NACS Magazine March 2021

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convenience.org | MARCH 2021

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GPM UNIFIES ITS PORTFOLIO

‘TIS THE SEASON FOR SEASONAL CANDY 2/16/2021 1:03:37 PM

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2/16/2021 1:03:39 PM

convenience.org | MARCH 2021

REGULATION NATION Expect workplace changes in a Biden Administration.

GPM UNIFIES ITS PORTFOLIO ‘TIS THE SEASON FOR SEASONAL CANDY

Local, State and Federal tobacco taxes and restrictions on the sale of tobacco products can hurt your business. Governments often pass new laws quickly, so you need to stay informed about what is happening in your area. You and your business matter and making your voice heard is crucial to our success in fighting for fair tobacco policies.

Take this survey to learn more about how you can get involved

TAKE SURVEY CLICK HERE

Provided on behalf of Philip Morris USA, U.S. Smokeless Tobacco Co., John Middleton, and Helix Innovations. ©2021 Altria Group Distribution Company | For Trade Purposes Only

MARCH 2021

28 36

Regulations and Red Tape

The Biden Administration means a new direction—and regulations—for U.S. labor rules. ork Zone W Mastering the basics can help you win at recruiting, onboarding and retaining team members.

40 Tying It All Together

After decades of buying small chains, GPM Investments is unifying its portfolio.

44

ean Into Employee L Communications

46

‘Tis the Season

52 Cover Art by Beyond Definition STAY CONNECTED WITH NACS

 @nacsonline  facebook.com/nacsonline  instragram.com/nacs_online  linkedin.com/groups/1776505

58 62

A Q&A with Zipline.

Plan ahead to stock seasonal confections for impulse buys and last-minute gifts. he Rise of the Connected Car T As vehicles shift toward two-way communications, here’s how c-stores can be part of the conversation. he Retention T A Q&A with Cravety.

Invention

heers to Home Delivery C E-commerce of adult beverages lifts sales, attracts new customers.

Subscribe to NACS Daily—an indispensable "quick read" of industry headlines and legislative and regulatory news from Washington, along with knowledge and resources from NACS, delivered to your inbox every weekday morning. Subscribe at www.convenience.org/NACSdaily.

CONVENIENCE.ORG

MARCH 2021 |

1

MARCH 2021

There’s a level of responsibility when you run a store in a small community.

Morning coffee traffic has seen only a slight increase from when COVID-19 first impacted dispensed sales.

P.76

IDEAS 2 GO | P.24

08 From the Editor 10 NACS News 18 Good Work

70 Gas Station Gourmet

Handy Stop Market & Cafe stocks healthy and local fare.

72 Global Trends

Consumers increasingly order food from their cars as on-site dining and takeaway options remain limited.

20 Inside Washington

76 Category Close-Up

24 Ideas 2 Go

88 Back Page

The Capitol Hill of today is a far cry from the Capitol Hill two decades ago; carbon sequestration can help reduce the amount of carbon dioxide in the atmosphere.

Orlean Market & Pub builds on more than a century of serving the community.

66 Cool New Products 2

| MARCH 2021

Hot dispensed beverages still impact sales as they slowly recover from pandemic challenges; the pandemic opens opportunity for the liquor category in c-stores.

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

CONVENIENCE.ORG

iStock.com/unalozmen

06 Convenience.org

SALES@CDLATM.COM

CDLATM.COM 888---------

VOLUME 20, ISSUE 3

MARCH 2021

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

What’s top of mind in convenience?

We’ll tell you.

Subscribe to our weekly podcast today and gain access to industry knowledge and trends — all in 24 minutes or less!

Tune in at conveniencematters.com

Sara Counihan Managing Editor (703) 518-4278 scounihan@convenience.org Lauren Brooks Digital Content Manager (703) 518-4283 lbrooks@convenience.org CONTRIBUTING WRITERS Terri Allan, Fiona Briggs, Sarah Hamaker, Al Hebert, Pat Pape, Samantha Oller, Stephenie Overman, Jerry Soverinsky DESIGN Beyond Definition www.beyond-definition.com

ADVERTISING Stacey Dodge Advertising Director/Southeast (703) 518-4211 sdodge@convenience.org Jennifer Nichols National Advertising Manager/ Northeast (703) 518-4276 jnichols@convenience.org Ted Asprooth National Sales Manager/ Midwest, West (703) 518-4277 tasprooth@convenience.org

Episode

PUBLISHING

#270 Retailer Deep Dive: The Goods Mart Rachel Krupa at NYC’s The Goods Mart shares some ideas that helped her business survive and thrive during the difficult year that was 2020.

rticle.indd 1

Erin Pressley Publisher and Vice President, Education & Media (703) 518-4208 epressley@convenience.org Rose Johnson Audience Development and Production Manager (703) 518-4218 rjohnson@convenience.org

NACS BOARD OF DIRECTORS CHAIR: Kevin Smartt, Kwik Chek Food Stores OFFICERS: Lisa Dell’Alba, Square One Markets Inc.; Brian Hannasch, Alimentation Couche-Tard Inc.; Andy Jones, Sprint Food Stores Inc.; Ken Parent, Pilot Flying J LLC; Victor Paterno, Philippine Seven Corp. dba 7-Eleven Convenience Store; Don Rhoads, The Convenience Group LLC; Jared Scheeler, The Hub Convenience Stores Inc. PAST CHAIRMEN: Frank Gleeson, Aramark Northern Europe; Julie Jackowski, Casey’s General Stores Inc. MEMBERS: Chris Bambury, Bambury Inc.; Chris Coborn, Coborn’s Inc. Little Dukes; Joseph M. DePinto, 7-Eleven Inc.; Bhagdeep S. Dhaliwal, Dhaliwal & Associates Inc.; George Fournier, EG America LLC; Anne Gauthier, St. Romain Oil

Company LLC; Varish Goyal, Loop Neighborhood Markets; Christine Hogan, Wheels Convenience Stores; William B. Kent, The Kent Companies dba Kent Kwik Convenience Stores; Sydney Kimball, Shell International Petroleum Company Limited; Chuck Maggelet, Maverik Inc.; Ina (Missy) Matthews, Childers Oil Co.; Charles McIlvaine, Coen Markets Inc.; Lonnie McQuirter, 36 Lyn Refuel Station; Glenn M. Plumby, Speedway LLC; Robert Razowsky, Rmarts LLC; Richard Wood, Wawa Inc. SUPPLIER BOARD REPRESENTATIVES: Rick Brindle, Mondelēz International; Brent Cotten, The Hershey Company STAFF LIAISON: Henry Armour, NACS GENERAL COUNSEL: Scott Sinder, Steptoe & Johnson LLP

NACS SUPPLIER BOARD CHAIRMAN: Rick Brindle, Mondelēz International

VICE CHAIRMEN: David Charles, Cash Depot; Kevin Farley, GSP; George Ubing, E&J Gallo Winery

Coca-Cola Company; TJ Lynch; Vito Maurici, McLane Company Inc.; Bryan Morrow, PepsiCo Inc.; Sharon Porter, Saputo USA LLC, dba Saputo Convenience; Lesley D. Saitta, Impact 21; John Thomas, iSEE Store Innovations LLC; Dean Zurliene, Monster Beverage Company

PAST CHAIRMEN: Kevin Martello, Keurig Dr Pepper; Brad McGuinness, Qopper Inc.; Drew Mize, PDI

RETAIL BOARD REPRESENTATIVES: Steve Loehr, Kwik Trip Inc.; Chuck Maggelet, Maverik Inc.

MEMBERS: Blake Benefiel, Altria Group Distribution Company; Alicia Cleary, Anheuser-Busch InBev; Tony Gaines, NVIP LLC; Mike Gilroy, Mars Wrigley; Josh Halpern, FIFCO USA; David Jeffco, Krispy Krunchy Foods LLC; Tim Knight; Kevin M. LeMoyne,

STAFF LIAISON: Bob Hughes, NACS

CHAIRMAN-ELECT: Brent Cotten, The Hershey Company

SUPPLIER BOARD NOMINATING CHAIRMAN: Joseph Vonder Haar, iSEE Store Innovations LLC

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 employees of nonmember companies at a rate of $70 per year.

Please add $15 for delivery outside the United States.

Subscription requests: nacsmagazine@convenience.org POSTMASTER: Send address changes to NACS Magazine, 1600 Duke Street, Alexandria, VA, 22314-2792 USA. Contents © 2021 by the National Association of Convenience Stores. Periodicals postage paid at Alexandria VA and additional mailing offices.

1600 Duke Street, Alexandria, VA, 22314-2792

CONVENIENCE.ORG

2/11/2021 6:51:39 PM

HAVE YOU SEEN THE NEW WILDHORSE? SAME GREAT FLAVOR. BOLD NEW LOOK.

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CONVENIENCE.ORG

WHAT’S ONLINE | MARCH 2021

Protect Your Business Against Skimming

Submit Your Nominations Today* Visit conveniencecares.org/ Future-Fund to download an application or email Lindsay Buchanan at lbuchanan@convenience.org * Application submission period ends Monday, June 7, 2021

Keep Current

Stay up to date on important legislation that directly impacts you and your business. The NACS Compliance Center is a one-stop shop for all proposed and new regulatory activities that NACS is actively watching and reviewing. Visit www.convenience.org/compliance to learn more.

Existing members, renew your membership to continue to access benefits and tools that your organization needs to thrive in today’s competitive marketplace.

CONVENIENCE.ORG

iStock.com/jabejon

Nominate A Rising Star From Your Company

Safety must be a priority for any business, and keeping c-store employees and customers safe requires everyone on your staff to be trained on important safety topics—including skimming. Ready Training Online’s (RTO) Skimming Prevention and Detection online training module for store employees and managers covers the basics of skimming and the impact these attacks have on businesses.

Through real-world scenarios, employees learn the important role they play in preventing skimming.

The online Skimming Prevention and Detection training is available to current RTO subscription customers at no additional cost and also is offered through the NACS eLearning Store. Additionally, consumers can seek more information, including a preview of the skimming training, by visiting the Ready Training Online website. Learn more at www.convenience.org/skimming.

Sales tips. Customer insights.

Free swag.

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See 5hourEnergyRetailer.com for more details. ©2021 Living Essentials Marketing, LLC. All rights reserved.

FROM THE EDITOR

B ri g h 7-El t lights in ev en in Fa the city a irfax , Va. t e v ia t h " e n do Va. n a nd a nassas, u r " z Sheet -thru in M v i dr e

A new look for a rite neighborhood favo

Bringing Their ‘A Game’ Kim Stewart Editor-In-Chief

I love popping into convenience stores—compact, welcoming and bringing their A game.

8

| MARCH 2021

O

n a quick trip to a big-box office supply store recently, I found myself in the travel section, where laptop bags and neck pillows had been demoted to a hidden nook, and buy-online-pickupin-store fulfilment racks were front and center. Walking into many retail stores these days, I feel like I’ve mistakenly entered a warehouse. Now, the back of the house is the front of the house, and it’s all a bit off-putting for those of us who still prefer to shop in person.

So, I love popping into convenience stores—compact, welcoming and bringing their A game. At Sheetz at 13039 Balls Ford Road in Manassas, Virginia, I noted the drive-thru window I’d overlooked last year on a pre-pandemic visit. I asked the clerk who scanned the Sheetz app barcode on my phone for my MTO sandwich if the drive-thru was new—and if it was busy. He shared that his store is one of the few designed for drive-thru from the beginning, and with a courteous, “Yes, ma’am,” he told me that the window is definitely popular.

And there’s the newly rebranded 7-Eleven (formerly APlus with Sunoco

on the forecourt) at 4647 West Ox Road in Fairfax, Virginia. This is home to the Laredo Taco foodservice concept featured in our December 2020 issue. The food is terrific, and the team members are super-friendly. This trip, the carwash got my attention—its neon-inspired interior lights cycled through red, green and blue, cheering up a cold winter night.

Another retailer undergoing a spiff-up is GPM Investments, featured in this month’s issue. GPM has been growing at a fast clip and is now focusing on unifying its regional brands with a new prototype that includes remodeled store interiors, new forecourt canopies and an overarching theme for each distinct store that still retains the character and integrity of each brand.

These are just a few examples of retailers making the best of challenging times. I’m looking forward to getting back out on the road—or in the air—again one day soon.

Be well, my friends.

CONVENIENCE.ORG

MODERNIZE YOUR MERCHANDISING

SELL MORE IN THE SAME SPACE

TM

Gain Facings and Cut Labor with WONDERBAR®Tray Merchandising

BEFORE WONDERBAR

®

70

VS

AFTER WONDERBAR

®

90 FACINGS

FACINGS

Sell More Peg Candy n Increased facings from 70 to 90, a 29% increase*. n Automatically billboards and faces product. n Reduces losses from bag hook tearout.

WonderBar® Tray Merchandising

n Cuts over 1 hour/day labor for restocking. n Allows rear restocking and proper date rotation. n Dramatically increases sales in the same space. n Adjusts to accommodate various package widths.

Trion Industries, Inc. TrionOnline.com info@triononline.com 800-444-4665

*

Based upon average 8’ run by 5’ high peg candy gondola installations. Your results may vary. ©2020 Trion Industries, Inc.

NACS NEWS

New Category Definitions

WHAT’S NEW: KEY ENHANCEMENTS The latest iteration of category definitions includes a mapping guideline to assist in product

10

| MARCH 2021

reclassification, when appropriate. Descriptions are also provided for all subcategories, and 11 new subcategories have been identified including ready-to-drink coffee, bakery, alcoholic seltzer, E15 and many others. To check out the full list of changes, visit www.convenience.org/ categorydefinitions.

IMPLEMENTATION DEADLINE Updates to category definitions will take effect beginning in 2022. NACS has released Version 8.0 nearly a full year in advance of implementation to allow retailers—specifically category managers and IT support teams—enough time to review and update their classifications to reflect these new changes. The proactive release also allows critical industry software management and data analysis firms like PDI, NielsenIQ and IRI, additional lead time to remap their pricebook systems.

For questions on category classification, contact Jayme Gough, NACS research manager, at jgough@convenience.org.

For questions on mapping and CSX integration, contact Chris Rapanick, NACS director of business development at crapanick@convenience.org.

CONVENIENCE.ORG

iStock.com/VTT Studio

N

ACS has released the new NACS Category Definitions & Numbering Guide–Version 8.0 that reflects current market conditions. The new category definitions take effect in 2022 and mark the first major update since 2010.

Category definitions provide a common language for retailers, suppliers and manufacturers to establish a framework for discussions about benchmarking and market performance at the store level. Version 8.0, developed by the NACS Research & Technology Committee, significantly updates the last broad iteration, Version 7.0, and the more minor updates in Version 7.2 in 2014. NACS released its first guide, the Category Definitions & Numbering Guide 1.0, in 1998. Since then, industry sales have grown from $186 billion to $648 billion, and pretax profits have experienced a similar growth curve.

Common category definitions are the building blocks that help convenience retailers develop marketing strategies and category management plans. These common category definitions are a key part of the CSX database, the dynamic, self-reported subscription database that serves the convenience and petroleum marketing industry and its stakeholders.

Mark Wohltmann Named Director, NACS Global Mark Wohltmann has been promoted to director, NACS Global.

Wohltmann joined NACS in 2017 as the director of NACS Europe. During his tenure, NACS has increased its global engagement and outreach to convenience retailers through unique and personalized meetings, such as the NACS Mark Wohltmann Convenience Leaders Exchange, a series of roundtable events hosted in Europe and South Africa. Wohltmann also serves as the liaison to the NACS regional representatives in Europe, the Middle East and Africa, Latin America and Asia-Pacific.

“Mark’s work in Europe has helped NACS elevate its stature as the global industry subject matter expert and resource for thought leadership and best practices,” said Michael Davis, NACS vice president of member services.

“He has developed a strong network of industry experts in Europe, and his new responsibilities expand his role to manage our global network of regional representatives,” Davis continued.

During the past 15 years, NACS has focused on developing its global presence in response to issues that convenience retailers may experience at different life-cycle stages, such as tobacco regulations, supply chain management, payment systems, foodservice growth, sustainability and mobility.

“Knowing which region across the globe is in which state on an issue allows NACS to provide a highly interactive forum within our global convenience retail community, whether through the NACS Global Government Affairs Council, with representation from the U.S., Canada, Brazil, the U.K., Ireland, Germany, Norway, Russia, Sweden and Australia, through our communications with the NACS International Board of Directors, our regional EMEA/LATAM/APAC Committees or through our constant outreach to retailers in NACS Magazine, NACS Daily and our Convenience Matters podcast,” said Davis.

NACS also hosts two region-specific events, Convenience Summit Asia and Convenience Summit Europe, where convenience retailers can experience what future disruptions are taking place today and how progressive operations in these regions are creating innovative and memorable retail destinations.

For more information about NACS Global engagement and industry-specific events, visit www.convenience.org/global.

NACS Calendar of Events SIGNATURE EVENT

LEADERSHIP

NACS Innovation Leadership Program at MIT Sloan School of Management October 31- November 5, 2021 | Cambridge, MA

GLOBAL

NACS Leadership Forum May 12-14, 2021 | Kansas City, MO

NACS Marketing Leadership Program at Kellogg School of Management, Northwestern University November 14-19, 2021 | Evanston, IL

NACS Executive Leadership Program at Cornell University July 25-29, 2021 | Ithaca, NY

STAFF & OPERATIONS

NACS Show October 5-8, 2021 | Chicago, IL

NACS Convenience Summit Europe June 1-3, 2021 | Virtual NACS Convenience Summit Asia August 16-20, 2021 | Virtual

NACS Leadership for Success May 2-7, 2021 | Richmond, VA

GOVERNMENT RELATIONS

NACS Financial Leadership Program at the Wharton School of the University of Pennsylvania August 1-6, 2021 | Philadelphia, PA

NACS In Store Throughout 2021 | Stay tuned …

NACS Women’s Leadership Program at Yale School of Management October 24-29, 2021 | New Haven, CT

NACS Day on the Hill March 23-24, 2021 | Live Virtual

CONVENIENCE.ORG

NACS Human Resources Forum March 9-11, 2021 | Live Virtual

INDUSTRY INSIGHTS & DATA NACS State of the Industry Summit April 14, 2021 | Live Virtual

For more information about these NACS events, visit www.convenience.org/events. For the most up-to-date information on event cancellations, please visit www.convenience.org.

MARCH 2021 |

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NACS NEWS

‘Best of’ Learning Series This year continues to bring unique challenges, and to help you do your best, NACS has bundled our most popular and influential training and education sessions to provide precision-targeted learning for you and your teams. Tackle the learning on your time and at your pace (you can pause and come back to content anytime you want).

The NACS Professional Learning Series is available for viewing until April 30, 2021.

LESSONS IN LEADERSHIP 6 sessions (3.5 hours of content) We showcase leaders with intention and enthusiasm who are looking to try new things, find new opportunities and know how to stay the course.

• Visioning the Future with Brian Hannasch, president and CEO, Alimentation Couche-Tard • Experimentation on the Edges with Chris Gheysens, president and CEO of Wawa • The Future of Work with Travis Sheetz, president and COO of Sheetz • The Future of Work with Chet Cadieux, chairman and CEO of QuikTrip • “Here for Good” with Julie Jackowski, chief legal officer and secretary, Casey’s • Essential Business and Values with Kevin Smartt, CEO and president of Kwik Chek Food Stores; 2020-21 NACS chairman COVID-19 SURVIVAL PACK 7 sessions (4 hours of content) Filled with tips and advice for navigating a range of operational challenges, including people, vendors and systems, these sessions will help you discover how to find opportunity within a crisis and answer key questions to guide your post-pandemic plan.

