__MAIN_TEXT__

Page 1

    

We’re really on top of      the food trends. I think of that as my real job.”

21

       FEATURE TORONTO OFFERS MARCH 7-8 PAGES 32-33

PAGES 36-37

      

Attila Szanyi, owner, Popbox MicroMrkt, Toronto, ON.

The alternative

C-STORE PM42940023 • $12.00 CCentral.ca @CCentral360 JANUARY | FEBRUARY 2017

POPBOX MICROMRKT IS REDEFINING WHAT IT MEANS TO BE CONVENIENT IN DOWNTOWN TORONTO


    

          

JANUARY/FEBRUARY 2017

70

Volume 22 | Number 1

    

          

    

          

24

28 ADVERTISERS

CONTENTS

CCentral.ca....................................11, 23

04 Editor’s Message

The Convenience U CARWACS Show – Toronto................. 6 Hershey Canada Inc............................ 5 Mondelēz Canada Inc.................... 2, 15 NACDA ............................................. 20 Nestlé Canada Inc............................. 13 Perfetti Van Melle.............................. 31 Promo Select – Period 1.............. 32-33 Le Salon des dépanneurs du Québec.......................................... 9

Stick and carrot

07  Chew On This Upcoming industry events

08 Social Media Alcona Esso grows business through engagement

10  Build A Buzz For the Love of the CupTM

12  Data Mine Foodservice by the numbers

CCentral.ca

21

14  Expert Opinion Tax time trauma

16  Tobacco Q&A Customers talking

18  NCIS overview Telling our story

21  Leadership Q&A

NEW OFFERS PAGES 32-33

28 COVER

The alternative c-store Redefining downtown convenience

34  By the numbers Our annual review of c-store performance

Couche-Tard CFO, Claude Tessier

24  Building loyalty Québec c-retailer grows his business by being community responsive

36  Toronto Show

preview Canada’s biggest c-retail event

JANUARY | FEBRUARY 2017

3


    

           TM

EDITOR’S MESSAGE

70

CANADA’S CAR WASH & PETROLEUM MAGAZINE

2300 Yonge Street, Suite 1510 Toronto, ON M4P 1E4 (416) 256-9908 (877) 687-7321 Fax (888) 889-9522 www.CCentral.ca

    

          

VICE PRESIDENT & GENERAL MANAGER      Michael Cronin mcronin@ensembleiq.com

          

Editorial EDITOR Kelly Gray kgray@ensembleiq.com

STICK AND CARROT

ONLINE EDITOR Nikki Lockington nlockington@ensembleiq.com TRANSLATION Danielle Hart

Advertising Sales DIRECTOR OF PARTNERSHIPS David Wood dwood@ensembleiq.com

Good government works through conciliation and thoughtful compromise. Working with people requires a bit of give and take. So, with this in mind you can’t blame convenience retailers for wondering why they have been singled out for harsh treatment from government regulators. Every day Canada’s more than 26,000 convenience retailers face challenges for selling a legal product tobacco. There is no other example of governments reaching so deeply into otherwise viable businesses with the specific goal of hurting trade. No where in the discussion about tobacco retailing is there an effort to assist the c-store channel in making changes to its business model. If governments want c-retail to sell less tobacco make a business case and offer something as recompense. For example, Ontario had an opportunity to allow c-retail into the lucrative beer trade. This would have helped reduce losses caused by government tobacco reduction strategies. Even though c-retail is well established as the country’s best gatekeeper of age restricted products, it was decided to give this plum to the grocery channel. In Quebec where beer and wine has long been the domain of small neighbourhood stores, operators shine with selection and customer education. When the time comes to reduce tobacco sales further these operators have an edge in the market that they have earned through best practice. Outside of lottery, tobacco is c-stores’ top category. In fact, it outweighs its nearest category rival by more than $3billion. So far c-retail has been offered nothing to help them bridge the gap between tobacco sales and declining revenue in a lynchpin sector. If government wants business to change it must create conditions that do not cause harm. Where is the carrot in the government’s approach? Currently there is only a stick with which regulators are beating retailers in an approach that is more ‘my way or the highway’ than partnership.

– Kelly kgray@ensembleiq.com standard

no gradients

BE A PART OF OUR COMMUNITY!

4

E-newsletter

JANUARY | FEBRUARY 2017

Convenience Central

@CCentral360

SALES & EVENTS COORDINATOR Claudia Castro

Design & Production MANAGER, PRODUCTION & DESIGN SERVICES Derek Estey PROJECT MANAGER Michael Kimpton ART DIRECTOR Nancy Peterman YCM DISTRIBUTOR ADVISORY BOARD G. Stevens, R. Robertson, ITWAL Limited; L. Hand, J.B. Hand & Sons Ltd.; T. Tetlock, Pratts Limited; J. Beaudry, J.P. Beaudry Ltée. YCM EDITORIAL ADVISORY BOARD Brian Benison, Bic Inc.; Melani Melnyk, Mondelēz International; Tim Corkum, Rothmans, Benson & Hedges Inc.; T. McGowan, Nestlé Canada; Sreeram Rajagopalan, PepsiCo Foods

YCM/OCTANE is published six times a year by Stagnito Partners Canada Inc. YCM/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 welcomed, but cannot be acknowledged or returned. © Copyright 2017. All rights reserved. No part of this publication may be reproduced in any form, including photocopying and electronic retrieval/retransmission, without permission of the publisher. Printed at Web Offset Publications Ltd. in Canada PM42940023

watermark

stacked logo (for sharing only)

CCentral.ca

SALES REPRESENTATIVE Elijah Hoffman ehoffman@ensembleiq.com

CHANNEL ALLIANCES

ConvenienceChannel CCentral.ca


GOURMET JERKY

KRAVE Sea Salt Original Beef Jerky is a sweet, savoury traditional jerky flavour that delivers premium taste with a�ributes coveted by snack consumers1: • No preservatives added* • No artificial flavours • Good source of protein AVAILABLE DECEMBER 2016

• Low fat *except those naturally occurring in the ingredients

• KRAVE Jerky is #2 medium pack-size jerky brand2 • Top 4 jerky innovation items in $ volume2,3 • Top 4 jerky innovation items in unit volume2,3

Contact your Hershey Sales Representative 1-800-268-1304/1-800-361-8245 (Quebec) or your Wholesale Representative for further information KRAVE Jerky Assorted Prepack

48 ct

12 KRAVE Jerky Sea Salt Beef, 12 KRAVE Jerky Chili Lime Beef, 12 KRAVE Jerky Sweet Teriyaki Pork, 12 KRAVE Jerky Sweet Chipotle Beef

KRAVE Jerky Assorted Prepack

72 ct

12 KRAVE Jerky Sea Salt Beef, 12 KRAVE Jerky Black Cherry Barbecue Pork 12 KRAVE Jerky Chili Lime Beef, 24 KRAVE Jerky Sweet Teriyaki Pork 12 KRAVE Jerky Sweet Chipotle Beef

1 Lif LLifestyle ife f styl t le is is dictating di tati dict ting sh shifts hift f s iin snack snacking ki as consumers demand king demand d on on-the-go, -the-go, thh por portable t ble snacks tabl snacks k wi with ithh hhealth eallthh att attributes. ttrib ibutes. b t SSnacking nacki king b beyond eyond d th the he SSnack Snacking ki g A kin Aisle: il H isle: How ow ttoo ttake akke a b bit bite ite outt off Canad C Canada’s d ’ snack da’s snacking ki g d kin dema demand nd d–N Nielsen i l 20 ielsen 2015 15 2 “Innovation” = less than 52weeks in market, “Medium pack size” = (50g – 149g) 3 Nielsen Strategic Planner, $vol, $SPPD, TL Units, TL Meat Snacks, L12 weeks PE May 28, 2016 National excl. C&G


GAS

ConvenienceU.ca

WASH

FREE TRADE SHOW PASS WITH PROMO CODE YCM

CONVENIENCE

REGISTER ONLINE TODAY!

TORONTO

MARCH 7-8, 2017

CONGRESS CENTRE


CHEW ON THIS standard

no gradients

watermark

stacked logo (for sharing only)

CCentral.ca

E-newsletter

Convenience Central

@CCentral360

ConvenienceChannel

CALENDAR OF EVENTS OCSA THE RACE IS ON MARCH 6, 2017

Woodbine Entertainment Centre, Toronto, ON ontariocstores.ca

OPCA ANNUAL CONFERENCE MARCH 6-8, 2017

International Plaza Hotel, Toronto, ON opcaonline.org

THE CONVENIENCE U CARWACS SHOW TORONTO MARCH 7-8, 2017

CANADIAN FUEL MARKETING CONFERENCE APRIL 10-12, 2017 Sheraton Centre Toronto Hotel, Toronto, ON cipma.org

NEW LOCATION! The Toronto Congress Centre, Toronto, ON convenienceu.ca

THE CAR WASH SHOW APRIL 4-6, 2017

LE SALON DES DÉPANNEURS DU QUÉBEC SEPTEMBER 19-20, 2017

Las Vegas Convention Centre, Las Vegas, NV carwash.org

Place Forzani, Laval, QC salondec.com

CCENTRAL E-NEWS Get a dose of industry news delivered directly to your inbox. Sign up for CCentral E-News online at CCentral.ca!

WISE WORDS

Sign Up

CCentral.ca

! T S E T ARE YOU A N O FRIEND OF THE C COMMUNITY? Fisherman’s Friend wants to know how you support your community. Fill out the survey for your chance to win exciting prizes.

“There’s something nostalgic about the role c-stores play in their communities. It’s about that connection, and it’s something I think most of us can fondly remember.”

Visit CCentral.ca/friend-of-the-community to learn more!

Anna Kothawala, President, National Convenience Stores Distributors Association

Turn to PAGE 18 to learn more about the top takeaways from the National Convenience Industry Summit! CCentral.ca

JANUARY | FEBRUARY 2017

7


SOCIAL MEDIA

Q&A

5 QUESTIONS

Alcona Esso has hundreds of engaged followers on social media. Here’s how owner Scott Knack and his team keep that number growing. BY NIKKI LOCKINGTON Q: WHY DID YOU DECIDE TO CREATE AN ONLINE PRESENCE FOR YOUR BUSINESS? A: We felt people spend more time on electronics (cell phones) than reading print and we wanted to reach them. Our staff members are all on these social media sites as well. My wife and I are always on them. It’s everywhere! You must have a presence on them now or else you will have a huge disadvantage in business. I don’t find it takes up a great deal of time, but you have to put in the hard work to see results.

@AlconaEsso Gas Station, Oil Lube & Filter Service, Convenience Store in Innisfil, Ontario

Q: WHAT’S YOUR FAVOURITE SOCIAL MEDIA PLATFORM AND WHY DO YOU PREFER IT OVER ALL OTHERS? A: I would say Facebook would be my favourite, however, I know some of the younger staff like Instagram a little more. The younger staff members like the pictures, but I like Facebook more for the interaction and feedback.

1,768

people like this

Q: HOW DID YOU GAIN THE FOLLOWING YOU NOW HAVE?

4.6 « 4.6 of 5 stars

8

JANUARY | FEBRUARY 2017

A: We gained followers by doing weekly giveaways. It helped promote new products or new services that we added to our gas station. We also worked with other businesses that gave us some prizes to give away to our customers. It was a nice way of keeping business in the community. Also, we ran a promotion in our lube shop, where customers who liked our Facebook page could get $5 off their oil change.

Whether their comments are negative or positive, you have to respond.”

Q: HOW MUCH TIME DOES SOCIAL MEDIA TAKE UP FOR YOU AND YOUR STAFF? DO YOU HAVE HELP FROM YOUR EMPLOYEES, OR IS IT JUST UP TO YOU? A: Kelsey is one of my managers and she does 90% of our social media. From replying to comments and making up the graphic design for our posts, she spends roughly one or two hours per week. Whenever there is down time she runs upstairs and creates some posts and schedules them throughout the week. Let’s be honest, every employee has their cell phone on them at all times! It’s easy to take a picture and make a post. It only takes a minute! Q: WHAT DO YOU THINK MAKES YOUR SOCIAL MEDIA PRESENCE STAND OUT? A: What makes us stand out is how we respond to people. Whether their comments are negative or positive, you have to respond. If you’re not on social media, you don’t know if other people are talking bad about you! Also, be consistent on posting and don’t always post about business – make sure you post about community events, too. For example, you can share Santa Clause parade details, information about community pitch-in day, or even news items that affect everyone like changes to parking bylaws. We always try to remind the people in our community about events or social things happening around them.

CCentral.ca


WHERE BUSINESS HAPPENS! R E B EM

0 2 9 1 7 T

SEP

1 0 2 CE PLA

L AVA

I, L ZAN

sal

m o c . c onde FOR


BUILD A BUZZ

CONSUMER PROMOTIONS

FOR THE LOVE OF THE CUP !

REESE® and the NHL® want to give your customers a chance to win an experience money can’t buy BY NIKKI LOCKINGTON You’ve heard of the REESE® Bite into the Cup promotion from NHL® and REESE®, right? Well now it’s time for the next promotion: REESE® For the Love of the CupTM! Beginning in March, this consumer promotion will coincide with the buzz surrounding the the NHL® hockey season. Your success with this promotion comes down to how you merchandise it in store, so be sure to locate the prepack in a high-traffic spot, and make use of any additional POS materials that will draw attention to the exciting prizes. Because, don’t forget, REESE® is the number one singles bar in English-speaking Canada1, and 46% of NHL® fans often make unplanned purchases because of NHL® promotional offers2. It’s the perfect match to help you build sales in store!

Retailers can order the prepack up until the stopship date of May 27, 2017, and the grandprize winner will be drawn on July 8, 2017!

5 THINGS YOU SHOULD KNOW

ABOUT BOOSTING SALES WITH FOR THE LOVE OF THE CUPTM: 1. ENTERING IS SIMPLE.

Consumers can purchase specially-marked REESE® products and enter the PIN code at REESEloveofthecup.ca. If they find one of 500 printed Stanley Cup® Trophies on the REESE® cup, they have a chance to win the grand prize*.

2. MONEY CAN’T BUY PRIZES THIS EXCITING.

Consumers have a chance at winning Ultimate NHL® Fan Prizing, and that means one of 500 Sweet NHL® prize packs and a shot at the grand prize – a Stanley Cup® Experience.

10

JANUARY | FEBRUARY 2017

3. REESE® CONTINUES TO DRIVE 5. THE PROMOTION RUNS CHOCOLATE CATEGORY GROWTH. UNTIL JUNE 30TH. REESE® singles bars are growing at a rate of +12%3, and REESE® is the number-one brand in the king chocolate segment, outpacing the whole segment by +3.1%1.

4. THERE ARE 17+ MILLION NHL® FANS IN CANADA2.

The NHL® is Canada’s number-one sports property, and that means big opportunities for retailers who showcase this promotion successfully in store. In fact, NHL® fans prefer “Money Can’t Buy” NHL® experiences as prizes2, so this promotion will no doubt catch their attention and incent engagement.

Retailers can order the prepack up until the stop-ship date of May 27, 2017, and the grandprize winner will be drawn on July 8, 2017!

