__MAIN_TEXT__

Page 1

    

19

      

FEATURE OFFERS PAGE 36

    

OPERATORS LOOK TO HAND HELD NUTRITION TO STRENGTHEN SALES

      

YCM COVER

Portables PERFORM

PM42940023 • $12.00 CCentral.ca @CCentral360 May 2017


Tobacco advertising is not available in the digital issue

2

MAY | JUNE 2017

CCentral.ca


Tobacco advertising is not available in the digital issue

CCentral.ca

MAY | JUNE 2017

3


IN MARKET: March 27th – May 20th

The Doritos* brand is partnering with Marvel Studios’ Guardians of the Galaxy Vol. 2 to give away EPIC PRIZES. Look for Codes on specially marked Doritos* products for a chance to WIN† movie tickets, amazing weekly tech prizes and a grand prize guardian getaway for 2 to Iceland! † No purchase necessary. Internet access required. Open to Canadian residents only, 18+. Mathematical skill-testing question required. Contest Period: 12:00 pm ET on 03/27 to 11:59:59 pm ET on 05/20/2017. Daily Prizes: Forty (40) available each day (ARV $13.50). Weekly Prizes: enter 4 codes in 1 week for chance to win a weekly prize; one (1) available each week (ARV $549 - $1,027). Grand Prize: enter codes for all 6 characters for chance to win grand prize; one (1) trip for two (2) available to Reykjavik, Iceland (ARV $10,789). Odds of winning depend on entries received per draw. On-pack codes available while supplies last. Limit one (1) entry per unique code. Conditions/restrictions apply. For rules and prize details, visit www.DoritosContest.ca. www.marvel.com © 2017 MARVEL

Tap into the Success of Smartfood* Jalapeño Cheddar popcorn LAUNCH TIMING: Apr 24th, 2017

PERMANENT LISTING Size: 45 g

Please contact your PepsiCo Foods Canada representative for more details. * Trademark used under licence by Frito Lay Canada


    

          

MAY/JUNE 2017

70

Volume 22 | Number 3

    

          

    

          

25

16

HALL OF FAME ADVERTISERS

CONTENTS

Casa Cubana................................................... 33

06 Editor’s Message

The Convenience U CARWACS Show – Calgary............................ 11

Fewer staff, more service

Ford Motor Company of Canada....................... 8 JTI-Macdonald Corp.......................................... 7

09 Chew On This

National Smokeless Tobacco Company........ 2, 3

Upcoming industry events

PepsiCo Foods Canada..................................... 4 Perfetti Van Melle............................................ 19 Promo Select - Period 3............................ 36, 37 Regal Confections........................................... 23 Le Salon des dépanneurs du Québec....................................................... 24 Vidal Candies Canada...................................... 13

CCentral.ca

10  Build A Buzz Häagen-Dazs innovation

19

12  Expert Opinion Decoding category management for c-stores

14  Data Mine Lottery

16 Celebrating

excellence Convenience U CARWACS Hall of Fame Awards

NEW OFFERS PAGES 36-37

20  COVER

Nutritious Portable Snacks Portables perform

25  Confectionery

Planograms Merchandising 101

30  Micro C-Stores No staff, no problem

34  Snapshot Prepaid cards

MAY | JUNE 2017

5


    

           TM

EDITOR’S MESSAGE 70

CANADA’S CAR WASH & PETROLEUM MAGAZINE

2300 Yonge Street, Suite 1510 M4P 1E4 (416) 256-9908 (877) 687-7321 Fax (888) 889-9522

     Toronto, ON

          

www.CCentral.ca

FEWER STAFF, MORE SERVICE

GROUP PUBLISHER Jennifer Litterick jlitterick@ensembleiq.com                 VICE PRESIDENT/DIRECTOR, EVENTS & MARKETING Michael Cronin mcronin@ensembleiq.com AUDIENCE DEVELOPMENT MANAGER Lina Trunina ltrunina@ensembleiq.com WEB OPERATIONS MANAGER Valerie White vwhite@ensembleiq.com EDITORIAL EDITOR Kelly Gray kgray@ensembleiq.com ONLINE EDITOR Nikki Lockington nlockington@ensembleiq.com

I was speaking with a c-store operator from BC’s lower mainland. She told me business could be fantastic if only they could find workers to help run the busy store. As it was they were down two staff for a key weekend shift and had all but one worker quit for the late nighttime slot. She and her husband were making up the difference and it was taking its toll on their marriage. Similar stories are played out across the country with c-retail facing a tough staffing shortage that has not improved over the past 20 years. More than 40% of operators report challenges. Yes, there have been efforts to improve the industry’s HR state of affairs with things such as the Federal Government’s Foreign Temporary Worker program and hiring incentives from both chains and independents. Still, the industry is short thousands of workers. Help is likely going to come from technology. Already there are a growing number of convenience retail businesses that are known as ‘unattended markets’. These sites, now found in industrial settings, universities, and condo developments, mirror some of the practices already seen in lumber stores, large grocers and other retailers where customers scan their purchases, bag their goods, pay and leave without human interface. Could this be the future for convenience? Already Japan is showing the way. Some stores there (Primo Express is one example) are using an innovative program where a QR code on packaging is scanned by c-store customers who just pick it up and leave the site with charges going automatically to credit cards or digital wallet. Cameras watch the action to limit any theft. Staff do not wait behind a cash desk, rather they roam the shop offering service, product advice and selling. Merchandisers drop in regularly to stock shelves and freshen up the shop. Certainly, this form of retail is not for every application, but as technology moves forward expect advances that will address challenges such as staffing shortfall. Indeed, much of what is needed to make this form of retail go is already available. Are your customers ready for this change?

– Kelly

standard

kgray@ensembleiq.com

TRANSLATION Danielle Hart ADVERTISING SALES DIRECTOR OF PARTNERSHIPS David Wood dwood@ensembleiq.com SALES REPRESENTATIVE Elijah Hoffman ehoffman@ensembleiq.com SALES & EVENTS COORDINATOR Claudia Castro DESIGN & PRODUCTION DIRECTOR OF PRODUCTION & DESIGN CANADA Derek Estey destey@ensembleiq.com PRODUCTION MANAGER Michael Kimpton mkimpton@ensembleiq.com

CORPORATE OFFICERS EXECUTIVE CHAIRMAN Alan Glass PRESIDENT & CEO Peter Hoyt CHIEF OPERATING OFFICER Richard Rivera CHIEF BRAND OFFICER Jeff Greisch CHIEF FINANCIAL OFFICER Len Farrell CHIEF BUSINESS DEVELOPMENT OFFICER & PRESIDENT, ENSEMBLEIQ CANADA Korry Stagnito PRESIDENT OF ENTERPRISE SOLUTIONS/ CHIEF CUSTOMER OFFICER Ned Bardic CHIEF DIGITAL OFFICER Joel Hughes CHIEF HUMAN RESOURCES OFFICER Greg Flores

ART DIRECTOR Glenn Taylor gtaylor@ensembleiq.com CONTRIBUTING DESIGNER Christian Lemay

SUBSCRIPTION / ADDRESS CHANGE Please contact Lina Trunina ltrunina@ensembleiq.com

LICENSING AND REPRINTS Please contact Wright’s Media ensembleiq@wrightsmedia.com 1-877-652-5295

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, Mondele¯z International; Tim Corkum, Rothmans, Benson & Hedges Inc.; T. McGowan, Nestlé Canada

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.

no gradients

Printed in Canada at Transcontinental

BE A PART OF OUR COMMUNITY!

PM42940023 watermark

CHANNEL ALLIANCES stacked logo (for sharing only)

CCentral.ca

6

E-newsletter

MAY | JUNE 2017

Convenience Central

@CCentral360

ConvenienceChannel CCentral.ca


Tobacco advertising is not available in the digital issue


FORD COMMERCIAL VEHICLES

THIS IS WHERE CUSTOMIZATION AND CAPABILITY MEET KNOWLEDGE AND SUPPORT. For movers. For plumbers. For diggers. For lifesavers. For framers. For builders. There’s a Ford Commercial Vehicle for that. There’s also a Ford Commercial Vehicle specialist ready to help make equipping your business easy. Our experts will be by your side before, during and after sale, offering vehicle advice, customized �nancing and maintenance solutions, and a nationwide network of Ford-approved up�tters and modi�ers. When you’re ready, talk to us.

FORD.CA/BUILTFORBUSINESS

2017 TRANSIT CONNECT

2017 TRANSIT

Vehicles may be shown with optional features. ©2017 Ford Motor Company of Canada, Limited. All rights reserved.

2017 F-150

2017 SUPER DUTY


CHEW ON THIS standard

no gradients

watermark

stacked logo (for sharing only)

CCentral.ca

E-newsletter

Convenience Central

@CCentral360

ConvenienceChannel

CALENDAR OF EVENTS OCSA CHARITY GOLF TOURNAMENT THURSDAY, JULY 20, 2017 Blue Springs Golf Course, Acton, ON ontariocstores.ca

CONVENIENCE STORE DAY, ATLANTIC CANADA AUGUST 30, 2017

Nova Scotia, New Brunswick, Newfoundland & Labrador, Prince Edward Island theacsa.ca

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

THE CONVENIENCE U CARWACS SHOW CALGARY OCTOBER 3-4, 2017

NATIONAL CONVENIENCE INDUSTRY SUMMIT (NCIS) SEPTEMBER 26-28, 2017

ACSA RETAIL CONVENIENCE AWARDS GALA NOVEMBER 9, 2017

Place Forzani, Laval, QC salondec.com

Le Concorde, Quebec City, QC nacda.ca

BMO Centre at Stampede Park, Calgary, AB convenienceu.ca

Halifax Marriott Harbourfront Hotel, Halifax, NS theacsa.ca

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

WEIGH IN TO WIN! Answer our latest poll question on CCentral.ca for your chance to win a Regal Confections prize pack!

“If products are good and you can get them into people’s hands, you stand a very good chance of making additional sales moving forward.” Jim Stuart, General Manager, Timber Falls Store and Auto Spa

Turn to PAGE 20 to learn more about the growing nutritious portable snacks category CCentral.ca

‘‘ WIN! Have Your Say

for a chance to MAY | JUNE 2017

9


BUILD A BUZZ

INNOVATION

IS YOUR STORE READY FOR HAPPY HOUR? Drive sales with new super premium Spirits Collection innovation from Häagen-Dazs BY NIKKI LOCKINGTON

This spring, Häagen-Dazs is introducing five new flavours to its lineup, which presents an opportunity for c-retailers to build sales and excitement in the super premium ice cream category. The new Spirits Collection offers a twist on a favourite brand by expertly combining them with premium spirits. To make the most of this innovation, shelve the Häagen-Dazs Spirits SKUs within the super premium packaged ice cream segment. Be sure to create proper brand blocking for the Häagen-Dazs base (burgundy) SKUs, Gelato SKUs and Spirits SKUs. To boost sales for the Spirits innovation segment, choose a shelf at eye-level.

5 THINGS YOU SHOULD KNOW

ABOUT THIS SPRING’S HÄAGEN-DAZS INNOVATION: 1. HÄAGEN-DAZS IS KING OF SUPER PREMIUM.

Häagen-Dazs leads the super premium ice cream segment with a 55% share1. This means customers already know and love the brand, and will want to try innovations when they see it in store.

2. HÄAGEN-DAZS IS A GROWING BRAND.

Häagen-Dazs is driving growth within the ice cream segment at approximately +9%1.

10

MAY | JUNE 2017

3. THERE ARE FIVE NEW FLAVOURS TO TRY.

Häagen-Dazs is introducing a brand new collection of five alcohol-infused ice creams, including Irish Cream Coffee & Biscotti, Whiskey Chocolate Truffle, Rum Vanilla Caramel Blondie, Rum Ginger Cookie, Vodka Key Lime Pie.

4. THE FLAVOURS ARE ON TREND.

5. THE PRODUCT FEATURES ARE APPEALING

Häagen-Dazs is made with 100% Canadian Dairy and only the finest ingredients. Sources:  1 ACNielsen All Channel, Latest 52 weeks, period ending January 7, 2017 2 Food and Beverage Datamonitor Consumer, 2013 3 Canadian focus groups, millennials and core consumers Jan 2016

Alcohol drink-inspired flavors are transforming food and beverage markets, and are considered the #3 top food and beverage trend2. In addition, alcohol infused flavours scored highest with Häagen-Dazs and ice cream consumers in focus groups3.

CCentral.ca


GAS

WASH

CONVENIENCE

WHERE BUSINESS HAPPENS!

CALGARY BMO CENTRE

OCTOBER 3-4, 2017


EXPERT OPINION

CATEGORY MANAGEMENT

DECODING CATEGORY MANAGEMENT FOR C-STORES The channel has lagged behind in adoption of the practice BY RENEE M. COVINO, CONVENIENCE STORE NEWS

Category management has been around for decades — except in the convenience channel where strategic advancements are only more recently gaining traction, but often with points to ponder. When a c-store buyer or merchandiser morphs into a category manager, does that mean the chain is practicing top-down category management? Does a category management title equate to category management training? How about the differences among c-store types such as neighborhood stores, commuter stores and interstate stores? Are the distinguishing characteristics and demographics of each taken into category management consideration? And what about the increasing industry consolidation — the restructuring of c-store chains that buy out other chains — how do the category management practices of one get aligned with the other? These are just some of the questions offered up by category management experts who are working to better educate and evolve the convenience channel as it moves forward on the two basic words — category and management — that, when put together as a retail business concept, add up to complex and differing definitions. While most industry professionals agree on the prize — increased profit and customer satisfaction — ­ the ambiguity over the practice of category management starts with the fact that it lacks a single, clear definition. The Nielsen Co. has labeled it a process that involves managing product categories as business units and customizing them (on a store-by-store basis) to satisfy customer needs. The grocery industry, where the practice of category management began, originally defined it as the 12

MAY | JUNE 2017

strategic management of product groups through trade partnerships that aims to maximize sales and profit by satisfying consumer and shopper needs. More recently, category management at its core has become a discipline that allows retailers to manage merchandise productivity through sales analytics, as Brian DeLong, senior vice president of marketing agency Catapult, told Convenience Store News.