• Driven to Delivery • Feeding the New Consumer: Health, Food Trends, Pandemics and More • Adapting to the COVID Disruption: Is There a New Normal?

• Accelerating Growth in a Disrupted Retail Landscape • Motivating and Protecting Your Front Line • From Last Mile to Cashless: Trends Accelerated

by COVID • Spotlight Session: How to Thrive in Chaos

CATEGORY MANAGEMENT & MARKETING ROUNDUP 8 sessions (5 hours of content) COVID-19 has changed how customers shop—as a result, retailers must prioritize efficient adaptation to changes in assortments and in-store product space planning.

• Understanding Dayparts and Optimizing Each Hour of the Day • A Guide to Capitalizing on Key Consumer Moments • Beverages for the Win • Strategies of Category Management Superstars • From Points to Passports: Reimagining Loyalty • Social Media Success: Winning the War for Attention • Feeding the New Consumer: Health, Food Trends, Pandemics and More • Spotlight Session: Ideas From Around the World PUT YOUR PEOPLE FIRST 10 sessions (6 hours of content) As a leader, you’ve made changes to address your employees’ pressing needs and keep them safe. These sessions will help you improve the jobs and lives of your employees while boosting company performance.

• Motivating and Protecting Your Front Line • Forging a Path for Women Leaders (2 parts) • Making the Case for Good Jobs: A Calculator for C-Stores • Navigating the Current Labor Landscape • Moments That Matter: Recruiting, Onboarding and Retaining Employees (3 parts) • Inclusion and Diversity: Having Difficult Conversations • Spotlight Session: The Hero Effect, with motivational storyteller Kevin Brown

Find inspiration and trusted training when you need it—at your fingertips. Visit www.convenience.org/solutions/ training-development for more information and to purchase.

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CONVENIENCE.ORG

NACS NEWS

BY THE NUMBERS

New Product Growth in 2020 New product innovation drives excitement for shoppers and protects loyalty for the brand and retailers, especially when shoppers have a great experience with the new offer. In 2020, new items appearing in convenience retail topped 30,000 and accounted for more than $3.9 billion in channel sales.

Last year’s explosive new product growth tells two contrasting stories. The first is that traditional convenience categories topped the list for incremental dollar sales, and new products contributed to this happening. The top five categories, based on the incremental sales that all new products generated, comprised more than 80% of dollar sales, yet represented only 16.5% of new items by count.

The growth of category count tells another story. In 2020, convenience retail scrambled to add new items in categories that historically have not played a significant role in the convenience product offer. More than 50% of the new items introduced into the channel were from often-overlooked store categories: edible grocery (17.4%), health and beauty care (12.5%), non-edible grocery (10.7%) and general merchandise (10.2%).

Shoppers in 2020 turned to convenience retail to satisfy their need for new product innovation, which contributed to an exciting store experience. A deeper role operators can play is to stock products that shoppers often buy in traditional grocery stores. Then, evaluating the sales and margin potential of these items is an important next step for retailers seeking profitable store growth opportunities.

GM%

# of New Items

New Item Dollar Sales

Edible Grocery

43.70%

5,312

$28,348,793

Health and Beauty Care

56.89%

3,810

$225,564,149

Non-Edible Grocery

41.92%

3,251

$35,032,546

General Merchandise

54.90%

3,098

$24,190,911

Packaged Beverages

41.88%

1,772

$750,895,561

Beer

40.79%

1,680

$556,671,879

Dairy and Deli Products

45.98%

1,672

$28,853,265

Wine

27.48%

1,554

$29,716,862

Liquor

26.90%

1,466

$53,054,081

Salty Snacks

37.73%

1,273

$1,324,387,249

CATEGORY

Source: NACS State of the Industry Report of 2019 Data, NielsenIQ Note: New items are determined by UPCs with more than $100 in item sales for Total U.S. Convenience for calendar year ended December 26, 2020, with $0 channel movement for the calendar year ended December 2019.

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CONVENIENCE.ORG

NEW NACS MEMBERS NACS welcomes the following companies that joined the association between December 16, 2020, and January 15, 2021.

NACS membership is company-wide so we encourage employees of member companies to create a username by visiting www.convenience.org/Create-Login. All members receive access to the NACS Online Membership directory, latest industry news, information and resources. For more information about NACS membership, call (703) 684-3600.

NEW RETAILER MEMBERS Neon Marketplace Cranston, RI www.neonmkts.com

NEW SUPPPLIER MEMBERS BMH Ventures Inc. Pompano Beach, FL www.bluemoonhemp.com

Gruppo Cimbali North America Fairfield, CT www.gruppocimbali.com Harmony Foods Corp. dba Santa Cruz Nutritionals Santa Cruz, CA www.santacruznutritionals.com Hawk Products Corp dba Jositos Chips Hatfield, PA www.jositoschips.com

Shaman Botanicals LLC Kansas City, MO www.cbdamericanshaman.com

IK Distributions Tarzana, CA Marva Becker Coaching Cedar Rapids, IA www.marvabecker.com

Simple Automated Money Inc. dba SAM Corp Warrensville Heights, OH www.samcodirect.com

SEB Professional North America Tustin, CA www.wmfnorthamerica.com

Wow Baking Company Sumner, WA www.wowbaking.com

Which one is right for you?

July 11-16, 2021

July 25-30, 2021

NACS Executive Education* programs have been collaboratively designed by business experts, retail leaders and Ivy League professors to provide an exceptional and unique experience for participants.

July 25-29, 2021

convenience.org/NACSExecEd October 24-29, 2021

*PLAN NOW! Achieve the Master of Convenience designation by completing 3 of our 5 Executive Education programs.

CONVENIENCE.ORG

Oct 31-Nov 5, 2021

MARCH 2021 |

15

NACS NEWS

MEMBER NEWS RETAILER Sheetz announced the promotion of Adam Sheetz into the role of executive vice president of operations. Adam, the grandson of Sheetz founder Bob Sheetz, was previously the vice president of operations for the company.

StrasGlobal has announced the addition of two industry leaders to its Resources for Retailers team. Bill Reilly joins as Resources for Retailers director of membership programs. Jessica Williams joins StrasGlobal as Resources for Retailers director of content.

GoodWest Industries LLC announced the appointment of Quenten Wentworth as chief executive officer. Wentworth succeeds Rick Lawlor, who becomes executive chairman.

Adam Sheetz

Bill Reilly

VERC Enterprises announced the promotion of Antonio “Tony” Depina to district leader. In this new role, he is responsible for monitoring eight VERC Jessica Williams Enterprises in Massachusetts through regular on-site visits and weekly reporting.

SUPPLIER S. Abraham & Sons Inc., a subsidiary of Imperial Trading Company, announced the promotion of Marie Wise to vice president, marketing. Wise joined SAS in 2008, beginning her career in customer service.

SRP Companies has hired Don McIntyre as chief executive officer. Darrin Eisele, the company’s founder and current chief executive officer, has retired but remains on the board of directors.

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Golbon has announced the hiring of Ryan Peters as vice president of convenience and retail solutions. Peters comes to Golbon with over 20 years of senior-level sales and marketing experience in the convenience, foodservice and retail channels.

Ryan Peters

Impact 21 announced that Lisa Biggs, president, has added the role of CEO. Lesley Saitta, former CEO, takes on a new role as Impact 21 chair. In addition, Rob Gallo, chief marketing officer, has the added role of chief strategy officer, and Scott Burchfield, interim vice president of operations, will assume the role of chief operating officer.

KUDOS Giant Eagle Inc., parent company of GetGo Café + Market, announced that it received a score of 100% on the Human Rights Campaign Foundation’s 2021 Corporate Equality Index, a benchmarking survey and report that measures corporate policies and practices related to LGBTQ workplace equality.

Generation WashBar® by Bradley Corp. has received the 2020 GOOD DESIGN® Award, presented by The Chicago Athenaeum: Museum of Architecture and Design in cooperation with the European Centre for Architecture Art Design and Urban Studies. Next Generation WashBar earned a winning designation in GOOD DESIGN’s Bath/ Accessories category.

CONVENIENCE.ORG

GOOD WORK

Maverik ‘Rounds Up’ for Feeding America

M

averik supported people affected by the COVID-19 pandemic through two initiatives with Feeding America, the nation’s largest domestic hunger-relief organization.

The convenience retailer, based in Salt Lake City, Utah, made a $150,000 contribution to Feeding America, followed by its “Round Up the Change for Feeding America” program.

“It’s important to Maverik to give back to the communities where we live and work,” said Chuck Maggelet, president and chief adventure guide of Maverik. “The current pandemic has propelled millions into food insecurity, and food banks are responding to the surge in demand.

We are proud to team up with Feeding America to offer our neighbors additional resources to help them obtain access to nutritious food.”

Maverik asked customers to participate in its “Round Up the Change for Feeding America” campaign from January 26 to February 28 at all Maverik stores in 11 states. The initial donation will be distributed to six Feeding America member

food banks across the Intermountain West in communities where Maverik operates, and the remaining funds will be focused on Feeding America’s COVID-19 Response Fund. Local food banks in Idaho, Nevada, New Mexico, Washington and Wyoming will receive a direct donation of $22,500.

Because of the ongoing pandemic, more than 50 million people could face hunger, with an average increase of 60% across the country in the number of people seeking help from food banks. Feeding America expects there to be a supply gap of eight billion meals needed to meet increased demand.

“Millions sought help from food banks for the first time over the past year, and record demand for food continues into 2021,” said Lauren Biedron, vice president of corporate partnerships at Feeding America. “We are grateful to Maverik for its commitment to help fight hunger in our communities across the country.”

Sheetz For the Kidz Surpasses $1.8 Million in 2020 Altoona, Pennsylvaniabased Sheetz announced that Sheetz For the Kidz, an employee-driven charity supporting underprivileged children, raised more than $1.8 million for children in need in 2020.

“This past year, the need to help children in our communities was greater than it ever has been, and our incredible customers really stepped up in a major way to meet this need,” said Travis Sheetz, president and COO, Sheetz. “Their donations allowed Sheetz For the Kidz to be able to make this past holiday season a brighter one for nearly 10,000 children and families in need in the communities we serve.”

During the months of July and December, Sheetz customers had the opportunity to support kids in their local

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communities through donation boxes near the register and also by adding donations to their purchase at the point of sale. With 100% of all donations directly supporting local children, Sheetz For the Kidz provides children in need the opportunity to celebrate the holidays with gifts such as new toys, clothes and other basic needs. Each of Sheetz’s 615 stores supported more than 16 children from their local communities.

Customers can support Sheetz For the Kidz throughout the year by: • Purchasing a Sheetz For the Kidz water, with 25 cents from each bottle directly supporting the charity • Shopping on AmazonSmile and select Sheetz For the Kidz as the charity of their choice. Amazon will donate 0.5% of purchases to the charity.

• Donating loyalty points • Donating online at www.sheetz.com/ftk CONVENIENCE.ORG

Kwik Trip Named ‘Best Place to Work’

HOW TO GET INVOLVED

La Crosse, Wisconsin-based Kwik Trip Inc. has been honored with a Glassdoor Employees’ Choice Award, recognizing the Best Places to Work in 2021. The award is based on the input of employees, who elect to provide anonymous feedback by completing a company review about their job, work environment and employer on Glassdoor. Kwik Trip is ranked No. 79 on the national list.

“We take our culture at Kwik Trip very seriously and always want to be known as a great place to work. We are delighted that the comments on Glassdoor were so positive that Kwik Trip is now in the national spotlight for being a top workplace. This is quite an achievement,” said Kwik Trip CEO Don Zietlow.

“COVID-19 is in the driver’s seat and every employer has been impacted. This year’s winning employers have proven, according to employees, that even during extraordinary times, they’ll rise to the challenge to support their people,” said Christian Sutherland-Wong, CEO of Glassdoor. “A mission-driven culture, transparent leadership and career opportunities are always hallmarks of Best Places to Work winners.”

NACS works with two groups that support local efforts to donate food and beverages to local food banks and pantries or provide financial support: Share Our Strength’s No Kid Hungry campaign (www.nokidhungry.org) seeks to ensure that all children receive the healthy food they need by working within schools and childcare organizations to create behavioral changes and provide meals. Listen to the Convenience Matters podcast, episode No. 112 “Convenience Stores Can Help Solve Childhood Hunger,” to find out how to get involved at www.conveniencematters.com.

Feeding America (www.feeding america.org) is the nation’s largest domestic hunger-relief organization that works with food banks across the U.S. to collect food to be distributed by community agencies. Many convenience retailers work closely with their local Feeding America affiliates to combat hunger in the community.

For assistance connecting with a representative of Share Our Strength and/or Feeding America in your operating area, reach out to Carolyn Schnare, NACS director of strategic initiatives, at cschnare@convenience.org.

IN THE COMMUNITY Rutter’s, along with Rutter’s Children’s Charities, contributed to dozens of organizations within their market, reaching more than $800,000 in donations in 2020.

“We were very fortunate to be in the position to continue our charitable giving throughout 2020,” said Chris Hartman, president of Rutter’s Children’s Charities. “It was a difficult year for many people and organizations, so we’re excited to continue our support of children, families and our local communities that we serve.”

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Rutter’s charitable giving in 2020 also included more than $230,000 in food donations to the Central Pennsylvania Food Bank’s Retail Donation Program, in the form of prepared subs, sandwiches, bakery items, milk and tea products.

Alta Convenience stores in Colorado, Kansas, Nebraska and New Mexico, raised more than $220,000 for Make-A-Wish Foundation in 2020. Since the campaign started in 2013, Alta Convenience stores have raised just over $700,000 for Make-A-Wish.

MARCH 2021 |

19

INSIDE WASHINGTON

Changing Times The Capitol Hill of today is a far cry from the Capitol Hill two decades ago.

BY JON TAETS

1.5 million

U.S. Capitol size in square feet

1793

The year construction on the U.S. Capitol began

600+

Rooms in the U.S. Capitol

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A

little more than 20 years ago, visitors could freely roam many of the U.S. Capitol hallways. After passing through a security checkpoint, you could take your time wandering through Statuary Hall, which used to be the House Chamber and now is the location of the largest collection of state-designated historical statues in the Capitol. You could learn the history of the building by visiting displays in the crypt, the room directly below the rotunda which was built to be the final resting place of President George Washington,

who instead was buried at Mount Vernon.

The rotunda itself was open to the public, with its grand paintings of key moments in American history highlighted by the Apotheosis of Washington adorning the ceiling 180 feet above the great hall.

That all changed following the shooting of two U.S. Capitol Police Officers in 1998 and the September 11, 2001, terrorist attacks. The Capitol shut down after September 11, 2001, and when the building eventually reopened, security was significantly tightened. The public could still access the House and Senate office buildings on the Capitol campus, CONVENIENCE.ORG

gettyimages.com/Niyazz

FACTS & FIGURES

but access to the Capitol building itself was restricted to formal tours or official appointments only. You could no longer roam freely through much of the building. Several roads around the Capitol campus were closed to the public, and security barriers were installed on both Constitution Avenue and Independence Avenue, allowing those roads to be closed when necessary. That security posture has remained in place since then. The only significant change was the opening of the Capitol Visitors Center, which is a massive underground facility located below the east front of the Capitol. Visitors may freely enter that space where many historical artifacts are located, and you can learn the history of the building or sign up for a formal tour of the building itself. Even with that, access to the Capitol itself remains restricted.

The COVID-19 pandemic restricted access even further. Tours have been suspended, and access to office buildings has been by appointment only. At press time, the riot that took place on January 6 has turned the entire complex into a fortress. The Capitol building has often been described as the “fortress of democracy,” and right now, the entire complex is surrounded by metal fencing topped with concertina wire and guarded by thousands of National Guard troops. This was established after the riot in order to ensure that President Biden’s inauguration could commence safely and securely, which it did. Since the inauguration, the National Guard’s presence has lessened, but reports indicate that a few thousand troops will remain on site at least until the completion of the Senate’s impeachment trial of former President Trump, which at press time was just under way.

What does all of this mean for the convenience industry and NACS advocacy? Normally, during the first few months of a new Congress, NACS spends a great deal of time on Capitol Hill visiting with newly elected members and their staffs to introduce ourselves and our industry. With most congressional staff, and even some members of Congress, working from home either in the Washington, D.C., metro area or in their districts, that usual process is nearly impossible this year.

New congressional rules put in place earlier in the pandemic have allowed members to participate in committee work remotely, including CONVENIENCE.ORG

questioning witnesses at hearings and voting in committee mark-ups. The House even took the dramatic step of allowing for proxy voting on the House floor for the first time in its history. The constitutionality of this move remains questionable, and a federal lawsuit against it, supported

by House Republicans, has been filed, but the practice continues, and a growing number of Republican members have begun embracing the practice in the early days of the 117th Congress.

U.S. Senators must still be physically present to cast votes on the Senate floor, though they can participate in committee work remotely.

With these methods in place, NACS has shifted its focus to virtual meetings. Meeting a new congressional member or staff member virtually

ONE VOICE This month, NACS talks to Carl Motter, chief sales officer at Van’s Kitchens.

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

Engagement to me means getting involved in our government, Carl Motter having a voice and connecting with my state and local officials. The benefits I have received have always been to better understand the issues that affect my business and the channel that we work with.

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

COVID protection for essential businesses and the workforce that makes it up.

What c-store product could you not live without?

Egg rolls—of course!

MARCH 2021 |

21

INSIDE WASHINGTON

Jon Taets is the NACS director of government relations. He can be reached at jtaets@convenience.org.

is far from ideal but is proving effective in ensuring that these new members are familiar with our industry and the challenges retailers face on a day-to-day basis and, most importantly, what lawmakers can do about it. NACS will continue to set up these virtual meetings along with virtual town halls, which give convenience operators the opportunity to talk to legislators directly. We will also be conducting the 2021 NACS Day on the Hill virtually on March 23 and 24 because of the access restrictions in Washington.

We encourage you to reach out to your members of Congress, whether they are new to Capitol Hill or not, and seek to establish a relationship with them. Take some time to introduce yourself and your business and be a resource to members

and their staff should questions arise that are relevant to our industry—and those questions will arise. If you can establish yourself as a resource for members and their teams now, you will be more effective when you need to seek their support or share your opposition to something in Congress later.

Once it is safe to do so, NACS will restart the successful NACS In Store program, where we bring members of Congress to stores to see operations firsthand, and we will resume face-toface meetings in Washington. If you have any questions or would like assistance in setting up an introductory meeting with your congressional representatives, please do not hesitate to reach out to Jon Taets at jtaets@convenience.org.

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

NACSPAC donors who made contributions January 1-31, 2021, are: Paige Anderson NACS

Jenna Collard NACS

Margaret Hardin NACS

Leroy Kelsey NACS

Glenn M. Plumby Speedway LLC

Kym Selph NACS

Jon Taets NACS

Henry Armour NACS

Michael Davis NACS

Keith Harlow NACS

Brian Kimmel NACS

Erin Pressley NACS

Regina Sheehan NACS

Nicole Walbe NACS

Laura Beck NACS

Allison Dean NACS

Kevin Hodges Skupos

Alicia Landrum NACS

Chris Rapanick NACS

Ashley Short NACS

Leigh Walls NACS

Lyle Beckwith NACS

Stacey Dodge NACS

Fred Hoyt Smoke N Go LLC

Greg Levitan NACS

Nidia Reyes NACS

Stephanie Sikorski NACS

Anna Ready Blom NACS

John Eichberger Fuels Institute

Bob Hughes NACS

Brandi Mauro NACS

Jay Ricker Ricker Holdings

Scott Sinder Steptoe & Johnson LLP

Elizabeth Waring Johnson & Johnson Inc.