*No purchase req’d. Open March 15/17 - June 30/17 to legal residents of Canada over age of majority. 500 NHL®/Reese® Prize Packs avail at outset (will diminish as awarded). Approx. retail value $50. Odds at outset: 46 g pack: 1:16,330; 62 g pack 1:16,330. 1 Grand Prize avail to be won by Prize Pack winners: Trip for two (2) to see the banner raised at the home arena of the 2017 Stanley Cup® Champions and other NHL® experiences (approx. retail value $7,000 based on sample Vancouver to Fort Lauderdale flight; actual value may vary). Odds of a Prize Pack winner winning the Grand Prize no worse than 1:500. Math skill test and internet req’d. Rules: reeseloveofthecup.ca.

CCentral.ca

Sources: (1) Nielsen MarketTrack, National 5 Channel (GDMM, C&G, REM Grocery EXCB + V), L52 weeks PE October 15, 2016; (2) NHL® IMI SponsorPulse WII 2015/2016 Season; (3) Nielsen MarketTrack, GDMM, L52 Weeks, PE October 15, 2016

TM


GET A DOSE OF CCENTRAL NEWS DIRECT TO YOUR INBOX.

Receive the latest convenience, gas, and car wash news, along with notifications, updates, and special discounts for live events happening near you!

SIGN UP ONLINE

CCentral.ca


DATA MINE

FOODSERVICE

FOODSERVICE BY THE NUMBERS

Foodservice in Canada’s convenience-retail sector is valued at $7 billion with nominal growth of +0.4% projected this year. Are you paying attention to foodservice to drive gains in your c-store? BY KELLY GRAY IBISWorld Industry Analyst Andrew Alvarez, suggests that the convenience store industry is in the mature stage of its life cycle. His expectations are that gains to 2021 will be slow at just 0.1%. Behind this lag in sales are expected declines in key categories as Canadian society reigns in its demand for tobacco and lottery. Operators are looking harder at foodservice to help them fight back.

Percentage of c-gas locations that offer foodservice: (Nielsen, 2016)

HOW OFTEN DO CANADIAN SHOPPERS LOOK TO C-STORES/GAS BARS FOR FOODSERVICE?

BC 39.3% AB 22.3% SK 18.8% MB 36.5% ON 46.4% QC 25.8% NB 16.6% NS 26.6% PEI 35.7% NL 18.4%

What would incite customers to buy more foodservice at Canada’s c-stores? The 2016 Technomic study asked more than 500 people about key drivers, and here’s what they said:

In 2014, 36% of c-store and gas bar shoppers bought retail foodservice items. This grew to 42% in 2016. In 2014, 30% of c-store shoppers bought items prepared in-store. This number also grew with 34% now looking to c-store and gas stations for food items made on site (Technomic, 2016). “Visits and foodservice purchases are on the rise at c-stores,” says Technomic Consumer Trends analyst, Charles Winship. “As c-stores continue to invest in the quality, health and freshness of their prepared food and beverage programs, they will increasingly compete with restaurants from both meals and snacks.

36%

would be attracted to more specials and promotions saw higher quality prepared food as a key point in getting them to buy more

35%

wanted more healthful items

33%

felt higher quality prepared drinks would be an incentive to buy more food items at c-stores

30%

were interested in more unique offerings

21%

would buy more if the store offered more namebrand foodservice products would buy more in-store foodservice if it came from a made-to-order food station

37%

19%

12

JANUARY | FEBRUARY 2017

“Expect food-forward c-stores with a larger format and greater emphasis on fresh foods to increasingly emerge. A majority of consumers find these c-stores very appealing, and many would be likely to purchase foodservice at these locations than at regular stores.” Speaking to the power of speed, innovation and brand familiarity to drive out-of-home food spending, NPD’s Executive Director Canadian Foodservice, Robert Carter has found that QSR, with 65% share of the $6.6 BILLION annual customer visits to restaurants, continues to outperform the overall market. “Customer traffic at QSRs outpaced all other segments with gains of over 1%. Spending at QSRs also outpaced the overall market. Sales growth at QSRs increased by over 4%, primarily driven by average eater cheque gains, which resulted from increased spending at the morning meal. A strong focus on menu and beverage innovation from the leading QSR chains was effective in driving customer traffic and increasing spending. “Home Meal Replacement (HMR) has been one of the better performing restaurant segments of the Canadian foodservice industry over the past five years. HMR is competing head-to-head with QSR, a top-ofmind destination for 40% of HMR buyers.

What are people buying? According to the same Technomic study, “Noncoffee beverage-only visits are now the top day part among monthly visitors, though coffeeonly visits still lead for weekly visits.”

On a monthly basis: 62%

of c-store foodservice customers are there for a non-coffee purchase

58% 36% 38% 41% 44% 29% 40%

said they come in just for coffee want breakfast look for mid-morning snacks are in the market for lunch come in for a mid-afternoon snack are interested in dinner are looking for an evening or late night snack Of those looking for a late-night snack, 57% are age 18-34, while just 34% are over age 35

CCentral.ca


l e Fe bbles the

Bu

NEW

t l e M

• Drive incremental sales by displaying four new Single bars from Nestlé • KIT KAT is the #1 chocolate brand in Canada and growing 17% L52W* • NEW KIT KAT Chunky Cookie Dough is a global KIT KAT launch ALL TRADEMARKS ARE OWNED BY SOCIÉTÉ DES PRODUITS NESTLÉ S.A., VEVEY, SWITZERLAND AND USED UNDER LICENCE. ©2016 NESTLÉ *Nielsen MarketTrack National All Channel Period Ending October 15, 2016

TM


EXPERT OPINION

TAX PLANNING

TAX TIME TRAUMA?

5 ways to ease the pain

BY BRUCE BALL, FCPA, FCA, NATIONAL TAX PARTNER, BDO CANADA LLP INCOMING VICE-PRESIDENT – TAXATION, CHARTERED PROFESSIONAL ACCOUNTANTS OF CANADA

Many business owners dread the time and expense associated with tax season. But it actually can be a great time to take stock and improve your financial situation. As a small retailer, here are five things you can do to make tax filing easier and even ring up some tax savings.

TAX DEADLINES

MARK YOUR CALENDAR INDIVIDUAL EARNING BUSINESS INCOME: _Unpaid personal taxes for 2016 due May 1, 2017 (as April 30, 2017 falls on Sunday)

_Tax return due June 15, 2017

CORPORATION:

_Unpaid corporate taxes generally due three months after year-end _Tax return due six months after year-end

14

1. GET YOUR RECORDS IN SHAPE Start by making sure you have the needed records on hand. If you run your business through a corporation, the Canada Revenue Agency (CRA) will want to see formal accounting records — and an income statement and balance sheet prepared to the corporation’s year-end. Gather your receipts for business expenses and other documentation, such as paid invoices, along with paperwork to prove the income you’ve made, including cash register summaries and bank statements. If the CRA audits you and you can’t produce the necessary records, your tax costs might rise. For example, your business expenses could be rejected or the CRA might think you’ve earned more income than you reported. You’ll need to keep the records for at least six years, and longer in some cases. Not a corporation? You still need to keep detailed records, but formal financial statements aren’t required. 2. RETHINK HOW YOU GET PAID Deciding the best way to draw funds from a corporation for personal use is tricky. You can pay yourself by salary or dividends (or a mix of both), and each method has its pros and cons: • Your corporation can’t deduct the dividends it pays you, but the personal tax rate for dividends is lower than for salary. • Your corporation can write off your salary (if reasonable), and it will build room for taxdeductible RRSP contributions. However, you and the corporation will pay Canada Pension Plan premiums on your salary, and your salary will be subject to source deductions.

JANUARY | FEBRUARY 2017

Whatever you decide, don’t mix personal and business transactions. Your corporation should have its own bank account. Money you need to live on should be paid to your personal account as salary or dividends. 3. KEEP IT IN THE FAMILY Do family members work in the business? Pay a salary and you can deduct it from your corporate or self-employment income. Again, you’ll need to document things fully. The CRA keeps an eye on money paid to family members. Be ready to prove how many hours your family members put in and whether the amounts you paid are close to what you’d pay a non-family member for the same work. 4. CONSIDER BRINGING IN A PRO Should you prepare your tax return yourself or hire a Chartered Professional Accountant? That depends on the complexity of your business structure. If you have corporation, you might have a tough time figuring out how to complete your corporate tax return, draw income from the business and pay the least tax, and deal with other compliance issues. Although professional advice comes at a cost, you’ll be confident that you’re not paying too much tax and you’ll have an expert on your side should you be audited. On the other hand, your personal tax return might be straightforward, with only your income from salary and/or dividends to report, along with the usual employee deductions and credits. If you don’t use a corporation, your tax affairs will be simpler. Still, reporting business income and claiming expenses correctly can be challenging, and you might want to consider getting professional advice. 5. FILE YOUR RETURN AND PAY TAXES ON TIME Finally, an easy way to keep your tax bill down is to file your return and pay your taxes when they’re due. Different costs apply for late returns and payments, so if you can’t meet one deadline, you can still save money by meeting the other. CCentral.ca


CONSUMER PERSPECTIVE: TOBACCO

CUSTOMERS

talking YCM sat down with groups of smokers in several Canadian cities to learn about some of their views on tobacco amid the changes to regulations governing the category. Here’s what they had to say. BY KELLY GRAY

16

JANUARY | FEBRUARY 2017

Q: Have you been able to easily find your preferred brand?

A: LYNN (TORONTO) About two years ago I noticed Craven A (Blue package) was becoming more of a challenge to find. I discovered that it had to do with how the products were being delivered. Once there were middle men involved in the distribution, but now its all done by the tobacco companies. I have been going to the same convenience store for the past eight years and I can depend on this location to always have my brand in stock for me. In the US I go to Walgreens. A: ALEX (TORONTO) I always go to the convenience store in the lobby of the building I work in. I smoke Pall Mall Red 25s. They always have them in stock. I won’t accept a substitution. CCentral.ca


A: HELEN (TORONTO) The packaging on my brand was changed. Now I have to wonder if this is the same brand I used to smoke. They took the ‘Smooth’ word off the pack. A: RUSSEL (WINNIPEG) I buy at any 7-Eleven. I live in front of a 7-Eleven. It’s convenient and they always have my brand.

Q: Are you interested in new tobacco products? A: ALEX (TORONTO) I don’t want to try menthol and I don’t like the Burst. In France we used to see a lot of flavours but now it seems it has stopped. I started with DuMarier and have gone over to Pall Mall for the price. A: DAVID (KINGSTON) I’m always trying to quit. I like the product I know and cost is a factor in my decision. However, I am not swayed by ‘two for’ offers like buy two packs and get $1.00 off. I’m going to quit again and I’m cutting back. A: PARRISH (CALGARY) I like the convertible filter cigarettes. I like the burst ball. You can convert to menthol if you want. I like the option. When I ask for them they [the clerks] never seem to know about them. They have to take five packs out and ask me which one has the burst. A: RUSSEL (WINNIPEG) I’ve tried Export A Gold. They are expensive. My boss gives them to me. I also like Belmonts, but also too expensive. In my mind more money means less harsh. A: PARRISH (CALGARY) Not crazy about Captain Blacks. We smoked them in high school. Don’t think much about flavoured cigars. In high school it was always girls that had these. They were always pulling some of these out of their purses. My boss uses chew. He tells us he doesn’t like the pouches. Doesn’t give him the buzz he wants. I tried some from the tin he would leave in the truck. Gross! A: RUSSEL (WINNIPEG) I brought little Cohibas from Cuba. They were cool.

Q:Where do you shop for tobacco products? A: HELEN (TORONTO) I go to c-stores and gas stations to find cigarettes (Players). A: PARRISH (CALGARY) 7-Eleven is perfect for me because I can stop in on my way to work when I get coffee. I think 7-Eleven it has the cheapest cigarettes. I think Petro-Canada has the most expensive. A: DAVID: (KINGSTON) I’m not a loyal brand smoker. I just started again after a few years and am trying different types. I buy at the reserve where smokes are a lot cheaper. If I can’t find the brand I’m looking for I will go somewhere else.

Q: Do you find clerks are offering the service you need when buying tobacco? CCentral.ca

A: PARRISH (CALGARY) I went to a small c-store and the clerk rang me a 25 pack by accident. It happens all the time. These are too expensive. I also find some clerks are rude when you buy cigarettes. Esso and Petro offer better service than 7-Eleven and I think the clerks at Petro are happier to serve. I find clerks at 7-Eleven have attitude. Last time the clerk wanted to keep the change after having to look three times for my brand (Pall Mall Red) A: DAVID (KINGSTON) I’m not usually satisfied with service when I buy tobacco. For example, I recently got a pack I didn’t want. Seems the staff were encouraged to sell this brand. I’ll never go back to this store. However, I like it when clerks make a recommendation. I think I’d like to try a lighter product and if they are knowledgeable they can offer some suggestions. A: PARRISH (CALGARY) I know what I want when I go into the store. I like being able to point to the brand in store because clerks always seem to have trouble. I ask to have different packs when I don’t like the pack picture. The clerks are usually not helpful here. I find the pictures off putting. They don’t make me smoke less. It just takes some of the pleasure out of a bad habit. Buzz kill.

Q: Are you smoking more or less these days? A: RUSSEL (WINNIPEG) I smoke John Players 20s. Never go with king size because I can’t finish them. I buy 25 when I’m going out because I tend to give them away over the evening. At work I smoke seven during the day. On a weekend maybe five, but if I’m drinking I can go through a pack. A: PARRISH (CALGARY) I can’t think of any of my friends that don’t smoke Pall Mall. I read that Pall Mall’s were Kurt Vonegutt’s preferred brand. I like that so I bought a pack. I may not smoke a cigarette all weekend. I smoke at work - maybe 10. A: ALEX (TORONTO) I have gone from 20 to six/10 a day. A: DAVID (KINGSTON) I smoke about 12 a day. My partner smokes so it’s harder to cut back.

Q: What are your views on the current challenges impacting Canada’s tobacco trade? A: DAVID (KINGSTON) Contraband is going to continue being a challenge given the high price of mainstream tobacco. There needs to be some give and take. A: HELEN (TORONTO) I feel for the tobacco companies because cigarettes are a legal product in high demand. For smokers the regulations are just an annoyance, but for the companies it’s jobs and business. A: ALEX (TORONTO) The market is what it is. I don’t think retailers should be compensated if the regulations eat into their business. They should just look for something else to take up the slack.

JANUARY | FEBRUARY 2017

17


NCIS 2016: OVERVIEW

Telling our story The National Convenience Industry Summit drives home the important role c-stores play in their communities BY NIKKI LOCKINGTON The National Convenience Industry Summit kicked off this past September in Collingwood, ON with a video containing a simple message:

C-stores matter in their communities. “The opening video told the story of the importance of the c-store in the progression of a lifetime, so from childhood to old age,” says NACDA President, Anne Kothawala. “That sense of independence starts with the kid who goes to the corner store with a dollar in his or her pocket 18

JANUARY | FEBRUARY 2017

to pick out their own treat for the first time by themselves and it carries through to the elderly, who can’t always drive to the grocery store, but maybe they can walk to the corner store a couple of blocks away to pick up some of those basic necessities or lottery tickets,” she says.

