NACS Magazine - May 2020

convenience.org | MAY 2020

FOODSERVICE AND COVID-19

Redefining Foodservice Amid the Pandemic

UNCHARTED TERRITORY

How C-Stores Are Protecting Employees

The future of our industry is about innovation, products with the potential to reduce harm and adult consumer choice. Through our companies and strategic partners, we’ve invested in the most compelling portfolio of non-combustible products. We strive to give adult consumers the choices they want today — and invest and develop products for tomorrow.

Servicing: Philip Morris USA U.S. Smokeless Tobacco Company John Middleton Nu Mark Nat Sherman

©2020 Altria Group Distribution Company | For Trade Purposes Only

MAY 2020

28

Uncharted Territory

As the novel coronavirus began its spread, convenience retailers changed course to protect employees and customers.

33

Redefining ‘Normal’ Foodservice

Retailers shift focus to amplifying safe food-handling procedures, site cleanliness and keeping doors open.

36

Good Food From Small Kitchens

How to satisfy customers’ food cravings in limited kitchen space.

44 48 50

Drink Up

With beverage trends shifting quickly, retailers see opportunity with emerging products.

Picture Perfect

A Q&A with BackTrack Video.

Test Kitchen

Cover Art by Beyond Definition STAY CONNECTED WITH NACS

TWITTER @nacsonline FACEBOOK facebook.com/nacsonline INSTAGRAM instragram.com/nacs_online LINKEDIN linkedin.com/groups/1776505

56

Idea labs let manufacturers and retailers collaborate, strategize and build a better convenience business.

Not Your Average Joe

New coffee options, equipment and flavor trends are percolating.

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

MAY 2020 |

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MAY 2020

Consumers today are reaching more and more for confections and see it as a moment of permissible indulgence.

If you have really good food with people who care about the food and nurture it, then people will come.

P.68

GAS STATION GOURMET | P.62

08 From the Editor 10 NACS News 16 Good Work 18 Inside Washington

Day on the Hill attendees tell Capitol Hill our industry’s story; Congress deems convenience stores essential businesses during the coronavirus pandemic.

24 Ideas 2 Go

Basecamp Wilson pleases both tourists and locals with eclectic items and restaurant-quality fresh food.

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62 Gas Station Gourmet

+add food: The New Convenience is an upstart bowl concept with a global flavor.

64 Global Trends

Richard Yeung, CEO at Circle K Hong Kong, talks about re-emerging from the specter of COVID-19.

68 Category Close-Up

Candy continues to perform well at convenience stores; prepared foodservice can be a profitable differentiator.

80 Back Page 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/redstallion

06 Convenience.org

VOLUME 19, ISSUE 5

MAY 2020

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

Lauren Brooks Digital Content Manager (703) 518-4283 lbrooks@convenience.org CONTRIBUTING WRITERS Terri Allan, Sarah Hamaker, Al Hebert, Pat Pape

PAST CHAIRMEN: Frank Gleeson, Aramark Northern Europe; Joe Sheetz, Sheetz Inc.

DESIGN Beyond Definition www.beyond-definition.com

MEMBERS: Chris Coborn, Coborn's Inc. Little Dukes; Joseph DePinto, 7-Eleven Inc.; Bhagdeep Dhaliwal, Dhaliwal & Associates Inc.; Anne Gauthier, St. Romain Oil Company LLC; Varish Goyal, Loop Neighborhood Markets; Thomas Gresham, Double

ADVERTISING Stacey Dodge Advertising Director/Southeast (703) 518-4211 sdodge@convenience.org Jennifer Nichols National Advertising Manager/ Northeast (703) 518-4276 jnichols@convenience.org

Data-driven analysis helps you stay a few moves ahead of the game.

CHAIR: Julie Jackowski, Casey's General Stores Inc. OFFICERS: Lisa Dell'Alba, Square One Markets Inc.; Andy Jones, Sprint Food Stores Inc.; Jose Victor Paterno, Philippine Seven Corp.

(7-Eleven Convenience Store); Ken Parent, Pilot Travel Centers LLC; Donald Rhoads, The Convenience Group LLC; Jared Scheeler, The Hub Convenience Stores Inc.; Kevin Smartt, Kwik Chek Food Stores Inc.

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

NEW VIRTUAL EXPERIENCE

NACS BOARD OF DIRECTORS

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

PUBLISHING 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

Quick Inc.; Brian Hannasch, Alimentation Couche-Tard Inc.; Christine Hogan, Wheels Convenience Stores; William Kent, The Kent Companies (Kent Kwik Convenience Stores); Chuck Maggelet, Maverik Inc.; Chuck McDaniel, QuikTrip Corporation; Charles McIlvaine, Coen Oil Company; Lonnie McQuirter, 36 Lyn Refuel Station; Glenn Plumby, Speedway LLC; Robert Razowsky, Rmarts LLC; Stephen Spinks, The Spinx Company Inc.; Richard Wood, Wawa Inc. SUPPLIER BOARD REPRESENTATIVES: Rick Brindle, Mondelēz International; Drew Mize, PDI STAFF LIAISON: Henry Armour, NACS GENERAL COUNSEL: Scott Sinder, Steptoe & Johnson LLP

NACS SUPPLIER BOARD CHAIRMAN: Drew Mize, PDI CHAIRMAN-ELECT: Rick Brindle, Mondelēz International VICE CHAIRMEN: Thomas Blair, MillerCoors; Brent Cotten, The Hershey Company; Frank Squilla, InComm PAST CHAIRMEN: Jay Ard, Coca-Cola Company; Kevin Martello, Keurig Dr Pepper; Brad McGuinness, Qopper Inc. MEMBERS: Blake Benefiel, Altria Group Distribution Company; Steve Bradley, Wilbur Curtis Co. Inc.; David Charles Sr., Cash Depot; Alicia Cleary, Anheuser-Busch InBev; Tony Gaines, NVIP LLC; Josh Halpern, FIFCO USA; David Jeffco, Krispy Krunchy Foods LLC;

Tim Knight, BIC Corporation; Vito Maurici, McLane Company Inc.; Bryan Morrow, PepsiCo Inc.; Sharon Porter, Saputo Convenience; TJ Powers; John Thomas, iSEE Store Innovations LLC; George Ubing, E&J Gallo Winery; Dean Zurliene, Monster Beverage Company RETAIL BOARD REPRESENTATIVES: Stephen Loehr, Kwik Trip Inc.; Chuck Maggelet, Maverik Inc.; Chuck McDaniel, QuikTrip Corporation STAFF LIAISON: Bob Hughes, NACS 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.

Access on-demand content today! convenience.org/Insights

Subscription requests: nacsmagazine@convenience.org POSTMASTER: Send address changes to NACS Magazine, 1600 Duke Street, Alexandria, VA, 22314-2792 USA. Contents © 2020 by the National Association of Convenience Stores. Periodicals postage paid at Alexandria VA and additional mailing offices.

Enterprise-wide registration available through September 1, 2020.

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1600 Duke Street, Alexandria, VA, 22314-2792

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WHAT’S ONLINE | MAY 2020

NACS Magazine Digital Get Inspired, Wherever You Are. Get the inside scoop on all things convenience by downloading our podcast!

During these unprecedented times, it seems almost everything has gone digital, from work meetings and family reunions to concerts and dance parties. We want to meet you where you are, so NACS now offers the latest issue of NACS Magazine in a flippable PDF version. The digital issue boasts the look and page-turning feel of the print version and includes links to websites, video and more. You can find the most recent digital issue at www.NACSMagazine.com. While you’re there, be sure to catch up on articles from past issues. You can browse by topic, popularity or by month. NACSMagazine.com allows you to stay connected with the latest industry news during these critical times.

Listen Up

Available on:

Tune in weekly at conveniencematters.com

To keep you up to date on the coronavirus’ impact on the convenience and fuel retailing industry, Convenience Matters released several podcasts in March and April solely on this topic and plans to release more this month. Topics include the coronavirus’ impact on fuel supply and demand, the broader implications on retail from the virus and how retailers are responding to this new “normal.” Tune in twice weekly on Apple Podcasts, Spotify, Google Play or other podcast apps, YouTube and at www.conveniencematters.com.

CONVENIENCE.ORG

iStock.com/fotomay

Convenience Matters® empowers listeners and fosters a community of sharing by providing on-demand access to business ideas from those who are at the forefront of disrupting convenience. By providing convenient access to industry knowledge, fresh and candid perspectives from thought leaders—inside and outside of the industry—the podcast makes it possible for retailers and suppliers to strengthen their bottom line and positively impact their communities.

FROM THE EDITOR

Better Together

A letter from Henry Armour, NACS president and CEO

Henry Armour NACS President and CEO

I, for one, am proud to be part of an industry that continues to operate and serve communities across the globe through this difficult time.

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T

he global coronavirus has had a dramatic effect on how we do business in the communities we serve. There are new paradigms for how businesses address and showcase their cleaning and safety measures. Consumers are changing their shopping behavior in ways that could shape long-term buying patterns.

Retailers are reinventing their business models—working with their supplier and distributor partners—to focus more on take-home packaged and prepared items.

What hasn’t changed is how our industry comes together, something that I saw when I was a retailer and joined NACS decades ago. Every day our NACS team and I hear from members who share ideas and insights to help each other navigate through this pandemic.

Our stores are considered essential businesses because of the products we sell and our proximity to customers around the world.

Millions of customers rely on our industry every day, and I, for one, am proud to be part of an industry that continues to operate and serve communities across the globe through this difficult time. In many ways, we are the first supporters for the first responders on the frontlines in our communities.

This magazine is just one way we share ideas to collectively make all of us better. We also have other resources,

whether our NACS Daily newsletter, our social media channels, our Convenience Matters podcasts or convenience.org, to help you manage this crisis. Our coronavirus resources are updated daily to keep you current on the latest COVID-19 news and give you access to essential disaster preparedness materials. These materials and more can be found at convenience.org/coronavirus.

I’m appreciative of your continued support of our industry, our customers, our communities and of NACS during these very difficult times. Please keep in touch and let us know how we can assist you and your team in the coming days, weeks and months.

I am fully committed to helping move the convenience and fuel retailing industry forward—beyond response and recovery—so we can all continue to thrive for years to come. As an industry we are resilient, and we will get through this together!

Please continue to take care of yourself, your employees and your loved ones, and know that we are here to help in any way we can.

Stay safe and healthy,

CONVENIENCE.ORG

Get treated like the big chains Communication

Attention independent store owners Communication

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Here’s what you’ll get: Communication Communication

Communication Communication

New Flavors

Communication: You’ll receive emails telling you about new flavors, displays, marketing programs, and promotion programs. That way you’ll know about them at the same time the big chains do, so you can compete on the same level. You’ll also get simple tips to help you sell more bottles of 5-hour ENERGY and make more money.

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New displays: See the hottest trends in 5-hour ENERGY counter racks, end caps, power wings and floor displays. As soon as it’s available, you’ll know about it!

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Freebies: Why should the big guys get all the good stuff? As a member of the 5-hour ENERGY Retailer Rewards program you’ll have access to freebies year-round. It might be a branded counter mat, or clock, or even something you can sell in your store.

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Freebies Freebies

Freebies Freebies

Price Price Promotions Promotions Price Promotions Price Promotions

Promotion programs: Periodically, you’ll receive information about money-saving promotions you can pass on to your customers. So, when the big chains offer 2 for $6, or buy-2-get-1-free, you can, too.

Marketing promotions: Every year 5-hour ENERGY launches multiple national marketing promotions, and we want you to participate! Being a member of the Retailer Rewards program gives you the chance to jump on board right away.

New Displays New Displays

Get your free merchandising kit!

New flavors: When new flavors of 5-hour ENERGY are released, consumers buy them. As a member of the Retailer Rewards program you’ll find out about new flavors, release dates and availability at the same time the big chains do. ®

New Flavors New Flavors New NewFlavors Flavors

Marketing Promotions Marketing MarketingPromotions Promotions

Marketing Promotions

Sign up today at www.5HErewards.com Mailings and promo items are subject to change. You may opt out of mailings and messaging at anytime. ©2020 SI Online, LLC. All rights reserved. SI Online, LLC is an independent distributor of 5-hour ENERGY® products.

New Displays

NACS NEWS

Hove Joins the Fuels Institute

T

he Fuels Institute announced that Jeff Hove has joined the organization as vice president. In this position, Hove will assist the organization in delivering objective, fact-based analysis about the transportation energy sector, leading select research councils, representing the Institute throughout the stakeholder communities and developing long-term strategies to enhance the overall value of the Institute to the market.

Prior to joining the Fuels Institute, Hove spent more than 20 years in the transportation sector in a variety of roles, most recently as vice president of the Alternative Fuels Council, a software-based compliance project of NATSO, the national trade association focused on travel plaza and truck stop owners, focused on renewable/low carbon fuel blending and the trading of renewable fuel credits. Before launching the Alternative Fuels Council, Hove served as vice president and COO of the RINAlliance, as president of Electric Vehicle Owner Honors and vice president of the Petroleum Marketers and Convenience Stores of Iowa. He also has served as an administrator of the Iowa Underground Storage Tank Fund and the Iowa Renewable Fuels Infrastructure Board.

“Jeff’s experience in the transportation energy sector, the relationships he has developed throughout the market and his passion for gathering and sharing knowledge will be invaluable assets to the Fuels Institute,” said Fuels Institute Executive Director John Eichberger.

Hove earned a Bachelor of Science from the University of Wisconsin in hydrogeology— contaminant assessment and remedial design.

Jeff Hove

Kimmel Promoted to NACS Executive Vice President, COO, CFO Henry Armour, NACS president and CEO, announced the appointment of Brian Kimmel as NACS executive vice president, COO and CFO. Kimmel has served on the NACS staff for the past 27 years, most recently as SVP and CFO. In his new role as COO and CFO, Kimmel will focus on the Brian Kimmel association’s operations and execution, through the shared services of accounting, human resources, risk management, marketing, product and services sales and event management, including the execution of the NACS Show.

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“During Brian’s career at NACS, he has demonstrated exceptional leadership qualities marked by numerous organizational transformation accomplishments, effective colleague mentoring and development, and strong and consistent financial performance,” said Armour.

“As we begin the new decade, we are excited to see Brian take on this new and well-deserved role and continuing to provide his effective senior leadership for years to come.”

Armour will continue to serve as NACS president and CEO, responsible for the strategic direction of the organization, major association initiatives, building and maintaining high-level relationships with association member companies and expanding and deepening its global engagement and internal culture.

CONVENIENCE.ORG

FUELS2020 Virtual Experience Announced FUELS2020 has been recast as a virtual, on-demand experience that will be available for viewing in late May. The virtual experience will include panel discussions and speakers analyzing how climate regulations, technology and an evolving consumer demographic are changing the way we think about transportation.

“We realize one of the most attractive benefits of our annual event—networking with peers across the transportation-energy sector— cannot be replicated. However, we’re excited to bring new virtual collaboration, interactive questions and discussions to FUELS2020 Virtual,” said Fuels Institute Executive Director John Eichberger.

Complete topic details and speaker bios can be found at www.fuelsinstitute.org.

MEMBER NEWS SUPPLIER CAF Outdoor Cleaning announced that Perry Paganelli is returning to CAF as vice president, European sales. Paganelli will play a key role as CAF continues to expand its forecourt and convenience store cleaning technology across Europe and beyond.

Hoshizaki America announced three new hires: •B ret Eldridge, director of national accounts •R od Johnson, director of consultant services •T y Jones, director of e-commerce strategy “Each of these gentlemen are top sales performers, and their extensive industry knowledge will enable Hoshizaki to achieve significant revenue growth,” said Chris Karssiens, senior vice president of sales and marketing.

NACS Calendar of Events

2020 JULY 12-17

NACS Financial Leadership Program Wharton School of Business, University of Pennsylvania Philadelphia, PA

CONVENIENCE.ORG

JULY 19-24

NACS Marketing Leadership Program Kellogg School of Business, Northwestern University Chicago, IL

AUGUST 2-6

Perry Paganelli

For the most up-to-date information on event cancellations, please visit www.convenience.org.

OCTOBER 11-14

NOVEMBER 1-6

NACS Show Las Vegas, NV

NACS Innovation Leadership Program Massachusetts Institute of Technology, Boston, MA

OCTOBER 25-30

NACS Women's Leadership Program Yale University, New Haven, CT

For more information about these NACS events, visit www.convenience.org/events.

