NACS Magazine April 2023

Page 1

BREAKFAST

Win back the morning daypart

CONSTRUCTION

Avoid common permitting pitfalls

about convenience and fuel retailing

convenience.org Advancing Convenience & Fuel Retailing APRIL 2023
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What Consumers
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are your greatest representative. TO GET INVOLVED Join store owners across the country who are fighting for fair tobacco policies. CLICK HERE
You

Power

NACS APRIL 2023 1 Subscribe to NACS Daily—an indispensable “quick read” of industry headlines and legislative and regulatory news, along with knowledge and resources from NACS, delivered to your inbox every weekday. Subscribe at www.convenience.org/NACSdaily STAY CONNECTED WITH NACS @nacsonline facebook.com/nacsonline instragram.com/nacs_online linkedin.com/company/nacs On the cover: Melnikov Sergey/Shutterstock ONTENTS FEATURES 30 Finding the Right Brand Partner A Q&A with Sunoco. 32 Selling Fuel to People in a Bad Mood Consumer sentiment is down, but there are opportunities to set yourself apart. 42 Freshening Up Your Brand Rebranding can revitalize your business— if it’s done right. 50 Permitting Pitfalls How to avoid (or learn to accept) the common hiccups that occur with local development and building approvals. 66 Thriving in an Online World THRIVR, created by NACS and powered by SOCi, helps retailers connect with consumers before they walk in the door. 70
to Lead in the Age of Disruption The 2023 NACS Leadership Forum explored transformation, inspiration and innovation. 58
How
meal of the day.
Breakfast Capitalize on the most important

IT’S A FACT $1,917

The average monthly sales per store for ice cream in 2021.

CATEGORY CLOSE-UP PAGE 84

ONTENTS NACS / APRIL 2023

DEPARTMENTS

06 From the Editor

08 The Big Question

10 NACS News

16 Convenience Cares

20 Inside Washington Meet the eight new senators of the 118th Congress.

28 Ideas 2 Go

While Kenly 95 Petro caters to professional drivers, the complex has plenty to lure tourists and locals alike.

78 Cool New Products

82 Gas Station Gourmet Rocket Market is a neighborhood hub that offers its customers a uniquely local experience.

84 Category Close-Up Packaged ice cream continues to bring in significant sales, especially as the weather warms; also, alternative snacks were making a comeback, but that momentum was cut short by inflation. What’s next for the category?

96 By the Numbers

2 APRIL 2023 convenience.org The presence of an article in our magazine should not be permitted to constitute an expression of the association’s view. PLEASE RECYCLE THIS MAGAZINE viennetta/Shutterstock
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EDITORIAL

Kim Stewart Editor-in-Chief (703) 518-4279 kstewart@convenience.org

Ben Nussbaum Senior Editor (703) 518-4248 bnussbaum@convenience.org

Lisa King Managing Editor (703) 518-4281 lking@convenience.org

Sara Counihan Contributing Editor (703) 518-4278 scounihan@convenience.org

CONTRIBUTING WRITERS

Terri Allan, Sarah Hamaker, Al Hebert, Renee Pas

DESIGN Imagination www.imaginepub.com

ADVERTISING Stacey Dodge Advertising Director/ Southeast (703) 518-4211 sdodge@convenience.org

Jennifer Nichols Leidich National Advertising Manager/Northeast (703) 518-4276 jleidich@convenience.org

Ted Asprooth National Sales Manager/ Midwest, West (703) 518-4277 tasprooth@convenience.org

PUBLISHING

Stephanie Sikorski Vice President, Marketing (703) 518-4231 ssikorski@convenience.org

Nancy Pappas Marketing Director (703) 518-4290 npappas@convenience.org

Logan Dion Digital Media and Ad Trafficker (703) 864-3600 ldion@convenience.org

NACS BOARD OF DIRECTORS

CHAIR: Don Rhoads, The Convenience Group LLC

OFFICERS: Lisa Dell’Alba Square One Markets Inc.; Annie Gauthier, St. Romain Oil Company LLC; Varish Goyal, Loop Neighborhood Markets; Brian Hannasch, Alimentation Couche-Tard Inc.; Chuck Maggelet, Maverik Inc.; Ken Parent, Pilot Flying J LLC; Victor Paterno, Philippine Seven Corp. dba 7-Eleven Convenience Store

PAST CHAIRS: Jared Scheeler, The Hub Convenience Stores Inc.; Kevin Smartt, TXB Stores

MEMBERS: Chris Bambury, Bambury Inc.; Frederic Chaveyriat, MAPCO Express Inc.; Andrew Clyde, Murphy USA; George Fournier, EG America LLC

NACS SUPPLIER BOARD

CHAIR: Kevin Farley, GSP

CHAIR-ELECT: David Charles, Cash Depot

VICE CHAIRS: Josh Halpern, JRS Hospitality; Vito Maurici, McLane Company; Bryan Morrow, PepsiCo Inc.

PAST CHAIRS: Brent Cotten, The Hershey Company; Rick Brindle, Mondelez International; Drew Mize, PDI Technologies

MEMBERS: Tony Battaglia, Juul Labs; Alicia Cleary, AnheauserBush/In Bev; Jerry Cutler InComm Payments; Jack Dickinson, Dover Corporation; Matt Domingo, Reynolds; Mark Falconi, Oberto Snacks Inc.; Mike Gilroy, Mars Wrigley;

Terry Gallagher, Gasamat Oil/ Smoker Friendly; Douglas S. Haugh, Parkland USA; Raymond M. Huff, HJB Convenience Corp. dba Russell’s Convenience; John Jackson, Jackson Food Stores Inc.; Ina (Missy) Matthews, Childers Oil Co.; Brian McCarthy, Blarney Castle Oil Co.; Charles McIlvaine, Coen Markets Inc.; Lonnie McQuirter, 36 Lyn Refuel Station; Tony Miller, Delek US; Jigar Patel, FASTIME; Elizabeth Pierce, Applegreen LTD; Robert Razowsky, Rmarts LLC; Richard Wood III, Wawa Inc.

SUPPLIER BOARD

REPRESENTATIVES: David Charles, Cash Depot; Kevin Farley, GSP

STAFF LIAISON: Henry Armour, NACS

GENERAL COUNSEL: Doug Kantor, NACS

Danielle Holloway,Altria Group Distribution Company; Jim Hughes, Molson Coors Beverage Company; David Jeffco, Dirty Dough LLC; Kevin Kraft, Q Mixers; Kevin M. LeMoyne, Coca-Cola Company; Lesley D. Saitta, Impact 21; Sarah Vilim, Keurig

Dr Pepper

RETAIL BOARD

REPRESENTATIVES: Scott E. Hartman, Rutter’s; Steve Loehr, Kwik Trip Inc.; Chuck Maggelet, Maverik Inc.

STAFF LIAISON: Bob Hughes NACS

SUPPLIER BOARD

NOMINATING CHAIR: Kevin Martello, Keurig

Dr Pepper

NACS Magazine (ISSN 1939-4780) is published monthly by the National Association of Convenience Stores (NACS), Alexandria, Virginia, USA.

Subscriptions are included in the dues paid by NACS member companies. Subscriptions are also available to qualified recipients. The publisher reserves the right to limit the number of free subscriptions and to set related qualifications criteria.

Subscription requests: nacsmagazine@convenience.org

POSTMASTER: Send address changes to NACS Magazine, 1600 Duke Street, Alexandria, VA, 22314-2792 USA.

Contents © 2023 by the National Association of Convenience Stores. Periodicals postage paid at Alexandria VA and additional mailing offices. 1600 Duke Street, Alexandria, VA 22314-2792

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UP FRONT FROM THE EDITOR

Fueled Up

Does anyone get excited about buying gas? Some version of that question is one I’ve heard many times during my four years at the helm of NACS Magazine. I have to say, I don’t mind gassing up my car (except for those times working at a weekly newspaper after college when I could only afford a few dollars at a time). Hang around long enough with folks in this industry, especially on the petroleum side, and you can’t help but smile when you see gleaming new EMV-compliant fuel dispensers in the wild—double points for ones with touchscreens and advertising.

For most consumers, buying gas isn’t the highlight of their day. In fact, consumers are grumpy about buying anything these days, mainly because of inflation. The findings of the 2023 NACS Consumer Fuels Survey indicate widespread pessimism about the U.S. economy, with 90% of drivers surveyed saying that gasoline prices have a “great impact” or “some impact” on how they perceive the economy. When it comes to convenience, there are some bright spots. The survey found that 85% of consumers rated their last experience at a c-store as excellent or good, and consumers say c-stores outrank other retail channels for customer experience. Read more in our cover story, “Selling Fuel to People in a Bad Mood.”

Ask anyone who’s ever dealt with construction and they’ll be quick to share how even the most straightforward project can go awry. In “Permit-

ting Pitfalls,” we tap into the wisdom of two convenience retailers with newly opened stores: Babir Sultan, president of FavTrip, and Kevin Smartt, CEO of TXB Stores, who share practical advice for dealing with setbacks.

Last year we looked at THRIVR, an exciting new initiative from NACS and SOCi that provides an affordable way for convenience retailers big and small to manage their digital presence. This month we provide an update in “Thriving in an Online World.”

Elsewhere, we share ways to build back the breakfast daypart, how to refresh your store’s brand and leadership lessons from the 2023 NACS Leadership Forum.

Here’s to spring and new beginnings. See you on the road, my friends.

Geeking out over the gleaming fuel dispensers at TXB in Georgetown, Texas, and Kenly 95 Petro in Kenly, North Carolina.

6 APRIL 2023 convenience.org
Kim Stewart , Editor-In-Chief
For most consumers, buying gas isn’t the highlight of their day.”
Photo credit: Kim Stewart
Stock up today Contact your distributor to order or visit 5-hourENERGY.com Visit 5hourEnergyRetailer.com to join the FREE program designed just for independent retailers. ©2023 Living Essentials Marketing, LLC. All rights reserved. Hot Sales On Deck Carry the flavors your customers want this summer

UP FRONT THE BIG QUESTION

Innovation is a cultural imperative for the Wills Group and Dash In. It’s one of our pillars. Innovation is not just the responsibility of the senior leadership team or a specific functional area. It’s an objective for the entire organization, and we ask all of our employees to think about innovation as part of their day-to-day jobs.

Oftentimes people think innovation is looking for the next million- or billion-dollar idea. I’ve told our team, don’t get caught up in that, just focus on continuous improvement. What can you do daily that can be innovative, that can help propel the company forward?

Wills Group has seven core values, and one of our values is courage. We define courage as saying we trust that our employees are going to take intelligent risks, rewarding them for positive results and not penalizing them for negative outcomes. We recognize not everything is going to work out, but if we’re not pushing ourselves to do something different and to take some risks, then we’re never going to move forward.

We built a new store in Richmond, Virginia, in 2018, and it was one of our first neighborhood store concepts. Richmond is a big craft beer market, and so, we said, ‘Why don’t we sell craft beer and partner with local breweries?’ We developed a growler and crowler

What does innovation mean for Dash In and the Wills Group?

and architecture and the environment of the store, along with the food and beverage program.

We’re making a big step forward with this concept. We’re going to be bringing in raw proteins and making craft burgers in-house. We’re going to have plant-based options, which is pushing the envelope for the convenience channel. We’ve got an Impossible Burger and a plant-based sausage product for breakfast sandwiches.

This new store concept is going to be the North Star for the Dash In brand. It’s also the launch of our new visual identity for Dash In and Splash In—new logos, new design aesthetic. It looks completely different from what we’ve done up until now.

program. Fast forward five years later, and we’ve kept it, but we haven’t taken it further. This test showed us there’s not enough consumer demand to take this across all of our Virginia stores. I’m the first to raise my hand and say, ‘Hey, that was my idea, it didn’t work out as planned, and we move on.’

I think that helps from an authenticity perspective, just to let the rest of the organization know that if we don’t push ourselves, we’re not really pursuing innovation, and along the way, we’re going to make some mistakes. But as long as we mitigate the impact of those mistakes, then things are good.

Next on the horizon for us is our new Dash In concept in Chantilly, Virginia. It is very much an elevated offering, elevated in terms of the design

Our team is really excited about this Chantilly store and the 16 ones coming behind it. Over time, we’ll rebrand all of our locations and bring in the new menu. We want to test and learn some things first in these new concepts.

Innovation is a cultural imperative, and among the things we’re doing internally is to invest in examining our diversity, equity and inclusion commitment. We’ve done a lot of internal surveys and interviews with employees to think about, ‘What are the things that we need to do to move the organization forward?’

Innovation has to be a part of everything we do, and not just from a technology perspective or from a product development perspective. It’s really an integral part of the culture here at the Wills Group.

8 APRIL 2023 convenience.org
 Julian B. (Blackie) Wills III, President and COO of the Wills Group

Today, more than 20 million U.S. adult smokers are seeking potentially less harmful alternatives to cigarettes. We are committed to preserving the harm reduction opportunities that smoke-free tobacco products hold for adult smokers. And to making sure that, even as the tobacco category changes, your retail success continues.

©2023

Connect With Exec Ed Alumni

NACS has launched the NACS Executive Education Alumni Network to expand the educational and professional networking opportunities for the hundreds of people who have attended one or more of the five NACS Executive Programs.

“The NACS Executive Education series is the only comprehensive, multi-discipline industry curricula that offers customized, Ivy League training exclusively for senior convenience management. The Alumni Network extends this value by providing long-term connections and professional development

for the leaders who are shaping the future of our industry and of retail overall,” said NACS Vice President of Research and Education Lori Stillman.

The Alumni Network provides curated executive-level content via newsletters, in-person networking events, live webinars with university professors, discounts to open-enrollment courses and an invitation to join the official NACS Alumni LinkedIn group for year-round interaction with like-minded peers.

“The NACS Executive Education program already offers an unparalleled, prized education experience. The

NACS Welcomes Logan Dion

Alumni Network provides participants with long-term connectedness and additional professional development opportunities to extend their learning journey,” said Stillman.

The five NACS Executive Education programs include: NACS Financial Leadership Program at Wharton, NACS Marketing Leadership Program at Kellogg, NACS Executive Leadership Program at Cornell, NACS Innovation Leadership Program at MIT and NACS Women’s Leadership Program at Yale.

Starting in March, participants of any of the five NACS Executive Education programs since 2017 began receiving invites to join the Alumni Network. Anyone who attended a NACS Executive Education program in 2016 or prior also is eligible to join.

Contact Brandi Mauro at bmauro@ convenience.org to request an invitation. The first scheduled networking event will take place in April at the NACS State of the Industry Summit.

Logan Dion has joined NACS as digital media and ad trafficker. In this role, Dion will help with the endto-end execution of supplier-paid advertising campaigns for all official NACS Media and Fuels Market News properties—both print and digital—including subscription boxes, convenience.org, webinars, paid product placement and branded-content activation. Dion spent nearly seven years at Boston Scientific, where she started as an intern. Upon joining full time, she was promoted to increasingly responsible positions that included marketing operations specialist and marketing communications specialist. Dion earned a B.A. in marketing-communication from the University of Massachusetts Amherst.

10 APRIL 2023 convenience.org UP FRONT NACS NEWS
Logan Dion

New Members

NACS welcomes the following companies that joined the association in January 2023. NACS membership is company-wide, so we encourage employees of member companies to create a username by visiting www.convenience.org/Create-Login. All members receive access to the NACS Online Membership directory, latest industry news, information and resources. For more information about NACS membership, visit convenience.org/membership.

NEW HUNTER CLUB MEMBERS

Juice Head Pouches

Huntington Beach, Calif. www.streamlinegroupinc.com

VIBEZ Sunglasses Inc. Hooksett, N.H. www.vibezsunglasses.com

NEW RETAIL MEMBERS

7-11 Store 33637 Newark, Calif.

Atco Inc. Sarasota, Fla.

Good2Go Stores LLC

Idaho Falls, Idaho

www.good2gostores.com

Granite Peak Smelting Company LLC

dba Miner’s Grab N Go McCall, Idaho

Petroleum Marketing Group Falls Church, Va. www.petromg.com

RUBiS Energy Bermuda St. George’s, Bermuda

Short Trip Management Inc. Summerton, S.C. www.shorttrip.com

Shout and Sack Vinita, Okla. www.shoutandsack.com

NEW SUPPLIER MEMBERS

37th Street Bakery LLC Chicago, Ill. www.37thstreetbakery.com

Airosol Company Inc. Neodesha, Kan. www.airosol.com

Altaine Auckland, New Zealand www.altaine.com

Atomic Brands Fort Wayne, Ind. www.drinkmonaco.com

Big Rig Tees Tulsa, Okla. www.bigrigtees.com

Calumet Carton South Holland, Ill.

