NACS Magazine 2023 October

Advancing Convenience & Fuel Retailing

OCTOBER 2023 MUSIC MATTERS Creating an in-store soundtrack CANNABIS NOW Some do’s and don’ts for retailers

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Advancing Convenience & Fuel Retailing

OCTOBER 2023 MUSIC MATTERS Creating an in-store soundtrack CANNABIS NOW Some do’s and don’ts for retailers

Win Big How to build your NIL marketing playbook

convenience.org

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ONTENTS NACS / OCTOBER 2023

FEATURES

46 A Slam Dunk for C-Stores In this new era of NIL deals, convenience stores can score big by partnering with student-athletes.

59 Talk to Me The future of loyalty apps.

67 6 Ways to Boost Your Beverage Business

Teas, customization and drinksonly retailers are impacting the traditional c-store beverage business.

76 Growing THC Legalization:

What It Means in One State

On the Cover: AnthiaCumming/Getty Images. This Page: F16-ISO100/Shutterstock

Minnesota’s low-dose edible approach opens the door for mainstream retailers to sell THC.

84 When It Comes to Cannabis, Maximizing Success Begins With Mitigating Risk

Selling legal cannabis products is a huge opportunity, but it calls for a careful approach.

92 Selling More Stuff Consumers tell NACS what they typically do when they come inside the store—and how that aligns with other actions.

111 High-Fiving Heroes

103 Sip, Sip, Hooray Booming prepared cocktails segment finds a home in convenience stores.

Convenience stores around the country celebrated local heroes during the fifth annual 24/7 Day.

NACS OCTOBER 2023 1

ONTENTS NACS / OCTOBER 2023

120

No Skips, Just Hits Savvy retailers play music that enhances the customer experience.

130 Chevron Spearheads

Innovative Fuel Alternatives This article is brought to you by Chevron.

The company has fit-for-purpose solutions to match a variety of customer needs.

135

Convenient Caffeine Convenience stores are buzzing with caffeinated drinks.

143 Store Swag Branded wearables and other merch allow retailers to build loyalty and brand awareness.

152 As Convenience

Transforms, So Does McLane This article is brought to you by McLane.

From foodservice to data security, McLane stays in step with and continues to lead a changing industry.

156 Building a Better Menu Whether you call it rationalizing, optimizing or reengineering, bringing an analytical perspective to foodservice is key to success.

167 Painting a Personality Convenience stores are adding murals, inside and out, to make the stores more vibrant and engage local communities.

182 Inside the Current State of EV Charger Maintenance

STAY CONNECTED WITH NACS @nacsonline facebook.com/nacsonline instragram.com/nacs_online linkedin.com/company/nacs 2 OCTOBER 2023 convenience.org

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

ZargonDesign/Getty Images; kiska/Shutterstock

Although there are glaring maintenance issues today, the process is maturing.

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ONTENTS NACS / OCTOBER 2023

DEPARTMENTS 08

From the Editor

10

The Big Question

12

NACS News

24

Convenience Cares

28 Inside Washington

38 Ideas 2 Go

NACS plays an active role advocating for the industry through the court system.

For Corner Store, catering to its local customers is a top priority. And, at the Chit Chaat Café inside a Mobil gas station, the Indian street food comes with a healthy dollop of love.

191 Cool New Products 208 Gas Station Gourmet Birria Boys—built around delicious birria—is a hit in Elk Grove, California.

212 Category Close-Up Candy

228 By the Numbers

IT’S A FACT

37.4%

The chocolate bars/packs subcategory accounts for this much of the candy category, making it the largest sales contributor in the category.

CATEGORY CLOSE-UP PAGE 212

PLEASE RECYCLE THIS MAGAZINE 4 OCTOBER 2023 convenience.org

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/ OCTOBER 2023 EDITORIAL

NACS BOARD OF DIRECTORS

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

CHAIR: Don Rhoads, The Convenience Group LLC

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

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

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

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

CONTRIBUTING WRITERS Terri Allan, Amanda Baltazar, Shannon Carroll, Joel Chappelle, Sara Counihan, Sarah Hamaker, Al Hebert, Jeff Lenard, Pat Pape, Renee Pas, Keith Reid, Adam Rosenblatt, Melissa Vonder Haar

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

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

DESIGN Imagination www.imaginepub.com

CHAIR: Kevin Farley, GSP

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

CHAIR-ELECT: David Charles Sr., Cash Depot

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

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

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

Nancy Pappas Marketing Director (703) 518-4290 npappas@convenience.org Logan Dion Digital Media and Ad Trafficker (703) 864-3600 ldion@convenience.org

SUPPLIER BOARD REPRESENTATIVES: David Charles Sr., Cash Depot; Kevin Farley, GSP STAFF LIAISON: Henry Armour, NACS GENERAL COUNSEL: Doug Kantor, NACS

NACS SUPPLIER BOARD

ADVERTISING

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

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

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

Danielle Holloway, Altria Group Distribution Company; Jim Hughes, Krispy Krunchy Foods LLC; Kevin Kraft, Q Mixers; Kevin M. LeMoyne, Coca-Cola Company; Lesley D. Saitta, Impact 21; Sarah Vilim, Keurig Dr Pepper RETAIL BOARD REPRESENTATIVES: Scott E. Hartman, Rutter’s; Steve Loehr, Kwik Trip Inc.; Chuck Maggelet, Maverik Inc. STAFF LIAISON: Bob Hughes, NACS SUPPLIER BOARD NOMINATING CHAIR: Kevin Martello, Keurig Dr Pepper

NACS Magazine (ISSN 1939-4780) is published monthly by the National Association of Convenience Stores (NACS), Alexandria, Virginia, USA. Subscriptions are included in the dues paid by NACS member companies.

Subscriptions are also available to qualified recipients. The publisher reserves the right to limit the number of free subscriptions and to set related qualifications criteria.

Subscription requests: nacsmagazine@convenience.org POSTMASTER: Send address changes to NACS Magazine, 1600 Duke Street, Alexandria, VA, 22314-2792 USA. Contents © 2023 by the National Association of Convenience Stores.

Periodicals postage paid at Alexandria VA and additional mailing offices.

1600 Duke Street, Alexandria, VA 22314-2792

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UP FRONT FROM THE EDITOR

Value Added

A

convenience store just down the road from me had a colorful mural painted on an exterior wall last year.

Art is always in the eye of the beholder, but there is also value. What did it cost? And what’s it worth?

For costs, suppose the mural cost $5,000 and will last five years. That would mean the store’s investment comes out to about $2.74 per day over the life of the mural. It could have been less expensive.

So what’s that art worth? It’s a non-fueling site in a prominent location, along a busy road that is often crowded with pedestrians. Office buildings, apartment buildings, a school and many restaurants and bars are nearby.

I have to imagine that having the mural painted was a smart move. Thousands of people pass by the store on a daily basis, and with the art the store stands out from anything else in the vicinity. Wouldn’t at least a few people be influenced by the eye-catching colors and step inside? Payback on the cost seems pretty viable. And I think it makes even more sense when you add in the less-direct benefits of goodwill and good vibes. Are murals right for you?

You can decide for yourself by reading our article “Painting a Personality.”

Speaking of creating good vibes in the community … imagine being able to tap into the brand equity of a beloved local university by working directly with college athletes who help promote your store.

“It’s relatively inexpensive,” “some contracts can start at $1,000,” and “players are a lot more approachable 8 OCTOBER 2023 convenience.org

It makes even more sense when you add in the lessdirect benefits of goodwill and good vibes. than companies might think.” Those are all quotations from “A Slam Dunk for C-Stores,” which explores how convenience retailers are navigating the new space of NIL deals.

It’s worth noting that the individual athletes in these situations are just that—individual athletes. They can’t wear school gear, but they don’t need to when you can draw the right connections. And think about the benefits of learning from your spokespeople. Their age range is a prime target customer.

We’ve used the phrase “one idea can change your business” to market the NACS Show. And that’s true. I’m looking forward to seeing you there. It also applies to NACS Magazine. Those two stories above are among my favorites in this issue, but there’s plenty to choose from in this stuffed NACS Show issue.

Take your time, peruse and as always let me know your favorites. I’m at bnussbaum@convenience.org.

Abstract murals like this one might be a safe bet—it’s hard for the artist to “get it wrong,” while vivid hues are easy to incorporate.

Come see us at our NACS booth #C7443 and see how we are redefining innovation!

usa.schaerer.com

UP FRONT THE BIG QUESTION

What’s next as you finish your term as NACS Chairman?

First, I’m not going anywhere. I’m still on the NACS Board and Executive Committee. And I’m still passionate about the industry and what we can do together to make a difference in the communities we serve.

It’s important to note that the chairman of NACS does not set the agenda for the year. We focus much further out, looking at what the industry needs three to five years out, and building initiatives and programs to meet future needs.

Right now, NACS has several multiyear initiatives in play, all designed to address emerging issues that our members have told us are important. We have TruAge, which is taking us into the future with age verification. We have THRIVR, designed to move the industry forward in the digital world. We have several projects looking at the future of mobility, whether related to EVs or traditional fueling. And, of course, there are plenty of legislative and regulatory initiatives, especially in pushing forward credit card swipe fee reform.

What NACS chairmen—or any board member, for that matter—can do is to elevate issues of importance that we feel are of great significance to the industry.

I have two issues that I am passionate about—our communities and our people—and the great news is that both are already part of broader NACS initiatives.

10 OCTOBER 2023 convenience.org

 Don Rhoads, 2022-23 NACS Chairman At last year’s NACS Show I stressed the importance of being actively engaged in our communities. It’s good for the community, and it’s good for business. Whether it’s your customers or your employees, purpose matters.

They want to know what you believe in—and how you support those beliefs. NACS has working relationships with groups that address food- and nutrition-related issues (Partnership for a Healthier America, Feeding America), disaster relief (American Red Cross) and beautifying our neighborhoods (Keep America Beautiful), as well as other groups that focus on helping those in need.

Over the past year I have also stressed the importance of our people. We ask a lot of them— whether it’s policies and procedures or implementing increasingly complex systems—and they deliver. I was so gratified to have discussions with our frontline workers during a series of road trips this past year. They are not just the face of our industry, they are our heart.

NACS also has resources that can grow our people, whether the education sessions at the NACS Show or at the annual Human Resources Forum, which I attended for the first time this year. And we’ve also developed relationships with bestin-class organizations to take you further, including a partnership with the Good Jobs Institute.

Finally, there is one more topic I am passionate about: Engaging and growing our smaller operator community. NACS has created a task force focused on the unique challenges of the smaller operators in the industry. We’re involving suppliers, who are equally committed to the success of these operators. I am excited about the transformational change that is possible here.

So, what’s next for me? I’m going to continue to focus on my passions and how I can use my platform— whether as a community business or a NACS leader—to make us better. And that never has a term limit associated with it.

by Cash Depot

UP FRONT NACS NEWS

NACS Executive Education 12 OCTOBER 2023 convenience.org

Build leaders who can transform companies.

The convenience and fuel retailing industry is rich with possibility. The key to success? Leaders who can forge the future. Informed, confident and nuanced leaders are the best asset an organization can have. NACS Executive Education has partnered with worldclass, Ivy League institutions—boasting some of the best educators in the world—to provide exclusive training.

Upcoming Events

Innovation Leadership Program November 5-10, 2023 MIT Sloan School of Management Innovation isn’t just a word—it’s a necessity. In convenience, we must bring it to our perspective, our skillset and our implementation. Because without innovation, stagnation sets in. And we all know this fast-paced world has no room for stagnation. Want to be an innovator? An innovative thinker? Want to network with other innovative leaders? This program is for you.

Supported by:

skynesher/Getty Images

Women’s Leadership Program November 12-17, 2023 Yale School of Management

The NACS Executive Education series is the only comprehensive, multidiscipline industry curricula that offers customized training exclusively for senior convenience management.

When it comes to transformative learning for the topmost sector of the convenience channel, NACS brings 60 years of industry experience and a global network to deliver an unparalleled, prized education experience.

Each immersive program is designed to actualize potential. Which will you and your team attend?

Unapologetic. Powerful. Respected. Authentic. Women aren’t simply equipped to succeed because they are human—they have unique strengths. Often they can harness an innate emotional intelligence that allows a deeper breadth of understanding and clarity. This empowering course is designed for women who want to individually and collectively bolster their leadership abilities, reinvigorate their companies and expand their networks.

Endowed by:

Learn about our other programs at www.convenience.org/ Education/NACS-Executive-Education.

NACS OCTOBER 2023 13

UP FRONT NACS NEWS

In 2013, the Transportation Energy Institute (formerly known as the Fuels Institute) released its first report, titled, “Tomorrow’s Vehicles—What will we drive in 2023?” Now in 2023, the Institute has teamed up with Guidehouse Insights (whose analysis powered that report back in 2013 as Navigant Research) to create a new report, “BACK TO THE FUTURE: 10 Years of Learned Lessons About the Vehicle Market.”

The report reviews the forecasts made in 2013 and evaluates what major 14 OCTOBER 2023 convenience.org

developments have occurred over the past 10 years. Understanding what changed and the reasons why might better prepare us to critically review the uncertainties of current forecasts about the transportation energy market.

The report includes five events that were impossible to predict in 2013 and take center stage in the assessment: • The oil price collapse of 2014 • “Dieselgate” • Tesla’s string of successes, from the Model S to the Model 3 debut • Emergence of anti-internal combustion engine (ICE) regulation • The pandemic “These events not only shifted the market trajectory, but also exemplify the limitations of prediction relative to what the narrative suggests is reasonable at any given time,” said John Eichberger, executive director of the Transportation Energy Institute.

The report takes into account the future of the market but acknowledges the uncertainty inherent in projecting the future. Eichberger added, “As the market continues to move toward net-zero, we can only expect that more of the unknowns will become known, and we must do our best to prepare for unexpected trends that might survive and those which may not.”

Download the free report at www.transportationenergy.org/research/reports.

peterschreiber.media/Getty Images

New TEI Report: “Back to the Future”

B d in ion fo n cking.

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VIS IT

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UP FRONT NACS NEWS

New Members NACS welcomes the following companies that joined the Association in July 2023. NACS membership is company-wide, so we encourage employees of member companies to create a username by visiting www.convenience.org/create-login. All members receive access to the NACS Online Membership directory and the latest industry news, information and resources.

For more information about NACS membership, visit convenience.org/membership.

NEW RETAIL MEMBERS

NEW HUNTER CLUB MEMBERS

AAFS LLC DBA: All American Fuel Station Lake Havasu City, AZ Coles Fairfield Market LLC Fairfield, NJ Gordon Doerle Holdings LLC Broussard, LA INTEGRITAS FORUM LLC Sundance, WY Mercury CS Holdings Corp.

Longboat Key FL Right There Travel Centers Little Rock, AR Yonker-Fischer Ventures dba Alto Marathon Alto, MI Discovery Co-op North Battleford, SK Canada www.discoveryco-op.crs

CigarBros USA Inc. El Cajon, CA cigarbros.com Patron Points Woodbury, MN www.patronpoints.com NEW SUPPLIER MEMBERS

Advantech Corporation Downers Grove, IL www.advantech.com BrightView Landscapes LLC New Albany, OH www.brightview.com Clarksons Auckland, New Zealand DAVACO Inc. Irving, TX www.davaco.com

DPL Wireless www.dplwireless.com European Confections Inc. New York, NY www.europeanconfections.us Evolve Inc. Saint Joseph, MI Food Fair Magazine San Anselmo, CA www.thefoodshownetwork.com Global Recruiters of Buckhead Peachtree City, GA www.GRNBuckhead.com Heritage Fire Security Hackensack, NJ www.academyservicegroup.com Hype Beverages LLC Peachtree Corners, GA www.hypebeverages.com

Just Desserts- Rubicon Bakery Roswell, GA www.justdesserts.com Like Air Madison, NJ www.likeairsnacks.com MAG INDUSTRIES Tyrone, PA www.shop.mag.industries Maryland Lottery and Gaming Baltimore, MD www.mdlottery.com McKinsey & Company Inc. Miguel Hidalgo, Mexico City Mexico Mike’s Hot Honey Brooklyn, NY www.mikeshothoney.com NuVue Foods Inc. Hamtramck, MI

Offshoot Brands Conshohocken, PA www.offshootbrands.com SaveMore Waltham, MA THE TOUCH ON Chantilly, VA www.thetouchon.com Tiger Packaging Boca Raton, FL www.tigerpackaging.com UrthPact Leominster, MA www.urthpact.com Vollrath Company LLC Sheboygan, WI www.vollrath.com

Calendar of Events 2023

NOVEMBER NACS Innovation Leadership Program at MIT November 05-10 | MIT Sloan School of Management | Cambridge, Massachusetts NACS Women’s Leadership Program at Yale November 12-17 | Yale School of Management | New Haven, Connecticut 2024

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

NACS Day on the Hill March 11-13 Washington, D.C. NACS Human Resources Forum March 18-20 | Hyatt Regency Jackson Riverfront | Jacksonville, Florida APRIL NACS State of the Industry Summit April 03-05 | Hyatt Regency O’Hare Chicago Rosemont, Illinois Conexxus Annual Conference April 28-May 02 | Live! By Loews Arlington Texas Arlington, Texas

JUNE NACS Convenience Summit Europe June 04-06 | Intercontinental Barcelona Barcelona, Spain JULY NACS Financial Leadership Program at Wharton July 14-19 | The Wharton School University of Pennsylvania Philadelphia, Pennsylvania NACS Executive Leadership Program at Cornell July 28-August 01 | Dyson School, Cornell University Ithaca, New York

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

16 OCTOBER 2023 convenience.org

UP FRONT NACS NEWS

Member News RETAILERS

Wills Group appointed Julian B. Wills as president and chief executive officer. In this role, Wills will continue to lead efforts to Julian B. Wills develop Dash In and Splash In ECO Car Wash with a focus on the customer experience. The Wills Group will also continue its current path with its diversity, equity and inclusion efforts as it expands its commitment to community engagement.

Nora Duke

Parkland Corporation announced Nora Duke to Parkland’s board of directors. Duke’s career includes over 35 years with-

18 OCTOBER 2023 convenience.org

in the Fortis group of companies.

Most recently, she served as executive vice president, sustainability and chief human resource officer at Fortis Inc. Duke has significant board experience in the corporate, industry and community sectors.

She currently sits on the board of the Institute of Corporate Directors.

Terry Thomas has been named chief growth officer at Flowers Foods Inc. Thomas is responsible for leading and managing Terry Thomas growth initiatives, product development and innovation, marketing and customer partnerships. Thomas joins Flowers from Unilever, where he held key executive roles and most recently served as global

chief customer officer. In conjunction with this move, Thomas has retired from the Flowers Foods board of directors.

SUPPLIERS

Michael Torrescano joined Flexeserve Inc. as vice president of sales.

With his operator experience, followed by 12 years Michael in foodservice Torrescano equipment sales, Torrescano has worked across the entire spectrum of foodservice, from food distribution and culinary, to commercial kitchen equipment and operations. Prior to joining Flexeserve, Torrescano served as a sales executive at Rational.

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UP FRONT NACS NEWS Jeff Hindman was appointed company chief executive officer at Paytronix. Hindman joined the Paytronix board of direcJeff Hindman tors in 2022. With expertise in go-to-market strategy, Hindman has led such efforts at several companies, including at NCR, where he headed the hosted solutions team.

Paytronix founder Andrew Robbins now serves as its executive chairman. Robbins will continue to be involved with the Andrew Robbins Paytronix executive team. He’ll remain active within the organization, focusing his experience on strategic initiatives, customer and partner relationships and product strategy.

20 OCTOBER 2023 convenience.org

Helen Davis joined Kraft Heinz as SVP and head of North America operations. Davis will use her experience of leading complex Helen Davis global companies through challenging supply chain environments and modernizing teams with new tools and team structures.

Rebecca Dunphey joined Kraft Heinz as the SVP and president of fresh, beverages and desserts in North America. Dunphey Rebecca will oversee some Dunphey of the company’s most iconic brands. Most recently, Dunphey worked at The Clorox Company, where she was group president for its Care & Connection division. In her new role, Dunphey will help drive positive share growth by developing brand strategies and innovation.

Simon Laroche now serves as Kraft Heinz SVP and president of Canada and the North America coffee business. Laroche Simon Laroche brings more than 20 years of experience in the food and beverage industry, including nearly 14 years at Labatt Breweries of Canada. Laroche will be based in the Kraft Heinz Toronto office.

KUDOS

The Spinx Company was named the No. 1 Best Place to Work in South Carolina.

The publishers of SC Biz News and the Best Companies Group join each year to produce the Best Places to Work in South Carolina program. This initiative is dedicated to identifying and recognizing South Carolina’s most innovative and topnotch employers.

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CONVENIENCE CARES

Casey’s Reaches Milestone of 30 Million Donated Meals The retailer has had a partnership with Feeding America since 2020.

24 OCTOBER 2023 convenience.org

T

hrough its partnership with Feeding America, the nation’s largest hunger-relief organization, Casey’s has helped provide 30 million meals to people struggling with hunger in its local communities.

Since the partnership was established in 2020, Casey’s guests have been invited to join the movement to end hunger and participate in Casey’s annual roundup at the register campaign supporting Feeding America. For each dollar donated, 10 meals are distributed to families across the heartland through the Feeding America nationwide network of food banks.

Recently the partnership between Casey’s and Feeding America marked 30 million meals made possible since the launch of the partnership.

“At Casey’s, our purpose is to make life better for our communities and our guests every day—and this includes working alongside Feeding America and the 53 local food banks we assist to help those struggling with hunger,” said Ena Wil-

liams, chief operating officer at Casey’s.

“Food insecurity and availability present challenges for many in our communities.

But through meaningful collaboration, community partnerships and the generosity of our guests, we will continue to make a positive impact for those who need it most.”

Eighty-seven percent of counties with the highest rates of food insecurity are rural, according to Feeding America. As this challenge remains prevalent nationwide, Casey’s is committed to prioritizing additional ways to support hunger relief efforts across the heartland.

The company recently donated $100,000 to the Food Bank of Iowa in Des Moines, Iowa, in support of expanding its distribution center. And this spring, Casey’s provided $30,000 to the Second Harvest Food Bank of East Tennessee, enabling funds for five mobile food distribution events in Knoxville, Tennessee, where nearly 50,000 pounds of food were distributed to local area communities.

CONVENIENCE CARES

In The Community Every year, the convenience retail industry dedicates billions of dollars to advancing the futures of individuals and families in our communities. The NACS Foundation unifies and builds on NACS members’ charitable efforts to amplify their work in communities across America and to share these powerful stories.

Learn more at www.conveniencecares.org.

LOVE’S DONATES $100,000 TO TRUCKERS 1 For the fourth straight year, Love’s made a donation to the St. Christopher Truckers Development and Relief Fund, which helps professional drivers and their families during difficult times. The relief fund helps cover expenses, including rent, mortgage, utilities, insurance and vehicle payments, when drivers are unable to work due to injury or illness. It also provides free health and wellness programs for professional truck drivers.

MINITMART DONATES TO LOCAL FIRE COMPANIES 2 During its fourth annual Fire Company Fundraiser, Nittany MinitMart raised $149,030.43 with 1

support from sponsors, supporting vendors, and customers.

Beginning April 1st, MinitMart donated one cent of every gallon of gas sold at its 26 locations to local fire companies with Pennsylvania Skill, MinitMart’s largest vendor, matching the one cent donation. One location sold more than 1,000 donation cards within the first day in-store merchandise was available.

beginning of July, Mirabito provided customers with the opportunity to donate to Upstate Golisano Children’s Hospital by rounding up their purchases at participating Mirabito convenience stores. Mirabito Cares raised $80,000 from the campaign.

STEWART’S SHOPS DONATES $5,000 TO LIBRARY

5 During the month of August Wawa held its Cheers to Classrooms program to celebrate educators and administrators across the state of Florida. The promotion included a free any-size hot coffee or fountain beverage for teachers and school administration when they mentioned their role upon checkout at the register.

The Cheers to Classrooms promotion was also planned for the Mid-Atlantic region in September.

3 Stewart’s Shops donated $5,000 to the Yaddo Reads Lending Library. Yaddo, an artists’ colony in Saratoga Springs, New York, opened its new Yaddo Reads Lending Library in celebration of National Book Lovers Day. The library offers a wide selection of books for children and young adults, as well as an audio portal where stories can be read aloud.

MIRABITO CARES RAISES FUNDS FOR CHILDREN’S HOSPITAL 4 Mirabito Cares, the philanthropic program of Mirabito convenience stores, partnered with The Upstate Foundation to help support Upstate Golisano Children’s Hospital in Syracuse, New York.

During the month of June and the

3

WAWA CELEBRATES EDUCATORS FOR BACK TO SCHOOL

SPINX RAISES FUNDS FOR LOCAL CHARITIES 6 Spinx Company donated $120,000 across four local charities: the American Red Cross, Greenville (South Carolina) Free Medical Clinic, Loaves and Fishes and Safe Harbor. The money was raised during their annual Charity Classic Golf Tournament held in May. Spinx chose organizations aligned with its corporate charitable mission—”Spinx & Kids: Mind, Body, Spirit. Growing healthy kids where we live, work and play.”

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NACS plays an active role advocating for the industry through the court system.

BY DOUG KANTOR

N

ACS advocates for the retail sector of the convenience industry in every government forum it can. Most of this work is directed toward policies set by the legislative (Congress) and executive branches of the federal government, though at times NACS deals with a number of interstate organizations including those representing governors, attorneys general, state legislators and even mayors.

One area of NACS’ advocacy that may not be as apparent is the work done in the courts—the third branch of government. Some policy problems are best addressed through litigation and, at other times, litigation can be part of a joint strategy. NACS regularly uses litigation to press the best interests of the industry.

EMPLOYEE MANDATE One of NACS’ most significant accomplishments on behalf of the industry was litigation to block the proposed

28 OCTOBER 2023 convenience.org

federal mandate for all employees in companies with 100 or more employees to receive a COVID vaccine. There was significant concern within the industry that this would cause large numbers of employees to quit their jobs—a concern at any time, but one that was heightened by the historic labor crisis during the pandemic.

The vaccine was proposed late in 2021. NACS worked with a coalition of business organizations to come up with a legal strategy and file suit in federal court to block the mandate. That case, National Federation of Independent Business v. U.S. Department of Labor, along with a similar case filed by a group of states, went all the way to the U.S. Supreme Court. In January 2022, the Supreme Court ruled in NACS’ favor. Some of the central information cited by the lawyers in the case at oral argument was generated by NACS’ research team through a survey of NACS members.

Worawee Meepian/Getty Images

The Third Branch

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TRANSPORTATION ENERGY NACS has a multifaceted strategy regarding transportation energy. On the one hand, NACS wants to ensure its members can sell any transportation energy that customers want to buy, including any liquid fuels and electricity, on a level playing field. On the other hand, NACS wants to ensure that those can be market choices and not be forced by government mandate. If both of those things happen, the retail convenience industry will continue to grow and thrive.

Creating a level playing field for the sale of energy is primarily a project of

legislative and regulatory work at this time. Congress has passed and is considering provisions to push the states toward that goal. NACS is also part of a coalition to work with state lawmakers and regulators to make that happen.

But, mandates of certain energy and bans on internal combustion engine vehicles threaten to dramatically disrupt the market. To deal with those policies, NACS has turned to the courts in a series of cases. Currently, NACS is a plaintiff in three such litigation cases and may join more as federal and state policies develop. First, NACS is challenging the U.S. Environmental Protection Agency’s decision to grant the state of California a waiver to impose its so-called “zero emission vehicle” mandate on light-duty vehicles. That case is pending before the U.S. Circuit Court of Appeals for the DC Circuit. Second, NACS is challenging the legal ability of Minnesota to adopt California’s lightduty “zero emission vehicle” mandate in the U.S. District Court for the District of Minnesota. Third, NACS is fighting California’s heavy-duty “zero emission vehicle” mandate and the waiver EPA granted allowing California to impose it.

That case is pending in the DC Circuit.

By bringing all of these cases, NACS is trying to ensure that government policy avoids technology-specific mandates.

While technology-neutral performance goals and incentives can operate with the market, forcing specific technologies will harm the nation’s economics as well as its environmental goals. Government policy simply cannot predict the course of innovation and market forces in the future, so it should not force a particular technology solution while cutting off other avenues that may better improve environmental and economic results.

PAYMENT CARD SWIPE FEES Since 2005, NACS has been a lead plaintiff in litigation challenging the way that credit and debit card swipe fees are set

algre/Getty Images

NACS wants to ensure its members can sell any transportation energy that customers want to buy. ”

The case not only blocked the mandate, it is one of the few key cases reinvigorating the “major questions” doctrine, which holds that federal agencies cannot discover new legal authority to take sweeping actions years after a long-established law was passed and that Congress needs to be clear when it delegates major new authority to federal agencies. That doctrine is likely to be key in many future cases challenging agency actions.

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32 OCTOBER 2023 convenience.org

and the rules imposed on such transactions by Visa and Mastercard. When the class action case in that litigation reached a proposed settlement in 2012 that would have provided funds to merchants but locked in the Visa/Mastercard rules without much change, NACS led a large group of organizations that challenged the settlement. That challenge was successful and invalidated the inadequate 2012 settlement.

Following the court throwing out the 2012 settlement, NACS joined the largest group of individual litigants in order to have new counsel press for the best possible outcomes for the industry as a whole. We have been working with new counsel for the class representing merchants seeking to change Visa’s and Mastercard’s rules. That is the key, ultimate objective of the litigation. At this point, dueling motions for summary judgment have been fully briefed and we are awaiting a decision from the court on those motions. Once those motions have been decided, NACS expects that the court will set a date for a trial in the case.

In 2019, the lawyers representing the class of merchants seeking monetary relief for past swipe fee charges reached a new settlement. Because the monetary part of the case had been separated from questions regarding the credit card companies’ rules, NACS did not object to that settlement. Other appeals of that settlement have been rejected to date and

NACS is awaiting word from the court regarding how the claims process will work for members of the industry to seek some funds for their past swipe fees paid.

NACS also tries to help other litigants in cases that matter to its priorities.

This can be done through filing amicus (friend of the court) briefs. In these cases, NACS isn’t actually a party to the case, but writes a brief to let the court know its perspective on the legal issues at stake. For example, NACS was part of an amicus brief in the case of Pulse v. Visa. In that case, the debit network Pulse sued Visa for using its market dominance to block competition in the debit network market. The case was initially thrown out by the trial court, but on appeal, NACS and other retail groups helped Pulse get the 5th Circuit Court of Appeals to reverse the trial court. In fact, in a very rare move, the 5th Circuit ordered that the trial court judge be removed from the case and replaced by another judge. That resounding win last year for Pulse did not decide the outcome of the case, but it allowed the litigation to proceed, and Pulse can now try to prove that Visa in fact violated the antitrust laws.

TOBACCO The U.S. Department of Justice sued tobacco manufacturers in the 1990s on a range of issues and won a decision in 2006. One provision of the court’s

Azulillo/Getty Images

Since 2005, NACS has been a lead plaintiff in litigation challenging the way that credit and debit card swipe fees are set and the rules imposed on such transactions

by Visa and Mastercard.