NACS Executive Leadership Program Cornell University Ithaca, NY

MAY 2020 |

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NACS NEWS

NEW NACS MEMBERS NACS welcomes the following companies that joined the organization between February 16, 2020, and March 15, 2020.

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 RETAIL MEMBERS

Barebells Venice, CA www.barebells.com

Hush Wholesale Southlake, TX www.hushwholesale.com

Resource Data Management New Hope, MN www.resourcedm.com

Biosteel Sports Nutrition North York, ON, Canada www.biosteel.com

Ignite Beverages Los Angeles, CA www.ignitebeverages.co

Rockit Global Ventura, CA www.rockitapple.com

Bluefin Payment Systems Atlanta, GA www.bluefin.com

Mad Farm 1 San Benito Inc. Paicines, CA www.pinnaclespremium.com

Rowdy Beverage Corp.

Del Mar, CA

Bumble CO dba Bumble CBD Cleveland, OH www.bumblecbd.com

Mason Vitamins Inc. Miami Lakes, FL www.masonvitamins.com

Price Enterprises Inc. dba Pau Hana Express Wahiawa, HI www.carwash808.com

Cusanos Italian Bakery Inc. Coconut Creek, FL www.Cusanos.com

Nano Products H2O LLC dba VitaNourish Las Vegas, NV www.vitanourish.com

Riverside & Co Inc. Cardwell, MO

Daltile Dallas, TX www.daltile.com

OneFabric Technologies San Ramon, CA www.onefabric.com

Digital Mosaic Corp.

Hamilton, ON, Canada www.wearemosaic.ca

Opta Nevada dba Tommy Chong's CBD Las Vegas, NV www.getchongcbd.com

EyeCatch Networks LLC Miami, FL www.eyecatch.com

Pocket Latte LLC Monrovia, CA www.pocketlatte.com

Frogmi Inc. Santiago, Chile www.frogmi.com

Popcornopolis Vernon, CA www.popcornopolis.com

Gold Medal Bakery Fall River, MA

Pork King Good Newbury, OH www.porkkinggood.com

Estaciones de Servicio de Centroamerica dba ESCA Tegucigalpa, Honduras www.esca.com.hn Freeport McMoran-Conoco Morenci, AZ Ozarks Technical Community College dba OTC Bookstore Springfield, MO www.otcbookstore.com

Rocket Fuels Inc. Loogootee, IN www.rocketscp.com

NEW SUPPLIER MEMBERS

Abacus Health Products dba CBDMedic Woonsocket, RI www.cbd-medic.com Aleryani Wholesale Inc. San Leandro, CA www.eryws.com Alternative Vape Supply dba Spectrum Wellness Camarillo, CA www.spectrum-wellness.com AMGtime Los Angeles, CA www.amgtime.com

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GoodForest Inc. Charlotte, NC www.wildbynaturecbd.com

Publicis Sapient Boston, MA www.publicissapient.com

Soin LLC West Carrollton, OH www.soinintl.com The Mitten Fruit Company Kalamazoo, MI www.drinknomi.com Voke Portland, OR www.vokesuperfood.com WashCard Systems Centerville, MN www.washcard.com WellPlus Inc. Grapevine, TX www.wellpluscbd.com

NEW HUNTER CLUB MEMBERS BRONZE

Saputo USA LLC dba Saputo Convenience Dallas, TX Vibenomics Fishers, IN www.vibenomics.com

Great Point Brands Austin, TX CONVENIENCE.ORG

For trade purposes only. ©2019 Swedish Match North America LLC

CONTACT YOUR SWEDISH MATCH REPRESENTATIVE OR CALL 800-367-3677 FOR ADDITIONAL DETAILS

NACS NEWS

BY THE NUMBERS

Taking Care of What Matters NACS launched a retailer survey in late March as COVID-19 began to wreak havoc on the convenience industry. Results from more than 100 retailers around the country showed that the coronavirus was fast changing how retailers ran their businesses—particularly when it came to the safety of employees and customers.

Some retailers installed plexiglass shields in front of the cashier or put a table in front of the cashier as a buffer. To remind customers (and employees) about the importance of social distancing, some retailers placed tape on floors or put up signage. More frequent reminders to staff about cleanliness and site safety, increased cleaning protocols or having stores professionally cleaned and sterilized each week were tactics adopted by several stores.

To keep cashiers safe, one retailer used timers to alert employees about hand-washing frequency. Other retailers supplied gloves and masks to employees.

Many locations shut down self-serve including coffee, condiments, roller grill, bakery, fountain (including refills) and other foods.

On the forecourt, retailers launched assisted service for fueling, especially for the elderly, or went to full-service fueling. Latex gloves also were offered at many locations for customers filling up their own tanks.

For results of the entire survey, visit www.convenience.org/coronavirus.

What procedures have you implemented at your stores? (select all that apply) 10% 20% 30% 40% 50% 60% 70% 80% 90% We have enhanced our cleaning protocols

99%

We have closed public seating/dining areas

67%

We have removed customer access to self-serve foodservice (fountain, coffee, roller grill, bakery cases, etc.)

46%

We are encouraging customers to use contactless payment methods

31%

We have placed limits on certain products (paper products, etc.)

21%

Other procedure (see above for survey feedback)

17%

We have increased our focus on drive-thru

14%

We have increased/added curbside pickup

13%

We have added/increased delivery options

11%

100%

Source: NACS Retailer Survey, March 2020

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GOOD WORK

Retailers Recognize Frontline Employees

C

onvenience stores showed their employees how much they’re valued by boosting pay and other incentives amid the COVID-19 pandemic. Here’s a sample roundup of salary increases throughout the industry (as of April 7): Casey’s gave an additional $2 per hour for its part-time and full-time store employees.

Managers, trainers and supervisors earned an extra $100 a week.

All North American hourly store workers at Circle K stores received an additional $2.50 an hour, effective March 20.

Enmarket increased pay by $2 per hour for all non-salaried store employees, and salaried managers were guaranteed 100% of their bonus potential for March and April. Hourly employees received a one-time check equivalent to $2

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per hour for all hours worked from March 26 through April 15.

Global Partners LP’s convenience store brands, Alltown Fresh, Alltown, Jiffy Mart, XtraMart, T-Bird and Honey Farms, also temporarily increased compensation for retail store employees by $2 an hour and is providing $50 monthly gift cards for each store employee. Store managers will receive a one-time bonus payment of $600.

Kum & Go gave temporary $2 per hour raises retroactive from March 16 until May 3. General managers, district supervisors and staff who lead COVID-19 sanitation efforts also received bonuses, and all employees received one free prepared food item during each shift they worked.

Love's Travel Stops & Country Stores gave hourly store employees a $2 per hour pay increase and a $100 bonus.

CONVENIENCE.ORG

At Nouria, every store employee, car wash employee and field maintenance technician received an hourly pay raise of $1 from March 22 to April 25.

Pilot announced “Thank You Pay” for all store hourly team members for an additional $2 per hour, retroactive back to March 19 and extended through April 29 (applied to regular and overtime hours worked). Flying J increased hourly pay by $2 retroactive to March 19 for all team members in travel centers until the end of April and provided them with free meals.

RaceTrac announced a $3 per hour pay increase to hourly store team members, while salaried employees at stores received an additional $150 per week through April 2020.

Rutter’s gave team members a $2 per hour wage boost starting March 25, while salaried restaurant and store managers received a $100 weekly bonus.

Sheetz paid store employees an additional $3 per hour from March 13 to April 23.

VERC Enterprises gave all full-time employees $500 bonus checks, and part-time employees received $200. On March 23, the company increased the hourly pay of store employees by $2, while raising the salaries of each store manager by $100 per week.

Wawa said it is recognizing the hard work of its associates “with additional pay and by continuing to review and update our paid time off policies to be more flexible and supportive, and to minimize the impact to [employees] should they be affected

by COVID-19.”

Many retailers also announced additional in-store safety measures, such as installing plexiglass protective barriers at the register to minimize employee-customer contact. Retailers also installed social distancing cues and signage throughout stores to maintain a six-foot separation, and retailers like Family Express in Indiana installed dispensers filled with disposable wax tissues at each location so people wouldn’t need to touch any hard surfaces.

Stay up to date on the latest coronavirus news and industry resources at www.convenience.org/ coronavirus.

CONVENIENCE.ORG

IN THE COMMUNITY Dash In, a Wills Group company, announced $200,000 in grants to four food banks operating across the Mid-Atlantic region: Food Bank of Delaware, Maryland Food Bank, Feed More and Capital Area Food Bank.

The Goods Mart in New York City started sending Surprise Snack Boxes to residents, who also could donate a snack box to the medical staff at Memorial Sloan Kettering, Mount Sinai and NYU Langone, or to the Food Bank for New York, all while supporting the Restaurant Worker’s Relief Fund.

Marathon Petroleum Corporation donated 575,000 N95 respirator masks to 45 health-care facilities, while the Marathon Petroleum Foundation Inc. gave $1 million to the American Red Cross Disaster Relief.

7‑Eleven Inc. donated one million masks to the Federal Emergency Management Agency (FEMA) to aid the medical community battling the coronavirus pandemic. 7‑Eleven provided all stores and franchisees with a supply of masks for employees as they serve customers in their stores and donated all remaining inventory to FEMA. Sheetz announced a new Kidz Meal Bagz program that provides free food to help children and families in need as a result of the COVID-19 pandemic. Meal Bagz include a turkey sandwich, chips and a drink. Families will be offered one bag per child. Meals will be available daily while supplies last.

Speedway donated 7,000 N95 masks and 3,000 surgical masks to 11 children’s hospitals located in hotspot areas to help provide protection when treating members of the community.

As of April 7, the Wawa Foundation approved $21,500 for 16 food banks and non-profits, which brings the Wawa Foundation Emergency Food Distribution Fund contribution total to $141,000.

MAY 2020 |

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INSIDE WASHINGTON

Telling Our Story It’s one that Capitol Hill needs to hear.

BY MARGARET HARDIN

From L to R: Stuart Ellison, Rep. Cathy McMorris Rodgers (R-WA), Damon Borden, Jan Gee, Tammie Hetrick and Don Rhoads.

FACTS & FIGURES

52 teams of retailers and suppliers visited Capitol Hill

270 The number of members of Congress and their staff visited by Day on the Hill attendees

48 states

The number of states represented by the members of Congress visited

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T

he convenience store industry has an incredible story to tell. It’s a story about meeting communities’ needs in time of crisis, about serving half of the population every single day and about fueling America, first responders and healthcare workers, among others. And it’s a story that our lawmakers need to hear as they make decisions that impact our ability to operate and serve our customers.

In early March, 174 members of the industry traveled to Washington, D.C., to tell their story at NACS Day on the Hill. This one-and-a-half-day event gave retailers and suppliers the opportunity to advocate on behalf of the convenience and fuel retailing industry on Capitol Hill.

This year, we had record-breaking attendance, including 58 first time attendees.

Ahead of congressional meetings, NACS spent time preparing attendees for the issues they will discuss. To kick off our time together, Legislative Committee Chairman Don Rhoads, president and CEO of The Convenience Group, discussed the importance of building relationships with members of Congress and attending

Day on the Hill each year. The decisions these legislators make directly affect retail operations and our ability to serve communities. By showing up each year, lawmakers get to know you and your business. He reminded the audience that the convenience retailing industry plays a crucial role in the American economy—employing 2.4 million Americans, generating more than $654 billion in sales and serving 165 million Americans every day. Rhoads concluded by emphasizing, “Our industry’s story is one that Washington desperately needs to hear.”

Attendees went to Capitol Hill to discuss three policy issues: electric vehicle charging infrastructure, consumer data privacy and payments security.

ELECTRIC VEHICLE CHARGING INFRASTRUCTURE Convenience and fuel retailers should be a part of the solution in moving transportation energy toward electrification.

Our industry is in a unique position to provide consumers the ability to charge their electric vehicles at our stores since we are in every city, county and state CONVENIENCE.ORG

across the U.S., with more than 122,000 stations. The conversation was timely.

Congress is working on legislation that would reduce the use of fossil fuels and promote electric vehicles and alternative transportation technologies. As Congress legislates on transportation energy, the priority of NACS is to ensure that the private market can sell any transportation energy in a competitive market with a level playing field. Allowing the private sector to compete is the best way to spur investment in, and development of, electric vehicle charging infrastructure.

NACS Day on the Hill teams educated members of Congress on how the convenience and fuel retailing industry is well suited to offer EV drivers the ability to charge their vehicles.

CONSUMER DATA PRIVACY In response to advances in technology, numerous media reports about privacy abuses and the proliferation of state legislation on consumer data privacy, Congress is working on legislation to create a federal privacy law and grant consumer rights about use of their information. NACS believes any federal privacy legislation should apply to all industry sectors, rather than shifting the requirements onto the retail sector of the economy. Any exemptions or carve-outs, including for the banking or telecommunications industries, would leave consumers without protection and would be unfair to the other industries that would be burdened with additional responsibilities. During NACS Day on the Hill, attendees asked their lawmakers to support privacy legislation that applies to all industry sectors without exemptions and not make our businesses responsible for the privacy policies of other businesses and industries.

PAYMENTS SECURITY The United States leads the world in payment fraud and lags far behind in CONVENIENCE.ORG

security, competition and innovation.

This largely is due to how payment security standards are set. While current law requires standard-setting bodies to have open membership and proceedings, the main payment standard bodies ignore these requirements. Today, the major card networks set payment security standards through standard-setting bodies like EMVCo without giving a voting voice to merchants, smaller networks, banks or consumers. As a result, these standards benefit the companies that set them at the expense of security, competition and innovation. NACS believes payment standard-setting bodies should follow the same rules as those in every other sector.

In times like these, it is critical that we make our voice heard on Capitol Hill.

KEEP ‘EM ALIVE After an update on the issues, attendees were prepped and ready to tell their story on the Hill. But before that, they were entertained by a show from the Capitol Steps. The Steps are a satirical comedy singing group that digs into the headlines of the day, and there was no shortage of content available in early March. Crowd favorites included songs such as “The Sound of Sanders” to the tune of “The Sound of Silence,” and “Keep ‘em Alive” to the tune of “Staying Alive” (a song about the aging members of the Supreme Court).

The Steps didn’t pull any punches, and both sides of the political aisle were fair game.

A STORY TO REMEMBER For this year’s Day on the Hill, 52 teams of retailers and suppliers told their stories to 270 members of Congress and their staff covering 48 states, all but Alaska and Hawaii. Talk about leaving an impression!

Day on the Hill took place before the widespread outbreaks of COVID-19 in the United States. Since meeting in early March, these retailers have been able to go back to members of Congress and their staff to talk about how the virus is affecting their workforce and

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INSIDE WASHINGTON

Margaret Hardin is the NACS grassroots manager.

She can be reached at mhardin@convenience.org.

business operations. They have been able to explain the critical role convenience stores play as essential businesses and why they should remain open during a national emergency. As Congress passes relief packages, they’ve been able to follow up and express what they’re seeing on the frontlines and what would be helpful to their businesses.

The convenience store industry is made up of passionate, resilient members

who touch every community and congressional district in the United States.

In times like these, it is critical that we make our voice heard on Capitol Hill, and we are grateful to our advocates for telling their story.

NACS Day on the Hill isn’t the only way you can tell your story. If you would like to get involved in our grassroots efforts, please contact Margaret Hardin at mhardin@convenience.org.

ONE VOICE This month, NACS talks with Samuel Bayless, director of policy at the California Fuels and Convenience Alliance.

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

Samuel Bayless Convenience stores do an excellent job of serving their communities at the pump and in the store, but there is an opportunity to show others the depth of their involvement as neighbors. While their humility is certainly an admirable trait, I think many of these businesses could engage their communities more directly to show the important work they do and role they play. These stores are an important part of any community, yet many consumers see a national brand name and assume it is not a small business owned and operated by someone they may see at the grocery store or dropping their kids off at school. Convenience stores are the cornerstone of many communities and rightfully deserve that distinction.

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

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NACS has been and continues to be an indispensable resource for the California Fuels and Convenience Alliance, allowing us to participate at the federal level through Day on the Hill and keeping us informed of congressional and federal agency actions. Often, our state leads the charge on environmental and labor rule development. Without NACS, we might not have the bandwidth to engage at all levels of government and make our voice heard. NACS provides that invaluable opportunity. As one of our members often says, “If you’re not at the table, you’re on the menu.”

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

COVID-19 employment issues aside, I am tracking federal consumer privacy very closely. The California Consumer Privacy Act was passed last year, and the regulatory development and rollout was a nightmare for small businesses, especially those offering loyalty programs. I’d love to see Congress take action to ease some of these burdens and prevent California’s laws on this front from taking hold elsewhere.

