.g., those with celiac disease must eat gluten free), cultural or religious reasons, or simply personal choice. While some consumers will “treat themselves” when dining out and abandon diets based on personal choice, others do not have that option. It will be increasingly important to have menu items that meet special dietary needs. Some foodservice providers are ensuring all meats are halal. Most have plant-based options. Restaurants must have menu options to avoid the veto vote of a person in the group that has dietary restrictions. Further, it is important that customers are able to easily identify what menu items are suitable for their dietary restrictions—they will avoid purchasing if they are unsure. Canada is becoming increasingly ethnically diverse. Tastes and dietary requirements vary greatly. Foodservice operations must embrace the change. Providing authentic, ethnic dishes appeals to those who long for a taste of their country of origin, as well as others who are embracing new flavour profiles. CSNC Jefff Dover is president of fsSTRATEGY, a consulting firm specializing in strategic advisory services for the hospitality industry, with an emphasis on food and beverage. He is based in Toronto and can be reached at 416-229-2290 ext. 2 or jdover@fsstrategy.com. CCentral.ca

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The stars were out! 2023 Star Women in Convenience Awards Event

The room was electric with good cheer and excitement, as leaders from across the country gathered to honour a record 48 Star Women in Convenience winners on September 19th. “Star Women in Convenience is a wonderful way for all of us to celebrate talent and achievement,” Sandra Parente, SVP, group publisher, grocery and convenience, Ensemble IQ, said in her welcome address. The morning kicked off with stirring remarks from Marc Goodman, vice-president and general manager with 7-Eleven Canada, who introduced keynote speaker, Unstoppable Tracy, a dynamic motivational speaker, author and decorated Canadian athlete. Another highlight was the SWIC Winners Retail Panel, which included Naila Ansari from 7-Eleven Canada, Nicole Dubé from Parkland, Jennifer Lai from Petro-Canada | Suncor and Joany Nadeau from Alimentation Couche-Tard | Circle K. The audience also heard personal and inspired stories from a number of industry leaders and SWIC supporters, including Melani Melnyk of Mondelēz Canada, Caroline Evans of JTI-Macdonald Corp. and Ron Clark from PepsiCo Beverages. Suzanne Poirier from Alimentation Couche-Tard | Circle K was on hand to help hand out the awards. Congratulations to all the winners!

November | December 2023 Convenience Store News Canada

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Thank Thank you you to to our our Thank you to our supporting leaders Thank you to our supporting leaders Thank you to our supporting leaders supporting leaders leaders supporting P L AT I N U M P L AT I N U M PL L AT AT II N NU UM M P P L AT I N U M

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To those who contribute to the success of this important award for women! GOLD GOLD GO OL LD D G GOLD

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VALUES DRIVEN MEET THE 2023 FUTURE LEADERS IN CONVENIENCE + CAR WASH WINNERS AT CONVENIENCE STORES NEWS CANADA + OCTANE, a key focus of our

business is ensuring the viability and strength of the channel—part of this vision is championing convenience, gas and car wash as a dynamic and exciting industry in which to build a rewarding career. With that in mind, the inaugural Future Leaders in Convenience + Car Wash Awards are designed to highlight and honour the talent and achievements of exceptional leaders under age 40. The 22 people you will meet on these pages come from diverse backgrounds and excel in a wide variety of roles across this multi-faceted business, but many are driven by common goals. These leaders stand out by going above and beyond to innovate, problem solve, exceed customers’ expectations, support others and build careers that align with their personal values on important issues, such as sustainability and inclusivity. The 2023 FLICC winners lead by example, and these are their stores. BY WENDY HELFENBAUM | ILLUSTRATION KITTY O’ROURKE

November | December 2023 Convenience Store News Canada

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FLICC

FARHAN ALARAKHIA

RACHA CHOUKAIR

ERIC CLARK

Fuel director Alimentation Couche-Tard | Circle K

President & owner Esso | Mobil

GM, Canada & international Guayaki Yerba Mate

Responsible for fuel, car wash and e-mobility portfolios across more than 370 sites, Farhan Alarakhia creates and executes initiatives to drive fuel and car wash share and profitability growth. “I enjoy how dynamic the industry is and how it’s constantly evolving with new and innovative offers for customers,” says Alarakhia. “I’m proud of building and developing a great team that has elevated our performance over the past two years in a challenging business environment, and of the contributions our industry makes to the local communities and the economy.” With more than 11 years in the industry, Alarakhia demonstrates exceptional leadership, says Steve Pitts, vice-president of operations, central Canada for Circle K. “Farhan embraces innovation as our business continues its focus on mobility across our global network and has grown in understanding operational experience and, more importantly, executing it,” says Pitts. “He embodies our next generation of success, and his leadership shines through his engagement and employee development.” Some of Alarakhia’s accomplishments include supporting the e-mobility journey with the first installation of the Circle K Branded Charger in Ontario, working with Tesla on the first installation of a Tesla charger on a Circle K forecourt within Canada and leading the first Fuel Day in Ontario. In addition, he is credited with helping improve fuel gross profit by double digits in FY2023; building forecourt culture amongst the operations team to ensure flawless execution of forecourt standards; working on a project to upgrade dispensers, which allowed for contactless payment at site level; and growing the car wash club subscription program by 100% over the last year.

In 2010, 24-year-old Racha Choukair had ambitious dreams. She started her career by managing five gas stations. Today, she and her husband own five stations under different brands and are raising a family while growing their business. Choukair handles business development, the profit and sales business plan, and motivates her team by being a role model. She says her biggest challenge was also her most impressive achievement. “I came to Canada not speaking a word of English, and within 10 years, I developed a high-powered, results-oriented team dedicated to exceeding customer expectations, while progressing to five convenience gas channel service stations,” she says. “Creating and executing detailed successful business plans in a male-dominated industry was difficult, but rather than complain and retreat, I stayed focused and worked 60 hours a week to exceed business plans and gain industry respect.” Choukair is also proud of the positive customer relationships she’s developed over the years. “We operate in a very competitive environment and customers have many options. I value listening to what they like and dislike, and then showing them we care,” she explains. Choukair’s team participates in various community involvement programs and believes diversity, equity and inclusion (DEI) training is fundamental in the industry. “From both the corporate head office perspective and in my local community, this is a key component in all my business plans,” she says. “My staff gets intensive, regular training to ensure we all understand that DEI principles will make us all successful.”

Eric Clark’s young life revolved around hockey. But a car accident at age 18 left him in a wheelchair for over a year. Doctors said he would never walk again, and suggested amputating his left leg below the knee, but Clark was determined to prove them wrong. After intense physiotherapy and weight training, Clark not only learned to walk again, but laced up skates to represent Canada at the FIRS Inline Hockey World Championships. “Having everything taken away in an instant and then fighting to get it back taught me that if you set your mind on a goal, and work hard to achieve it, anything is possible,” he says. Clark is the driving force behind Guayaki’s global expansion, notes key account manager John Laplume: “Eric has optimized distribution networks, led sales teams, conducted market research, and overseen branding efforts. His expertise in the beverage industry, strong leadership skills, and ability to navigate international markets has been key in propelling our brand to new heights. Eric’s impact on the company’s growth in Canada is truly outstanding. Not only has he significantly expanded his team’s presence, but he’s also established a national footprint for the brand at retailers like Petro-Canada, Parkland and Shell.” In addition, Clark advocates for independent retailers and cultivates a culture of community engagement and sustainability. He is motivated by Guayaki’s focus on sustainability, while investing in communities through organic, fair-trade products.“I’m a part of something much larger than the beverages we market and distribute... I believe we should always leave something in better condition than when we received it. That’s my goal: To be the best version of myself while inspiring those who come after me.”

November | December 2023 Convenience Store News Canada

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T U L A T

I O

A G R

Join us in celebrating Priya on being a 2023 FLICC recipient. Product Develop Manager Private Brands

Leading by commitment, initiative, and example.

FLICC

KEITH EDWARDS

Digital innovation & enablement manager – mobility marketing North America | Shell Canada “I’m grateful to lead a team spanning Canada and the United States, focused on digital innovation. It’s energizing to realize our work is helping to transform and enhance the customer experience for those who visit our sites across North America,” says Keith Edwards, who led the implementation and evolution of Shell Go+, Shell Canada’s members-only customer rewards program and constantly seeks innovative ways to improve the customer experience. “I’m proud of the people I have the privilege of working with, and the visibility of what we do—as an industry, we play a daily role in many Canadian’s journeys,” he says. Edwards took on a previous team lead role shortly after the pandemic began, which meant standard processes of onboarding and regular interactions went virtual, a challenge he met with resolve. “We developed new ways of working and engaging with each other, delivering for two years, while running a program which has been externally recognized as a top loyalty program in Canada,” he says. Edwards believes that because his industry serves all Canadians, it’s vitally important that it be representative of the country’s diversity: “As a leader I want my team and all those I work with to feel valued and know that I am an ally for inclusiveness. “Being a part of so many communities means we have many opportunities to give back, which is important to me on a professional and personal level.” Carl Laliberte, Shell Canada’s national director of convenience retailing, mobility Canada, says Edwards also demonstrates leadership through Shell’s national and regional DE&I councils and his efforts have made a big impact: In summer 2023, Shell installed rainbow canopy wraps at select sites in Toronto, Vancouver and Calgary to celebrate and recognize Pride festivities. 16

AYAAZ JAMAL

President, auto wash division Express Auto Wash Operations

KIRANPREET KAUR

Manager - Petro-Canada/A&W Petro-Canada | Suncor

Under Ayaaz Jamal’s leadership, Express As a manger, Kiranpreet Kaur expertly Auto Wash has seen innovation, community oversees many tasks, including gas, conengagement, and operational excellence. venience, fast food, car wash, accounts, He is most proud of his recent promotion to marketing and human resources. president, and the company’s rapid growth “She leads an incredible team of 35 at the since joining six years ago. Georgetown location, which has shown “I wore many hats in my previous role, huge financial growth and profitability,” which fuelled my curiosity and passion for says Vinod Iddya, ARL - Petro-Canada. our industry,” says Jamal. “We’ll have four “She has launched various initiatives and fully operational washes by the end of this transitions to better technology, and has year, and the transition from design to build won community awards, a President’s to operations has been my biggest accom- Award, People’s Award, Impact Award and plishment.” Bronze Award—all related to performance Jamal, who, impressively, was nominated and community initiative.” for FLICC by four people, is described as a Some of the innovations Kaur has been great leader who empowers his teams to involved with include Cloud 365 with A&W grow, achieve and excel in their roles. upgrading food quality; third-party deliverJamal also pushes EAW to introduce ies updates; mobile apps; store, car wash sustainable initiatives: The company is one and pump upgrades; and staff training webof the first in Canada to recycle 80% of its sites. water on top of reusing rainwater in rinsing She was also involved with recruiting and systems. training for a new site that opened this fall in “This aligns with my goals to keep us at Waterdown, Ont. the forefront of innovation as we continue “There’s never been a dull moment in to grow across Canada.” years of my association with the Petro-CanCommitted to building a diverse pool of ada and A&W brand,” says Kaur. “Scale and talent, Jamal often hires new immigrants versatility are the signature of these iconic who face higher barriers to employment. brands. Over the years, we have changed Jamal’s dedication to community rubs off business models, launched new stores and on his customers, who enthusiastically taken over some formidable challenges. support the organization’s charitable Our people have been our strength, getting events. At the opening of a new car wash, a great group of people together and alignJamal hosted the Grand Splash Fundraiser, ing their goals with the goals of the brand helping raise $18,000 for Family Services has made us successful. It’s gratifying to of Greater Vancouver. lead multiple teams to accomplish at vari“Next generation leaders must give back ous levels.” and build long-term relationships; this lets Not only is Kaur committed to compliour business show that we stand by prom- ance, sustainability and safety, but she’s ises made. Our amazing customers then also active in various community initiatives, stand by us through our community events, including fundraising support for Bread giving back to those who need it most.” Basket, Multiple Sclerosis and the local hospice.

