NACS Magazine August 2023

Advancing Convenience & Fuel Retailing

AUGUST 2023 DIGITAL SIGNAGE Screens create a new shopping experience LESSONS LEARNED In EV-heavy Norway, retailers are adapting

Future Beer Peer Into the of

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ONTENTS NACS / AUGUST 2023 FEATURES

28 The Beer Cooler

58 EV Observations

of the Future

From Norway

Experts predict what the beer assortment and beer-buying experience of the future will be.

The Scandinavian country has more EVs per capita than anywhere. What has that meant for convenience retailers?

36 Winning Together

at the NACS Show Join thousands of your convenience retail peers and industry stakeholders at the 2023 NACS Show.

41 Do Better:

Advancing the Food Safety Narrative

66 Knowing

Your Shoppers This Q&A is brought to you by AdvantageSolutions.net.

The key to success in retail is having actionable insights about your customer.

Food safety crusader Darin Detwiler discusses what is going right and where there are missteps in food safety performance.

68 80 The Need for Speed Convenience Retail POS enhancements are improving the in-store experience for customers.

76 Envisioning an

Electric Future This article is brought to you by ChargePoint.

Here’s why you should make tomorrow’s EV plans a focus for today.

46

is Global and Local

Insights and information flowed freely at Convenience Summit Europe in Dublin.

88 Making Convenience More Convenient This Q&A is brought to you by Modisoft.

94 Inside Non-

Tobacco Flavored Disposables This Q&A is brought to you by Bidi.

Look Here!

Eye-catching, attention-grabbing digital signage can help retailers boost sales and draw in customers.

STAY CONNECTED WITH NACS @nacsonline facebook.com/nacsonline instragram.com/nacs_online

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.

linkedin.com/company/nacs NACS AUGUST 2023 1

ONTENTS NACS / AUGUST 2023

DEPARTMENTS 06

From the Editor

08

The Big Question

10

NACS News

18

Convenience Cares

20 Inside Washington

In August, members of Congress head back home, making grassroots action more important than ever.

IT’S A FACT

$3,417

26 Ideas 2 Go

Air Guitar mixes hospitality with high-end convenience to create a destination store.

the average per store, per month sales of packaged sweet snacks in 2022 CATEGORY CLOSE-UP PAGE 96

90

Cool New Products

92 Gas Station Gourmet Red Dirt Jack’s is a family store with great food and a fun mascot.

96 Category Close-Up Increased prices haven’t soured America’s appetite for packaged sweet snacks.

104 By the Numbers

PLEASE RECYCLE THIS MAGAZINE 2 AUGUST 2023 convenience.org

The presence of an article in our magazine should not be permitted to constitute an expression of the association’s view.

/ AUGUST 2023 EDITORIAL

NACS BOARD OF DIRECTORS

Jeff Lenard V.P. Strategic Industry Initiatives (703)518-4272 jlenard@convenience.org

CHAIR: Don Rhoads, The Convenience Group LLC

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

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

Batya Levy Editor (703) 518-4247 blevy@convenience.org

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

CONTRIBUTING WRITERS Amanda Baltazar, Kate Bernot, Chrissy Blasinsky, Sarah Hamaker, Al Hebert, Magnar Mokkelgard, Pat Pape, Renee Pas, Jerry Soverinsky

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

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

Terry Gallagher, Gasamat Oil/ Smoker Friendly; 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; Robert Razowsky, Rmarts LLC; Richard Wood III, Wawa Inc. SUPPLIER BOARD REPRESENTATIVES: David Charles Sr., Cash Depot; Kevin Farley, GSP STAFF LIAISON: Henry Armour, NACS GENERAL COUNSEL: Doug Kantor, NACS

DESIGN Imagination www.imaginepub.com

ADVERTISING

NACS SUPPLIER BOARD

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

CHAIR: Kevin Farley, GSP

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

CHAIR-ELECT: David Charles Sr., Cash Depot VICE CHAIRS: Josh Halpern, JRS Hospitality; Vito Maurici, McLane Company; Bryan Morrow, PepsiCo Inc. PAST CHAIRS: Brent Cotten, The Hershey Company; Drew Mize, PDI Technologies MEMBERS: Tony Battaglia, Tropicana Brands Group; Alicia Cleary, Video Mining LLC; Jerry Cutler, InComm Payments; Jack Dickinson, Dover Corporation; Matt Domingo, Reynolds; Mark Falconi, Oberto Snacks Inc.; Mike Gilroy, Mars Wrigley;

Danielle Holloway, Altria Group Distribution Company; Jim Hughes, Krispy Krunchy Foods 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

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

COME TOGETHER. DO MORE. Join us at conveniencecares.org

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

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

Dog parks can pull in EV roadtrippers.

Looking Into the Future

N

6 AUGUST 2023 convenience.org

the Georgia World Congress Center in Atlanta to explore everything related to convenience retail and fueling. I feel very confident in this prediction because that’s the time and place for the annual NACS Show. This issue has an insightful sneak peek featuring Darin Detwiler, who will keynote the Food Safety Forum.

What are your predictions for the future of convenience retail? Drop me a note at bnussbaum@convenience.org.

Ben Nussbaum Editor-in-Chief

We can catch a fuzzy glimpse of one potential future.” mgstudyo/Getty Images

o one knows what the future holds, but one thing seems likely: more dog parks.

In Norway, 80% of new cars sold are EVs. By studying this Scandinavian country, we can catch a fuzzy glimpse of one potential future for convenience retail in the United States. That’s where dog parks come in. They’re a way to lure in travelers who plan to spend 20 or more minutes charging, reports Magnar Møkkelgård, a c-store leader in Norway who is part of the NACS global team.

Møkkelgård’s article is called “EV Observations From Norway.” Let me know what you think of it.

Here’s another probable future outcome: c-stores that are buzzing with digital messaging. “People are in the digital age now and expect a digital experience,” Mark Meisner of Kwik Trip told Amanda Baltazar for the article “Look Here!” which covers all things digital signage. I like that thought. It cuts to the heart of why this sort of signage is more than a one-for-one replacement for static signs. Instead, digital signage is a way to create a different sort of shopping experience. I’m excited to see how different retailers explore what that means.

Yet another prediction, this one more specific: In the first week of October, more than 20,000 people will gather at

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UP FRONT THE BIG QUESTION

What are you most proud of from your time in the convenience retailing industry?

 John Roscoe (far left, at a NACS meeting in Dallas, Texas) is one of the retailers who founded NACS on August 14, 1961. He played an instrumental role in many of the innovations related to the early growth of the industry, including popularizing self-serve gasoline. He lives in Prescott, Arizona, with his wife Marilynn and wrote this after his daily eight-mile bike ride.

I’m proud that my small store experience forced me to learn and understand the principles of successful retailing. When I started our business in Denver in 1957, I copied a concept that was successful in Texas. We thought we had a business plan we could accomplish and it would lead us to riches. It wasn’t that simple.

We learned that we needed to work hard and try out new things or go broke. You learn when things are intense. We developed new programs and strategies when we found out that what we were doing wouldn’t pay the way. We were innovative because we 8 AUGUST 2023 convenience.org

had to be. We made a concept that was profitable in warm-weather states (where operators would open each day by rolling up bay doors) into a retail offer that could work anywhere.

Chance got us into the gasoline business in 1964, and gasoline changed the business. It took the industry 10 to 15 years to learn what I learned in one day—and to embrace it. In fact, when I presented the concept of self-service gasoline to the industry at the 1964 NACS Annual Meeting, it was not of great interest.

I was in a panel discussion along with someone who operated a meat market in a session called “New Concepts of

Merchandising for Profit.” After our presentations, all of the questions from the floor were directed to the meat market operator. Gasoline sparked no one’s interest.

However, gasoline changed our business. You could add two pumps to a store and increase margin dollars by about 50%. The total cost was about $10,000 and the sale of gasoline increased store traffic. It took the same real estate and the same personnel. Convenience stores were in the other guy’s business without absorbing the other guy’s costs.

Convenience stores became the lowcost provider of gasoline.

Sixty-two years ago, I was invited to attend a meeting in Kansas City with 12 other drive-in store operators to create a national association to represent their interests. The group was set to name the association with the term “bantam stores” or “drive-in market stores.” I held out until we adopted the name “convenience stores.”

Today, I’m not sure I did the industry a favor. We’d all be better off with another name. I think the industry should concentrate on selling things at the lowest price possible and giving convenience away. Volume generally begets profits, like with gasoline.

It doesn’t have to be done in one move. The easy things can be done first. Stores can easily become the place people buy beer and other beverages in volume, instead of just on a convenience basis. Price and promotions are key. Stores can become the basic supplier of things that people use every day. They can become different kinds of stores. Let efficiency of operation become your philosophy for profit.

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UP FRONT NACS NEWS

Mark Finn of Daybreak Portumna holds the NACS European Convenience Retailer of the Year Award.

Convenience Retailing Leaders Recognized at NACS Convenience Summit Europe Awards were given for overall excellence, sustainability and technology.

10 AUGUST 2023 convenience.org

NACS recognized European convenience retailers for their achievements in sustainability, overall excellence and use of technology. The awards were presented during the NACS Convenience Summit Europe held in Dublin.

Daybreak Portumna won the coveted NACS European Convenience Retailer of the Year Award. The award was sponsored by Dover Fueling Solutions.

“How Daybreak delivers fresh, gourmet foodservice and infuses technology to improve business operations and customer and employee experience makes it a worldclass convenience retail destination deserving of the distinction,” said Manwinder Toor, senior director, global key accounts at DFS. Located on the main Loughrea Road into Portumna, a rural town in Co. Galway with a population of 1,500, Daybreak Portumna is operated by Mark and Anne Finn.

The store was reopened in September 2022 to expand its extensive foodservice offer and seating area.

Launched in 2006, Daybreak stores are independently owned by local retailers who understand and respond to the needs of their communities. Daybreak is operated by Musgrave Wholesale Partners and currently has more than 300 locations in Ireland.

Circle K Norway received the NACS European Convenience Retail Technology Award. The award was sponsored by Gilbarco Veeder-Root.

“It is exciting to see the award go to Circle K Norway, who has been an industry leader in driving the retail forecourt of the future, leveraging technology and building partnerships to enhance the experience for its customers,” said Trevor Sinkinson, managing director at Gilbarco Veeder-Root, Europe.

Norway is the leading country when it comes to electric vehicles as a percentage of the fleet, and Circle K has become one of the country’s most aggressive developers of fast charging EV networks. The company has so far prioritized building its own chargers at Circle K stations in cities and along Norwegian roads, with more than 100 stations with chargers and approximately 800 chargers at its own stations.

Through the Circle K Charge app, drivers access an overview of Circle K’s charging stations and available char-

gers. Customers can also follow the charging process and see a full overview of charging time, price and battery status. Circle K’s charging offer is not limited to its service stations and convenience stores—customers can charge at home, too. Circle K sells one of Norway’s more popular at-home chargers, manufactured by Easee.

Not only is Circle K recharging its customers’ vehicles, it is also keeping their cars clean. In Norway, Circle K launched a car wash subscription program accessible through the retailer’s mobile app.

In 2021, Circle K Europe won the NACS European Convenience Retail Technology Award for its Pay by Plate payment technology used for fuel purchases. Circle K was the first fuel retailer to introduce Pay by Plate across Europe at scale, allowing customers to pay for fuel using their license plate for a frictionless experience. eFuels Forum & eFuel GmbH, based in Hoya, Germany, took home the NACS European Convenience Retail Sustainability Award. The award was sponsored by The Coca-Cola Company.

“Combatting climate change is a global effort, requiring action from communities all around the world.

As proud sponsors of this award, we

applaud eFuel’s dedication to reducing CO2 emissions and driving sustainability forward, a commitment we share as we work toward taking well-informed, decisive action to meet the challenges of climate change head-on,” said Kevin LeMoyne, head of convenience retail division, North American operating unit, The Coca-Cola Company.

As a joint venture of 30 medium-sized German petrol station operators and energy traders, eFuels Forum & eFuel GmbH aims to make a decisive contribution to the future-oriented and climate-neutral realignment of business models. It focuses on the production of e-fuels, electricity-based synthetic fuels that are produced from renewable energies such as solar power, wind power or hydropower. Because the burning of e-fuels releases just as much CO2 as was extracted from the air during production, these synthetic fuels are CO2-neutral if the electricity is produced from renewable energies.

E-fuels are increasingly seen as a global alternative to electric vehicles, which until now have been the only option for achieving the decarbonization objectives set by countries throughout Europe.

José Barreiro, executive director of Mobility Iberia, Repsol, is this year’s recipient of the NACS European Convenience Industry Leader of the Year Award.

“I’m honored and grateful to receive an award that, rather than a source of satisfaction, is a motivator to continue pushing forward with what we all do best: serving our customers,” said Barreiro.

Over the past few years, Barreiro has led the transformation of service stations in the Repsol group, including the launch and consolidation of the Waylet loyalty and payment application, which allows more than six million users to easily refuel and recharge at Repsol’s network of service stations and electric recharging points in Spain.

NACS AUGUST 2023 11

UP FRONT NACS NEWS

Transportation Energy Institute Releases New Consumer Survey Report Will consumers embrace the transition to EVs? “Consumer Survey: Driving Behavior and Alternative Vehicles” from the Transportation Energy Institute, formerly known as the Fuels Institute, seeks to better understand consumer sentiment by exploring how consumers use their vehicles today, what type of vehicle they might purchase next and how they view the growing market of EVs. Policymakers throughout the world, along with global automakers and other key stakeholders, are putting into place plans and strategies to increase the market share of EVs, but the success of these efforts will ultimately depend on the decisions of consumers. This new report provides valuable insight into what that final decision-maker wants and needs.

12 AUGUST 2023 convenience.org

“What consumers say they might be willing to consider in the future is a good indicator of what they think today and how the market can satisfy their needs and expectations, but how they will actually proceed in the future is highly uncertain,” stated John Eichberger, executive director of the Transportation Energy Institute.

“Past surveys indicating an expected pattern of behavior have not always been reliable predictors. That is why it is valuable to understand current consumer behavior and evaluate how well a new option might integrate into existing lifestyles.”

NACS AUGUST 2023 13

UP FRONT NACS NEWS

Member News RETAILERS

Filipe Da Silva was appointed executive vice president and CFO at Alimentation CoucheFilipe Da Silva Tard Inc. Da Silva started his career with TotalEnergies, the French energy conglomerate, in Argentina, then joined the Carrefour group, for whom he worked in Buenos Aires, Colombia, India and Indonesia. He later joined Groupe Exito, one of South America’s largest big box retailers, whose largest shareholder was the French retail giant Casino. Filipe then joined Walmart’s Central America subsidiary as CFO, later becoming Walmart Canada’s CFO. SUPPLIERS

Jamie Banks now serves as director of business development for AccuStore, a GSP company. Banks Jamie Banks brings her extensive experience in retail marketing and retail operations to the AccuStore user community. For more than 13 years, she worked at Perry Ellis International, eventually rising to the role of senior manager of shops & retail development. Her previous role at GSP was as the AccuStore Marketing Manager. She has also held retail marketing positions at Crossmark and Trulieve.

PIM Brands Inc. has named Philip Davis as its new chief supply chain officer. Davis will be based at the Philip Davis company’s Park Ridge corporate headquarters and will have overall responsibility for all supply chain functions. With over 20 years of experience, Davis brings a wealth of expertise to PIM Brands, previously serving as head of supply chain for the Americas at Godiva Chocolatier, as well as in leadership positions at Fleet Farm and PwC’s consulting practice.

Matthew Prail has assumed the role of chief human resources officer at PIM Brands Inc. He brings a diverse Matthew Prail background in HR leadership roles at prominent companies such as Mars Inc., Accenture and Kraft Foods, with expertise spanning from business partnership and organizational effectiveness to change leadership and more.

DNY59/Getty Images

Matt Smith now serves as manager of business development at PSD Codax, part of ICS and Matt Smith OPW Vehicle Wash Solutions.

In this role, Smith will be directly responsible for sales and marketing efforts in the United Kingdom, Ireland and the Scandinavian markets, as well as overseeing PSD Codax’s growth in the European market. Smith joined PSD Codax in 2020.

Autumn Welch now serves as vice president of product at AccuStore, a GSP company.

Welch started Autumn Welch her career in project management at Great Big Pictures before it became a GSP company. Welch advanced to director of project management, then moved into product development at GSP, first as product owner, then as a product manager. Welch has overseen the design and development of the AccuStore platform as its user base has grown to include leading wireless, specialty, grocer and big box retailers.

14 AUGUST 2023 convenience.org

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NACS AUGUST 2023 15

UP FRONT NACS NEWS

NACS Welcomes Three New Team Members Siara Corprew joined NACS as a member services specialist.

Corprew spent the past seven years in the customer service industry, most recently at the Four Seasons at Historic Virginia.

She attended Longwood University and earned a B.A. in communication studies with a digital media concentration.

Siara Corprew

Batya Levy joined NACS as an editor. In this role, she will edit and write copy for NACS’ award-winning media properties, including NACS Magazine, NACS Daily and Fuels Market News Magazine. Most recently, Levy served as managing editor for First Page Sage. She earned a B.A. in general studies from New College of Florida and an M.A. in creative writing from Nottingham Trent University.

Batya Levy

Jay Lee joined NACS as its qualitative survey research analyst.

He comes to NACS with extensive experience in survey design and data analysis, with previous experience at Ipsos North America and Team One USA. Jay earned a B.A. and Accelerated M.A. in anthropology from George Mason University.