There’s something nostalgic about the role c-stores play in their communities, she says. “It’s about that connection, and it’s something I think most of us can fondly remember.” And with that opening video, the Summit’s 2016 theme of “Telling Our Story and Growing our Business” was launched. The Summit, which was held from September 28-29, 2016, saw record attendance of distributors, retailers and manufacturers. Speakers included radio personality and marketing expert Terry O’Reilly, host of Under the Influence, who provided some very tangible examples of companies and industries that have used storytelling to grow their brand or their marketing strategies. “Paul Hollands from A&W really put theory into action with his presentation. He spoke about the A&W story and how they decided, in the quick service burger market, they were going to be the healthiest out of their competiCCentral.ca

PHOTO PROVIDED BY NACDA

Anne Kothawala, NACDA President


tors. He walked us through their research and how they executed their strategy and how it saw great results,” says Kothawala. “This was a very tangible example of an industry that told its story and a business that distinguished itself from its competition and really had success with it.” For Kothawala, it’s all about tangible information and advice. “From the very beginning with

MARK YOUR CALENDARS

NCIS 2017 WHEN: September 26-28, 2017 WHERE: Le Concorde Quebec, Quebec City, QC HOW: Find out more information at nacda.ca the opening video, we made a conscious effort to make sure that everything was woven together so that people could see that the theme wasn’t just an interesting tagline. We really were making sure that each of the speakers talked about how powerful a collective story is.” Understanding demographics Another focus of the Summit was understanding the changing demographics of the c-store customer base. “Understanding changing tastes, demographics and ethnicities is paramount. This is following up from previous Summits, where we’ve looked at demographic changes. One of our big research items in the past was all about women and what they’re looking for.” In the retail environment in Canada, things are changing. “There are countless retailers and researchers who are talking about this seismic shift and if we’re not on top of some of CCentral.ca

those changing demographics, what will that mean for us as an industry?” asks Kothawala. As she says, the goal of the Summit is to provide all the key stakeholders with tangible information and knowledge they can take back to their workplaces. The Summit offered a forum for discussion amongst attendees about how their respective businesses are changing. Recognizing excellence The NCIS provides an important opportunity for recognizing and rewarding hard work and innovation. It does this with two awards: The Awards of Excellence and the Convenience Innovation Awards (CIA). In 2016, there was a new category in each to reflect the evolving nature of the industry. The Awards of Excellence now chooses a top retailer to receive the Outstanding Retail Leader of the Year award. “Part of the genesis of that is to recognize the affiliation between NACDA, the CCSA and all of its regions, so we thought it was important to make sure we were also celebrating and recognizing our retail partners,” says Kothawala. “In terms of the CIAs, rec-

“In terms of the CIAs, recognizing the changing nature of the industry, one of the growth areas is foodservice, so we added a Meals-on-the-Go category.” ognizing the changing nature of the industry, one of the growth areas is foodservice, so we added a Meals-on-the-Go category. We’re hoping in the coming years there will be more and more participants competing in that category because we really do see that as a growing area,” she says.

Awards of Excellence Winners FULL SERVICE DISTRIBUTOR

Beaudry Cadrin

LIFETIME ACHIEVEMENT AWARD

Dennis Frank

LIFETIME ACHIEVEMENT AWARD

John Di Rollo

OUTSTANDING INDUSTRY LEADER

Marc Gagnon

OUTSTANDING PARTNER AWARD

JTI

OUTSTANDING RETAIL LEADER OF THE YEAR

Ramona Roberts

HUMANITARIAN AWARD

Nestle Canada

OUTSTANDING INDUSTRY CONTRIBUTION AWARD

Michel Poirier

Convenience Innovation Award Winners BEVERAGE CATEGORY

Monster Energy Canada: Punch Monster Mad Dog BETTER-FOR-YOU BEVERAGE CATEGORY

Bolthouse Farms: Strawberry Banana BETTER-FOR-YOU BEVERAGE CATEGORY

A. Lassonde: Oasis Lemon and Honey Iced Green Tea CONFECTIONERY AND GUM CATEGORY

Dare Foods Limited: REALFRUIT Superfruits 180g CHOCOLATE CATEGORY

Hershey Canada: Reese Mix SNACK CATEGORY

PepsiCo Foods Canada: Doritos Dinamita: Chili Limon SNACKS CATEGORY

Ferrero Canada Ltd.: NUTELLA & GO! Pretzel BETTER-FOR-YOU SNACK CATEGORY

KIND Snacks: Caramel, Almond and Sea Salt MEALS-ON-THE-GO CATEGORY

Canadian Trade House: Hot Stuff – Calzones and Baguettes – World Flavours, Chicken Bacon Caesar GENERAL MERCHANDISE CATEGORY

Creative Planogram Company: Dual Tip 8 Pin Micro Charge Cable PEOPLE’S CHOICE

Hershey Canada: Krave Sweet Chipotle JANUARY | FEBRUARY 2017

19


Q&A: VIEW FROM THE TOP

Following the

LEADER Couche-Tard continues its drive to global leadership of the convenience retail sector. We asked the company’s CFO, Claude Tessier, about current and future plans for growth. BY KELLY GRAY

YCM: Couche-Tard acquired Circle K from

Conoco Philips in 2003. Today it’s the company’s largest banner with sites in 14 countries. CoucheTard announced in 2015 that the banner would become the leading face of its c-retail operations outside Quebec. Is the changeover to Circle K moving forward? When will we start to see new signage in Canada?

CLAUDE TESSIER: It’s going to be in the beginning of 2018 that we start the rebranding in Canada. There are already a couple of new sites in Ontario. But for now we are now focusing on the acquisition of the ESSO sites. 2018 rebranding will start and we expect it to be rolled out that year. And we are marching forward in a disciplined manner with 778 locations in North America and 653 locations in Europe. YCM:

WHERE IS THE BRIGHT SPOT IN CANADIAN OPERATIONS? ARE THERE ANY INITIATIVES YOU ARE ESPECIALLY PROUD OF? CT: We just launched Simply Great Coffee (1.5 years ago) in Quebec and now the rest of the sites

CCentral.ca

JANUARY | FEBRUARY 2017

21


Each time we do an acquisition we like to take out the good things from the acquisition and implement them in the current business. We call that stealing with pride.”

in Canada. This program offers drip coffee as well as higher end assortment types and is of the same or better quality as some of our competitors who sells for $4 or $5 a cup. We sell for much less than that. This is a bean-to-cup offering that is freshly ground and brewed. Customers can enjoy a regular coffee or a cappuccino or espresso that is very high quality. This is something we have implemented in our European locations and plan to roll this into all our US sites and Canada. We (Circle K) just won a prize as the Innovator Award for Simply Great Coffee (Hot Beverage Innovator of the Year 2016, CSNews). We are very proud of this and see this initiative as one that will be very successful for us as we move forward. YCM:

HOW IS THIS YEAR PROGRESSING? CT: We are really positive about this quarter (Q2). Last year this quarter was really strong with margins in North America that were not sustainable long term. Last year saw a big drop in gas prices that increased margins close to 0.25 cents in the US. Now we are back to more normal margins and we are showing positive growth quarter to quarter and we are really pleased with the performance in fuel. We grew by 3.5% in same-store volume compared to 2.5% in the previous quarter. We have a soft spot in Canada. The Western part of the country is going through economic difficulties with fuel. The business is not as strong as it could be, but our teams there are working hard to make sure that even through these difficult times we are still gaining share and providing the right offers in store. YCM: THIS PAST AUGUST (2016) COUCHE-TARD ANNOUNCED A $4.4 BILLION BUY OF SAN ANTONIO, TX-BASED CST BRANDS INC. THE DEAL OFFERS ABOUT 2000 SITES IN THE US AND CANADA ON THE CST SIDE AND ANOTHER 1,100 SITES FROM THE CROSS AMERICA PARTNERS PORTION OF CST HOLDINGS. IS THE CST DEAL COMPLETE OR ARE THERE STILL SOME HURDLES TO JUMP? CT: On November 16, 2016 we got the approval from CST shareholders. The only thing left to be done is the approval from the FTC in the US and Competition Bureau in Canada. We are working diligently with these organizations to make sure all the details are in compliance and expect this to go through as well.

22

JANUARY | FEBRUARY 2017

YCM:

WILL YOU HAVE TO DIVEST SOME OF THE CST HOLDINGS TO OTHERS? CT: We have a deal in Canada to divest some locations to Parkland (US$750 Million), a company from out west and this would result in Parkland having more presence in the East. We are pleased with this arrangement and the transaction will take place once we hear from the regulators. YCM:

DO YOU THINK COUCHE-TARD’S CULTURE WILL CHANGE CONVENIENCE RETAILING GLOBALLY OR IS COUCHE-TARD LOOKING TO ITS GLOBAL OPERATIONS TO CREATE CHANGE WITHIN ITS STORES? CT: Our culture is one of co-mingling. We like to bring our company’s way to operate, our structure and our way to manage stores that are efficient. Each time we do an acquisition we like to take out the good things from the acquisition and implement them in the current business. We call that stealing with pride. For example, we have brought good things from our acquisitions of Circle K and Stat Oil. However, it’s really the sum of the parts together that make something greater. With Couche-Tard it’s not 2+2=4 it’s more like 2+2=5 or 6. There are good things happening all over the world and we bring this together so that everybody benefits. YCM:

COUCHE-TARD IS WELL KNOWN AS A COMPANY THAT LISTENS TO THE STORES AND PROMOTES FROM WITHIN. WILL THIS CONTINUE AS THE COMPANY GROWS? CT: We are very focused on stores. It’s our main business unit in Couche-Tard. A lot of our senior vice-presidents that are operating the business come from the stores. Our structure is one where we are really connected to the stores. This is a legacy from M. Bouchard. We must continue the entrepreneurial mindset, continue to care about the stores and learn how we can serve the stores better. It’s (CoucheTard) still an entrepreneurial business and has 26 business units all over the world that started with one store in Quebec that grew to a first business unit, then a couple of other business units in Canada then the US and then Europe. It’s still the same business model. Even being CFO, I’ll be touring the stores in Norway, Scandinavia and Latvia next week. We have management in the stores on a regular basis, not just in the office.

CCentral.ca


WHERE RETAILERS GO TO CONNECT JOIN THE CONVENIENCE COMMUNITY AND GET:

8 ADVICE FROM RETAILING PEERS 8 TIPS FROM TOP SUPPLIERS 8 THE LATEST INDUSTRY NEWS 8 ACCESS TO EXCLUSIVE CONTESTS & PRIZES


R E TA I L E R S P O T L I G H T

BUILDING

LOYALTY BY CHARLOTTE BOULANGER

When he was young, Jacques Bouvier would watch as kids carefully picked out candies for a penny each in his dad’s convenience store. Today, in his own store, he watches as a new generation of neighbourhood children count their coins to buy as many candies as they can afford. Between his youth and June 24, 2016, when he opened Dépanneur Le Repère Gourmand in SaintLambert, QC, Mr. Bouvier had spent 25 years in tourism development and regional products, witnessing the importance of local marketing. As a Saint-Lambert resident, he had an eye on a 1929 building strategically located at 189 Green Street, only 45 seconds from his house. When the owners finally agreed to sell it, Mr. Bouvier made the purchase and started renovating it to accommodate a kitchen, a cold room and beautiful antique merchandising furniture. “I am very strong on personal contact. In this world of text messages, I believe in creating an environment where residents who come in for milk 24

JANUARY | FEBRUARY 2017

I am very strong on personal contact. In this world of text messages, I believe in creating an environment where residents who come in for milk or beer can talk a moment and trade news.” Jacques Bouvier, owner, Dépanneur Le Repère Gourmand, Saint-Lambert, QC.

CHANTALE LECOURS

BY UNDERSTANDING THE NEEDS OF ITS COMMUNITY, LE REPÈRE GOURMAND IS BUILDING A STRONG LOCAL CLIENTELE

CCentral.ca


or beer can talk a moment and trade news,” says Bouvier. He decided to create this business with his daughter in mind. She will graduate from cooking school in the spring and already spends time in the store’s kitchen. Strategic planning It’s essential that all convenience retailers understand the neighbourhood they’re a part of, and that their offering truly addresses the needs of the clientele that walks through their doors. For Mr. Bouvier, this is his mission. “Saint-Lambert is the fourth or fifth city in the country with families with the highest income, and I knew it would be quieter in the summer months while residents travel in Europe or elsewhere. Since 45% of the local people are away during summer months, we set up an ice cream counter during the summer that we replace with other displays and more indoor seating the rest of the year.” The location lends itself perfectly to a free delivery service because the store primarily serves clients within about 600 meters in all directions. Several seniors’ residences, as well as families with children, are a big part of the community. The store offers a menu of ready-to-eat comfort food, such as boeuf bourguignon, lasagna or shepherd’s pie, from Monday to Friday that can be purchased in advance and delivered to the clients. There is no waste because everything is prepared in small quantities; the offer matches the demand. CCentral.ca

By offering high quality products in an attractively merchandised space, Mr. Bouvier keeps his customers coming back time and time again.

JANUARY | FEBRUARY 2017

25


I don’t believe in giving room to equipment for a 6% margin. I don’t work with volume. I target 25 to 30% margins. Here, people take time to talk just like in the old days. I like to look people in their eyes. It may take a little longer to grow the business but that’s what I like.”

26

JANUARY | FEBRUARY 2017

CCentral.ca


QUICK TIPS Reaching out “You can’t wait for customers to come in, you must reach out and get involved in the community as well,” he says. Mr. Bouvier discovered a bridge club close to his store with 40-50 players several days a week. He prepared bridge chocolate bags and brought them to the bridge players. Soon, they were going into his store every week to get more. He also reached out to the business community with offers to prepare candy packages for conventions. By finding creative ways to sell candy, Mr. Bouvier sees increased sales and a faster turnover of product. They hand out free bags of candies to local kids for Halloween; cakes decorated with candies incite clients to order again and again. “We encourage a higher turnover in our candy section. I’m about to make potato candies and we prepare our own taffy.” He also discovered that the local arena does not have a food counter, so he went out there on a Saturday morning and introduced the parents to his coffee. If he sees an opportunity to introduce the community to his offering, he takes it.

High margin and attraction When he chose to set up an attractive ice cream counter, Mr. Bouvier knew it would mean high margins. “I don’t believe in giving room to equipment for a 6% margin. I don’t work with volume. I target 25 to 30% margins. Here, people take time to talk just like in the old days. I like to look people in their eyes. It may take a little longer to grow the business but that’s what I like.” When you walk into Le Repère Gourmand, it feels a bit like stepping back in time. The wide and colourful candy assortment is merchandised in antique display units. In the bottom drawers, the cigarettes are hidden, and he only stocks the brands bought by his regular clients. Beer is also discrete unless there is a contest, like the one held last summer to win a bicycle with an old-fashioned look. The bicycle was displayed in-store to create excitement and make an impact on customers as they entered the store. CCentral.ca

Seeing a smile on his clients’ faces At Dépanneur Le Repère Gourmand, stocking quality products means satisfied, loyal customers. Mr. Bouvier is proud to see smiles on his client’s faces when they come in to pick up the freshly baked croissants he picked up at “the best bakery in the world” and a delicious coffee. On weekends, he brings in French baguettes and loaves. He grabs every opportunity to bring the local residents back into his store as often as possible by offering quality products they can buy more easily (or conveniently) in his store. “People are starting to know me and I know them more and more with each conversation,” he says.