November | December 2023 Convenience Store News Canada

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FLICC

MÉLANIE MAINVILLE AND KARL PAYEUR

Co-owners/operators Dépanneur Voisin | Sobeys

Two years ago, Mélanie Mainville and Karl Payeur decided to purchase four c-stores from their previous boss and lead 50 employees towards the future. Leveraging Payeur’s skills working with vendors— he started working for Voisin as a cashier in his teens—and Mainville’s talents running HR and business development, the duo is forging a path to success. “Our previous boss saw our potential and I’m proud of that,” says Mainville. “Working for myself gives me a huge advantage to plan my retirement, and being able to improve my employees’ well-being and professional development is very gratifying.” Payeur values employee retention and fosters diversity and inclusion within the team. “Everyone is important to the company, regardless of their job title, and we value every employee’s well-being above all,” he says. “I also love my customers and each day I meet new people who inspire me to keep improving the business and diversify our product offerings.” The business partners have overcome big challenges together. Two weeks after buying the c-stores, Mainville learned she had cancer. In addition to the business, she also juggled doctors’ appointments. “Without the help of Karl and our team, I wouldn’t have made it; everyone supported me, and I’ll never forget that,” she says. Today, Mainville makes time for her clients and staff. “I want them to feel comfortable and heard, and I do everything possible to provide a calm, supportive work environment. One of my cherished values is to create a space where everyone can help each other and discuss anything without judgment.” The co-owners proudly support their community, donating beverages to the Défi ski Nicoletti, which raised funds for local healthcare centres. CCentral.ca

AMANDA MITCHELL

Head of loyalty Petro-Canada | Suncor

KELLY MOROZ

Gas bar manager Dauphin Co-op

Succeeding in 13 different roles over 15 Kelly Moroz joined Dauphin Co-op as a colyears, Amanda Mitchell’s energy drives her lege student. At 24, shortly after having a team and her organization. In October, she baby, she was given a great opportunity. took on a new challenge as head of loyalty, “My manager was applying for a new posiafter several years leading energy market- tion, and I knew I had to apply,” says Moroz. ing for Petro-Canada’s retail and wholesale “My son was only three months old when I businesses, including Petro-Canada’s low became manager; it was the hardest decicarbon energy portfolio including their EV sion of my life, but it was the right one.” Charging Network and renewable diesel. Moroz enjoys getting to know her cus“I strive to be better every day, and make tomers and is especially proud of her closea positive impact,” she says. “I’m always knit team in Dauphin, Man. learning, focusing on our customers, men“I love hearing customers saying they toring and seeking to inspire others. It’s the come here because of how our team treats little things that make us, our businesses, them. Customer service is huge for me, so and our communities stronger.” I push the team to do their best every day,” Mitchell has been involved with estab- she says. lishing a distributor network across the Taking on c-store, fuel and car wash all U.S. to sell an innovative oil-based turf at once is no small task, and Moroz shows management product, heading up a global ambition and a passion for growth, notes conference, optimizing a North American her nominator: “Kelly’s worked hard to logistics strategy and launching one of enhance the customer experience and Canada’s first hydro-treated renewable quality of Co-op offerings; she embraces diesel products to reduce environmental new programs for hot food and fresh offerimpact. “I like working in the energy indus- ings in the market and helps develop the try because it’s central to a thriving world, skills of her next-in-command to ensure the and I’m proud to work among talented pro- business is always in good hands.” fessionals focused on safety, reliability and Moroz believes in taking advantage of all profitability while supporting communities learning opportunities, and notes that the and reducing environmental impact.” Co-op’s values—respect, honesty, service Shannon Wing, Suncor’s general man- and excellence—resonate with her, and ager, retail, says Mitchell is a leader and motivate her to do better. mentor to dozens of team members, as “I like that our business does so much for well as externally: “Amanda is part of our our customers, so the money stays in the employee inclusion and diversity networks, community, and it’s nice to see our team including a mentor within our Mozaic (Black members volunteering,” she says. Employee Network) mentorship program. “I want to keep my team members happy, She’s a passionate leader and collaborator keep their trust in me and ensure they have that has helped us differentiate and opti- a safe place to work.” mize our brand and community strategy.” Mitchell believes that with change and challenge comes opportunity. “Positivity builds resiliency; I choose to be excited versus afraid of challenges, which allows me to quickly adapt, pivot and reorient to achieve results.” Convenience Store News Canada November | December 2023

FLICC

CYNTHIA MOSCATO

Sr. marketing manager, Eastern Canada Division Alimentation Couche-Tard | Circle K Supervising a team of eight and overseeing marketing for the 800 Couche-Tard and Circle K stores in Quebec and the Atlantic provinces, Moscato handles brand positioning, in-store strategic planning, promotional and digital campaigns. “I love the fast pace of day-to-day operations; we need to adapt quickly to make our consumers’ lives easier,” says Moscato, who cites building her team as her proudest accomplishment. “They challenge me every day, and together, we’ve built great campaigns and strategic initiatives.” Since joining the company, Moscato has worked with top media partners to make the Couche-Tard/Circle K brands shine, notes Pierre Peters, vice-president, operations, Québec East and Atlantic Canada: “We’re happy to count on outstanding leaders like Cynthia, who pushes our company to find creative, innovative solutions to offer the best to our customers.” For example, Moscato facilitated the integration of the McGill Retail Innovation Lab Store—a unique concept combining technology and streamlined customer experience —into the Couche-Tard mobile application, ensuring the project’s outreach on all platforms. Known for her positive attitude and outof-the-box thinking, Moscato, a 2021 Star Women in Convenience Award winner, is resilient, helping her team navigate challenges, including the pandemic. Community building is also important to Moscato’s vision. She devotes time to charities focused on children and youth, and organizes giving campaigns across the Eastern Canada network. “It’s really close to my heart to help and give back,” she says. “Also, the values we live by at Couche-Tard are important in the culture, and we feel them as employees.” 18

ALICJA NOWAK

Marketing manager Payment Source Described as “the glue between product, customer service and sales,” Alicja Nowak manages marketing and communications initiatives for the Now Prepay line of business, which serves c-store owner/operators across Canada. Her work has included spearheading market research studies by reaching out to Payment Source’s existing store base to learn about key drivers for this market, as well as suggesting ways to increase revenue at their locations. “Alicja is extremely dedicated to her customer base and works hard to make the relationship between Now Prepay and our c-store owner/operators collaborative and inclusive,” says Allison Cutler, director of marketing and communications, at Payment Source. “She has brought innovation to this line of business by creating networking events for this audience and being the driving force for a collaborative conversation model with our c-store customers. Alicja has redefined the Now Prepay brand to ensure its relevant to our audience.” Nowak enjoys the industry’s continuous growth and evolution and was delighted to become marketing manager. “I’ve been able to focus my marketing efforts on the retail side of our operations, spanning everything from customer retention and brand development to strategic customer acquisition... I appreciate how we consistently expand our product offerings to provide retailers with an optimal mix that fosters financial inclusion in the community.” Nowak believes sustainability, community-building and DEI are important because they align with ethical values and make good business sense. “Companies that prioritize sustainability, community engagement, and DEI tend to be more resilient, innovative, and appealing to customers, ultimately leading to long-term success and a positive impact on society, which I always want to be a part of.”

November | December 2023 Convenience Store News Canada

MUHAMMAD PASHA

Category commercial manager – strategic channels Conagra Brands Formerly a key account manager for C&G, Muhammed Pasha now handles commercial leadership for strategic channels across all brands, specifically protein snacks. Over the past three years, he’s helped Slim Jim become the fastest-growing brand across meat snacks nationally. “Each win in my career, big or small, has helped me grow professionally. I cherish the great relationships with my colleagues and customers, because whenever I celebrated an achievement, I wasn’t doing it alone,” says Pasha. With limited shelf space in C&G, Pasha thinks creatively, working with customers to find ways to unlock opportunities, such as leveraging pre-packs. “To win in convenience, multiple players must come together: Manufacturers, distributors and customers play an equal role in making sure the best products go on shelf, so consumers stay happy and keep coming back. “It’s a difficult balance to maintain and that’s what makes my job exciting. It’s all worth it when I visit a store and see my products being bought by consumers.” Known for his ability to build relationships with customers while driving value for manufacturers and retailers, Pasha has demonstrated exemplary leadership and was nominated twice for FLICC. “His approach to P&L management has been thorough and strategic, balancing both increasing distribution and customer satisfaction, while maintaining healthy margins,” says one nominator. “Pasha’s win-win approach to C&G should be the benchmark in the industry.” Pasha is proud of Conagra Brands’ commitment to sustainability, community-building and DEI. “It’s unmatched in the industry and one of the reasons I respect my company. Being an immigrant, I hold the company’s DEI value close to my heart.” CCentral.ca

Congratulations to

Raphael Puente and all the other 2023 Future Leaders in Convenience Award Winners! We are proud that Raphael has been recognized for his commitment, dedication and innovation to Canadian Tire Gas+ and the Convenience/Gas industry in Canada. Congratulations Raphael!

FLICC

NIKKI PATERSON

Operations specialist, fleet and payments Parkland Corporation Nikki Paterson manages day-to-day operational needs and projects supporting programs spanning fleet, cardlock and payments. Her projects are credited with streamlining systems, processes and people following merger and acquisition activities, while also helping position Parkland for growth. “I’m a big believer in saying yes to new challenges, especially those that take me out of my comfort zone or into unfamiliar territory. These opportunities are where I see the most self-growth,” Paterson says. “I took a role in a completely unfamiliar industry and was ok with asking a million questions. I’m fortunate to have so many amazing colleagues who are willing to share their knowledge with me so that I can grow mine.” She has delivered countless projects that have cleaned up integration complexity, expanded Parkland’s business into new channels and designed offers to support customers through significant network and platform changes. Paterson has superior cross-functional collaboration skills, embodying teamwork and professionalism, notes Janna West, Parkland’s product manager, fleet and payments. “Nikki is committed to our customers and supporting teammates to achieve the result that best serves them and our business. If a task doesn’t fall in her court but there’s a gap in support or resourcing, she’s the first one to roll up her sleeves and make it happen,” says West. “She’s just getting started in her career within the downstream oil and gas space, and has grasped the business at an impressive rate that will serve Parkland and the industry with her strengths in data and project management and process improvements in years to come.” 20

RAPHAEL PUENTE

Associate merchandising manager Canadian Tire Gas+

CHRIS REYHANI

Manager Family Variety, Bolton, Ont.