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decision ordered the manufacturers to place signage at retail points of sale making so-called remedial statements regarding the case. NACS filed an amicus brief supporting the tobacco manufacturers’ appeal of the decision and specifically arguing that an order requiring signage at retail violated retailers’ property and due process rights. The DC Circuit Court of Appeals agreed with NACS and ordered the trial court to reconsider the signage requirement. The result was more than ten years of sparring before the District Court in DC. The case went on long enough that the original judge in the case retired and was replaced.

Unfortunately, the new judge was determined to have some type of retail signage requirement. Given that reality, the tobacco manufacturers, with NACS’ participation, negotiated a less stringent signage requirement than the Department of Justice sought. That requirement is just taking effect now. While it is burdensome and unfair for retailers, the long-term advocacy against it moderated some of the most troubling aspects of the requirement that had been sought in the case.

Last year, NACS also filed a friend of the court brief supporting JUUL’s lawsuit objecting to FDA’s decision to ban all JUUL products. That decision was challenged as arbitrary and without factual or scientific foundation. When challenged, the FDA asked the court for time to reevaluate its decision. As of this writing, the FDA is still considering what to do about JUUL products and what to say to the court.

BROAD CLIMATE LIABILITY Another subject with active litigation is climate liability. Some municipalities and environmental groups have a strategy to bring multiple cases against the major oil companies to try to get large monetary awards against them for causing climate change. One of the major points of 34 OCTOBER 2023 convenience.org

ONE VOICE This month, NACS talks to

Mike Wilson,

chief operating officer, Cubby’s Inc.

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

At Cubby’s, we believe in being a real part of all the communities that we serve, especially when it comes to children. We sponsor many athletic events and teams, and we also host our own Raise Some Dough fundraiser—where we partner with local schools and donate $1 to that store’s school district for every large pizza we sell. We have raised over $125,000 from just that fundraiser. Partnerships like those are investments in our communities’ futures.

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

Being involved with NACS’ government relations team has opened my eyes to many headwinds that our industry is facing. This can be a complicated business, with many regulatory issues and legislative issues that are sometimes buried in other bills. Being engaged with NACS makes it easier to stay on top of the legislative and regulatory issues that might affect us and allows us to educate our lawmakers so that they can do the right thing for our business and our industry.

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

The most important issue would be the passing of the Credit Card Competition Act. Credit card fees are our fastestgrowing expense and our second-highest expense, just under labor. The passing of this bill has become a real passion for me. I am also concerned about fuel and transportation energy mandates, such as E15 or EV mandates by states and local communities. Letting consumers and the market drive what fuels or transportation energy retailers sell is the best approach. Competition and a fuel-neutral approach, rather than the government picking winners and losers in terms of what fuel has to be sold, allow retailers to make decisions based on demand by their customers and the costs to offer these fuels, such as infrastructure costs.

What c-store product could you not live without?

In general, I love a sausage, egg and cheese biscuit, but my No. 1 go-to is the Cubby’s Spicy Side Chick, there is nothing like that anywhere else.

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contention in these cases is whether they must be brought in federal courts (as the oil companies contend) or whether the plaintiffs in the cases can selectively choose state courts in which to pursue these cases. NACS has weighed in with amicus briefs in some of the leading cases arguing that these issues must be decided by federal courts. The decisions to date in these cases have been mixed, and NACS is still awaiting the outcome of some of these challenges. The viability of the environmental groups’ strategy to impose massive liability could turn to a large degree on the outcome of these jurisdictional questions.

The result was more than ten years of sparring before the District Court in DC.

UNFAIR LIABILITY FOR EMPLOYEES In a West Virginia case, Speedway was sued for a traffic accident involving an employee who was driving home from work. The potential extension of employers’ liability to what employees do when they are not working could have dramatically expanded legal risks for virtually all employers. NACS worked with a number of groups to file an amicus brief supporting Speedway’s appeal and pointing out the extent of national liability that could result from a ruling against Speedway. The appeal was successful and established a strong rule in West Virginia that employers are not legally responsible for what their employees due when they are not working.

POINT OF OBLIGATION A group of refiners has long struggled against the regulatory requirements they face in order to comply with the renewable fuels standard. Unfortunately, this has at times led them to try to move their compliance responsibilities onto other businesses in the fuel distribution chain—some of those responsibilities could then fall on the shoulders of NACS members. In order to protect against that potential outcome, when refiners and their trade associa-

36 OCTOBER 2023 convenience.org

tion sued EPA to try to legally change compliance responsibilities, NACS filed an amicus brief pointing out the many problems that could result from such a shift. NACS was successful and compliance responsibilities were not shifted through litigation.

CONFIDENTIAL BUSINESS DATA When a newspaper tried to use the Freedom of Information Act to secure confidential business information regarding food stamp usage at specific store locations, NACS and a group of other associations representing stores in the food stamp program sued.

The case went all the way to the U.S. Supreme Court. At that point, the case was led by FMI, which represents the grocery industry. NACS filed an amicus brief. NACS’ position prevailed and the Supreme Court for the first time imposed its view of confidential business information that was protected from disclosure under the Freedom of Information Act. ••• NACS’ extensive use of litigation as a tool to advocate for the industry will remain an important part of its strategy. That doesn’t mean that NACS will win every time. In fact, a perfect track record would likely mean that NACS was not pushing hard enough on the industry’s behalf. Thankfully, there have been significant wins that have vindicated the industry’s position on some key issues. By using the courts in conjunction with its work before the legislative and executive branches of government, NACS hopes to shape policies to make them as advantageous as possible for the continued health and vibrancy of the convenience store industry.

Doug Kantor is NACS general counsel.

IDEAS 2 GO

Locals know the Corner Store as a restaurant that also sells gas and packaged goods.

Name of company: Corner Store Year founded: 2008

Where Community Matters

For Corner Store, catering to its local customers is a top priority.

BY SARAH HAMAKER

# of stores: 3 Website: www.cornerstoretx.com

38 OCTOBER 2023 convenience.org

Corner Store’s slogan of “Where Local Matters” sums up its mission to create a caring community around its stores. “We’re all about our local communities,” said Judy Wall, marketing director for the Seminole, Texas-based company. “We’re really involved in getting to know our customers—that’s what makes our customers rave about our friendly service.”

The three-location chain—with a fourth one in the works to open in 2024—has been emphasizing locals ever since husband-and-wife Bobby and Yolanda Teichroeb

IDEAS 2 GO

purchased the store from its original owner in 2018. The Teichroebs saw the potential to make Corner Store a community hub through its friendly employees, fresh foodservice and grocery items.

Restaurant First The first Corner Store began life as a restaurant in a neighborhood setting about five miles outside of Seminole.

“The previous owner started bringing in produce and milk—the things people didn’t want to drive into town for—and thus it morphed into a convenience store, too,” Wall said.

When the Teichroebs took it over, they also bought the rights to use the recipes for the restaurant’s salsa and hamburgers. “The original owner’s daughter created a salsa recipe people loved, so we still serve that,” she said.

The menu also kept the same items because “when people love something, you don’t change it.”

However, the food offerings have expanded over the years. Among the new offerings are chicken fajita burritos, chicken rings (chicken nuggets shaped like a circle) and breakfast burritos, which have been very popular. “Our newest item is a chicken fajita burrito smothered in queso,” Wall said.

“Our menu continues to evolve as our customers view us as more of a restaurant than a convenience store.”

A local vendor provides prepackaged grab-and-go items like sandwiches and cheeses. “We close our kitchens at 8 p.m., so we wanted to offer some fresh food for our truck drivers and other customers who come in later,” she said.

In addition to the fresh foodservice, the stores stock car scents from a local company, dairy products and dog and cat food, along with the more traditional c-store products of snacks and packaged

beverages. “We sell mugs with our store logo and anyone who brings one in can get 99-cent fountain refills using the mug,” Wall said.

One popular offer is the free coffee, which has been a staple since the Teichroebs took over. “The other thing that makes us unique is we offer hot coffee free all day, every day,” Wall said.

“The owners are very generous and enjoy giving back to our customers.”

Expanding in the Community A few years after purchasing the first location, the Teichroebs opened two more locations, both with fuel options of propane, diesel and gasoline. The larger of the two, a travel center, also offers DEF (diesel exhaust fluid) on pump. “Our travel center is our largest store right now with 5,000 square feet, although our fourth location in Denver City, Texas, will top that with 5,570 square feet,” Wall said.

To generate customer interest, she promotes the chain on social media and through billboards, as well as via its rewards program. “People can show the card or use their phone number to register their purchase,” Wall said. “We wanted to keep it simple for now.”

For all its innovations and products, Corner Store keeps one of its core values front and center—the focus on the customer. “It’s not about you—it’s all about the customer experience,” she said. “We want our customers to feel at home, to feel recognized and valued each time they walk into one of our locations.”

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

BRIGHT IDEAS The three-unit chain partners with local charities such as Bounce Back and Feed My Starving Children to host events and food drives. Recently the company helped to sponsor a truck show by hosting it at one of their locations.

“Thousands of people came out for the trucks, mechanical bull riding, ax throwing and food trucks,” said Judy Wall, marketing director for Corner Store. “We gave out goodies like Corner Store tumblers, notepads, hand sanitizer and mini calendars, which our trucker customers love.”

Corner Store employees also have opportunities to volunteer to serve a nonprofit, such as packing food for Feed My Starving Children. “We allow our employees to participate during their shift or outside of work hours,” she said.

“Our employees love participating. It’s a team bonding experience for them as well as showing our community we care about them.”

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

To see videos of the c-stores we’ve profiled, go to www.convenience.org/Ideas2Go. 40 OCTOBER 2023 convenience.org

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Pani puri is a popular, festive dish in India.

The puff pastries are filled with potato and chutney and dipped in the sauce.

Name of company: Chit Chaat Date founded: July 2021 # of stores: 1 Website: cafechitchaat.com

An Extra Ingredient At the Chit Chaat Café inside a Mobil gas station, the Indian street food comes with a healthy dollop of love.

BY SARAH HAMAKER When Neil Puri began renovating the Mobil gas station in Vienna, Virginia, in 2021, he wanted to offer his customers something they couldn’t get anywhere else— his mother’s North Indian cuisine. “Our son asked us to recreate the Indian street food we loved from our home country,” said his mother, Bindu Puri, who is the chef and makes all the vegetarian dishes for the Chit Chaat Café. His father, Raja Puri, manages the kitchen and makes all the meat dishes.

42 OCTOBER 2023 convenience.org

IDEAS 2 GO

“There’s so much ready-made food available, we wanted to do something different for our gas station customers,” said Bindu. “Many people who hear about how good our food is can’t believe we’re in a gas station.”

The restaurant is hard to find, without much visible signage on the outside of the station. Inside, it offers only takeout, with the Puris working in a small space behind a closed door. That doesn’t stop the crowds from coming.

AN EXTRA INGREDIENT In creating the menu, the Puris had one underlying philosophy—healthy food made with love. “All of our dishes are made without excess butter or oil, and nothing is ever frozen. I also make my own sauces and spice mixes,” Bindu said.

The simple menu starts with samosas, including a burrito version; butter chicken; chili chicken platters; curries; chicken biryani; and pani puri, a popular Indian street dish made with the Puris “super-duper secret spicy water,” which is the condiment for the dish. Daily specials round out the list, but Bindu will often create something off-menu for customers if they ask about a specific dish.

For both Puris, the extra ingredient that flavors all their meals is love.

“When you put love in the food, your customers can tell,” she said. “That’s why they love us.”

The café has garnered a following among younger customers, who tell Bindu her cooking reminds them of the food shared with their families. “I’m like their auntie and Raja is like their uncle—they appreciate us and our meals so much,” Bindu said.

Besides the café, the c-store stocks traditional snacks and ready-made food.

The open floor plan maximizes the footprint with low gondolas and warm wood

tones, creating a cozy and welcoming atmosphere.

WELCOMING THE COMMUNITY The Chit Chaat Café has an active Instagram, Facebook and NextDoor presence, alerting customers to specials and other store news. “But word of mouth is our best advertisement,” Raja said. “We still get calls from people who are not sure we’re serious when we say we’re in a gas station.”

Bindu added, “We’ve had people come in and say they drove by a few weeks ago, but couldn’t believe the café was really inside.”

However, once people do sample the food, they are converted into regular customers. “We have some people who stop by five days a week,” Raja said.

The Puris have been pleasantly surprised by the community’s embrace of the Chit Chaat Café. “We have been honored by the response of the community to our cooking,” Bindu said. “We feel their love as we hope they feel ours.”

For them, the risk of opening a carryout restaurant in a gas station has paid off. “Don’t be afraid of taking a risk, trying something different from everyone else,” Raja said. “You need to put your ideas out there to see what your customers want.”

For their customers, Bindu loves to encourage them to try new menu items.

“We sometimes force them to buy something special and we’ve never had them come back and say it wasn’t good,” she said. “That’s how we treat our customers like family—we look out for them and feed them good food.”

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

Raja and Bindu Puri

BRIGHT IDEAS A quarter century ago, Raja and Bindu Puri left India for the United States and discovered a friendly community in Vienna, Virginia.

“I have never ever seen such a beautiful people,” said Bindu Puri. “This is like a small, family town” Their secret to happy customers at their restaurant has been to treat the customers like family, chatting with them and making special meals. “I always tell my favorite customers, ‘Let me make something special for you,’ and they trust me to make them good food they enjoy,” Bindu said.

“That’s served us well these past two years and kept the customers coming back for more.”

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

To see videos of the c-stores we’ve profiled, go to www.convenience.org/Ideas2Go. 44 OCTOBER 2023 convenience.org

A SLAM In this new era of NIL deals, convenience stores can score big by partnering with studentathletes.

master1305/Getty Images

BY SHANNON CARROLL

46 OCTOBER 2023 convenience.org

FOR C-STORES

I

t’s hard to escape the headlines about the Name, Image and Likeness (NIL) deals in college sports. “LSU gymnast Olivia Dunne makes $500,000 in NIL money for one Instagram post.” “Bronny James has record-breaking NIL deals, is worth $7.2 million.”

“Arch Manning has highest NIL valuation in college football.”

The names are recognizable—and the dollar figures are exorbitant.

So it’s easy for companies to think they’re going to have to shell out hundreds of thousands of dollars to get a collegiate athlete to sign a contract with them.

But they don’t.

As talented and flashy as the athletes with the huge NIL deals are, they represent only a small corner of the NIL market. A number of convenience retailers have found success in the world of NIL at very modest budgets.

NACS OCTOBER 2023 47

University of Tennessee baseball player Maui Ahuna

A ‘NO-BRAINER’ Nicholas Triantafellou, the director of marketing and merchandising at Weigel’s, which has 79 c-stores in the eastern Tennessee region and is based in Powell, Tennessee, calls the NIL market a “no-brainer.”

Triantafellou said he was told by someone in the c-store industry that he could spend $25 million marketing with the Green Bay Packers or he could “find a University of Wisconsin kid for a few grand.”

“Where we’re located, we have no professional teams. It would do me no good to advertise with the Tennessee Titans,” Triantafellou said. Instead, he views Weigel’s NIL partnerships with student-athletes as a way to establish “deeper roots in the community.”

Many Weigel’s stores are near Knoxville, where the University of Tennessee (UT) is located. The school—and that famous orange color—really mean something to people.

That’s why it made sense for Weigel’s to tap into a devoted fanbase. “We just kind of dove in,” Triantafellou said.

Because NIL was so new when Weigel’s was looking to enter the market in early 2022, Triantafellou didn’t know where to start. He would see those headlines about an athlete getting $5 million, which wasn’t within his budget.

Well, he didn’t actually even have a budget.

So he started there. He looked at how much Weigel’s paid a month to be on ESPN streaming’s advertising platform and wanted a deal to be somewhere in that range. (Weigel’s first NIL contract actually ended up being for less than that.)

“Now we’re comfortable having the conversation of, ‘Hey, this is what we pay,’” Triantafellou said. “But we don’t ask for much [from the athlete]. We look for some social, we look for a couple of photoshoots, we’re not doing an autograph set, we don’t do any of that other stuff. So I think what we ask is pretty fair for what we pay.” But the end result is that NIL is “just so much more economical” than other forms of marketing.

Weigel’s typically works with a trusted partner, Bridge Management Group, to help iron out contract details.

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University of Tennessee baseball player Evan Russell

50 OCTOBER 2023 convenience.org

baseball team his freshman year—and so he used his NIL money to help pay for his degree.

Weigel’s tweet announcing the partnership got 1,399 likes and 189 retweets; the company’s tweets generally average about 45 likes.

“We know [the NIL partnerships] are working, because we live in this UT space, and as UT sports go well or the player does well, we are getting engagement,” Triantafellou said. “Community is the biggest focus for my entire team because we don’t exist without [it]. We need to live where they live.”

The store put together an ad where Russell, at the time Tennessee’s starting catcher, delivers items to Weigel’s customers—throwing milk, burgers and other items into the waiting hands of a guy grabbing the paper, a kid sitting in the car, a guy on his run. There was also a campaign with the tagline, “When Evan hits a dinger, you get a ringer.” When Russell hit a home run, patrons could stop into a store with their registered MyWeigel’s Rewards Card for a free ring donut.

After the company’s success with Russell, Weigel’s signed another baseball player, Maui Ahuna, to an NIL deal and put together a #FreeMaui campaign where it offered rewards members various deals, including two hot dogs for $2.22.

Weigel’s has now worked with six college athletes at Tennessee: Russell and Ahuna in 2023, men’s and women’s basketball players

WE NEED TO LIVE WHERE THEY LIVE.”

Willard/Getty Images

FINDING PLAYERS NIL deals range all over the place. Some contracts can start at $1,000, and some college athletes have joked on social media that they would sign an NIL contract for a couple of free tanks of gas. Some contracts are longterm, while others are one-offs. Some bigger name athletes like to do a lot of smaller NIL deals, while others like to do one or two big contracts. Some athletes understand the value of starting small and trying to build a bigger brand. It varies.

For a long time, the NCAA rejected the idea of paying collegiate athletes or allowing them to earn endorsement income. But that changed abruptly in June 2021 after the Supreme Court ruled that, essentially, the NCAA couldn’t bar endorsement compensation tied to a player’s name, image or likeness.

Weigel’s quickly tried to take advantage of what Triantafellou called “uncharted waters.”

He knew the company probably didn’t have the budget to pay Tennessee’s quarterback. So he worked to understand the market and found it was actually pretty easy to sign an athlete whom the school’s fans would care about.

Weigel’s worked with Evan Russell, a local favorite who grew up in eastern Tennessee, as its first athlete in April 2022. He wasn’t a scholarship student—he walked on to the

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Tess Darby and Zakai Zeigler for 2023 and 2024, football offensive lineman Ollie Lane in 2023 and wide receiver Squirrel White in 2024.

Weigel’s is cooking up a secret menu with White, and the company created fun March Madness campaigns for Darby and Zeigler—they showed up at Weigel’s stores and challenged customers to shooting contests.

The stores also had cutouts of the two inside, and people kept expressing interest in buying them; at the end of the season, Weigel’s gave them to customers who made a donation to a local charity.

“It’s a lot of fun,” Triantafellou said.

NATURAL PARTNERSHIPS Midwestern c-store retailer Kum & Go signed walk-on junior transfer football player Jordan Kumm after Kumm sent the company a direct message on Twitter. Jacksons, which has stores across the West Coast, launched football trading card sets with the University of Washington and Boise State University.

And Casey’s recently joined the market, too. The company, which has stores across the Midwest and the South, launched a March Madness partnership with men’s basketball players Kris Murray (University of Iowa) and Tyreke Key (University of Tennessee) and women’s basketball player Sydney Parrish (Indiana University) to launch Casey’s Pepperoni Pepperoni Pepperoni pizza.

A post on Parrish’s Instagram—which has 125,000 followers—shows her walking into a Casey’s to get one of the new pizzas while an announcer says, “Here comes Sydney Parrish. She’s headed to the line, and there’s the handoff! The three is up … and it’s goooooooooood!”

Katie Petru, Casey’s director of communications and community, said it was crucial for the company to find the right brand fit. “You have to start with your brand because you’re giving partners a role in it as they become an ambassador with their key audiences,” Petru said. “Everything we do needs to help us reach new and existing fans. … Great partnerships can work really hard to build brand awareness and love.”

Casey’s focused on leveraging the athletes’ social media presences. Murray has over 52 OCTOBER 2023 convenience.org

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COMPLIANCE IS KEY Because of the ever-changing nature of NIL compliance within the NCAA—senators recently proposed bipartisan NIL legislation that calls for the creation of a central oversight entity—it’s important that companies work closely with schools to make sure everything they’re doing is above board.

“For me, there’s a personal aspect of ‘I better not screw this up or I could ruin this kid’s future,’” said Triantafellou. “We better be absolute in everything we do, in every possible way, shape and form.”

WHEN YOU HAVE DIFFERENT STATES WITH DIFFERENT RULES AND DIFFERENT SCHOOLS WITH DIFFERENT RULES, THAT’S HOW EVERYTHING GETS REALLY TRICKY.” 54 OCTOBER 2023 convenience.org

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30,000 followers on Instagram and almost 10,000 on Twitter; Key has about 7,000 followers on Instagram and 4,000 on Twitter.

“College sports are a huge source of fandom in our markets and with our guest base,” Petru said. “The flexibility and new space of NIL gave Casey’s an opportunity to integrate collegiate athletes into our strategy.”

Petru’s advice is “to focus on the role [NIL] plays within your strategy first, ensure partners are a brand fit and be flexible, because you’re working with student-athletes.”

That’s where people such as Darien Harris, the assistant athletic director for NIL at Michigan State University, come in. Staying abreast of NCAA rules is hard enough, but “when you have different states with different rules and different schools with different rules, that’s how everything gets really tricky,” Harris said.

Once a brand and an athlete finalize a contract, that deal needs to get reported on something such as the app INFLCR, which is used by over 3,500 teams and 7,000 athletes.

Michigan State has its own NIL exchange on INFLCR, which allows businesses to register as members of the exchange and contact student-athletes directly.

Harris said players are a lot more approachable than companies might think. He pointed to an NIL deal Darius Snow, a linebacker for the Spartans, recently signed.

Snow tweeted, “When it comes to this NIL stuff, all I really want is a Darius Snow Cone, if I’m being honest lol.” Michigan-based soft-serve ice cream retailer Spad’s Twisters reached out to him—albeit with some skepticism because the company didn’t think it could afford a deal. But Snow and the softserve purveyor reached an agreement and have created a popular menu item.

“I think people look at those prominent student-athletes who have all the followers and the notoriety, and they think that every single NIL deal has to be that,” Harris said. “A lot of [companies] are afraid to even propose a deal because they think they have to come up with really, really big bucks because of what they’ve heard out there.”

One trend Harris has started to see in the NIL space is women’s sports dominating. “I mean, it’s honestly not even close,” he said.

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James Clawson, the founder of sports marketing and media agency Spyre Sports Group, said, “I think brands are looking for more authentic partners, and it’s just been proven that female athletes are more engaging.”

Female student-athletes tend to have followers who are purchasers, and they have higher social media engagement rates—likes, comments, shares, bookmarks, etc.

DOLLARS AND CENTS While a lot of companies were slow to catch on to the potential of NIL, they’re getting more comfortable with the idea of college athletes being brand ambassadors.

“I think brands now are realizing the cost of entry for most athletes is pretty low,” Clawson said. “It’s relatively inexpensive to test out marketing strategies, like all these different social media campaigns or promotions. They generally have a fun kind of component to them, and I’ve seen a lot of news outlets cover these deals as news stories. So, you know, you’re getting the athlete to do stuff for you, and you’re also getting it covered as a news story. So I think it’s a win-win for the athletes and the brands right now.”

gagement rates because that metric has proven to be more important than follower count when it comes to who will buy a product.

While companies are more willing to enter this market and test the waters, they still want to be careful; college athletes can be prone to mishaps. Spyre Sports recently revised its standard contract to include things such as penalties for not showing up.

“You would think that dollars would make everybody just drop what they’re doing, and that’s not the case,” said Brandon Spurlock, Spyre Sports’ vice president of fundraising and engagement. “We had to learn the hard way on a couple things.”

On the upside, Spyre Sports has seen the value of spontaneity. When a University of Tennessee baseball player had a home run disallowed because the sticker that cleared his bat as legal for use had fallen off, the head coach ranted after the game and referred to the player as Mike Honcho, a nickname for a character from “Talladega Nights.” Spyre Sports created a custom T-shirt playing off the nickname and was marketing it less than 12 hours after the game ended. Clawson said that the player alone earned around $20,000.

“It’s critical to capitalize on moments like that,” Clawson said. “We couldn’t have waited until the weekend was over to sell that shirt. … You’ve gotta be nimble. You’ve gotta have very few processes. You’ve got to make decisions fast.”

The agency has been able to have fun in the NIL realm and thinks companies can, too.

If a company has something it has wanted to try out with professional athletes and in large cities, try it out in college markets, Clawson suggested.

“Sample sizes are smaller, and the process of entry for doing it is a lot cheaper. … There’s no better market to test and experiment with things you want to try.”

Shannon Carroll is a contract writer/editor for NACS. Outside work, you can find her reading—or yelling at the sports on her TV.

56 OCTOBER 2023 convenience.org

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CONSUMERS ARE LOOKING FOR PARTNERSHIPS THAT It helps if there’s some chemistry between brand and the athlete, because consumers DON’T FEEL LIKE THEY’RE the are looking for partnerships that don’t feel like they’re out of left field. Companies are also OUT OF LEFT FIELD. really paying attention to student-athletes’ en-

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Talk to Me The Future of Loyalty Apps

BY SARAH HAMAKER

N

ot that long ago, loyalty programs involved gaining a reward by collecting stamps to fill a booklet or getting a card punched. Most digital rewards programs today still offer some sort of pointsbased system tied to consumer behavior, such as the classic buy nine, get the tenth free offer.

But loyalty is so much more than that, and the uses of a loyalty program are expanding. “The utilization of a loyalty app in the convenience store industry is in its infancy,” said Erik Ogren, president of Patron Points.

“Apps allow retailers big and small so much opportunity to connect with their customers through the power of direct consumer communication.”

“Apps today have a more customer-first mindset than they did in the past,” said Nick Hand, loyalty and brand manager for Parker’s Kitchen, a 76-store chain based in Savannah, Georgia. “Rather than forcing behaviors upon the user, apps are now adapting to how users engage with the platforms.”

APP ALTERATIONS As with most technology, loyalty apps have evolved, and they continue to change to meet fluctuating customer needs. Technological advances also have pushed apps into new territory. “The most successful loyalty apps offer easily updated, relevant and personalized messaging as well as curated information and experiences designed to match guest preferences. Features like real-time fuel pump activation, pay-ahead functionality and incentivized engagement are some of the elements we’re seeing become more important for today’s customer,” said Hand.

Another way loyalty apps have transformed rewards programs has been how “apps give retailers the ability to communicate with consumers in a way we’ve never been able to do before,” Ogren said. “As recently as five years ago, our industry still had the idea that as long as you built your store on a corner with easy access, this was enough to have people shop our stores. … We can no longer wait for them to come to us—we must reach out to them

60 OCTOBER 2023 convenience.org

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Independent Retailers Can Play Too Smaller retailers with one or two locations don’t have to sit on the sidelines in the loyalty app game—they can play too, according to technology suppliers. “Apps have become more affordable over the past few years, which has allowed one- or two-store owners the ability to market on the same level as their larger competitors,” said Erik Ogren, president of Patron Points.

Jake Kiser, chief customer officer with Stuzo, pointed out retailers can even skip the app altogether and start with a phone number/ SMS-based program and a mobile web experience to target offers without requiring any app downloads. “This enables the retailer to avoid the constant and expensive maintenance that Apple and Google app stores mandate for security, software visioning, user experience and hardware compatibility while delivering what your customers want—to engage with you and purchase something at your store,” he said.

For those who want to use an app, “First consider what outcome you want to gain from the app, such as the customer visiting your store more often,” Kiser said. “That should drive your decisions about what kind of app you need.”

Ogren added, “When looking for an app provider, these independent retailers should look for a company that has the support, services and experiences that can help drive the success of the app after launch.”

directly on a personal level and invite them in a meaningful way to visit our stores.”

Jack Kiser, chief customer officer with Stuzo, pointed to the ability customers have to enroll in a program via a mobile phone number, with the company then able to engage via SMS without needing an app at all, as a significant advancement in loyalty programs. “Another major change has been the varying degrees of personalization, from broadly personalized— based on general conditions, like location or weather—to hyper-personalized based on specific member data,” Kiser said. “Plus, now you can use digital payments to pay for gas at the pump and merchandise inside, as well as order ahead for pickup or delivery.”

At Parker’s Kitchen, Hand pays close attention to new integrations and next-generation technology by working with industry leaders in loyalty and tech development. “We want to make sure we’re providing the best and most valuable loyalty app experience possible to our customers,” Hand said. “As a company, we have always been extremely focused on using technology to enhance, support and optimize the overall customer experience. The Parker’s Rewards app serves as an important extension of our ongoing commitment to customers and reflects our overall desire to anticipate and exceed the changing needs of our customers over time.”

62 OCTOBER 2023 convenience.org

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“Apps today have a more customer-first mindset.”

BREAKING DOWN DATA While loyalty cards do provide retailers with information about customer habits, it’s generally not as robust as the data from apps. “Data analytics from apps allows us to specifically answer the age-old questions of who, what, where and when,” Ogren said.

For instance, app data can give retailers details on who used which coupons and what supplemental products were purchased at the same time, plus at what time and date and at which location the transaction happened.

“Retailers can now offer specific deals, coupons and promotions to very specific consumer groups directly,” Ogren said. Using the example of a digital coupon of $2 off a personal-size pizza for a certain week, after the promotion, the retailer could learn the following information: • Which customers used the coupon • What day was the biggest redemption day of the promotion (for example: Thursday) • What were the top ancillary items purchased with the pizza (for example: bag of chips, 20-ounce packaged diet soda) • Which location logged the most redemptions (for example: store No. 3) “This information gives the retailer the ability to build additional promotions because they know how the customer engaged in the pizza coupon promo,” he said. “Now this retailer can send more value-driven promos to the subset of their customers who participated in the promo.”

App data also allows retailers to take customization a step further. “The vast majority of loyalty programs nowadays broadly personalize based on segments of members with lookalike behavior,” Kiser pointed out.

“The more sophisticated and successful programs are hyper-personalizing the member experience with offers, calls to action and digital experiences that are highly relevant on an individual level based on the products, store locations and personal preferences that matter to each member.”

For example, if Retailer A knows that a particular member buys 50% of their fuel from them and 50% from Retailer B, Retailer A can offer that member an increased incentive to purchase the additional fuel from them, rather than Retailer B. “This is highly effective at steering incremental fuel wallet share and is also hyper-relevant to the member, leading to a better member experience and more positive sentiment,” Kiser said.