LEARN FROM MR. BOUVIER’S COMMUNITY-MINDED SUCCESS “If clients ask for something three times, they can be sure it will be available the fourth time it’s requested.” This is how he ensures his customers come to his store to buy the kind of coffee, croissants, micro beers or salads they prefer. At Le Salon last year, he and his spouse attended different workshops. He liked the wine and beer workshop to evaluate the potential for his store. “I carry certain micro beers that clients want. But they do not tend to buy convenience store wines, so I have to respect the needs of my clients.” Newspaper ads may not work. Focus on the activities around the store and go out to meet the people who could become regular clients. It could be bringing large thermoses of hot coffee or chocolate to the arena, the knitting club or nearby offices. Match your opening hours to the needs of your community to attract frequent buyers. Putting the prices with taxes included for candies or treats avoids disappointment from young customers, while also making the service faster. Don’t be afraid to move things around in the store according to the seasons or special occasions. Christmas stocking fillers displayed in the window draw in people looking for ideas. Be creative in matching items. “We offer a free bag of fresh popcorn from our bright red machine with beer purchases. They usually end up buying extra bags!”

JANUARY | FEBRUARY 2017

27


COVER STORY:

The alternative

C-STOR POPBOX MICROMRKT IS REDEFINING WHAT IT MEANS TO BE CONVENIENT IN DOWNTOWN TORONTO BY NIKKI LOCKINGTON

28

JANUARY | FEBRUARY 2017

CCentral.ca


RE

We’re really on top of the food trends. I think of that as my real job.” Attila Szanyi, owner, Popbox MicroMrkt, Toronto, ON.

When you walk into Popbox MicroMrkt at the intersection of Dovercourt and Bloor in downtown Toronto, you’ll notice something’s different. It’s not quite a convenience store, a coffee shop, a health food store and it’s definitely not a grocery store. It seems to exist in a space somewhere between all of these well-known models.

STEPHEN ARMSTRONG

That was the goal, says owner Attila Szanyi. Before opening in April 2015, Szanyi and his business partner began to look at the convenience store experience in the downtown core. “So many stores operate under a tired model but they’re ever present on the landscape. The average corner store in the city is incongruent with where the food and lifestyle trends are going in the population. “We wondered, can we do this model but with healthier foods? It’s really in the space between health food store and your neighbourhood 7-Eleven,” he says. Defining the offer Popbox MicroMrkt is about one-third café, and two-thirds retail, which Szanyi calls the defining feature of their offering. “We have coffee, fresh foods, pastries, and grab-and-go salads that really drive a lot of traffic in the mornings and afternoons, and then we find it switches CCentral.ca

over more to grocery in the evening as far as revenue is concerned.” But the products on the shelves aren’t products you’ll find in many other spots around the city. The standards of the food is different, he says, noting that they offer premium products, causing a lot of their customers to refer to them as a tiny Whole Foods. In addition to the café and fresh-food offering, there’s also artisanal chocolate and sodas, Kombucha, organic meat, healthy snacks, and a variety of organic, raw, vegan and gluten-free options. Sourcing products “We are known for a very selective and curated offering of food, so things you won’t find commonly at Shoppers or Loblaws, and that’s more and more the direction I enjoy going in with our offering because our customers seem to respond well to it,” he says. “That’s what drives me. I enjoy working really JANUARY | FEBRUARY 2017

29


QUICK TIPS

LEARN FROM POPBOX MICROMRKT’S SUCCESS 1. FIND YOUR MARKET. Examine your

hard to find the most interesting stuff coming up. We’re really on top of the food trends. I think of that as my real job.” Sourcing the products they carry is a lot of labour. They work with 55-60 different vendors, some of which deliver weekly. But, there are many products that they get straight from the manufacturer; the people who are designing it and making it locally. “That’s where the real work comes in and that’s when I realized why what we do is not commonly done. You have to push hard, go deep and maintain on a weekly basis.” Coming to terms with spoilage If you’re going to freshen up your offer, you’re going to have to come to terms with some wastage. “I learned why the existing convenience store model is so prevalent, and it’s because everything is shelf stable. There’s a lot of spoilage in our model. Some of our top sellers, like unpasteurized cold pressed juices have a three-day shelf life and they’re also quite expensive, so loss is costly. Shelf life has to be managed carefully and constantly,” he warns. But the bottom line is this: you have to have products on your shelf. Empty shelves aren’t worth it. “You have to have the product available to the customer. There’s a certain aspect to the draw a product has, so it might be a loss leader – for example we don’t make profit on sandwiches when all is said and done – but the reality is that the customers who buy those sandwiches also buy some groceries that are more profitable for us. You really have to gauge that. I really try not to shy away from a small amount of wastage. You need to have products on the shelf and sandwiches in the cooler.”

neighbourhood and your customers. Is there something you can excel in that will set your store apart from other c-stores in the neighbourhood?

2. SOURCE PRODUCTS LOCALLY. You might not

be able to source as many specialty products, but consider ‘locally made’ or ‘healthier fare’ sections in your store that will allow you to gauge how these items sell. Fine tune from there.

3. KEEP WORKING AT IT. If you find

something that works, don’t sit back and rest on your laurels. Keep evolving your offer so shopping at your site is a fresh experience for all customers, whether it’s their first visit or their 50th visit.

From the product assortment on the shelves and in the coolers to the coffee and the pastries, Popbox is all about quality and standing out with a unique offering.

30

JANUARY | FEBRUARY 2017

CCentral.ca


The opportunity of marketing If you’re walking down Bloor or Dovercourt, you might just run into an attractive sign urging you to stop into Popbox for what they have on offer that day. “There is a certain amount of new customers every single day who find us because of our signage or they come across us online. Signage has been really effective for us. We have a few A-frame signs with attractive graphics on them to pull in one or two new people every single day. That has a lot of value when you’re dealing with a local population and only a certain number of those people are daily customers. We have a very dependable daily cycle of regular customers, but you need those new people every day.” Popbox is on Instagram and Facebook. However, just being there is not enough. Szanyi explains that success means using social media in an interesting way. “Instagram is the social media platform that I find is most conducive to food. Something that’s been really great is that we’ve made a lot of connections in the industry via Instagram. We’ve connected with local makers, so we’ve actually acquired some really great products through Instagram because of our presence there. There’s a local food community on Instagram and that’s exactly what we’re looking for,” he says. Szanyi has plans to work with a social media marketing company in San Diego, CA to ensure his

“ social media and online marketing is as effective as it can be. “I’d say we’re playing around with all of these social media platforms, but not using them as fully mature business tools yet.” With a successful first year under their belts, plans for expansion seem like the logical next step. But Szanyi isn’t looking to move on to something else until Popbox MicroMrkt is running just the way he wants it to. “We’re fine tuning at this moment, but I don’t think putting all this effort into this one store without plans for expansion would make any business sense,” he says. “Before expanding, I think it’s important to get the model down.”

We’ve connected with local makers, so we’ve actually acquired some really great products through Instagram because of our presence there.”

The Fastest Growing Sugarfree Gum! 23% th Gro.w YA* vs

Contact your local representative to learn more about our offers 1-800-268-5542 *Source: Nielsen Strat Planner; National all Channels; 52 wks ending September 17, 2016

CCentral.ca

JANUARY | FEBRUARY 2017

31


Buy these offers from your Full Service NESTLÉ - CHOCOLATE SINGLES & PREPACK

SAVE $2.40/48ct box $1.80/36ct box $1.20/24ct box on Nestlé Chocolate Singles* (Maximum 50 boxes per store per order)

SAVE $0.05 a unit!

NESTLÉ - NUTRITIONAL DRINKS

SAVE $1.50/box SAVE $0.60/box on Boost*

SAVE $0.25 a unit!

HOT FEATURE PRICE! + Receive a FREE box of the

SAVE $0.10 a unit!

REQUIREMENT FOR:

“NEW” Kit Kat Chunky Cookie Dough 24ct with the purchase of the Nestlé Twin Singles 312ct Floor Prepack! • 98 Kit Kat 41g • 64 Aero 42g • 40 Smarties 45g

on Carnation Breakfast Essentials*

• 52 Coffee Crisp 50g • 34 Kit Kat Chunky 50g • 24 Aero White 42g

MONDELEZ - CHOCOLATE SINGLES & PREPACKS

MONDELEZ - HALLS & PREPACK

SAVE $3.84/48ct box $1.92/24ct box

SAVE $1.00/15ct/20ct boxes

on Mondelez Chocolate Singles*

on Halls*

SAVE $0.08 a unit!

HOT FEATURE PRICE!

HOT FEATURE PRICE!

• 96 Caramilk 50g • 48 Crunchie 44g • 48 Wunderbar 58g • 48 Mr. Big 60g • 24 Crispy Crunch 48g

• 144 Caramilk 50g • 48 Crunchie 44g • 24 Wunderbar 58g • 48 Mr. Big 60g

on the Cadbury Chocolate Singles 264ct Floor Prepack

on the Cadbury Chocolate Singles Quebec 264ct Floor Prepack

MONDELEZ - GUM PELLET & MINTS PREPACK

SAVE $1.00/box on Dentyne, Clorets and Trident Gum Pellet*

HOT FEATURE PRICE! on the Halls Singles Variety 120ct Counter Prepack • 40 Halls ML Cherry 9pc • 20 Halls ML Honey Lemon 9pc • 20 Halls ML SF Black Cherry 9pc • 20 Halls ML Extra Strong 9pc • 20 Halls ML Real Honey 9pc

WRIGLEY - CANDY PEG

SAVE $2.00/12ct case on Wrigley Candy Peg Bags*

SAVE $0.17 a unit!

HOT FEATURE PRICE! on the Dentyne Ice SubZero Mints Variety 54ct Counter Prepack

• 27 Dentyne Ice SubZero Avalanche Mints • 27 Dentyne Ice SubZero Glacier Mints REQUIREMENT FOR:

Discounted offers will be reflected on your invoice as a reduced price from regular invoice price. Restricted to approved banner/independent accounts.

CCentral.ca/promoselect


Distributor to earn these SAVINGS! HERSHEY - EASTER SINGLES & PREPACK

SAVE $2.40/48ct box $1.80/36ct box $1.20/24ct box SAVE $0.05 a unit! on Hershey Easter Singles*

HOT FEATURE PRICE! on the Hershey Easter Assorted 372ct Floor Prepack • 192 Reese Easter 3D Egg 34g • 96 Oh Henry! Egg 40g • 48 Hershey Marshmallow Egg 24g • 36 Hershey Eggies 42g

HERSHEY - SNACK MIXES & PREPACK

SAVE $1.00/10ct box on Hershey Snack Mixes*

PERIOD

Jan. 2 - Feb. 24, 2017

HERSHEY - CHOCOLATE SINGLES PREPACKS

HOT FEATURE PRICE! on the Hershey Assorted Singles 240ct Floor Prepack • 96 Reese Peanut Butter Cups 46g • 72 Oh Henry! 58g • 36 Hershey Almond 43g • 36 Hershey’s Cookies ‘n’ Crème 43g

HOT FEATURE PRICE! on the Hershey Assorted Singles Quebec 288ct Floor Prepack • 96 Oh Henry! 58g • 72 Reese Peanut Butter Cups 46g • 36 Hershey Almond 43g • 36 Hershey’s Cookies ‘n’ Crème 43g • 48 Cherry Blossom 45g

MARS - CHOCOLATE PEG & PREPACK

SAVE $4.00/24ct case $2.00/12ct case on Mars Chocolate Peg Bags*

SAVE $0.17 a unit!

SAVE $0.10 a unit!

REQUIREMENT FOR:

HOT FEATURE PRICE!

HOT FEATURE PRICE!

• 60 Reese Snack Mix 56g • 40 Hershey Snack Mix 56g • 40 Cookies ‘n Crème Snack Mix 52g • 40 Oh Henry! Snack Mix 56g

• 40 M&M's Peanut Candies 120g • 20 M&M's Milk Chocolate Candies 120g • 20 Maltesers 100g • 9 Mars Bites Peg 109g • 9 Bounty Minis Peg 109g

on the Hershey Snack Mix 180ct Floor Prepack

CONAGRA - RETAIL

SAVE $6.00/case on Chef Boyardee 425g 24ct Canned Pasta, Snack Pack 4pk Puddings and VH 341mL 12ct Cooking Sauces*

SAVE $3.50/case

1

on the Mars Mixed Peg 98ct Floor Prepack

DARE RETAIL - CANDY SINGLES & PEG

SAVE $1.50/18ct box

SAVE $0.08 a unit!

on Dare 50/55g Candy*

SAVE $1.80/12ct case

SAVE $0.15 a unit!

on Dare Candy Peg Bags*

on PAM 110g 12ct Cooking Spray and Orville 12ct ReadyTo-Eat Popcorn*

*Contact your Full Service Distributor for the featured SKUs.

COMING SOON

PERIOD 2: Feb. 27 - Apr. 28, 2017


C AT E G O R Y D ATA

BY THE NUMBERS

CANADA’S C-STORES ARE DRIVING FORWARD IN AN INDUSTRY VALUED AT NEARLY $56.5 BILLION BY KELLY GRAY

TOP 10 C-STORE CATEGORIES #1 CIGARETTES $3,409,797,847

(+5% $168,750,488)

#2 #3 #4 #5 #6 #7 #8 #9 #10

ENERGY DRINKS $236,169.372

(+5% $12,005,819)

BEER PRODUCTS $214,757,132

(+5% $10,213,374)

SNACK FOODS $189,406,215

(+4% $6,678,017)

SOFT DRINKS $188,042,283

(-1% $2,049,222)

CHOCOLATE $143,222,359

(+4% $5,771,183)

MILK $141,238,298

(-4% $5,783,405)

SHELF STABLE JUICES & DRINKS $129,328,298

(+3% $3,847,380)

FLAT WATER $110,079,030

(+5% $4,780,461)

CANDY & CONFECTIONS $77,455,396

(+10% $6,979,766)

(source Nielsen Canada) Lottery $6.061 billion nationally. (c-retail is a key point of sale in these numbers)

34

JANUARY | FEBRUARY 2017

Last year the Canadian Convenience Stores Association (CCSA) reported there was both good news and less than good news for operators across the country. While overall revenue is up marginally over 2014, it comes thanks to increases in gas sales. The national organization that spearheads industry lobbying efforts and drives initiatives such as staff training, tells us that the industry is comprised of two distinct sectors with 17% of the industry ($9.63 billion in sales) not selling petroleum products. This group saw declines in sales in every province in 2015. The 83% of the industry that does sell gas ($46.82 billion in sales) saw gains everywhere with the exception of Manitoba and Nova Scotia. Some provinces such as Alberta, Saskatchewan and New Brunswick saw operators enjoy double-digit gains. “Having recently joined the CCSA, I’ve quickly learned that the c-store sector is strong and growing,” says CCSA President Satinder Chera. “We enjoy sales in excess of $56 billion, pay more than $21 billion in taxes and offer employment to some 200,000 Canadians. Key to all this is the word ‘convenience’,” he says, noting that the product and service mix is a constant evolving state. “Certainly there are challenges. We are among the most regulated businesses in the country with many products now receiving attention from government and other sectors of society. However, with these challenges come opportunities for growth. My expectation is that convenience retail will continue to punch above its weight and continue to move forward with the goods and the right mix of services Canadians demand amid fast paced lives.” CCentral.ca


TOP 5 GROWTH SECTORS

(source Nielsen Canada)

with more than 55 million magazines sold each year. “This translates to 13,000 magazines sold every hour over the key 12 hour sales window each day.” Morgan reports that magazines are 80% impulse sales with more than 3,000 titles available in Canada, of which a growing number are published in Canada for Canadian audiences. “Pay attention to the SIP (Special Interest Publications) market to help develop core new business for convenience retail,” he advises.