The harnessing of big data and subsequent insights will evolve to further improve shopper understanding.

Traditionally, the key metric has been space to dollars, with category managers answering the question: How productive is this amount of shelf space? DeLong explained that category footprint and assortment, along with some pricing decisions, were often based on this simple efficiency model. “But it has become so much more complicated with the addition of store operations, transaction composition, item incrementality, shelf presentation, shopability, profit contribution and trip missions,” he said. “Across retail channels and formats, category management is being used for more than simple management of shelf productivity,” he continued. “It is responsible for driving store differentiation, shopping experience and store growth through higher-value trips and shoppers.” CCentral.ca


C-STORES’ SLOW CRAWL Many believe that even more “catman” complexity surrounds the convenience channel, which has lagged behind in the practice. The reason for this, according to experts, is partly the significant differences in convenience store types, such as the aforementioned neighborhood store vs. the highway store. These differences were not addressed in the traditional category management practices outlined for supermarket retailers decades ago. Another reason for c-stores’ slow crawl into category management initially was the fact that easy-to-manipulate data was so scarce in this channel. The way Category Management Knowledge Group (CMKG) President Sue Nicholls views category management in the convenience channel, it is used by the larger chains, “but not all individuals with category management titles have undergone category management training,” she emphasized to CSNews. She further observes that many mid-sized and small retailers either do not utilize the practice or they use it on a limited basis. “They may also outsource it to their suppliers vs. participating as a team with the retailer as the leader,” she stated. Overall in the convenience channel, internal data is underutilized and “retailers rely too much on third-party information and input in their decision-making,” according to Nicholls. But she sees the opportunity for c-stores “to create their own internal category management strategies and best practices (including defining their target shopper); train their team on the strategy and how to make more- aligned and fact-based decisions in their jobs; and lead the charge instead of being led to ensure they are making the best choices for their stores and shoppers.” Recognizing the opportunity to “convenienceize” its certified category management training, CMKG recently partnered with b2b Solutions LLC in developing a new online category management training program that’s tailored specifically for convenience and small-store retailers, based on needs identified by the NACS category management standards for c-stores. Nicholls said she is “blown away” by how many retailers don’t buy into category management training and she identified this as

CCentral.ca

one of the convenience channel’s biggest barriers to establishing an effective category management foundation. Another barrier is that c-store category managers are limited until they are armed with a strong strategic direction and a documented retail positioning from senior management. Among the overarching strategies that senior management must effectively articulate are: vendor collaboration, the target shopper, competition and private label brands, Nicholls advises. BIGGER DATA, BETTER SHOPPER UNDERSTANDING Going forward, the tools for effective category management are evolving. More data is available than ever before, with some retailers accessing store-level and hourly point-of-sale scan data, transactional data and shopper data. THE NEXT EVOLUTION? BIG DATA, ACCORDING TO NICHOLLS With more data comes improved technologies. “Ultimately, retailers are going to require less technologies that integrate more data sources for a more effective view of the data,” she explained. “The harnessing of big data and subsequent insights will evolve to further improve shopper understanding.” Collaborations between retailers and vendors are evolving, too. “This partnership goes beyond category captains and represents an opportunity for most retailers and vendors,” Nicholls maintains. Vendors that sell to the convenience channel “need to ground themselves in the foundations of category management and realize the significant differences not only vs. other channels they may sell in, but across store types and formats within the channel,” she said. “There are some common practices evidenced in the c-store channel that have too much focus on contracts, negotiations and ‘the way it’s always been done’ and not enough focus on the shopper and what the retailer is trying to accomplish,” she stressed. This article was originally published in Convenience Store News’ Guide to Category Management issue.

MAY | JUNE 2017

13


DATA MINE

LOTTERY

BIG WINNER

Lottery and gaming products are key revenue drivers for c-retail. Is your store taking full advantage of the opportunities? BY KELLY GRAY

C-STORES ARE WHERE CANADIANS SHOP TO WIN AND THIS DRIVE FOR GOOD FORTUNE HAS MADE C-RETAILERS BIG BENEFICIARIES IN THE LOTTERY PRODUCT GAME. In fact, the industry sold $7.8 billion worth of scratch tickets, lotto, and game cards last year. This comprises one of the biggest sectors for convenience gross profit and gives Canada’s collection of chain and independent quick service retailers top spot in the sales of gaming goods. In Ontario C&G comprise 75.6% of all lottery sales. And, says Executive Director of Sales, with Ontario Lottery and Gaming (OLG), Larry Colatosti, all categories are rocking. “Twenty-three percent of lottery sales are impulse with 77% destination sales,” he says, mentioning that lottery is a destination category in C&G and one of the key traffic drivers. Colatosti reports that sales of s the $30 dollar lottery tickets have done i y r L ot te ry exceptionally well and surpassed o g e G, at expectations. “At first there was #1 chased in Ct&three c concern and we soon discovered that s r o u p lm ing a raf fic public acceptance of the higher price draw s more t ghest ticket was massive,” he says. time nex t hi the . y n r a o h g t c a te

OUT EAST

In the Atlantic region, the Crossword Scratch N’ Win tickets are a strong leader, capturing more than a third of the category’s sales. Other products such as Set for Life and LOTTO MAX are also consistent sellers. According to Scott Grant, Director of Sales and Sales Support with the Atlantic Lottery Corporation, the Christmas season is a particularly good season for lottery product sales. “The week prior to Christmas, we sold over $6 million in Scratch’n Win, an increase of 40% over a typical week. It was record-breaking,” he says, reporting that they were poised to take full advantage with Christmas-themed products like the popular Mega Pack. “Our pull-tabs are also very strong, but certainly don’t rival Scratch N’ Win ticket sales.” “Newfoundland and Labrador has the strongest market for pull-tab (or Breakopen) tickets with about 14

MAY | JUNE 2017

F

o 65% of overall sales inctrips ur i lu t n coming from the wh de o C 10 province,” he says, up i c h lo &G se ll o mea tte noting that pullpp ns is ortun the ry, tabs are typically big ity $0.50 to $1, but that Atlantic Lottery is now looking at adding a $2 product. Grant adds that, like in most provinces, compliance is always top of mind and making sure operators are not selling to underage buyers is an important part of the corporation’s responsible gambling strategy. “A couple of years ago we were seeing age-ofmajority compliance rates between 75% and 80%. Last year we worked to improve and saw rates climb to 85%. In Nova Scotia alone, we have 90% compliance and our goal is to improve even more as we work to educate and train our retailers.” New initiatives from the Atlantic Lottery Corporation include wireless jackpot signs where message boards can be digitally changed networkwide. This means less work for retailers, better and more timely information on winners, and impactful messaging that translates into sales. According to Grant, online lottery has an impact on retail but not in a marked way. “Ninety-five percent of gaming product sales still occur at bricks and mortar locations. Only 4.5% are sold online. To help retailers address the potential online impact on their sales, we have instituted Webcash where operators get a percentage of online revenue,” adds Grant. This spring, Atlantic Lottery will launch a new gaming system that will essentially transform the corporation’s product delivery and customer experience. Not only will the company be able to bring games to market more quickly and provide CCentral.ca


Ove r 75 ot te % ry r

of l

in O eve nue n thro tario is u gh C& G

greater opportunities for growth but with the new system Atlantic Lotteries will better positioned to compete in y an ever-changing gaming the r t tha othe environment. e im “The new player-facing cla chas with y r p u te m s ot ter system is the biggest i ir l technological advance we th e have had to date,” adds Grant. “With a better system and an enhanced player experience, we hope to increase profits which are then returned to our shareholders, the four Atlantic provinces.” This spring will also see the launch of the new national annuity-based draw game ‘Daily Grand’ into the Atlantic market following a successful rollout across the country. This summer, the Atlantic Lottery Corporation will introduce a new promo engine for special offers. And last, look for a new regional game coming this fall.

% 7 6

BC

In 2015/16 Lottery and eGaming net income of $304.2 million exceeded 2013/14 by $0.1 million, but fell short of expectations by $7.5 million. Overall revenue of $1,103.4 million was down $20.1 million (1.8%) from 2013/14 and $19.7 million from the target (1.8%). Profitability was up most notably in the Social category (which includes Poker Lotto, Keno, BC50/50, and Sports Action), driven by strong Keno performance. Overall, sales in the Social category were up $11.9 million over the previous year and exceeded budget by $13.1 million. Lotto sales, however, fell $48.1 million from the previous year and $57.5 million below budget, largely due to a lack of jackpot rollovers, resulting in smaller jackpots than previous years. Throughout 2014/15, BCLC continued to invest in PlayNow.com, increasing the frequency of new casino-style game launches and product enhancements. Overall, eGaming revenues rose $18.1 million over 2013/14 – a 19.9% increase. In 2015, BCLC launched Mega Packs at 14 COSTCO locations in the province. Here One in two customers could buy a $30 consumers pack of tickets for $25. The up will buy lottery side for convenience retailers is if asked. that COSTCO does not do ticket validation leaving this to traditional retailers such as C&G. Following this successful Mega Pack launch at COSTCO, BCLC introduced $20 Diamonds and Dollars in April of 2016. This launch was months ahead of the province-wide launch (September 2016) and was CCentral.ca

targeted specifically to COSTCO membership where BCLC saw an opportunity to generate a new player base and drive awareness of BCLC products.

QUEBEC

According to Loto-Québec spokesperson Brian LeCompte, the province’s gaming product network spans more than 8,500 retailers across Québec. 6.7 Million or Loto-Québec 58% of adults provides these in Ontario purchased retailers with lottery tickets ad materials and in the past year sales supplies. “Retailers and their employees take many online training courses to familiarize themselves with terminal functionalities and to acquire the knowledge they need to sell lottery products. Furthermore, LotoQuébec’s sales training service offers a telephone help line and, in some cases, training sessions at the point of sale,” he says adding that lottery products generate traffic for several reasons. “Big jackpots are supported with heavily funded push advertising campaigns, generating yet more traffic to lottery retail outlets. The in-store advertising provided are excellent sales tools, as they increase top-of-mind amongst.” In Quebec, scratch tickets are highly popular and show a marked consumer response, especially for products offering lifetime annuities such as Gagnant à Vie! or tickets from the Bling Bling family (Mega Cash). “We observe a direct cause and effect following the launch of an ad campaign, an effect which continues on well after the end of the campaign and which spills over onto other products. Retailers can also create enticing group tickets using Formule groupe to spur return visits for ticket verification, validation and claims.” Loto-Québec’s latest annuity lottery, Grande Vie, is a pan-Canadian terminal-based draw lottery product marketed as Daily Grand outside Québec. “This lottery was launched last October 18 and sales have been increasing steadily. Draws take place in Mondays and Thursdays, giving consumers a reason to stop by retail outlets on what were formerly non-draw days (Lotto 6/49 draws take place on Wednesdays and Saturdays, and Lotto Max is drawn on Fridays.),” says LeCompte, concluding that retailers need to be in the game to win with lottery and gaming product sales. MAY | JUNE 2017

15


HALL OF FAME

CELEBRATING

excellence

Event photography by John Packman

Introducing the 2017 Hall of Fame Winners BY KELLY GRAY

16

MAY | JUNE 2017

CCentral.ca


Kelly Gray, Editor, YCM/VIG

QUICKIE CONVENIENCE STORES

Studio photography by Mike Ford

By staying close to home with a customer responsive mix of products and services and by giving back to the community it serves, Quickie Convenience Stores has created the kind of spirit that drives success.