Jay Lee

Calendar of Events 2023

OCTOBER NACS Advanced Category Management Certification Course October 03 | Georgia World Congress Center | Atlanta, Georgia NACS Food Safety Forum October 03 | Georgia World Congress Center | Atlanta, Georgia NACS SHOW October 03-06 | Georgia World Congress Center | Atlanta, Georgia

NOVEMBER NACS Innovation Leadership Program at MIT November 05-10 | MIT Sloan School of Management | Cambridge, Massachusetts NACS Women’s Leadership Program at Yale November 12-17 | Yale School of Management | New Haven, Connecticut

2024

FEBRUARY NACS Leadership Forum February 13-16 | The Ritz-Carlton Amelia Island, Florida MARCH NACS Convenience Summit Asia March 05-07 | Signiel Seoul Hotel Seoul, Korea

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

16 AUGUST 2023 convenience.org

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CONVENIENCE CARES

Murphy USA Raises $6 Million for Boys & Girls Clubs of America M urphy USA Inc. announced its Great Futures Fueled Here campaign for Boys & Girls Clubs of America has raised $6 million since its launch in 2020.

The customer round-up campaign, which takes place at all Murphy USA, Murphy Express and QuickChek sites across 27 states, supports Boys & Girls Clubs of America’s mission of supporting all young people reaching their full potential as productive, caring, responsible citizens.

The campaign gave customers the opportunity to make a monetary contribution of $1, $3, $5 or $10, or round up

18 AUGUST 2023 convenience.org

their purchases to the nearest dollar amount at checkout. The funds raised during the campaign benefit Boys & Girls Clubs in the same communities served by Murphy USA and QuickChek locations.

“Giving back is part of our broader mission and commitment as an organization to our team members, customers and communities. We are passionate about providing opportunities for the next generation,” said Andrew Clyde, president and CEO of Murphy USA. “This financial support helps to provide youth in our communities with the essential tools for cultivating a successful future.”

Boys & Girls Clubs of America works to ensure that all kids and teens have the same opportunities to succeed in life. Programs at Boys & Girls Clubs support learning by providing enriching experiences after school and during the summer. The organization serves 3.6 million young people annually, offering resources they need to achieve a great future—including a safe, supportive environment with caring adult mentors.

“The Great Futures Fueled Here campaign has been instrumental in helping Boys & Girls Clubs provide programming and resources that are making a real difference in the lives of youth,” said Jim Clark, president and CEO, Boys & Girls Clubs of America.

“We are incredibly grateful for the continued partnership with Murphy USA and the many contributions from its customers that have resulted in such an incredible milestone.”

In The Community Every year, the convenience retail 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.

WAWA HONORS 25 VIRGINIA VOLUNTEERS 1 In celebration of Wawa’s 25th anniversary of opening its first store in Virginia, Wawa Inc. and The Wawa Foundation are honoring 25 volunteers who support nonprofits through the Virginia Local Hero Award, a recognition that offers nonprofit organizations 1 the opportunity to nominate a volunteer who’s making an impact in Virginia. Each of the 25 award recipients receives a $1,000 contribution given in their name to their affiliated nonprofit organization. The 25 finalists will be announced with a ceremony at the grand 2 opening of a Wawa in

Company, and GATE customers raised $35,000 for the American Red Cross.

Funds were raised in GATE convenience stores in Florida, Georgia, North Carolina and South Carolina through the company’s semiannual paper icon campaign. Customers donated $1 and signed their name on a paper icon displayed in the GATE store.

Funds were allocated to Red Cross organizations in the communities where the funds were collected.

WILLS GROUP VOLUNTEERS SUPPORT FAMILIES 3 Wills Group employees had the opportunity to make an immediate positive impact by volunteering at the Southern Maryland Food Bank as part of the Wills Group Nourishing Children & Families Signature

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

Program. Last May, 10 dedicated Wills Group team members assembled 150 boxes of fresh produce and 150 bags of frozen meat. Three-quarters of the food went out to churches and food banks that same day, while the remainder was distributed through the Southern Maryland Food Bank the following day.

GETGO CAFÉ AND MARKET SUPPORTS HIGH SCHOOL SPECIAL NEEDS STUDENTS 4 GetGo Café and Market donated $2,500 to the Rocket Fuel Café in Adams Township, Pennsylvania. The Rocket Fuel Café, in the Mars Area School District local high school, is run by students with special needs.

Funds support special needs students with their prom and field trips.

3

Henrico, Virginia.

GATE PETROLEUM COMPANY RAISES $35,000

4

2 The GATE Foundation, the philanthropic arm of Jacksonville-based GATE Petroleum

NACS AUGUST 2023 19

INSIDE WASHINGTON

August Recess Refresh Members of Congress are heading back home, which means grassroots action is more important than ever.

BY MARGARET HARDIN

Rep. Diana Harshbarger (R-TN) at Weigel’s

T

he month of August in Washington, D.C., moves a little bit slower than rest of the year. Why is that, you might ask? Members of Congress on Capitol Hill pack up their bags and return to their home states and Congressional districts for August recess. The word “recess” might call to mind fond memories of playtime with friends in elementary school. There’s no hopscotch or dodgeball for legislators, however.

Recess means it’s time to work.

Many lawmakers return home for August recess to meet with and listen to the needs of their constituents—after all, we are their bosses. Throughout much of the year, the primary way to get in contact with your Member of Congress is either via email or over the phone. But August is prime time for constituents to get in front of their Members of Congress and develop those relationships in person.

So how can advocates for the convenience and fuel retailing industry take advantage of the August recess? NACS recommends a number of ways to connect with your lawmakers when they’re back home.

MEET IN THE DISTRICT OFFICE One of the best ways to spend quality time with your legislators is to meet with them in their district or state office. It’s hard to match the face-to-

20 AUGUST 2023 convenience.org

Rep. Mike Johnson (R-LA) at Y-Not Stop

face connections between lawmakers and the people they represent. Meeting in person and in the district is a great way to show your Member of Congress that you care deeply about an issue. For example, NACS is pushing hard for the passage of the Credit Card Competition Act of 2023, which would introduce competition into the credit card marketplace. So if you want to discuss swipe fees and how they affect your business, you could bring in printed statements to show the Member firsthand how much in swipe fees you pay each year or how quickly they’ve risen over the past few years. NACS can also make this easy for you—just reach out to me, Margaret Hardin, at mhardin@convenience.org,

Convenience retailers meeting with Rep. Jackie Walorski (R-IN)

Rep. Brian Mast (R-FL) at RaceTrac

and I can help schedule the meeting for you and provide talking points for any of our issues.

ATTEND A TOWN HALL MEETING If you aren’t able to make a one-on-one meeting work for your schedule, you might find it valuable to attend one of your legislator’s town hall meetings.

Most Members of Congress host town hall meetings several times a year, especially in August, to meet with constituents and give an update on their work

in D.C. Town hall meetings typically consist of two parts: the Member will speak for about 15-30 minutes about the goings on in Washington, and then they will open up the floor to questions from constituents in the audience. Use this as an opportunity to ask your legislator about a particular issue affecting your store or a piece of legislation they should support. And don’t leave early! If you aren’t able to get a chance to ask your question, most Members of Congress and their staff stick around for a few

Ask your legislator about a particular issue affecting your store. ... And don’t leave early!

NACS AUGUST 2023 21

INSIDE WASHINGTON

Joe Sheetz meeting with Sen. Joe Manchin (D-WV)

Senator Roger Marshall (R-KS) at QuikTrip

It’s critical that they understand the convenience and fuel retailing industry.

22 AUGUST 2023 convenience.org

Rep. Bill Johnson (R-OH) at Speedway

minutes afterwards to take additional questions. Remember to bring your business cards so that the Member or their staff are able to follow up with you in the future as well. To find out when legislators are hosting a town hall, follow their Congressional website or sign up for their email alerts.

NACS IN STORE We might be biased, but the most fun way to engage with your lawmakers during the August recess is to host them in a NACS In Store event. Our elected representatives make the laws that can help or hurt your business, so it’s critical that they understand the convenience and fuel retailing industry and are familiar with your business and the communities you serve to help ensure that their actions impact your business positively.

The NACS In Store program provides excellent opportunities for legislators to connect with local business owners and their employees as well as constituents and to experience firsthand how convenience stores operate and serve constituents in their home states.

During a NACS In Store, there is even an opportunity for the legislator to have a “behind the counter experience” to interact with members of the community and have conversations with constituents about issues important to them. Through conversations with store management and associates, along with customers, they can gain a better understanding and appreciation for not only the store in which they are working, but also for the broader convenience and fuel retailing industry as well.

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INSIDE WASHINGTON

NACS is always here to support your efforts to develop a relationship with your Members of Congress.

Through the NACS In Store program, elected leaders across the country join 2.44 million other people who work in the convenience store industry and serve an estimated 165 million Americans every day. And when they return to D.C., Members are better informed and better equipped to make decisions about legislation and resulting regulations that can affect our industry.

If you are interested in hosting a Member, let me know. And if you have an in-person meeting with a Member, make sure they know they’re invited to your store for a NACS In Store experience. NACS assists with all the preparation and making sure the event goes smoothly.

••• We know that it is a commitment to take time away from your store to meet with your Members of Congress. But we also want to assure you that taking advantage of the August recess is well worth it, as it’s an investment in your business and the future of our industry.

NACS is always here to support your efforts to develop a relationship with your Members of Congress, and we are happy to provide any assistance you may need to have productive meetings.

Our industry’s voice is only as impactful as our members make it—by getting involved at the grassroots level, people like you can transform and revolutionize our industry.

Margaret Hardin is the NACS grassroots manager. She can be reached at mhardin@ convenience.org.

24 AUGUST 2023 convenience.org

ONE VOICE This month, NACS talks to

Terry Gallagher, President, Gasamat Oil Corp/Smoker Friendly.

What role in the community do you think convenience stores should play?

We should be good neighbors in our communities— clean, well-lit and safe stores that provide our consumers a shopping opportunity with a number of product choices to fulfill their needs, at fair prices, with quick and friendly service.

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

NACS members do business in an environment that has products and services that are highly regulated. It’s imperative we have voices and relationships in Washington, D.C. NACS provides a path to both Congress and the regulatory agencies that allows us to advocate for our businesses in many meaningful ways to either prevent, change or create legislation or regulation that impacts our industry.

What federal legislative or regulatory issues keep you up at night (with respect to the convenience store industry)?

I sleep pretty well at night, but if there is one agency that I worry about it would be the FDA and the Center for Tobacco Products. Cigarettes, tobacco and nicotine products as a category are extremely important to the profitability of our stores and trade channel, yet the people charged with regulating them are prohibitionists and hate the products. Not a great mix!

What c-store product could you not live without?

I guess the old gas pumper in me is coming out!

Fuel … I love gasoline, diesel and all fossil fuels! I love the people that work throughout the industry to provide these products! Inside the store I’d have to say candy. I like all kinds of candy!

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IDEAS 2 GO

The DeMarcos (left) and Seitzes.

Not Going Through the Motions

Name of company: Air Guitar Year founded: September 2021 # of stores: 1 Website: www.airguitar4life.com

26 AUGUST 2023 convenience.org

Air Guitar mixes hospitality with high-end convenience to create a destination store.

BY SARAH HAMAKER Most convenience stores don’t have curated music, but with a name like Air Guitar, it’s no surprise music plays a big part in the Gilbert, Arizona, store. “We put in a fantastic AV system to provide concert-level sound and a party/club vibe to our store,” said Eric Seitz, co-owner of Air Guitar, which he founded with business partners Craig and Kris DeMarco. “We wanted to create a place where people could come hang out while listening to great music—a kind of community center for the neighborhood.”

Seitz, who owns 21 other Phoenix-area convenience stores, teamed up with the DeMarcos, who are partners in 30 restaurants across the United States, to build Air Guitar. “We’ve been friends a long time and had been talking about this idea we had

to combine hospitality with high-end convenience in a bodega setting,” Seitz said. “So when we had the opportunity to purchase this corner lot, we jumped at it.”

AESTHETICS MATTER To both Eric and Elissa Seitz and the DeMarcos, the Air Guitar concept started with the building itself. “We built this from the ground up—the store itself is an award-winning building, something we’re very proud of,” Seitz said.

The 5,500-square-foot store has floor-to-ceiling glass windows to bring lots of natural light into the interior space while polished concrete, solid surface counters and raw steel provide a backdrop to the retail space. Low shelving gives the interior an open feeling, too. In addition, a canopy covers 9,000 square feet of patio with seating for 100.

The interior highlights the fresh food Air Guitar offers customers. “Our foodservice is a focal point of the store, with some indoor seating as well,” Seitz said. The store has a full-service coffee bar and a fresh-baked pizza program with all dough and sauces made onsite.

An outside vendor provides a dozen flavors of ice cream for hand scooping, while another local company sells cookie dough to mix in with the ice cream.

The store partners with a local bakery for fresh pastries and grab-and-go sandwiches and salads. Another vendor handles sushi, which is made on the premises every day.

For the retail aspect of the store, the Seitzes and the DeMarcos devised a mix of one-third traditional c-store items, like candy, salty snacks and energy drinks; one-third natural grocery products; and one-third local items and apparel. “We wanted the merchandise mix to be kind of like a Whole Foods or Trader Joe’s along with traditional convenience store items,” Seitz said.

Air Guitar stocks a wide variety of curated beverages. For example, the extensive wine and beer section has newer craft beers as well as national brands. On fountain, Pepsi and Coca-Cola products exist side by side with craft sodas.

For apparel and local goods, the pair seek out unusual and fun products. “We have our own custom line of apparel with the Air Guitar logo on t-shirts and hats, and we also work with local retailers to do pop-ups inside our store,” Seitz said. For instance, this summer, the store featured a pop-up shop for electric scooters.

CUSTOMER CONNECTION “We are surrounded by restaurants, retailers, services, mixed-use residential buildings, schools and a cultural center,” Seitz said. “That’s helped get the word out about our store, and we’ve grown organically without needing a full marketing program.”

The store puts on community events every few months, such as activities geared toward families on Halloween and Mother’s Day. “We’ll have eight to 15 vendors and face painting for the kids, plus give away some merchandise and food—it’s fun for everyone,” Seitz said.

While the owners hope to open future Air Guitar locations, for now they’re content to concentrate on making this location sing. “We felt it was so important to build this store with the guest experience top of mind,” Seitz said. “We hope everyone who visits feels we care about putting the customer first.”

BRIGHT IDEAS One of the more unusual offerings at Air Guitar is its fresh flowers. Five to seven days a week, a local farmer brings in homegrown flowers to stock the selfserve stand. “It’s right in the middle of our store and the farm is a wonderful partner,” said owner Eric Seitz.

“We also carry some of its fresh produce and local honey, too.”

Air Guitar sells hundreds of flowers a week yearround. On special occasion days, such as Valentine’s Day and Mother’s Day, it sells thousands of flowers to customers. “Our fresh flowers offer our customers a little something extra they might not expect at a convenience store,” he said.

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’ve profiled, go to www.convenience.org/Ideas2Go. NACS AUGUST 2023 27

THE

BEER

COOLER OF THE

FUTURE Experts predict what the beer assortment and beer-buying experience of the future will be.

BY KATE BERNOT

28 AUGUST 2023 convenience.org

C

onvenience store beer coolers have never been more vibrant or vital than they are today. Fully one-third of all maltbased alcohol sold in the U.S.—that is, beer and hard seltzers and flavored malt beverages— moves through convenience stores.

Such strong momentum shows no signs of slowing in the future, either. Despite fluctuations in the economy and shifting consumer behaviors in the aftermath of the COVID state of emergency, convenience store beer sales remained resilient during the first half of 2023.

According to Beer Institute sales-to-retailer data, while grocery and liquor stores lost nearly a share point compared to the year prior, convenience stores held their share ground.

“All any of us in this industry need to know is: More beer is sold through the c-store channel than anywhere else,” says Peter Skrbek, CEO of Bend, Oregon-based Deschutes Brewery.

Deschutes is confident in the long-term necessity of convenience stores to not only its sales, but to its priority of reaching new customers. So confident, in fact, that in May the brewery launched its first beer exclusive to the channel. Symphonic Chronic, a 9% ABV double IPA, is available only in 19.2-ounce cans specifically designed for the convenience store shop-

per. The brewery’s national accounts manager, Jamie Semmelmann, spearheaded a strategy to ensure the beer is engineered to meet the specific needs of convenience store shoppers, from the liquid itself to the can design.

“It’s a very tailored product that is really trying to honor what the consumer who’s shopping in the c-store channel is looking for,” Skrbek says.

“Jamie did a lot of hard work on the data front and on engaging our c-store partners on what they’re seeing work in the channel and what they want to see more of.”

Symphonic Chronic is a microcosm of the bright, dynamic future of the convenience store beer cooler. Those doors will continue to display more premium products, bolder flavors and more exciting single-serve options than they have in the past. Trend watchers expect no less than a bonanza in the alcohol cold box in coming years, driven by converging trends in product mix, consumer behavior and technology.

“Beer coolers used to be small, gold-plated doors that fog up. Now they’re becoming this almost craft shopping experience,” says Alan Radojcic, vice president of operations for Maintco Corp., a Burbank, California-based company that builds and renovates c-stores and grocery stores. “It’s creating this cool hangout space where you’ll go and spend more time. You’ll see the average sale-per-customer increase. … So that’s where stores will keep going.”

NACS AUGUST 2023 29

You won’t necessarily see 12- and 24-packs of those higher-end The next decade will continue to see a reof the convenience store beer cooler categories.” shaping towards an evolving destination for shopper trial, discovery and exploration. And the best news? That means the future beer buyer is ready to spend.