Katie Bohny NACS

Suzanne George NACS

Jeff McQuilkin NACS

Jayme Gough NACS

Eva Rigamonti RaceTrac Petroleum Inc.

Douglas Spencer NACS

Britt Brewer NACS

John D. Jackson Jacksons Food Stores Inc.

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| MARCH 2021

Nat Keller NACS

Jennifer A. Nichols NACS

Jessica Rowe NACS

Lori Buss Stillman NACS

CONVENIENCE.ORG

Climate Corner

gettyimages.com/MarioGuti

CARBON SEQUESTRATION—CAPTURING AND STORING ATMOSPHERIC CARBON DIOXIDE—CAN HELP REDUCE THE AMOUNT OF CARBON DIOXIDE IN THE ATMOSPHERE.

As the White House and Congress spotlight climate change issues, myriad of proposals and bills are being discussed and introduced. The area of carbon storage and sequestration is one of those areas receiving attention. Scientists and researchers have been exploring new ways to remove and store carbon from the atmosphere. Carbon sequestration is the process of capturing and storing atmospheric carbon dioxide (CO2). It is one method of reducing the amount of CO2 in the atmosphere with the goal of reducing global climate change. There are generally three types of sequestration: biologic, geologic and technological.

Biologic sequestration refers to the storage of CO2 in vegetation, such as grasslands or forests, as well as soils and oceans. Proposals to enhance soil conservation, promote forestation and healthy forests, expand grassland areas and protect wetlands are a few examples of initiatives utilizing biologic sequestration to capture and store atmospheric carbon.

Geologic sequestration is the process of storing CO2 in underground geologic formations or rocks.

The CO2 is pressurized until it becomes a liquid and then injected into porous rock formations or in a geologic basin. For example, carbon is captured from industrial sources, such as steel or cement CONVENIENCE.ORG

production, or an energy-related source such as a power plant or natural gas processing facility.

Then, the carbon is integrated into porous rocks for long-term storage. This method of carbon storage is sometimes a part of enhanced oil recovery, also known as tertiary recovery, because it is typically used later in the life of a producing oil well. In enhanced oil recovery, the liquid CO2 is injected into the oil-bearing formation in order to improve the flow to the oil well. Many policymakers and industrial stakeholders view development of this type of sequestration as a way to allow for the use of fossil fuels until another energy source is introduced on a large scale.

Technological sequestration removes and stores carbon from the atmosphere, and then uses it as a resource. The science community has been looking for new ways to remove, store and use it. For example, graphene is a technological material needed to create screens for mobile phones, computers and other technological devices. CO2 is a necessary raw material to produce graphene.

Whether creating public-private partnerships or establishing pilot programs to help commercialize new technologies to capture, store or reuse carbon dioxide, science, research and development funding will be on the table for lawmaker consideration.

MARCH 2021 |

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IDEAS 2 GO

Staying True to Its History

Orlean Market & Pub builds on more than a century of serving the community.

BY SARAH HAMAKER

I wanted to first observe and see what the community wanted, then make changes.

Orlean Market & Pub is a community hub in Marshall, Virginia. The market is a combination convenience store, gas station and restaurant. The cozy pub serves chef-crafted fare alongside draft beer and wine from local breweries and wineries.

S

even years ago, Kia Kianersi walked into the Orlean Market & Pub in Marshall, Virginia, for a sandwich, and a few months later, found himself the owner. “It was such a homey place that I offered to help the owner, Ted Gillam, with digital marketing for free,” Kianersi said. After working with Gilliam for several months, Kianersi found out Gillam was closing the store.

SEE MORE! Ideas 2 Go showcases how retailers today are operating the convenience store of tomorrow. To see videos of the c-stores we profiled in 2020 and earlier, go to www.convenience.org/Ideas2Go.

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“My family purchased it in 2015 and gave me the chance to run it. I’ve been here every day since,” Kianersi said.

In the years since, Kianersi has put his own stamp on the business, but he did so slowly and with lots of customer input.

“Previous to me, there had been five owners in one decade—every two years the ownership turned over and the new owner would change things up immediately,” he said. “I wanted to first observe and see what the community wanted, then make changes.”

COMMUNITY FOCUS Since the late 1800s, a market has been on the corner of routes 688 and 732 in Fauquier County, serving an everchanging demographic. “We are now a community of fox hunters, bicyclists, motorcyclists, hikers, trail riders and neighbors,” Kianersi said.

CONVENIENCE.ORG

ABOUT

Corned beef hash is one of the made-from-scratch items on the menu at Orlean Market & Pub, which tries to source local.

The c-store stocks coffee from local roasters, barbecue sauce and rubs, honey and jellies, among other regional specialties.

The market combines a gas station, convenience store and restaurant on the property. When Kianersi took over, he installed functioning fuel pumps for gasoline and diesel. “With the nearest gas station eight to 10 miles away, we needed to offer fueling options for our customers,” he said.

The bottom line for Kianersi is to ensure Orlean Market & Pub stays the center of the community. “I’ve been very patient and let changes develop on their own,” he said. “There’s a level of responsibility when you run a store in a small community because many customers will see you as a community center and gathering place, as well as a shop to get snacks, food and gas.”

With the pandemic restrictions still in force, nowadays, he communicates more with customers through the store’s active Facebook page and email list. “We email and post weekly information about store specials and what we’re doing,” he said.

“For our email list, I think our open rate doubled or tripled as customers were eager to find out what we’re offering that week.”

COMMUNITY STORE Orlean Market has the traditional assortment of snacks and drinks, plus ice cream and auto supplies. At the deli counter, customers can get fresh sliced meats and cheeses, as well as takeout foodservice. In the grocery section, customers can pick up essentials, including fresh fruit and vegetables, canned goods, pastas and sauces, sugar, butter, bacon, milk, syrups, CONVENIENCE.ORG

Name of company Orlean Market & Pub

pickled items and pet food. The store also stocks locally made foods, such as peanuts, roasted coffee, honey and chutney.

“We have a consistent menu on the Market side with one or two specials, alongside our house soups and sandwiches,” Kianersi said. “Everything’s made from scratch, and we incorporate local ingredients as much as we can, such as with our country ham biscuit with local ham and honey butter.”

Date founded early 1900s # of stores 1 Website www.orleanmarket.com/ orlean-virginia

BRIGHT IDEAS Like many convenience stores, Orlean Market & Pub pivoted to delivery during the pandemic’s early days. “We added delivery within a seven-mile radius from our store,” owner Kia Kianersi said. “We’ve delivered anything in our store, from a five-gallon gas bucket to deli goods to drinks to ice cream.”

Kianersi calculated the average age of his customers is around 52, which meant having a delivery option was essential to stay in business.

“We have a very mature demographic, so for us to keep our weekly customers, we had to come up with a way to bring the items directly to them,” he said.

In the beginning, customers simply called the store with their order, but now the market has an online ordering option, which Kianersi continues to tweak. “I was thinking about having delivery and online ordering before the pandemic, but it wasn’t at the forefront,” he said. “Once the pandemic started and things slowed down quite a bit, we realized we needed innovative ways to stay in business, and delivery made up for that lost revenue.”

MARCH 2021 |

25

IDEAS 2 GO

Sarah Hamaker is a freelance writer and NACS Daily and NACS Magazine contributor based in Fairfax, Virginia.

Visit her online at www. sarahhamakerfiction.com.

That focus on local extends to the store’s wine selection, which boasts many varieties of Virginia wines grown and bottled nearby. “We’re smack in the middle of 20 vineyards,” he said. “Many of them provide us with free tasting coupons or samples for our customers, as well as allow us to carry their wines.”

On the pub side, the menu tends toward fancier fare, such as duck breast, meatloaf and shrimp and grits from Chef Nicholas Forlano. Pre-pandemic, the pub offered live music and other events. “One of my favorites is the last Friday of the month’s open mic night,” he said. “It’s a century-old tradition here, but we’ve had to put it on hiatus until things get back to normal.”

When the weather warms up, he will reopen the patio and 16 picnic tables on the three acres of land surrounding the market and set up the cornhole games.

“It’s a great opportunity to enjoy the country view with some good food in a safe way,” he said.

COMMUNITY FUTURE Kianersi is not letting the pandemic detour him from his original vision for the Orlean Market & Pub. “I wanted to create a destination spot, a hub where people come to rest during their trip to this area,” he said. To that end, he’s waiting on county approval to add six to eight rooms on the pub side for overnight accommodations.

“We’re in such a beautiful place right in the middle of trail tours and historical tours and winery tours that having a B&B would be good for our community and for us,” he said. “It would help generate more income for us and surrounding businesses, too.”

It’s that rich history of the area that Kianersi wants to convey through his store.

“We’re really extending the experience for the customer,” he said. “We’re right off one of the best scenic routes in the area at an intersection of historical significance, so we hope that our customers can appreciate that as they stop with us.”

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1/12/2021 9:53:25 AM CONVENIENCE.ORG

S N O I T A L U G RE & RE D TA PE T h e Bi d e n A d minis tration m e an s a n e w and regulati direc tion— o n s — f o r U. S . labor rules.

BY S T EPH E N IE O V E R

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R

ight out of the gate, President Biden signaled his intention to reverse the direction of U.S. employment rules. Within days of his inauguration, he issued a series of executive orders affecting the federal workforce, signaling his intentions to seek legislation with a more expansive reach.

In the narrowly Democrat-majority Congress, lawmakers quickly reintroduced the Raise the Wage Act. The bill would increase the federal minimum wage to $15 an hour by 2025. Plus, Congress is likely to consider renewal of the emergency paid sick and family medical leave mandates contained in last year’s Family First Coronavirus Response Act. And Congress may call on employers to provide retroactive recognition pay to frontline and other essential workers because of the pandemic.

The Department of Labor and National Labor Relations Board also have the power to move employment regulation in a new direction, noted Jon Taets, NACS director of government relations. “That’s

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where the real risk is. They don’t need Congress. It’s rulemaking—straight rulemaking,” he said.

Robert Duston, a partner with Saul Ewing Arnstein & Lehr in the Washington, D.C., area, warned retailers: “Whenever we go to a Democratic administration, it’s a huge headache for you folks.”

FEDERAL MINIMUM WAGE Biden included raising the federal minimum wage to $15 per hour in his COVID-19 stimulus proposal as well. That wage was last increased in 2009, though 29 states and more than 40 localities have passed their own wage laws with rates higher than the federal minimum.

In February, the nonpartisan Congressional Budget Office (CBO) released a new report on the economic impacts of raising the federal minimum wage to $15 per hour by 2025 as the Raise the Wage Act and Biden’s proposal seek to do. The CBO found that raising the wage would increase pay for 17 million workers directly but also likely cost 1.4 million workers their jobs entirely.

CBO determined the Raise the Wage Act would increase the federal deficit by $54 billion over 10 years.

Those numbers, coupled with reticence on the part of most Republican members of Congress to dramatically change the minimum wage, indicate it is unlikely that such legislation will become law this Congress unless Democrats are able to manipulate some Senate rules

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that allow for bypassing the filibuster. The same is true of other far-reaching organizedlabor-supported legislation likely to move out of the House of Representatives this Congress.

OSHA UPDATES One of Biden’s first executive orders required the Occupational Safety and Health Administration (OSHA) to issue new COVID-19-related guidance and to consider whether any emergency temporary standards were needed to protect workers from the dangers of the pandemic.

“Biden’s executive order directed federal OSHA to determine if there needs to be an emergency COVID-19 regulation. It’s a safe bet that federal OSHA will determine that they will need one,” said Todd Logsdon, co-chair of Workplace Safety and Catastrophe Management practice for Fisher & Phillips LLP in Atlanta. He predicted that by the middle of March “we will see a temporary standard.” Such a standard stays in place for six months, “then it either goes away or it becomes permanent.

I expect it will become permanent.” States are allowed to run their own OSHA programs, but only about half do so. If new federal OSHA standards are rolled out, “states have to have something similar,” he said.

To see what provisions a federal emergency stanfull-time c-store dard might

$11.75

Average associate wage in 2019

Since 2009, convenience store wages have increased

42%.

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contain, Logsdon suggested looking at the four states that have rolled out their own standards to address COVID-19 in workplaces. “Look at what those four states have done. Michigan and Oregon are not too bad,” he said. “California is onerous.

[Business] owners are hoping for Virginia. I think Virginia might be a good template.” California imposes standards on employers, while Virginia allows employers to self-assess their level of risk.

There may be changes in the way employers are required to report COVID-19 cases to health departments, he added, as well as a possible increase in training obligations.

Something that OSHA could address, according to Duston, is some type of mask-wearing mandate. “Will OSHA go with an employee mask mandate? Most stores would appreciate a clear mandate. But a customer mandate—I don’t know if c-stores want that.”

Maverik practices social distancing and requires employees to wear masks, regardless of local ordinances, according to Kim Lazerus, vice president, human resources, for the Salt Lake Citybased company. Maverik already complies with federal, state and local rules in the 11 intermountain west states in which it operates, and “we do not anticipate any additional challenges,” she said.

To protect its nearly 6,500 employees, Maverik has “done some creative things with scheduling,” Lazerus said. Since late last summer, “people work with a core group, so it keeps them exposed to the same individuals. It has helped us limit the number of people impacted” by an outbreak.

Before the scheduling system was put in place, large groups of employees had to quarantine when an individual tested positive, she added, and “We have had to shut down the store. That’s impactful on the bottom line.”

The most expensive question, Duston said, is will OSHA issue standards regarding ventilation, such as the speed and regularity of the movement of air in a workspace or the use of outside air or air filters? “That would get attention.

Older stores only have so much ventilation,” he said. “If there’s a requirement on that, it will be a pocketbook issue.”

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“Most sto res would appreciat a clear [m e ask ] mand ate.”

Lazerus said that early in the pandemic Maverik looked into making ventilation upgrades and found that “it would be significant for us. We put it on hold.”

While Logsdon said he’s heard “a lot of talk” about ventilation requirements, “I don’t think you will see that in the emergency standards. It may say to ‘develop a plan,’” which could open the door “to new standards for retailers” down the road.

OVERTIME AND JOINT-EMPLOYER RULES Beyond new OSHA standards, NACS expects the Department of Labor (DOL) and the National Labor Relations Board (NLRB) to be very active as well, Taets said. Two key rules issued by the Trump Administration rolled back changes the Obama Administration made that have significant impacts on the convenience industry and business in general. Those were the so-called overtime rule and the joint-employer rule.

Biden’s Labor Department is expected to seek to change both of those rules again, returning them closer to what the Obama Administration sought to do.

Both the DOL and the NLRB have nearly identical joint-employer rules, and NACS expects both agencies to seek similar changes under the new administration. The joint-employer rules govern when an employee of one company does enough work that benefits another company to be considered jointly employed by both companies. If joint employment is determined, one company can be held liable for labor violations committed by the other with respect to that employee.

This is most prevalent in franchise scenarios where a local employee working at a franchise may be deemed jointly employed by the franchisor as well; however, depending on the government’s interpretation, that could be applied to certain supplier or maintenance situations in even non-franchised convenience operations. Under Obama, both the NLRB and the DOL loosened the government’s tests used to determine joint

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employment, making it easier for a worker to be considered jointly employed. The Trump Administration reversed those actions, and NACS expects the Biden Administration to return them at least closer to the looser Obama standards.

The Obama DOL also made a significant change to the “white-collar” exemption salary threshold of the overtime rule. Any employee making below the salary threshold must be paid at 1.5 times their average hourly rate for any hours worked beyond 40 in any given week. In 2016, the DOL more than doubled that threshold from an annualized $23,660 to $47,476. (The rule is actually determined on a week-to-week basis, not annually.) That rule was struck down by a federal judge in 2017 before it could go into effect. The Trump Administration took up the cause and in 2019 issued a new rule that set the threshold at an annualized rate of $35,568, which was much closer to an inflation adjustment from the old threshold. NACS considers it likely that the Biden DOL will reopen that rulemaking and seek to, at a minimum, raise that threshold, though likely not quite as high as the Obama team sought to do, Taets explained.

EXPANDED LEAVE? Congress can renew the emergency paid sick and family medical leave mandates contained in last year’s Family First Coronavirus Response Act (FFCRA). The mandates required certain employers to provide employees with paid sick leave or expanded family and medical leave for specified reasons related to COVID-19.

Hagood Tighe, co-chair of Fisher & Phillips Wage and Hour practice in Atlanta, outlined key ways that a new law could differ from FFCRA: • The paid leave obligation could be extended to apply to employers with more than 500 employees (who were not covered by the FFCRA) and less than 50 employees (who CONVENIENCE.ORG

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• The plan could extend the federal tax credit to employers for the full cost of paid leave for employers with less than 500 employees.

Based on its size, Maverik was not required to provide leave under the FFCRA, according to Lazerus, “but we did create our own program, which mimicked the FFCRA program.” Expanding leave isn’t a big concern, she said. “Our owners want employees to be able to take care of themselves and their families.”

Any type of emergency leave that is passed will bring with it administrative headaches, Tighe warned. One thing that isn’t clear, he said, is whether any new leave program would be considered an extension of the prior emergency program: “If someone took leave under the old program, will that time off count, or will a new 14-week entitlement be started? That could have a pretty big impact.”

Tighe said he’s been talking to employers who are considering providing leave on their own but that he tells them “be cautious. Wait and see how this plan plays out.” That’s because any employerprovided leave might have to be given in addition to any government-mandated benefits.

Biden has expressed interest in broadening the scope of paid leave. “I doubt we will see that in the immediate term, but I think paid leave will be proposed a little later. I do think you will see something coming,” Tighe said. “If Congress requires it, I hope it would replace any paid leave at the local level. It would make it easier to comply with one law rather than a patchwork of laws.”

Another possible move by Congress may be to call on employers to provide back recognition pay to frontline and other essential workers. It’s not

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clear how that might affect convenience stores, according to Taets. “We haven’t seen the language.

I tend to think there will be some effect, but we can’t be sure yet.”

NO QUICK ACTION The NLRB and Equal Employment Opportunity Commission (EEOC) may not change direction quickly. Although both agencies are chaired by Democrats, they started this year with Republican majorities on their governing boards and may continue to have a Republican majority for some time.

The NLRB is governed by a five-person board and a general counsel. Early on, Biden fired the Trump-appointed general counsel but “substantially, until August nothing can be done,” Duston said. That’s when Republicans lose their majority on the board.

The NLRB will probably “look for ways to make organizing easier for labor unions. That may or may not have an effect on c-stores,” Taets said. “I would not be shocked if the NLRB looked at ways to make it easier to organize small organizations.

This is one space where I think Biden is going to pick somebody a lot more progressive. Labor is an area where he’s been more progressive.”

Last September, the Senate confirmed three new EEOC commissioners, ensuring the agency will have a Republican majority until July 2022. “EEOC issues are ever present. Nothing is going to dramatically change” in the short run, Duston said.

As the new administration moves forward on all these fronts, Taets urged c-store executives “to talk to legislators. There’s pressure that can be put on” to influence the direction labor law takes.

Stephenie Overman is a workplace writer and author of Next-Generation Wellness at Work.

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Mastering the basics can help you win at recruiting, onboarding and retaining team members.

BY PAT PAPE

ven when unemployment figures are high, finding good team members can be challenging. That’s why NACS last fall brought together experts to share best practices in “Moments that Matter: Recruiting, Onboarding and Retaining Employees,” a three-part Crack the Code Experience session.

