NACS Magazine October 2020

convenience.org | OCTOBER 2020

ON THE HUNT

front

BIC® EZ REACH™ MEANS EZ PROFITS!

How retailers find new products The new BIC® EZ Reach™ in the time of COVID-19.for Lighter is pocket-sized

convenience, and its 1.45-inch wand helps keep your customers’ fingers away from the flame when lighting tight spaces. A must-have for all lighting occasions!

Visit ShopBIC.com/newinquiry

*Source: IRI C-MULO Vol Sales of Pocket for the 52 weeks ending 6/7/20 © 2020 BIC USA Inc., Shelton, CT 06484

CRACK THE CODE

The New NACS Digital Experience

DRIVE-THRUS

Deliver Safety and Sales

spine

adhesive area — 1.25"

spine

PERFECT FOR CANDLES AND MORE!

1.45” WAND HELPS KEEP FINGERS AWAY FROM THE FLAME!

Visit ShopBIC.com/newinquiry

Belly Band.indd 9/15/2020 1 7:42:12 PM

convenience.org | OCTOBER 2020

ON THE HUNT

How retailers find new products in the time of COVID-19.

CRACK THE CODE

The New NACS Digital Experience

DRIVE-THRUS

Deliver Safety and Sales

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

Learn more about how to stand up for your business.

TobaccoIssues.com is operated on behalf of Philip Morris USA, U.S. Smokeless Tobacco Co., John Middleton, and Nat Sherman. Š2020 Altria Group Distribution Company | For Trade Purposes Only

OCTOBER 2020

34

Shelf Esteem

42

An honest look into retailers’ decision-making process for adopting new products.

W eak Signals No More

52

56

How the pandemic is shaping 10 key trends in the convenience and fuel retailing industry. (Part 1 of 3)

U.S. Election Watch

In the homestretch to November, polls show the presidential race narrowing and Republicans fighting to keep the Senate.

Crack

the Code Experience

See what we’ve got in store for you…

64

Attention, Shoppers!

72

When the Chips Are Down

78

rowing a Culture G of Food Safety

84 86

A Connected System

92

Be Aware of Tech Debt

98 Cover Art by Beyond Definition STAY CONNECTED WITH NACS

TWITTER @nacsonline FACEBOOK facebook.com/nacsonline INSTAGRAM instragram.com/nacs_online LINKEDIN linkedin.com/groups/1776505 Subscribe to NACS Daily—an indispensable "quick read" of industry headlines and legislative and regulatory news from Washington, along with knowledge and resources from NACS, delivered to your inbox every weekday morning. Subscribe at www.convenience.org/NACSdaily.

CONVENIENCE.ORG

How to communicate with today’s consumers via signs, design and technology.

Survey shows significant movement in both sentiment and action among retailers for deploying EMV-compliant pumps.

Food safety must go beyond formal regulations to live within the culture of a company.

A Q&A with Loomis.

evitalizing Breakfast R C-stores are working hard to get this popular and profitable a.m. daypart back on its feet.

Be strategic about short-term technology decisions to avoid shortchanging your future.

Clean Serve A COVID-19 nudges the future of self-serve beverages in a new direction.

104 Pass Through

Whether it’s concerns about COVID-19 or a need for speed, consumers dig drive-thru service.

110

118

arketing in an Era M of Meaningful Media

Social media followers fall in love with brands that create connections through humor, values and authenticity in messaging. ime Counts T Digital technologies help customers save time—still the No. 1 criteria for a convenient shopping experience.

OCTOBER 2020 |

1

OCTOBER 2020

We want our guests to leave feeling like there’s a way to have hospitality and service even in a location like a gas station.

Premiumization and the health and wellness mindset have been driving growth within beer for a few years now.

P.146

IDEAS 2 GO | P.28

06 Convenience.org

124 Cool New Products

08 From the Editor

140 Gas Station Gourmet

20 Good Work 22 Inside Washington

NACS Virtual Townhalls connect retailers with their legislators; NACS recognizes legislators who have been champions for the industry.

28 Ideas 2 Go

Hills & Hollows embodies its tagline of “convenience with a conscience.”

142 Global Trends

How EG Group fared COVID-19 and continues to thrive.

146 Category Close-Up

Good times return to the beer category, driven by trading up and pantry loading.

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

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| OCTOBER 2020

CONVENIENCE.ORG

iStock.com/melanjurga

12 NACS News

From potato cakes to wedding cakes, Achilles Shopping Center connects with its community.

PERFECT FOR CANDLES AND MORE! EASY TO ADD TO YOUR CURRENT DISPLAY!

HELPS KEEP FINGERS AWAY FROM THE FLAME!

BIC® EZ REACH™ MEANS EZ PROFITS!

The new BIC® EZ Reach™ Lighter is pocket-sized for convenience, and its 1.45-inch wand helps keep your customers’ fingers away from the flame when lighting tight spaces. A must-have for all lighting occasions!

Visit ShopBIC.com/newinquiry

*Source: IRI C-MULO Vol Sales of Pocket for the 52 weeks ending 6/7/20 © 2020 BIC USA Inc., Shelton, CT 06484

VOLUME 19, ISSUE 10

OCTOBER 2020

EDITORIAL Kim Stewart Editor-in-Chief (703) 518-4279 kstewart@convenience.org Sara Counihan Managing Editor (703) 518-4278 scounihan@convenience.org Lauren Brooks Digital Content Manager (703) 518-4283 lbrooks@convenience.org

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

Convenience Matters® empowers Convenience Mattersa® community empowers listeners and fosters listeners and a community of sharing by fosters providing of sharing byaccess providing on-demand to business on-demand access to business ideas from those who are at ideas from those who are at the forefront of disrupting the forefront of convenience.

Bydisrupting providing convenience.

By providing convenient access to industry convenient to industry knowledge, access fresh and candid knowledge, fresh candid perspectives fromand thought perspectives from leaders—inside andthought outside of the leaders—inside and outside ofitthe industry—the podcast makes industry—the podcast makes it possible for retailers and suppliers possible for retailers and suppliers to strengthen their bottom to strengthen theirimpact bottomtheir line and positively line and positively impact their communities. communities.

Available on: Available on:

CONTRIBUTING WRITERS Terri Allan, Frank Beard, Fiona Briggs, Jennifer Bulat, Jim Ellis, Sarah Hamaker, Al Hebert, Lone Jespersen, Samantha Oller, Pat Pape, Renee Pas, Jerry Soverinsky DESIGN Beyond Definition www.beyond-definition.com

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

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

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

(7-Eleven Convenience Store); Ken Parent, Pilot Travel Centers LLC; Donald Rhoads, The Convenience Group LLC; Jared Scheeler, The Hub Convenience Stores Inc.; Kevin Smartt, Kwik Chek Food Stores Inc. PAST CHAIRMEN: Frank Gleeson, Aramark Northern Europe; Joe Sheetz, Sheetz Inc. MEMBERS: Chris Coborn, Coborn's Inc. Little Dukes; Joseph DePinto, 7-Eleven Inc.; Bhagdeep Dhaliwal, Dhaliwal & Associates Inc.; Anne Gauthier, St. Romain Oil Company LLC; Varish Goyal, Loop Neighborhood Markets; Thomas Gresham, Double

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

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

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

NACS Magazine (ISSN 1939-4780) is published monthly by the National Association of Convenience Stores (NACS), Alexandria, Virginia, USA. Subscriptions are included in the dues paid by NACS member companies. Subscriptions are also available to employees of nonmember companies at a rate of $70 per year.

Please add $15 for delivery outside the United States.

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

1600 Duke Street, Alexandria, VA, 22314-2792

Tune in weekly at Tune in weekly at conveniencematters.com conveniencematters.com

CONVENIENCE.ORG

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CONVENIENCE.ORG WHAT’S ONLINE | OCTOBER 2020

People Helping People Your employees are one of the most valuable—and visible—parts of your operation. NACS provides benchmarking metrics, helpful resources and events, insightful coverage and analysis on human resources in the convenience and fuel retailing industry.

NACS GRADIFI PROGRAM: Compete effectively in today’s labor market and help employees with pressing financial concerns. NACS has partnered with Gradifi, an innovator in financial wellness benefits for U.S. employers, as the preferred vendor for member stores to offer student loan contributions to employees as a benefit. NACS members will receive preferred pricing from Gradifi.

NACS FOUNDATIONS OF PERSONAL LEADERSHIP: The “foundations” of personal leadership are the soft skills and interpersonal skills that form the basis of customer-service excellence, team engagement and a positive company environment.

EMPLOYEE SELECTION TOOLS: Specifically designed for the c-store industry, NACS EST measures critical competencies for success, identifies top-quality, service-oriented employees and takes less than 30 minutes to complete.

DISCOUNT PRESCRIPTION DRUG CARD: Available only to

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

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NACS members, this free program can give your uninsured employees a helping hand with deep discounts for their prescription drug needs.

LEADABILITY: LeadAbility is an effective and proven test to administer among your current employees and external applicants to help you select the right store managerial candidates.

NACS HUMAN RESOURCES FORUM: The NACS Human Resources Forum is the premier program designed to educate and connect HR professionals working in the convenience and fuel retailing industry.​ HR EXECUTIVE CIRCLE: This invitation-only event connects likeminded, executive-level HR leaders to enhance their leadership skills and bring value to their enterprise through strategic idea exchange and unique learning opportunities.

For more human resources information and resources, visit www.convenience.org/ topics/humanresources.

Here’s an Idea

From frictionless store experiences to innovative foodservice offers, retailers today are operating the convenience store of tomorrow. The NACS Ideas 2 Go program showcases industry leaders who are leading the way by staying ahead of the ever-changing consumer, technology and retail landscape. For more than 20 years, Ideas 2 Go has featured hundreds of interviews with convenience retailers from more than 40 states and nearly 10 countries, showcasing best practices and emerging concepts that redefine convenience, as well as quick takeaways retailers can implement at their own stores. Learn more at www.convenience.org/ideas2go.

CONVENIENCE.ORG

8/17/20 2:16 PM 8/18/2020 10:50:10 AM

JANUARY 2021

3 IN 4

~

COKE DRINKERS CONSUME COFFEE

80%

PURCHASE INTENT AMONG TARGET CONSUMERS

CONTACT YOUR COCA-COLA REPRESENTATIVE, CALL 1-800-241-COKE, OR VISIT WWW.COCA-COLACOMPANY.COM

INFUSED WITH BRAZILIAN COFFEE. Source: Bev 360 12 MMT May 2020 © 2020 The Coca-Cola Company. All rights reserved.

FROM THE EDITOR

On the Road Again Kim Stewart Editor-In-Chief

Getting ‘back to the routine’ is a theme we are hearing frequently.

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| OCTOBER 2020

L

ate August found my family hitting the road for an 11-hour drive to visit family in Michigan, and along the way, we left the turnpikes in Pennsylvania and Ohio in search of food—and clean restrooms—in one stop. The rest areas were in service, but few of the on-site QSRs were open.

And we soon discovered that the QSRs off-turnpike had drive-thru service but no publicly accessible restrooms, so we opted for c-stores the remainder of the trip.

In rural Marlette, Michigan, we stopped at Scott’s Quik Stop, a quirky local favorite (c-store/gas station/truck stop/ice cream shop/guns/ammo/fishing and hunting supplies), on the recommendation of my sister-in-law who assured us the restrooms would be clean. They were. As a treat, we enjoyed the largest “small-size” threescoop, hand-dipped ice-cream cones we’d ever seen. So good! And to top it off, the store was stocked with cleaning products (hello, Clorox wipes!) and regional specialties like trail mix, jerky and wine. Imagine being a buyer at this store!

What’s the secret to landing a coveted spot on retail shelves? In “Shelf Esteem,” our cover story this month, MAPCO, Maverik, Yesway and other convenience retailers offer a frank look at how they decide what new products make the grade in their stores. They also share timely advice for suppliers seeking to get their latest innovations in front of retail buyers after COVID-19 forced the cancellation of this year’s NACS Show (but launched the NACS Crack the Code Experience).

Getting “back to the routine” is a theme we are hearing frequently.

Although the fall season promises to be unlike others in recent memory, there’s a strong desire to carve out a semblance of normalcy, and sometimes that means rethinking longstanding ways of doing

business. Self-serve beverages are coming back, but in many areas of the U.S. they look different than before. This month, we explore what’s next for cold and hot dispensed beverage service in “A Clean Serve.” In the story there’s a great quote from Mike Lawshe, CEO of Paragon Solutions, that really resonates: “We have to stop thinking of ourselves as last year’s c-store. We are next year’s convenience experience.” Drive-thru windows and walk-up service certainly will be a part of that experience going forward, as we explore in “Pass Through.”

Another part of the new convenience experience is personalized communication. On the forecourt and inside the store, retailers are leveraging digital signage to serve up information and offers that net sales, as we share in “Attention Shoppers!” From multimedia menu boards to transparent LED film that turns c-store windows into compelling displays, the latest technology is definitely worth a look—and isn’t always as pricey as you might expect. Social media has certainly helped c-stores connect with customers more than ever as the pandemic drags on. “Marketing in an Era of Meaningful Media” details how Kum & Go, Sheetz and Wawa are using Twitter, Facebook and Instagram to authentically engage with customers and earn their loyalty.

Grab your favorite fall beverage and maybe some candy you’ve stashed away for trick-or-treaters—no pandemic will stop Halloween in the Stewart house—and enjoy this month’s magazine. Then drop me a line at kstewart@convenience.org and tell me what you think.

CONVENIENCE.ORG

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SWISHER’S BOLD NEW FUTURE EMPOWERS CONVENIENCE RETAILERS With more than 200 million adult consumers in the U.S., there is no doubt that this segment is the largest and most important for today’s convenience John J. Miller retailer. It should President be no surprise that business growth is intrinsically tied to how a company pivots and evolves along with (and ahead of) the changing preferences of those adult consumers.

While Swisher has always been centered on relationships with valued trade partners, particularly in the C-store space, today Swisher is more focused than ever on being the source those partners turn to for the insights and products that create direct connections with adult consumers. Innovative products are one important way to build the future, but they have to be matched with adult consumer insights, superior customer relationships and action to truly achieve the goal of becoming a leading adult consumer lifestyle brand.

SUCCESS SIMPLIFIED: A SERVICE MODEL BUILT AROUND YOU An important component of Swisher’s evolution is – Success Simplified – a platform that makes success easier and more profitable for trade partners.

The platform is based on the tenets of

innovation, insights, action, reliability and shared success. These are delivered through a one-stop-shop offering of products, creative packaging, advanced manufacturing technologies, product guarantees and shared performance programs. This is just one example of how Swisher makes doing business easier.

Ultimately, the Success Simplified approach is a win for Swisher’s valued partners.

INNOVATION

leader. Expertise, product knowledge and growth opportunities are delivered in one relationship through the recent alignment of the company’s offerings

“ The business partnerships that trade customers have formed with Swisher’s knowledgeable sales team will only be amplified further by this expanded effort.”

INSIGHTS ACTION RELIABILITY SHARED SUCCESS

BRANDS YOU TRUST, BACKED BY CATEGORY FOCUS & EXPERTISE Since 1861, Swisher has always been driven by an entrepreneurial spirit and a passion to create. Throughout the decades, strategic acquisitions, technology improvements and product innovations have enabled Swisher to maintain its position as an industry

into five focused strategic businesses: Swisher Sweets Cigar Company (Cigars & Cigarillos); Fat Lip Brands (Smokeless); Drew Estate (Premium Cigars); Hempire (Hemp Products); and Rogue (Modern Oral Nicotine). In each category, trade partners have access to the strategies, product innovations and relationships that drive success.

THE WAYS SWISHER WORKS WITH YOU ARE UNCHANGED The business relationships that trade partners have formed with Swisher’s knowledgeable sales team will only be amplified further by this expanded effort. The evolution will enhance the category expertise, product knowledge and data-driven strategies that benefit customers. A renewed purpose celebrating human connection, fostering creative expression and strengthening community, along with the unwavering commitment to evolve with the tastes of adult consumers, will guide even deeper connections with partners and their customers. Swisher continues to evolve in order to keep you ahead. Learn more at Swisher.com/SuccessSimplified.

THEY NEVER STOP EVOLVING.

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THE BRANDS YOU KNOW. A NEW VISION FOR YOUR SUCCESS. Adult consumers are your largest customer segment.

Keeping them loyal and engaged depends on a partner who knows them — and knows how to make success easy and profitable. Expect that and more from our bold new future.

Join the evolution at swisher.com/SuccessSimplified.

SWISHER SWEETS CIGAR COMPANY | FAT LIP BRANDS | DREW ESTATE | HEMPIRE | ROGUE

NACS NEWS

Training Camp

TRAINING SOLUTION NO. 1: SUBSCRIPTION Our subscription-based options are the most popular, offering access to a complete and

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| OCTOBER 2020

affordable training program built to fit your company’s specific needs—including access to state-of-the-art learning management capabilities and an extensive online convenience store training library.

TRAINING SOLUTION NO. 2: SINGLE VIEW Choose from over 40 titles specific to the convenience and fuel retailing industry. The singleview option allows for customization and flexibility and is the perfect selection for a quick refresher, an add-on to your current training program or for an employee who’s looking for supplemental or ongoing convenience store training. Each single-view selection is priced for a one-time view and—unlike the subscription solution—does not include any learning management capabilities. Your login credentials will be provided via email upon receipt of authorized payment.

Learn more about NACS on-demand learning at www.convenience.org/elearning.

CONVENIENCE.ORG

iStock.com/DNY59

O

ne of the keys to success in this industry is developing highperforming employees. From the store level to the manager level, the right training and development can position your employees for success—leading to increased retention, better customer service and ultimately more profits for your company.

That’s why NACS has partnered with Ready Training Online (RTO), a premier solutions provider for learning management and web-based training. Through RTO, NACS can offer comprehensive solutions for a variety of training needs.

We know that each organization has a unique set of training needs. With that in mind, NACS e-Learning offers two affordable solutions designed to work for you.

Patrick Loftus Joins NACS Research Team Patrick Loftus has joined NACS as its survey research and data visualization manager. Loftus joins the NACS research team to help manage a robust portfolio of quantitative and qualitative research solutions designed to meet the unique needs of the convenience Patrick Loftus and fuel retail industry, including the NACS State of the Industry Report and NACS State of the Industry Compensation Report, as well as the NACS CSX benchmarking database and annual NACS State of the Industry Summit.

Loftus worked at Gartner and its former subsidiary CEB for more than a decade in a series of increasingly responsible positions, most recently as senior principal of data science and benchmarking. In this role, he directed more than 20 diagnostic survey and benchmarking initiatives with participation from approximately 1,000 clients across sectors annually.

Loftus earned a B.A. from American University with a double major in history and economics.

NACS Calendar of Events

2020

iStock.com/from2015

OCTOBER 12NOVEMBER 6*

NACS Financial Leadership Program Wharton School of Business, University of Pennsylvania, Live Virtual www.convenience.org/ execed/wharton *Includes two-week break for special project

CONVENIENCE.ORG

OCTOBER 27NOVEMBER 5

NACS Women's Leadership Program Yale University, Live Virtual www.convenience.org/execed/yale

OCTOBER 27NOVEMBER 12

NACS Executive Leadership Program Cornell University, Live Virtual www.convenience.org/ execed/cornell

NOVEMBER 1-20

NOVEMBER 18 DECEMBER 17

NACS Marketing Leadership Program Kellogg School of Business, Northwestern University, Live Virtual www.convenience.org/ execed/kellogg

NACS Innovation Leadership Program Massachusetts Institute of Technology, Live Virtual www.convenience.org/ execed/MIT

NOVEMBER 2 DECEMBER 4

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

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

NACS Crack the Code Experience www.convenience.org/ crackthecode

OCTOBER 2020 |

13

NACS NEWS

MEMBER NEWS RETAILER Casey’s General Stores announced the hiring of four vice presidents: •C arrie Stojack is joining Casey’s as vice president of guest insights, a new role that will lead the guest research and analytics efforts within Casey’s and champion Casey’s guest-centric culture.

•L arry Carroll recently joined Casey’s as vice president, asset protection, with the primary responsibility of building out Casey’s asset protection strategy from loss prevention to compliance to risk management.

• J aime Robles also recently joined Casey’s as vice president, procurement, and is leading Casey’s new procurement function.

•N an Thomae joined the company as vice president, human resources – field operations, and oversees all human resources support for Casey’s 2,200-plus stores across 16 states and distribution centers.

Carrie Stojack

Larry Carroll

Jaime Robles

Nan Thomae

Additionally, Casey’s has promoted Sherri Hart to vice president, total rewards. In this role, she provides leadership for compensation, benefits, wellness, leaves and accommodations, payroll and HRIS.

Sherri Hart

Parker’s recently hired three new team members: •R yan Dzwigalski was hired as the director of loss prevention. Dzwigalski will manage loss prevention and

Ryan Dzwigalski

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| OCTOBER 2020

inventory control functions for the company’s retail stores throughout coastal Georgia and South Carolina.

•D aniel Ellis was hired as senior data analyst and will standardize reporting, processes and systems to optimize business efficiency and increase company-wide cost savings.

•V eronica Johnson was hired as the Daniel Ellis corporate paralegal and will support Parker’s general counsel. Johnson serves as a board member for the Paralegal Advisory Committee for Savannah Technical College and as a member of the South Eastern Veronica Johnson Association of Legal Assistants.

The Pennsylvania Food Merchants Association announced the appointment of Meg Mitchell to secretary of its board of directors. Mitchell is vice president, customer experience, at PFMA member and sponsor C&S Wholesale Grocers, covering the company’s Pennsylvania and upstate New York regions.

Meg Mitchell

SUPPLIER Matrix Capital Markets Group Inc. announced two promotions, as well as the addition of two new team members: John C. Duni • J ohn C. Duni, CFA, CPA has been promoted to vice president. Duni has helped advise on over 25 sell-side, buy-side and valuation advisory engagements since joining Matrix’s Downstream Energy & Convenience John R. Mosser Retail Group in 2015.

• John R. Mosser has been promoted to associate and is a member of the … continued on page 16

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EMPLOYED FIELD SERVICE TECHS.

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NACS NEWS

NEW NACS MEMBERS NACS welcomes the following companies that joined the association between July 16 and August 15, 2020. NACS membership is company-wide so we encourage employees of member companies to create a username by visiting www.convenience.org/Create-Login. All members receive access to the NACS Online Membership directory, latest industry news, information and resources. For more information about NACS membership, call (703) 684-3600.

NEW RETAIL MEMBERS

Robotics & Retail LLC dba EVA Robotics & Retail New York, NY www.eva.store S & G Enterprises Inc. dba Fayette Street Market Baltimore, MD

Stuarts' Petroleum Bakersfield, CA U-save Oil Co Inc. Anacortes, WA Westside Investments LLC dba Winks Convenience Stores Cape Girardeau, MO

NEW SUPPLIER MEMBERS

Asesorías e Inversiones Vitae Santiago, RM, Chile Black Buffalo Inc. Chicago, IL www.blackbuffalo.com Cree Lighting Durham, NC www.creelighting.com

Pat Brown System LLC Bakersfield, CA www.jumpstartenergyshot.com RockItCoin LLC Chicago, IL www.rockitcoin.com ShineWater Bay City, MI www.shinewater.com

MEMBER NEWS (...Continued) Consumer & Industrial Products Group.

• Matrix welcomed Michael J. Tucker, CFA, analyst, and Matthew L. Paniccia, analyst, to the firm’s Downstream Energy & Convenience Retail Group.

T&S Brass and Bronze Works has promoted Mike Snyder to the role of national account manager—foodservice.

Snyder will be responsible for managing strategic relationships with the top U.S.based national restaurant chains as well as the grocery and convenience store market segments.

The board of directors for Green Chile Concepts LLC announced that Matt Yost has been promoted and

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| OCTOBER 2020

appointed as CEO for the Green Chile Food Company.

Michael J. Tucker

Matthew L. Paniccia

Mike Snyder

Alto-Shaam has promoted Matthew Pugh to the role of regional sales manager.

Pugh will be responsible for developing and managing relationships with Alto-Shaam’s stakeholders across the mid-South region.

Matt Yost

KUDOS GSP has announced it has received the Matthew Pugh 2020 Make Days Better Award from Kum & Go at the company’s annual Supplier Partner Summit, held virtually this year. “The Make Days Better Award category is all about connecting with people and captures Kum & Go’s core values of passion, integrity, teamwork, caring and excellence,” said GSP National Account Manager Shane Delaney.

CONVENIENCE.ORG

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YOU REAP

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*Visit ZYN.com/Rewards for terms and conditions. 21+. Min. purchase of 25 cans required to claim reward. Limit of 60 codes per account per month. Ends 10/31/21.

NACS NEWS

BY THE NUMBERS

Change Takes Time According to the Fuels Institute, even if plug-in hybrid electric vehicle (PHEV) and battery electric vehicles (BEV) were to continue recording strong, year-over-year sales, it would take many years before they would significantly impact the overall light-duty vehicle fleet.

The figure below presents three scenarios (low, mid and high) in which PHEV and BEV sales would increase by 10%, 15% or 20%, respectively, every year from 2020 through 2040. (No assumptions were made in creating this chart other than sales would increase by a consistent percentage every year.)

In these scenarios, electric vehicle sales could capture between 16.6% and 94.5% of lightduty vehicle sales. However, given fleet turnover rates, the number of plug-in electrified vehicles on the road would represent between 7.4% and 26.6% of the fleet. The light-duty vehicle market is large and currently dominated by gasoline-powered internal combustion engines, and it will take many years of sales expansion to change the dynamics of the market.

To read the full report, “State of Transportation Energy and Vehicle Electrification,� from the Fuels Institute, visit www.fuelsinstitute.org.

Potential Growth of Battery Electric and Plug-In Hybrid Vehicles

High Growth % Sales

High Growth % Stocks

Mid Growth % Sales

Mid Growth % Stocks

Low Growth % Sales

Low Growth % Stocks

100%

Assumptions: U.S. EIA Annual Energy Outlook 2020 LDV Fleet Size and Sales Annual Sales Growth for BEV & PHEV: High Growth: 20% increase Mid Growth: 15% increase Low Growth: 10% increase Scrappage Rates: LDV 5.5%, PEV 5%

80%

60%

40%

2040

2039

2038

2037

2036

2035

2034

2033

2032

2031

2030

2029

2028

2027

2026

2025

2024

2023

2022

2021

2020

20%

Source: The Fuels Institute

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| OCTOBER 2020

CONVENIENCE.ORG

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GOOD WORK

Stay Hydrated

C

20

| OCTOBER 2020

Savannah, Georgia-based Enmarket donated 51,000 reusable bottles to local public schools.

water or allowing students and staff to bring water bottles from home.

“When we became aware of this need, we saw a way to give back to the community, give back to the education system and to make school a safe experience for students,” said Brett Giesick, president of Enmarket. “When school officials deem it’s safe for students to return, then they will have these bottles to use.”

CONVENIENCE.ORG

iStock.com/LeoPatrizi

onvenience retailer Enmarket joined a coalition of local businesses in donating 51,000 reusable 20-ounce translucent water bottles to students in Savannah-Chatham and Effingham County public schools in Georgia.

The effort is intended to help ensure a safer experience for students. Enmarket became the project’s principal sponsor, providing 32,000 bottles to Savannah-Chatham students and 14,000 to Effingham students.

The Centers for Disease Control issued guidelines in May for operating schools during COVID-19, including a recommendation for staff and students to bring their own water to minimize the use and touching of water fountains. The Georgia Department of Education, in partnership with the Georgia Department of Public Health, developed and issued Georgia’s Path to Recovery for K-12 Schools, which recommends turning off school water fountains and providing bottled

iStock.com/LukaTDB

C-Stores Support Their Communities

Convenience stores have been looking out for their communities long before COVID-19, and they continue to do so.

Beginning in August, 7-Eleven distributed 200-250 meals each day on Tuesdays and Fridays through September 4 by sponsoring the Texas Rangers Baseball Foundation’s to-go lunch program. The sponsorship included 2,400 bottles of 7-Select water and a $20,000 cash donation to provide food to the Dallas community.

“Food insecurity has become even more critical during the COVID-19 pandemic, with many children not having access to meals during the last few months of the school year or throughout the summer,” said Larry Hughes, zone vice president, 7-Eleven. “We hope these children and their families feel support by the Texas Rangers Baseball Foundation, 7-Eleven and other organizations in our local community.”

Meanwhile, Casey’s supported the communities of eastern Iowa as they recovered from a derecho that hit the Midwest in August. The company delivered 19,500 bottles of water to the American Red Cross in Cedar Rapids and water and snacks to the American Red Cross of Central Iowa. The chain also provided food to frontline energy workers, and several Casey’s stores continue sending warm meals to community centers serving relief workers.