PRICING AND PREMIUMIZATION On average, cooler doors of alcohol are generating more sales today than they have in years past. Retail sales of alcohol in convenience stores have increased 22% since fiscal year 2019, according to NielsenIQ Retail Measurement Services data analyzed by Joe Sepka, cofounder of Chicago-based 3 Tier Beverages.

But volume has increased just 1% during the same time frame.

30 AUGUST 2023 convenience.org

Premiumization is part of the explanation.

But a more nuanced story of premiumization takes into account product assortment and packaging mix within the alcohol category.

The good news is that those macro trends are likely to persist, even if economic headwinds also persist.

The first factor is product assortment, of which progressive adult beverages (PABs) have been the main story. PABs group together prepared cocktails, flavored malt beverages (FMBs), hard seltzers and winebased cocktails into a fourth category beyond traditional beer, wine and spirits—sometimes referred to as the “flavor category.”

These are premium items on average priced 28% higher per equivalized case than all other beverage alcohol, Sepka says, and they’ve more than doubled their pre-pandemic share of convenience store sales. In 2019, PABs accounted for $2.1 billion in convenience store sales; in 2023, they’re on track to account for $4.6 billion. As PABs continue to increase their share of beer coolers, they’ll simultaneously drive revenue. It’s a similar story for other growing convenience store categories such as imported and craft beer.

“In beer, consumers are drinking the same overall but paying a lot more money via price increase and shifting into more expensive offerings,” Sepka summarizes.

The second factor is packaging mix, which in recent years has moved heavily toward single-serve packages—a high dollar-per-ounce product.

“You won’t necessarily see 12- and 24-packs of those higher-end categories like craft, imports and FMBs, so the growth of those segments have really changed the landscape and are driving a lot of growth within singles,” says Danelle Kosmal, vice president of research at the Beer Institute.

As consumers have proven eager to try new flavor experiences—and willing to spend money to find them—stores’ beer coolers should reflect the shift not only in terms of product mix but in terms of design.

“If you walk in and see this really inviting beer cave, instead of going to a dedicated liquor store, you’re going to say, ‘My convenience store has the selection I want, so I’ll just go there and get everything in one go,’” Radojcic says.

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Those shoppers have never known a world without craft beer, highly flavored beverages and personalized choices.

BROWSING MEETS CONVENIENCE Convenience stores thrive at the intersection of consumer behavior, product mix and physical design. The link between the three has always been strong, says Louisa Iarocci, an associate professor in the department of architecture at University of Washington in Seattle who researches retail architecture.

Therefore, there’s one question that, above all others, will shape what those stores’ beer coolers look like in five or 10 years.

“How will we move and consume things in the future, and what role could the convenience store play in that?” Iarocci says.

There isn’t a singular answer. Historically, shopping quickly for desired items from known brands has been one chief motivation of the convenience store customer. But several factors, including the rise of electric vehicle charging, hybrid work schedules and the premiumization of the alcohol product mix, have turned convenience store beer coolers into a destination for discovery, delight and even browsing.

32 AUGUST 2023 convenience.org

“There’s not a one-size-fits-all approach to a consumer,” says Darren Kite, managing director at Deloitte Digital.

Deloitte Digital research indicates that priorities regarding product mix and variety vary generationally and by income level: 61% of high-income Millennials said they would consider going to another convenience store if it had better convenience items, versus 35% of Baby Boomers. As Millennials continue to increase their spending power, it behooves convenience store beer coolers to reflect their desires. Those shoppers have never known a world without craft beer, highly flavored beverages and personalized choices. These preferences are already shaping beer selections. Imports and FMBs/seltzers have gained nearly 10 share points in convenience stores compared to 2019; craft beer has gained share as well. But with limited shelf space, convenience stores need to be selective about which innovations they designate space to. Driving high rates of sale in shorter periods of time may be the solution.

“As with any kind of innovation, trendy flavors are going to be just that, so managing that in a very specific way will prove out winners,” says Brandon Thurber, director of scan data insights and media measurement at National Retail Solutions. “Stores need the variety because that helps drive the consumers in.”

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Armed with time and premium expectations, other customers are ready to be delighted with new products in beer coolers.

Shoppers’ proclivity for trial and exploration is behind the rise of the single-serve can in convenience stores. A lower price tag creates a lower barrier for shoppers to try a new beer or other alcoholic drink compared to taking the plunge on six packs or multipacks, and with more craft, import and even RTD spirits entries into single-serve cans, there are more premium choices in that format than ever before.

Radojcic says there are ways to design stores to meet the needs of both exploratory and more traditional customers. Stores need to address existing shoppers and what he anticipates will be a growing cadre of “road warriors” who—thanks to hybrid or flexible work schedules—have time to spend browsing beer coolers while their electric vehicles charge outside.

“It’s all about product placement—you have the things you know your consumers are grabbing and going, they’re going to be close to the counter,” Radojcic says.

Armed with time and premium expectations, other customers are ready to be delighted with new products in beer coolers.

The pandemic proved that brands can be built off-premise: The most successful craft beer brand launch ever, New Belgium Voodoo Ranger Juice Force imperial hazy IPA, launched last year primarily in convenience and grocery channels.

RETAIL MEDIA AND BEYOND The adoption of technology by convenience store shoppers isn’t likely to slow in the next decade. From retail marketing to apps to even augmented reality, those shifts will affect how shoppers approach the beer cooler.

For one, the shopping journey may begin before consumers ever set foot in the physical store. Customers who use a store’s mobile app or follow the store on social media may discover promoted beverages that drive them to the store. Integration with loyalty apps is expected to be increasingly critical to alcohol brands’ partnerships with convenience stores.

34 AUGUST 2023 convenience.org

“We’ll continue to see the broader digitization of the guest experience, with aspects around a critical mobile app and broader integration with rewards being paramount,” says Rob Harrold, retail store operations leader and managing director at Deloitte Digital.

This isn’t one-sided, though. As retailers have limited time to build brands, many expect producers to come to them with mutually beneficial promotions and retail media. It’s something that Deschutes is exploring with its Symphonic Chronic launch, with sweepstakes and other point-of-sale media that encourage drinkers to post about purchasing that particular beer at a particular retailer.

“All our retailers have their loyalty platforms … how do we engage the consumer with our product and our retailer so we get that earned media space and everyone owns it together? How does our product support that retailer/consumer engagement?” says Deschutes’ Semmelmann. “It’s about locking in that loyalty.”

Then finally, digitization may come to the physical coolers and endcaps themselves. It’s already at some retailers, particularly grocery stores such as Kroger, which partnered with Cooler Screens earlier this year to bring digital smart screens to 500 stores nationally.

Those screens display advertisements and product information and allow shoppers to interact with the digital merchandising.

Some see a future where multiple technologies—loyalty-integrated apps, digital retail media, augmented reality—converge at the beer cooler.

“You want to be able to walk into the store and know where things are. In the future, with augmented reality, it’ll become even easier,” Radojcic says. “Maybe in an augmented way, it’ll give you a deal on a product it understands you want, and that will all be done through loyalty programs. This can get very catered.”

Regardless of whether augmented reality glasses come to pass, the beer section of the future will look much different than it does today.

Kate Bernot is a beveragealcohol reporter who regularly writes for Good Beer Hunting’s Sightlines and Craft Beer & Brewing Magazine; she is also the director of the North American Guild of Beer Writers.

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Join thousands of your convenience retail peers and industry stakeholders at the 2023 NACS Show.

36 AUGUST 2023 convenience.org

T

he NACS Show is where the global convenience retail community convenes to explore thousands of new products and cutting-edge business solutions. From the 425,000plus square feet of expo to the more than 50 education sessions and four general sessions—and the countless opportunities for building relationships—you will find exactly what your stores need to deliver excitement and retail excellence to your customers.

Here’s what you can expect to experience and find at this year’s NACS Show, taking place October 3-6 at the Georgia World Congress Center in Atlanta.

NACS AUGUST 2023 37

DIVIDE AND CONQUER: NACS SHOW EXPO With more than 425,000 net square feet of expo to cover and more than 1,200 exhibiting companies showcasing their products and industry solutions, retailers are bound to find the best ideas that can take their stores and offers to new levels.

The expo is categorized into five areas: • In-Store Merchandise • Technology • Facility Development & Store Operations • Fuel Equipment & Services • Food Equipment & Foodservice Programs WHAT’S COOL AND NEW For nearly two decades, the Cool New Products Preview Room has been showcasing what’s innovative and exciting for convenience retail. Be sure to make a stop in the Preview Room for an up-close look at the latest trends, what’s fresh in the channel and the must-haves for your stores.

Retailers can also be the first to explore the latest merchandise, technologies and other fun and unique c-store offers in the New Exhibitor Area. It opens one hour earlier than expo hours, giving retailers early access to connect with companies that are entering the convenience channel.

TOP-NOTCH EDUCATION There’s no shortage of opportunities for our industry: new technologies and innovative applications, foodservice and food safety, recruitment and retention strategies, financial acumen, category management—the NACS Show education sessions have it all.

This year’s education session lineup provides valuable insights that can help you find solutions to growing your business. The 50-plus sessions were developed by the NACS Convention Content Committee to deliver relevant and industry-specific content for NACS Show participants.

38 AUGUST 2023 convenience.org

NACS Show Schedule (Subject to change; visit www.nacsshow.com) Tuesday, October 3 7:30 a.m.-5:30 p.m.

Registration

Thursday, October 5 7:30 a.m.-5:30 p.m.

Registration

10:00 a.m.-5:30 p.m.

Cool New Products Preview Room (Buyers Only)

8:00 a.m.-10:15 a.m.

Education Sessions

12:00 p.m.-3:30 p.m.

Education Sessions

8:00 a.m.-5:30 p.m.

Cool New Products Preview Room

3:45 p.m.-5:00 p.m.

General Session

10:30 a.m.-11:45 a.m.

General Session

5:30 p.m.-7:00 p.m.

NACS Show Kick-Off Party (Ticketed Event)

10:30 a.m.-5:30 p.m.

New Exhibitor Area

Wednesday, October 4 7:30 a.m.-5:30 p.m.

Registration 8:00 a.m.-10:15 a.m.

Education Sessions 8:00 a.m.-11:30 a.m.

Cool New Products Preview Room (Buyers Only) 10:30 a.m.-11:45 a.m.

General Session 10:30 a.m.-5:30 p.m.

New Exhibitor Area 11:30 a.m.-5:30 p.m.

Expo (All Exhibits) 11:30 a.m.-5:30 p.m.

Cool New Products Preview Room

11:30 a.m.-5:30 p.m.

Expo (All Exhibits) Friday, October 6 7:30 a.m.-1:30 p.m.

Registration 8:30 a.m.-9:30 a.m.

General Session 8:00 a.m.-1:30 p.m.

Cool New Products Preview Room 9:00 a.m.-1:30 p.m.

Expo (All Exhibits)

CO-LOCATED EVENTS Get even more from your NACS Show experience by attending one of the co-located events: NACS Advanced Category Management Certification Course and NACS Food Safety Forum.

During the NACS Advanced Category Management Certification Course, attendees can earn their NACS Certified Convenience Advanced Category Management certification by completing a hands-on, six-hour education session on Tuesday, October 3, from 8:30 a.m. to 3:30 p.m. EDT. Attendees will earn their NACS Certified Convenience Advanced Category Management certification (CCACM) through the completion of this hands-on course. Comprised of key strategic planning and analytical skill-building programs, this six-hour interactive course is tailored for experienced category management and merchandising professionals from retailers and suppliers in the convenience and fueling retailing channel. Drawing on the fundamentals included in the online NACS Advanced Category Management curriculum, the program will incorporate NACS State of the Industry data and offer collaborative work sessions.

Speakers include Liza Salaria, senior principal consultant, Impact 21, and Lucia Romanello Crater, executive vice president, sales and business development, Impact 21.

The program is limited to 60 participants and is open to buyers and suppliers. Pre-registration is required, and the cost is $499 for retailers and $599 for suppliers.

Now in its second year, the NACS Food Safety Forum is where food safety, foodservice, quality assurance and risk management professionals gather for an industry-specific event for the global convenience retail community. The forum will be held October 3 from 8:00 a.m. to 3:30 p.m. EDT. The agenda is packed with renowned food safety professionals. This event is tailored to

global convenience retailers who are leading their company’s food safety and safe food handling procedures and protocols.

Participants can expect to achieve the following objectives: • Understand how food safety culture can support, align with and contribute to your company’s vision and mission.

• Learn how to communicate the “why” behind food safety protocols and how certain behaviors can enhance and protect your people, your customers and your brand.

• Discover collaborative solutions to the safe food handling challenges of today and the future.

Food safety is not a competitive advantage—it’s how foodservice will continue to elevate the industry. Join your colleagues at the NACS Food Safety Forum.

Registration is required, and the cost is $329 for NACS retail members and $499 for NACS supplier members.

WINNING TOGETHER The NACS Show is the only event that brings together the global convenience and fuel retailing community for four days of learning, buying and selling, networking and fun—all designed to help retailers continue to evolve the traditional concept of convenience.

Each year, the NACS Show attracts more than 23,500 industry stakeholders from around the world in an environment that’s rich with new ideas and partnerships. The NACS Show is the place to connect with, learn from and be inspired by your convenience retail peers and experts.

Register today at www.nacsshow.com, and we’ll see you in Atlanta!

NACS AUGUST 2023 39

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Food Safety Forum

Food safety crusader Darin Detwiler discusses what is going right and where there are missteps in food safety performance.

BY RENEE PAS

DO BETTER:

ADVANCING THE FOOD SAFETY NARRATIVE

NACS AUGUST 2023 41

W

Dr. Jay Ellingson of Kwik Trip was the program moderator in 2022.

ith 30 years of advocating to end foodborne illnesses and improve food safety efforts overall, Darin Detwiler, LP.D., M.A.Ed., serves as an expert in the field. He has been instrumental in shaping federal foodservice policy; is an advisor, author, columnist and frequent keynote speaker on the subject; and continues to teach, as well. He currently serves as an associate professor of food regulatory compliance, sustainable development and corporate social responsibility at Northeastern University in Boston and is the founder and CEO of Detwiler Consulting Group. Detwiler also currently serves as the chair of the Food Safety Program Committee at the National Environmental Health Association.

The 30-year milestone also marks a dark time for Detwiler, one that propelled him toward what would become his life’s work. His son Riley died in 1993 due to an outbreak of E. coli traced back to a fast food restaurant—a case of exposure to another person who was sick, not from Riley eating tainted meat himself. It’s a story Detwiler continues to retell and one attendees at the NACS Food Safety Forum will hear on October 3. He includes this story when discussing the true burden of E. coli, because the problem still exists.

Yes, food safety practices overall have made great strides in the last 30 years. However, as Detwiler points out here, there is still work to be done.

WE WILL PROBABLY ALWAYS LIVE IN A WORLD WHERE FOOD SAFETY ISSUES EXIST. LOOKING BACK ON YOUR TIME ADVOCATING FOR GREATER ATTENTION TO THE ISSUE, HOW DO YOU FEEL FOOD SAFETY EFFORTS HAVE EVOLVED? Much has changed in 30 years. Back then, men didn’t openly talk about losing kids, for starters. And why would government say anything could be wrong about food? Certainly, there were no conferences about this 30 years ago. It is a completely different scenario today.

I wonder if we will talk about food safety’s legacy 30 years from now and think: Look what we have done.

DO YOU THINK INDUSTRIES THAT HANDLE FOOD, FROM GROWERS TO PACKAGED GOODS MANUFACTURERS TO RETAILERS, ARE MAKING STRIDES IN FOOD SAFETY? Underlying everything, we all expect our products to be safe. I deal with more stories of success and great examples and great leaders than I do failures. It is very easy to focus on the failures, but there are great motivators out there: people who want to elevate their brand and the industry and to improve food safety in general. We need to learn from mistakes and learn from new ideas. There are some great examples of ways we can improve food safety. Food safety culture is not about food safety in a boardroom or regulatory circles.

It’s about how an organization values food safety. A food safety culture is as easy to lose as it is difficult to maintain.

CAN YOU OFFER ANY ASPIRATIONAL EXAMPLES OF CORPORATE FOOD SAFETY COMMITMENT? I have worked with a few companies that impress me with things they do differently. I work with everyone from food manufacturers to distributors to operators. Some companies

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specifically draw in opinions from all different departments on food safety.

One that I have worked with established an employee-led food safety committee with a representative from every department, including technology and security. Everyone came with a different perspective.

There was even an auditor in this group, who noticed there was a freezer unit with a dent. He started inquiring and found out that, because it was a freezer unit, the floor would get slippery and the wheels on the forklift could not keep up with the slick floor. As a result, the forklift would sometimes hit the wall.

So this problem goes up the chain of command to find a solution, which was to purchase nonslip, top-of-the-line wheels for the forklift.

Now, here’s what’s mind-blowing: The head of engineering, who was also on this employee-led food safety committee, said, “No.” The element that made those particular top-ofthe-line nonslip wheels work was that they were made with walnut shells [to provide texture and grip]. Anyway, this was a plant that was rated for being nut allergen-free. The walnut shells would have violated their certification, so it was important to find a different solution. That connection probably never would have happened if the plant did not have all levels of people involved.

ARE SMALLER CHAINS OR MOM AND POPS AT A DISADVANTAGE IN THIS AREA COMPARED WITH LARGER CHAINS WITH GREATER RESOURCES?

Food safety should not be at a premium. It should be part of the culture at the smallest single location as much as at the biggest chain.

Yes, larger chains may have some advantages in market power and the ability to demand greater transparency from suppliers and distributor partners. But all businesses that handle food have to understand the need for greater transparency at all levels today.