CigTrus Pomona, N.Y. www.cigtrus.com

Cima Cash Handling America Inc. Houston, Texas www.cima-america.com

Calendar of Events

2023 APRIL NACS State of the Industry Summit

April 18-20 | Hyatt Regency DFW International Airport | Dallas, Texas

NACS Leadership for Success

April 30-May 05 | Virginia Crossings Hotel & Conference Center | Glen Allen (Richmond), Virginia

MAY

NACS Convenience Summit Europe

May 30-June 01 | Intercontinental Dublin | Dublin, Ireland

EMCO spol. s r. o. Prague, Czech Republic www.emco-us.com

Fit Tea Miami, Fla.

Helios Brands LLC Spicewood, Texas www.chinookseedery.com

InStore.ai Los Altos, Calif. www.instore.ai

Kressner Strategy Group Bayside, N.Y. www.kressnerstrategygroup.com

Lawrence Foods Elk Grove Village, Ill. www.lawrencefoods.com

Montavue Missoula, Mt. www.Montavue.com

Performance Inspired Nutrition Warrendale, Pa. www.pi-nutrition.com

Port Jersey Logistics Cranbury, N.J. www.portjersey.com

JULY

NACS Financial Leadership Program at Wharton

July 16-21 | The Wharton School University of Pennsylvania | Philadelphia, Pennsylvania

NACS Marketing Leadership Program at Kellogg

July 23-28 | Kellogg School of Management | Northwestern University | Evanston, Illinois

Proper Wild New York, N.Y. www.properwild.com

Puka Creations Gardena, Calif.

Spectas

Chattanooga, Tenn. www.spectas.global

STM Display Sales Inc. Mississauga, Ontario www.stmdisplays.com

The Whole Coffee Company Miami Gardens, Fla. www.tncruz.com

Toufayan Bakeries Inc. Ridgefield, N.J. www.toufayan.com

White Coffee Corporation Long Island City, N.Y. www.whitecoffee.com

Wind River Environmental Marlborough, Mass.

Wm. Bolthouse Farms dba Bolthouse Farms Bakersfield, Calif. www.bolthouse.com

NACS Executive Leadership Program at Cornell

July 30-August 03 | Dyson School, Cornell University | Ithaca, New York

OCTOBER

NACS SHOW

October 03-06 | Georgia World Congress Center | Atlanta, Georgia

For a full listing of events and information, visit www.convenience.org/events.

12 APRIL 2023 convenience.org
UP FRONT NACS NEWS

Member News

RETAILERS

Sheetz announced that Joe Sheetz has been appointed chairman of the Sheetz board of directors.

Sheetz will oversee the board’s activities as they relate to corporate governance and risk, executive appointments and compensation in addition to longterm planning.

Ryan Speakes has been named vice president of fuel center and convenience stores at SpartanNash. Speakes will be responsible for providing leadership, strategic direction and operations plans for SpartanNash’s 37 fuel centers, most of which include a convenience store and are co-located with a company-owned grocery store.

SUPPLIERS

ADD Systems announced the passing of Bruce A. Bott, the founder of ADD Systems.

Bott built ADD Systems from a one-person operation to a corporation that employs 150+ people across the U.S. and Canada. Bott partnered with Bill Dixon of Dixon Oil to create ADD Systems, developing fuel management software that automated the process of predicting fuel deliveries. In 1997, Bott spearheaded the first of three acquisitions, each of which added additional industry expertise, clients, and software.

CITGO named Chris Kiesling as assistant vice president light oils operations and marketing. Kiesling will oversee all activities related to terminals and pipelines, brand development, light oils sales, light oils pricing and business analysis.

Impact 21 has named Scott Knox as principal consultant, program manager. Knox has served in the convenience retailing industry for the past 16 years, including prior work with national and proprietary brands.

S. Abraham & Sons, a subsidiary of Imperial Trading Company, has promoted George Bennett to president of S. Abraham & Sons. Bennett began his career with SAS in 2010 as vice president of sales and was promoted to vice president of sales & marketing in 2014 and chief marketing officer in 2019.

Jim Leonard has retired as chief operating officer from S. Abraham & Sons. He began his career with SAS in 1988 working with the Abraham Seniors in all facets of the company to

include vice president, administration and chief financial officer. In 2019 Leonard was promoted to COO leading SAS to continued growth and expansion.

David Price has joined FeedbackNow by Forrester as account executive for its convenience retail clients. Price will focus on helping clients with real-time responses to customer-impacting operations.

Mark Tentis was named vendor director on the 2023-24 board of directors of the International Carwash Association. Tentis also serves as senior vice president for global sales and service at OPW Vehicle Wash Solutions. Tentis, who has 22 years of experience as a professional in the vehicle wash market, was nominated for the position by his fellow colleagues in the industry. He will serve a two-year term.

KUDOS

Congratulations to ADD Systems on the company’s 50th anniversary. ADD Systems was founded in 1973 with the goal of improving the way energy distributors operate. Today, ADD Systems is happy to carry on that same goal to the energy distribution, HVAC and c-store industries.

14 APRIL 2023 convenience.org UP FRONT NACS NEWS
Joe Sheetz Ryan Speakes Bruce A. Bott Chris Kiesling Scott Knox George Bennett Jim Leonard Mark Tentis David Price
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Wawa Warms Up Polar Plungers

Wawa and The Wawa Foundation brought back the Wawa Community Care Vehicle for another year with visits to more than 20 events this winter and spring. The vehicle supports local partners with food and hot beverage donations.

The vehicle’s year began with stops at annual polar plunges that support Special Olympics, and Wawa served more than 10,000 hot beverages at events in Delaware, Florida, Maryland, New Jersey, Pennsylvania and Virginia.

“At Wawa, we believe in being a positive force for good in every community where we live and work—not just with donations, but with heartfelt actions and interactions that help bring out the best in everyone,” said Liz Simeone, senior manager of Wawa Community Care and

The Wawa Foundation. “Our Community Care Vehicle is one way we connect with and amplify the efforts of those serving others in our communities. We wish all the polar plungers luck and hope our hot beverages help warm you up as you take a dip in those frigid waters to support the amazing athletes of Special Olympics.”

Wawa’s Community Care Vehicle serves an estimated 50,000 hot beverages at events throughout the year. National charity partners of The Wawa Foundation include JDRF, Special Olympics, the Leukemia and Lymphoma Society, the USO and the American Red Cross. Meanwhile, Wawa teamed up with QuikTrip before the Super Bowl for some friendly competition by showing support for their hometown teams

while making a positive impact in the community.

QuikTrip, which has a large store presence in the Kansas City area, backed the Chiefs, while Pennsylvania-based Wawa rooted for the Eagles. Following the game, Wawa donated $10,000 to Synergy Services, one of the only shelters for runaway and homeless youth in western Missouri.

“Our thanks to Wawa for partnering with us to turn our good-natured rivalry into a win-win for our very deserving local charity partners,” said Aisha Jefferson-Smith, QuikTrip corporate communications manager. “Our partnership with Synergy Services and our national Safe Place locations provide our community’s most vulnerable youth with a safe environment when they need it most.”

16 APRIL 2023 convenience.org
CONVENIENCE CARES

CONVENIENCE CARES In The Community

Every year, the convenience and fuel retailing industry dedicates billions of dollars to advancing the futures of individuals and families in our communities. The NACS Foundation unifies and builds on NACS members’ charitable efforts to amplify their work in communities across America, and to share these powerful stories. Learn more at www.conveniencecares.org

SHARE THE LOVE

1 Love’s Travel Stops celebrated the 10th year of its annual Share the Love event by donating $110,000 to nonprofit organizations across the U.S. on behalf of its more than 39,000 employees. Additionally, 300 Love’s employees in Oklahoma City, and 40 Trillium Energy and Musket employees in Houston, spent Valentine’s Day volunteering at organizations where their corporate offices are located. Team members at Love’s Travel Stop locations also had the chance to participate in the event by voting on an organization in their division to receive $10,000.

SOCIAL SHARES

NACS encourages retailers to share their giving-back news on social media using #ConvenienceCares

SUICIDE PREVENTION

2 The GATE Foundation, the philanthropic arm of Jacksonville, Florida-based GATE Petroleum Company, and GATE customers raised $50,000 for the American Foundation for Suicide Prevention (AFSP). Funds were collected July 1 through December 31, 2022, in coin boxes at the registers of all GATE locations in Florida, Georgia, North Carolina and South Carolina. Funding will be allocated to AFSP chapters in the state where collected.

ALTA SUPPORTS MAKE-A-WISH

3 Alta Convenience stores and sister company Petro Marts have raised over $300,000 for Make-A-Wish. CF Altitude LLC, the parent company of both brands, has locations in Colorado, Illinois, Kansas, Missouri, Nebraska, New Mexico and Wyoming, and the funds raised in each state will go directly to that state’s Make-A-Wish chapter.

PILOT CO. SPOTLIGHTS HEART HEALTH

4 Pilot Company launched its annual round-up drive to support the American Heart Association’s Life is Why cause

campaign to encourage heart health. Customers donated at participating Pilot, Flying J or One9 Fuel Network travel centers during February. Pilot also promoted heart health and safety among its 30,000 employees by providing virtual, hands-only CPR training, resources to find nearby CPR classes, virtual cooking classes and other health and wellness tips.

EG AMERICA SUPPORTS

AMERICAN RED CROSS

5 To help the American Red Cross in its efforts to assist those in need and to commemorate Red Cross Month in March and its generous volunteers, EG America held a fundraiser with a goal of raising $150,000. During March, guests had the opportunity to donate $1, $5 or an amount of their choosing to the Red Cross during checkout. All proceeds will go toward supporting the urgent needs of the Red Cross’s humanitarian mission to alleviate human suffering in the face of emergencies. This U.S. fundraiser was part of EG Group’s global participation to support the Red Cross.

18 APRIL 2023 convenience.org
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Meet the New Senators of the 118th Congress

Now that the 118th Congress is convened, committee assignments filled and hearings and policy agendas underway, let’s turn our attention to the eight newest members of the U.S. Senate. Democrats hold a slim majority of 51-49 in this chamber, which means each senator could play a critical role in moving any bill through the legislative process. All of these freshmen, or first-term senators, sit on committees important to the convenience and fuel retailing industry, handling such issues as swipe fees, electric vehicles, fuels, SNAP, privacy and labor, among many others.

Several of the new senators served in the U.S. House of Representatives, and NACS has already had an opportunity to build a strong relationship with them working on issues together. With the senators who have not previously served in federal office, the NACS government relations team has been working to educate their legislative staff about our industry and create new relationships. A critical part of that effort is bringing together these new offices with NACS members from these states.

SEN. KATIE BRITT (R-ALA.)

Katie Britt was elected to the Senate in 2022 having never served in public of-

fice before. While she is newly elected, she is not unfamiliar with Congress. Following her graduation from the University of Alabama, she worked for her predecessor, Sen. Richard Shelby, eventually serving as his chief of staff. She is a practicing attorney by trade and was CEO of the Business Council of Alabama from 2019-21. In the Senate, Britt serves on three committees: Banking, Appropriations and Rules. Her committee assignments on banking and appropriations will be important to the convenience and fuel retailing industry, especially with payments issues and swipe fees.

SEN. TED BUDD (R-N.C.)

Ted Budd served three terms in the U.S. House of Representatives representing North Carolina’s 13th Congressional Dis-

20 APRIL 2023 convenience.org INSIDE WASHINGTON
8 The number of new U.S. senators serving in the 118th Congress 51 The number of senators who are Democrats or caucus with them in the 118th Congress
Key Figures
Among the eight freshmen, there are six Republicans and two Democrats.
Sen. Katie Britt (R-Ala.) Sen. Pete Ricketts (R-Neb.)

trict before his election to the Senate in 2022. Prior to running for Congress in 2016, Budd had never held elected office. He was a business owner, operating a successful gun store and range. During his time in the House, Budd defined himself as a conservative and member of the House Freedom Caucus. He also served on the House Financial Services Committee. He was a vocal supporter of a proposal in 2017 that would have repealed the Durbin Amendment, the debit swipe-fee reforms that were championed by NACS and the convenience store industry. In the Senate, Budd is serving on four committees: Small Business; Health, Education, Labor and Pension; Commerce, Science, and Transportation; and Armed Services. Issues such as labor, health care, transportation, infrastructure, privacy,

data security, gasoline prices and others are in the jurisdiction of his committee assignments and important to the convenience industry.

SEN. JOHN FETTERMAN (D-PA.)

Prior to his election to the Senate in 2022, John Fetterman served four years as Lieutenant Governor of Pennsylvania and 13 years as mayor of Braddock, Pennsylvania. He also worked in the insurance industry and for AmeriCorps. Fetterman positioned himself as a progressive during his years in Pennsylvania, focusing on youth programs and redevelopment of low-income areas. He has battled health issues, including suffering a stroke during the 2022 campaign. In the Senate, Fetterman serves on five committees: Agriculture, Banking, Environment and Public

NACS APRIL 2023 21 U.S. Senate
Several of the new senators served in the U.S. House of Representatives, and NACS has already had an opportunity to build a strong relationship with them.”
Sen. Ted Budd (R-N.C.) Sen. John Fetterman (D-Pa.) Sen. Markwayne Mullin (R-Okla.) Sen. Eric Schmitt (R-Mo.) Sen. J.D. Vance (R-Ohio) Sen. Peter Welch (D-Vt.)

Works, the Joint Economic Committee, and the Special Committee on Aging. NACS will be working with him on issues such as the farm bill, SNAP, swipe fees and fuels.

SEN. MARKWAYNE MULLIN (R-OKLA.)

Markwayne Mullin served five terms in the U.S. House of Representatives representing Oklahoma’s 2nd Congressional District before succeeding retiring Sen. Jim Inhofe (R-Okla.) in 2022. He is the first tribal citizen of the Cherokee nation to serve in the U.S. Senate and the second Native American to serve in the Senate. Prior to running for Congress, Mullin was a businessman and rancher. While in the U.S. House of Representatives, Mullin served on the House Energy and Commerce Committee, where NACS worked closely with him and his staff on fuels, climate, privacy, menu labeling and numerous other issues. Mullin also participated in a NACS In Store event. In the Senate, Mullin serves on four committees: Armed Services; Environment and Public Works; Health, Education, Labor and Pensions; and Indian Affairs. Both the Environment and Public Works Committee and the Health, Labor and Pensions Committee have jurisdiction over important issues affecting the convenience industry, including fuels, infrastructure, labor and health care.

SEN. PETE RICKETTS (R-NEB.)

Pete Ricketts served as the 40th governor of Nebraska before his appointment to the U.S. Senate in January. As governor, he created a business-friendly climate and focused much of his administration on economic development and eliminating state taxes on Social Security and veterans’ benefits. Before running for governor, Ricketts worked for TD Ameritrade and is a former board member of the Chicago Cubs baseball franchise. In the Senate, Ricketts serves

ONE VOICE

This month, NACS talks to Jay Nelson, CEO, Excel Tire Gauge LLC

What does NACS political engagement mean to you, and what benefits have you experienced from being politically engaged?

I’m a frequent NACS Day on the Hill attendee. Anyone who hasn’t been before should seriously consider going. It’s a great opportunity to see firsthand how policies directly impact your business and our industry, and you’re able to share with our federal representatives directly on the issues that matter most. Every year I’m impressed by how engaging and interactive these meetings are. The c-store and fuel retailing industry is vast, and Congress needs to hear from us.

What federal legislative or regulatory issues keep you up at night?

Electric vehicles and credit card swipe fees keep me up at night. With respect to electric vehicles, policymakers continue to push for increased incentives for electric vehicles and charging stations. Convenience stores have a lot of resources and are currently the fueling destination for the traveling public. C-stores should not be left out of the electric vehicle equation and should be given the option to sell any legal source of transportation energy in a competitive marketplace.

As for credit card swipe fees, there needs to be more competition in the credit card market. Visa and Mastercard control about 80% of the credit card market. Main Street businesses—including convenience stores— thrive on competition, and the card networks should, too.

What c-store product could you not live without?

Water and Vitaminwater are my go-to in the store. Every time I fill up my tank, I go inside and grab a bottle or two!

22 APRIL 2023 convenience.org INSIDE WASHINGTON

on three committees: Environment and Public Works, Foreign Relations and the Special Committee on Aging. With fuels-related issues a top priority for NACS, Rickets’ assignment to the Environment and Public Works Committee will be important to the industry.