Casey’s also donated $10,000 to food banks in Eastern Iowa and Central Illinois to support communities impacted by the storms. On September 8, the company launched an in-store fundraising campaign to benefit Feeding America and 58 Midwest food banks during Hunger Action Month.

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IN THE COMMUNITY Big Red Stores team members in Arkansas came together in July to exceed their goal of $45,000 for Folds of Honor by raising $60,612 through community car washes and bake sales.

“It is an honor to raise scholarship funds for families of fallen and wounded soldiers who have sacrificed everything for our freedom,” said David Hendrix, co-owner of Big Red Stores.

From July through September, Gulf Oil launched a campaign to give back to frontline workers. Gulf provided a minimum of $10,000 in Gulf gift cards as a thank you to health-care workers, first responders, grocery workers and teachers.

Rutter’s raised a record of more than $375,000 for local charities in 2020 through during its 18 th Annual Children’s Charities Golf Outing. Since 2003, the golf outing has raised $2.5 million for local children’s charities in Pennsylvania, Maryland and West Virginia. “We are extremely grateful to our suppliers, vendors and partners for their support of our annual golf outing,” said Scott Hartman, president and CEO of Rutter’s. “During these difficult times, their contributions will give us the opportunity to continue supporting local children through Rutter’s Children’s Charities.”

Sheetz For the Kidz, the employee-driven charity of Sheetz, raised a record $839,460.27 in its annual July fundraising campaign, an increase of $205,391.04 over July 2019’s donations.

Customers took the opportunity to support kids in their local communities through donation boxes near the register and also adding donations to their purchase at the point of sale during July at all 600 Sheetz locations. “We are extremely grateful for our customers’ tremendous generosity,” said Brittany Funcheon, executive director for Sheetz For the Kidz. “We continue to be blown away by our customers, who through these challenging times, generously donated to this campaign in a major way.

Their donations will make the holiday season brighter for thousands of children and families in need.”

OCTOBER 2020 |

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INSIDE WASHINGTON

Grassroots Tools in a Virtual Age NACS Virtual Townhalls connect retailers with their legislators.

FACTS & FIGURES

BY MARGARET HARDIN

Since the beginning of the COVID-19 pandemic...

8

Calls to action

8,346

Messages sent to Capitol Hill

141

Tweets sent using #ProtectConvenience

NACS Virtual Town Halls enable retailers to meet with members of Congress and the NACS government relations team for in-depth discussions on issues that include liability protections for essential businesses and tax incentives for frontline workers.

RESURGENCE IN AT-HOME ADVOCACY It’s now easier than ever to be politically engaged while at home. Through the NACS Grassroots Portal, we have predrafted emails for you to send to your legislators on a variety of topics affecting our industry, including liability protections, tax incentives for essential workers and access to Paycheck Protection Program (PPP) loans.

Politicians are also using social media at an increasing rate to interact with their constituents. By using the hashtag #ProtectConvenience, NACS recently ran a Twitter campaign where retailers tweeted at their legislators addressing the importance of liability protections for our industry. If you’re interested in getting involved, simply visit our Grassroots Portal at www.votervoice.net/ NACS/Campaigns or text NACS to 50457 to get started. Follow NACS Government Relations on Twitter at @NACSGR.

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| OCTOBER 2020

L

ike much of 2020, grassroots advocacy looks a little different during COVID-19. Our world has adapted to working from home, and in the midst of all things virtual, NACS has had to pivot to remote advocacy. It is critical that Capitol Hill hears the convenience industry’s story as convenience retailers are designated essential businesses. There’s one problem though: During the pandemic we can no longer bring members of Congress and retailers into the same convenience store.

So, we’ve decided to bring them together on the same computer screen.

Our new grassroots program, NACS Virtual Townhalls, easily connects retailers and their legislators for in-depth issue discussions. Through virtual meeting CONVENIENCE.ORG

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

NACSPAC donors who made contributions August 1-31, 2020, are: RTod Butler Matrix Capital Markets Group Inc.

Julie Jackson Jaco Oil Company

Jason Link Jack Link's Protein Snacks

George Penyak Restaurant Technologies Inc.

Tom Field BIC Corporation

Thomas E. Kelso Matrix Capital Markets Group Inc.

Vito Maurici McLane Company Inc.

Tony Gaines NVIP LLC

Kevin M. LeMoyne Coca-Cola Company

Mike McNamara BIC Corporation

James Rogers Society of Independent Gasoline Marketers of America

Thomas G. Gresham Double Quick Inc.

Patrick Lewis KickBack LLC

Gilbert D. Moyle Moyle Petroleum Company

Van Tarver GreenPrint LLC

ONE VOICE This month, NACS talks with Colin Dornish, senior director of operations, Coen Markets Inc. What role in the community do you think convenience stores should play?

The convenience store is a major support system within its community, having a wide range of influence on Colin Dornish various aspects of daily life.

At quick glance, stores provide jobs for residents, fuel and electric for transportation, sustenance for living and social support for community members. In both times of normalcy and uncertainty, the convenience store proves to be an essential and critical factor in the lives of community members.

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

Currently, activists, protesters and allies are shining a spotlight on many American policies that are being

CONVENIENCE.ORG

deemed unfair, outdated or broken. Politicians and lawmakers are listening to the public now more than ever before, and in order to remain a critical support system for our communities, it is crucial for our industry to be represented in all policy changing discussions that would have an impact on stores. Industry regulations have proven to change rapidly in the past, so being engaged politically ensures our industry’s needs are heard in the political realm. The results are not always immediate but can be seen in the areas of swipe fees, the PACT Act and EMV timing.

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

To me, the most uncertain area impacting the convenience store industry going into the 2020 election is the environmental regulation agenda. All fuel retailers and fuel wholesalers should be keeping themselves informed and up to date on this topic.

What c-store product could you not live without?

In our market, I cannot go more than a few days without grabbing a slice of our buffalo chicken pizza and washing it down with a made-to-order frozen lemonade.

OCTOBER 2020 |

23

INSIDE WASHINGTON

These calls have been a great opportunity to explain why essential businesses need liability relief.

Margaret Hardin is the NACS grassroots manager.

She can be reached at mhardin@convenience.org.

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| OCTOBER 2020

platforms, we’ve enabled a face-to-face dialogue where retailers can share how COVID-19 has affected their business.

Members of Congress provide updates from Capitol Hill and valuable insight into what’s going on behind closed doors.

Since April, we have hosted 17 Virtual Townhalls with members of Congress and retailers across the country. These opportunities to share our story have been invaluable, as Congress considers legislation in response to the crisis that will impact your businesses.

Conversation during a Virtual Townhall can vary from member to member, but there are two main issues discussed during each call: liability protections for essential businesses and tax incentives for frontline workers. Retailers showcase to their member of Congress all the steps they’ve taken to mitigate the spread of COVID-19. They put a face to their business and share their story and the struggles they’ve had during the pandemic. Since being designated as essential businesses at the beginning of the COVID-19 crisis, c-stores have taken extraordinary measures to protect both employees and customers from the spread of the disease. On each call, retailers explain that there is a real fear that convenience stores will become a target for unfounded lawsuits related to the pandemic simply because they stayed open. As of August 2020, over 4,200 lawsuits have already been filed in relation to COVID-19.

These calls have been a great opportunity to explain our position and why essential businesses need liability relief.

Retailers also share the stories of their employees, who are essential workers heroically serving Americans during this crisis. Many c-stores have offered increased wages or paid bonuses for their employees, but not all businesses have or are able to do this. During the townhalls, retailers ask that the legislator support tax incentives, such as the AG CHAIN Act, which would exempt employees’ wages from federal income tax. That means more money would go

In a recent @NACSGR campaign, retailers tweeted at their legislators to address the importance of liability protections for the convenience retailing industry.

directly into each employee’s pocket as a thank you for their heroic efforts.

As liability is one of our biggest issues, legislators on the House and Senate Judiciary Committees and moderate Blue Dog Democrats have been our primary targets for Virtual Townhalls. Rep. Dean Phillips (MN-03), a small business owner, has faced a lot of the same issues retailers have. Senator Josh Hawley (MO) took the opportunity to ask our retailers what specifically our industry would want in a potential liability bill and promised he’d take their message to Senate Leadership.

After a townhall with Rep. Mike Thompson (CA-05), Chris Bambury, vice president of Bambury Inc., said he found the meeting to be exceptional. “[It was] more rewarding than all the congressional office visits I’ve done with our members over the last six years,” he said.

As our world gets used to the “virtual new normal,” these calls have provided an incredibly unique experience where small groups of retailers can have one-on-one, uninterrupted access to their legislator.

Both retailers and members of Congress have found NACS Virtual Townhalls meaningful and valuable, and we plan to keep them a part of our grassroots toolkit for many years to come. Not even a pandemic can keep us from sharing our story!

If you’re interested in participating in a Virtual Townhall, contact Margaret Hardin at mhardin@convenience.org.

CONVENIENCE.ORG

Saying Goodbye

AS OF AUGUST 25, 2020:

NACS RECOGNIZES LEGISLATORS WHO HAVE BEEN CHAMPIONS FOR THE CONVENIENCE AND FUEL RETAILING INDUSTRY.

iStock.com/jimfeng

BY PAIGE ANDERSON

While partisan political pundits are prognosticating on possible outcomes for the upcoming election, we already know there will be new members of Congress sworn in to the 117th Congress due to retirements, resignations, redistricting or running for other offices. Five senators and 27 representatives have decided not to seek re-election—many who have been longtime friends of the convenience industry. These congressional champions of convenience went above and beyond just voting or co-sponsoring a bill. They met regularly with convenience retailers in their home districts and states, and many participated in a NACS In Store event. They took the time to learn and educate themselves about the industry and became advocates on behalf of their constituents. Whether it be in a meeting, hearing, markup or debate, these members of Congress were vital to advancing important issues of the convenience industry. While there is not enough room to share the names of each senator or representative and how they had an impact on the industry, NACS would like to highlight just a few of these convenience champions.

CONVENIENCE.ORG

Members of Congress Retiring from the U.S. Senate: Sen. Lamar Alexander (R-TN) Sen. Mike Enzi (R-WY) Sen. Johnny Isakson (R-GA) Sen. Pat Roberts (R-KS) Sen. Tom Udall (D-NM) Members of Congress Retiring from the U.S. House of Representatives: Rep. Ralph Abraham (R-LA) Rep. Justin Amash (Lib-MI) Rep. Susan Brooks (R-IN) Rep. Mike Conaway (R-TX) Rep. Susan Davis (D-CA) Rep. Bill Flores (R-TX) Rep. Tom Graves (R-GA) Rep. George Holding (R-NC) Rep. Will Hurd (R-TX) Rep. Peter King (R-NY) Rep. Dave Loebsack (D-IA) Rep. Nita Lowey (D-NY) Rep. Kenny Marchant (R-TX) Rep. Paul Mitchell (R-MI) Rep. Pete Olson (R-TX) Rep. Martha Roby (R-AL) Rep. Phil Roe (R-TN) Rep. Francis Rooney (R-FL) Rep. Jim Sensenbrenner (R-WI) Rep. Jose Serrano (D-NY) Rep. John Shimkus (R-IL) Rep. Mac Thornberry (R-TX) Rep. Pete Visclosky (D-IL) Rep. Greg Walden (R-OR) Rep. Mark Walker (R-NC) Rep. Rob Woodall (R-GA) Rep. Ted Yoho (R-FL)

Senator Mike Enzi (R-WY): Before being sworn in as Wyoming’s 20th senator in 1997, Sen. Enzi was an accountant, had served in state and local politics and had owned and helped operate his family’s small shoe business. It was his experience owning and operating a small business that helped make him such an effective senator serving on several powerful committees, such as the Senate Finance Committee, Senate Banking Committee and the Senate Health, Education, Labor and Pension Committee. He passed more than 100 bipartisan bills signed by both Democrat and Republican presidents. His tenure on these important committees put him in a unique position to champion several key issues important to convenience retailers.

Interchange fees and payment security, energy and fuels, menu labeling, taxes and health care were just a few of the issues NACS worked closely on with Sen. Enzi and his staff. He also was the first senator to participate in a NACS In Store event during the inaugural year of this signature NACS grassroots event.

(continued on page 26)

OCTOBER 2020 |

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INSIDE WASHINGTON

(... continued) Members of Congress Retiring to Run for Other Offices: Rep. Rob Bishop (R-UT) Rep. Bradley Byrne (R-AL) Rep. Doug Collins (R-GA) Rep. Paul Cook (R-CA) Rep. Tulsi Gabbard (D-HI) Rep. Greg Gianforte (R-MT) Rep. Denny Heck (D-WA) Rep. Joe Kennedy III (D-MA) Rep. Ben Ray Lujan (D-NM) Rep. Robert Marshall (R-KS) Members of Congress Who Have Resigned: Rep. Chris Collins (R-NY) Rep. Sean Duffy (R-WI) Rep. Katie Hill (D-CA) Rep. Duncan Hunter (R-CA) Rep. Mark Meadows (R-NC) Rep. John Ratcliffe (R-TX)

Paige Anderson is the NACS director of government relations. She can be reached at panderson@convenience.org.

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| OCTOBER 2020

Representative John Shimkus (R-IL): Rep. Shimkus has a long history of serving his country and his community before being elected to the U.S. House of Representatives in 1996.

He graduated from the U.S. Military Academy at West Point, and after serving in the U.S. Army and becoming a high school teacher, he continued to serve in the Army Reserve, even after being elected to Congress. In Congress, Rep. Shimkus served on the powerful House Energy and Commerce Committee.

Through his tenure on the committee, he rose to become chairman and ranking member of the subcommittee related to energy and the environment. He also sat on subcommittees relating to health and telecommunications. Food safety and FDA issues, menu labeling, chemical security and issues relating to fuels, the Renewable Fuel Standard, underground storage tanks and electric vehicles were just a few of the topics that NACS had the pleasure of working on with Rep. Shimkus and his staff. Rep. Shimkus never missed an opportunity to meet with convenience retailers in his district or participate in a NACS In Store event. In hearings, he frequently shared with his colleagues how the bills under discussion would impact the convenience industry and his local retailers.

Representative Greg Walden (R-OR): Rep. Walden was first elected to the U.S. House of Representatives in 1998 after serving in the state legislature. Before coming to Congress, he had owned and operated local radio stations in Oregon. He served on the House Natural Resources Committee, including serving as a subcommittee chairman over

forestry and parks issues. He also served on the powerful House Energy and Commerce Committee and eventually became full committee chairman and ranking member when the party leadership changed in 2019.

Through his service on subcommittees relating to telecommunications and energy and power, NACS worked closely with Rep. Walden and his staff on issues relating to menu labeling, data security and privacy, energy and fuels and electric vehicle charging infrastructure. Rep. Walden also participated in a NACS In Store event and was one of three members of Congress who helped participate and celebrate NACS’ 100th In Store event last year.

Representative Mike Conaway (R-TX): Rep. Conaway is completing his eighth term in the U.S. House of Representatives. Before coming to Congress, Rep. Conaway was a certified public accountant and had been the chief financial officer for an oil and gas exploration firm in Texas.

National security and food security have been his top issue priorities as he served on the House Armed Services Committee, House Select Intelligence Committee and the House Agriculture Committee.

As chairman of the House Agriculture Committee, Rep. Conaway and his staff worked closely with NACS on the farm bill and ensured convenience retailers had the opportunity to participate in the SNAP program and that retailers had the ability to accept SNAP benefits from customers in need. NACS also worked closely with Rep. Conaway in the implementation of the SNAP program, where the U.S. Department of Agriculture had tried through the regulatory and implementation process to limit and prevent the convenience industry’s participation in SNAP. In addition to meeting regularly with convenience retailers in his district, Rep. Conaway also participated in a NACS In Store event.

CONVENIENCE.ORG

IDEAS 2 GO

From the Ordinary Hills & Hollows embodies its tagline of “convenience with a conscience.”

BY SARAH HAMAKER

I'm a huge believer that service and hospitality go hand in hand.

Hills & Hollows bakes pizzas on-site in an Old World-style oven and sells locally sourced organic breads and baked goods.

During the COVID-19 crisis, the store began offering online orders and curbside pickup.

F

or Shawn Owen, Hills & Hollows in Boulder Town, Utah, is more than a convenience store—it’s a place to show hospitality to locals and tourists alike. “I’ve spent 20 years of my career

SEE MORE! Ideas 2 Go showcases how retailers today are operating the convenience store of tomorrow. To see videos of the c-stores we profiled in 2019 and earlier, go to www.convenience.org/Ideas2Go.

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| OCTOBER 2020

in the restaurant industry, and when you think of a gas station convenience store, you don’t think of hospitality,” he said. “But Hills & Hollows has become a unique, hospitable destination that happens to have gas and convenience items.”

THE BACKSTORY Owen’s parents bought the store in 1989, and his first job there involved bagging ice for a quarter a bag when he was 10 years old. The location near state and national parks brought in tourists from all over, and his parents often chatted up visitors.

“I watched how they made everyone who came through the door feel special,” Owen said. That made an impression on CONVENIENCE.ORG

ABOUT

Hills & Hollows has become a one-stop shop for locals and tourists, stocking general merchandise, alcohol and groceries, with a focus on fresh and natural foods, and providing showers and laundry services. Wednesday nights are for live music.

him, and when he had the opportunity to purchase the store from his parents in 2016, he did. “It’s been a passion of mine to run this because I love the business and am glad we were able to keep it in the family,” he said.

Owen has continued the legacy his parents started, including being at the forefront of healthy eating. “They brought in natural foods long before natural food was a movement,” he said. “The local cowboys thought they were crazy, but the European tourists loved it.”

The store has grown into a one-stop shop for locals and tourists. Hills & Hollows has a mini-grocery section, a package agency, showers and laundry service, liquor, a camping section, fresh food and home supplies. “We always find a way to get what our customers want,” he said. When someone requested he carry camera film, he managed to find a source. “It’s the little things like stocking film upon request that make our store unique,” he said. “I’m a huge believer that service and hospitality go hand in hand.”

Hills & Hollows bakes pizzas on-site in an Old World-style oven and purchases organically sourced breads, pastries, cookies, brownies, burritos and sandwiches from local vendors. In addition, the store stocks locally made jewelry, creams, jams, essential oils, knives and paintings. “It’s not a profit center for us, but we do it to support the locals,” Owen said.

CONVENIENCE.ORG

Name of company Hills & Hollows Market

A local musician plays on Wednesday evenings. “We have continued that during the pandemic, and everyone has cooperated by socially distancing to listen,” he said. “Our local clientele especially enjoys our music events.”

Date founded 1978 # of stores 1

MEETING A CRISIS HEAD-ON When COVID-19 began shutting down areas, Hills & Hollows invested in developing an online store. “We knew we were the only source for groceries in our area,

Website www.hillsandhollowsmarket.com

BRIGHT IDEAS To free up employees to focus on delivering excellent service to the customers of Hills & Hollows, owner Shawn Owen put systems in place to run the store efficiently, such as point of sale and inventory methods designed to save time. “We want to be super-efficient in the way we do things so our staff can put their full attention on our customers,” he said.

To that end, he’s always thinking about what extra service he can bring to Hills & Hollows to make life just a little bit easier for his customers. For example, he’ll soon be adding a U.S. Post Office kiosk.

“Anything we can do to make their stop a better experience for our customers, we’ll do,” he said. “It’s all about making our store more hospitable and the best place they’ll ever shop.”

OCTOBER 2020 |

29

IDEAS 2 GO

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

Visit her online at www. sarahhamakerfiction.com.

ILP_OCT_half.pdf

1

9/15/20

so we needed to keep food coming into the community and keep the community safe,” Owen said.

He shut the doors of the physical store to customers and reconfigured the layout to facilitate online order fulfillment. He installed a walk-up window for foot traffic and started curbside pickup. “I feel good that we did the right thing in not allowing customers into our store for two months, and the window and curbside service allowed us to stay in business,” Owen said.

Now, the store follows the state requirements for masks. “Our state has a color-coding system, and we post on our front door what’s required for customers to enter,” he said. He still does online orders, but the demand has dropped.

“Most people want to drive and go in, but we have some elderly customers who want

curbside pickup to continue,” he said. “For us, online ordering is a smart community move but not a smart business move because it’s not very profitable for us.”

Hills & Hollows also served the community by opening its restrooms to the public. “I paid for ads on Google and social media to show we had bathrooms available because the town and parks had shut down,” Owen said. “We had a huge influx of people coming to the parks around our town, and our store had the only public bathrooms around.”

For Owen, the most important thing in running the store is making sure customers enjoy the hospitality Hills & Hollows offers. “We want our guests to leave feeling like there’s a way to have hospitality and service even in a location like a gas station,” he said.

1:42 PM

Virtual Live!

November 18 - December 17, 2020 (11 days over 4 weeks)

Incubating ideas to . transform business. convenience.org/ExecEd-MIT Half Horz.indd 1

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| OCTOBER 2020

9/15/2020 5:33:12 PM CONVENIENCE.ORG

Carry our most popular flavors and rack up the sales Top sellers by rank

3-box rack: Essentials

12-box rack: Flavor Seekers 9-box facing

15-box rack: Super Sellers 12-box facing

FLAVOR

UNIT UPC

1.

Berry Extra Strength

2.

Grape Extra Strength

3.

Berry

4.

Blue Raspberry Extra Strength

5.

Peach Mango Extra Strength

6.

Strawberry Watermelon Extra Strength

7.

Sour Apple Extra Strength

8.

Grape

9.

Tropical Burst Extra Strength

10.

Pomegranate

11.

Orange Extra Strength

12.

Strawberry Banana Extra Strength

Included in 3-box rack.

Included in 12-box rack.

Included in 15-box rack.

Claim your FREE 3-box rack and merchandising kit at 5hourenergyretailer.com Mailings and promo items are subject to change. You may opt out of mailings and messaging at any time. Most popular flavors based on Nielsen AOD, 52 Weeks Ending 08/08/2020, Convenience, $/$MM ACV. Š2020 Living Essentials Marketing, LLC. All rights reserved.

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Shelf Shelf

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| OCTOBER 2020

CONVENIENCE.ORG

f Esteem

An honest look into retailers’ decision-making process for adopting new products.

BY JENNIFER BULAT

T

hirty-thousand: That’s the average number of new products that enter the market each year, according to Nielsen.

The number is daunting. But with innovation making up anywhere from 10% to 20% of a convenience store’s set, it’s a critical part of a store’s offering —especially in a channel known for new items.

So, how does an operator decide which new products deserve shelf space? For Derek Gaskins, CMO of Yesway, it’s about taking risks—to a point.

“There’s a difference between leading-edge and bleeding-edge: We don’t want to get that far out there,” Gaskins said. “You have to be careful with where you place your bets. I need to make sure anything on the shelves is productive.”

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It’s a valid concern: Only 30% of products launched in the U.S. will grow or sustain their sales in their first two years, Nielsen figures show. Striking the right balance between triedand-true and new means taking a close look at trends, data and what customers want—all of which was made more complicated with the arrival of COVID-19 earlier this year.

A MATTER OF TASTE When considering a new product, M.J. Simons, category manager for beverages for the 340-store MAPCO chain in Franklin, Tennessee, starts with a basic guideline. “First and foremost, it’s the uniqueness [of the product],” he said. “Stay away from the same old, same old that everyone else is doing.”

Rachel Krupa, founder of The Goods Mart in the SoHo neighborhood of Manhattan, has very specific requirements for her small, 200-SKU store.

OCTOBER 2020 |

35

“ You want to have the tried-and-true, but you want something someone’s never seen.”

HOW TO WORK WITH RETAILERS: DOS AND DON’TS

How can suppliers and retailers work together effectively to get new products on the shelves? Retailers have some advice.

Shelley Coleman of Stinker Stores: When you present new products, “Tell me what you’re really getting behind,” including items that will be heavily promoted at events such as the Super Bowl.

Derek Gaskins of Yesway: Tell him why he should care about the product. Also, “Be fact-based and quantitative. Never rely on me to do your marketing. I can’t be your marketing plan and your distributor.”

Brian Nichols of Maverik: “Know your product. The history of an item is good, but don’t be afraid to speak to the numbers.”

One of the biggest turnoffs for him is when a manufacturer offers data but spins it to the product’s advantage. It’s easy to say it’s the fastest-growing product in the category if it’s the only one, he said. “Don’t try to sugarcoat it or cherry-pick it.”

Rachel Krupa of The Goods Mart: On new product applications for her store, “If the intention is there ... but it’s not 100% organic, that’s OK.” M.J. Simons of MAPCO: “Highlight your strengths, and give consumers more information about what the product does.”

John Archer of Shell Food Mart: “Make sure you have competent salesmen who know how to get the order correct.”

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| OCTOBER 2020

The products she stocks have to be non-GMO, with no artificial flavors or preservatives. That’s the baseline. Also, does the product fill a void in her store? After that, it comes down mostly to one thing: taste.

Krupa has a lot of regular customers, and she often enlists them for taste tests as she’s deciding what to stock. Many of those customers (in nonCOVID-19 times) are on a break from a nearby office building, looking for an interesting snack.

“We help customers by talking them through what they’re looking for,” Krupa said.

Other things customers are looking for, especially right now, are the brands they know.

“Brand recognition does matter in light of COVID-19,” said Brian Nichols, category manager for nonalcoholic beverages for Salt Lake Citybased Maverik, which has 360 stores in 11 states.

“It has power right now. People want comfort.”

Gaskins of Yesway, which has more than 400 stores, has a saying: “You win with winners.” If a supplier comes to him with something that’s going to be promoted in a campaign during the Super Bowl? “Of course I want that,” he said.

Because Krupa’s store is what she calls “community-driven,” she’ll stock items customers request. One asked for a Himalayan sea salt variety of popcorn from a brand she already carried, so she brought it in. Her customers also are open to interesting or slightly out-there items, such as mushroom jerky. “You want to have the tried-and-true, but you want something someone’s never seen,” Krupa said.

TRACKING TRENDS Beyond seeing what’s working for competitors and in the grocery channel, where many trends start, some retailers keep an eye on what’s already trending in their own stores.

Shelley Coleman, category and merchandising manager for Boise, Idaho-based Stinker Stores, which has 111 locations in three states, looks to trends that are already going strong. For example, CONVENIENCE.ORG

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in the beer category, IPAs are popular in some of the chain’s markets. “So if someone is presenting a new IPA, I know it’s on trend with what consumers are drinking,” she said. When considering if it’s a good fit for her shelves, “I’ll weight it more than something that’s off-trend,” she said.

Nichols of Maverik watches a category’s overall growth trends. “If it’s declining and I’m going to shrink its space, I’m not going to look at a ton of new stuff for that category,” he said. In categories that are growing, such as energy, isotonics and water, he has room for innovation.

It’s optimal if a product has “a little bit of a track record with some history,” Nichols said. He also won’t consider a brand unless it’s been in the U.S. market for at least a year. From there he decides based on brand recognition, the manufacturer’s go-to-market strategy and dollars per point of distribution. He won’t accept a new item unless it’s growing. “I have zero interest in a declining brand,” he said.

“Is it worthwhile taking space away from another category to give it space?” Coleman said. “Make sure your space assigned to each category is on trend for that moment.”

MEET AND GREET When you can’t get in the same room with a supplier or make an appointment at a trade show booth, finding out what’s coming can be a challenge. These days, products are being shipped to Gaskins of Yesway at his home; from there, he’s distributing them to co-workers (or sometimes neighbors) to get their opinion. Nichols goes into the office once every few weeks to sift through all the products he’s received. Coleman said she’s doing countless Zoom calls, which she called inefficient compared to walking around a trade show.

It also has become more challenging to find lesser-known suppliers. To help Yesway with that, the company enlisted the platform RangeMe to find new products from small startups. RangeMe has a global database of 175,000 suppliers. “If we’re looking for a new specialty item like a gourmet snack, fresh food or product good for our own brands/private label, it helps with that,” Gaskins said. “It helps on both sides: Suppliers develop a profile, and I can vet the company.”

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| OCTOBER 2020

Krupa of The Goods Mart asks suppliers that are interested in being included on her shelves to fill out an application. It asks questions such as why the company was founded and if it is committed to being an environmental steward.

Earlier this year, she did an audit of her brands and discovered that only three of them came from Black-owned businesses. Krupa put out the word to her network that she wanted to find more Black-owned brands to stock, and now she has 22. A happy coincidence of that, she said: The majority of them are also female-owned.

SPACE INVADERS Regardless of whether a category is growing, sometimes it just comes down to whether there’s room for one more. To that end, some retailers have found shippers to be effective.

“When you can set up a nice shipper that you don’t need a degree in cardboard engineering to set up, that can really help new products,” said John Archer, co-owner of Shell Food Mart in Hinsdale, Illinois.