Kim Lazerus, vice president of human resources for Maverik stores, moderated the session that covered tips for creating “moments that matter” in attracting applicants and engaging employees.

Panelists included Aaron Rolka, recruitment evangelist, employer insights, at Indeed, the global job-listing website; Bob Huebner, president of 200Mark C, a career consultancy; Kevin Engle, director of people processes, Maverik; Matthew Stephenson, director of learning and development, Casey’s General Stores, and Renzo Bassanini, executive director of field HR, RaceTrac Petroleum.

Professional recruiting and interviewing processes are important first steps in developing a long-time employee, said Lazerus. “Creating the right experiences helps drive their engagement up and increase their tenure with the company.”

RECRUITING Recruiters at Indeed have surveyed applicants to determine what engages them or turns them off during the job-hunting process.

“Finding a new job is hard and time consuming,” said Rolka. “But once applicants make that decision, they’re energized. So, the quicker you get back to job seekers—especially good candidates—the more likely they’re going to keep that excitement going.

Often, they apply and wait and wait [to hear back].

That’s demoralizing.”

Casey’s formally assessed its hiring process by interviewing store managers, team members and new hires and discovered that contacting a candidate within 72 hours of receiving the application is essential. “Everyone is competing for those top

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candidates, and from the time they apply to the time they disappear is about 72 hours,” said Stephenson.

Before the interview, be sure the applicant knows when and where to arrive, who they’ll meet with, how long the interview will last and where to park. “It sounds silly, but have you ever shown up for an interview and didn’t know where to park?” Engle of Maverik asked. “Candidates also need to know what’s next. Will they hear from you tomorrow or in a month?”

Stephenson noted that store managers often follow an interview checklist, asking applicants identical questions in the same order. “That’s not a very personal process,” he said.

At Maverik, hiring managers communicate with new employees using talk tracks, including

THE GOOD JOBS STRATEGY Entry-level convenience store jobs can be stepping stones to long-term careers. NACS is working with the nonprofit Good Jobs Institute to help retailers assess how good jobs could help them reduce costs, increase revenue and improve labor productivity. The Good Jobs Strategy, which is a combination of investment in people and smart operating choices, increases employee productivity, motivation and contribution and promotes operational excellence. Access the tools: The Good Jobs Calculator, The Good Jobs Scorecard and The Good Jobs Strategy Diagnostic at www.convenience.org/goodjobs.

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WE WANT ANY MISTAKES TO BE MADE IN A SAFE ENVIRONMENT SO THEY CAN LEARN WITHOUT STRESS. email and phone conversation templates that are personalized for the individual. They also follow interview guidelines with questions that are both standardized and aimed at specific competencies.

Rolka suggests personalizing the interview.

“Use their name, and mention something interesting from their resume, such as their school,” he said. “Set the relationship off on the right foot.”

When it comes to settling on a candidate, “If you extend a verbal offer, get the offer letter out quickly,” Engle said. “Turn-down letters should be personalized, timely and invite the applicant to apply again in the future.”

Internal candidates at Maverik receive feedback forms. “We want to give them the power to apply for other positions so they can move their career forward,” Engle said.

“Whether we like it or not, job seekers aren’t applying for just one job. They’re applying for two or three jobs, and they’ll compare the process between companies,” said Bassanini.

As soon as possible, let candidates know if they weren’t selected, advised Rolka. “Most organizations never poll candidates for feedback after the interview process—especially those who aren’t offered the job. You can learn a lot from those individuals.

They’ve spent hours with you going through this process. Give them the opportunity to provide feedback. It will help you fine-tune your process.”

And remember, “our applicants are also our guests,” said Stephenson. “And we should treat them as such.”

ONBOARDING All hiring managers must be equipped with effective tools for successful onboarding, and new employees need appropriate tools to help them navigate that experience. For example, new hires should receive a timeline. “What does the first week look like? The second week?” Engle said.

“You don’t want the candidate wondering.”

Casey’s newbies receive a welcome email telling them everything about their first day on the job: where to go, where to park, who they’ll meet. It also details their wages, the company’s pay cycle and what to expect in the first weeks. When they arrive on their first day, they’re also greeted with their own welcome sign and teamed up with a “learning buddy.”

“People are often uncomfortable asking questions of the boss, so we assign them a peer,” said Stephenson. “They think they’re supposed to learn everything the first day, but day one is getting them processed into Companies of all sizes need leaders who can manage people, the system. Learning job skills doesn’t start execute ideas and keep the core functions of a business running until day two.” smoothly. Having the right person in a managerial position is essenRaceTrac employees visit a training lab tial to the success of your business—and retention of store staff. on their second workday.

Specifically designed for the convenience and fuel retailing “We tell them they aren’t expected to industry, LeadAbility is an effective and proven test to administer be an expert,” said Bassanini. “We just to current employees and external applicants to help you select want them to touch and feel the techthe right managerial candidates. It measures the behavioral comnology they’ll deal with. We want any petencies such as situational judgment and initiative, along with mistakes to be made in a safe envicharacteristics proven to best differentiate between successful ronment so they can learn without management team members and those who will struggle in the role. stress. Onboarding is an extension Learn more and get started today by contacting Doug Spencer, of the interview. You are trying NACS director of products and services, at (703) 518-4293 or to see if the candidate is a good dspencer@convenience.org.

DISCOVER THE LEADERS IN YOUR COMPANY

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fit for you, and the candidate wants to see if you are a good fit for them.”

RETAINING All convenience store operations share the same common enemy: employee turnover. More than one in three full-time store associates leaves their positions in less than 30 days, according to the NACS State of the Industry Compensation Report of 2019 Data. The turnover rate for full-time store associates was 81.3% in 2019, while the rate for part-time store associates was 160.2%, NACS data show. The total average store associate turnover rate was 121% in 2019, slightly up from 2018’s 118%. The manager turnover rate in 2019 was 22%.

If employees are engaged in their work, however, they’re more likely to stay. Research finds that those who stay and perform best have a vested interest in what’s going on.

“There’s clear connection to purpose,” Huebner, of 200Mark C said. “Employees are happiest when working alongside people who have the same commitment to quality that they have and when they get the opportunity to use their strengths on the job every day.”

Huebner is a strong proponent of what he calls the “Keep Them Check In,” an informal discussion that the manager initiates with the employee.

“Some organizations do exit interviews after an employee decides to leave, but that’s too late,” he said. “The Keep Them Check In catches them before they make that decision.”

By striking up a friendly, but informal conversation with the employee and asking about their personal needs and goals, the manager also gets to discuss the employee’s current job performance and opportunities for the future. “You have a chance to hear what matters to them—to get a sense of who they are,” Huebner said. “And it’s a great opportunity to tell them how they can get what they want from your business.”

The panelists agreed that giving an employee new challenges sets them up for success and helps build their confidence. Stephenson suggests assigning a 60-day store employee a key task, such as the cigarette audit. “The store manager is still engaged in it, which provides a safety net, and it helps to develop individual responsibility [in the employee],” he said.

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Administer this test to prospective employees before you interview. The test asks a series of questions that will determine basic skills, dependability, work ethic and other key attributes of long-lasting, topperforming employees.

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“We make it safe for employees to make a mistake and grow from it,” Bassanini said. “It creates a whole different level of buy in.”

Exiting employees often say they are leaving for more money, but “that’s a cop out,” said Huebner. “Usually, the person doesn’t see an opportunity to grow. Provide that safety net and throw challenges to people to help them learn. You spend a lot of time, money and effort on recruiting, hiring and onboarding the right people. You must build on that investment to continue to grow your business.”

Pat Pape worked in the convenience store industry for more than 20 years before becoming a full-time writer.

See more of her articles at patpape.wordpress.com.

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TYING IT ALL

Together After decades of buying small chains, GPM Investments is unifying its portfolio.

BY SARAH HAMAKER

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A

fter accelerating from 300 stores to close to 1,400 retail stores and 1,500 dealer sites in less than 10 years, GPM Investments LLC stood at a crossroads. “Our strategy for the last eight years has been acquiring stores through buying smaller regional chains,” said Michael Bloom, executive vice president and chief merchandising and marketing officer at GPM. “Our goal was to get to scale, and now that we’ve arrived at a level of scale, it’s time to go back and reinvest in our assets.”

That reinvestment coalesced into a single question: How could GPM tie together a bunch of regional brands into a cohesive unit without losing what made those brands special? “It’s no secret that we haven’t spent a lot of money in these stores,” Bloom said. “But now we’ve started remodeling and resetting these stores to maximize the customer experience.”

While the company originally had the first next-generation remodel scheduled for last summer, the coronavirus pandemic upended those plans.

“We’re glad we held off, as in the interim, we learned a lot about how the consumer was changing their shopping behavior and the products they were purchasing,” he said. “They were buying larger sizes and making fewer trips, so we were able to tweak our prototype to deliver on the customer expectation and improve their experience.”

THE THOUGHT PROCESS With a portfolio of beloved regional chains, GPM had no intention of jettisoning the goodwill built up in those communities for years by wiping away individual store identities. “These family legacy brands like Village Pantry, Scotchman and E-Z Mart are very well-known,” Bloom said. “We wanted to keep the integrity of those brands because it’s important for the former owners, employees and customers. These are brands that customers have come to love, and it’s our responsibility to bring them up to date.”

About 18 months ago, GPM began working on a new prototype concept that would tie everything together yet allow its diverse suite of brands to shine. “The average life of a brand we’ve acquired is in the 50-year range,” Bloom said. “That’s a lot of brand equity we didn’t want to squander.”

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To solve that potential problem, the company came up with an overarching theme for each store. One example is “fas EATS!” and “fas DRINKS!”. Each brand’s name still graces the redesigned entrance, but inside, customers see the bright, colorful signage with the same theme and wording.

The store design includes new forecourt canopies from fuel partner Valero and bright lights both outdoors and indoors. The inside remodel included opening up windows to brighten the stores. Each store also will boast a community wall to highlight local events both for the area and store.

UNIFORM YET UNIQUE For a company-wide redesign to work, a level of uniformity had to be layered over each regional brand. “We took a hard look at everything and came up with a list of what each store had to have in terms of merchandising and categories,” Bloom said.

For the prototype, GPM started from scratch with what today’s customer expects in a modern convenience store. “Delis with fresh food—that’s entry into the game today,” Bloom said, ticking off other important categories: frozen foods, grab and go, roller grills, beer caves and the right number of cooler doors (14 is the new minimum standard).

Many of the stores will have the ability to prepare fresh pizza, salads and sandwiches. All will

Every store will have the same base assortment of products, but each will have the ability to add regional favorites.

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get a new bean-to-cup coffee program. The company also targeted the back bar for the right mix of lottery, cigarettes and other tobacco products in a cleaner, branded look.

“Every store will have the same base assortment of products, but each will have select regional favorites,” Bloom said. For example, many areas have unique candy items that sell better in that market, so those stores will carry the local confection. “Internally, we developed a process to use regional information to develop regional planograms,” he said. “We’re not going to interfere with the integrity of the core base

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planogram because we built in the ability to add some local items into the master plan.”

The company plans on doing everything it can to avoid closing a location during the remodel, which aims to keep the same flow if possible.

“Our stores average 1,500 to 3,000 square feet, so there’s not a lot of room to maneuver,” he said. “If it makes sense to leave things like checkout in the same place after the remodel, then we will. But the redesign also gives us a chance to correct layouts to improve the customer experience.”

Overall, the company hopes that having the same look and feel inside stores across different CONVENIENCE.ORG

Renderings by GSP

GPM shared with NACS Magazine renderings by GSP of a new Fas Mart store in Richmond, Virginia, slated to open this spring. The exterior is modern, bright and welcoming, with large windows to let in natural light. Signage over the back bar touts the fas Rewards loyalty program, and an adjacent wall will highlight local community events. The new Richmond store will have foodservice space to prepare fresh pizza, salads, sandwiches and other foods. The entrance is designed for high-impact category placement, and signage is unified throughout the store. See video at www.vimeo.com/480813782.

brands will clue in customers that the brands are connected. “We want our customers to know they will get the same great experience in a Scotchman as in a fas mart,” Bloom said.

OVERCOMING CHALLENGES As with many companies, the COVID-19 pandemic upended some of GPM’s reboot plans. “We don’t build our stores from scratch—we’re working with existing footprints for the most part,” Bloom said.

That meant when GPM realized stores needed more freezer space because frozen foods sales skyrocketed, it was challenging to add freezers into the plans.

“Freezers jumped to the top of the list of things we needed to adjust because of the pandemic,” he said. “We had freezers in very few stores, and we couldn’t keep items like frozen pizzas in stock.”

While freezers will be in every store as part of the remodel, GPM worked to add them to as many stores as it could over the summer. “The biggest challenge was actually getting the freezers, but once we figured that out, we’ve added a nice assortment of frozen foods, including frozen dinners, French fries, frozen burgers and six to eight different brands of frozen pizza,” he said.

Currently, about 200 stores have freezers, and approximately 800 stores will have them in 2021.

The pandemic also accelerated the sale of takehome beer. “The sale of 12-, 18- and 24-packs of beer is off the charts,” Bloom said. To meet that need, GPM enlarged its display space in stores where it could and made sure many remodels will have a beer cave. “We don’t see this stopping. We think people will change their behavior, continue to work from home more, make fewer trips and buy more,” he said. “What better retailer than a convenience store close to home for cold beer, snacks, candy and more?”

GPM also became an early adopter of carrying face masks and hand sanitizer. “We sold our first mask at the end of March/early April last year when other retailers didn’t have them,” Bloom said. “We think these products are both impulse and planned purchases, so we consider them essential products to have in stock all year round.”

CUSTOMER CONNECTION During the planning stages, GPM based much of its decisions on data. “We’re a data-based customer CONVENIENCE.ORG

decision-making company,” Bloom said. Data sources include Spectra, IRI, NielsenIQ and NACS for geographic, demographic, trips and market share for grocery, convenience stores and dollar stores.

“Mining that data taught us about frozen food,” he pointed out. “When we looked across the data points and found out how much new business was in frozen pizza, for example, we were able to tap into manufacturers and suppliers as close to the front of the trend as possible.”

“Over the past few months, we have had the opportunity to take learnings from our customers’ shopping behaviors as well as the changing consumer environment and implement key updates to our remodel program and in-store offering to provide an enhanced customer experience emphasizing the local regional brand,” said Arie Kotler, president and CEO of GPM and its parent company, ARKO Corp.

Ahead of the remodel, the company relaunched its customer loyalty program in early November.

“We refer to it as a customer relationship marketing program with loyalty as the outcome,” Bloom said.

“The more we communicate with our customers and understand them, the more loyal they become.”

The new fas Rewards platform run by Paytronix provides both nurturing and value offerings for enrolled members. “We know who they are and what’s important to them, with a ‘your way’ points redemption part,” he said. The relaunch also ties all of the store brands under one umbrella, so customers can acquire points at one brand and use them at another.

As GPM presses forward with remodel plans, Kotler said the company would continue to acquire stores. “Our remodel team and our acquisition team work independently and will continue to do so into the future,” Kotler said. “We’re not going to slow down because this is our growth story—buying brands with history and equity and making them part of our larger family. We think of ourselves as ‘A Family of Community Brands.’”

Sarah Hamaker is a freelance writer and NACS Daily and NACS Magazine contributor based in Fairfax, Va. Visit her online at www.sarahhamakerfiction.com.

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LEAN INTO EMPLOYEE COMMUNICATIONS WITH STORES OPERATING IN SURVIVAL MODE, HOW CAN RETAILERS ALIGN EMPLOYEES AND MAXIMIZE RESOURCES?

Melissa Wong CEO and Co-founder of Retail Zipline www.retailzipline.com

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THE HEALTH AND SAFETY OF EMPLOYEES (AND CUSTOMERS) IS A TOP PRIORITY FOR RETAILERS, BUT IT CAN BE DIFFICULT TO ENSURE CONSISTENCY OF MESSAGE AND EXECUTION ACROSS STORES. WHY IS THAT, AND WHAT CAN RETAILERS DO TO IMPROVE? Today, only 29% of direction sent from HQ to stores is executed correctly— that’s across all industries, not just convenience stores. We know it’s not the fault of store teams. Unfortunately, most haven’t been given the tools and information they need to be successful.

I lived this problem first-hand in my comms role at a large retailer before founding Retail Zipline. What I realized was that the key to store execution was better communication and technology.

Consider the huge amount of information hitting stores around COVID-19.

They receive corporate policies, local government policies, signage requirements, etc. They’re expected to take action, all while keeping shelves stocked through unprecedented traffic, dealing with anxious customers, and keeping the store clean. It’s overwhelming, especially for a business that is open 24/7. It’s up to HQ to cut clutter and confusion for the stores and find ways to inspire employees to take action.

That begins with giving store teams the proper tools so they can effectively prioritize and plan. This can be as simple as targeting information by role or

location so employees don’t see information that doesn’t pertain to them. Other times, it’s about making information readily available so teams spend less time searching and reading, and more time getting stuff done.

Beyond that, it’s about giving teams the context to understand how to effectively prioritize their tasks. If you have 10 things on your to-do list, and only time to do nine of them, which one should you let slide? Without proper context, store teams will never know if their decisions support larger brand goals.

ARE YOU SAYING THAT THERE’S A CORRELATION BETWEEN ENGAGEMENT AND EXECUTION? Absolutely. In fact, we just completed a study with Coyle Hospitality that found a direct correlation between a retailer’s Glassdoor score and its sales execution.

That’s why it’s so important to connect what stores need to know with what stores need to do in a way that guides them and makes it clear what’s expected.

By doing this, store teams know how their work supports the larger picture and they have context to enable them to make better decisions in the moment.

(We’ve also found that this knowledge drives higher engagement—and engaged employees are more likely to stay with their employer, longer.)

HOW HAVE YOU SEEN BRANDS FLEX OPERATIONS MUSCLES DURING THE PANDEMIC? CONVENIENCE.ORG

Source: Retail Zipline and NAPCO Media (www.mytotalretail.com)

There are so many great examples of agility coming out of the pandemic.

When I worked for a retailer, it would take years to roll out big initiatives.

During the pandemic we saw brands introduce curbside pickup, BOPIS and delivery—seemingly overnight—and often with fewer resources and a totally remote HQ staff. And, oh yeah, they did this while implementing all-new health and safety policies that varied from store to store. The common thread for retailers that did this successfully was an emphasis on communication and empowering store teams.

SO, HOW CAN RETAILERS MANAGE THEIR INFORMATION AND EXECUTION OF IT MORE EFFECTIVELY? It comes down to having technology that is built with a real understanding of the challenges and inner workings of retail. Zipline, the product I developed after leaving my comms job, is an operations platform for brick-and-mortar retailers and the only solution on the market that combines store communications and task management to drive flawless store execution.

Zipline cuts clutter and confusion for the fleet, drives accountability and inspires employees to take action.

Oversight, audit and reporting tools allow DMs and HQ to keep tabs on store compliance and understand which stores are doing well and which ones might need additional support.

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Speedway, as an example, recently deployed Retail Zipline across approximately 3,500 stores to enhance the communication between Speedway’s support teams and their stores, providing frontline workers and leadership with the tools they need to deliver a safe and convenient fueling and shopping experience. In our joint press release, Tim Griffith, Speedway’s president, addressed why they chose Retail Zipline for their communications platform. He stated that Speedway “chose Retail Zipline because they are the clear leaders in this space, and they understand the challenges we face. The Retail Zipline platform enhances how we empower our store associates and our leadership with accurate, real-time information. This allows our store associates to keep their focus on delivering consistent, quality experiences to our millions of customers.”