CAN YOU ELABORATE A BIT ON THAT? It’s critically important to avoid the breakdown of trust with consumers. Businesses of every size need to ask themselves how they expect to maintain that trust at the store.

NACS FOOD SAFETY FORUM October 3, 2023 | Atlanta | 8:00 a.m.-3:30 p.m.

T

he only event of its kind in the global convenience retail community, the NACS Food Safety Forum brings together food safety, foodservice, quality assurance and risk management experts within the global c-store space to learn from and engage with each other.

The emphasis on food safety goes hand in hand with the growth of foodservice. In 2022, foodservice represented 25.6% of inside sales and 36.1% of inside gross margin, according to the NACS State of the Industry Report of 2022 Data. The largest piece of the foodservice pie, prepared food, accounted for more than two-thirds of all foodservice sales at 67.3%.

“We all have a role to play to move our industry in the right direction and help each other protect public health and instill trust in customers that the food they buy from their favorite convenience store is fresh, high quality, delicious and safe,” said Chrissy Blasinsky, NACS digital & content strategist.

To further advance the industry in food safety measures, NACS is developing a Convenience Store Food Safety Culture Maturity Model tailored to the global convenience store industry. The model is now in its final stages of development by a group of convenience retailers and Cultivate’s Dr. Lone Jespersen, with a to-market goal of early 2024.

“Anyone selling food must have a focus on food safety,” said Jeff Lenard, vice president of strategic industry initiates at NACS. “An estimated one in six Americans experiences a foodborne illness each year. NACS members have championed the importance of developing and sharing resources with the entire industry.”

NACS AUGUST 2023 43

Dr. Ben Chapman, North Carolina State, and Jeremy Zenlea, EG America

DETWILER’S PICK FOR A MUST-WATCH NETFLIX DOCUMENTARY Poisoned: The Dirty Truth About Your Food

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he documentary previewed at the Tribeca Film Festival on June 9 in New York. It focuses on several key events over the past three decades. Detwiler participated in the production as a technical advisor based on his experience and on the content of his first book, “Food Safety: Past, Present, and Predictions.” He was also interviewed about the events surrounding the E. coli outbreak in 1993 and about his many roles and experiences since.

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Look at what happened with Family Dollar stores out of Arkansas last year and its rodent-infested distribution center. They had repeated violations and ended up in a situation where they had to do many product recalls and eventually close 400 stores. The reputation around that name took a big hit.

Why did they not prioritize their reputation?

DO YOU FEEL A GREATER IMPACT WHEN WORKING WITH POLICYMAKERS OR CORPORATIONS DIRECTLY? Over the past 30 years, something that has really validated what I do is the many people I run into who say how hearing me talk about food safety was one thing, but when I tell people that what they do is part of a Herculean effort, and they are heroes, that’s another thing. Even in this era of Marvel TV shows and superhero movies, consumers see those in the food industry who prevent food safety failures as heroes.

I focus on trying to make sure they understand that they are seen and how important their job is. I see the results of my work when people at conferences or corporate events come up to me and tell me how my message inspired them or motivated them to rethink their role in food safety, that my words have carried them through tough times in their food safety career. To me, this is where it’s really at.

On their own, technology and tools and policies do not mean anything unless we make sure that all the people along the way from farm to fork in food safety understand the “why” behind food safety and that they are validated, supported and celebrated for their courage.

Today’s food industry leaders need to do more than simply celebrate the bright spots from their company’s past. They need to focus on their “why” behind their food safety values to serve as part of their compass to drive their legacy over the next 30 years.

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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Lookere!

Eye-catching, attention-grabbing digital signage can help retailers boost sales and draw in customers.

Shutterstock

BY AMANDA BALTAZAR

NACS AUGUST 2023 47

Convenience

store operators are realizing the power of using digital signage in their stores, both for branding and for promotional messages.

“Convenience brands should think about their business goals and determine how digital signage can make the biggest impact,” said Greg Breyfogle, national accounts sales manager, Daktronics.

Now that consumers can make most purchasing decisions from home, he said, retailers “must provide shoppers with a reason to

Kwik Trip places screens around the store to create a thoroughly digital customer experience.

Digital signs create an atmosphere that to today’s shoppers.”

appeals

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repeatedly walk into your store. Digital signs create an atmosphere that appeals to today’s shoppers.”

Kwik Trip stores have, on average, 18 digital signs in their 9,000-square-foot stores, offering dynamic content that enhances branding and boosts sales.

Mark Meisner, director of marketing and advertising for the La Crosse, Wisconsin– based retailer, said the company started testing digital signage five years ago. “When we saw what they did aesthetically, we got really excited,” he said. “The stores that didn’t have the signs were really missing something.

People are in the digital age now and expect a digital experience.”

Kwik Trip’s 55-inch screens are scattered through the store. They’re above the registers, where they can promote counter items or a location’s car wash; there’s a five-screen video wall over the hot beverages that flips to a menu board; there are signs above smoothie machines, dairy products and bread; and two screens sit side by side above the prepared foods and are one of the first things customers see, Meisner said.

Digital signage allows change to happen quickly, Meisner said. Kwik Trip can have new content in stores within the hour. This ability to quickly make updates was especially helpful during the pandemic, when food prices changed several times a week.

FOCUS ON FOODSERVICE If convenience stores use digital signage in just one area of their store, it should be for prepared foods, said Eric Sales, creative director for Abierto.

Digital signs draw attention to and boost revenue from foodservice. Ideally, ensure your menu board is visible from the front door so it’s hard to miss when customers enter, he said.

Mike Tippets, vice president of enterprise marketing for digital signage company Hughes, recommended that half of foodservice digital signage be menu items and that the other half feature images to whet customers’ appetites. Video works really well, but so do dynamic pictures, such as burgers with cheese slowly melting.

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Jacob Volk, executive vice president of client services with DEEL Media, said almost all the signage the company creates has some motion that draws the eye to the screen, whether that’s motion graphics, real-life footage or something else. “We’ve found that to be much more impactful than static presentation.”

But don’t go overboard, he said. “We limit the amount of motion to what we want the customer to focus on.” So there might be a picture of a coffee with steam rising from it next to a static sandwich; then the movement might reverse, with the cheese melting on the sandwich but the coffee static.

Moving images are hard for customers to ignore, Tippets said, but photos that change quickly have the same eye-catching effect.

It’s easy to program digital menu boards to change by daypart, and all content can be scheduled in advance. The content should change regularly, but you don’t need to reinvent the wheel—change the background color and it looks different, Tippets said.

“Promote high-margin, high-profit, high-value items,” said IV Dickson, chief innovation officer, SageNet. “We see people excel when they promote a mid-level product with a super powerful product.” For example, promote fries with something you want to move, such as pizza bites, with the second item for just $1.

Digital signs need to compete with phones, which many consumers look at while fueling.

Digital signage can also create excitement around coming products, explains Daktronics’ Breyfogle. “Imagine the wait line for the new lunch offering based on the awareness created through digital signage,” he said.

And digital signage can boost check size by suggesting pairings, persuading a customer to add a cup of soup to a sandwich, for example.

FORECOURT COUNTS Transparent LED digital signage is growing in popularity. These signs are positioned on convenience store windows yet are transparent when viewed from inside the store, ensuring staff feel safe.

Transparent LEDs are a great opportunity to draw drivers from the forecourt into your convenience store. A six panel set is fairly typical, or two six panel sets next to each other, Sales of Abierto said, “but you can go way bigger. It’s like a billboard, and you can see them from 200 feet away.”

Placing digital signs on the top of pumps is also an excellent tactic. While pumping gas, customers are a captive audience.

According to Bluedot, around half of consumers look at their phones while filling their cars, so pump toppers can be an alternative distraction. “Traditional marketing is not big and bold enough, so it’s important to find ways to engage these customers,” Sales said.

The most important thing is to get those drivers into the store, where “you have a significant chance of getting them to buy something and the margins are infinitely better than the fuel,” he said.

Another option is LCD screens, SageNet’s Dickson said, which use less-expensive technology that’s more scalable and affordable.

LCD screens also, he pointed out, allow for easier content creation and easier and faster deployment, and come in more sizes.

AT THE PUMP OR CHARGER Another prime customer to bring into the store through digital signage is the EV driver, who typically stays for longer, so is more likely to shop. This customer is also often more affluent. Some EV chargers feature digital signage; others offer smaller screens where retailers can run promotions.

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Messaging

It can be a good idea to occasionally use every screen in a store to show the same message, suggests Bill Clapes, president, DEEL Media. This could be a Coca-Cola takeover, he points out, where every five minutes, every screen in the store will show Coca-Cola imaging for five to 10 seconds, then go back to typical content. From an impact perspective, and to get consumers to remember the offer, this type of takeover is a very powerful tool, Clapes said.

Kwik Trip is considering doing takeovers, and would add an audio component.

It might be a short clip that runs on the hour, said Mark Meisner, director of marketing and advertising.

SageNet Chief Innovation Officer IV Dickson is also a fan of coordinating screens.

“If you have multiple displays, consolidate the message. If you have coffee on one, do it on all of them. Blast it and put it everywhere.”

Traditional marketing is not enough, so it’s important to find ways to engage these customers.”

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OTHER LOCATIONS Digital signage can be used at point of purchase, said Dickson. He points to digital signs on the shelf edge, shelf toppers or headers and in-aisle signage. This type of signage is viable because it’s networked, which means it can be changed with the click of a button.

Cooler doors are also an option for digital signage, though Hughes’ Tippets doesn’t recommend it. The implementation is chal-

rangizzz/Shutterstock; joshblake/Getty Images

Synchronized

For these customers, Dickson said, stores could combine sponsored longer-format video content (cartoons, YouTube videos, etc.) that could offset costs both for the operator and the end user, with some advertisements that have the ultimate goal of bringing the driver into the store.

TXB stores use digital signage on EV chargers, where it has chargers, and plans to add more screens to the charging area “to communicate more of our fresh food,” said Kevin Smartt, CEO of TXB, which is based in Spicewood, Texas.

“If that customer decides to stay in their car, we have a captured audience for 20 to 25 minutes at least, and if you’re messaging them all that time, surely they’re going to come in for something.”

The two newest locations of Weigel’s feature gas pumps with digital touch screens.

Each pump features two screens of around 27 inches each; one handles static images, and the other has video capabilities.

“The engagement is much higher with digital compared with looking at a printed sign,” said Nick Triantafellou, director of merchandising and marketing, Weigel’s. He likes to feature anything dynamic and attention-grabbing, especially summer sweepstakes and foodservice.

TXB stores are also using pumps with digital screens, Smartt said. The screens are bifurcated so they can show two messages, usually focusing on the chain’s fresh food.

Make things as easy as you can for customers in the forecourt, Dickson said. Show them digital menus and let them order food from their phone that can be ready before they’ve finished filling up. The food, he adds, could even be delivered out to their car.

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Digital signage can also go over coffee stations, fountain beverages and grab-and-go foods.

TXB stores use digital signage to sell lottery tickets. Physical tickets are no longer displayed; instead, customers choose from a screen. These displays “really clean the store up and showcase the tickets in a first-class fashion,” said Smartt.

TXB uses digital screens on its self checkouts, where it features promotional messages that customers see as they arrive.

Coffee machines also feature digital screens, where TXB displays messaging about its hot dispensed program.

At TXB, digital signs sell products but also tell the story of TXB and build the brand.

You’re building shopper by telling your story.”

confidence

CREATING CONTENT The biggest challenge with digital signage is content creation, whether it’s keeping things fresh or launching a full marketing campaign.

For large convenience store retailers, content can all be managed at headquarters, and local stores can have some level of control over what’s shown in their individual store.

While digital signage companies can provide creative help, content is usually handled by someone in marketing, if the retailer is a large company. But digital signage is accessible to small retailers, too. “If it’s a mom-and-pop store, it’s whoever’s got five free minutes,” said Tippets. “The great thing is you don’t need a lot of expertise. It’s dragand-drop, click-and-point technology.”

One important tip: It’s very important to have high-quality food photography, which can make the difference between a dish looking appetizing or looking gray. DEEL offers photography if customers request it. DEEL can also modify existing images, which need different colors depending on whether the image will be shown static or in a video.

BRANDING BOOST Beyond selling, digital signage is a great tool for boosting a convenience store’s branding.

This is one of Kwik Trip’s main goals. “We have so much to talk about,” Meisner said.

Digital signage “gives us a way to merchandise our products and tell the story behind

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with Digital Signage SHOWING LONG-FORMAT CONTENT C-store shoppers aren’t in the store long enough to watch long videos. Nick Triantafellou, director of merchandising and marketing, Weigel’s, keeps his videos to 15 to 30 seconds and doesn’t have more than five messages rotating on the screens. “You want to get through [the videos] quickly so you might catch interest on the second or third time,” he pointed out.

NOT SETTING GUARDRAILS It’s important to TXB to have guardrails about what it is going to do, and not do, with digital screens, said CEO Kevin Smartt. “I don’t want to get to where it’s sensory overload with different messaging in different areas of the store.”

USING CONSUMER-GRADE SCREENS These don’t last long in the convenience store environment, said Jacob Volk, executive vice president of client services, DEEL Media. And when operators look to replace them, the newer versions are slightly different. “Mismatched screens don’t look good in any environment,” he said.

CHOOSING THE WRONG SIGNAGE VENDOR “Make sure your partner’s ability to update is as quick and easy as you want it to be,” Triantafellou said. “In COVID we needed to change food costs regularly, and if you have to wait 24 hours for something, it can be frustrating.”

USING PHOTOS INTENDED FOR PRINT Print photos do not necessarily work on a digital screen, Smartt said. For example, a professional photo with a white background will be too bright on a digital screen.

STICKING TO DAYPARTS Using digital screens to advertise food and beverage items during dayparts when they’re not commonly consumed can whet customers’ appetites for future visits, suggested Eric Sales, creative director, Abierto.

For example, show an image of coffee late in the day or advertise your beer cave in the morning.

our products and production facilities. It’s created a platform that’s unique and dynamic; it creates interaction and brightens up the store. This strengthens the brand.”

Branding via digital signage can be a difficult proposition because c-store customers mostly want to get in and get out, Tippets said. The easiest way to boost branding is to use digital signage to encourage guests to sign up for a loyalty program.

To grab attention immediately, Tippets suggested hanging a digital sign where customers will see it as soon as they enter, in the line of sight, usually on a back wall directly across from the front door. But an even better option is placing that sign immediately in front of the door as customers enter. “Even a small screen gets their attention—the changing dynamic and the color gets them to take a peek,” Tippets said.

With your branding, focus on what makes you incredible, be it your fresh-ground coffee or your unusual sandwiches. “It’s about exposing people to product lines you’ve spent time and money developing,” Sales said.

“Focus on what your most important brand mantras are,” he added. “If you do that, you’re building loyal fans.”

Kwik Trip is planning to provide non-promotional content, such as local weather forecasts, through its digital screens. It already entertains customers by repurposing content from its social media. “We have a lot of entertaining social media and so many raving fans,” Meisner said.

TXB stores have three or sometimes four screens over the customer checkout area, featuring one image across all screens, usually showing either quality food, how the company prepares food, or private-label packaged items and where they come from. “It’s never promotional, always messaging,” Smartt said.

He added: “I’m a big believer in building the brand and building the story, and it not being about the immediacy of what [shoppers] are seeing. It’s not promotional; you’re building shopper confidence by telling your story.”

Amanda Baltazar has been writing about foodservice and retail for trade magazines for more than 20 years.

Read more of her work at www.chaterink.com.

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EV OBSERVATIONS FROM

NORWAY The Scandinavian country has more EVs per capita than anywhere.

What has that meant for convenience retailers?

BY MAGNAR MØKKELGÅRD, NACS RELATIONSHIP PARTNER NORDICS

NACS AUGUST 2023 59

or several years Norway has been the leading country with regard to EV development and charging. The driving force behind this has been the government’s ambition that all passenger cars sold in 2025 should be electric, an ambition that is shared by most parties in the parliament.

LEADING THE CHARGE In Norway in 2022, 79.3% of new passenger cars sold were 100% electric. As of the end of year, 20% of all cars on the road were electric, even higher at 30% around the capital of Oslo.

Miles driven in EVs is probably even higher than that. The average lifespan of a car in Norway is 19.2 years, and the average age of cars on the road is 10.5 years, so even though fuel retailers are experiencing a gradual decline in sales, the time has really come to face the challenges that the next years will bring for the industry in Norway.

WHERE’S THE ENERGY? Currently around 80% of all charging takes place at home and almost 10% at work. For the remaining charging occasions, gas stations compete with players such as dedicated charging spots, hotels, grocery stores, shopping malls and fast-food chains. As of December 2022 there are more than 20,000 public chargers in Norway, out of which almost 1,800 are fast (50-149kw) chargers and 3,800 are flash (150kw+) chargers. Only 9% of all charging options are fast charging.

Let’s face it: The consequence of the rise of EVs is not just putting a charger where the pump used to be.

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WHO’S IN CHARGE? In the beginning, the main players within EV charging were the utility companies who initially established themselves at fuel retailers as a pure service. Later these contracts were developed into profit-split arrangements between the fuel retailers and the charging companies—mainly Recharge, Mer and Eviny.

As the charging volumes and knowledge grew, retailers’ commitment to and investment in charging grew too. Circle K was the front-runner in this development and the first to introduce its own charging network. So far, the Reitan Group through its Uno-X company is the only other gas station player to do so.

CHARGING WITH THE TIMES Let’s face it: The consequence of the rise of EVs is not just putting a charger where the pump used to be.

There are several reasons why the rise of EVs will force us to rethink our business models and change our traditional way of thinking.