Chris Wilcox, Vice-president and General Manager, Quickie Convenience Stores

CCentral.ca

Quickie Convenience Stores is a 53-location chain serving Eastern Ontario and Western Quebec (Depanneurs Quickie) from its base in Ottawa. With a motto of ‘Your good neighbour’ the company has walked the talk since being founded in 1973. Today stores range in size from a transit station kiosk of 400 sq. ft. up to 5,000 sq. ft. combo stores (gas-convenience-foodservice). “We operate locations in a mix of urban, suburban and rural markets,” says Chris Wilcox, Quickie Convenience Stores’ Vice-President and General Manager. “Being a relatively small chain gives us a little more flexibility in how we tailor the offer, look and feel of each individual store that averages about 2,400 square feet. Our urban downtown stores will carry an expanded selection of grocery, frozen and meal replacement options. We also carry imported groceries in these locations to appeal to a more cosmopolitan customer.” Chris comments that as neighbourhoods change with an influx of new Canadians they have stepped up with meaningful product assortment. “Twenty years ago the largest selling bread SKU was white bread. Today, Injera bread (an unleavened bread with Ethiopian origins) is on the verge of matching white bread in unit and dollar sales. In these same stores, bulk rice, halal product and a variety of ethnic spices and sauces have also found their way into our store layouts as neighbourhoods transform and customer taste evolves.” He reports that wherever possible, they seek to take advantage of their convenient locations with ancillary services. For example, Quickie has struck a partnership with a parcel pickup and delivery provider that can now be found in most of their sites.  “While the service on its own provides only a modest return, it is the foot traffic from a wider geographic area that is most valuable to MAY | JUNE 2017

17


us,” he says noting that Canada Post is testing a similar concept in one of their stores. “We also work with partners like Subway, McDonald’s and Tim Hortons in our large format combo stores but we are not averse to working with local food service icons. In Ottawa we have worked with local pizza take-out brands and a local well known poutinerie. The point being that store locations where a chain restaurant may not be interested in partnering you might be able to find a locally famous brand that can be just as successful.” With 22 gas stations in the Quickie chain, fuel is the number one category. “Tobacco is still our number one in-store category but because we operate a number of stores in Gatineau, QC, beer and wine is also an important sector. As an industry, we should continue to fight hard to win the right to carry these products in Ontario. As tobacco gradually fades into the sunset we will need the beverage alcohol category to replace some of this revenue,” he says.  While foodservice sales in the branded restaurants and cold vault sales (soft drinks, energy drinks, water) are a large component of Quickie’s business, grocery sales have made some inroads over the last few years. “Our investments in packaged and frozen are beginning to pay dividends. Two trends are driving this category,” he says pointing to more people moving into downtown food deserts and time starvation moving customers to look for convenient options. “Fresh and full meal replacement are the areas

where I think our urban stores have more room to grow.” You can’t create the success Quickie has demonstrated without giving back to the community. According to Chris the company has been stepping up to help since its inception. Here he mentions their annual ‘Le Tour des Quickie’ bike ride for charity that has become one of the region’s best known fundraisers. “Several years ago our CEO, Arnold Kimmel, was asked to sit on the board of the Children’s Hospital of Eastern Ontario (CHEO).  Mr. Kimmel wanted to do something unique to support CHEO and came up with an annual charity bike ride called Le Tour des Quickie that has since morphed into an annual rite of spring in the Ottawa area. Quickie, with the help of its many vendors and corporate friends ran the event for seven years absorbing all the management and operation costs meaning 100% of the funds raised went to CHEO. During the seven years we ran the event, over the 2.1 million dollars was donated to Ottawa area hospitals. Out of Le Tour des Quickie sprang the Quickie Community Foundation which annually supports over 20 different charities ranging from the United Way to The Alzheimer’s Society.  The community expects its corporate citizens to give back to the community and we expect it of ourselves.  Giving back to community is good for the soul of any successful business and by helping build your community you also help build the spirit and pride of your team.”

MIC’S KWIK WAY Mic’s Kwik Way has earned its success by understanding customer needs and delivering meaningful service to the people in Northern Ontario’s Blind River Since 1968, Mic’s Kwik Way in Blind River, ON has been the town’s place for everything from a cold soft drink to a bag of pet food. Today, the operation is owned by Jim Smith, a dedicated retailer that took the store over from his parents John and Lorriane in 1996. “We offer a lot to the community in terms of selection and service,” says Jim, reporting that the store is 2,000 sq. ft. of retail space that stands alongside a a Subway foodservice franchise that he got going in 1998. “When we took over the location from my parents in 1996, we removed the laundry and got rid of the pizza restaurant in favour of quick-service sandwiches. We were able to bring the square footage of the store up to 2,000 sq. ft. and increase our range of general grocery items.” According to Jim the day-to-day challenge is to increase sales. “Since taking the store over from my dad in 1996 we have had 20 years of continual growth. I have to thank our distributor Lumsden Brothers here. Working with Gino and Darrel we have been able to increase our product lines and maintain stock consistency thanks to our regular Thursday delivery,” he says, adding that his support from Lumsden’s as 18

MAY | JUNE 2017

Jim Smith, Operator, Mic’s Kwik Way

CCentral.ca


well as his drive to enhance service allowed him to take the store from a ‘build it and they will come’ mentality to a store that is more customer responsive. “Twenty-five years ago tobacco was 50% to 60% of our business. Today its 12% and we have been able to make up the difference with things like specialty pet foods, fresh flowers that we merchandise at the till and general grocery.” The store is run by a cohort of 16 workers whose ages are spread between youths and seniors. In fact, Jim tells that they like to pair a younger worker with one that is older. “This way the younger worker learns about work ethic and customer service from someone who has experience. I was able to learn a lot from my mom who worked with me for 17 years and only retired a few years ago. I call her my ‘right-hand man’ and she, as well as my dad, gave me a good grounding in retail even before I took on the store.” Mic’s Kwik Way also contributes to the community. “The town is just 3,500 people and everyone has to pitch in to create a great place to live. We deliver to the breakfast clubs at the local schools and donate product or price discounts to help fundraising events. We still offer the kind of services people in the city no longer see. For example, we will cash a personal cheque and offer house accounts to maybe a 100 customers. We want people to know we are there for them and they have responded by making us a successful business over these past 20 years.”

We like to pair a younger worker with one that is older. “This way the younger worker learns about work ethic and customer service from someone who has experience.

A Delightful Caramel Chew with an Indulgent Chocolate Filling

ks Now Ava ulti-Pac ilabl M w e! Ne

Contact your local representative to learn more about our offers 1-800-268-5542 CCentral.ca

MAY | JUNE 2017

19


PORTABLES

PERFORM 20

MAY | JUNE 2017

Nutritious portable snacks are responding to consumer demands for quick, healthy between-meal food options. Is your store making the most of the opportunity? BY KELLY GRAY

CCentral.ca

SHUTTERSTOCK

N U T R I T I O U S P O R TA B L E S N A C K S


Millennials and other younger segments of the market are hungry for change in manufactured foods and these healthy options are seen as a move in the right direction.”

new product development efforts on healthy items over the next five years. What do retailers say? Stopping into a Co-op gas bar in Winnipeg last week, I picked up two Kind bars on the road out of town. The bars were in a standalone merchandizer offering a range of NPS in a prominent position facing the till. I asked the clerk about the sales from the display. She told me that on her shifts customers still bought traditional confectionery at least three to one. Even though the Kind bars were on promotion, near the till, and with ‘two-for’ pricing, she felt it was the higher cost of good-for-you products generally that kept them reaching their full potential and taking more sales away from confectionery. Jim Stuart agrees. Jim is General Manager of Timberfalls Store and Auto Spa in Steinbach, MB. He is

Q U TIP IC S: K

Canadians love snacking and no one does quick replenishment like c-stores. As a result, Canada’s quick-service retailers are seeing good numbers with snack foods up 4%* and meat sticks and jerkies up 10%* (*CCSA/Nielsen). Market researcher Euromonitor goes further showing that expectations for savoury snacks, fruit snacks, and snack bars are all strong with cumulative double-digit gains on the boards over the next five years. Who’s winning? Euromonitor reports in its 2017 Passport study that Health & Wellness Savoury Snacks’ top gun is Kraft Heinz Co. brand Planters followed by Lays and Blue Diamond Growers. In the fruit snacks segment, General Mills’ Betty Crocker is the market leader ahead of Sun Maid and Ocean Spray. In the nutritious snack bar sector, Nature Valley is the hands-down leader. Kellogg NutriGrain bars are number two and Power Bar takes the third spot. In its December 2016 look at Nutritious Portable Snacks (NPS), Nielsen points to granola snacks and fruit snacks as the leaders. Declines were seen in cereal bars, enrobed products and muffin bars, where both dollar sales and volumes were off considerably. In fact, enrobed snack products were down 34% in dollar sales and 42% in volume. No surprise then that Kellogg has announced a major launch of seven new products in the snack category with granola playing a major role. Indeed, six of the seven fall within the good-for-you sector with granola snacks, trail mix entries and quinoa bars all present in the range of new products. Other manufacturers have also been quick to get on the healthy snacking bandwagon. In 2015 Mondelez announced plans to have 50% of its portfolio contain ‘Well-being’ or healthy snacks within the next five years. Reports from the company’s Chief Growth Officer, Mark Clouse, state that the Mondelez ‘Well-being’ snack product range currently delivers about one-third of its total revenue and the company expects to focus 70% of

EDUCATE YOUR EMPLOYEES. Train staff in NPS product attributes to aid in suggestive till-side selling.

CCentral.ca

CREATE A MERCHANDISING STRATEGY.

Cross merchandize NPS with coffee or waters for strong add-on sales.

KNOW THE DEMOGRAPHICS.

Reach out to youthoriented organizations in your community to let them know you have nutritious snacks. MAY | JUNE 2017

21


Q U TIP IC S: K

MERCHANDIZE TO SELL.

DO YOUR RESEARCH.

ALLOW FOR TRIALS.

Offer samples to create post trial long-term sales.

a big fan of healthy snacks and offers a wide range of products that he considers to be better for his customers. These include locally sourced meat products, house-made soups like borscht and other items such as GORP, a hand made nutrient laden energy bar that is locally produced and internationally sold from the company’s facility on the family farm in Niverville, MB. Jim reports he cross merchandizes GORP and other NPS at the store’s coffee bar. “These items [NPS] tend to very impulse driven. We find that promotions such as the [NHL] Jet’s tie in with GORP as well as suggestive selling work well to move items that can be more expensive than chocolate bars or plain fruit. At Timberfalls they have a considerable following for the facility’s car wash that can see hundreds of customers per day. Jim tells that to increase sales in store they offer sampling to customers while they wait for their clean car. Today, he is offering his wash clientele a cup of their famous borscht, but given the kind of sales bump these trials deliver to the c-store, he plans to do more with NPS. “We follow other local promotions and compete,” he says, remembering a granola bar promo at Petro-Canada, where he matched the offer and increased sales as a result. “If products are good and you can get them into people’s hands, you stand a very good chance of making additional sales moving forward. With GORP we did initial sampling and have never looked back. We have never had to discount the product and see it consistently selling thanks to its clean recipe and strong package messaging that resonates with folks who are looking for better nutrition.” Stuart also merchandises NPS bars alongside traditional confectionery, but in a separate section. “This helps people find them among the rows of chocolate and candy,” he says. In Regina, George Klein operates Klein’s Food Marts. He reports that sales of things like granola bars and fruit snacks are niche oriented. “You have to know your customer. Here our customers tend to be older and are less interested in products they are not as familiar with. We have found that nutritious bars sell well following an ad campaign or promotion where awareness is driven and then they settle back.”

22

MAY | JUNE 2017

Utilize a dedicated secondary sales point to help customers differentiate between NPS and traditional confectionary items like chocolate bars.

Jim Stuart suggests that to keep sales up in this sector, operators have to be prepared to reach out to let customers know about new products and positive attributes. “We have friendly competitions among our counter staff to help drive sales through suggestive selling at the till. Nutritious portable snacks are perfect candidates for staff to ask if customers need a quick snack to go with their beverage purchase or a little something to get them through the afternoon,” he says. Jim concludes that his expectations are that the NPS sector will continue to grow as consumers move away from empty calories. “Consumers are more educated now than ever and are willing to spend more for a product they see as having a good-for-you glow. Millennials and other younger segments of the market are hungry for change in manufactured foods and these healthy options are seen as a move in the right direction.”

SHUTTERSTOCK

Team up with distributors to take advantage of promotions that raise product awareness and drive immediate sales gains.

CCentral.ca


REGAL

CCentral.ca

MAY | JUNE 2017

23


WHERE BUSINESS HAPPENS!

HAVANA HOUSE R E B EM

0 2 9 1 7 T

SEP

1 0 2

L AVA L , I AN

m o c . c onde RZ

FO CE PLA

sal

24

MAY | JUNE 2017

CCentral.ca


CONFECTIONERY PLANOGRAMS

101

MERCHANDISING PLANOGRAMS ARE YOUR KEY TO MERCHANDISING SUCCESS.

ARE YOUR SHELVES UP TO DATE?

SHUTTERSTOCK

BY NIKKI LOCKINGTON

CCentral.ca

Every May, we bring you the annual planograms guide, where we encourage you to take a step back and examine how your shelves are organized in comparison to national sales data. Think of it as a way to “spring clean” your store shelves before the busy summer months hit. The planograms on the following pages show the optimal layout for your shelves – which brands should go where, and why. This makes your shelves more shoppable, and ensures top-selling brands are in a position to be noticed and easily added to your customers’ baskets. The planograms include Candy Singles, Candy Theatre Boxes, Candy and Chocolate Bags, Gum/Cough/Mint, Gum/ Cough/Mint/Chocolate, and Chocolate. Use these planograms as your guide and make adjustments based on your customers’ shopping habits. Do you have flex space for innovation? Are there best-selling products in your store that aren’t represented in any of the planograms? If so, make space for the brands or flavours you know your customers shop for, because, after all, you know them better than anyone else.

Keep these tips from leading snacks company Mondelez Canada in mind as you’re reorganizing your shelves. • Confections are impulsive categories and must be displayed in high-traffic areas. Most importantly, the category needs to be seen. Keeping top sellers at or close to the front cash is ideal. • Brand block where you can, it creates a visual presence enabling consumers to quickly find their brand; it also brings awareness to growing line extensions and innovation. • On shelf, align brands across different formats (for example, keep king & singles together) where space permits. • Customers have less than 10  seconds on average to shop at the front end so ensure neat and wellorganized displays so it’s easy to shop and find what they want. MAY | JUNE 2017

25


Candy planograms

EVERYDAY CANDY performed well in 2016 with growth of 5.4%1. Both IC (instant consumption) and FC (future consumption) drove the increase.

Two-foot candy and chocolate theatre boxes Two-foot candy singles EVERYDAY CHOCOLATE performed

CANDY SHARE OF SPACE: Category

Linear

SKUS #

Facings

$Shr

CANDY BAGS

59.9%

16

57.1%

67.5

CHOCOLATE PIECES

40.1%

12

42.9%

32.5

Chart Source: Nielsen MarketTrack, National C&G, L52 Weeks, period ending Dec 31, 2016

well in 2016, with dollar volume growth of 2.4%1. Singles continues to lead the category with 75% dollar share, so it’s important to allocate enough space to this segment1.