This article is brought to you by Retail Zipline.

CAN THE PLATFORM ALSO BE USED TO SHARE MORE THAN DIRECTIVES AND INFORMATION? Yes! In fact, Hy-Vee accelerated its rollout of Retail Zipline for this reason. With grocery store associates on the frontline during the pandemic, Hy-Vee executives wanted to be able to reach each and every store employee, via weekly videos, to let them know they were appreciated and that the company stood behind them. I love that Zipline is able to play a role in helping retail workers feel good about the work they do.

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Plan ahead to stock seasonal confections for impulse buys and last-minute gifts.

BY PAT PAPE

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espite the past year of social-distanced gatherings and Zoom celebrations, consumers are still buying, gifting and eating seasonal candies. In fact, holidays are the ideal excuse to treat themselves with minimal guilt.

“Generally, seasonal permissibility is high, with 82% of Americans agreeing that it is OK to enjoy seasonal confectionery during holidays and special occasions,” said Carly Schildhaus, public affairs manager for the National Confectioners Association (NCA). “Plus, 84% of Americans believe seasonal candies are a fun part of special celebrations, and 78% say sharing and gifting seasonal confectionery is a great American tradition.”

The Big Four confectionery seasons are Valentine’s Day, Easter, Halloween and the winter holidays, which are celebrated by nine out of 10 consumers.

“Secondary seasons, such as Mother’s Day and Father’s Day, have lower but still substantial engagement, with 50% to 60% of Americans sharing and gifting confectionery,” Schildhaus said.

According to Statista, seasonal candy accounted for an average of $150 in monthly sales at U.S. convenience stores in 2019. The Easter Bunny gets most of the credit, since Easter generated the largest percent of candy sales of any holiday. For Easter 2019, U.S. consumers purchased about $1.6 billion in seasonal sweets, while Halloween candy generated only $749 million in sales in 2019. But last year, the sale of c-store Easter treats suffered during the COVID-19 lockdown.

NACS Research tracks seasonal candy sales along with novelties, usually packaged candy sold with a toy or other inedible item. In 2019, novelties/seasonal candy accounted for 1.4% of total candy sales, bringing in $1,026 average sales per store and $496 average gross profit per store.

“Overall, the [c-store] candy category followed a similar in-store pattern as many other categories during 2020,” said CONVENIENCE.ORG

Jayme Gough, research manager, NACS. “Initial lockdowns and store closures at the start of the pandemic threw a bit of a curveball at Easter sales in 2020. They also caused a dip in sales in the end of March/April, which rebounded over the summer, generating more sales than the previous year.”

CULTIVATING CANDY SALES At Rutter’s, the York, Pennsylvania-based chain with 78 locations, the focus is on Easter, Halloween and Christmas. “We typically stay away from Valentine’s Day as the window is a bit smaller,” said Joseph Bortner, manager of center store, Rutter’s.

“We haven’t seen the same results [with Valentine’s] as with other holidays.”

Even though specialty candy is an in-and-out item, Rutter’s begins planning for a holiday season 10 to 12 weeks in advance of the candy’s shipping date. This spring, early orders are important to keep in mind since Easter 2021 is April 4, a week earlier than in 2020. “We’ll review prior-year sales by store and formulate a plan of attack. We do a large assortment of standard, king-size and some novelty items, like one-pound bars,” Bortner said.

Preliminary 2020 U.S. convenience candy sales increased 1.6% over 2019, while units were down 5.8%.

Rutter’s stores merchandise holiday candies at the queue lines. “It’s a great location for the last-second impulse,” Bortner said. “And our customers know it’s the place to look for seasonal and new items.”

Nikki Loveless is candy category manager for RaceTrac, the Atlanta-based chain with 670 outlets. She believes that the earlier you get seasonal candy on the shelves, the better. “One-third of Easter seasonal purchases at RaceTrac are made

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CANDY SUBCATEGORY NOVELTIES/SEASONAL SALES PER STORE, PER MONTH $300

202

$250

2019

0

2017

$200

2018

$150

Novelties and seasonal candy typically follow the same sales cycle, spiking during the four holidays of Valentine’s Day, Easter, Halloween and Christmas. The pandemic in April threw a bit of a curveball at 2020 Easter sales.

$100 $50 $0

NielsenIQ preliminary data for 2020 total U.S. convenience candy sales indicate that total candy sales rose 1.6% over 2019, while units fell 5.8%. Preliminary 2020 data showed novelties/seasonal candy sales down 3% over last year and units down 9.6%.

JAN

FEB

MAR

APR

MAY

JUN

JUL

AUG

SEP

OCT

NOV

DEC

(Source: CSX LLC; csxllc.com)

in January,” she said. “Seasonal candy is essential to the overall strategy for confections at RaceTrac, so much so that we have dedicated space in the store to display seasonal offerings throughout the year.”

The most popular seasonal item for RaceTrac is the Reese’s Peanut Butter Egg, Pumpkin or Tree, depending on the season, according to Loveless. “This item accounts for about 60% of our total seasonal sales, with the majority of volume attributed to the king-size variety,” she said.

“Seasonal confectionery has an exceptional ability to drive incremental sales.”

Slovacek’s convenience store in West, Texas, sits just off a busy interstate between Dallas-Fort Worth and Austin. Because most customers are time-crunched travelers, Ray Raybroker, general manager, doesn’t order typical seasonal candies. “We can’t compete with a pharmacy, Family Dollar or Dollar General on a regular box of chocolates like Russell Stover. They can buy them by the pallet,” he said. “Instead, we put out expensive [boxed] candies for Valentine’s, Easter and Christmas. Those stores won’t have the higher dollar items.”

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Slovacek’s displays the candies in multiple locations throughout the store, including at the registers and on endcaps in busy areas. “We merchandise them as impulse and high-quality gifts for the wife or kids,” Raybroker said. “Customers are only buying one or two—not a whole bunch.”

The store begins merchandising seasonal candy about 10 days before the actual holiday. “We don’t try to get sales early,” he said. “We want the impulse buys.”

Proper merchandising is key to moving them out the door. According to research, feature and display support can help “generate an average increase in volume of near 300% for seasonal chocolate and near 200% for seasonal non-chocolate,” said Schildhaus. “Seasonal confectionery has an exceptional ability to drive incremental sales. But seasons have seen compression over time, with more of the total sales happening in the final two weeks before the holiday.”

Hershey reports chocolate sales jumped 4% in the fiscal third quarter as customers indulged in Halloween candy early. Kristen Riggs, chief growth officer, Hershey, said that as consumers spend more time at home, they are trying to create special occasions. “There’s just something so special about these seasonal traditions and occasions that kind of lift the spirits in the home,” she said.

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Hershey acknowledges new changes in consumer behavior amid the pandemic.

Because they want to get in and out of stores quickly, shoppers no longer browse the aisles, reducing their chances of discovering new products or seeing holiday merchandising displays.

Ferrero, the confectionery company that purchased many candy brands formerly owned by Nestlé USA, encourages retailers to create “in-store theater” to drive excitement around the seasons,” said David Brindise, category manager for convenience at Ferrero USA. “A seasonal showcase can be effective at attracting attention to the store’s offerings.”

He also advises having a few last-minute gift items on store shelves for Valentine’s Day and the winter holidays, which “can help capture that shopper who forgot to buy a gift and doesn’t want to show up empty handed.”

PANDEMIC SNACKING Since March 2020, overall U.S. candy sales have been on the rise. According to NCA, the stress and boredom of the pandemic sent consumers running to the candy aisle, boosting candy sales 4.3% between March 15 and September 6, 2020.

Chocolate sales were up 5.7% during the same period, compared to a 2% increase in non-chocolate candy sales. In addition, six in 10 consumers altered their candy purchasing habits during the pandemic, NCA reported. This includes buying different pack sizes (48%), different types (46%) and different brands (42%), changes that were attributed to people working from home, altering their routines, dealing with outof-stocks and seeking better values.

According to NielsenIQ preliminary data for 2020, total U.S. convenience candy sales increased 1.6% over 2019, while units were down 5.8%. Looking specifically at novelties/seasonal candy sales, preliminary data for 2020 indicate that sales fell 3% and units slid 9.6%, compared with 2019.

“NielsenIQ’s monthly 2020 total U.S. convenience industry data confirm what we see in CSX for the overall candy

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“ Stress and boredom have sent consumers running to the candy aisle, boosting candy sales 4.3% between March 15 and September 6, 2020.” category, which dipped in April of 2020 and slowly recovered going into the fall,” said Gough. (CSX is the engine behind category metrics and NACS State of the Industry data and provides current and customizable tools for financial and operational reporting and analysis in the convenience industry.)

The pandemic affected the performance of all spring and summer holidays, starting with Easter. “About two in 10 Americans who normally celebrate Easter, Mother’s Day, Father’s Day and the summer holidays with confectionery gifting did not do so this year due to COVID-19,” said Schildhaus.

THE PARTY’S OVER Christmas isn’t Christmas without peppermint candy canes. Halloween wouldn’t be the same without candy corn, and Easter is unimaginable without marshmallow chicks. But when the holiday ends, remove any remaining candy from store shelves and start planning for the next sales opportunity.

“I recommend discounting seasonal candy immediately after the holiday is over. The enthusiasm is gone by then, so clear it out to make room for the next exciting season,” said Loveless.

“We know what we’re going to order and when it’s going to arrive,” said Raybroker. “Then, we hope and pray it’s all gone on the day of the holiday.”

Pat Pape worked in the convenience store industry for more than 20 years before becoming a full-time writer. See more of her articles at patpape. wordpress.com.

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T

he modern vehicle isn’t defined by the horsepower or torque of its engine, or its towing capacity or the size of its cabin. Rather, what makes it so powerful are the hundreds of millions of lines of code and computing hardware that connect drivers to their surroundings—and their surroundings to them.

“The vehicle as we know it is driven more on silicon and software—now more so than ever— than it is on oil and steel and rubber,” said Mark Boyadjis, global technology lead of the automotive advisory team for IHS Markit, London.

IHS Markit defines connected-car technology as the ability to provide online or telecommunicationbased services in a vehicle, and to extract data and create knowledge from the vehicle, by leveraging a two-way, wireless mobile connection. That data link can be part of the vehicle’s dedicated communication module, or brought in via the driver’s smartphone.

An estimated 46% of new cars sold in the United States in 2020 will be connected; by 2025, this share will rise to two-thirds of new vehicles, according to IHS Markit. The growth in connected cars is happening in tandem with other tech developments set to transform the automotive fleet over the coming decades: • Connectivity is helping improve electrified transport and setting the stage for fully automated vehicles.

• The rollout of fifth-generation (5G) cellular networks across the United States promises to offer faster data transfer speeds for connected devices.

253,000 11,800,000 Self-driving cars are projected to rise from 253,000 units sold worldwide in 2025, to nearly 11.8 million in 2035.

As of 2020, there was a projected market of approximately

$14.5 billion in revenue from the data assets alone in automotive data throughout the value chain.

Source: IHS Markit

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• Consumers’ increased adoption of mobile ordering and payment during the COVID-19 pandemic has primed them for connected commerce.

“What we really have here is a confluence of multiple technologies that are coming together at the same time that are causing a disruption in mobility and in the way a customer shops and searches for products and services,” said Karl Doenges, EV infrastructure liaison and mobility technology consultant, NACS. And for convenience stores, the implications are huge.

“We are an industry that is built around the vehicle, and the driver and the passenger,” said Doenges. “When the vehicle and the way the driver fuels that vehicle changes, it obviously has an impact on the convenience retailer.”

A DIGITAL FOOTPRINT Fuel has provided that first and immediate entry for convenience retailers into the realm of connected cars. In 2017, General Motors (GM) launched its in-vehicle connected commerce platform GM Marketplace, which allows consumers to find gas at Shell or ExxonMobil sites, order food from Starbucks and Dunkin’, or make dinner reservations from their vehicle’s dashboard. GM next partnered with Shell and P97, a mobile payments provider, to develop an in-dash fuel payment feature in GM Marketplace. Other automakers such as Hyundai and Fiat Chrysler have also played in the space.

“We’re just starting to scratch the service, particularly in the fuels industry, with connected cars and how they’re going to impact retailers,” said Brian Norris, executive director, retail data and product management for Oil Price Information Service (OPIS), Rockville, Maryland. OPIS’ real-time fuel pricing and station information data are available in the navigation systems of more than 30 million vehicles, as well as Google Maps, Google’s Waze GPS navigation software app and Apple Maps.

In September, OPIS debuted Fuelstradamus, which leverages machine learning and a data science algorithm to predict the direction of fuel prices over the next day or two. It is available to automakers as an application programming interface (API) for connected car platforms, as well as fleets and travel sites.

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“If we expect fuel prices to go up, the car will see there’s a prediction that prices will go up and prompt the consumer to fill up now rather than wait until tomorrow,” Norris said. Users can reportedly save two to five cents per gallon with every fill-up.

While price will continue to have a powerful hold on fuel purchasing decisions, OPIS expects consumers to plan their fuel purchases more often thanks to the greater wealth of data now available to them in their vehicle. Here, being the part of a route to a final destination is key. To even be considered as an option in this scenario, retailers need to make sure their locations are included in navigation systems and applications such as Fuelstradamus.

“If OPIS doesn’t get data for their station, and we’re the supplier of data to these car companies, their store may not show up as an option for consumers,” Norris said. Retailers can participate for free by supplying OPIS with their daily location pricing.

Indeed, establishing a digital footprint is table stakes for convenience retailers in the connected car transition. “The more immediate need for the industry is to make sure that they’re fully integrated in modern communication systems, that their loyalty program has a presence on the internet, that their customers are familiar with that,” said John Eichberger, executive director of the Fuels Institute. “You’re going to have the opportunity to push offers, push rewards through the car platform. But you need to have the capability to do that. So the importance of digital marketing, digital relationships with your customers is going to take on a whole new level.”

SPEAK UP This digital footprint becomes even more critical as consumers’ main communication interface to their vehicle increasingly becomes their voice.

A recent application is Amazon’s collaboration with ExxonMobil. Drivers can use Amazon’s Alexa voice assistant from their vehicle’s navigation system or the Alexa app to pay for fuel from inside the car.

How it works: The customer pulls up to an Exxon or Mobil-branded site and asks Alexa to pay for gas.

After providing Alexa with the location and pump number, the user gives Alexa permission to turn on the pump. From here, the consumer gets out of the car, picks the fuel grade and begins fueling. The real advantage to this approach is it works with both built-in and brought-in connected car technology.

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CONNECTED VEHICLE SALES By 2025, two-thirds of new vehicles sold will feature technology that enables two-way data sharing.

2015 2020 2025 Year

0.0%

25.4%

46.1%

73%

66.5%

Share of Sales

65% intenders

of new car

would prefer a radio or infotainment system that was designed by Apple or Google.

of passenger vehicles sold will be connected by 2022.

Source: IHS Markit

“The convenience and the payment security are the end-customer value, and the better access to customers is the value for Exxon,” Boyadjis with IHS Markit said. “Amazon also gets a dime in these transactions.” The analyst sees voice-assisted interactions as the path forward for connected cars.

According to a 2019 survey by Microsoft, 72% of consumers have conducted a voice search with a personal digital assistant such as Alexa, Siri or Google Assistant. More than three in 10 had made voice commands to a vehicle. And more than half expected their digital assistants to help make retail purchases within the next five years.

“Because speech recognition is a software technology, we’ve seen that move way, way faster forward than you would have anticipated,” Boyadjis said. “Now you have artificial intelligence, cloudbased voice systems being presented to users in cars, and the improvement on satisfaction and capabilities have come with it.”

However, this shift toward voice search introduces new complications for convenience retailers who want to be visible to connected car drivers.

“If someone searches with voice, they get much more specific,” said Doenges. For example, instead of asking their vehicle or smartphone’s voice assistant for the closest c-store, consumers would be more likely to ask for premium grade gasoline, EV charging or a breakfast taco near them, right now.

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OEMs’ navigation systems do not always categorize convenience stores in a way that reflects the breadth of their offer.

“Right now they’re not designed around businesses that have a carwash, a QSR, convenience items, have fuel—that’s really four to five businesses in one location,” Doenges said. “And if you go into any search engine and say, ‘Where’s the closest carwash?’, you’re going to get a full-blown carwash. You’re not going to get a c-store with a carwash—because it’s listed as a c-store, not a c-store and carwash.”

Finally, whom a driver asks for help will determine which options are offered, Doenges said. So if iPhone users ask Siri for the nearest place to buy a breakfast taco, the voice assistant will search Apple’s Map ecosystem. If they ask Google Assistant, they will get options in the Google ecosystem. Retailers will want to be present in all of these information ecosystems or risk losing out on business.

“The car will cater to that driver’s preference,” said Eichberger. “The convenience retailer has to be flexible and willing to make accommodations for individual preferences because customized service will be much more important.”

PIVOT YOUR MODEL Establishing this smart digital footprint will be even more critical as the electrification of the

GLOBAL CONNECTED CAR SALES FORECAST

Millions of Units

80.0 70.0 60.0 50.0 40.0 30.0 20.0 10.0 0.0

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

Total over-the-air (OTA)-update-enabled vehicle sales per year were projected to rise to 26.7 million in 2020, up from 2.6 million in 2014.

vehicle fleet continues and public EV charging becomes an increasingly popular service. “EV charging sites don’t have signs; they are not on intersections. Algorithms, artificial intelligence that predict when you need to charge, options where to go—they are all tied into navigation,” said Doenges. “If you’re not in that navigation system, it’s really, really difficult.”

Flash forward a few decades to fully autonomous vehicles, which can only operate with a navigation system. This takes the importance of inclusion one step further.

For the short and medium term, convenience retailers should leverage learnings from connected car technology to become more relevant and better serve their customers. Here, IHS Markit is conducting research into c-store customers’ driving and parking behavior, and what they are doing at their destinations. It hopes these findings can support the convenience industry as it adapts to a changing, connected vehicle fleet.

“Individual fuel retailers and oil companies, how they transition their business model is very important depending on what type of customers are showing up and how those customers are spending time at the store,” said Boyadjis. “Are they coming in and plugging in to chargers? If so, you need to think about that c-store. Would it be the kind of store people would want to be in for more than five minutes?

“As the c-store model continues to evolve, it will be important for these operators to understand how they can leverage connected vehicle data and how they can leverage the knowledge of what drivers are doing at their stores to pivot their business models,” Boyadjis continued. “I’m not going to sound the alarms and say this is happening in 2021. It’s starting to, but it is something that transitions over the course of time. Even if we are still talking about [internal combustion engine] vehicles, they’re so connected that you can begin to pivot your model even before we talk about the future of electrification.”

Samantha Oller is a Chicagobased journalist with 17 years of experience covering retail and fuels. Follow her on LinkedIn or Twitter at @OllerWriter.

Source: IHS Markit

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CONVENIENCE.ORG

the retention invention

High employee turnover rates diminish the shopper experience, but a focus on the employee experience during recruiting, hiring and onboarding builds a culture that serves customers better.

BY JERRY SOVERINSKY

a

t a time when convenience stores face pressures from multiple channels, with diminishing margins that place an increasing emphasis on operational efficiencies and customer loyalties, a nagging, internal challenge persists: employee retention.

It’s not enough that salaries, hourly wages and benefits continue to erode the operator’s bottom line. But with competitors offering incremental wage bumps that lure would-be as well as current employees, employee retention has become problematic, to say the least, with these four statistics underscoring the sobering state of affairs, according to NACS State of the Industry data: 8 1.3%: The average annual turnover of full-time associates.