#4 Beer Products +5% #1 Cigarettes +5%

CIGARETTES AND TOBACCO IS THE INDUSTRY’S LEADING CATEGORY WITH GROWTH IN THE 5% RANGE. Diane Meulemiester, General Manager of North Shore Tobacco, a company owned and operated by Ontario Tobacco farmers, suggests the sector is really comprised of two groups - premium brands and value products. “We are in the premium area and have been enjoying good growth. With the higher cost of a package and other concerns many people are tending to smoke less than they might have in the past. However, people are also looking to the premium segment for greater quality and performance. It’s a case of quality over quantity.”

#2 Energy Drinks +5%

Leaders continue to be Red Bull, Monster, Rockstar, NOS, and AMP. According to US-based research (2015, Euromonitor) Red Bull holds a commanding 43% share of market, with Monster at 39%, Rockstar at 10% and both AMP and NOS at 3% each. In the Energy Drink Shots sector 5-Hour Energy is the hands down leader with US sales in the range of (US)$725 million. Its nearest rival, Stacker 6-Hour Power, sells just (US) $10 million. Worldwide sales leaders in Energy Drinks are Red Bull, Monster and Rockstar. “Energy Drinks represent a small but growing sector of Canada’s drinks market,” says Canadian Beverage Association President Jim Goetz. “It’s maturing with all the major players offering line extensions that include low calorie and light products. It’s benefiting from a relatively stable regulatory environment where Health Canada is using science rather than media headlines to create rules for the sector,” he says pointing to potential challenges such as a motion at Toronto City Hall to make Energy Drinks unavailable to those under the age of 19. There are also rumblings about sugar taxes such as ones that have been enacted in Mexico. He points out that the Mexican experience has not been positive in achieving any goals other than raising tax revenue.

#3 Books & Magazines (Adult) +81% ($10,714,001)

According to Glenn Morgan, President Coast to Coast Newstand Services, there has been tremendous growth in adult colouring books over the past couple of years and suggests this may be behind the positive numbers in the sector. He also sees a decline in e-book usage (-18% in US markets) as a positive trend in c-store sales of adult titles. The market in Canada sees $1 million a day in sales of magazines at retail CCentral.ca

Beer sales for c-stores are confined largely to the province of Quebec, where depanneurs offer a wide selection of both beer and wine. According to Beer Canada, a national body that lobbies on behalf of Canada’s brewers, cans and imports were the bright spots at the beer fridge. Canned varieties were up by 14 points last year with imports like Stella and Heineken ahead by 4.3%. Total sales across all channels were flat at just 0.1% growth. However, Quebec’s convenience retailers were ahead of the curve by 5%. This shows the deps were marketing harder with special sections and merchandising pushes that increased sales. For example, at Toit Rouge in St. Jerome, QC they use a dedicated staffer and social media to drive sales on as many as 50 micro-brews. “Jean-Michel spends 40 hours a week taking care of our beer clientele,” says operator Lise Guénette, who remarks that she and other employees took the Étoile des Bières program level one and two. “Now we better prepared to guide our customers.”

#5 Candy and Confections +10%

Nestlé Canada and Hershey Canada drove the chocolate confectionery segment (2015) with 15% and 14% shares _ respectively. They were followed by Mondelez International subsidiary Cadbury Canada, which held a 13% share of sales. Retail sales of sugar confectionery such as boiled sweets and caramels, licorice and lollipops as well as medicated confectionery saw a negligible decline in #1 AUTOMOTIVE CARE PRODUCTS volume terms and increased #2 MILK by 1%. According to Euromonitor, demographics #3 READING PRODUCTS ADULT are playing a role. In 2015, #4 FLAVOURED SOFT DRINKS the traditionally strong youth #5 FROZEN DINNERS AND ENTREES confectionery market (age 0-14) expanded by around (source Nielsen Canada) 1% while there was 4% increase in the age 65+ population. Cadbury Canada, thanks to the dominant position of its Halls brand in medicated confectionery, stood out as the largest player in sugar confectionery (2015) with an 18% value share in this category. It was followed by Ferrero Canada, which claimed a 9% share. Reports indicate there are no other manufacturers holding over a 5% share. On the gum side, Wrigley Canada and Cadbury Canada were dominant in 2015. These players held 49% and 47% shares of value sales respectively, with smaller brands in specialty gum taking the remaining 4% share. (data courtesy Euromonitor).

TOP 5 DECLINERS

JANUARY | FEBRUARY 2017

-12% -4% -14% -1% -21%

35


TORONTO PREVIEW

SHOW HIGHLIGHTS NEW LOCATION! Toronto Congress Centre, 650 Dixon Road, Toronto 5,000+ industry retailers, suppliers and distributors under one roof 10+ business-focused seminars ConvenienceU.ca

See you in Toronto! The Convenience U CARWACS Show Toronto is back, and it’s the ideal opportunity for you to grow your business BY NIKKI LOCKINGTON

36

JANUARY | FEBRUARY 2017

On March 7-8, the convenience, gas and car wash industry will come together in Toronto for The Convenience U CARWACS Show. The show provides the opportunity for business networking, new product discovery, industry education and connecting you with industry experts, all in one spot. Don’t forget about this year’s NEW LOCATION: Toronto Congress Centre, 650 Dixon Road, Toronto. Staying informed and on the ball is an essential part of business ownership. That’s why we provide top-notch education sessions on both days. Here’s a rundown of this year’s sessions. Check out convenienceU.ca for more information about session times, guest speakers, and to sign up to secure your spot! CCentral.ca


DAY ONE: Tuesday, March 7 CARWACS Carwash Tour

Hosted by the Canadian Carwash Association (CCA), the annual CARWACS Carwash Tour will visit a number of CCA member carwash sites across Southern Ontario as carwash operators enjoy a morning of networking, lunch and interactive site tours.

OLG: Leveraging the lottery

Lottery is so much more than just jackpots. The OLG team will give you the knowledge to help you increase your sales and commissions. Learn how to enhance the store traffic that lottery generates. This is a mustattend session!

Developing a winning business plan for your c-store

It’s essential to have a coherent business plan in order to support financial applications, create strategic growth strategies, prepare your business for sale or

find quality candidates, how to conduct a professional interview, representing your business in a compelling way, and how to set up new hires to succeed.

OCSA: Protecting your store against robbery and theft It is every business owner’s responsibility to protect their business and employees from theft, loss and personal injury. The Ontario Convenience Stores Association, Crime Stoppers and the OPP will show you how you can protect your store and staff from both economic loss and personal harm.

DAY TWO: Wednesday, March 8 CCA Annual General Meeting, keynote speaker and luncheon The Canadian Carwash Association (CCA) annual general

“Lots to learn and lots of people to meet. The show is busy. We’ve come before and love the fact that everything is under one roof. It’s a one stop shop for us and very worthwhile.” – Kathy and Bruce Kidd, Prince George, BC

secure investment capital, and communicate business objectives with management and employees. Learn how you can build a winning business plan for your business and leverage it once completed.

Staffing solutions: Finding the right people and setting them up to succeed

For many small business owners in the c-gas channel, hiring the right staff is a challenge. Learn how to CCentral.ca

meeting will feature a keynote speaker as well as a luncheon immediately following. Members in good standing are entitled to vote during the AGM, and we encourage non-members to attend this event as well. Pre-registration is required.

Staffing solutions: Training, incentives and performance management

Effectively leading and managing

employees to perform at their best is a challenge for many small business owners. In this fun and interactive workshop, you will take away a variety of easy-to-apply techniques to effectively train, incentivize, lead and manage your employees.

Foodservice excellence: Which model is right for you?

A number of factors in the c-gas channel are leading to the popularity of foodservice offerings. But which model is right for you – an established brand or a more customized build-your-own? Come to this session to find the one that suits you and your customers, and ways to get started.

Strategic alliances: Finding the right national fuel partner

Aligning your site with the right national fuel brand can bring a variety of benefits to your operation. But how do you find the right partner for your site and your specific business needs? This session will help to guide you through determining the options available to you, understanding key contract terms and obligations, and assessing the value of their loyalty and marketing programs to your business.

Foodservice excellence: The critical success factors

Although a strong foodservice offering can be an excellent growth strategy to counter declining sales in some of your key categories, a successful offering doesn’t come without its challenges. Learn about the critical elements you need to get right to have a successful and profitable foodservice program.

OPCA: Fuel safety for gas station owners The safe handling of liquid fuels is extremely important for gas station owners from an employee safety and environmental aspect. Industry expert and TSSA trainer Dave

“We’ve been coming to the show for years. We always take away new ideas that we can use in the store.” –G  eorge Klein, Klein’s Food Mart, Regina, SK

Ledingham will teach you overall safety requirements for gas station owners, including TSSA Liquid Fuels Handling Code requirements for owners and attendants, safety and emergency procedures, why leaks and spills are a high hazard situation and the action you need to take when confronted with such a situation.

The amazing c-store quiz

Do you often feel you are the smartest person in the room? Even when the room is full of other brilliant c-store, gas and car wash people? If so, this is the session for you. And if not, you can come anyway. Who knows, you might get lucky. Don’t miss your chance to turn your vast c-store, gas and car wash knowledge into prizes in this fun-filled game show style quiz.

JANUARY | FEBRUARY 2017

37


TM

CANADA’S CAR WASH & PETROLEUM MAGAZINE

Establishing a solid app user base now, as an early adopter of this technology, creates a differentiating advantage within your market.” JJ Woodley, owner, Red Hill Car Wash, Hamilton, ON, and one of the owners of Tech1st Wash Systems.

Payment

TECHNOLOGY THE WAY YOUR CUSTOMERS PAY FOR CAR WASHES IS EVOLVING. FROM EMV TO MOBILE APPS, SUCCESS MEANS ADAPTING TO THESE CHANGES IN THE NAME OF MARKETING, LOYALTY AND AN IMPROVED CUSTOMER EXPERIENCE.

PM42940023 • $12.00 CCentral.ca @CCentral360 JANUARY | FEBRUARY 2017


PROTECTING THE ENVIRONMENT

CANADA’S CHEMICAL

& EQUIPMENT SUPPLIER

SUPERIOR PRODUCTS UNMATCHED SERVICE MONDO PRODUCTS manufactures and distributes a complete line of concentrated chemicals and equipment for the car wash industry. Mondo is the largest supplier of vehicle washing chemicals in the Canadian marketplace and has built its reputation on supplying superior products at the lowest cost with unmatched service.

MONDO PRODUCTS COMPANY LIMITED www.mondo-products.com 695 Westney Road South, Ajax, Ontario L1S 6M9 | 1.800.465.5676


TM

JANUARY/FEBRUARY 2017

CANADA’S CAR WASH & PETROLEUM MAGAZINE

Volume 22 | Number 1

11

Product NEWS PRODUCTS, EQUIPMENT AND SERVICES

16 ADVERTISERS Aerodry Systems, LLC.................................... 25

CONTENTS

Blendco Systems LLC....................................... 8

04 Editor’s Message

CTM Design Services Ltd............................... 10

Changing landscape

Exact One Ltd................................................. 20 Innovative Control Systems............................ 15 Kesseltronics Systems.................................... 19 Mark VII Equipment, Inc.................................. 12 Mighty Flame Canada..................................... 13 Mondo Products Co. Ltd................................... 2 Nuform Building Technologies Inc................... 24 Pumps & Pressure Inc.................................... 10 PurClean-PurWater............................................ 9 Tech1st Wash Systems................................... 21 Ultimate Supplies............................................ 17

23

06 CIPMA Independent operators charge the market

08 Water Get it working for you

11  At the pumps Delivering a modern forecourt experience

16 COVER   ayment P

technology New payment methods are creating positive change

23  Product News Car wash and forecourt equipment showcase

24  Join the club New CCA members

26  CCA NEWSLETTER Industry forum

22  Marketing 6 ways to market your car wash

Universal Valve Co., Inc................................... 14 WashLinks/Sonnys.......................................... 21 Washtech ....................................................... 10 Wiz-Tec Computing Technologies Inc................ 5 XTR Energy Company Limited/Gulf Canada....... 7 Zep Vehicle Care, Inc....................................... 18 CCentral.ca

JANUARY | FEBRUARY 2017 OCTANE 3


    

           TM

EDITOR’S MESSAGE

70

CANADA’S CAR WASH & PETROLEUM MAGAZINE

2300 Yonge Street, Suite 1510 Toronto, ON M4P 1E4 (416) 256-9908 (877) 687-7321 Fax (888) 889-9522 www.CCentral.ca

    

          

VICE PRESIDENT & GENERAL MANAGER      Michael Cronin mcronin@ensembleiq.com

          

Editorial EDITOR Kelly Gray kgray@ensembleiq.com ONLINE EDITOR Nikki Lockington nlockington@ensembleiq.com

CHANGING LANDSCAPE

TRANSLATION Danielle Hart

Advertising Sales DIRECTOR OF PARTNERSHIPS David Wood dwood@ensembleiq.com

Canada’s fueling sector is getting a lot more independent. It was not that long ago that when a motorist wanted gas they looked most often to one of the major refiners for a station selling their branded products. Today, more than 50% of gas stations are run by independent operators, such as Federated Cooperatives, Wilson Fuels or 7-Eleven. These are service-oriented players in a very competitive market. These companies don’t extract resources, they don’t refine products and typically they don’t distribute. They focus on what they do best. They offer customer service and products in a professional retail atmosphere. This speaks to the need for business to concentrate on core competencies. Certainly, the major oil companies have not been deaf to this idea, and that has them now centering on areas of activity where they excel. Let me say that I am in no way suggesting that big oil’s presence in the retail sector has been lack luster. Far from it. But, the independent operator is just closer to home and as such is often more responsive to the local consumer market they serve. Simply, independent operators exist to serve. This is what they do best. Look for Canada’s retail fuel landscape to continue its move toward independent operators as big oil works to balance its challenges with low barrel prices and the high capital cost of new site development. Expect as well more customer service, more local promotions, and greater competition within the sector as Canada’s retail fuel landscape begins to look a lot more like that in the US.

– Kelly kgray@ensembleiq.com standard

no gradients

BE A PART OF OUR COMMUNITY!

4

E-newsletter

OCTANE JANUARY | FEBRUARY 2017

Convenience Central

@CCentral360

SALES & EVENTS COORDINATOR Claudia Castro

Design & Production MANAGER, PRODUCTION & DESIGN SERVICES Derek Estey PROJECT MANAGER Michael Kimpton ART DIRECTOR Nancy Peterman YCM DISTRIBUTOR ADVISORY BOARD G. Stevens, R. Robertson, ITWAL Limited; L. Hand, J.B. Hand & Sons Ltd.; T. Tetlock, Pratts Limited; J. Beaudry, J.P. Beaudry Ltée. YCM EDITORIAL ADVISORY BOARD Brian Benison, Bic Inc.; Melani Melnyk, Mondelēz International; Tim Corkum, Rothmans, Benson & Hedges Inc.; T. McGowan, Nestlé Canada; Sreeram Rajagopalan, PepsiCo Foods

YCM/OCTANE is published six times a year by Stagnito Partners Canada Inc. YCM/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 welcomed, but cannot be acknowledged or returned. © Copyright 2017. All rights reserved. No part of this publication may be reproduced in any form, including photocopying and electronic retrieval/retransmission, without permission of the publisher. Printed at Web Offset Publications Ltd. in Canada PM42940023

watermark

stacked logo (for sharing only)

CCentral.ca

SALES REPRESENTATIVE Elijah Hoffman ehoffman@ensembleiq.com

CHANNEL ALLIANCES

ConvenienceChannel CCentral.ca


iPOS 5.5: Easy and fast Point of Sale with fully compatible vPOS mobile app vPOS 2.0 for Gas Bars & C-stores

The only mobile app that controls the pump! Mobilize your store using the mobile POS app! Increase work production! Increase customer satisfaction! Decrease labour hours by using less shifts to run your store and MAKE MORE PROFIT! The Wiz-Tec system is so simple, we can train you in a few minutes. Wiz-Tec is one of the fastest-growing software companies in Canada with customers from coast to coast. Our primary focus is electronic business solutions, Point-Of-Sale (POS), and integrated systems for small, medium, and enterprise needs.