“It’s good exposure, and the customer realizes there’s something new.”

Coleman of Stinker Stores agrees, as long as the right product is on the shipper. “If it goes on a crazy promotion, it’s a good secondary location for the product,” she said.

No matter the placement of the product, Simons of MAPCO finds it hard to effectively promote it when the packaging or messaging doesn’t work or doesn’t resonate. “A lot of products really don’t call out on the packaging what customers are looking for,” he said.

“Sometimes, especially with new products, I look at the packaging and think, ‘Why did they think this was a good idea?’” Archer said. “It’s either too plain or too much.”

Krupa’s relationship with her customers allows her to help a product overcome unfortunate packaging. She’ll keep the item on her shelves if she and customers like the taste, but she’ll educate customers on the product, and she’ll also give feedback to the supplier on the packaging.

EXIT STRATEGY Muddying the waters in the time of COVID-19 is a problem that’s good to have: Because some consumers are avoiding or cutting their trips to grocery and other large stores, some of the stops for fill-in items are spilling over to convenience stores.

But when most of the store is selling well, what do you cut to make room for the new?

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SHOWCASE YOUR PRODUCTS WITH NACS

Don’t let the cancelation of this year’s NACS Show stop you from making connections with buyers as we close out 2020. Suppliers, you can get your company, brand and products in front of the most engaged network of convenience buyers in the world with the Crack the Code Experience.

Digital Showroom A branded digital showroom ensures that retail buyers are always looking at your latest products, services, technologies and equipment when they are ready to shop. Privacy controls let you decide who can and cannot view your offerings. You can invite specific customers to your company’s personal showroom with a private link, so it’s an easy way to get unlimited products and information in front of convenience retail buyers from around the globe.

You can also embed videos on your company profile, showroom and product pages, and promote public demos of your product, as well as receive sample requests. And you can leverage private messaging to connect live one-on-one.

Retailer Matching The NACS buying community comprises the largest, most qualified set of retailers in convenience. During the Crack the Code Experience, SalesMatch™ will unlock new retailer prospects each week—helping you reach the right buyers.

Lead Analytics View details of who has been visiting your company profile and product showroom. In addition, you can message them, track and update lead status, take notes and centralize communications with your prospects—including live chat opportunities.

Exhibitors receive two months of exposure, with showrooms accessible from November 2 through December 31, and dedicated expo days and hours (November 2–20), so you can plan your time around the event. You can also register as an attendee to access more than 50 education sessions.

For more information, visit www.convenience.org/ events/Crack-the-Code-Experience/Exhibit or contact your NACS account manager.

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| OCTOBER 2020

“In previous years, you’d run the reports and see what’s working and what’s not,” Simons of MAPCO said. This year, “It’s going to be tough to make that distinction.”

Nichols of Maverik will give a new product a full year. “It gets the benefit of the doubt for the first year,” he said. But if it’s still not doing well after two cycles, “it’s time to look at moving on.”

Archer of Shell Food Mart has a credo when it comes to his shelves: “Don’t allow the dead to take over.” It’s critical, especially for smaller operators, he said, to keep track of new items: Don’t let it stay there until it’s out of date and then you have no choice but to replace it with something else.

KEEP CALM AND SELL ON In a normal year, a common refrain in the c-store industry is the dreaded “new product fatigue.” (One retailer interviewed for this story said he wouldn’t be surprised to see broccoli-and-cheese-flavored candy someday.)

But as with everything else this year, nothing is normal. At least two of the retailers interviewed cited innovations that were slated to arrive—and then didn’t. A few cited a lack of focus from manufacturers on new items. Others said they have seen products roll out with little advertising and promotion behind them. They want to know what’s going to happen. Will the product be reintroduced?

What’s the plan?

Simons of MAPCO said some of the products he’d been expecting have been pushed back to 2021. He’s hoping for more innovation next year.

For Coleman of Stinker Stores, being deemed an essential retailer—and enjoying the sales associated with that—goes only so far. She’s been happy to keep her shelves stocked, but she still wants the innovation for which c-stores are known.

“Innovation was always such a big thing, and that was incremental dollars to our bottom line—and we’ve had to learn to live without that,” Coleman said.

Especially concerning to her: What products did she and her customers miss out on this year without that innovation?

“Retailers don’t know what we don’t know,” she said.

Jennifer Bulat has worked in the convenience industry for 18 years, and she would love to hear from you at jenniferbulat@gmail.com.

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LAST MILE 42

| OCTOBER 2020

CONVENIENCE.ORG

How the pandemic is shaping 10 key trends in the convenience and fuel retailing industry.

I

PART 1 OF 3

t’s well-accepted that the pandemic accelerated many trends to levels not expected for years. Consider remote work. The number of Americans working from home at least half of the time grew 159% from 2005 to 2017, according to a report by Global Workplace Analytics— but the arrangement only applied to 3.4% of the workforce. In contrast, two recent reports predict that between 1 in 6 and 1 in 5 workers might continue working remotely after the pandemic.

“The idea that workers are going to go back to the grind of a commute into the city—or a campus for a company—that doesn’t hold true,” said Neil Saunders, managing director of GlobalData. “Many people are saying ‘No, that’s not happening.’ I don’t see this reverting to anywhere near normal this year, and it will continue to be very disruptive in 2021.”

Now that the dust is settling, it’s important to examine the outlook of various “weak signals” that had the potential to make an impact on fuel and convenience in years to come. Where are they now, and what should retailers expect in the coming years now that these trends have been fast-tracked, and in some cases, derailed?

SINGLE-USE PLASTICS In a recent episode of the NACS Convenience Matters podcast, Andrew Thornton recounts the first time he watched the 2016 film “A Plastic Ocean.” “The most vivid part I remember of

CONVENIENCE.ORG

that film was sending cameras down way below the depth of what human beings should go, the very deepest part of the ocean, and right down there the whole thing was lined with plastic bottles.”

As the founder of North London grocer Thornton’s Budgens, he decided to be part of the solution. His company famously created a plastic-free zone where nearly 1,700 SKUs were offered without plastic packaging for shoppers who wanted to avoid the material. It also was an attempt to show that plastic-free can be profitable.

Thornton wasn’t alone. Significant efforts were being made around the world at both the corporate and legislative levels to reduce waste from single-use plastics such as bags, straws, lids, utensils, beverage bottles and coffee cups. The first state to ban plastic bags in retail was California in 2014.

By January 2020, seven additional states had enacted bans, despite efforts by plastic industry lobbyists.

The problem is easy to understand. One estimate suggests that while the global output for plastic is around 450 million tons per year—with nearly half of all plastic ever manufactured having been made since 2000—about 40% is used for single-use packaging. Less than one-fifth of all plastic is recycled globally, and many single-use items are not accepted by local recycling centers. It’s a particular concern in the U.S. where, according to one study, shoppers use one plastic bag per resident per day.

OCTOBER 2020 |

43

But attention was rapidly diverted as the COVID-19 pandemic began spreading in midMarch. Due to safety concerns, many retailers banned reusable bags out of fears that the virus may linger on their surfaces. “Using billions of plastic bags a year is a bad thing for our environment,” said Yale School of Medicine professor Joseph Vinetz, in a March interview with Minnesota Public Radio. “But right now, it’s even worse for our environment to have an ongoing pandemic.”

There also was an issue of practicality amid more immediate concerns.

“We were looking for brand building, guest-facing supplies before the pandemic, but we had to press the pause button,” explains Brian Scantland, vice president of fresh food operations at Thorntons, a Kentucky-based convenience store chain. “During COVID we were operating on the very bottom tier of Maslow’s hierarchy. The supply chain was so

10 Key Trends Shaped by COVID-19 1. Single-use plastics 2. Last mile 3. Cashless payments 4. Consolidation of c-store industry 5. Tobacco/vaping/marijuana 6. Electric vehicle market 7. Dollar stores 8. Starbucks and high-end coffee 9. Fast casual restaurants 10. Direct-to-consumer CPG products

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| OCTOBER 2020

shocked that we had to find alternative suppliers on many normal goods just to stay in business.

COVID drove the necessity of securing the most basic essentials just to open your store.”

Now it appears that concerns regarding singleuse plastics have returned. Starbucks announced on August 7 that stores in the U.K. would once again accept reusable cups after a four-month break. In Cincinnati, a new bill would completely ban single-use plastic from all businesses that sell food, while requiring reusable bags to be free for an initial period of six months. Kroger supports the move, even though the company previously announced in 2018 that it would phase out singleuse plastic bags by 2025.

Despite these moves, it’s apparent that COVID-19 caused a temporary loss of momentum, but the same cannot be said of last-mile delivery and cashless payments.

THE WAR FOR LAST MILE It’s often assumed that Amazon or Google made the first commercial drone delivery, but that honor belongs to 7-Eleven. The retailer partnered with startup Flirtey in 2016 to fly an assortment of food to private homes in Nevada. Altogether, the duo completed 77 flights from one store to a dozen customers, with a wait time averaging less than 10 minutes.

Although drone delivery has yet to take off, lastmile delivery has become a magnet for investment.

A May 2020 report from McKinsey & Company claims the focus is venture capital’s favorite segment of the transport and logistics sector.

CONVENIENCE.ORG

Figuring out how to do small deliveries in a profitable way is a big issue.

In London, tech startup Weezy recently launched a 15-minute grocery delivery service that relies on electric scooters and bicycles. In the U.S., startup Bond recently partnered with Softbank-funded REEF Technologies to deliver products from trailers in empty parking lots. And since 2013, goPuff has expanded a similar model across America’s college towns. Now in 500 cities with 200 distribution centers, the company offers more than 2,000 items in 30 minutes or less—all for a flat fee of $1.95 with no service charges. Early marketing played off the idea of convenience stores being an inconvenient— and even dirty—alternative.

Indeed, this may be the most troubling aspect of last mile: It’s apparent that innovation is being driven from outside the convenience channel.

Are c-store retailers falling behind and at risk of being out-convenienced?

The pandemic drove many reluctant shoppers to try e-commerce solutions for the first time.

Online grocery delivery and pickup sales rose from $4 billion in March 2020 to $7.2 billion in June, according to Brick Meets Click. A May 2020 blog post from Instacart’s CTO reveals that the company experienced a 500% increase in year-over-year order volume.

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| OCTOBER 2020

According to Bain & Company, 35% to 45% of this COVID-19 surge is likely to survive. The company forecasts online grocery penetration potentially doubling in select markets during the next five years.

“The big guys—the Walmarts of the world— are battling to win the bigger shopping occasions,” said Saunders. “This means there’s a whole range of smaller shopping missions that are still up for grabs.”

Convenience retail as a whole had previously taken a “wait and see” approach to delivery, but the pandemic forced retailers’ hands and resulted in third-party partnerships as a quick solution. But why can’t those aggregators leverage their marketplace data and deploy competing offers?

Indeed, DoorDash has done exactly that. The company quietly deployed its own network of competing dark stores to eight cities, leasing warehouse space and selling more than 2,000 SKUs through a virtual brand on the DoorDash platform called “The Convenience Store.” In each market, the company also boosts its product offer by partnering with local merchants—a big distinction from the convenience retailers that sell through DoorDash.

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The pandemic forced a lockdown long enough to reset habits.

Perhaps most concerning, convenience retailers using DoorDash for delivery are rarely competitive on price. When comparing the price of a basket containing four energy drinks in a market that had goPuff and DoorDash’s dark stores, it was 29.08% more expensive before tip to acquire those items from a major convenience store brand that partnered with DoorDash.

“Delivery used to be a novelty, but now consumers are starting to become price sensitive,” said John Nelson, CEO of Vroom Delivery, a platform that enables fuel and convenience retailers to operate their own delivery services. “The challenge is that retailers have to raise the price of their products to offset the 25%-30% fees charged

by third-party platforms,” explains Nelson.

“Consumers are then hit with an additional ‘service charge’ of 10% to 15% on top of those now-inflated prices, plus a fixed delivery fee of anywhere from $1 to $5. It’s also common for state laws to restrict the delivery of age-restricted products through third-party platforms, which is troubling for an industry that relies heavily on alcohol and tobacco sales.”

Retailers will figure out delivery in time, but they do have distinct advantages—such as hyperlocality. Saunders points out that 2020 also has witnessed increased consumer interest in local retailers. As people are on the move less and work from home more often, local stores are positioned to meet their demands. That could be good news for retailers who offer foodservice and pickup.

“Figuring out how to do small deliveries in a profitable way is a big issue,” said Greg Sterling, vice president of market insights at Uberall.

“Consolidation in delivery platforms is happening because you need scale to make it work, but consumers aren’t ever going to completely abandon stores even as they transact more online.”

A CASHLESS FUTURE The early months of the pandemic also witnessed a leap forward in consumer adoption of cashless payments—largely due to safety concerns. Visa reports that the usage of tap and go payments rose 150% in the U.S. during March.

A Mastercard survey from April 10–12 found that more than half (51%) of U.S. consumers said they’re using cash less often, or not at all, since the pandemic began.

But it’s become clear that health concerns are not shared by all. A particularly concerning Gallup poll conducted in late July found that 35% of Americans say they would not get a free COVID-19 vaccine. So, as with delivery, it’s likely that long-term adoption of mobile payments will be driven by its ability to provide convenience.

“On our platform, the volume of order-ahead has gone up by 400%,” said Sashiko Dias, managing partner of Incentivio, a company that creates digital platforms for many restaurant brands.

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| OCTOBER 2020

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“People are using apps more because they’re more convenient. Once you start to build a pattern of recurring transactions, it’s easier to keep your customers using them.”

It’s instructive to remember that the pandemic forced a lockdown long enough to reset habits. Consumers who now use scan and go technology inside stores, order curbside pickup from a mobile app or tap and go with Apple Pay may even start to look at the idea of queuing in a line to pay with cash and credit as somewhat antiquated—like the credit card imprinter.

This has implications as checkout-free technology continues to become more common.

In July, Aramark opened a fully autonomous convenience store inside a luxury apartment building in California—a convenient alternative to walking 10 minutes in each direction to the nearby 7-Eleven or Shell station. Aldi has plans to develop checkout-free technology for its locations, Amazon Go is launching stores in the U.K., and the new Amazon Fresh grocery stores are rumored to be powered by their smart Dash Carts.

“People vote with their wallets,” said Evan Shiue, vice president of strategy, finance and ops at Standard Cognition, a developer of autonomous checkout solutions. “What’s going to drive autonomous checkout is shopper demand. Twoday shipping wasn’t normal until Amazon set the standard, and now it’s the table stakes. It starts with a basket a week, two baskets a week, but then you suddenly start asking, ‘Why am I standing in line anymore?’ That’s disruptive. Once there’s a critical mass, it’s no longer a CapEx and ROI question.”

In a recent survey from Forrester Consumer Technographics, 19% of respondents said they made a digital payment in a store for the first time this May. Of those, 62% used a phone and 56% used a contactless card. Perhaps most telling is that 67% said they were satisfied with the experience, and 57% would likely continue after the pandemic.

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Sign up for NACS Crack the Code Experience to hear more from Frank Beard about the 10 trends, as well as spotlight sessions about last mile and electric vehicles. Visit www.convenience.org/crackthecode for information on how to register.

“When we look at the data, we see that there’s strong demand because of COVID-19,” said Colin Mayer, director of client solutions at Omega ATC, a provider of retail data security solutions. “It’s up to the industry to meet this demand. What we need is cross-collaboration between retailers, oil companies and POS providers. Sometimes people go to a store because it’s their local store, but what if they go to other brands that each have their own apps? That’s why they need one app that’s accepted everywhere.”

At the same time, a growing tech stack also raises additional security concerns—especially as retailers have access to more consumer data.

“We worked with a retailer that ran a voice phishing campaign across their network of around 80 locations, and they found that nearly 40% of employees provided sensitive data over the phone,” said Ashwin Swamy, director of cyber resilience at Omega ATC. “This is a massive blind spot. When visiting stores, you wouldn’t believe how many times we see systems exposed next to products on shelves. Access to physical hardware needs to be restricted.”

Frank Beard is a speaker, consultant and convenience retail analyst who resides in Des Moines, Iowa. Follow Frank on LinkedIn or Twitter at @FrankBeard.

This article is the first in a three-part series that examines 10 key trends fast-tracked or sidetracked by COVID-19.

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In the homestretch to November, polls show the presidential race narrowing and Republicans fighting to keep the Senate.

BY JIM ELLIS

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| OCTOBER 2020

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Visit the NACS Election 2020 page for updated information on the House and Senate races of particular interest to the convenience retailing industry at www.convenience.org/election2020.

A

s we move toward a conclusion to this rough and tumble U.S. presidential contest, we see polling closing between the two national candidates after former Vice President Joe Biden had opened consistent leads. Though Biden will likely prevail in the national popular vote, the presidency is won in the states, and we have seen a different winner in the national popular vote and within the Electoral College twice during this still young century.

The presidential contest continues to focus on about 10 states. To win re-election, President Trump must carry the swing states of Florida and North Carolina and hold three more critical domains that have moved closer to the Democrats since his 2016 victory: Arizona, Georgia and Texas.

If he holds those five, then the Great Lakes region becomes very manageable as he will only need one of the area’s swing states, meaning the group of states generally inclusive of Pennsylvania, Michigan and Wisconsin, but now Minnesota appears to also be entering the competitive picture.

This also assumes that Trump carries the 2nd Congressional Districts in both Maine and Nebraska, from the two states that split their electoral votes, and he sees no slippage in Iowa and Ohio. Conversely, this model also projects that Biden wins Nevada and New Hampshire, both of which have significant electoral swing trends.

Biden could win the Electoral College most likely by upending Trump in one of the latter man’s aforementioned core states: Arizona, Florida, Georgia, North Carolina or Texas. If he fails to break through, then

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the Democratic nominee will be forced to take all of the swing Great Lakes states: Pennsylvania, Michigan, Wisconsin and now Minnesota.

In looking at the current map, it is important to remember the polling structure from four years ago. For example, in Wisconsin, 33 polls were conducted during the 2016 presidential election cycle, and Trump led in only one, yet he won the state. In Pennsylvania, 62 polls were publicly released. Trump led in three, yet he won the state. Turning to Michigan, 45 surveys were commissioned.

Trump led in two, but he won the state.

Similar patterns are developing for the 2020 race. Will the end result be the same this year? It is still too early to tell. We do know, however, that more pollsters have entered the public domain employing different survey methodologies. Seeing wide ranges in states, even when polls are conducted during the same timeframe, has become commonplace. Therefore, more uncertainty clouds this election than others during the modern political era.

SENATE RACES The significant Senate primaries are now concluded, and they went out with a bang.

Knowing that one Massachusetts political dynasty would end in the battle between Sen. Ed Markey and Rep. Joe Kennedy III (D-Newton) in this year’s statewide Democratic primary, the veteran politico proved victorious.

Ed Markey was first elected to the Massachusetts state House of Representatives in 1972 and has held elective office in the state

OCTOBER 2020 |

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STATES TO WATCH PRESIDENT: Arizona Florida Georgia Maine Michigan Minnesota North Carolina Pennsylvania Texas Wisconsin U.S. SENATE: Alabama Arizona Colorado Georgia Iowa Maine Michigan Montana North Carolina U.S. HOUSE: California Florida Illinois Indiana Kansas Michigan Minnesota Missouri Nebraska New Jersey New York Pennsylvania Texas Virginia

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ever since, including serving for 36 years in the U.S. House. He won the Senate seat in 2013 when then-Sen. John Kerry resigned to become Secretary of State in the Obama Administration.

Sen. Markey’s 55-45% win over Rep. Kennedy in the September 1 primary may have put an end to the Kennedy family dynasty. It is the first time a Kennedy family member has ever lost a race in the state, meaning their overall record in Democratic primaries is now 26-1, beginning with John F. Kennedy’s first election to the House in 1946.

Turning to the national picture, the Senate races also feature a firewall of states. The campaigns continue to evolve as we move through the late primaries, and it is becoming clear that the Republicans are establishing a political safety net in order to protect their 53-47 chamber majority.

Of the 35 Senate elections on the 2020 elections card, it appears that 13 are highly competitive—11 of which are already under Republican control. The remaining 22 are either safe or definitively leaning to one party or the other. All totaled, Republicans must protect 23 of the 35 Senate seats on the ballot.

The Republican political firewall consists of four states, and if the GOP candidates win in each place, building a majority coalition becomes difficult, but not impossible, for the Democrats to obtain.

The most critical Senate race may be in Alabama. There, Democratic Sen. Doug Jones will defend the seat he won in a 2017 special election against retired Auburn University head football coach Tommy Tuberville, who defeated former U.S. Senator Jeff Sessions in the Republican runoff election. Even though Democrats hold this seat, Alabama becomes the cornerstone of the Senate Republican firewall. It is, therefore, a must-win campaign for the GOP. If Tuberville is elected, and he is favored with large polling leads and

| OCTOBER 2020

President Trump on the ballot in what will be a top-three state for him, the GOP majority number advances to 54. This means Democrats would have to win a preponderance of the competitive seats still remaining on the board.

The other three firewall states are not ones you typically hear the most about when reading stories covering the Senate races. In any event, however, if the Republicans convert Alabama, and small state Sens. Susan Collins (R-ME), Joni Ernst (R-IA) and Steve Daines (R-MT) all win, the chances of Republicans maintaining their majority, albeit likely in a smaller dimension, dramatically improve.

Of these, Maine provides the Democrats with their best conversion opportunity.

If the Republicans hold their firewall, then Michigan becomes the Dems’ No. 1 priority. Sen. Gary Peters (D) holding off a strong challenge from Republican John James is mandatory and, if successful, means the Democrats have secured their 46th seat. Their top conversion opportunities lie in Arizona, where retired astronaut Mark Kelly (D) has opened a significant lead, according to most polls, over appointed Sen. Martha McSally (R). Because the Colorado electorate has moved definitively left since Sen. Cory Gardner (R) was elected in 2014, the Centennial State is another top Democratic conversion target.

If they win Arizona and Colorado, the Democratic Senate total rises to 48, but they are still two short of majority control if Joe Biden wins the presidency and three away if Mr. Trump is re-elected.

By the time Election Day appears on the near horizon, it is probable that three states will become likely GOP wins. Senate Majority Leader Mitch McConnell (R-KY) and Texas Sen. John Cornyn should clinch victory, while Kansas Rep. Roger Marshall (R-Great Bend) winning his state’s August 4 Republican primary means the Sunflower State will also probably remain within the GOP camp.

If all of this comes to fruition, the Democrats are then down to North Carolina and the two Georgia seats, one of which is a special election, and possibly Sen. Lindsey Graham defending his seat against an unexpectedly strong challenge in South Carolina. In this firewall scenario, the Democrats would be forced to win two of the final four, if not three.

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North Carolina’s electorate has defeated more incumbent U.S. Senators than any other state in the modern political era; therefore, the Tar Heel State is always competitive. North Carolinians also tend to vote for a ticket, so chances are if President Trump carries the state, first-term incumbent Republican Senator Thom Tillis will likely follow him across the political finish line. If Biden wins North Carolina, it’s a good bet that he scores a national election victory and pulls in Senate Democratic nominee Cal Cunningham.

The two Georgia seats are also developing into competitive races, but Republicans have at least a slight edge in both. Still, neither Senator David Perdue (R) nor appointed Senator Kelly Loeffler (R) or her GOP opponent, U.S. Rep. Doug Collins (R-Gainesville), can be considered more than slight favorites in a state that is undeniably moving to the political center.

This overall description underscores the importance of the four-seat Republican firewall.

If Democrats hold Alabama or break through in either Maine, Iowa or Montana, odds are strong they will win Senate control. If not, Republican prospects of returning to lead the Senate in the next Congress increase significantly.

HOUSE RACES Today, the U.S. House majority stands at 232 Democrats, 198 Republicans, one Libertarian and four vacancies, including three from the Republican column.

Adjusting the totals to account for the vacancies, which should remain with their current parties in subsequent elections, would push the overall party division to 233 Democrats and 201 Republicans.

If the GOP is successful in re-claiming Michigan’s 3rd District, the seat from which Libertarian and former Republican Justin Amash (L-Cascade Township/Grand Rapids) is retiring, and the nomination of businessman and Iraq War veteran Peter Meijer enhances their general election prospects, the net conversion number Republicans need to regain the House majority becomes 16.

Increases to that conversion number occur when adding two seats for the Democrats. The North Carolina state Supreme Court adopted CONVENIENCE.ORG

an end-of-the-decade redistricting plan that virtually guarantees Democrats will gain at least two seats in the coming election. Sure of such an outcome, the pair of Republican incumbents from the two drastically altered districts aren’t even seeking re-election.

More uncertainty clouds this election than others during the modern political era.

Thirty Democratic House members hold seats in states that President Trump carried in 2016, most of which he will win again this year. These comprise the bulk of the 2020 Republican targets.

Democrats, however, have several conversion opportunities of their own. Strong challengers are attempting to convert multiple Republican seats in Texas (four) and Pennsylvania (two), along with single targets in California, Illinois, Indiana, Kansas, Minnesota, Missouri, Nebraska and Virginia, with secondary opportunities in Alaska, Montana and other places.

Though Democrats are favored to again prevail in the House, we will witness heavy congressional competition in as many as 32 states, featuring at least 59 competitive elections. Seeing that eight sitting representatives were already defeated in their nomination elections, uncertainty increases.

Though most of the electorates who defeated members in the primary will re-elect a new candidate of the same party, the large number of incumbent defeats could be a precursor to above average incumbent political mortality coming in the fall election. im Ellis is a 35-year veteran of J politics at the state and national levels who analyzes election data for major corporations, associations and legislative advocacy firms. He is president of Ellis Insight LLC. Contact him at jim@elllisinsight.com.

OCTOBER 2020 |

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November 2 – December 4, 2020 www.convenience.org/crackthecode Join the conversation at #CTCexperience

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G

iven all the disruption we have faced in 2020, it’s essential to keep our industry moving forward,” said NACS President and CEO Henry Armour in August, when he announced a new virtual experience in place of the in-person NACS Show this fall. We will invest in “new platforms … to support our industry’s pressing need to stay connected and to bring our community together until we are able to resume in-person events,” he continued.

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November 2 – December 4, 2020 www.convenience.org/crackthecode

That virtual experience became the Crack the Code Experience, which launched in September. The digital experience embraces the three most important elements of the in-person NACS Show—education, new products and retailer-supplier connections— and incorporates them into innovative digital anytime-access tools and content. “We know that we can’t simply transfer the live, in-person experience of the NACS Show to a virtual offer. Instead, we are replicating the elements that can deliver the most value in a digital environment,” said Armour.

The virtual experience—available November 2 through December 4—will include on-demand education with real-time interactions, a virtual product showcase and direct appointment settings—all designed to fit a busy schedule.

“We’ve been inspired by positive stories about how our industry has innovated to adapt to quickly changing times. We look forward to continuing this momentum with the Crack the Code Experience so we can do even more together, sharing ideas and finding new solutions to our current environment that requires constant new pivots,” said Armour.

The five-week digital experience and curated marketplace connects convenience retail buyers and sellers from around the globe with 24/7 access to forward-looking ideas and insights, innovative new-to-channel products and strategic connections.

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LONG-TERM CAPABILITY BUILDING Businesses can’t afford to put capability building on hold. Whether the effort is reskilling at the business-unit level or a company-wide aspirational transformation, you can’t push pause on critical workplace learning, Now, more than ever, you need to get smarter faster.

More than 45 education sessions will debut over the five weeks of the Crack the Code Experience, eventually available for on-demand viewing—and reviewing— to capture all the learnings. Interactive Q&As with speakers, live polls and small group sessions ensure that a community of learners not only benefits from speaker insights but also uncovers insights and input from their peers.

Some topics you can look forward to viewing include: • Automaker Predictions for the EV Market • Forging a Path for Women Leaders • Cannabis in the Age of COVID-19 • Strategies of Category Management Superstars • Winning Dollars from Dollar Stores • Motivating and Protecting Your Front Line • Reimagining Loyalty • Calculating the ROI of Foodservice And of course, many more topics to be unearthed as you explore the Crack the Code Experience.

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REGISTRATION INCLUDES: Entry to hundreds of showrooms from big-name brands and new exhibitors, enabled with in-app appointment setting, team collaboration and wish-list creation, product photos, chat functions, RFQs (request for quotes), virtual demos and sample requests.

An interactive Cool New Products Showcase.

If you’re looking for trends and new products visit the Cool New Products Showcase, organized in the same product categories you’re used to seeing at the NACS Show: Facility Operations; Foodservice; Fuel Equipment & Services; Merchandise, Candy & Snacks and Technology.

Attendees can search showrooms and categories, save products to a favorites or wish list, and get a daily glimpse of the top 10 most popular products in the showcase.