2 7.6%: The average turnover percentage of full-time store associates within 30 days of their hiring.

3 6.3%: The average turnover percentage of full-time store associates within 90 days of their hiring. $ 1,716: The average onboarding cost for a full-time store associate.

You do the math.

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If you’re the typical convenience store, four out every five of your full-time employees (81.3%) will leave your company in the next year, with more than one in four not making it past their one-month hiring anniversary. And with the cost to hire a full-time employee averaging more than $1,700, well, the situation is dire. For an industry dependent on frontline workers to serve as brand ambassadors, a high employee turnover rate threatens to diminish the shopper’s experience, not to mention one’s shrinking profits.

It’s a dynamic that prompted an industry supplier and a major tech company—Cravety and Auth0—to build a better human resources solution for retailers, helping them attract, onboard and serve their employees, with an overarching goal of reducing attrition and turnover.

“Many workers [at convenience stores] are at the lower end of the pay range, with many jobs at the entry level,” said Rick Fasino, senior account executive at Auth0, a company that leverages innovative technology solutions to build employee culture and transform spaces. “The objective for them is finding the right people before they go through the costly process of onboarding, building a culture that helps serve their customers better …

Because the best way to serve customers is to have CONVENIENCE.ORG

good employees, and the best way to find and keep good employees is to treat them like customers.”

The solution, Fasino said, is a sustained focus on the employee experience at every phase of the recruiting, hiring and onboarding process, building a strong relationship that breeds brand loyalty and productivity. And it’s these elements that Auth0 and Cravety incorporated into their HR product. “We wanted to leverage the insights and technology that these stores use to serve their customers and orient it throughout the employee journey,” he said.

A MORE AUTOMATED CANDIDATE EXPERIENCE Enter Cravety Pathways EX (Pathways), an artificial intelligence-driven solution that integrates every phase of the recruitment and hiring process into a powerful digital experience, creating a more durable foundation for employer-employee relationships. Delivering seamless compatibility with major recruiting platforms and communications systems (Jibe, ICIMS, Workday, Kronos and other HRIS and ATS platforms, etc.), Cravety Pathways EX increases candidate engagement and delivers a more rewarding recruitment and hiring experience. “Visually, it’s a very pleasing experience for the candidate. But behind the scenes, it automates things that typically require manual (and resource-intensive) responses,” Fasino said. “It can also enhance virtual hiring, where every advantage and visceral connection to the employer brand counts.”

“This is about improving the candidate experience through better communication,” said Ed Bodensiek, chief executive officer at Cravety, which helps companies improve employee retention and productivity with its SaaS-based offerings. “Companies are struggling to hire and retain employees … a lack of communication and transparency results in a bad experience for both candidates and employees.”

Additionally, with large retailers interviewing and hiring tens of thousands of candidates each year at significant cost, the ability to automate the process is essential for finding meaningful and productive efficiencies.

CONVENIENCE.ORG

This article was brought to you by Cravety.

Machine learning distributes “next best action” communications in Pathways EX, meeting the candidate wherever they are in the hiring process while prompting them for inputs that move them to successive steps. “A large company might lose half of its candidates who don’t even complete the application,” Bodensiek said. “We build an identity with the candidate’s phone number and send them a text if they don’t fill out their form. Or maybe a video of someone working the same position that they’re considering. Candidates can self-select out if they don’t like what they see, saving everyone time and potential disappointment later.”

Even after a candidate is hired, Pathways EX continues to engage with the new employee, walking them through a uniform ordering process, for instance, or finalizing a background check.

Collectively, these ongoing touchpoints create a solid foundation for the employer-employee relationship, which continues to strengthen once the hire begins work at the company.

TREATING EMPLOYEES LIKE CUSTOMERS “Many companies confuse the employee experience with just adding a foosball table in the break room, or offering free doughnuts on Fridays,” Bodensiek said. “But what employees really want is control over their lives. And we’re delivering a digital experience that allows them to connect with the brand, feel respected, find transparency in the overall hiring process and find that greater sense of control.”

“That’s our operating premise,” Fasino said.

“Treating employees like customers. And in doing so, we’re solving for retention and even candidate ghosting.”

It’s not a one-and-done proposition, but an endto-end experience that carries over through the

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PARTNERING FOR SUCCESS

Pathways EX is the result of a close partnership of two companies: Auth0: Provides the authentication layer as the primary identity provider.

Cravety: Delivers the behavioral backend, personalizing the candidate’s journey and content. The solution works as an intelligent overlay to your existing HRIS and ATS platforms and can be deployed in as little as three months.

duration of an employee’s relationship with the employer. Communication layers are incorporated into each stage of the employee journey—candidacy, onboarding, engagement/productivity, transformation and transition—an effort to maximize productivity and retention. And using next best action prompts, the candidate remains tethered to a chronological process, gaining complete insight into required actions. “The next best action accelerator is an overlay, it works with your existing HR system,” Bodensiek said. For example, “If somebody in Workday changes a candidate status to ‘request interview,’ our system triggers the notification, and it requests an action,” like scheduling the interview.

SAMPLE EMPLOYEE EXPERIENCE The process begins soon after the candidate downloads the Pathways EX App that serves as its Personalized Experience Portal. The app includes a company’s unique branding, which carries through every communication. Once open, the candidate can search for and apply for jobs with just a click, as the app autofills the candidate’s contact details.

Immediately after candidates submit an application, they receive a text message—again personalized to the candidate—thanking them for their application while sending them a link where they can track the status of their application. (Candidates can opt out of these notifications whenever desired.)

Next, a text message provides links to videos from current employees who work at the same position, providing insights into expectations and corporate culture.

If candidates make it to the interview phase, they receive a congratulatory text that explains the interview process and scheduling requirements— all accomplished within the Hub app. The app provides links that address articles about the

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interview process, interview tips from people who were hired by the company and pay information.

And once the candidates schedule the interview, they receive a personalized text that confirms the interview details. The candidates can review bios of the company representatives who will take part in their interviews, too.

If an offer is extended, candidates are notified via text, with the app including a copy of an offer letter. The app includes a neat, chronological timeline of their process to-date, along with upcoming tasks to complete (should candidates accept the offer). That could include ordering a uniform (prompting the employee-to-be with sizing information), completing a background check, and managing expectations for the first day of work.

Pathways EX continues to engage employees throughout the first year, too, helping to ensure improved, voluntary retention.

The entire process is automated, a huge lift for human resources, while the candidate/employee gains transparency to a sometimes complex and lengthy hiring process, along with much deeper engagement with the company.

BOTTOM-LINE SUCCESS Of course, the bottom line on implementing any technology is measuring one’s true bottom line, and in the case of Pathways EX, it is verified with tangible employee-related metrics assessing change in: Completed applications Productivity Turnover rate Employee satisfaction Hiring costs “With the solution, we can see turnover rates trimmed by up to 20%,” Bodensiek said.

But early feedback from both convenience stores and their employees expresses deeper engagement and a focus on culture to better able to serve a store’s customers. With the economy undergoing wild volatility and retailing in general evolving quickly, the timing of a significantly improved employee experience couldn’t be better.

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

CONVENIENCE.ORG

Treat employees and candidates like customers, and you will be.

Pathways EX, powered by Auth0, gives your hard-fought recruits and new employees an on-brand, customer-like experience. Best of all, there’s no need for a new system. By integrating with your existing ATS and HRIS platforms, the solution lets you keep people informed and engaged so they keep you.

• Stop candidate ghosting • Identify and keep your best candidates engaged and moving forward • Transform your onboarding experience • Reduce costly turnover among new employees by 15-25% for significant savings • Use AI, Machine Learning and behavioral science to deliver a personalized employee experience before day one, then through the employee lifecycle

Learn how to become a keeper at www.cravety.com/cravety-pathways

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CONVENIENCE.ORG

CHEERS TO

E-commerce of adult beverages lifts sales, attracts new customers.

BY TERRI ALLAN

F

ive years from now, as much as one-quarter of all retail alcoholic beverage sales could be taking place online, according to one e-commerce expert. That compares with less than 2% prior to the start of the pandemic last year.

For progressive convenience-store operators interested in capitalizing on the shift, it may be time to consider the opportunities—along with the challenges—of online beverage alcohol sales.

In fact, e-commerce platforms, third-party delivery services and retailers’ own delivery programs are already well under way, closing in on that “last mile” and bringing adult beverages direct to consumers’ homes.

“As retailers, we’re always striving to find new profit centers for our stores,” said Troy Little, president of Quik Mart, the chain of Tucson, Arizona-based c-stores. The company’s decision to partner with Minibar Delivery, a platform for on-demand delivery of wine, beer, liquor, mixers and more, in 2019, “has been a surprisingly nice addition,” Little noted, providing high rings and repeat business.

CONVENIENCE.ORG

Indeed, a range of applications is now available that allow consumers to purchase alcoholic beverages from their mobile devices—where legal—with last-mile delivery provided directly from a partner retailer or a third party. Increasingly, these platforms are partnering with c-stores, and in light of the heightened demand the COVID-19 pandemic has placed on e-commerce, the apps provide c-stores the opportunity to better compete in online alcoholic beverage sales, allowing for higher basket rings and attracting new customers.

“Our c-store partners have seen strong growth in their online business through their partnership with Drizly,” said Liz Paquette, head of consumer insights at the online alcohol marketplace that operates in 32 states and counts Louisiana’s Tobacco Plus and Nebraska’s Mega Saver among its partners. With the app, orders are channeled to local participating retailers, which fulfill and deliver the products. (In some states, retailers use third-party delivery services to complete the last mile.) Consumers are generally charged a $5 service fee from the retailer, while Drizly collects a percentage of the sale, or a flat or tiered fee,

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“ We’ve seen a higher percentage of orders containing alcohol through Instacart than on other platforms.”

depending on state regulations. “We’re looking forward to helping even more c-stores bring their shelves online to reach more consumers in 2021 and beyond,” remarked Paquette, who predicted that by 2025, between 18-25% of all off-premise alcohol purchases will be transacted online. In February, Uber Technologies announced a $1.1 billion deal to acquire Drizly and integrate its alcohol marketplace within the Uber Eats app.

Minibar, meanwhile, serves more than 200 markets across the U.S. Like Drizly, retailer partners can choose to utilize their own staff for delivery or work through outside providers like DoorDash and Postmates. According to Lindsey Andrews, CEO and co-founder, retailers incur a marketing fee for displaying their products on the Minibar platform and are responsible for credit card processing fees and delivery costs.

HIGH ADOPTION RATES The opportunity for enhanced e-commerce sales of alcoholic beverages hasn’t been lost on online convenience retailer goPuff, as the company announced late last year that it was acquiring BevMo!, a brick-and-mortar liquor store chain with more than 160 locations in Arizona, California and Washington. The deal, which closed in December 2020, provides goPuff with a seamless West Coast infrastructure and BevMo! customers with access to instant delivery of alcoholic beverages, along with goPuff’s inventory of everyday items.

7-Eleven’s increased emphasis on on-demand delivery, meanwhile, includes adult beverages, where legal. According to Raghu Mahadevan, vice president of digital and head of delivery, “We have

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a very high adoption rate of customers purchasing alcoholic beverages through the 7Now app, and we’re also seeing high repeat purchases for age-restricted products among customers. Our wide selection of beer and seltzers performs really well since we deliver in an average of 30 minutes or less.” The c-store chain partners with couriers like Postmates and DoorDash on 7Now orders.

Independent operators are also delving into adult beverage delivery. Cone & Steiner, with two convenience stores in Seattle, has been delivering beer and wine as part of its online platform for the past two years. Under the program, which carries a flat $5 delivery fee, Cone & Steiner staff typically deliver the products. In recent months, the stores have started to partner with DoorDash as well.

A typical order containing alcoholic beverages is for “a couple bottles of wine,” owner Dani Cone explained, with average wine prices between $12 and $15 a bottle. Seeing opportunity as consumers hunkered down at home during the pandemic, Cone & Steiner has marketed specially themed packages containing alcoholic beverages on its website, such as “Happy Hour,” “Netflix & Chill” and “Wine & Cheese Party.”

According to Quik Mart’s Little, Minibar approached the chain about becoming a retail partner. “We liked the concept and felt like the program was a good way for us to dip our toe into the direct delivery business,” he said. “After a slow start and ironing out a few wrinkles in the beginning, our Minibar Delivery sales started to grow and now have become a nice, consistent addition to our overall business.”

Beyond 7Now, 7-Eleven’s recently announced partnership with Instacart, includes the ability of its drivers to drop off alcoholic beverages with users, where legal. With the initial launch this past fall in markets including Baltimore, Dallas, Miami and Washington, D.C., Mahadevan said, “Generally, Instacart encourages customers to add more items, and we’ve seen a higher percentage of orders containing alcohol through Instacart than on other platforms.” Looking ahead, he added, “Partnerships like Instacart will continue to lift alcohol sales.”

BENEFITS AND CHALLENGES Among the benefits of retailers partnering with the online platforms, according to Paquette and CONVENIENCE.ORG

Andrews, are wider consumer audiences, cost and time savings, and access to proprietary data.

“Drizly has millions of consumers visiting our platform already,” explained Paquette. “We allow c-stores to grow the business they are already building online by allowing them to tap into that existing audience and bring incremental customers to their store.”

Drizly also provides retailers with data and insights on top-selling items in their markets that can help inform operators of potential items to add to their inventory, she said. Andrews remarked that the creation of websites and apps can be costly and time-consuming for retailers, “whereas with Minibar Delivery, the store can usually be up and running within a month. The business we forward to retailers almost always serves as a source of revenue that the store wouldn’t have received.” Quik Mart’s Little confirmed, “The orders are typically larger than our in-store transactions, as it seems there’s more pantry load through Minibar Delivery, and our repeat business has been terrific.”

As with any licensed product, e-sales and delivery of alcoholic beverages can present challenges for retailers. State and local regulations can restrict the practice, and steps must be taken to ensure that the products are delivered only to consumers age 21 years and over. “Within the 7Now app, customers must verify their age prior to purchase and at the time of product drop-off for any age-restricted items,” Mahadevan remarked, while delivery drivers also verify that customers are of legal age.

Similarly, Cone & Steiner’s site requires that those purchasing alcoholic beverages are at least 21. At delivery, driver’s license information is recorded, and a signature is required, Cone said.

There’s no question the pandemic has helped to expand e-sales of alcoholic beverages. “Since the onset of the pandemic, demand for beverage alcohol delivery significantly increased as consumers turned to delivery services as a safer alternative,” said Paquette. Indeed, she reported that at times during last March and April, Drizly sales grew at rates of 700-800%. Quik Mart also saw a gain.

“During the pandemic and the stay-at-home orders, our Minibar Delivery business started to take off, and we were really able to grow our customer base as more and more people tried the service,” Little noted.

CONVENIENCE.ORG

Will It Last?

Until 2020, alcohol delivery lagged behind grocery delivery, and there is expectation that habits ingrained during the pandemic will become permanent once the outbreak has abated.

In April 2020, IBISWorld estimated that revenue for the online beer, wine and liquor sales industry would increase 11.2% in 2020.

Data insights firm Kantar estimated that 30% of new customers who try buying booze through e-commerce for the first time during the pandemic will remain long-term users.

U.S. consumers are willing to treat themselves with alcohol during shelter-in-place, according to NielsenIQ. Nearly 75% expect to pay more for a delivered spirit than in a retail store.

Instacart, the grocery delivery company, said the number of orders containing alcohol grew more than 75% during March 2020.

At Minibar Delivery, the on-demand liquor service said since March 11, 2020, overall sales shot up 160%, with a 22% increase in average order size.

Paquette believes that alcohol e-commerce is here to stay. She pointed to a recent survey that found that 71% of current Drizly users and 50% of non-Drizly users anticipate that at least half of their alcoholic beverage shopping will take place online in the next year. That doesn’t surprise the likes of Dani Cone. “I see a significant amount of opportunity for the delivery of beer and wine,” the Seattle retailer said. “I don’t believe we’ve even come close to optimizing the opportunity.”

Terri Allan is a New Jerseybased freelance writer, specializing in the beverage industry. She can be reached at terri4beer@aol.com and on Twitter at @terriallan.

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COOL NEW PRODUCTS 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 last year’s NACS Show (after October 4).

The products featured here also can be seen at www.convenience.org/coolnewproducts.

COMPANY

Monster Energy Company PRODUCT

12oz. MONSTER ENERGY and MONSTER ULTRA

Monster Energy - Now Available in 12oz. Cans

Introducing the new MONSTER ENERGY and MONSTER ULTRA 12oz. cans. The same flavors you crave, now in a smaller size. This new can size will recruit new shoppers into the energy category and appeal to a broader consumer base. Our best-selling core flavors packaged in a 12oz. can will drive incremental transactions, retain core customers & re-engage lapsed energy drinkers. Our best-selling zero sugar Ultra flavors will recruit younger, health-conscious consumers to the energy category who skew towards diet offerings. Available exclusively in Convenience and FSOP channels. For more information, call (800) 426-7367 and visit www.monsterenergy.com.

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CONVENIENCE.ORG

COMPANY

Vitamin Energy, LLC PRODUCT

VitaminEnergy®

Double Your Energy Shot Sales

Double your energy shot sales with the fast selling VitaminEnergy® brand. Providing consumers vitamins on-the-go while boosting energy for up to 7+ hours, VitaminEnergy® doubles energy shot sales for retailers. For more information, please call (800) 420-3106 and visit www.VitaminEnergy.com.

COMPANY

The SAM Machine Corp.

PRODUCT

The SAM Machine

The SAM Machine

Increase foot traffic, customer loyalty, and satisfaction. Cash ALL of your customers’ checks and encourage them to spend additional money in-store. The SAM Machine has over 80,000 happy users across 32 states! As you know, check-cashing is the best loyalty program there is. Why not start your customers week, in your store, with the chance to sell them additional products? Give your customers a reason to return each week and improve your bottom line. The SAM Machine allows you to better serve your patrons in these difficult times. Over 71 million dollars have been cashed through SAM Machines since 2019 - get yours up and running in weeks! CALL TODAY, 440-252-5019, and visit www.samcodirect.com CONVENIENCE.ORG

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COMPANY

Spectrum Industrial Products PRODUCT

Mopit 5

Transform Your Floorcare

Did you know the mop was invented in the 1400’s? If you’re still mopping it’s time to bring your floor care into the 21st century. The Mopit 5 floor scrubber makes cleaning your floor simple and easy by laying down clean soapy water, scrubbing the floor, then vacuuming up the dirty water into a separate tank. The Mopit reduces slip and fall accidents by leaving the floor dry. Got people tracking all sorts of stuff into your store? Pick it up in seconds with the Mopit. The Mopit is small and maneuverable making it easy to store. Our month-to-month lease is the least expensive in the industry. For more information, please visit www.mopit.com or call us at 1-800-290-2833.

COMPANY

Franke Coffee Systems PRODUCT

Cashless Payment Systems (CPS)

Enhance Self-Service With Contactless Payment

With the growing demand for contactless payment, the Franke Cashless Payment System (CPS) will enhance self-service capabilities. The CPS allows seamless, turnkey credit card payments, making it easier for customers to purchase beverages using their preferred payment method right at the machine. Franke’s bean-to-cup and espresso-based fully automated coffee equipment, with the added capability of a CPS, is the perfect solution for c-store operators and customers who prefer the convenience of contactless payment.

For more information, call (800) 310-5710, and visit coffee.franke.com.