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WHAT’S NEXT For loyalty apps, data analytics will continue to grow in importance. “For a retailer to digest the tremendous amount of user data that is available in the app’s back end—and to be able to utilize that data in a very laser-focused manner to reach the consumer on an intimate level—is the next level for loyalty apps we’re just now starting to realize,” Ogren said. “This data will allow retailers to better understand how consumers are utilizing specific apps, and in turn to deliver value-driven promotions and product offerings that are unique to specific consumers.”

64 OCTOBER 2023 convenience.org

Parker’s Kitchen sees loyalty apps as an important piece of the overall customer experience. “The ultimate goal is to create a frictionless experience that allows the customer to take advantage of everything the brick-andmortar store has to offer from the convenience of the phone in the palm of their hand,” said Heather Davis, senior director of marketing and food service for Parker’s Kitchen.

Kiser pointed out the scaling up of what’s already happening now—the movement of programs beyond the app to SMS or mobile web. “This approach enables retailers to expand their total addressable member opportunity and increase loyalty penetration at rates much higher relative to limiting a program to a native mobile app,” he said. “Add to that what we see as the next big evolution of hyper-personalization, where retailers will be able to deliver true one-to-one personalized offers on a member-by-member basis and at the member level on a product-by-product basis.”

“If convenience companies want to continue to stay top of mind for customers and encourage them to use their loyalty apps, they’ll need to integrate the functionality and ease that users already expect from apps from other industries, from airlines to rideshare companies,” said Davis. “Apps will continue to evolve in 2024 and beyond, offering contactless payments that are strategically integrated with all providers, pay-ahead features, streamlined online ordering and easy redemption of rewards for instant value.”

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

violetkaipa/Getty Images

“The ultimate goal is to create a fric­tionless experience.”

Personalization is valued by loyalty members when it relates to rewards and discounts, but retailers should be careful because asking loyalty members for too much information could be considered intrusive, according to a loyalty report from NACS. Parker’s Kitchen studies app data on a regular basis to improve the experience of its customers. “We strategically curate our loyalty app content based on customer preferences, opt-ins and behaviors, which helps reduce noisy marketing clutter while making sure that actionable items are relevant and customized for that user,” Hand said. “We can also analyze usage statistics to determine fall-off points in desired customer journeys, which allows us to optimize guest value experiences through our loyalty app.”

Unlike loyalty cards alone, apps give consumers the ability to pre-shop the store before walking inside, such as ordering foodservice items for pickup. Consumers also can load digital coupons in their digital wallet for easy retrieval during checkout. “This allows the consumer to remember what they want to buy at the store as well as speeding up checkout time,” Ogren said. “Apps have allowed consumers to truly experience the meaning of convenience in c-stores, which entices them to want to shop specific stores even more.”

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to Boost Your Beverage Business Teas, customization and drinks-only retailers are impacting the traditional c-store beverage business.

BY PAT PAPE

NACS OCTOBER 2023 67

AMERICANS HEART ICED TEA Although tea itself is nearly 5,000 years old, the United States is credited for inventing the tea bag and popularizing iced tea. It’s the only country that consumes most of its tea chilled (about 80%), according to the Tea Association of the USA.

In Texas, iced tea is big business—Texans practically sweat iced tea. It’s why several retailers in the state are capitalizing on their customers’ thirst for the beverage—sweet or unsweet.

Fort Worth-based HTeaO is a “QSR beverage-only store” with a drive-thru, according to CEO Justin Howe. “We wouldn’t consider ourselves a competitor to the convenience store by any stretch, although there is a convenience factor,” said Howe. “We sell 26 flavors of iced tea and lots of it. It’s high-quality, fresh-brewed, broad-leaf tea that we make in-house all day every day.”

HTeaO purifies its water with a reverse osmosis system and then, according to the store, polishes the water with minerals to make its tea stand out. The store also uses the same water for its ice, which comes to order, either cubed or crushed.

There’s also a secret menu on HTeaO’s website with flavors like cotton candy, violet or wedding cake. One thing customers won’t find at stores are tables and chairs—HTeaOs are for grabbing iced tea on the go.

When Starbucks began selling coffee in a freestanding walk-in café, “Everyone said ‘These guys are idiots. They’re just selling coffee.’ But that’s what we’re doing,” Howe said. “We took iced tea out of the chicken restaurant and made it the primary focus for our entire existence.”

Today, HTeaO has 80 stores, mostly franchised, located in Texas, Oklahoma, New Mexico, Florida and Kansas, and another 100 under construction.

Would an iced tea-only concept work in a colder region? “We decided that Interstate 40 is probably our northern boundary,” Howe said. “But we have stores in Wichita, Kansas, so we’re already violating that rule.”

Consumers love iced tea.

That’s why two Texas-based companies are betting that their tea-focused drive-thru stores will be a big hit.

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UserGI15966731/Getty Images

E

ver since the first red metal soda box was placed in front of a neighborhood grocery store, retailers have relied on beverages to attract customers and increase sales. That continues as today’s health-conscious shoppers seek new forms of refreshment. Here are six trends that are taking off in both convenience stores and emerging drinks-only retailers.

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BUBBLE TEA Cold, sweet bubble tea, also known as boba tea and pearl milk tea, appeared in Taiwan in the 1980s and was an immediate success. The word “boba” refers to a broad category of chunky drinks, according to Eater, which includes “everything from iced tea with tapioca pearls to fresh juice loaded with fruity bits.”

The drink’s popularity has spread. According to IBISWorld, there are now more than 3,600 bubble tea shops in the United States,

an increase of 21.2% over 2022. Available in 200-plus flavor combinations, bubble tea features the health benefits of green and black teas. Originally marketed to females, the drink is starting to win male fans.

In May, Sheetz announced that its mango-flavored boba tea, with popping pearls as opposed to the traditional tapioca pearls, would roll out to all its stores. Wawa sells “popping bubble” tea in flavors like dragonfruit lemonade and mango lemonade.

Don’t be surprised if more convenience retailers jump on the bubble tea trend. Allied Market Research says the bubble tea market, valued at $2.4 billion in 2019, will hit $4.3 billion by 2027.

CRAFT SODAS Two years ago, Pennsylvania-based Rutter’s gave customers more choices at the fountain by adding craft drinks from Sunny Sky Products in flavors like pineapple cream and homestyle lemonade. The retailer also offers its proprietary birch beer at the fountain. The non-alcoholic drink is a carbonated soda made with herbal extracts and birch bark, said Chad White, food service category manager.

Whether canned or from the fountain, craft sodas are made in small batches using natural ingredients and cane sugar instead of high-fructose corn syrup. As a result, consumers haven’t balked at paying a higher price.

“Craft sodas mix natural flavors and unique flavors, creating an attractive pairing for younger consumers who are seeking betterfor-you options with flavor combinations that still feel somewhat familiar,” said Isabel Atherton, director of marketing for Sunny Sky. “Craft soda at the fountain allows c-stores to expand dispensed beverages beyond leading national soda brands, not to displace but to offer a complementary alternative.”

For now, the craft soda category is small compared to carbonated soft drinks. In 2021, the size of the global craft soda market was valued at $651.3 million, according to Grand View Research, but it’s expected to grow at a compound annual growth rate (CAGR) of 5.0% through 2030.

ugurv/Getty Images

If I want to double my customer count tomorrow, all I have to do is run a special on tea.”

Lubbock-based Tea2Go TeaN’ergy is another drive-thru focused on tea, along with propriety energy drinks. “We have 45 different loose-leaf teas that we brew in the store and sell for take-home use,” said Stephanie Chavez, CEO. “People are so health-conscious now, and tea is an alternative to soda, but we do have a tea with carbonation that tastes like a cherry-flavored soda.”

Chavez is sold on the positive benefits tea provides. “Oolong tea helps break down carbs and sugars. Green tea and white tea are high in antioxidants,” she said. “We have all types of herbal teas that target certain health issues.”

When Chavez acquired the business in 2018, the chain had five stores. The company began franchising in 2019 and now has 35 locations, all in Texas. Tea2Go is moving into Colorado and New Mexico and plans to have 50 units by the end of this year.

At Curby’s Express Market, based in Lubbock, customers will find 20 linear feet of iced tea. Along with standard black tea, the retailer sells 20 different tea flavors, such as apple pie and blackberry jasmine, and each beverage is available sweet or unsweet.

“I have 40 tea dispensers and a team that makes iced tea all day,” said Tony Sparks, head of customer wow for Curby’s. “In the summer, we sell 600 to 800 teas a day. One Wednesday, we did a 24-hour promo where we offered a cup of iced tea for $1, a half gallon for $2 and a gallon for $3. All we did was announce it on social media that morning, and we went from 700 customers to 1,300 in one day. If I want to double my customer count tomorrow, all I have to do is run a special on tea.”

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MADE TO ORDER Self-serve coffee is fast and convenient for consumers and retailers. Starbucks helped pave the way for the reality that even the busiest customers are willing to wait for a cup that’s made exactly how they want it.

At Curby’s, discerning customers can get a cup of coffee made to their specifications with a variety of flavors, toppings and addins. “Our menu depth is about the same as Starbucks,” said Sparks. “But all our growth is coming from the other stuff that Starbucks doesn’t do.”

Curby’s customization doesn’t stop with coffee. The chain also offers a generous selection of proprietary energy drinks and sodas.

“Our beverage sales far exceed what we thought they would,” said Sparks. “And our customer experience is different from that of the traditional c-store, which is one reason we skew heavily with women.”

Rutter’s also offers made-to-order hot and cold beverages, which “broadens the reach of our program,” said White. The chain uses high-quality ingredients but keeps drink prices competitive. “This has allowed us to gain customer traction in this category and build out the program even more,” he said.

MOCKTAILS Last year, sales of no- and low-alcoholic beverages that are traditionally alcoholic jumped by more than 7% in volume across 10 key global markets and topped $11 billion in market value, according to IWSR Drinks Market Analysis. That’s up from $8 billion in 2018.

These pronouncements aren’t lost on Chavez of Tea2Go. “We’re working to be one 72 OCTOBER 2023 convenience.org

BEVERAGES IN BULK Cans, cups and bottles are great, but if you’re serving a crowd, you need a bigger container.

Few convenience stores offer bulk beverages, but that service is proving profitable for some retailers.

Today, 56 Rutter’s stores sell frozen Spiked Slushies in 20-ounce cups and also in 64-ounce and 128-ounce containers for parties and events. The drinks come in several flavors, ranging from assorted fruity margarita-styles to a version made with wine.

Sip Fresh, a new beverage-only chain with outlets in Arizona and California, offers fresh juices prepared in-store by employees known as “sipistas.” Customers may purchase individual servings or one-gallon and two-anda-half-gallon barrels of the juices for meetings and parties.

This marketing concept has legs, according to White. “We’ve looked at other options to sell in bulk but have not made any moves,” he said. “With online ordering and mobile becoming more prevalent, this will certainly become more of a priority.”

Positive consumer response to today’s beverage innovations, plus the growth of beverage-only outlets and Curby’s own success with enhanced and customized beverages, has Sparks thinking.

“When I attend foodservice conferences, there is very little discussion of the beverage part of foodservice,” he said. “But I expect that to change. Everyone has been saying that through foodservice, c-stores will drive more traffic. But I believe that beverages will drive traffic and help food sales—not the other way around.

“Consumers change up the places where they eat every week, but where they buy their beverages doesn’t really change,” he added.

“We’re growing our heavy-user customer base through drinks, not 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.

Sanjatosic/Shutterstock

We’re growing our heavy-user customer base through drinks, not food.”

of the first drive-thrus to have a tea-based mocktail option,” she said. “By the first of next year, we’ll have more of an idea of what we’ll be doing. We have a passion for tea, but it’s a business.”

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THC Legalization:

What It Means in One State

BY MELISSA VONDER HAAR

O

n July 1, 2022, Minnesota passed a law regarding hemp-derived THC products. Unlike the 15 states that have banned Delta-8 sales by law or administratively, Minnesota took a more permissive approach, especially when it came to which retailers can sell hemp-derived THC. The rule allowed low-dose edible hemp-derived THC products to be sold at mainstream retailers, including convenience.

Don’t let the “low-dose” label fool you: The 5 mg of THC per-serving threshold set

by Minnesota effectively allowed retailers to sell edibles at an intoxicating level similar to what’s found in a dispensary. Minnesota followed the lead of states like Louisiana, where dispensary-level servings of hemp-derived

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edibles are also allowed (though Louisiana’s state senate is attempting to roll back those permissions).

“One of the beneficiaries is convenience stores as well as minorities and other communities that have traditionally been left out,” said Lonnie McQuirter, director of operations for Minneapolis-based 36 Lyn Refuel Station.

“Hopefully Minnesota leads as an example of what good policy looks like.”

While many cited the rushed nature of the 2022 hemp law, when the state passed a broader adult-use cannabis law this summer, it doubled down. Under the 2023 law, retailers will continue to be able to sell low-dose hemp THC edibles so long as they register with the state and collect taxes on them.

Here’s a look at how Minnesota’s THC law came to be, how retailers in the state are already benefitting and what it means for the future of cannabis in convenience.

Visualistka/Shutterstock

Minnesota’s low-dose edible approach opens the door for mainstream retailers to sell THC.

NACS OCTOBER 2023 77

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That 5 mg serving is very similar to what’s offered in dispensaries selling marijuana products: “Our consumer insights data shows that most consumers, even experienced ones, they don’t want a 50 or 100 mg edible,” says Mitchel-Chesebro. “It’s that 5 to 10 milligram range that most people are looking for.”

By allowing for 5 mg of hemp-derived THC—which should be noted requires a lot of hemp to achieve—Minnesota opened up a new (legal) opportunity for retailers previously locked out of that space.

McQuirter believes the legislators in his state understood (or came to understand) that hemp-based THC products were already in the market. Attempting to ban them now would only fuel illicit activity.

“I sometimes struggle to give any politician credit, but one of the things they were mindful of when it came to the taxation and the licensure of edibles was that there exists a market already—it’s just not a legal one.”

There was initially a good deal of confusion about how the hemp law came to pass, with some accusing it as happening in the 11th hour and even state representatives wondering if they had accidentally legalized marijuana. When the amendment unanimously passed the Minnesota House, Sen. Jim Abeler (R) joked “that doesn’t legalize marijuana?

We just didn’t do that, did we?”

Yet when the state did legalize marijuana this summer with HF 100, it doubled down on the low-dose hemp-based THC edibles rule: expanding it to allow liquor stores (who were previously not allowed to sell) into the space and requiring retailers selling hemp-derived THC to register with the state and start collecting taxes.

The opportunity for convenience retailers to sell THC is absolutely a win—but experts warn that there will be a process to doing so.

“The law from last year and this new law should not be taken to mean that any old retailer that wants to sell these products can do so,” Havens said, citing registration, labeling, manufacturing and other requirements outlined by the state. “Minnesota has created a runway for the non-dispensary retail sale of hemp-derived THC products. Not an unregulated runway, but a runway nonetheless.”

viennetta/Getty Images

THE SURPRISING ROAD TO THC LEGALIZATION IN MINNESOTA The first thing to understand when discussing cannabis regulations in Minnesota is that there were actually two important bills: one regarding hemp-derived THC edibles and updates included in the broader cannabis legalization bill.

The hemp-derived bill, Minnesota Statute 151.72, passed on July 1, 2022, allowed the sale of what the state defined as hemp-derived “edible cannabinoid products” (including beverages) so long as certain standards were met. Specifically, non-dispensary retailers were limited to “low-dose edibles,” meaning products containing no more than 5 mg of hemp-derived THC (such as Delta-8 or Delta-9) per serving and no more than 50 mg of hemp-derived THC per package.

“We have seen several legal states try to restrict Delta-8,” added Brendan Mitchel-Chesebro, an analyst for the cannabis market research firm BDSA. “Minnesota is a unique case.”

What makes Minnesota truly unique is that 5 mg/50 mg threshold.

“Minnesota surprised many by taking this forward-looking approach to how to regulate hemp-derived THC products,” said Jonathan Havens, a partner at Saul Ewing Arnstein & Lehr LLP who has advised a number of cannabis brands and retailers. “Most other states follow the standard set forth in the 2018 Farm Bill—that products contain 0.3% THC or less.

But they don’t address amount per serving.”

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Confused About Hemp vs. Cannabis vs. Marijuana vs. THC? You’re Not Alone A note from the author

Yarygin/Getty Images

Minnesota legislatures weren’t the only ones struggling with what their legalization bills did and didn’t do: in the eleventh hour of this story, which had originally been about how Minnesota was in fact going to allow marijuana sales at convenience, I got this note back from my legal expert in all things cannabis, Jonathan Havens.

(Paraphrasing Jonathan) “Melissa, Minnesota didn’t legalize marijuana edibles, just hemp.”

(Me) “Really? Because here’s a link to a story from (insert major news outlet I won’t call out by name) that explicitly said grocery and convenience stores will be allowed to sell marijuana edibles in 2025.”

(Jonathan, consulting with other experts at his firm) “Yeah, I’m pretty sure they confused marijuana and hemp. The law clearly allows only hemp at non-dispensaries.”

Cut to a sizeable edit to this story as well as a rerecording of the NACS Convenience Matters podcast.

All of which exhibits the continued confusion in this new space of cannabis (or hemp, or marijuana, or THC) depending on who you talk to. The terms “cannabis” and “marijuana” tend to be interchangeable and people often fail to distinguish between hemp-derived THC (federally legal … or at least legal-ish) and marijuana-derived THC (federally illegal).

To recap for anyone who might need it (which apparently includes this major news outlet that still has a story up saying Minnesota will allow marijuana sales at grocery and convenience): • Cannabis: Genus of medicinal, recreational and fiber plants • Marijuana: A plant in the cannabis family, known to contain large amounts of the intoxicating compound THC Federally illegal.

• Hemp: A plant in the cannabis family—federally legal so long as it contains less than 0.3% THC. • THC: Tetrahydrocannabinol, an intoxicating compound (or cannabinoid) that is naturally found in marijuana or hemp—or can be synthesized (i.e., Delta-8 THC).

So far, convenience retailers are only (sometimes) allowed to sell hemp-derived THC.

TESTING THE THC WATERS Minnesota retailers like McQuirter are well down that runway when it comes to hemp-derived THC edibles, legally selling low-dose products in their stores.

One major challenge has been education of both store staff and consumers, especially in regards to how edibles work.

“It’s not like drinking a beer or taking some pain meds,” McQuirter said. “The chemicals take longer for you to metabolize.”

Fortunately, McQuirter said his staff is pretty excited about the opportunity and eager to learn. To better understand the flavor profile of some of the products offered, McQuirter tries to get “virgin” (THC-free) samples for his staff to try.

Another major challenge is age-gating.

Selling age-restricted products is nothing new for the channel, but age-gating is particularly important for demonstrating cannabis can be responsibly sold outside of dispensaries. For McQuirter, this means keeping products behind the counter and embracing TruAge technology.

“It’s really pretty frictionless,” he says, adding that his store had 100% compliance on cannabis sales (as well as alcohol and tobacco). “As soon as you swipe it, it’s already pulling up whether it’s the right age or not.”

Though it’s early days, McQuirter says his hemp-derived THC sales have been impressive.

“It has certainly made up for our decline in the traditional combustibles in tobacco last year,” he said, reporting his edibles customers buy between $75-$400 worth of product on a regular basis. “That definitely helps on the revenue side.”

BDSA data shows that convenience may be particularly suited for cannabis products due to the ease of location: Mitchel-Chesebro said “one of the biggest drivers of where people get their cannabis is just where it’s convenient for them. Is it close to my home or my office or my gym? That’s where people are going to be buying it.”

McQuirter has seen this play out in his store.

80 OCTOBER 2023 convenience.org

BDSA data on why cannabis shoppers choose a given location to purchase cannabis supports the idea that convenience stores could be a desirable location for many consumers.

What are top shopping location choice drivers for cannabis consumers?

• 36% say lowest prices • 35% say location convenience: “a location that is convenient to my home, workplace, or other destinations” • 33% say trustworthiness • 27% say offering their chosen brands, strains and products Source: BDSA Consumer Insights, US adult-use markets, Spring 2023

“One of the surprising things has been where someone is willing to try a product,” McQuirter said. “When their chosen outlet to go purchase these products isn’t the co-op, isn’t the neighborhood grocery store—it’s the convenience store.”

LOOKING TO THE FUTURE As exciting as the opportunities in Minnesota and other states with permissive THC laws are, we’re still a ways off from full cannabis sales at convenience. But data from other states that have legalized suggests having more retail locations early on will benefit the state of Minnesota.

For any state that attempts to ban products like Delta-8, illegal sales have been a problem.

“With the adult-use markets, we have a pretty good sample of what works as far as cutting into that illicit market and what doesn’t,” said Mitchel-Chesebro, pointing to New York and Missouri as examples.

In New York, priority was placed on social equity—which resulted in a very slow roll out of retail locations. In the interim, hundreds of unlicensed stores opened, selling (and continuing to sell) untested and untaxed marijuana products without penalty. “New York’s seen really slow sales for a new market,” Mitchel-Chesebro said. “They have a huge problem with their illicit market.”

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Missouri took a different approach: The state legalized in December 2022 and opened over two hundred adult-use dispensaries in February of 2023.

“Missouri saw (cannabis) sales triple month to month,” said Mitchel-Chesebro. “That can tell you something about what retail availability does to cut into the illicit market.”

Granted, BDSA data tracks marijuana sales at dispensaries. But a prohibition or limiting of hemp-derived THC sales will also fuel a black market of those products. By comparison, Minnesota is now collecting tax revenue on hemp-derived THC edibles. It’s possible that if Minnesota’s more permissive retail stance works to curb black market sales and/ or raises impressive tax revenue, other states may use the North Star State as a blueprint.

Certainly the process of how Minnesota’s hemp and cannabis bills came to be should serve as a blueprint for retailers: McQuirter said retail engagement played a huge role in the positive outcome of both bills.

“A lot of the groups convenience retailers are affiliated with had a really active voice with a lot of the policymakers,” he said, adding that state representatives were very open to meeting directly with retailers.

Another example retailers should replicate for future THC opportunities: demonstrating the industry’s excellence in age verification of cannabis and other products.

“Our industry takes responsible retailing seriously and we appreciate that opportunity to participate in this emerging market in Minnesota,” said Jon Taets, director of government relations at NACS. “We hope that this market will serve as an example of how the convenience retailing industry can partner with states as they explore new legal product sales such as cannabis.”

“We don’t want to miss out as convenience operators in the markets that it makes sense,” McQuirter adds. “There is an opportunity for convenience stores to really demonstrate that we are one of the best outlets for selling these types of age-restricted products.”

Melissa Vonder Haar is the marketing director for iSEE Store Innovations. Follow her on Twitter at @iSeeMelissaV.

Ivan-balvan/Getty Images

The Case for Cannabis at Convenience

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When It Comes to

BY AUTHOR NAME

CANNABIS, Maximizing Success Body intro lead in, body copy

Begins With Mitigating Risk

BY JOEL CHAPPELLE

T

hroughout the United States, the legalization of cannabis—in particular, hempbased edibles (e.g., gummies containing CBD or Delta 8 THC)—has facilitated the rapid emergence of an extraordinarily large marketplace featuring an ever-expanding array of novel products and offerings. In just three years, the U.S. cannabis market has grown from approximately $7.7 billion to over $13 billion. Moreover, cannabis market growth is projected to continue at an estimated annual rate of 15%. Convenience stores are uniquely positioned to capture a substantial share of the profits that will accompany this remarkable growth.

I am an attorney who specializes in assisting food and cannabis companies navigate the myriad legal, safety and operational challenges relating to cannabis. Over the years, I have helped clients work through every step of the process, from seed to sale,

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including hazard analysis, supplier approval, licensing, regulatory compliance, labeling and retail marketing. For the most part, industry has done an extraordinary job of ensuring product safety, often despite a lack of clear and sensible regulations. Unfortunately, as in any industry, there are actors for whom safety is an afterthought. This article is intended to guide retailers in identifying and minimizing the risks associated with marketing cannabis products.

The successful sale of cannabis products is predicated upon a clear understanding of the complexities surrounding product safety, supplier verification, labeling claims, legal/ regulatory compliance and civil liability.

Indeed, the legalization of cannabis is without historical parallel. No industry has ever achieved such rapid growth amidst so much legal and regulatory controversy. Indeed, regulators and legislators are simply unable to keep pace with industry innovation and consumer demand. The result is a confusing patchwork of laws that vary dramatically from one jurisdiction to the next.

Paul’s Lady/Shutterstock

Selling legal cannabis products is a huge opportunity, but it calls for a careful approach.

NACS OCTOBER 2023 85

Even now, despite the ubiquity of cannabis-based edibles offered for sale across the U.S., most of these products are illegal under federal law. And between the states, the rules and regulations governing cannabis products are as varied as the products themselves. In the bizarro world of contemporary cannabis law, there are places throughout the U.S. where what may be legally sold on one side of the street would be a felony if sold on the other. Of course, this is to say nothing of the civil liability risk, where class-action lawsuits and consumer protection claims create yet additional significant risk.

Suffice it to say, convenience store operators who want to share in the often-lucrative profits associated with cannabis products must also carefully consider the risks and uncertainties. This article focuses on five key aspects of marketing cannabis edibles: product safety and quality, supplier verification, labeling claims, regulatory compliance and risk mitigation.

No industry has ever achieved such rapid growth amidst so much legal and regulatory controversy.

Creative-Family/Getty Images

PRODUCT SAFETY AND QUALITY The utmost priority for any company aiming to enter the market should be product safety.

While it’s crucial for convenience stores to prioritize obtaining products from reputable, licensed suppliers who uphold rigorous quality standards, this is just one facet of the larger safety picture. Responsibility for ensuring the safety of cannabis edibles doesn’t lie solely with the supplier; they are just a single link in the chain.

Different products come with different risks. In most cases, those risks are readily apparent. In the case of cannabis edibles, the risks are largely unknown or misunderstood by consumers because the products tend to be new and are often unfamiliar, and rules vary in different locations. This challenge applies to both customers and employees. Consequently, any convenience store marketing cannabis products should prioritize risk awareness and training. This can be accomplished through careful product selection, rigorous employee training, secure product placement and consumer education.

Thoroughly training the staff plays a pivotal role in mitigating risks. Training should include the significance of age verification, responsible dosing and identifying signs of potential misuse or abuse. Establishing comprehensive internal protocols for handling cannabis sales can protect both the store and its customers. Continuously educating staff about ever-changing regulations and safety protocols will greatly contribute to cultivating a culture centered around compliance and consumer safety.

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Thoroughly training the staff plays a pivotal role in mitigating risks.

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es, processing rules and advertising restrictions, among many others. Adherence to all applicable legal obligations is an important step in safeguarding the store from legal and civil penalties and helps to ensure long-term sustainability.

One often-overlooked aspect of compliance is the rigorous tracking and reporting requirements imposed by regulatory agencies in some jurisdictions. Although much more commonly applicable to dispensaries selling marijuana products, as opposed to federally legal hemp-based products, it is worth checking the requirements where you are. Maintaining meticulous records of inventory, sales and supplier transactions is also helpful during compliance audits, ensuring traceability and demonstrating the store’s commitment to accountability. If your store is in a jurisdiction that requires tracking, automated point-of-sale systems that integrate with state or country cannabis tracking systems can be very helpful in streamlining the process of reporting and will minimize the potential for errors.

SUPPLIER VERIFICATION The process of selecting cannabis suppliers requires both careful vetting and ongoing verification. Performing supplier due diligence is among the best ways to ensure that the cannabis products you offer meet or exceed industry standards and best practices.

Supplier verification activities for cannabis edibles are similar in many respects to those any food supplier would be subject to. They may include conducting independent audits that evaluate and ensure the implementation of good manufacturing practices; mandating rigorous testing to ensure products are free of contaminants, such as pesticides, heavy metals and pathogens; and ensuring that the edibles are produced in compliance with applicable safety and quality regulations.

Convenience store owners should assess prospective suppliers to ensure they are licensed, certified and in compliance with applicable regulations and utilizing best practices. Likewise, maintaining transparent and open communication channels with suppliers allows for ongoing collaboration and exchange of critical information regarding product safety and quality, as well as regulatory updates. Making regular on-site visits to supplier facilities enables store owners to witness cultivation practices firsthand, ensuring ethical and sustainable sourcing.

Drazen Zigic/Getty Images

LEGAL AND REGULATORY COMPLIANCE Navigating the legal intricacies of cannabis products is challenging but important. Convenience stores must stay current with evolving cannabis laws and regulations at the local, state and federal levels. This may require engaging consultants who are well-versed in cannabis regulatory requirements and who can assist the store in meeting and understanding compliance requirements.

Staying current is especially important for retailers operating across multiple jurisdictions. Again, what is legal in one jurisdiction may be illegal in another. Moreover, compliance requirements span a wide range of subject matters, including age restrictions, licensing requirements, product taxation, labeling requirements, cannabinoid toleranc-

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Unfortunately, there are still plenty of opportunistic, purely profit-driven entities out there seeking to leverage the lack of regulatory clarity and oversight to sell products that are often not what they purport to be. Thus, it is important to remain especially vigilant with respect to suppliers of cannabis edibles.

Fortunately, it is easier than ever to distinguish reputable suppliers from the irreputable. With appropriate due diligence, you can significantly reduce the risk to both your customers and your bottom line.

ACCURATE LABELING CLAIMS Accurate labeling is among the most important emerging issues in cannabis. It is difficult to overstate how important labeling is. Cannabis edibles must have clear and accurate labeling, providing consumers with essential information about potency, dosage and usage instructions. Convenience stores should ensure that product labels comply with all relevant legal requirements, including THC/CBD content, allergen warnings, ingredient and nutrition panels, and expiration dates. Just as is the case with foods, misleading or false labeling claims can result in severe legal consequences, damage to the store’s reputation and, most importantly, harm to consumers.

In addition to regulatory legal peril, which may include fines, product seizures, opera90 OCTOBER 2023 convenience.org

MOVING FORWARD As convenience stores consider entering the cannabis market, it is exceedingly important to do so using a risk-based, safety-centric, deliberative approach. By focusing on product safety and quality, legal/regulatory compliance, effective supplier verification procedures and labeling accuracy, convenience store owners and operators can significantly mitigate risks and protect consumers while still enjoying the substantial upside offered by cannabis products. Prioritizing consumer safety and trust is not only the right thing to do but is necessary to ensure long-term success. By partnering with reputable suppliers, adhering to strict labeling guidelines and ensuring compliance with ever-changing regulations, convenience stores can confidently enter the cannabis retail space and contribute to the responsible growth of this emerging market.

Attorney Joel Chappelle has more than a decade of experience assisting food and cannabis companies solve their most pressing legal and regulatory challenges.

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Cannabis edibles must have clear and accurate labeling, providing consumers with essential information about potency, dosage and usage instructions.

tional suspensions and licensing revocation, consumer protection lawsuits may pose an equally dire threat. For years, the number of consumer protection lawsuits involving cannabis edibles has continued to increase.

Often, these sorts of claims are not insured and can thus put retailers in grave financial jeopardy. To mitigate the risk of such lawsuits and claims, it is important to carefully review product labels and confirm compliance with labeling regulations before offering products for sale. Likewise, contracts containing liability-shifting provisions can provide an additional layer of protection.