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November 2 – December 4, 2020 www.convenience.org/crackthecode

Participation in five spotlight sessions presenting big picture themes.

Spotlight sessions with high-level speakers and relevant themes will focus on critical industry issues: • Disruption/Navigating Change, featuring Corinne Hancock, How to Thrive in Chaos • World-Class Ideas • Essential Strategies for Essential Businesses, featuring Kevin Brown, The Hero Effect • Cultivating a Community Hub • Strategic Planning for 2021 and Beyond

Fun, Engaging Activities And of course, the fun and engagement that is a signature of NACS events will still be found during the Crack the Code Experience: treasure hunts, trivia contests, hangouts and meetups, all organized to allow for interaction and networking with your peers from around the globe, either in small group connections or larger community digital gatherings.

For more information on the spotlight sessions, see the sidebar on page 62.

Access to 45+ on-demand education sessions. These sessions share insights on key topics, such as the future of mobility, technology trends, new product categories like CBD and how customer service expectations have evolved in the age of COVID-19.

Many sessions have been translated into multiple languages for access by our global retailers.

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61 8/14/2020 9:57:49 AM

November 2 – December 4, 2020 www.convenience.org/crackthecode

SPOTLIGHT SESSIONS During the Crack the Code Experience, spotlight sessions shine a light on critical themes faced by the convenience industry. Each week, your host introduces speakers and concepts that will aid you in navigating the new realities faced by convenience.

NOVEMBER 2 -6, 2020 DISRUPTION/ NAVIGATING CHAOS There is no question that the pandemic has affected every aspect of life, including retail.

Short-term, retailers pivoted to reinvent themselves and the very nature of convenience, while also looking at long-term opportunities and challenges.

Host: Julie Jackowski, NACS 2019-20 chairman and senior vice president and corporate counsel, Casey’s

NOVEMBER 9-13, 2020 WORLD-CLASS IDEAS The future of convenience is already here, with global operators innovating new offers to address evolving consumer demand. These global ideas and trends from around the world could be coming to stores around the corner.

Host: Mark Wohltmann, director of NACS Europe NOVEMBER 16-20, 2020 ESSENTIAL STRATEGIES FOR ESSENTIAL BUSINESSES By any definition, convenience stores are essential businesses.

Retailers must examine a variety of issues to continue to be essential businesses in the customer’s mind, both in employee relations and community relations.

Host: Lori Stillman, NACS vice president of Research

NOVEMBER 23-27, 2020 CULTIVATING A COMMUNITY HUB The convenience retailing industry contributes more than $1 billion a year to community groups. This community spirit is even more important in today’s climate, and it’s equally important to tell that story.

Host: Kevin Smartt, NACS 2020-21 chairman and CEO and president, Kwik Chek Food Stores NOVEMBER 30 – DECEMBER 4, 2020 STRATEGIC PLANNING FOR 2021 AND BEYOND Scenario planning and strategic plans are critical to preparing well for the next disruption—whether it comes from a global pandemic or a new form of competition that seeks to redefine convenience.

Host: Henry O. Armour, NACS president and CEO

Convenience is changing. Now—more than ever—great ideas, winning products and connections matter. And since we can’t get together in person this year, here’s the next best thing: The NACS 2020 Crack the Code Experience. What you love about our in-person NACS Show can still be found here: Meet suppliers. Discover cool new products. Discover fresh, profit-building ideas from convenience experts in spotlight sessions tailored to your needs to unlock your future.

The world is changing. What people are buying is changing, but the convenience industry has never been more essential. Thankfully, everything you’re looking for to build your bottom line is at the Crack the Code Experience. Keep up. Stay relevant.

And join us online in November.

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ATTENTION,

SHOPPERS! How to communicate with today’s consumers via signs, design and technology.

BY PAT PAPE

B

ack in 2007, market research firm Yankelovich estimated that the average person saw as many as 5,000 advertising messages every day.

And although no one has bothered to formally update that fact, advertising professionals suspect the number has doubled in the past 13 years due to the internet and new technologies.

With all those messages bombarding them, individuals naturally create their own screening process, ignoring the

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inconsequential and focusing on what’s of interest. But there are ways to cut through the clutter and communicate with convenience store customers, and you don’t need a Super Bowl ad or a highway billboard to do it.

CUSTOM CONTENT Today, as digital tools supersede most other forms of communication, the future of customer communications is personalization, according to Gavin

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“ Customizable, hyperrelevant and curated content is not new.

Customers are used to personalization from their years online.”

Bradley, senior creative director of digital technology for Harbor Retail, a Michigan-based retail design firm.

Forget the single TV commercial that is broadcast to everyone. Customized digital technology allows messages to be targeted to individual consumers.

“The idea of customizable, hyper-relevant and curated content is not new. Customers are used to personalization from their years online,” Bradley said. “There’s a plethora of data that retailers and brand partners can leverage. They know what’s selling, what people buy and when. The goal is to turn this information into actionable insights, to make someone at the pump want to spend one extra dollar. It’s a personalized way to gain conversion, which leads to repeat purchases and loyalty.”

Loyalty programs provide metrics and data from customer profiles. “Yet, most convenience retailers have not yet applied this data to their content strategies to propel customer actions and generate revenue,” he said.

Fuel customers are a captive audience, standing at the fuel pump for more than four minutes on average. “That’s a great opportunity to speak to them in an intimate, personal manner,” Bradley said.

“Strong digital content strategies are based on programmatic marketing, a marketing strategy that allows you to advertise to specific users with hyper-targeted, super-effective ads. The best practices of programmatic strategies include revenue generation and/or loyalty outcomes for

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each party—the retailer, the fuel partner, retailer brands and the customer.”

Some in the c-store industry have been slow to adopt new technologies because of operational constraints and budgets, but that’s changing. Personalized, hyperrelevant digital content can be delivered anywhere inside or outside the store.

The key is to partner on the programmatic content with brands that are committed to enhancing the retail experience.

“Imagine your pumps during gas refill rushes,” said Bradley. “You want all of those customers to come inside for an added purchase. Your 25- to 35-year-old male driving a Honda will have different desires and budget compared to your 45to 55-year-old female driving a Mercedes.

Without violating privacy, connected systems between cameras and screens can determine the most relevant content for a specific individual based on biographics and daypart. One customer might see an ad [at the pump] for a candy and soda combo, while another customer might be served a promotion for a coffee and bagel.”

Bradley describes digital content technology as “high return, effective and flexible. It’s the way of the future and very powerful. It’s not that expensive to test. You can test one store, evaluate the ROI and then do a scaled rollout.”

WELCOME TO OUR STORE Outdoor signage can help draw customers into the forecourt. Today’s products are durable, flexible and let retailers communicate up-to-the-second information.

Digital messaging can be installed inside pumps, on columns next to the pump or as pump toppers.

In the past, digital signage was expensive, hard to maintain and had a three-year lifespan. Today’s signs are less costly, much larger and brighter and last about five years, according to IV Dickson, vice president of

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digital signage at SageNet, a technology solutions company in Tulsa, Oklahoma.

“We offer a 55-inch, dual-sided indoor/ outdoor screen that can feature a separate message on each side,” he said. “The outside-facing screen offers high-visibility in bright sunlight, even through glass. We also offer outdoor units that can stay out in the elements and even be power washed.

System-on-a-chip technology and new cabling standards have greatly reduced costs and simplified implementation.”

SageNet also offers a transparent LED film embedded with light diodes that can cover a glass window. “It’s less than 1/16-inch thick, and it’s a wow-factor solution,” Dickson said. “When connected to a media player it becomes a motion graphics display showing digital content on your store window, but people inside the store can still see out.”

Digital menu boards allow foodservice operators to display multimedia content, changing the message based on daypart,

“By giving them the option of ordering and paying through digital interfaces— either prior to getting to the pump or at the pump—the order can be prepared by the time the customer has pumped fuel,” said Dickson. “This communication path lets consumers order what they need in a trusted environment—their phone.

And the order can be delivered to the customer at the pump with minimal human interaction.”

Once a far-fetched concept, this technology is convenient and safe in the time of COVID when grocery stores and restaurants allow hungry consumers to order and pay from their smartphones and then pick up curbside.

Cost is a consideration with any new equipment, but technology always gets cheaper. “Every year it comes down,” Dickson said. “If you can’t do it now, check again in six months. The upfront cost may be miniscule compared to you fulfilling your objective.”

“ Drive-thru digital menu boards can upsell with a very personal message if you have the customer’s loyalty information and you know what they like.” inventory and promotions. “Drive-thru digital menu boards can upsell with a very personal message if you have the customer’s loyalty information and you know what they like,” said Dickson. “When there are no customers in the drive-thru, the digital menu turns into a full-screen billboard that is visible from the street.”

Another way to earn that extra dollar per transaction is to install technology that lets customers order food and merchandise at the pump.

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Digital communication also can simplify daily chores. Rutter’s, the York, Pennsylvania-based chain, uses PriceAdvantage software and Skyline Price Signs to optimize fuel prices and streamline the price-change process.

The patented software solution lets retailers optimize and manage fuel prices, then automatically execute and verify price changes to the POS, pumps and price signs from anywhere using a laptop or mobile app.

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Digital menu boards allow foodservice operators to change the message based on daypart.

“I can quickly react to market movement at my desk and on my mobile phone,” said Chris Hartman, director of fuel and forecourt, Rutter’s. Hartman established pricing rules for Rutter’s stores within PriceAdvantage, including competitor information and desired margins, and he reviews information several times each day to ensure that fuel is appropriately priced.

“PriceAdvantage ensures that the price change process prevents us from having a posted sign price that is lower than the pump price,” he said.

CURB APPEAL Communicating with customers goes beyond signage and advertising. According to Mike Lawshe, president of Fort Worth, Texas-based Paragon Solutions design firm, a store communicates to customers when it has a bright, well-lit forecourt and clean restrooms.

“What is the message that you’re communicating with your architecture?” Lawshe asked. “Say you pull up to a store and off to the side you see a grassy area with a pergola and outdoor seating. What’s the message? They have an expanded food program that they’re proud of, or they’re doing something that you should check out.”

Little things say a lot, and “if you care about your people in this pandemic, you should have sanitizer and towels at every pump,” he said. “If you don’t—and your trash is overflowing and there’s gum all over the place—that’s a message, too.”

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CHS, the global foods and agricultural cooperative based in Minnesota, owns 50 c-stores and supplies fuel to 1,450 more under the Cenex brand. To keep the stations looking sharp and inviting, the company recently launched a program that will refresh the forecourts of each location over the next four years.

“This includes a new canopy fascia, new logo signage on canopies and new LED lightening elements around the canopy,” said Akhtar Hussain, director of refined fuels marketing, CHS. “Plus, everything will be enhanced with new pump graphics, refaced price signs and paint.”

Called the LIFT initiative, the updates will cost Cenex brand dealers nothing, and dealers have the option of contracting an added interior remodel “that we’re subsidizing through zero interest loans for five years,” he said. When the individual remodels are complete, CHS will launch a social media campaign in the appropriate ZIP codes to inform consumers of the changes.

“When you look at the aging population of c-stores out there, a lot of them would benefit from remodeling, especially with the emergence of a lot of new regional competitors,” Hussain said. “Consumer expectations have evolved. For our brand to remain relevant with consumers, we must bridge the gap between the expectations they have of our regional competitors and us. We think adding that lighting and modernizing our look will be the first step in making that consumer stop by. And following it up with improvements inside the store will really pay off.”

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

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WHEN THE CHIPS ARE

Surveys show significant movement in both sentiment and action among retailers for deploying EMV-compliant pumps.

BY JERRY SOVERINSKY

ate last year, Visa published a security alert, “Cybercrime Groups Targeting Fuel Dispenser Merchants.”

The headline raised few eyebrows among fuel retailers, who had grown accustomed to skimming attacks at the forecourt.

While a patchwork of low-tech measures helped retailers identify basic skimming efforts—an intact piece of red tape across the dispenser door, for instance, confirmed the integrity of the dispenser cabinet— Visa’s December 2019 alert indicated a more sophisticated and disturbing effort.

Initiated far from the dispenser and sent via email to one of the retailer’s employees, the successful phishing attack allowed the attackers access to the company’s POS environment, which included its fuel dispensers. From there, the criminals looked for likely credit card data stored from mag stripe transactions and, well, you know the rest of the story: Skimming via phishing.

The incident was just one of hundreds of skimming attacks across the country that collectively contributed to more than $300 million in counterfeit fraud at outdoor fuel

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dispensers last year, according to major card reporting data, a loss that’s projected to reach $451 million this year.

It’s little wonder that card brands are requiring retailers to add EMV (chip card processing) capabilities at automated fuel dispensers (AFDs), or else face liability for the rising chargebacks.

Retailers have known about this deadline for several years. October 1, 2017, marked the original deadline for AFD terminals to be included in the global EMV liability shift applying to American Express, Discover, MasterCard and Visa transactions.

In early 2017, NACS Magazine wrote about the challenges convenience retailers faced in complying with the original deadline. The card brands, acknowledging deployment backlogs, offered an extension to October 2020.

Conexxus published its “EMV Preparedness Survey” in August 2019, detailing the awareness and readiness for retailers to upgrade their payment capabilities at their AFDs. (Look for those results in the December 2019 issue.)

Six months later, it distributed a second

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survey to gauge preparedness, and just as retailers were responding, COVID-19 struck, interrupting many of their efforts to become EMV-compliant. “[COVID-19] definitely impacted the supply chain and the technology that’s necessary to do this and roll it out,” said Dan Harrell, chief innovation officer with Invenco, during a NACS Convenience Matters podcast earlier this year. “It’s definitely impacting the service personnel who are available to do these installations, too.” In late March, NACS sent letters to Visa, Mastercard, American Express and Discover on behalf of its retail members to request a delay in the EMV fraud liability shift, citing complications from the coronavirus. Other groups also requested a delay, and in May, the card brands moved the liability shift date to April 16-17, 2021.

As a result of COVID-19 and the delayed deadline for the AFD liability shift, Conexxus fielded a third survey from August 19 to September 4. Results of both the spring and fall 2020 surveys indicate that there has been significant movement in both sentiment and action among retailers for deploying EMVcompliant pumps compared with last year.

AND THE SURVEY SAYS …

Full contact The numbers reveal a tangible change of retailer sentiment and readiness for fuel island contact EMV (2019 vs. 2020).

CONEXXUS EMV PREPAREDNESS SURVEY Store Status

2019

SPRING 2020

FALL 2020

Full deployment

14%

15%

15%

Zero sites deployed

70%

52%

31%

Zero sites deployed and undecided

17%

11%

18%

Will not implement

2%

0%

0%

Complete rollout for less than 25% of their sites

9%

20%

24%

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Contactless COVID-19 has impacted retailers’ intentions to deploy contactless EMV at their fuel islands. While 51% of respondents in the spring survey said they’d either implemented contactless EMV or intended to do so pre-COVID-19, the number rose to 74% after the pandemic began.

“ [COVID-19] definitely impacted the supply chain and the technology that’s necessary to do this and roll it out.”

In the fall survey, nearly 81% of respondents said they’d deployed or are planning to deploy contactless EMV outside. The percentage of undecided responses held at 13% post-COVID-19, compared with 40% in the pre-pandemic responses.

KEY CALLOUTS The survey results reveal compelling information about retailers’ appreciation of EMV-related risks. “In the 2019 survey, a lot of merchants didn’t understand the risk of not implementing EMV, they wanted to wait to see what happens,” said Linda Toth, managing director of Conexxus. “Now they realize that there’s a big risk in not upgrading. All it takes is one incident to put them out of business.”

One incident?

“One incident,” Toth said. “For a presentation at the 2019 NACS Show, we gathered fraud data from three of the four card brands and extrapolated per-store average liability for stores that are non-EMV compliant.” According to major card brand reporting as of September 2019, counterfeit fraud is projected to reach $451 million this year. “That’s huge,” Toth said. “Those are the numbers that the banks have been absorbing on our behalf, and that’s going to all switch to retailers who don’t upgrade.”

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“ The savings on doing a retrofit versus a pump replace can be anywhere from 20% to 60%.”

Using a 23% year-over-year increase in fraud numbers (a historical average) and after the liability shift, Toth estimates a non-compliant site faces an average of $12,000 to $13,000 in liability costs in 2021; a figure that jumps to more than $31,000 in 2022. All it takes is one incident.

To appreciate how much that figure could rise, Toth urges retailers to obtain their fraud data. “If you’re branded, reach out to your brand and find out the numbers,” Toth said. “If you’re a wholesaler or independent, reach out to your processor.

And if you’re large enough to have a card rep, they can get you the data.”

SHOW ME THE MONEY Ultimately, the 2020 surveys reveal that financial and resource challenges pose an ongoing threat to compliance, especially for small retailers. “It comes down to cost,” Toth said. “The industry is struggling to pay for EMV, and how the retailers can pay for this is a big challenge.”

That applies to both replacement of the physical pump itself, which Conexxus estimates costs about $18,000 each,

EMV RESOURCES

Looking for EMV assistance? See the full results of both the spring and fall 2020 Conexxus EMV Preparedness reports at www.conexxus.org/resources/emv-resources.

For more EMV resources, visit the EMV topics page at www.convenience.org. Additionally, Conexxus will host a December webinar that highlights third-party EMV solutions, including retrofit kits. Stay tuned for details.

To hear more about EMV compatibility, listen to the Convenience Matters podcast episode No. 242, “Protect Card Payments at the Gas Pump,” and episode No. 230, “EMV Upgrades Made Easier.” Each week a new Convenience Matters episode is released at www.conveniencematters.com.

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or doing a retrofit and replacing the payment devices at the pumps with new, EMV-capable readers, which can be more affordable. “The savings on doing a retrofit versus a pump replace can be anywhere from 20% to 60%,” said Bill Pittman, senior vice president of sales and strategy at SoundPayments, in a NACS Convenience Matters podcast earlier this year.

The pricing is per-pump, so for a small retailer with a handful of stores and several pumps per site, the total cost can reach in the hundreds of thousands of dollars—a lot of money even during the most prosperous economic times. But in the middle of a global pandemic? Well, the money is much harder to come by, and some may decide to accept the risk, an unfortunate gamble that Toth insists will not pay off.

“Chargebacks are not a matter of if, but when,” she said, adding that Conexxus has heard from “many merchants” who had stores without a fraud incident and who did not appreciate the full risk of non-compliance until “one store got hit, and it was an astronomical cost” that would have shuttered the business if it occurred after a liability shift.

MONEY AND OTHER ISSUES Toth recommends that retailers consider opportunities to finance the upgrades, gaining both compliance as well as functionality that may help build your brand. “If you choose to replace your dispensers, the newer ones will have features that could help you attract new customers,” she said. Additionally, finance companies understand the mandate for retailers to become EMV-compliant, and there’s a willingness to work with retailers.

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“ Now retailers realize that there’s a big risk in not upgrading. All it takes is one incident to put them out of business.”

EMV 101: WHO PAYS FOR WHAT? There are two chargeback scenarios: one where the card used was lost or stolen (about 10% of chargebacks) and one where the card is counterfeit (about 90% of chargebacks).

CHARGEBACKS TODAY In the former, the retailer pays for that fraud today; whereas in the latter, the bank is responsible.

CHARGEBACKS POST-APRIL 17, 2021 After the EMV liability shift has occurred, if the retailer is in non-compliance, in both scenarios, the retailer pays for the fraud. Conversely, if the retailer has deployed EMV, the retailer will not be responsible for any counterfeit fraud. With some card brands, retailers also will be covered for lost and stolen card fraud.

If new pumps are not an option, consider a less expensive retrofit, or even leasing.

“At least one supplier offers a solution where you can lease the equipment month to month,” she said. “It makes it a lot more affordable to get EMV.” It’s not just money that is preventing retailers from deploying EMV at their pumps. According to the Conexxus fall survey, even for those who are committed to the change, the top obstacles to achieving 100% deployment include:

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waiting for certification (27%), lack of available software (30%), effort/complexity (27%) and COVID-19, financial challenges, technician availability, among other reasons (34%). (Respondents could choose multiple reasons.)

COVID-19 AS CATALYST Both the spring and fall 2020 surveys indicate that the COVID-19 pandemic proved to be a catalyst for owners/operators deciding to deploy contactless payments on the forecourt. For retailers who are still undecided about implementing it, 60% cited additional upgrades as a reason holding them back, 40% cited cost and 30% cited other issues, including low demand and concerns about investment returns.

No matter the sentiment, though, both NACS and Conexxus hope that retailers appreciate the significance of upgrading AFDs and take action. Conexxus will present an education session on EMV during this year’s NACS Crack the Code Experience. “Waiting to upgrade could cost you [tens of thousands of dollars] per site over the next [several] years,” Toth said. “I can’t stress enough … can you afford to wait, and can you afford the financial impact?”

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

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Food safety must go beyond formal regulations to live within the culture of a company.

By Chris Blasinsky and Lone Jespersen, Ph.D.

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C

onvenience retailers continue to up the ante on foodservice to levels that are changing the entire perspective of the industry—both operationally and among the 165 million consumers who frequent a convenience store on a daily basis.

As consumers increasingly look to their local convenience store for food and groceries, store managers and leaders of convenience store companies must invest in their cultures and consider food safety risks and how best to manage them. Even the most sophisticated and proficient organization can be one food safety illness, injury or death away from a financial crisis that could take years to overcome.

INTERNAL MOTIVATION The food industry has a long history of making improvements to food safety, through training and the adoption of food safety systems. While these changes have made a difference, there is now an overreliance on the effectiveness of such systems, which in some cases have fostered a “blame culture” when something goes wrong.

Some companies have found that the missing piece to continue improvements in food safety performance and changing behaviors throughout the organization begins with culture. They are internally motivated and are often led by visionary and courageous food safety leaders.

Other companies find themselves externally motivated, waiting for or relying on outside-theorganization factors to spur them on. For those retailers, here are a few motivations: • Global Food Safety Initiative’s (GFSI) new 2020 benchmarking requirements across the food supply chain • Unannounced audits—a new GFSI 2020 requirement • Global adoption of Codex General Practice of Food Hygiene (GPFH) principles • U.S. FDA and/or European regulations compliance • Requirements from investors and insurance providers While many of the abovementioned changing regulatory and private standards are geared toward manufacturing and retailers, the bar is being raised globally for what’s expected of any company that earns a profit from making, serving and selling food to consumers.

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Now, let’s dive into some food for thought around food safety culture.

EVERYONE HAS ONE “A Culture of Food Safety” paper from GFSI notes that culture of any kind “lives not in individuals, but in groups.” It defines food safety cultures as the “shared values, beliefs and norms that affect mindset and behavior toward food safety in, across and throughout an organization.”

All companies have a culture of food safety, but they often find a lack of consistency and agreement among employees as to what that culture looks like.

It is not just about implementing processes and procedures but about understanding where a company is today and where it needs to go shortterm and long-term.

Food safety is not a competitive advantage—it’s how foodservice will continue to elevate the industry.

The GFSI paper outlines five “cultural dimensions” and components of food safety culture that affect everyone throughout a company: 1. V ision and Mission: Communicates a business’s reason for existence and how it translates this into expectations and specific messaging for its stakeholders.

2. People: How behaviors and activities, from processes on the farm to practices in the kitchen and consumer habits, contribute to food safety and potentially decrease or increase the risk of foodborne illness.

3. Consistency: Proper alignment of food safety priorities with requirements on people, technology, resources and processes to ensure the consistent and effective application of a food safety program that reinforces a culture of food safety.

4. Adaptability: Ability to adjust to changing influences and conditions and respond within its current state or move to a new one.

5. Hazard and Risk Awareness: Recognizing actual and potential hazards and risks at all levels and functions, which represents a key element to building and sustaining a food safety culture.

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GFSI also makes the distinction that a food safety culture is not a “one size fits all” proposition.

The journey takes shape when food safety has been defined throughout the organization for each member and department in ways that are “relevant and clear to them.” Furthermore, for companies to be successful and sustainable, food safety must go beyond formal regulations to live within the culture of a company—and that journey must be measurable.

FINANCIAL BENEFITS While achieving a 100% risk-free environment is impossible, there are identifiable and manageable risks along the safe food handling spectrum where organizations can apply meaningful benchmarks and metrics.

First, organizations need to gain a better understanding of their current food safety culture.

Leading retailers make food safety culture a part of the organization’s DNA and have a strong commitment from the owners and top leadership. La Crosse, Wisconsin-based Kwik Trip has a top-down culture that emphasizes food protection and food

GLOBAL-MINDED FOOD SAFETY

Over the past 30 years, numerous food safety crises have eroded consumer trust in the foods they buy, the brands they love and even the food industry in general. In 2000, the Global Food Safety Initiative (GFSI) was created to help address this global issue.

GFSI published the “A Culture of Food Safety” position paper outlining what a culture of food safety is and how it can be segmented into five distinct but integrated dimensions relevant for any company’s culture, with an emphasis on: 1. The essential role of leaders and managers throughout an organization, from CEO to farm, field and shop floor supervisors, from the local independent food retail stores to large franchise restaurant organizations.

2. Why regular communication, education, metrics, teamwork and personal accountability are vital to advancing a food safety culture.

3. How learned skills including adaptability and hazard awareness move important safe food practices beyond a theoretical conversation to live in “real time.”

The position paper is available to download at www.mygfsi.com.

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Companies lower on the food safety maturity scale run the risk of spending more money on resources due to poor quality, reducing their economic impact. safety. For more than a decade the company has hosted a Food Protection/Food Safety In-Service event, which brings together its partners—from growers to government to academia—to learn from experts in the food protection field and see these food protection practices in place at Kwik Trip’s food production and distribution facilities.

At Kwik Trip, the CEO, owners and senior management are the driving force of the company’s food safety culture, noting that there are three things today that could take down the company: a decay of the culture, a major foodborne illness event and a pandemic that severely impacts the company’s labor.

“To be ‘best in class’ in the foodservice and retail food sales arena, you need to work hard on details and education within the entire food system: from procurement, processing/production, distribution to food safe retail practices,” said Jay L. E. Ellingson, Ph.D., chief science officer at Kwik Trip.

“You need to develop a food protection system that meets your company’s business footprint and then educate everyone at all levels of the company so that they understand the food protection system and their roles and responsibilities within the system. Once that is established, then a true food safety culture can start to evolve at all levels within the company. If this is done right, the right food safety culture can evolve and lead to both public health and brand protection. This allows members of the company to be proud of their company culture and daily accomplishments as the company continues to grow,” said Dr. Ellingson.

MEASURING AND BENCHMARKING SUCCESS The International Association for Food Protection hosted a series of webinars this past summer focused on various aspects of food safety culture.

Co-author of this article, Lone Jespersen, founder and principle of Cultivate, moderated the series.

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UPCOMING RESOURCES

Convenience retailers will soon have access to industry-specific metrics related to food safety investments with new benchmarks in the annual NACS State of the Industry Report and the NACS State of the Industry Compensation Report.

Additionally, there is a growing need to address food safety not just from an operational and technical level but also from a behavioral and transformational level—and that begins with strong leadership. NACS is embarking on a project to help convenience retailers foster a food safety culture that protects and sustains the future of their business.

The November issue of NACS Magazine will feature a deeper dive into this new, long-term project and more insights on food safety culture and establishing measurable and achievable goals.

Jespersen reviewed the five dimensions of food safety culture as a baseline to help companies measure which stage on the maturity model a company is demonstrating: • Stage 1: Doubt—Most food safety actions are driven by external pressures.

• Stage 2: React to (or putting out fires)—Food safety actions likely reside with just one department with limited resources (compared to other high-risk areas like data security).

• Stage 3: Know of—Other teams in the organization are becoming more engaged and acting on food safety, and habits are forming.

• Stage 4: Predict—Food safety actions are based on results from predictive analysis.

• Stage 5: Internalize—The entire organization takes ownership of food safety actions that are mostly based on managing risks, and habits are ingrained.

Her work also explores the connection between economic performance and food safety culture. She and co-authors of “The Impact of Maturing Food Safety Culture and a Pathway to Economic Gain,” explore the connection between organizational culture and financial performance. After analyzing five global food manufacturing firms and calculating each company’s cost of poor quality using a percentage of sales per maturity stage, Jespersen and authors learned that companies lower on the maturity scale run the risk of spending more money on resources due to poor quality, reducing their overall economic impact.

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A NEW ERA Following a five-month delay due to the COVID-19 pandemic, the FDA announced its New Era of Smarter Food Safety Blueprint on July 13, which seeks to transform the food supply chain by creating a digital, traceable and safer food system.

Although the agency’s blueprint does not outline specific guidelines, it does outline the path it would like to see industries take—including the convenience retailing industry. One of those core elements is strengthening food safety culture.