Raphael Puente took a leap of faith when he “My biggest accomplishment is running my moved to Canada four years ago, leaving own business. I completed five years at York behind his career. University for a Bachelor of Arts in Psychol“It fills me with pride that I’ve been able to ogy, but no amount of schooling prepared start over again at one of the most import- me for real world training like the business ant companies in Canada,” he says. has,” says Chris Reyhani. Today, Puente manages product cateKnown for being a top retailer of Imperial gory strategies, assortment, merchandis- Tobacco products, superior lottery sales ing, promotional opportunities and vendors and an employer of young Canadians, Reyfor the gas bars. hani’s convenience store and associated “I’m passionate about numbers, analy- vape shop has shown him what success sis, and making decisions based on data, looks like. and I’m proud to know my work impacts “I value interacting with our customers, the daily lives of our staff, our vendors and who come from different backgrounds and our customers,” says Puente. “My biggest are of all ages. It is a pleasure to cater to accomplishment was implementing and them, and to get to know them,” he says. expanding the omnichannel business Reyhani’s store has a historic reputation across the country, satisfying a customer in this small community of Bolton, Ont., and we weren’t targeting before and creating a has served families for more than 20 years. new source of income for our retailers.” His impact is such that he was nominated Puente has reshaped the company’s by a fellow c-store operator in his commumerchandise sales data analytics and pro- nity, who notes: “Chris is running [the busimotional planning tools, says convenience ness] at a young age, and the store is also marketing manager Marc-Andre Stanford. known for donating to local youth hockey “Raphael has expanded and more than leagues.” doubled our food delivery program, both Reyhani says getting the right product in POS and unit sales, and was instrumen- and maintaining inventory can be chaltal in improving our in-stock position on lenging. many key categories including ice-cream “Since COVID-19, things have started to through a tumultuous 2022-2023 sales stabilize, but product shortages are still period with significant supply chain issues.” happening,” he explains. Puente demonstrates strong leadership “It’s good to see prices and inventory stain improving the culture at Canadian Tire. bilizing. I am in the consumer discretionary He’s a founding member of the company’s business, so it is important to align with divisional Diversity, Inclusion & Belonging companies that are actively working on Committee, and its employee resource eco-friendly and cost-friendly products for group for Latin and Hispanic employees. the customer.” “As a BIPOC and member of the 2SLGBTQIA+ community, I know how important it is to work for a company that supports DIB,” he says. “Canadian Tire’s goal is to ‘make life in Canada better’, and do this by having a diverse workforce, an inclusive environment, to great information and resources.”

November | December 2023 Convenience Store News Canada

CCentral.ca

FLICC

JACKSON REMPEL

ANTHONY RUFFOLO

CEO, Canadian mobility services Shell Canada

President McCowan Design & Manufacturing

As the newly appointed CEO of CMS—the Shell subsidiary that will operate 56 sites acquired from Sobeys in Western Canada— Jackson Rempel will put his depth of knowledge across mobility and collaborative leadership style to good use, says Carl Laliberte, Shell Mobility Canada’s national director of convenience retailing. “Jackson’s journey is inspiring, touching multiple levels and different countries. His influence with vendors and partners with HSSE [health, safety, security and environment] are beyond impactful,” says Laliberte. Rempel’s career began with leading a network of privately-owned fast food, fuel and c-stores. Since joining Shell in 2014, he’s been a territory manager in Ottawa, an operations manager in Mexico City (where he opened the first company-owned Shell site there), leader of the Mobility HSSE team and pricing manager, where he delivered record business results while enhancing the company’s end-to-end performance. “I’m passionate about professional development,” says Rempel. “Helping others grow and learn fills me with a deep sense of purpose and accomplishment. I love being at my sites interacting with my teams and serving our customers, because it gives me invaluable insight that I use to enhance the site experience for all.” Rempel believes in creating a workplace where people can be their true selves and be respected for it. “This builds trust and a strong sense of belonging, which unlocks tremendous value for people, the community, and the business,” he explains. “When faced with challenges, I love to roll up my sleeves and jump into action. In leadership roles, I need to channel this energy in different ways to be more effective, and it’s taken mentorship, self-awareness and discipline to build new habits and strengthen my skills.”

Taking over a company’s reins can be challenging, but Anthony Ruffolo makes it look easy, something he gives his mentors and peers credit for. “Being in a leadership role at a young age requires empathy, patience and perspective that may exceed the experience level you enter the role with,” he explains. “To overcome this, I worked with an outstanding team at McCowan; they always have the best interests of our customers and company at heart. Being able to listen to the advice of great people around you is one of the most meaningful skills you can develop.” COO Glen Berger says Ruffolo has been instrumental in growing the company and executing a positive work culture focused on customer care, product development and innovation. “Anthony has been integral to the redefining and development of the business, and has spearheaded countless product developments, including a family of products for secure under-counter tobacco cabinets which has changed the way many customers handle and store tobacco products,” says Berger. “It has provided greater flexibility in the layout of their pay-points and service counters.” Ruffolo finds it rewarding to lead a company that manufactures high-quality products in Canada. “I’m proud of our team’s ability to design products, solve problems and service our industry reliably,” he says. “Sustainability is part of McCowan’s core: We build highly durable products that look fantastic for decades and our key material, steel, is recyclable. I’m supportive of local manufacturing, and being part of a company that supports the community and its economy is very meaningful to me.”

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PRIYA SELVANAYAGAM

Product development manager, private brands 7-Eleven Canada Beginning her career at Loblaws as part of its grad program, Priya Selvanayagam gained knowledge and expertise within category management before moving to foodservice. When she joined 7-Eleven Canada to lead its private brand portfolio, it was during a time of volatility and supply challenges—and Selvanayagam met challenges head-on, strengthening relationships with vendors to enhance the line. “This business can only operate through partnerships, and this is something I value,” she says. “Whether they are the ones built within the organization or outside with our vendors, building relationships creates a better path to success collectively, while always keeping the evolving customer in mind.” Selvanayagam says the experience she gained from working in various segments helped shape her path and process to succeed in her current role. “Developing the ability to lead and make decisions that influence how to strategically maneuver through the evolving changes of our customers and the market in general was my greatest win,” she says. Selvanayagam says she chose to join 7-Eleven Canada because of its values related to inclusivity, community and sustainability. “As a woman of colour these are all important factors for me. An organization that cares about sustainability, community and DEI is a company I want to stand behind,” she says. “My biggest challenge was moving through the barriers of stigma—age, colour or gender—to have those around me form their opinions based on my work and experience. This couldn’t be done alone, so I reached out to people for support to be my advocates and sponsors and to guide me through my career path.”

Convenience Store News Canada November | December 2023

FLICC

AMANDA SIMPSON

Convenience retail brand manager Waypoint Convenience Amanda Simpson says leading the development of Waypoint Convenience’s Chart Topper campaign in summer 2023—which included the first Canadian convenience partnership with iHeartRadio—was a career highlight. “It was fun creating shared experiences for our customers and the communities where we operate,” she says. The campaign included a new gamification development and legal requirements, plus in-depth media strategy and execution. “Amanda is a brilliant creative thinker with the tenacity to overcome obstacles and reach her targets. She brings kindness and patience in her approach to leadership,” says fuels brand manager Thea Bourne. Simpson recently led an in-depth customer journey mapping project that took her to British Columbia and northern Ontario, where she met with agents, conducted site visits, worked on focus groups and spoke with retailers to better understand their customers and the retailer network. “I enjoy being able to create impactful marketing campaigns that resonate with our customers, retailers and store managers, and I love getting to know our retailers’ stories,” she says. Bourne says Simpson brings fresh ways to engage and retain c-store consumers and retailer partners: “She’s cognizant of the importance of connection, understanding, and teamwork in a way that will impact how the industry is run.” Simpson has developed programs for 2024 designed to improve both sides’ experiences within the network and make being a partner more rewarding and fulfilling. She says it’s valuable to find a workplace “where I truly felt I belonged and where I was aligned with the values of the company. I love the friendly voice and inclusivity of the Waypoint brand. It speaks to who I am.” 22

MATTHEW STEWART

TOM TALLON

Matthew Stewart describes himself as a tech junkie who enjoys the fast-paced energy of this industry from a technology perspective. That’s likely why his exemplary skills deploying an integrated network system into an easy-to-use, allin-one, point of sale unit for major gas station brands across Canada are so valued. “We’ve seen some interesting things develop for POS, marketing, and fuel technology to bring products to the visibility of the customer or improve their experience in the store and at the pumps,” says Stewart. “One recent highlight was creating a training program with a colleague: We completed an installation manual for the BT9000 Point of Sale for field technicians and a two-day in-person training course for hands-on materials. The next phase will be training videos on YouTube for technicians and end users.” Stewart started as a field technician, and he’s proven to be an excellent teacher, says colleague Evan Farah. “Matthew has a good understanding of the network systems in gas/c-stores and a determination to connect and improve those networks,” explains Farah. “He’ll take a call at any hour to assist in an emergency and has taken on many large tasks with determination when others thought the goal was impossible; Matthew steps up and makes it possible.” The network solutions that Stewart helps implement inspire those around him: “His focus on flawless implementation is supported by the full team to ensure quality consumer experience. It assisted store owners, managers, cashiers and consumers with the ability to collect loyalty rewards in a system using that fully integrated network.”

In five years, Tom Tallon has gone from part-time student and car wash attendant to supervisor, manager and now director of operations. He oversees three car wash sites in the Calgary area, having helped develop, design and set up the building and equipment layout for the two newest locations. “Tom has demonstrated outstanding leadership. Not only is Tom well-versed in our operations, he’s well-spoken, admired and dedicated to his employees and to the growth of the business,” notes director and owner Farouk Haji. In addition to being a Future Leader, Tallon won the International Car Wash Association’s Emerging Leadership Scholarship Award in 2023. “These awards indicate I’m heading in the right direction, and motivate me to continue learning and growing within this industry,” says Tallon, who is dedicated to smooth machine operations. “Fixing, maintaining and installing the equipment so it delivers a great wash and brings a smile to customers’ faces as they go through makes me proud to be part of this industry.” Tallon participates in many community events and raises money for local food banks. He helped plan an auto sound competition in support of Mothers Against Drunk Drivers. To him, community building is about more than sponsoring events or donating to causes. “Community is a feeling your customers get when they visit your business. You must make them feel that supporting you supports the area in which your business operates,” he explains. He believes sustaining staff morale is very important and has helped ensure his staff’s good health by setting up a deal with Good Life Fitness. “Tom is a lifesaver. He ensures we’re operating at our best, and is continuously learning and experimenting with new ways to improve,” says Haji. CSNC

Senior POS software specialist, ASO track lead, trainer Bulloch Technologies

November | December 2023 Convenience Store News Canada

Director of operations Dreams Eco Xpress Car Wash

CCentral.ca

Congratulations! Shell Canada Mobility is proud to recognize Keith and Jackson and all the Future Leaders in Convenience 2023 winners. Thank you for all you do!