Relatedly, there is significant variability in the potency and effects of different cannabis edibles. Factors such as serving size, cannabinoid content and processing methods can all impact how a given product might affect the consumer. Likewise, physiological differences between consumers can create additional variance. Convenience stores should take these considerations into account and implement measures to ensure consumers are aware of what they are purchasing, especially when the products contain impairing cannabinoids such as Delta-8 THC. Educating customers at the point of sale can be helpful in ensuring customers make informed decisions based on their preference and needs.

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50% To buy gas

8% To use the bathroom/ATM

18% To buy a beverage

7% Other (for example, tobacco)

17% To buy food/ meal/snack/gum

What did you do inside the store?

(Multiple responses permitted)

45% 43% 32% 28% 22% 20% 17% 13% 13% 12% 10% 8%

Paid for gas at the register Bought a drink (coffee, fountain, packaged) Bought a snack Bought cigarettes Used the bathroom Bought lottery tickets Used the ATM Bought beer/wine Bought a sandwich/meal Bought fill-in groceries Bought gum/mints Just browsed/none of the above

Source: NACS Consumer Fuels Survey of 1,200 U.S. drivers, February 2023 94 OCTOBER 2023 convenience.org

I

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The main reason for your trip?

t’s impossible to predict what any given customer might do upon entering your store, but new survey data sheds light on the journey of many customers and their in-store habits. With this information, you can more effectively plan for adjacencies or targeted marketing that ties into what your customers want.

It is no surprise that the single most common action bringing consumers to c-stores is a fill-up. Half of all Americans say that buying gas was the main reason for their last visit to a convenience store.

According to national consumer data commissioned by NACS, more than half of all drivers filling up at the pump go inside the store.

This figure has mostly held steady over the past decade—regardless of the price at the pump.

This year, a record 59% of customers filling up said that they also went inside the store.

Customers who go inside perform roughly two and half in-store “actions” on average (2.58, to be specific). More than nine in ten customers who come into the store perform an action—the most common include paying for gas at the register and buying a drink.

However they often perform many other actions, too, such as purchasing a snack, meal, lottery ticket or tobacco or other non-purchase activities such as using the ATM or the bathroom. For example, a customer might perform three actions: Purchase gas (action No. 1), buy a drink (action No. 2) and use the bathroom (action No. 3).

In “Selling Fuel to People in a Bad Mood” in the April 2023 issue, we looked at how consumer sentiment drives purchase behavior at the pump and inside the store. Here, we look at what actions tend to connect with other actions, and how it can all tie together in creating larger baskets.

In our analysis, we segmented the individual actions into three categories: light, medium and heavy market baskets, based on how each action corresponded with larger or smaller baskets. While the lighter market baskets are more common, the heavier market baskets are typically most profitable.

Customers who pay for gas at the register tend, on average, to have 3.10 total actions, which is low. It could be that customers paying for gas tend to be in a hurry and entered the store with just that specific task in mind.

Toward the other end of the spectrum, customers who bought a sandwich performed an average of 3.91 actions.

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Light Market Baskets T

Paying for gas at the register (3.10 actions) 45% of customers overall performed this action the last time they were in a c-store.

The single most common in-store activity is paying for gas. It’s not simply those who pay by cash (which is a quarter of all customers who come into the store). There’s a sizable group of customers who pay by plastic and also make other purchases when they come into the store.

The only two actions that these customers were more likely to do than the overall average were buying cigarettes (32% of pay-inside customers buy them) and buying lottery tickets (21% buy them), both actions that require assistance at the register.

Those in the Midwest are most likely to say they paid for gas at the register the last time they were in a c-store (52%).

Bought a drink (3.22 actions) 43% of customers overall performed this action.

Historically, the liquid most associated with c-stores is gasoline—though for a huge percentage of customers, the most important liquid is coffee, soda or water. Nearly as many customers come inside a c-store to buy a drink as they do to pay for gas. Those who commute on a daily basis are significantly more likely to be drink buyers (53%), as well as people in the Northeast (47%).

Bought lottery tickets (3.48 actions) 20% of customers overall performed this action.

Buying lotto tickets is a fairly common action for c-store customers, though it doesn’t necessarily connect with other purchases the way that other actions do. There are two actions lottery customer are more likely to perform than average: 20% use the ATM and 16% buy beer/wine.

Customers ages 50 to 64 are the most likely to purchase lottery tickets (30%), and it’s most common in the Northeast region (23%).

Bought a snack (3.50 actions) 32% of customers overall performed this action.

Hungry people seem to be more thirsty.

While drink buyers are more likely than average customers to buy a snack, the data suggests snack buyers are really likely to buy a drink. More than half of all snack purchasers (51%) say they also buy a drink, the highest of any category. This consumer data is supported by NACS Convenience Voices survey data. Drink purchasers are most likely to be ages 18 to 34 (44% buy drinks when in a c-store) and in urban locations (41% of these customers buy drinks).

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Thomas Barwick/Getty Images

The single most common in-store activity is paying for gas.

he top three actions overall by frequency are three of the four lightest in terms of driving a basket. The data suggests that while these actions are common, they also are least likely to be part of a larger shopping experience.

Convenience and speed are at the fore when it comes to these light market basket actions.

These actions often occur when someone needs or wants to buy something specific.

Medium Market Baskets In recent years, many stores have seen that beer/wine sales pair well with the bathroom the sales of Used (3.73 actions) sandwiches 22% of customers overall performed this action.

While bathrooms don’t directly add to sales, or meals. they can have a big impact on incremental sales. Customers who come into the store in order to use the bathroom typically perform nearly three other actions. A top action among bathroom users is using the ATM (used by 24% of those who used the bathroom). In addition, those who visit the bathroom are also more likely to purchase a snack (40% do) and buy a sandwich/meal (17% do) than the average customer.

Want More Information?

NACS has more survey data at its Fuels Resource Center (www.convenience.org/fuels). Also, the NACS Convenience Matters podcast episode “Survey Reveals What Drives the Most Purchases” includes more insights. Find all Convenience Matters episodes at conveniencematters.com.

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Bought beer/wine (3.76 actions) 13% of customers overall performed this action.

Beer/wine purchasers fill up a sizable market basket, but there is one item where they significantly underindex: non-alcoholic beverages. Only 28% of beer/wine purchasers (compared to 43% overall) buy a non-alcoholic drink. However, beer/wine purchasers overindex on several actions, especially purchasing cigarettes/vaping products (also purchased by 38% of alcohol purchasers). Beer/wine customers are also more likely to use the ATM (25%), purchase lottery tickets (24%) and buy a sandwich/ meal (21%).

In recent years, many stores have seen that beer/wine sales pair well with the sales of sandwiches or meals. For some customers, buying the two together could be part of building one meal, while for others the purchases might be for two different periods: a sandwich for now and beer/wine to relax at the end of the day.

Pepiphoto/Getty Images; d3sign/Getty Images

Bought cigarettes/vaping product (3.54 actions) 28% of customers overall performed this action.

By definition, tobacco products require someone come into the store for assistance at the register—and so we see an uptick in other actions performed in the store. Like snack purchasers, those who buy tobacco or vaping products are more likely to also purchase a drink (51%). Tobacco/vape customers also overindex on using the ATM (21% use it) and buying beer/wine (18% also buy beer/wine).

Customers ages 35 to 49 years old are the most likely to purchase tobacco/vaping products (40% of this age group).

Heavy Market Baskets W

Bought a sandwich/meal (3.91 actions) 13% of customers overall performed this action.

Foodservice not only provides a higher margin than many other items, it also delivers a larger basket beyond just the sandwich or meal. The data suggests that those who purchase a sandwich or meal are more likely to make a complete meal purchase: 48% also buy a drink, 39% also buy a snack and 21% also buy beer/wine. These customers also are much more likely to stock up on other items, like gum and fill-in groceries (both purchased by 25% of sandwich/meal purchasers).

Used the ATM (3.94 actions) 17% of customers overall performed this action.

Those who use the ATM are much more likely to perform additional actions. Perhaps flush with cash, there are a multitude of in-store actions these customers are more likely than the average customer to perform, including paying for gas inside (47%), buying a drink (39%), buying a snack (39%), buying cigarettes (36%) and even using the bathroom (31%).

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While the presumption is that cash is king among older customers, those ages 18 to 34 are significantly more likely to use the ATM than older people (22% of those ages 18 to 34 versus 5% of those 65+ reported using an ATM the last time they were inside a c-store).

Bought fill-in groceries (3.95 actions) 12% of customers overall performed this action.

Customers shopping for fill-in groceries (for example, milk, bread, eggs) are likely to build a larger market basket. This makes logical sense, since this shopping experience take more time than quickly grabbing a candy bar from below the register or a drink from the cooler. Fill-in grocery customers are much more likely to use the bathroom (32%), use the ATM (29%) and buy a sandwich/meal (28%).

Customers in urban locations lead the way in purchasing fill-in groceries, with 18% of these customers saying they purchased fill-in groceries the last time they were in a c-store.

Bought gum/mints (4.27 actions) 10% of customers overall performed this action.

The most interesting finding relates to those who buy gum and mints. It is not a particularly common action—just one in ten customers purchased gum or mints on their last visit.

However, those people who purchase gum/ mints typically have the highest number of other actions. It’s probably the effect rather than the cause. More often than not, these items probably represent a final impulse purchase by those checking out at the register with other items.

Jeff Lenard is NACS vice president of strategic industry relations. For much of the past 23 years he has worked with Adam Rosenblatt, partner at Bold Decision (bolddecision.com), to develop industry-specific insights from exclusive consumer survey data.

lechatnoir/Getty Images

Customers shopping for fill-in groceries are likely to build a larger market basket.

e define heavy market baskets as situations when a customer performs 3.90 or more actions. The inherent chicken-or-egg question when it comes to this category is whether the individual action triggered the additional purchases/actions, or if putting together a larger basket triggered the inclusion of this action.

Empowering Connections Inspiring Possibility

SIp, siP, Booming prepared cocktails segment finds a home in convenience stores.

F16-ISO100/Shutterstock

BY TERRI ALLAN

NACS OCTOBER 2023 103

104 SEPTEMBER 2023 convenience.org

Indeed, sales of liquor-based prepared cocktails are skyrocketing, and new brands are flooding the market. According to the Distilled Spirits Council of the United States (DISCUS), RTD cocktails were among the top five fastest-growing spirits categories, with sales increasing 36% to $2.2 billion in 2022.

Momentum for RTD products also is strong in convenience stores.

“While other subcategories in liquor had a harder time in 2022, prepared cocktail monthly sales soared,” remarked Jayme Gough, NACS research manager. “Sales of this subcategory have continued to grow as consumer options expand.”

Although still a small subcategory, Gough noted that the segment registered both sales and gross profit gains year over year.

THE CONVENIENCE FACTOR The emergence of prepared cocktails, whether packaged in cans or bottles, has been a game changer for many consumers as they can now easily sip a premixed margarita out on a boat or a ready-to-drink cosmopolitan at a backyard barbecue.

“The convenience of having a good tasting cocktail readily available and ready to drink is driving the popularity of the segment,” said Tracy Frisbie, vice president, marketing, at BuzzBallz LLC/Southern Champion. “Consumers want convenience for the everyday occasion and want to skip having to buy multiple ingredients and measuring ratios to make a cocktail.”

Heather Boyd, managing director, U.S. RTD at Beam Suntory, agreed that the convenience factor has been pivotal to the growth of the segment. But product quality has also been a contributor, she added.

“The rise of spirits-based RTDs speaks to the growing cocktail culture in the United States,” Boyd explained, with the products taking part in more occasions. “Many consumers may want to make cocktails at home, but don’t have the time, skills or ingredients needed to do so.

Spirits-based RTD and ready-to-serve options eliminate those barriers,” she said.

Recent revisions to alcoholic beverage laws in some state have loosened restrictions that prohibited the sale of the products in c-stores, and retailers report strong trends.

Emanuel Stanciu-500px/Getty Images

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Chicagoland-based The PRIDE Stores, a new wave of beverages is driving customers to the cold box. Thanks to their premium branding and convenient packaging, PRIDE management isn’t wasting any time making room for more.

“We’ve noticed that the ready-to-drink (RTD), pre-mixed cocktail category is seeing growth from premium liquor brands,” and not just from the likes of High Noon Sun Sips and Chi-Chi’s, said Chris Peckat, director of purchasing at the 17-store convenience store chain, which was featured in the 2021 NACS Ideas 2 Go video “Parent Petroleum’s Brewing Success.”

Pointing to RTD cocktails that feature the branding of high-end spirits, such as Basil Hayden bourbon, Cazadores tequila, and Bombay Sapphire vodka, Peckat said the products “have been a huge hit at PRIDE locations” and fit in well with the company, which also operates its own brewery, several restaurants and a liquor store. “Demand from our customers is driving increased shelf space,” he said.

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“We jumped on board two years ago when the state of Michigan revised restrictions on c-stores selling low-proof spirits products,” said Eric Patterson, chief merchandising and marketing officer at Beacon & Bridge Market, with 24 stores in the Great Lakes State. “We did a soft rollout last year and this year devoted extra space in our planogram.

They’re doing well.”

The regulation changes also resulted in an explosion of prepared cocktail labels available from distributors.

“It used to be that only liquor distributors could handle them, but now beer distributors can too. They’ve jumped in headfirst and now there’s a plethora of these products,” Patterson said.

Spirits-based RTD sales are permissible in grocery stores in 31 states and in convenience stores in 29 states, according to DISCUS. The association, along with the Texas Food and Fuel Association (TFFA), is working to change current state laws. TFFA President and CEO Paul Hardin and DISCUS President and CEO Chris Swonger shared their insights on this issue in the recent Convenience Matters podcast episode “RTD Cocktails Fuel Accessibility Fight.”

In markets where c-stores are prohibited from selling full-strength liquor, RTDs can offer an opportunity for retailers to sell packaged alcoholic beverages at a price point that’s comparable to premium beer and imports.

AFFLUENT CONSUMER APPEAL Prepared cocktails are popular among a wide range of consumers. Herb Smith, vice president of customer development at E&J Gallo Winery, said the drinks appeal to consumers aged 21 to 55, with “consumers in the age range of 22 to 32 the most engaged.”

Both Boyd and Frisbie said that their respective brands attract affluent consumers, many of whom are females.

“As a whole, spirits-based RTD consumers are typically middle-aged and skew higher income,” said Boyd, adding that many On the Rocks (OTR) shoppers are millennial women. “Given this demographic, c-stores that choose to offer spirits-based RTDs may

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F16-ISO100/Getty Images

They’ve jumped in headfirst and now there’s a plethora of these prod­ucts.”

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108 OCTOBER 2023 convenience.org

see additional benefits from reaching new consumers and driving additional sales,” she said.

Among BuzzBallz consumers, meanwhile, the female to male ratio is 59/41, Frisbie reported, and the average household income is around $100,000. But the biggest commonality among the brand’s consumers is that “convenience is a priority,” she said.

As with beer and hard seltzers, prepared cocktails can be merchandised in a variety of ways. With packaging configurations that include single cans and bottles, multipacks and variety packs, the drinks are at home in the cold vault, beer cave or stocked warm on the shelf.

At Beacon & Bridge, Patterson said “High Noon is king” among prepared cocktails.

It comes in 700-ml singles, eight packs and variety packs, as well as variations of the brand’s new tequila-based option. As it does with beer singles, the chain promotes 50 cents off the purchase of two single cans.

Marketers of prepared cocktails recommend that c-store operators ensure the products are available chilled, and if possible, supplemented with inventory on warm shelves for backstock.

“Retailers should keep the top-selling flavors in the cold box and then use the warm shelf as backup, since the sales velocity from the cold box is three times faster than the warm shelf,” said Frisbie.

In addition to the cold box, stores with beer caves “can stack a varied assortment to maintain holding power while driving incremental purchases,” said Smith.

When it comes to warm placement, Boyd advised that 375-ml bottles of OTR be merchandised next to wine, since “consumers shopping those aisles are typically looking to spend $12–$20 a bottle. It’s also a great way to capture the attention of someone who may not have been considering a spirits-based RTD option.”

While prepared cocktails are relatively new items in most c-stores, marketers believe they have staying power. Frisbie noted that in addition to providing incremental sales, the products can help attract new shoppers.

“Between being an impulse purchase and increasing the basket ring, spirits-based RTDs complement wine- and beer-drinking occasions,” said Boyd, adding that retailers should educate shoppers on the differences between malt-based and spirits-based offerings.

And Smith minces no words when he speaks of the opportunity prepared cocktails offer c-stores: “Apply for your license to start selling spirits now so you can catch this fast-growing category.”

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.

magnetcreative/Getty Images

Retailers should keep the top-selling flavors in the cold box and then use the warm shelf as backup, since the sales velocity from the cold box is three times faster than the warm shelf.”

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Convenience stores around the country celebrated local heroes during the fifth annual

24/7 Day.

BY SARAH HAMAKER

High-Fiving

Heroes NACS OCTOBER 2023 111

We see our convenience stores as community stores.”

112 OCTOBER 2023 convenience.org

that celebrates the partnership between the convenience store industry and those on the frontlines of our communities,” Sikorski said.

Here are snapshots of some of the ways retailers and suppliers gave their local heroes high-fives on 24/7 Day. HONORING SERVICE This year, Anheuser-Busch, with the support of its brands Budweiser and Bud Light, joined the event as a key supplier partner. “Showing up for our communities and first responders has long been part of Anheuser-Busch’s legacy,” said Ramona Giderof, vice president of convenience and military at Anheuser-Busch.

“We are grateful to participate in this year’s NACS Foundation 24/7 Day to honor those on the frontlines and work with our convenience store partners to shine a light on their service.”

From July 1 through August 31, Anheuser-Busch donated a portion of every Budweiser and Bud Light case sold to Folds of Honor, which has partnered with the company for more than a dozen years. Folds of Honor provides educational scholarships to the families of military personnel who have fallen or become disabled while serving our country. The organization recently expanded this scholarship program to include the families of first responders, including paramedics, EMTs, police and fire.

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C

onvenience stores and first responders, medical personnel, 9-1-1 professionals and Red Cross volunteers all work around the clock to ensure people don’t face emergencies alone. To celebrate these local heroes, convenience retailers around the country celebrated 24/7 Day on Monday, July 24, by thanking the men and women who are on the frontlines every day helping their communities. Hosted by the NACS Foundation, 24/7 Day commemorated its fifth consecutive year of raising awareness and donations for the American Red Cross.

“Just like first responders, convenience stores and their workers provide essential services while also acting as a reliable and safe hub for members of their community to connect, socialize and share,” said Stephanie Sikorski, executive director of the NACS Foundation. “So much of the work that both first responders and convenience store workers do is not seen by the public. This celebration was created to shine a bright light on their service, showing them that we see how much they do and saluting them for their incredible efforts.”

This year, more than 30,000 convenience store locations participated in 24/7 Day, joined by Anheuser-Busch and Reynolds as key supplier partners and GSTV as the official media partner. “This is the only day

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Handing Out High Fives Convenience stores are an integral part of everyday life across the United States, often being the only retailer open in the overnight hours for first responders and medical personnel working the overnight shift. This year, thousands of convenience stores participated in 24/7 Day to honor those frontline workers.

Here’s a list of retailers who high-fived first responders during the 2023 24/7 Day.

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• Lemmen • Li’l Cricket • Loaf N’ Jug • Loop Neighborhood Markets • Market Express • Minit Mart • Next Door Store • OnCue • Pride • Quarles • Quik Stop • R-Store • RaceTrac • Roadrunner Markets • Rose Mart • Rutter’s • Scotchman • Sheetz • Shore Stop • Sprint • St. Romain Oil Co./ Y-Not Stop • The Convenience Group • The Hub Convenience Stores • The Markets of Tiger Fuel Company • Tom Thumb • Town Star • TXB • Turkey Hill • Uncle’s • Village Pantry • Wawa • Yesway • Young’s

“Convenience stores are essential to our communities and are integral to our business,” Giderof said. “We have great partners in NACS and our retailers that are crucial to helping millions of consumers across the country discover our products.”

SPREADING POSITIVITY For TXB, a chain of more than 50 locations across Texas and Oklahoma, participating in 24/7 Day is an extension of its community focus. “We see our convenience stores as community stores,” said CEO Kevin Smartt.

“Most of them are open 24/7, 365 days a year.

Not only are we serving hundreds of guests each day and night, but we may be one of the only available options for first responders and medical personnel. We are that resource for them so they can continue serving in all their various capacities.”

To celebrate first responders, TXB gave away food, beverages and swag, including mugs, t-shirts, hats, tote bags and coffee.

“First responders, medical personnel and volunteers go above and beyond every single day to keep our communities safe and healthy,” Smartt said. “We are super grateful for their service and love this opportunity to be able to give back and support them.”

SAYING THANKS For High’s Stores, a 60-unit chain operated

by Carroll Motor Fuels in Maryland and the surrounding states, being part of 24/7 Day gave them the chance to say thank you to first responders and American Red Cross volunteers. “At High’s, we understand the importance of not only serving but being part of the

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• 1 Stop • 7-Eleven and DK (limited locations) • Admiral • Allsup’s • Apple Market • Au Energy, LLC – Loop Neighborhood Stores • Bread & Butter Shops • BreadBox • Casey’s • Certified Oil • CFCA • Corner Mart • Cumberland Farms • Dixie Mart • Enmarket • Express Stop • ExtraMile • E-Z Mart • Fas Mart • Fastmarket • Fastrac • Flash Market • Garrett’s Family Market and Rapid Refill Convenience Stores • G&M Food Mart • Handy Mart • High’s • Jaco Oil – Fastrip • JBDewar Inc. – Pride Pacific • Jetz • Jiffi Stop • Jiffy Stop Food Marts • Kum & Go • Kwik Shop

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GIVING BACK As part of 24/7 Day, Reynolds made a corporate donation of $25,000 to American Red Cross disaster relief efforts, as well as posting on social media and engaging with employees across the organization with ar-

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Find out more at conveniencecares.org.

ticles and digital signage to raise awareness and show support for community heroes.

“Giving back through corporate and foundation giving is a tradition and point of pride at Reynolds,” said Walter Farabee, senior community engagement and ESG reporting manager for Reynolds.

Reynolds wanted to support its long-standing relationship with NACS as well as its long-term partnership with the American Red Cross through its 24/7 Day involvement.

“The importance of convenience stores within our industry and our community as a whole cannot be overstated,” Farabee said.

“Year after year, convenience stores remain the number-one place where consumers seek our products, and we remain committed to supporting our community partners.”

THEPALMER/Getty Images

Giving back ... is a tradition and point of pride at Reynolds.”

community,” said John Phelps Jr., vice president of marketing. “We’ve made it a point to give back and help the communities we serve, and are always looking to support community events like 24/7 Day.” To celebrate first responders and volunteers, High’s offered a free hot or cold beverage on July 24. In addition, the company donated 10 cents from all dispensed beverage sales during the month of July to the American Red Cross. “All of our associates were also extremely grateful to be able to say thank you to these first responders in our communities that provide meaningful services all throughout the year,” Phelps said.

High’s carries the 24/7 Day legacy all year long through its support of first responder events like the Howard County Police Pace 5K and donating coupons to the American Red Cross for free quarts of ice cream to those who donate blood.

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2024 AND BEYOND This year’s 24/7 Day shows how far the reach of convenience stores can be when they band together to celebrate hometown heroes. “The NACS Foundation’s 24/7 Day was conceived as a way to provide first responders with a token of appreciation and gratitude from one of their largest supporters—the convenience store industry,” Sikorski said. “This event unifies the collective efforts of tens of thousands of convenience stores that honor and thank those who work 24/7 with items like a hot cup of coffee, a cold beverage or a breakfast sandwich.”

The NACS Foundation welcomes more retailers to join 24/7 Day in 2024. “The wider the reach we can have across our industry, the more people will hear our message of how important convenience stores are to their communities,” said Sikorski.

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

Motortion Films/Getty Images

In our communities, we’re often the only business open 24/7.”

CONTINUING THE TRADITION St. Romain Oil Company’s Y-Not Stop has participated in 24/7 Day since the first one.

“Our stores are in rural Louisiana, and in these small towns, the police and fire departments are such a big part of the community,” said Amanda Austin St. Romain, marketing director for the 14-unit chain.

“We depend on them as they depend on us to be open, so it was a natural fit for us to be involved with 24/7 Day.” Y-Not Stop honored first responders and their support staff, plus 9-1-1 dispatchers, EMS and electrical linemen, with a free two-piece chicken tender dinner with small wedges and any size fountain drink. “We took a wide approach to honor anyone who would respond to the scene of a disaster,” St. Romain said.

“In our communities, we’re often the only business open 24/7 to provide service to first responders who either are working an overnight shift or responding to a disaster,” she said. The chain carries the spirit of 24/7 Day throughout the year through its similar events for teacher appreciation, healthcare workers and military veterans.

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NO SKIPS, JUST HITS

ZargonDesign/Getty Images; kiska/Shutterstock

Savvy retailers play music that enhances the customer experience.

BY SHANNON CARROLL

OUR LIVES HAVE A SOUNDTRACK. Sometimes, the soundtrack is by choice—the playlist we put on during our commute. And sometimes it’s by design—but not our own.

Studies have found that music can shape a person’s mood, and over the years, that research has been applied to the commercial realm. Companies use music to sculpt an in-store shopping experience, so that when you walk into a store, each song has been selected and put on a playlist for a specific purpose.

Some stores want to make you feel relaxed. Other stores want to energize you.

All stores want to make you willing to buy their product.

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Liubomyr Vorona/Getty Images

“It’s fun.

It’s about an energy and a vibe and being happy.”

C-stores can have particular challenges when choosing music because of their diverse clientele—across geographic regions, dayparts, ages—but that isn’t an insurmountable obstacle to using music to establish a brand identity and encourage people to spend their money in the store … then come back soon.

“The right music makes a difference,” said Bradley Golden, president of Music Technologies International (MTI), which has been providing stores with background music for 35 years. “Having music is very important.

And having the right music is even more important.”

Billy Colemire, the director of marketing for Idaho-based Stinker Stores, one of MTI’s clients, said, “Sometimes, it can seem like a really small task to simply add music into our stores. However, the feedback from employees and customers is resoundingly positive.

We found a way to be a bright spot in the lives of our employees and customers in a very quick and simple manner.”

MTI works with a number of convenience retailers to ensure that the music playing when customers walk in creates a welcoming, fun environment.

“Stores want the customers to return, they want to brand the sound of their stores, they want to evoke nostalgia in some cases, they want to create a positive experience,” Golden said. “You can really create emotion with music.”

FINDING THE MIX To start the playlist process, MTI asks its customers a number of questions: what their target demographics are and how that changes at different times of the day, what their typical store hours are and where their top stores are located geographically, for example.

That’s because a geographical region can help MTI decide what songs to put more of on playlists. For stores with a lot of Latino clients, there might be a number of Spanish songs on a playlist. But even that can vary, too; the music in a Texas store might lean toward regional Mexican (think Tejano), while music in stores in Florida might have more of a Cuban or Dominican flavor (think reggaeton or salsa).

A store’s customer base varies, too, as the day progresses. People coming in during the morning rush might be between 16 and 54 years old—on their way to school or work.

Next might be soccer moms or dads. After that, it might skew more toward older men.

And so forth. So a playlist needs to appeal to different demographics throughout the day.

After some back and forth, MTI builds out a base playlist.

“That’s the backbone,” Golden said. “That’s the essence of a store’s format. That’s the thing people will associate with the brand.

That’s the secret sauce.”

But if, for example, a retailer has locations that are unique geographically or in terms of demographics, percentages of different subformats can be blended into the base format—maybe one country, Latin or hip-hop song in every five.

A playlist generally has thousands of songs on it and is updated frequently because, as Golden said, you need to have a lot of variety.

A store’s visitors can be creatures of habit, so you don’t want them to come in at the same time each day and hear the exact same thing—a customer would likely remember that, and not fondly.

“It would be a major faux pas for your customers to hear the same song playing,” he said.

All of MTI’s music is fully licensed—it chooses not to play what’s called buy-out or

“Amazing music experiences don’t happen on shuffle.”

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Stinker Stores focuses on upbeat music its customers and employees will really enjoy or sing along to. While Colemire doesn’t have any hard data to demonstrate that music has helped with sales, he said it does “from an anecdotal experience, at least.”

“Music is a form of media that already resonates with so many of our customers and employees,” Colemire said. “We chose to prioritize music within our stores to create a more comfortable shopping and working experience.”

Stinker Stores has fun with the music, too. It started a Summer Lovin’ promo in early July that ends in late September and worked with MTI to loop in many songs from “Grease” to “create a more immersive shopping experience,” Colemire said.

‘PEOPLE DANCING ALL THE TIME’ Music is also a priority at Gilbert, Arizona-based c-store Air Guitar. In fact, music is really at the heart of the business. Eric Seitz and Craig DeMarco couldn’t come up with a name for this venture. While they were driving together, Seitz started strumming an imaginary guitar. DeMarco’s wife, Kris, looked at the two men and said, “There’s your name.”

While it’s the first venture for the two together, neither is a stranger to the retail world.

DeMarco has 26 restaurants, while Seitz runs Bro Retail Group, which operates 21 c-stores at Chevrons across Arizona. Because music is such a big part of their lives and their friendship, Air Guitar’s playlist had to rock.

For the store’s music, Seitz creates playlists using the app Rockbot, which claims to have over 18 million songs licensed for businesses.

The app has different settings—AirGuitar primarily focuses on its modern rock and classic rock offerings—and takes all the explicit language out. That rock music is then played on the store’s four subwoofers and 18 speakers inside and outside the store. The volume can be adjusted over three zones of the store depending on traffic.

“We can have a huge concert if we want to,” Seitz said. “We like it really loud, to the point where I want a couple of people to go, ‘Wow, it’s really loud.’ It’s fun. It’s about an energy and a vibe and being happy. And if you’ve got great, loud music playing, it’s hard to be upset.”

Air Guitar focuses on daypart, as well. The

Mix and Match Studio/Shutterstock

royalty-free music—and the company tries to make its options deeper than just the hits.

But they still try to target artists the company knows are popular, which, right now, Golden said, include Ed Sheeran, Taylor Swift, Maroon 5, Justin Bieber, Rihanna, Lady Gaga, Katy Perry, Bruno Mars, Imagine Dragons, Pink, Beyonce, Dua Lipa, Harry Styles and Luke Combs.

“We try and keep things current because, especially in the convenience store industry, there’s a huge element of a younger demographic,” Golden said.

In general, MTI looks at radio play and Billboard charts to figure out what people might want to hear. Pop music dominates because it emphasizes energy and tempo, but country and R&B artists with crossover appeal get plenty of airtime.

Stores need to be careful because some popular songs geared toward Gen Zers are more risqué or profane. MTI has people on staff who monitor language and subject matter, including in foreign languages, such as Spanish.

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music starts a little more chill in the morning, then picks up as the day goes along. Although, Seitz and DeMarco have things set up so there’s not a lot of mellow music.

“We have people dancing all the time,” Seitz said. “Have you ever seen somebody unhappy air guitaring? … When you have great music playing, it’s really hard to have a bad moment.”