“The pandemic has given us a new perspective on what we mean by food safety culture,” said FDA Commissioner Stephen M. Hahn M.D. in announcing the plan, adding that making dramatic reductions in foodborne disease will require changes in how companies think about food safety and how they demonstrate their commitment to safe food-handling practices.

In addition to the FDA’s blueprint, the Safe Quality Food (SQF) Code, administered by the SQF Institute and adopted by some convenience retail chains, sought comments for SQF Code Edition 9.0 in July 2020, which includes a change that “senior site management shall prepare and implement a policy statement that outlines as a minimum the commitment of all site management” to establish and maintain “a food safety culture within the site.”

It’s simple. Food safety is not a competitive advantage; it’s how foodservice—a category that represents 25.4% of inside sales—will continue to elevate the industry by creating engaging and inviting customer experiences.

Chris Blasinsky is the content communications strategist at NACS and can be reached cblasinsky@convenience.org.

one Jespersen, Ph.D., is the L founder and principal of Cultivate (cultivatefoodsafety. com). She also serves as chair of Food Safety Culture for the GFSI technical working group dedicated to characterizing and quantifying food safety culture across the global food industry.

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Smart and efficient cash management saves time and money.

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RETAILERS HAVE MANY OPERATIONAL CHALLENGES THESE DAYS. HOW CAN RETAILERS MAKE THE CASH MANAGEMENT PROCESS ONE LESS THING TO WORRY ABOUT? Nearly every c-store location has one or more cash management or counterfeit detection systems in their store. The challenge lies in that most tools are working independently from one another and work in an offline environment, which means there is no information transmitted to or from a regional or headquarters office. Deposits are still physically taken to the bank by the store manager or picked up by armor car service without provisional credit, meaning the business is delayed in receiving credit for their deposit while also lacking the visibility into cash operations that a connected smart safe provides.

WHY IS A CONNECTED SYSTEM MORE EFFECTIVE? One automated system and supplier for all cash management needs, such as SafePoint, can streamline processes. This includes automating cash counting, verification, counterfeit detection, provisional credit through a financial institution, armor car pick up, maintenance, and near real-time

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reporting of what cash is deposited or what change is being dispensed at any store, at an aggregate level, at any time, and by any person.

This centralization can save each individual store both time and money.

Managers don't need to spend time counting cash deposits, refilling tills, driving to the bank, managing multiple vendor agreements, or reconciling daily cash deposits and change orders. This time savings for employees can range from 45 minutes to 2.5 hours, and cash shrink can be reduced by 75%. With the Loomis guarantee of funds, we’ll cover the cash in the event of a loss due to third-party theft or loss.

RETAIL OPERATIONS ARE STILL LARGELY CASH-RUN ENTERPRISES. HOW DOES HAVING A CENTRALIZED SYSTEM HELP? C-stores typically transact 35% or more of their daily sales in cash. An interconnected and online system such as SafePoint demystifies what is happening with cash deposits and change orders and provides actionable data such as how much cash has been deposited into any device at any given time during the day, who is depositing it, when, and how much change is available to dispense.

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SafePoint takes the guesswork out of identifying where your money is. It provides next day access to cash, which enables you to put your money to use faster, and it allows for much faster deposit reconciliation.

Loomis Direct provides remote user management, the ability to run customized reports, capability to have back office data integration and performance management metrics such as device up time, pick up information and characteristics on how the system is being used.

A CENTRALIZED SYSTEM IS GOOD FOR EMPLOYEES, TOO, IS THAT RIGHT? A single system with multifunctions reduces the number of processes that need to be followed and means that fewer employees need to be trained with fewer training manuals. Service support desks also become less critical. Employees can focus on their customers and not worry about not understanding how to use a specific tool. SafePoint’s video tutorials integrated on the safe walk employees through more than 50 different functions.

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AND HAVING A SECURE, ENDTO-END SYSTEM IS A WELCOME ADDITION TO THE PROCESS. Definitely. An end-to-end system closes the loop on the cash supply chain. It automates, controls and reports cash activity from the time a bill is inserted into the safe to the time it is picked up by armor car and deposited into the bank. This is important to all retailers because it takes the guesswork out of identifying where their money is. It provides next day access to cash, which enables them to put their money to use faster, and it allows for much faster deposit reconciliation. SafePoint owns, controls and provides end-to-end visibility of the bill throughout the entire process. One solution, one supplier.

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C-stores are working hard to get this popular and profitable a.m. daypart back on its feet.

BY PAT PAPE

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| OCTOBER 2020

CONVENIENCE.ORG

he breakfast daypart has taken a beating since the COVID-19 pandemic forced consumers to shelter in place and mandated that many time-crunched morning commuters work from home.

Lori Buss Stillman, vice president of research, NACS, has analyzed last year’s convenience store transactions compared to this year’s COVID-19 quarantine period. To demonstrate how COVID-19 impacted business, she notes that hot dispensed beverage transactions, which typically peak between 6 and 7 a.m. on weekdays, experienced an average 35% drop between March 23 and April 19.

Later as the nation began a slow reopening, hot beverage transactions rose slightly.

“There has been a recovery of about 7% of transactions, meaning that we are now at about 69–72% of the normal amount of transactions, based on last year’s numbers,” said Stillman, pointing to figures from the week ended June 16.

JAZZING UP JAVA Coffee drives c-store traffic in the morning, and coffee customers often grab a pastry or breakfast sandwich to go. Because many morning coffee drinkers continue to work at home, stores are launching attractive promotions to entice them inside for a cup of Joe. High’s of Baltimore has created new offers to attract customers. “We’ll be running a competitive coffee and breakfast sandwich combo to regain sales and drive traffic into our locations,” said Dallas Wells, vice president, foodservice, High’s.

“We’ve also begun an overhaul of our reusable mug and beverage refill program. We plan to offer an aggressive refill mug price for one year, along with a competitor mug trade-in program.”

From August through September, Atlanta-based RaceTrac stores sold any size cup of coffee—hot or iced—for $1, and in October and November, stores will move to “$1 Coffee Mondays.”

“This is a sizeable discount on iced coffee specifically,” said Tiffany Plemmons, director of food and dispensed beverages, RaceTrac. “We’ll also feature pumpkin spice creamer for the fall, as well as a Hershey S’mores cappuccino. Coffee is a staple … and we look forward to the aggressive promotion to drive breakfast and correlating category sales.”

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At 7-Eleven, the chain’s 33 million loyalty customers can purchase any size coffee for $1 no matter what goes in the cup, said Jack Stout, senior vice president, merchandising and demand chain, 7-Eleven. Plus, select stores are getting beefed-up coffee bars.

“We are rolling out state-of-the art beverage equipment allowing us to dramatically expand our hot and cold beverage menu with the addition of touchscreen machines that brew custom hot coffee drinks like lattes, cappuccinos and espresso shots in just seconds,” said Stout. “Customers can make their cup their way at the expansive condiment station with various toppings, sprinkles and sweeteners, and our competitive prices are a far cry from typical coffeehouse prices.”

The chain’s limited-edition pumpkin spice latte and fresh-brewed pumpkin-flavored coffee will return for the fall. “With 7 Eleven’s special dollar pricing, pumpkin spice lovers can drink three— at morning, noon and night—for the same price they’d pay for just one latte at a coffeehouse or restaurant,” Stout said.

MENU MANAGEMENT It’s always important to ensure that c-store food and beverage offerings meet customers’ changing tastes and preferences, but after an experience like the recent quarantine, when customers’ morning habits were abruptly disrupted, it may be necessary to tempt them back to the store with tasty, new offerings.

With many morning coffee drinkers still officing at home, stores are launching attractive promotions to entice them inside.

Maverik stores, with headquarters in Salt Lake City, Utah, recently rolled out its first, limited-time foodservice product since the pandemic began.

“We’re offering customizable quesadillas for

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Despite pressures of the pandemic, consumers still want convenient grab-and-go food items.

SWEPT UP IN SWEEPSTAKES A well-promoted sweepstakes is a classic way to drive customer traffic, and several chains are using them to stir up excitement.

From June 1 through September 8, Texas-based Kwik Chek stores offered customers a virtual scratch-and-win game on the Kwik Chek mobile app. Participants could win one of several daily prizes, ranging from free gas for a year to Yeti coolers to snacks and drinks. Powered by Koupon Media, the 100 Days of Summer game didn’t require a purchase to participate. Customers could redeem prizes by showing the prize barcode within the app to a store cashier.

In a similar vein, High’s of Baltimore conducted a Summer of Moo Sweepstakes to boost store visits. “A customer is entered to win various prizes with each purchase tied to our loyalty program,” said Sherryn Diamond, director of foodservice, High’s. Prizes include a year’s supply of fuel, soda or chips, plus other merchandise.

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breakfast and lunch in our full-service, made-toorder stores,” said Kyle Lore, corporate executive chef, Maverik. “For breakfast, customers can choose eggs, sausage, chorizo, bacon and cheese on a tortilla. For lunch, they can have chicken, steak, carnitas, guacamole, roasted corn salsa and pico de gallo.”

RaceTrac also has a tangy new breakfast option—a jalapeño biscuit with chorizo and pepper jack cheese, which Plemmons describes as “the perfect amount of spicy with a great authentic chorizo flavor.”

The chain also has a special offer for consumers who are forced to be more cost conscious during this time. RaceTrac recently introduced new breakfast tacos “at $1.29 each or two for $2,” said Plemmons.

“We’d developed these prior to the pandemic, as we saw a gap in our current assortment to have a value-priced item. With customers’ increased focus on their dollars, we are well positioned to offer them a delicious new product at a great value.”

If it’s not possible to introduce a new food item, there are simple ways to spiff up an existing menu, according to Mark Brandau, managing editor at Datassential, the consumer insight organization.

“This is a good time to experiment with a trendy new condiment, cheese or bread carrier,” he said.

BAKERY CASE Innovation in the bakery category has historically paid off for c-store operators, and Brandau believes take-and-bake offerings, such as cinnamon rolls or breakfast bars, could do well in the current climate.

“Customers could get them from the convenience store at a good price and finish them at home while having coffee that also came from the c-store,” Brandau said. “There’s definitely an audience for something like that, and you’d still be convenient for your customer base.”

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Take-and-bake offerings featuring cinnamon rolls or breakfast bars could do well in the current climate.

In fact, 7-Eleven recently introduced a readyto-bake option for hot breakfast sandwiches and entrees that lets customers choose items from a cold case and finish them at home. The offering also includes a selection of pizzas, wings and taquitos.

With pastry fans in mind, the Texas-based retailer also is tweaking an existing product, its popular apple fritter, by adjusting the proprietary recipe to ensure apple pieces in every bite. The hearty fritter will have a promotional price of $1 through October in participating stores. In addition, 7-Eleven is rolling out new ovens to select locations so sales associates can bake croissants, cookies and other pastries on site up to five times a day.

“Customers are loving the aroma it brings to the store, as well as the taste,” said Stout.

KEEP IT CONVENIENT Despite pressures of the pandemic, consumers still want the convenience of grab-and-go foods, but they need assurance that those products were appropriately packed in a safe and clean environment.

All 7-Eleven fresh-food items are prepared in USDA-certified facilities and delivered to stores daily in secure, individual packaging. “To further reassure customers that food safety is of the utmost importance, we recently designed a

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security sticker for our [food] items,” said Marissa Jarratt, senior vice president and chief marketing officer, 7-Eleven. “Stickers are a small but effective way to remind customers that they don’t have to trade safety for convenience.”

With an eye toward safety and consumer confidence, 7-Eleven helps minimize person-to-person interaction by offering multiple payment options, including contactless checkout via Apple Pay, Google Pay and Samsung Pay. Participating stores in Utah, Manhattan, Dallas-Fort Worth and Long Island also offer mobile checkout through the 7-Eleven app, while in Orlando, North Texas and Virginia, the 7Rewards app permits contactless payment. As an added safety measure, 7-Eleven lets shoppers choose contactless delivery when they use the 7NOW Delivery app.

Customer counts began to pick up at many c-stores in June. “In fact, we had a few weeks YOY that outperformed June 2019,” said Plemmons of RaceTrac. “We’re hopeful our upcoming promotions and commitment to cleaning and safety will bring guests back inside.”

In early 2020, Datassential forecast that U.S. consumers would spend $39.6 billion on c-store foodservice this year. Now the forecast has been re-adjusted to $33.4 billion, a decrease of $6.2 billion.

“That sounds rough, and it is,” said Brandau.

“But it’s comparable [to projections] for QSRs and fast-casual, and it’s a lot better than the decreases predicted for full-service restaurants.”

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

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

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BEWARE OF

TECH

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DEBT BE STRATEGIC ABOUT SHORT-TERM TECHNOLOGY DECISIONS TO AVOID SHORTCHANGING YOUR FUTURE.

BY JERRY SOVERINSKY

A

fter incurring a $40 late return fee for Apollo 13 at a Blockbuster store in the mid 1990s, Reed Hastings imagined a new business model: movie rentals by mail without late fees.

Just two years later, at a time when Blockbuster was peaking with more than 9,000 video rental stores worldwide serving more than 65 million customers, Hastings founded Netflix and launched its movies-bymail offer. Blockbuster continued investing in brick-and-mortar stores.

Netflix gained market share, and it took Blockbuster nearly five years to introduce its own movies-by-mail offer, but by that time, Netflix had

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a firm footing in the marketplace (three million customers) without any store overhead and was already on to its next iteration of movie watching: its first-ever streaming service.

By 2009, forced to play tech catch-up, Blockbuster’s expansion into video streaming was clunky and proved too little and too late. By 2013, Blockbuster rented its last movie and today, Netflix subscribers number 182 million worldwide.

Blockbuster’s fate is the same that many other “too-big-to-fail” retailers have suffered: Slow to innovate and hastily adopting piecemeal technology to match the progress of its competitors, it instead took on an unmanageable amount of tech debt.

Patchwork approaches to address the debt led to

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greater liabilities, until its Frankensteinlike infrastructure imploded.

Fade to black.

Blockbuster’s story is instructive for convenience retailers. With myriad advancements in retail technology today— AI-driven checkout, mobile payments, digital CRM, cloud-based POS, IoT—convenience store operators face consequential decisions. For some, the adoption roadmap is strategic and deliberate, a proactive approach that is flexible and scalable.

Still others delay investments without definitive consumer alignment, a reactive approach whose final product is less than optimal. Shortcuts taken today lead to greater investment requirements in the future, an accumulation of tech debt that threatens long-term success.

• Failure of a “future-back” analysis: “This is how you determine platform, a strategic planning that defines the technical needs 10 years out and works back from that goal to influence all you do in between,” Taylor said.

It is critical to avoid the “failure to adopt a platform approach” above.

• Rush to market: If management forces an IT team to cut corners to get a product to market, the compromise takes on tech debt.

• Forced to adopt disruptor technology: Implementing a cashierless store and its future enhancements, for instance, comes at a cost dictated by the disruptor.

• The true cost of digital transformation: The short-term, duct-tape approach at adoption adds future costs to remediate deficiencies.

WHAT IS TECH DEBT? Very simply, tech debt is like other financial debt: Without the means to fully pay for something, we borrow what we need. For convenience store retailers, this means pursuing a compromised approach to deploying technology—a rush to market in some cases—a shortcut that requires future resources to address.

“It’s the unrealized cost required to take a tech stack from where it is to where it should be,” said Gray Taylor, executive director of Conexxus, in laying out the tech debt landscape for the convenience store industry.

According to Taylor, numerous factors contribute to tech debt, including: • Failure to align with standards and APIs: By delaying alignment, costs escalate.

• Failure to adopt a “platform” approach: “If every project is discrete—aimed at solving one problem—then leveraging capability through re-use becomes an afterthought,” Taylor said.

“If retailers have a ‘future back’ platform strategy—having an architecture that supports operations in the future—they can then design each project to support that platform through re-use and use of common data definitions.

Tech debt can be deliberate or accidental. In the rush to market scenario, the cost of delaying market entry can outweigh the tech debt. As such, a company may decide it is in their best interest to proceed, knowing they will have to invest money later to properly construct its infrastructure.

| OCTOBER 2020

“ IF EVERY PROJECT IS DISCRETE— AIMED AT SOLVING ONE PROBLEM—THEN LEVERAGING CAPABILITY THROUGH RE-USE BECOMES AN AFTERTHOUGHT.” Alternatively, if companies discover that a third-party design is flawed but they are unable to make revisions without considerable cost, the tech debt accrues accidentally.

Tech debt is not unique to the uninformed or ill-prepared, though. “We all have tech debt; it’s something you want, to some degree,” Taylor said, “but you must use it responsibly, knowing that it will need to be repaid at some point.”

HOW TECH DEBT IMPACTS GROWTH Tech debt is not a theoretical liability and in fact is weighing considerably on convenience store

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YOU’RE NOT ALONE

The problem of tech debt is pervasive and extends far beyond the c-store space. An Accenture survey of 1,000 c-suite executives revealed:

70%

say technical debt severely limits their IT function’s ability to innovate

retailers. As an industry, “our current state is dire,” Taylor said. “Innovation is expensive and laborintensive, making any response to disruption feeble.

A digital culture is difficult to establish, a tech stack is expensive to maintain and any benefits that AI offers are elusive.”

Over time, the reactive retailer continues to bloat legacy systems with updates and quick fixes that make pursuing a true digital transformation costly, if not prohibitive. “Companies seeking to expand their businesses … may find themselves hindered by an untenable IT environment,” according to MIT Sloan Management Review, “a patchwork of hundreds of different systems that slow collaboration and make it difficult to scale innovation.”

HOW TO MANAGE TECH DEBT Like any debt, tech debt eventually must be repaid.

The impact will be greatest if this occurs during a period of financial instability. For instance, companies reeling from the COVID-19-related shutdown during the past several months could find things untenable if their antiquated legacy systems failed, requiring a comprehensive overhaul. In such a case, retailers could either (somehow?) pay off the debt or else make emergency IT tweaks that provide, at best, temporary reprieve.

In other times, the company that remains vigilant to escalating tech debt and adopts a strategic payoff plan will be able to manage the liability. “Technical debt is often unavoidable and

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72% 69% 67%

say it greatly limits their ability to migrate to new technologies say IT is less capable of responding to market dynamics want to replace all their legacy systems

can even sometimes make good business sense. It’s not about avoiding technical debt completely, it’s about keeping it within reasonable bounds,” said Scott Ambler, vice president and chief scientist for disciplined agile at the Project Management Institute. “Much like a financial balance sheet, you need to think of keeping a healthy technical balance sheet—one with a strong debt-to-equity ratio.”

Below are a few ways to prevent tech debt from spiraling out of control.

1. Leverage debt: Just as companies would leverage a business loan to invest in their business and expand operations, they can leverage tech debt to deliver value to customers. If that is implementing additional touchpoints to customers, measure the return on investment to ensure that the debt remains manageable.

2. E liminate shortcuts: While the rush to market is often important to gain market share, pursuing poorly designed solutions is a losing long-term strategy.

3. G ain perspective: Proper tech debt management requires a clear understanding of the scope of that debt—often an elusive figure, as tech debt does not show up on a company’s balance sheet. For that, retailers may need to tap third parties to assess their technology and address any shortcomings.

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“ ONCE WE HAVE STANDARDS AND APIS IN PLACE, THE SMALLEST PLAYER WILL BE ABLE TO IMPLEMENT CHANGE.”

4. A llocate sufficient resources: Staying on top of tech debt and paying it down successfully requires a deliberate allocation of time and resources. Whether retailers are working with an internal IT team or outsourcing work to third parties, providing them with the proper resources and time to manage and reduce debt is critical.

CONEXXUS IS TACKLING TECH DEBT While many companies face tech debt alone, NACS is working with Conexxus to help retailers make a collective fight—or at least one where the debt remains manageable. “At Conexxus, we’re building a framework that allows the suppliers of services and the people consuming those services (retailers) to have a common way to work together so that they’re not always starting over from scratch,” Taylor said. “The only way to bring the entire industry through this is with standards. Once we have standards and APIs in place, the smallest player will be able to implement change.” (To learn how Conexxus is working on the behalf of the industry to develop and implement standards and technology innovations, go to www.conexxus.org.)

While larger retailers maintain their own internal IT department, a standards approach will eliminate the need for them to “pay their own way,” according

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to Taylor. “How you control a fuel dispenser or mobile application, we all need to do that. It should be defined through APIs and microservices.”

Currently, Taylor said the approach has been piecemeal and anything but standard. “About 75% of retailers aren’t taking a firm stance on digitization.”

While nearly 100,000 c-stores are segmented, he said that most still align with oil companies. “This is where the smaller guys need to understand that they need to move the needle and sit down with their dealers and talk about what to do for data security, for instance. … They [oil companies] come out with mobile apps that push their brand, but those have nothing to do with inside sales.”

The stakes are high, with the impact clearly visible—if not in the c-store space than certainly around it. “Over the last few months [as indoor dining shuttered] and people pivoted to curbside delivery, we learned just how inflexible our existing tech stack is,” Taylor said. “And people incurred tech debt to address it.” And as the EMV deadline approaches, things promise to escalate. “We’re going to lose 5% to 6% of our sites because of EMV,” Taylor said. (For more on the EMV deadline and dire consequences of non-compliance, visit page 72.)

“If you’re not thinking two to five years down the road, somebody [or something] will take you out of business,” he said.

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

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COVID-19 nudges the future of self-serve beverages in a new direction.

BY SARA COUNIHAN

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eedless to say, COVID-19 has changed almost every aspect of the convenience store experience. Gone are the days of customers strolling into your corner c-store, sans face mask, to grab a coffee from a carafe with some creamer and sugar they add themselves without these thoughts popping in their head: “How many people have touched this coffee handle?” “Should I use a napkin to grab the creamer?” “Hand sanitizer is happening as soon as I get back into my car.” “Am I staying six feet away from the next person in line?”

Retailers are well-aware that self-service beverages are a target for customer unease as of late, and recent data reiterate this. In the second quarter of 2020, sales of dispensed beverages were down 32% compared with the year-earlier quarter, according to NACS CSX data. April was the hardest hit month, with dispensed beverages down 38% year over year.

June showed slight improvement, with dispensed beverages down 23% year over year.

“The data from April to June tell the story from when the COVID-19 panic hit and there were few dispensed beverage options for customers to when most places were back to offering some dispensed options, but consumers were still a little wary,” said Chris Rapanick, director of business development for the NACS Research team.

THE (UNEXPECTED) LONG HAUL “Retailers are remaining flexible given the longevity of COVID and the frequent changes in local or state policies,” said Jeannie Amerson, principal consultant, loyalty and customer engagement at Impact 21, a retail consulting firm that works with leading convenience store clients.

Indeed, when Americans began quarantining in late March, the impression was that the coronavirus would be a serious threat for only a couple months. Either due to state or local orders or to err on the side of caution, many retailers completely shut down their self-serve beverage offerings at the end of the first quarter. Some others never shut them down.

One large convenience chain has not changed the way it has offered self-service beverages since before the pandemic. All self-service items are accessible on the sales floor, and the chain does not have plans

CONVENIENCE.ORG

to change its method. It’s business as usual for the company.

“In some instances we are seeing customer need outweighing the concern in certain underserved markets where convenience stores may be the only game in town and where COVID cases were minimal,” Amerson said.

As states began reopening in late May and consumers attempted to reclaim some sense of normalcy, retailers who had paused their programs began offering self-serve beverages once again. In late March, Altoona, Pennsylvania-based Sheetz had suspended all self-serve beverage and self-serve coffee offerings, as well as self-serve bakery items. The company has since opened self-service beverage, coffee and bakery offers, but the bakery items are now individually wrapped inside the glass bakery cases.

Likewise, Wawa, Pennsylvania-based Wawa also shut down self-serve coffee and beverages in March but reopened these services in May. The lack of official guidance at the federal level on food and beverage handling means it’s been up to individual states and localities to issue guidance, if they choose to at all. As a result, it’s been a mixed bag in terms of how self-serve beverages are offered to customers.

It seems like the customer need [for self-serve beverages] is outweighing the concern.

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“As far as I’ve seen, it’s business as normal in terms of on-premise beverages. … I don’t feel there is a middle ground for self-serve beverages. … it’s all or nothing,” said Matt Saitta, manager of category development, Impact 21.

Some retailers are attempting to implement extra safety precautions in their self-serve beverage programs. Certain retailers with foodservice programs are keeping lids and straws behind the counter to reduce the risk of customers handling these items and placing them back. Wawa added tissue paper for customers to use to grab handles and wrapped stirrers at the stations, and if customers desire, Wawa employees can make customers’ beverages instead.

“I think mandated masks have made customers more comfortable with self-service beverages as well. You don’t feel as if people are breathing around the area, and they feel more protected,” said Amerson.

out of matching the correct size lid to each cup and decreases the chances that a customer will handle multiple lids in search of the correct fit. For customers grabbing a coffee at York, Pennsylvania-based Rutter’s, they’ll find the lids inside a drawer-like dispenser next to the cups.

There isn’t a way to place the lid back into the drawer if it’s the wrong one.

The one aspect of self-service beverage programs that has not resumed for most retailers is refill programs. Sheetz; Wawa; Ankeny, Iowa-based Casey’s and many other retailers have paused their refill programs. However, at Sheetz, if customers show their refill mug to the cashier, the store will honor the refill price for a fountain beverage.

One of the most recognized retail refill programs, Starbucks refills, was paused in early March due to COVID-19, and although Starbucks has since released a reusable cup for purchase, customers cannot refill them at stores.

SAFETY FIRST Other retailers had customer safety in mind preCOVID-19. La Crosse, Wisconsin-based Kwik Trip coordinates the size of beverage cups with their corresponding lids by making each cup and lid size a different color. This takes the guesswork

DESIGNING THE FUTURE With customers’ heightened expectations about health and safety, what does that mean for the future of self-serve beverages in the convenience industry?

According to Joe Bona, a c-store designer, it’s up to the retailer to take the reins.

“In my view, customers expect retailers to have figured out how best to provide some degree of safety during this current crisis and not leave it to themselves to only follow the CDC guidelines,” said Bona, president of Bona Design Lab Inc. Bona believes consumer demand for self-serve items has not been diminished but is on a temporary hold until retailers and manufacturers find more innovative solutions that alleviate consumer fears about safety.

“This is an area where I believe we’ll see an acceleration of technology advance across all platforms, including contactless dispensing machines to minimize human touch, while still allowing for highly customizable choices,” said Bona.

C-store designer Mike Lawshe concurs with Bona and pointed to the drive-thru experience at McDonald’s, where attendants no longer hold the cup under the fountain and fill the cup themselves.

They simply place the cup under the fountain machine, which senses the cup size, and it takes care of the rest because in the McDonald’s world, seconds matter. That reason to implement this sort of technology wasn’t as meaningful to the c-store

We have to stop thinking of ourselves as last year’s c-store. We are next year’s convenience experience.

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Self-Serve of the Future Joe Bona, c-store designer and president of Bona Design Lab, believes that self-serve beverages are going to make a complete comeback in c-stores, but they will be back in a different way.

Bona has envisioned a self-serve coffee station that features bean-to-cup machines with a touchscreen that customers use to choose their type of coffee and size, with handy wipes to clean the screen after use. The offer is replicated across the station with dividers in between to give customers distance. “Then we thought, what if technology could work where you don’t have to manually touch the machine, but you could use your phone to activate the machine?” said Bona. The idea is to complete a coffee order via phone and then wave the phone in front of the machine, which dispenses the coffee exactly as ordered. “It’s really contactless,” he said.

For the condiment area of self-serve, Bona envisions a self-serve station that rationalizes the number of choices and reduces the number of options, which then minimizes potential time spent at the station.

“What if we took the traditional condiment island of a c-store and divided it into four, with a safety screen in between each station?” suggested Bona.

He says the same condiment offer would be presented at each of the four sections of the island. There would be hand

sanitizer at each section, as well as a digital screen showing the customer how the store would like them to interact with that area. He also suggests any condiment that is dispensed, such as creamer or sugar, be digitally activated by touchscreen or by phone activation like the self-serve coffee stations.

“The design would look much more purposeful and thoughtful and allow self-serve areas to operate in a safer DIGITAL SELFSERVEDCOFFEE environment,” said Bona.

design, technology & commun

Image courtesy of Bona Design Lab

BONA DESIGN industry, so the industry was slow to adopt this LAB technology, if any retailers did at all, said Lawshe.

“The hesitation behind it was that it is expensive,” said Lawshe, president and CEO of Paragon Solutions, a c-store and retail industry design and consulting firm. However, that type of technology is exactly what the c-store industry needs to keep up with changing consumer demands, he said.