Keith Edwards

Jackson Rempel

NA Digital Innovation & Enablement Manager

CEO Canadian Mobility Services

23_007767_Conv_Store_News_NOV_CN Mod: September 13, 2023 10:31 AM Print: 09/25/23 page 1 v2.5

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Turn your store into a food destination Consumers are seeking Grab & Go meals and snacks more than ever, so now is the time for c-stores to ensure their foodservice offerings meet the demand. The numbers paint a clear picture. Consumers are turning to c-stores for Grab & Go food options in greater numbers. Data from the National Association of Convenience Stores showed total foodservice sales grew by 14.3% in 2022. Research also suggests c-store foodservices represent almost 23% of sales, and that figure is expected to grow. For c-stores, this emphasizes how elevating foodservice offerings can drive revenue. To help build their foodservice offerings, many operators have been turning to companies with deep expertise that can offer everything they need to create a food destination for their customers. One such company is Core-Mark, a recognized leader in the foodservice category. Its Core-Mark Innovation Centre (CMIC) was established to feature and display the latest product innovations, technology and equipment for c-stores. It’s an opportunity to collaborate with industry leaders and decision-makers to showcase the latest from the industry. It’s part of Core-Mark’s efforts to go to the next level with made-to-order c-store menus. Its turnkey, one-stop-shop programs make it simpler for operators to incorporate foodservice solutions. CoreMark does all the legwork by providing operators everything needed, from program information to marketing support (including signage, equipment sourcing and training materials). The variety of Core-Mark programs allow c-stores to customize their foodservice offerings according to the preferences of their customers. Pizza is always a favourite across all age groups. Core-Mark’s pizzas are crafted with hand-stretched Napoli-style dough, topped with made-fromscratch sauce, using crushed tomatoes and spices, plus flavourful toppings. They’re baked in-store, allowing c-store operators

to sell slices or whole pies. The pizza program includes sourced equipment, smallwares, accompaniments and packaging solutions. In recent years, the fried chicken trend has boomed. The National Restaurant Association put fried chicken sandwiches as the no. 2 hottest trend of 2023, while market research provider Precision Reports said the global fried chicken market was set to rise “at a considerable rate” from 2023 to 2030. Core-Mark’s Chicken Louie program takes a unique approach to a fresh fried chicken concept within the convenience store marketplace. C-stores can expect a comprehensive offering that includes fully cooked chicken, accompaniments and marketing support needed to get started.

More consumers are also looking for quick better-for-you meals, snacks and beverages, according to research firm Innova Market Insights. Core-Mark’s Grab & Go program hits the mark with its Fresh & Local line of sandwiches, snacking cups and protein plates, ideal for meeting the demand for higher quality, prepared food. For c-store owners and operators, it features complete merchandising and in-store marketing solutions. Grabbing customer attention is key for any foodservice offering. The enticing aromas from a roller grill program (think hot

dogs, smokies, tornados, roller bites and sausages) can bring added store traffic and support sales of satisfying snacks and meals. Core-Mark has just the right program to make that a reality by providing sourced equipment, POS kits, smallwares, accompaniments and packaging solutions. For many c-stores, hot and cold beverages are the cornerstone of their foodservice operations. Core-Mark has programs for both. The company’s hot beverage program encompasses a wide range of coffee and tea options with all the tools needed to support sales and profits, from a collection of quality blends and roasts to loaned coffee equipment program, as well as merchandising and marketing solutions. Meanwhile, the cold beverage program offers a variety of slush and fountain beverages. Core-Mark’s partnership with Jones Soda Co., a pioneer in the craft soda market known for its unique flavours, labels and iconic glass bottles, provides c-stores an opportunity to stand out. Jones Soda products use real cane sugar, natural ingredients and on-trend flavours that customers want most. The Core-Mark program also includes sourced equipment, POS kits, merchandising and in-store marketing solutions. Scan below to visit the website:

To learn more about how to put foodservice front and centre of your business, contact a Core-Mark sales representative or visit Core-Mark.com.

Canadian Customer Service (877) 864-0285 www.core-mark.com

FEATURE

COFFEE TIME is any time

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C-stores are investing in new equipment and menu items to elevate coffee programs and perk up sales B Y C H R I S DA N I E L S

Kendralyn Van Daele is the manager of Goulais River Country Store, named after the northern Ontario community in which it is located. Goulais River is home to only about 5,000 people, but a 20-minute drive south is Sault Ste. Marie, with a bustling populace of about 75,000. Following her father Kenneth Peter Van Daele’s purchase of the c-store in July 2022, the father and daughter duo have made improvements to its product offering, including coffee. “The story had always had a coffee bar, but the coffee was just in thermoses and wasn’t always fresh,” says Van Daele. “We wanted to try and get more people in the community into our store with better coffee instead of having to drive into Sault Ste. Marie every day to get it.” In February of this year, Goulais River Country Store introduced a Country Style self-serve hot beverage and bakery kiosk with beanto-cup equipment, including for making French vanilla and café mocha coffees. (The equipment can also make hot chocolate.) “Since then, our little kiosk has made roughly 16,000 cups of coffee,” raves Van Daele, who adds that café mocha has become the most popular selection with customers. “We have at least tripled our coffee sales in that time, because people aren’t just coming in during the morning rush on their way to Sault Ste. Marie, but in the afternoon and at nighttime because they know their cup of coffee will be fresh.” They are also buying baked goods, as well as other items (Goulais River Country Store carries everything from fishing tackle to groCCentral.ca

cery staples and the usual c-store items) when paying for coffee at the checkout. MTY Food Group is the operator and franchisor of Country Style, and its “Level 1” Express franchisee program offers the convenience and petroleum channel self-service units. “The rural market in Ontario is where we Karen Weldman have performed best, because people in these communities love brands, including when it comes to coffee,” says Karen Weldman, VP, new business development-express brands at MTY Food Group, whose restaurant and QSR banners also include Cultures, Mmmuffins, Mr. Sub and Timothy’s World Coffee. “Convenience stores draw people in typically with lottery and cigarettes, and branded coffee has become another daily driver of traffic into the store.” There is no denying that coffee in Canada is big business. It accounts for $4.8 billion in foodservice sales according to the Coffee Association of Canada, and considering the $1.8 billion generated at retail, it’s clear Canadians prefer getting their caffeine fix prepared outside the home (see “Canada’s coffee craze by the numbers” p. 26). While Tim Hortons used to dominate freshly brewed coffee sales, QSRs like McDonald’s invested in a new coffee program with great results, and last year Wendy’s introduced a breakfast menu for the first time in four decades, complete with seasonal coffee offerings. Convenience Store News Canada November | December 2023

“Given the focus on coffee from the traditional players, and the big QSRs shifting priority to the category and backing it with massive marketing budgets, there has been a rise in the expectation by customers to get a good quality cup of coffee everywhere,” says Eric WalEric Wallace lace, manager, foodservice operations at Parkland. “As a convenience industry, we need to build trust with those customers through consistency and quality.” Trust is being earned with the help of advanced bean-to-cup dispensers that produce quality coffee on demand in tens of seconds. Many dispensers are smart machines, saving on both time and labour costs. Next-generation machines, including those adopted by Parkland, even have a module for iced coffee. (See “Tapping into coffee’s cool factor” sidebar.) Parkland launched its Bistro brand nationwide in On the Run locations in 2022 with freshly ground bean-to-cup machines in place of thermos-held coffee that would see any excess poured down the drain every two hours. Coffee cups made from bamboo double down on Parkland’s commitment to sustainability. “For our operators, waste reduction, efficiency and reduced labour costs are more important now than ever,” says Wallace. “Bean-to-cup equipment has built in self-cleaning features, while ensuring waste is limited with each cup being ground and brewed on demand.” Jackie Pink, category manager, coffee, adds that the Bistro is a key component of Parkland’s overall foodservice offering and coffee volume is recovering to preCOVID levels, even exceeding in some locations. “With Bistro at over 600 locations nationally, we are able to achieve power and scale for marketing and purchasing, provide a turnkey operation for all new and acquired stores and have laid a foundation to build on,” says Pink. “It will include further integrating Bistro into Jackie Pink Parkland’s loyalty program, Journie, as well as other promotions and menu expansion.” “There is a lot on the horizon for Bistro,” says Pink. As convenience positions itself as a quality coffee destination, vendors are taking note, targeting the channel with products that meet the standards of discerning java-lovers. “We recognize the consumer demand for specialty coffee in convenience, as well as improved quality and brewing systems,” says Bari Atkinson, a marketing consultant with Oakville, Ont.-based Reunion Coffee Roasters. Founded in 1995, Reunion has grown from servicing cafes and restaurants, to becoming a full-service operation that includes wholesale clients. That focus now includes building its presence in the convenience channel, says Atkinson. “We have a unique offering not only on the quality side, but also the sustainability side.”

Parkland launched Bistro in 2022, introducing bean-to-cup dispensers designed to prevent waste and improve quality

November | December 2023 Convenience Store News Canada

Canada’s coffee craze by the numbers Past-day coffee consumption in the country surpassed 22 million adults last year, according to the Coffee Association of Canada’s 2022 Coffee Drinking Study. The study is based on a survey of 3,041 Canadians 18+. Here are the highlights—including where consumers are getting their caffeine fix.

73%

Almost threequarters of adults —roughly 22.5 million Canadians — drank coffee the previous day, up from 70% in 2021 and the highest level since 2019. That puts past-day consumption of coffee ahead of tap water (62%), tea and bottled water (44% each), alcohol (40%) and milk/milk-based beverages (35%).

2.7 27%

The average number of coffee cups past-day drinkers consumed.

More than a quarter of Canadians went outside the home for their past-day java in 2022, up from 25% in 2021 and 22% in 2020. Stats aren’t yet available for 2023, but to get a sense of the opportunity for c-stores postpandemic, 40% of Canadians went outside the home to have their coffee prepared in 2019.

33%

With grocery prices having soared because of inflation, only one-third of coffee drinkers believe “it’s more affordable to make my own coffee at home than to buy it.” That is, of course, good news for c-stores.