Making sure employees stay sane is a priority, so no song gets played more than once a day, and playlists get changed every month or so.

Likewise, Stinker Stores typically alternates among a few different playlists each quarter and gives its stores the ability to choose among them to make sure everyone has a comfortable working environment.

VARIETY RULES There have long been different philosophies when it comes to in-store music. An influential 1982 study by marketing professor Ronald E. Milliman concluded that a song’s tempo could change shoppers’ behavior—get them to walk more slowly and spend time in a store’s aisles, for example, significantly affecting sales.

Today, different retailers have different ways of creating their brand’s sound. Trader Joe’s stores typically play music, but the genre or radio station is chosen by each individual store. One of MTI’s customers, a jewelry retailer, makes it a point to ensure none of its playlists have any breakup songs. Some companies blend music with store ads to give shoppers a 126 OCTOBER 2023 convenience.org

mood boost and inform them about new products and sales. Other stores, such as no-frills Aldi, play no music in order to save money.

But regardless of what is—or isn’t—playing when you walk into a store, that choice was almost certainly intentional.

In-store music used to be synonymous with the company Muzak, which became known in the 1960s and 1970s for its elevator music approach. But that changed in the 1980s when the company began to focus on licensing original recordings and included vocal music.

Muzak is now owned by Mood Media, which works with clients such as T-Mobile, Marriott and Mercedes-Benz.

Danny Turner, Mood Media’s global SVP of creative programming, said curating an ideal playlist for a c-store is an “intricate” process because, while the target market is broad, “that doesn’t mean anything goes.”

“Amazing music experiences don’t happen on shuffle,” Turner said.

He said “dwell time” in a c-store is considerably less than in a grocery store, and a c-store environment “is driven and purposeful.”

“A one-size musical shoe does not fit all,” Turner said. “Understanding the key differentiators between business types is critical to creating a resonating music program.”

For example, he said, a restaurant might want to create an intimate experience, mask conversations at other tables or hide kitchen noise. A boutique or spa might want to

Grassetto/Getty Images

Before customers notice the employees, the signs, the lighting, the products, they are listening to what’s playing.

Come see us at NACS Show Booth #3775 to ask how we can help you.

maintain a consistent energy. And a c-store or quick-service restaurant might want upbeat, exciting and familiar music that will create energy.

“Some data points do demonstrate the importance of regionalization,” Turner said.

“But many of those hard-wired borders are now being eliminated by technology. … For example, country music is enjoying an explosive discovery right now in the U.K.” Other things to think about are how much you want a playlist weighted toward popular songs or toward songs your customers can discover through you. You want to think about the kind of energy you’re trying to create at different dayparts. “Think about how your energy levels change throughout the day and imagine the accompanying musical soundtrack,” Turner said.

Turner likes to surprise and delight listeners.

“Think of that moment at a club, lounge, wedding or concert where the artist throws

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128 OCTOBER 2023 convenience.org

you a creative curveball, gives you that ohno-you-didn’t kind of experience,” Turner said, whether that song is a cover of a classic or something someone likely hasn’t heard in years. “The best thing is watching the actions, faces and expressions of customers and associates when listening to music. You can always tell if you’re hitting the mark.”

Music is often the first thing someone notices when they walk into a store. Before customers notice the employees, the signs, the lighting, the products, they are listening to what’s playing.

“The right music matters. A lot,” Turner said. “The music ultimately speaks more loudly than anything else.”

Shannon Carroll is a contract writer/editor for NACS. Outside work, you can find her reading—or yelling at the sports on her TV.

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130 OCTOBER 2023 convenience.org

O

ver the last 143 years, Chevron has weathered numerous energy transitions. Today, Chevron’s differentiated energy transition strategy is to lower the carbon intensity of its operations and expand lower carbon businesses, including a rapidly growing lower carbon fuels business.

Regardless of where retailers, marketers or station owners are on their lower carbon journey, Chevron has a product to fulfill the needs of its customers. Chevron offers solutions that are fitfor-purpose, with customer needs varying by regulation, fleet size, geography and payload/cargo.

Operators benefit from close retail partnerships and the education that comes with Chevron’s product evolution and initiatives.

A recent notable achievement is the demonstration of Chevron’s renewable gasoline blend, an innovative new fuel which aims to help address transportation sector carbon emissions. It has a life cycle carbon intensity that at scale production would be more than 40% lower than traditional gasoline. Chevron’s renewable gasoline blend, a drop-in fuel, is compatible with current infrastructure and gasoline-fueled engines on the road today. If produced and marketed at scale, this lower-carbon-intensity gasoline could unlock the potential for motorists to be a part of a lower carbon future without switching vehicles.

These renewable gasoline blends are designed to be seamlessly integrated into the light-duty sector, with no changes to existing engines or infrastructure. This makes them an appealing option for reducing life cycle carbon emissions in the near-term. The fuel performs interchangeably with traditional gasoline but emits less carbon dioxide on a life cycle basis.

This interview is brought to you by Chevron.

CHEVRON EXPANDS QUALITY RENEWABLE BIODIESEL OFFERING In June 2022, Chevron acquired Renewable Energy Group (REG) to boost its renewable fuels expertise. Founded in the late 1990s, Renewable Energy Group has grown to have a portfolio of 11 biodiesel and renewable diesel production facilities in the United States and Europe and is one of the largest biofuels producers in the United States.

Chevron Renewable Energy Group spent over six years developing a next-generation, high-quality biodiesel. This biodiesel is produced using advanced refining processes and testing procedures for blending with renewable diesel and is used to create Chevron renewable diesel blends. These blends are currently offered throughout California and are expanding into the Pacific Northwest.

Chevron’s renewable diesel blend is compatible with current station infrastructure and diesel-fueled vehicles on the road today.

Chevron’s renewable diesel blend is a diesel fuel made with at least 80% renewable diesel and up to 20% biodiesel, typically with no more than 1% conventional petroleum diesel.

In limited applications, the blend ratios of Chevron’s renewable diesel blend may be altered to include more petroleum diesel to manage cold flow properties. Primarily made from biofeedstocks, Chevron’s renewable diesel blend provides a lower life cycle carbon intensity than conventional petroleum diesel.

The terms “renewable diesel” and “biodiesel” are often used interchangeably, although the fuels are produced differently. Both renewable diesel and biodiesel are derived from the same types of feedstocks, which can include soybean oil, used cooking oil, tallow and other plant- and animal-based oils. The primary difference is in the way each is processed into a fuel, which affects their composition.

Chevron renewable diesel blend has physical properties that benefit the combustion process in diesel engines, resulting in lower engine-out emissions of hydrocarbons, carbon monoxide and particulates than conventional petroleum diesel. It also has a greater cetane number than conventional petroleum diesel, which can improve cold start performance in certain engines and high lubricity. This can minimize friction between, and damage to, surfaces in relative motion under load.

CHEVRON EXPANDS CNG STATION NETWORK AND RNG SUPPLY While trucking mostly relies on diesel to fuel its engines, a move toward natural gas can be an important step forward in further lowering fleet carbon emissions. Chevron is proud to help increase compressed natural gas (CNG) fuel availability, which can enable faster adoption.

CNG is natural gas (methane) that is stored and transported under high pressure in its gaseous state. When compared to conventional diesel, CNG has many advantages. CNG can be priced lower (as with all products, prices can fluctuate), have a lower carbon intensity based on reduced emissions across its production life cycle, and lower engine emissions of nitrous oxide (NOx) and particulate matter.

Additionally, the range of natural gas-powered heavy-duty trucks typically exceeds electric-powered trucks relying on still-emerging electric vehicle technology. Switching to natural gas engines can help companies and fleets meet their lower carbon and compliance goals.

Renewable natural gas (RNG) comes from naturally occurring biomethane from multiple sources including livestock waste, landfills, wastewater sludge, food waste and other organic waste operations. The raw biomethane is

The Chevron Portfolio for Driving Lower Carbon Intensity Chevron is deploying a portfolio of reliable and competitive options of lower carbon intensity products. By reducing the carbon intensity of its own operations, Chevron is providing lower carbon intensity traditional fuels.

Additionally, Chevron offers easyto-adopt lower carbon intensity options such as renewable diesel and biodiesel that can be used in existing diesel engines with no modifications and are immediately adoptable. Chevron continues to progress actions in offering an expanded portfolio of options for today and tomorrow.

Primary focus areas for development and innovation include: • Renewable diesel (RD) • Biodiesel (BD) • Renewable diesel blend (RDB) • Compressed natural gas (CNG)

• Renewable natural gas (RNG) • Hydrogen (H2) • Sustainable aviation fuel (SAF) • Renewable gasoline blend (RGB) NACS OCTOBER 2023 131

captured and upgraded to remove contaminants and can be injected into existing natural gas pipeline networks and used as a substitute virtually indistinguishable from natural gas.

Chevron continues to make strides in CNG and RNG through several ongoing projects, all part of the continued pursuit of progressing lower carbon intensity value chains. Here are some outstanding examples: • Chevron completed its acquisition of Beyond6 in December 2022, expanding its national network of compressed natural gas (CNG) stations; there are 58 stations in the network today that are online and ready to receive fleet customers. Additionally, there are multiple projects planned or in construction to further expand the fueling network.

• Chevron partners with industry experts to build and operate a nationwide system of anaerobic digestion dairy farm projects, in which dairy manure serves as the feedstock.

Chevron is developing and constructing hydrogen fueling sites in California.

Lowering Carbon Intensity Per the Transportation Energy Institute, reducing the greenhouse gas emissions associated with transportation fuels is important in order to enable companies to meet regulations and achieve their own sustainability goals. In its Decarbonizing Combustion Vehicles report, published in July 2023, the Transportation Energy Institute shows how some alternative fuels generally compare to traditional products. The chart below shows fuel carbon intensity assumptions. Offering alternative fuels that are adoptable can help companies comply with regulations and allows them to meet their lower carbon aspirations.

FUEL TYPE

CARBON INTENSITY (GCO2E/MJ)

Gasoline (E0, E10, E15) Diesel Natural Gas (CNG / LNG)

EER-ADJUSTED CARBON INTENSITY (GCO2E/MJ)

93, 91, 89 91 75 / 77

Ethanol (100%)

57

Ethanol (E85)

64

Biodiesel (B20)

80

Biodiesel (100%)

36

Renewable Diesel (100%)

34

Electricity (U.S. mix)

130

Light Duty, 33; Heavy Duty, 33

93 / 134

Light Duty, 48 / 69; Heavy Duty, 44 / 64

Hydrogen (gas / liquid) Propane 132 OCTOBER 2023 convenience.org

79

These digesters capture and upgrade the methane from manure and inject it into a nearby gas pipeline network.

• As a point of progress for advancing a lower carbon economy, Walmart’s first CNG-powered truck marked a milestone in 2023 when it took an inaugural drive from Arkansas to California. Throughout the road trip, the15-liter CNG engine that was supplied by engine manufacturer Cummins was fueled by Chevron with compressed natural gas (CNG) linked to renewable natural gas (RNG).

HYDROGEN VALUE CHAIN IN DEVELOPMENT Hydrogen is the most abundant element in the universe, and according to the U.S. Department of Energy, engines fueled with it can be twice as efficient as a combustion engine.

Today there are about 16,000 fuel cell electric vehicles (FCEVs) on the road (according to the organization Hydrogen Fuel Cell Partnership), and they are growing in popularity. There are zero tailpipe carbon emissions from FCEVs and these vehicles can represent a significant reduction in carbon intensity as compared to traditional fuels.

In another example of innovation, Chevron is developing its hydrogen value chain. The value chain includes production, transportation and fueling infrastructure. Over time, the value chain will grow to deliver hydrogen at scale to hard-to-abate (also known as hard-to-electrify) industries, such as mediumand heavy-duty transportation.

Chevron is developing and constructing hydrogen fueling sites in California; the first is breaking ground in late 2023. These sites will be located at Chevron-branded retail stations across the state and will initially fuel light-duty vehicles while retaining the flexibility to service heavy-duty vehicles over the long term. To learn more about how Chevron is innovating, visit www.Chevron.co/franchise.

brand with Chevron and fuel a brighter future.

Innovation, support and a respected name: that’s what you can expect when you brand with Chevron. From premium fuels like Chevron with Techron® and new, lower-carbon diesel offerings as available, to exciting incentive programs and brand-related trainings, a handy mobile app and a nationally recognized customer loyalty program, you can count on the Chevron brand to help move your business forward. Plus, the ExtraMile c-store franchise can make your station even more attractive.

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CONVENIENT

CAFFEINE Convenience stores are buzzing with caffeinated drinks.

BY PAT PAPE

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If you’re exhausted, drowsy and longing for a nap, join the club. A National Sleep Foundation survey found that, on average, U.S. adults feel sleepy three days a week. Of those fatigued participants, 40% say that drowsiness impedes their daily activities. Thirty-three percent drink coffee to wake up while 62% simply “shake it off and keep going.”

According to the U.S. Food and Drug Administration, 80% of U.S. adults consume caffeine in some form every day. From students and athletes to busy professionals and exhausted parents, caffeine helps people manage daily life. The drug (yes, it’s technically a stimulant) has no taste or nutritional value, yet it gets credit for restoring muscle strength, improving physical performance, boosting mood and enhancing memory and alertness.

NACS OCTOBER 2023 135

“Energy has been a driving factor in our cooler’s success, leading all segments in growth year over year.”

Bestselling author Michael Pollan became an advocate of caffeine’s benefits while researching his book “Caffeine: How Coffee and Tea Created the Modern World.”

“I’d read a lot of negative press about caffeine and worried I was drinking too much. But after researching it, it’s actually more good for you than not,” Pollan said in an interview while promoting the book. “It’s protective against several kinds of cancer, Parkinson’s disease, dementia and cardiovascular disease. There are a lot of good things about it.”

That’s good news for the millions of people who can’t get the day going without a little help.

“Caffeine and coffee have transcended their status as simply a beverage to become an intrinsic part of people’s lives, woven into the fabric of their daily routines and personal connections,” said Tim Warner, general manager at Costa United States, the Britain-based coffee company owned by Coca-Cola.

CREATIVE CAFFEINE The most common sources of caffeine for American consumers are sodas, brewed coffee and tea, according to the International Food Information Council. The typical cup of black coffee has 100 milligrams of caffeine and a cup of tea as much as 60. A canned soda is allowed a maximum of 71 milligrams of caffeine per U.S. Food and Drug Administration regulations. However, there is no limit on the amount of caffeine allowed in energy drinks, since they don’t fall into the government’s soda category.

A survey conducted earlier this year and reported by Statista found that 32% of respondents aged 18-29 years consumed energy drinks regularly. That figure was slightly higher for the 30-49 age group, which were even more likely to drink energy drinks (34%), but for those 50-64, energy drinks were not the chosen beverage for an energy boost (15%).

To keep customers interested, major manufacturers are introducing new caffeine-rich drinks. Gatorade recently launched

Approximate caffeine content of different drinks A 12-ounce soft drink: 30-40 mg An 8-ounce cup of green or black tea: 30-50 mg An 8-ounce energy drink: 45-250 mg Source: U.S. Food and Drug Administration

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Liudmila Chernetska/Getty Images

An 8-ounce cup of coffee: 80-100 mg

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Food Photographer/Getty Images

Sugar-free energy is the go-to beverage for many consumers.

Fast Twitch, a sugar-free beverage with the same caffeine content as two cups of coffee.

PepsiCo has a stake in Celsius, a popular energy beverage brand with 200 milligrams of caffeine in a 12-ounce can. Circana’s 2023 New Product Pacesetters report notes that some of the most successful new product launches this year are energy drinks, such as Alani Nu’s caffeinated collection, which also contains biotin, B6 and B12.

Guayakí, a California-based drink company, markets products made from yerba mate, a naturally caffeinated holly tree found in the South American rainforest.

“We recently launched a new flavor for our High Energy cans—Guayakí Organic Yerba Mate Peach Revival,” said Brian Bousley, chief commercial officer for Guayakí. “It’s a product inspired by customer feedback for a peach flavor, lower sugar and full caffeine. Each can has 20 calories and 150 milligrams of caffeine.”

Guayakí products are available at Maverik, Extra Mile and select divisions of 7-Eleven, Circle K, Jacksons and Town Pump.

“Energy is big,” said Chad White, food service category manager for Rutter’s stores.

“The category is growing not just in the vault but on the handcrafted side as well. Handcrafted beverages in general have all seen great volume.”

That’s why Rutter’s has a handcrafted beverage program featuring Red Bull smoothies. It is expanding the offerings due to customer response.

“Our smoothie is made with a full 8.4-ounce can of Red Bull or Red Bull Sugar Free mixed with flavoring syrup, smoothie cream and ice,” he said. “The current flavor selection is vanilla, hazelnut and raspberry, but we’ll be adding new flavors in the near future.”

Curby’s Express Market in Lubbock, Texas, offers a generous selection of proprietary made-to-order energy drinks, including a Red Bull Refresher flavored with assorted Torani syrups, and the chain’s exclusive energy line, dubbed “Zoomie.”

“We use a proprietary energy mix to make nine different varieties of Zoomies, all in beautiful colors,” said Tony Sparks, head of customer wow for Curby’s.

To get even more mileage from the fountain, Curby’s mixologists create Twisters on request by combining traditional fountain drinks—Coca-Cola, Dr Pepper, Mountain Dew and more—with fresh fruit, fresh fruit puree made in house and a generous serving of ice. Menu offerings include the South Padre, a combination of Coca-Cola, lime and coconut, and the Southerner, made with Dr Pepper, peach and strawberry puree.

“Starbucks came out with a ‘pink drink,’” Sparks said. “We have something almost identical, but ours is less expensive.”

Tea2Go TeaN’ergy, also based in Lubbock, is a drinks-only drive-thru outlet offering tea and propriety energy drinks. The 35-store chain sells 45 flavors of loose-leaf tea, either brewed for immediate consumption or packaged for at-home preparation. But the big attraction is a proprietary, made-to-order selection of energy drinks, each containing 165 milligrams of caffeine. Currently, the most popular flavor is strawberry cotton candy.

The drink contains powdered caffeine that is manufactured for the company. “It’s all-natural and made from green tea extract and coffee extract,” said Stephanie Chavez, CEO. “There’s no sugar so you don’t get a crash.”

Sugar-free energy is the go-to beverage for many consumers. Red Bull Sugar Free first appeared in 2003 and quickly gained a following. A 2021 report from the Beverage Marketing Corporation notes that low-calorie energy drink sales rose from 17.3% of the energy drink market in 2006 to 41.7% in 2020, and are predicted to increase to 42.1% by 2025.

CAFFEINE IS CLIMBING At Rutter’s stores, canned energy drinks fly out the door.

“Energy has been a driving factor in our cooler’s success, leading all segments in growth year over year,” said Joseph Bortner, senior category manager for Rutter’s.

“While the top is growing at a steady clip, new entrants that offer differentiation to the vault have gained traction and share of the 140 OCTOBER 2023 convenience.org

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.

VlarVix/Getty Images

There is no limit on the amount of caffeine allowed in energy drinks, since they don’t fall into the government’s soda category.

category. In general, our foot traffic is at its peak in the morning and at lunch, and the sales are proportionate to traffic flowing through the store.”

Although drinks dominate the energy market, Bortner believes energy shots also warrant space in the store. “I believe many customers shop both categories in the same trip,” he said, adding that the energy drink consumer is seeking hydration, along with the functional benefit of energy, and the shot shopper wants the functional benefit.

“Maybe [the shot shopper] has a long trip ahead and may not be looking to consume so many ounces of liquid. But they still seek the caffeine,” he said. “Or they could be planning for later use since the shot is smaller and more concealable. They can throw it in a pocket or bag and use it later.”

Energy drink sales continue to climb, and Verified Market Research predicts a bright future, with the nation’s energy drink market growing from $23.49 billion in 2022 to $47.74 billion by 2030.

“Coffee is still the morning choice, but throughout the day, energy drinks are the beverage of choice,” White said.

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Swag STORE

Branded wearables and other merch allow retailers to build loyalty and brand awareness.

BY TERRI ALLAN

Lallanan/Shutterstock

W

hile cold beverages, clean bathrooms and freshly prepared food are critical to driving visits to Wally’s, the growing convenience store concept in the Midwest, it’s the “unexpected delights” that make the visits memorable.

Those finds include a wide array of clothing and accessories emblazoned with the Wally’s logo, which have established themselves as among the top-performing items chainwide.

“At Wally’s, our intention is to turn the traditional c-store on its head,” said Andy Strom, chief experience officer. “Our merchandise sets us apart.”

NACS OCTOBER 2023 143

Wally’s is among a growing crop of c-stores that has found a receptive audience for exclusive wearables and other branded merchandise. In addition to building store traffic, the items serve as high-ticket impulse buys and grassroots marketing tools, with the marketing often spread through social media.

Clothing such as t-shirts, trucker hats and beanies, along with stickers, koozies, drinkware, coolers and a host of other merchandise, account for about one-third of the retail space at Wally’s two stores, Strom noted. The items are “value priced” at $5 to $25, designed in-house and sourced both domestically and from overseas.

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Built around the theme of the Great American Road Trip, Wally’s stores feature massive displays, like the Camp Wallyhaha Winnebago, that allow for easy merchandising of the items. But the branded merchandise can also be found throughout the stores, whether it’s in the kids’ department or housewares or next to the restrooms. “We want our traveling customers to take a proper break and walk around the store,” Strom explained of the strategy. “The merchandise helps them remember their road trip.”

Kum & Go has offered branded wearables in its stores for some time, and according to Jake Cavanaugh, category manager, customer response has been “extremely positive.”

Top-selling items at the chain include hats, shirts and can coolers, with many customers picking up extra items for friends and family.

The merchandise “has helped us grow our brand and engage with customers in a different way from traditional marketing,” Cavanaugh said, and “has allowed us to gain name recognition in markets we don’t operate in or haven’t expanded to yet,” thanks to purchases by travelers.

New York-based Stewart’s Shops also offers branded merchandise in its stores, such as cell phone grips marketed right at the cash register. During the holidays, the chain promotes its popular tree ornament and winter hats in store. “The benefits of offering

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branded merchandise in our shops are that it is quick, easy and convenient to purchase for our customers, while sparking interest for future merchandise,” said Kate Nelson, public relations specialist at Stewart’s.

“The merchandise helps them

remember their road trip.”

ONLINE OPPORTUNITIES Online sales of c-store wearables and other branded merchandise has particularly taken off in recent years. With c-stores tight on space, a digital storefront provides the opportunity to reach loyal customers without stealing real estate from other product categories.

Stewart’s launched its online shop a year ago. According to Nelson, “the benefits are immeasurable,” with sales already recorded in all 50 states. “A lot of our customers have moved away from the upstate New York/ southern Vermont area, so they’ve been especially excited to have a little piece of home sent to them.” Top-selling items on the site (www.stewartsshops.com) include a hooded sweatshirt and a t-shirt with the Stewart’s logo and two Adirondack chairs in front of a fire, Nelson reported. New items are added every month.

Kwik Trip also recently began offering wearable merchandise online, with all items priced below $50. According to Chris Calloway, digital marketing specialist at the Wisconsin-based chain, “The idea emerged during the Covid pandemic, as we discussed new ways to be creative and reach consumers.” For the 2020 holidays, the site (www.kwiktripmerch.com) started small with branded boxers and underwear. “We received an awesome response and decided there was a market to do even more,” he recalled. While traffic for the items is strongest during the holidays, Calloway said, “We make sure to have 365-daya-year merchandise.” In recent summers, banana-themed camp shirts and flip-flops have been popular, a nod to the fruit that has emerged as a popular item at the chain. Overall, Kwik Trip’s crewneck sweatshirt is the site’s top-selling item, Calloway said.

Kum & Go began selling exclusive merchandise online (www.merchandise.kumandgo.com) a few years ago. “Offering online exclusives allows us to move more quickly and gives us the chance to offer more specialized designs and styles,” explained Matt Riezman, director of brand marketing at the chain.

Customer response to the items has been very positive, he said, “and fans continue to ask for more.” The chain’s Kum & Gay Rights designs, first launched in 2021, “created a ton of buzz for our online merchandise sales,” the executive continued, and a second production run was added last year to meet the ongoing requests for the t-shirts.

‘SMASHING SUCCESS’ C-store giant 7-Eleven launched its online merchandise shop (www.7collection.com) last year, and according to Marissa Eddings, a senior director for the retailer, “Consumer response has been a smashing success.” The ecommerce site launch followed “heightened demand for 7-Eleven branded merch from our followers on social media over the past few years,” explained Eddings, noting that some stores carry limited items from the collection. New merchandise tied to the chain’s 96th birthday was unveiled on the website in July, and some of those items, including baby onesies, and kid and adult t-shirts, have emerged as top sellers, she reported. Other items include hats, bags and dog bandanas.

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able for purchase across the United States, and the company hopes to soon expand sales internationally, Eddings said.

Other leading c-stores that offer branded wearables and merchandise online include Wawa, QuikTrip, Yesway and Sheetz. Pennsylvania-based Wawa (www.store.wawa. com) offers clothing such as t-shirts, sweatshirts and hats, while other branded merchandise includes drinkware, beach towels and even gift baskets priced up to $100.

QuikTrip’s site (www.quiktripshop.com), meanwhile, features branded items like hats, t-shirts, onesies and Yeti drinkware.

Even Wally’s—with stores in Pontiac, Illinois, and Fenton, Missouri, and a planned location near Indianapolis—now markets its merchandise online (www.shopwallys.com).

The chain launched the site, which offers some of the popular items available in store, this summer. According to Strom, “our plan is to have a large retail catalogue online, with new products introduced regularly to keep it fresh.”

HOLIDAY RUSH Not surprisingly, branded merchandise sales ramp up during the holidays, both in the store and online. “The holidays are a time when customers look for easy, unique gifts,” remarked Nelson. As a result, Stewart’s Shops expands its selection during the

gift-giving season, adding cold-weather items like beanies and pom-pom hats. Kwik Trip’s Calloway noted that the chain’s annual “ugly Christmas sweater,” first introduced in 2021, is so popular that fans often post photos and videos of themselves adorned in the festive garment online. “We promote it as an ugly sweater, but it’s really nice,” he said of the all-knit sweater. A third edition of the Kwik Trip ugly Christmas sweater is planned for this year, along with a scarf and some holiday collectibles.

“The 7Collection holiday merch drop was a hit last year,” reported Eddings, adding that new holiday-themed items are planned for later this year, including sweaters and shirts.

At Stewart’s and Wally’s, meanwhile, holiday ornaments will return this year, while Kum & Go is considering adding more seasonal items, such as holiday sweaters, to its in-store sets, Cavanaugh noted.

C-stores promote their branded wearables not only during the holidays but year-round, with social media serving as the primary marketing channel. “A social presence is so important in spreading the word about our merchandise,” Strom said.

At Kum & Go, cross-merchandising in-store is an efficient tool for spreading awareness of its branded items. Cavanaugh pointed to tactics like merchandising can coolers in the beer cave and reusable water bottles with bottled water.

SPREADING THE WORD Beyond social media buzz, branded wearables and other items aid retailers in delivering their overall marketing messages. “As a new brand, we want to create a memorable experience for our guests,” said Strom. “The branded merchandise helps spread the word about Wally’s.” But even for established retailers, the offerings help reinforce a concept’s branding and attract new customers. “Name recognition and branding control are some of the biggest benefits,” Cavanaugh said. “Our items attract customers who might not have stopped in our stores otherwise. Once they’re inside, they then experience our great offerings and amenities.”

Eddings remarked that the 7Collection has already surpassed expectations. “7Collection started as a branded merchandise shop but has quickly become a channel to help further

148 OCTOBER 2023 convenience.org

“7Collection started as a branded merchandise shop but has quickly become a channel to help

further support our marketing programming.” support our marketing programming,” she explained. “It serves as an outlet for instore promotions and campaigns, allowing customers to engage with the brand in a more tangible way.” The site also gives the chain the opportunity to test ideas or designs with followers via social media, she added. “7Collection provides us with the flexibility to test and learn, enabling us to identify untapped opportunities.”

As with any new endeavor, the expansion into branded clothing items by c-stores has brought its share of challenges. “Running an online shop is still new to us, and we learn something beneficial every day,” Nelson said.

She and others noted that supply chain issues, while improved versus a year or two ago, can still affect the sale of branded merchandise.

“Supply chain impacts can cause challenges, especially with a lot of wearable manufacturers located overseas,” explained Cavanaugh.

“We’ve worked to bring production stateside but still sometimes experience challenges securing materials. Finding the right mix of items is always something we work to perfect, but our customers are always changing, and we work to keep up with their desires.”

Despite the challenges, leading c-stores are moving full steam ahead into wearables and other branded merchandise. Eddings mentioned a new golf collection on the 7Collection platform and Calloway said Kwik Trip sees opportunity in “lower-quantity, higher-priced merchandise,” while also not ruling out the introduction of some branded items in stores “down the road.” At Kum & Go, branded merchandise will be a “strong component of our plan moving forward,” noted Cavanaugh. “We believe that branded merchandise gives us the opportunity to connect with our customers and showcase interesting items that will leave a lasting impression.”

Terri Allan is a New Jerseybased freelance writer.

She can be reached at terri4beer@aol.com.

150 OCTOBER 2023 convenience.org

As Convenience Transforms, So Does McLane

“It’s the right moment for McLane to truly transform,” said Eric Hildenbrand, chief strategy officer for McLane Company. “We want to use the past to drive us forward.”

When it comes to McLane, that can be taken both figuratively and literally. With an origin story dating back to 1894, there are a lot of learnings to apply, and with one of the largest private fleets delivering to almost every U.S. zip code, that’s a lot of driving.

The corporate transformation now in play includes pushing even deeper into data management and data security, evolving digital solutions to drive the omnichannel experience, cementing customer relationships, building growth through strategic retail partnerships and re-envisioning McLane’s food program. “Things are developing quickly in the c-store industry,” Hildenbrand said.

“We have set out to become more agile in meeting customer needs as we both go down this changing road together.”

There are a vast number of things happening on the technology side at McLane, including a sophisticated blockchain solution, greater visibility into the supply chain, expanding 152 OCTOBER 2023 convenience.org

applications of machine learning and artificial intelligence—and a lot more analytics. “It’s a continuous transformation in these areas and we continue to invest in them,” Hildebrand said. “We will continue to leverage our insights to be a catalyst for our customers’ growth.”

The heart of the investment is understanding customers’ needs and any friction they may have. By operating at the nexus of partnership, trust, transparency, data and analytics, McLane becomes a catalyst for the success—and growth—of its partners.

Supply chain confidence may be the most top-of-mind friction point for many. “The pandemic taught us a lot and we won’t take those learnings and experiences for granted. Then and now, standing shoulder to shoulder with our customers and suppliers, we strive to deliver with operational excellence—ensuring the right product at the right time,” said Vito Maurici, customer experience officer for McLane.

Maurici fills a new role, underscoring McLane’s commitment to serving its customers.

McLane continues to work in tandem and develop strategic partnerships with operators.