Chocolate planograms CHOCOLATE SHARE OF SPACE: Subcategory

Linear

SKUS #

Facings

$Shr

SINGLES

74.4%

47

75.8%

53.1

KING SIZE

22.7%

11

17.7%

33.5

FAMILY BARS

2.9%

4

6.5%

13.4

Source: Nielsen MarketTrack, National C&G, L52 Weeks, period ending Dec 31, 2016 26

MAY | JUNE 2017

Eight-foot chocolate CCentral.ca


Candy tips Keep it separate. Create separate homes for each candy segment in store (singles, theater boxes & bags).

Block vertically. If merchandising with other categories, block vertically to create two distinct sections.

Block by taste. If space permits, keep likeflavours together, including sweet and sour, and the same for texture, including hard and soft /chewy.

Keep it interesting. Introduce new innovation in the main inline section by removing slow moving items.

Three-foot peg candy and chocolate

Chocolate tips Keep brands together. Create brand blocks across different formats where space permits.

CCentral.ca

Pay attention to location. Prime location is the centre of rack, and close to cash.

Be flexible. Work in flex space to incorporate niche market SKUs or to test innovation.

Pay attention to sales patterns. Chocolate is consumed throughout the week, with a small peak leading into the weekend and with less consumption on Sunday & Monday.

MAY | JUNE 2017

27


Gum, Cough, Mint planograms BREATH MINTS experienced growth at 5.1%, and cough grew by 2.2%, but the gum category remained flat (-0.2%)1.

Gum, Cough, Mint tips Choose a location wisely. Gum/Cough/ Mints should be merchandised in a prominent location close to cash to drive incremental sales.

Suggest a pack of gum. Upsell gum purchases when other categories are purchased (coffee, snacks, beverages) to increase basket size.

Make it shoppable. Ensure the gum/cough/mints category is shoppable on shelf by organizing the planogram by category/format/brand blocking and flavour alignment to simplify the shopping experience and help consumers easily find the product they are looking for.

Four-foot gum/cough/mint

SHARE OF SPACE: Category

Linear

SKUS #

Facings

$Shr

GUM

55.2%

71

56.8%

52.7

MINT

18.2%

25

20.0%

13.1

COUGH

13.8%

18

14.4%

15.8

CANDY

11.5%

11

8.8%

18.4

Source: Nielsen MarketTrack, National C&G, L52 Weeks, period ending Dec 31, 2016

Source: 1 Nielsen MarketTrack, Nat XNfld C&G, L52Wks PE Dec 31, 2016 / All insights, tips and planograms provided by Mondelez Canada 28

MAY | JUNE 2017

CCentral.ca


Four-foot gum/cough/mint/chocolate

SHARE OF SPACE: Category

Linear

SKUS #

Facings

$Shr

GUM

55.2%

71

56.8%

52.7

MINT

18.2%

25

20.0%

13.1

COUGH

13.8%

18

14.4%

15.8

Subcategory

Linear

SKUS #

Facings

$Shr

CHOC SINGLES

71.1%

27

69.2%

52.6

CHOC KING SIZE

18.3%

7

17.9%

33.1

CANDY SINGLES

10.7%

5

12.8%

14.3

Source: Nielsen MarketTrack, National C&G, L52 Weeks, period ending Dec 31, 2016 CCentral.ca

MAY | JUNE 2017

29


M I C R O C- S T O R E S

Photography by KP jmphotographs

NO STAFF,

no problem 30

MAY | JUNE 2017

Unattended markets are delivering convenience to non-traditional settings and bringing change to the retail landscape in the process By Kelly Gray

CCentral.ca


Technology is creating constant change in consumer shopping environments. There is online shopping, innovative payment tools for cashless transactions, and uniquely responsive promotional capabilities through Facebook and other sites. Technology is also helping to create a new form of convenience retail where locations are unattended by staff, consumer responsive and cashless. Known as Micro Markets, these sites are most commonly available in industrial settings and in restricted access areas where vendors know both the customer and their needs. According to USbased industry consultant Brad Bachtelle, president of Bachtelle and Associates, a firm that tracks this new form of mini market, a typical location at an industrial site would be under 500 square feet and could carry hundreds of SKUs in easy-to-access bunks and coolers. Customers enter the store using either biometric information such as a thumbprint or with a staff card. Once inside, cameras monitor the action with customers picking what they want, scanning the item and leaving with their purchase. Goods are paid for through methods such as Apple Pay or by payroll deduction or credit card. Most of these markets will also accept cash, but do not offer change, a big uptick for operators of vending equipment where breakdowns often prove costly to business and annoying to customers. “These Micro Markets are fast, convenient and comfortable,” says Bachtelle, reporting that the sector is valued close to (US)$700 milCCentral.ca

The Retail landscape is changing with the creation and integration of new technologies. Just look at concepts like Amazon Go and you can see the direction this is going. –John Douangprachanh Unattended Markets Inc.

lion in the US where there are some 12,700 sites offering this service to companies with worker cohorts in the 125 to 500 range. Interesting is the growth curve. Consider that numbers of sites in 2015 represent a 48% increase from 2012. Bachtelle suggests the break rooms micro-market industry is poised to see these gains continue with 2017 sales projected to top (US) $1 billion. Industry watchers such as Bachtelle suggest this form of convenience marketing is an evolution from the vending side where machines sold a limited product range to people in settings such as office break rooms, industrial operations, hotels and even housing complexes. “Micro markets take it a step further by capitalizing on consumer demand,” he says. “Vending systems simply cannot offer the selection and the service of an unattended market where there can be 75 beverage selections and 100 snack products as well as other items such as hearing and vision protection products for on-floor industrial workers, health and beauty aids, and even home meal replacement for time harried staff. With these sites it’s an easy matter to address individual dietary concerns like gluten-free or Kosher,” says Bachtelle adding that typical product mix is 40% drinks, 30% snacks, and 25% food items. “The rest is composed of items such as health and beauty, energy shots, and hard goods.” Here in Canada the idea is just catching on. For example, Unattended Markets Inc. has recently opened a Grocery Vending Service called a “Grocery Microshop” in the Liberty MAY | JUNE 2017

31


Village condo development in Toronto. Servicing 1,200 residential units, the Grocery Microshop location offers things like bread, milk and eggs as well as other items that are merchandized by a small group of staff that pop in 2-3 times per week to keep the machines stocked. “The Retail landscape is changing with the creation and integration of new technologies. Just look at concepts like Amazon Go and you can see the direction this is going. Now its up to people to get behind these unattended markets and utilize them,” says John Douangprachanh, the man behind Unattended Markets Inc. He mentions that these type of operations work well for university residences. Unattended Markets Inc. also has a similar concept to Amazon Go – a small format grocery store that is unmanned, relying on self-checkout stations for customers to pay for items. Security systems are key to ensure the operations run smoothly. “It also helps to integrate seamlessly into the campus environment, and be a part of the community. We have these concept locations at the Centennial College Scarborough campus, and a private student residence near Carlton University in Ottawa. We are expanding quickly, and there is a lot of interest from other Educational Institutions, as well as many different Law Enforcement Agencies.” Richard Zinck operates Loyalty Markets, an Ontario-based organization that opened 30 unattended micro-markets last year in a number of industrial locations in Guelph, Brampton and Mississauga. He reports that once these facilities would have been the domain of coffee trucks, staff cafeterias or break rooms lined with vending machines. Now, coolers and shelving is open to allow customers to simply pick what they want, scan the purchase and go. He reports that they got they got their start (2014) with Guelph Tool & Die, a four factory operation that saw Loyalty provide service to 630 employees with selections between 250 and 500 SKUs. “Vending was $500 a week in revenue at this company. Our concept has taken totals beyond $3,000 a week per location,” he says, noting that some sites such as nearby Amazon see sales of $10,000 per week. Sweetening the deal further he reports that as an operator he pays no rent, no hydro and no delivery costs. These are picked up by his clients. Set up costs run about $25,000 per site. “We offer all fresh foods with merchandisers coming in to locations every two days to tweak selection that can include deli sandwiches and hot meals.” Linamar is a multi-billion dollar, multinational auto parts manufacturer with a diverse product range from innovative automotive powertrain systems to Skyjack 32

MAY | JUNE 2017

aerial work platforms. At the Roctel facility they looked at Loyalty Markets’ offering for their 310 employees at one location (Linamar operates 23 facilities in the Guelph, ON area) and jumped on board early when they saw the advantages to the standard break room. “We had several criteria,” says Linamar GM Les Indoe. “We needed a location that was available to our staff 24/7. We had seen that coffee truck service was not always there for staff, the cafeteria was open only during the day shift and our staff told us they wanted fresh healthy foods. I wanted an operation that was autonomous, where we did not have to manage it. Loyalty Markets met these challenges.” At Roctel and several other facilities,

I wanted an operation that was autonomous, where we did not have to manage it. Loyalty Markets met these challenges.

seeing a profusion of self check-outs. This is the first stage in a retail revolution that will see operations like Loyalty Markets becoming more mainstream. Alongside technology retailers will be able to sharpen their retail tools and as the future unfolds so too will capabilities that will enhance service in the convenience sector.

– Les Indoe General Manager, Linamar

Loyalty Markets provides hot drinks, cold beverages, frozen treats and light meal offerings as well as snacks and other items. “If someone forgets their lunch it’s no problem,” says Indoe, reporting that they closed the cafeteria and allocated the space to the unattended market. He tells that the system is largely honesty based with employees policing themselves alongside Loyalty Market video cameras. “Here it’s debit, credit or cash with no change. The change goes into your employee account. The odd time a worker will forget their wallet and all they have to do is hold the item up to the scanner and then come in the next day to pay. We see this as part of our culture of respect and so far it’s been a win-win for everyone involved.” Richard Zinck, an industry veteran who has run both vending and coffee truck businesses, suggests the unattended market concept was really a case of the other shoe dropping. “It’s taking convenience to another level in untraditional settings, but all the basics still apply. You have to know your customer and deliver service just like in a standard c-store. We are able to do it without a lot of staff or supervision and this reduces cost.” Already Canadians that use stores such as Ikea, Home Depot and major grocers are CCentral.ca


Organic Hemp Rolling Paper

• Unbleached organic hemp • Made from sustainable natural resources • Recycled cardboard packs, printed with vegetable inks • Natural arabic gum (100% vegetarian)

OCB ORGANIC DOUBLE

OCB ORGANIC SLIM

OCB ORGANIC 11/4

OCB ORGANIC FILTERS

25 booklets

50 booklets

25 booklets

120 Filters

This information is for distributors and retailers only. This material must not be posted within sight of consumers. Any unauthorized reproduction, display or distribution of this material CCentral.ca is strictly prohibited.

1-877-606-1806 MAY | JUNE 2017

33


SNAPSHOT

E H T N I RDS A C

ING W O GR A IL. E A R T A E RDS FOR C-R A RE? C A D H I S S E A PREP E OF SAL TING ITS C T SOUR STORE GE AY UR Y GR L L E IS YO BY K

SHUTTERSTOCK

Canada loves prepaid purchase cards. In a recent study by Retail Category Consultants (RCC), trend mavens with offices in Toronto and New Jersey, they discovered that nearly 1.5% of retail sales involve a prepaid card of some kind. And, sales of these cards are moving upward with gains of 8% registered in 2013. The organization also found that the average load per card is around $42, a number that is up markedly from the previous year (+27%/2012).

34

MAY | JUNE 2017

CCentral.ca


According to RCC, Canada is doing better than the US when it comes to card acceptance. They point to gains of 6% to 8% thanks largely to the popularity of the ‘Gift Card Mall’, an in-store site where racks display a wide range of loadable retail brand cards from Starbucks to Victoria’s Secret to prepaid phone and credit cards. Indeed, some 22% of sales of prepaid cards come from these ‘Malls’ where there has been strong double-digit growth (+17% in 2013). Seasonality is a strong consideration for retailers. For example, Retail Category Consultants notes that sales during October to December 2013 dropped to 48% of annual sales while sales in the April to June period went up a remarkable 16%. Sales between July to September were also up (+12%). More, redemptions in this timeframe went up 19%. Here the suggestion is that this is a positive indication of consumer acceptance of gift cards as a year-round gift, and presents an opportunity for retailers to market them as such. Companies such as Payment Source, a national leader in prepaid cards for sectors such as C&G, report that they too have seen business climb as Canadians get behind these cards for a variety of reasons that include convenience, gifting and security. According to Payment Source General Manager, Grace Caputo, prepaid cards are traffic drivers especially when operators pay attention to the category and maximize their opportunity. She reports that a complete prepaid program offering of virtual products and POSA (Point of

Sale Activation) cards can be upwards of 200 product SKUs. “We offer planograms and in-store merchandising solutions for each store to help operators develop stronger sales. We have found that the best selling cards are the ones that are positioned with maximum visibility and proximity to the cash desk. We also suggest making the offering as simple as possible for the customer who can be faced with a wall of selection.” Payment Source is a good example of the gains the sector has made over the years. The company was launched in 2003 and has steadily evolved alongside the industry. Today Payment Source is present in more than 15,000 locations with prepaid Visa and MasterCard products, wireless top ups, gift cards, long distance and payment vouchers. Now with their Loadhub program, customers of participating card programs, mobile wallet programs, and other account-based programs, can easily add funds to an account by using debit cards or cash at more than 6,000 locations. What’s creating a buzz in pre-paid cards? Caputo comments that while there has been a decline in products such as long distance cards and pre-paid mobile phone top ups, digital content cards such as iTunes and virtual payment cards that can be used online are on the upswing. “There is certainly more utility today with pre-paid cards than at any other time,” she says noting Visa and MasterCard products, general purpose reloadable cards are great as gifts.”