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FEATURE

Tapping into coffee’s

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COOL FACTOR During its last quarter, Starbucks reported that cold drinks made up 75% of U.S. beverage sales, fuelled in part by cold espresso drinks rising 13% versus a year ago. But iced coffees and cold brews aren’t just popular in warmer months. Since April of 2021, cold beverages have accounted for at least 60% of Starbucks’ beverage sales every quarter. In Canada, c-stores of all sizes have an opportunity to tap into coffee’s year-round market, too.

“The growth in specialty, iced and frozen coffee is being driven primarily by millennials and gen Z,” says Judi Saliba, senior sales executive at TFI Food Equipment Solutions Inc. “They like customization and that is part of the appeal with cold coffees.” TFI represents fully automatic coffee units from Franke Coffee Systems in Canada, including the Franke A1000 Flex. It comes equipped with a module for making iced coffee, plus specialty coffee (espresso) and bean-to-cup (fresh brew) and boasts a chocolate powder dosing system and a “FoamMaster” for adding a flavourful frothy topping. The unit enables c-stores to bring in foot traffic all day. “Picking up a hot cup of coffee is a morning ritual for a lot of people, but cold coffee drinkers come morning, afternoon and night,” says Saliba, adding that the Franke units are ideal for c-stores. TFI offers third-party leasing of the machines through Econolease. “Paying off the equipment is contingent upon sales volume, which is connected to both traffic and marketing, but 25 sales per day can pay for some models.” Major chains are also getting into the cold space in expanding their existing freshly brewed coffee offerings. Parkland has added iced coffee to locations with Bites On the Run, its foodservice concept with M&M Food Market. The company’s rollout of iced coffee across its banners in addition to other varieties is just beginning. “Going through the COVID experience, the convenience industry has been left with a changed consumer, in that their behaviour has evolved,” explains Jackie Pink, category manager, coffee at Parkland. “They commute differently which has moved them to different daypart purchases. This requires us to offer a more varied selection of coffee types—including iced coffee and lattes—and to ensure it’s always fresh and consistent no matter what time of day they visit.” “This is an important piece for our industry to adopt,” she underscores. CSNC

CATEGORY CHECK BY MICHELE SPONAGLE

The buzz on energy drinks

From celebrity-backed brands and BFY options to AI-created recipes, competition in this thriving category is revving up, which is great news for the convenience channel based in Hungary, has created Hell A.I., the first energy drink crafted by artificial intelligence, from its recipe to packaging.

The pace of news around energy drinks is dizzying these days. If you blink, you might miss what’s happening in a red-hot category with big players and small trying to claim a slice of a growing market. The stats tell the tale. Energy drink sales in Canada jumped from $851 million to $1.1 billion between 2018 and 2022, according to Euromonitor, a market research firm. Sales are poised to reach $1.5 billion by 2027.

Future quest

You could say energy drink makers are feeling bullish about the future. Earlier this year, Red Bull announced it purchased a 15-acre site, destined to be an ingredient preparation facility, in Chilliwack, B.C. The brand that started in Austria in 1987 remains a top-selling energy drink, selling seven billion cans worldwide per year. Red Bull keeps it fresh with limited-time flavours, which include Summer Edition Juneberry and Winter Edition Fig Apple. Meanwhile, Monster Beverage inked a 28

deal to acquire Bang Energy in July 2023. The brand is trying to flip the script and cater to more female customers, according to a recent article in Fortune magazine. Hybrid energy drinks made with coffee or tea hold promise for that demographic. Current numbers show 60% of energy drink consumers are male age 18 to 34. Monster Energy Canada is also reaching new consumers with fresh flavour profiles, including Ultra Peachy Keen, which won in the Caffeinated/Energy Beverage category at CICC’s Convenience Innovation Awards. And, not to be left behind, Keurig Dr Pepper last year inked a US$863 million deal for a 30% stake in Nutrabolt, the maker of C4 Energy and Xtend Energy. The company has taken over distribution of C4 in Canada, marking its foray into the energy category. “We now have a beverage for every occasion—something for everyone,” Hasnain Abu-Bakar, national account manager C&G, for Keurig Dr Pepper, told CSNC. In other news, Hell Energy, a company

November | December 2023 Convenience Store News Canada

For c-store operators, energy drinks can be effective drivers of in-store traffic. Sales in c-stores have rebounded along with other beverages, as people are out more, and returning to normal routines, like morning commutes to work. Analysts also say that category growth is happening despite inflationary pressures and consumers aren’t pushing back against price increases, seeing energy drinks as a luxury to splurge on. From unique flavours to celeb endorsements and good-for-you formulations, innovation is taking the category to new heights. Reign Energy added White Gummy Bear and Sour Apple to its lineup. In July, Kim Kardashian’s Kimade, a twist on pink lemonade, launched in partnership with Alani Nu, offered in colourful Barbie-pink cans. Closer to home, Guru Organic Energy, which positions itself as a better-for-you option with natural ingredients, launched a new Fruit Punch flavour earlier this year and recently took home Vendor Partner of the Year during the CICC Summit. “Our mission is to clean up the energy drinks sector,” says director of shopper and trade marketing Francis Desjardins, adding Guru promises less sugar and “full flavour.” The company has partnered with Gradey Dick, the sensational Toronto Raptors rookie, as a spokesperson. Three years after purchasing the Rockstar Energy Drink brand, PepsiCo Beverages Canada is tapping into its customers’ passion for music with a social content campaign “Grit Behind the Glory,” featuring two up-and-coming Canadian artists—Preston Pablo and Akintoye—sharing their hard work (grit) in pursuit of greatness (glory), fuelled in part by Rockstar. While the company has used celebrity endorsements in the past, this made-in-Canada campaign is a behind-the-scenes look at the journey itself. Zoa, the energy drink brand that can count Dwayne “The Rock” Johnson among CCentral.ca

RNKO/GETTYIMAGES.COM

Category staying power

its co-founders, came to market in 2021. It has undergone a major expansion across Canada, adding Couche-Tard, Circle K and Parkland to its roster. “Over the past two decades, we have seen health and wellness grow as a macro trend,” says John Galloway, CEO, Zoa Energy. “That was then accelerated by the COVID-19 pandemic and people care about their physical wellbeing now more than ever.” Zoa Energy is also positioning itself as a contender in the better-for-you energy category. “We see our customers are looking for hydration and energy boosting functionality. Our customers and fans are looking for healthy functional benefits with great taste and we deliver.” Beyond caffeine, Zoa Energy provides the same electrolyte profile as leading hydration brands, as well as daily value of vitamins B and C. “It’s these qualities, along with great taste, that turn our customer into Zoa loyalists,” adds Galloway. High-energy wellness is the focus of Guyaki’s Organic Yerba Mate drinks, which offer a unique non-carbonated blend of brewed yerba mate and organic fruit juice in a multitude of flavours. Originally from South America, the product, under the direction of general manager international, Eric Clark, is now a cold-vault staple at chain and independent c-stores across Canada.

Driving sales in c-stores

For c-stores looking for a boost in energy drink sales, ensure your assortment of product is the best in the market. “Once you select a brand, give it a real chance to win,” advises Galloway. “Product presence is key. If you are going to bring a product into a store, bring it in with presence. Otherwise, it has no chance in this crowded environment. Give it the space on shelf to stand out. Perhaps an extra point of interruption in-store. Give it its moment and let the consumer decide.” In-store media also gets a strong consumer response. “Letting brands tell their stories in creative ways can enhance consumers’ experiences in store, educate them, and can add up to additional sales.” Galloway offers other savvy strategies. “First, implementing a robust loyalty program can work wonders by rewarding loyal customers and encouraging repeat business,” he notes. “Time-limited promotions are also a great way to drive trial and attract new customers. Additionally, utilizing secondary merchandising planograms can optimize product placement, while highlighting grab-and-go offerings can cater to the needs of busy shoppers. To further entice customers, leveraging shippers and endcaps CCentral.ca

“If you are going to bring a product into a store, bring it in with presence. Otherwise, it has no chance in this crowded environment” John Galloway

for seasonal or promotional items can be highly effective.” And don’t underestimate the power of digital marketing channels, he says. “Exclusive offers through mobile apps or email newsletters can draw in tech-savvy customers. Collaborating with local businesses for cross-promotions can expand your customer base.” Zoa will soon reap the added benefits of its deepening partnership with Molson Coors. In September, the company said it would boost its investment in Zoa Energy, setting the stage to double its planned media budget for the coming year.

New brand, fresh approach

The energy drink business isn’t just about big players. Smaller companies are elbowing their way into the crowded market. Newcomers Matt Stirling and Mike Pullam, two friends from London, Ont., came together in 2019 to co-found Exponent Energy, a company focused on creating energy drinks that are naturally sweetened, and have ingredients like amino acids, green tea extract, ginseng and coconut water. They brought three SKUs (Blue Nova, Eclipse and Sector-C) to market in May 2023. The learning curve has been steep. Neither Stirling nor Pullam have an extensive background in launching beverages, but as consumers of energy drinks, they knew what they wanted. They set out to find the perfect sweet spot in the category by developing a product with the appealing taste of traditional energy drinks without the sugar.

Matt Stirling and Mike Pullam

“We started Exponent knowing we wanted to disrupt the market and get ahead of the changes we’ll see in the category over the next three to five years,” says Pullam. They saw a gap between traditional energy drinks (high sugar, high caffeine) and functional beverages that appeal to health-conscious consumers. It was no easy feat creating an energy drink with all-natural flavours and sweetened naturally (courtesy of monk fruit, Stevia and erythritol). After six months of intensive product development with California-based food scientists, Exponent was born. Without the deep pockets of bigger players, they are taking a different approach to get their product out there. “For us, it’s a question of going brick by brick, store to store, consumer to consumer,” says Stirling. “It’s all about getting cans in hands. Every time we do that, it’s a win for us.” Exponent is already in more than 1,000 stores and counting. They’ve achieved that by sampling events in-store, strong digital marketing pushing consumer traffic to retailers and laser-focused branding, including a modern, black and white can design that conveys product benefits quickly and clearly. There’s no mistaking it is meant to appeal to women just as much as men. “Convenience store customers are especially open to something new that they haven’t seen before,” says Pullam. POS materials, like posters on coolers, and mini store takeovers with attractive promotions and discounts have been successful in building awareness and sales for the fledgling brand. “Being forward thinking and understanding the modern consumer is at the core of everything we do. I think we’ve created something special here. We’re out to change the narrative on energy drinks.”