What c-store product can you not live without?

Tough to choose just one. My local c-store is two blocks from my home, while the grocery store is a 10-minute drive, so I’m there frequently. I really like the coffee at my local store, and the conversations I get to have with its amazing employees.

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INSIDE WASHINGTON

Convenience Stores Are Essential CONGRESS DEEMS CONVENIENCE STORES ESSENTIAL BUSINESSES DURING THE CORONAVIRUS PANDEMIC.

BY ANNA READY BLOM

Anna Ready Blom is the NACS director of government relations. She can be reached at ablom@convenience.org.

Convenience stores meet the essential needs of their communities. Whether it’s selling fuel to first responders and health-care workers or providing convenient and quick access to staple food items and other needed supplies, convenience stores play a vital role in American life. For this reason, NACS is working to ensure convenience stores are considered essential and critical businesses during the coronavirus pandemic.

At the beginning of the crisis, NACS reached out to the White House, members of Congress and the federal agencies to share facts about the essential nature of convenience stores and ask that they be allowed to remain open through whatever action was taken at the federal level. In response to these efforts, the Department of Homeland Security’s Cyber

Infrastructure and Security Agency (CISA) released guidance recognizing convenience stores and our entire supply chain as part of their critical infrastructure workforce.

While this was not a federal directive, many states and cities have heeded the CISA guidance when issuing stayat-home orders. In addition, NACS shared our key messages with our state association partners, which have worked diligently with their governors to ensure convenience stores were designated essential on the state level.

Throughout this crisis, NACS will continue to work to keep convenience stores open. NACS has created a template access letter for employers to carry as they travel to and from work. You can find this and other resources and updates at www.convenience.org/coronavirus.

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 March 1-31, 2020, are: Lisa Biggs Impact 21

Carl Motter VAN Oriental Food Inc.

Robert Sokolski Whirley-DrinkWorks!

Matt Danzig good2grow

Ron Rutherford Apter Industries Inc.

Richard Spresser Pester Marketing Company

TJ Lynch KeyImpact Sales & Systems

Stanton Sheetz Sheetz Inc.

Melissa Vonder Haar iSEE Store Innovations LLC

Chuck McDaniel QuikTrip Corporation

Lincoln Sokolski Whirley-DrinkWorks!

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IDEAS 2 GO

A Modern Spin

Basecamp Wilson pleases both tourists and locals with eclectic items and restaurant-quality fresh food.

BY SARAH HAMAKER

We wanted to keep our shelving cohesive, so we don’t allow any outside point-ofsale displays.

Basecamp Wilson, located in Wilson, Wyoming, bills itself as “a high-end market with a restaurant that sells gas.”

H

ow do you design a unique experience for your customers? Create your own set of standards. That’s the guiding principle for Basecamp Wilson in Wilson, Wyoming. “We embraced that our standards are our standards, and we don’t compare ourselves to other gas station

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 2019 and earlier, go to www.convenience.org/Ideas2Go.

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convenience stores,” said James Fraser, general manager of the store, which is located at the base of Jackson Hole’s Teton Pass. “That philosophy has allowed us to think outside the box.”

Fraser, along with some financial partners, purchased the convenience store in 2018 and transformed it into Basecamp Wilson, “a high-end market with a restaurant that sells gas. We’ve enjoyed the dichotomy of having a cool experience with our convenience store/ restaurant on the inside and gas pumps on the outside.”

MODERN MARKET On the market side, Basecamp Wilson has traditional convenience store items, such as snacks, drinks, tobacco and candy, CONVENIENCE.ORG

ABOUT

Name of company Basecamp Wilson Date founded August 2018

Basecamp Wilson’s market sells traditional c-store items alongside gourmet grocery items and carries an extensive craft beer, spirits and wine selection with a sommelier on hand to answer customer questions. Basecamp Wilson’s in-house restaurant, Rations Wilson, serves quality food and supplies the store's extensive grab-and-go section.

alongside gourmet grocery items and wines, craft beers and spirits. The store also carries local and French cheeses, plus charcuterie items and higher-end crackers. “We also have a lot of kombucha, sparkling water, Yerba Mate energy drink replacements, premium chocolate and local sausages and meats, plus high-end snack sticks,” Fraser said.

The store boasts a robust alcohol section that includes the standards, plus craft beers from 30 different breweries— many of them local—and beer and wine on tap. Basecamp Wilson’s wine shop even has an in-house sommelier. “That’s something not many gas station convenience stores have,” he said. The sommelier focuses on low intervention and natural wines without a lot of chemicals or preservatives added. “We have between 100 and 150 bottles of wine, ranging in price from $9 to $120 per bottle,” Frasier said.

The sommelier is on hand to answer customer questions and also run a weekly wine tasting on Friday afternoons, where she showcases two wines. “We end up selling cases of wine during the tastings, so it has worked well for us,” Fraser said.

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# of stores 1

Basecamp Wilson’s in-house restaurant is Rations Wilson. Run by Chef Brian Laughlin, the fast-casual restaurant serves quality food, such as hand-ground burgers and breads from a local bakery. “We try to

Website www.basecampwilson.com

BRIGHT IDEAS “We want our staff to create relationships with customers because it helps both with staff retention and customer loyalty,” said James Fraser, general manager of Basecamp Wilson in Wilson, Wyoming. To that end, Fraser maintains staffing at the same level throughout the year, despite the traffic uptick in the summer with the influx of tourists. “We’re located in a very seasonal resort town, so that means we’re really busy in the summer and less so in the winter,” he said. “But we’ve kept our staff pretty much the same because I don’t downsize our employee roster in the off-season.”

To Fraser, the cost of a higher payroll during the slower winter months is more than offset by low turnover. “It’s also the convenience and peace of mind knowing that our workers know our store and customers,” he said.

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Resources for Emergency Planning and Management Plan. Prepare. Recover.

NACS supports you in boosting your business resiliency. Your emergency planning resources were developed alongside the U.S. Department of Homeland Security and FEMA experts.

Industry-specific. Tailored for you.

Developed from current emergency preparedness and

Resources include: + Emergency planning guides + Task checklists + Emergency preparedness employee videos + A free mobile app containing all resources.

recovery practices from more than 20 convenience retailers located throughout the United States, these resources are convenience-industry specific. They include government regulatory requirements and professional association recommendations.

Download the Mobile App now!

The app is simple and free. Go to saberspace.org/nacs-app.html

To download guides, see the Webinar, or review training videos, go to: convenience.org/prepare

and complete the brief enrollment.

You’ll then download the app on your Apple® iPad® or iPhone® or Android® phone or tablet.

IDEAS 2 GO

keep the price point low, too, such as offering burger and fries for $9,” Fraser said.

The store offers 24 seats inside plus an additional 40 to 60 seats outside, weather permitting. In addition, Rations supplies the store’s extensive grab-and-go section, including four kinds of breakfast burritos, fried chicken, hot ham-and-cheese sandwiches and other menu items. “Most of what we feature on our menu is available in our grab-and-go section to give customers a choice of pre-made or freshmade,” Fraser said.

MODERN CONNECTIONS Architecturally, Basecamp Wilson resembles “a nicer boutique store or restaurant,” he said. “We didn’t want to take any cues from other gas stations as we wanted a unique look all of our own.”

Inside the store, the only shelf branding is Basecamp Wilson. “We wanted to keep

our shelving cohesive, so we don’t allow any outside point-of-sale displays. We wanted people to see our brand,” Fraser explained. He added that the ban on supplier POS displays has not hurt sales at all. “In fact, we have seen sales increase significantly because of our focus on Basecamp Wilson branding.”

The store connects with customers via Instagram and Facebook, as well as through advertising in local publications. “We also do local events, such as wine dinners with a regional wine maker, and we sponsor local town activities, too,” he said.

Overall, Fraser hopes customers leave the store with a smile “and the thought that this is the cleanest, nicest, most different gas station experience they’ve ever had. Our goal is that they begin to expect all convenience stores to be like Basecamp Wilson.”

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

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HARTED RITORY C

oronavirus, a word that wasn’t in our lexicon just three months ago, now sticks to the tongue with a bitter taste. Stronger words like “resilient” and “pivot” have come alongside it as buffers, while the world waits for this unwelcome visitor to depart.

The COVID-19 pandemic has slashed the global economy, ravaged oil prices and upended what once passed as normal in our everyday lives, yet a determined spirit remains.

And nowhere is this more evident than in the convenience and fuel retailing industry.

Deemed essential businesses in the United States by the Department of Homeland Security in March, convenience stores and gas stations across the country have rallied to support their employees, ratchet up safety and

CONVENIENCE.ORG

As the novel coronavirus began its spread, convenience retailers changed course to protect employees and customers.

BY KIM STEWART

discover new ways to meet the needs of their customers. Entrepreneurship is the lifeblood of the industry, and in this period of phenomenal upheaval, we’ve seen operators small and large identify problems and devise solutions on the fly.

From Kenosha, Wisconsin-based Lou Perrine’s creating to-go meal boxes of grocery staples and special treats, to Tulsa, Oklahoma-based QuikTrip introducing a forecourt pickup service for household essentials, to the San Carlos 76 gas station in San Jose, California, pumping customers’ gas and delivering food and beverage purchases pumpside, retailers large and small are pivoting to shelter their businesses and supply their customers in this bewildering new age.

Retailers were taking action in three key areas—human resources,

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“ We are doing everything we can to keep stores open and stocked with the products local communities need, while also keeping customers safe.” operations and sales—in March and early April as the pandemic unfolded in the United States.

HUMAN RESOURCES C-store employees are on the frontlines of the pandemic interacting with customers, and employers are supporting them with enhanced emergency leave, extended benefits, pay increases and free meals.

Travis Sheetz, president and COO, in an open letter to customers on March 13, called team members “the heart and soul” of Sheetz, stressing that “their safety and well-being is of top priority to us, and of particular concern.” He added, “While we are driven to remain open and available to you, we will not jeopardize anyone’s health or safety in that effort and must follow the direction of local, state and federal health agencies and officials. As a last resort, some stores could close. At a minimum, you may experience staffing shortfalls, so we thank you for your support of our team members.”

Casey’s, Enmarket, High’s, Kum & Go, Love’s Travel Stops and Country Stores, Pilot Company, RaceTrac, Rutter’s, Sheetz, VERC Enterprises and

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Wawa were among the chains paying an additional $2 to $3 per hour to associates. Many awarded bonuses to store managers and district managers.

Love’s and other employers added free meals for employees during their shifts.

To keep employees and customers safe, managers watched for any team member showing signs of illness and directed them to go home and seek medical advice. “If an associate experiences any symptoms of COVID-19, we encourage them to be tested,” Kyle J. Krause, chairman and CEO of Kum & Go, said in a social media post in early April.

“And regardless of their health coverage status, should there be a cost associated with testing, we will cover it.” He added that the Des Moines, Iowa-based company would compensate employees for their normal work schedules in case they need to self-quarantine for 14 days.

As states imposed stay-at-home orders, retailers moved swiftly to issue access letters to identify c-store employees as essential staff in case law enforcement officers questioned why they were on the road.

OPERATIONS Cleaning practices across the board were put on steroids because COVID-19 can remain on surfaces for days. Touchscreens, push plates, railings, switches, countertops, door handles and food contact surfaces received thorough cleanings.

At Kwik Chek, for instance, stores that sell fresh prepared food were sanitizing every 15 to 30 minutes, and non-food stores a minimum of every two hours, CEO Kevin Smartt shared on Twitter. On the forecourt, employees at the Spicewood, Texas, chain were sanitizing fuel dispensers every 15 minutes, Smartt said in an early April tweet.

Gas stations across the country encouraged customers to use freely offered plastic gas mitts and hand sanitizer at the pumps, although some stores had to provide them on demand due to theft.

In a national survey of U.S. convenience store owners conducted by NACS in late March to April 1, nearly one in three (31%) retailers said they were providing hand sanitizer at the pump, and 20% were providing gloves. The Spinx Company, for example, got “two thumbs up” from a customer on Twitter for “keeping the Purell filled” at one of the Greenville, South Carolina-based chain’s stores.

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10 Ways Retailers Are Helping Their Communities An early move at c-stores nationwide was to halt self-serve coffee, fountain beverages, bakery items and pizza slices. Roller grills switched off, and bring-your-own drink tumblers were banned.

Grab-and-go and made-to-order food and beverages remained for sale. In-store seating areas were cordoned off to comply with state guidance to limit people congregating in groups bigger than 10 as governors in multiple states ordered bars and restaurants to close to dine-in patrons in an effort to slow the spread of the virus.

In the NACS survey, 66% of respondents said they had closed public seating and dining areas, and 45% had removed customer access to selfserve foodservice such as coffee, fountain drinks, bakery items and roller grill. (Note: Not all retailers surveyed had foodservice operations.)

The demands of constant cleaning coupled with staffing issues forced many stores—7-Eleven, Casey’s and Wawa among them—to adjust overnight hours.

In a 24/7 industry, the change was unprecedented.

“At some locations we have reduced store hours to allow more time for cleaning, as well as to more provide additional time for our team members to take care of their families,” Casey’s said in a March 20 message on the Ankeny, Iowa-based c-store chain’s website.

Nearly two in three retailers (60%) surveyed

by NACS indicated they have reduced store operating hours, due to less customer traffic or to deep clean and restock during overnight hours.

“We are here for the public and their needs. We are taking every precaution to conduct business safely,” noted one retailer.

As social distancing became the norm, many stores installed footprint decals on their floors or signs and partitions to direct customers to queue up at least six feet apart. Then came plexiglass partitions and masks and gloves for store employees as the virus hits communities.

Irving, Texas-based 7-Eleven installed plexiglass sneeze guards at the front sales counters in its 9,000-plus locations in an effort to reduce the spread of COVID-19. “We are doing everything we can to keep stores open and stocked with the products local communities need, while also keeping customers safe,” Joe DePinto, 7 Eleven president and CEO, told customers in late March. “These new sneeze guards provide additional protection CONVENIENCE.ORG

1. F ree lunches for needy children while schools remain closed 2. D onations of personal protective equipment to FEMA and health-care staff 3. D onations of non-perishable food and personal care products to local food banks 4. E mergency relief fund monetary donations to support local hunger relief efforts 5. Monetary donations to relief funds for restaurant workers in need 6. M onetary donations to the United Way’s COVID-19 response fund and the American Red Cross Disaster Relief fund 7. Free coffee or fountain drinks and free or discounted sandwiches for health-care professionals and first responders 8. Free fuel for emergency services responders 9. Special shopping hours for older adults and people with vulnerable health issues 10. Free delivery of food and grocery items Follow #ConvenienceCares on Twitter, Facebook and Instagram to see stories of retailers giving back.

for customers, store associates and franchisees.

We are monitoring the changing situation and CDC recommendations and will continue to prioritize the health of our customers, store associates and franchisees across America.”

To protect employees and customers, store cashiers at Parent Petroleum’s PRIDE chain, headquartered in Warrenville, Illinois, wear plastic gloves during their shifts, and the 24/7 stores close for two hours overnight for a deep sanitization inside. Gas pumps are cleaned multiple times throughout the day. PRIDE stores also have hand sanitizers by each door.

SALES More than half of all retailers (52%) surveyed by NACS said their grocery sales have increased.

Convenience stores traditionally sell immediate consumption items—83% of all products sold at a store are consumed within an hour—but they have pivoted to providing items that can be brought home: 52% said they have added more cleaning/toiletry items;

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31% were emphasizing ready-to-heat meals; and 28% were showcasing multi-pack/bulk items.

With millions of Americans sheltering in place, delivery services and contactless delivery have become the new norms. In the NACS survey, 14% of retailers said they were offering a curbside pickup program; 13% had increased a focus on drive-thru; and 11% had added or increased delivery options.

QuikTrip is one chain that will deliver c-store orders placed via QT’s mobile app to customers in the forecourt. PRIDE stores switched to offering its restaurant menus for carryout and delivery via Uber Eats. “With many grocery stores being hit hard by consumers stocking up on products, our restaurants could continue to be busy because of the lack of options available, so we won’t be routing employees to other roles,” Mario Spina, owner and CEO, told NACS Daily.

Foxtrot Market, with locations in Chicago and Dallas, switched to a contactless delivery option to meet the wishes of both customers and delivery drivers to minimize human-to-human contact.