Coca-Cola has upgraded its Coca-Cola Freestyle machines to enable consumers to choose and pour drinks from the machine via their phones. No app download or account creation is required. “Holding your camera up to the display auto-scans a QR code, which immediately connects to the cloud and brings the Coca-Cola Freestyle user interface to your phone,” explained Michael Connor, chief architect, Coca-Cola Freestyle, in a press release.

“You then select from the full menu of brands and flavors—and pour. The idea is to be safe, seamless and fun.”

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“Touch-free and frictionless was the answer, is the answer and now is going to be a necessity,” said Lawshe. “We have to stop thinking of ourselves as last year’s c-store. We are next year’s convenience experience.”

Bona agrees that the time for retailers to implement technology to address consumer demands is now. “Convenience operators have always been at the forefront of figuring out how to transact faster, better and more efficiently, and technology is what will drive the industry forward.”

Sara Counihan is managing editor of NACS Magazine and content project manager at NACS. She can be reached at scounihan@convenience.org.

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| OCTOBER 2020

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Whether it’s concerns about COVID-19 or a need for speed, consumers dig drive-thru service.

A

lmost every modern QSR has a drive-thru window, but when it comes to the convenience store industry, drive-thrus have been a rarity. Because of COVID-19, that situation may be changing.

“I have a [convenience-store] customer in the Northeast who was not doing well with his drive-thru,” said Mike Lawshe, president and CEO of Paragon Solutions, the c-store and retail industry design and consulting firm based in Fort Worth. “When COVID hit, his drive-thru business went from 7% to 37% of total sales.”

For almost 20 years, Lawshe has been an advocate of drive-thrus. “Fast feeders would never build a store without a drive-thru,” he said. “When they buy property, they set up their buildings to facilitate that. But c-store legacy sites aren’t set up for it, and that’s been a limiting factor. Now with COVID, people are looking at it through a different lens.”

It’s not just shoppers who worry about entering a store. Store employees do, too.

Phil Lempert, author and food trends editor for NBC’s Today show, believes drive-thru operations—especially when combined with contactess payment—would help negate that concern. “We have a workforce that’s exhausted,” said Lempert.

“Employees are working 10 to 12 hours a day. They’re concerned they are being called essential workers but aren’t being treated as essential workers from a pay standpoint.

We’re seeing retail clerks in the food business quitting on the spot or not showing up to work. If we have a second wave of COVID, we’re going to see more employees quit.

They’re concerned about their health.”

CONVENIENCE DRIVE-THRUS Drive-thru restaurant visits were up 26% in the second quarter and represented 42% of all restaurant visits, according to The NPD Group. In July when more restaurants reopened, drive-thru visits still grew by 13%, the highest increase among the service modes of on-premises, carryout and delivery, the market research firm reported.

In July, Wawa, the 900-store chain based in Pennsylvania, received a landslide of publicity when it announced plans for its first-ever freestanding drive-thru-only convenience store, which is set to open in Falls Township, Pennsylvania, in December.

The 1,850 square-foot test store reportedly will be followed by a second drive-thru in Westhampton, New Jersey. Shoppers will pull up to a window to place their order, and a Wawa employee will process payment and hand over the merchandise.

“We are hoping to learn from the layout, workflow and traffic flow at this location as we continue to explore alternatives for longer term application to our stores postCOVID-19,” said Terri Micklin, director of construction, Wawa.

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“When COVID hit, his drivethru business went from 7% to 37% of total sales.”

Square One Markets, with 11 stores in Pennsylvania, is a veteran of drive-thru operations. The company operates a 35-year-old drive-thru location in the town of Easton, near the New Jersey border. “It’s a one-window operation because we want to keep the interaction similar to the customer coming into the store,” said Lisa Del Alba, president and CEO of Square One. “Most items that customers request are kept right by the window. With COVID, if people don’t have to come in the store, they won’t.”

The most common drive-thru purchases are 20-ounce drinks, tobacco products, chips and bags of ice, but shoppers can get “anything that fits through the window,” she said. Del Alba’s goal is to get customers served in 30 seconds, but “if the employee goes to get a product, it may take a minute or two,” she said. “We try to be as efficient as possible.”

Pak-A-Sak, the Amarillo, Texas-based retailer, has 22 stores, including 13 drive-thrus, the first of which opened in 2008. “We kept going by fast-food restaurants, and people were sitting at drive-thru windows. We thought, ‘we should do that,’” said Russel Barber, district manager, Pak-A-Sak. “Now, we won’t build a new store without a drive-thru. We found that it pulls customers from a further radius.”

A few years ago, Pak-A-Pak turned an empty Starbucks store into the first Pak-A-Sak Express.

It has a smaller footprint than other locations but enjoys a bigger drive-thru business. “We’re averaging around 30% of business through our

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regular drive-thru windows, but the Express can get as high as 70%,” said Barber.

The company also has converted some legacy stores into drive-thrus, “and we got an immediate bump in sales,” he said. “So, that’s proven to us that it’s worth the investment. We were fortunate that we had the big parking lots, and we could go off the end of the building.”

Like Square One, Pak-A-Sak uses a single window—but no microphones or headsets—to ensure personal interaction with customers, who can get any item sold in the store at the drive-thru.

“When customers drive up, they can see five cooler doors, and we put our best-sellers in those doors,” Barber said. “We sell a ton of fountain drinks, cigarettes and beer.”

DRIVE-THRU CHALLENGES Just cutting a window in a wall is no guarantee of drive-thru success. “It’s like every other business,” said Lawshe. “You’ve got to work it and understand that your customers are different. But you’re going to be attracting customers that you wouldn’t otherwise have in your store.”

For retailers considering building a store with a drive-thru, there’s no actual formula for selecting a site, he said, but the interior needs at least 500 square feet near the window to house extra coolers and high-demand merchandise.

Placement of the store’s checkout is important. “You try to create efficiencies in the way you design it,” Lawshe said. “By doing that, you’re eliminating steps for your employees and making it easier for your customers.”

At Square One, the drive-thru’s register is near the front door and in line with the checkout counter. “You can still greet customers and are able to control inventory,” Del Alba said. “It requires more labor. We put one person at the drive-thru, one working with customers inside the store and a third person helping out.”

Successful operators will embrace the concept and commit to the additional labor, Barber said.

“We watched another store do it, but basically they just knocked a hole in the wall and said, ‘We have a drive-thru window,’” he recalled. “When a car pulled up to the window, only one clerk would

CONVENIENCE.ORG

“ Customers aren’t impulse shopping as much in the drive-thru.” be working and trying to do everything. They just couldn’t do it. You don’t pull up to McDonald’s and they hold up their finger and say, ‘We’ll be with you in a minute.’”

As with everything, there are downsides to drive-thrus. “We spend our lives in the convenience industry trying to get people in the store, and we thrive on impulse,” Del Alba said. “But customers aren’t impulse shopping as much in the drive-thru. You lose that opportunity to tease them with things they don’t really need.”

If an existing store can’t add a physical drivethru, it can always offer curbside pickup, which is almost like drive-thru—minus the window. “Now, everything is curbside pickup,” said Lawshe.

“And it’s not just restaurants. It’s Tractor Supply and Home Depot. Curbside pickup is as simple as designating a couple of parking spots in front of the store and having your employees pick, pull and deliver to the customer. Maybe the customer preorders online or through a loyalty program and pays with an automated payment system. You can do that at Kroger. Why not at convenience stores?”

In September, Casey’s, the Ankeny, Iowa-based retailer, did just that, making curbside service available at 2,000 locations after tests in Kansas City and

Cannabis and Funerals

Drive-thru convenience is not limited to QSRs or c-stores.

Tumbleweed Express, a drive-thru marijuana dispensary, opened in Parachute, Colorado, in 2007 to sell recreational cannabis to the locals. (At press time, Tumbleweed’s website described the store as “temporarily closed.”) And in Murfreesboro, Tennessee, the Hellum Funeral Home is offering drive-thru viewings for mourners who want to pay their respects while abiding

by COVID-19 safety guidelines. When restrictions on large gatherings are lifted, the funeral directors say they’ll return to traditional services.

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Des Moines. Customers can order for curbside pickup via the Casey’s app or website, and the service is free.

“We see more and more guests seeking curbside pickup options to save time and feel safe,” said Art Sebastian, vice president, digital experience, Casey’s.

QSRs ARE SOLD ON DRIVE-THRUS Before the pandemic, about 80% of Starbucks’ U.S. business consisted of on-the-go transactions, thanks to the company’s mobile app that lets customers order and pay ahead. Recently, Starbucks announced plans to replace mall locations with “pickup” stores in high-density areas and enhance drive-thrus in the suburbs, a transformation scheduled over the next 12 to 18 months.

Taco Bell recently released its new “Go Mobile” restaurant design that focuses on drive-thru service and limits human interaction. The chain is cutting back on dining room seating and adding a second drive-thru lane dedicated to pickup orders made on its app.

Rival Chipotle built 56 stores with drive-thru lanes last year and plans to put drive-thrus in 60% of new stores slated for construction.

Chipotle drive-thrus had 10% higher sales during the second quarter of 2020 compared with non-drive-thru locations.

“Customers have shown a preference for drivethru and pickup, and it’s not just customers trying to avoid COVID,” Lawshe said. “It’s moms with kids, seniors and disabled people.”

Drive-thru retailing is all about speed— fast food and fast service—and helping people get on their way—the same premise as convenience retailing.

“Our commodity in the convenience-store industry is time,” said Del Alba. “We don’t have special Twinkies. We sell time. We get people in and out. That’s what we’re known for.”

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

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

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MARKETING IN AN ERA OF

MEANINGFUL MEDIA

Social media followers fall in love with brands that create connections through humor, values and authenticity in messaging. | BY RENEE PAS

S

ocial media and the brand management component that goes along with it means something very different today than it did in years past. “It’s no longer a broadcast medium,” said Kim Garst, a social media and digital marketing expert based in Tampa. “It’s relationship-based today. And companies have to be committed to doing the work to facilitate the connection.”

Few are willing to actually do what it takes to capitalize on social media, said Garst. That group of exceptional companies that do what it takes totals about 5%, she said. “Then there are those—maybe 50% to 60% of companies—who think they are doing what they need to do with social media but probably are not. And the rest

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after that are absent.” To truly be in the game today, companies need to focus on engagement, said Garst, and leveraging brand messaging in a meaningful way with (and not to) consumers.

Some convenience store brands are extremely active on social media platforms; others are seemingly still dipping a toe in the water, meaning an account exists but with little activity and largely lacking the kind of engagement Garst references.

WHO TELLS YOUR STORY? “I put myself back in the narrative,” sings the character Eliza Schuyler Hamilton in the finale of the musical Hamilton. C-stores don’t have to insert themselves in the kind of high drama the Hamilton cast belts out in “Who Lives, Who Dies, Who Tells Your Story?” However, Garst said all companies should understand that their story is being told, whether they choose to be a part of that telling or not.

“The conversations about your brand are happening if you are there or not,” said Garst.

CONVENIENCE.ORG

“If you are there, you can be a part of it.” She cited a Chewy.com social media win when a customer asked to return an unopened bag of dog food after the family dog died. The company refunded the money and sent the customer flowers—a corporate bereavement practice that earned Chewy.com a slew of positive social media comments as customers shared their appreciation and awe at the gesture.

Similar stories continue to be shared on personal Facebook pages, noted Garst, and it has become an example of how customers can weave a brand’s story into their personal one. More importantly, she noted, Chewy.com demonstrated it was listening to its customers, a key component to successful social media.

Successful social media efforts go beyond having an active account. Connecting with customers through the content, and often the commentary around it, builds an engaged community around

a brand. Sheetz (500+ stores), Wawa (800+ stores) and Kum & Go (400+ stores) are three dominant c-store brands on social media platforms that embrace the idea of engagement.

Both Sheetz and Wawa have upward of 1.3 million followers on Facebook—a powerhouse platform for both brands. Sheetz has more than 500,000 followers on Twitter; Wawa’s Twitter followers top 361,000. Each brand also has a presence on Instagram, LinkedIn and YouTube. Sheetz has hosted livestream feeds on Twitch (a popular site with gamers), maintains a Snapchat account (a messaging app that largely appeals to teens), and while it does not officially have a corporate TikTok account, numerous consumers have posted #Sheetz videos (16 million views and counting)—meaning others tell the Sheetz story on that platform.

Kum & Go’s stats may not be as staggering as the numbers from Sheetz and Wawa, but make

PLATFORM DIFFERENCES One of the ways to segment different social media platforms is to mentally assign them different lifestyle-centric components, said Chris Blasinsky, NACS content communications strategist.

“It can be a struggle to have the same tone for a brand across different platforms, where audiences go for different things,” she said. “Overall, the tone of messages should reflect what users expect from that platform.”

Here’s how she categorizes three of the most common corporate social media platforms: Facebook—Reminiscent of a backyard barbecue, where the voice is casual and familial Twitter—Feels like being at a four-way intersection, where different brands connect on every corner LinkedIn—Skews more formal since it’s primarily a peer networking platform

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The conversations about your brand are happening if you are there or not. If you are there, you can be a part of it. no mistake: The chain understands how to penetrate social media, and the company is not afraid to put itself out there in terms of sharing opinions in addition to its marketing messages.

The chain maintains a bold voice on every platform it penetrates, which includes Facebook (112,000 followers), TikTok (48,000 followers @realkumandgo), Twitter (38,000 followers), LinkedIn (9,500 followers) and Instagram (10,000 followers).

Kum & Go’s Twitter voice takes the lead in terms of, well, attitude. One example, in response to a tweet that read “Career aspirations: Kum & Go social media intern,” Kum & Go tweeted back “dream big.” A couple other tweets showcase a sense of humor while striking a chord with customers in creating content relevant to a moment in time, like the “kum and then go right back home” tweet early into the COVID-19 pandemic, or “all are welcome at kum & go except the murder hornets,” which points to Kum & Go’s inclusive culture.

The playful tone at times crosses over to engage other c-store brands. For example, when a customer tweeted “I miss @Sheetz. All these Midwest gas stations blow,” the Sheetz account answered with “we happen to be friends with @kumandgo.” In turn, Kum & Go followed up with “we’re best friendz actually.”

Those kinds of tweets are interspersed with promotional messaging around products, like its cake shake and Kum & Go merchandise.

The Twitter community has taken notice of the offbeat commentary and often comments on the approach, saying things like the company understands social better than others, and even devoting themselves as Kum & Go consumers because of its

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Social Media During COVID-19 Many brands continue to communicate information to customers regarding COVID-19 via social media platforms and websites.

Facebook has been cited as the delivery method of choice for many convenience retailers to communicate COVID-19 response efforts with customers, per a NACS Retail Member Survey.

Information c-stores continue to disseminate includes topics such as identifying specific stores that had an employee test positive for COVID-19, how the company is handling sanitation efforts, rules around wearing masks in stores, local food donations and more.

social media. The number of retweets and comments after Kum & Go’s June 8 post about being “finally ready to tell the uncensored true story of how we got our name. buckle up because it’s a wild one… ” reached 7,400. That’s 20% engagement from its followers in a medium when many consider a mere 1% engagement from a single tweet a success. It demonstrates just how deeply rooted those connections are becoming between Kum & Go and its social media base. For the record, the tweet took readers to the homepage of the NAACP Legal Defense and Educational Fund.

That blend of messaging and the ability to bounce between lighthearted banter, promoting products and pushing out deeper social commentary—all while maintaining a growing audience on a platform with the goal of connecting customers and in turn driving store sales without offending people to the point they stop following—can prove a complicated recipe indeed. “That’s the tension of the entire role,” said Ariel Rubin, communications director at Kum & Go, who added that he finds fun in building the audience. “Audiences know when it’s corporate speak. What I want any of our social to be is both authentic to the person and the brand.”

One of the good things about the internet, said Rubin, is that it’s the world’s largest free focus group. “People will tell you, for better or worse, what they think. You learn as you go. We are in a good place now.”

People will tell you, for better or worse, what they think. You learn as you go.

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| OCTOBER 2020

A clear corporate philosophy and values ultimately guide the voice on Kum & Go’s social platforms, Rubin said. While he noted that Kum & Go does steer clear of politics, the company does not shy away from social commentary, including posts supporting the LGBTQ community, Black Lives Matter and more.

“We have a lot of important things to communicate,” said Rubin. “If we don’t have an audience, we are tweeting to no one.”

SOCIAL REALITY CHECK Don’t be intimidated by the social media presence of the likes of Kum & Go, Sheetz and Wawa, said Chris Blasinsky, NACS content communications strategist. Of course those are great examples to strive for, she noted. “Just know that those brands have been very active on social for a long time,” she said. “They have built that community.”

For those still in the process of building a strong social media presence, Blasinsky recommends paying close attention to the metrics and engagement. “Look at what’s working and resonating,” she said. The beauty of social media, she added, is the ability to revise and revamp a post. “Try a different image or hashtag or tag social media influencers to increase engagement.”

Two-way communication can also prove effective in creating engagement, Blasinky said.

“Instead of simply posting about a new flavor, add in a question such as, ‘What’s your favorite flavor?’ to increase engagement. It needs to be a two-way conversation.”

“It’s always good to go back to the human connection,” said Jeff Lenard, vice president, CONVENIENCE.ORG

Audiences know when it’s corporate speak. strategic industry initiatives, NACS. “Especially in tough times.”

Tough times brought with it an end to planned in-store promotional events at Weigel’s Farm Stores, a 64-store chain headquartered in Powell, Tennessee. “Since we cannot hold those promotions at stores, we’ve moved a lot of those campaigns to social media,” said Rebecca Gregroy, digital marketing manager for Weigel’s.

The naming of SharkEE, the mascot for the chain’s signature frozen drink, and live events with product giveaways was one of the campaigns that moved online this past summer. “Usually we would go out to stores, but instead we used social media as a gateway to still engage customers.”

Weigel’s invited customers to submit names, and after Finnegan was chosen as the mascot’s name, the social media effort continued on Facebook (Weigel’s has 24,000 followers on Facebook).

Customers were entered in a drawing to win a color-changing mug and SharkEE refills for a year if they posted a selfie with their SharkEE drink.

Weigel’s uses its social media platforms to engage not only customers but also employees.

Employees actively share on Weigel’s Facebook page. “We like to connect with employees and do things to engage them on social media,” said Gregory. “From a store perspective, it’s a nice way to stay connected and not feel isolated.”

A “Tell Us Something Good” Facebook post generated a lot of positive comments from both employees and customers. “We get a lot of organic sharing,” said Gregory. “People seem to thoroughly enjoy interacting.” And social media provides the ideal location to do so in these days of COVID-19.

Renee Pas enjoys reading fearless social media posts only if they are authentic.

She can be reached at reneepas4@gmail.com.

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COUNTS Digital technologies help customers save time— still the No. 1 criteria for a convenient shopping experience.

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onvenience stores have been saving consumers time on their shopping experiences since 1927. During those first few decades after their emergence, convenience meant extended hours of operation.

In the post-World War II era, convenience was more about location as populations in the suburbs exploded. And as convenience evolves—especially during the COVID-19 pandemic—retailers continue to strive to deliver a quick and easy experience for the estimated 165 million consumers a day, including the millions of consumers who purchase fuel.

During the pandemic, most U.S. convenience stores have remained open to serve their communities and have found new ways of redefining the “time” consumers spend inside the store and at the pump.

In the current COVID climate, saving time continues to be relevant—but not because customers are busy taking kids to school or getting to work on time. Today, time is an important safety factor as customers move quickly in and out of stores, utilize delivery, access the drive-thru or curbside pickup.

Past NACS consumer surveys found that the industry’s ability to save time resonated with 63% of consumers who shopped at c-stores because of their convenient locations and quick queueing, and more

CONVENIENCE.ORG

BY CHRIS BLASINSKY

than half of consumers (52%) said that beyond food and gas, they chose to shop at a c-store because the locations allowed them to get in and out fast.

What’s more, a NACS Speed Metrics survey indicates that consumers want a quick and easy shopping experience. The survey found that the average time it takes for a customer to leave a car and enter a c-store and return to the car with a purchase was three minutes and 33 seconds. Compared with other retail channels (QSR, drug, dollar, grocery), consumers in a 2018 NACS survey also said that convenience stores have the shortest lines by a nearly 2-1 margin.

The pandemic may have slowed foot traffic, but it has not stopped retailers from leveraging digital options and technologies to engage their customers.

CONTACTLESS SHOPPING With the ubiquity of mobile devices and e-commerce, more convenience stores have been embracing technologies that make frictionless shopping experiences possible.

Kwik Chek, High’s and Enmarket are three convenience retailers that have integrated Skip mobile checkout, which allows customers to shop the store, scan items via an app on their mobile device, pay via

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Today, time is an important safety factor as customers move quickly in and out of stores, utilize delivery, access the drive-thru or curbside pickup. debit/credit and leave the store without standing in line or visiting the register. The shopping process is literally in the hands of the consumer.

Contactless technologies also allow retailers to collect more data to learn how their customers are shopping the store, such as items purchased, time of day, trip frequency—all of which can help retailers deliver a personalized customer experience.

Many of these technologies also integrate with the company’s loyalty rewards programs.

In the automated checkout space, Amazon Go announced in March that it had begun signing deals with retail customers for its “Just Walk Out” technology.

Loop Neighborhood Markets opened a cashierless Loop “nanostore” in Campbell, California, a collaboration with startup AiFi. The 1,500-square-foot store carries 1,500 SKUs. It’s equipped with 12 cameras that capture shopper movements and servers that analyze the data. To enter the store, consumers download an app and

connect a payment method with AiFi’s digital checkout system.

Most consumers (68%) in the 2020 NACS survey said contactless and automatic checkout technologies would save them time, while just 22% think it would save them money. Interestingly, it’s not just the younger generation interested in this type of convenience.

FOOD DELIVERY AND PICKUP During the nationwide “stay-at-home” orders, many Americans were unable to make a quick run to the store for necessities, meal solutions or even a treat.

7-Eleven continues to use its proprietary 7NOW delivery app to bring food and merchandise to customers, and for added peace of mind, customers can request contactless delivery and have orders left at their front door. In July, 7-Eleven added a new feature to the app to enable customers to pre-order and pre-pay for purchases to pick up at participating stores.

Consumers Say Automatic Checkout Technologies Would …

Total

120

Gender

Age

M

F

<35

35-49

50-64

65+

save time

68%

62%

75%

60%

65%

79%

91%

save money

22%

26%

16%

27%

26%

9%

4%

be a cool product/ service

10%

12%

9%

13%

9%

12%

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| OCTOBER 2020

CONVENIENCE.ORG

Consumers Say Food Delivery Via a Mobile App Would …

Gender

Age

M

F

<35

35-49

50-64

65+

save time

54%

49%

62%

54%

51%

63%

65%

save money

26%

29%

22%

25%

28%

22%

14%

be a cool product/ service

20%

22%

17%

20%

21%

15%

20%

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With roughly 273 million smartphone users (Statista.com) in the United States, mobile capabilities for placing a pickup food order had already been developing as a strategic driver among convenience retailers with robust foodservice programs and technology solutions to support online and in-app ordering. Today, these digital solutions have taken off as customers seek establishments that offer in-store and/or curbside pickup.

Kum & Go announced plans to expand forecourt delivery services to stores in 12 states. To pick up food and merchandise at the curb, customers call the main store phone number and place their order, which is delivered to their vehicle upon arrival. “We are always looking for ways to better safeguard our customers and associates,” said Tanner Krause, president of Kum & Go. “Going back to our roots to provide a full-service fueling option can help people maintain social distancing and avoid common touchpoints. Our stores provide essential services and goods, and we are proud to be able to support our communities during these challenging times.”

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“How convenience is defined is completely different today than it was just a month ago,” said Chris Tanco, chief operating officer for 7-Eleven, in a press release. “Our customers are now looking for more convenient shopping solutions at home.”

Ankeny, Iowa-based Casey’s launched a new mobile app in 2019, where customers can customize their pizza, place an order for delivery or carryout and save orders for future reference. To minimize human-to-human contact, customers can choose “no contact” in the delivery instructions at checkout when making an online or in-app order. Delivery drivers place the order in a clean location on the doorstep, knock and move to a safe distance while the customer retrieves the order.

“Now, more than ever, it’s important to provide our guests with greater access to options for safe and convenient delivery for a family dinner or the essentials they need,” said Chris Jones, chief marketing officer, Casey’s.

In early April, Casey’s announced a new partnership with DoorDash to expand delivery across the company’s 16-state footprint. In September, the retailer began offering curbside pickup after pilots in several cities revealed that customers appreciated the option via the Casey's app, and liked the convenience of being able to submit their pizza and grocery orders before arriving and have their orders placed in the vehicle’s trunk by a team member.

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54% of customers agreed that food delivery via a mobile app would save them time.

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Total

Gender

Age

M

F

<35

35-49

50-64

65+

save time

65%

60%

71%

64%

63%

71%

88%

save money

23%

25%

20%

25%

22%

19%

12%

be a cool product/ service

12%

14%

9%

11%

15%

9%

0%

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Sheetz launched a new “SHcan & Go!” feature at all stores, allowing shoppers to scan and pay for products through the Sheetz app, as well as minimize the need for interaction during the checkout process. “This new feature continues to deliver on our mission to be the ultimate in convenience, allowing customers to scan and pay for items they need easily and quickly,” said Travis Sheetz, president and COO. “Innovation has always been a key driver at Sheetz, and we will continue to look for new, innovative ways to serve our customers and provide essential needs in these uncertain times.”

RaceTrac rolled out an online ordering platform in late April that allows customers to abide by safe social distancing guidelines. By visiting order.racetrac.com, customers can select merchandise and pick it up at the nearest RaceTrac location within 30 minutes via the “Grab and Go Box” pass-through window. Purchases are completed at pickup by credit card only. “RaceTrac is committed to the continuous support of our communities and guests through this unprecedented and uncertain time,” said Melanie Isbill, chief

marketing officer of RaceTrac. “Online ordering is the newest addition to the products and services we are offering to help continue to get our guests whatever gets them going while providing a safe, clean and reliable experience.”

Adopting and leveraging technology can bring time-saving applications to your store, especially as more convenience customers embrace a digital lifestyle more quickly than ever before. And while time-saving technologies are cool, customers are saying that the time they save trumps the coolness factor. Customers are more interested in how technology can enrich their lives, and now, more than ever, that finding is important to keep in mind.

Chris Blasinsky is the NACS content communications strategist; she can be reached at cblasinsky@convenience.org, and on Twitter (@chrisblasin) and LinkedIn.

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COOL NEW PRODUCTS This advertorial-style guide of services and packaging appears monthly and is an information-packed tour of ideas and approaches that can change how consumers view your store or choose your brand.

It spotlights the newest thinking in convenience and fuel retailing and gives you an advance look at ways of staying in front of industry trends.

Products are categorized the same way we organize the Cool New Products Preview Room at the NACS Show each year in October— New Design, New to the Industry, New Flavors, Health & Wellness, Green (EcoFriendly), New Services and New Technology. Products are considered “new” this year if they’ve been introduced since last year’s NACS Show (after October 4).

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

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Print’N Stick Linerless Self Adhesive D.T. Media

Reduce Food Waste & Save Time on Custom Orders

Increase your foodservice order accuracy, speed transaction time, and safely label prep time/date items with Print’N Stick Linerless Self Adhesive Direct Thermal Media. You can print any size label for self-adhesive receipts, Grab ’N Go, Ingredient, and Prep labels from the same label roll. Compatible with most linerless direct thermal printers, you can choose from four adhesives job mated to your specific needs. The Print’N Stick family includes Removable and Temporary adhesives that adhere to and remove from frozen, refrigerated items. Print’N Stick media is stocked in printer ready rolls on 1” cores in a variety of configurations including 40mm, 80mm, 2” and 2.25” x 155’ rolls. Custom lengths are readily available. Other core sizes and widths can be provided.

For more information, call (800) 676-9665 and visit www.nastar-inc.com.

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COMPANY

The Pinnacle Corporation PRODUCT

Affiniti Cloud Mobile Ordering

Web and Mobile Ordering Designed for C-Stores

With Affiniti Cloud Mobile Ordering, your customers can order the products they use the most—whether food or general merchandise—and schedule pickup curbside or pumpside from your website or from their mobile device. And with mobile payment, the process is fast, safe, frictionless, and easy! For more information, call phone: 817.795.5555 and visit www.pinncorp.com/ nacs-cool-new-products-2020

COMPANY

The Coca-Cola Company PRODUCT

Coke with Coffee

Sips Like a Coke, Finishes Like a Coffee.