QUICK TIPS:

1 2

 EEP IT SIMPLE. K Don’t overwhelm customers with too much selection.

3

KEEP IT REAL. Know you customers and anticipate their prepaid card needs with vouchers for companies that fit the mold of your key demographics.

4

KEEP IT CONSISTENT. Don’t disappoint. When customers buy a prepaid card or a virtual card that requires top up, they will come back.

CCentral.ca

KEEP IT VISIBLE. Don’t place cards behind the cash amid all the clutter. Place the ‘Card Mall’ where customers can browse.

MAY | JUNE 2017

35


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

NESTLÉ - NUTRITIONAL DRINKS

SAVE $2.40/48ct box $1.20/24ct box

SAVE $1.50/box

$1.80/36ct box

on Nestlé Chocolate Singles* (Maximum 50 boxes per store)

on Boost*

SAVE $0.60/box

on Carnation Breakfast Essentials*

SAVE $0.05 a unit!

HOT FEATURE PRICE & Receive a FREE box of the NEW Aero White 24ct

REQUIREMENT FOR:

on the Nestlé Twin Singles 312ct Floor prepack • 98 Kit Kat 4 Finger 45g • 64 Aero 42g • 52 Coffee Crisp 50g

• 40 Smarties 45g • 34 NEW Kit Kat Chunky 40g • 24 Aero White 42g

SC JOHNSON - INSECT REPELLENT

HOT FEATURE PRICE & Includes a FREE box of the NEW Kit Kat Chunky Cookie Dough

24ct inside on the Nestlé Singles 192ct Distribution Kit • 48 Kit Kat 4 Finger 45g • 24 Smarties 45g • 36 Rolo 10 Pieces Tube 52g

SAVE $2.00/case

on select Raid Ant Baits, Raid Bed Bug Detector and OFF! Mosquito Coils*

• 24 Aero White 42g • 36 Mirage 41g • 24 Kit Kat Chunky Cookie Dough 42g

MARS - CHOCOLATE SINGLES & PREPACKS

SAVE $4.23/48ct box $3.53/40ct box $3.18/36ct box $2.82/32ct box $2.12/ 24ct box $1.59/18ct box $1.32/15ct box SAVE $0.09 a unit!

SAVE $3.00/case on select Raid Aerosols and OFF! Repellents*

on Mars Chocolate Singles*

WRIGLEY - EXCEL & JUICY FRUIT GUM PELLET

HOT FEATURE PRICE

on the Mars Twin Singles 264ct Floor prepack • 96 Mars 52g • 72 Twix 50g

SAVE $0.65/box

on Excel and Juicy Fruit Gum Pellet*

SAVE $0.05 a unit!

• 96 Snickers 52g

HOT FEATURE PRICE

on the Mars Singles 144ct Distribution Kit • Counter Display Unit with 12 Mars 52g, 12 Snickers 52g, 12 Twix 50g and 12 M&M Peanut 49g • 48 Mars 52g • 48 Snickers 52g

HOT FEATURE PRICE

Excel Juicy Fruit Raptors 96ct Counter prepack • 24 Excel Spearmint • 12 Excel Peppermint • 24 Juicy Fruit Yellow

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

• 24 Excel Polar Ice • 12 Excel White Bubblemint

CCentral.ca/promoselect


PERIOD

Distributor to earn these SAVINGS! HERSHEY - ALLAN CANDY PEG BAGS

SAVE $1.80/12ct case on Allan Candy Peg Bags*

May 1 - July 2, 2017

3

HERSHEY - CHOCOLATE KING & PREPACK

SAVE $0.15 a unit!

SAVE $2.64/24ct box $1.98/18ct box $1.76/16ct box

on Hershey Chocolate King Size*

SAVE $0.11 a unit!

HOT FEATURE PRICE

on Hershey King Size Assorted 168ct Floor prepack • 48 Reese Peanut Butter Cups King Size 62g • 32 Reese Big Cup King Size 79g • 48 Oh Henry 2 pc King Size 85g • 24 Reese Sticks King Size 85g • 16 Reese Big Cup King Size with Reese Pieces 79g

HERSHEY - CANDY & PREPACK

HERSHEY - KRAVE JERKY & PREPACK

SAVE $1.20/24ct box $0.90/18ct box $0.75/15ct box $0.60/12ct box SAVE $0.05 a unit!

SAVE $2.64/12ct case

HOT FEATURE PRICE

HOT FEATURE PRICE

on the Twizzler & Jolly Rancher 186ct Floor prepack

on the Krave Jerky Assorted 48ct Floor prepack

• 72 Twizzlers Strawberry 90g • 24 Twizzlers Cherry Nibs 75g • 30 Twizzlers Pull n’ Peel Cherry 56g • 24 Twizzlers Black Nibs 75g • 18 Jolly Rancher Sours 60g • 18 Jolly Rancher Juicy Bursts 63g

• 12 Krave Sweet Chipotle Beef 75g • 12 Krave Chili Beef Lime 75g • 12 Krave Sea Salt Original 75g • 12 Krave Grilled Sweet Teriyaki Pork 75g

on Krave Jerky*

SAVE $0.22 a unit!

on Regular Range Candy Products*

REQUIREMENT FOR:

KELLOGG - PRINGLES

KELLOGG - SNACKS

HOT FEATURE PRICE

SAVE $0.25/box

on Pringles 67g/68g*

REQUIREMENT FOR:

on Kellogg’s snacks*

REQUIREMENT FOR:

*Contact your Full Service Distributor for the featured SKUs.

REQUIREMENT FOR:

COMING SOON

PERIOD 4 : July 4 - August 26


TM

CANADA’S CAR WASH & PETROLEUM MAGAZINE

“IF YOU’RE GOING TO GET INTO DETAILING, IT’S SO IMPORTANT TO KEEP UP WITH ALL OF THE LATEST TOOLS AND EQUIPMENT”

«

Domenic DiMonte, Crosstown Car Wash, Toronto

OCTANE COVER

CROSSTOWN CAR WASH: Success is in the details

PM42940023 • $12.00 CCentral.ca @CCentral360 MAY 2017

CCentral.ca

MAY | JUNE 2017 OCTANE 1


PROTECTING THE ENVIRONMENT

CANADA’S CHEMICAL

& EQUIPMENT SUPPLIER TAP & WASH PAYMENT NOW HERE!

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 6952 Westney Road OCTANE MAY | JUNE 2017 South, Ajax, Ontario L1S 6M9 | 1.800.465.5676

CCentral.ca


TM

MAY/JUNE 2017

CANADA’S CAR WASH & PETROLEUM MAGAZINE

Volume 22 | Number 3

Car Wash Chemicals Industry leaders discuss the latest innovations

11

14 ADVERTISERS

CONTENTS

Aerodry Systems, LLC..........................................23

04 Editor’s Message

AIR-serv Canada Inc. ............................................25 Krown Rust Control...............................................12 Mark VII Equipment, Inc. ........................................5 Mighty Flame Canada.............................................7 Mondo Products Co. Ltd. .......................................2 Mosmatic..............................................................16 Oasis Car Wash Systems......................................17 Pumps & Pressure Inc..........................................24 Sureguard/Post Guard...........................................21 Washtech..............................................................20 WashLinks/Sonnys................................................13 Wiz-Tec Computing Technologies Inc. ....................5

Penny wise

06 Going digital POST Safety mobile app

08 Petroleum update Gas relief

11 Chemicals Formulated for success

14  COVER

Crosstown Car Wash It’s in the details

18 18  Innovator Profile

County Chevrolet Open to the public

22  CCA Car Wash Tour High achievers

34  CCA NEWSLETTER Industry forum

09 Featured Products Products, equipment and services

10  Credit Cards Op Ed A new era

CCentral.ca

MAY | JUNE 2017 OCTANE 3


    

           TM

EDITOR’S MESSAGE 70

CANADA’S CAR WASH & PETROLEUM MAGAZINE

2300 Yonge Street, Suite 1510 M4P 1E4 (416) 256-9908 (877) 687-7321 Fax (888) 889-9522

     Toronto, ON

          

www.CCentral.ca

GROUP PUBLISHER Jennifer Litterick jlitterick@ensembleiq.com                 VICE PRESIDENT/DIRECTOR, EVENTS & MARKETING Michael Cronin mcronin@ensembleiq.com AUDIENCE DEVELOPMENT MANAGER Lina Trunina ltrunina@ensembleiq.com

PENNY WISE

WEB OPERATIONS MANAGER Valerie White vwhite@ensembleiq.com EDITORIAL EDITOR Kelly Gray kgray@ensembleiq.com ONLINE EDITOR Nikki Lockington nlockington@ensembleiq.com

When you pay attention to pennies, dollars tend to take care of themselves. This maxim appears to be lost on a growing number of gas station operators that are letting routine maintenance and system checks fall by the wayside. It’s costing everybody money. Last December a Toronto media outlet looked at challenges at the pumps and alongside Measurements Canada they discovered nearly 300 sites in the GTA that were using faulty equipment. Often customers paid too much for a tank of gas. More often it was the operator that was out. It’s estimated that the average dispenser in Toronto pumps about 3,000 litres of fuel every day. With an inaccuracy of just 1% that adds up to 30 litres per day per dispenser. This may not sound like a lot, but when fuel margins are razor thin every penny counts and these dispenser problems add up to real money very fast. Measurement Canada inspects stations every two years and then gives operators 14 days to fix problems that are 1% and under. Suggestions have been that many of the inaccuracies found had been going on for quite a while and that these challenges are huge when considered on a national basis. Canada’s number of fuelling sites has been declining as the business gets harder to justify thanks to the high volume/low margin model currently in use. Operators need to tighten up on maintenance and dispenser checks to stem this flow of leaking pump-side cash. Simply, Canada’s gas stations have to watch the pennies to generate the profits to keep these sites viable and available to the driving public.

TRANSLATION Danielle Hart ADVERTISING SALES DIRECTOR OF PARTNERSHIPS David Wood dwood@ensembleiq.com SALES REPRESENTATIVE Elijah Hoffman ehoffman@ensembleiq.com SALES & EVENTS COORDINATOR Claudia Castro DESIGN & PRODUCTION DIRECTOR OF PRODUCTION & DESIGN CANADA Derek Estey destey@ensembleiq.com PRODUCTION MANAGER Michael Kimpton mkimpton@ensembleiq.com

CORPORATE OFFICERS EXECUTIVE CHAIRMAN Alan Glass PRESIDENT & CEO Peter Hoyt CHIEF OPERATING OFFICER Richard Rivera CHIEF BRAND OFFICER Jeff Greisch CHIEF FINANCIAL OFFICER Len Farrell CHIEF BUSINESS DEVELOPMENT OFFICER & PRESIDENT, ENSEMBLEIQ CANADA Korry Stagnito PRESIDENT OF ENTERPRISE SOLUTIONS/ CHIEF CUSTOMER OFFICER Ned Bardic CHIEF DIGITAL OFFICER Joel Hughes CHIEF HUMAN RESOURCES OFFICER Greg Flores

ART DIRECTOR Glenn Taylor gtaylor@ensembleiq.com CONTRIBUTING DESIGNER Christian Lemay

SUBSCRIPTION / ADDRESS CHANGE Please contact Lina Trunina ltrunina@ensembleiq.com

LICENSING AND REPRINTS Please contact Wright’s Media ensembleiq@wrightsmedia.com 1-877-652-5295

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, Mondele¯z International; Tim Corkum, Rothmans, Benson & Hedges Inc.; T. McGowan, Nestlé Canada

– Kelly kgray@ensembleiq.com standard

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.

no gradients

Printed in Canada at Transcontinental

BE A PART OF OUR COMMUNITY!

PM42940023 watermark

CHANNEL ALLIANCES stacked logo (for sharing only)

CCentral.ca

4

E-newsletter

OCTANE MAY | JUNE 2017

Convenience Central

@CCentral360

ConvenienceChannel CCentral.ca


WIZ-TEC MobiFUEL and MoboGAS,

THE ONLY MOBILE APPS WORLDWIDE

THAT CAN CONTROL 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!

WIZ-TEC Easy to use and control, self payment terminal, enhance through-put at your store, Gas Station and card-lock without costly pay at the pump technologies to save you thousands monthly.

THE WIZ-T SYSTEM IS EC SIMPLE, WSO CAN TRA E YOU IN A FIN EW MINUTES.

CALL US TODAY!

Wiz-Tec Computing Technologies Inc. T (403) 250-8660 1-866-361-7846 F (403) 476-8935 www.wiz-tec.com

“At a convenience store, reliability is everything. Every day I have a line of cars waiting for a wash. Mark VII service technicians maximize my carwash up-time and ensure that every customer in line receives a consistent, quality carwash. With reliable Mark VII service I can sit back, relax, and watch the carwash maximize my return on investment.”