Karma Convenience Stores in the Minot, North Dakota, area waived customer fees for grocery delivery during the pandemic. “We carry all of our customer’s needs: groceries, formula, frozen, fresh meat cut daily with a butcher on staff, as well as fresh deli and bakery daily,” Amanda Johnson of Karma Stores told NACS Daily. Wawa reminded customers that delivery was available at 70% of its store service areas through third-party providers like Door Dash, Uber Eats and Grub Hub. RaceTrac Petroleum made it easier for customers to get the merchandise they need without social

NACS Coronavirus Resources To help answer the many operational, HR and legal questions retailers may have as they navigate this rapidly shifting public health crisis, NACS maintains an online resource center that is updated daily. For news and guidance, visit the Coronavirus Resources page at www.convenience.org/coronavirus.

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contact. The Atlanta, Georgia-based company’s gas stations are using the “night pay box” pass-through windows. Customers who want to make a purchase without going inside the store can approach the window and ask a RaceTrac team member to collect their merchandise for them. Another option is to call ahead and place an order, which is paid for and picked up at the pay box.

7-Eleven encouraged customers to use its 7NOW delivery app, available to more than 35 million households in 400 cities. 7-Eleven was offering free delivery on all 7NOW orders through April 30 with a promotional code. The app’s “contactless” delivery option lets customers choose to have their delivery left at the door by the driver.

Indeed, convenience and fuel retailers renewed their focus on mobile apps and payments to limit in-store contact as handing over cash or credit cards and entering numbers on a PIN pad grew riskier. Sheetz, for instance, added scan and checkout on its app so customers can bypass the cashier. Pilot Flying J reminded truck drivers of the mobile pay feature on its app so they could place orders and reserve showers at truck stops. High’s offered Skip, a self-checkout app, and Carroll Pay, which can activate a gas pump and allow customers to pay for merchandise from a mobile phone. And Casey’s asked customers to “pay online or in the app to reduce contact at checkout for pizza carryout and delivery.”

Editor’s note: By May, it’s our deepest hope at NACS that the pandemic has reached its zenith, and our communities—and industry—have begun the healing process. We recognize, though, based on government guidance, that the worst might lie ahead of us. COVID-19 may have dredged up uncertainty and heartbreak, but let’s not give it the last word.

im Stewart is editorial K director of NACS and editorin-chief of NACS Magazine.

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REDEFINING ‘NORMAL’ FOODSERVICE Retailers shift focus to amplifying safe food-handling procedures, site cleanliness and keeping doors open.

BY CHRIS BLASINSKY

T

hese days, convenience retail is anything but boring. Since March, retailers have completely pivoted their business practices to ensure they can provide a safe environment for their employees and customers, provide daily essentials for their communities and keep stores operating amid the global coronavirus pandemic.

Retailers have shut down prepared food offers altogether or eliminated self-serve options such as roller grills, fountain (cold and frozen dispensed) and bakery cases. Others have closed franchise foodservice programs inside stores, and some are capping the number of people allowed inside the store—or they don’t allow customers inside at all.

Convenience retailers that were exploring whether to offer food delivery quickly jumped on board to make it a reality, while others have built drive-thrus and implemented contactless pickup options.

Beyond working to keep stores stocked and employees and customers safe, convenience retailers, designated as essential businesses by the U.S. Department of Homeland Security on March 19, CONVENIENCE.ORG

have been addressing myriad local, state and even county regulations—including local ordinances where officials initially confused convenience stores as cafés and restaurants.

An increasing number of stores have installed plexiglass sneeze guards at registers, placed decals on the floor directing customers to socially separate by at least six feet and allowed employees to wear masks. As the frequency of cleaning stores and fuel islands has significantly increased, frontline employees are wearing protective gloves and vigilantly disinfecting high-touch point surfaces.

All these actions—this “new normal” for convenience stores—took place within the first few weeks of the COVID-19 pandemic spreading in the United States, and every day it seems like there is something new. There will certainly be further developments between when this article is published and when you read it.

As one retailer commented, “we’re all feeling our way through this, and we’re all addressing new types of employee and consumer concerns, as well as concerns around the safety of foodservice during this time.”

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Read the Latest The NACS Daily e-newsletter provides the most up-todate information on COVID-19 and its impact on the convenience and fuel retailing industry. Subscribe to this free newsletter delivered to your inbox every weekday morning at www.convenience.org/NACSdaily.

ARE FOOD AND FOOD PACKAGING SAFE? The short answer is yes. More information about the virus continues to be published, and the broader food retail industry community, including the Centers for Disease Control (CDC) and Food and Drug Administration (FDA), continues to clarify questions around whether food and food packaging are potential sources for COVID-19.

“Unlike foodborne gastrointestinal viruses like norovirus and hepatitis A that make people ill through contaminated food, SARS-CoV-2, which causes COVID-19, is a virus that causes respiratory illness. This virus is thought to spread mainly from person to person [through respiratory droplets]. Foodborne exposure to this virus is not

known to be a route of transmission,” wrote Frank Yiannas, FDA deputy commissioner of the Office of Food Policy and Response, in Food Safety News.

For these reasons, according to Yiannas, the FDA does not anticipate “that food products would need to be recalled or withdrawn from the market for reasons related to the outbreak, even if a person who works in a human or animal food facility (e.g. a food packager) is confirmed to be positive for the COVID-19 virus.” On March 18, during an FDA-hosted call with the food industry community, Yiannas said that the U.S. food supply remains safe. There are no food shortages, and food manufacturing has not been disrupted.

The FDA also notes on its website that it may be possible for a person to get COVID-19 by touching a surface or object that has the virus on it and then touching their mouth, nose or possibly their eyes, but this is not thought to be the main way the virus spreads.

In general, the FDA suggests that “because of poor survivability of these coronaviruses on surfaces, there is likely very low risk of spread from food products or packaging that are shipped over a period of days or weeks at ambient, refrigerated or frozen temperatures. It is more likely that a person will be exposed by person-to-person transmission involving close contact with someone who is ill or shedding the virus.”

For those concerned about the possible contamination of food and food packaging, whether product was purchased from the convenience or grocery store, or delivered from a local restaurant, wash your hands with soap and water for at least 20 seconds when you return from the store and after removing packaging from food, per the CDC. IS PRODUCE SAFE? There are biological factors at play: COVID-19 could be present on food, whether from someone sneezing or coughing on it, for example, but the risk of infection from that product would be very low, and there has been no indication that food could be a source of infection, notes Dr. Ben Chapman, extension food safety specialist and associate professor at the University of North Carolina.

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Chapman explains in a video with “Science Comedian” Brian Malow, that COVID-19 wants to attach to and infect respiratory tract cells. So, if COVID-19 were present on food, as the food travels through the digestive system, there aren’t enough respiratory cells for the virus to attach itself to. As soon as the food hits the stomach, the protein coat on the virus will denature. In other words, be destroyed.

In respect to safe food-handling procedures, it is impossible to be 100% risk-free, but there are ways to help manage risk. Hilary Thesmar, PhD, RD, CFS, chief food and product safety officer, senior vice president, food safety, at FMI, wrote on the association’s blog that people could consider using hand sanitizer before and after selecting produce items and avoid touching multiple produce items when making selections.

“As per good food-handling practices in general, wash hands before food preparation or eating, avoid touching the face and consider supplementing handwashing with the use of hand sanitizer.

Just before use, rinse your produce under running water. There is no need to wash packaged fruits and vegetables labeled ‘ready-to-eat,’ ‘washed’ or ‘triple washed.’ Do not wash produce with soap, detergent or chlorine as these products are not intended for consumption,” she wrote.

WHAT ABOUT SURFACES? There have been questions around how long COVID-19 can survive on contaminated sur faces. A study published in the New England Journal of Medicine suggested that the virus can be detected in aerosols for up to three hours, as well as up to four hours on copper, 24 hours on cardboard and two to three days on plastic and stainless steel.

Dr. Brian A. Nummer, PhD, at the Utah State University Food Safety Extension, shared with members of the Conference for Food Protection that data from the study likely simulates worst case scenarios. “And, how exposure to sunlight, heat or cold can affect COVID-19 survival times is not known yet,” he said, adding that in contrast, a 2011 study found that “the H1N1 flu remained infectious for up to 48 hours after landing on CONVENIENCE.ORG

non-porous surfaces” such as stainless steel or plastic; however, most virus particles “were inactivated after nine hours. Both cold and flu viruses survive for much shorter times on porous surfaces such as cloth, paper or tissue, with very little infectious virus remaining after four hours.”

Virus survival also was raised in a CDC report on cruise ships, which suggested COVID-19 could be detectable on surfaces for at least 17 days. In an email to members of the Conference for Food Protection, Dr. Don Schaffner at Rutgers University clarified that the virus does not survive for 17 days: “What the report says is that nucleic acid from the virus is detectable after 17 days, which is not the same as an infectious virus particle,” he said.

The late Maya Angelou once said: “If you’re always trying to be normal, you will never know how amazing you can be.” In today’s context, while everyone is seeking a return to normal, it’s in that journey where we’re learning how amazing this industry and its people can be.

hris Blasinsky is the content C communications strategist at NACS. She can be reached at cblasinsky@convenience.org.

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Good Food FROM

Small Kitchens How to satisfy customers’ food cravings in limited kitchen space.

BY PAT PAPE

R

ichard Speckman knew his Mobil station on busy Santa Monica Boulevard in Los Angeles was a great location for selling fresh foods, but he was hampered by the store’s 1,500 square feet. So, in 2003, he added 500 square feet onto the building, creating 250 square feet for a kitchen and 250 more for a customer waiting area.

“My idea was to build a small working kitchen,” said Speckman, who saw nearby food providers offering sandwiches, burgers, chicken and Mexican food. “I thought, ‘I can sell a little bit of everything they sell but have it all in one place.’ We just ran with it, and it took off.”

Today, the Corner Deli and Grill, with more than 150 menu items, specializes in authentic Mexican food, with chips and salsa made from scratch daily, and has been touted on the Travel Channel and the front page of the Los Angeles Times. Customers place their order on the restaurant side of the store and pay on the c-store side. “They get a ticket, walk through the convenience store and maybe pick up some more stuff,” Speckman said. “They pay in one location. It’s kind of weird, but people get it.”

Apparently, a lot of people get it. The Corner Deli and Grill rang up more than $1 million in sales for 2019. “If you don’t have good food, you can’t be here [for] 17 years,” he said.

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“ Determine what you want to serve in the space you have, and then look for equipment that does multiple things.”

ROOM FOR FOOD Real estate is a challenge for every convenience store. If there were more room inside the store, there would be more shelves and more products for customers, and the kitchen would be adequate for turning out hot meals and yummy snacks.

Speckman believes that a productive c-store kitchen should have a flat grill, oven, charbroiler, fryer and sandwich station with a meat cutter.

“You can pretty much do the basics with that equipment,” he said.

His store has a beverage station featuring coffee and soda, plus refrigerators under the grill and a sandwich cart to store meats. “It’s still too small, but we’ve made it work,” he said. “We get a fresh food delivery five days a week. Because everything is made fresh daily, we don’t need a lot of food storage.”

GetGo, the Pittsburgh-based convenience chain owned by Giant Eagle Food Stores, has 265 locations, and 152 of those have full-service kitchens. To maximize space for both its madeto-order and grab-and-go food programs, GetGo avoids one-size-fits-all kitchen equipment, instead choosing tools that do double and triple duty, according to Jon Cox, senior director of merchandising for GetGo. “We want equipment that does multiple things, so we’re not locked into buying 15 pieces,” said Cox. “We have two Turbo Chefs, and the items we cook fit into those ovens. We use them to toast sandwiches and prepare appetizers. You can use

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them for chicken tenders, breakfast sandwiches and pizza. We have a blender that makes smoothies, iced coffees and milkshakes, and we use our panini press to do paninis, burritos, quesadillas and grilled cheese sandwiches.”

Cox admits that GetGo enjoys the advantages of being part of Giant Eagle and can utilize the grocery chain’s buying team. But he’s convinced other retailers can create similar foodservice programs if they do their homework.

“Start backward,” he advised. “Determine what you want to serve in the space you have, and then look for equipment that does multiple things. Do you want to be full service or grab and go? What equipment do you need based on what you want to sell?”

TURNKEY PROGRAMS Another foodservice option is teaming up with vendors offering proven, turnkey programs.

Ted Roccagli is director of partnerships and preferred vendor programs at Empire Petroleum Partners, a Dallas-based fuel distributor that owns Fast Market, a 70-store chain, and serves 1,600 additional gas stations in 32 states. Each week, Roccagli visits dealers throughout the network, suggesting ways to boost store profits beyond fuel sales. Many suggestions involve food.

“Most of our dealers don’t have much space, which is where the challenge comes in,” said Roccagli. “You’re talking about anywhere from 80 to 250 square feet. If we find something that works in our corporate stores, we have proof of concept, and we’ll go out and recommend those successes to the dealer side.”

One successful program is Krispy Krunchy, a Cajun-style fried chicken that gives stores a customizable, branded image. “They fit in a 100- to 150-square-foot space with their hot warmer case and fryers, and that little bit of space can really turn into a money maker,” he said. “Those kinds of programs can generate an average of about $25,000 a month in sales. It’s a nice ROI—after waste—of about 45%.”

Pizza is the No. 1 convenience-store food, he added, and he’s had big wins with both Hot Stuff Pizza from Orion Foods and Hunt Brothers Pizza. “We have some stores with more CONVENIENCE.ORG

space than others, and we can do a co-branded chicken and pizza option. That would be two separate companies that don’t mind being side by side, such as Chester Chicken or Krispy Krunchy on one side and Hot Stuff or Hunt Brothers on the other.”

Creating a pizza program isn’t complicated, according to Dee Cleveland, director of marketing at Hunt Brothers. “All that is needed is a three-compartment sink to get started,” she said.

“Our branded pizza shops can fit in as little as 59 square feet, and each one is engineered to be flexible and provide a turnkey pizza program.

Simplicity is the Hunt Brothers Pizza way of operating, and our program can be operated with a store’s existing labor.”

Empire Petroleum Partners constantly sources different companies as potential additions to its preferred vendor program. Currently, Empire is working with Sonic Corp., the American drive-in restaurant, which recently developed the Sonic Express program featuring a smaller menu and minimal space requirements.

“A lot of companies, such as Sonic, see this big push for food going on in c-stores, and they’re willing to downsize their traditional stores to get in on it,” Roccagli said.

SWEET TALKING Many food companies sell both food and equipment to restaurants and convenience stores.

One of those, Rich Products Corp. of Buffalo, New York, also provides culinary and marketing professionals to help retailers create a menu and incorporate existing equipment and tools into the

“ The perception of fresh and clean has to be the core of any foodservice program.”

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program. The company helps train employees to execute employee training, using the train-thetrainer method for multiple locations.

“For basic foodservice, you could have a cookie program, pizza program or small hot case program,” said Tom Michalewski, customer marketing manager for c-stores at Rich Products. “You can get into a basic cookie program for $355. The convection oven is $225, and the acrylic bakery case is $130. It complements your coffee program and lets you bundle coffee with a cookie or two.”

One moderately priced appliance Rich recommends is a self-serve beverage topping dispenser that uses a bag of non-dairy whipped topping that can sit on the counter without refrigeration.

“Consumers today are looking for customization and value-add, and this allows you to create more of a premium coffee program,” he said. “Push the handle, and the roller pushes the bag. It’s a giveaway, like creamer and sugar on the coffee bar.

The dispenser costs $75, and we’ve seen incremental beverage sales by offering this program.”

Rich is big on breakfast, the busiest foodservice daypart. “We have fully finished breads, rolls and flatbreads, but you have to have some prep space,” said Michalewski. “If you have enough people to run the store already, you can probably use them. Most of the time, you’ll be prepping during non-busy hours. Most stores will want to get their bakery case up and running by 4 a.m. That requires someone in the store prepping product or baking from midnight to 4 a.m., or it requires someone doing it in the afternoon the day before.

Most of our donuts are ready to finish with an icing or glaze. If you do that overnight, you’ll have fresh donuts in the morning.”

Verc Enterprises owns 31 stores in Massachusetts and Southern New Hampshire and relies on Dunkin’ to help satisfy customers’ pastry cravings. Fresh donuts are brought in daily from another location, and Dunkin’, which has its own designated space in the store, is responsible for the cases, displays and signage.

“We chose Dunkin’ because we understand the importance of coffee,” said Courtney Buckley, manager of training, development and fun, for the chain. “Customers need coffee in the morning and throughout the day, and having a good CONVENIENCE.ORG

brand of coffee will bring customers in to buy their morning cup of joe, as well as food, cigarettes and gas. Dunkin’ has even expanded into lunch offerings to satisfy a whole new segment.