SEN. ERIC SCHMITT (R-MO.)

Eric Schmitt served as Attorney General of Missouri before being elected to the U.S. Senate to replace retiring Sen. Roy Blunt (R-MO). In addition, he held numerous state and local offices, such as state senator and treasurer of Missouri. In the Senate, Schmitt serves on three committees: Armed Services; Commerce, Science, and Transportation; and the Joint Economic Committee. His committee jurisdiction over commerce and transportation will also make him a key figure as the infrastructure legislation passed by the last Congress is implemented, along with privacy, data security and gasoline price issues.

SEN. J.D. VANCE (R-OHIO)

J.D. Vance served in the Marine Corps, was a combat correspondent in Iraq and worked in finance after his military service and before becoming a U.S. Senator. He serves on four Senate committees: Banking; Commerce, Science, and

Transportation Committee; the Joint Economic Committee; and the Special Committee on Aging. His position on the banking committee may make him an important figure in our industries’ efforts to pass the Credit Card Competition Act. In addition, privacy, data security, transportation and infrastructure issues all fall in the Commerce Committee jurisdiction.

SEN. PETER WELCH (D-VT.)

Prior to his election to the Senate in 2022, Peter Welch represented Vermont in the U.S. House of Representatives for 14 years. Welch previously served two stints in the Vermont Senate from 1981 to 1989 and 2001 to 2007. During his time in the House of Representatives, Welch often worked across party lines on legislation. In fact, during his 2008 reelection campaign, Welch had the rare distinction of being the nominee of both the Democratic and Republican parties for Vermont’s lone House seat. Welch has long been a champion of the convenience retailing industry and has led the fight for reform of credit- and debit-card swipe fees, including sponsoring legislation to reform these fees and pressing regulators to act against abuses of the credit card industry. In addition, he was helpful on menu labeling, privacy and data security issues. Welch was also one of the first members of Congress to participate in a NACS In Store event and participated in the 100th In Store event with two other members of Congress at a convenience store in Washington, D.C. In the Senate, Welch serves on four committees: Agriculture; Commerce, Science, and Transportation; Judiciary; and Rules.

24 APRIL 2023 convenience.org PeopleImages/Getty Images
Paige Anderson is NACS director of government relations. She can be reached at panderson@ convenience.org.
Welch was also one of the first members of Congress to participate in a NACS In Store event.”
INSIDE WASHINGTON
If you are interested in meeting with your senator, please reach out to Margaret Hardin, NACS Grassroots manager, at mhardin@convenience.org.
Millions of visits to BlackBuffalo.com 50% of surveyed prefer to buy in store Thousands of retailers across America ZERO reasons not to carry Black Buffalo CHARGE AHEAD For trade purposes only. Black Buffalo products are strictly intended for 21+ current consumers of nicotine, tobacco, or comparable alternatives. wholesale@blackbuffalo.com

INSIDE WASHINGTON

NACSPAC DONORS

NACSPAC was created in 1979 by NACS as the entity through which the association can legally contribute funds to political candidates supportive of our industry’s issues. For more information about NACSPAC and how political action committees (PACs) work, go to www.convenience.org/nacspac

NACSPAC donors who made contributions February 1-28, 2023, are:

Brad Anderson Weigel’s Stores Inc.

Ted Asprooth

NACS

Lisa Biggs

Impact 21

Sajid Chaudhry NSR Petro Services LLC

Lucia Romanello Crater

Impact 21

Gary Dake Stewart’s Shops

Karim Dhukani Easy Lane Stores

Jack Dickinson Dover Corporation

Jim Forsyth FKG Oil Company

Wilson Friend Altria Group Distribution Company

Joe Hamza Nouria Energy Corp.

Scott Hill Jack Link’s Protein Snacks

Lindsey Hjemstad Standard AI

Sonja Yates Hubbard Yates Group Inc.

Akhtar Hussain CHS Inc.

Jen Johnson NACS

Abbey Karel Bounteous

Mike Lindberg CHS Inc.

Bryan Morrow PepsiCo Inc.

Jerry Niblett Perfetti Van Melle USA

Steven O’Toole Stuzo LLC

Nick Paich GSTV Alex Plant Standard AI

Carl Rick Kwik Trip Inc.

Kent Rollins Nashville Wire Products

Ron Rutherford Apter Industries Inc.

Ray Ryan Sheetz Inc.

Brian Sedra Phusion Projects LLC

Stan Storti The Spinx Company Inc.

Linda J. Toth Conexxus

George Ubing E&J Gallo Winery

Elizabeth Waring Johnson & Johnson Inc.

Paula Weeks Coca-Cola Company

Alicia West Altria Group Distribution Company

Angie Westbrock Standard AI

Geoff Wigner Nashville Wire Products

Kathy Williams Coca-Cola Company

Mike Wilson Cubby’s Inc.

Michael Winton Pace-O-Matic

26 APRIL 2023 convenience.org
Contact your GOYA® representative or email salesinfo@goya.com | trade.goya.com Authentic. Refreshing. Delicious. ©2023 Goya Foods, Inc. Learn More! Variety meets the tropics. Offer your shoppers a taste of the tropics on the go. GOYA® Beverages come in exotic, thirst-quenching flavors they’re sure to love!

Name of company: Kenly 95 Petro

Year founded: May 1980 (purchased by Iowa

80 Group in 2004)

# of truckstops: 3

Website: www.kenly95.com

More Than a Truckers’ Paradise

Kenly 95 Petro in Kenly, North Carolina, has the appearance of a small city, with its sprawling complex of buildings and fuel locations designated for truckers and regular cars. When it first opened in May 1980 as Truckland Truckstop, the location included a small store, sit-down restaurant and diesel fuel islands. But that was only the beginning of expansions and name changes before it became the Kenly 95 Petro of today.

“Through the years, we’ve kept growing physically and sales-wise,” said Ernie Brame, general manager with Corbitt Partners LLC, which operates as Kenly 95 Petro.

28 APRIL 2023 convenience.org IDEAS 2 GO
While Kenly 95 Petro caters to professional drivers, the complex has plenty to lure tourists and locals alike.

A GROWING BUSINESS

Within two years of its existence, the company became a franchisee of TravelCenters of America and within a decade, the owners began the first of many expansions and remodels, from adding a convenience store and mechanics shop to revamping the restrooms and shower facilities. Today, the complex is the largest truck stop on the East Coast and has five fast-food restaurants in its food court, plus the full-service Iron Skillet restaurant.

“In the older days, we used to market ourselves as being midway between the apple (New York City) and the orange (Florida),” Brame said. Kenly 95 “tries to give a North Carolina flavor for the car traveler and tourist in our retail operation, along with our extensive gear and accessories for truckers,” he said. For example, the store stocks truck parts and chrome accessories and clothing for truckers and motorcyclists. For tourists, Kenly 95 has North Carolina souvenirs and traveler essentials.

Brame said they are constantly turning over inventory and trying new items. “Sometimes, we have what we think will be a sure fit and it fizzles,” he said. “Then we get some items, like these toy rifles that shoot salt at flies to kill them called Bug-A-Salt, and those sold like hot cakes.”

Another surprising hit was to-go deviled eggs. “I’d noticed deviled eggs were

the first to go at covered-dish church suppers, so thought we should try making them,” Brame said. “We put six half deviled eggs in a grab-and-go container and sold 20 to 30 in a day. Now even Iowa 80 has put the item in their store.”

A NORTH CAROLINA CONNECTION

Kenly 95 plays up its North Carolina pride with its décor. For example, a scaled 65-foot replica of the Cape Hatteras lighthouse (the original is 215 miles to the east) welcomes truckers and tourists, drawing attention to the location. “We have quite a few people each day who stop to snap their photo beside our lighthouse,” Brame said. “It’s helped make Kenly 95 Petro a destination of its own.”

Inside the store, a mural of Interstate 95 from Maine to Florida adorns the trailer of a full-sized semi and highlights Kenly 95’s importance to interstate travelers and truckers. Along I-95, billboards also draw attention to the stop. A recent billboard campaign incorporates the lighthouse replica into the design, with the lighthouse tower going all the way down to the ground and rising above the billboard’s message center. “Adding the lighthouse to our billboards really made them pop, and it’s been a great marketing campaign for us,” he said.

Kenly 95 Petro also has strong ties to the Kenly community. “We are one of the largest businesses in town, and we try to give back as much as we can to the community,” he said. For example, the company hosts the town’s Independence Day fireworks and holds the East Coast Trucker’s Jamboree, a three-day festival celebrating trucking, over Mother’s Day weekend each year.

The company also supports local charities, especially area schools.

“We’re one of the biggest supporters of the high school booster clubs,” Brame said. “It was a natural fit given how many times team members come into our store.”

BRIGHT IDEAS

Ernie Brame, general manager of Kenly 95 Petro in Kenly, North Carolina, said a focus on cleanliness and loyal employees is the secret to success. “I tell our employees: ‘The lighthouse might point the way here, but you’re going to point the way back.’”

The complex employs roughly 250 people, with new employees paired with seasoned workers who know how to tell the stories of Kenly 95. While Kenly does have employee turnover, the management team has longevity on its side, with most managers having clocked 10 to 20 years, and one who has been with Kenly’s since opening day in 1980. Brame himself has been with the company 40 years.

“We also emphasize to our employees to use the tools they were taught growing up—say please, thank you, come see us again—and smile,” he said. “That goes a long way to welcoming people back.”

“We like to consider ourselves a destination stop,” said Brame. “We want people to plan their stop around our location.”

Sarah Hamaker is a freelance writer, NACS Magazine contributor, and romantic suspense author based in Fairfax, Virginia. Visit her online at sarahhamakerfiction.com.

Ideas 2 Go showcases how retailers today are operating the convenience store of tomorrow.

To see videos of the c-stores we profiled in 2022 and earlier, go to www.convenience.org/Ideas2Go

NACS APRIL 2023 29

FINDING THE RIGHT BRAND PARTNER

Choose what fuel to carry wisely because it’s an ongoing partnership.

IF AN OPERATOR IS LOOKING TO SWITCH FUEL PARTNERS OR IS CONSIDERING GOING FROM UNBRANDED FUELS TO BRANDED FUELS, WHAT ARE SOME OF THE MOST IMPORTANT THINGS TO CONSIDER?

The power of a brand plays a large role in your consumer’s willingness to consider you. Trust, perceived higher-quality fuel and the drive for higher-margin premium fuel sales are all key considerations for operators. Brands can bring with them established programs such as loyalty, private-label credit cards and other gallon-driving partnerships, such as grocery loyalty or other exclusive relationships. Marketing support from the brand, inclusive of national partnerships and sponsorships, is also a differentiator for a station owner’s customers. Value-added programs such as Sunoco’s industry-leading dispenser equipment discount program provide significant savings to station owners and imaging programs also offer business benefits: Sunoco’s centennial program drives more than 10% gallon growth when a site rebrands.

FLEXIBILITY IS A KEY PART OF THE VALUE PROPOSITION ANY PARTNER PROVIDES, BUT WHAT DOES THAT MEAN IN PRACTICE?

Flexibility means finding ways to meet your customers where they’re at today and to give them what they need to continue to be successful in the future. Sunoco recognizes every business is unique and has its own criteria for success. Our flexible financing options are unique in our industry: We’re able to provide capital up front if that is what a customer needs and update term options and pricing when those situations arise. Having a flexible approach means more than offering a range of financing options; it speaks to a brand’s commitment to its partners in communication and customer support, too. One of Sunoco’s biggest differentiators is accessibility. Sunoco’s customers can pick up the phone and call anyone within their account team organization, including our leadership.

Flexibility isn’t just about the deal, but about how you manage the relationship moving forward and meeting station owners where their needs are.

AFTER A PARTNERSHIP AGREEMENT IS SIGNED, WHAT ARE SOME ONGOING WAYS A PARTNER CAN HELP AN OPERATOR?

One of the first things our new station customers read in their onboarding kits is: “Your success drives ours,” because Sunoco is successful when our stations are successful.

This involves supporting operators with programs and partnerships driving business to their station(s), including generating demand through digital avenues (e.g.: location-based Google ads), regional/national advertising and more. Our

Sunoco Go Rewards app helps station owners generate demand by offering discounts on fuel. As a company, we invest in consumer research to fuel innovative solutions and programs. The Sunoco mystery shop program helps operators gauge how their stations appeal to consumers and details what can be done to create the safest, most approachable station possible. And the brand provides ongoing quarterly point-of-purchase (POP) promotions to continue to promote the brand and a station owner’s business.

WHAT IS SUNOCO’S VALUE PROPOSITION WITHIN THE REALM OF FUELS?

Sunoco’s value proposition is first and foremost about the fuel quality itself. High-quality fuel is a top consideration driver for consumers—behind only price and convenience. Sunoco Ultratech is a top-tier certified fuel proven to make your engine run cleaner and last longer. This is evidenced by Sunoco’s 20 years as the exclusive fuel provider of NASCAR, where we’ve done 20 million miles across three different fuel blends, and we’ve never had a defect. It’s a testament to the quality of our fuel and the excellence of our operations team. We fuel every race, every driver, flawlessly every time. Sunoco puts the same focus and care into the fuel at its stations as it does for the fuel that powers the fastest racing machines around the world. And as the largest fuel distributors in the country, Sunoco’s reliability as a fuel supplier is something our operators appreciate.

SUNOCO REVAMPED ITS FUEL BRAND IMAGE. WHAT WAS THE MOTIVATION FOR THAT, AND WHAT ARE THE RESULTS?

In our consumer research, consumers’ perception of station safety showed to be a significant determining factor when they selected where to refuel. When updating our fuel brand image, we focused on making safety a priority by adding additional lighting, as well as making LED mandatory at every station. The result is a modern, clean and simpler design for the next generation of Sunoco consumers. We leveraged our heritage to bring back the iconic Sunoco diamond to the canopy and our dispenser valences. We place an emphasis on our product quality with Sunoco Ultratech as well as being the official fuel of NASCAR. We introduced a new POP element dedicated to communicating the benefits and quality of Sunoco Ultratech fuel. These culminate in a big impact for our operators: We see more than 10% gallon growth at the stations that receive the new image.

NACS APRIL 2023 31
This article is brought to you by Sunoco LP, a NACS member. Fred McConnell, Director of Brand and Fuels Marketing at Sunoco LP www.sunocolp.com

Selling

Bad

Mood Fuel to People in a

There are opportunities to set yourself apart and create a connection with your customers—even if they’re grumpy.

There is a lot of angst out there. And there is a lot of pessimism. You’ve probably seen it in your community, in your stores and even with your family. And let’s not even get started on how that manifests itself on social media.

We have the numbers that back up what you are seeing—or feeling.

Seven in 10 gas customers (70%) say the country is heading down the wrong track, a big jump from the 63% who said so a year ago. Two thirds of consumers (66%) are pessimistic about the economy. Even more worrisome, half of all Americans (50%) now think that things in their own area are headed down the wrong track, a three-point uptick from a year ago. In

The

United States

2023 2022 In

other words, the problems aren’t just happening to “those folks” in a different state or region. What’s causing this crisis in confidence?

32 APRIL 2023 convenience.org
the right direction
For one, the aftereffects of the pandemic remain top of mind. Most consumers say that life hasn’t returned to normal—and 1 in 5 say their life will never return to the way it was prior to COVID-19. the wrong track 70% 63%
is headed …
30% 37% Down
NACS APRIL 2023 33

About the 2023 Survey

NACS has conducted national consumer sentiment surveys since 2007, with a specific focus on fueling issues. (In 2021, questions were specific to COVID-19 and so are not included when looking at multiyear trends.) The 2023 NACS Consumer Fuels Survey was conducted by national public opinion research firm Bold Decision (bold-decision.com). A total of N=1,200 U.S. consumers, including N=1,048 who say they drive and fill up at least monthly, were surveyed from February 17-26, 2023. The margin for error for the study is +/2.83 at the 95% confidence level. When referring to survey respondents, we interchange “drivers,” “consumers,” “Americans,” etc.— they all refer to people who buy fuel at least once a month, unless otherwise indicated.

Would you say your day-to-day life has “gone back to normal,” in other words, the way it was before the pandemic?

46% Yes

54% No or don’t know (combined)

20% No, and it never will

31% No, but I think it will eventually

3% Don’t know

Crime also is a big concern. Overall, nearly half of all drivers (46%) say crime has increased, compared to only 1 in 8 (13%) who say crime has decreased.