Only a minor part of all charging will take place at a current gas station. The fact that 80% of all charging in Norway takes place at home does not mean this will be a representative figure for other markets. This percentage will also fall as EV ownership spreads to lower income groups living in apartments where they have few to no charging opportunities.

As the percentage falls, the need for charging facilities in residential areas will increase.

Despite the ability to offer fast charging, EV charging at gas stations will not be the largest part of all charging, so this is where the “con-

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Some of our old ways of looking at the business may also change. The old conversion rate from pump to store may not be the right way of looking at this. Where we previously attracted customers by advertising promotions at pumps to bring them into the store for a quick snack, the opposite conversion rate from store or restaurant to charger may be a strong indicator that you are providing the right solutions for facilitating a meaningful 30 minutes.

HOW TO GO FORWARD So, how can the existing players manage to have a profitable “energy station” business going forward?

So far in Norway sales have not seen too dramatic of a change. Part of the reason for this is changed travel and shopping patterns during COVID, when the fuel retailing business actually got a temporary boost.

Now things are getting to be more chal-

ginger_polina_bublik/Shutterstock

While traditional motorists will often fill up their cars only when they need to, EV owners tend to charge when they can.

venience” nature of the new business model will become more clear. The most frequent fast charging customers at fuel retailers (of those who also charge at home) are the ones who work or travel along the road and need fast charging to get to where they are going.

More important is the fact that charging can easily be provided by other players. There is logic for grocery stores to provide charging, for example. Putting chargers at a grocery store is much simpler than putting fuel pumps at the same location. This brings us to what is probably the most important issue here.

The key issue is that charging takes time.

Even though fast chargers and flash chargers have reduced the time needed for charging, the size of car batteries has also increased, and customers will still need to kill a better portion of an hour. Depending on the charging behavior of the EV owners, their key concern is how to make that 20-40 minute stop a meaningful one.

While traditional motorists will often fill up their cars only when they need to, EV owners tend to charge when they can. So, the stop to charge the car may not be the main shopping mission but rather something they do since they will already be spending time at that location. An alternative to stopping for a shopping mission may also just be the need to use the restroom or to take a break to go through email. Observations made at Tesla Superchargers parks confirm that a high percentage of those charging along the road are just sitting in their cars reading their email or making phone calls.

The length of the charging session may, based on the above, be defined by the time the main shopping mission takes and how much power you need to get to your next stop, rather than how long it will take to get a full or mostly full battery. Just think about how you have learned to charge your own mobile phone. Do you always have the time for a full charge or do you sometimes just want a boost to get you through until you can fully recharge?

To become a good future site for charging, offering a meaningful experience during the charge will be key to attract those charging on the go. You simply need to make EV owners want to spend the 20-40 minutes at your site.

iCexpert/Getty Images

lenging, and not only for the traditional convenience store. A substantial part of fuel sales in Norway come from unmanned stations. To believe that these two segments can replace all the lost fuel sales revenue with charging revenue is not realistic.

Key questions for the players are: • How can existing stations stay relevant?

• What kind of new locations will meet the potential demands of EV owners?

• Which existing stations have long-term potential?

• What kind of investment strategy for charging is best?

To account for potential shifts in the market, the key will be to increase the overall relevance of the site. During the last few years, we have seen a lot of upgrades to convenience offerings, like a wider selection of fresh foods.

We also saw an increase in services at the stations. Five to six years ago, almost no c-stores with gas stations had any seating; now most

players have introduced this. EV owners will also need car washes and other services that gas stations offer. With this trend, we have seen substantial improvements to the car wash services offered at many stores, including subscription-based services.

We are also seeing that the new sites that have been built along the highways by Circle K, Shell (St1) and Esso (DCC)/Deli de Luca tend to be bigger, include more services and have become true one-stop locations. We have seen everything from playgrounds, dog parks, fast-food restaurants and increased space for eating at the convenience store.

As for the long-term relevance of existing stations, consider these factors: • Charging for long-distance travelers and those working along the road could mean large, new stations but could also mean simple upgrades to existing locations.

• The neighborhood charging point is also a type of location that may work in neighborhoods of a certain size where the charge at home opportunities are scarce.

Stations that are currently unmanned could play a role here.

• Don’t forget the current locations that already have a wide mix of customer categories, like people just stopping in for lunch. As long as c-stores can continue to remain marketable and attractive to all types of customers, they will have a place in the future market, wherever it goes.

• In some cases, the alternative use of a location may offer a higher return than the current fuel retailing business. The number of fuel retailers in Norway will go down. Real estate values that are currently “hidden” may be a future upside for some players.

As long as c-stores can continue to remain marketable and attractive to all types of customers, they will have a place in the future market, wherever it goes.

If the market continues to shift more toward EV consumers, c-stores will need to decide whether to remain (or become) an “energy company” in the long run or be a convenience company partnering with a charging provider. Choosing to become an energy provider may mean a strategy to establish charging at locations other than current fueling sites, such as grocery stores or unsupervised charging outposts.

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ADDITIONAL KEY TAKEAWAYS Here are some other things we have learned during the last five to 10 years: • Being a frontrunner is not necessarily the only path to success. On the one hand, you can position yourself among EV owners as the place to go by investing in early technology. On the other hand, later entrants can invest in newer technology and benefit from “free learning” from those frontrunners.

• Loyalty is key. If you already have an established loyalty system, you could continue nurturing it by offering other advantages to EV owners. Norwegian Circle K has provided solutions for home charging as a part of its loyalty offers.

• Even though the quality and capacity of the local grid will always be important when planning for charging at a current or new location, we have seen ways to solve the problem of low-capacity grids. Circle K has tested some interesting pop-up type solutions for this.

• To build a charging network fast enough, many corners were cut in Norway. The current network therefore has certain challenges from a customer’s point of view.

Payment has mainly been done by RFID cards and subscription models. Otherwise, paying must be done over apps or on the home page of the operator. The first charger where you could pay by card was introduced in 2023 by Uno-X, which was 64 AUGUST 2023 convenience.org

ONE FINAL RECOMMENDATION If you would like to know more about these developments and see the newest sites and the latest solutions, consider joining Insight EV Market Focus on September 19-21.

Here, you will engage with global leaders and innovators in this space, including Circle K, DCC Energy, NorgessGruppen, Deli de Luca, St1 Norge, Uno-X Norge, Reitan Convenience Norway, NIO and others. More information is available at: globalconveniencestorefocus.co.uk.

Magnar Møkkelgård is currently the relationship partner for NACS in the Nordics. He enjoys receiving visitors from other countries with special interest in the EV development in Norway. He worked for Reitan Convenience for 30 years.

urfinguss/Getty Images

The old conversion rate from pump to store may not be the right way of looking at this.

also the first player to show the price on the totem outside the station and on the charger, thereby introducing a price competition that has been absent until now.

• Another thing that was overlooked was universal design concerns. The charging spaces and chargers were not designed with disability needs in mind. This is gradually changing.

• Fast charging margins have been high so far. Charging at home is significantly cheaper than charging along the road.

The absence of price information has contributed to that. It has been interesting to watch. Whereas fuel retailers might change their price signs several times a day, charging businesses may change the charging prices as infrequently as once a month. We may even see a future differentiation of charging margins between convenience charging along the road and local neighborhood charging.

KNOWING YOUR SHOPPERS

Q: WHAT DO THESE TRENDS MEAN FOR A RETAILER IN TERMS OF WHAT THEY SHOULD BE DOING? Two areas of focus for retailers include the value they provide to their consumers and the gaps in assortment between their stores and their marketplace.

In 2022, manufacturers pulled back on trade spend as an offset to the amount of price increases. Now is the time to offer shoppers deals on what 66 AUGUST 2023 convenience.org

Giselleflissak/Getty Images

The key to success in retail is having actionable insights about your customer.

Q: AS A SOLUTIONS PROVIDER WITH A STRONG READ ON THE CONVENIENCE STORE INDUSTRY, WHAT MAJOR TRENDS ARE YOU SEEING IN THE INDUSTRY RIGHT NOW? Convenience retailers who are focusing on their shoppers’ needs are winning within the channel. Shoppers are experiencing financial and time pressures.

Those retailers focused on having the assortment shoppers need and want, engaging in promotions, leaning into private label, executing an online sales plan and leveraging insights from shopper loyalty are positioned to win.

Addressing their unique shopper needs within the context of their building size is a delicate balance. For example, c-stores need to manage their mix of branded vs. private label items and to allocate space within their stores to reflect their shopper’s behavior, needs and wants.

One more: Increasingly, retailers are having success in foodservice with flavors that are on trend and by giving their customers the ability to customize orders.

This interview is brought to you by AdvantageSolutions.net.

they are looking for. Specifically, multiple packs, temporary price reductions or LTOs, and cross-promotional offers. Promotions aligned with cents-off fuel or “buy 2 save X” (two months on, one month off is the sweet spot) are driving volume and bringing consumers into the store. Consider more investments in private label to enhance your margins and take business away from traditional QSRs. Large retailers utilize data to understand both their own sales trends and the emerging shopper demands in the market. Smaller retailers need to employ syndicated data to develop a holistic strategic plan to meet market and shopper needs. This will enable them to unlock incremental dollars through larger basket size and increased store traffic, with both new and repeat consumers.

Retailers who know their core shoppers have a huge advantage. This positions them to have the right products on the shelf optimally merchandised to encourage shopability, which translates to incremental sales.

Because space is so limited in convenience stores, every square inch must be maximized.

Convenience retailers need to leverage core items as well as offer the right mix of variety and innovation.

Q: THERE SEEMS TO BE NO LIMIT TO WHERE RETAILERS CAN FIND DATA, AND THE ABUNDANCE OF INFORMATION CAN BE OVERWHELMING. ACTIONABLE, PERSONALIZED DATA CAN ALSO BE EXPENSIVE. CAN YOU TALK MORE ABOUT ADVANTAGE SOLUTIONS AND HOW YOU BRING ACCURATE AND PROFIT-MAKING, YET AFFORDABLE, INSIGHTS TO THE CONVENIENCE RETAILER? The number of data sources can get overwhelming when trying to decide where to invest. With cost in mind, one of the most beneficial things Advantage Solutions offers retailers is the ability to leverage our investments into different data sources as well as assortment optimization and space management tools. Advantage Solutions offers

retailers, manufacturers and distributors a wide range of category and space management services where costs are scaled based on individual needs and budgets. Whether you need 1 or 1,000 planograms, we can provide resources to fit your needs and then price accordingly. If you Charles Simpson Senior Director Category don’t have the budget Leadership to hire a full-time cateAdvantageSolutions.net gory manager, we have options to allow you to purchase a block of time so you can focus on the things that matter while we provide thought leadership specific to your business.

Q: DO YOU HAVE AN EXAMPLE OF HOW THESE INSIGHTS CAN SPUR SALES? Absolutely. We pride ourselves on being the preferred choice for retailers, manufacturers and distributors. Below is one example to demonstrate our value to our clients.

A large distributor approached us with a need to assess its snacking sets to focus on independent and small chain c-store opportunities. The owners of these businesses approached the distributor with similar asks in terms of wanting to get greater insight into shopper behaviors as well as market trends. They had a need for an unbiased look at the market where they operate and to identify specific items that should satisfy shopper needs in terms of core, variety seeking and innovation.

In this particular case, we leveraged several data sources, including Circana/ IRI and Shopper Insights. We assessed the original assortments versus the specific market consumption and developed a set of planograms for different set sizes that operators could use to meet their needs and drive sales. The overall impact to this distributor was an incremental 13% dollar growth.

NACS AUGUST 2023 67

Speed The Need for

POS enhancements are improving the in-store experience for customers.

I

n the fall of 1960, John D. C. Little, a professor at the Massachusetts Institute of Technology, published his seminal work on waiting behavior in retail stores. Presented in mathematical terms, “A Proof for the Queuing Formula” provides a straightforward formula for determining the average expected wait time per customer: L÷λ=W where L equals the number of customers already in line, λ equals the number of customers entering the line per minute and W equals the average waiting time in minutes.

Over the next 60 years, business executives referenced the straightforward formula mostly in descriptive terms. For instance, if we know that a store line averages a wait time of three minutes per customer, how can we maximize sales during that three-minute period?

As a result, countless recommendations for impulse-buying strategies and line and register configurations were developed.

However, an unfortunate consequence of excessively long waiting times emerged: the abandoned cart. If waiting times grew too high, people simply left the store. During our smartphone-TikTok-5G speed era, the decision to bail has grown increasingly common with a contracting patience threshold.

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Getty Images

BY JERRY SOVERINSKY

NACS AUGUST 2023 69

Mashgin’s checkout system uses AI-powered sensors to calculate the customer’s total.

“Long lines for payment checkout” was the number one pain point (60%) for shopping in-store according to a recent survey, far outdistancing out-of-stock products (48%), store disorganization (40%) and lack of help (26%). A Forrester study around the same time revealed that “shoppers will not hesitate to bring their business to a competitor for a better checkout experience.” And when it comes to convenience store shopping, 54% of respondents in a 2022 Bluedot survey said that they would leave and skip buying anything if there were just three or more people in a line.

“Speed is a competitive differentiator,” the Forrester study noted, before adding a recommendation: “Make fast checkout a competitive advantage.”

Easier said than done.

For many, the approach demands a renewed focus on labor—adding headcount to

“Long lines for payment checkout”

was the number one pain point (60%) for shopping in-store according to a recent survey, far outdistancing out-of-stock products (48%), store disorganization (40%) and lack of help (26%).

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address increased traffic flow. But for an industry whose margins are already thin, such an approach is impractical, if not impossible, in today’s tight labor market. That has led retailers to consider back-end solutions for improvement, and building a better checkout solution has received increasing attention over the past several years from solutions providers.

JUST SAY GO Checkout technology has come a long way since the introduction of barcodes in the 1970s, reaching a science fiction-like high point in 2018, when Amazon launched its Amazon Go concept. While revolutionizing the shopping experience with its cashierless Just Walk Out technology, the concept is available in roughly 50 stores today, hardly a ubiquitous offering. The company has begun licensing the technology, but at a high cost per store.

That said, Amazon’s bold breakthrough has inspired a host of competitors and influenced the adoption of cashierless technology.

Continually heightened customer expectations demand a seamless and efficient checkout experience, one that delivers numerous retailer benefits, including enhanced customer satisfaction and loyalty, along with increased overall sales volume. For some retailers, this means providing staff with more powerful scanning and payment hardware— not cashier-less technology. And for others, that means incorporating AI-powered tools to speed the self-checkout process.

Here is a look at two prominent offerings.

SEAMLESS INTEGRATION (FOR CASHIERS): NATIONAL RETAIL SOLUTIONS Founded in 2015 with a mission to support independent convenience stores and gas stations, National Retail Solutions offers a suite of tightly integrated technology-based products to help these small- and medium-sized retailers stay competitive. Centered around a point-of-sale system (NRS POS), the NRS platform includes capabilities to process digital payments, loyalty program discounts, fuel purchases, tobacco scan data and government

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NACS AUGUST 2023 71

ID scanning. The platform offers e-commerce capabilities, an employee time clock feature, cash advances and the opportunity to make bulk purchases of inventory and store supplies.

With a fully customizable loyalty offering, NRS POS empowers smaller retailers to gain equal footing with their larger competitors.

“There are many challenges today for small, independent store owners who were already struggling to survive and balance operations [before COVID],” said Elie Katz, founder and CEO of NRS. “Technology has advanced to provide all forms of supportive services to help retailers organize and understand their business better, attract customers and increase revenue. The NRS POS offers integrated payment acceptance, e-commerce, customized loyalty programs, customer-facing advertising and more.”

To minimize downtime and disruptions, durability is the foundational feature of the NRS POS, according to the company. Additionally, with its clear and intuitive interface, cashiers can process transactions more quickly. “Store owners appreciate our durable hardware, particularly conducive in a fastpaced checkout environment with multiple users,” Katz said. “Our user-friendly POS system has one-touch buttons with customized categories and color coding, so that even a new cashier, for whom English may not be their native language, can easily understand and use the machine.”

NRS POS is now used in more than 20,000 stores in the United States, with a recent expansion into Canada. It comes 72 AUGUST 2023 convenience.org

pre-programmed with more than 50,000 pricebook items, which are easily customized via upload to an online merchant portal or by scanning at the register.

These back-end, time-saving functions free employees to allocate more attention to the customer, delivering a more efficient and satisfactory shopping experience. And for those tasks that involve regulatory compliance—verifying IDs and accepting EBT/ eWIC—NRS POS can create less friction.

“The POS isn’t just a checkout tool. It’s a control panel for the retailer to manage operations and boost profits. With the customer-facing screen, it communicates with patrons as well,” Katz said. “And as e-commerce trends continue, adapting the point of sale for e-commerce integration is a high priority … by offering powerful technology and payment acceptance tools, we’re giving our retailers a stronger chance to succeed.”

LAYING IT ALL OUT THERE (FOR SHOPPERS): MASHGIN Frustrated by cafeteria checkout lines that came to a stop during errant product scans, Abhinai Srivastava founded Mashgin Inc., a Silicon Valley tech startup that sought to build a better checkout process. “The challenge was the ability to ring things up at once,” explained Jack Hogan, SVP, strategic partnerships for Mashgin. “And for that we needed visual technology.”

Billing its touchless checkout system as “the world’s fastest self-checkout powered by AI,” Mashgin’s visual technology is truly convenient. Shoppers approach a Mashgin-powered checkout, dump their items on the counter, and Mashgin’s AI-powered sensors capture all the contents, calculating a total in seconds. “There’s no barcode scanning involved, it’s really just laying things down on a counter,” Hogan said. “And it truly makes the checkout experience more tolerable.”