It’s truly one-stop shopping, especially in the morning when people are in a rush.”

No matter the size of a convenience store’s kitchen—big or small—it must be part of an allaround clean store to attract customers.

“The perception of fresh and clean has to be the core of any foodservice program,” said Michalewski. “If someone walks into a place that’s not clean, it doesn’t matter how fresh the foodservice program is. But an operator doesn’t have to execute a made-from-scratch program to give the

perception of fresh. We encourage retailers—based on their labor constraints—to do a mix.”

“I tell everyone they’ve got to get into some type of food program, but they have to identify what will work,” Roccagli said. “You can make money in a small space. You just have to know what to put in there.” at Pape worked in the P 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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With beverage trends shifting quickly, retailers see opportunity with emerging products.

BY TERRI ALLAN

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arly this year, Kent Couch, owner of Stop & Go convenience store in Bend, Oregon, reset his beverage coolers to accommodate the wave of new brands taking the market by storm. “Hard seltzers have exploded,” the retailer explained, pointing to the likes of brands like White Claw, Truly and Bud Light. In fact, just a couple months into the reset, Couch confided, “I’m not sure I’ve given hard seltzers enough attention.”

Couch and other convenience retailers are finding that beverage trends are changing faster than ever, and it’s critical to be cognizant of any shifts. “You have to make adjustments and make them pretty quickly,” Couch said. “Today, it comes down to replace, replace, replace.”

There’s no question that hard seltzers, unheard of five years ago, are one of the hottest beverage segments today. And that momentum has spilled over into the c-store channel. According to Nielsen, for the 52 weeks that ended January 25, 2020, hard seltzer sales in c-stores surged 428% to $486.3 million from $92.1 million in the previous 52-week period.

“ We’re seeing increased overall consumption from seltzer drinkers and new consumers entering the beverage alcohol space.”

Sara Hillstrom, senior director, category development, at Anheuser-Busch, said the big gain in hard seltzer sales accounted for 43% of convenience store beer growth in 2019. And the segment is expected to see continued “impressive” growth this year, she noted, citing planned expanded distribution and strong consumer demand. (NACS currently characterizes all hard seltzers, regardless of their alcoholic beverage base, as flavored malt beverages within the beer category.)

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C-store operators and marketers report that unlike other beverage segments, hard seltzers field a broad consumer base. Matt Yorkston, secretary and treasurer at Yorkston Oil Co., with four Yorky’s Markets in Washington state, described his hard seltzer customers as “a mix of males and females” interested in low-carb, low-calorie and gluten-free drinks. “We’ve done really well with regular seltzer water, including brands like LaCroix and Polar, so I’m not surprised that a seltzer with 5% alcohol by volume (ABV) is also doing well,” Yorkston said.

Hard seltzers at Yorky’s have performed so well that the chain has ceded cooler space previously devoted to craft beers to the emerging segment.

Sean Bumgarner, vice president of Missouri’s Scrivener Oil Co., operator of Signal Food Stores, meanwhile, noted that his hard seltzer customers, who range from “white collar to blue collar,” often purchase beer or liquor as well. Indeed, the opportunity to appeal to a wide range of consumers drove Anheuser-Busch to launch a portfolio of hard seltzer brands, including the Bud Light, Natural Light and Social Club (launching this month) entries, Ramona Giderof, vice president of c-store sales, said.

While Mike’s Hard Beverage’s White Claw and Boston Beer Co.’s Truly brands dominate the hard seltzer segment, new malt-based entries include Anheuser-Busch’s Bud Light and Constellation Brands’ Corona hard seltzers, as well as wine- and liquor-based offerings from E. & J. Gallo Winery. Barefoot hard seltzer “allows the consumer who typically doesn’t drink malt-based products to enjoy a wine-based hard seltzer,” remarked Herb Smith, vice president, sales and customer development, at Gallo. Vodkabased High Noon Sun Sips, meanwhile, which boasts a modest 4.5% ABV, can be sold in c-stores that carry other liquor products, and even in Florida, due to its low proof, Smith said.

While hard seltzers are expected to be the rage this summer, there’s some debate over the segment’s long-term prognosis. “I believe they’re a fad,” said Signal Foods’ Bumgarner. “However, they may stay longer than the hard sodas from a few years ago.”

Yorkston and others disagree. “I think we’re just seeing the beginning,” the Washington retailer remarked. Constellation Brands is also bullish. “We definitely don’t see seltzers slowing down anytime soon,” commented Ann Legan, vice president of brand marketing for Corona.

“We’re seeing increased overall consumption from seltzer drinkers and new consumers entering the beverage alcohol space.”

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CSD ALTERNATIVES The non-alcoholic packaged beverage category is also home to emerging subsegments. Kombucha, the sparkling, fermented tea, is one example.

According to Nielsen, for the 52 weeks that ended January 25, 2020, kombucha sales in c-stores jumped 71% to $850,300 from $498,400 in the previous 52-week period. At Yorky’s, which has offered kombuchas for several years, consumers are typically “millennials, and those who are health conscious, work out and are concerned with what they put in their gut,” Yorkston said.

Vanessa Dew, co-founder of Health-Ade kombucha, described the brand’s c-store purchasers as “well-educated, diverse shoppers primarily between the ages of 25-34 and living in urban areas.”

Launched in c-stores three years ago, Health-Ade kombucha is currently available at 7-Eleven, Chevron Extra Mile, Jacksons Food, Circle K, VERC Enterprises and United Pacific stores, as well as a variety of individual bodegas in markets like New York City, Boston and Los Angeles, Dew noted.

While Dew acknowledged that the kombucha segment is still tiny in c-stores, she pointed to the growing opportunity for the products. “In c-stores, the better-for-you segment is small but growing fast,” the marketer said, driven by consumers who are replacing CSDs with products like kombucha.

“Right now, kombucha has a less than 1% household penetration in the convenience channel, compared to soda that has 35% household penetration,” Dew reported. “As consumers are switching from soda, I see a ton of runway in this channel as consumers look for a feel-good beverage that’s bubbly and tastes great.” Among the tactics Health-Ade uses to build awareness in c-stores are “tons of in-store samplings,” Dew said, as well as POS merchandising and digital coupons.

Stop & Go’s Couch was an early supporter of kombuchas, first stocking the product a dozen years ago.

“At first, I didn’t believe it had legs. I felt it was more of a hipster beverage, while our clientele is more blue collar,” the retailer recalled. “But word got out and it really took off.” Indeed, in addition to packaged kombucha, Stop & Go has offered kombucha on tap in recent years as part of its growler program.

Hard kombuchas may be the next wave. Ty Gilmore, president of Flying Embers, producer of a line of spiked kombuchas, said that with the “evolution of better-for-you food in c-stores, there’s so much opportunity for the same movement in beverages, including alcoholic beverages.”

Gilmore pointed to the strides being made by hard CONVENIENCE.ORG

“ Kombucha has a less than 1% household penetration in the convenience channel, compared to soda that has 35% household penetration.” seltzers as telling. “Hard kombucha plays in the same space,” he said.

Still, early adaptors of kombucha like Couch and Yorkston note that sales of the products have slowed in recent years. As such, both Yorky’s and Stop & Go have downsized their kombucha offerings. Couch called kombucha a “faddish” segment and said that CBD beverages are now the big trend at his store.

LEVERAGE THE POTENTIAL With beverage trends and consumer demands changing so quickly, marketers advise that retailers stay informed and be prepared to adapt. “The days of looking at the beer cold box for just malt beverages are over,” remarked Gallo’s Smith. “Best-in-class retailers are introducing a full seltzer door of products, giving consumers an easier way to shop and retailers a variety of price points and margin offerings.”

Flying Embers’ Gilmore pointed to the incremental purchase opportunities that products like kombuchas offer. “It would be wise for c-store operators to leverage space for better-for-you beverages,” the marketer said. Health-Ade’s Dew agreed, adding that emerging better-for-you beverages drive higher basket rings, a goal of every convenience retailer.

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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ICTURE ERFECT

Lance White Founder & CEO www.backtrackvideo.net

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Surveillance video aggregation helps retailers aid their communities.

THE IDEA BEHIND BACKTRACK VIDEO WAS INSPIRED BY AN UNUSUAL EVENT. CAN YOU SHARE WHAT THAT WAS? In October 2018, there was a high-profile kidnapping in northern Wisconsin. A young woman named Jayme Closs was violently abducted and then held in a remote cabin for 88 days. As a father of four, this event truly bothered me.

I kept thinking that the authorities would use video from private residences, convenience stores and other businesses to identify anyone in the area at the time, which would help track potential suspects.

Although private video was used, what I learned was that video accessibility is extremely fragmented and involves large amounts of time determining who might have a camera, if it was on, if video was written over, if the camera pointed the right direction and so on. A centralized and web-based tool for searching videos was non-existent, which made searches labor intensive and time consuming.

Eighteen months before the kidnapping, I had envisioned the concept of a centralized and searchable video database that leveraged and monetized privately owned cameras. Twenty-five years of experience in the camera and video space (including running our small factory with as many as 150+ people) had led to the idea. However, the real catalyst to move forward from

concept to development was the Jayme Closs incident. Within a couple months, that tragedy prompted me to create a detailed plan of what I envisioned, file a patent and hire a web developer to begin building our site.

Today, BackTrackVideo.net solves the problems of searchability and access to incident videos by providing an online platform to connect video buyers, such as law firms and insurance companies, with video sellers, such as convenience stores.

Additionally, police can access crime video as a community service.

SO, HOW DOES THIS KIND OF VIDEO AGGREGATION HELP RETAILERS? There are really two main benefits: One is monetization, and the other is cost cutting.

Every retailer has multiple cameras, and some of those cameras capture incidents regularly. There is a market for accident videos to determine liability and fair compensation, and this leads directly to the ability for retailers to monetize existing security cameras with the BackTrack Video program. Also, police regularly request videos from retailers, and this takes a manager’s time and has a real cost.

BackTrack Video can eliminate that cost by acting as the liaison between retailers and law enforcement every time requests for videos are made. This saves hours of managerial time each month at busy stores.

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This interview was brought to you by support from BackTrack Video, a NACS member.

setup and maintenance relief, and cost reductions via BackTrack Video’s police liaison program.

CAN YOU USE THE EXISTING SECURITY CAMERA ALREADY SET UP IN MOST STORES? Yes. We created a standardized platform that can accept video from any source.

When a customer (insurance company, law firm, etc.) identifies a video they want, they notify the retailer seller, who then determines availability of the video requested. When shared, the retailer simply drags and drops a video clip to the upload area and receives $250 per video immediately. As the platform develops, we will introduce solutions that automate the process of identification and exchange by deploying machine learning for “set-itand-forget-it” solutions.

To promote ease-of-use for brands with multiple locations, we also offer a multiuser portal that makes it quick and simple to manage all stores from one device.

IF A RETAILER DOESN’T HAVE CAMERAS IN THEIR STORE(S), CAN THEY STILL PARTICIPATE? Some retailers may be without cameras or may be hesitant to utilize their own cameras and time. In those cases, we will provide and install cameras at any location and pay each store a flat monthly “rental” fee for their space. Average monthly payments to each store range from $5-$20 and are dependent on traffic volume at each location. This can provide guaranteed monthly revenue, camera CONVENIENCE.ORG

HOW CAN RETAILERS SHOW THEIR CUSTOMERS THAT THEY ARE ACTIVELY WORKING WITH POLICE AND OTHERS TO KEEP THEIR COMMUNITIES SAFE? When police request videos, they are provided free of charge as a community service. BackTrack Video also provides free promotional materials so retailers can make customers aware of the community service and goodwill their stores demonstrate. The ability to provide and promote community safety and show real results might offer the largest value to stores.

BackTrack acts as the liaison between retailers and others when requests for videos are made, saving hours of managerial time.

When retailers sign up with BackTrack Video, they are signing up for a program that offers more than just connections between buyers and sellers. The program includes customized promotional materials highlighting a store’s participation and the results. Promotional materials include window flyers, education cards and brochures that let customers know their store’s story and success in aiding police and their communities.

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Idea labs let manufacturers and retailers collaborate, strategize and build a better convenience business.

BY PAT PAPE

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o business can be complacent in today’s retail environment with stiff competition, advanced technology and rapidly changing customer demands.

Many companies—and convenience chains—aren’t waiting for someone else to roll out new products or effective sales tools. Instead, they’re doing it themselves in their proprietary innovation labs where they create and collaborate with business partners.

In January, Wawa opened its first new store of the decade, which the Media, Pennsylvania-based company described as an “innovative food-focused destination for customers on the go.” Located in Philadelphia, the outlet is 3,000 square feet, or half the size of a standard store,

“Our goal is innovation and improvement through extensive knowledge-sharing.” and features a unique design with a pickup window. In addition to fresh foods, including Wawa’s famous hoagies, customers can enjoy a new line of expanded hot and cold express items and a self-serve hot tea bar. The store will help reduce its environmental impact by offering compostable straws, reusable bags and an option to purchase a reusable mug for beverages.

A year ago, Irving, Texas-based 7-Eleven launched the first of several fully operating lab stores to test new offerings. Situated near downtown Dallas, the store sells high-end wine, private-label cosmetics, growlers,

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smoothies, cold-pressed juices, novelty beverages and a wide range of coffee drinks prepared by baristas. Inside is a Laredo Taco Company taqueria, the Tex-Mex operation that 7-Eleven acquired when it purchased Stripes Convenience stores two years ago.

Meanwhile, Altoona, Pennsylvania-based Sheetz recently opened its first technology and innovation hub in Pittsburgh to develop and test offerings and equipment that may eventually appear in the chain’s 600-plus outlets. "Our mission at Sheetz is to create a business that puts the Sheetz, as we know it today, out of business,” said Emily Sheetz, assistant vice president of strategy, Sheetz. “This hub is an investment in the future.”

Not every retailer wants to or can invest in an innovative lab store to test out new ideas, so many retailers turn to their supplier partners for data and insights.

CUTTING EDGE Manufacturers—both startups and historical brands—want to meet customer needs by bringing new products to market, and they value input from retailers who deal directly with customers.

According to Mars Wrigley, about 20% of shoppers browse the candy aisle, but only 17% make a purchase. Officials believe those figures can be improved and will soon be collaborating with Des Moines, Iowa-based Kum & Go to make that happen.

This year Kum & Go became the first convenience chain to experience the new Mars Wrigley Innovative Merchandising Incubator in Hackettstown, New Jersey.

The goal: Develop a customized solution for retail challenges in the confectionary aisle.

The retailer met with Mars Wrigley to discuss unique concepts about traditional merchandising, improving the consumer experience and boosting sales. Before year-end, a customized solution will be tested and evaluated in-store. Kum & Go was chosen for the exercise after completing an application and agreeing CONVENIENCE.ORG

to implement Mars Wrigley’s resulting recommendations in select locations.

“This national program is aimed at helping retailers address their toughest challenges,” said Shaf Lalani, vice president, strategic demand leadership, at Mars Wrigley. “We will measure success by the positive results that stem from our recommendations, the impactful longterm relationships we form with retailers and the overall growth of the category.”

CHALLENGES AND CHANGES Like fingerprints, each lab is unique to the individual organization’s needs and goals.

In 2018, Hershey, the Pennsylvaniabased candy company, unveiled its Mobile Customer Insight Center, a 53-foot-long semitrailer containing a live candy aisle and classroom. For 49–50 weeks each year, the rolling lab travels to retailers who meet with Hershey’s subject matter experts, discussing ways to drive sales and profits.

“It’s more of a merchandising lab,” said Glenn Frazier, director of category management, Hershey. “We share insights we’ve acquired working with customers and information about how consumers shop. We’re trying to help customers find products easier. When you think about c-stores, the real objective is for customers to find what they’re looking for.”

Hershey has done financial analysis on chains that have attended a Mobile Customer Insight Center meeting. “When they [implement the recommendations], they drive sales,” Frazier said.

Five years ago, Rich Products opened its $18.5 million, 84,000-square-foot Innovation Center in Buffalo, New York.

Designed for training, product presentations and menu ideation, the center includes an industrial kitchen and culinary team, a video production studio and a conference room and learning lab for problem solving. A hospitality room provides guests with offices and lockers while visiting.

“We want to be an invaluable resource to our customers and help develop foodservice CONVENIENCE.ORG

“ When you think about c-stores, the real objective is for customers to find what they’re looking for.” solutions,” said Tom Michalewski, customer marketing manager, convenience, for Rich Products.