This is not a Coca-Cola flavored coffee. And it’s not coffee flavored Coca-Cola. This is Coca-Cola with Coffee. It is literally the best of both. And it’s more than a blend of two beloved drinks. It’s the uplift and refreshment of Coca-Cola. It’s the rich experience of coffee. Each bring their own iconic qualities for one totally unique taste. So unique—there’s literally nothing else like it. Coca-Cola with Coffee. Sips like a Coke, finishes like a coffee. For more information, call 1-800-241-COKE and visit www.coca-colacompany.com CONVENIENCE.ORG

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COMPANY

PRODUCT

PRODUCT

Chocolatey PayDay

KIT KAT® DUOS Mocha + Chocolate

The Hershey Company Chocolatey PayDay

The hardest working candy bar is now covered in chocolatey deliciousness. Chocolatey PayDay delivers the same PayDay truckload of peanuts surrounding sweet caramel, but now with a chocolatey taste. Available nationwide in 1.84 oz. standard and 3.1 oz. king bars (SRP $1.11 and $1.66).

The Hershey Company KIT KAT® DUOS Mocha + Chocolate

KIT KAT® DUOS Mocha + Chocolate is that delicious combo of mocha coffee flavor and chocolate layering the KIT KAT® wafer everyone knows and loves. It will be available at stores nationwide beginning in November 2020 in both 1.5 oz. standard size and 3.1 oz. king size (3 oz.) bars. (Standard SRP $1.11, King SRP $1.66).

COMPANY

FIFCO USA

PRODUCT

Seagram’s Spiked Blue Razberry 23.5 oz cans

Seagram’s Spiked Blue Razberry

High ABV FMB’s are one of the fastest growing, highest margin segments in the beer category. They account for 41% of FMB volume in the convenience channel. Seagram’s Escapes Spiked is the #3 fastest growing FMB brand in total US Conv YTD20. Flavor is the #1 driver of purchase and Seagram’s Escapes in the brand best known for delicious, great tasting flavors. Blue Raspberry is the #2 overall preferred flavor for this consumer, ranking #1 with men and #3 with women. Available in 23.5 oz cans this September! For more information about Spiked Blue Razberry, call (800) 729-4366 or visit www.seagramsescapes.com

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COMPANY

Inter-Continental Cigar Corporation PRODUCT

Al Capone—Hand Rolled Premium Cigarillos

Al Capone—Top 5 Brand Natural Leaf Cigarillos

Al Capone cigarillos are made with premium tobacco and hand rolled in a natural leaf wrapper. For more information, call (800) 922-4858 and visit www.alcapone-us.com.

CONVENIENCE.ORG

COMPANY

COMPANY

PRODUCT

PRODUCT

Exciting New Flavors Launching From Johnsonville

Get Your Hands on Something New from Johnsonville

Johnsonville Queso, Southern BBQ, & Smoked Honey BBQ Sausages

Flavor is on the rise with Johnsonville's new Ultimate and Natural Smoked Sausages!

Introducing our Ultimate Queso, combining Tex-Mex spices and creamy Pepper Jack cheese.

Our new, naturally smoked, skinless Southern BBQ, and Smoked Honey BBQ flavors offer bold heat or sweet heat, as preferred. All bring exciting flavors your roller grill customers are craving, with the assurance of safety, a premium product, and Johnsonville's trusted name.

Family-owned and operated, Johnsonville has been known for legendary sausage since 1945.

For more information, call 1 (888) 556-BRAT and visit website www.cstore.johnsonville.com.

COMPANY

Allegiant Health PRODUCT

Johnsonville Jalapeño Cheddar Sausage & Beef Hot Dog Handhelds

We’ve set the standard for high-quality again with our new enrobed sandwiches! Our skinless, smoked Jalapeño Cheddar Sausage offers a spicy kick, while our Beef Hot Dog brings an indulgent, classic favorite to our sandwich line up. Each portable sandwich is enrobed in golden-brown bread and wrapped in a clear, microwavable film—perfect for in-store warmer displays. Unwrap the power of premium of quality and convenience.

Family owned and operated, Johnsonville has been known for legendary sausage since 1945. For more information, call 1 (888) 556-BRAT and visit www.cstore.johnsonville.com

COMPANY

Bug Juice Internationals Inc. PRODUCT

NutraA2Z Vitamin C & Prebiotic Flavored Drink Mix

Vita Blue and Vita Berry

Immune Booster

New Functional 10-Calorie Children’s Beverage

NutraA2Z Vitamin C & Prebiotic Flavored Drink Mix combines the power of Vitamin C, prebiotics, and Vitamin B-complex to power up your whole body. Vitamin C is essential for the growth and repair of your body tissues and boosting your immune system to help defend against inflammation and other ailments. Vitamin B-complex helps maintain a healthy nervous system and metabolism. Prebiotics help the good bacteria in your gut grow, making your digestive system work better. For more information visit www.allegiant-health.com CONVENIENCE.ORG

Vita Bug, the first children’s fun functional beverage, was developed due to COVID-19.

We contacted nationally renowned nutritionists to discuss the best way to help support children’s immune systems. New 10-Calorie Vita Bug is packed with all the vitamins, minerals, electrolytes and amino acids in a buffered formula to support children’s health and immune system needs. With no synthetic sugars added. Contact your distributor/wholesaler, or call (810) 225-3200, and visit www.vitabug.net

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COMPANY

Premier Manufacturing PRODUCT

Wildhorse Cigarettes

COMPANY

Tres Picosos PRODUCT

Tres Picosos Burritos

New Retro Packaging for Authentic Mexican Burritos

Watch your food sales go ¡arriba! with Tres Picosos burritos in rustic eco packaging. For more information, call (303) 329-0900 and visit www.trespicosos.com.

Bold New Look—Same Great Experience

Wildhorse® has a new look for this classic brand. It still is known for its bold, rich taste and smooth smoking experience one would expect from a higher-priced premium cigarette. Wildhorse provides fine flavor and aroma at an attractive price. Wildhorse is American owned, American grown and American manufactured – We proudly state “A Product of US Farmers®” on our packaging. We believe so strongly in our products that we back them with a 100% guarantee. Experience The Freedom®. For more information, call (800) 272-8656 or visit www.GoPremier.com

COMPANY

J&J Snack Foods, Corp.

PRODUCT

Supreme Stuffers® Individually Wrapped Bagel Twists

We Are Putting a Fun, New Twist on a Breakfast Staple!

Breakfast on the go doesn’t have to be a part of the same boring routine anymore with Supreme Stuffers® Individually Wrapped Bagel Twists! J&J Snack Foods has created the next big thing in breakfast or anytime snacking. In three delicious fan-favorite flavors, we have put a fun, new twist on a traditional breakfast staple! Individually wrapped in an innovative craft paper wrapping that allows the product to be baked or microwaved right inside its eye-catching packaging helping ease store operations. Boasting a 1-year frozen shelf life, 14-day refrigerated shelf life, and up to 4 hours heated hold, these items can be consumed either warmed or refrigerated, making them easy to merchandise in any category across the store.

For more information, please visit www.jjsnackfoodservice.com or call (856) 665-9533.

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COMPANY

Lucky Lotto Scratchers, Inc. PRODUCT

Lucky Scratcher COMPANY

Lavi Industries PRODUCT

Protective Partitions

Protect Customers and Employees

Protective Partitions provide customers and employees an effective physical germ barrier while keeping sightlines open. Available in several heights, widths and finishes, with an optional pass-thru cut-out to accommodate a variety of applications. For more information, call (888) 285-8605 and visit https://www.lavi.com/protective-partitions.

Erase Scratch-off Ticket Surfaces Quick & Easy

Lucky Scratcher provides an easier way to remove scratch-off ticket surfaces. Featured on the Today Show on NBC network (see website), the response was overwhelming.

Absolute must have and easy sell for Scratch-off Ticket enthusiasts. Reasonably priced at $5 retail - store profit $2.00. Place Lucky Scratcher next to Lottery Scratch-off Tickets.

Place a sample at Lottery register, ask customer to try it. An instant purchase will ensue. Variety of colors: Green, Blue, Red and Orange. For more information, please call (716) 333-5223 and visit www.LuckyLotteryScratcher.com.

COMPANY

Old World Industries PRODUCT

BlueDEF PLATINUM™

The Best Just Got Better™

We have been a trusted supplier of automotive products to convenience stores by providing the highest quality products that meet or exceed OE specifications! Introducing BlueDEF PLATINUM™ with advanced SYSTEM SHIELD™ technology. A groundbreaking premium Diesel Exhaust Fluid with a proprietary formula to tackle deposits that can build up in the SCR system. BlueDEF PLATINUM™ maintains optimum fuel economy, saves money on costly repairs, and sustains the life of your SCR system. For distribution and promotional opportunities, please contact Andrew Kloep at (847) 443-0703 or e-mail akloep@owi.com. Visit www.bluedefplatinum.com for additional information.

CONVENIENCE.ORG

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COMPANY

Anchor Packaging PRODUCT

Fry BabyTM Crisp Food Technologies® Container

2020 Best New Product Award-Winner Keeps Food Hot & Crispy

The Fry BabyTM container, chosen by Convenience Store News for best “Overall Innovation,” adds versatility and value to the award-winning Crisp Food Technologies® line. This hinged 6”x 3” size is perfect for servings of French fries, chicken strips, nuggets, wings, and other foods. Fry BabyTM containers integrate anti-fog in both the clear base and lid, keeping food looking fresh on display for grab ‘n go and avoiding order errors. Fry BabyTM is a game-changer, containing the high-performance attributes of Crisp Food Technologies at a cost less than a coated paperboard box. Unique, patented, convection cross-flow design relieves moisture and condensation while maintaining food temperature and texture. Consumer reusable and curbside recyclable. For free samples and more information please visit: www.30minhd.com/NACS

COMPANY

Caliper CBD

PRODUCT

Caliper CBD and Caliper Swiftsticks

Now, Two Ways to Get Powerful CBD Powder On-the-Go

New Caliper CBD Swiftsticks give your customers a delicious way to enjoy powerful CBD powder! Convenient single-serve packets deliver perfectly precise portions of 20mg CBD that simply dissolve on the tongue—in cravable Mixed Berry, Cool Mint, and Lemon-Lime flavors. Together with our signature flavorless Caliper CBD dissolvable powder that can be added to any food or drink, your customers will love powerful CBD powder that fits into their life. No measuring, no mess, and always THC-free.

Get more info and a free sample today at trycaliper.com/nacs!

Note: These products are not available for sale, and the FDA maintains that the sale of such products is illegal under the Federal Food, Drug & Cosmetic Act.

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COMPANY

Essentia Water PRODUCT

Essentia Water

Pioneer & Leader of the Alkaline Water Category

Essentia Water—the pioneer and #1 leader of the alkaline water category in the United States –is also the #1 premium water growth brand and the #1 still water with U.S. Natural retailers.

In the first half of 2020 alone, the brand led 47% growth for the high pH and premium water categories*, clearly a must-have item for convenience store shoppers. Essentia’s proprietary ionization process transforms water from any source into supercharged ionized alkaline water with a pH of 9.5 or higher and a clean smooth taste. Maximize your profits by adding Essentia to your line up today. Contact sales@essentiawater.com or visit essentiawater.com. *IRI/SPINS/WFM P6 2020 Ending 6/14/2020.

COMPANY

Bitcoin Depot PRODUCT

BTM™ (Bitcoin ATM)

Fastest growing multi-cryptocurrency ATM network

Bitcoin Depot is a cryptocurrency ATM network based in Atlanta. They are the fastest growing multi-cryptocurrency ATM network in the world. Bitcoin Depot provides users with instant access to Bitcoin and other related assets at 800+ locations across the US. Their mission is to provide secure, convenient, and expedient entry into the cryptocurrency marketplace, while faithfully serving the needs of every individual customer. When hosting a Bitcoin Depot BTM™ you can expect: Free Bitcoin ATM, up to $1,000 a month, no setup or maintenance, 25% increase in cash volume, boost in foot traffic, and zero cost, zero risk. Interested in getting started? Please contact Franco Devivo, phone: (404) 219-6935 and email: franco@bitcoindepot.com.

CONVENIENCE.ORG

OCTOBER 2020 |

131

COMPANY

Van’s Kitchen PRODUCT

Van’s Kitchen 4-Pack Egg Rolls

Packaged Egg Rolls for Your Refrigerated Case

Van’s Kitchen, a woman and minority-owned and operated manufacturer, is now offering their 4-pack egg rolls to convenience stores. Suitable for multiple meal occasions these versatile offerings—meeting retailer and consumer demand for ethnic and in particular Asian flavors—are shipped frozen and sold from a refrigerated case to be microwaved for immediate consumption or taken home to heat and eat. Offered in four varieties—pork, chicken, orange chicken and vegetable—they come in a microwavable tray with sweet and sour sauce packets. Roller grill options include pork and chicken. For more information, visit vanskitchen.com and call (214) 630-0333.

COMPANY COMPANY

The Great Spirits Baking Company PRODUCT

Guinness, Captain Morgan, Baileys & Pallini Limoncello

New Spirit Flavor Infused Sliced Cakes

Our premium, individually wrapped 4-ounce cake slices are the perfect on-the-go indulgence. The globally recognized spirit brands, eye-catching packaging and amazing taste are sure to be a hit with your customers! No liquor license, no problem! Our cakes have less than 0.5% alcohol by volume and carry a 90-day ambient shelf life. For more information contact us at (844) 487-2253 and visit www.greatspiritsbakingcompany.com.

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BIC® Lighters PRODUCT

BIC® EZ Reach™

BIC® EZ Reach™ …

The Ultimate Lighter

The new BIC® EZ Reach™ lighter features a 1.45-inch extended wand that helps keep fingers further from the flame. Its body is the size of a pocket lighter, so it fits comfortably in your hands, making it perfect for lighting candles, grilling and everything in between. The new design lights at any angle. Every lighter is 100% safety tested and up to 50% More Lights vs. non-refillable wand pocket lighters.

BIC® EZ Reach™ is The Ultimate Lighter. Visit ShopBIC.com/newinquiry.

CONVENIENCE.ORG

COMPANY

iSEE Store Innovations and RPP Products Inc. PRODUCT

PumpLoc Refill Sanitizer Dispenser

Get Pumped: A Sanitizer Dispenser for Everywhere!

The new PumpLoc Refill dispenser from iSEE and RPP allows retailers to create a clean shopping experience with sanitizer dispensers that can go virtually anywhere in the store—from the front door to the cold vault to the front counter—secured by iSEE’s patented DisplayLoc suction technology. Even better, the PumpLoc can be easily refilled with the dual-purpose removable funnel and driptray, providing a more flexible option for retailers. PumpLoc Refill can be purchased on its own or as part of a bundle with RPP’s premium and readily available Premier Pure Hand Sanitizer. Contact iSEE or RPP for more information.

COMPANY

Calico Brands, Inc. PRODUCT

Scripto Hybrid™ Lighter ®

New! Scripto® Hybrid™ Lighter

Introducing the new Scripto® Hybrid™, the perfect crossover of a multi-purpose lighter and a pocket lighter. Conveniently sized to fit in the palm of your hand, the Scripto® Hybrid™ features a refillable tank, extended nozzle for safer lighting, push button ignition, and adjustable flame. It’s ideal for lighting barbecue grills, candles, fireplaces, and more.

Available in five colors. Increase sales and profits by adding the Scripto® Hybrid™ lighter to your front-end merchandising. For more information, visit www.calicobrands.com or call (800) 544-4837.

CONVENIENCE.ORG

COMPANY

Energizer Holdings Inc. PRODUCT

STP® Tire Fix

NEW STP Tire Fix

STP, one of America’s most trusted automotive brands now offers STP Tire Fix for peace of mind during a tire repair emergency. New STP Tire Fix seals and inflates flat tires instantly. A universal hose offers quick and easy repairs. It is engineered to seal punctures up to 1/4” wide and hold air for at least three days. Tire sensor safe. Available in 16 oz. and 20 oz. to fill standard and large size tires. EPA compliant formulations available for all 50 states. Contact Craig Terry at Craig.Terry@advantagesolutions.net.

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COMPANY

Nestlé Waters North America PRODUCT

Poland Spring® ORIGIN

Poland Spring® ORIGIN

Poland Spring® ORIGIN is 100% Natural Spring Water that is crafted by nature. Filtered through the 10,000-year-old glacial aquifers of Maine, Poland Spring® ORIGIN is rich with naturally occurring electrolytes for a crisp, refreshing taste like no other. It also comes in a bottle that is made from 100% recycled plastic* and is 100% recyclable, so that you feel good about every sip. Poland Spring® ORIGIN is available in a 900ml bottle that is ideal for hydrating throughout the day, with an ergonomic design that fits well in bags and cup holders. For more information, call (203) 531-4100 and visit www.polandspring.com/origin-premium-bottle. *Excluding cap and label

COMPANY

COMPANY

PRODUCT

PRODUCT

Explore Uncharted Flavors

Crisp Cranberries + Natural Energy

Ocean Spray Cranberries, Inc. Craveology™ Snack Mix with Cranberries

Explore a delicious, uniquely flavored dried fruit and nut snack mix that can be eaten as is or added to your favorite meal for a whole new taste experience. Sweet cranberries combined with salty nuts in three unique flavor combinations—Vanilla Chai, Spicy Coconut Curry, and Tuscan Herb. Craveology™ Snack Mix with Cranberries is packed with 6g of plant protein and no artificial colors, flavors, or preservatives. Available in a 2oz recyclable pack, perfect for on-the-go. Contact your Crossmark Representative and visit www.oceanspray.com.

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Ocean Spray Cranberries, Inc. Cran Energy™ Cranberry Energy Juice Drink

Enjoy the crisp, clean taste of real cranberries, now enhanced with caffeine from green tea extract. Each 12oz bottle contains 90 mg of caffeine*, delivering natural energy on-the-go. Made with real fruit juice and no added sugar, Cran Energy™ Juice drink is an excellent source of Vitamin C and B vitamins. The new 12oz offering is available in two great tasting flavors, Cranberry Pomegranate and Cranberry Raspberry. Contact your Crossmark Representative and visit www.oceanspray.com. *Caffeine content naturally occurring from green tea 90 mg/12 fl oz.

CONVENIENCE.ORG

COMPANY

Krispy Krunchy PRODUCT

Perfectly Cajun by Krispy Krunchy® Seasoning & Marinade

Krispy Krunchy® Introduces a Perfectly Cajun Seasoning

Perfectly Cajun by Krispy Krunchy® Seasoning and Marinade combines the unique flavor profile and signature coloring exclusive to Krispy Krunchy Chicken® in a convenient take-home package. Made using only the best ingredients, Perfectly Cajun invites consumers to shake the enjoyable Krispy Krunchy Chicken® flavoring onto their favorite dish or mix with water or butter and inject into the meat or seafood of their choice for a delicious Cajun-infused kitchen creation. For more information, please visit www.perfectlycajun.com or email info@krispykrunchy.com.

COMPANY

Heritage CBD PRODUCT

Heritage CBD Gummy

Naturally Delicious CBD Gummies

Heritage CBD Gummies feature a potent dose of CBD from hemp grown organically on family farms in Western Massachusetts. They are naturally delicious and packaged for on-the-go convenience as a 50mg one-count or 25mg four-count pouch. Available in four all-natural flavors—cherry, lemon, strawberry and tropical—Heritage CBD gummies contain absolutely no artificial colors, flavors, or ingredients. Tested throughout the manufacturing process for potency and purity, consumers can have complete confidence in Heritage CBD gummies.

Third-party test results for every batch are easily accessible online. For more information, call 1 (800) 674-3671 or visit www.HeritageCBD.com.

Note: These products are not available for sale, and the FDA maintains that the sale of such products is illegal under the Federal Food, Drug & Cosmetic Act. CONVENIENCE.ORG

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COMPANY

RX A.M. Oats, made by RXBAR PRODUCT

RX A.M. Oats Maple Oat Cup

Breakfast Worth Waking up for

Breakfast should be worth waking up for, so we made RX A.M. Oats. With 12 grams of protein, 6g fiber and simple ingredients like egg whites, fruit, nuts and gluten free oats, this instant oatmeal is something to look forward to each morning. Give your taste buds the wakeup call they deserve. Enjoy a true classic breakfast flavor with our Maple oatmeal. Also available in Apple Cinnamon, Chocolate and Vanilla Almond varieties. For more information, visit https://wholesale.rxbar.com/

COMPANY

Twang Partners PRODUCT

Twang Reserve Michelada Cocktail Mix

Add Incremental Sales to Beer with Grab & Go Michelada Mix

Twang has launched a premium all-in-one michelada mix that is the perfect solution for a michelada on the go. Simply add to beer! Our unique blend of seasonings to make the perfect michelada is in the 2.5 oz PET bottle. Twang Reserve Michelada Cocktail Mix is an all-natural michelada mix with no preservatives or corn syrup. The mix is gluten free and is made of 85% juice, organic Worcestershire sauce, real lime juice and ancho chilies. It is available in a counter display and contains 12-2.5 oz bottles. SRP is $1.99. Also available: 16 oz jars and 32 oz jars. For more information, visit https://www.twang.com/partner/ or call 1-800-950-8095.

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CONVENIENCE.ORG

COMPANY

Swedish Match PRODUCT

General Snus

America’s First Modified Risk Tobacco Product

To match customers’ unwavering standards for greatness, General Snus became the first tobacco product to receive a Modified Risk Tobacco Product Order from the FDA. Lead the way and elevate your tobacco selection. Stock General Snus today by contacting your Swedish Match representative. For more information, call (800) 367-3677 or visit www.generalsnus.com.

COMPANY

Sargento Foods Inc. COMPANY

StarKist Co.

PRODUCT

StarKist Creations Microwavables® Pouches

StarKist Creations Microwavables® TEAR. HEAT. GO!® If you love StarKist Creations®, you'll love our NEW StarKist Creations Microwavables® Pouches: wild caught tuna, combined with hearty grains and savory vegetables — all in a convenient microwavable pouch. Available in four delicious varieties: Tomato Basil, Spicy Rice & Beans, Latin Citrus and Thai Green Curry. When you’re hungry for lean protein and a little something extra, just tear open the pouch, enjoy as is, or heat in the microwave for 30 seconds — just tear, heat and go!® For more information, visit www.StarKist.com.

CONVENIENCE.ORG

PRODUCT

Sargento® Balanced Breaks® Cheese and Crackers

Introducing Sargento® Balanced Breaks® Cheese & Crackers

We've taken America's favorite snacking duo - cheese and crackers - to the next level by perfectly pairing Sargento® real, natural cheese with America's favorite crackers – RITZ® crackers*, WHEAT THINS® snacks* and TRISCUIT® crackers*. Each convenient, individually sized snack contains bite sized pieces of two cheese varieties, has at least 7 grams of protein and 170 calories or less to create a deliciously satisfying snack! Visit sargento.com/cstore, or contact your Sargento® Sales Representative or current Distributor Representative for more information. *RITZ, WHEAT THINS, AND TRISCUIT are trademarks of Mondelez International group, used under license.

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COMPANY

ClickIt Inc.

PRODUCT

NeverGone Network Video Recorders

NeverGone—Powered by ClickIt

ClickIt Inc. is proud to release its latest Video Management System platform designed to meet the demands of the most demanding retail environments. Designed and manufactured in the USA, NeverGone Network Video Recorders (NVR) are offered with an onboard (16) port POE switch, Gigabit NIC, HDMI, various HDD sizes, and ClickIt’s VMS software is utilized by major retailers the world over. You no longer have to settle for rebranded, off-shore VMS systems to meet aggressive budgets. NeverGone VMS systems deliver superior quality at budget conscious price points. For more information, visit www.clickitinc.com.

INDEX NEW TECHNOLOGY

NEW TO THE INDUSTRY

NAStar Inc..................................................................................124 The Pinnacle Company...........................................................125

Anchor Packaging.................................................................. 130 BIC® Lighters (14 characters)...............................................132 Bitcoin Depot.............................................................................131 Calico Brands Inc......................................................................133 Caliper CBD............................................................................... 130 ClickIt Inc....................................................................................138 Energizer Holdings Inc...........................................................133 Essentia Water...........................................................................131 The Great Spirits Baking Company....................................132 Heritage CBD.............................................................................135 iSEE Store Innovations and RPP Products Inc................133 J&J Snack Foods Corp............................................................128 Krispy Krunchy.........................................................................135 Lavi Industries...........................................................................129 Lucky Lotto Scratchers Inc...................................................129 Nestlé Waters North America..............................................134 Ocean Spray Cranberries Inc................................................134 Old World Industries...............................................................129 RX A.M. Oats, made by RXBAR............................................136 Sargento Foods Inc.................................................................137 Starkist Co..................................................................................137 Swedish Match..........................................................................137 Twang Partners........................................................................136 Van’s Kitchen.............................................................................132

NEW FLAVORS

The Coca-Cola Company.......................................................125 FIFCO USA..................................................................................126 The Hershey Company...........................................................126 Inter-Continental Cigar Coporation..................................125 Johnsonville...............................................................................127 HEALTH & WELLNESS

Allegiant Health........................................................................127 Bug Juice Internationals Inc.................................................127 NEW DESIGN

Premier Manufacturing..........................................................128 Tres Picosos...............................................................................128

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CONVENIENCE.ORG

The only convenience industry MBA

Virtual Live!

The NACS Master of Convenience designation acknowledges the hard work and investment NACS members have made in their personal leadership development. It is awarded to convenience retailers who have attended 3 or more of our 5 NACS Executive Education programs.

Questions?

Contact: Brandi Mauro NACS Education Program Manager (703) 518-4223

All 2020 courses are shifting to virtual live classrooms. With reduced tuition and no travel costs, thereâ&#x20AC;&#x2122;s never been a better time to take your leadership development to the next level!

Join the masters. convenience.org/NACSMaster

bmauro@convenience.org

GAS STATION GOURMET

Fried Chicken and Prayer

From potato cakes to wedding cakes, Achilles Shopping Center connects with its community.

BY AL HEBERT

I Achilles Shopping Center is a stopping point for locals in the small community of Guinea, Virginia, including the fishermen and oystermen who work the nearby waters at the mouth of the Chesapeake Bay.

HAPPILY EVER AFTER Sometimes, the local c-store has to be everything to everybody. If you’re looking for a wedding cake in Guinea, you don’t have to look further than Achilles Shopping Center. “I got into that 30 years ago as a fluke, and it’s just grown,” said Betty “Lou” Sammons, who manages the c-store. “I do six to 10 a year, and I bake baby shower cakes. I’ll cater weddings sometimes. It’s helped business to a degree. People come in to order a cake, and they buy something else.”

Although Sammon’s cakes are good, she can’t guarantee a long, happy marriage. “I did three cakes for the same lady—one for each of her three weddings.”

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n many convenience stores, customers enter each day, make a purchase and walk out.

Not much is said. Achilles Shopping Center, known by locals as Marvin's, is not one of those stores. Buckle up for attention, a quick chat and maybe even a prayer if you need one. Manager Betty “Lou” Sammons has created an atmosphere of community and care in this Gloucester County, Virginia, store.

“My store is the social hub of Guinea. I look out for everyone. I pray for them when they need it,” Sammons said. Guinea is a small community in Achilles, sandwiched between the York River and Mobjack Bay on Virginia’s Middle Peninsula. The store is the must-stop destination of the Guinea watermen who make their living in the local waters, fishing and harvesting oysters.

Sammons started working at the store in 1988 when it was owned by Marvin and Malvina Crane, who later sold it and eventually bought it back in 2016. The Cranes asked Sammons to return to train a manager, and as it turned out, she was the best person for the job. “I fell in love with the store all over again,” she said.

BRINGING HOME BACK TO COOKING When Sammons rejoined the store she upgraded the foodservice program, which offered sandwiches and fast food. “I added specials and more elaborate meals. Customers wanted more homemade stuff. I do a lot of Southern cooking,” Sammons explained.

Fried chicken is a popular menu item, and Sammons sticks to her grandmother’s recipe.

CONVENIENCE.ORG

First, she brines the raw chicken overnight to draw out the “blood from the bone” so the chicken “doesn’t have a store taste. Then I cut it up and put it in fresh salt water and soak it for an hour. I salt and pepper it and set it in the cooler overnight. That way the flavor goes through.”

Nothing goes to waste. Chicken backs and necks flavor other dishes, like chicken and dumplings or soup. Extra mashed potatoes become potato cakes. “I add diced onions and a little bit of flour to stick them together, scoop it out and put it on the grill and flatten them. You haven’t lived ‘til you’ve had them,” she said.

Sammons puts a lot of time into the daily specials. It takes two days to prepare a batch, and she often sells out by 2 o’clock.

Specials include homemade sides: potato salad, baked beans, a biscuit or bread pudding. “I make the baked beans a day ahead of time. That way the flavors go together. I let it sit overnight and bake it in the morning at 350 degrees until it’s bubbly and good,” she said.