“We started Exponent knowing we wanted to disrupt the market and get ahead of the changes we’ll see in the category over the next three to five years”

Convenience Store News Canada November | December 2023

CATEGORY CHECK

Health Canada recalls and caffeine limits In July 2023, Health Canada began to recall energy drinks over their unauthorized caffeine content and labelling violations. The move made headlines. Consumers, retailers and energy drink makers took notice. The recalls were triggered by the Canadian Food Inspection Agency, which says energy drinks must not contain more than the 180 mg of

caffeine allowed in a single serving. Most of the recalled brands were not “manufactured nor intended for sale in Canada, and have been imported by third parties and sold in stores across Canada,” according to Health Canada. In search of products that deliver more bang for the buck, some retailers and customers feel caught in the middle. “Canadian consumers should feel confident that the caffeinated energy drinks (CEDs) manufactured in Canada by CBA members fully comply with Health Canada’s regulations and are not impacted by this recall,” says Erich Schmidt, senior manager, communications and public affairs, Canadian Beverage Association (CBA). Its members include Red Bull, C4, Monster, Rockstar and Guru. “We strongly encourage convenience stores and retailers to source energy drinks from Canadian Beverage Association members to ensure they are selling beverages that are compliant with Health Canada regulations,” he says. In 2010, CBA members voluntarily committed to not advertise or

promote energy drinks in settings (TV, radio, print or digital) and at events where the primary target audience is children. “The association and its members encourage all those who produce and market energy drinks to voluntarily implement the Energy Drinks Marketing Code, and to incorporate it into their business practices as appropriate.” Some energy drink makers are frustrated, pointing out that, while their products are capped at 180 mg per serving (about the same as a cup of filter drip coffee) by Health Canada, consumers can go to their nearest big chain coffee shop and grab an extra-large coffee with 330 mg of caffeine. Ghost co-founder Daniel Lourenco has called out regulators, saying that energy drinks like his company’s Ghost Energy have been “unfairly vilified, frequently lumped together, and subject to blanket judgements.” Ultimately, it will remain up to the consumer how much caffeine they want to consume, while regulators and manufacturers continue weighing in. CSNC

C-STORE

NATIONAL SHOPPER STUDY Prepared Foods Report: Serving up satisfaction

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B Y M I C H E L L E WA R R E N

Now, more than ever, convenience shoppers are turning to c-stores to satisfy cravings at mealtimes and the great news is the overwhelming majority say they are satisfied with their most recent purchase of prepared food. According to data from the 2023 C-store IQ National Shopper Study, more than half of shoppers (55%) say they purchased prepared food at a convenience store in the past month, an average of 2.77 times. Working with the research team at EnsembleIQ, Convenience Store News Canada surveyed more than 2,000 convenience shoppers across the country to examine their wants and needs at retail, specifically convenience and gas. Data shows that when it comes to prepared foods, c-stores are getting it right, but there’s a lot of opportunity for growth. That 55% of shoppers is a significant jump compared to the 2022 study, when 46% of shoppers purchased prepared food at a c-store, an average of 1.6 times. In 2019, pre-pandemic, the number was also 46%. Now, as people establish regular work and school routines, convenience stores are increasingly a destination for satiation on the go. Research shows prepared food purchases peak at lunch time and are relatively steady until after the dinner hour. Most purchases are combined with other items or gasoline, however 30% of shoppers say they visited a convenience store exclusively to purchase prepared foods. As an added benefit, these food purchases fuel a bigger basket size: Among prepared foods purchasers, only 7% did not buy anything else, with most also adding lottery tickets, milk and bottled water to their purchase. Of note, spending on candy/gum, ice cream and frozen/cold dispensed drinks increased significantly compared to 2022. What foods are people buying? Pizza leads the list of items purchased, followed by sandwiches and hot dogs. However, it’s worth noting shoppers indicated a signifCCentral.ca

icant and growing taste for international cuisines, including Mexican, Indian, Italian, Middle Eastern and Thai. In addition, hungry shoppers say they are looking for healthier options, as well as organic/all natural foods. Quality, freshness and taste are important to those dining at c-gas. As c-gas operations increasingly rely on foodservice to drive foot traffic and revenues, the good news is 90% of c-store shoppers are satisfied with their most recent prepared food purchase. In fact, those who turn up their noses at ‘gas station food’ and say they simply “prefer not to purchase at c-store” decreased significantly compared to 2022, which demonstrates that c-gas operations are making headway in establishing themselves as quality foodservice destinations. Cost, not surprisingly, is the top inhibitor to purchasing prepared foods, as shoppers tighten their purse strings. Note, gen X and boomers are more likely than millennials to say c-store prepared foods are too expensive. In other words, younger shoppers are willing to pay a premium for convenient meal and snack options. As people are increasingly on the move, with travel, kids’ sports etc., more than half (57%) of shoppers consumed their most recent prepared food purchase away from home (yes, they are eating in the car). It’s no surprise then that nearly half (45%) of shoppers purchased grab-and-go items, which is the most common scenario at convenience. However, it’s worth noting that a growing number of shoppers say they prefer made-to-order options, revealing an opportunity for c-stores to diversify their prepared food offering. While fast food restaurants continue to hold the top spot for the most likely destination to purchase prepared food, thanks to solutions such as home delivery, c-store are closing the gap and staking claim as solid and viable competitor for consumers’ share of stomach.

Fun facts

MILLENNIALS (25%) are more likely to purchase hot dogs than boomers (19%), generation X (19%) and generation Z (12%).

BOOMERS (28%) are more likely to purchase deli/sandwiches than millennials (20%), gen X (26%) and gen Z (18%).

GEN Z (19%) are more likely to purchase chicken foods like wings, than boomers (10%).

Convenience Store News Canada November | December 2023

Purchased prepared food at convenience store in past month

55%

Reasons why did not purchase prepared food at convenience store in past month

46%

35%

Purchased prepared food at convenience store in the past month

Too expensive Didn’t plan to purchase prepared food when I went to store Prefer not to purchase food at a convenience store

1.62

Wasn’t hungry when I was in the store There weren’t healthy food choices

18%

Didn’t like selection

17%

35% 30% 35% 22%

Didn’t look appetizing

2.77

Average # of times prepared foods were purchased at convenience stores in the past month

Concerned about cleanliness and store sanitation/food handling Fear of COVID-19 transmission

Significant increase / decrease

Time of day when last prepared food purchase made at convenience store 21% 5%

27%

6:00 am 8:59 am

9:00 am 10:59 am

11:00 am 1:59 pm

19%

23%

15% 4%

2:00 pm 3:59 pm

4:00 pm 6:59 pm

7:00 pm 9:59 pm

10:00 pm or later

18%

11% 5%

Typical prepared foods trip type Purchase prepared foods only

30%

70%

Types of prepared foods purchased at convenience store Pizza Deli/sandwiches Hot dog Breakfast sandwich Fresh baked goods French fries Chicken Hot snacks (non French fries) Other breakfast foods Branded food (e.g., Tim Hortons, Subway) Hamburger Ice cream/frozen yogurt Take-home meals Chicken burger Yogurt parfait Sushi Fresh cut fruit Soup/chili Mexican Fresh fruit/vegetable smoothie Salad Indian Fresh cut vegetables Chinese Organic/all natural products Italian Healthier options Middle Eastern Thai Vegan or plant-based 32

22% 28% 21%

18% 17% 17% 16% 15% 14% 13% 13% 13% 13% 10% 12% 12% 7% 11% 11% 11% 11% 10% 10% 10% 5% 9% 8% 8% 4% 8% 4% 8% 4% 7% 3% 7% 3% Significant increase / decrease 6%

November | December 2023 Convenience Store News Canada

Combined with other items/ gasoline

28% 22%

Satisfaction with most recent prepared foods purchase at convenience store Extremely / very satisfied

43%

Somewhat satisfied

47%

Not very/not at all satisfied

10% CCentral.ca

Place where last purchase of prepared food from convenience store was consumed 25%

57%

Consumed prepared food item(s) outside the home

43%

13% 9%

Consumed prepared food item(s) at home

5% In the car

Prepared foods purchased at convenience store in past month

Combination of both

20%

Grab-and-go/ refgrigerated

At work

In the store Purchased At school for someone else

Other

Preference for prepared foods at convenience store

16%

No preference

Grab-and-go/ refgrigerated

45%

39%

45%

Made-to-order/ freshy made

35%

Made-to-order/ freshy made

Most likely alternative to convenience store for purchasing prepared foods Stand- alone fast food restaurant (e.g. McDonalds, Tim Hortons, A&W)

32% 20%

Prepared and eaten food at home Prepared food/takeout from grocery

13% 8%

Digital home delivery (e.g. Uber Eats, Skip the Dishes)

10% 3%

Fast casual restaurant (e.g. Freshii, Panera Bread, Chipotle, Five Guys)

Local independent restaurant/foodservice provider Casual dining restaurant (e.g. Earls, Kelseys, Moxies)

9% 3% 7%

Significant increase / decrease CCentral.ca

Convenience Store News Canada November | December 2023

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Why attend? The convenience, gas and car wash industries are a hotbed for product innovation. Attendees will discover new and innovative products across categories such as: • Foodservice • Beverages/Snacks • Fuelling/EV • Wash Equipment • And More!

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MCDOUGALL ENERGY RAMPS UP GROWTH IN SOUTHERN ONTARIO EXPERT TIPS FOR WINTERIZING YOUR CAR WASH

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 SALES COORDINATOR Juan Chacon jchacon@ensembleiq.com DESIGN | PRODUCTION | MARKETING

CREATIVE DIRECTOR Nancy Peterman npeterman@ensembleiq.com

CONTENTS

NOVEMBER | DECEMBER 2023

VOLUME 28 | NUMBER 6

4 The Road Ahead The battle over, for and by big oil: Observations from the 24th World Petroleum Congress 2023

5 Feature

Winterizing your car wash: Preparing ahead can mean smooth operations and higher profits

8 Spotlight

Hot dog! Café Orange rebrand turns North Sun Energy’s forecourt customers into foodies

12 Feature

Growing south: McDougall Energy delivers on vision for expansion with two new locations in Southern Ontario

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

Meet the Future Leaders in Convenience + Car Wash CSNC p. 12

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OCTANE November | December 2023

THE ROAD AHEAD BY MARK HACKING

The battle over, for and by big oil I don’t need to tell you that playing a role in the retail petroleum business can be fraught with challenges. You’re living the ups and downs of the industry, every day of the week and twice on Tuesday. In the month of September alone, a pair of big news items hinted at why there’s so much pressure in this business. On the 15th, the State of California filed a climate lawsuit against ExxonMobil, Shell, BP, Conoco-Phillips and Chevron—the five largest American oil conglomerates. The suit also named the American Petroleum Institute as a defendant; it’s the U.S. oil industry’s most prominent lobbyist. The 135-page complaint intimates that oil and gas executives have known since the 1960s that greenhouse gases produced by the burning of fossil fuels would trigger climate change. The lawsuit further claims that the companies’ own research showed this to be the case, but company leaders downplayed the results and, in certain cases, triggered campaigns that suggested the exact opposite. “Oil and gas companies have privately known the truth for decades—that the burning of fossil fuels leads to climate change,” said Rob Bonta, California Attorney General, in a statement. “[But they] have fed us lies and mistruths to further their record-breaking profits at the expense of our environment. Enough is enough.”