Mashgin uses a variety of cameras that look at items from different angles, fostering what the company says is a 400% faster checkout process than traditional POS. “On average, it takes up to a minute to check out with a cashier, 90 seconds to perform a

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self-checkout, and as little as 10 seconds with Mashgin,” Hogan said. “That’s a direct speed benefit, which delivers an improved customer experience.”

Mashgin launched to the public in 2020, during a time when COVID led to employee shortages and shoppers were looking for a quicker, frictionless shopping experience.

The product has matured significantly since its inception. Whereas it could only handle credit card transactions when it first launched, it can now handle cards, fuel and loyalty programs. “And after we checked off ‘loyalty’ on our to-do list, we added the ability to accept cash,” Hogan said.

Looking to provide a faster checkout experience at its games, BMO Stadium, home of Major League Soccer’s Los Angeles Football Club (LAFC), deployed 12 Mashgin checkout systems in 2022. Mashgin delivered bottom-line improvements, with the average transaction time dropping to 12.5 seconds, 400% faster than other registers, with a 25% revenue boost.

“We are regularly surveying our fans, and they love how Mashgin lets them move through the lines so quickly,” said Christina Lau, chief technology officer for LAFC. “Concessions are always in high demand.

Getting those lines moving means more fans can get their snacks without missing out on the action on the field.”

Couche-Tard signed an agreement last year to deploy 10,000 Mashgin checkout systems at 7,000 of its Circle K and Couche-Tarde stores, expanding an earlier agreement to deploy units at 500 Circle K locations.

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“We’re committed to investing in and scaling technology that sets a new standard for convenience with our customers and advances our mission to make our customers’ lives a little easier every day,” Magnus Tägtström, vice president, global innovation at CoucheTard, said at the time. “The Smart Checkout system powered by Mashgin’s game-changing technology shortens lines, improves the customer experience and frees up our teams to focus on helping our customers. We look forward to introducing this new platform to stores across our network.”

BACK TO THE FUTURE These are just two sample offerings, and the marketplace is filling with others. Those familiar with Face ID on their iPhone can look forward to biometric authentication in the checkout process, where a fingerprint, facial recognition or even voice recognition initiates payment.

Most POS systems aim to meet (or exceed) the growing expectations of shoppers, for whom convenience is of paramount importance. Retailers who figure out the best way to leverage these technologies in a way that aligns with their resources can expect significant value benefits, such as increased customer loyalty and improved operational efficiency, benefits that will enable them to thrive in a continually evolving retail landscape.

Jerry Soverinsky is a Chicago-based freelance writer and NACS Magazine contributing writer.

ENVISIONING

an Electric Future

Here’s why you should make tomorrow’s EV plans a focus for today.

BY SARA COUNIHAN

Close your eyes for a moment. Think about your convenience retailing business. Now think about it five, 10 years down the road. You are now catering to a quickly growing customer demographic—the EV driver.

Imagine drivers pulling into your parking lot to charge their vehicles and being greeted by a row of chargers ready to go. They open your store’s app on their phone to turn on a charger and pay for their charge. Once they begin charging, they see a notification pop up on their phone for a free specialty coffee.

They click on the promo, order their beverage and walk into the c-store to pick it up. They purchase a pastry to go with their coffee and sit down in a comfy chair. They open their laptop and squeeze in 20 minutes of work before they receive an app notification that their vehicle is charged. With an experience like this, EV drivers choose your location for a convenient charge, becoming loyal customers.

Now open your eyes. Is your current convenience store business on the path to the electrified future that you envision? Or do you need some guidance, a little inspiration or some tips on how to take your first step into the EV charging world? If so, keep reading.

A SENSE OF URGENCY According to BloombergNEF research, global passenger electric vehicle sales will increase from 10.5 million in 76 AUGUST 2023 convenience.org

2022 to 22 million in 2025—a 109.5% increase. Additionally, EVs are projected to be 29.2% of new vehicles sold by 2025 in the U.S. and Europe (compared to 2.6% in 2019).

“There should be a degree of urgency for convenience retailers to get into the EV space,” said Michael Hughes, chief revenue officer, ChargePoint, which offers a leading network of EV charging stations in North America and Europe.

Hughes says there are three reasons for that sense of urgency. The first is that convenience retailers will soon have increased competition when it comes to how and where consumers fuel up. Eighty percent of fueling happens at convenience stores, according to NACS data.

Experts predict that around 75% of EV charging will take place at home or at work; however, the remaining 25% of charging opportunity won’t be exclusive to convenience stores, said Hughes.

“Convenience retailers end up sharing a smaller piece of the fueling pie with competitors that they’ve never had to compete against,” he said.

Another reason for urgency is the plethora of funding options available from local, state and federal governments. These incentives won’t be around forever. The Infrastructure Investment and Jobs Act (IIJA) allocates $7.5 billion for EV charging and other alternative fuel projects: $5 billion for the National Electric Vehicle

This article is brought to you by ChargePoint.

Infrastructure (NEVI) formula program and an anticipated $2.5 billion for corridor and community charging grants, covering up to 80% of EV charging project costs.

“Outside incentives do help mitigate risk and expediate payback,” said Hughes.

The third reason for urgency surrounding EVs, according to Hughes, is that there is first-mover advantage.

“Convenience stores are in the business of selling products and services that customers want and need as they’re on their way. Charging is no different,” said Hughes. “There’s an advantage to being a first mover to demonstrate to your customers that, ‘Hey, you can still come to my place tomorrow the same way that you come to my place today.’”

Joe Bona, president of Bona Design Lab, a convenience store design firm, also sees an advantage in getting into the EV charging game sooner rather than later.

“There’s no time other than now to get in and figure it out and see how it affects your business,” said Bona. “You can see what the learnings are and what changes you need to make in order to serve those customer needs.”

A LOOK INTO THE FUTURE Bona spends much of his time envisioning the convenience store of the future, and electric vehicles “absolutely” are part of tomorrow’s c-store. However, because EV drivers will have so many places they can charge, convenience retailers need to give customers more reasons than ever to visit a c-store.

“As long as we don’t lose sight that convenience is the fundamental reason why people use our sites, I think EV charging is just going to be another offer that attracts more people to our locations,” he said.

A robust foodservice program is a must-have if a convenience store wants to compete in the future of convenience retailing, said Bona, along with bigger, cleaner restrooms and other amenities that make c-stores a destination rather than a stop on the way.

“If I need a place to charge, I’m going to go past the pharmacy, the shopping mall, or any number of other places with chargers. I’m more likely to go to my local convenience store just because it remains the most convenient stop between Points A and B and where I can do other things,” said Bona. “I think that it’s important that c-store retailers embrace all aspects of their business in order to serve those needs.”

WHAT OTHERS ARE DOING Kum & Go recently rolled out a new foodservice program with the EV customer in mind. The Midwest-based convenience retailer now offers healthier food options and other made-to-order items that take a bit longer to make but are “perfect for this type of customer,” said Jacob Maass, senior fuel pricing manager, Kum & Go. The retailer, which has approximately 400 locations, has been on its EV journey for about six years, dipping its toe in the water with some hosted charging stations.

ChargePoint and Kum & Go installed EV charging at six locations in Colorado with funding from the state’s Charge Ahead program.

“That was really our first dive into the water,” said Maass. Since then, the retailer has added multiple charging stations, and now has 35 electrified sites.

“We’ve been utilizing those chargers to gain more customers beyond our traditional offering, which is fuel and our inside items, our food program,” said Maass. “We’re constantly looking for opportunities to continue to roll out EV charging infrastructure across our network.”

Forward Thinking Here are some words of advice from retailers and experts on the future of electric vehicle charging and how convenience retailers play an integral role: Kim Okafor, Trillium and Love’s: “This is our market to thrive in, so we need to move with the times. We want to be fuel providers, no matter what the fuel is. More than anything, we want to utilize the capabilities of our expertise. Let’s take our experiences and work together.”

Jacob Maass, Kum & Go: “Our customer base [is] still going to need somewhere to charge their vehicle when they’re running low. That gives us light, gives us hope that we can be that stop for them by adding the right amenities and by putting forth the efforts to make us a premier stop.”

Joe Bona, Bona Design Lab: “We think food is going to be critical for EV users because they’re going to have longer dwell times, and having a robust food offer is going to be really an essential ingredient for that mission.”

Michael Hughes, ChargePoint: “How do c-store retailers change the guest experience to accommodate for a longer dwell time? I think the answer can be daunting, but I think it’s also really exciting too, because it’s an opportunity to evolve and adapt, which is something the convenience industry does better than anybody in business.”

NACS AUGUST 2023 77

The Driver Experience via ChargePoint Driver arrives at branded charger and sees video message inviting them into store.

Driver authenticates using tap to pay, an app or smartwatch.

Offer benefits to connected drivers through Connections.

Charging session ends; driver has a great experience charging.

Love’s Travel Stops is on a similar path as Kum & Go. The retailer installed its first EV charger in 2016, and now has 20 locations with EV charging throughout the country.

“The great thing about our locations is that they’re located on corridors. … You’ll find us on the way to a major city,” said Kim Okafor, general manager of zero emission solutions for Trillium Energy Solutions, part of the Love’s Family of Companies. The locations “have clean restrooms and well-lit parking lots, which is exactly what the EV driver needs to reduce that range anxiety.”

Many Love’s locations offer dog parks and other great amenities, which also bodes well for the EV driver looking to kill time while they charge up. “[EV charging] is an amenity, but it’s also an investment that we’re making, and we want to make sure that we get a return on that investment,” said Okafor. “And the way [to] get a return on investment is building a customer experience [where] the customer will want to come back to the charging station. Our goal is to get return customers.”

THE DIGITAL JOURNEY According to Hughes, the journey that a customer takes to an EV charging destination is a “heads down” approach—quite the opposite of the way gasoline customers find a fueling location, which he described as a “heads up” journey.

Sixty percent of gasoline customers choose a gas station based on price, according to NACS data, so they’re driving “heads up”—they’re looking for a price or a particular brand. With EV drivers, the charger search begins in the vehicle or on an app, whether it’s a charging network app or a retail chain app. ChargePoint integrates its network into a number of auto OEM infotainment 78 AUGUST 2023 convenience.org

systems. The system tells the driver when the vehicle needs to be charged and the most convenient location to do this. “[The software] becomes part of the driver experience, where the driver is now relying on this technology to help them identify where to go,” said Hughes.

Convenience stores play the most effective role in this EV customer digital journey when a c-store brand owns and operates the charging station on its site, according to Hughes.

“When you do that, you can set the pricing policies, you can decide if there are going to be integrations with loyalty, you can communicate with the driver in any way you want,” he said. “For companies that are neck deep into the guest experience and controlling the guest ecosystem, I think this is really the only way that they can proceed because they’ve spent so much money developing that guest experience, and this is an extension of that.”

Allowing c-store retailers to own and operate their own charging system and monetize this investment is the focus of ChargePoint.

“ChargePoint has been helping its customers develop their EV strategies since before there was anything to strategize for—way out in front of the developing market,” said Hughes. “We are truly an end-to-end solution from hardware to software to support.”

Learn more at www.chargepoint.com.

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

SceneNature, TomRonn, Ronnachai Prommee/Shutterstock; Olga Vlasova/Getty Images

EV driver enters destination into an app or vehicle in-dash display.

Driver selects charger location based on amenities or offers.

EV driver signs up for your loyalty program.

Power your c-store success with EV charging.

Make your store the destination, not just a convenience.

Build a strong EV foundation.

Boost your brand and your bottom line.

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Build awareness, attract repeat customers, and increase revenue by delivering a premium experience that integrates with your loyalty program.

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Scan the QR code to learn more about our simple, seamless solutions.

Copyright © 2023 ChargePoint, Inc. All rights reserved. CHARGEPOINT is a U.S. registered trademark/service mark, and an EU registered logo mark of ChargePoint, Inc. ASSURE and CHARGEPOINT AS A SERVICE are U.S. registered trademarks of ChargePoint Inc. All other products or services mentioned are the trademarks, service marks, registered trademarks or registered service marks of their respective owners.

Convenience Retail Is Global and Local Insights and information flowed freely at Convenience Summit Europe in Dublin.

BY CHRISSY BLASINSKY

80 AUGUST 2023 convenience.org

At the heart

of Convenience Summit Europe is the ability of global retailers to discover where the future of their business is heading, depending on which part of the world their stores are located. Or, as NACS President and CEO Henry Armour expressed it: the global life cycle of convenience retail.

Quoting futurist William Gibson, who famously said “The future is already here, it’s just unevenly distributed,” Armour described how different countries experience a particular issue at different stages—tobacco regulations, the growth of electric vehicles, supply chain changes, trends in delivery/ last mile, sustainability and so on.

This global issues life cycle, said Armour, can help retailers predict and prepare for potential legislation and regulations by understanding how retailers in other countries have already handled them.

NACS surveyed individuals from retailers and suppliers, as well as industry consultants, to find out which strategic industry issues he/she had knowledge of, in which country, and the maturity rate of each issue per country.

Of the 250+ responses representing 43 countries, these issues ranked high: • Inflation, inflation, inflation • Labor, particularly the labor shortage • Advanced technologies like artificial intelligence • Loyalty • ESG from a sustainability lens • EV penetration Content shared during the 2023 NACS Convenience Summit Europe touched on most of these topics, and then some. Record attendance, the diversity of retailers and industry suppliers and the networking proved that there is much to learn from the developing world, as well as many ideas about where convenience retail will go in the future.

NACS AUGUST 2023 81

EMERALD ISLE CONVENIENCE RETAILS NACS Ideas 2 Go store tours took attendees into scenic Ireland and downtown Dublin, featuring food-focused formats that make Ireland a world leader in fresh “foodvenience.”

Donnybrook Fair Donnybrook Fair has evolved into one of Ireland’s leading gourmet destinations, featuring gourmet meals, soups, pizza, baked goods and sandwiches. The first thing attendees noticed walking into the new flagship store in Dundrum Town Centre was the seafood counter and the fresh produce—the reddest and freshest strawberries! The store is a culinary delight and the vast beer, wine and spirits selections feature local and high-end labels.

Upstairs is a restaurant, Loft, serving fresh and locally sourced food and drinks.

S

Market X Located in a modern office complex, Market X is a frictionless convenience store. By downloading a mobile app and storing a payment card, building tenants can access food, snacks, beverages and other on-the-go items.

The store is reminiscent of Amazon Go stores, with more than 90 cameras and artificial intelligence technology combining to make payment automatic.

It became clear that people SuperValu SuperValu is part of the Musgrave Group, largest grocery and food distributor. liked the convenience aspect Ireland’s With 200+ stores throughout Ireland, Superis a landmark and has earned a reputation and the people, but stores Valu for local foods, a strong value offering, consiswere mostly just pit stops tent support of local producers and excellent customer service. (We loved the nod to keeping instead of destinations. it Irish on signage throughout the store.)

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Applegreen With nearly 200 locations in Ireland, Applegreen understands that “hunger is not a good passenger.” That’s why Applegreen embraces multiple foodservice concepts to satisfy any type of craving: Braeburn Coffee, Chopstix, Bueno, Burger King and Bakewell. This store had some elements you would typically find in U.S. convenience stores, like the Coca-Cola Freestyle fountain drink machines.

Circle K The Circle K service station in Kildare has a strong focus on grab-and-go convenience items and foodservice from strong brands, including Camille Thai, McDonald’s, and Circle K’s proprietary made-to-order and grab-and-go sandwiches and salads, as well as baked goods and ice cream, with generous seating areas.

Maxol Newbridge This Maxol store won the 2021 NACS Best of the Best Store award, and it’s easy to see why.

Customers have options ranging from savory to sweet to healthy to indulgent thanks to an extensive array of foodservice offers, including Rosa Coffee, Maxol Deli, The Rotisserie, Burger King and a large convenience store.

Aramark operates the service station.

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Junction 14 Mayfield Considered one of the most acclaimed service stations in Ireland, as well as a market leader in forecourt convenience, Junction 14 has a food-hall atmosphere, with nine different foodservice brands—Zambrero, Subway, Freshly Chopped, Gino’s Gelato, Supermac’s, Papa John’s Pizza, Insomnia Coffee Company, Mayfield Fair, Offbeat Donuts—and a Spar convenience store. Located off the M7 at Monasterevin Co. Kildare, the store has been open since 2011.

Barcelona 2024 Join your global convenience retail peers in Barcelona, June 4-6 for the 2024 NACS Convenience Summit Europe.

Registration is open at www.convenience.org/cse.

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OXXO’s Growth Trajectory When Mexico-based OXXO’s leadership created a vision to increase store count, they asked whether to transform the value proposition or focus just on accelerating growth.

The decision evolved from an either-or proposition to a realization that they must do both.

“We had to work with the culture first to embrace the change,” said Carlos Arenas Cadena, CEO of FEMSA Proximity Division, which operates more than 21,000 OXXO convenience stores across Latin America. “We need leaders—not just bosses—who can create positive contexts that enable us to mobilize the organization towards our goals and reach the vision we all strive for,” he said.

Carrefour’s Focus on Convenience Anne-Laure Plettner, group growth formats executive director at France-based Carrefour, shared the company’s ambitious strategy for growing its convenience store portfolio.

Each year, Carrefour opens around 700 new convenience stores all over the world; around 75% of the retailer’s stores are convenience stores. “This format is important for us, and our ambition for convenience is extremely strong,” she said.

Plettner explained that the retailer’s private label strategy is not to oust national brands, but to compliment the store offer.

“We know that private label is a reason our customers come back to our stores,” she said.

In Belgium, for example, 40% of sales are private label.