“Each customer is unique, so flexibility is key,” he said. “The center allows us to create an environment that is specific to the needs of the retailer.”

In September 2019, Core-Mark began construction on its 14,000-square-foot Center of Excellence between Dallas and Fort Worth. Featuring an interactive test kitchen, plus technology for virtual product placement and frictionless checkout, the facility gives customers and staffers a place to experiment and discuss business goals. “It’s a dynamic collaboration space where leaders can inspire, educate and challenge visitors to think beyond traditional business practices,” said Amanda Sulc, director of the center.

Sulc expects retailers who experience the center to “walk away with actionable initiatives that they can implement right away, whether it be trending products based on data, insights from our category management team, the latest from our fresh food program or optimizing their assortment based on meeting margin drivers.”

In Atlanta, Coca-Cola has introduced the KOlab, a high-tech facility where retailers draw up business plans, demo merchandising setups and visualize products in their stores in a simulated setting. “KOlab is not an R&D lab, which makes it different from other types of innovation centers,” said Robin Perry,

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director, Coca-Cola Collaboration Centers. “We offer trusted beverage and industry expertise that is primarily focused on collaborative, customerfocused solutions.”

Perry wants the lab experience to leave retailers “feeling inspired and empowered to improve the consumer experience,” she said. “When we help increase revenue for our customers and create value for them by leveraging our size, scale, knowledge and insights, we view that as success.”

Last year in Purchase, New York, PepsiCo opened its Foodservice Digital Lab to better prepare partners to communicate digitally. The lab teaches retailers how to identify and use technology solutions, such as consumers’ digital habits, digital business tools and online ordering and delivery platforms.

Participants are exposed to leading-edge technology, such as voice, augmented reality and machine learning.

It’s Not All F&B

Source University, a learning lab in Arlington, Texas, is the training facility for Source North America Corp.

Designed to enhance and update operator education, the 2,800-square-foot university features a permanent display of fuel storage, monitoring, dispensing and POS equipment in both standard and California configurations.

According to Joseph O’Brien, vice president of marketing, Source North America, it is one of the few places where convenience and fuel retailers can have a hands-on encounter with underground fueling equipment. The facility includes a classroom where Source conducts seminars and holds certification and compliance training.

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“The challenge with adjusting to the digital revolution is that changes are ongoing,” said Gilbertson Cuffy, head of PepsiCo Foodservice Digital Lab. “PepsiCo recognizes this and plans to continue to be on the forefront of consumer evolution in the foodservice industry with innovation and knowledge.”

SCHEDULE A VISIT Retailers interested in experiencing a supplier’s lab should contact their designated representative for details and availability.

“Before any visit, establish service-level agreements to clearly and concisely define what targets and thresholds are to be used to define success,” said Sulc. “Quantitative metrics can consist of same-store sales, sales revenue, repeat customer visits or unique customer visits. Depending on the client’s goals and objectives, the different key performance indicators will vary for each experience.”

Whatever they’re called—labs, hubs, incubators—these facilities are expensive to develop and operate. But companies that have them believe the investment will pay off.

“The foodservice marketplace is becoming more competitive each day, and a lab space is a necessity to be competitive,” said Michalewski. “These centers allow retailers and manufacturers to come together and discover solutions to industry challenges and consumer needs.”

“Thankfully, retailers have options that don’t always require them to invest in their own full-blown labs,” said Perry.

“We look for every opportunity to work with our customers as trusted partners to uncover ideas to grow their 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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New coffee options, equipment and flavor trends are percolating.

By Pat Pape 56

| MAY 2020

CONVENIENCE.ORG

M

ichael Eskew’s job requires him to travel around the Southeastern U.S. An ardent coffee lover and self-confessed “caffeine freak,” Eskew enjoys several cups every day.

On occasions when Eskew craved a special cup of java, he’d visit an upscale coffee shop where he loved the menu items but loathed the prices.

Earlier this year, several c-stores along his travel route began offering cups of coffee that rival those produced in boutique coffee shops.

“A couple of c-stores have fancy, new equipment that lets me make coffee myself—the same drinks I used to buy at a coffee house,” he said. “They’re premium drinks, taste great, and the price is right.”

NEW BREW The beverage market is constantly changing—in the cooler and at the coffee bar. The proliferation of upscale coffee shops has compelled coffee retailers of all types to up their game. Thankfully, the advanced technology available in today’s coffee equipment makes superior beverages possible, including effervescent nitro coffee.

“Today’s nitro coffee equipment uses compressed air,” said Bob Pierce, senior vice president, North America for Bunn, the equipment manufacturer.

“Bunn has developed an air filtration process that takes surrounding air, cleans it by removing particulates and moisture and adds it to the drink at the point of dispense. This results in a creamier drink with a rich head and cascading micro bubbles within the beverage.”

“There is a bit of a capital investment involved, but from an operational standpoint, it’s easy to execute once you make that investment,” said Mark DiDomenico, director of customer solutions for Datassential. “And from the consumers’ perspective, [nitro coffee] is a better tasting product. It has a pleasant mouth feel. It’s higher in caffeine, but it’s lower in acidity, so it’s better for your stomach.

Think about the specialty coffee beverages that came before. You needed a barista on staff to create those.

This one requires no added labor or time. It’s kind of a magic product.”

Today’s tech-savvy equipment also can create a more pleasant cup of cold brew, which most coffee aficionados prefer to traditional iced coffee, Pierce said.

When is the best time to upgrade existing coffee equipment, perhaps replacing it with CONVENIENCE.ORG

improved technology? “When your service costs begin to exceed the cost of a new piece of equipment that can appreciate over time, it’s time to change,” Pierce said. “And be sure only certified maintenance technicians work on your equipment, or you could unintentionally void the manufacturer’s warranty.”

FLAVORS AND SWEETENERS Flavored coffee has been around “since the ’70s and ’80s,” said Spencer Turer, vice president of Coffee Enterprises, a provider of consulting and technical services to the coffee and tea industry.

“I remember when almond coffee was slivered almonds mixed with whole bean coffee, and cinnamon coffee was powdered cinnamon on top of the whole bean.”

Today the coffee industry relies on natural and artificial ingredients to f lavor coffee beans before they’re brewed. Or, customers can enhance their own beverages with a wide range of f lavor shots or syrups.

“I look at coffee through a culinary lens,” Turer said. “We combine foods and flavors that complement each other and say, ‘this is new and unique because maybe you haven’t seen it before.’ Any time you put a flavor into coffee, it’s guaranteed it has been done before, but maybe not with same quality or with the same marketing and merchandising.”

“ If you have a good hot coffee product, you have permission to offer a ready-to-drink coffee product.”

Consumers like sweet products. But at the same time, they’re demanding drinks with less sugar, less sweetener and less artificial sweetener, according to Glenn Hodess, manager of national sales/export development for Zavida Coffee, a global coffee roaster and flavor house based in Toronto.

MAY 2020 |

57

MILKING IT

Many coffee drinkers enjoy adding milk to their coffee; the fats in milk improve the “mouth feel” of the drink by making it thicker and smoother. “Some of the more interesting stuff we’re seeing is around the milk,” said Mark DiDomenico of Dataessential. “Plant-based is the rage across almost every category, and one of the fastest growing things is oat milk.

The plant-based milk craze started with soy about 10 years ago. Then we had the influx of almond milk, and now we're seeing oat milk on menus.”

Sales of nondairy milks—oat, rice, almond and soy—have risen 23% in the past four years, according to Nielsen.

When compared to dairy, oat milk is considered better for the planet in terms of greenhouse emissions and land use, and production requires significantly less water than rice or almond milks, all attributes that millennials and Gen Z appreciate.

But soon, oat milk may no longer be considered unique. In January, Starbucks announced it will bring oat milk to 1,300 Midwest locations, and this spring, Dunkin’ will offer a new oat milk latte—hot or iced— throughout its U.S. chain. Customers also can order oat milk in Dunkin’s hot and iced coffee, cold brew and frozen beverages.

Zavida produces a flavor shot program featuring 34 flavors with natural or organic sweeteners for hot and cold beverages. The shots come in small bottles that fit on racks that are either six inches or eight inches wide to save space on the coffee bar.

“People say this is a fad, but consumers old and young are into new trends and taste profiles,” said Hodess. “And it’s going to get bigger.

Everything’s flavored, from carbonated water right up to Red Bull. And everyone wants their own taste profile. Consumers are bored with regular products, and they want to enhance them with flavors.”

Flavored coffee is one way of recruiting new coffee drinkers, said Turer. “Today we know flavored coffee is a market segment unto itself. The quality of the flavor, the trueness of the taste and the aroma attributes have to be there for the consumer to say, ‘this tastes really good, and I want to keep drinking it.’ And that’s the ultimate goal. To get the customer to enjoy it and come back and purchase it a second, third and fourth time,” he said.

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READY TO DRINK Ready-to-drink coffees are gaining a following.

According to Nielsen’s September 2019 Insights on the U.S. grocery market, 158 new RTD coffees had rolled out in the past year, and more than half of those were cold brew.

In February, Starbucks and PepsiCo launched Starbucks Nitro Cold Brew, an RTD developed by the North American Coffee Partnership (NACP), an organization the two companies founded in 1994. While RTD nitro cold brew isn’t a new product, Starbucks is one of the few companies to bring it to scale.

“If you have a good hot coffee product, you have permission to offer an RTD coffee product,” said Turer. “The quality and brand image can validate everything else you’re selling.”

RTD coffee innovation also includes a few alcohol offerings. Last year, Pabst Blue Ribbon introduced a hard coffee with “no beer taste” that’s made from a malt beverage, sugar, milk and vanilla. In January, Jägermeister launched a cold brew RTD that blends Arabica coffee and cacao with the flavor of Jägermeister, the German digestif made with 56 herbs and spices. More liqueur than coffee, each shot provides about 10% of the caffeine found in an average cup of joe.

Other manufacturers say more alcohol-plus-java products are in the pipeline.

SIGN ME UP Every retailer wants to move more coffee and increase store traffic. Fast-casual Panera Bread in February announced that for $8.99 monthly, loyalty members can participate in a coffee subscription plan that provides them with unlimited hot or iced coffee—or tea—in any size cup at any Panera location.

Before rolling out the offer, Panera tested the program at 150 stores in four markets during a three-month period. The response was a 200% jump in frequency of visits and a 70% increase in customers ordering food with coffee. Plus, the trial generated a 90% to 95% renewal rate for subscription members.

“This is marketing genius,” said Turer.

“Everyone is talking about this, and it’s all over social media. But we’ve been doing things like this in the coffee industry for generations. It’s CONVENIENCE.ORG

just an extension of the old travel mug program.

The first four fills you pay for, and the fifth fill is free. How is this different from a company selling you a gift card? They get the money up front, and the gift card may or may not be redeemed.”

Despite Panera’s initial success, a coffee subscription service is not a guaranteed win. Last year, Burger King tried a similar service that cost patrons $5 a month and provided one small, hot coffee per day. But the chain dropped the service a few months after it launched.

Coffee drinkers love their coffee. No matter what is on the coffee bar, they want to know that their preferred retailer takes their coffee as seriously as they do.

“When you’re at home, you’d never cook soup in a dirty pot,” said Turer. “When you’re at a store, you want to make sure they’re making your coffee in a clean pot. You want to be sure they

“ From the consumers’ perspective, [nitro coffee] is a better tasting product.” measure out everything correctly. The equipment must be clean and well-maintained, and the store must be in stock in everything and ready to go.

Coffee must be done in the right way. It’s not a beverage of chance.”

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.

A challenge worth pursuing.

NACS Leadership for Success offers rising industry leaders an invaluable experience for growing their skills and becoming stronger performers in their companies and in their careers.

Own your future.

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4/9/2020 3:38:09 PM

MAY 2020 |

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Convenience Cares with

NACS Foundation We’re uniting the convenience and fuel retailing industry under the strong foundation of caring for the communities we serve. Together, we’ll amplify our industry’s power to positively impact the lives of individuals and families of all ages in neighborhoods of all sizes.

Our industry serves 165 million American customers daily, and the NACS Foundation aligns and mobilizes our industry around the areas where NACS members are most engaged and can make the biggest difference for our customers. We convene partners, marshal resources, organize national efforts and spark initiatives that will increase the impact of our industry’s collective charitable efforts.

NACS FOUNDATION SIGNATURE PROGRAMS

Each of our five signature programs aims to increase the reach and resonance of NACS members' charitable efforts by shining a spotlight on them—celebrating the people and places they serve through powerful and engaging storytelling.

We’re an industry with heart, and we beat stronger together. NACS Foundation is looking to partner with convenience and fuel retailers and suppliers, non-profits and the general public to launch these programs and signature events.

Response Relief Serving First Responders Honors the heroes and first responders who help our communities when disaster strikes.

Neighborhood Nourish Caring for Neighbors Fights hunger by helping people experiencing homelessness or food insecurity.

Future Fund Propelling Tomorrow's Leaders Invests in convenience store member employees and their children through scholarship and internship programs.

@TheNACSFoundation

@NACS_Foundation

Tomorrow Thrives Supporting Healthy Kids Supports children and families affected by illness and encourages kids of all ages to live active lifestyles.

Community Cleanup Keeping Our Towns Beautiful Helps beautify communities while raising awareness about environmental issues.

conveniencecares.org

Contact NACS Foundation Executive Director Stephanie Sikorski to join the NACS Foundation in our mission: ssikorski@convenience.org.

24/7 Day: United We Serve

Coming together to honor those on the front lines of our communities When our communities need us most, the convenience industry is always there. Now more than ever, we must come together to support those who work around the clock to take care of our communities.

24/7 Day, hosted by the NACS Foundation, along with participating convenience industry retailers, suppliers and partners, in support of the American Red Cross, is a day to celebrate and honor the incredible lifesaving work being done every day by those on the front lines of our communities across America and beyond, including doctors, nurses, EMTs, fire and police, first responders, service members and other local heroes.

Learn more about how your company can amplify the reach and impact of its positive charitable efforts by taking part in this year’s 24/7 Day held on July 24, 2020.

Visit www.247day.org to learn more.

The American Red Cross name, emblem and copyrighted materials are being used with its permission, which in no way constitutes an endorsement, express or implied, of any product, service, company, opinion or political position.

The American Red Cross logo is a registered trademark owned by The American National Red Cross. Should you require a receipt, please donate by calling 1-800-RED CROSS (1-800-733-2767), or give online at redcross.org

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GAS STATION GOURMET

Fine Dining at the BP +add food: The New Convenience is an upstart bowl concept with a global flavor.

BY AL HEBERT

I

n a BP gas station on busy Granada Boulevard in the small town of Ormond Beach, Florida, +add food is an unexpected find. It’s an upscale bowl concept with polished concrete floors and butcher block tables

NEW REALITY C-stores are facing new business challenges since the COVID-19 outbreak. “Things have changed dramatically. We started out strong with numbers growing. Within less than five days of the [business] closures, we saw our numbers plummet,” said Sara Afshari, +add food co-owner.

The c-store switched to carry-out and delivery. “Health-care workers, doctors and nurses will be the reason we survive.

The frontline medical workers are gravitating to what we do. They want to eat healthy,” she said. In early April, +add food was sending 60 to 80 bowls a day to a nearby hospital.

Afshari feels the business will make it, but it won’t be easy. “I’m down to three employees,” she said.

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for lingering over made-from-scratch bowls brimming with fresh ingredients like garbanzo salad, kale slaw, avocado scallion mash and apple curry vinaigrette.

There’s kombucha on tap sourced from a North Florida family-owned company, grab-and-go bowls and pita, “thoughtful” packaged snacks and a cold case stocked with an extensive offer of local craft beers, wine and other refreshing beverages. +add food was launched by three young professionals who’d worked together at a high-end restaurant in Tampa and dreamed of striking out on their own. The trio moved to Ormond Beach and scored a high-visibility location—a BP station/ convenience store that was closing its doors. The idea was to take this small store and offer a place for people to feel at home.

“We wanted to treat this like it was our awesome restaurant, and we weren’t going to be lazy about this,” Sara Afshari, co-owner, said. “At first I thought ‘how will people get past the fact we’re in a gas station?’ If you have really good food with people who care about the food and nurture it, then people will come,” she said.

CONVENIENCE.ORG

Nadia Zomorodian

At +add food, the focus is on healthy bowl meals. Customers pick a base of rice or grains and choose their proteins and veggies. Here, Malana Bumb, general manager, prepares an order.