Alberta Premier Danielle Smith 4

November | December 2023 OCTANE

In America, there are several climate lawsuits in play now, at both the state and local level. In those cases, the claims are similar in nature, so the country’s oil and gas industry was already in the proverbial hot seat. But this case is different: California is the world’s fifth-largest economy, so they have the resources needed to fund a protracted legal battle. “The scale and scope of what the state of California can do, we think we can move the needle,” said Governor Gavin Newsom at a roundtable organized by Climate Week NYC a few days later. (For the record, Newsom is one of the frontrunners for the Democratic Party should President Joe Biden make a late decision not to run for office again.) Observers have labelled this point in time—and this lawsuit—as a major milestone for the oil and gas industry, not just in America, but around the world. Some are calling it their “Big Tobacco Moment,” a meme that recalls the year 1994, when executives from the seven largest tobacco companies lied before the U.S. Congress about the addictive nature of nicotine. Fast forward a mere two days from that momentous event and the 24th World Petroleum Congress 2023 kicked off in Calgary, Alberta. This globally significant gathering sees some 5,000 attendees—oil and gas industry executives, government officials and media—meet in a different location

every three years. It’s the first time since 2000 that Canada hosted the event; that time around, Calgary was also the focal point and some 1,000 protestors marched through the downtown core. A lot has changed over the past two decades. This year’s Congress was themed “Energy Transition: The Path to Net Zero.” In the year 2000, that type of message would’ve landed like a rudderless private jet. But, even today, despite the theme’s hopeful tone, it sparked disagreement among the delegates and the speakers. In their respective opening remarks, Alberta Premier Danielle Smith pushed back against comments made by the federal Minister of Natural Resources Jonathan Wilkinson. Of course, Smith is in full support of the oil and gas industry in her province, while Wilkinson advocates for a more aggressive approach to emission reductions. A number of other delegates echoed Smith’s comments, these included Darren Woods, executive chair and CEO of ExxonMobil, and Prince Abdulaziz bin Salman Al Saud, the Energy Minister for Saudi Arabia. Their message: The energy transition process will take longer than expected and should not be rushed, for fear of triggering political and economic instability. Another hot topic at the Congress was the notion of “peak oil.” An opinion piece by the International Energy Agency (IEA) suggested that peak demand for fossil fuels would happen within this decade. The Saudis found this prediction to be wide of the mark. The chief executive of Saudi Aramco, the world’s largest oil company, said demand for oil is growing, not declining. What we learned from these few days in September is that the path to net zero doesn’t appear to be a straight line and nor is it a smooth road. 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.

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Observations from the 24th World Petroleum Congress 2023 in Calgary

FEATURE

WINTERIZING your car wash

Preparing ahead can mean smooth operations and higher profits BY TOM VE NETIS

Think of a car wash operation much like the vehicles that go through it each day. Talk to any vehicle maintenance expert and all will tell an owner that the best time to prepare a vehicle for winter is to start

early. You make sure your fluids are topped up, you have your winter tires on as the temperatures begin to fall consistently into the single digits and one needs to make sure all the vehicle’s mechanical systems have been inspected and if needed replaced if they show wear or damage. One does not wait for the first major snowstorm to hit or for temperatures to drop well below zero to do so, as one could find oneself stuck on the side of the road. Michael Howe, general manager with Mississauga, Ont.-based WashLinks says that one should in fact start preparing a car wash operation for winter in the summer. “We recommend that any improvements you want to make in the wash or any repairs or upgrades you want to make to your operations, you really want to try and do them during the summer months when your volumes are less, and people do not get as upset in the summer if they cannot get their car washed right away.” Matt Verity, consultant principal of the Calgary-based Car Wash & Self Storage, says that all car wash operations should create a compre-

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Convenience Store News Canada November | December 2023

Start early

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As odd as it may sound to many, winter is one of the busiest times for a car wash operation. It is during the winter months that drivers want to use the operations more frequently to remove snow and ice from their vehicles, and more importantly, to remove salt that if left on a vehicle will contribute to rust and damage critical components over time. Just as winter is harsh on vehicles, it can be as harsh on the whole of the car wash operation as well. It is critical then that operators of car washes be prepared and take steps to get their operations in order and ready. well before the first snow comes and the temperatures begin to drop.

Alberta- based ClearWater Car Wash has a comprehensive checklist that staff follow to prepare for winter

hensive plan for preparing for winter, one that is “all encompassing, from equipment checklists to the training of staff…and when you are dealing with colder climates like Canada’s, especially in Central Canada, you should start to plan for and prepare in September, no later than October.” Winter is almost here, so if you haven’t started your winter prep, the time is now. What one wants to avoid at Matt Verity all costs, according to Howe, is to discover a problem during the winter months, a problem that may necessitate having to shut down your operation during what is one of the busiest and profitable times of the year. “You need to focus all your efforts on checking your equipment, making any improvements to them or adding any new equipment or features to your operations—such as adding or replacing an important piece of equipment—in those summer months, not during winter.” Jayson Sevilla, site manager for Alberta-based ClearWater Car Wash, says that like all well-prepared car wash operations, his operation has a comprehensive checklist that staff will follow to prepare for winter. He adds that because of their location and the severe winters that happen, management and staff do not wait for to prepare. In fact, staff will inspect equipment daily and weekly to ensure everything is working correctly, along with doing the major winterization checks before temperatures fall and snow arrives.

What to inspect

Verity says that what is critical when preparing your winter checklist and your inspection regiment is to remember to focus on vulnerabilities that cold weather can exploit. One needs to focus on making sure to keep the cold out and keeping heat inside the facility. That will include: 6

November | December 2023 OCTANE

Getting entry and exit doors ready for winter is critical, but often overlooked. Doors should be inspected and maintained regularly

1. Checking power and air systems to ensure they are operating properly. 2. I nspecting and lubricating all necessary components to keep them from seizing up during cold weather. 3. Preventing compressor damage by draining it before winter arrives. 4. Inspecting, testing and fixing heating systems. 5. Checking and replacing any worn or damaged weather stripping to both prevent cold from entering the washing bay or tunnel and to keep heat inside. After that one should take a close look at the sprayers, brushes, hoses and other mechanicals. Tim Walker, president and founding partner with Soapy Brushy in Hamilton, Ont., also recommends inspecting all electricals and connections to ensure they are in good working order. Verity adds that when checking those wiring and hose connections and brushes “that you make sure that you are looking at them not when they are in their ‘home’ positions, but when they are at their furthest points because that is when they are going to be pulling on your electricals the most and on your hoses as well.” CCentral.ca

To prevent your hoses or pipes carrying fluid from freezing or bursting during the cold of winter, one should consider such measures as: 1. Insulating pipes, pumps and other vulnerable components. 2. I nstalling freeze-resistant hosing seals that can withstand low and freezing temperatures. 3. Installing radiant or heat tracing systems in critical areas of the wash operations to ensure a consistent temperature is maintained and to protect equipment. Travis Braithwaite, chief operating officer with ClearWater Car Wash, adds during the winter months it is important as well to keep an eye out for any potential problems that can happen during the car wash while it operates. He advises having someone do regular checks on the systems to make sure everything is working correctly. This is especially important with self-service car wash operations, such as ones that operate at gas stations. “Gas station car washes are often unattended,” he says. “You have someone in the office dealing with the convenience side of the business and the car wash is sometimes not within eyeshot of that person. What that means is that if there is a breakdown anywhere, say in the tunnel or in the equipment room, they will not know about it until a customer comes and tells them. So, when you are running your operations, you as a manager and your staff should be walking the site and operations often to catch anything that may have ‘gone off the rails.’” Not doing so could mean you coming to your operation in the morning and discovering a system frozen in ice. Everyone who OCTANE spoke with said one of the most critical, and sometimes overlooked, systems in a car wash are the doors. The doors at the entrance and exit need to be regularly inspected and maintained throughout the year, and well before winter to replace any worn parts so that they operate smoothly in winter. Most especially, one needs to make sure that the exit door is operating correctly, firstly to check that the mechanism to raise and lower it is timed correctly so that it minimizes the amount of cold air getting into the wash operation and minimizes heat loss. Another to make sure the door does not freeze to the ground. “That is a typical problem one encounters in winter,” says Braithwaite. “Obviously, you are using lots of water and so the ground gets very wet. What happens is that when you close your roll-up doors at night, they are touching the ground, and that ground is wet so of course that water freezes overnight and the next morning you may find you cannot get your doors to open.” All recommended working with your door supplier to have them come in and inspect all the door systems to make sure everything is ready for winter.

Preparing staff for winter

Just as it is important to get your car wash operation ready for winter, it is just as important to get the staff prepared as well. It can mean emphasizing to them to keep all walkways and customer entrances and exits clear of snow and properly sanded to prevent slipping. Just as important is keeping staff safe, especially those who are outside guiding and preparing vehicles entering the car wash. It is crucial that they wear proper clothing to keep them warm and dry, for example, wearing an insulated coat or jacket that is water resistant, wearing insulated gloves and hats and wearing proper boots that will keep them warm and dry and keeping their work areas free of anything that might cause them to slip. As well, it is important to rotate staff as well, bringing inside the teams who are working outside to prepare and guide vehicles into the wash bays or tunnel to rest and warm up before heading outside once more. Our experts note that individual provinces provide guidelines for how to protect people working in the cold and those should be reviewed by management and staff. So, a little preparation and training will go a long way to having a well-operating car wash operation and a safe staff over the winter months. OCTANE CCentral.ca

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HOT D O G! 8

November | December 2023 OCTANE

CCentral.ca

Café Orange rebrand turns North Sun Energy’s forecourt customers into foodies

F CCentral.ca

B Y C H R I S DA N I E L S

P H O T O G R A P H Y B Y N E D P R AT T

uel sites with c-stores have elevated and diversified their foodservice. However, in the excitement of adding freshly prepared new food and drink, a staple of the gas station has seemingly been left behind: the hot dog. Rotating on heated rollers, the frank and bun has become boring and tired. While it remains a fixture of c-store chain menus, the attention-getters are now pizza, nachos, taquitos (taco rolls), chicken fingers, empanadas, sandwiches and wraps, and other new-to-the-category additions. But Orangestore—a chain of convenience stores in eastern Canada operated by St. John’s-based North Sun Energy, the corporate entity formed in April from a strategic partnership between North Atlantic’s 55 retail fuel sites, including 24 Orangestore locations, in Newfoundland

and Labrador and Suncor Energy’s retail fuel business— has given the hot dog a modern makeover. Last year, Café Orange, Orangestore’s fresh food on-the-go concept, introduced a new menu innovation: a cheeseburger dog. A blend of beef and turkey stuffed with cheddar cheese, it’s become one of the most popular items on the Café Orange menu. In fact, year-to-date sales are up 105% on hot dogs. “A lightbulb moment for me during the whole menu testing process was the hot dog,” says Sandy Mercer, who was recently promoted to director of marketing (from marketing manager) at North Sun Energy. “In our market, there is no fast-food operator who does hot dogs in a really big way, and so it’s become a corner of the market that has become a USP—unique selling point—for us.” OCTANE November | December 2023

“A lightbulb moment for me during the whole menu testing process was the hot dog,” says Sandy Mercer, director of marketing at North Sun Energy A cheeseburger hot dog is part of what the North Sun Energy team calls “Café Orange 2.0.” North Atlantic first introduced the brand in Orangestore locations in 2008 and the rollout of 2.0 in June 2022 came after an intensive six-month process to revitalize Café Orange. All 24 locations of the foodservice area underwent renovations with bright new signage, wall decals and video screen menu boards. The revamped menu also includes chili cheese nachos, chicken roller bites and a premium line of sandwiches branded “Primo,” including a Chipotle pulled pork sandwich, a chicken carbonara sub sandwich and a cran-tastic turkey sandwich (cranberries are baked into the bread). Still, it’s the cheeseburger dog that has been the welcome surprise. “It shocked me to realize how many people love hot dogs,” says Mercer. “A few of our sites were already doing well in terms of hot dog sales, but the cheeseburger dog has made the category more exciting and dynamic.” And North Sun Energy COO Gordon Kennedy, who was COO at North Atlantic, says you’d be surprised by its wide appeal. “It’s not just young people buying the cheeseburger dog, but older generations,” he says, including millennials and gen X.