In Europe, 90% of Carrefour’s convenience stores are operated by franchisees. Plettner explained how important these relationships are for Carrefour’s c-store growth. “They are our first internal customer and they are an asset to succeed, but they are also one of the biggest challenges,” she said. “We have to work better with them. We frequently ask what they think of us as a franchisor, and we use what they tell us and work together on the solution.”

anna42f/Getty Images

Centra Junction 13 This convenience store has an array of hot and cold foodservice options, like made-toorder burgers and chicken from The Burger Buff, Frank and Honest gourmet coffee, Centra-branded pastries and breads, wings and sandwiches from The Kitchen, and Moo’d Ice Cream. Centra is part of family-owned Musgrave Retail Partners.

CASE STUDIES FROM AROUND THE WORLD Three convenience retailers that are leaders in their countries shared insights and strategic developments within their companies.

The overarching theme? Convenience retail is both global and local.

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•

What Is AI? LEKKERLAND’S EYE ON CUSTOMERS Germany-based Lekkerland SE realized the potential of the growing convenience retail market, which led to its relatively recent partnership with REWE Group. During the global pandemic, Lekkerland recognized the need to give consumers new reasons to actively choose its stores as their destination.

By surveying 3,000 respondents in Germany on their thoughts on convenience retail, COO Hilmar Hübers explained, it became clear that people liked the convenience aspect and the people, but stores were mostly just pit stops instead of destinations. The response?

Create better value and new store formats and focus on pricing and ease of shopping.

“We need to give our customer good reasons to come to our shops every day because she has a lot of alternatives where she can do the on-the-go shopping,” said Hübers. He said “she” because Lekkerland recognizes that female shoppers are the most promising when it comes to understanding why customers engage with the brand—or don’t.

AI IN ACTION “I believe that at the end of the century the use of words and general educated opinion will have altered so much that one will be able to speak of machines thinking without expecting to be contradicted,” said Alan Turing in 1950.

Turing, who died in 1954 and is widely considered the father of computer science and artificial intelligence, proved that a basic computer could be “taught” to solve a problem by an algorithm. In 1956, John McCarthy, a math professor at Dartmouth, hosted the first conference on artificial intelligence, which he defined as the “science and engineering of making intelligent machines.”

Here we are 67 years later and AI is still a hot conference topic—and rightly so. Its evolution is impressive and it is proving to be a viable advanced technology for retail. As Gray Taylor, executive director of Conexxus, pointed out, the applications for AI in convenience retail are significant and include: • Inventory management • Dynamic pricing • Hyper-personalized marketing • Loss prevention and security • Operational efficiencies • Predictive analytics 86 AUGUST 2023 convenience.org

AI is a catch-all term for computer systems or machines that can

1

Perform tasks that would typically require human intelligence, such as: • Observational data acquisition • Visual data acquisition • Data acquisition, both structured and unstructured

2

Learn and improve on their own

3

Serve as processing engines for increasingly huge amounts of data

4

Generate increasingly accurate and actionable predictions

5

Provide actionable conclusions, including automated machines

While the world may seem to be AI’s oyster, technology for technology’s sake can be a trap. This can be a watch-out for going all in on AI if a business doesn’t first establish a fundamental question, which Frank Gleeson raised: “What problem are you trying to solve for?”

With AI, Armour suggested starting with the business problem before unleashing the technology. “Because if you just unleash it, you’re not going to get an effective answer.

I’m a huge believer that the answer in almost anything resides in the question that you ask.

So be very thoughtful on what the question is,” he said.

Taylor presented an AI roadmap to help retailers: 1. Consider AI a strategic weapon • Top-down support, investment and engagement • Platforms, people and culture— not functions 2. Establish clean, consistent, flowing data throughout the enterprise • Establish a central repository for data • Require vendors to support your data dictionary 3. Start slow, build culture and capabilities • Create a data-driven culture with transparency at all levels • Consider simpler robotic process improvements • Consider Internet of Things (IoT) and Web of Things (WoT) additions • Establish potential use cases, responses and clear benchmarking • Test and learn constantly 4. Constantly evaluate and adjust progress to your strategy “What you can do with technology is incredible in terms of actually solving problems and being able to automate things,” said Mark Goldspink, CEO of The AI Corporation, adding that AI “has to have a strong business case and, let’s be honest, we’ve created more data, so why not use it?”

Chrissy Blasinsky is the digital and content strategist at NACS. She can be reached at cblasinsky@convenience.org.

Citrus Grapefruit

Fresh Spearmint

Citrus MINT

Icy Peppermint

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SMOKING ALTERNATIVE

Q: MODISOFT WAS STARTED WHEN YOU WERE OPERATING A CONVENIENCE STORE AND JUST TRYING TO MAKE ENDS MEET. CAN YOU DESCRIBE HOW THE COMPANY WAS FOUNDED AND WHY? In 2005, I founded Modisoft in the back office of my small convenience store; it started as a passion project. As the store grew, manual paperwork, biweekly payroll and inventory management started to become overwhelming, and that’s when I realized I needed a better process. So, I taught myself coding and developed Modisoft, a back-office software that allowed me to streamline my inventory, eliminate paperwork, and make sure my employees were paid accurately and on time. That was always important to me. It changed the way I ran my store.

The software worked so well that I started offering it to my friends and other c-store owners for free. Eventually, a few of the owners sent me unsolicited checks to pay for using it, simply because the software had made their business so much easier to manage.

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RossHelen/Getty Images

Making Convenience More Convenient

This interview is brought to you by Modisoft.

Sohail Modi Founder and CEO Modisoft.com

The number one aspect that allows software to grow with a company is innova­tion.”

As the back-office software increased in users, I started getting requests for more features, which became costly. By the time I decided to create Modisoft, the Back-Office Software Company, we already had about 2,000 customers. Through the years, Modisoft has grown to offer the complete technology stack needed to successfully operate a c-store. Our goal at Modisoft is to continue to revolutionize the industry by offering all the features a c-store needs to be successful, all in one place.

Even with the rapid growth of Modisoft, I still enjoy the title of convenience store owner.

Q: MANY CONVENIENCE STORE RETAILERS OWN OTHER BUSINESSES OUTSIDE OF THEIR C-STORE, WHETHER IT BE A RESTAURANT, A LIQUOR STORE OR CAFÉ. WHAT KIND OF SOFTWARE FUNCTIONS SHOULD A C-STORE RETAILER LOOK FOR IF THEY HAVE MULTIPLE BUSINESSES? The number one software function that retailers should look for is multi-business management. In today’s world, many people like to talk about diversification, which is essential for a business’s security. As retailers expand their businesses, they adapt to trends, so having a software that can manage various kinds of businesses is essential. With a Modisoft back-office subscription, every Modisoft subscriber receives a POS system. We believe that providing an all-in-one solution helps customers grow their businesses.

Q: FOODSERVICE IS THE CORNERSTONE OF MANY SUCCESSFUL CONVENIENCE RETAILERS, BUT WHEN A C-STORE SEES AN INCREASE IN FOODSERVICE BUSINESS, ITS POS SYSTEMS MAY NOT BE ABLE TO KEEP UP. WHAT GIVES SOFTWARE THE ABILITY TO GROW WITH A COMPANY?

Software needs to be robust enough to handle convenience and foodservice. Both kinds of businesses are high-traffic and need many features. The number one aspect that allows software to grow with a company is innovation. Software should also be able to handle day-to-day convenience store needs and with a click of a button manage foodservice technology. For example, fuel management is essential for convenience stores to ensure enough fuel is available while a KDS is an essential tool for foodservice businesses to deliver customers’ orders on time. Modisoft allows you to run both convenience store operations alongside a foodservice business within the same software with the single click of a button.

Q: WHAT TRENDS DO YOU SEE PERCOLATING IN THE CONVENIENCE STORE INDUSTRY, AND HOW DOES RELIABLE AND EFFECTIVE SOFTWARE HELP RETAILERS CAPITALIZE ON THESE TRENDS? The main trends we are seeing in the convenience store industry is an increase in personalized loyalty and self-checkout kiosks. Convenience store owners are turning to loyalty programs to not only boost traffic but also provide an incentive for customers to come to their stores. Today, people want reasons to encourage their purchases. Cartzie allows users to not only create personalized campaigns and text messages but also enables them to provide promotions, coupons, rewards, digital punch cards and much more.

Kiosks are on the rise too because many customers don’t want to wait in line to purchase an item, so there is an opportunity to provide intuitive customer service by giving the customer what they need. Many foodservice businesses also have kiosks in place to take and fulfill orders quickly. Kiosks are putting more convenience into c-stores.

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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.

NEW FLAVORS

Monster Energy Company Nitro Cosmic Peach

Introducing New Monster Energy Nitro Cosmic Peach

Bring the N2oise!

The Monster Energy Nitro line is expanding with the latest addition of Nitro Cosmic Peach. .

We took everything our fans love about Nitro Super Dry and remixed it with a creamy, peach flavor, offering a texture that is better experienced than explained.

With a full load of Monster’s classic energy blend, Monster Energy Nitro will give you the boost you need.

Unleash The Beast and Try One Today! For sales inquires visit https://www.monsterenergy.com/us/en/products/monster-energy/nitro-cosmic-peach

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NEW FLAVORS

Stone Gate Foods Tater Kegs

THE TATER THAT’S GREATER

Tater Kegs are shredded potato mixed with delicious flavors. All the best parts of a baked potato in the perfect handheld package. From the freezer, to the fryer, to the customer.

Serve them in a variety of different ways and in many different applications. Great for to-go. Tater Kegs have a hold time of up to 4 hours under heat lamps.

With all the uncertainties in the world today we should be able to be certain that our food always has great flavor, and Tater Kegs provide that comfort in every bite!

Tater Keg flavors include Bacon Cheddar Chive, Cheese Bomb, Bacon Jalapeno, Buffalo Chicken, Crab Feast, Chorizo Burrito, Breakfast Skillet & The Reuben.

Request samples today at www.taterkegs.com!

NEW TO THE INDUSTRY

NEW DESIGN

Shipley Do-Nuts

Bidi Vapor, LLC

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BIDI® Stick

Be a Shipley Do-Nuts Franchisee

11 Vape Flavors

Established in 1936, Shipley Do Nuts has been delighting customers of all ages for generations. We’re a fast-growing brand that’s well-suited for investors with quick service restaurant (QSR) or franchise expertise, and now with more than 340 stores and growing, we are offering donut franchise territories to make life delicious in more communities! Are you ready to explore the brand’s investment potential in your market?

For additional revenue potential and an assortment of flavors in the vaping category, makers of the BIDI® Stick offer its top-selling vape device in 10-stick packs and 100-pack acrylic display cases. After a major legal victory in August 2022, Bidi Vapor is one of only a handful of companies that can legitimately sell its 11 flavored varieties. Its product, the BIDI® Stick, is a premium, flavored, disposable vape pen designed with high-quality components and recyclable materials. For more information visit http:// wholesale.bidivapor.com.

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GAS STATION GOURMET

A Little Store With a Big Personality Red Dirt Jack’s is a family store with great food and a fun mascot.

BY AL HEBERT

I

t would be hard to find a c-store with more personality than Red Dirt Jack’s in Medicine Lodge, Kansas. It’s a small store with a big presence. The three sisters who own it are creative and run the business with a real sense of fun. Of course, the food is a big deal as well. You can tell that the sisters—Rhonda Gabriel, Marsha Hoagland Reddick and Diane Johnson—are having fun the minute you meet them.

“In March of 2020, Rhonda asked me if I wanted to buy a convenience store.

We both owned convenience stores in the past. I immediately said yes. We asked our sister Diane if she wanted to be a part of our new adventure and she wanted to join us as well,” said Marsha.

“We bought the convenience store in May 2020, and our opening day was May 11. The pandemic hit in March of that year. We feel our success hinges on a couple of factors—our work ethic, which was ingrained into us by our parents, our drive to succeed and the love we have for our hometown, Medicine Lodge, as well as all of Barber County, Kansas,” Marsha said.

About this point in the story, one has to ask, who is Red Dirt Jack?

Rhonda had a life-size stuffed miniature donkey named Jack. Now this is not just any stuffed animal. It’s made with a steel skeleton. It’s tough, kind of 92 AUGUST 2023 convenience.org

like the three sisters. Although Rhonda tried to give it away, no one wanted Jack. So Jack started to accompany the sisters on trips and became somewhat famous due to the blogs created about him. Their cousin suggested calling the store Jack’s.

As for the red dirt? “Many people believe Kansas is completely flat. We live in the Gypsum Hills of Barber County, which is a rugged area with buttes, wideopen spaces and cedar-tree-dotted pastures and red dirt,” explained Marsha.

The little donkey resonates with people here. When customers go on vacation, they take photos while wearing Red Dirt Jack’s t-shirts. Then they post them to the store’s Facebook page.

“Jack is a character. Kids like to get on his back and take pictures. He can hold 250 pounds. During Nurses Week, we dressed him up like a nurse,” said Rhonda.

The previous owners did not have a food program. The sisters decided food would be important to the success of the store. Diane explained: “We added a commercial kitchen to accomplish our goal of providing hot food to our customers. The hot food case is conveniently located between the two cash registers.”

The day at Red Dirt Jack’s begins with breakfast. Made-to-order food items are not offered. “It’s whatever we put in the hot food box. However, we

Jack is the store mascot. His adventures are showcased on the store’s social media.

consistently have the same food items every day. Our cooks prepare breakfast sandwiches, biscuits and gravy, omelets, breakfast tacos, breakfast casserole, muffins and many other breakfast items.

A bestseller is our homemade breakfast burritos. The first day we introduced the breakfast burritos we sold 208 of them,” said Diane.

The store has become a community hub for early risers. “We have customers come in daily and say they are thankful that we have this business. It’s a gathering spot. People arrive at 5 a.m. and solve the world’s problems. About 30 different guys come and go throughout the morning,” said Diane.

Imagine being so dedicated that you lend a hand ... on your wedding day.

Rhonda and Diane show off one of Red Dirt Jack’s many popular lunch specials.

Red Dirt Jack’s offers about 20 or 30 different lunch specials. The sisters cycle them every few weeks, with the exception of a couple staples.

Rhonda explained, “Every Monday and Friday, the specials are the same.

Monday is Chinese and Friday is halfpound hand-patted cheeseburgers and patty melts.”

“Think about a restaurant that serves food made to order. They most likely wouldn’t have the ability to serve 100 hamburgers in an hour. We can. Customers love them. It’s crazy to watch that many customers come in and out of here,” said Marsha.

It’s no surprise that home cooking is key to the success of the food. Grandma Eva’s meatloaf recipe is popular. We do a lot of family recipes. I do my chicken enchiladas. We have lots of home cooking,” said Marsha.

“Another favorite is bierocks. This is ground beef and cabbage along with our secret ingredients and cheese. You

wrap it in dough and then you bake it,” said Rhonda.

In addition to the hot food program, the sisters also installed a deli case, which features a variety of cheeses and deli meats as well as salads. The sandwiches are made to order, but with a twist to keep things as efficient as possible.

“People are creatures of habit. So we keep a file of customer’s sandwich and salad preferences. They walk up or call in and give their name and say, ‘I have a salad or sandwich on file,’” said Marsha, adding, “This system eliminates the need to fill out a sandwich or salad order form, which in turn reduces the amount of wait time for the customers.”

The work ethic of the sisters is an example to employees.

“Part of our success is the three owners work alongside the employees,” Diane said. “I’ve had my arm down the drain of the carwash unclogging the gunk and getting the dead animals out,” recalled Rhonda. Marsha credits ranch life. “Growing

up, we worked cattle with our dad. We got our work ethic from our parents.”

If you talk to Marsha, Rhonda and Diane, it doesn’t take long for their spirit of fun and zest for life to come over you like a wave of marshmallows and sprinkles. Customers of all ages pick up on this. Diane said a customer told her that her 12-year-old son said he wanted to go to the store. He told his mother, “I feel good when I go in. I don’t know what it is, but I like it.”

That good feeling customers get when they come in a business is important. At Red Dirt Jack’s, the purchase is more than a transaction. It’s an experience for customers. That’s how these three engaging sisters keep folks coming back again and again.

Al Hebert is the Gas Station Gourmet, showcasing America’s hidden culinary treasures. Find him at www.GasStationGourmet.com.

NACS AUGUST 2023 93

www

WARNING: This product contains nicotine.

Inside Non-Tobacco Flavored Disposables

Q: HOW DO WE KNOW WHAT VAPE PRODUCTS CAN BE SOLD? Generally, there are three main areas of compliance.

The first is FDA authorization. The FDA has complex processes for manufacturers to obtain marketing authorization to sell 94 AUGUST 2023 convenience.org

nicotine vape products. The FDA has refused or denied over 99% of the premarket tobacco product applications (PMTAs) it has received over the last few years for 26 million products. This has led to dozens of lawsuits in federal court. Most lost, some won. But that’s the first zone of compliance.

The second is with synthetic nicotine. Last year, Congress redefined the term “tobacco products” to include synthetic nicotine and required those companies to submit PMTAs

by May 14, 2022. After July 13, 2022, if a PMTA for a synthetic nicotine product is not approved, it is automatically illegal. Since no synthetic nicotine products have been authorized yet, this means that synthetic nicotine products are, effectively, banned. All of it.

Anything synthetic. So, only products with nicotine made or derived from tobacco leaves and that are following the FDA’s compliance policy for timely submitted PMTAs are legal to sell subject to FDA enforcement discretion.

Then third has to do with the Prevent All Cigarette Trafficking (PACT) Act. That’s about proper registration and licensing in every state. It’s something the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) oversees in coordination with state authorities.