Crime in my community has …

17% Increased a lot

29% Increased some

41% Stayed about the same

8% Decreased some

5% Decreased a lot

Another point of concern: The gas prices at your stores. Consumer sentiment on the economy is heavily influenced by the price of gas, and 90% of drivers say that gas prices have a “great impact” or “some impact” on their feelings about the economy. What’s more, 83% of all drivers are very or somewhat concerned that gas prices in their area will top $5 a gallon again this year.

Summing things up, consumers are already in a bad mood, and they expect that things will get worse because of the price of a product central to your business.

Don’t be thoroughly depressed though, because there also is good news. There are plenty of opportunities for you to help turn your customers’ frowns upside down—if you appeal to how they are thinking and what they want.

34 APRIL 2023 convenience.org

THEY LIKE CONVENIENCE

People like what you sell: convenience. The 1.5% increase in the convenience store count for 2023 was impressive given all the economic headwinds of the past year. And the 150,174 convenience stores in the country is a staggering number. Let’s put that into context. It’s about the same as adding all the country’s grocery stores (45,380), drugstores (40,008) and dollar stores (37,067 stores), and then throwing in all of the country’s Starbucks (about 16,000 stores) and McDonald’s (about 13,000 stores).

They also like how you sell convenience. Their last experience at a convenience store was excellent or good, say 85% of consumers. Just 2% of the people surveyed rated their most recent experience as poor.

This is especially astonishing considering how many customers shop in convenience stores every day. Convenience stores conduct an estimated 160 million customer transactions a day, meaning that convenience stores serve about half the U.S. population on any given day. Let’s put that another way. It’s very likely that more people went to a convenience store on Super Bowl Sunday than watched the “Big Game,” which had 113 million viewers.

How would you rate your last experience at a convenience store?

More impressive, customers say they like their customer experience in convenience stores more than in other retail channels: 33% say it’s a better customer experience, compared with 10% who say it’s worse.

How would you rate your convenience store experience compared to other retail locations (like grocery stores)?

It’s not easy to serve millions of people every day—especially in a labor crunch. But customers do value the customer experience our stores provide—and the personal connection. The majority still prefer to check out the “traditional” way—interacting with your teams at the register—although there are some variations by age. Customers under age 35 are almost twice as likely to want to use self-checkout machines (44% vs. 25%).

If both options were available, which do you prefer?

NACS APRIL 2023 35
Total Under age 35 Age 65+ Interact with a live cashier 50% 48% 52% Use self-checkout 36% 44% 25% No preference 14% 8% 23% Poor 2% 13% Fair 57% Good 28% Excellent 54% About the same 33% Better customer experience 10% Worse customer experience 3% Not sure

It’s critical to get drivers to the forecourt because a record percentage of drivers (59%) say that they go inside the store after they fill up.

The last time you purchased gas, did you go inside the store?

(drivers answering “yes”)

GETTING THEM TO SHOP WITH YOU

Here’s where things get trickier. People love convenience, but they aren’t necessarily in the best mood as they determine where to shop. How do you tell them why they should shop with you?

First, fueling is not inherently fun for most drivers. By a 3:1 margin, most view it is as a chore rather than something they enjoy. So how do you make it something they enjoy? Make them enjoy their in-store experience.

Which is closer to your view?

Before we get to what drivers do when they come inside the store, let’s look at what they are looking for—and at. It’s clear the basics are more important than ever—safety and cleanliness, especially among women. Those under age 35 overindex most on wanting a speedy experience and knowing how you serve the community.

How important are the following when it comes to choosing to shop at a specific c-store?

(multiple selections permitted; top seven responses listed.)

% who said “very important” Overall Women Ages 18-34

The price of fuel remains the top reason they pick a specific location to fill up—and the importance of price as the leading factor has greatly increased over the past several years.

Interestingly, “cares about the community” (29%) scored twice as high as “donates to/supports charitable causes (14%),” indicating that consumers want to hear not just what you do for the community, they want to hear why. And that’s a huge opportunity to tell your story.

36 APRIL 2023 convenience.org
Safety 65% 73% 61% Cleanliness 63% 69% 57% In and out quickly 51% 50% 54% Availability of the products 47% 47% 48% Friendly employees 45% 46% 44% Quality of food/meals 32% 36% 34% Cares about the community 29% 29% 33%
2023 2022 2021 2020 59% 72% 19% 9% 58% 52% 44% Fueling my vehicle is a chore I enjoy fueling my vehicle Not sure
when buying gas? 2023 2022 2020 2019 Price 68% 69% 58% 59% Location 21% 22% 19% 23% Brand 12% 10% 11% 10%
Which of these factors is most important
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Another opportunity is the return of the commuter. While most people say life hasn’t returned to what it was like before the pandemic, some things are moving closer to what life was like in early 2020. Fully three-quarters of all full- or part-time workers (77%) now commute at least a few times a week. And more than half (57%) say they commute every day.

Work/commute habits

57% Commute every day

20% Commute a few days a week

16% Commute less than once a week

17% Exclusively work at home

And with commuting returning, so is rush hour and the rush-hour customer. After sliding during the pandemic, morning fill-ups have returned, up 3 points from just a year ago and tied for the highest percentage since we tracked this metric.

With the morning fill-up returning and customers wanting to kick-start their day, that’s a perfect opportunity to grow coffee or energy drink sales. And the numbers show that drinks are the most common item purchased.

What did you do the last time you went in the store? (multiple responses permitted; top 10 responses listed)

46% Paid for gas at the register (+1% over 2022)

43% Bought a drink (fountain or packaged)

32% Bought a snack (-3%)

28% Bought cigarettes/ vaping product

When

22% Used the bathroom (-2%)

21% Bought lottery tickets

16% Used the ATM (-1%)

14% Bought beer/wine

13% Bought a sandwich/meal (+1%)

38 APRIL 2023 convenience.org
10% Bought gum/mints do you buy gas? 24% Morning (6-10 a.m.) 36% Midday (10 a.m.-3 p.m.) 32% Afternoon (3-7 p.m.) 7% Night (7 p.m.-12 a.m.) 2% Overnight (12-7 a.m.)

NACS has online fuels-related resources that communicate the industry’s voice to consumers and to the media.

Convenience Corner (convenience.org/media/conveniencecorner)

Our blog attracts hundreds of thousands of readers. Some popular, recent fuel-related articles include:

• Does the President Control Gas Prices?

• Who’s Responsible for Debit Holds?

• Is Gas Tax Relief a Good Idea?

• Do Oil Companies Make Money on High Gas Prices?

• Do Gas Prices Come Down Slower Than They Rise?

Got a question that you want us to answer? Send a note to Jeff Lenard at jlenard@convenience.org

Fuels Resource Center (www.convenience.org/fuels)

The online Fuels Resource Center shares consumer-friendly content related to gas prices, retail operations and consumer behavior, as well as fun pieces on 9/10 cent pricing and the evolution of self-serve fueling.

Fuels Market News (www.fuelsmarketnews.com)

Published by NACS, FMN is the downstream petroleum industry’s trusted source for fuels-related news and information, covering the fuels of today and tomorrow.

SO WHAT … AND WHAT’S NEXT?

While the national average gas price dropped below $3.50 per gallon in mid-February 2023, the shock of record prices in June 2022 is still on drivers’ minds.

Nearly half (46%) of drivers say they are “very concerned” about gas prices hitting $5 a gallon in their area this summer, though only a quarter (25%) think that $5 gas seems “very likely” in their area. But here is the bigger question: What price does gas have to reach before they say they will drive less?

The answer: $4.51.

Will gas prices reach $4.51 and would it affect demand? Behavioral economists can debate the second part of that question all

I would be sad or disappointed if the convenience store closest to my home were to permanently close or go out of business.

78% agree

80% agree

day. The bigger question is why people drive and how much they could cut back. After all, most people don’t hit the road because they like driving; it’s because they have an obligation (work, errands, etc.) that requires them to drive.

How do you get more drivers to your store to purchase gas and in-store items? The survey responses indicate that consumers crave a sense of normalcy. They want things to feel like they remember them—even if their memory paints an overly positive picture of the past. They also want the basics associated with Maslow’s hierarchy: Safety, security, cleanliness and full shelves are paramount. And they also want to hear your story. They want to know what matters to you because they do believe that convenience stores matter—and that convenience stores are an integral part of their communities and daily existence.

Jeff Lenard is NACS vice president, strategic industry initiatives. You can reach him at jlenard@convenience.org.

40 APRIL 2023 convenience.org
The convenience store closest to my home is an important part of my community.
42 APRIL 2023 convenience.org Rebranding can revitalize your business
Images
Klaus Vedfelt/Getty

In2020,

Kwik Chek began its transformation to TXB, or Texas Born. “I didn’t think our old brand was current—it didn’t feel authentic to who I was,” said Kevin Smartt, CEO of TXB, in a 2022 interview with NACS. “I wanted to have a name and concept that I thought really resonated with our customers, with our employees and with myself.” The new brand reflected TXB’s new emphasis on serving fresh food and connected more with the customers of today.

NACS APRIL 2023 43
—if it’s done right.

The decision to rebrand is one that retailers should not take lightly, but for those whose offerings have evolved in recent years, a rebrand can be a way to let customers know what to expect now and in the future.

REBRAND REQUIRED?

Not all brands need to refresh right now, but brand evolution is mandatory. “A brand is not stagnant,” said Keith Broviak, chief marketing officer for Coen Markets Inc., during the “Build a Better Brand” educational session at the 2022 NACS Show. “It’s always growing … and you need to make sure your brand and your logo are [evolving, too].”

At Coen Markets, the impetus to rebrand came about because of customer confusion. “We had a collage of stores—four convenience store brands and four fuel brands,” said Broviak. “Our goal was to figure out how to take all these fuel and convenience store brands and make them into one brand.”

How to Rebranding Missteps

How can retailers go wrong when launching a new or revised brand? By ignoring the importance of incorporating a strong foodservice offering. “For c-stores, growth of their on-site foodservice revenue and profit continues to be a focus area,” said Paul Stippich, director of marketing for Otis Spunkmeyer. “One-stop shopping drives consumers when choosing c-store foodservice over restaurants,” so having foodservice be a large part of the rebrand is essential to success. Here are three other ways retailers could mess up a rebrand:

• By ignoring customer feedback, which is crucial in determining what changes a brand needs to make.

• By overcomplicating the brand because a complex brand can be difficult for customers to understand. This can result in a lack of brand recognition.

• By losing the brand’s core identity, which can confuse customers and lead to a decrease in brand loyalty.

Coen Markets had these three things in mind when rebranding itself. “We wanted to come out with one brand and one voice … in a cohesive manner,” said Keith Broviak, chief marketing officer for Coen Markets, during the “Build a Better Brand” educational session at the 2022 NACS Show. “We have 57 stores and wanted all remodels to look the same with branding elements tying them together.”

44 APRIL 2023 convenience.org
How do we create the brand and the representation and the feeling we want our customers to have when they come onto the parking lot?”
Klaus Vedfelt/Getty Images

Convenience Retailer of the Year

Asia-Pacific

Presented to Jiangxi Ledoujia

Sponsored by

Convenience Industry Leader of the Year

Asia-Pacific

Presented to Lei Zhu PETRO CHINA USMILE CO., LTD.

Sponsored by

Convenience Retail Technology Award

Asia-Pacific

Presented to FamilyMart Co., Ltd.

Sponsored by

Convenience Retail Sustainability Award

Asia-Pacific

Presented to Central Food Retail Company Limited

Sponsored by

Congratulations
2023 winners! convenience.org/csa
to the
The NACS Convenience Retail Awards Asia-Pacific are made possible by the generous support of our sponsors.

Here are four other factors that might motivate a convenience retailer to kick off a rebrand.

Declining sales or customer engagement

If your store isn’t seeing the same numbers in terms of sales and/or traffic, it might be because customers don’t consider your store relevant to them.

Outdated brand image. What worked 10, 20 or even 30 years ago as your logo and brand messaging might not speak to today’s consumer. For example, MAPCO has begun working to bring its brand into the future, starting in 2021 with a rebuilt flagship location in Nashville, Tennessee. The Store of the Future concept is how the more than 300-unit chain is reimaging convenience to bring in younger consumers while keeping its current clientele engaged.

Lack of differentiation . One of the keys to success in a crowded marketplace is to highlight how a store is different from the competition. With the saturation of the convenience store market, it’s crucial for retailers to differentiate themselves from the competition. A rebrand can help achieve this.

For TXB, the rebranding effort started with thinking about where the industry was and where the company needed to go. That launched conversations about how to highlight to customers what made TXB different. Smartt decided to focus on one word: authenticity. “For us, being authentic to our customers, to ourselves. It’s operating with integrity and it’s greeting everybody with hospitality,” Smartt said.

The company asked questions about the future of its stores, such as:

• How do we continue to evolve our food menu?

• How do we add more convenience items for the customer?

• How do we add more value for our customers?

Then they used the answers to craft TXB.

A new shopping experience. C-stores are evolving, offering more fresh food and a new customer experience. A rebrand can both create more evolution and alert customers that changes have already occurred. For MAPCO, a major part of the brand renovation was to add touchscreen fountain machines, new food displays, hot and cold grab-and-go options, gondolas with popular snacks and a beer cave to

46 APRIL 2023 convenience.org Klaus Vedfelt/Getty Images
The competitive nature of the industry means retailers must ensure each customer engagement maximizes both experience and profit opportunity.”
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create a better customer experience. “Many convenience brands are completely revamping their shopper experience to offer the best of both convenience and QSR worlds,” said Paul Stippich, director of marketing for Otis Spunkmeyer.

SUCCESSFUL REBRANDING

Revamping your brand involves more than picking a new logo or colors. The retailer should have a clear purpose for the rebrand. This will help customers understand why changes are being made and can increase customer engagement.

Retailers should also ensure the brand is aligned with customer needs. To do that, the branding should be done with the customer experience in mind. “We want TXB to be a lifestyle brand,” Smartt said. “We want it to be a consumer experience. … When you walk in the door, just from the look, the products, the music, the screens, the whole ambiance—I think people feel good.”

Maintaining brand consistency is also key to a successful rebranding. This extends across all brand touchpoints—signage, packaging, website, forecourt, pumps and store. MAPCO’s Store of the Future design includes an updated interior with modern, large-scale tiles and custom tile backsplashes, and bright, welcoming messaging throughout the store.

“Our new slate of modernized stores are just the latest examples of how we go above and beyond to deliver the best customer experience,” said Frederic Chaveyriat, CEO of MAPCO, in a 2022 press release.

The cornerstone of any brand is its logo. Coen Markets created a logo with clean lines and visual interest that would work in large or small formats and in black and white and full color, too. “Your logo is the foundation of your visual identity,” said Dave Bray, agency designer and art director for the Three Sixty Group, which designed the Coen Markets rebranding materials. “The main logo must also

work on the sub-brands, such as rewards and loyalty, food, coffee and payment programs.”

The TXB brand begins outside the store and flows inside. “How do we create the brand and the representation and the feeling we want our customers to have when they come onto the parking lot?” asked Smartt. That same question applies to the store itself. “The first thing you see [when you walk in] is our brand wall [with] our high-quality TXB items. ... You get that instant connection” to the TXB brand, he said.

“We aspire to be a lifestyle brand that just happens to sell convenience store items, as well as food and apparel and some of the things you might not think of in a traditional convenience store,” said Benjamin Hoffmeyer, TXB vice president of marketing and merchandising, in a 2022 NACS interview. “Convenience is evolving quickly, and it means different things to [different] folks.”

A REFRESHED FUTURE

Rebranding can be a powerful tool for convenience stores looking to remain relevant and appealing to consumers. Retailers who keep in mind the signs that indicate a rebrand is necessary, avoid the potential pitfalls of relaunching a rebrand and pay attention to the top things to consider when rebranding can successfully launch their rebrand and remain at the forefront of the industry.

Done right, a rebrand can give retailers a new way to reconnect with current customers while also bringing in new ones. “The competitive nature of the industry means retailers must ensure each customer engagement maximizes both experience and profit opportunity,” said Stippich. “Convenience retail leaders are successfully combining core shopping needs with QSR-quality food into a single stop and under a cohesive and easily recognizable brand.”

48 APRIL 2023 convenience.org Klaus Vedfelt/Getty Images Sarah Hamaker is a freelance writer, NACS Magazine contributor, and romantic suspense author based in Fairfax, Virginia. Visit her online at sarahhamakerfiction.com.