Wash

180

cars a day CCentral.ca

Nilesh Bhadani

C O LE M A N LA N D I N G C H E V RO N S A N J O S E , C A LI FO RN I A

866-658-9274 ext. 4

| www.markvii.ca

MAY | JUNE 2017 OCTANE 5


GOING DIGITAL POST Safety mobile app represents the next evolution BY MICHELLE RAE, OPCA When the POST program was first introduced in 2007, the intent was for contractors doing work for major oil companies to have the convenience of having to follow one consistent safety standard when working on petroleum sites, specifically when doing work for more than one oil company. With the support of the oil companies and the industry, POST is now widely used across Canada. Contractors use POST as their standard safety program regardless of customer (i.e. major oil, independent, etc.) and many companies have adopted POST safety standards to fill gaps within their own programs, replace their outdated program or adopt fully because no such safety program existed within their company that was specific to the work they do. POST has continual communication with our community and also provides additional benefits, such as a free listing on our POST contractor database and additional tools for contractors. We also update and test new standards every year. For example, in 2014 the POST committee overhauled several of the critical procedure checklists, and then piloted them with key contractors before introducing them to the rest of the POST community. We then conducted surveys of the new documents in order to gather feedback from contractors and workers. We also negotiated significant discounts on other online safety training such as WHMIS, Fall Protection, H2S and Lockout/Tagout through our training partner, Worksite Safety. While the base of the orientation is similar year to year, as it wouldn’t make sense to completely overhaul the standards every year, we try to keep things fresh by adding new content, questions and activities to the POST online orientation. In 2015, we launched POST Level 2, a course geared towards supervisors, which contains the basic POST requirements with additional enhancements on JSAs, JSA evaluations, Planned Job Observations, and PPE, just to name a few. As this is a behaviour-based program, the POST committee, which includes representatives from the

6

OCTANE MAY | JUNE 2017

major oil companies and industry contractors, agreed a refresher was needed every year to ensure everyone working in our industry was on the same page. In keeping with the importance of constant communication with our POST community, it was decided the natural progression would be to develop a POST mobile app. The Ontario Petroleum Contractors Association, administrators of POST, gauged the interest of a mobile app at their annual conference in 2015. Feedback was generally positive, especially from contractors who utilized mobile technology already. As the OPCA did not want to rush into this venture, they took the time to focus on the development of the app features. The intent of the app is to be an extension of the POST portal site with the addition of online form completion capability for the POST documents. Companies would then save their forms to their own cloud servers. The app’s landing page will display icons of the available options for users including access to safety bulletins, contractor searches, latest news and the mobile forms. Users will also receive notifications for any updates from POST, which ensures they are always on top of the latest industry safety news. The mobile app function is very user friendly and will be available on both Android and iOS devices. We feel the POST program saves contractors time and money, as they only have to follow one safety program rather than keeping track of several if working for more than one oil company. Not only that, but many companies have indicated to us that POST has improved their company’s safety culture. We are also working to promote the POST standard to independent oil companies with the goal to have a level playing field for all contractors, regardless of the oil company they are working for. We are proud to say that since POST was introduced to the industry, oil companies have reported a decrease in their incident statistics and have attributed this to the POST program. The POST program has evolved significantly over the past several years and could not have been accomplished without the support of the oil companies, the involvement and dedication of the POST advisory committee, and most importantly, the support of the industry that utilizes the program. With our mandate of keeping our industry safe, we hope to continue to provide this program and constantly improve it to make it the best resource for the POST community. OCTANE

CCentral.ca


MightyFlame_YCM Octane 2015:Layout 1

OVERVIEW OF MOBILE APP FEATURES:

12/3/14

2:11 PM

Your�Propane�Cylinder�Exchange� Partner�for�the�Future.

Mobile forms with user cloud storage and digital signature capture feature Safety bulletins Contractor search News Blog Resources

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

CCentral.ca

MAY | JUNE 2017 OCTANE 7

Pag


Gas relief

After years in decline, Canada’s fuelling sector has enjoyed some positive spin. Will the uptick be enough to reverse the sector’s fortunes? BY KELLY GRAY Could it be that Canada’s petroleum fuelling sites are seeing a light at the end of a very challenging tunnel where margins stagnated and locations closed in large numbers? Consider that the shrinking number of fuel sites has reversed over the last few years from what was seen as a 25-year trend of steady declines that saw sites go from about 20,000 in 1989 to 11,916 in 2015, an increase of 100 sites from the previous year and up from the low point in 2013 (11,600) when the trend began its upswing. “This trend reversal coincided with a near doubling of the average retail margin in Canada between 2006 and 2015 – rising from five cents per litre to nine cents per litre over that time,” says Jason Parent, Vice-President Consulting, The Kent Group Ltd. “That increase is likely both cause and effect of a reduction in site closures. High margins may have kept some marginal businesses solvent when they may otherwise have closed, and plateauing site counts can translate to flat or declining site throughputs, ultimately putting upward pressure on margins.” Here there is a suggestion that with 25 years of high closure rates, the under performers were rendered out of the system. “Despite the rise in retail margins, the average annualized throughput (volume of fuel sold) at

8

OCTANE MAY | JUNE 2017

closed sites showed considerable uniformity over the last decade, presenting a consistent profile for sites that are at risk for closure. Further examination of Kent’s data from 2006 and 2015 shows that the percentage of sites with volumes below the average annualized throughput of closed sites fell from 15.2% in 2006 to just 8.9% in 2015, so the reduction in closure rates may simply be a product of a smaller pool of underperforming sites remaining in the market each year.” Currently market conditions are such that there is relative calm with the number of gas bars and fullservice fuelling sites remaining stable. Over the long term Parent does not expect the trend to higher margins to continue. Rather he sees margins more likely to follow inflationary trends resulting in less bottom line for fuel site operators. “The demand outlook for retail fuels in Canada is flat, and the throughput from the average NTI (new to industry) site can replace three or four average closed sites,” he says, adding that even though the declines in the number of poor performers has slowed, there are still roughly 1,000 locations that fit the profile of sites most at risk for closure. The expectation is that over the longer term we will see a continued net decline in the number of sites, but at a rate much slower than in the past 25 years. OCTANE

CCentral.ca


Product NEWS PRODUCTS, EQUIPMENT AND SERVICES Before Boemar’s Interior Revitalization Solutions

After

Boemar Surface Systems is renowned for our superior proprietary exterior refurbishing and colour systems and we are now bringing that same excellence/expertise to the interior market. Our systems result in a brighter and more appealing image for your customers, with minimal site interruption and at a fraction of replacement cost. We can seamlessly refurbish your carwash glazing, floor tiles & grout, shower basins and much more. Email us for your free quotation today. www.boemar.com surfaces@boemar.com

Drainvac When things like plastic bags and rags get accidentally vacuumed, problems such as suction loss and overheating may occur. To overcome this matter, we’ve designed an anti-obstruction system made of steel rods that fits perfectly into the vacuum’s or separator’s canister. Items get tangled onto the rods, thus never interfering with the airflow and are easy to remove. Used by SONNY’s for over a year now, it’s highly appreciated in the carwash industry. 800.408.1448 www.drainvac.com

vPOS by Wiz-Tec Tired of seeing your cashier standing behind the counter waiting for customers? Pump Jockeys losing dollars between the pumps and the front door? Looking for ways to enhance through-put at your card-lock without re-investing in expensive pay-at-the-pump technologies? The vPOS mobile App for Android saves you literally thousands of dollars monthly by mobilizing your work-force and customers without having to mortgage your site for new hardware. vPOS by Wiz-Tec, the only mobile app in the world that can control the pump!

Blendco Systems, a Division of Dubois Chemicals Blendco Systems proudly manufactures the RED RHINO Brand®, a full line of superior quality detergents, polishes and protectants for the professional carwash industry. Blendco’s focus from the start has been to provide the highest quality products at a competitive price. Blendco continues to lead the industry with innovative products and solutions, which includes our patented SuperSat® Custom Detergent System, SuperClear® Water Treatment System, as well as our remote monitoring system, SuperSmart RMS®. Leading the way for over 40 years. You have questions, Blendco has the answers! 800.446.2091 blendco.com

866-361-7846 wiz-tec.com

SUPPLIERS, WHAT’S NEW IN YOUR PRODUCT LINE? Mark VII Equipment Inc. Give your customers a hand wax quality shine in a fraction of the time. ShineTecs Tri-Foam buffs green, orange, and purple foam into the vehicle’s surface instantly clarifying the paint finish. Unique shine polymers within the tri-foam generate a deep gloss shine like your customers have never seen. 866.658.9274 markvii.net

CCentral.ca

CONTACT ELIJAH HOFFMAN at 647.558.0103 ehoffman@ensembleiq.com to promote your product, equipment or service here.

MAY | JUNE 2017 OCTANE 9


CREDIT CARDS OP ED

A NEW ERA

Are merchants finally gaining ground in the push for lower credit card processing fees? BY DAN KELLY

Dan Kelly, President and CEO, Canadian Federation of Independent Business

About a decade ago, calls and emails from members of the Canadian Federation of Independent Business (CFIB) began to highlight an emerging issue for Canadian small and medium-sized businesses: the rising cost of credit card processing fees. For a few years, it seemed it was the only issue many of our 109,000 members wanted to talk to me about.

We were ultimately successful on several counts: • In July of 2009, after extensive feedback from members and discussions with Visa and MasterCard, CFIB released the first public draft of a proposed code of conduct for the payments industry, to improve fairness. • In April of 2010, the federal government unveiled the final code of conduct, and Visa and Mastercard signed on. For the first time, the Code gave merchants some important rights in pushing back against rising costs. • In November 2014, CFIB joined the federal government in announcing the outcome of an important agreement on the part of Mastercard and Visa Canada to reduce rates for all merchants, and a decision to keep the average rate capped for five years.

After a ton of research, member surveys and analysis, it was clear that the real pressure point was the waves of “premium” credit cards that were being issued by These actions put Canadian merchants well-ahead Canada’s banks. Cards, like Visa Infinite or MasterCard of their US counterparts, but many merchants still World were spreading quickly through the market – regard the current rates as too high, particularly often to customers who had never even requested the when viewed against even lower merchant fees in upgrade. These cards came with a few extra points Europe or Australia. or perks for consumers, but at a significantly higher Fortunately, there are recent signs that regular fee level for the merchants who accepted them. If a market forces are taking hold in the payments indusmerchant wanted to accept credit cards at all (and let’s try. For the first time in Canada, a card brand directly face it, few can say no), they were required to accept all negotiated with an association to lower rates based on cards, regardless of the cost. the aggregate volume of the business for its members. There were also many other industry horror stories, As CFIB members collectively process over $3 bilincluding the use of deceptive practices on the part lion in MasterCard sales alone through a program with of several credit card processors. In my work leading Chase Paymentech, MasterCard has agreed to match Canada’s largest group of small business owners, I the rate it had previously reserved for a handful of the spoke to dozens of hardened entrepreneurs on the largest merchants in Canada. This arrangement started verge of tears or bankruptcy after falling victim to a April 3, 2017 and is expected to be offered by most mascam to lock them into a terrible contract with rising jor card processors (acquirers) across Canada, including fees and giant exit penalties. CFIB’s important deal with Chase Paymentech. This resulted in a decade long push on the part of After working with the payments industry for over merchants and their associations for fairness in the a decade – with several scars to prove it – I believe payments industry. There were several approaches that this signals a new era in the merchant/payment taken to address the challenge, ranging from requests industry relationship. No doubt, there will be other for government to regulate the merchant cost to workbattles ahead. But rather than simply be price-takers, I ing to get merchants a seat at the negotiating table to am witnessing a new spirit among merchants to work improve their outcome. together to be price-setters. This is good news. Right from the start, CFIB pushed for additional To learn more about the work of CFIB, visit powers for merchants and a light hand for government. www.cfib.ca. OCTANE 10 OCTANE MAY | JUNE 2017

CCentral.ca


CHEMICALS

FORMULATED

for success

SHUTTERSTOCK

Car wash chemicals are an important part of the clean vehicle equation. Manufacturers continue to upgrade formulations to enhance the total package. BY KELLY GRAY

CCentral.ca

To make the grade with customers, car wash operators need good water, good equipment and well formulated chemicals that deliver a consistent performance. Here, cheap spells disaster for washes that skimp on the basics to save a few pennies. Indeed, when it comes to car wash chemicals, less is not necessarily more, more is not necessarily better and less is not necessarily cheaper. The idea is to look to chemical manufacturers for products that are tailored to your equipment and water quality. You might save money up front by buying a less expensive wash chemistry, but these products may not be the most effective for your plant. The result is customer dissatisfaction and declining sales.

MAY | JUNE 2017 OCTANE 11


According to Tim Ewing, Executive Vice-president, Turtle Wax Pro, a division of Transchem, a Canadian-based major player in car wash chemistry, the quality of the raw materials is key. Here he points to Turtle Wax Pro’s Fire and Ice package where the power of combined elements creates greater customer satisfaction and enhanced profitability at car wash locations. Fire and Ice is available in a number of configurations in easy-to-store five-gallon pails. Fire Bath red and yellow products promote a deeper clean and enhanced lubricity. The carnauba-based Fire Wax products deliver a maximum protection and shine. ICE Instant Shine offers total surface protection for all vehicle surfaces, provides maximum water repellency on glass for improved visibility, protects and shines glass, chrome, plastic trim, and paint. All of these new products come with an array of scents from Cool Mango to Raspberry Inferno. Dilution rates vary with Fire Wax optimizing around 200:1, Fire Bath at 300:1, and ICE Instant Shine working well at 400:1. “The industry has come to learn that it’s not the cost of the container that is the important determiner for car wash chemicals. It is the cost per car,” says Ewing, commenting that Turtle Wax Pro and Transchem is focused on maximizing revenue per vehicle. “Our R&D team is dedicated to bringing new technology and formulations to the market that help operators reduce costs through greater efficiency, enhance car clean, and increase customer satisfaction as well as the bottom line at operations.” Another company that offers good examples of best practices is MONDO Products. According to MONDO Products Account Manager, Jeff Beam, formulations must work well with the type of water you use. MONDO is an expert at

teaming clean and shine chemistry with wash water. They are also good at helping operations with their space considerations. For example, Beam reports that instead of drums packaging their chemicals, they now offer easy-to-stack boxes in addition to traditional drums. “Oil companies have moved to smaller footprint

To stay competitive car wash operators must be willing to make changes as better practices come forward. –Tim Ewing

locations. Car washes have smaller storage rooms as a result. Concentrated chemicals help here by taking up less space. We have learned to maximize chemical to water dilution to keep packaging as limited as possible. We are finding that new dilution rates can be a challenge for older equipment and operators need to keep up with equipment innovation to stay competitive,” he says.