Come see Wiz-Tec at 2017 Toronto CARWACS show with Exact One booth#431

Wiz-Tec MoboGas: Easy to use and control, self payment terminal, enhance through-put at your card-lock without expensive pay at the pump technologies to save you thousands monthly.

Wiz-Tec Computing Technologies Inc. T (403) 250-8660 Toll-free 1-866-361-7846 F (403) 476-8935 www.wiz-tec.com Bay 17, 4312 Ogden Rd SE Calgary AB T2G4V3


CIPMA

MARKET OVERVIEW

MARKET RESPONSIVE

Canada’s independent fuel companies are pumping more fuel at retail sites than ever. It’s a win-win for everybody. BY KELLY GRAY Canada’s independent fuel retailers have come a long way over the years.

Independent fuel retailers have shown themselves to be real leaders in this regard. Expect to see more presence from independents as big petroleum players realize this advantage.”

6

It was not that long ago that independent marketers had to fight for a place at the table and a fair playing field compared to the major refiner/markets who controlled both upstream and downstream aspects of fuel. Major players such as Shell and Suncor extracted resources, refined, distributed and retailed products to the general public. Now, Canada’s independent fuel marketers account for close to 50% of gasoline following the most recent spate of divestures from leading petro banners to a number of independent petroleum marketers including some CIPMA members such as Harnois Groupe Petrolier, Wilson Fuel, 7-Eleven and Parkland. According to Canadian Independent Petroleum Marketers Association (CIPMA) President Tricia Anderson, developments in the Canadian marketplace are somewhat mirroring the evolution in the US marketplace a few decades back. Independent petroleum marketers in the US have grown significantly as a force in the marketplace, both from organic growth due to their strong competitive stance in the market, but also as a result of refiner/ marketers shifting their retail businesses to the independent sector. What is behind this shift? Upstream, big petroleum companies are facing a lot of pressures given low oil prices and increased environmental regulations. Having independent retailers do what they do best means major players can concentrate on their core competencies and large capital projects. Supply contracts with the independent sector allows refiners some certainty to operate their refineries running at the highest capacity possible The overall impact is that independents have more freedom to develop strong business platforms and customer service oriented programs. “We have a range of members within CIPMA. Some of our members are national organizations who have operations in every province, but are not part

OCTANE JANUARY | FEBRUARY 2017

of a refining organization. Others have their roots as small regional family based businesses. Many have grown to be significant competitors both regionally and nationally. Some of our members got their start decades ago – some even when coal was the major energy source,” reflected Anderson. “Their histories have earned them recognition in the market and trust among consumers. These are small and now medium sized businesses with leadership roles in local communities. This has made them good choices as partners when big petroleum decides to spin off their retail operations.” Indeed, many of the members of CIPMA have been conferred awards for management as well as customer care. Wilson Fuels, Pioneer (now part of Parkland) and McDougall Energy are among those companies that have recognized as some of Canada’s Best Managed Companies (Deloitte). In the end, it’s the consumer that benefits from not just greater efficiency in the supply chain, but a more responsive service experience pump side. “The retail environment is very competitive and is one where margins can be quite low,” says Anderson, concluding that it’s essential for success that the players on this retail side be the best they can be when it comes to location management and responsiveness to local markets. “Independent fuel retailers have shown themselves to be real leaders in this regard. Expect to see more presence from independents as big petroleum players realize this advantage.” OCTANE

CCentral.ca


WATER

WATER QUALITY

GET YOUR WATER WORKING

Getting the right quality of water is essential to a good car wash. How does your operation stack up? BY KELLY GRAY In Prince George, BC operator Bruce Kidd runs the Hart Highway Husky. On site he has c-store, full service gas bar and a variety of services such as sani-dump, showers, laundry and car wash.

SUPERSAT

®

CUSTOM DETERGENT SYSTEMS Did you know?

SuperSat is one of the leading detergent brands in the carwash industry today.

• • • • • •

Superior Cleaning Technology Compact Packaging Automatic Detergent Process You’re in control Famous Blendco Service and Support Peace of Mind

VISIT US AT THE CARWACS SHOW!

blendco.com

BLENDCO SYSTEMS

A Division of DuBois Chemicals

8 OCTANE JANUARY | FEBRUARY 2017 Vertical 3.56x4.81.indd 1

According to Bruce, the quality of the water he obtains from the municipality is great and all he requires to upgrade his system is a large softener. “I have not had to go to the expense of running an R.O. unit to get the water quality just right. With just the softener cars come out spot free and looking great.” However, this is not the experience of most of Canada’s car wash operators who look to their equipment suppliers for an edge in a competitive car wash market where the right water delivers the kind of clean that keeps customers coming back. In car wash there are five factors to cleaning: time, temperature, mechanical action, chemicals and labour. Water impacts all these aspects. Without the right H2O, all the actions in a car wash are muted. This means poor customer satisfaction, higher costs per wash, and lower through put. Ted LaVigne, Vice-President Sales, New Wave Industries, part of the PURCLEAN/PURWATER group of companies, suggests that operators need to have the right water for each function of the wash. He points to four types of water every car wash has to consider. Leading the list is ‘tap’ water. This is the basic stuff that municipalities pipe to residences and commercial establishments. Spot free water is another type. This comes either naturally or through treatment and offers car washes H2O with Total Dissolved Solids of less than 25ppm (parts per million). There is also R.O. (Reverse Osmosis) reject recapture, water that is still good enough for some areas of the wash, but not the final rinse that must be spot free. “You have already paid for the water, smart operators use it in the wash process. Car wash operators are really in the water business and need to use every drop as effectively as possible to make the most of their enterprise,” says LaVigne. Lastly is water that has been used, reclaimed and processed in the cycle. Operators can typically reuse between 65% and 85% of water without out sacrificing wash quality; actually you’re improving the wash process, obtaining a cleaner, drier, shinier vehicle. “Total hardness is the leading challenge facing CCentral.ca

12/1/2016 10:27:33 AM


Car wash operators are really in the water business and need to use every drop as effectively as possible to make the most of their enterprise.”

operators,” says Wayne Thiessen, President of Red Deer, AB-based Wet Water Industries. “Soap is typically a long chain chemical. Too much calcium will break that chain and make chemicals less effective. It might look like there are suds, but there is no dirt retention because the water is too hard,” he says. More, Thiessen remarks that many of the current ‘easy on the environment’ products are even less effective in hard water. “As we pull phosphates from products the soap in the solution is even less forgiving of hard water. Often this can mean more chemicals in the solution and less of a benefit to the environment and more cost to the operator.” Indeed, Ted LaVigne points out that if water is too hard the wash quality really suffers. “Operators can expect to pay 10% to 40% more for chemicals in the wash process with hard water. This adds money to the cost of each wash and eats away at profits,” he says. Total dissolved solids or TDS is another key element in how effective water can be. Dissolved solids represent the mineral content of water. The higher the concentration of minerals (parts per million or ppm) the more difficult it is to clean cars. Most cities in Canada have TDS concentrations above 200ppm. Spots or mineral residue start to occur on final rinses when TDS is above 40ppm. “When water is too full of these dissolved solids the soap works on the minerals rather than the dirt on cars,” says Wayne, who points out that in Western Canada there is a vast range of water quality with some municipalities in Saskatchewan reporting TDS of 700ppm to 800ppm. “Calgary and Saskatoon both have different ranges of TDS in the winter and summer.” Here in Canada, water often needs a bit of heat before chemicals are added, especially in the winter. “Bringing up the temperature increases chemical activity, making products more effective. Cold water may also have to be tempered for the R.O. system as well,” says LaVigne, noting that heating is a small expense compared to reduced chemical and system effectiveness. “Testing your water is one of the most important things so you can establish a baseline. This will allow you to achieve maximum efficiency throughout the wash process. This is why we begin by looking at the water you are going to use for chemicals, final rinse and to maximize your percentage of reclaim. Typically Softeners, R.O. Systems and Reclaim Systems will pay for themselves in less than two years; thus putting more money in your pocket while achieving a better wash.” OCTANE CCentral.ca

CITY

WASH MODEL

ANNUAL SAVINGS ROI/MOS.

SASKATOON

TUNNEL

$43,629.00

8 MOS.

KELOWNA

TUNNEL

$26,430.00

13 MOS.

KINGSTON

INBAY AUTO.

$23,000.00

12 MOS.

KINGSTON

TUNNEL

$37,000.00

8 MOS.

KITCHENER

INBAY AUTO.

$14,000.00

20 MOS.

WATERLOO

INBAY AUTO.

$12,500.00

21 MOS.

TORONTO

INBAY AUTO.

$8,000.00

18 MOS.

™ , LTD.

JANUARY | FEBRUARY 2017 OCTANE 9


Changing the face of Canadian Stations • Commercial Vehicle Wash Equipment • Cleaning Equipment

• Waste Water Recycle

• Air Compressors

• CAT Pumps & pumps of all kinds

• Cleaning Chemicals

• Pressure Washers

• Automatic Car Washes

1.888.430.9359

• Car Wash Accessories

www.pumpsandpressure.com

Brandon | Burnaby | Calgary | Edmonton | Grande Prairie | Leduc | Lethbridge | Red Deer | Saskatoon

CTM Design is one of Canada’s leading,

PumpsPressure_OCTANEJanFeb17_EF.indd 1

2016-12-15 10:57 AM

full-service design engineering firms. We’ve designed or redesigned over 3,500 locations nationwide for both independent and national automotive and petroleum retailers. As the leading specialist in petroleum, convenience store, car washes and quick service restaurants, CTM delivers environments that can improve sales volumes and enhance your location’s physical brand experience.

Visit our booth #414 at the 2017 Convenience U CARWACS Show in Toronto!

Washtech is the largest distributor of Vehicle Wash Equipment in Ontario. We have a large fleet of 16 service vehicles and Technicians across Ontario. We also have a large inventory of parts, products and equipment to serve your needs. Self Serve Bays | In-Bay Automatics | Conveyorized Tunnel Systems Truck & Bus Wash | Friction and Touchless Systems

For FREE trade floor admission and a chance to win an iPad Mini, visit ctmdesign.ca/CARWACS

Petroleum | Automotive Commercial | Retail | Hospitality

10 OCTANE JANUARY | FEBRUARY 2017

www.wash-tech.ca | sales@wash-tech.ca 190 Southgate Drive Guelph, Ontario, N1G 4P5

CCentral.ca


AT T H E P U M P S

DETAILS DRIVE

FORECOURT DOES YOUR FORECOURT DELIVER THE KIND OF MODERN APPEARANCE THAT CUSTOMERS FIND ATTRACTIVE? BY KELLY GRAY

CCentral.ca

Petro-Canada and Shell stand out as great examples of companies that really stepped up to enhance pumpside appearance with new forecourt design. Back in the late 1990s, Petro-Canada was searching for ways to differentiate itself in the market with new design that would feature expansive curved canopies. In a break from standard approaches the architects reached out to a company (FormaShape a division of White Water West Ind.) that manufactured water slides for the shapes they sought for a new Petro Canada look. The company used its skills creating curved fibreglass slides and made the now ubiquitous illuminated canopies at Petro Canada forecourts. Shell turned to Addison London for its new RVI (Retail Visual Identity) that started around 2000. Here satin finishes on metal, new pump shrouds,

“

Gas retail is a competitive business. If you want your customers to come back, show them you are professional by having a wellmaintained site with up to date equipment.�

and formed illuminated banners created a fresh design approach that was clean, uniform, and spoke about efficiency and modernity. Both Shell and Petro-Canada looked to the canopy as the big statement and built them large. Indeed the trend has been to focus on canopy, a fact that has made the gas station sign the largest retail banner in business. However current design trends have it getting narrower with stations now showing less than a meter in height on these massive signs. There is also more illumination and 3D aspects on the signage that attracts even more attention to the pumps. Attention drives business and according to Devin Mahaffey, Principal with CTM Design Services, a leader in c-store and gas JANUARY | FEBRUARY 2017 OCTANE 11


It’s true that large lighting users from cities to parking garages to gas station forecourts have been able to really drop energy costs with LED, however, there are detractors who suggest that LED lighting comes with some challenges.

0

bar planning, that while there is now more emphasis being placed on ‘eye catching’ display and brand promotion with higher visibility and greater use of improved graphics and lighting, a station’s primary focus should be on enhancing throughput. “To do this you must understand the site and the traffic patterns. There must be proper spacing for cars and cars must have proper ingress and egress to the site. This is basic,” he says. However, with visibility enhancements so prominent in current gas station design there has been a big push to improve lighting at forecourt. Here operators have been looking hard at LED (light emitting diode) to lower energy and maintenance costs. For example Cree LED Lighting claims operators of gas bars and c-stores can reduce lighting costs by 70% on systems that require replacement every 10 years. It’s true that large lighting users from cities to parking garages to gas station forecourts have been able to really drop energy costs with LED, however, there are detractors who suggest that LED lighting comes with some challenges.

lost customers.

“LED’s flicker and this can have an impact on security cameras where important images can be blurred,” says Phillip Gotthelf founder of Ultra Tech Lighting, a New Jersey-Based manufacturer and distributor of magnetic induction lighting products. Gotthelf reports that their products last as much as 100,000 hours and can reduce standard lighting costs by 50% to 70%, making them competitive with LED. “These type of lights (magnetic induction) reduce maintenance cost and have a low environmental impacts because there is virtually no hum and the amount of light pollution is reduced. Payback is also improved with operators finding a two to three year ROI.” With proper lighting illuminating the forecourt operators need to pay attention to the details. A sloppy forecourt damages customer confidence. Waste receptacles need to be emptied, squeegee baths need to be maintained, and pumps and nozzles need to be wiped and visually inspected after each shift. “It’s the little things that can work in your favour to drive customer confidence in your site,” says Bob Vogt

“Why risk losing customers who prefer either soft-touch or touch-free washing? We chose Mark VII’s ChoiceWash XT® so we can offer both types of wash packages on one machine. About 2/3 of our customers choose the top wash package, and 1 out of 5 spend $3.00 more to add the ShineTecs® polish program. Once they see how shiny it gets their cars, they keep coming back!”