PERMITTING

50 APRIL 2023 convenience.org yewkeo/Getty Images. T.Dallas/Shutterstock

PITFALLS

trying to drop in multiple stores in a certain time frame.” Smartt’s preference, whenever possible, is to request approval for both the building site and the building plan simultaneously. “If we can get those both approved at the same time, it goes a lot quicker and tends to be smoother.” That said, surprises do arise.

NACS APRIL 2023 51

During the process of opening a new store in one suburban location, TXB created a custom steel structure that Smartt described as a piece of art. “We had an ironsmith design and build it. It was 8-feet tall and said ‘welcome.’ We thought it was a nice addition and something any town would be proud to have,” he said. Unfortunately, the city deemed it a building sign, meaning it was subject to that set of restrictions, even though the sign did not advertise the store. The city’s decision meant another three months added to the opening date to go through an extra permit application process. In the end TXB opted to take down the sign to avoid holding up the store opening. “Little battles come up all the time when trying to do creative things outside the box,” Smartt said.

In addition to making necessary adjustments per city regulations and working through those elements, often retailers also incorporate their own changes and improvements as they continue to build new stores. For Smartt, there is always room for improvement with every new store. TXB established an ongoing review process with that in mind. At the end of the construction cycle for every new build, the project team discusses what it may want to tweak as it looks to the next build. “We go back through the store with our architect, operations team and project management team to pinpoint what still needs to be tweaked,” Smartt said. “We continually try and make the prototype better.”

It can prove a frustrating process, Smartt admitted. “When we are building out new stores, I keep the frame of mind that no design is going to be perfect,” he said. “Even for us, building multiple stores, it’s not perfect.”

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the project team gathers to discuss what they may want to tweak as it looks to the next new build.
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ESCAPING LIMBO LAND

Babir Sultan, president of FavTrip, was in opening-day limbo for months. He had planned to open the doors of the first ground-up FavTrip store in December, but the location had a few setbacks that are likely relatable to anyone who’s opened a new store.

“It’s been interesting,” Sultan said of the permitting, zoning and overall approval process. After finally receiving the letter of occupancy at the end of January, which he thought was the final phase, he learned he needed another formal approval to sell gasoline. “We are planning a soft opening to work out the kinks and then a grand opening sometime in February,” he said. The new c-store opened February 16.

When opening day arrived, this FavTrip store in Grandview, Missouri, marked a full-circle journey for Sultan, who recalls

working as a c-store cashier in the city 16 years ago. “It has been on my bucket list to build a store,” he said. “This checks that off.”

FavTrip’s store count is three. His advice to other small chain owners is to study location data. “A lot of people say location data is only available to the big brands,” he said. “Even though we are small, we found a way.”

GETTING CREATIVE

Sultan’s entrepreneurial spirit and ability to network with industry peers paved the way to a solution. While larger brands might have their own in-house team to navigate site selection, Sultan found a different resource. A program at the University of Iowa gives students a business problem to solve each semester, so Sultan nominated his challenge of finding a spot. “The Kansas City area is saturated, and a lot of the bigger brands already have the best lots. You have to really depend on data if it’s not going to be a corner lot,” he said.

The 26 Iowa students were divided into eight groups; each group tackled a different issue related to picking a site and presented their findings. Traffic count and sales potential were among the factors that the students investigated. In the end, Babir chose one of the site recommendations. From there, he credits Paragon Solutions with designing what he deems FavTrip’s flagship store.

The new development totals 9,000 square feet: The FavTrip store totals 4,000 square feet, with the remainder of the facility built out for two tenant spaces. The c-store space is more than double the 1,500-square-feet average of the other FavTrip stores. The

54 APRIL 2023 convenience.org
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Little battles come up all the time when trying to do creative things outside the box.”

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While the local approval process is unique to each community, theremon themes that ring true everywhere, including concerns from those living nearby. Retailers should prepare to address the issues at open-to-the-community meetings. That includes understanding the audience that generally attends those sessions, advised Jeff Lenard, vice president, strategic industry initiatives for NACS. “The people that show up at local meetings are usually not the core convenience store user,” he said, adding that, in general, those who show up at local hearings skew older. Often the biggest concern is fear that property values will decrease.

“Objections to convenience store developments still exist,” Lenard said. “It’s unlikely that they will fade away. One of the best things retailers can do is prepare for the process of getting the necessary approvals.” Start by thinking through the many ways the proposed project will benefit the local community, he said, such as adding jobs and contributing to taxes. “Share the positive narrative,” he said.

The NACS Site Approval Toolkit offers retailers a guide to navigating the approval process. Here are a handful of proven tactics to keep the process running smoothly:

1. Start a two-way conversation. Before aggressively selling your project to the community, take the time to understand the community and what will be required to gain the approvals you need. It helps to create connections with decision-makers.

2. Plan talking points. Explain your company’s values and how a similar project benefited another community. Was there a positive impact on the local economy? What local groups were supported (food banks, sports teams, etc.)? What do you expect to contribute in terms of sales tax? Focus on building a positive narrative around the project.

3. Understand the community’s growth plan. Often, local governing bodies outline their vision for growth and development. Align your project with that vision.

4.Recognize that project approval is not the end game. Once a project is approved, the real journey begins. Your focus shifts to ensuring both the success of that specific store and future site approvals. Start by communicating your appreciation. Continue to update the community on progress as you get closer to the store’s opening date. Also, take the time to record lessons learned in the process. What worked? What didn’t? Apply these lessons the next time around.

extra square footage accommodates a foodservice program.

“I think it’s always going to be a little bit of a leap of faith,” Babir said about new store development. “There is only so much research you can do. I’ve always been of the mindset of getting 100% information on everything, which admittedly can hold me back a little timewise. At some point you have to go with your gut and resist the mindset of needing more and more information.”

On his list of key learnings: Order what you can ahead of time, which he noted are items that are 100% for sure, such as underground storage tanks and gasoline pumps. Do not, however, pre-order everything, he advised. He found some things might change during the process—for example, a change order with the city might result in a different foodservice equipment spec or impact the size of the cooler set.

Also, know that ensuring that the site is zoned properly can save months on the project, Sultan advised. “It was definitely an experience,” he said, adding that he may or may not build more new stores. For now, he anticipates that the success of the new store may far outweigh the headaches involved in getting to opening day.

Renee Pas ’ writing draws from both her c-store background and her more than 20 years writing about various retail channels. She can be reached at reneepas4@gmail.com

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I think it’s always going to be a little bit of a leap of faith.”
yewkeo/Getty Images. T.Dallas/Shutterstock
B . Email sales@buzzballz com to learn more ©2023 BuzzBallz, LLC Carrollton, TX Please Enjoy Responsibly ©2023 Southern Champion, Carrollton, TX Please Enjoy Responsibly

Power

Breakfast 58 APRIL 2023 convenience.org
Breakfast NACS APRIL 2023 59 Capitalize on the most important meal of the day.

Inspired by a move from a leading QSR chain, The PRIDE Stores’ Urban Counter concept in Illinois began offering all-day breakfast several years ago and hasn’t looked back. Sister concept Taco Urbano launched its own all-day breakfast last year, in part because of the popularity of items like its breakfast burrito. According to The PRIDE Stores owner and CEO Mario Spina, despite the setbacks of the pandemic and the work-from-home trend in recent years, not to mention increased investment from fast-food operators into the daypart, “Our breakfast business is strong and consistent.”

The PRIDE Stores isn’t the only convenience retailer to respond in earnest to moves like Wendy’s breakfast menu and McDonald’s allday breakfast. (McDonald’s all-day breakfast offer, launched in 2015, was discontinued in 2020.) Rather than giving up share to the fastfood giants, many c-stores have fought back with innovation of their own. “Our industry

owns breakfast,” remarked Alex Williams, COO of Oklahoma-based Jiffy Trip. “Some QSRs have been late to the game. In this business, if you own breakfast, you own the day.”

Jiffy Trip last year unveiled JT’s Comfort Kitchen in Enid, Oklahoma. The foodservice concept offers freshly prepared, crew-served breakfast items, with the mission of “getting customers in and out in less than 60 seconds,” said Williams, noting that early customer response has been positive.

Urban Counter’s foray into all-day breakfast followed high demand for the concept’s breakfast burrito—made with fried eggs, bacon, jalapeño spread, cheddar cheese, french fries and black beans—Spina noted. “People wanted it outside of the breakfast time frame,” he said, “and with operators like McDonald’s going toward all-day breakfast, we decided to give it a try.”

In fact, Spina says that the expansion of fast-food players into the breakfast daypart has aided breakfast at his stores, not hindered it. “Customers are finding that our breakfast menu is affordable, made to order and of superior quality,” Spina explained. “I don’t mind that QSRs are pushing breakfast,” he added, as it helps raise awareness of the breakfast options that consumers have.

RECOVERY UNDERWAY

To be sure, the COVID-19 pandemic negatively impacted breakfast visits at c-stores, particularly at the height of lockdown. “The pandemic prompted an incredible shift in breakfast habits in c-stores,” said Peter Rasmussen, CEO & founder of Convenience & Energy Advisors. “Working from home,” he said, “led to a giant drop in breakfast traffic.” But Rasmussen and others noted that since worries about contracting COVID-19 have eased, the breakfast daypart has improved.

“We see more and more traffic coming back to the c-store space as people get back on the road for work, school, vacations and more,” remarked Karlee Hancock, convenience channel and customer insights manager at Tyson Foodservice. She cited December 2022 data from NPD CREST that pointed to a 2.8% increase in morning meal traffic in the channel over the previous 12 months. Still, Hancock added, “We’ve yet to recover to pre-pandemic levels. There’s still a lot of opportunity for future growth.”

TheCrimsonMonkey/Getty Images
60 APRIL 2023 convenience.org
Bundling breakfast items with a cup of coffee … has proven time and time again to increase sales.”

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Some convenience retailers report a return to business as usual for breakfast—and then some. Rick Rubino, co-owner of the three-unit Filling Co. Gas & Grub chain in Virginia, said work-from-home schedules have benefited his morning business. “Consumers are less apprehensive about placing to-go orders through Grubhub when they work at home than when they are at the office,” he explained. “Work from home has helped our online business.” At Rutter’s, meanwhile, Chad White, foodservice category manager, remarked that while the chain’s breakfast business was affected at the height of the pandemic, “Now that customers are mostly back to their normal routines, we’ve seen things bounce back and even surpass pre-pandemic sales.”

In recent months, though, inflation has been a concern for operators. Both Spina and Williams reported that they have had to raise the prices of breakfast items in the past year. With price hikes impacting virtually all commodities these days, promotional marketing has never been more important. “Shoppers across all channels are looking for deals on their purchases right now, and shopping in a c-store is no different,” commented Ben Boyd,

vice president of convenience and deli at Tyson. “Shoppers want to find pricing deals, BOGOs, combo meals and more. Bundling breakfast items with a cup of coffee or creating a combo meal might not be the most creative value offering, but it’s one that has proven time and time again to increase sales in the breakfast daypart.”

The PRIDE Stores offers a free cup of coffee with the purchase of a breakfast sandwich and $10 of gas at the pump, as well as coupons for discounts on breakfast items. In an innovative partnership with the Chicago Blackhawks, the Windy City-area stores offer a percentage discount off breakfast sandwiches based on the jersey number of the team’s highest scorer for the week. At JT’s Country Kitchen, free samples are given away of various breakfast items during 30-minute windows.

CUSTOMIZATION COUNTS

Made-to-order breakfast options and customization have helped c-stores stand apart from their QSR competitors. “While McDonald’s may offer breakfast burritos, they can’t customize the way we can,” said Rubino of the Filling Co., which has offered all-day breakfast since it was founded three years ago. Customers pick from myriad

62 APRIL 2023 convenience.org
Some QSRs have been late to the game. In this business, if you own breakfast, you own the day.”
Jiffy Trip last year unveiled JT’s Comfort Kitchen in Enid, Oklahoma. The foodservice concept offers freshly prepared, crew-served breakfast items, with the mission of serving customers in under a minute.
©2023 Johnsonville, LLC • *Technomic Roller Grill Consumer Study, August 2020 • **IRI 1/2/22 THE TOTAL ROLLER GRILL PACKAGE

options for breakfast bowls, sandwiches and burritos. “The sky’s the limit,” Rubino said. At JT’s Comfort Kitchen, customers can choose from an array of breakfast items, including eggs, sausage, bacon and biscuits—all prepared on-site—and then packaged in a hinged foam container for consumption on-premise or off. Rutter’s, meanwhile, has provided a buildyour-own breakfast option for decades, even prior to the installation of ordering kiosks. “Customers love the ability to customize and build what they want, and we love offering them a large breadth of options,” White said.

The Pennsylvania-based retailer also has offered all-day breakfast for years, long before QSR operators got into the game. And thanks to the stores’ 24/7 model, Rutter’s has the edge

over the fast-food chains, he noted. While both Rubino and Spina concede that all-day breakfast can sometimes interfere with lunchtime foodservice, they say the challenges are worth it. “It’s been very positive for us,” Rubino said, “especially late at night.”

IT’S A HANDFUL

Not surprisingly, hand-held breakfast items are among the most popular at c-stores. Boyd pointed to NPD CREST data that shows breakfast-sandwich servings increased 9% in 2022 compared with 2019, representing the No. 1 prepared breakfast food (excluding doughnuts) in c-stores. Among Tyson Foodservice’s products are breakfast sandwiches from its Jimmy Dean, Tyson, Pierre and BIG AZ brands, as well as a recently launched chicken-and-waffle breakfast sandwich.

Other popular hand-held items include breakfast tacos and burritos (Williams described Jiffy Trip’s breakfast burrito as “large enough for two”). Breakfast pizza is on the menu, too. For more than two decades, the Iowa-based Casey’s chain has marketed a breakfast pizza topped with eggs and cheese, plus bacon, sausage and veggies as options.

Choices for health-minded consumers also abound. Williams pointed to Jiffy Trip’s breakfast keto bowl, featuring eggs, bacon and sausage, cooked on a flat grill. Urban Counter, meanwhile, offers avocado toast, turkey bacon, fruit cups and yogurt parfaits. “As c-stores work toward a more health-conscious focus, there’s endless potential for breakfast in our stores,” said Williams. “If it’s fresh and healthy, consumers will give us a shot.”

White and Spina agree. White of Rutter’s said that because consumers’ needs and tastes frequently change, it’s important for retailers to research trends. “Breakfast is a huge opportunity,” added Spina. “It can build awareness among customers about other store items. They can come in for their grab-and-go breakfast, fill up, and decide to come back for lunch.” And while in the store, it’s likely they’ll add impulse items to their orders, the retailer continued, “further building the basket.”

Terri Allan is a New Jerseybased freelance writer. She can be reached at terri4beer@aol.com and on Twitter at @terriallan.

64 APRIL 2023 convenience.org
[Breakfast] can build awareness among customers about other store items. They can come in for their grab-and-go breakfast, fill up, and decide to come back for lunch.”
Urban Counter’s foray into all-day breakfast followed high demand for the concept’s breakfast burrito— made with fried eggs, bacon, jalapeño spread, cheddar cheese, french fries and black beans.

THRIVING

IN AN ONLINE W RLD

How do customers find you?

Increasingly, it’s through online searches, which means convenience stores that don’t have a robust online presence or aren’t ranking when their customers search for important key words are missing out on increased traffic and sales. In fact, they are essentially driving customers to a competitor. “Our industry hasn’t been managing visibility very well,” said Lori Stillman, NACS vice president of research and education. “Today, people aren’t searching for places—they’re searching for things.”

nience, and they use their smartphones and digital devices to discover what’s out there,” she said. Without a digital strategy, “You are missing the opportunity to grow trips and to grow baskets.”

To find out how consumer searches intersect with what convenience stores offer, Stillman conducted an informal survey. From inside c-stores or while in the parking lot, she voice-searched for products and services like coffee, beer, cigars and ATMs. Search results failed to direct her to the very stores she was near or inside, even though those retailers carried what she was looking for. “Online is how customers define conve-

With many convenience retailers overwhelmed by having to keep up with digital and online strategies, NACS, along with partner SOCi, developed THRIVR, an integrated social media, reputation and listings management solution designed to help retailers gain new customers, retain the ones they have and build basket size. The goal is to help retailers respond to “anywhere convenience,” shifting from simply surviving to thriving.

“If your store doesn’t show up on a search for fuel, gourmet coffee, fresh pizza and other things convenience stores are known for, you’re missing out,” said Stuart Greer, senior director of sales, regulated industries, SOCi. “We share the same vision as NACS—to create a platform built for the entire convenience and fueling industry.”