Industry major Blendco Systems is also helping car wash operators enhance and improve on-site chemical use. For example SuperSat Custom Detergent System is an innovative two-component detergent process that delivers performance. The company reports that SuperSat units automatically mix Blendco’s specially formulated detergents at your wash using your water to create a blend that works better alongside the vagaries of your location. “The SuperSat system allows detergents to be tailored specifically to suit the needs of your wash and saves money by not shipping water” says Caroline Frey, Marketing Coordinator, BlendcoSystems. She reports further that Blendco’s SuperBlend Systems allows the user to blend their super concentrated detergents at their wash location. “With a push of a button, you can mix a wide range of highly concentrated detergents and protectants, which reduces freight, storage and handling costs,” she says. At the Exeter Car Wash in Exeter, ON, operator Martin Behn looked for an innovative solution to help him remove briny residue left on vehicles after winter road salting. The community uses a beet juice and brine product on roads that leaves a dull grey film on cars. He turned to Krown Rust Control for their Salt Eliminator product. According to Krown’s Brent Savelli, Salt Eliminator is ideal as a replacement for pre-soak and tire cleaner in self-serve washes during winter months when these services are less popular and customers look for ways to reduce corrosive grime. “In an automatic car wash use Salt Eliminator as part of the premium package. It’s a perfect up-sell, customers will have confidence in knowing they are using a product that genuinely helps fight corrosion when they see the Krown name.” Indeed, at

www.krown.com

GIVE CUSTOMERS A GREAT REASON TO UPGRADE THEIR WASH. Removes harmful road salt and de-icing chemicals.

Rinses to a beading shine.

Fights corrosion.

Designed for automated wash and self-serve facilities.

To add Krown Salt Eliminator to your product line-up contact:

Brent Savelli Krown Product Specialist

12 OCTANE MAY | JUNE 2017

289.838.4364 brent.savelli@krown.com

The Makers of Canada’s #1 Rust Protection.

CCentral.ca


SHUTTERSTOCK

Cleaning Systems Inc. (CSI) has offered its Earth Ready line since 2008. Earth Ready promotes the best environmental practices including: drum recycling, iLevel® technology to control product usage and waste, and a reclaim product line to assist washes in regions where water conservation and runoff influence wash operations on a daily basis. CSI also offers Ultraflex an ultra concentrated line of environmentally friendly car wash products, packaging and equipment targeted to extreme performance and unlimited flexibility. Compatible with all conventional car wash equipment, Ultraflex provides chemical storage and metered dispensing of product to the wash in less than half the space. The company reports that Ultraflex is economical, because operators determine the concentrations delivered to the wash. It is also an environmentally responsible choice because there is less waste, sustainable packaging and no phosphates. Sold under the Lustra brand, Ultraflex is also highly concentrated so operators use the least amount of chemical and formulations are done with on-site water making a blends the best they can be.Here, Tim Ewing concludes that being the best you can be is what its all about when it comes to car wash chemicals. “Just as in any business you have to keep ahead of trends and new advances. To stay competitive car wash operators must be willing to make changes as better practices come forward. However, the changes have to make sense and this is where its important to understand that you must look at the total package rather that just one facet of the car wash equation. Chemicals must work well with water and equipment to create a great car wash,” he says, suggesting that operators need to look no further than their last customer to see if their current equipment, water and chemical formulation is making the grade. OCTANE

Behn’s site in Exeter the operator has seen winter sales increase as a result of this capability where he is the only wash in town offering the service. Winter sales numbers at Behn’s wash now rival those of his busy summer season. Salt Eliminator is available in a wide range of packaging from aerosol cans to four-litre jugs to 200-litre drums. “Its gentle on all surfaces and very cost effective at $75 for a 20-litre pail (about the same as other pre-soak chemicals). Dilution runs to about 1:50 for underside to 1:75 or 1:100 for other surfaces,” says Brent. Zep Vehicle Care is the largest provider of car wash chemistry to the professional car wash industry, representing and marketing some of the most recognized and trusted consumer brands, including Armor All Professional, Blue Coral, Rain-X and Black Magic. According to Zep Vehicle Care Corporate Account Manager, Brad Baldwin, wash operators now have everything they need to ‘Assure’ their wash is running at peak performance. The Assure program is focused on delivering cleaning performance, greater efficiency, and providing wash operators peace of mind knowing everything is working as it should. This fully integrated program includes hyper-concentrated chemistry, precision dispensing, and a new remote performance monitoring system. Assure hyper-concentrated chemistries are available in 2.5-gallon cubitainers that makes the most of limited space in wash storage areas and is integrated with a 7.5-gallon or 15-gallon docking station. The Assure Precision Dispensing System makes certain that flow rates are accurate and consistent with each application, which allows for more satisfied customers, less waste and greater accuracy that creates greater consistency throughout the wash process. “Our new Assure Analytics is a remote performance monitoring system that provides quality assurance and uniquely works to give operators confidence, visibility, and knowledge to know that their wash is working as it should be,” he says.  CCentral.ca

Think Small. (except when en it comes to profits profits.) ts.)

SONNY’S

43-XTB

Xtreme Hybrid Tunnel System Wash, Wax, Seal, Tire Shine, & Dry

Up To

50 Cars

Per Hour!

35 foot bay ay 50 cars perr hour. hour. r.

Xtreme Throughput ugh ug ughput ghp hpu put t 50+ clean, dry, shiny cars ars per hour lets you capitalize on spikes in volume without slowing production. Xtreme Size Requires only 35-feet of bay space. Exclusive shallow pit conveyor and reduced electrical load requirements makes in-bay retrofits easy and affordable.

Aldo Waters Ownerr — OK 1 Stop. Ardmore, OK Xtreme Profit Equipment in the world The Besttotal Selling Conveyorized Standard triple foam, body protectant, Car and Wash tire dressing application lets you increase dollar-per-car revenue without slowing production.

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

MAY | JUNE 2017 OCTANE 13


C R O S S T O W N C A R W A S H / D E TA I L I N G

It’s in the DETAILS Quality is key to detailing success at Crosstown Car Wash BY NIKKI LOCKINGTON Photography by Jeff Kirk

14 OCTANE MAY | JUNE 2017

CCentral.ca


Domenic DiMonte has been in the car wash business for the majority of his adult life. His father started the Toronto-based Crosstown Car Wash in 1978, but Domenic and his brother have been operating and growing it for the last 30 years.

C

rosstown is now made up of five car washes, each with unique offerings to suit the needs and capabilities of each site. “We have two express exterior tunnels, one eleven-bay coin wash and we have one flex serve where we do interior and exterior cleaning, and we have one full-service car wash where most of our business is inside and out quick cleaning and detailing, which is the Kingsway location” says DiMonte. The Kingsway location in Toronto is the only one with a full-service detailing operation. Customers can choose from polishing, waxing, engine shampooing, but, says DiMonte, most of their business is interior shampooing and complete interior cleaning. They also offer express detailing, which involves two employees, 30 minutes and a very thorough cleaning job, but without upholstery shampooing. Originally, the three service bays were rented out to a service garage that would do auto repairs, and Crosstown dabbled in detailing in the spring and summer. “We’d just do the detailing outside, but it wasn’t a very big part of our operation. About 10 years ago, the detailing started picking up, and nobody was doing well renting the service station, so we decided to go full boar with the detailing business,” he says. The detailing operation took over the three service bays, and marked the beginning of a new revenue stream for the business. Because they had the space, the barrier to entry was fairly low, says DiMonte. “We had the space, so it wasn’t a lot of money to get started. We had to buy a bit of equipment, which was about $10,000, to get the detailing business going,” says DiMonte. Now, 10 years later, between detailing and express detailing, this portion of the business accounts for about one-quarter of the Kingsway site’s gross revenue, which is a significant chunk of the business. Introducing a detailing offering at your car wash site isn’t always a simple process. Here are five considerations to make when looking to get into the detailing business.

1. LOCATION

There are five Crosstown Car Wash locations, but the Kingsway location is the only one with a full-service detailing business. “A lot of it has to do with the configuration and space of the site. Basically, especially in our climate, you need inside bays for the detailing business, and my other locations don’t have that capability,” he says.

CCentral.ca

MAY | JUNE 2017 OCTANE 15


Location and demographics is also a big part of it. “Our Kingsway location is in a higher-income area where people are more inclined to spend the money to get that type of service.” It’s important to ensure the offering will draw in nearby residents, commuters or employees surrounding the business.

SOLUTIONS FOR VEHICLE AND EQUIPMENT CLEANING

NOW IN CANADA Mosmatic Canada Inc. Phone +1-844-384-1602 www.mosmatic.com CAR WASH | HIGH PRESSURE CLEANING | ROTARY UNIONS

16 OCTANE MAY | JUNE 2017

© Mosmatic Canada Inc. March 2017. Subject to change without notice. All rights reserved.

2. STAFFING

Understanding the patterns of your detailing business is key to successful staffing. “We have two full-time people doing the detailing, and then my other employees that do other jobs around the car wash will step in to help depending on how busy one part of the business is. They go back and forth,” says DiMonte. “There are some days, especially on colder winter days, when there isn’t much detailing to do, so the detailers will go and help out in the car wash. Whereas in the summer time, the car wash may not be as busy as the detailing, so the car wash employees will help out with detailing.” DiMonte stresses the importance of training employees to understand all aspects of the business. “I have flexibility with my location because of how the business works. Detailing is predominantly spring/summer/fall, but winter not so much. That allows employees to move around and help at one end or the other. I’ve noticed patterns and can staff accordingly,” he says.

3. SCHEDULING

DiMonte and his employees try to schedule all detailing appointments so they know in advance what the day’s schedule looks like. But this doesn’t always go as planned. “Sometimes you’ll get four or five cars showing up for detailing who haven’t booked appointments, and that can really mess up the day.” To mitigate this, Crosstown is in the process of introducing an online appointment system that will allow customers to search open time slots, book an appointment, and best of all, the program will send an email to remind them of their appointment. He hopes this will help to cut down on no-show customers, which can have a domino effect on the day’s business.

CCentral.ca


Word of mouth and doing a quality detailing job is the best advertising. – Domenic DiMonte

4. MARKETING

“As an operator, if you’re not actually doing the detailing yourself, you need a critical mass. You need a certain amount of business to justify the investment,” he says. “It takes a bit of time and marketing to grow the business.” At first, DiMonte tried a number of marketing tactics, including advertising in nearby condo buildings, as well as mailer coupons, but word of mouth and doing a quality detailing job is the best advertising, he says. “The majority of our detailing business comes from our regular customers. We have a lot of repeat customers who come in once or twice a year for full detailing,” he says, adding that this is why consistent quality is key to longterm success.

5. QUALITY

“If you’re going to get into detailing, it’s so important to keep up with all of the latest tools and equipment,” says DiMonte. He maintains quality by carefully researching and choosing his equipment. With so many manufacturers out there, operators must do their research to see what fits their needs. We choose equipment based on the needs of the site. They’re all good but I like some aspects of one company versus another for certain needs,” he says. “If you’re going to do it, quality is more important than trying to do something cheaply or for the lowest price. Quality is the most important thing.” OCTANE

CCentral.ca

MAY | JUNE 2017 OCTANE 17


I N N O V AT O R / C O U N T Y C H E V R O L E T

OPEN TO THE PUBLIC COUNTY CHEVROLET INVESTS IN A NEW CAR WASH TO SERVE ITS DEALERSHIP CARS AND ITS COMMUNITY By Nikki Lockington Photography by Trevor Booth

18 OCTANE MAY | JUNE 2017

CCentral.ca


This Chevrolet car dealership has been a staple in Essex, ON since the 1970s. Jeff Smith, who was a partner for the last decade, recently took over the business and renamed the dealership Jeff Smith’s County Chevrolet to demonstrate the focus on the community it serves. That’s why, when he decided to invest in a state-ofthe-art car wash for the dealership last year, he did so with his community members in mind. CCentral.ca

MAY | JUNE 2017 OCTANE 19


When Smith was researching equipment, his initial need was to clean dealership cars, but he began to realize that the area he was in didn’t have a commercial car wash. He decided to set up his wash to also serve the public, and in doing so, he created a new profit centre. The process to introduce the car wash felt natural, he says. He did some research and asked around about adding a car wash to an existing dealership, and the only downside that came up was an increase in traffic. “If that’s the biggest problem I’ve got, then I’m in pretty good shape,� he says. For Smith, a car wash is becoming a dealership necessity. “Car washes at dealerships have got to be one of the fastest growing segments in the car wash industry. This is becoming really important for dealerships,� he says. Here’s how he made it happen.

GOING FOR IT In order to get it right, Smith did his research. He checked out just about every car wash manufacturer out there, but ended up going with Wash Tech for a few reasons, he says, explaining that he wanted the best wash for the footprint of the site. Local representation was also very important to him, which Wash Tech

had. If something went wrong, he knew he could count on his nearby Wash Tech rep to fix it. “It’s not a problem until it’s a problem and then it’s a big problem, so I wanted to go with a company that had local representatives and people on the ground here,� says Smith. Don Loder, Wash Tech owner, agrees that this matters. “When a potential customer is looking at installing new equipment, as in Jeff’s case, they look at the equipment as well as the potential for service. As Wash Tech has representation in Windsor area, this was a primary factor in his decision to purchase from us,� says Loder. Smith got to work on the renovations in March 2016 and the car wash opened in December 2016.