What's missing from our roadways are stores with character, personality and flavors.

Top L to R: Jordeon Mecier, chef/owner; Sara Afshari, owner; Stephanie Taylor, chef/partner; Malana Bumb, general manager.

Bottom: Mecier and Afshari help educate customers about the food.

Ultimately, the partners felt good about the location. “Rather than taking a giant risk renting for $30 or $40 a square foot, we took this chance in a gas station.”

FOOD 101 The marketing is all grassroots. Afshari tells people, “I know we’re in the BP— it’s weird, but stop in. People come in and wonder, ‘How am I eating this in a gas station?’” she said. Because of that, first-time customers often don’t know what to order, so Afshari helps them decide. “It’s important to educate people about your food,” she said.

“We are all fine-dining chefs and hospitality workers” from various backgrounds, she explains. “You have to be passionate about food. You have to want to taste all the different things and explain it to people so they can understand the taste of it.”

The Keto and Persian Bowls are customer favorites. “Keto is made for people on a low-carb diet. It gives them something different with lots of flavor so they can follow the diet in a delicious way,” Afshari explained. The bowl is a combination of rosemary thyme mushrooms, smoked pork, avocado scallion mash, Kalamata olives, Chimichurri with cauliflower broccoli rice. “We have seasonings here that are different. You don’t expect CONVENIENCE.ORG

saffron in a c-store. We marinate chicken in onion water; it’s a Middle Eastern trick,” she said.

HEALTHY FOOD TASTES GREAT There’s a hospital around the corner from the store, and before there was any marketing for this unique gas station, doctors and nurses discovered the food and became regular customers.

The c-store now offers Monday through Saturday delivery with a contactless payment option, or customers can pick up their orders to go. In addition to individual-size bowls, the menu includes family-size meals. Chefs are baking up dark chocolate chip banana bread and empanadas, too.

Not only is the food at +add food healthy, but nothing here harms the environment.

Afshari said, “All of our containers are compostable as we take the environmental impact of our business seriously.” +add food is part of the landscape of the town. “What’s missing from our roadways are stores with character, personality and flavors. If there was a +add food at every corner it would give big chains some competition. We add character to neighborhoods,” Afshari said.

“You’ll never walk into a big box chain and go, ‘Wow what did I just have?’

We’re anything but bland!”

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.

MAY 2020 |

63

GLOBAL TRENDS

Containment in Hong Kong

An interview with Richard Yeung, CEO at Circle K Hong Kong.

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lot broader and a lot bigger. All retailers need to be prepared, and it makes sense for them to do some stress tests to prepare for the coming six months.”

STRESS TESTS From an operational perspective, Yeung believes in stress testing retail businesses to ensure they will be able to weather any storm.

“The first priority is obviously business continuity; make sure that the stores, the supply chains, the logistics and the vendor community are still able to operate. Then, carry out some financial stress tests. What if my sales drop by 10%, 20% or even 30%? What will my P&L and, more importantly, my operating cash flow look like then? Advise all to do CONVENIENCE.ORG

iStock.com/estherpoon

R

ichard Yeung is chief executive officer at Circle K in Hong Kong and the 2018 NACS Asian Convenience Retailer of the Year. He was especially keen to take part in a series of global interviews to convey learnings from the experiences and lessons his business has already had in the current crisis caused by the coronavirus.

Yeung shared that “I think it will help a lot of retailers if you can write up the facts and give them a good warning so that they can be as well prepared as possible to face what has occurred here, what will be coming and the aftermath of economic shocks. The economic shock is going to be bigger than the 2008 financial crisis. This is a

iStock.com/anouchka

what they can now in order to weather the monster storm that is coming.”

Yeung emphasizes that this crisis has to be dealt with in a comprehensive way with a partnership approach that coordinates the actions of individuals, broader civic society, businesses and governments on all levels.

“From our experience in Asia, this crisis has to be dealt with quite seriously, on all levels; the government, the society, the organizations, the families and at an individual level—all have to simultaneously take precautions to deal with this epidemic.

“The most important thing is to ensure that you, your family and your company teams are all taking the most rigorous precautions to avoid infection. In fact, we have set zero infection as our goal.

Always keep your hands clean, try not to touch a lot of the high-risk surfaces, never rub the face and avoid congested areas and avoid eating/drinking in congested areas. And if in congested areas, or any public transits (or even riding in a taxi), do wear a mask (as this virus can be contagious even before an infected person develops any symptoms).”

Yeung advised that executives need to acquaint themselves with the best research from experts to better understand the trends and implications for future business activity.

Yeung’s own predictions for the level of disruption coming make grim reading.

“From a business point of view, this crisis and the resulting lockdown or ‘shelterin-place’ will definitely create a lot of disruptions. In Asia, almost all sectors are affected, and some are put to a standstill. The airline, travel industry, tourism, restaurant, retail (except supermarket, drugstores and online) are facing disruptions they have never faced before. Most of the retailers of discretionary products (such as fashion, footwear, durables) are CONVENIENCE.ORG

NACS GLOBAL CALENDAR OCTOBER 11-14, 2020 NACS Show Las Vegas, Nevada www.nacsshow.com

MARCH 2-4, 2021

NACS Convenience Summit Asia Bangkok, Thailand

JUNE 1-3, 2021

NACS Convenience Summit Europe Dublin, Ireland

facing sales drops of 50% to 70%. And this is not a matter of weeks. The most optimistic outlook is that we have to deal with this problem for months ahead.

“In Hong Kong, even though we are in the containment stage (we have not gone into any lockdown), we are still experiencing these sort of numbers. So, retailers in Europe have to be prepared

FELT AROUND THE WORLD For more on how the international convenience retailing community is navigating the pandemic in their countries as well as impacts on operations, visit www.globalconveniencestorefocus.co.uk for interviews with: • Brian Donaldson, CEO of Maxol, talks about how Ireland’s two halves—the Republic of Ireland and Northern Ireland—have responded to the outbreak and how retailer operations have fared as a result.

• Christian Warning, NACS regional representative for Germanspeaking markets, shares his experiences in Germany and impacts on supply chain, digital transformation and the future of German c-store retailing in light of current events.

• Chris Morley, managing director, Kantar Worldpanel UK & IRE, USA at Kantar, discusses why retailers’ restrictions on certain categories to several purchases per shopper and the government’s pleas to not buy more than needed, have not worked well so far.

MAY 2020 |

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GLOBAL TRENDS

A lot of weaker retailers will not be able to survive.

that even after the lockdown ends, there is still this meltdown impact that has to be dealt with. It is really unheard of. A lot of weaker retailers will not be able to survive.”

THE IMPACT ON CIRCLE K BUSINESS “In Hong Kong, because of the drastic drop in working consumers and student traffic, the traffic into our stores is down about 35% in the commerce areas and about 8% in the residential areas. We are kind of lucky to experience what we consider as a mild impact (when compared to our peers). As we cannot control the traffic, we just try to work on increasing

the basket size. Also, another learning is that the loyal customers in the CRM program (OK Stamp) also cushion us against a big fall, and the sales to this segment are holding up. So, this also helps us.

“In a nutshell, the economic shock will be drastic, and all retailers will have to be very well prepared to deal with it with fast and quick actions. Ensure that the viability of your company is not going to be affected, although there will be a hit in the profitability.”

This March interview was reprinted (with few modifications) with permission from Global C-Store Focus, the monthly newsletter of Insight Research, a NACS partner in Europe (www.globalconveniencestorefocus.co.uk).

Coronavirus Webinars

On-demand access to help you navigate new regulations and critical government assistance programs during the pandemic. convenience.org/LearningOnDemand COVIDwebinars_MAY_LB_half.indd Half Horz.indd 1 1 | MAY 2020

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4/15/2020 4/14/20 9:57:37 12:41 AMPM CONVENIENCE.ORG

POWERFUL BRAND. HOMETOWN FEEL.

RUNNING YOUR BUSINESS YOUR WAY. POWERED LOCALLY.

We know that the true power behind the Cenex® brand comes from our locally-owned retailers – valued partners who are invested in their customers and community. That’s why we’re committed to your success and helping you build your business from the moment you become a Cenex® retailer.

From flexible brand conversion and marketing, to convenient payment processing and training programs, we can provide your business with the support it needs to help you grow.

© 2020 CHS Inc.

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

CATEGORY CLOSE-UP / CANDY

Sweet Reign

Candy continues to perform well at convenience stores.

BY SARAH HAMAKER

JUST THE FACTS The candy category continues to do well, bringing in $73,655 sales per store in 2019 and maintaining strong margins of 49.91%.

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| MAY 2020

CANDY BY CONVENIENCE “Sweet Insights” found that the top four reasons people purchase everyday sweets in a store other than a supermarket include better variety, lower prices, convenience and impulse buy. “When it comes to purchasing confections, shoppers have three key motivators— satisfying a craving, creating a fun experience and great taste,” said Jade Reddington, director of category management for candy company Ferrara.

“We see c-stores honing in on these motivators through the variety of selection and innovation offered in their stores.”

“Consumers today are reaching more and more for confections and see it as a moment of permissible indulgence,” added Jim Dodge, vice president convenience at Mars Wrigley U.S. “When consumers enter a convenience store, they are looking for just that—convenience and to satisfy their needs quickly.”

Because of these factors, retailers consider candy to be an integral part of their in-store mix. “Candy is a good category for our store to have because it’s one of the last remaining profitable categories,” said Aaron A., manager of Pilot Mountain Grocery in Pilot, Virginia. “While confectionery sales have been flat lately, we still see candy as a viable category.”

CANDY BY TRENDS The chocolate subcategory provides the largest percentage of sales for the category at 45.6%, according to preliminary NACS State of the Industry data from 2019. The second-largest contributor was non-chocolate bars (20.4%), followed by CONVENIENCE.ORG

iStock.com/redstallion

F

rom chocolate bars to sour gummies, confectionery sales rake in more than $37 billion annually, according to the National Confectioners Association’s recent research report, “Sweet Insights: State of Treating 2020.”

Consumers continue to count on convenience stores as a source for their sweet indulgences. “The convenience channel was No. 2 in terms of market share for candy (35.7%), just slightly behind only grocery (37.3%) in 2018,” said Jayme Gough, analyst for NACS. The category continues to do well, with 3.17% of in-store sales, according to preliminary data from the NACS State of the Industry Report of 2019 Data, and sales held flat year-over-year.

At The Pop Stop, a drive-thru-only convenience store in Amarillo, Texas, candy is thriving. “It’s a great category for us, and people are snapping up treats for themselves all the time,” said owner Bobbie Jo Krutsch.

Industry Sales % of In-Store Sales 2018

2019

3.10% 3.17%

% of Stores Selling

Avg. Sales/Store 2018

2018

2019

2019

99.8% 99.8%

$70,518 $73,655

iStock.com/Marat Musabirov

Source: NACS State of the Industry Report of 2019 Data

gum (14.8%), bagged/repackaged peg (10.5%), rolls/mints/drops (5.0%) and novelties/seasonal (1.4%).

At Pilot Mountain Grocery, the triedand-true candies still sell the best. “We’ll get a little pop for the new flavor or design, but then people revert back to their old favorites,” Aaron said.

That’s what The Pop Stop has found, too. “Our customers like to try new items, but we still sell a lot of the old standbys as well,” Krutsch said.

Candy innovations that combine different types of chocolate treats into one have been a boon for retailers, as well as mixing different textures, such as creamy and crunchy. “Flavor profiles like sour and fiery have sprung up, as well as adding a variety of nut butters other than peanut butter,” Gough said.

“Millennial consumers especially love mashups, and combining these flavor profiles has provided growth to the chocolate category,” said Glenn Frazier, Hershey’s director of category management for convenience stores.

“A key industry trend we’ve seen over the past year—and will continue to see—is the shift toward exciting flavor selections, including duo mashups with new and existing flavors,” said Brandi Unchester, marketing director for confections and seasonals for Promotion In Motion. “There’s also an obvious appetite for consumers to enjoy a familiar snack with a new twist.”

“People will go for the newest thing in candy, and that always gives us a little CONVENIENCE.ORG

uptick in sales,” said Stuart Morton, owner of Allards Stage Stop in Saint Ignatius, Montana. “More of the popular lines have come out with multiple versions, which can help sales, too.”

SEASONAL SPIKES Candy sales tend to spike four times annually: Valentine’s Day, Easter, Halloween and the winter holidays. “More than 60% of the category’s sales come during those four periods, with … 16% of sales generated by seasonally coded items ... unique to the season because of colors, shapes, packaging or flavors,” reported “Sweet Insights.”

“Anything seasonal flies off the shelf in candy,” Aaron agreed. “We have great success with seasonal candy items.”

Retailers can capitalize on these holidays by bringing in seasonal flavors and varieties in attractive displays out of the candy aisle. “Retailers can also use one larger primary display around the holidays and secondary aisle displays that tie

Candy sales tend to spike four times annually: Valentine’s Day, Easter, Halloween and the winter holidays.

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 walkthough.

MAY 2020 |

69

CATEGORY CLOSE-UP / CANDY

PER STORE, PER MONTH SALES

2017

2018

$6,449

$6,500

2019

$6,428 $6,336

$6,300

$6,133

$6,100 $5,900 $5,700 $5,500 $5,300 $5,100 $4,900 JAN

FEB

MAR

APR

MAY

JUN

JUL

AUG

SEP

OCT

NOV

DEC

Flavor profiles like sour and fiery have sprung up, as well as adding a variety of nut butters other than peanut butter.

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| MAY 2020

into the holiday theme to spur even more sales,” Gough said.

Mars Wrigley encourages retailers to think outside the four core holidays with targeted promotions and displays during other times of the year. For example, the company offers its “Red, White & Blue” products during the summer. “We want to meet consumer need in the moments that matter to them with a variety of seasonal products,” Dodge said.

Novelty candy selections for different holidays, plus movie tie-in candies, can entice parents and children to the category as well. At The Pop Stop, movie tie-ins for films aimed at kids do extremely well.

“Those types of themed candy boost interest and sales in the category,” Krutsch said.

However, to take full advantage of seasonal offerings, “make sure you display the products early, as consumers react positively to seasonal shapes and colors,” Frazier said.

PERFECT PLACEMENT As many studies have shown, most confectionery purchases are made at the shelf. “We know that consumers have brands that they love and look for at shelf, but thoughtfulness in shelving can drive trial in the category,” said Reddington.

“Retailers can also encourage purchases through a variety of consumer touchpoints, such as secondary displays, signage and cross-promotions.”

Allards Stage Stop put the candy aisle directly across from the register and as the main thoroughfare to soft drinks.

“That placement helps to drive sales without a lot of extra effort on our part,” Morton said.

Because confectionery isn’t a planned purchase, retailers can leverage endcaps to encourage shoppers to enter the confectionery aisle. “They should also leverage highly visible destinations throughout the store to encourage consumers to CONVENIENCE.ORG

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Source: CSX; csxllc.com

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CATEGORY CLOSE-UP / CANDY

Subcategory Performance % of Sales

CANDY

Avg. Sales/Store

Avg. GP$/Store

Gross Margin %

2018

2019

2018

2019

2018

2019

2018

2019

Chocolate Bars/Packs

46.0%

45.6%

$32,444

$33,567

$181,753

$194,131

46.68%

48.19%

Non-Chocolate Bars/Packs

20.2%

20.4%

$14,222

$15,031

$88,751

$97,521

52.01%

54.07%

Gum

15.7%

14.8%

$11,045

$10,886

$65,113

$65,526

49.13%

50.16%

Bagged or Repacked Peg Candy

9.5%

10.5%

$6,707

$7,720

$38,799

$44,404

48.21%

47.93%

Candy Rolls, Mints, Drops

4.8%

5.0%

$3,360

$3,710

$20,416

$27,317

50.63%

61.35%

Change Makers/ Penny Counter Goods

2.3%

2.1%

$1,612

$1,576

$12,010

$11,716

62.09%

61.94%

Novelties/Seasonal

1.4%

1.4%

$975

$1,031

$5,394

$6,002

46.12%

48.53%

Bulk Candy

0.2%

0.2%

$153

$135

$972

$636

52.96%

39.31%

100.0%

100.0%

$70,518

$73,655

$34,284

$36,768

48.61%

49.91%

CANDY TOTAL

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

Source: NACS State of the Industry Report of 2019 Data

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

Visit her online at www.sarahhamaker.com.

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| MAY 2020

treat themselves during their shopping journey,” Dodge said.