Zaff Jiwani 5 Corners Convenience, Gas and Car Wash

866-658-9274 ext. 4 | www.markvii.ca

12 OCTANE JANUARY | FEBRUARY 2017

CCentral.ca


MightyFlame_YCM Octane 2015:Layout 1

12/3/14

2:11 PM

Your�Propane�Cylinder�Exchange� Partner�for�the�Future. of SureGuard, a company that manufacturers a wide range of protective pole products. Vogt points to bollard covers as good ways to clean up sites where rusty poles spoil the overall appearance at the forecourt. “Covers are always an easy sell because they are so much less expensive than painting or replacement,” he says, remarking further that covers can last ten years. And, they can carry messaging as well. Here, gas sites can have logos or promos printed on the covers to add to merchandizing efforts such as car wash marketing. “Bollards work to protect pumps, the c-store, storage areas and wash entries as well as other key areas on site. We have rigid and flex posts that can move with spring loaded knuckles to prevent damage to customer’s cars. Bolt-down posts are powder coated for durability while covers are made from HDPE high density polyethylene,” he says. The pumpside merchandisers are also undergoing an upgrade. According to Tim Rafter, National Account Manager with McCowan Design & Manufacturing, they have turned to stainless steel bases to make products more durable. “We are seeing companies hold back on refurbishing sites. It used to be every five years and now it’s every ten years. As a result, products such as merchandisers as well as waste and window wash receptacles have to last longer and have more versatility, including features like adjustable shelves” he says, adding that they have a new double sided merchandiser with roll down doors and a ‘no touch’ waste and window wash unit that features and a hands-free open cover. Rafter comments that with more independent retailers controlling a greater market share there is a move to greater economy. “By their nature independent operators have less money to spend on enhancing the sites. They will spend on pumps and safety, but when it comes to the little things that take a site’s appearance to the next level there is not as much money to spend. With this in mind we are looking hard at options and new materials to meet the need,” he says.

When it comes to the little things that take a site’s appearance to the next level there is not as much money to spend.”

CCentral.ca

Smart. Stylish. Profitable. Your�customers�are�ready�for�the 100%�reliable�Propane�Cylinder�Exchange and�you�have�the�perfect�location.

Service.�Quality.�Delivered. MIGHTY�FLAME�CANADA 95�St.�Clair�Avenue�West,�Suite�1403 Toronto,�Ontario�M4V�1N6 www.mightyflame.com� Phone��1.877.438.6444 Email��info@mightyflame.com

JANUARY | FEBRUARY 2017 OCTANE 13

Pag


Tank covers can be heavy so with composites we have seen the weight greatly reduced, making lifting and placement by delivery drivers or site staff an easier and safer operation.”

Come See Us at Booth 316 at the 2017 CARWACS Show in Toronto

Bottom Line Performance.

www.universalvalve.com ࠮Phone: (800) 223-0741 sales@universalvalve.com ࠮Fax: (800) 443-8258 © 2017 Universal Valve Co.

14 OCTANE JANUARY | FEBRUARY 2017

Peter Mascis, National Sales Manager with New Jersey-based Universal Valve points out that products and technology have made recent moves. For example, sumps and spill containers are better made today with better gaskets that work with all the different fuels. “It’s training that is needed on the front line to keep the little problems from becoming big headaches. Have established protocols and give staff check lists for regular inspections. Gas retail is a competitive business. If you want your customers to come back, show them you are professional by having a well-maintained site with up to date equipment.” Ed Kammerer agrees. Ed is OPW’s Director of Product Management and like Peter Mascis he sees one of the big changes at forecourt is in materials. For example manhole covers are now being made using composites as well as steel. “Tank covers can be heavy so with composites we have seen the weight greatly reduced, making lifting and placement by delivery drivers or site staff an easier and safer operation. Composite also means less rust and this translates into a better aesthetic appearance overall. Operators can pay $1million for a new location. Coloured composite tank covers help complete a pretty picture and greatly enhance the look of their forecourt.” Operators also need to pay attention to diesel hazards at the forecourt, continues Kammerer. “Diesel does not evaporate like gasoline. This means even a small spill can create a significant mess at the pumps. Cold temperatures combine with the problem to make the spill slippery and add to the hazard,” he says, commenting that OPW is working on a drip-catching device that recirculates nozzle left overs to the tank rather than have them drip onto the forecourt surface. On the alternative fuels front, OPW has just launched a CNG (compressed natural gas) pistol grip nozzle. This replaces the standard industrial style dispenser nozzle that was often tricky to use. According to Kammerer, alternative fuels can be a challenge. For example, ethanol blends above 10% require dispenser hardware with a new UL rating. “Successful businesses put their best foot forward. For c-gas that best forward foot is the forecourt. Pay attention to details and watch business follow,” concludes Kammerer. OCTANE CCentral.ca


COVER STORY:

Payment

TECHNOLO THE WAY YOUR CUSTOMERS PAY FOR CAR WASHES IS EVOLVING. FROM EMV TO MOBILE APPS, SUCCESS MEANS ADAPTING TO THESE CHANGES IN THE NAME OF MARKETING, LOYALTY AND AN IMPROVED CUSTOMER EXPERIENCE. BY NIKKI LOCKINGTON

16 OCTANE JANUARY | FEBRUARY 2017

CCentral.ca


OGY

Establishing a solid app user base now, as an early adopter of this technology, creates a differentiating advantage within your market.” JJ Woodley, owner, Red Hill Car Wash, Hamilton, ON, and one of the owners of Tech1st Wash Systems.

KPJMPHOTOGRAPHS

JJ Woodley is in a unique position when it comes to understanding the evolution of payment technology in the car wash industry: he owns Red Hill Car Wash in Hamilton, ON, and he’s one of the owners of Tech1st Wash Systems. Tech1st’s mobile app, CoinPay, was introduced at Red Hill Car Wash in August 2016. It was integrated within all self-serve wash bays, vacuums, and vending machines. The Tech1st mobile payment system runs parallel to Red Hill Car Wash’s existing methods of accepting coins and credit cards with their EXACTA system. For Woodley it’s a valuable marketing tool that allows them to build loyal connections with their customers. “It’s easy to set up, schedule, and run promotions with the new system, which provides rewards to our customers for using our facility. We’ve had an excellent response on our Facebook page about these rewards, which in turn has promoted the mobile system to new users who are hungry to use their phones for everything. It’s a very effective positive marketing feedback loop,” he says. Although it’s too early to draw any conclusions from the data, Woodley confirms 330 registered users have downloaded the app to their mobile devices. In addition CCentral.ca

JANUARY | FEBRUARY 2017 OCTANE 17


to the consumer engagement, CoinPay was installed at four new sites in southern Ontario by the end of 2016. Simply put, CoinPay is a marketing tool, says Woodley. It’s designed to make the customer experience as simple as possible, while also allowing the operator to provide incentives to return to the car wash the next time to use CoinPay. “Mobile payment solutions are making their way into all areas of retail,” says Woodley. “Establishing a solid app user base now, as an early adopter of this technology, creates a differentiating advantage within your market.” Mike Black, co-owner of Valet Car Wash, agrees. He introduced a mobile payment system from WashCard Systems at one of his sites this past summer. Customers simply scan a QR code in the bay, which takes them to a webpage designed for mobile phones. “It’s very easy to navigate and the customer only has to fill in a couple prompts, like their credit card info and which wash package they want to purchase. Each bay has its own QR code so the systems knows which bay you’re in,” he adds.

18 OCTANE JANUARY | FEBRUARY 2017

CCentral.ca


There are a lot of payment technology options out there for operators. Here’s a rundown (in alphabetical order) of some of the industry’s payment system leaders, and the trends they’re seeing in the world of car wash payments:

CarWash Finder:

For many operators and suppliers, the goal of a cashless car wash experience is becoming more and more realistic.

“Our CarWash Finder mobile application (available on Apple or Android) allows the customer to find a wash, pay for the wash package, and activate the wash all from their mobile device,” says Kirsten Potvin, Business Development and Mobile Solutions Specialist, CarWash Finder. The mobile app has a number of operator benefits, including eliminating the need for expensive hardware upgrades; the app can work with any pay station or with an attendant location; operators have access to data where they can target their customers with promotions; and it can be private labelled to display a company’s logo and colours. For the customer, CarWash Finder allows them to accumulate points towards a free wash; purchase a wash from anywhere and store it within the app until they redeem it; credit card information is uploaded in the app so there’s no need to have your wallet on you, and finally, the app allows customers to avoid in-store lineups.

Give your car wash customers the debit processing option they have been looking for with Kesseltronics’ EMV chip and PIN debit enabled Access entry station. • PA-DSS and PCI compliant • Bilingual - English or French prompting • Accepts credit/debit/cash/coins/codes • Dispenses coins for change • Works with WALS loyalty system • Seamless interface to Cortex • Works with both in-bay automatics and tunnel operations

Contact your local distributor for more information or to place your order today! 5212 Harwood Rte VAUDREUIL-DORION, QC J7V0K2 (450) 458-8826

CCentral.ca

JANUARY | FEBRUARY 2017 OCTANE 19


They will be adding Interac debit transactions to their entire line of products in 2017, and this will include the ability to take debit and credit transactions in bay. The future of car wash is to convert many operations to a completely cashless solution, says Garratt.

Hamilton Manufacturing:

JJ Woodley (left) explains his site’s CoinPay mobile app to a customer.

Exact One: “Our integrated systems allow car wash operators to accept cash and credit card payments at all aspects of their operations,” says Doug Garratt of Exact One. “Operators can see up to a 60% lift in revenue simply by upgrading their equipment to accept credit cards. Our credit card processing system allows the car wash owner to choose their preferred payment processor.” Exact One is working with its payment partners to bring EMV technology to the car wash market.

20 OCTANE JANUARY | FEBRUARY 2017

“By automating the payment portion of the wash business, you are eliminating mistakes that we as humans all make. Our pay stations streamline the transaction, offering the customer a quick and efficient method for selecting and paying for a wash,” says Tim Morgan, sales rep with Hamilton Manufacturing. Some of the more exciting trends Morgan sees for this industry are the shifts happening in payment methods. “We are all aware of the ever-evolving changes in credit and debit card processing, but mobile transactions are becoming increasingly more common in North America. “We anticipate that a significant number of consumers will switch from conventional payments to phone-based payments at pay stations in the coming years,” he says. “We are also seeing a trend towards cloud-based data storage. Components like financial data, wash reports and loyalty modules no longer have to be just local to the pay station itself. Cloud-based solutions can also offer the operator the ability to customize their data in a way that works best for them. It really expands the whole notion of remote management for your business.”

CCentral.ca


Innovative Control Systems (ICS): “Our payment terminals feature touch screen technology, impactful graphics and instructional streaming videos, which simplify the purchasing process, improve customer throughput, and provide an easy way to offer upgrades to car wash customers,” says ICS’s Jason Sears. ICS offers two payment terminals: the Auto Sentry flex which receives and dispenses cash, accepts wash codes, EMV transactions, and mobile payment solutions such as Apple Pay, as well as the Auto Sentry Petro, a cashless terminal that accepts wash codes, EMV transactions, and mobile payments. The latter payment terminal is primarily used in fuel/ convenience store sites. Keep an eye out for ICS’s electronic point of sale (ePOS) system that will enable car wash operators to sell washes, gift cards, wash books, and even wash clubs directly from their existing websites.

PDQ: “EMV is a big deal in the US market right now, so we’ve been going down that path. We have certified with two different EMV providers so we’re giving some options to our end users and our operators in the field,” says Brian Garavaglia, Business Development Manager, PDQ Manufacturing. PDQ is also working on a phone app, he says. “We’re going to let your phone and the app connect via Bluetooth to the Access Pay Station, and then your car wash customers can use the loyalty app right on

their phone to buy and redeem washes. Wash users won’t even need to roll down their window to interact with the pay station,” he says. The loyalty club allows operators to sell fundraiser accounts, fleet accounts, loyalty club accounts, and they can do subscriptions with unlimited automatic recurring billing. “It also gives wash operators the ability to have their own e-commerce website to sell washes through the web. There’s a lot of flexibility and a lot of marketing potential that can be done with the loyalty club. The premier product we’re able to offer to our operators in the field is a very low cost solution that will drive their revenues up,” he says.

WashCard Systems: “WashCard has developed more than just a payment system. It’s a full set of hardware, software and loyalty marketing services available to our customers. We also ensure the security of every credit card payment by having our systems PCI Validated to PA-DSS v3.1 standards,” says Craig Kjorlien of WashCard Systems. Kjorlien says they’re seeing a rise in the need for loyalty programs. Operators wanting to tap into the lucrative business model of offering a variety of programs to local businesses to wash and manage everything from large fleets to small groups are using the automated invoicing and payment software. This program that WashCard introduced decades ago continues to evolve and now, the Internet and automation make management a breeze. OCTANE

Tech1st’s CoinPay app is designed to make the customer experience as simple as possible.

The Game Changer! TM

5-Step Retrofitable Online Polishing Systems SONNY’S Lava Shield™ is a 5-step online paint sealant system that leverages today’s state-of-the-art chemistry, application technology, and wash materials to deliver a distinct and spectacular show to the customer. With a brilliant shine and incredible customer satisfaction, operators are using the system to achieve higher average tickets than ever before.

Retrofitable to ANY Tunnel!

WASH LINKS is a The Tunnel Experts™ member of SONNY’S Select Service Organization Call Bill Barber at 1-855-695-3141 or email at bill@washlinks.ca

CCentral.ca

JANUARY | FEBRUARY 2017 OCTANE 21


MARKETING

CAR WASH

MARKETING YOUR WASH

Six ways you can market your car wash to boost through-put and build loyalty. BY NIKKI LOCKINGTON You’ve invested in prime real estate, installed top-of-the-line car wash and forecourt equipment, and hired friendly, knowledgeable employees. So how do you keep customers coming back for their next wash? It all comes down to marketing. Here are six ways you can improve your marketing initiatives:

1. FIND A NICHE.

Consider investing in free WiFi, a coffee station, or televisions to help entertain your customers.

Whether your specialty is high-end cars, oversized trucks or a themed wash, finding a niche can be a very effective marketing tool. Figure out what your neighbourhood needs and offer it, and remember becoming known for something specific can create a strong draw.

2. COLLECT EMAIL ADDRESSES. Ask your customers if they’d be interested in receiving emails from you, and based on the response you receive begin an email marketing campaign. There are numerous programs out there that will help you design and deploy email newsletters, such as Constant Contact or Mail Chimp. You can send out car maintenance tips, special offers or news items about your business. It’s all about keeping your car wash top of mind.

4. BUILD LOYALTY. Whether you introduce an existing loyalty program, invest in a mobile phone app, or offer a car wash punch card, build loyalty by offering a deal. If someone knows they can work towards a free wash at your site, they likely won’t choose to wash their car anywhere else.

5. INVEST IN THE CUSTOMER EXPERIENCE. If you’ve got a lobby where customers can wait for their wash, consider investing in free WiFi, a coffee station, or televisions to help entertain your customers. If you don’t have a lobby, you can invest in the customer experience by keeping the property clean, well lit, and the garbage cans emptied.

6. GET INVOLVED. Becoming an active and charitable member of your community can go a long way when marketing your business. You can do this by donating free washes to a local charity, sponsoring a local sports team or offering to host events on your property. You’ll give your community a reason to support you back. OCTANE

3. INVEST IN MARKETING MATERIALS. Consider working with a local graphic designer or design student to create on-site signage, local newspaper ads, or even your logo if you’re just starting out. Well-designed marketing materials will portray a professional image.