Sammons takes to heart customer feedback. Raisins in bread pudding, as it turns out, draw strong reactions for and against. So Sammons prepares two pans of bread pudding—one with raisins and one without. “I sell a pan of each one, so, it’s a split decision on which is more popular,” she said. She also keeps in mind customers who need to eat on the go. “I make the bread pudding so guys can come by in their trucks, and they can pick it up with their fingers and eat it. It’s a thicker consistency.”

COPING WITH COVID “When they shut down the state in April, I worked 65 days without a day off. I wanted customers to know I would be there, and that’s made a big difference,” Sammons explained, adding, “My deli sales tripled. The kitchen is open, so they can see what I’m doing, and they feel safe.”

Virginia is in Phase 3, which means restaurants are open but not at full CONVENIENCE.ORG

When they shut down the state in April, I worked 65 days without a day off. I wanted customers to know I would be there.

Store manager Betty "Lou" Sammons (left) loves to share good food and conversation with her customers. Beanie Weanies is a favorite dish.

capacity. Many customers are cautious about entering public places, and Sammons wanted to make sure that people who want food can get it without begin inconvenienced. “We have older customers as well as people with small children,” she said. “I tell them we’ll bring it to their homes. We have a lot of elderly people in our community, and it’s not always safe for them to come out. If there’s anything I can do to make it safe for them, you know I’m going to do it.”

A lot of hardworking folks live in the Achilles-Guinea community. Sammons, often referred to as the “Mayor of Guinea,” has created an atmosphere that feels like home. “With such a small community, everyone knows everyone, and I’m related to a lot of people. If you help each other it makes things go nicer.

We care for each other down here. That makes a difference.”

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

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

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GLOBAL TRENDS

Weathering the Storm How EG Group fared COVID-19 and continues to thrive.

BY FIONA BRIGGS

EG Group, the international fuel, foodservice, grocery and merchandise operator, employs more than 50,000 people and operates 6,250 stores across Europe, Asia Pacific and the U.S.

E

G Group, an international fuel, foodservice, grocery and merchandise operator, has been able to gain a unique perspective on convenience retail, especially during the COVID-19 pandemic.

“COVID-19 was a curve ball that threw everyone,” said Ilyas Munshi, group commercial director, EG Group. “Rising to meet the current business environment is not without its challenges.”

EG Group, headquartered in Blackburn, U.K., has kept its ear to the ground across its different

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| OCTOBER 2020

markets, ensuring local teams and management are connected to government departments and public authorities and that each business follows respective guidance and protocols. Regular “one-to-ones” with country teams and weekly performance reviews with all country leads have been undertaken in order to stay on top of management protocols, share good practices and understand the needs of each market.

“The leadership sessions are opportunities for respective country leaders to absorb what’s CONVENIENCE.ORG

happening, even if there are things that have not gone well,” Munshi says.

One example Munshi mentions are government-funded programs that assist citizens if they have lost their jobs or are furloughed.

“Furlough programs, while extremely helpful in safeguarding employment, have created an environment where pockets of employees may see financial advantage in being at home rather than at work. The U.K.’s furlough job retention plan covers 80% of workers’ wages, for example, but those employees cannot do any work for an employer,” he says.

A huge push is needed to get people back into work, and governments will need to lead the way by making sure guidance is pitched at the right tone, according to Munshi.

The business has also focused on how it makes employees feel safe at work.

Across the business, there has been a significant investment in personal protective equipment (PPE), and social distancing guidelines have contributed to giving employees peace of mind.

Regular communication from the senior leadership team to all colleagues globally has been ramped up as well.

“We’ve been communicating important key messages at these moments,” Munshi says. “People are waking up each day and need to feel informed and motivated. Regular communication is critical.”

Falling oil prices along with lower fuel volumes have been worrying. However, EG Group has been able to ride the storm better than other operators as lower foot traffic has been augmented by a solid grocery and merchandise retail offer, which has proved attractive to consumers. “We have witnessed lower foot traffic across markets; however, fuel margins across our sector have held CONVENIENCE.ORG

NACS GLOBAL CALENDAR NOVEMBER 2DECEMBER 4

Crack the Code Experience www.convenience.org/crackthecode

MARCH 2-4, 2021

NACS Convenience Summit Asia Bangkok, Thailand www.convenience.org/csa Ilyas Munshi, group commercial director, EG Group, says foot traffic is down, but spend is up.

JUNE 1-3, 2021

NACS Convenience Summit Europe Dublin, Ireland www.convenience.org/cse

stable, and that has allowed retailers to keep going,” Munshi says.

In convenience retail meanwhile, average basket spends on grocery and merchandise have increased significantly as consumers, frustrated by lines and out of stocks at supermarkets, find the convenience retail channel a more viable option.

Munshi reports that one customer is now spending on average as much as what two to three customers spent on grocery and merchandise prior to COVID-19.

FOODSERVICE IN THE TIME OF COVID-19 For the U.K. market, March 23 was a monumental day, as EG Group’s foodservice brand partners decided to switch off the lights and networks. Partner businesses followed suit, furloughing staff and closing the respective foodservice networks.

Now, as the EG Group enters into a reopening phase, it is working with brand partners like KFC, Starbucks, Subway and Burger King to manage their supply chains, as well as ensuring consumers have confidence that EG Group has their wellbeing in mind, and foodservice standards are strictly observed to mitigate COVID-19 concerns.

OCTOBER 2020 |

143

GLOBAL TRENDS

In such times of adversity, creativity flourishes and new growth opportunities are waiting to be realized.

Continental Europe is a different scenario, where EG Group’s proprietary foodservice offers, alongside fuel stations in the Netherlands and France, for example, stayed open. Menu options were reduced, and operating hours changed, but sites had to maintain health and safety standards around cleanliness and sanitation so that foodservice could continue.

Back in the U.K., EG Group has moved from offering delivery-only to drivethrus, with long lines at newly reopened KFC and Starbucks being a testament to the latent demand from when people have been cooped up at home.

According to Munshi, the key is managing demand with a reduced menu and ensuring items don’t run out. Training has also been vital to ensure employees

adhere to new rules and effectively communicate how customers access the product.

The big headline in foodservice in the U.S. was that the company did not see a dip in consumers coming to the store, but drive-thru channels jumped from 75% to 90-95% on average, according to Munshi.

“And in markets where we stayed open, foodservice has not gone down. People are ordering more because they want an alternative to making food at home,” he adds.

SUPPORT FOR EMERGENCY SERVICES Around the world, EG Group has stepped in to support first responders and healthcare workers, not just by staying open but also by providing free coffee.

ADD AN APP EG Group is expanding its digital footprint with the launch of an innovative retail app, EG Club.

The EG Club app will enable customers to access fuel, foodservice, grocery and merchandise in a single digital retail platform. EG Club will be launched in Australia first, where shoppers at its 540 locations will be incentivized with discounts and offers on fuel, grocery and merchandise. Foodservice functionality will be introduced soon.

Digital investment was already on the radar prior to COVID-19, when EG Group was serving 23 million customers internationally every week. While there is confidence those numbers will return, EG Group acknowledges that a large group of consumers will choose to access retail businesses digitally.

Ilyas Munshi, group commercial director, EG Group, says having an effective retail app investment strategy like EG Club fits well with the high foot traffic of the gas station and c-store retail environment. Digital app investment will provide a more effective return on investment than other

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| OCTOBER 2020

technologies such as scan-and-go or high-tech, cashier-less solutions where shrinkage is still a massive concern.

In tandem with the introduction of the new retail app, EG Group envisions radical changes in site design and usage, with multi-lane drive-thrus becoming more prevalent.

“It’s a little too early to say how sites will look, but for foodservice prior to COVID-19 there was already a seismic move toward customers using drive-thru,” Munshi says. Drive-thru usage has grown even more due to COVID-19. “A few years ago, everyone underestimated the potential of drive-thru and now it’s a given,” he says.

“What will be interesting is how foodservice seating configurations will be considered, but what we do know is that we have to effectively invest in digital and that for a certain segment of the customer base, digital access and delivery will now need to be at the forefront of every convenience retailer’s investment thinking and commercial strategy.”

CONVENIENCE.ORG

EG Group donated £350,000 to the U.K. National Health Service and has supported community organizations in its other global markets. EG Group recently opened a new global headquarters in Blackburn and is working with Starbucks and other brand partners to manage their supply chains and alleviate customer concerns about sanitation.

The company’s commitment to frontline health included a £350,000 (U.S. $461,632) donation to the National Health Service in the United Kingdom, which helped to secure warehouse space and products for a food hub operated

by Blackburn with Darwen Borough Council. Elsewhere in the country, the company has supported a number of community initiatives.

In Australia prior to COVID-19, the country was facing huge environmental challenges due to the mass devastation from bushfires and severe flooding.

The local EG Group team was already supporting local communities, and this support work has been extended during the pandemic, Munshi reports.

In the Netherlands, EG Group is working with Esso to give out 50m liters of free diesel to the Red Cross and food banks.

Vehicles from these support organizations can fill up with diesel at Esso-branded fuel stations of EG Group in the Rotterdam, The Hague, Breda, Tilburg and Utrecht areas.

CONVENIENCE.ORG

COVID-19 may prevent overseas travel for now, but it has not stopped the business’s ability to engage and get its key messages across.

“With over 50,000 employees across the world, it’s important to have a strong business to support employees and their families and the communities they live in as well. We are very proud of our local teams and number of lives we are touching on a daily basis,” Munshi states.

“In such times of adversity, creativity flourishes and new growth opportunities are waiting to be realized,” he adds.

“A lot of people will be thinking of a different world and how they position themselves in that world, as individuals, businesses or brands. The adversity creates that environment.”

This article was reprinted with permission and modifications from Global C-Store Focus, the monthly newsletter from U.K.-based Insight; www.insightresearch.co.uk.

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

OCTOBER 2020 |

145

CATEGORY CLOSE-UP / BEER

Roll Out the Barrel

Good times return to the beer category, driven by trading up and pantry loading.

T

he beer category is enjoying a bit of a resurgence in convenience stores these days, and retailers and marketers are feeling optimistic that the channel is well poised for continued advancement. With gains in average per-store sales and gross profits last year, beer’s rebound is being maintained so far in 2020, despite slowed

JUST THE FACTS Margins for beer improved in 2019, hitting 18.98% and yielding $37,009 gross profit dollars per store, according to 2019 NACS State of the Industry data.

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| OCTOBER 2020

store traffic during the first few months of the COVID-19 pandemic.

“Prior to 2020, beer growth in convenience was typically slow,” remarked Jayme Gough, NACS analyst, perhaps due, in part, to shifting consumer preferences. “But beer growth in 2019 was strong,” Gough said, pointing to a 2% increase in average store sales to $194,971, from $191,064 in 2018.

Beer’s gross margin contribution also improved last year, posting one of the best gains of leading categories.

“Flavored malt beverages, specifically hard seltzers, had a lot to do with it,” she noted, as well as solid performances from other subcategories, such as imports and craft beer.

Todd Camasar, director, category development, at Heineken USA, reported that the beer category’s improved performance in c-stores last year impacted other trade channels. “For the beer category in 2019, the convenience channel saw an increase in conversion rate and gained 51 basis points of share of trips from competitive channels,” Camasar said. He and other marketers cited the impact that growing demand for highend brands is having on category sales.

“Premiumization and the health and wellness mindset have been driving CONVENIENCE.ORG

iStock.com/mphillips007

BY TERRI ALLAN

Industry Sales % of In-Store Sales 2018

2019

6.25% 6.37%

% of Stores Selling

Avg. Sales/Store 2018

2018

2019

2019

83.8% 84.9%

$191,064 $194,971

iStock.com/Chinnasorn Pangcharoen

Source: NACS State of the Industry Report of 2019 Data

growth in all beverages and within beer for a few years now,” explained Sara Hillstrom, senior director, category development, at Anheuser-Busch.

“These trends are and will continue to drive growth for the total category,” she continued, as new consumers seek out seltzers and other premium brands.

Indeed, according to the NACS State of the Industry Report of 2019 Data, average per-store gross profit dollars for the category grew 3.1% last year to $37,009. “Beer remained a top 10 in-store category and ranked seventh in gross margin contribution and third in sales, excluding cigarettes,” noted Gough.

Beer’s share of in-store sales increased to 6.37% last year from 6.25% in 2018.

Moreover, both purchase frequency and units per trip for beer in c-stores increased last year, Jenny Odom, vice president, national accounts, at Constellation Brands’ beer division, reported. Citing IRI data, Odom attributed the gains to increased sales of single-serve beers, new drinking occasions and product and packaging innovation.

SELTZERS SURGE Hard seltzers are a big reason for beer’s resurgence. The flavored malt beverages, led by the White Claw and CONVENIENCE.ORG

Truly brands, are seeing skyrocketing demand. Convenience retailers report that the emerging segment is helping to lift overall category sales. Maurine DesJardine, director of marketing at Pester Marketing, which operates the Alta stores, said the chain’s recent beer cooler reset devoted more space to hard seltzers. “White Claw is now our No. 3 product in the beer category,” she remarked. Meghann Eaton, category manager at VERC Enterprises, which operates 12 stores that sell beer and wine in Massachusetts and New Hampshire, commented, “Seltzer is crushing it and keeps climbing the hotter the weather gets.” Seltzer’s strong performance has lifted overall domestic beer sales at VERC’s stores from flat or

C-store operators are increasingly stocking the craft brews that work in their markets, including craft single serves.

THE POWER OF CSX DATA CSX, the engine behind category metrics and NACS State of the Industry data, provides current and customizable tools for financial and operational reporting and analysis in the convenience industry. Retailers can measure their company by any of the myriad metrics generated via our live database. Contact Chris Rapanick at (703) 518–4253 or crapanick@convenience.org for a complimentary executive walkthrough.

OCTOBER 2020 |

147

CATEGORY CLOSE-UP / BEER

PER STORE, PER MONTH SALES

2017 $16,490

$17,000

2018

2019

$16,423

$16,000 $15,029 $15,000 $14,000 $13,000 $12,000 $11,000 $10,000 JAN

FEB

MAR

APR

MAY

JUN

JUL

AUG

SEP

OCT

NOV

DEC

Source: CSX; csxllc.com

declining to double-digit growth, Eaton said.

Foxtrot Markets, with 10 stores in Illinois and Texas and plans to add two locations in Washington, D.C., also is seeing strong demand for high-end products including hard seltzers, hard kombuchas and craft brews. Dylan Melvin, beverage

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

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

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| OCTOBER 2020

director, noted that the chain will often work directly with self-distributing craft brewers to showcase their latest releases.

“We try to remain nimble so that we can be relevant to our consumers when it comes to variety demands,” he remarked.

In fact, Foxtrot has even collaborated on an exclusive brew—a hazy pale ale—with Illinois’s Narz Community Brewing, a move that’s similar to other partnerships between c-stores—such as Kwik Trip, Sheetz and Wawa—and craft brewers.

David Walker, co-founder at Firestone Walker Brewing, says c-store operators are increasingly stocking the craft brews that work in their markets, including craft single serves, and his Paso Robles, California-based company is benefiting.

The brewery’s 805 Blonde Ale 24-ounce CONVENIENCE.ORG

CATEGORY CLOSE-UP / BEER

Subcategory Performance % of Sales

BEER

Avg. Sales/Store

Avg. GP$/Store

Gross Margin %

2018

2019

2018

2019

2018

2019

2018

2019

Premium

32.3%

34.0%

$61,653

$66,197

$9,982

$10,584

19.72%

19.68%

Imports

17.1%

16.8%

$32,699

$32,734

$6,826

$6,815

16.19%

15.99%

Budget

17.6%

15.4%

$33,624

$30,115

$5,605

$5,042

18.21%

19.01%

Flavored Malt

9.1%

11.0%

$17,411

$21,396

$4,217

$5,266

16.67%

16.74%

Super Premium

8.2%

8.2%

$15,590

$16,045

$3,074

$3,158

20.87%

20.82%

Microbrews/Craft

6.1%

6.9%

$11,619

$13,518

$2,700

$3,190

23.24%

23.60%

Popular

7.8%

5.9%

$14,989

$11,446

$2,730

$2,176

22.03%

22.09%

Malt Liquor

1.8%

1.7%

$3,370

$3,396

$742

$750

23.49%

22.42%

Non Alcoholic Beer

0.1%

0.1%

$109

$124

$26

$28

24.22%

24.61%

100.0%

100.0%

$191,064

$194,971

$35,901

$37,009

18.79%

18.98%

TOTAL

can has emerged as the top-selling craft single serve in the state, Walker reported, and he’s targeting continued growth. “Like many breweries, we’ve applied more focus on the overall channel with increased chain-call coverage,” he explained.

Seltzer is crushing it and keeps climbing the hotter the weather gets.

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| OCTOBER 2020

THE COVID FACTOR While the coronavirus pandemic has challenged many areas of store operations, including store traffic in the spring, the beer category, it seems, is benefitting.

Gough conceded that although slowed traffic may have impacted unit sales of beer, that’s been countered by consumer movement toward larger package sizes, born of the pantry-loading phenomenon, and resulting in higher rings. “Products like tobacco, beer and wine have performed well in c-stores during the pandemic,” she said.

Vallari Ajgaonkar, senior manager, category management at Heineken USA, agreed. “We used to think of high-unit,

low-spend singles as the lifeblood of convenience beer sales,” she remarked.

“COVID-19 is now showing us that shoppers who go to c-stores can easily be convinced to switch to larger pack sizes.” Constellation Brands’ Odom added that recent changes in consumer shopping patterns can bode well for c-stores and the beer category. “While it’s true many shoppers are trying to make fewer in-store trips overall to reduce exposure to the virus, many have actually expanded their repertoire of retailers visited since COVID began, including c-stores.”

Convenience retailers confirm that beer sales have been strong this year as volume normally sold in bars and restaurants has shifted to off-premise channels.

Beer sales at Alta were up 26% through June, DesJardine reported, thanks to pantry loading and the ability of the chain’s Colorado stores to now sell fullstrength beer. At VERC Enterprises, beer sales were trending up 25% early this CONVENIENCE.ORG

iStock.com/melanjurga

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

Source: NACS State of the Industry Report of 2019 Data

iStock.com/micropic

year, Eaton noted, but once the pandemic hit, sales really surged. “Sometimes, we were the only beer and wine store open in town,” the retailer recounted, a situation that attracted new customers. “Our beer sales grew 60% in May alone,” she said.

In addition to larger pack sizes, the pandemic also has shined a light on the opportunity that beer offers in the e-commerce and customer delivery landscape. At Foxtrot, where e-commerce has been part of its fabric since its founding seven years ago, half of its beer sales are online. “Since the outbreak of COVID, delivery has increased exponentially,” Melvin remarked. “It’s impacted our overall beer sales by driving packages like multi-packs and our exclusive bundles.” Odom believes c-stores must move to e-commerce. “The need for no-contact pickup and delivery has become table-stakes for most retailers to remain relevant,” she said. “C-stores are primed to capitalize with e-commerce due to their younger and more multicultural consumer base.”

PEDAL TO THE METAL Effective merchandising and marketing tactics are also key to maximizing beer’s potential. “Convenience chain stores have become much more effective at delivering the right packages to the consumer,” said Colin Callahan, vice president, sales and marketing, at D.G. Yuengling & Son. “Many of our convenience channel customers have worked on strategies to achieve a balanced approach between core brands and new innovations. They’ve found ways to promote power brands and new items through suction cups, floor displays and more to drive consumer trial, especially with single-serve options.” Among the tactics employed by Foxtrot, according to Melvin, are beer release and Oktoberfest events, digital and social media support and most recently, a virtual beer tasting.

CONVENIENCE.ORG

COVID-19 is now showing us that shoppers who go to c-stores can easily be convinced to switch to larger pack sizes.

Beer marketers advise that while beer sales may have turned the corner in c-stores, it’s no time for retailers to go on autopilot when managing the category.

“Although this year is truly unprecedented, it did nothing to change the long-term trend of consumer transition to the high end,” Odom said. “In fact, it accelerated it.” Heineken USA’s Todd added, “Shifting share of shelf toward larger packs and high-end segments, strategically shifting display priorities and staying tuned in to innovation and better-for-you trends are all best practices moving forward.”

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.

OCTOBER 2020 |

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C R A C K T H E C O D E â&#x20AC;Ś

WHEREV YOU ARE Access starts at

$295 Register before September 28th to save $300 on your pass.

NACS is hosting a five-week, digital experience and curated marketplace (Nov. 2 - Dec. 4) that features 24/7 access to forward looking ideas, innovative new products and strategic networking opportunities.

This cutting-edge virtual experience is designed to deliver key solutions and strategies to convenience professionals around the world through a dynamic online event that leverages the strengths and benefits of a digital venue.

Access the insights, products, and connections you need to fuel your business – at your convenience.

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B2B: Convenience Catalyst Top-to-top invitation-only meetings between retailers and suppliers; facilitated by NACS; exclusive, invitation only event.

REGISTER NOW convenience.org/accessCTCE

Cool New Products Search for and interact with new products, services and equipment from trusted suppliers; organized in the categories you are already used to shopping at the NACS Show: Facility Operations; Foodservice; Fuel Equipment & Services; Merchandise, Candy & Snacks; Technology

Hundreds of Interactive Product Showcases — Connect to Big-name Brands and New Exhibitors Shop on your schedule, view supplier profiles, unique showrooms and digital catalogs.

Security features allow you to only connect with suppliers you request or approve.

Appointment-setting, virtual meetings/demos, requests for samples and more, all included to help you get business done.

CATEGORY CLOSE-UP / BEER

ADVERTISER INDEX Contact Information

Page

Contact Information

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

Page

Contact Information

Page

A ltria Group Distribution Company................ Inside Front Cover AGDCTradeRelations@Altria.com www.altria.com

Essentia Water LLC..................................................................................67 (877) 293-2239 sales@essentiawater.com www.essentiawater.com

Old World Industries Inc....................................................................... 109 (847) 443-0703 akloep@owi.com

B IC Corporation.................................................. 3 & Bellyband Ad www.shopBIC.com/newinquiry www.biclighter.com

Hatco Corporation...................................................................................89 www.hatcocorp.com

Placon..................................................................................................... 60 (800) 541-1535 www.placon.com

Bobâ&#x20AC;&#x2122;s Red Mill..........................................................................................59 www.bobsredmill.com

Heritage CBD......................................................................................... 107 (800) 674-3671 www.HeritageCBD.com

Premier Manufacturing Inc................................................................5, 65 www.gopremier.com

The Boston Beer Company .................................................................. 149. www.trulyhardseltzer.com B unn-O-Matic Corporation.........................................................47 www.bunn.com/fast-cup C ash Depot................................................................................... 15. .

(800) 776-8834 sales@cdlatm.com www.cdlatm.com Charleys Philly Steaks............................................................................123 www.charleys.com

T he Hershey Company................................................. Back Cover www.hersheysolutions.com H unt Brothers Pizza.................................................................... 91 (800) 453-3675 www.huntbrotherspizza.com/nacs J&J Snack Foods Corp............................................................................. 113 (800) 989-9534, x6140 www.jjsnackfoodservice.com Johnsonville Sausage LLC....................................................................... 41 www.johnsonville.com

Cheyenne International LLC....................................................................63 (866) 254-6975 contactus@cheyenneintl.com www.cheyenneintl.com

J UUL......................................................... 32-33, Inside Back Cover retailers@juul.com

Christy & Main Inc. .................................................................................122 (800) 382-5394 andy@christyandmain.com

Lavi Industries......................................................................................... 37 (800) 624-6225 sales@lavi.com www.lavi.com/store-fixtures

CHS Inc. (Cenex)...................................................................................... 77 www.cenex.com/businessopportunities

L iggett Vector Brands Inc...........................................................27 (877) 415-4100 www.liggettvectorbrands.com

ClickIt Inc.................................................................................................97 www.clickitinc.com T he Coca-Cola Company...............................................................7 www.coca-colacompany.com

L iving Essentials LLC (5-hour ENERGY).......................................31 (866) 960-1700 www.5HErewards.com

Cool New Products Guide...............................................................124-138 www.convenience.org/coolnewproducts

Lucky Scratcher ...................................................................................... 61 (716) 333-5223 www.luckylotteryscratcher.com

Conexxus.................................................................................................83 www.conexxus.org/2020sucks

M ARS Wrigley ............................................................................45 www.mars.com

Core-Mark International Inc........................................................51 www.core-mark.com

NACS Convenience Matters.......................................................................4 www.conveniencematters.org

Crown Imports LLC (Corona Seltzer).....................................................155 www.cbrands.com

NACS Crack the Code Experience....................................................152-153 www.convenience.org/crackthecode

DMF Bait Company..................................................................................69 (800) 332-2248 orders@dmfbait.com www.dmfbait.com

NACS Foundation.......................................................................................6 www.conveniencecares.org

Dover Wayne Fueling Systems....................................................71 www.doverfuelingsolutions.com/AnthemUX Energizer Holdings Inc........................................................................... 115 www.energizerholdings.com

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| OCTOBER 2020

S mithfield Foods....................................................................... 103 www.smithfieldfoods.com StarKist Co..............................................................................................101 www.starkist.com S wedish Match North America (Game)......................................49 (800) 367-3677 www.smna.com S wedish Match North America (General SNUS)......................... 81 (800) 367-3677 www.smna.com S wedish Match North America (White Owl) .............................57. ..

(800) 367-3677 www.smna.com S wedish Match North America (Zyn)..........................................17 (800) 367-3677 www.smna.com S wisher International Inc.............................................9, 10-11, 39 (800) 874-9720 Trion Industries Inc. .............................................................................. 19 (800) 444-4665 info@triononline.com www.triononline.com Warren Rogers Associates Inc................................................................75 www.warrenrogers.com

NACS Innovation Leadership Program..................................................30 www.convenience.org/ILP NACS Masters of Convenience...............................................................139 www.convenience.org/NACSExecEd Ocean Spray Cranberries Inc................................................................. 117 www.oceanspray.com

CONVENIENCE.ORG

Another Way To

Find Your Beach .

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Convenient Music

Bear-y Tasty Some bears need their junk food fix, too. A woman captured on video a bear crawling into a California grocery store and leaving with a bag of Tostitos chips in its mouth. Before she started recording, the woman nearly ran into the bear, which was hanging out by a trash can. She then started filming the bear eating garbage from a safe distance. The bear then strolled into the grocery store, grabbed the tortilla chips, clearly its preferred comfort food, and walked out.

Luckily, no people or bears were harmed in the incident.

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| OCTOBER 2020

A recent week’s Billboard Top 10 featured a song that is also the name of a convenience store chain (“Come & Go”), even if it’s spelled differently. So we had to ask—is this the highest charting song with a convenience store company in the title? Let’s take a look.

• Wawa: Again, not spelled the same, but George Harrison’s first album had the radio hit “Wah-Wah.” And a lesser-known band Young-Holt Unlimited had the song “Wah-Wah Man” in the 1970s.

• Sheetz: Trey Songz has the song “The Sheets.” While it’s not exactly the store name, he did “Sheetz-ify” his name with a “z” at the end.

• K wik Trip/QuikTrip: Noted writer Shel Silverstein, who penned a lot of well-known songs for Johnny Cash and Dr. Hook, among others, has a song called “Quick Trip,” but it is only 13 seconds long. However, there is a rapper named Quicktrip, who has a bunch of songs.

• Speedway: There are a few interesting songs, including Elvis Presley’s “Speedway,” the title track of his 1968 movie, and Morrissey’s “Speedway.”

• Pilot: Elton John’s first single was “Take Me to the Pilot,” which sounds like a great ad campaign! There is also a band from the 1970s named Pilot who hit No. 5 with the song “Magic.” If you think you’ve never heard it, you probably have. The chorus goes, “Oh, ho, ho, it’s magic, you know.”

• Casey’s: Former Savage Garden frontman Darren Hayes released the song “Casey.” The band City & Color released “Casey’s Song.”

• RaceTrac: The English rock band Bad Company had a 1982 song called “Racetrack.”

• 7-Eleven: Beyoncé’s song “7/11” surprisingly only peaked at No. 13.

CONVENIENCE.ORG

Make up lost revenue with the #1 Vapor Brand.

11%

Of revenue in the vapor category comes from disposables.

75 %

Of disposables are at risk of being removed from the market by the FDA.

$6M

$6 Million in revenue will be lost from the disposables market.

$6 million in revenue per week will be lost with disposables being removed from the market by order of the FDA.1 The vapor brand that tops profitability, share, sales per week and units per week can help your stores recover potential losses.2 Source: 13 Weeks Ending 7/18/2020.

2020 1. Nielsen; Total US Convenience; Global â&#x20AC;&#x201D; Brand Guidelines 2. Nielsen AOD, $ and Unit Sales and ACV % > 1.0%, L13W weeks ending 05/23/2020.

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