THRIVR, created by NACS and powered by SOCi, helps retailers connect with consumers before they walk in the door.

The Consumer Journey Starts Well Before Their Intent to Purchase

74% of consumers discover new needs via social

Source: Facebook IQ: Discovery Lead Shopping Study

90% of consumers say reviews and user-generated content influence their buying decision

Source: TurnTo Networks Study

50% of all searches have local intent

• 90% of this search traffic clicks and converts on one of the listings

• Ranking is determined by multiple factors including your social presence and local reviews

Source: TurnTo Networks Study

NACS APRIL 2023 67
mimagephotography/Shutterstock

WHAT THRIVR DOES

With THRIVR, retailers with one store or multiple locations can keep their business listings accurate across nearly 150 networks, make real-time social media updates for multiple stores and improve local search rankings and manage their reputation on Google, Yelp, Facebook and more. THRIVR provides retailers with three key components in the digital space:

• Listings: THRIVR interacts with your Google Business Profile listing, which in turn feeds other online platforms. This includes key information such as who you are, where you are located, your hours of operation, your contact information and your products and services.

• Social media : THRIVR centralizes and helps you manage your social media accounts, including Facebook and Instagram, both at the corporate level and for individual store locations.

• Reviews: THRIVR also helps you stay on top of customer reviews, which shape your online reputation.

“THRIVR makes it easy for retailers to manage all of that through a single platform,” Stillman said. “If your forecourt light has burned out, people literally can’t see your store at night. If your digital forecourt light isn’t accurate, people won’t find you.”

The other important piece of THRIVR is its scalability—the platform works just as well for one store as it does for 500+ stores. “The beauty is we’ve designed a platform with our single, independent operator in mind as well as our larger chains,” Stillman said. “And it’s just as affordable for one store as it is for 2,000 stores.”

WHY THRIVR WORKS

Across the landscape of apps like Yelp, Google Search, Facebook or Instagram, plus a retailer’s own loyalty program or app, it can be difficult to make sure your store and its current offerings are accurate everywhere online. “THRIVR is more like the network hub that feeds all the other sites and apps,” said Stephanie Sikorski, NACS vice president of

marketing. “Whether you have a social media team or not, THRIVR can make it seem like you do because of the way it brings everything into one place. It interacts with all of your digital and online touchpoints, so you can better manage your brand’s digital presence and marketing, and make real-time updates at the hyperlocal, state or national level.”

For Yesway, the fast-growing convenience store chain headquartered in Fort Worth, Texas, having one digital platform for multiple stores was vital to continued success of its two consumer-facing brands—Yesway and Allsup’s. “Convenience retail is highly competitive,” said Darrin Samaha, vice president of marketing for Yesway. “We knew we needed to stand out to achieve the overall goal of increasing Yesway and Allsup’s topline sales by driving more customers into our stores.”

mimagephotography/Shutterstock 68 APRIL 2023 convenience.org

Yesway signed up for the platform early, before it was branded THRIVR. The retailer chose the platform because it:

1. Created meaningful content to scale brand and local store presence

2. Enhanced the ability to run more efficient and targeted social advertising campaigns

3. Managed and scaled Yesway and Allsup’s multibrand portfolio of store listings and online reputation sentiments

“We’re also able to empower our team to respond to reviews quickly and easily and operationalize reputation and review insights with internal teams to improve overall brand sentiment,” Samaha said. “To us, the benefit is the ability to leverage the digital marketing trifecta—social content, search/listings and reputation/reviews—across 425 stores and two brands,” he said. “Simply put, we improved our social content so that customers can continue to engage with us in meaningful ways. We cleaned up our online services information so customers looking for our specific services can find us, and we also started to listen to and respond to their feedback so that we can improve our brand sentiment.”

WHY JOIN THRIVR?

THRIVR also provides retailers with a plethora of data, organized in a way that retailers can easily digest. “We’ve set up customized views of audits, direct reports and insights gathered across multiple digital touchpoints,” Sikorski said. “This snapshot helps retailers see where

Affordability

One thing NACS and SOCi kept at the forefront during the development process was ensuring that THRIVR would be affordable for retailers of all sizes. “We wanted to make it so a single-store operator could join as well as a multistore operator,” said Lori Stillman, NACS vice president of research and education. “NACS made a huge financial investment in the THRIVR platform to have a very robust tool for our industry.”

THRIVR costs $300 per retail location per year. “We like to say if each store sells only one more candy bar per day each year, it will cover the cost of THRIVR,” she said. “Since THRIVR will increase traffic and awareness, we consider it a win-win situation for any retailer.”

NACS offers free demos to any retailer wanting a closer look at how THRIVR operates. Contact Jen Johnson, NACS director of business development, localized marketing solutions, at (703) 518-4254 or jjohnson@convenience.org to schedule your closer look at THRIVR. Learn more at www.convenience.org/THRIVR

they are and where they want to be in terms of positive and negative feedback, discovery and visibility and customer interaction.” While each retailer is unique in how it chooses to communicate with customers, these same customers have more touchpoints with brands today than perhaps they ever had. “Customers today can find you at all hours of the day through online searches. And they can engage with you at any hour of the day on social media,” Samaha said. “Because of this 24/7 communication, retail brands have to pay attention and get engaged to ensure they deliver a great shopping experience. In our view, one of the best tools is localized digital marketing, such as THRIVR provides.”

NACS APRIL 2023 69
Sarah Hamaker is a freelance writer, NACS Magazine contributor, and romantic suspense author based in Fairfax, Virginia. Visit her online at sarahhamakerfiction.com. NACS introduced THRIVR at the 2022 NACS Show, where attendees had the chance to learn more about the initiative. NACS Show goers stopped by the THRIVR booth to talk to SOCi representatives and NACS staff about the platform’s possibilities for their business.
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L to R: Thomas Trkla, president and CEO, Yesway; Mark Romaine, COO, Global Partners LP; Mark Jordan, president and CEO, Refuel Inc.; and Bob Orr, partner and North America Head - Energy Practice, Oliver Wyman, during the Going All In on Growth Retail Panel discussion. Networking between sessons at the Leadership Forum Thomas Trkla, chairman and CEO, Yesway Inc. Lori Buss Stillman, NACS vice president, research and education The Leadership Forum featured general sessions and panel discussions on the theme of innovation. L to R: Derek Gaskins, chief marketing officer, Yesway; Don Rhoads, 2022-23 NACS chair and president and CEO of The Convenience Group LLC; Katie Bohny, NACS director, NACSPAC; and Lisa Dell’Alba, president and CEO of Square One Markets Inc.

How to Lead in the Age of

The 2023 NACS Leadership Forum explored transformation, inspiration and innovation.

The NACS Leadership Forum is an exclusive event bringing together top executives of industry-leading companies to discuss and explore how to lead in today’s hyper-convenience-focused world. Over three days in Miami Beach, Florida, in February, invited convenience retailers connected with industry peers and took inspiration from each other and the insights delivered by the keynote speakers and session panelists.

The event opened with a general session featuring Casey’s President and CEO Darren Rebelez, who sat down with NACS President and CEO Henry Armour to discuss how the Iowa-based retailer continues to innovate the guest experience and its iconic pizza program. Casey’s, with more than 2,400 stores in 16 states, is the third-largest convenience retailer in the United States and the fifth-largest pizza chain.

NACS APRIL 2023 71

Since taking the helm in 2019, Rebelez has led the 55-year-old company on a transformation to “be a bigger, better and more contemporary version of ourselves,” he said. Guided by a new strategic plan, Casey’s has refreshed its brand, launched private-label goods, made significant new acquisitions and added new digital capabilities across loyalty, delivery and fulfillment.

The plan centers on four primary strategies: reinventing the guest experience, identifying operational efficiencies, accelerating store growth and investing in people and community. When it comes to the guest experience, Casey’s starts with merchandising and product assortment. An important part of this is Casey’s digital platform and rewards program, which now has six million members. Rebelez shared that 64% of Casey’s rewards members engage with the brand during a 90-day period. On a monthly basis, 50% of loyalty members

engage with the brand, beating industry averages for engagement.

And then, of course, there is Casey’s pizza program, which Rebelez calls the “crown jewels” of the operation. “There’s a lot of love put into that pizza,” Rebelez said, noting that everything is made from scratch with fresh ingredients on-site each day.

The foodservice team has worked to elevate the rest of the menu to the “Casey’s good” level of its beloved pizza, in part by simplifying kitchen operations. And the culinary team isn’t done creating new pizza flavors. “Last summer our team identified that brisket was on trend, and so we launched a new BBQ Brisket Pizza, which is phenomenal,” Rebelez said. The pizza was so good that it earned a spot on the permanent menu and became Casey’s best-selling LTO to date.

To celebrate the 21st birthday of its famous breakfast pizza in September 2022, Casey’s collaborated with Anheuser-Busch on an LTO dubbed the Ultimate Beer Cheese Breakfast Pizza, complete with Busch Light beer cheese sauce. “We rolled that out, and it immediately took off,” Rebelez said, “but really what was great about that, in addition to selling a lot, it was a huge thing on social media. We generated over 80 million impressions on social media just over this one pizza.”

Rebelez shared how Casey’s is working to simplify processes at the store level based on feedback from store employees, who noted that they increasingly were taking on more responsibilities without giving up tasks.

“We have a whole team that is dedicated to simplifying everything we do in the stores, and we’ve taken a lot of things off of the store managers’ plates, or off our team members’ plates, just to make the job easier,” Rebelez said. The effort to remove complexity is paying off so far in reduced store-level turnover and improved guest satisfaction.

3 KEYS TO INSPIRATION

Every organization grapples with how to effectively engage teams and keep them engaged to drive customer loyalty and improve business results. The question is, how to get there? Today’s workforce is feeling less inspired than ever before, and that’s true from the rank and file to the c-suite, research from

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‘‘ We have a whole team that is dedicated to simplifying everything we do in the stores, and we’ve taken a lot of things off of the store managers’ plates, or off our team members’ plates, just to make the job easier.”
—Darren Rebelez, Casey’s President and CEO
L to R: Darren Rebelez, Casey’s president and CEO, and Henry Armour, NACS president and CEO Jeff Lenard, NACS vice president of strategic industry initiatives

Gallup indicates. “The current disengagement rate of the American workforce is at 79%,” Kevin Paul Scott, co-founder of ADDO Worldwide, shared.

Within that group, 18% or 19% of the workforce is actively disengaged, he pointed out, which Gallup defines as “disgruntled and disloyal.” Only 21% of employees are engaged with their work. Why have people checked out mentally on the job? “The top three reasons people cite are, ‘They don’t have a connection to the mission or purpose,’” Scott said. “‘They don’t have opportunities to learn and grow,’ and ‘they don’t feel cared for’” at work.

“A lack of engagement is a result of a lack of inspiration,” he said. “Inspiration happens when there are a certain group of elements that exist at the same time, and they must be present in order for people to be inspired.” In a Harvard Business Review study of 50,000 leaders, “the No. 1 quality people look for in their leader is someone who is inspiring,” Scott said.

These are what he describes as the

three essential, indispensable ingredients for inspiration: purpose, problem (to be solved) and partners. Companies need to clearly define their purpose and make sure every employee knows it. “When you think about purpose, there are three things you need to do,” Scott said. “You’ve got to define it. You’ve got to revisit it often. You’ve got to connect their activities to it,” he said. “When the purpose is clear, the mundane becomes meaningful.”

Still, purpose alone isn’t enough. “For someone to be inspired, they not only have to have a purpose they’re shooting for. They’ve got to have a problem or a challenge or obstacles— something that’s worth doing to overcome,” Scott said. Boredom ensues when things are too easy to solve, he said. Effort is where learning and fulfillment come in. Then it’s important to have people to partner with you on the journey.

“If you are totally isolated and alone, it doesn’t matter if you have a purpose and if you have problems to solve. Eventually you will lose the inspiration because you don’t have somebody in it to share things with,” Scott said.

OVERCOME RESISTANCE TO NEW IDEAS

David Schonthal, professor of strategy, innovation and entrepreneurship at Kellogg School of Management, shared insights on the four frictions that operate against innovation: inertia, effort, reactance and emotion.

When it comes to getting people to say yes to a new idea or innovation, too often corporate leadership focuses on the appeal of the innovation instead of anticipating the reasons why employees might resist their ideas and initiatives and then helping them see the bigger picture.

“Sometimes the job of the innovator isn’t to feature all of the new benefits that they are bringing to market, it is to make any new idea feel familiar to their audience,” Schonthal said. In the design world, it’s called meeting people where they are.

“There are two forces at play anytime we are attempting to do something new,”

NACS APRIL 2023 73
‘‘ A lack of engagement is a result of a lack of inspiration.”
—Kevin Paul Scott, co-founder of ADDO Worldwide
Kevin Paul Scott, co-founder of ADDO Worldwide Attendees enjoyed time to network. Jamie Cornelius, executive creative director, ChangeUp LLC

Schonthal said. Fuel and friction. “As human beings we tend to think in fuel,” he said. “Removing friction is often more powerful than increasing fuel.”

He offered the example of consumers who are motivated to buy a new sofa but resist because they don’t know what to do with their old one. Enter a furniture company whose marketing focused on the feeling of upgrading a home’s environment—and removing the old furniture—not just selling consumers a new sofa.

“Remove friction just enough to make it easy for people to say yes,” Schonthal said.

How do you get people within your organization, especially those who may have been on the job for decades, to buy into ideas that will change the way they work? Rather than announce a big transformation project, practice a design principle called “starting small,” Schonthal advised.

As a first step, consider a beacon project where a group of employees volunteers to focus on one small aspect of a larger problem and tackle it in a new way within a short

time frame. Then they share their learnings with other departments. “Here’s how we accomplished what we did. Here’s how we would have done it the old way, and here’s how we did it the new way,” he said, citing a real-world example of a digital transformation project undertaken by the California state government. “By signaling with a beacon project how things can be done differently, they’re creating transformational change from the ground up versus top down.” Other departments caught on and wanted to participate.

“Transformation doesn’t happen in one fell swoop,” he said. “It happens with a series of small steps that eventually ladder up.”

Leaders should think about ways to reframe change with three words: How might I?

“How might you make new ideas you are bringing to the world feel more familiar to your audience?” This helps overcome inertia. The antidote to inertia is familiarity, Schonthal said.

When it comes to effort-related friction—find the path of least resistance. Just like UX designers create online experiences to help people quickly find the information they are looking for, think about removing every bit of micro-friction and ambiguity for your teams. This can be as simple as starting every meeting with an agenda. “Providing a roadmap can remove a ton of ambiguity and a ton of anxiety, which adds ease, which is the antidote to effort,” Schonthal said. Remove the ambiguity of the experience—let people know where they are in the process and show that they are making progress.

Ask yourself, what negative feelings might the idea produce in others—in particular, the very people you are trying to help? Change causes anxiety because it’s asking people to do something unfamiliar. “Keep an eye out for emotional friction,” he advised. “The antidote to emotion is empathy.”

Does your audience feel pressured to change? “The more we feel like change is being imposed on us, the more we experience reactance,” he said. People want to arrive at ideas on their own, not have ideas imposed

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‘‘ Transformation doesn’t happen in one fell swoop. It happens with a series of small steps that eventually ladder up.”
—David Schonthal, professor
of strategy, innovation and entrepreneurship at Kellogg School of Management Henry Armour, NACS president and CEO David Schonthal, professor of strategy, innovation and entrepreneurship at Kellogg School of Management

on them. Ask yourself, “‘How might you mine the power of autonomy and how it can make people resistant to change? How might you ask instead of tell?’” The antidote to reactance is involvement.

“The big idea is really this: Oftentimes removing friction is more powerful, cost effective and stickier than increasing fuel,” Schonthal said. Look for the four frictions hiding in plain sight. “Once you spot them, solving them tends to be relatively simple.”

EMBRACE DISCOMFORT TO GROW

“What’s between you and the goals you have for you and your business over the next year?” Among the biggest factors is simply the unknown, according to Sterling Hawkins, founder of Sterling Hawkins Group.

While most people consider the unknown to be a challenge, Hawkins argued that the unknown is an opportunity. “It’s only within the unknown that you can realize your potential,” he said.

Hawkins spoke from experience. He grew up a fifth-generation retailer, having to master the intersection of technology and extreme competition. He launched a successful tech company that eventually collapsed, and the experience led him to rethink how to go to market with new ideas.