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COMPANY

MeatCrafters Inc. PRODUCT

Skinny Salamis™

Real Salami Snacks: Grab, Go, Eat, Repeat

The new Skinny Salamis™ meet the accelerated demand for healthy, all natural grab-and-go snacks. These are real salamis snacks packed with protein and great taste with no sugars, no carbs, flavors or preservatives added. Just meat and spices made the old-world way, with new world tastes. Five flavors, All American Beef, Chorizo, Mediterranean, Truffle and Italian Style are available in a 1 oz, two stick pack. Contact (833) 625-4657, or visit www.meatcrafters.com for more information.

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COMPANY

NACS

PRODUCT

NACS Professional Learning Series

Trusted Training When You Need It—Now

The year continues to bring unique challenges and to help you, we’ve curated our best education sessions to address your immediate needs and solve your urgent issues. Our most popular and influential sessions are bundled into four packages to provide precision-targeted learning for you and your teams. Watch and absorb the tips, best practices and data from retail leaders. Tackle the learning on your time and at your pace (you can pause and come back to content later). Bundles: Lessons in Leadership - 6 sessions (3.5 hours of content); COVID Survival Pack - 7 sessions (4 hours); Category Management & Marketing Round-Up - 8 sessions (5 hours); and Put Your People First - 10 sessions (6 hours). Explore bundles and find your inspiration now at www.convenience.org/series

INDEX NEW DESIGN

Monster Beverage Company................................................. 66 NEW FLAVORS

Vitamin Energy, LLC................................................................ 67 NEW TECHNOLOGY COMPANY

NACS

PRODUCT

Whitepaper: Last Mile Fulfillment in Convenience Retail

Accelerate Your Growth in a Disrupted Landscape

Franke Coffee Systems........................................................... 68 Mopit............................................................................................. 68 SAM Machine.............................................................................. 67 NEW TO THE INDUSTRY

Meat Crafters Inc....................................................................... 68 NACS............................................................................................. 69

The retail landscape is being increasingly disrupted by last mile fulfillment, and convenience retail is no exception. Get insights on the ways you can win trips and grow basket size through last mile fulfillment solutions. This new landmark research study

by NACS Research explores: How readily c-store retailers are adopting last mile fulfillment; current and anticipated use of delivery services; retailer options for accepting orders; and difficulties retailers face with adopting last mile services.

Download your free, digital copy: www.convenience.org/LastMile CONVENIENCE.ORG

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GAS STATION GOURMET

Bank on It

Handy Stop Market & Cafe stocks healthy and local fare.

BY AL HEBERT

I

ntrepid entrepreneurs have a passion that moves them forward in spite of less than favorable circumstances. Bradley Cruice, owner of Handy Stop Market & Cafe in Lafayette, Louisiana, is one of those people. He opened his store at the corner of Jefferson and East Congress on May 29, 2020, at the height of the first wave of the COVID-19 pandemic, the most active hurricane season in recorded history and social unrest around the nation.

Previously, Cruice’s family owned a grocery store in New Orleans, and his father opened the first Handy Stop in 1967. “My earliest memory is standing on milk crates bagging groceries. We all grew up working in the store, from sweeping floors to eventually helping manage them.” And Cruice is continuing that tradition as his daughter, Abigail, works with him.

When he first made a decision to open a store, downtown Lafayette seemed like the perfect location. Filled with interesting shops and eateries, it was also a food desert without access to fresh produce or healthy options for at least one square mile.

HOUSE ACCOUNTS Before the widespread use of credit cards, many small businesses allowed customers to charge purchases on house accounts. Owner Bradley Cruice brought back this almost-forgotten way of doing business for the convenience of his customers at Handy Stop Market & Cafe.

“I have a lot of attorneys and small business owners who don’t want to be away from their businesses too long. So I have house accounts. They order, I put it on the account and invoice them at the end of the month,” he explained, adding, “Sometimes I’ll deliver it to them to help out. It’s how small business owners help each other.”

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Handy Stop Market & Cafe owner Bradley Cruice worked in his family’s grocery store in New Orleans during his childhood, and Cruice is continuing that tradition as his daughter, Abigail, works with him at Handy Stop.

An old bank building on a corner was ideal. “The building had a drive-thru, so that was an advantage over other stores in the area. That’s the reason I chose this location, not realizing that we’d have a pandemic,” he said. The drive-thru turned out to be an asset as dining areas around the state closed.

LISTENING TO THE COMMUNITY Food is king in Louisiana, and people like it rich, spicy and often deep fried. Would a store focused on healthy fare attract customers?

“I can have the idea of healthy and locally sourced goods, but if the community doesn’t want it, it does no good,” Cruice admitted. “So in 2019 I announced the opening and surveyed the community. The top things they wanted were fresh fruit, fresh vegetables, healthy lunch options and locally sourced goods, as well as beer, wine and alcohol.”

The pandemic spurred interest in better-for-you eating. “That played well into the business model,” he said. “We were poised from the beginning to meet the needs of customers. We partnered with Waitr, and that helped us meet those needs.”

CONVENIENCE.ORG

Whether it’s a pandemic or hurricane or beef shortage, you know the farmer, you know the producer. It brings a different level of trust to the supply chain.

Cruice opened Handy Stop during the height of the pandemic in May 2020, but the store’s drive-thru and locally sourced goods were advantages when indoor dining closed in Louisiana and national supply chains were interrupted.

Cruice found his model of locally sourced goods was an advantage. “Early on, the national supply chain was interrupted. Even getting equipment from large distributors was hard. I could get supplies from local vendors, and we’d have grass-fed beef here the next day. We had local produce and even locally grown flowers,” he said.

The store remained stocked. Said Cruice: “Whether it’s a pandemic or hurricane or beef shortage, you know the farmer, you know the producer. It brings a different level of trust to the supply chain.”

HEALTHY FOODSERVICE As a registered nurse, Cruice is committed to keeping things healthy. “What can we as a business do to provide customers with healthy options? There’s enough businesses doing plate lunches. Our biggest sellers are the grab and go. Our wraps are made with wheat or spinach tortillas. Turkey and pepper jack is our most popular wrap.”

He offers a healthy spin on Cajun favorites like red beans and rice. “We throw in a few secret ingredients. It’s served with brown rice. [Customers] know it can taste good and be healthy,” said Cruice.

It’s the turkey burger—“The Gobbler”— that has people talking. “We didn’t want a typical burger. What we learned is people were looking for simple, easy, healthy options. We experimented with secret ingredients and I started baking it, so now, it’s even healthier.”

CONVENIENCE.ORG

SPIRITS IN THE VAULT The c-store’s walk-in cooler is the former bank vault, retrofitted as a beer cave. Handy Stop Market & Cafe offers wine under $20 and more than 20 varieties of local beers. “We have national brands, but we have more local brews.

I’m selling cases and cases of local brews,” he said.

Ensuring that customers get not just what they want but in the quantities they need is one way he differentiates.

“Someone was looking for an IPA, and I got him a case of it. Now he orders a case a week. You can’t walk into a big box and do that.”

The c-store stocks two Louisiana rums, and some customers enjoy the fine wine and spirits with cigars also purchased at the store. Cruice partnered with a local coffee roaster to create a signature roast called Pour Mon Père, French for “for my father,” as an homage to his father’s passion for coffee.

With 2020 in the rearview mirror, Cruice is looking forward to making a few changes, including adding more delivery options, launching a new website so customers can order for pickup or delivery and expanding the menu. “We are working with a local chef, and we will have several new menu options in 2021.

We’re still in the great unknown, but we will stay true to our mission of having healthy options and locally sourced goods,” he said.

Al Hebert is the Gas Station Gourmet and showcases America’s culinary treasure— gas station cuisine. He shares these stories and on occasion, a recipe or two at www.

GasStationGourmet.com. He is a NACS Magazine contributor, bringing foodservice ideas to readers.

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GLOBAL TRENDS

A Drive-Thru and Delivery Boost

Consumers increasingly order food from their cars as on-site dining and takeaway options remain limited.

BY FIONA BRIGGS

Drive-thru restaurants are a big part of Tim Horton’s expansion plans, with the chain planning to open a drive-thru restaurant in every major town and city throughout the U.K. by 2022.

D

eclines in food-to-go and foodservice as a result of the COVID-19 pandemic are forcing convenience and forecourt retailers to consider new business models to bring customers back into the store, and drive-thru and delivery are quickly emerging as the strongest contenders.

The IGD predicted the U.K. food-to-go market would decline 43% to £10.8 billion (US$14.8 billion) in 2020, a £8.1 billion decrease compared with 2019, and will continue to be impacted by COVID-19 during the next three years. In the medium to long term, IGD anticipates food-to-go specialists and coffee shops to be impacted most as they are typically located in city centers and transport hubs with footfall dependent on office workers, commuters and tourists.

Global Data agrees. Interviewed for Shop Talk LIVE, consulting director Mark Dempsey reported foodservice was in double-digit decline in every

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region and channel, including convenience and forecourt retail, during 2020. Further, its recent survey found one-third of global consumers expect to continue to work from home in the future, posing a further risk to footfall and car traffic. Those trends are encouraging retailers to think differently about their site configurations and store locations, with drive-thru and pickup-only c-stores enabling reduced interaction with staff and foodservice.

As the U.K. entered its third lockdown on January 6, 2021, McDonald’s set the tone with the announcement it was changing the way it operates: Its restaurants across the U.K. and Ireland would remain open for drive-thru and McDelivery, but dine in and walk-in takeaway would be temporarily closed “while we review and verify any additional enhanced safety measures for these services.”

Reporting the same week, the bakery chain Greggs forecast its first annual loss after a £300-million-plus sales slump due to the CONVENIENCE.ORG

NACS GLOBAL CALENDAR JUNE 1-3, 2021

NACS Convenience Summit Europe www.convenience.org/cse

AUGUST 16-20, 2021 NACS Convenience Summit Asia www.convenience.org/asia

OCTOBER 5-8, 2021 pandemic and indicated that it did not expect to return to profit until 2022.

Chief Executive Roger Whiteside said the impact of COVID-19 has been “enormous,” but the business established working practices that allowed it to provide takeaway foodservice under the different levels of restrictions. These include a partnership with Just Eat to offer delivery services, which will be extended from 600 shops to 800 in 2021.

Greggs has six drive-thru locations—two company-owned sites and four operated by franchise partners. Greggs opened one of its first drive-thru stores at EG Group’s multi-lane drive-thru site at Frontier Park, Blackburn, U.K., in November 2018.

Alongside Greggs, there’s a double-lane KFC drive-thru and Starbucks drive-thru.

According to Ilyas Munhsi, group commercial director, EG Group, Greggs has not previously considered a drive-thru format, but its competitive bakery and fresh food offer proved to be popular with customers.

Greggs revealed the average transaction value at this format was 25% higher than in shops. The top-selling product in drivethru is a sausage roll, followed by coffee.

The NPD Group found that drive-thru restaurant usage soared from September to November 2020. The global information company found there were 121 million visits to Britain’s 2,000 QSRs offering drive-thru in those three months—a 14% increase over the same period last year.

Spend, meanwhile, was up a whopping 45% to £723 million as consumers placed larger-than-average orders at the drivethru window.

CONVENIENCE.ORG

NACS Show Chicago, Illinois, United States www.nacsshow.com

Tim Hortons (top) so far has 10 locations with drive-thrus in the U.K. Greggs (bottom) has six drive-thru locations and says the average transaction value is 25% higher than in its shops.

In November (the U.K. entered a second four-week lockdown on November 5, 2020), drive-thru visits reached 37 million, a 27% increase over November 2019, with spend up 73% to £213 million. Dinner and treating occasions were the main beneficiaries, with dinner 20% more important compared to pre-COVID-19 levels, and treating occasions were up 47% as consumers looked to relieve the boredom of lockdown, researchers found.

While drive-thru is not new to Britain— chains such as McDonald’s, KFC, Burger King and Greggs have all been busy opening drive-thrus in out-of-town locations and motorway service stations during the past few years—coffee chains, including Costa Coffee, Starbucks and Tim Hortons, are getting in on the act to expand their reach beyond the high street, where footfall is in decline.

Drive-thru restaurants are a big part of Tim Horton’s expansion plans, according to the company’s U.K. and Ireland retail brand manager Megan Trimble. The chain is planning to open a drive-thru restaurant in every major town and city throughout the U.K. by 2022. The minimum size is 2,400 square feet.

“Currently, we have an estate in the U.K. of 26 restaurants, 10 of which have

For the month of November, drive-thru visits reached 37 million, a 27% increase over November 2019.

MARCH 2021 |

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GLOBAL TRENDS

Tim Hortons’ drive-thru menu is the same as in-store and offers full breakfast, lunch and evening meals, plus a donuts range.

The popularity of drive-thru in Britain has had a boost from COVID-19 as people tend to feel safer and more secure in their cars.

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drive-thru order points,” she said. “We have also got two new restaurants due to open in the coming months, both of which will also be drive-thru locations, taking us to 12 out of 28 restaurants—closing in on 50%.” The drive-thru menu is the same as in-store and offers full breakfast, lunch and evening meals, plus a donuts range.

But it’s not just coffee chains. QSR chains including Subway, Taco Bell and Krispy Kreme are opening drive-thru formats, and The NPD Group reports that in the three-month period between September and November 2020, drivethru accounted for 11% of all eating out visits at QSRs and 12% of spend, both up sharply versus a year ago.

Dominic Allport, insights director (foodservice), The NPD Group, said: “There’s no question that the popularity of drive-thru in Britain has had a boost from COVID-19 as people tend to feel safer and more secure in their cars. Ordering in advance via an app, and a contactless experience at the window, offers additional reassurance to drivers and their passengers.”

DELIVERY VERSUS DRIVE-THRU QSR delivery accounts for £1.6 billion, or 27% of total QSR spend, more than double that of QSR drive-thru (12% of total QSR spend), but the latter’s popularity with consumers suggests it will grow, The NPD Group reports. Researchers expect QSR chains will continue to open drive-thrus, as sites are generally cheaper than on the high street, and planning permission is typically easier to obtain. In addition, it is likely that drive-thrus allow restaurant

chains to keep more revenue and profits compared to delivery, where commission is often paid to a third party, it said.

Admittedly, Britain still has a long way to go to catch up with the dominance of drive-thru in the U.S., where there were 4.7 billion QSR drive-thru visits in the three months to November, which equates to 42% of all QSR visits—a share that is almost four times bigger than the Great Britain equivalent. Unlike Britain, drive-thru is far bigger than home delivery, accounting for 38% of total spend in the three-month period versus delivery, which accounted for 12% of total spend.

As the drive-thru grows in popularity across Britain, new operators are entering the market and expanding the menu on offer beyond traditional fast food and coffee. Restaurant brand @pizza is launching freshly cooked pizza shipping container drive-thrus in seven U.K. retail park locations, capable of making up to 10 perfectly cooked pizzas per minute via high-tech conveyor ovens. Customers will be able to order via an app with the option of collection or delivery to their vehicle.

In London, meanwhile, British meat alternative brand Meatless Farm launched a plant-based pop-up drive-thru and walkthru in London in August 2020; while the craft beer brand Brewdog launched a beer drive-thru service through its bars last year with orders placed via the BrewDog Hop Drop app. The NPD Group said it expects to see more drive-thrus offer an increasingly varied range of cuisines, including Pan Asian and Indian food to meet the desire for spicy foods.

Allport said: “The format is not new to some of the major foodservice operators like McDonald’s, who have long used drive-thru as a complement to their high street and delivery offerings. However, for the coffee chains, drive-thru offers a distinct area of growth to help compensate for reduced footfall on high streets up and down the country.”

The IGD agrees and believes QSRs will be one of the more resilient food-to-go channels moving forward, as it offers a value option for financially stretched consumers, while drive-thru and delivery offers have enabled the sector to adapt to local lockdown restrictions.

CONVENIENCE.ORG

Greggs worked out a plan to provide takeaway foodservice during the lockdowns, including partnering with Just Eat, a delivery service.

Changes in consumer behavior during the pandemic offer up opportunities, but food-to-go businesses need to be quick to grab them, states Nicola Knight, senior food-to-go analyst at IGD. “Welldeveloped digital loyalty, communications and ordering systems have a real role to play for businesses looking for an edge.

Engaging with customers in this way should also help retailers to understand where the demand has moved to if city centers and transport hubs continue to lose footfall,” she said.

“Delivery should also continue to form a part of retailer and operator strategies, particularly if local lockdowns progress,” she added. “To offset the price of thirdparty delivery charges many operators are moving to delivery-only dark kitchens with lower overheads.”

Dempsey also referenced the trend of dark or ghost kitchens, which are changing the face of retail and providing an opportunity for c-stores. In the U.S., Kroger is trialing how to use back-office areas as foodservice distribution hubs to service the local community, reaching tens of thousands in the way some foodservice outlets might not be able. While in Ireland, Musgrave’s foodservice arm is trialing dark kitchens with two restaurants at a convenience store and at one of its food emporiums.

“We really do see every leading QSR player now moving into dark kitchen operations, even McDonald’s in the U.K.,” Dempsey said. “This really appears to be quite the way forward.”

Fiona Briggs is a retail business journalist. She can be reached at fionalbriggs@gmail.com.

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CATEGORY CLOSE-UP / HOT DISPENSED BEVERAGES

Hot Beverage Reboot

Hot dispensed beverages still impact sales as they slowly recover from pandemic challenges.

I State of The insight-rich NACS dives into 2020 the Industry Summit y Deep Dive performance. Categor perts from some of sessions hosted by ex t retail organizations the industry’s standou r 2021. Visit reveal what’s next fo g/SOISummit. www.convenience.or

n the pre-pandemic world, Mark Ericson stopped for coffee at a neighborhood convenience store on his morning commute to the office.

Once he began working from home, he dug out his single-serve coffee machine to produce his own java.

But within a few months, he’d established a pattern of leaving the house around 2 p.m., driving to the same store and buying a latte. “It’s the highlight of my day,” Ericson said. “If I don’t get out of the house in the afternoon, I’ll go stir-crazy. And by that time, I’m needing something with enough caffeine to get me through the afternoon.”

JUST THE FACTS Hot dispensed beverages had the largest gross margin percentage of any foodservice category, according to NACS State of the Industry Report of 2019 Data, and it’s the largest of the three foodservice beverage categories.

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COVID-19 AND COFFEE The U.S. coffee industry is a $96 billion business, according to Statista, and 62% of American adults drink coffee daily, reports the National Coffee Association (NCA).

That makes hot dispensed beverages a cool category for convenience retailers.

The hot dispensed beverage category represented 4.17% of c-store sales in 2019, slightly down year over year, generating $93,401 in sales per store and providing $58,875 in gross profit dollars, according to Jayme Gough, research manager, NACS. The majority of hot dispensed sales were coffee (65.0%), while specialty coffee (25.2%), refills (6.0%), hot chocolate (3.6%) and coffee club mugs (0.3%) made up the remainder.

“Hot dispensed beverages had the largest gross margin percentage of any foodservice category—63.03% in 2019,” Gough said.

“And it’s the largest beverage foodservice category. Among foodservice categories, hot dispensed beverages had the secondlargest percent of sales (17.7% in 2019), behind prepared food (62.6% in 2019).”

Then the pandemic began, followed by store closures, lockdowns and workfrom-home directives. “This impacted the category in a major way, since much of those sales come from commuters,” said Gough.