22 OCTANE JANUARY | FEBRUARY 2017

CCentral.ca


Product NEWS PRODUCTS, EQUIPMENT AND SERVICES Mark VII Equipment Inc. Win customer loyalty by giving them the best carwash experience in the industry. Mark VII LightRails, LightDoors, and FoamTecs provide a new and unique show that ensure your customers return to you for their next carwash. The LED light show not only wows existing customers but draws in new customers who view the show from the street. www.markvii.net 866.658.9274

Universal Valve Company’s New Composite Manholes DrainVac You may already know about our Automatik systems which can vacuum both dry and liquid substances. The DV2A313 is a new Automatik unit, designed especially for car washes. Easy to install, the cleaning system includes an installation kit and can be placed wherever there’s a floor drain which can normally be found in the garage itself. It’s the perfect central vacuum for a small detailing business! www.drainvac.com 800.408.1448

Universal Valve Company’s new composite manholes are designed to be both light weight and strong. All new composite and resin technology is used to ensure a lightweight and heavy duty manhole. This technology produces an H-25 load rated cover, built to withstand heavier traffic patterns associated with high volume c-stores. Available in 39” and 44” covers and an optional key lift handle. Be sure, be safe, specify Universal. www.universalvalve.com 800.223.0741

New from Turtle Wax Pro! Looking to increase your average ticket price and give your customers a show? Try the NEW Turtle Wax® Pro – Triple Dry Polish® Today! This foaming polish protectant uses a protective polymeric technology to accelerate drying when drying time is limited. Available in citrus scent, and red, blue, and gold colours. Standout against the competition with Turtle Wax Pro! www.Turtlewaxpro.com 877.857.3870

Chemquest Tired of losing the rust battle to road salt and other de-icing materials? Then fight back with SMA-60.00 from Chemquest. This low pH presoak is designed to work on the latest Ice Melt formulations, effectively removing salt corrosion. It’s safe on glass, metal & painted surfaces, environmentally safe and biodegradable. For use in high pressure applications or traditional presoak arches. Apply at 36-60:1 dilutions depending on cleaning conditions. Get your car wash ready for winter road conditions today! Call 800-969-4626 for more information about how you can beat the rust battle this winter! www.chemquestinc.com 800.969.4626

CCentral.ca

SUPPLIERS, WHAT’S NEW IN YOUR PRODUCT LINE? CONTACT ELIJAH HOFFMAN at 647-558-0103 ehoffman@ensembleiq.com to promote your product, equipment or service here.

JANUARY | FEBRUARY 2017 OCTANE 23


CCA: MEMBERSHIP

The Canadian Carwash Association (CCA) is made up of like-minded professionals from all areas of the car wash industry. Whether you’re an existing operator or supplier, or you’re just breaking into the car wash industry, becoming a member provides you with not only information and resources, but also networking opportunities to connect with others in the industry.

Join the

CLUB CCA membership comes with many benefits. Here’s an introduction to a couple of the newest members to join the association. BY NIKKI LOCKINGTON

®

THE PREFINISHED STAY-IN-PLACE DURABLE, COST-EFFECTIVEPVC PANELING SYSTEM FOR RETROFIT & NEW EW W CON CONSTRUCTION ONST ON TRUC CT TIO 2”, 4”, 6”, 8” & Available in

CONCRETE WALL FORMWORK

®

8” Insulated Forms

RELINEPRO

®

LIGHTWEIGHT PANELING FOR CEILING & WALL APPLICATIONS

RELINE PRO 18”

RELINE 12”

Heavy duty slotted fastener leg to accommodate expansion and contraction

Interlocking fastening system for quick and easy installation Concealed fasteners for a clean finish

Durable, smooth surface for minimal maintenance

FEATURES & BENEFITS • Easy Installation – no gluing • Bright finish • Will not rust or corrode

• New and retrofit construction • Mold/mildew resistant • Low maintenance

• 12” & 18” wide panels • Wide range of accessories • Standard lengths: 10’,12’,14’,16’,18’, 20’

NUFORM BUILDING TECHNOLOGIES INC. | TOLL FREE 1 (877) 747.WALL (9255) | EMAIL INFO@NUFORMDIRECT.COM

Design with Diversity. Build with Speed. nuformdirect.com 24 OCTANE JANUARY | FEBRUARY 2017

CCentral.ca


TO LEARN MORE ABOUT BECOMING A MEMBER, VISIT CANADIANCARWASH.CA

Membership includes member savings, business support, networking opportunities and advocacy. With membership you also gain access to unparalleled resources, including the Carwash ToolKit™ series. The first of the series, Getting Started, was published in July of 2012. Two more Carwash ToolKit™ documents are in the final stages of development, one on water reclaim and another to help operators with their interactions with municipalities. MEMBERS ARE AS VARIED AS THE CAR WASH BUSINESS ITSELF. HERE’S SOME INFORMATION ABOUT TWO OF THE NEWEST MEMBERS TO JOIN:

NAME: SHERYL LESKIW BUSINESS NAME: TheCarWashGirl.com LOCATION: Calgary, Alberta YEARS IN BUSINESS: 12 Why the car wash business? I’m a licensed professional Realtor who has specialized in providing real estate services for entrepreneurs who want to buy and/or sell a car wash. What makes your business unique? My real estate business is unique because I have chosen to specialize in the car wash industry. Buying or selling car washes can be a complicated process. There are many considerations that only someone with significant years of experience and knowledge can resolve. Good preparation, proper education, and a qualified support team of lenders, lawyers, appraisers and other experts help us get the job done right! NAME: MICHELLE DOORNBOSCH BUSINESS NAME: D’Lux Auto Spa Inc. LOCATION: Komoka, Ontario YEARS IN BUSINESS: This is our first car wash facility! Why the car wash business? The Komoka-Kilworth community has no local car wash facility. Our business will provide a much-needed service to the residents of the area. CCentral.ca

What makes your business unique? It’s the only car wash in the area, and it’s equipped with an air-blade vehicle drying system. What does membership mean for you? The association exists to represent the interests of car wash owners and operators. This involves: • Discussions with various levels of government and other special interest groups • Providing tangible member benefits • Providing a forum for the exchange of ideas and best practices • Providing opportunities for social interaction for our industry • Developing educational programs to assist operators • Providing a place for members, the media, and the public to call for car wash information You’ll also have the opportunity to access top-notch education online and at The Convenience U CARWACS Show in Toronto and Calgary: • Plans are being made to deliver one to two hour online seminars, called webinars. Two have already been posted on the CCA website’s education page, one called Make your carwash business soar! and the other on Canada’s anti-spam legislation and its implications for electronic marketing. You must be logged in as a member in order to view these. • Industry statistics are available to members through the statistics page on the CCA website, accessible only if logged in at canadiancarwash.ca/stats. These numbers are updated quarterly and provided revenue data per machine type and per bay. • More hands-on car wash operations seminars are being delivered at upcoming CARWACS shows in Toronto and Calgary, which members can attend for free. OCTANE

JANUARY | FEBRUARY 2017 OCTANE 25


CANADIAN

CARWASH ASSOCIATION

JANUARY 2017

Directors Brad Baldwin – ZEP VEHICLE CARE INC Mike Dietrich – PIONEER ENERGY LP Domenic DiMonte – CROSSTOWN CAR WASHES Terry Fahey – FAHEY ELECTRIC Brad Goetz – MONDO PRODUCTS CO. LTD. Jason Kaye – BAYVIEW CAR WASH LTD. Sean McBride – BELANGER INC. Matt McCulloch – TRANSCHEM INC. Christal Narday – VALET CAR WASH Chandra Saran – CANADA WASHWORLD Rudy van Woerkom – BELVEDERE TECHNICAL SERVICE LTD. NATIONAL OFFICE Finance Director Karen Dalton CAE Operations Director Kiki Cloutier Manager Membership Elizabeth Tang Canadian Carwash Association 4195 Dundas Street West, Suite 346 Toronto, ON M8X 1Y4 Tel: 416.239.0339 Fax: 416.239.1076 office@canadiancarwash.ca www.canadiancarwash.ca

FIND A

CARWASH iTHE CARWASH SEARCH FEATURE h

canadiancarwash.ca/search

on the CCA website has close to a thousand member sites on it. Is your carwash listed? Member sites are listed for free, so contact office@canadiancarwash.ca for more information.

K

ent Group Ltd in conjunction with the Canadian Carwash Association presented a 30- minute webinar on the Wash Volume Report (WVR) program in December. The webinar covered the benefits of participating for carwash operators and is available to view online at http://canadiancarwash.ca/wvr

The webinar presented the following information: s $ATA#OLLECTION2EPORTING4IMING$ATASUBMISSIONPROCEDURES s 2EPORTING2EGIONS,ISTINGANDEXPLAININGWHERETHEBOUNDARIESAREAND what regional reports participants in areas that they submit data for; s 2EPORT3AMPLES1UARTERLY.ATIONAL 1UARTERLYFORAREGIONALMARKET 9EAR 4O $ATE2EPORT.ATIONAL 9EAR 4O $ATE2EPORTFORAREGIONALMARKET ANDA"Y 4YPE2EPORT .ATIONALAND s #ONFIDENTIALITYPROTOCOLS 5NDERTAKEN FOR THE ##! BY +ENT 'ROUP ,TD A RESEARCH FIRM SPECIALIZING IN THE GAS STATION AND CAR WASH INDUSTRY THE 762 IS A NATIONAL QUARTERLY SURVEY OF MORE THAN CARWASHSITESIN#ANADA-EMBERSOFTHE##!MAYPARTICIPATEINTHE762 PROGRAM AND RECEIVE RESULTS SPECIFIC TO THEIR REGION AT NO EXTRA COST BEYOND THEIR membership fee.


INDUSTRY FORUM DEDICATED TO SHARING KNOWLEDGE AND BEST PRACTICES IN THE CARWASH INDUSTRY

WASH VOLUME REPORT CANADA AVERAGE REVENUE PER MACHINE BY MACHINE TYPE $200,000

COIN OPERATED

$180,000

2016 NEW MEMBERS OF CCA!

The Canadian Carwash Association (CCA) was pleased to welcome new carwash owners and operators and SUPPLIERSTOTHE!SSOCIATIONIN4HEFOLLOWING companies became members of the CCA:

CONVEYER HYBRID

$160,000 $140,000

ROLLOVER HYBRID

$120,000

FRICTION CONVEYER

$100,000 $80,000

TOUCHLESS CONVEYER

$60,000

FRICTION ROLLOVER

$40,000 $20,000

TOUCHLESS ROLLOVER Q3 2016

Q2 2016

Q1 2016

Q4 2015

Q3 2015

Q2 2015

Q1 2015

Q4 2014

Q3 2014

Q2 2014

Q1 2014

Q4 2013

Q3 2013

Q2 2013

Q1 2013

Q4 2012

Q3 2012

Q2 2012

Q1 2012

Q4 2011

Q3 2011

Q2 2011

Q1 2011

Q4 2010

Q3 2010

Q2 2010

Q1 2010

0

T

HETHIRDQUARTERRESULTSFOR CARWASHSITESGENERATEDTOTALREVENUE of $48.1 million with the average revenue per cycle of $8.24 and average REVENUEPERSITEOF WHICHCOMPARESTO INTHETHIRDQUARTER OFLASTYEAR4HEAVERAGECYCLESPERSITEWASDOWNOVERTHETHIRDQUARTER OF  4HE PREVIOUS FIVE YEAR MINIMUM AVERAGE OF REVENUE PER CYCLE WAS ANDTHEMAXIMUMAVERAGEREVENUEPERCYCLEWAS#OINOPERATED MACHINESGENERATEDANAVERAGEREVENUEOF PERMACHINEWITHAVERAGE CYCLESOF FORTHEQUARTER!VERAGEREVENUEPERCYCLEFORCOINOPERATEDSITES IS4HEFULL7ASH6OLUME2EPORTFORTHETHIRDQUARTEROFISAVAILABLE to members on the CCA website.

CALL FOR DIRECTORS FOR THE CCA BOARD The Canadian Carwash Association (CCA) Nomination Committee is now accepting nominations for Directors to stand for election at the upcoming Annual General Meeting taking place at the Toronto Congress Centre in Toronto at CARWACS on March 8th, 2017. Nomination forms are available online at www. canadiancarwash.ca/agm and must be received no later than Friday, January 13th, 2017.

Dr. Detail (1998) Inc., Brampton, ON; Sparkle Express Car Wash, Edmonton, AB; Brady Heidinger, Melville, SK; Auto Bath Car Wash, Calgary, AB; Wolf Distributing, Spruce Grove, AB; Tofield Car R.V. & Truck Wash, Tofield, AB; Fortress Capital Inc, Calgary, AB; Pinnacle Scopes Inc., Cobourg, ON; Markland Realty, Happy Valley-Goose Bay, NL; W. M. Mueller, Parkhill, ON; Easy Lock Self Storage, Okanagan Falls, BC; Phantom Enterprises, Hay River, NT; Bluestar Engineering Ltd., Calgary, AB; Dieppe Carwash, Dieppe, NB; Langenburg Esso, Langenburg, SK; Tempus Real Estate Capital, Red Deer, AB; Signature Autowash Ltd., Casa Rio, SK; JMH, Sherwood Park, AB; Caruso Danielson Inc., Kelowna, BC; Shaun Wildman, Regina, SK; 1889750 Alberta Ltd / Auto Clean Car Wash, Calgary, AB; MacEwen Petroleum Inc., Maxville, ON; Vinh Vu, Mississauga, ON; Arthur Car Wash, Waterloo, ON; Martensville, SK; 2159360 Ontario Inc.; Brampton, ON; RMTA Holdings, Martensville, SK; Nanton Carwash, Nanton, AB; TheCarWashGirl, Chestermere, AB; In The Works, Komoka, ON; D’Lux Auto Spa Inc., Komoka, ON; Headbangers, Garden Lots, NS; Campbellford Mini Storage and Car Wash, Campbellford, ON; TAMEManagementConsulting, Nipawin, SK; 1995896 Alberta Ltd, Calgary, AB; LaSalle Premier Car Wash Ltd, Windsor, ON; Gestion BG, Kahnawake, QC; The Original Uxbridge Car Wash; Oshawa, ON; Vivid Carwash Tech Ltd., Bow Island, AB.

.EW MEMBERS CAN TAKE COMFORT IN KNOWING THAT they are joining a strong community of carwash owners and industry suppliers that stretch across ALL CORNERS OF THE COUNTRY -EMBERSHIP IN THE ##! PROVIDESMEMBERBENEFITSTHATWILLMAKEYOURBUSINESS STRONGER4HROUGHTHE!SSOCIATIONSBENEFITSPROGRAM ##! MEMBERS CAN TAKE ADVANTAGE OF THE #ARWASH 4OOL+IT˜ SERIES PREFERRED INSURANCE RATES THROUGH %RB  %RB )NSURANCE "ROKERS ,IMITED FREE ACCESS TO #!27!#3 IN 4ORONTO IN -ARCH AND #ALGARY IN /CTOBER MEMBER ONLYACCESSTO7ASH6OLUME2EPORTS ONINDUSTRYSTATISTICS ANDSOMUCHMORE#URRENT##! members can visit the CCA website for more detail about the different types of benefits their membership provides. Prospective members can learn more about CCA membership at www.canadiancarwash.ca. CANADIAN CARWASH ASSOCIATION


Profile for ensembleiq

CSNC - Jan 2017  

CSNC - Jan 2017