He offered convenience retail industry thought leaders five tips to go from wanting something to willing it to happen, or as he called the concept, #NoMatterWhat.

1. Hunt discomfort: “The only choice we get when it comes to discomfort is how we want to handle it,” Hawkins said. Most people constantly turn away from discomfort, and that leads to satisfaction with the current state. “Discomfort’s not something to avoid,” Hawkins said, citing examples of how discomfort increases learning and ultimately success.

2. Get a tattoo: No, you don’t physically need to get inked, but you need to be all-in on your commitment—and demonstrate it. Examples include Red Robin’s CEO promising to get a tattoo if the company hit a goal, and other leaders who encourage and celebrate audacious goals, even if they may not be reachable. “Commit beyond what you can see as possible. Commit beyond your comfort zone,” Hawkins said.

3. Build a street gang : Find support for your big idea. “This is about surrounding yourself with people who are going to hold you accountable for what it is that you want to achieve,” Hawkins said. Dr. Martin Luther King’s famous “I Have a Dream” speech wasn’t the speech he was going to give, but a close friend and supporter pushed the civil rights leader to change direction, Hawkins shared. And the rest is history.

4. Flip it: Making a problem bigger may ultimately solve the problem. “Your biggest challenge may be your biggest success,” he said. That doesn’t mean creating undue stress but finding new ways to look at what the real problem is.

5. Surrender: Accept things exactly as they are—and exactly as they aren’t, he said. It means acknowledging discomfort to make that breakthrough. “We cannot change anything until we accept it,” he said, quoting Carl Jung.

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is Jeff Lenard is NACS vice president of strategic industry initiatives. He can be reached at
‘‘ It’s only within the unknown that you can realize your potential.”
—Sterling Hawkins, founder of Sterling Hawkins Group
Derek Gaskins, chief marketing officer, Yesway (left) Sterling Hawkins, founder of Sterling Hawkins Group

POWERFUL BRAND. HOMETOWN FEEL.

RUNNING YOUR BUSINESS YOUR WAY. POWERED LOCALLY.

We know that the true power behind the Cenex® brand comes from our locally-owned retailers – valued partners who are invested in their customers and community. That’s why we’re committed to your success and helping you build your business from the moment you become a Cenex® retailer. From flexible brand conversion and marketing, to convenient payment processing and training programs, we can provide your business with the support it needs to help you grow.

A name your customers trust, a brand you can count on –visit cenex.com/businessopportunities to learn more.

© 2021 CHS Inc. Cenex® is a registered
of CHS Inc.
trademark

Cool New Products Guide

This advertorial-style guide of services and packaging appears monthly and is an information-packed tour of ideas and approaches that can change how consumers view your store or choose your brand. It spotlights the newest thinking in convenience and fuel retailing and gives you an advance look at ways of staying in front of industry trends. Products are categorized the same way we organize the Cool New Products Preview Room at the NACS Show each year in October— New Design, New to the Industry, New Flavors, Health & Wellness, Green (EcoFriendly), New Services and New Technology Products are considered “new” this year if they’ve been introduced since October 2021. The products featured here also can be seen in the Cool New Products Discovery Center at www.convenience.org/coolnewproducts Please

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about bringing Ty into your locations. New Beanies? Yes please! Beanie Boos Ty Inc. NEW DESIGN
contact Peter Olbrys at 630.432.3329 or polbrys@tymail.com

Monster Energy Company

Monster Energy Ultra Strawberry Dreams

New Zero Sugar Monster Energy Ultra Strawberry Dreams

Some people swear that strawberries are aphrodisiacs. They say if you share a double strawberry with someone then they’ll catch feelings for you. All we know is the heart-shaped fruit makes the perfect flavor for our new zero sugar Ultra. Wonderfully sweet, while slightly tart, this easy-drinking Ultra tastes like a dream. Passionately crafted with the Monster energy blend you crave; take one sup and you’ll be crazy for Ultra Strawberry Dreams. For sales inquiries call (800) 426-7367 or visit our website www.monsterenergy.com.

f’real

Strawberry Shortcake and Fudge Brownie Batter

Shake things up with f’real

NEW FLAVORS

E&J Gallo Winery

LIQS 750ML

Two classic flavors – strawberry and chocolate – are elevated into something new and delectable, yet familiar, so customers continue to have a mouthwatering milkshake experience. The f’real Strawberry Shortcake milkshake has nostalgic notes of strawberry mixed with a creamy cake base that’s craveable and delicious. For the f’real Fudge Brownie Batter milkshake, there’s added texture and richness. With both flavors, it’s like heading to your favorite shake shop without leaving your local convenience store. Both flavors will be available for a limited time in 2023. www.business.freal.com.

NEW FLAVORS

LIQS Cocktails - NEW 750ML

Introducing LIQS ready to drink cocktails, now sold in 750ml format! Liqs Cocktail Co. brings bartender-quality drinks to consumers that uses a premium wine base, real fruit juice, and are gluten free! Available in 4 flavors to cater to a variety of consumer preferences. Just pour over ice and enjoy. Less Prep, More Party!

NACS APRIL 2023 79
NEW FLAVORS

Shipley Do-Nuts

Shipley Do-Nuts House Blend Coffee & Cold Brew

New House Blend & Cold Brew

The greatest name in do-nuts is now serving the world’s tastiest hot & fresh do-nuts paired with a NEW rich and delicious Shipley house brewed hot coffee and cold brew! The new Shipley house blend is a medium bold coffee made from premium rich Arabica beans and served hot and fresh daily. In addition, the new Cold Brew coffee comes in two flavors: Bold Black and Salted Carmel. So, whether you are pairing it with the signature hot glazed do-nut or your favorite kolache, the new Shipley coffee is the perfect combo for your everyday wake up call.

Get inside consumers’ minds.

shape your future accordingly. This year, you won’t just know why. You’ll see why.

80 APRIL 2023 convenience.org INDEX NEW FLAVORS E&J Gallo 79 f’real foods 79 Monster Energy Company 79 Shipley Do-Nuts 80 NEW DESIGN Ty Inc. 78
convenience.org/voices
And
NEW FLAVORS

Associate Director, Retail Petroleum Architecture and Assurance W. Capra Consulting Group

We will be honoring and inducting Sue Chan into the Conexxus Technology Hall of Fame during the Annual Conference!

To attend the Conference visist: Conexxus.org/AC2023

Hall of Fame Induction Reception

Wednesday, May 3, 2023

Sponsored by:

Conexxus.org

info@conexxus.org

CONEXXUS TECHNOLOGY HALL OF FAME
Sue Chan | 2023 Inductee 2023 ANNUAL CONFERENCE LOEWS CORONADO BAY CALIFORNIA

Epic Proportions

There may be gas pumps outside of Rocket Market, but at this c-store in Spokane, Washington, the inside offer—coupled with great customer service—is the real draw for customers.

At this “Small Market of Epic Proportions,” as the store’s tagline touts, owner Alan Shepherd knows how to create an atmosphere that elicits positive feelings from customers. Some loyalists, in fact, are so passionate that they’ve chosen the store to host their wedding or gotten a tattoo of the logo.

Shepherd opened Rocket Market in 1999 and has spent most of his life working in convenience retail. “I’ve been in the industry since I was 15 years old,” he said, adding, “I’m big into food. I saw the rise of Whole Foods and PCC in Seattle.” He worked for other companies but had a vision for a store of his own. The vision didn’t include a convenience store.

“The spot that came open was an incredible location. I had no intention of

having a gas station. Someone had purchased the gas station and turned the mechanic bays into a little coffee shop. My partner and I decided it was a great spot, but it was just too big for a coffee shop.” The result was a restaurant and market that also happens to sell gas and puts its own spin on convenience items.

FOOD FRIENDS

Shepherd’s idea for the space was to offer what he calls “cool or interesting food.” And that includes products sourced from producers who prioritize knowing how the food was raised. Part of his strategy centers on using local products created by his friends. He trusts the integrity of their products and their attention to detail.

One friend makes sourdough bread for the store using heirloom grain sourced within a 100-mile radius of his bakery. “They’re old native varieties that might have gone away,” Shepherd said of the

grains. “This is the best bread I’ve had. It’s all made by hand. No one scoffs at the [$10 a loaf] price.” The bread is baked in a wood-fired oven. “We are wildly fortunate to have this guy,” Shepherd said. “It’s a true art form to use this oven.”

The coffee is from a local roaster. “We use Doma coffee, and we also sell whole beans. I don’t carry much of anything you can get at Albertsons. We also use Anvil coffee, a little roaster in downtown Spokane. These are my friends. I know them,” he explained.

A NEW PIZZA IN TOWN

Shepherd found his customers one of the most unique pizzas available in the Pacific Northwest. It comes from Anthony Mangieri’s New York pizzeria, Una Pizza Napoletana. It’s a thin crust, wood-fired Neapolitan-style pizza.

The toppings on the Margherita pizza are placed on a hand-stretched sourdough crust, blast frozen and shipped

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Rocket Market is a neighborhood hub that offers its customers a uniquely local experience.

from New York, he explained. “They’re only in 15 stores on the East Coast. I’m the only store on the west side of the Mississippi that carries this pizza. They were excited to work with me. I’m a little store in Spokane, Washington, and I have an exclusive on it in my area.”

Rocket Market has a bistro with a chef on staff. “We make our soups fresh each day. We make quite a few different soups, everything from tomato basil to chicken noodle.” The bistro is a good way to control food waste in the produce department.

“The store is a pantry for the bistro. We do a panini grill, breakfast burritos and pastries from our sister bakery, Rocket Bakery,” Shepherd said. “The Carlito burrito is our most popular burrito. We have a vegan and a non-vegan. The weird thing is the vegan outsells the non-vegan. They just like this burrito better,” he said.

In addition to the food, Shepherd offers customers a lot of reasons to visit the store.

“We have our own private-label wines; we’ve been doing that 10 or 12 years. We have a wine club and have wine tastings every Friday. We limit it to 25 to 27 people and normally sell out. You taste eight different wines, and we make snacks and it’s $30. It’s a cheap night out. You get to try wines that you never would have tried,” he said.

“I’m value-oriented. If you see a $4 bottle of wine, it won’t be garbage. When someone changes a vintage, they call me. I’ll buy a pallet if it’s good. I won’t bring it in for any price if we don’t like it.”

A WEDDING AND A TATTOO

Couples planning a wedding look for that perfect spot to begin their lives together. Tim and Lindsey McDermott decided to get married at Rocket Market on February 3, 2023, in the room where wine tastings are held. Lindsey was a customer and originally asked about having the rehearsal dinner in the room, which is available to rent. That turned into a whole wedding ceremony.

“It was a small wedding. Shanda, my wife, is a florist by trade. We have wine. We have a bistro. My wife did

the flowers. My chef did the food,” said Shepherd, adding, “We’ve gotten a lot of national attention but not much local.”

For some customers, Rocket Market has made a lasting impression. That’s evident by the customer who decided to get a tattoo. “One day, I was walking through the store and a girl had our logo tattooed on her arm. I didn’t ask her to do it,” he said.

SOCIAL MEDIA

Like most savvy business owners, Shepherd makes use of social media, mostly Instagram.

“I have a lot of young people on staff. I will prompt them, and I let them go,” he said of the posts his staff create. “My wine specialist is good at Instagram. I tell her this is the stuff I want. I like varying voices. I have a different perspective than someone who’s 20 years old,” he said.

He also keeps customers updated on produce, wine and everything else with a weekly newsletter. “The newsletter feeds everything. I do all the editing and take the photos. I, weirdly, have people subscribe from all over the world to the newsletter,” he said.

Shepherd is a tough competitor. “I have to be extremely agile. There’s a Trader Joe’s a half mile from me. I can be fast. Someone can walk in the door with a cool new product, and I can have it on the shelves in a half hour. We hope enough people recognize the work we put into the place and patronize us and don’t go to Costco or Trader Joe’s,” he explained.

Rocket Market is part of the fabric of the area. “The customers have more fun than I do. We’ve had so many people meet here. They get married and have kids. Now, their kids come in,” Shepherd reflected, adding, “We’re the heart of the neighborhood.”

NACS APRIL 2023 83
Al Hebert is the Gas Station Gourmet, showcasing America’s hidden culinary treasures. Find him at www.GasStationGourmet.com. A customer had the store logo tattooed on her arm. In February, Rocket Market turned into a wedding venue for the first time when Tim and Lindsey McDermott tied the knot. Co-owner Shanda Shepherd and wine specialist Teddy Thompson.

Ice Creamy Sales

As sure as spring follows winter, sales of packaged ice cream at convenience stores rise along with the outdoor temperatures. “The summer months are peak sales for the category, as families are traveling more, kids are out of school and the warmer months spur the need for a cool treat,” said Jayme Gough, research manager, NACS.

In 2020, ice cream saw significant sales growth, similar to other indulgent categories within the store. “This trend continued but to a lesser extent in 2021,” said Gough. “In 2022, summer average monthly sales per store spiked higher than both 2020 and 2021.”

NielsenIQ data for 2022 showed the ice cream category rose 11.2% in sales year over year, but with a drop of 1.1% in units. The average unit price for the category jumped 12.26% year over year, as infla-

tion hit all categories of dairy hard.

In 2021, the ice cream category represented 1.00% of in-store sales, according to the NACS State of the Industry (SOI) Report of 2021 Data. The total category brought in $1,917 in sales per store, per month in 2021, a bump of 4.6% year over year.

At the Breeze-In Prince George, Virginia, location, sales stay decent yearround, with the predictable spike in the summer months. “We stock pints from Richlands Dairy, a local dairy, in six different flavors, and those sell faster than our national brand packaged ice cream,” said manager Jamie Merchant. “Our customers like to support the local companies, and it’s really good ice cream.”

While the weather stays warmer year-round in Burbank, California, even Chuck’s Corner Market 76 sees sales falter some during the winter months

and skyrocket in the summer. “Our ice cream sales do very well, but more so in the summer when the temperatures climb higher,” said manager Jared Tran. Mars Ice Cream counts on its retail partnership with convenience stores as a key channel to increasing sales. “Across the category, sales are up in convenience stores,” said Shaf Lalani, GM Mars Ice Cream. “As more and more consumers continue to shop for ice cream offerings in the coming years,

84 APRIL 2023 convenience.org CATEGORY CLOSE-UP ICE CREAM
Packaged ice cream continues to bring in solid sales, especially as the weather warms.
TSchon/Getty Images. hayatikayhan/Getty Images

INDUSTRY SALES

Source: NACS State of the Industry Report of 2021 Data.

the category will undoubtedly see more growth at c-stores.”

SELLING ICE CREAM

Ice cream generally sells itself, especially in warmer weather, but retailers can generate even more sales by strategically positioning a cold box stocked with ice cream treats near the front of the store or checkout area to promote impulse purchases.

“Daypart is also critical for this category,” Gough said. “Sales spike in the afternoon and evening and on weekends, so ensuring you are fully stocked and prepared for those times of day and week can foster sales.”

That’s the experience at Pit Stop Express in Dorton, Kentucky. “Our ice cream sales go up and down according to the weather, and we definitely sell more in the summer,” said manager Stephanie Johnson. The store stocks four pint flavors of locally-made ice cream, as well as sandwiches, popsicles and candy bar ice cream.

Pit Stop Express has its ice cream freezer right by the front door. “That

way, everyone who comes in sees it and can grab a treat,” Johnson said. “We have a lot of people who come in with their children, so having [the freezer] stocked with good-selling ice cream means more sales.”

Like Pit Stop, Breeze-In has a cooler positioned beside the main entrance. “We don’t offer any promotions on our ice cream because we don’t need too— the category does well enough without it,” Merchant said.

Chuck’s Corner Market plans to do more social media in its local area to promote the store and will include its selection of ice cream in the mix. “While we have the ice cream freezer beside the front door, we haven’t done much in way of promoting it,” Tran said. “That will change in 2022 as we promote our store and different categories like ice cream on social media.”

FROZEN TREAT TRENDS

For ice cream, the tried-and-true are often the best-sellers in the category. The International Dairy Foods Association (IDFA)/Research America “Ice Cream & Frozen Novelty Trends Survey June

Source: NACS State of the Industry Report of 2021 Data 2021 2021 2021 98.2% 2020 98.9% % of Stores Selling
Avg. Sales/Store 1.00% 2020 2020 1.04% % of In-Store Sales $1,917 Average sales per store, per month of ice cream in 2021.
$1,917 $1,834

CATEGORY CLOSE-UP ICE CREAM

Per Store, Per Month Sales

The Power of CSX Data

CSX, the engine behind category metrics and NACS State of the Industry data, provides current and customizable tools for financial and operational reporting and analysis in the convenience industry. Retailers can measure their company by any of the myriad metrics generated via our live database.