CONVENIENCE.ORG

iStock.com/unalozmen

BY PAT PAPE

Industry Sales

% of In-Store Sales 2018

2019

4.19% 4.17%

% of Stores Selling

Avg. Sales/Store 2018

2018

2019

2019

96.5% 98.3%

$88,669 $93,401

iStock.com/subjug

Source: NACS State of the Industry Report of 2019 Data

When consumers began working from home, “hot dispensed beverages took a large dip that has yet to surpass 2019 numbers based on CSX data for 2020,” Gough added. “The three largest subcategories— coffee, specialty coffee and refills—all followed the same trend. Despite being a small percentage of sales, refills had the largest dip, which is understandable considering many retailers encouraged customers to not use refills to mitigate the spread of COVID-19.”

Some retailers have experienced a continuation of the “specialty beverage occasions, which occur mostly in the afternoon,” said Mark DiDomenico, director, customer success, Datassential, a food and beverage research company.

“People are at home, but that doesn’t mean that they aren’t going out. In the afternoon, they may want a treat or need to run errands, and it’s easy to stop at a convenience store for that little indulgence.”

According to NACS State of the Industry data, regular coffee remains the top sales contributor in the category, but specialty coffee appeared to be gaining ground in 2019. “Innovation in specialty coffee machines has allowed for greater customization for consumers looking for something like a cappuccino or latte,” Gough said.

CONVENIENCE.ORG

The NCA reports that the consumption of espresso-based beverages is increasing, with the most popular drinks being cappuccinos and lattes, followed by frozen blended, espresso, mocha, macchiato, Americano and flat white, respectively.

Like most c-store retailers, Virginiabased GPM Investments, which operates or supplies about 3,000 convenience stores in 33 states and Washington, D.C., under the Arko Family of Community Brands, is still seeing soft sales during the morning and has not experienced a higher percentage of customers drinking coffee in later dayparts.

“Morning coffee traffic has seen only a slight increase from when COVID first impacted dispensed sales,” said Jim Rastetter, category manager, GPM.

Approximately 62% of Americans drink coffee daily.

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.

MARCH 2021 |

77

CATEGORY CLOSE-UP / HOT DISPENSED BEVERAGES

PER STORE, PER MONTH SALES

2017

2018

2019

2020

$5,000

$4,500

$4,257

$4,000

$3,500

$3,000

$2,500

$2,000 JAN

FEB

MAR

APR

MAY

JUN

JUL

AUG

SEP

OCT

NOV

DEC

Source: CSX; csxllc.com

“Although the morning daypart from 6 a.m. to 10 a.m. still represents more than 50% of coffee sales.”

Morning coffee traffic has seen only a slight increase from when COVID first impacted dispensed sales.

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HOT OPTIONS Seven in 10 Americans drink coffee at least once per week, according to the Specialty Coffee Association. With that in mind, Rutter’s, the 78-store chain based in Pennsylvania, continues to offer limitedtime coffee flavors and offer breakfast deals to attract morning customers.

“If we can get the customer in the door in the morning, there is a good chance they’ll grab a cup of coffee,” said Chad White, category manager for foodservice, Rutter’s. “We began to see some pickup in hot beverages with the cold weather, and we’re seeing good sales with the afternoon customer coming in for food or quick treats.”

Pandemic or no, consumers still crave variety, and GPM recently enhanced its beverage offerings with the addition of a Brazilian blend that is 100% Rainforest Alliance Certified.

“Having a new flavor of coffee at the peak of the season is important and an expectation of customers,” Rastetter said.

“Offering this blend is an important factor in keeping the current core GPM hotdispensed beverage customers engaged.”

CREAMY ADD-ONS While 20% of Americans drink coffee black, reports the NCA, the trend of adding creamer to coffee is on the rise. Sales of liquid coffee creamers jumped 9% in 2019, according to Nielsen, compared with 2% growth across the food industry overall. In fact, creamer sales have increased faster than total food sales for the past four years.

CONVENIENCE.ORG

Subcategory Performance HOT DISPENSED BEVERAGES

Percent of Sales

Avg. Sales/Store

Avg. GP$/Store

Gross Margin %

2018

2019

2018

2019

2018

2019

2018

2019

Coffee

77.7%

65.0%

$68,884

$60,696

$42,697

$37,351

61.98%

61.54%

Cappuccino/ Specialty Coffee

12.0%

25.2%

$10,679

$23,510

$7,217

$15,983

67.58%

67.99%

Refills

4.8%

6.0%

$4,294

$5,628

$2,571

$3,107

59.87%

55.20%

Hot Chocolate

5.1%

3.6%

$4,507

$3,332

$3,156

$2,328

70.02%

69.87%

Coffee Club Mugs

0.3%

0.3%

$301

$236

$141

$105

46.97%

44.67%

Hot Tea

0.0%

0.0%

$0

$0

$0

$0

0.00%

0.00%

Other Hot Dispensed Beverages

0.0%

0.0%

$0

$0

$0

$0

0.00%

0.00%

100.0%

100.0%

$88,669

$93,401

$55,782

$58,875

62.91%

63.03%

TOTAL

iStock.com/AnSyvanych

For more information on NACS category definitions, visit www.convenience.org/categorydefinitions.

Source: NACS State of the Industry Report of 2019 Data

Rutter’s stays on top of that trend.

“We’ve continued to build on what we have done in the past with LTO creamers,” said White. “Silk Almond creamer and our Rutters Dairy fresh products are always available.”

DiDomenico predicts that the demand for plant-based coffee enhancers, such as soy, almond and oat milks, will f lourish. “I think oat milk will be much bigger than people have expected because it’s an ingredient everybody knows,” he said. “And it’s got a great profile.”

Enticing customers back to the beverage bar depends on many things—quality, variety and especially cleanliness, which sends a reassuring message of safety.

“For the immediate future, consumers are going to be leery of anything that has multiple individuals interacting with it—not just beverages—and doesn’t seem clean,” said Chris Wurtzel, strategic account manager for BUNN, maker of dispensed beverage equipment. “Promoting the fact that there are still quality beverages available and dispensing them safely is a top priority and will help drive consumers back to the hot beverage station.”

CONVENIENCE.ORG

Oat milk will be bigger than people have expected because it’s an ingredient everybody knows.

“The convenience industry has done a good job of addressing the safety concerns related to COVID,” said DiDomenico.

“The problem that consumers have is not with operators but with other consumers, and that’s hard for operators to address.

Those concerns are going to be in place at least for the first half of the year, but when the morning commute picks up again, I think people will embrace that English coffee cappuccino like a warm blanket.”

Pat Pape worked in the convenience store industry for more than 20 years before becoming a full-time writer.

See more of her articles at patpape.wordpress.com.

MARCH 2021 |

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CATEGORY CLOSE-UP / LIQUOR

Bottoms Up

The pandemic opens opportunity for the liquor category in c-stores.

T

he still-tiny liquor category is garnering increased attention from convenience retailers and spirits marketers alike, touted as a higher-margin supplement to beer and wine and a key contributor to higher basket rings. Surging sales last year, largely a result of restaurant and bar closures due to the COVID-19 pandemic, are expected to continue in 2021, and some c-store operators are hoping to expand distilled spirits offerings to more stores. The moves could indicate that for liquor products in c-stores, their time has finally come.

“There’s been an increase in the number of c-stores investing in spirits licenses because of the opportunity for incremental sales, compared to just beer and wine alone,” remarked Herb Smith,

JUST THE FACTS According to the NACS State of the Industry Report of 2019 Data, 30% of convenience stores sell liquor.

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| MARCH 2021

vice president, customer development, at E. & J. Gallo Winery, marketer of brands like New Amsterdam vodka and Camarena tequila. Sean Eckhardt, senior vice president and managing director of sales at Bacardi North America, added that c-store operators see liquor as an opportunity to upsell their customers.

“Spirits yield much higher margins than beer, so it makes sense to want to increase their offerings in this area to drive greater profits,” he said. Dan Butkus, vice president of sales at Campari America, meanwhile, noted that in addition to strong margins, spirits can serve as a “foot-traffic driver” for c-stores.

Liquor marketers and distributors are also helping to fuel the swell by increasingly partnering with c-stores on category-building initiatives. “There’s been a more concerted effort to drive engagement with c-stores, and we anticipate seeing this continue,” said Tara Epps, vice president, off-premise national accounts, at Beam Suntory.

More c-stores are indeed stocking the products. According to the NACS State of the Industry Report of 2019 Data, 30% of c-stores now offer liquor, up from 29% in the year prior. Jayme Gough, NACS research manager, noted that the stake is relatively low due to state and local licensing regulations. Average liquor sales per store declined 10.5% in 2019 to $75,744, accounting for 0.9% of in-store sales. Still, gross margins on the liquor category improved to 26.90% in 2019, CONVENIENCE.ORG

iStock.com/Pavel Kratirov

BY TERRI ALLAN

Industry Sales

% of In-Store Sales 2018

2019

0.64% 0.90%

% of Stores Selling

Avg. Sales/Store 2018

2018

2019

2019

28.8% 29.9%

$84,800 $75,744

Source: NACS State of the Industry Report of 2019 Data

iStock.com/alenkadr; Zerbor

resulting in per-store gross profit dollars of $20,391.

MIXOLOGY AS INFO-TAINMENT While final data for 2020 weren’t available at press time, by all reports, spirits sales in c-stores skyrocketed last year. Pointing to CSX data, Gough said, “Monthly sales started to spike in March in alignment with restaurant and bar closures. They peaked in May and then declined in July and August, though remained higher than previous years. At this year s live virtual SOI Summit on April 14, NACS will present full-year data and review how the category turned out overall.

Pantry loading and on-premise closures, of course, drove consumers to c-stores and other channels for their liquor needs. “People still want to celebrate and find ways to connect,” explained Eckhardt. “And just like people were testing out new recipes, they were using mixology as a form of info-tainment.”

Moreover, some consumers felt safer shopping in small-format c-stores versus big box stores, he added. For Bacardi, “Convenience stores are the fastest-growing bricks and mortar retail channel since the start of COVID,” Eckhardt reported.

C-store operators confirm the boom in liquor sales last year. According to CONVENIENCE.ORG

Matthew Scheetz, COO at the Depot Express chain in Iowa, “We saw 42% growth in the liquor category from 2019 to 2020.” Most of the 13 Depot Express locations offer spirits, with prices ranging from 99 cents to several hundreds of dollars for highly allocated labels. Scheetz projected continued double-digit growth for the category this year, and he plans to add liquor to more locations.

Similarly, Mark Whitehead, president of Whitehead Oil, parent of U-Stop convenience stores in Nebraska, said, “Our liquor sales are up substantially. Folks aren’t consuming any less liquor, and U-Stop is getting its fair share of that.”

At Wayne’s Food Mart in Montague, Michigan, meanwhile, manager Jessie

In the past, customers purchased pints. Now, they’re purchasing by the half gallon.

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.

MARCH 2021 |

81

CATEGORY CLOSE-UP / LIQUOR

PER STORE, PER MONTH SALES

2017

$11,000

2018

2019

2020

$10,253

$10,000

$9,000

$8,000

$7,000

$6,000

$5,000 JAN

FEB

MAR

APR

MAY

JUN

JUL

AUG

SEP

OCT

NOV

DEC

Source: CSX; csxllc.com

To build liquor sales, crossmerchandise the products with complementary items such as mixers.

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| MARCH 2021

Hamilton reported a shift toward larger bottle purchases. “In the past, customers purchased pints. Now, they’re purchasing by the half gallon,” the retailer said.

Some liquor subcategories are performing better than others. Whiskey, especially bourbon, is particularly hot. At Rutter’s in Inwood, West Virginia—which added liquor sales last July—“the whiskey subcategory is a driving force,” said Chris Hartman, director of fuels, forecourt and advertising at the Pennsylvania-based chain. Epps and Eckhardt reported that tequila is also advancing in c-stores. “This is particularly true in states like California, Illinois, Louisiana and Missouri, where we see a high index inside convenience stores,” noted the executive from Bacardi, which markets the Patron brand.

Premiumization is a big trend within the spirits segment. “Premiumization of the category is accelerating, even during these uncertain economic times,” remarked Tony Spinelli, vice president, national accounts, at Diageo. “Successful retailers are shifting from budget and value tiers to a more premium-plus assortment.”

CREATE AWARENESS Given the current trends, some c-store operators expressed interest in adding liquor to more stores, where legal. In addition to Depot Express, Rutter’s management “would certainly be interested in adding spirits to more locations,” such as those in Pennsylvania and Maryland, if state law allowed, Hartman said. Just several months after CONVENIENCE.ORG

CATEGORY CLOSE-UP / LIQUOR

Subcategory Performance LIQUOR

Percent of Sales

Avg. Sales/Store

Avg. GP$/Store

Gross Margin %

2018

2019

2018

2019

2018

2019

2018

2019

Distilled Spirits

73.2%

72.4%

$61,894

$59,339

$16,687

$16,027

26.96%

27.01%

Other Liquor

11.0%

15.2%

$2,442

$667

$546

$181

22.36%

27.09%

Cordials/Brandy/Cognac

12.0%

10.0%

$10,160

$5,907

$2,564

$1,670

25.24%

28.28%

Cocktail Mixes

0.9%

1.3%

$803

$795

$213

$232

26.58%

29.21%

Prepared Cocktails

2.9%

1.1%

$9,301

$9,035

$2,456

$2,281

26.41%

25.24%

100.0%

100.0%

$84,600

$75,744

$22,467

$20,391

26.57%

26.90%

TOTAL

For more information on NACS category definitions, visit www.convenience.org/categorydefinitions.

Source: NACS State of the Industry Report of 2019 Data

Successful retailers are shifting from budget and value tiers to a more premium-plus assortment.

beginning sales of liquor at the West Virginia store, he said, “the investment has been a great success. Our customers and the community have been very supportive.” To allow for sales of the product in the store, Rutter’s modified the shop’s seating area and sales floor, providing for a specially enclosed area, which also features beer and wine. Some 350 different liquor options are offered, Hartman reported.

It’s not unusual for c-stores to merchandise liquor behind the counter for shrinkage purposes. That’s the case at Wayne’s Food Mart, where Hamilton explained, “It’s helpful in that it keeps it from walking out the door.” At most of the Depot Express locations offering spirits, the products are merchandised “behind locking glass doors,” stretching from six to eight feet, Scheetz noted. The stores also

NEW CATEGORY DEFINITIONS RELEASED! NACS Category Definitions & Number Guide Version 8 was released in early 2021. Developed by the NACS Research & Technology Committee, this new version reflects significant updates to the last broad iteration (version 7.0 released in 2010). To view the latest updates, visit www.convenience.org/categorydefinitions.

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| MARCH 2021

feature two- to three-feet sections in the checkout area for miniature bottles.

Marketers recommend that when spirits are stocked behind the counter, operators should create awareness that the products are available. Beam Suntory’s Epps suggested offering a menu of available items, as well as stocking small bottles to drive impulse purchases. “Merchandising should also include space at the pump and/or in front of the store,” she said.

At Rutter’s, Hartman noted that the West Virginia store has received a spirits “go-to-market strategy that includes signage on both the interior and exterior of the store, as well as utilization of our loyalty program to communicate the addition of liquor for this location via targeted email blasts.” Direct mailers also have been sent out.

Among other tactics suppliers recommend in building liquor sales are cross-merchandising the products with complementary items such as mixers, where legal. Co-branded displays “invite someone to consider the purchase,” said Eckhardt.

Marketers also see opportunity in continuing to trade up c-store consumers in their spirits purchases. “Don’t be afraid to invest in premium offerings, as today’s spirits consumers continue to look to enhance their at-home cocktail CONVENIENCE.ORG

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CATEGORY CLOSE-UP / LIQUOR

game,” remarked Butkus. And for those operators not yet stocking liquor, Gallo’s Smith encourages them to give it some thought. “They should consider whether it makes sense to look into getting a spirits license to capitalize on this growing category,” he said.

WELL-POSITIONED CHANNEL While Hamilton expressed caution that the boom in liquor sales will likely abate post pandemic, others expect the trend to continue for some time. “I don’t think the COVID precautions will go away anytime soon,” said U-Stop’s Whitehead.

“We expect the liquor category to remain strong.”

Diageo’s Spinelli added that consumers will continue to “go out at home,” as an alternative to traditional on-premise

occasions, and “convenience is well positioned to take advantage of that trend. Spirits can play a profitable role in that evolution.”

Liquor marketers said they’re committed to continuing the category’s growth in c-stores. “Spirits have a long runway in convenience stores,” remarked Eckhardt, noting that Bacardi will increase its investment behind c-stores with the goal of doubling the number of stores that its brands are in. “There’s a lot of opportunity to make this a larger, more profitable business for both us and the retailers.”

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S wedish Match North America (Zyn)..........................................31 (800) 367-3677 www.smna.com

NACS Convenience Matters.......................................................................4 www.conveniencematters.com NACS Executive Education.......................................................................15 www.convenience.org/NACSExecEd

DMF Bait Company..................................................................................35 (800) 332-2248 orders@dmfbait.com www.dmfbait.com

Contact Information

Diaego......................................................................................................83 www.diageo.com

M cLane Company Inc................................................... Back Cover www.mclaneco.com/technology Cool New Products Guide.................66-69 www.convenience.org/coolnewproducts

Terri Allan is a New Jerseybased freelance writer, specializing in the beverage industry. She can be reached at terri4beer@aol.com and on Twitter at @terriallan.

NACS Foundation.......................................................................................6 www.convenience.org/Future-Fund

Swisher International Inc............................................................13 (800) 874-9720 TMG International Inc...............................................................................51 www.tmginternationalinc.com Trion Industries Inc...................................................................................9 (800) 444-4665 www.triononline.com Ty, Inc....................................................................................................... 57 (630) 432-3329 polbrys@tymail.com

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No Shoes, No Problem

Trash Trade What can you do when a beloved player leaves your favorite sports team and you’re left with an outdated jersey?

Some people bury it in the back of their closet or hang on to it, hoping it’ll be worth some cash one day, but one Houston car wash said it would take the jersey in exchange for a free car wash.

The father and son who own the car wash were devastated when James Harden was traded to the Brooklyn Nets from the Houston Rockets, so they invited their community to “trash” their Harden jerseys at their car wash. No word on what the pair decided to do with the jerseys. We’re hoping a local charity got a nice influx of Harden wear.

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Jamie Lynn Spears channeled her sister Britney Spears on her Instagram by posing barefoot in front of a gas pump. She captioned her photo, “Pre-Pandemic Pic......

Casually getting gas without wearing a mask..... or shoes? Bless her heart.” Big sis Britney was notorious for her gas station runs sans shoes, though Jamie Lynn admits that it is “gross.” I think most would agree with Jamie Lynn.

Order Up What’s your gas station order? A recent TikTok trend had users sharing their preferred c-store treats. Flamin’ Hot Cheetos, energy drinks, cured meats, candy and Arizona Iced Tea were common choices.

Some users filmed their picks at an actual gas station, including a shot at Buc-ees with the caption “the croissant at the end CHANGED my life, only texans would understand this one #gasstationorder”.

One user went as far as painting favorite gas station food brands on rocks, including Swedish Fish, Doritos and Lemonhead, among many others. The pandemic clearly gives some people lots of time to spare.

CONVENIENCE.ORG

McLANE’S TECHNOLOGY WILL POWER YOU FORWARD McLane understands the competitive advantage technology can provide, and we’ve made substantial investments in building technology solutions to address the specific needs of c-stores.

Our hardware and software solutions help our customers improve order accuracy, reduce labor costs, optimize inventory and increase margins, just to name a few advantages. From the corporate office to the back office, McLane offers the technology solutions that help retailers buy better, sell smarter and profit more.

To learn more about McLane’s innovative technology solutions for c-stores, visit mclaneco.com/technology

© 2021 McLane Company, Inc. All rights reserved.