Indeed, in recent years the company strengthened those relationships by adding in greater

d3sign/Getty Images

From foodservice to data security, McLane stays in step with and continues to lead a changing industry.

This article is brought to you by McLane.

Eric Hildenbrand Chief Strategy Officer McLane

Vito Maurici Customer Experience Officer McLane

flexibility to meet customer needs. “Our customers have asked us to do some things differently, and we pivoted, leaned into change and continued to listen as their strategic partner for growth,” said Maurici. “At the core of our transformation is understanding and creating a superior customer experience. I think that we have only scratched the surface in our transformation of meeting customer needs and I am truly excited for what’s ahead.”

Two critical elements McLane brings to the table for all customers: scale and trust. The company will draw from those strengths as it expands its narrative around foodservice. “We are experts at managing the supply chain to get our customers what they need. As consumer trends and customer needs evolve, as they have for fresh food, we are well positioned and prepared to execute with excellence in all areas of foodservice,” said Maurici.

McLane is prepared to meet convenience retailers wherever they are in their foodservice journey, whether that means a roller grill program or a more expansive offering like

pizza. What’s right for one operator doesn’t have to be right for another.

“The program goes much further and deeper than just a menu,” said Farley Kaiser, senior director of culinary innovation at McLane and a classically trained chef. “We take a holistic approach, from vendors to the food supply side; we proactively take care of it all to meet the needs of operators.”

Menu development then becomes the fun part, and retailers will be welcome to participate via McLane’s upcoming new test kitchen.

The aim of the space is to provide a place that is an extension of an individual retailer’s capabilities. “The test kitchen will be a place to dig in and uncover the solutions that work for different needs,” said Jon Cox, vice president of retail foodservice for McLane. “The beauty of it is that it’s practical. It reflects the c-store space and that makes it easy to see how a program could come to life in your store.”

The McLane foodservice team is already crafting recipes, narrowing down flavor profiles and testing different pieces of equipment

Reimagined: McLane Fresh Designed with convenience stores in mind, McLane Fresh offers a robust selection of on-trend items, from coffee and tea, to commissary products like fresh sandwiches and salads, to meals for all parts of the day, as well as great tasting pizza. Retailers may also take advantage of equipment program bundles that greatly reduce barriers to entry. McLane’s foodservice portfolio includes:

Farley Kaiser Senior Director Culinary innovation McLane

Pizza. This groundbreaking, proprietary freezer-to-oven pizza program (the name will be revealed at the NACS Show) is designed for any convenience store to implement efficiently and profitably. This turnkey solution meets retailers where they are on their foodservice journey, providing marketing support; merchandising; quality, competitively priced equipment bundles; and expert guidance.

Central Eats. McLane’s go-to program for grab-and-go features plenty of meals and snacks to satisfy every craving. This program offers high-quality produce and ingredients, plus an operationally efficient, robust commissary kitchen network to allow shorter timeline deliveries that maximize shelf life without compromising on freshness.

Jon Cox Vice President Retail Foodservice McLane

CupZa! This brand-new line of artisanal coffees, refreshing teas and lemonades offers exciting new flavors and drink styles to bring real value and delight to retailers of every size. McLane sources the finest coffee beans and ingredients to bring retailers a wide range of on-trend items including nitro cold brew, cold brew coffee, SHOTT beverage flavor enhancers and the latest bean-to-cup technology.

NACS OCTOBER 2023 153

as the process of perfecting the pizza program and the full McLane Fresh foodservice program continues to evolve. Retailers can use the test kitchen space for menu innovation, product sampling and program training elements.

“It’s a constant conversation about food here,” said Cox. “We want programs that are easy to execute and offer an end-to-end solution. We vetted the entire process, from purchasing pieces of equipment to helping retailers market their program—and even guiding them through quality assurance and food safety,” he said.

McLane’s proprietary pizza program—the brand name will be revealed at the NACS Show—will provide a turnkey program

with the option for retailers to customize it and make it their own. With labor issues a concern for all operators today, the program is designed with ease of execution in mind.

“Easy to execute is important, so that’s what we are providing,” said Kaiser. “Those who have enough volume may create their own brand; those in the early stages of developing a foodservice offering will take advantage of the McLane brand as they build success. The solution is here either way and we will help guide retailers in all directions.”

“We want to use this opportunity to help operators improve quality and enhance value in the food space and make a big impact in our industry,” Cox said.

Data-Driven Thought Leadership HOW CAN CONVENIENCE RETAILERS USE DATA BETTER? To remain competitive and scale, companies must innovate to offer new and better products and services that differentiate them from others in the marketplace. This is where data can be leveraged to create or enhance products, services and experiences.

Data isn’t just about the history of what happened. The power comes from using data for predictive analytics to anticipate trends and customer demands. This allows retailers to make proactive decisions and keep the control of their business in their own hands.

Leveraging data effectively can give retailers a competitive edge in an ever-evolving market.

MCLANE HAS A HISTORY OF BEING ON THE FOREFRONT OF DATA MANAGEMENT. AS OMNICHANNEL EXPERIENCES REDEFINE RETAIL, HOW WILL THAT IMPACT DATA MANAGEMENT? Omnichannel retail seamlessly integrates the various traditional channels, like physical stores, online platforms, mobile apps and social media, to provide customers with a unified shopping experience. This has considerable impact on data management.

154 OCTOBER 2023 convenience.org

Shivani Agarwal Vice President IT Infrastructure and Enterprise Services McLane

Data from each channel needs to be integrated, consolidated and rationalized into a single 360-degree view of customer behavior, inventory, sales performance and other critical metrics so the business can have insight into the success criteria for each channel. From customers’ perspective, they expect their data (shopping history, loyalty points, preferences, billing information) to move with them as they switch between channels. Operators must keep the data in sync across each channel in real time so that the customers have a seamless experience.

Understanding the customer journey across multiple channels requires comprehensive data management. This is not a onetime exercise because customer behaviors change, and therefore the experience will have to evolve with them.

DATA SECURITY IS A CRITICAL ISSUE TODAY. CAN YOU TALK ABOUT WHERE THE CONVENIENCE RETAILING SECTOR FALLS SHORT IN THIS AREA? Considerable improvement has been made in enhancing data security, but there is still a long way to go to cover significant ground. Payment security is one of the biggest areas of concern, as retailers process a large number of transactions (in-store or online).

Convenience retailers must foster a culture of security awareness within the organization.

The employees of a business are increasingly the main way hackers find vulnerabilities in the systems and attack businesses.

Some convenience retailers may lack comprehensive data protection policies and protocols. This includes inadequate employee training on data security, weak password management and insufficient access controls—all of which can create vulnerabilities in the system. Businesses must train their employees so that they are aware of and avoid being victims of phishing (attempting to gain business information such as passwords via email), vishing (phishing via voicemail or phone) and SMiShing (phishing done via text messages). This in turn will minimize the risk of cybercriminals attacking the business and/ or exploiting customer financial information.

Building a

Better Menu

Whether you call it rationalizing, optimizing or reengineering, bringing an analytical perspective to foodservice is key to success.

GVLR/Shutterstock

BY RENEE PAS

156 OCTOBER 2023 convenience.org

he mostly interchangeable terms “menu optimization” and “menu rationalization” have entered the nomenclature of convenience store operators looking to elevate their foodservice offerings. The basic concept: Use data and an analytical perspective to craft a menu that attracts customers, simplifies operations and preserves margins.

“We actually use the term ‘menu reengineer,’ said Howland Blackiston, principal at King-Casey, a company focused on menu operations that spans multiple operating segments.

“There are a lot of subtle variables, so we always start with clarifying what someone is talking about in regard to the menu,” Blackiston said. Examples of customers’ priorities include determining the right recipes for a menu item, considering if they have the right mix of menu items for their customer base and optimizing the menu board to draw in the greatest sales, as well as any kiosk or digital considerations.

NACS OCTOBER 2023 157

MENU MANEUVERS Nina Berman, project lead at The Culinary Edge, says the work of building a better menu often means taking an existing menu and amending it to be both more operationally feasible and desirable from a consumer lens.

“It comes down to how to create the ideal menu for your business and your customers,” she said. Sometimes that involves paring 158 OCTOBER 2023 convenience.org

down a menu, but it could mean taking the opposite direction and elevating items. In the post-pandemic period, most operators continue to look for ways to trim labor, putting a priority on determining which menu items are the least labor intensive.

Another consideration: how an operator can add a menu item that signals more of a chef-driven offering, Berman said, like a California turkey club sandwich instead of a standard turkey sandwich. “Savvy c-store operators are looking at how to take basic items like that and evolve them,” she said. It is part of the continued push for many operators to move towards becoming a food establishment that also sells gasoline. In this approach, she added, “The food offering shines first, and menu becomes a more curated offering.” But it’s a balancing act: “From a c-store standpoint, there is also a transition to more executable food program,” she said.

Part of the push to get to the next level operationally is moving from a seat-of-thepants approach to the menu to a more formal, analytical one. It’s the difference between thinking, “We should have a taco salad,” to researching if customers want a taco salad, analyzing if it makes sense financially and then carefully thinking through the execution. “A lot of people guestimate,” Blackiston said. “But a thoughtful brand conducts the research to find out.”

Berman looks at what to keep, what to optimize and what to retire when working through menu engineering tactics. She evaluates every item in detail. For example, can an operation cross-utilize an ingredient?

Is it possible to use cilantro in three different dishes instead of using cilantro in one dish, and then different herbs for two other dishes?

“We often scale things back both ingredient-wise and menu-wise. Huge, complex menus are not essential; people can even get decision fatigue,” she said. She stopped short of saying what the correct number of items is for a c-store menu lineup, saying it depends on the unique business, its investment and dedication to foodservice, and its customer base.

One starting point to menu simplification that Blackiston employs is to ask this key question: What is the least amount of items you can list to satisfy the majority of customers? “Say you have 30 things on menu,” Blackiston said, “What are the 18 that have

PRODUCTACTION/Shutterstock

What are the 18 [items] that have to be there because they will satisfy 90% of customers?”

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Menu Reengineering in 4 Steps Step 1:

MENU ASSESSMENT • Determine current menu strengths and weaknesses, item by item. Then, list key criteria and rate each menu item on these. Examples include sales, total food costs, price and margin contribution.

• Identify key opportunities relative to individual menu items.

This could include determining what makes star products popular, how to cut costs on select items without sacrificing quality and how to rebrand high-profit, medium-selling items to increase revenue.

Step 2:

MENU AND OPERATIONS SIMPLIFICATION • Use consumer research and a mathematical process to statistically determine if the elimination of a menu item would have any negative impact in satisfying your customers (reach) and how often customers might use your brand if that item were eliminated (frequency). Streamlining your menu will speed up back-of-house menu item preparation time, reduce inventory levels and improve customer ease and speed of ordering.

• Research will enable the operator to use applicable scores to identify high-selling, low-complexity menu items, which should then become a priority focal point versus low-selling, high-complexity menu items (which should either be downplayed on the menu or eliminated). Reduce cost of goods by better understanding ingredient usage and reducing waste.

Step 3:

CREATE OR OPTIMIZE MENU STRATEGY • Review current menu strategy (assuming one exists). A proper menu strategy establishes clear and measurable business objectives for the reengineered menu (for example, growing the average check size), outlines tactics and identifies new menu items to develop and which to eliminate.

Step 4:

MENU ARCHITECTURE • Use the new menu strategy as a guide to reorganize key menu communication tools (mobile app, website, kiosk, menu board, etc.), keying in on the items you want to sell the most.

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to be there because they will satisfy 90% of customers?” The process progresses from an individual’s best guess to a research-based answer. The objective is to determine low-complexity items with high margins. These items are candidates to be promoted heavily or can serve as inspiration for other similar items.

COMPETING HEAD-TO-HEAD Berman does believe c-store operators are ready to compete with traditional food businesses for their share of the foodservice segment. “There are definitely c-store operators taking a greater leap toward food,” she said, “and hiring the right culinary leaders to lead that program. People are willing to make the investment, but it’s important to realize the detail and challenge involved in running a food business. Food is a lot more complex than a traditional retail shop.”

Restaurant chains have been doing the work of menu optimization for years, Blackiston noted, along with the more dominant c-store foodservice leaders. In the last few years, however, he finds a larger swath of c-store operators integrating this kind of methodology into their operations.

“QSRs have got the lead; c-stores have a way to go,” Blackiston said. “But c-stores have made great progress in the last few years. The ones we are working with now, this is all new for them, but they are starting to grasp it and leverage it.” He advises c-stores with a foodservice brand to consider hiring from the restaurant sector as one way to sharpen their program.

Blackiston is so confident in the c-store sector’s ability that he believes the segment can not only equal but “surpass what restaurants are doing.” He guides c-stores to go after the foodservice business strategically, thoughtfully and scientifically. “C-stores still need to push themselves to think more like a restaurant if they really want to compete head-tohead with them.”

Artiom Photo/Shutterstock;Joanna W Photo/Shutterstock

King-Casey, a menu optimization firm, starts with the “as is” menu and concludes with an optimal “to be” menu. The company shared an abbreviated outline of the steps.

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Cracking the Code When looking at menu reengineering, factor made-to-order into the equation.

It’s not simply an important element, but instead is one that Nina Berman, project lead at The Culinary Edge, dubbed “table stakes for food at this point.” So many foodservice entities have cracked the code of making made-to-order items fast, she believes more consumers expect that as a standard option in any foodservice setting.

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In all the analysis, don’t forget that success starts with a good product.

“It has to be delicious,” Berman said. “The challenge is having the right chef team, and building the brand, and having it all be easy to execute,” she said. Historically, she explained, convenience food branding has been simple—most often the branding hinged on a plug-and-play food program.

Berman points to Kum & Go’s food program as one that is now on par with QSRs. The Culinary Edge worked with the brand to evaluate which parts of the country would support healthier food options in the c-store space and to create an innovative menu that is also simple for staff to execute.

Adding a bowls line was one way Kum & Go advanced its menu, with options such as Caribbean Pulled Pork made with pulled pork, chipotle mayo, lemon garlic vinaigrette, mango salsa, green onion, queso fresco and Takis; and the Brisket Taco made with pulled brisket, Lola’s hot sauce, jalapeno sauce, corn salsa, pickled red onion, green onion and corn chips.

The pulled brisket is also used in a sandwich and is part of a breakfast item as well, an example of how to cross-utilize an ingredient.

An increased commitment to optimizing foodservice can extend beyond the menu.

There are other aspects of foodservice in which QSRs and fast-casual segments have greater expertise than most c-store operators today. Alex Sodek, chief research officer at TELUS Consumer Goods (formerly Decision Insight), which focuses on shopper insight data, suggests that operators should understand all the tools foodservice experts apply.

BUILDING PROFITS In terms of menu assortment, Sodek routinely works with clients to increase their average ticket price. With one full-service dining client, that meant testing how the addition of a steak salad would impact sales. The answer?

It drove up overall sales dollars in the lunch segment because it was a higher-priced salad.

However, that same item on the dinner menu meant customers traded down. “Instead of ordering the more expensive steak dinner, they traded down to the less expensive steak salad,” he said. As convenience store operators evolve foodservice operations, they will also advance in using this kind of detailed user data set to become more astute operators. “Building an understanding of how to increase average ticket prices is important,” he said.

Sodek suggests that if c-store operators are not already looking at bundling opportunities, doing so is a great way to increase revenue. “Sell them more and trade them up. … C-stores already do that, but not always,” he said. Adding sweet potato fries to menus, which can include an extra $1 charge or more compared to regular fries, is one example.

Fountain drinks and bottled beverages are two specific c-store items Sodek pointed to as opportunities. Fountain drinks bring better margins, but bottled beverage bundling can be a “real win,” he said. “Look at the full lineup in the cold vault and consider how to allow the consumer to choose from any item they want there, then add a foodservice component.” That way, he explained, the c-store operator is starting with what likely led the consumer into the store and adding another item on top of that. For other foodservice operators, the beverage may be the add-on piece.

At c-stores, it may be reversed.

“I would want to know why the person was in the store,” Sodek said. “Do they come in for a drink, then decide to get food? Or is it a true destination as a replacement for a QSR? The answer has a huge impact on how you market.”

Robyn Mackenzie/Shutterstock

“There is a big difference in levels of foodservice c-store chains offer,” Sodek said. “At the end of the day, you have to decide how to create the environment you want and how to present it.”

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Is it a true destination as a replacement for a QSR? The answer has a huge impact on how you market.”

What happened, however, was not quite expected. Even though consumers mostly only purchased the three popular salads, trimming down the menu lineup gave the impression that the chain was not dedicated to offering salads. “Consumers wanted to see a fully developed salad line on the menu, even though they only ordered a few select items,” Sodek explained. To optimize the offering but retain a full, complete salad menu, the TELUS Consumer Goods team worked with the chain to create six salads that pulled from the same ingredient baseline. “We still reduced the back-of-house costs … but met the consumer wish for a larger selection of options,” he said.

That kind of thinking could help convenience stores at a time when many c-store operators struggle with how to promote healthier menus despite the fact that better-for-you items are not the biggest sellers, Sodek said. “Find a way to expand that while limiting back-of-the-house costs,” he advised.

“You can grow the menu over time without losing money.”

Sometimes restaurant operators cut popular entrees because profit margins don’t work out, Sodek said. Understanding which items make the most financial sense means looking at units sold, how profitable each unit is and calculating in-house costs—steps that are some of the building blocks of menu management.

One option that may not make financial sense: value menus. “Be careful with that,” he said, “That’s a race to the bottom.” However, TELUS Consumer Goods research does show consumers are a little more price sensitive now than they were a year ago. “Think about how that fits within the c-store platform,” Sodek advised. “Is your offering a faster/ cheaper alternative to a QSR?” Push to go one step further, he said, in order to outmatch other segments in the food game.

Renee Pas’ writing draws from both her c-store background and her more than 20 years writing about various retail channels.

She can be reached at reneepas4@gmail.com.

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Evgeny Karandaev/Shutterstockw

Another important approach is assessing where to subtract. This is an area Sodek worked on with a fast-food client. The project involved looking at the chain’s salad offering. There were three salads that dominated purchases, so the obvious conclusion was to eliminate the other salads on the menu and thus save ingredient costs and prep in the back of the house.

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PERSONALITY Convenience stores are adding murals, inside and out, to make the stores more vibrant and engage local communities.

BY AMANDA BALTAZAR

NACS OCTOBER 2023 167

C

onvenience stores are community stores—and some are drawing on the creativity of their communities to engage with customers through murals.

7-Eleven, the Irving, Texas-based retailer, is partnering with local artists and muralists.

The retailer has more than 20 murals at 7-Eleven locations in cities across the country, including New York, Los Angeles, Austin and Tampa, with seven in the Dallas-Fort Worth area.

In 2020, the c-store teamed up with Ammersion Group, a creative agency in Dallas, to commission artists to paint both interior and exterior walls, inspired by the neighboring communities.

“We intentionally select artists who are self-made and have a connection to the communities/neighborhoods we serve,” said Marissa Eddings, senior director, digital and content marketing, 7-Eleven.

The goal of the murals, said Eddings, “is to capture each neighborhood’s energy through inclusive on-site murals in order to bring connection and creativity to local communities.”

But there’s an added plus when customers take photos in front of the murals and tag 7-Eleven on social media, she added. Inside murals can bring some pizzazz to stores’ interiors, too.

Typically, when deciding on the artistic addition, 7-Eleven looks for stores in high-traffic areas with space that’s optimal for a mural, as well as stores located in areas “where we may have a special tie to the community,” Eddings noted. Several murals are at 7-Eleven’s Evolution concepts, “which are an experiential testing ground where we test new concepts, products and services before we scale them across the 7-Eleven system,” she said. “No Evolution stores are exactly alike—each site is specially outfitted to meet the needs of the neighborhood and customers it serves, making it the perfect place to host these bespoke murals.”

While 7-Eleven provides some guardrails to artists—general brand guidelines to follow—it mostly encourages them to express themselves creatively. “For example, we worked with painter and illustrator Mariell 168 OCTOBER 2023 convenience.org

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Murals help 7-Eleven’s Evolution concepts stand out.

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Guzman to capture the essence of the Lake Highlands neighborhood for her mural,” Eddings said.

Born in Michoacán, Mexico, Guzman pulled from her heritage to create murals with vibrant colors and a whimsical gaze.

Guzman wanted to bring the rich heritage of her native homeland to the community where she works and creates.

While the retailer will spend a few weeks working with artists to align on a vision, the actual work of painting only takes two to four days.

STANDING OUT FavTrip just opened its third store, in Grandview, Missouri, with fun murals inside and out. FavTrip’s two other stores, in Kansas City and Independence, Missouri, feature exterior and interior murals, too.

“We like being creative and thinking outside the box and having murals where people can take pictures,” said Babir Sultan, president and CEO of the convenience retailer.

“And people like to take photos and post to social media,” he adds. The murals also help with visibility and branding.

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Each of FavTrip’s murals is completely different, which brings personality to the specific stores, Sultan said, and each is done by a different artist, selected by customers in the community. The murals capture the artists’ unique styles with local flavor, featuring images as varied as President Truman (who was from Independence), Bugs Bunny, Martin Luther King Jr. and local landmarks.

Sultan put out a call on social media for artists or nominations for artists. “We like our customers to be involved and ask them who they prefer or have them choose a local artist,” he said. “It makes them feel a part of the store.” Customers voted for the artists they wanted via social media and in store. FavTrip trains employees to engage with its customers and ask them to vote, “when there’s not five people waiting in line,” Sultan says.

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“MORE THAN 10 KIDS WERE INVOLVED,

and we gave them gift cards.”

“I WONDERED, ‘HOW CAN WE MAKE

something vanilla stand out?’”

At Mendez Fuel, murals on its car washes need to be repainted every few years.

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FavTrip started featuring murals on its exterior walls five years ago and is now repainting some of them. At its Grandview location, it’s taking a different approach and has asked some local high school students to design and paint the artwork. The students completed the inside first, and the outside is expected to be completed by the end of September. “More than 10 kids were involved, and we gave them gift cards,” Sultan said.

The interior murals “bring some life, some personality” to the stores, he said, with colorful, fun graphics and a modern feel.

Mendez Fuel in Miami has murals at all three locations, mostly to highlight its car washes. Alex Mijares, a friend of owner Michael Mendez, painted the first one in 2012, but over the past 11 years, each has been repainted around four times. “It’s usually that the chemicals from the car wash start eating the paint, so we have to blast it all off and [the artists] come back and repaint it,” said Mendez.

“The first mural didn’t last long because it was [Mijares’] first outdoor mural, so he was learning, and so was I, about the materials, the type of paint needed. Maybe we should have

primed the wall beforehand, but we flew by the seat of our pants. Then it didn’t last long so by the second time he knew a lot more.”

Mendez opted to feature the murals “because we’re in this very ordinary business— it’s very vanilla, and I wondered, ‘How can we make something vanilla stand out?’” he said.

He spoke to his customers “and the feedback we got from the community was they love that we brought art into their neighborhood and seeing it as they drive past. So we’re doing something right.”

And there’s no doubt it’s worth it, according to Mendez. “It’s community engagement without even trying. It helps sales, but more than anything else it brings people there. You get foot traffic, and we have people take pictures in front of it and sometimes they tag us or tag the artist. We had one group try to film a music video in front of it. All those tags and posts are worth money—that’s more eyeballs.”

Local Spot requested a design that tied in with its drink offers.

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LOCALLY SOURCED Mendez and the artists have learned a lot over the years. Mijares hand-painted the first mural with a brush, “which is crazy,” said Mendez. “Then he realized he needed to get into spray-painting if he wanted to create murals. So he learned after that and he came back and spray-painted it because it came out so much better—much more vibrant.”

Mijares has created murals for Mendez locations on four separate occasions. Using spray paint is three to four times faster, he said, but he’s also started wrapping walls.

For this, he paints a picture in his home, takes an extremely high-resolution photograph of it and blows it up many times its original size. Once printed on PVC or vinyl, the image can then be applied to the wall with self-adhesive backing. The result looks like any painted mural, he says.

Wall wraps boast a number of advantages over traditional hand-painted murals. There’s minimal climbing and prolonged standing on equipment, which can sometimes be near dangerous elements like electrical wiring.

Outside wraps don’t fade as quickly due to their UV protection, and they feature a coating which allows any graffiti to be easily

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WHILE THE RETAILER WILL SPEND A FEW WEEKS WORKING WITH ARTISTS TO ALIGN ON A VISION,

the actual work of painting only takes two to four days.

wiped off. And finally, if anything does happen to the mural, a part, or the entire image, can be reprinted. “I tell my clients this is the best bang for your buck,” Mijares said. ” The cost of a wrap is fairly comparable to the initial cost of a mural, according to Mijares.

The fourth mural Mijares did—using a wrap—for Mendez Fuel was created in conjunction with Hard Rock, which teamed up with the convenience and fuel retailer for Hispanic Heritage Month. “Hard Rock will purchase the artwork, and I’ll incorporate the National Hispanic Heritage Month images,” Mijares said. “Hard Rock wants to do an activation at the space, so it will give Mendez a great deal of publicity.”

Mendez has also thought about working with a local art school to involve students.

The convenience store would pay all expenses, which are typically between $1,500 and $2,000.

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Most artists in training will do the work for free, “and it’s great exposure,” said Mendez.

“Mijares has become a big artist over the past 10 years, and he sees the value of people seeing his work. Thousands of people drive past our car washes every day.”

“We want to stay local. We’ve had a lot of artists come and petition us to show us their work and say they want to do a mural,” Mendez said. When he selects artists, he has to make sure the art they plan to paint on the walls will be generally liked by customers in the local community and not offend anybody.

Most recently, the Miami Dolphins of the NFL contacted him and suggested a mural incorporating the team at one of the car washes. “So there might be a new iteration in a partnership with the Miami Dolphins,” Mendez said.

Two of the murals will soon need an update, said Mendez. “When these come due, maybe we’ll do a little contest and people can send in submissions on social media and we’ll see if we get some viral feedback on who wants to paint our two car washes.”

WORKING WITH AN ARTIST The Local Spot in Edmonton, Alberta, Canada, features a mural in the interior of its store painted by local artist Alixandra Jade.

The mural is above the beverage and snack coolers and features the phrases “Spot Your Drink” and “Snack Zone” along with colorful graphics of foods and beverages, bringing a modern and clean look to the store.

Jade painted the murals around five years ago. Around the same time another convenience store asked her to paint an interior mural, but this one had a very different vibe.

HighEnd Convenience Store features a Mexican restaurant, and it “wanted something that when you came in, it was apparent it was different [than] a typical c-store,” she said.

The convenience stores both are “boutiquey,” she said.

Alixandra Jade completed this in-store artwork while HighEnd Convenience Store was under construction.

180 OCTOBER 2023 convenience.org

The Local Spot “wanted to add some personality to that area above the coolers,” she explained. “They pitched me that they wanted something to do with the drinks below, and they wanted the logo, and the rest was left to my creative freedom. Their logo features a teal cup, so we played off those colors and brought in some other things and colors without going too far.” The mural is around 40 feet long by five feet high.

The owner of HighEnd “wanted something Mexican-themed—Mexican-style street art— so we made it super bright and bold and fun and we played up the rich colors with the reds and yellow and oranges,” she said. The mural is 30 to 40 feet long and about 15 feet high. Both murals Jade painted are high up on the walls, which can be a dead spot in a lot of c-stores.

The murals took about a week to complete, but only because Jade was working another job during the day. She painted them in the evenings while the stores were still under construction. For the mural design process,

she likes to allow four weeks. “Some clients, I send the sketch in the morning and it’s approved by the afternoon. Others take the full four weeks,” she said. The convenience stores “were pretty fast,” she added.

The paintings should last a long time, she said. “There are no kitchen fumes or weather.

They could last 100 years . … There’s natural wear and tear, but they’re at such weird locations you don’t have to even worry about people bumping into them.”

Jade’s starting rate for murals is CA$5,000, but both convenience store paintings cost more. “It depends on what the owner sees in value return,” she said. “My goal as an artist is to make your money back 10 times over. It’s the atmosphere it creates—it’s subconscious.”

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

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

Inside the Current State of EV Charger

Maınte

182 OCTOBER 2023 convenience.org

Although there are glaring maintenance issues today, the process is maturing.

BY KEITH REID

SERGII IAREMENKO/SCIENCE PHOTO LIBRARY/Getty Images

W

hen it comes to fuel dispenser repairs and upkeep, retailers rely on in-house maintenance teams, third-party maintenance providers, distributors, equipment manufacturers and in some network areas brand partners. The same generally applies with EV charging equipment, but with mostly different players and different technical issues and challenges.

Maintenance is a mature and relatively straightforward process on the liquid fuels side, but in many ways it is the Wild West with EV charging technology. Not every charger is created equally, and not every service provider offers the same level of support. In fact, the rapid expansion of EV charging networks has outstripped the base of qualified charger technicians.

nance

NACS OCTOBER 2023 183

184 OCTOBER 2023 convenience.org

—Scott Minton, OnCue Marketing

the charge point operator (CPO), except for warranty work.

“Typically, the model we see now [for a CPO] has a lead, a software help desk manager, a hardware manager, somebody who can talk to the OEM and then one or two folks who have cloud platforms SaaS training,” said Greg Ricchiuti, a manager at Techniche. “But they’re new to EVs, so they’re looking at the messages that come in on these dashboards” and may not be sure how to handle the requests.

On the digital side things begin with the open charge point protocol (OCPP) that provides the basic interface between the hardware and the charging solution’s charging point management system (CPMS). However, the messages generated from a failure can be vague, perhaps pointing in a general direction but not at a specific cause.

Minton noted that 80% of the time most problems can be fixed by a simple reboot.

However, the other 20% can be frustrating.

“If I’m able to deliver 350 kWh but someone’s only getting 50 kWh, is it the car that has the problem? Is it the [cable] that has the problem? Is it the grid that has the problem?

Sometimes it’s very difficult to diagnose where the problem lies and everyone points a finger at somebody else,” said Minton.

A CPMS support system can help pinpoint the issue and build a maintenance database.

These systems, such as one provided by Techniche, work in conjunction with the CPMS and use machine learning and detailed fault tracking to sort vague fault messages from the OCPP into more specific failure identification. In Techniche’s case, the system also provides holistic site maintenance tracking and vendor management for issues like warranties.

PhonlamaiPhoto/Getty Images

Chargers tend to require less preventive maintenance than fuel dispensers, according to retailers with experience. Most maintenance is about solving failed or undercharged charging attempts. Further, the degree of maintenance varies with the level of EV technology (Level 1 and Level 2 vs. Level 3 DC fast chargers), and the quality of the equipment and support network varies with each manufacturer.

“The first two chargers that we installed years ago were technically Level 3 but limited to 25 kW. They were simple and used 3G modems,” said Scott Minton, director of operations for OnCue Marketing. The company operates over 75 convenience stores in the Oklahoma City area and has been on the forefront of EV adoption for years, exploring a range of solutions both in-house and third party. “There was little that could go wrong and so they almost had no maintenance. One unit was used for five years and the other for six years. I think I might have sent someone out twice to literally just turn the power off and back on. That was all the maintenance they needed—just a reboot,” he said.