Contact Chris Rapanick at (703) 518–4253 or crapanick@convenience. org for a complimentary executive walkthrough.

2022” discovered cookies ‘n cream is by far the top-selling flavor (83%), followed by vanilla (71%) and chocolate (67%). But sometimes, local interest will spike sales in different flavors. For example, at Pit Stop Express, strawberry pints fly off the shelf. Coffee Oreo, followed by chocolate, are the top pint flavors at Breeze-In.

Premium ice cream also has proved popular among consumers, capturing 58% of the category over regular ice cream (24%), according to the IDFA survey. NACS has updated the cat egory definitions to version 8.0, which breaks out ice cream subcategories by bulk and single serve. This is how some retailers are already tracking the subcate gories. This tracks at Chuck’s Corner Market, where Haagen-Dazs pints sell the best out of its ice cream selection. Snickers ice cream bars and Drumsticks are the store’s other top-sellers.

“We carry what people want, and that includes the basics for ice cream,” Tran said.

In the novelty subcategory, sandwich has been king with 48%, followed by cones (21%) and sticks or pops (12%), according to IDFA. “Across the ice cream

86 APRIL 2023 convenience.org
JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC $5,000 $4,500 $4,000 $3,500 $3,000 $2,500 $2,000 n 2019 n 2020 n 2021 n 2022
$4,315 Dan Bumbas/Shutterstock
Source: CSX LLC; csxllc.com

CATEGORY CLOSE-UP ICE CREAM

Subcategory Data

Same-Firm Sample, Per Store, Per Month

very popular at c-stores, as consumers look for on-the-go treats,” Lalani said. Suppliers are banking on novelties to continue to capture consumer inter-

est, with Mars Ice Cream releasing three new ice cream flavors this year—M&M’s Cookies and Cream, Ice Cream Cookie Sandwiches and Dove Mini Sticks.

COLD FUTURE

While most people buy ice cream at the supermarket (83%) and national ice cream specialty shops (30%), convenience stores are the third most popular place to purchase a frozen sweet treat (27%), according to the IDFA survey. “Ice cream is a great impulse buy at convenience stores,” said Merchant. “With people traveling more and families stopping in convenience stores as they’re out and about, having pints and novelties are integral to our merchandise mix.”

Sarah Hamaker is a freelance writer, NACS Magazine contributor, and romantic suspense author based in Fairfax, Virginia. Visit her online at sarahhamakerfiction.com.

88 APRIL 2023 convenience.org viennetta/Getty Images
Ice Cream/ Novelties Percent of Sales Avg. Sales/Store Avg. GP$/Store Gross Margin % 2020 2021 2020 2021 2020 2021 2020 2021 Ice Cream 38.9% 37.8% $714 $725 $297 $310 41.53% 42.72% Frozen Novelties 31.1% 33.4% $569 $640 $279 $317 48.95% 49.50% Premium Ice Cream 28.6% 27.4% $524 $525 $229 $222 43.69% 42.26% Frozen Yogurt/ Sherbet/Sorbet 1.4% 1.4% $26 $28 $12 $13 47.54% 47.06% Total 100.0% 100.0% $1,834 $1,917 $817 $861 44.54% 44.92%
Source: NACS State of the Industry Report of 2021 Data
Ice cream is a great impulse buy at convenience stores.”
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Looking at the Alternative

Alternative snacks were making a comeback, but that momentum was cut short by inflation. What’s next for the category?

$2,797

The alternative snacks category was on the rebound in convenience stores throughout 2021 and most of 2022 after a dramatic sales slip in 2020 due to the COVID-19 pandemic. Now the question is whether the category can continue to attract the inflation-weary consumer.

Although a small category, representing 1.55% of in-store sales in 2021, alternative snacks sales were up 23.3% from 2020 to 2021 according to the NACS State of the Industry (SOI) Report of 2021 Data. During the first three quarters of 2022, alternative snacks sales surpassed 2021 sales during all but two months, per CSX data.

“These positive sales numbers mean the category continues to see momentum” said Jayme Gough, NACS research manager. “But on the flip side, inflation has impacted many in-store

categories, including alternative snacks center-store categories.”

The average unit price for the category was up 7.9% from 2021 to 2022, NielsenIQ data show, and while sales were up 3.8%, units were down 3.8%.

“These figures tell us that although there are sales dollars coming in, c-stores aren’t actually selling more product,” said Gough.

At Nashville-based MAPCO, the category is steady, but “not what it was two years ago or before when we were seeing really big growth within [the category],” said Kelley Gutierrez, senior category manager, candy and snacks, MAPCO.

“In order for us to keep [customers], we’ve got to be creative with how we’re promoting because people are taking a second look at everything they’re spending on,” she said.

Average sales per store, per month of alternative snacks in 2021.

Source: NACS State of the Industry Report of 2021 Data

90 APRIL 2023 convenience.org
CATEGORY CLOSE-UP ALTERNATIVE SNACKS

C-STORES HAVE THE MEATS

The majority of sales in the category come from the meat snacks subcategory. This was true again in 2021. Meat snacks represented 57.2% of category sales and boasted the second-largest gross margin for all subcategories, 45.60% (NACS SOI Report of 2021 Data).

A leader in meat snacks, Jack Link’s is seeing a shift in consumer purchasing habits.

“Two years ago, we saw a boom in large value bags when consumers were staying close to home with more expendable income,” said Jennifer Martin, senior category manager, convenience, Jack Link’s. “That trend has slowed down in the c-store channel.”

Martin said consumers are now gravitating toward smaller-sized jerky bags (between 2 and 4 ounces). Meat sticks have also grown in overall dollar share with single sticks contributing to that growth, but bagged sticks have slowed.

Gutierrez said at MAPCO, meat snacks sales have slipped during the past year, especially the larger pack sizes; however, meat sticks are performing well. Gutierrez attributes the success to offering a variety of different brands and flavors and aggressively promoting them.

“There are definitely opportunities within cross promotion for that value proposition,” she said, pointing to the example of running a promotion on a bag of jerky or a meat stick and a packaged beverage. “That kind of a [promotional] trend isn’t going to go away, especially as dollars start to tighten and people might be using c-stores for meal replacements,” Gutierrez said.

With rising food costs, it could be cheaper for a customer to purchase a high-protein meat snack and a packaged beverage at a c-store than to buy a fast-food meal, she noted. “The biggest promotional proposition that I work with is what can I do to give somebody an option who would otherwise walk out without anything?” Gutierrez said.

When it comes to flavors and innovations, consumers still want that spicy kick, but they are also seeking that unique and novel taste. “It’s still those creative flavors, like the hot and spicy, the tangy items,” said Gutierrez. “But you’re also expanding into more of a foodie palette.”

Source: NACS State of the Industry Report of 2021 Data

NACS APRIL 2023 91
2021 INDUSTRY SALES antpkr/Getty Images. jirkaejc/Getty Images % of In-Store Sales 2020 Avg. Sales/Store 2020
2021 1.55% 99.1%
% of Stores Selling 2021 2020 1.34%
$2,268 $2,797
99.0%

CATEGORY CLOSE-UP ALTERNATIVE SNACKS

Per Store, Per Month Sales

According to Gough, international flavors, including varieties of spice, or combinations of sweet and hot, have become more and more popular.

“Consumers are looking for flavor that is intriguing and fun—something they may not have seen before,” she said.

Martin agreed with Gough, but when it comes to jerky flavors, original and teriyaki are still the No. 1 and No. 2 flavors that consumers purchase. “Consumers love to try new, fun flavors, but the flavors they come back to again and again are the classics,” she said.

RAISING THE BAR

The health/energy bar subcategory is the third largest subcategory. It accounted for 16.7% of category sales on a per store, per month basis, and has the highest gross margin of all subcategories within alternative snacks (49.49%). According to Hershey, which distributes the protein bars ONE and FULFIL, the subcategory is evolving.

“[Consumers] continually demand better taste, texture and flavor experiences without sacrificing the quality nutrition that underpins all protein snacks,” said Michael Reese, head of marketing for ONE and FULFIL, The Hershey Company.

The subcategory is starting to take some tips from the candy category but with a healthier spin. Hershey’s FULFIL bar is a multi-layered protein bar that “closely mimics the eating experience of a traditional candy bar,” according to Reese. Hershey’s ONE brand recently launched ONE Crunch Bar, which Reese described as a “light, crispy eating experience perfect for a mid-afternoon pick-me-up.”

bfk92/Getty Images 92 APRIL 2023 convenience.org
“Consumers love to try new, fun flavors, but the flavors they come back to again and again are the classics.”
JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC $3,500 $3,000 $2,500 $2,000 $1,500
n 2019 n 2020 n 2021 n 2022
$2,954
Source: CSX LLC; csxllc.com
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CATEGORY CLOSE-UP ALTERNATIVE SNACKS

Subcategory Data

Same-Firm Sample, Per Store, Per Month

Gutierrez believes these candyinfluenced health bars may have an impact on the candy category, as the cost of these bars can rival candy bar prices.

“[Consumers] can get that sugar fix with innovative flavors, and the way [suppliers] put together the ingredients and the recipes that taste awesome, [they] are very competitive from a pricing standpoint with the candy category,” she said.

This year, Hershey is launching a category-blending bar under the ONE brand called ONE Coffee Shop, featuring 20 grams of protein and 65 milligrams of caffeine. The bar “focuses on the typical morning protein-bar eating occasion, where consumers are looking for something to get their day going,” said Reese.

IT’S BETTER FOR YOU

The granola/fruit snacks subcategory was the smallest sales contributor to the alternative snacks category, accounting for 7.1% of category sales in 2021. According to PIM Brands, which manufactures and distributes the Welch’s Fruit Snacks brand, customers are looking for flavor options beyond traditional, and the better-for-you trend is back on the rise.

“A key trend driving innovation is rediscovering ‘better for you,’ with consumers looking to stay healthy. This has led to a surge in snacks with sugar-free or zero-sugar claims,” said Mike Scalera, marketing director, Welch’s Fruit Snacks core equity, PIM Brands.

Gough of NACS agreed. “During the pandemic and up until recently, consumers were all about the indulgent snacks, but now we’re seeing people trying to get back on track in terms of their health, so they’re seeking not only better-for-you alternatives but also permissible indulgences,” she said.

TIPS AND TRICKS

According to Reese, visibility and shopability are key when merchandising alternative snacks.

94 APRIL 2023 convenience.org Okea/Getty Images
Alternative Snacks Percent of Sales Avg. Sales/Store Avg. GP$/Store Gross Margin % 2020 2021 2020 2021 2020 2021 2020 2021 Meat Snacks 50.8% 57.2% $1,152 $1,600 $510 $729 44.28% 45.60% Other Alternative Snacks 19.7% 19.0% $448 $532 $182 $220 40.76% 41.27% Health/Energy/Protein Bars 16.5% 16.7% $374 $467 $187 $231 50.02% 49.49% Granola/Fruit Snacks 13.0% 7.1% $294 $197 $152 $89 51.47% 45.31% Total 100.0% 100.0% $2,268 $2,797 $1,031 $1,270 45.47% 45.40%
Source: NACS State of the Industry Report of 2021 Data
In order for us to keep [customers], we’ve got to be creative with how we’re promoting because people are taking a second look at everything they’re spending on.”

“Not all protein snacks are the same, so helping the shopper easily navigate between high-protein bars that will fill them up for the next several hours versus a smaller protein or energy bar that is designed to tide them over ahead of an upcoming meal is very important,” he said.

He also notes that placing alternative snacks next to complementary products is critical. For example, protein snacks pair well with coffee and energy drinks.

When it comes to meat snacks, these purchases are highly impulsive, according to Martin. She said any additional points of disruption in the customer journey are key.

For Gutierrez, it’s all about being

creative. Her tips for selling the category include having a front-end checkout, a queue lane and placing alternative snacks in an area next to packaged and dispensed beverages.

“The biggest thing is to create those basket builders and put it next to something else where you’ve got the affinity,” she said. “That secondary or triplicate placing of some of your top sellers or your value items can get that product into the consumer’s line of site … [it] is going to keep them coming back more often.”

Sara Counihan is contributing editor of NACS Magazine and NACS Daily. She can be reached at scounihan@ convenience.org

NACS APRIL 2023 95 ADVERTISER INDEX Thank you to these advertisers who have demonstrated their support of the convenience and fuel retailing industry by investing in NACS Magazine. Contact Information Page Contact Information Page Contact Information Page 5-hour Energy 7 https://5hourenergy.com/ Altria Group Distribution Company Inside Front Cover, 9 AGDCTradeRelations@Altria.com www.altria.com www.tobaccoissues.com Bel Brands USA dba Dairy Manufacturer 87 https://belbrandsusa.com/ Bluegrass Ingredients 89 Bluegrassingredients.com (270)-297-7850 Buzzballz LLC 57 (972) 242-3777 www.buzzballz.com Cash Depot 11, 13 (800) 776-8834 sales@cdlatm.com www.cdlatm.com Cenex (CHS Inc.) 77 https://www.cenex.com/chsinc/about-chs CONEXXUS 81 Conexxus.org Diageo Beer Company USA 55 www.diageo.com DMF Bait Company 75 https://dmfbait.com/ E&J Gallo CNP https://www.gallo.com/ f’real foods CNP https://www.freal.com/ Goya Foods Inc. 27 https://www.goya.com/en/ Hunt Brothers Pizza 19 https://www.huntbrotherspizza.com/ Inter-Continental Trading USA Inc. 53 https://ictusainc.com/ Johnsonville Sausage Co. 63 https://johnsonville.com/ KeHE Distributors 49 https://www.kehe.com/ Krispy Krunchy Foods LLC 65 https://krispykrunchy.com/ Liggett Vector Brands Inc. (Montego) Inside Back Cover (877) 415-4100 www.liggettvectorbrands.com LSI Industries Inc. 39 https://www.lsicorp.com/ Monster Energy Company CNP https://www.monsterenergy.com/ NACS Convenience Retail Awards Asia-Pacific 45 convenience.org/csa NACS Convenience Voices. 80 www.convenience.org/voices NACS Show 2023. 93 www.nacsshow.com/notify PIM Brands 17 https://pimbrands.com/ Placon 61 https://www.placon.com/ Premier Manufacturing 5 (636) 537-6800 www.gopremier.com Shipley Do-Nuts CNP shipleydonuts.com Swedish Match North America LLC 15, 41, 47 (800) 367-3677 www.smna.com The Hershey Company Back Cover https://www.thehersheycompany.com/en_us/home.html Tippmann Affiliated Group 23 https://tippmanngroup.com/ Trion Industries 3 (800) 444-4665 www.triononline.com TY INC. CNP https://shop.ty.com/
Consumers are looking for flavor that is intriguing and fun—something they may not have seen before.”

Communication Really Is Key

Last fall, NACS opened the floor to convenience retail employees and gave them the opportunity to share candid feedback. Employees provided invaluable perspectives on their role in the store, revealing both highlights and pain points.

Many employees shared that they take pride in providing a safe and welcoming experience for their customers and communities. Employees viewed their connection with the community as strong but felt that their relationships with their senior leadership teams could be better.

Many store staff indicated they felt disconnected from senior leaders, especially when decisions or changes that affected their role were made. In the survey, 62.6% of employees indicated they believed that senior leaders value store staff perspectives, and a similar percentage

(61.7%) agreed that senior leadership effectively communicates why decisions impacting store staff are made. Sixty-two percent of employees surveyed indicated that senior leadership effectively empathizes with store employees.

The connection between store staff and senior leaders could use some mending—and not just a quick stitch. Further analysis of the response data revealed that employee relationships with senior leaders have the most substantial influence on employee engagement. In fact, interactions with senior leadership have 1.3 times as much impact on employee engagement as interactions with direct supervisors.

As convenience retailers traverse a competitive hiring field fraught with rising labor costs and high turnover, successful leaders know it is often the intangibles that make the difference in employee satisfaction.

BY THE NUMBERS 96 APRIL 2023 convenience.org
HOW
% agree/strongly agree with each statement
STORE STAFF VIEW SENIOR LEADERSHIP
Understands the job/role played by store staff Provides a clear link between company goals and day-to-day work Values store staff perspective Empathizes with front-line store employees Communicates why decisions are made that impact store staff
More than a third of store staff believe senior leaders could be more effective at connecting company goals to their day-to-day work.
melitas/Getty Images
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