Q: CAN YOU TELL ME WHY THE FDA HAS ALLOWED RETAILERS TO CARRY AND SELL BIDI VAPOR? In August of last year, Bidi Vapor succeeded in its marketing denial order challenge in the 11th Circuit Court of Appeals. That court vacated the MDO we received for our non-tobacco flavored BIDI® Sticks and

Dimitris66/Getty Images

Niraj Patel Founder and CEO of Bidi Vapor LLC, Melbourne, Fla.

Q: FOR RETAILERS, IT CAN BE QUITE CONFUSING TO KNOW WHAT TOBACCO AND VAPE PRODUCTS ARE LEGALLY ALLOWED TO BE SOLD. CAN YOU EXPLAIN THE LATEST FDA ACTIONS ON FLAVORED TOBACCO PRODUCTS? The FDA has continued to ramp up enforcement against unauthorized flavored nicotine vape products, particularly non-tobacco flavored disposables that contain synthetic nicotine and are likely not subject to pending PMTAs. We have seen this in the form of warning letters issued against companies selling Breeze Smoke, Esco Bars and Puff Bar disposables. We’ve also seen FDA work with U.S. Customs and Border Protection to create “import alerts” to detain without inspection specific unauthorized products coming in from overseas, namely Elf Bars, Esco Bars and ST!K disposables by Eonsmoke (Import Alert 98-06), as well as Fume and ZStick disposables (Import Alert 98-08).

Now these companies have to show they are compliant to return to market. Then finally, the FDA recently issued warning letters to 189 retailers, over half of them were convenience stores. In the past, they’ve targeted tobacco and smoke shops. Now it’s the convenience channel.

Nicotine is an addictive chemical.

Q: WHAT MAKES BIDI VAPOR STAND OUT AMONG OTHER VAPORIZER BRANDS? We’ve always focused on legal-age, adult smokers looking for an alternative to combustible cigarettes. That product must give them an equivalent level of satisfaction, provide a consistent vaping experience and offer a real reason to try or switch or eventually quit. We’ve had to do a lot of scientific research to follow FDA guidelines, including a clinical trial, behavioral studies, population prevalence studies and consumer surveys, among other things. We believe we have a viable alternative.

remanded our comprehensive PMTA back to FDA for further review. A few weeks later, the FDA decided not to appeal against the decision. So, according to the ruling, the FDA had to place the PMTAs for our flavors back into its review process. Its original guidance said any product under review could stay on the market during the evaluation subject to FDA enforcement discretion. Although we are subject to FDA enforcement discretion pending the outcome of our PMTA review, we are confident that Bidi Vapor is not the FDA’s priority.

This is because the FDA has indicated that it is prioritizing enforcement of un-

authorized ENDS against companies (1) that never submitted PMTAs, (2) whose PMTAs have been refused acceptance or filing by the FDA, (3) whose PMTAs remain subject to MDOs and (4) that are continuing to market unauthorized synthetic nicotine products after the July 13, 2022, cutoff. That’s where things stand today.

Q: HOW LONG WILL IT TAKE THE FDA TO REVIEW YOUR APPLICATIONS? We can’t speculate, but historically the FDA has taken a considerable amount of time to review products and reach a decision. Again, we can’t speculate.

Q: WHAT ARE SOME TRENDS THAT YOU ARE SEEING IN THE VAPE CATEGORY, AND WHAT ARE SOME BEST PRACTICES RETAILERS CAN IMPLEMENT WHEN MERCHANDISING VAPE PRODUCTS? Certainly the legal battles are something to follow. But it’s not the courts, it’s the market that will prove a product viable. Nielsen numbers have consistently ranked Bidi No. 1 for disposables. Also, visibility is important. That’s difficult in this category, but with all the regulations around consumer advertising, the store is the best opportunity for adult smokers to know these products even exist.

For up-to-date information on federal regulations, check fda.gov/tobacco-products/marketand-distribute-tobacco-product/ tobacco-products-marketing-orders.

This interview is brought to you by Bidi.

NACS AUGUST 2023 95

CATEGORY CLOSE-UP PACKAGED SWEET SNACKS

The Power of Sweetness Increased prices haven’t soured America’s appetite for packaged sweet snacks.

BY SARAH HAMAKER

Packaged sweet snacks accounted for

$3,417

in sales per store, per month in 2022.

Sergey Skleznev/Getty Images

Source: NACS State of the Industry Report of 2022 Data

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Industry Sales

Jarp/Getty Images

I

n 2022, a whole lot of convenience store shoppers were in the mood for something sweet. Packaged sweet snacks sales rose 18.9% in 2022 compared with 2021, according to the NACS State of the Industry Report of 2022 Data. “Packaged sweet snacks were up year over year, with pricing pushing a lot of the sales growth,” said Jayme Gough, NACS research manager.

The category had the second-largest year-on-year gross profit growth across in-store merchandise and foodservice categories, up 22.7%. “Packaged sweet snacks are a small in-store category, accounting for 1.67% of in-store sales in 2022, a 0.16 point increase from 2021.

The category averaged $3,417 in per store, per month sales in 2022,” Gough said. Category margins of 44.98% were up 1.38 percentage points from 2021, which helped push monthly per store gross profits up 22.7% year over year.

“Packaged sweet snacks are a high impulse item for consumers,” said Alyssa Barrett, customer marketing manager, Rich Products. “Capturing these impulse purchases can be a challenge with so many options the consumer has to choose from, but making sure packaged sweet snacks are displayed in highly visible areas in eye-catching displays can help c-stores make those sales.”

The Shout & Sack in Vinita, Oklahoma, does well with packaged sweet snacks, although inflation put a dent in unit volume. “The volume is down some but because the cost is higher, we’re still doing OK in packaged sweet snacks,” said owner Chris Carter. “In fact, I recently ordered a new island deli case because I want to put 30 new packaged sweet snacks into my lineup to add more diversity to the selection.”

Sales are up over last year at the Jolley in South Burlington, Vermont.

“Probably about 75% of our sales are from men who grab a cup of coffee and a donut on their way to work,” said manager Kelley Morin. “With the workers back at full force, we’ve got more

% of In-Store Sales

1.51% 1.67% 2021

2022

Avg. Monthly Sales/Store

$2,874 $3,417 2021

2022

% of Stores Selling

99.1% 99.7% 2021

2022

Source: NACS State of the Industry Report of 2022 Data

people coming into our store wanting

Packaged that little indulgence.”

Last year, FriendShip Kitchen, a sweet snacks 29-unit chain in Ohio, made a bigger push into packaged sweet snacks. “We are a high increased our shelf space in the categoimpulse item ry, from a three- to four-foot gondola to nine to 12 feet,” said Adam for consumers.” section Kaverman, loyalty and brand manager for the Fremont, Ohio-based retailer, which is owned by Beck Suppliers. “We wanted to make packaged sweet snacks a bigger presence in our stores to grow the category for us.”

NACS AUGUST 2023 97

CATEGORY CLOSE-UP PACKAGED SWEET SNACKS

NACS CSX Benchmarking Database, Per Store, Per Month Sales

n 2020

n 2021

AUG

SEP

n 2022

a 2023

$3,293

$3,500

$3,000

$2,500

$2,000

$1,500

JAN

FEB

MAR

APR

MAY

JUN

JUL

OCT

NOV

DEC

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.

98 AUGUST 2023 convenience.org

SWEET TRENDS Many customers enjoy the familiarity of packaged sweet snacks. “Millennials nostalgic for the treats of their childhoods could be tempted by little donuts and other snack cakes,” Gough said.

Others like to treat themselves by trying new flavors, so having a variety of new and classic products in the category can increase the number of returning customers. “You’re definitely seeing products get more indulgent as people look to truly treat themselves on the go,” said Alicia Mosley, vice president of marketing at Keebler. “Consumers want more variety wherever they shop, including at convenience stores. They’re looking for different

flavors, textures, sizes and even packaging formats.”

“Flavor is king,” said John Brown, senior vice president for Flowers Foods. “Fruit flavors such as lemon, cherry, raspberry and orange continue to be key flavor profiles, especially in the warmer months.”

“Blueberry is very popular right now in packaged sweet snacks,” said Morin.

Blueberry-flavored treats are flying off the shelf at Jolley.

At Shout & Sack, blueberry, chocolate chip, banana and chocolate-chocolate have been the top packaged muffin flavors. “I’ve got around 80 linear feet devoted to the category and try to offer as many different flavors as I can,” Carter said.

While the evergreen flavors of milk chocolate, chocolate, vanilla and peanut butter remain in the top spots, the category is branching out into flavors that aren’t traditionally considered

pamela_d_mcadams/Getty Images

Source: NACS CSX Benchmarking Database

CATEGORY CLOSE-UP PACKAGED SWEET SNACKS

Subcategory Data Same-Firm Sample, Per Store, Per Month

Percent of Sales

Avg. Sales/Store

Avg. GP$/Store

Gross Margin %

2021

2022

2021

2022

2021

2022

2021

2022

Snack Cakes/ Pastries/Desserts

56.2%

56.2%

$1,616

$1,920

$701

$868

43.41%

45.20%

Muffins, Donuts

27.8%

28.6%

$798

$979

$340

$425

42.57%

43.41%

Cookies

16.0%

15.2%

$460

$518

$212

$244

46.07%

47.16%

Total

100.0%

100.0%

$2,874

$3,417

$1,253

$1,537

43.60%

44.98%

Packaged Sweet Snacks

Consumers seem to show signs of a more adventuresome palate.”

sweet. For example, Brown pointed to chili, cheddar cheese and black pepper as up-and-coming packaged sweet snack flavors. “Consumers seem to show signs of a more adventuresome palate, so it will be interesting to see how the sweet snacks category evolves as a result,” he said.

In addition to flavor trends, more convenience stores are packaging their own sweet snacks to capture more dollars in the category. That has worked extremely well for Carter of Shout & Sack, which bakes cookies, cupcakes and fried pies onsite and packages them for sale in groups of two to three.

“We go through dozens every day,” he said. The prepackaged baked goods are placed in baskets around the store to capture impulse sales.

SEASONAL TREATS Seasonal flavors in their favorite packaged sweet snacks offer consumers

100 AUGUST 2023 convenience.org

“an affordable way to create special moments around holidays,” Mosley said. “Whether it’s leaning into the holiday spirit with flavors like gingerbread fudge stripes or pumpkin spice fudge stripes, limited-edition favorites that celebrate the season help us excite loyal fans and reach new ones. These seasonal editions have been really successful for us.”

But seasonal trends extend beyond holidays too. “Consumers tend to favor lighter fruit flavors in the spring and summer months and shift to warming, comforting flavor classics in the fall and winter,” said Brown. Flowers Foods’ Tastykake brand has a robust seasonal calendar that capitalizes on those trends, with orange donuts and banana pudding-glazed pies in the summer and pumpkin spice donuts and caramel apple-glazed pies in the fall.

FriendShip Kitchen uses manufacturer shippers to advertise the seasonal flavors. They draw attention to the new arrivals and boost sales. “Our customers are really receptive to these limited-time offers,” Kaverman said.

“People look for seasonal treats,” said Morin with Jolley. “From pumpkin flavors in the fall to blueberry in the spring and summer, seasonal flavors bump sales of packaged sweet snacks.”

PetrMalyshev/Getty Images

Source: NACS State of the Industry Report of 2022 Data

CATEGORY CLOSE-UP PACKAGED SWEET SNACKS

A SWEET FUTURE Consumers will continue to seek out packaged sweet snacks at convenience stores, as innovative flavors and package sizes keep the category fresh and accessible. “We’ve been seeing a lot of enthusiasm among consumers for package types that fit into more onthe-go moments, such as something on the way home from work, sharing on a road trip or enjoying with coffee,” Mosley said.

To meet that demand, convenience stores need to examine how they display packaged sweet snacks. “Offering packaged, convenient items that appeal to different consumers, are visibly dis-

Contact Information

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Altria Group Distribution Company...........Inside Front Cover AGDCTradeRelations@Altria.com www.altria.com www.tobaccoissues.com Bel Brands USA dba Dairy Manufacturer.......................................... 51 https://belbrandsusa.com/ BIC Corporation...................................................................... 17 https://us.bic.com/en_us Bidi Vapor........................................................................................... 91 https://bidivapor.com/login/ Cash Depot............................................................................... 3 (800) 776-8834 sales@cdlatm.com www.cdlatm.com

Contact Information

Thank you to these advertisers who have demonstrated their support of the convenience and fuel retailing industry by investing in NACS Magazine.

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Goya Foods Inc...................................................................................25 https://trade.goya.com/ The Hershey Company ........................................... Back Cover www.thehersheycompany.com ITG Brands................................................................................ 9 (866) 328-2485 Domestic U.S. toll-free (336) 335-6669 North Carolina www.itgbrands.com Johnsonville Sausage Co...................................................................85 www.johnsonville.com/ Liggett Vector Brands Inc......................................................45 (919) 990-3500 www.liggettvectorbrands.com LSI Industries Inc................................................................................53 www.lsicorp.com

ChargePoint........................................................................................79 www.chargepoint.com (408) 841-4500

Mars Wrigley.......................................................................... 99 www.mars.com/made-by-mars/mars-wrigley

Cigtrus, Magical Industries................................................................87 www.cigtrus.com

Monster Energy Company.................................................... 90 www.monsterenergy.com NACS CSE Award Winners................................................................. TK www.convenience.org/global

Cool New Products Guide............................................................90-91 www.convenience.org/Media/NACS-Magazine/Cool-New-Products

DEEL Media..........................................................................................55 www.deelmedia.com (770) 619-1225 Diageo Beer Company USA................................................................75 www.diageo.com

102 AUGUST 2023 convenience.org

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

NACS Show......................................................................................... TK nacsshow.com/SAVE300 NACS SOI Report................................................................................ TK www.convenience.org/Research Pace-O-Matic......................................................................................33 www.paceomatic.com (770) 441-9500 PIM Brands.............................................................................101 www.pimbrands.com

Contact Information

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Premier Manufacturing.............................................................. 5 & 49 (636) 537-6800 www.gopremier.com Savia USA LLC..................................................................................... 40 www.saviausa.com (813) 622-6573 Shipley Do-Nuts................................................................................. 91 www.shipleydonuts.com Stone Gate Foods...............................................................................91 (952) 445-1350 www.stonegate-foods.com Swedish Match North America LLC (Game Leaf)..................61 (800) 367-3677 www.gamecigars.com Swedish Match North America LLC (General Snus)..............35 (800) 367-3677 www.smna.com Swedish Match North America LLC (White Owl)........... 15 & 23 (800) 367-3677 www.smna.com Swedish Match North America LLC (ZYN)............................. 31 (800) 367-3677 www.smna.com Tippmann Affiliated Group............................................................... 13 www.tippmanngroup.com Trion Industries....................................................................................7 (800) 444-4665 www.triononline.com TY INC........................................................................Inside Back Cover https://shop.ty.com/

Lew Robertson/Getty Images

ADVERTISER INDEX

played and are available during key times like mid-morning, after lunch and late at night, will bring more impulse sales to convenience stores in this category,” said Barrett with Rich Products. These retailers see packaged sweet snacks as a small but mighty category. “It’s an integral category to our stores because people want sweetness on the go,” said Kaverman.

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BY THE NUMBERS

Creating an Experience for EV Drivers EV drivers are potentially key to building a bigger basket size, since the extended time it takes to charge (up to 30 minutes) means they might spend more time in the store—if you can get them to walk through the doors.

An important part of drawing EV drivers away from the charger is understanding their secondary mission after needing to charge. NACS Convenience Voices surveyed EV owners to learn why they visited a convenience store. While many of the reasons were similar to those of all convenience shoppers, EV drivers stood out in several ways.

EV owners’ responses indicated that they saw their charging time as a window of opportunity to top up on instore offerings: 12.1% of EV owners stated their mission to enter a convenience store was to fill in a few missed items and 11.7% stated they needed to stock up. These two reasons were about two times higher than all shopper responses.

EV drivers also tended to look for an experience: 11.1% indicated that the mission of their trip was to try something new and interesting, compared to 7.1% of all shoppers. Stopping for a treat was another high-scoring need. Almost three in ten (28.4%) EV drivers wanted to treat themselves to an indulgence, compared to 16.4% of all shoppers.

As the adoption rate of EVs picks up across the U.S., so will the time EV drivers spend lingering in convenience store aisles.

Need State/Mission

EV Owner

All Shoppers

Index

I’m thirsty, drink now

45.8%

46.3%

99

I’m hungry, snack now

32.1%

32.9%

98

Multiple items to consume during the day

12.6%

11.0%

115

Meal(s) for now

15.5%

12.4%

125

Meal(s) to take home

10.7%

9.0%

119

Treat myself to indulgence

28.4%

16.4%

173

Gathering of friends/family

7.4%

4.6%

161

11.1%

7.1%

156

22.8%

17.0%

134

Stock up

11.7%

5.9%

198

Fill in a few missed items

12.1%

5.6%

216

Store services

20.6%

15.2%

136

Restroom

19.0%

17.3%

110

Other

3.1%

8.5%

36

Try something new and interesting Urgent need for something specific

Source: 2022 NACS Convenience Voices

NACS Convenience Voices is packed with valuable, proprietary insights you can only get from NACS. Leveraging the ubiquity of mobile technology enables more precise targeting, expanded geographic reporting, powerful multimedia feedback and more.

Visit www.convenience.org/voices to learn how to participate.

104 AUGUST 2023 convenience.org

Lyudinka/Getty Images. vladwel/Getty Images

EV OWNERS ARE LIKELY TO HAVE HIGHER DWELL TIMES AND POTENTIALLY BIGGER BASKETS