Minton noted that the newest Level 3 DC fast chargers (DCFCs) are far more complex, with features like liquid cooling, heavy computer integration and more involved grid and network connections. Troubleshooting and restoring service is often more of an IT function than a hardware issue.

The uptime for the handful of chargers OnCue uses has ranged from 95% to 10%, with one particularly troublesome problem: Locking down the specific failure point(s).

This has been a challenge, but not an unexpected one.

“Obviously, all of this is new to everybody and so sometimes you’re going to have some headaches to work through,” said Minton. “At the same time, our EV customers are asking for it and we’re having pretty good success overall. We’re not making a lot of money yet, but we want to be known as the company that will give our customers what they’re asking for versus one that will be dragged kicking and screaming into it.”

The support infrastructure varies depending on the model the retailer assumes for the charging offer. This can range from little to no maintenance beyond contacting the partner, if the service is managed and maintained by a third party, to being fully responsible as

Obviously, all of this is new to everybody and so sometimes you’re going to have some headaches to work through. At the same time, our EV customers are asking for it and we’re having pretty good success overall.”

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“One customer couldn’t figure out why some chargers were failing in a certain region,” Ricchiuti said. “After about six weeks the charging sessions were just getting funky.

After looking at about two weeks of data, we determined that the cables had been sourced in Turkey, and the chemicals in those cables had been sourced somewhere in Eastern Europe. The chemical makeup was breaking down in the customer’s region, where the coastal weather was just salty and wet enough that if you bent the cable enough it would start to crack.”

With that issue identified, the customer could add this failure point into their system as one of their logic rules to check the supply chain if connection errors start appearing in those regions.

EV Maintenance Terminology Maintenance issues can be related to any of the below: EVSE—electric vehicle supply equipment. This is basically the charger, or at least the hardware portion, including subsystems like cables and connectors.

CPMS—charging point management system. This is the basic operational and back-office software that supports the charger. This is largely proprietary and differs from charger to charger.

CPO—charge point operator. This entity establishes and maintains the operation of EV charging sites.

This may also be referred to as an electric mobility operator (EMO). Charging point network operator (CPNO) and charging point services operator (CPSO) are variations largely based on their solution branding models. A fuel retailer that decides to go it alone would be a CPO. EMSP—electric mobility service provider. These businesses are typically CPO customers, and they are the direct provider of charging services to an EV owner. A fuel retailer offering EV charging would be an EMSP. As is the case with motor fuel wholesale and retail, the business models can blur between CPO and EMSP. OCPP—open charge point protocol. This is an open standard communication protocol for EV charging stations. It is a base level of communications between the hardware and the network’s CPMS that offers basic controls, diagnostics, security and identification and transaction processes.

OEM—original equipment manufacturer. An OEM is the original producer of a vehicle’s components.

SaaS—software as a service. A cloud-based method of providing software to users.

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POINTS OF FAILURE From the hardware to the software, systems fail. Failure can include undercharging, an interrupted charge session, failed charging sessions, cellular network issues between the charger and the network back end, vandalism and weather-related issues. However, there are some common issues that rise to the forefront. As has been the case on the liquid fuels side, vehicle drivers are sometimes at the root of the problems.

“Most of the time the problem is somebody’s parked cockeyed or they’ve pulled up in the wrong direction, so the cable doesn’t reach far enough, and the cable connector is angled,” Ricchiuti said. “You can put sensors in the cable to tell when it’s angled wrong, and they are improving the connectors. But I’ve seen people with $80,000 EVs pull up, charge or try to charge, and [then] just drop the cable on the ground. … We don’t see that at the fuel dispenser.”

As Ricchiuti noted, a common point of failure is the connector. This can range from the quality of the connector itself, to angle issues related to older automobiles and newer chargers, to damage at the site.

“Nobody complains about Tesla [which is a fully proprietary system including the vehicle] because it just works,” said Ricchiuti.

“And if it doesn’t work, it tends to get fixed quickly. However, when people have used extenders and you have sites that support Teslas with different connectors on public chargers or non-Tesla chargers, those can be very unreliable.”

SOLUTIONS Many of the maintenance challenges are simply due to the immaturity of the charging industry, which is fortunately changing. An example is the OCPP (2.0.1) that improves smart charging capabilities and control features.

These include predictive maintenance, enhanced data monitoring, enabling credit card payments and the Plug & Charge (ISO 15118) integration. The hardware itself is seeing more commonality and the next generation of equipment is also improving with an eye towards field serviceability and improved reliability.

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—Greg Ricchiuti, Techniche

Technicians are also becoming more experienced. The systems and the CPMS enhancement help to dramatically increase the efficiency of maintenance and repair. Further, the next generation of equipment is improving, with an eye toward field serviceability and improved reliability.

“The standard that we’re starting to adopt as an industry is 97% uptime, which is 11 days per year” of downtime, said Walter Thorn, senior vice president of product and strategy at ChargerHelp. The company provides technology and reliability solutions for maintaining EV charging stations that includes in-field services and data capture, as well as electric vehicle supply equipment (EVSE) workforce training and development. “If your phone wasn’t working for 11 days, that would be a huge problem. So, we’re striving for turnaround times much faster than that. The most common service-level agreement (SLA) that we’re doing right now is two days turnaround to get somebody out.”

At the same time, the industry is at the precipice of getting even more complex with things like Plug & Charge, where an encrypted transaction process is automated within the charging process, requiring no input from the driver. Still, there is a strong push to promote success.

“We’re very optimistic,” said Thorn. “Obviously, reliability is not where it needs to be and there’s work to be done. But we are excited about the overall narrative, whether it’s at the policy level or within the industry.”

Keith Reid is editor-in-chief and editorial director of Fuels Market News. He can be reached at kreid@FMN.com.

Richard Peterson/Shutterstock

And in some cases, it’s just a matter of the new players catching up with some conventional forecourt wisdom.

“A long time ago in the petroleum world we discovered that if a dispenser screen faces south, it got direct sunlight all day long and that can degrade the screen,” Minton said.

“Some EV folks haven’t figured that out. The screens are fading and cracking and last week I had to have them replace the screen on every single dispenser that faces south.”

Sunshades or canopies can help solve these issues as well as provide a more comfortable customer experience. However, the lack of consistency with the EV charging interface, noted earlier, complicates these efforts as well while causing some general disorder on the forecourt.

“There is a literal island under the canopy where you can have two cars pull up and fuel with gasoline,” Minton said. “The problem with EV manufacturers is that they haven’t consolidated on where to put their ports.

This truck’s got it over here, but this car’s got it on the back, or the front, or the left side, or the right side. People are trying to maneuver their way in to be able to get the cable to fit to their vehicle.”

Another issue is a lack of service technicians to meet the expanding needs of the industry.

“I’m also not getting great support from the companies themselves,” Minton said.

“Luckily, we have maintenance agreements in place, but when those maintenance agreements start to expire it’s going to get expensive to keep some of these things up. And our volume’s not high enough to really justify the cost for some of that today.”

I’ve seen people with $80,000 EVs pull up, charge or try to charge, and [then] just drop the cable on the ground. … We don’t see that at the fuel dispenser.”

Your Menu at Customers’ Fingertips At-dispenser ordering is here. Deliver more convenience with DX Market™ powered by GRUBBRR®, the newest self-ordering solution for c-stores and fueling stations. Enhance customer experience, grow basket size and increase your profitability – right where customers fuel up.

DX Market™ powered by GRUBBRR® on DFS Anthem UX™ platform

Visit the site

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DOVER FUELING SOLUTIONS

07-25-2023

Thank you to the NACS Global Supplier Council for their support of the industry’s international activities.

Global Supplier Council Advantage

Membership in the NACS Global Supplier Council (GSC) provides rich and unique benefits to NACS supplier members who conduct business on a global scale in the international convenience and fuel retailing industry.

For more information about becoming a Global Supplier Council member, contact: Bob Hughes | +1 (703) 518-4270 bhughes@convenience.org Leigh Walls | +1 (703) 518-4215 lwalls@convenience.org Member companies as of September 2023

Global Supplier Council Classic

Cool New Products Guide This advertorial-style guide of services and packaging appears monthly and is an information-packed tour of ideas and approaches that can change how consumers view your store or choose your brand. It spotlights the newest thinking in convenience and fuel retailing and gives you an advance look at ways of staying in front of industry trends.

Products are categorized the same way we organize the Cool New Products Preview Room at the NACS Show each year in October— New Design, New to the Industry, New Flavors, Health & Wellness, Green (EcoFriendly), New Services and New Technology.

Products are considered “new” this year if they’ve been introduced since October 2021.

The products featured here also can be seen in the Cool New Products Discovery Center at www.convenience.org/coolnewproducts.

NEW TO THE INDUSTRY

3CHI Delta 9 THC Drinks

Gen-Z’s New Obsession: 3CHI Cannabis Drinks!

These session-able cannabis beverages offer 5mg of fast acting, hemp-derived ∆9THC with no cannabis taste or hangover! Comes in a delicious variety 6-pack of Watermelon, Pineapple, and Black Raspberry flavors! 3CHI is the originator and leader of the hemp-derived THC industry and has a large marketing presence across the country including an exclusive partnership with Barstool Sports, primary sponsorship of NASCAR driver Kyle Busch and the #8 car, nationally-run OTT commercials, and a number of popular podcasters, comedians, and influencers across a wide range of demographics. Please contact beverages@3chi.com and see 3CHI.com for more info.

This product has not been reviewed or approved for sale by the U.S. FDA and it is illegal to sell this product under the laws of some states. You should check the applicable state and local rules before engaging in the retail sale of this product.

NACS OCTOBER 2023 191

NEW TECHNOLOGY

BIC(R) Lighters BIC(R) EZ LOAD(TM)

The longest-lasting and first ever reloadable BIC® multi-purpose lighter!

The NEW BIC® EZ LOAD™ multi-purpose lighter is the longest-lasting and first ever reloadable lighter in the history of BIC® lighters! The iconic Maxi pocket lighter can be inserted into the BIC® EZ LOAD™ shell up to 10 times for maximum performance of up to 15,000 lights! Plus, BIC® EZ LOAD™ upholds the same safety & quality as our current lighters!

NEW DESIGN

BIC® Lighters DJEEP® Lighters

Quality, Design & Style

Unique in both form and function, DJEEP lighters feature a patented rectangular tank that offers up to an impressive 3,500 LIGHTS. Paired with our stylish, embossed designs, they provide a distinctive option that offers the premium quality and opportunity for self-expression that your shoppers are looking for, at a higher price point for you. To learn how you can light up your sales, visit newrequest.djeep.com.

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Thank You to Our Members CREATED IN 1982, THE HUNTER CLUB is an elite category of supplier membership named in honor of NACS’ founding CEO: Harry C. Hunter. The club’s symbol commemorates Harry’s nickname: “The Silver Fox.” For their dauntless commitment and support in advancing convenience and fuel retailing, NACS celebrates and thanks its Hunter Club Member companies.

Gold Members Advantage Solutions Altria Group Distribution Company Anheuser-Busch BIC Corporation BlueTriton Brands Cash Depot Coca-Cola Company*

Constellation Brands Core-Mark The Ferrara Candy Company Ferrero USA FIFCO USA Gilbarco Veeder-Root** The Hershey Company* ITG Brands

JT International U.S.A., Inc. Keurig Dr Pepper Krispy Krunchy Foods, LLC Mars Wrigley* McLane Company, Inc. Molson Coors Beverage Company Mondelez International*

Monster Energy Company Oberto Snacks Inc. PDI Technologies** PepsiCo, Inc.* Reynolds Swedish Match North America Swisher International, Inc.

Dover Corporation** Ecolab Electrolit USA General Mills, Inc. Haleon Hostess Brands LLC Hunt Brothers Pizza Ignite Retail Technology InComm Payments Jack Link’s Protein Snacks* Juul Labs

Liggett Vector Brands LLC Mashgin Modisoft, Inc. Nestle USA NIQ** OPIS, A Dow Jones Company Pabst Brewing Company Pace-O-Matic Perfetti Van Melle USA, Inc. Petrosoft LLC Philip Morris International

PIM Brands PSR Brands RadiusAI Red Bull North America, Inc.** Skupos, Inc. A PDI Company Strategic Retail Partners – SRP Sweetwood Smoke & Co. Tropicana Brands Group Tyson Foods, Inc. Verifone, Inc. Vivid Impact Westrock Coffee Company

Danone North America E&J Gallo Winery Eagle Family Foods Excel Tire Gauge, LLC Factory LLC FBD Partnership, LP Flowers Foods Snack Group LLC Franke Coffee Systems Frazil Glory Global Solutions good2grow GSP GSTV The H.T. Hackney Co. Hussmann Corporation Imbera S.A. de C.V. Impact 21 Imperial Trading Company S. Abraham & Sons, Inc iSEE Store Innovations J&J Snack Foods/The ICEE Company Juice Head/Streamline Group Kalibrate Kellogg’s Away From Home Kenvue KIND Snacks The Kraft Heinz Company Lemon Perfect

Liquid Barcodes Inc. Matrix Capital Markets Group, Inc. Max Distributing McKee Foods Corporation Nashville Wire Products dba Nashville Display NCR Corporation** NRC Realty & Capital Advisors, LLC NYSLIFE Olo OWL Services P97 Networks, Inc. Patron Points Paytronix Punchh, A PAR Technologies Company Q Mixers Raymond James & Associates, Inc. Ready Training Online - RTO Revolution Tea Rich’s / f’real Ruiz Food Products, Inc. Sargento Foods Inc. Sazerac Company, Inc. SEB Professional North America

Shell International Petroleum Company Limited**^ Shiftsmart Simply Good Foods The J.M. Smucker Company Standard AI Strategy & Execution, Inc. Stuzo LLC Sunny Sky Products North America, Ltd. Sysco Corporate Taiga Data, Inc. TalkingRain Beverage Co. Techniche** Titan Cloud Software Upside UPTIME Energy, Inc. Valero Marketing & Supply The Vita Coco Company Wells Enterprises, Inc. Xcaliber International VIBEZ Sunglasses Inc. Zevia

Silver Members Acosta Group Biosteel Sports Nutrition Black Buffalo Inc. BODYARMOR | POWERADE Bucked Up C-StoreMaster C4 Energy Campbell’s Celsius, Inc. Conagra Brands CROSSMARK Convenience

Bronze Members 5-hour ENERGY Al Capone / Inter-Continental Cigar Corp.

Anchor Packaging Bimbo Bakeries USA/ Barcel USA BeatBox Beverages Black Rifle Coffee Company BMO Bounteous BP North America, Inc.**^ Broaster Company Buddy’s Kitchen, Inc. Bunn-O-Matic Corporation C.H. Guenther and Son CAF INC. Carat from Fiserv Cardlytics Cargill, Inc. Cenex^ Chester’s International Chevron Corporation^ Circana CigarBros USA, Inc. CITGO Petroleum Corporation Clear Demand, Inc. Coin Cloud CORD Financial Services CSN

* NACS Global Supplier Council – Classic Members (6) ** NACS Global Supplier Council – Advantage Members (9) ^ Retail Hunter Club Member as of September 2023

NEW TO THE INDUSTRY

Crane Payment Innovations Paypod™ Compact

Paypod Reduces Operational Costs and Maximizes Customer Throughput Successful checkout strategies begin with exceptional payment technologies, which is why CPI delivers the industry’s most sophisticated and secure cash handling devices. Paypod Compact is the cornerstone of CPI checkout technology, delivering fast, secure, compact cash acceptance in all checkout designs. The new front-access variant, equipped with CPI note and coin acceptors, enhances the store experience by automating cash acceptance and minimizing wait times for all customers – not only those paying with a card or digital wallet.

Featuring a secured cash cabinet and sleek design, Paypod Compact can easily integrate into an existing POS system to provide cash-using customers with a seamless payment experience. Retailers can also benefit from monitoring real-time analytics through the Simplifi™ Remote Management Software.

Contact us - https://solve.cranepi.com/nacs-2023-more-info

NEW TO THE INDUSTRY

Diageo The Cocktail Collection

Ready-to-Serve Cocktails Made By Award-Winning Brands

Introducing The Cocktail Collection, a range of ready-to-serve cocktails from some of the world’s greatest brands. You can now enjoy high-quality cocktails perfected by bartenders either at home or at your favorite local hangout.

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TruAge® is now live!

We’re excited to announce the launch of TruAge, a free digital age-verification tool that makes ID checks more accurate, efficient, and secure—so you can sell agerestricted products responsibly. Developed

by NACS and Conexxus, TruAge is currently available on the following point-of-sale systems: Verifone Commander 54.00 or higher, Pinnacle Affiniti, CDE ChexIt, and TruAge Dash.

Come visit us at the NACS Show BOOTH #9997

Activate TruAge for

Enter for a chance to win a Verifone

Get all your questions answered

your store—it’s free!

Commander point-of-sale system

and play Spot the Fake!

Don’t miss the TruAge education session October 4, 2023, 8–9 AM EST | Room A313

Scan to learn more

NEW DESIGN

Fabian Couture Group Dresscode 100% Polyester Short Sleeve Polo Shirts

Enhance Your Team’s Look with Custom Embroidered Polos!

Elevate your team’s style and performance with our 100% polyester short sleeve polo shirts! Designed for durability and comfort, these shirts feature anti-snag, moisture-wicking, stain-release, and antimicrobial properties. Includes no-roll collars and expert embroidery, ensuring your team looks and feels exceptional while enhancing your brand’s image!

NEW FLAVORS

Johnsonville, LLC Chipotle Cheddar Sausage

Add Roller Grill Spice! Johnsonville’s New Chipotle Cheddar Sausage!

This sausage is naturally smoked with hardwood chips, seasoned with chipotle, and blended with real creamy Wisconsin cheddar. Count on Johnsonville to bring the heat that’ll drive traffic to your roller grill. For more information, visit https://johnsonvillefoodservice.com Come see us at the NACS Show, booth C6911

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y g lo o n h c e T D E C N A ADV s e t a r g e t In Y L S S E L M that SEA

Streamline Your Operations Say goodbye to manual processes and inefficiencies by utizing industry approved standards

Elevate User Experiences Provide frictionless customer interactions and seamless backend processes for enhanced user engagment

Conexxus is a member-driven non-profit dedicated to innovative development and implementation of technology standards.

Join today to improve your business processes, reduce IT ownership costs, and increase operational productivity!

Stay Cutting-Edge Empower your team to keep pace with emerging trends, breakthrough technologies, and industry best practices

Visit us at the NACS Show!

Booth #B3663 Hands-on Demos!

8112 Digital Promotions +

InStore.ai

conexxus.org/join

Thank You 2023 Conexxus Diamond Annual Sponsors

conexxus.org/join

info@conexxus.org

NEW FLAVORS

Johnsonville, LLC Grab & Go Sandwiches

Crave-worthy flavors packaged for convenience

Six delicious flavors from America’s #1 sausage brand*, each wrapped in a hearty, soft baked bread for the ultimate grab & go package. Satisfy cravings across all dayparts and capture more sales with classic favorites and trending flavors like Smokey Cheddar, Beef Hot Dog, Jalapeno Cheddar, and more. *IRI 7/9/23 For more information, visit https://johnsonvillefoodservice.com Come see us at the NACS Show, booth C6911

NEW FLAVORS

Johnsonville, LLC Pizza Recipe Sausage

Trade a slice for a sausage! Johnsonville’s New Pizza Recipe Sausage!

Inspired by a classic favorite and crafted into the convenience of a sausage, Johnsonville’s new Pizza Recipe Sausage is uniquely seasoned and made with a creamy four-cheese blend of mozzarella, cheddar, Romano, and Parmesan. Bring delicious excitement to your roller grill that’ll satisfy consumers and boost your profits.

For more information, visit https://johnsonvillefoodservice.com Come see us at the NACS Show, booth C6911

198 OCTOBER 2023 convenience.org

NEW TO THE INDUSTRY

Modern Store Equipment Secure Cooler & Secure Display

SECURE THE STORE WITH LOCKING COOLER DOORS & DISPLAY CASES.

Modern Store Equipment offers an unparalleled level of protection from theft with Secure Cooler and Secure Display. High power electromagnetic locks have the muscle to withstand hundreds of pounds of force per door. Access is easy with the swipe of a keycard or fob. The advanced app lets you program and control access from anywhere in the world 24/7. It’s easy to manage alcohol sales per your local laws with auto lock and unlock at the same time every day. Available on new cooler doors and can be retrofit on your existing cooler doors.

Freestanding non-refrigerated displays available in 4 sizes. From the company that helps you build your most profitable store with shelving, counters, beverage and food prep, tobacco merchandising, and more. Visit our website or NACS booth BC6128 to learn more.

NEW TO THE INDUSTRY

Monarchy Beverage Company Monster Tour Water ™ - Still and Sparkling

Monster ® Launches Tour Water for the public!

Making water to support the Vans Warped Tour ®, it’s Musicians, Artists, and Athletes since 2003, Monster ® has now made its Still and Sparkling water available to the public. No caffeine, no additives, just straight up great tasting pure water, nothing else! Using bold retro can designs dating back to the 2007 and 2010 Vans Warped Tour ®, these amazing looking cans are sure to attract attention on the water shelves, and the pure, great taste will draw customers back for more. Available in 19.2 oz singles, and 12pk/16oz for both Still and Sparkling water. Want to turn the volume of your water sales up to 10?

Reach out to Jon Bevins: (603) 793-1287 or jon.bevins@monarchybev.com NACS OCTOBER 2023 199

NEW FLAVORS

Monster Energy Company Monster Energy Zero Sugar

Introducing New Monster Energy Zero Sugar

Introducing the new, Monster Energy Zero Sugar! Made of the same DNA as Monster Energy Original, but without the sugar. Don’t believe it? Try it yourself. Same powerful punch. Same badass lifestyle. Zero Sugar, Monster buzz… Visit MonsterEnergy.com/ZeroSugar for sales inquiries.

NEW TO THE INDUSTRY

Pace-O-Matic Skill Games and Ticket Redemption Terminal (TRT)

Ramp Up Revenue with the Leader in Skill Games

Pace-O-Matic, the leader in skill games, generates new, supplemental, and sustainable revenue for convenience stores.

Players seek our games to have fun and use their skills to win cash. While on-site, players also make additional purchases across the location.

Our machines have no upfront cost, don’t require resources, and have no operational burden. Our operating partners provide full-service support from installation to collection. We are the only skill game company to offer contractual legal indemnification.

For more information, visit www.paceomatic.com or email atlaccounts@paceomatic.com

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NEW TO THE INDUSTRY

Rich Products Rich’s® Cheesy Pull Apart Flatbread

EASY & CHEESY.

Rich’s Cheesy Pull Apart Flatbread delivers a cravingly convenient appetizer, pizza or dinner accompaniment, or late-night snack consumers can bake right at home! Retail-ready Cheesy Pull Apart Flatbread arrives packaged and ready to grab ‘n go for stretchy, cheesy satisfaction with freezer-to-oven ease.

To learn more, visit our booth #C6831 at the 2023 NACS Show October 4-6th, or visit richsusa.com/pizza

NEW TO THE INDUSTRY

Ty Inc Holiday Beanies

New Holiday Beanies!

Please contact Peter Olbrys at 630.432.3329 or polbrys@tymail.com about bringing Ty into your locations.

NACS OCTOBER 2023 201

NEW TO THE INDUSTRY

Volpi Volpi Snack Cups: Cheddar & Uncured Pepperoni and Fontina Cheese & Genoa Salame

Introducing Volpi Snack Cups

Introduce shoppers to a new line of better-for-you snacks. Made for the health-conscious commuter, Snack Cups are high in protein and fit perfectly in the cupholder of your car. Crafted from pork that is always Raised Responsibly™ and all-natural ingredients, Snack Cups are sure to please adults and children alike.

NEW DESIGN

NEW FLAVORS

1440 Foods

1440 Foods

MET-Rx Big 100 Meal Replacement Bar

Pure Protein Bars

Salted Caramel Brownie Crunch

New Look, Same Taste

MET-Rx Big 100 Salted Caramel Brownie Crunch Bars are delicious meal replacement bars that include high-quality protein to fuel up on demand. Made with brownie crunch and salted caramel, this meal replacement bar delivers a delicious, satisfying taste.

These nutritious MET-Rx bars are naturally flavored and provide 19 vitamins and minerals, including a significant source of Zinc and Vitamins A and C. With 30 grams of protein per bar, this salted caramel brownie crunch bar is a great way to help promote muscle recovery.

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Protein has never looked (or tasted) this good! Add a small win to your day by snacking on a Pure Protein bar with high quality protein, an essential part of a nutritious, balanced diet. Each protein bar contains 19-21g* of protein, 1-4g* of sugar, and 200 calories or less. Pure Protein, Protein That’s Pro-You! Learn more at PureProtein.com. *Depending on flavor

NEW FLAVORS

NEW TO THE INDUSTRY

Eagle Family Foods LLC

Eagle Family Foods LLC

GH Cretors Caramel Puffs

Hamburger Helper Microwavable Cups

Sample at Booth #C9355

NEW!

A unique snacking experience like never before! These Cretors bite-sized puffed corn snacks are perfectly coated in caramel for a crunchy outside with a light and airy inside.

Made from scratch in copper kettles over an open flame, you’re sure to find these indulgent puffs melt in your mouth. Made with high quality, real ingredients, treat yourself to our craveable and obsessively delicious® Caramel Puffs! From our kitchen to yours - Happy Snacking! Visit us at booth #C9355 at NACS Show or Cretorspopcorn. com to learn more! Ready to Ship!

Introducing NEW! Hamburger Helper Microwavable Cups. This small cup delivers a hearty meal or snack with classic flavors from Hamburger Helper and REAL BEEF inside!

Simply add water, heat for just 3 and a half minutes, and enjoy! Flavors include Cheeseburger Macaroni and Beef Pasta in a 2 oz Microwaveable Cup. Visit us at booth #C9355 at the NACS Show to learn more!

NEW FLAVORS

NEW DESIGN

TRION

Diageo Beer Company

ZipTrack w/ Locking Pusher (option)

Smirnoff Ice Headliner Variety Pack

EASILY REAR LOAD DRINKS.

Flavors That Take Center Stage

Locking pusher makes rear loading grab-n-go drinks a breeze! Free both hands to quickly load even the deepest coolers from behind. Each lane easily adjusts to consistently push forward skinny Red Bulls to large Gatorades. Made to precisely fit all shelf depths. Avoid annoying gravity feed tip-overs. Keep single serve drinks always presented attractively at the shelf front.

Introducing the New Smirnoff Ice Headliner Variety Pack Get ready to rock and give FMB fans what they want. This new variety pack brings the greatest hits of flavor together: Smirnoff Ice Original, Smirnoff Ice Strawberry, Smirnoff Ice Mango & Smirnoff Ice Blue Raspberry Lemonade. This pack is taking center stage!

Please Drink Responsibly.

Smirnoff Ice Premium Malt Beverages. The Smirnoff Co. New York, NY NACS OCTOBER 2023 203

NEW DESIGN

NEW TO THE INDUSTRY

Anchor Packaging

Bidi Vapor, LLC

Safe Pinch® Rounds plus 3-Compartment Tray

BIDI® Stick

More Versatility for Grab & Go!

Premium Vaping Device, 11 Flavors

The new 3-compartment tray insert adds amazing versatility to the Safe Pinch® 7” crystal clear bowls. Large windows with minimal ribbing and anti-fog keep food highly visible in both refrigerated and ambient temperatures while the secure, stackable design creates an eye-catching display. The Safe Pinch® patented, pinch-to-open, no tear-strip design is preferred by consumers and ideal for hand or automated filling.

Discover a new high-margin item for your store. The BIDI® Stick, recently exhibited at the 2023 NACS Show in Atlanta. After a major legal victory last year, Bidi Vapor is one of only a handful of companies that can legitimately sell its 11 flavored varieties. The BIDI® Stick is a premium vape pen that delivers a consistent puff and a high level of user satisfaction for adult smokers 21 and over. To sign up to become a Wholesale or Retailer Partner, visit http://wholesale.bidivapor.com.

NEW TO THE INDUSTRY

NEW FLAVORS

Frazil

f’real

Café Tango

f’real Birthday Cake Batter Milkshake

Introducing Café Tango

Come see us at the NACS Show!!!

Frozen coffee is booming, and it’s time to stop letting coffee shops capture all the growth. Introducing Café Tango, a premium frozen coffee for your customers. Tested against the best coffees in the industry, Café Tango’s French Vanilla and Mocha flavors are a delicious and refreshing treat. Come by the Frazil, NACS Show booth (C7101) and try some!

Celebrate the 20th anniversary of f’real with a Birthday Party happening at our booth C6831 on Thursday, 10/5, from 1-3pm. Enjoy samples of our new limited-time milkshake, Birthday Cake Batter, as well as Rich’s birthday cake. Take time to indulge, celebrate and discover more about f’real beverage solutions. We look forward to seeing you at our NACS Show booth!

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NEW TO THE INDUSTRY

NEW FLAVORS

Geloso Beverage Group

Greenridge

Clubtails Crushers

Greenridge Naturals Snack Sticks

Try Clubtails Crushers Today!

All-Natural On-The-Go Energy

Clubtails Crushers, at 5% ABV is the Clubtails Cocktail you can Crush! The same beloved Clubtails cocktails at a smoother 5% ABV - for the many consumers chasing the flavors they love in the massive Low ABV segment of the FMB category. The ABV segment of the FMB category is over $2.7 Billion in dollar sales and over 400 Million in unit sales over the last year. Clubtails is the #1 selling FMB cocktail in High ABV! Clubtails Crushers has the strong potential to become the #1 cocktail in Low ABV!

Greenridge is a family-owned brand that produces all-natural meat sticks, deli meats, and sausages. Our popular beef and chicken snack sticks will debut at NACS in convenient 1 ounce servings. Four delicious flavors including Italian-Style Grass Fed Beef and Buffalo Chicken Snack Sticks. The Italian Stick features a mix of hot peppers, while the Buffalo Chicken Snack Sticks are zesty and made with antibiotic-free chicken.

Available in multiple snack pack sizes, these all-natural snack sticks are high in protein, with zero sugar and no added nitrates, nitrites, or artificial flavors. Booth #B5107.

NEW FLAVORS

HEALTH WELLNESS

Wonder Juice™ Wonder Melon™, Wonder Lemon™, Wonder Beet™

Taste the Wonder~100% Organic Reimagine refreshment with Wonder Juice’s remarkable trio: Wonder Melon, Wonder Lemon, and Wonder Beet. Crafted to perfection, grown organically, sourced sustainably, and enriched with the goodness of non-GMO ingredients. Elevate your senses with the revitalizing sweetness of Wonder Melon, the invigorating zest of Wonder Lemon, and the hearty richness of Wonder Beet.