Marketing at the forecourt

The refreshed menu has allowed Café Orange to inject some fun into its advertising, with radio spots, signage and social media posts telling consumers they never have to pick between a cheeseburger and hot dog ever again. The forecourt includes branding and signage, 10

November | December 2023 Convenience Store News Canada

like pump toppers, nozzle talkers as well as digital signage. “Every Orangestore is at a fuel site, and everything we see in retail is that customers are pressed for time, and so we wanted to let them know we have a one-stop solution for mealtime when they stop to fuel,” says Kennedy. “We also already had a lot of fuel customers coming into our convenience stores for things like lottery, and so the more we can offer inside, the more a gas station site can be that one-stop convenience for customers.” Working with Curbex on digital outdoor signage at each site, in addition to various billboards in St. John’s metro area, foodservice messaging is also front and centre at EV charging stations. “The rollout of EV in Newfoundland has not been as robust as the rest of the country, but we do have a number of sites with EV charging, and when these drivers are there, we have a captive audience for the 20 minutes or so while their vehicle is charging,” says Kennedy. “And so, we’ve put menu boards outside charging stations to show the food offers inside the store so that people know they don’t just have to sit inside their car and watch Netflix. They can go inside and get themselves a tasty sandwich or a roller grilled treat.” North Sun Energy doesn’t have the marketing budget for TV campaigns, but the forecourt signage along with the radio spots have proven cost-effective. “It’s a marketing medium that has proved very successful in driving awareness of our grab-and-go concept and our entire food service category,” says Mercer, who previously ran her own marketing communications agency before joining North Atlantic in summer 2021. She also has a strong background in retail CCentral.ca

and shopping mall marketing, working in Dubai, Toronto and St. John’s for the likes of Nakheel Properties, RioCan and Ivanhoé Cambridge. “It’s really about ensuring we’re grabbing people’s attention while they’re filling up and driving by—just kind of stopping them in their tracks,” she says. While keeping specific sales results close to their chest, Kennedy says he is pleased by the reception. “I expected our new foodservice to be successful, but I sort of underestimated how successful it would be and how many people would take to purchasing food at our sites,” he says. “But then again, we’re not a typical gas station. Our Orangestores are a step above when it comes to design, marketing and merchandising, and was always a strong brand that attracted people.” Mercer and Kennedy—along with Shannon Brown, foodservice and merchandising manager, who joined North Atlantic in November 2022 from Wilson Fuel Co. and now part of the North Sun Energy team—are already thinking about Café Orange 3.0. “Sandy and I have already talked about it,” says Kennedy. “We have a whole plan for the next foodservice launch, but we wanted to make sure that this was successful and well-integrated before we layered new things onto our sites. We want to be careful because you can overwhelm your operators and their staff.” Besides, Mercer adds that customers are still taking in all the new changes—and eating them up! “While we might be a little bored with some of the new menu items, the market has only been seeing them for about 12 to 16 months now. But we do have a plan for the next phase.”

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Loyalty program helps drive foodservice sales

To help drive engagement, trial and sales of Café Orange’s menu items, Orangestore has tapped into its hugely successful loyalty rewards program, YAY! Customers are given two key fobs with their membership card, earn points on fuel and Orangestore purchases, and can redeem those points equal up to 2% off their total spend. With nine colours to choose from, members also get to earn double their points when their colour of the week is selected. Other YAY! membership perks include giveaways for fun experiences, such as concerts, sporting events and trips. The brand communicates with YAY! members via email, social media, and also POS advertising and forecourt signage. With more than 100,000 active members, membership continues to grow given the strong reception of Café Orange’s refresh. “We have a pretty significant membership base considering Newfoundland has a population of around 520,000. That basically equates to almost 50% of households with a YAY! membership,” says Mercer, confirming that “plans are underway to create exclusive Café Orange offers to YAY! members.” North Sun Energy has found YAY! members visit the gas stations and Orangestores more frequently and have larger basket sizes than non-members. “They come into our stores on a consistent basis, at least multiple times a month,” says Kennedy. “They are a key audience of our foodservice offering.” OCTANE CCentral.ca

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McDougall Energy delivers on vision for expansion with two new locations in Southern Ontario

With the revamp, McDougall introduces a strong convenience offering with the Circle K brand. An elevated coffee program gives drivers and the community another reason to stop by and fuel up 12

November | December 2023 OCTANE

BY TOM VENETIS

Started in 1949, McDougall Energy is a third-generation, family-owned Canadian fuel and lubricant marketer based in Sault Ste. Marie, Ont. Over the years, McDougall Energy has expanded to become a fuel distributor and branded reseller of Esso, Shell and Mobil fuels. In 2017, it acquired Burford, Ont.-based Davis Fuels and that company’s residential, commercial, and industrial fuel supply, delivery, distribution, and dispensing business. That business now operates as McDougall Energy. It also signed a Broker Sales Agreement with Alimentation Couche-Tard, thereby adding the well-known Circle K brand to the McDougall Energy’s retail and convenience store offering. In 2020, McDougall Energy took on Edward Fuels, a multi-channel distributor and marketer of Shell-branded products, including fuels and lubricants. Michael Carroll, director of corporate retail with McDougall Energy, says that the acquisitions of Davis Fuels, Edward Fuels and Dowler-Karn allowed the company to expand its footprint into southern Ontario and to begin to update its retail offerings for purchasers of gasoline at its locations. “Traditionally, our corporate retail business [in Ontario] has been in Northern Ontario, close to home,” he says. “That would be Sault Ste. Marie through to the West of Sudbury and up into Thunder Bay.” Today, Carroll oversees 20 retail locations for McDougall Energy. Two of the most recent are the London Esso Fuel Centre and Convenience in London Ont. and the Strathroy Circle K Shell operation in Strathroy Ont. CCentral.ca

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LONDON, ONT

“Our retail strategy is to continue to make improvements to the locations that we have and through our programs. You have to keep up with the times, to keep up with customer’s needs”

London Esso Fuel Centre and Convenience

Located on Colonel Talbot Road (Highway 4) just south of Highway 401, the London Esso Fuel Centre and Convenience operation was part of the Davis Fuels acquisition and already had both a passenger vehicle fuel operation, as well as one for commercial vehicle fuelling, which operated as Flying M Truck Stop. In addition, there was a small, third-party family-owned restaurant operation on the site. Carroll says the site’s location and sizable footprint, as well as its proximity to the highway, all pointed to the huge potential the site had. It was decided to redevelop the site and bring a strong retail convenience component to the location. Carroll describes it as a complete ‘raze and rebuild’ and the site now boasts eight filling stations for passenger vehicles and a Commercial Cardlock operation made up of four filling stations for commercial vehicles, plus a 2,500 sq.-ft. Circle K convenience store. He sees Circle K as an ideal partner and provider of foodservices for drivers and the community. “Circle K, with their range of proprietary products, are highly regarded in the communities where they operate,” he continues. “Here, there is a selection of great food products that are all prepared and served by the staff and team there, such as fresh pizza, warm breakfasts and lunch sandwiches, as well as a wide assortment of roller grill products.” The site also features large washrooms, a shower and room for a future eat-in area, making it especially attractive to those using the Commercial Cardlock pumps. CCentral.ca

The London, Ont. site is well-located for the new 2,500-sq.-ft. store that features a selection of fresh food items, from warm breakfasts to sandwiches, pizza and roller grill products OCTANE November | December 2023

Scott Neufeld, vice-president, auto market with McDougall Energy, says that site with its Commercial Cardlock pumps and Circle K will only get busier in the coming years because of all the new development happening in the area. He sees it becoming a much-desired destination for travellers and truck operators. “The shower facility is something we offer to the commercial drivers and that just gives them one more opportunity to see the location as a one-stop convenience and shopping destination after they have logged many miles of highway driving,” says Carroll. “It gives them the opportunity to get something to eat and drink, to sit down and enjoy fresh food offerings and clean up before getting back into their vehicles and heading out to their final destinations.” The Strathroy Circle K Shell operation is located south of Highway 402 in a fast-changing neighbourhood with a nearby Holiday Inn Express, Tim Hortons and other soon-to-be announced QSR developments. Carroll says the location was a unique opportunity for McDougall Energy as it complimented plans to grow the company’s retail operations in Southwest Ontario. “We are the first retail and fuel location south of Highway 402,” Carroll adds. Neufeld adds that the location has great potential for growth which will translate into increasing business for the operation. He says it is part of McDougall Energy’s strategy for deciding on potential locations for new fuel and retail operations. “The key

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is to have locations that have a lot of potential for growth and income opportunities for those who will operate them, whether that be McDougall Energy at our corporate owned retail sites or any of our dealer partners. So, it is critical to find the right location in the right area.” This new location, a ground-up build, features a 1,650 sq.ft. Circle K convenience and a forecourt featuring four pumps with eight filling stations, providing a full complement of Shellbranded fuels, including V-Power Diesel. “Our retail strategy is to continue to make improvements to the locations that we have and through our programs,” Carroll adds. “You have to keep up with the times, to keep up with customer’s needs.” Carroll adds that the two locations with their fuel branding and well-known convenience store partner are all part of the company’s long-time strategy of providing value to customers. “These globally known petroleum providers complement our business in the sense that they emphasize the quality of products we bring to everyday customers,” Carroll continues. “In today’s world, everyone wants value in what they are doing and the loyalty programs that both Shell and Esso offer to the customer, be it through Esso and PC Optimum, and Shell through Air Miles and CAA, there is a return value to the customer.” Neufeld says there are plans by McDougall Energy to open as many as four new locations next year. OCTANE

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