Speedy G’s Convenience Stores puts candy promotions closer to the register, which helps with sales. “That’s about all we do because the category sells itself,” said Julie Gilby, a manager with the chain’s trio of locations in Velma, Elmore City and Ringling, all in Oklahoma. “We are carrying more peg and bite-sized candy because more people are eating and driving and want the easier packaging and product size.”

Pilot Mountain Grocery has a 12-foot candy aisle, as well as candy racks on the counter and floor displays throughout the store. “We move the displays around frequently in order to keep interest in the category fresh,” Aaron said.

Hershey’s Frazier recommended optimizing the space with the right allocation of chocolate, non-chocolate, gum and mints to capture impulse candy sales. Using candy in cross-category promotions with fountain beverages and foodservice bundles also will build baskets. “Have candy within arm’s reach of transaction points by placing top-selling items at the register,” he added.

For The Pop Stop customers, Krutsch has “cute little signs with the candy

packaging on it along the drive-thru lane, so as they’re waiting, they’re looking at those. We also post about the category often on social media and have additional displays right by the payment window.”

A CONSISTENT FUTURE Confections continue to be a highly impulsive category with good margins for retailers. “Flavor innovations and a variety of package sizes are offering consumers more choices than ever before,” said Unchester with Promotion In Motion. “Consumers who shop for confections are looking for items that have a new and exciting element and are easily accessible to grab-and-go.”

“Candy is the ultimate convenience item,” said Morton. “When [customers] want candy, they’ll find something they like in the candy aisle or at the register— we don’t see that changing,” he said.

“Retailers continue to invest in driving experience for their shoppers, and the confection category is a fun and engaging one,” Frazier concluded.

“Candy continues to dominate the category among all other snacking categories and has a bright future in the convenience channel.”

CONVENIENCE.ORG

iStock.com/vav63

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4/14/20 1

CATEGORY CLOSE-UP / PREPARED FOOD

Made Onsite

Prepared foodservice can be a profitable differentiator.

BY PAT PAPE

JUST THE FACTS Just over 88% of convenience retailers sell some type of food in store, with the category garnering $371,027 in sales per store in 2019, according to preliminary NACS State of the Industry data.

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| MAY 2020

An open kitchen gives customers a frontrow seat to the ingredients being used, the cleanliness of the operation and exactly how the staff prepares their meals.

“Personally, I want to see the cooking that is going on,” said Smartt. “A lot of the small, cool restaurants you go into today have an open-kitchen concept, and you’re watching the cooking happening right in front of you. We want you to see that at Kwik Chek. We think it proves that the food is fresh, that we run a clean operation and our food is not being trucked in from somewhere else and then put in an oven and warmed up.”

MADE ONSITE According to NACS data, the diverse foodservice prepared onsite category can range from chicken, Mexican food, pizza and roller-grill items to burgers, sandwiches, wraps, salads and bakery. Some retailers feature a robust menu, while others may limit the offering to one or two hot items or cold grab-and-go foods pre-made in the store.

“Prepared food offers can be vastly different from retailer to retailer,” said Jayme Gough, analyst for NACS. “Listening to your customers and creating a menu specific to your local area creates a sense of connectivity with customers.”

According to preliminary data from the NACS State of the Industry Report of 2019 Data, food prepared on site accounted for 11.9% of in-store sales in 2019. Just over 88% of convenience retailers sell some type of food in store, with the category garnering $371,027 in sales per store in 2019.

“Prepared food had an average gross margin of 54.44% in 2019,” said Gough.

CONVENIENCE.ORG

iStock.com/TheCrimsonMonkey

W

hen Kwik Chek began remodeling outlets in 2018, one of the first changes that management wanted was an open-kitchen concept so customers could see fresh food items being prepared made to order.

“We are focusing on fresh food, and we are committed to doing everything fresh,” said Kevin Smartt, president of Kwik Chek, the 47-store chain headquartered in Spicewood, Texas, just north of Austin.

“We do tacos and chicken, and we wanted to cook the beef and chicken meat in front of customers. In the c-store food world, you don’t see many people open up the kitchen so customers can see into it.”

Industry Sales % of In-Store Sales 2018

2019

11.53% 11.92%

% of Stores Selling

Avg. Sales/Store 2018

2018

2019

2019

88.5% 88.7%

$358,751 $317,027

Source: NACS State of the Industry Report of 2019 Data

iStock.com/Albert_Karimov

“Within foodservice, prepared food accounted for 63.6% of sales, followed by hot dispensed beverages at 18.0% and cold dispensed beverages at 8.1%. Frozen dispensed beverages was at 5.8%, and commissary was 4.6%.”

LABOR PAINS One of the biggest obstacles that convenience stores face in attempting to succeed as a made-onsite foodservice operation is the ongoing labor shortage. Hiring the right people—and then keeping them on staff after they are trained—can be daunting.

“Our primary focus is dealing with labor—shortage of labor and turnover,” said Kyle Lore, corporate executive chef at Maverik, the 300-plus store chain based in Utah. “We’re trying to streamline and simplify all of our processes. Simpler is better from an execution standpoint.”

Lore is investigating ways different types of equipment can make work easier and more efficient in Maverik’s open kitchens.

“We’re working on dish storage to make it easier to work in the kitchens,” said Lore, whose stores also have open kitchens. “We don’t have deep fryers in the stores. We use ovens to heat things like tater tots, so we’re checking out various versions of air fryers to see if there is something easier for the staff to use.”

When determining what equipment will go into a Maverik kitchen, Lore considers its operation, performance, return on investment and ongoing product CONVENIENCE.ORG

support. “When we look at a new piece of equipment, we really try to put it through its paces,” he said. “We want to see it function in the real-world environment that it will experience daily. When equipment goes down in the stores, it

FUTURE OF FOOD One test for c-stores is the increasing demand for food delivery.

Kwik Chek in Texas uses a third-party delivery service in some markets, but “when you think of DoorDash or Uber Eats, you think they’d be in all markets, but that’s not necessarily the case,” CEO Kevin Smartt said. “Or they might be in the market, but they may not deliver the entirety of the market. It’s hard to capture all of your stores through third-party service.”

Because some Kwik Chek locations are in rural areas or small towns, the company is open to working with small independent delivery providers. On April 1, the chain began working with a local delivery startup serving Bonham, Texas (pop. 10,123).

“We’ll have to see how the economics work out for someone like that in a small market,” said Smartt. “It will be interesting to see the quality of service and how customers adopt somebody that’s not well known. We’re excited that there are opportunities, and we’ll see how it goes.”

Smartt predicts that the convenience store industry will continue enhancing the quality of its food offerings, converting more diners to upscale gas station cuisine.

“Convenience stores in general continue getting more sophisticated and better at food,” he said. “I think we’ll continue to increase share of market within the fresh food category. Customers are much more open minded and willing to have a great food experience in a convenience store. The future is pretty bright for us.”

MAY 2020 |

75

CATEGORY CLOSE-UP / PREPARED FOOD

PER STORE, PER MONTH SALES

2017

2018 $36,912

$36,449

$37,000

2019

$35,748

$36,000 $35,000

$33,869

$34,000 $33,000 $32,000 $31,000 $30,000 $29,000 $28,000 $27,000 JAN

FEB

MAR

APR

MAY

JUN

JUL

AUG

SEP

OCT

NOV

DEC

Source: CSX; csxllc.com

New technology and improved equipment are important to providing customers with great tasting food.

76

| MAY 2020

is a huge obstacle for our employees accomplishing their goals, and it disrupts the customer’s experience.”

Smartt believes that new technology and improved equipment are important to providing customers with great tasting food. “It’s crucial in controlling labor costs and in making your employees’ lives easier, but the new equipment also cooks better,” he said. “It’s more sophisticated and intelligent, and you can do more with less. It gives you a higher quality product today than it ever has before.”

Kwik Chek invests in the latest technology every time a store is remodeled or constructed, “but the hard part is that technology—in all aspects—is changing quickly,” Smartt said. “That makes being consistent from store to store a little challenging.”

TIME-SAVING TECHNIQUES There are several ways to help simplify work in the kitchen without investing in new equipment.

In the past, Maverik used several different proteins in its dishes but now relies on a range of sauces to give customers diverse menu options. For example, “we may use chicken, and then keep different sauces in squeeze bottles,” said Lore. “That way we’re not bringing in another product or making employees heat up another item.”

Kwik Chek recently wrapped up an LTO offer that let customers choose from four different sauces to complement their order of chicken tenders. “We see that as a good way to add variety without changing the core offer,” Smartt said. “I don’t know if it saves labor, but it CONVENIENCE.ORG

Category Performance % of In-Store Sales Prepared Food

Avg. Sales/Store

Avg. GP$/Store

Gross Margin %

2018

2019

2018

2019

2018

2019

2018

2019

11.53%

11.92%

$358,751

$371,027

$196,349

$201,989

54.73%

54.44%

iStock.com/Marat Musabirov

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

Source: NACS State of the Industry Report of 2019 Data

makes training easier. It’s easier for an employee to learn how to use a different sauce than to learn how to prepare a whole new product.”

Despite the efforts to simplify kitchen chores, both chains are constantly on the lookout for tasty new menu items that customers will enjoy.

Smartt likes the potential of cauliflower pizza crusts. “We’re looking at it, but we’re not selling it yet,” he said. “We have limited space for inventory, and we’d have to determine how many we’d sell. And then if we brought it in, what would you take out? At some time, we might do it as an LTO to see how it works before we’d launch it as a product.”

Maverik has a generous offering: burritos, tacos, fresh salads, wraps, pizzas, bakery goods and breakfast bowls. But don’t look for plant-based meats on the menu. “We’ve done an analysis, and it doesn’t represent a large enough percentage of our customers to be worth carrying the product,” said Lore. “We do have vegetarian options. The beans in our burritos are vegetarian, and we have vegetable proteins, but not plant-based meats.”

CONVENIENCE.ORG

FOOD FOR A PANDEMIC The arrival of COVID-19 in early March threw a huge wrench into U.S. madeonsite foodservice operations. As state governors and city mayors mandated social distancing and forced the shutdown of on-premise dining, foodservice retailers of all sizes had to hustle to keep their businesses afloat.

Some, like Irving, Texas-based 7-Eleven stores, limited store hours to give employees more time for “enhanced sanitation measures,” the chain announced. The company urged shoppers to use the 7NOW mobile app that allows them to order food and groceries and have them delivered at their door, minus contact with a delivery person.

Creating a menu specific to your local area creates a sense of connectivity with customers.

The NACS Convenience Tracking Program (CTP) comprises consumer behavior analytics from more than 10,000 convenience store shoppers across 42 states, representing the most comprehensive consumer-driven metrics available to the industry.

To learn more about CTP and how to participate, contact Leroy Kelsey, director of industry analytics, at lkelsey@convenience.org or visit www.convenience.org/ctp.

MAY 2020 |

77

CATEGORY CLOSE-UP / PREPARED FOOD

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.

With headquarters in Wawa, Pennsylvania, Wawa stores also adjusted hours to allow for thorough cleaning and eliminated the option of self-serve food.

Instead, Wawa employees began serving coffee and bagging bakery items, rather than let customers do it themselves. And when Philadelphia officials temporarily suspended custom foodservice citywide, the chain expanded its express offer for both hot and cold foods, adding more options. Then, four of the closed Philadelphia c-stores were converted into fulfillment sites for delivery and mobile order pickup.

The COVID-19 situation has been tough for everyone, but there is a positive aspect, Lore said. “As a workforce and as an industry, we are being recognized as an essential business—as essential

ADVERTISER INDEX Contact Information

Page

7-Eleven Inc............................................................................................. 21 www.7-eleven.com A ltria Group Distribution Company................ Inside Front Cover AGDCTradeRelations@Altria.com www.altria.com Bob’s Red Mill..........................................................................................39 www.bobsredmill.com C ash Depot.....................................................................................5 (800) 776-8834 sales@cdlatm.com www.cdlatm.com C hester’s International LLC.........................................................55 (800) 646-9403 www.chestersinternational.com Chevron Corporation Chevron Energy Solutions LP... Inside Back Cover (866) 354-4476 CHS Inc. – Cenex Petroleum...................................................................67 www.cenex.com/businessopportunities DMF Bait Company...................................................................................15 (800) 332-2248 orders@dmfbait.com www.dmfbait.com ITG Brands....................................................................................23 www.itgbrands.com

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| MAY 2020

Contact Information

The NACS State of the Industry Report of 2019 Data is available for pre-order today! Be one of the first to receive the industry's premier benchmarking tool. Visit www.convenience.org/research.

as grocery stores,” he said. “There are places in the U.S. where people are a long way from a grocery store, but there are c-stores nearby. For those with limited transportation and in a quarantine situation, c-stores may be the best place for them to get the things they need, and I think that makes people think of our industry differently.”

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

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K rispy Krunchy Foods LLC........................................................... 41 (800) 290-6097 www.krispykrunchy.com L iving Essentials LLC (5-hour ENERGY)........................................9 (866) 960-1700 www.5HErewards.com McLane Company Inc................................................... Back Cover www.mclanekitchen.com/salads Mondelez International................................................................3 www.mondelezgrowthprogram.com NACS Convenience Matters.......................................................................6 www.conveniencematters.com

Contact Information

Page

NACS Virtual State of the Industry...........................................................4 www.convenience.org/insights NACS Webinars........................................................................................66 www.convenience.org/education/learning-on-demand Northern Pizza Equipment.....................................................................42 (866) 543-0249 www.northernpizza.com O PIS..............................................................................................27 www.opisnet.com Premier Manufacturing Inc......................................................................7 www.gopremier.com

NACS COVID-19 Resources.......................................................................79 www.convenience.org/Coronavirus

Promotion In Motion Inc..........................................................................71 (800) 369-7391 www.promotioninmotion.com

NACS Emergency Planning.....................................................................26 www.convenience.org/preparedisaster

Sprit +.......................................................................................................42 www.sprit-plus.de

NACS Leadership for Success..................................................................59 www.convenience.org/LFS2020

S wedish Match North America (Zyn)..........................................13 (800) 367-3677 www.smna.com

NACS Show...............................................................................................67 www.nacsshow.com NACS State of the Industry Report......................................................... 77 www.convenience.org/SOIreports2020

Tyson............................................................................................43 www.tysonfoodservice.com/your-channel/convenience

CONVENIENCE.ORG

Count on NACS for updates, alerts, guidance and analysis of what it all means.

Reliable. Up-to-date. Actionable.

In the rapidly evolving coronavirus situation, access to facts and reliable information is vitally important. Your company’s and your customers’ health and safety depend on it. Being on the front lines in disasters and emergencies is nothing new to our industry.

Get ahead of the curve What you need to know, when you need to know it. The NACS team is actively monitoring the global pandemic.

We’re in touch with local, state and federal agencies, health experts, employment law experts, event venue partners, suppliers and retailers.

Your Coronavirus Information Destination + Latest Regulatory Updates + Coronavirus Resources for Convenience Retailers + Employee-Employer Guidance + Workplace Safety Precautions + Virus-Tracking Maps + Travel Updates + Food-Industry Preparedness Resources

For the latest information, updates and alerts, visit and bookmark: convenience.org/Coronavirus-Resources

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Kids Eat Free

Glove Me In Jacksonville, North Carolina, a gas station is supplying free gloves to customers as they pump their gas.

Each pump has a sticker on it that informs customers the station has gloves available. Additionally, station employees are wiping down pumps with a disinfectant cleaner every two hours.

A Helping Hand

A gas station owner in Jackson, Mississippi, helped his local community by offering gas for $1 a gallon during a weekend.

He also gave away free sandwiches and water to anyone who needed them.

“We are all one family,” said the owner.

“Sometimes we have to help each other.”

80

| MAY 2020

Many Americans are grappling with the reality of losing their jobs, making it tough to provide for their families.

One convenience store in Tampa Bay, Florida, is hoping to ease the financial strain. The store is offering elementary and middle school students free lunches. Kids can stop by for a free sandwich, chips and a drink. “Most people, they need the food. No questions asked; just come in,” said the store manager.

Full-Service Work One gas station owner is offering a new service for his customers while also helping his employees. Chuck Rezac owns The Chuck Stop, a gas station in Yankton, South Dakota, and he also owns Charlie’s Pizza right next door. Since the spread of coronavirus has forced his dining room to close, instead of employees losing hours, his gas station now offers full service to customers with the help of his restaurant associates. Employees pump customers’ gas, clean their windshield and even run into the convenience store to grab items.

“We’ve gotten a lot of compliments and feedback from it. I think that everyone really appreciates it,” said one employee.

CONVENIENCE.ORG

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