Mike’s Hot Honey Honey Infused with Chili Peppers

Give Your Menu a Kick with Sweet Mike’s Hot Honey was founded out of a Brooklyn pizzeria in 2010 and has become the #1 fastest growing pizza topping. From the original pairing on pepperoni pizza to wings, fried chicken sandwiches, ice cream, lattes and so much more, there are endless possibilities for any menu. Available through DOT Foods in an array of pack sizes from bulk jugs to single serving dip cups and squeeze packets, integrating Mike’s Hot Honey into your operation has never been easier. Request a sample today to see what all the buzz is about: mikeshothoney.com/sample NACS OCTOBER 2023 205

NEW TECHNOLOGY

NEW TO THE INDUSTRY

nData Services, LLC

Sunny Sky Products

Digital Couponing and Promotion

UPOURIA® Cold Brew

8112 Digital Coupons Drive Sales

Introducing UPOURIA® Cold Brew

8112 digital coupons integrate with existing POS systems, enabling access to the best manufacturer offers available, without the hassle of paper or expense of loyalty programs. 8112s are all-mobile and fraud free, with real-time validation, automated submission and reconciliation, no chargebacks or deductions, fast payment, and rich data insights. Major brands are now issuing digital coupons directly to consumer phones and you can benefit. nData will set up your store to accept 8112 digital coupons for FREE! Lower costs, increase revenue. Contact us today at info@ndataservices.com.

UPOURIA® Cold Brew products are made with premium 100% Arabica Cold Brew coffee extract, real dairy, and no preservatives. They’re bold and refreshing, with a smoother, less acidic flavor than traditionally brewed coffees. Enjoy great-tasting and on-trend flavors including French Vanilla, Mocha, Salted Caramel, Regular, Black & Bold, Frappé, and Horchata.

PHONE: (877) 235-6466 | EMAIL: info@sunnyskyproducts.com

NEW TO THE INDUSTRY

NEW FLAVORS

The Lumistella Company, Home of The Elf on the Shelf Brand

The Vita Coco Company

Elf Mates Impulse PDQ - companions to The Elf on the Shelf

Vita Coco Pineapple Coconut Water

Inspire Kindness Through Play!

Tropical Flavor, Unleashed

Huggable, playable Elf Mates pals are Santa’s champions of kindness!

These enchanted forest elves from Santa’s magical universe are perfect for stockings and on-the-go gifts. With a magical golden heart and a special mission from St. Nick, each pal shows us why it is better to give than to receive. Collect all three—the cobbler, toy maker and chef, to help Santa build Christmas cheer!

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Our delicious, hydrating coconut water mixed with bold, tropical, pineapple flavor, one sip of Vita Coco Pineapple Coconut Water will transport you right to your favorite island vacation destination—even if you’re still sitting on your couch. The highest-distributed coconut water pack type in c-store, Vita Coco Pineapple is the #1 flavor shoppers pick up when first trying the brand and over-indexes with over 80% of c-store shoppers. It is gluten-free, non-GMO, and 120 calories (per 8 fluid ounces).

NACS

NACS State of the Industry Data Archive

What does good look like?

Discover the pinnacle benchmarking tool for convenience – NACS State of the Industry Data Archive historical data visualization tool. Uncover up to a decade of the most comprehensive collection of aggregate convenience store data, trends, and unparalleled insights, in an instant. Get immediate year-over-year industry data and exclusive access to current year’s SOI Data in Excel format. Plus, your subscription is enterprise wide. Yes, your entire company gets access.

Scan the QR code now for more information and to request a demo.

NEW TO THE INDUSTRY

Volpi Foods Volpi Salami Stix in Original and Spicy

Introducing New Volpi Salami Stix Available in Original & Spicy Flavors

Upgrade your fresh snacking set with high protein, shareable snacking solutions. Volpi Salami Stix are packed with 14 grams of protein for energy on-the-go, making them the perfect snack to enjoy while hiking or after a workout at the gym. Crafted with pork that is always Raised Responsibly™, you don’t have to sacrifice quality for convenience anymore.

GAS STATION GOURMET

The Craft of Birria Birria Boys—built around delicious birria—is a hit in Elk Grove, California.

BY AL HEBERT

C

hris Cornelis has a passion for food—good food. “When I was younger, I worked in the food industry, and it wasn’t paying enough. I worked at ritzy restaurants. I lost hope, gave up, and left the business. But it is my passion,” he said.

Oftentimes people who cut their teeth in the food industry and step away will find their way back. Cornelis felt that pull to return to the kitchen, and when he did he tried something different.

“I started a food truck with my brother. It got popular fast! We had long

lines, and when I say long, it stretched for a block,” he said. “We’d sell out in two hours and people would get upset. I couldn’t keep up with the demand. We knew we needed a brick-and-mortar location. Even now, we have long lines and run out of food.”

Unlike south Louisiana or Texas, gas station food is not that common in northern California. Cornelis, however, saw the potential at a local Shell station.

Inside the store, there was a kitchen space and window for a QSR sandwich shop that failed. The space sat empty for 15 years. “They were using it for storage.

I talked to the owner about taking over the space, and he was all for it. We came in and started operating Birria Boys in July of 2022. We brought life to it,” said Cornelis.

Birria Boys sells the food and the c-store sells the drinks. It’s a good partnership that’s bringing a lot of foot traffic inside the store.

20 SPICES, 9 HOURS What makes Birria Boys so popular?

First, it’s the birria. Cornelis explained, “Birria is beef short rib seasoned with 20 spices. We cook it for nine hours and it takes about an hour and a half of prep prior to cooking. By the time it’s done, there’s no bone or cartilage and

208 OCTOBER 2023 convenience.org

it’s shredded on a taco. We have 100% success rate on no bone and no cartilage.

That’s how tedious the process is and how we pay attention to detail,” he said, adding, “It’s a craft, and at the end of the day, the craft needs to be performed well. It really is our signature food.”

The queso tacos are the most popular menu item. “This is a corn tortilla, fried to a crisp, then we add Monterey cheese and your choice of meat, but I recommend the birria.”

On Tuesdays, Cornelis runs a special that capitalizes on the tacos. “You buy three tacos and you get a free taco.

Sometimes the line goes out the door,” he explained, adding, “I have a good team. We’re efficient but it’s still a lot— sometimes it’s too much just for the size of the facility and the people. Customers come in masses.”

FROM GRILLED CHEESE TO CHIPOTLE TARTAR To compete in the food business, you have to think outside the box—and garlic bread grilled cheese is definitely not inside the box. “Who doesn’t like garlic bread? … I’ve been doing this since the food truck, almost three years,” said Cornelis.

Cornelis points out something that sets him apart from bigger chains:

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Birria Boys is located inside this Shell station.

You Had Us at Tacos The birria crunch wrap is one of the signature items at Birria Boys.

“Everything we serve is organic and local. I have a surf and turf. It’s seared steak with shrimp and chipotle tartar sauce. I peel the shrimp each morning so it’s fresh.”

His enthusiasm for cooking is boundless and palpable. “Everything sells ridiculously. We have people who drive really far to eat at our gas station. Some people drive three hours from Fresno.”

Social media plays a part in the success. “Our social media is busy and popular. For me, it was connecting us with different forms of people’s interests. When I had the food truck, we connected with the car community.

We provided food for a racetrack. You’d have thousands of people eating our food. A lot of car people enjoyed our food,” he explained.

“Our Instagram is very popular. It kind of manages itself. My brother and I take the photos. Everything we do is in the middle of a rush and on the spot so there’s no planning. We post a video 210 OCTOBER 2023 convenience.org

once a week to let them know we’re here to make great food for them.”

Catering also offers a great revenue stream for people in the food business— and even better when it rolls up to the venue. “We still have the food truck, and we use it mainly for catering events. We do a lot of catering. It’s not the backbone of the business but we do really large orders. We’ve done 300 tacos in the middle of a rush,” he said.

Cornelis feels strongly about giving back to the people who have helped him become a success. “A big thing for us is community service. Our first year in the food truck, I teamed up with my friend who had a car shop. We collected toys for Christmas and got about 1,000 toys. This year at the store we teamed up with our local fire department and helped raise money for the local burn unit. People come from all over the country to go to the burn unit at Shriner’s Hospital. I don’t take it off taxes; I just do it to help people.”

During his West Coast road trip in June, NACS Chairman Don Rhoads and the NACS team stopped by to visit Chris Cornelis and his team at Birria Boys—and of course eat the food. “Easily the best tacos we had in California, and in California there are a ton of places to eat excellent tacos,” said Chrissy Blasinsky, NACS digital and content strategist.

From a food truck to a gas station, Cornelis creates food destinations. So what’s next?

“You never know what I’m going to do next. My mind is always running.

I’m spontaneous. Our goal is to open a couple more restaurants and to be a national chain,” he said.

Keep watching.

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

CATEGORY CLOSE-UP CANDY

Keeping It Sweet

$4,103

The average gross profit dollars per store, per month for candy sales in 2022.

Source: NACS State of the Industry Report of 2022 Data

Convenience retailers can rely on the candy category to consistently deliver profits.

T [Our queue line] gives us a vehicle to get something directly in front of the customers.”

212 OCTOBER 2023 convenience.org

he candy category continues to be a sweet bet for convenience retailers. Candy posted a 51.84% gross margin last year, which was an increase of 1.27 points over 2021, according to the NACS State of the Industry (SOI) Report of 2022 Data. Gross profit was up 18.0% in 2022 over the prior year, and the category represented $4,103 in gross profit per store, per month and accounted for 5.00% of total inside gross margin.

With candy representing 3.55% of inside sales in 2022 (up 0.27 points from 2021), retailers saw an average of $7,914 in sales per store, per month in 2022—an increase of 15.1% from 2021, according to the SOI report.

“Candy was the No. 6 category in terms of gross margin contribution last year, and it’s easy to see why,” said Jayme Gough, research manager, NACS. “It’s a highly impulsive category, especially when consumers choose to indulge, making it a profitable basket builder.”

According to Joseph Bortner, senior category manager, Rutter’s, the candy category is “thriving” in the company’s 85 locations across the Mid-Atlantic.

“It’s thriving through a lot of the pricing changes that we’ve seen over the last 18 months, [and] we’re still seeing unit growth on the same-store basis,” he said. “King size is still the main driver, but we’ve seen the most growth out of gum and mint.”

TheCrimsonMonkey/Getty Images

BY SARA COUNIHAN

NACS OCTOBER 2023 213

CATEGORY CLOSE-UP CANDY

Industry Sales

% of in-store sales

3.28% 2021

3.55% 2022

Avg. sales/store/month

$6,876 $7,914 2021

2022

214 OCTOBER 2023 convenience.org

However, what’s pulling the candy category down for Rmarts is the bagged/repacked peg candy subcategory. “It seems like it’s too big of a ring, and [customers are] not going for that big, six-ounce bag of candy. … I think most people would just want to eat a candy bar and then be done with it.”

However, Baltimore-based High’s is seeing a “huge” customer transition to bagged/repacked peg candy. “Chocolate is still by far our largest subcategory.

It makes up roughly 55% of our overall candy sales, but our sales are flat to down in terms of units. But with the larger pack sizes, we’re seeing a lot more people value shopping because the perceived value in those pack types is more,” said Noah Sanders, category manager, High’s.

According to NACS SOI data, bagged/repacked peg candy was 22.0% of category sales in 2022 and saw a year-over-year sales uptick of 20.6%, as well as a 24.5% increase in monthly

% of stores selling

99.5% 99.9% 2021

2022

Source: NACS State of the Industry Report of 2022 Data

Yevgen Romanenko/Getty Images; Anna Zasimova/Getty Images

THE PIECES OF CANDY Nearly all the candy subcategories experienced year-over-year sales and profit increases. The top four subcategories each experienced double-digit growth in both sales and gross profits.

The chocolate bars/packs subcategory is the largest sales contributor (37.4%) to the candy category, and trends within this subcategory are highly reflective of the category, according to Gough. Chocolate bars/packs sales per store increased 13.0% in 2022, averaging $2,961 on a monthly basis, and a gross margin increase of 1.21 points helped yield a gross profit increase of 15.8%, according to the NACS SOI report.

Chocolate bars dominate candy sales for Chicago-based Rmarts. “80% of our [candy] sales are the king-sized and regular-sized candy, and that’s really what’s holding up our numbers for sure,” said Dan Razowsky, director of operations and marketing, Rmarts, which has 13 stores in the Chicagoland area.

CATEGORY CLOSE-UP CANDY

NACS CSX Benchmarking Database, Per Store, Per Month Sales

n 2020

n 2021

n 2022

n 2023

$8,803

$9,000 $8,000 $7,000 $6,000 $5,000 JAN

FEB

MAR

APR

MAY

JUN

JUL

AUG

SEP

OCT

NOV

DEC

Source: NACS CSX Convenience Benchmarking Database

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

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

216 OCTOBER 2023 convenience.org

gross profits. According to The Hershey Company, retailers that lean into take-home packs are seeing growth.

“We are seeing continued stickiness of the take-home pack post-pandemic,” said a Hershey representative.

The third largest category contributor, accounting for 16.7% of candy sales in 2022, was the non-chocolate bars/ packs subcategory. This subcategory increased its sales by 21.9% and gross profits by 25.2% last year, which was the most among candy subcategories. It also had the second-largest gross margin among subcategories at 54.48%, which was up 1.44 points from 2021.

Hershey says that its non-chocolate brands continue to accelerate. Its Jolly Rancher brand is up 13.6%, and

its Twizzlers brand growth is up 39%, fueled by take-home 16-ounce displays and food bundles.

The fourth largest sales subcategory in 2022 was gum, which struggled in 2020 due to social distancing. However, with most consumers back to their pre-pandemic habits and activities, sales of the subcategory increased by 20.8% and gross profits increased by 24.7% in 2022, according to NACS SOI data.

“Gum sales have made a strong recovery,” said Gough. “In 2023, monthly sales were higher in the first three months of the year for the first time since 2020.”

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CATEGORY CLOSE-UP CANDY

Subcategory Data Same-Firm Sample, Per Store, Per Month Avg. GP$/Store

Gross Margin %

2021

2022

2021

2022

2021

2022

2021

2022

Chocolate Bars/Packs

38.1%

37.4%

$2,619

$2,961

$1,306

$1,512

49.85%

51.06%

Bagged or Repacked Peg Candy

21.0%

22.0%

$1,443

$1,740

$723

$900

50.10%

51.72%

Non-Chocolate Bars/ Packs

15.8%

16.7%

$1,085

$1,323

$576

$721

53.04%

54.48%

Gum

9.9%

10.4%

$679

$821

$346

$431

50.93%

52.55%

Novelties/Seasonal

4.8%

4.5%

$332

$354

$158

$177

47.50%

50.08%

Candy Rolls, Mints, Drops

3.9%

3.8%

$267

$300

$135

$158

50.62%

52.82%

Change Makers/Penny Counter Goods

3.1%

2.6%

$215

$209

$120

$121

55.81%

57.77%

Bulk Candy

3.4%

2.6%

$235

$207

$114

$83

48.39%

39.97%

Total Candy

100.0%

100.0%

$6,876

$7,914

$3,477

$4,103

50.57%

51.84%

Candy

Percent of Sales

Avg. Sales/Store

Source: NACS State of the Industry Report of 2022 Data

There are so many people who left the candy category entirely, either for health or lifestyle reasons, who are finding their way back through better-for-you options.”

218 OCTOBER 2023 convenience.org

MERCHANDISING TO MOVE Even though candy is an impulse category that does sell easily, it is important to merchandise candy so it makes the most impact. Rutter’s leans on its queue lines to increase impulse purchases and basket size. “[Our queue line] gives us a vehicle to get something directly in front of the customers. They walk through it, and it’s a way that our team can get creative and create unique displays,” said Bortner.

But merchandising isn’t just about placement, it’s also about engaging your employees in the merchandising process, he said.

jirkaejc/Getty Images

Rutter’s has seen the most growth in the candy category from gum and mints.

“I’d say that by now, we have fully rebounded from any softness that the pandemic had caused,” said Bortner.

According to Hershey, refreshment trends are strengthening as mobility increases and workers return to the office. Its Ice Breakers brand is up 39%.

CATEGORY CLOSE-UP CANDY

220 OCTOBER 2023 convenience.org

’Tis the Season The novelties/seasonal subcategory is a smaller contributor to overall sales in the candy category, but these candies are a margin generator, bringing in 50.0% in gross margin profit in 2022. But selling seasonal candy can be tricky. Here are some tips from the experts: The first step is making sure that you planned for each of your stores accordingly. Once you set a plan in place, it’s important to engage your personnel so that they can engage with the consumers and get them aware of all the different offerings.”

JOE BORTNER SENIOR CATEGORY MANAGER RUTTER’S

Having good signage and keeping on it—there’s only so much space on the register that you can use, but we try to have [seasonal] on the register and proper signage for it, and usually we give [the candy] a deadline, like a 60-day deadline that it should be gone.”

DAN RAZOWSKY DIRECTOR OF OPERATIONS AND MARKETING RMARTS

Just get it out there and don’t be afraid to get it out there early. … I get Halloween candy out there in July. … We sell more in July and August than we do September and October.”

NOAH SANDERS CATEGORY MANAGER HIGH’S

jenifoto/Getty Images

“The people in the stores are the ones that are doing the day in, day out work to make sure any of these programs are successful, so making sure that they’re aware of everything going on and engaged in the process is always key to success,” Bortner said.

At High’s, loyalty is key to selling candy. The company has a king-size Reese’s promotion for loyalty members— if a customer buys five Reese’s items, they receive the sixth one for free. High’s also gets its employees involved with suggestive sell contests, which “move the needle significantly,” said Sanders.

“We have stores compete against each other for prizes. The biggest percent increase over the prior year in units wins a prize,” he said. High’s awawrds one winner per district, and there is one overall grand prize winner out of the entire company.

Sanders added that making sure displays are fresh is important when merchandising the category. “A lot of times shippers will stand there and become part of the scenery, but you got to break them down and rotate through them and get new ones up so they don’t become stagnant,” he said. “Move them around the store to get hit different traffic patterns, so customers might be interrupted by candy.”

Hershey suggests pairing salty snacks with candy. Carbonated beverages and prepared foods are the top two cross-purchased categories in the candy basket.

“Retailers should place candy next to adjacent categories like beverages,” said Hershey, adding that c-store retailers should not forget about the candy shelves—67% of sales come from

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CATEGORY CLOSE-UP CANDY

SWEET INNOVATIONS When it comes to innovation within the category, some say it’s stagnant, while others say it’s as strong as ever.

According to Mayssa Chehata, founder of BEHAVE, a better-for-you candy company, many of its customers had left the candy category but returned because of healthy innovations and products like BEHAVE’s.

“There are so many people who left the candy category entirely, either for health or lifestyle reasons, who are finding their way back through better-foryou options,” she said, adding that she’s seen excitement from customers and retailers for novel flavors, like passionfruit, lychee and pink pineapple.

“Bringing flavors not traditionally found in conventional candy has driven a ton of excitement and affinity from our customers as well as retailers,” said Chehata.

You’ll find something goes viral on TikTok, and all of the sudden it becomes a top performer in your store.”

If you ask Sanders, innovation has slowed due to the pandemic and hasn’t completely caught up to pre-pandemic levels. He recommends focusing on core brands and trading customers up to larger pack sizes through promotions or repositioning products in the store.

Bortner says that innovation is happening on social media, and it has a major influence on consumer products.

“You’ll find something goes viral on TikTok, and all of the sudden it becomes a top performer in your store,” he said, using the example of Toxic Waste Slime Licker, which is sour rolling liquid candy. “We had carried them for a couple years, but it wasn’t until this past year that we saw explosive growth [because of social media].”

Social media engagement is a must, according to Hershey. “We are seeing consumers shift from traditional media to social media, and brands must engage consumers on all platforms.”

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

222 OCTOBER 2023 convenience.org

DenisMArt/Shutterstock

the shelf, according to the confection company. Also, having multiple pricing strategies drives basket increases.

“Three for” offers have great consumer engagement, the company said.

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ADVERTISER INDEX Contact Information

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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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1440 Foods....................................................................................... 202 www.1440foods.com

Dallas Group of America Inc. dba Magnesol/Dallas Group............ 20 www.dallasgrp.com

KeHE Distributors............................................................................... 15 www.kehe.com

3CHI....................................................................................................191 www.3chi.com

Darrell Lea Brands dba DL Distribution LLC....................................105 www.darrelllea.com

Krispy Krunchy Foods LLC.....................................................211 www.krispykrunchy.com

5-hour Energy.................................................................. 22-23 www.5hourenergy.com

DEEL Media......................................................................................... 95 www.deelmedia.com

Liebherr USA Co................................................................................ 219 www.liebherr.com

Acuity Brands Lighting.................................................................... 128 www.acuitybrands.com

Diageo Beer Company USA........................................101, 145, 194, 203 www.diageo.com

Altria Group Distribution Company...........Inside Front Cover AGDCTradeRelations@Altria.com www.altria.com www.tobaccoissues.com

DMF Bait Company.............................................................................45 www.dmfbait.com

Liggett Vector Brands Inc...................................................... 41 (919) 990-3500 www.liggettvectorbrands.com

Dover Fueling Solutions......................................................189 www.doverfuelingsolutions.com

Anchor Food Products Inc........................................................171, 204 (847) 928-1600 www.anchorfoodprofessionals.com

E&J Gallo............................................................................... 149 www.gallo.com

ATM Unlimited Inc............................................................................. 69 www.atmunlimited.net

Eagle Family Foods LLC........................................................203 www.eaglefoods.com

Beam Suntory................................................................................... 179 www.beamsuntory.com/en

EPTA America.................................................................................... 215 www.eptaamerica.com

Bel Brands USA dba Dairy Manufacturer..........................................37 www.belbrandsusa.com

Fabian Couture Group...............................................................196, 217 www.fabiancouturegroup.com

BIC Corporation................................................................ 3, 192 www.bic.com

Franke Coffee Systems...........................................................79 www.franke.com

Bidi Vapor........................................................................................ 204 www.bidivapor.com

Frazil.................................................................................... 204 www.frazil.com

Black Buffalo Inc....................................................................87 www.Blackbuffalo.com

f’real foods...................................................................................... 204 www.freal.com

Buzzballz LLC................................................................................... 209 (972) 242-3777 www.buzzballz.com

Fresh Blends North America Inc....................................................... 49 www.freshblends.com

CAB Enterprises Inc, Electrolit......................................... 74-75 www.cabenterprisesinc.com Calico Brands Inc................................................................................ 18 www.calicobrands.com

Ganymede Technologies Corp dba J3POS.........................................43 (888) 600-5522 sales@j3pos.biz www.j3pos.biz

Lil’ Drug Store Products Inc...............................................................97 www.lildrugstore.com The Lumistella Company................................................................ 206 (877) 919-4105 www.lumistella.com Mars Wrigley...........................................................................39 www.mars.com/made-by-mars/mars-wrigley MasonWays Indestructible Plastics LLC.......................................... 185 (800) 837-2881 www.masonways.com Matrix Capital Markets Group Inc................Inside Back Cover (667) 217-3316 NY (410) 752-3833 MD (804) 780-0060 VA www.matrixcmg.com McLane Company Inc........................................................... 155 (254) 771-7500 www.mclaneco.com Mike’s Hot Honey.......................................................................113, 205 www.mikeshothoney.com Modern Store Equipment...........................................................89, 199 (877) 532-8433 www.modernstoreequipment.com Modisoft Inc.......................................................................... 175 www.modisoft.com

Geloso Beverage Group LLC............................................................ 205 www.gelosobeveragegroup.com

Monarchy Beverages........................................................................199 www.monarchbeverages.com

Goya Foods Inc................................................................................... 21 www.goya.com

Mondelez International.........................................................25 www.mondelezinternational.com

Greenridge Naturals....................................................................... 205 www.greenridgenaturals.com

Monster Energy Company............................................ 58, 200 www.monsterenergy.com

The Hershey Company............................................ Back Cover www.thehersheycompany.com

MOOSOO Corporation....................................................................... 187 www.moosoo.com

Hormel Foods Corporation................................................................27 www.hormelfoods.com

Musco Family Olive Co........................................................................ 91 www.olives.com

Hunt Brothers Pizza.............................................................. 63 www.huntbrotherspizza.com

NACS Data Archive ...........................................................................207 https://www.convenience.org/Research

Inline Plastics Corp............................................................................. 51 www.inlineplastics.com

NACS 2024 Events.............................................................................223 convenience.org/events

Innovative Control Systems Inc.......................................................119 www.icscarwashsystems.com

NACS Global Supplier Council Membership....................................190 www.convenience.org/Membership/Supplier/Global

Integrated Cash Logistics................................................................225 www.integratedcashlogistics.com

NACS Hunter Club Membership....................................................... 193 www.convenience.org/Membership/Supplier/HunterClub

Cool New Products Guide.........................................................191-207 www.convenience.org/Media/NACS-Magazine/Cool-New-Products

Inter-Continental Trading USA Inc............................................29, 227 www.ictusainc.com

NACS Show 2024............................................................................... 177 www.Nacsshow.com

Cookies United................................................................................. 221 www.cookiesunited.com

ITG Brands..................................................................35, 57, 125 (866) 328-2485 Domestic U.S. toll-free (336) 335-6669 North Carolina www.itgbrands.com

nData Services LLC.......................................................................... 206 www.ndataservices.com

Core-Mark.............................................................................. 99 www.core-mark.com

Johnsonville Sausage Co.................................................... 71, 196, 198 www.johnsonville.com

Crane Payment Innovations.....................................................165, 194 www.retail.cranepi.com

Juul Labs............................................................................... 142 www.juullabs.com

Crown Bakeries LLC..........................................................................223 www.crownbakeries.com

Kayco Inc.......................................................................................... 205 www.kaycoinc.com

Cash Depot...............................................................................11 (800) 776-8834 www.sales@cdlatm.com www.cdlatm.com Chevron Corporation........................................................................ 133 www.chevron.com Cheyenne International Inc..............................................................151 (704) 937-7200 www.cheyenneintl.com Cigtrus, Magical Industries...............................................................141 www.cigtrus.com The Coca-Cola Company........................................................55 1-800-GET-COKE 1-888-348-2404 www.coca-colacompany.com CONEXXUS......................................................................................... 197 Conexxus.org

224 OCTOBER 2023 convenience.org

OWL Services.................................................................................... 127 www.owlservices.com Pace-O-Matic................................................................129, 200 www.paceomatic.com (770) 441-9500 Patron Points.................................................................................... 173 (877) 623-6073 www.patronpoints.com

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ADVERTISER INDEX Contact Information

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Perfetti Van Melle USA Inc................................................... 213 (859) 283-1234 www.perfettivanmelleus.com PIM Brands.............................................................................. 81 www.pimbrands.com

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Shipley Do-Nuts............................................................................... 134 www.shipleydonuts.com

Tommy’s Car Wash System............................................................. 226 www.tommycarwash.com

Stone Gate Foods............................................................................. 159 (952) 445-1350 www.stonegate-foods.com

Travel Centers of America.................................................................. 61 www.ta-petro.com

Sunny Sky Products North America Ltd............................ 206 (877) 235-6466 www.sunnyskyproducts.com

Placon................................................................................................110 www.placon.com Premier Manufacturing................................................................5, 161 (636) 537-6800 www.gopremier.com

Swedish Match North America LLC (Game Leaf)..................53 (800) 367-3677 www.gamecigars.com

RaceTrac Inc......................................................................................166 www.racetrac.com Ready Training Online........................................................... 31 (800) 247-8514 www.readytrainingonline.com Rich’s/f’real..........................................................................201 www.richsusa.com

Trax Retail..........................................................................................181 www.traxretail.com Trion Industries...........................................................7, Insert 68, 207 (800) 444-4665 www.triononline.com Tropicana Brands Group........................................................73 www.tropicanabrandsgroup.com

Swedish Match North America LLC (General Snus)............. 65 (800) 367-3677 www.smna.com

TruAge............................................................................................... 195 www.mytruage.org

Swedish Match North America LLC (HTL)............................ 147 (800) 367-3677 www.smna.com

TY INC. .......................................................................................107, 201 www.ty.com Tyson Foods Inc.................................................................... 163 (202) 393-3921 www.tysonfoods.com

Swedish Match North America LLC (Loose Leaf)..................33 (800) 367-3677 www.smna.com

Rogue Holdings LLC..........................................................................169 www.roguenicotine.com/brands

Swedish Match North America LLC (ZYN)............................. 19 (800) 367-3677 www.smna.com

Ruiz Foods............................................................................. 123 www.ruizfoods.com SageNet............................................................................................ 102 www.sagenet.com

Swisher International Inc.................................................... 137 www.swisher.com

Savia USA LLC..................................................................................... 66 www.saviausa.com SEB Professional North America............................................ 9 www.partstown.com/seb-professional

Page

Tippmann Affiliated Group............................................................... 17 www.tippmanngroup.com

The Vita Coco Company................................................ 83, 206 (212) 206-0763 www.vitacoco.com Volpi Foods...............................................................................202, 207 www.volpifoods.com The Wonderful Company...........................................................117, 139 www.wonderful.com Xcaliber International...........................................................115 www.xcaliberinternational.com

Tobacco Outlet Products..................................................................109 1 (800) 397-4859 www.smokeodorsolution.com

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BY THE NUMBERS

The Loyalty Leaderboard Consumers today are looking for a loyalty rewards program that is engaging and relevant to their needs. The NACS study “Driving Engagement from Convenience Retail Loyalty Programs” found that as of 2022, convenience retail loyalty members belong to an average of 6.7 retail loyalty programs, 2.0 of which were convenience specific. Convenience loyalty members most frequently also belonged to quick service restaurants (QSR), grocery and drug store loyalty programs.

Nearly three-quarters (74%) of convenience shoppers feel valued by convenience retailers where they are loyalty members, and 36.6% of customers indicate that they would shop at a convenience store more frequently in order to gain loyalty point rewards. About 61% of customers were willing to go out

of their way to leverage their membership at a specific convenience store.

Every customer is unique, but half conConvenience loyalty members sidered (50%) fuel discounts the most most frequently also valuable aspect of their membership. belonged to quick The next most-valued benefits were service restaurants (QSR), grocery and coupons (44%) and access to exclusive drug store loyalty rewards (32.1%). programs.

Convenience retailers have an active role to play in molding loyalty programs that can build great engagement with their shoppers.

By incorporating popular features that the customers are seeking—and perhaps some distinguishing benefits that set a loyalty membership apart—the program can work for shoppers and retailers.

MOST VALUED LOYALTY MEMBERSHIP BENEFITS 1ST 2ND

Coupons

40%

Fuel pricing discounts

50%

3RD

Access to exclusive awards

32.1%

4

Fuel pricing awareness

5

Digital access through a mobile app

6

Weekly ads and specials

21.8%

7

Finding store locations

15.3%

8

Online ordering or preordering

11.9%

9

Mobile/contactless checkout

11.2%

10

Membership or subscription

10.8%

11

Gaming and prizes

9.8%

12

Sweepstakes

9.4%

13

Quick order of frequently purchased items

8.4%

14

Curbside pickup

6.7%

15

Experiential benefits

6.6%

16

Clubs or electric punch cards

5.3%

17

Delivery

4.3%

18

Social media specific to the convenience store

4.0%

19

Ability for me to make referrals/recommendations

3.4%

20

Lifestyle-based recommendations

3.0%

21

Other

1.4%

228 OCTOBER 2023 convenience.org

25.3% 22%

Source: NACS Convenience Voices