THE SETUP “I’m a car dealer, so I go after quality and a little flash. I went with the very best I could, and the goal was the cleanest car possible. I’m in the car dealership business so that needs to be priority,� says Smith. In preparation for the addition of the car wash, the dealership site was renovated and expanded. They added in a Quick Lube service and the Oasis i5 highpressure rinse system and tri-foam. He admits, he went all out. But for him, a clean car is worth the investment.

Celebrating 24 Years of Providing Quality Vehicle Wash Equipment S A L E S ĂŻ I N S TA L L AT I O N ĂŻ S E RV I C E ĂŻ S U P P O RT ĂŻ C H E M I C A L

Foam Touch Wash

Touchless Wash

Tunnel Wash

190 Southgate Drive, Guelph Ontario, Canada N1G 4P5 ĂŻ  www.wash-tech.ca sales@wash-tech.ca WashTech_24years_HalfPageAd_Final_Octane.indd 1

20 OCTANE MAY | JUNE 2017

3/3/17 8:45 AM

CCentral.ca


LOOK BEYOND YOUR

CURRENT OFFER. How can you introduce a new profit centre that will complement your current offer? DO YOUR RESEARCH. Shop around for your equipment supplier. With all of the options out there, there’s no need to settle for a company that doesn’t suit your needs. THINK OF FUTURE NEEDS. Ensure you’ll have access to technical support and expertise down the road. A local representative will be important for future support and service.

The i5 Soft Touch Hybrid equipment is fast and reliable equipment with consistent results, says Loder. “It provides a quality wash every time and washes vehicles of all sizes quickly and efficiently.” “The ICS Sentry Pay Station provides the ability for Jeff’s staff, as well as customers, to activate the wash,” says Loder. The unit was set up to accept credit cards, Canadian debit cards, gift cards, and fleet cards.

Good looking property protection improves sales BOLLARD COVERS

DUAL PURPOSE “We were very excited to work with Jeff on this project. Jeff’s vision for his car wash was to provide two separate services. The first, being the washing of his dealership cars and service customer vehicles, and the second was to provide a car wash open to the public. This makes perfect sense for any dealership,” says Loder. “Many dealerships are looking at providing a car wash to their service customers as a perk to keeping the service of that customer. However, most dealerships look at this equipment as a cost centre rather than a profit centre. By combining the two, Jeff has virtually eliminated the cost of cleaning his dealer cars, and has created a profit centre in doing so. It’s a win-win for the dealership,” explains Loder. So far, so good, says Smith. “We’ve been very busy. People have been very happy with the wash so far.” In terms of site access, it’s ideal, and doesn’t get in the way of the dealership. Car wash users can enter the site and go directly into the wash tunnel, and once they exit the tunnel, they have an exit to the street right there. But Smith doesn’t mind – he likes his site to be busy and bustling. He’s happy with the increased traffic on his site. “Hustle and bustle is good,” says Smith. “If you look at the dealership now, it looks like the car wash has always been there.” OCTANE CCentral.ca

BOLT DOWN BOLLARDS

SPEED HUMPS & BUMPS Canada’s Bollard Cover Company Canadian affiliate of

1-800-756-3537 www.sureguard.ca

MAY | JUNE 2017 OCTANE 21

4 13/16"h x 3 9/16"w


CCA CAR WASH TOUR

HIGH achievers This year’s CCA Toronto Car Wash Tour focused on three sites that look to equipment innovation to help them make the grade in a competitive service environment BY KELLY GRAY

FIRST STOP KLASSIC CAR WASH Operators: Garry Grewal and nephews Tony and Rozi 5 locations: Barrie (3), North York (1) and Mississauga (1)

22 OCTANE MAY | JUNE 2017

More than 150 car wash industry members gathered early on Day One (March 7) of The Convenience U CARWACS Show for a morninglong tour of some of Ontario’s most innovative vehicle cleaning sites. As in year’s past, the event was organized by the Canadian Carwash Association (CCA), Canada’s voice for vehicle care professionals. Using three highway coaches, attendees investigated locations such as Klassic Car Wash, 3171 Derry Road, Mississauga; Shell Canada site at 9950 Chinguacousy Rd., Brampton; and the Burlington Auto Spa at 1227 Appleby Line.

TAKING A ‘KLASSIC’ TO A NEW LEVEL Klassic Car Wash is a five location chain with three sites in Barrie, one in North York and another in Mississauga where operator Garry Grewal and nephews Tony and Rozi Thind have been working together since 2016. Together the group has modernized and updated the Derry Road facility, turning it into an excellent example of car wash best practice. Grewal and his team modernized the wash pay point system to help speed through put. They installed a two lane ICS Auto Sentry System that features the CCentral.ca


very latest in EMV upgrades that allows for chip and pin as well as Tap & Go capability. The RFID option is available for monthly pass holders. “This restricts the usage to one vehicle rather than a card system where a card can be passed around to other vehicles,” says Grewal. According to Bill Barber of Wash Links, the operators replaced much of the car wash equipment with new systems from SONNY’s. Now this new equipment starts right at the welcoming arch at the opening to the wash and extends through to the exit. The site also uses Turtle Wax Pro products such as Fire and ICE 2-step Lava wax process to create a remarkable clean

CCentral.ca

and shine. The 2-step process utilizes LED lighting to highlight applications such as the finishing touch of tire sealant. Interesting is that the system uses a ‘front pull’ approach that differs from much of current practice. The operators recently completed a 12 bay vacuum station. Here customers receive free vacuum service with equipment from Vac U Tech. Bays are large and well equipped. According to Grewal, the free vacuum service is a nice added value that delivers good will at the end of wash package. He reports further that the renovation has resulted in significant increases to volume.

MAY | JUNE 2017 OCTANE 23


SECOND STOP SHELL Operators: Munish Sachar 9950 Chinguacousy Rd. Brampton

FULL SERVICE ATTRACTION

• Commercial Vehicle Wash Equipment • Cleaning Equipment • Automatic Car Washes

1.888.430.9359

• Waste Water Recycle

• Air Compressors

• CAT Pumps & pumps of all kinds

• Cleaning Chemicals

• Pressure Washers

• Car Wash Accessories

www.pumpsandpressure.com

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

24 OCTANE MAY | JUNE 2017 PumpsPressure_OCTANEJanFeb17_EF.indd 1

2016-12-15 10:57 AM

At Shell’s 9950 Chinguacousy Rd., location operator Munish Sachar oversees the site. He reports the facility features a fuel forecourt under canopy, a Shell Select c-store with Tim Hortons and a state-of-the-art vehicle cleaning centre. Featured in the touchless wash is an in-bay automatic Belanger Kondor Model KL-2 (Dual Arm) that is exclusively distributed by MONDO Products. MONDO Products also manufactures and distributes the chemicals in use in the facility. The dryer is a 50 horsepower Belanger Air Cannon. According to the operator innovations include wall mounted frame units. This means floors are cleaner with no bolts or metal plates to gather grime. The wall mounts are also simpler to clean because they are located where staff can more easily get at nooks and crannies. The result is a fresher appearance overall. Sachar comments that the existing wash system at the 11-year-old location has been in use for roughly two years. Through put is described as running 16 cars per hour with a water use of about 60 gallons per vehicle. Sachar reports that it takes about four minutes to clean each car. To maximize the opportunity for its customers Shell markets the site with three packages (Basic, Deluxe, and Ultimate). There is also a discount pre-paid option and a season pass. “Gas is a major draw for customers, but we have to be right on top of the pricing,” says Sachar, commenting that prices can drop 0.05 cents to 0.08 cents during the evening in an attempt to attract customers. CCentral.ca


THIRD STOP AUTO SPA BURLINGTON General Manager: Fred Misheal 1227 Appleby Line, Burlington

UNCOMPROMISING WASH IS IN THE DETAILS Auto Spa Burlington was built in 2005. The facility offers North America’s longest conveyor wash tunnel at 256 feet and a detail conveyor that is 100 feet inside the facility. The site also features eight coin op self-serve wand wash bays as well as a three-bay Jiffy Lube and two bays for fine detailing. According to Auto Spa General Manager Fred Misheal, the automatic wash equipment is 75% Macneil Wash and 25% Belanger. The self-service equipment comes from Ryco. Inside the detailing centre teams take on each vehicle with a dedicated approach that has vehicles get the full treatment in about half an hour. He reports

that totals run somewhere around 1,100 vehicles a day through the tunnel and about 350 through the detailing wash. The Jiffy Lube site offers services such as window chip repair, 3M protection, and paintless dent remover in addition to oil changes and lube jobs. “On the detailing side it’s like an assembly line where teams have their specific jobs and work like pit crews with vehicles moving on a belt towards the exit,” says Misheal. In the massive tunnel the length allows a full range of options for an uncompromising clean and shine. Coming soon is a new Auto Spa that will see the company double the size of the footprint with a new facility also located in Burlington. OCTANE

Announcing

CONTACTLESS PAYMENT “No Cash? No Problem!”

Just Tap

N Go!

Fast & easy – Enhance customer satisfaction. Also introducing Wireless Remote Monitoring to the AIR-Serv Total Service Program. Check uses and other data online.

Service. Technology. Innovation.

(800) 263-1429 • www.AIR-serv.com CCentral.ca

MAY | JUNE 2017 OCTANE 25


CANADIAN

CARWASH ASSOCIATION Directors Christopher Armena Brad Baldwin

Domenic DiMonte Terry Fahey

HIGHLIGHTS FROM – MARK VII

– ZEP VEHICLE CARE INC.

Mike Dietrich

– PIONEER ENERGY

– CROSSTOWN CAR WASHES

– FAHEY ELECTRIC/CAPITAL WASH SYSTEMS

Brad Goetz

– MONDO PRODUCTS CO. LTD.

Jason Kaye

– BAYVIEW CAR WASH LTD.

Kevin Krystik

– SUNCOR ENERGY

Sean McBride

– BELANGER INC.

Matt McCulloch

– TRANSCHEM INC.

Christal Narday

– VALET CAR WASH

Kirsten Potvin Chandra Saran Rudy van Woerkom

MAY 2017

THE ANNUAL CCA CARWASH TOUR

ith more than 130 carwash owners and operators in attendance on March 7, the CCA Carwash Tour was another resounding hit with participants getting an insiders W view of what makes each carwash site such a success. CCA members and non-members alike departed from the Toronto Congress Centre on the first day of the Convenience U CARWACS Show and travelled to three CCA member carwash sites. The tour visited Klassic Carwash, Shell in Mississauga g and Auto Spa p in Burlington, g ON.

– CARWASH FINDER

– CANADA WASHWORLD

– 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.

At Klassic, Garry Grewal and his nephews, Tony and Rozi Thind joined forces two years ago and put their combined expertise to work at the Derry Road location. Most of the car wash equipment has been replaced with SONNY’S equipment and a new 12 car free vacuum area with equipment and arches from Vac u tech supplied and installed by Washlinks. The second site was a Shell Canada location operated by Munish Sachar. The car wash features a touchless in-bay automatic Belanger Kondor Model KL-2 (Dual Arm) manufactured in Northville, Michigan and distributed exclusively by Mondo Products Company Limited. The existing wash system is approximately two years old. The dryer is a 50 horsepower Belanger Air Cannon drying system. The site is approximately 11 years old.


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

INTRODUCING

THE 2017-18 CCA BOARD OF DIRECTORS The Canadian Carwash Association (CCA) held its Annual General Meeting (AGM) on Wednesday, March 8, 2017. The 2017-18 Board of Directors slate was approved by members of the Association who attended in person or who submitted a proxy form prior to the AGM.

2017 CCA GOLF TOURNAMENT ith summer, almost upon us, it’s time to get out to the greens to practice your swing ahead W of the 2017 CCA Golf Tournament. Members come

Your CCA Board members are: Christopher Armena, Mark VII; Brad Baldwin, Zep Vehicle Care Inc.; Mike Dietrich, Pioneer Energy; Domenic DiMonte, Crosstown Car Washes; Terry Fahey, Fahey Electric/Capital Wash Systems; Brad Goetz, Mondo Products Co. Ltd.; Jason Kaye, Bayview Car Wash Ltd.; Kevin Krystik, Suncor Energy; Sean McBride, Belanger Inc.; Matt McCulloch, Transchem Inc.; Christal Narday, Valet Car Wash; Kirsten Potvin, Carwash Finder; Chandra Saran, Canada Washworld; and Rudy van Woerkom, Belvedere Technical Service Ltd Learn more about the CCA Board of Directors on the CCA website.

every year to network with each other and trade tips and information on the carwash business, on their golf game, or both. The full day of golf ends with a dinner and prize draws, with proceeds going to support Trout Unlimited Canada’s Yellow Fish Road program. This year’s tournament will be held at Blue Springs Golf Club in Acton, Ontario on September 14th. Visit the CCA website at canadiancarwash.ca/golf for more information on how to sign up for the tournament. For sponsorship opportunities, contact the National Office at 416-239-0339 office@ canadiancarwash.ca.

Highlights from the Annual CCA Carwash Tour... continued

The system as installed is capable of washing approximately 16 cars per hour and uses approximately 60 gallons of water per vehicle. The third site, Auto Spa in Burlington was built in 2005 and is a full serve wash facility equipped with a 256 foot long tunnel and 100 foot conveyor belt plus 8 self-serve bays. The automatic wash equipment is 75% Macneil Wash and 25% Belanger Inc. equipment. The self-serve equipment is Ryco. This site also features a 3 bay Jiffy Lube station and 2 bays for fine detailing. The CCA would like to thank everyone for attending the tour, with a special thank you to the three CCA member carwashes for generously sharing their facilities with the Carwash Tour participants. Additional pictures of the event can be found on the CCA www.canadiancarwash.ca CANADIAN CARWASH ASSOCIATION


Profile for ensembleiq

CSNC - May 2017  

CSNC - May 2017