NACS Magazine September 2020

convenience.org | SEPTEMBER 2020

BREAKING THE BANK A shortage of coins has left retailers hunting for change.

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8/18/2020 10:08:21 PM

ANGRY WORDS

How to Defuse Mask Disputes

THE GOOD JOBS STRATEGY Thrive by Investing in Employees

convenience.org | SEPTEMBER 2020

BREAKING THE BANK A shortage of coins has left retailers hunting for change.

ANGRY WORDS

How to Defuse Mask Disputes

THE GOOD JOBS STRATEGY Thrive by Investing in Employees

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

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

TAKE SURVEY CLICK HERE

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

SEPTEMBER 2020

60

Heroes are extraordinary people like you, who— by their own actions—choose not to be ordinary.

68

This year, 18 retailers joined the NACS Foundation’s 24/7 Day to celebrate frontline workers.

The World Needs Heroes

Thanking Everyday Heroes

32

Change Management Amid a national coin shortage, the convenience industry once again proves adept at innovation.

40

Thrive by Creating Good Jobs

50

The Good Jobs Strategy encourages investing in employees and making key operational choices to decrease turnover, improve service and boost your bottom line.

What’s New?

58

Merchandise innovation brings customers back and propels impulse sales.

Important 2020 NACS Show Update

The in-person NACS Show is cancelled, but a new virtual experience is coming.

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

76 78

Long-Term Value A Q&A with GreenPrint.

Help Wanted

Two leading retailers share how they attract, hire and retain successful employees.

84 86

Safe Guidance

A Q&A with Lavi Industries.

Ghost Kitchens

96

A not-so-scary solution to broaden the reach of foodservice.

Angry Words

More than ever, workers need training to handle customers who refuse to wear face masks.

100 Trusted Connections 102 We Card: A Trusted Resource A Q&A with SageNet.

A quarter-century after its launch, the ageverification program continues to train and educate.

106 Call to Service

The COVID-19 pandemic brings full-service fueling out of retirement.

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

SEPTEMBER 2020 |

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SEPTEMBER 2020

Because of high margins, ice cream is a good profit generator in the summer months.

We do our best to accommodate customer requests because our customers come first.

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IDEAS 2 GO | P.26

08 From the Editor 12 NACS News 18 Good Work 20 Inside Washington

NACS advocates for the convenience store industry in the pending stimulus bill; Dakota Access Pipeline remains open—for now.

26 Ideas 2 Go

Dia’s Market bills itself as a micro-groceryconvenience store with a curated collection of products.

114 Gas Station Gourmet

For locals angling for snakehead or scrapple, fishing gear or mail, Woolford Store is the spot.

116 Global Trends

In the pandemic’s wake, retailers are increasingly investing in technology to deliver autonomous and contactless service.

120 Category Close-Up

Ice cream/frozen novelties is a category that sells itself.

128 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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VOLUME 19, ISSUE 9

SEPTEMBER 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 CONTRIBUTING WRITERS Terri Allan, Fiona Briggs, Jennifer Bulat, Sarah Hamaker, Al Hebert, Bruce Horovitz, Samantha Oller, Stephenie Overman, Pat Pape, 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

CONVENIENCE.ORG 7/14/2020 2:24:50 PM 8/18/2020 10:30:18 AM

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

EXPERIENCE THE FREEDOM ®

GOPREMIER.COM 800-272-8656

CONVENIENCE.ORG

WHAT’S ONLINE | SEPTEMBER 2020

When Disaster Strikes The NACS Convenience Store Emergency Planning and Job Aid resources help convenience stores identify and enhance their resiliency as they plan, prepare and recover from a disaster.

NACS offers two versions of the program—one that’s free to anyone and one that’s available for NACS members only. The free edition has the Emergency Planning Guide and the Emergency Job Aids and allows for customization by removing any Job Aid pages that aren’t applicable to that particular company. The NACS members-only version gives companies a wider ability to customize, such as adding the store name and logo to the Job Aids and personalizing individual Job Aids to fit the company or even single locations within a chain.

Watch the six preparedness videos, or download the guides at www.convenience.org/disasterplan. There’s a free mobile app, too, with all of the job aids and videos, so employees can easily access them on their phones in an emergency. Go to www.saberspace.org/nacs-app.html and complete the brief enrollment, then download the app on your Apple or Android mobile device.

Convenience Store Emergency Planning and Job Aid Evaluation

Listen Up!

Whether it’s for food, fuel, drinks or snacks, about half of the U.S. population shops at a convenience store every day.

On Convenience Matters, a weekly podcast brought to you

by NACS, we talk about what we see at stores and what the future may hold for our industry.

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

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You’ll enjoy this podcast if you work in retail, supply products or services, are fascinated by the auto industry and the future of fueling and mobility or simply love convenience. Tune in each week to find out what’s happening. Recent episodes include:

#242

#242 Protect Card Payments at the Gas Pump #240 A Conversation About Going Plastic-Free #237 Retailer Decision-Making for EVs #235 Category Close-up: Packaged Beverages Check out www.conveniencematters.com to hear the current and past episodes and learn about the show and hosts.

CONVENIENCE.ORG

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

Why 5-hour ENERGY ? ®

The original energy shot; led the creation of a billion-dollar category(i) Often imitated, never duplicated #1 energy shot for the last 10 years(ii) $868+ million dollars in retail sales(iii) Top 10 selling items and 19 of the top 20 items in convenience channel(iv) Highest $ sales per linear inch amongst national brands at the front end(v) Berry Extra Strength 5-hour ENERGY is the #1 energy shot item in convenience delivering $98 million in retail sales(iv)

On-trend flavor innovation Tropical Burst Extra Strength 5-hour ENERGY ranks #12 in sales Coming in early 2021: Watermelon Extra Strength 5-hour ENERGY

Individual results may vary. See www.5-hourEnergy.com for more details. Regular Strength 5-hour ENERGY® and 5-hourTM TEA shots contain caffeine comparable to a cup of the leading premium coffee. Extra Strength 5-hour ENERGY® shots contain caffeine comparable to 12 ounces of the leading premium coffee. Limit caffeine products to avoid nervousness, sleeplessness, and occasional rapid heartbeat. Individual results may vary.

See www.5hourenergy.com for more details. ©2020 Living Essentials Marketing, LLC. All rights reserved. Sources: (i)Mintel. (ii)IRI & Nielsen. (iii) US-XAOC INCL CON 52 WE 12/28/19. (iv)US-CON 52 WE 07/11/20 - Sales by Item. (v)Convenience IRI retail audit, Nielsen 52 weeks ending 5/18/19 and NACS margin report.

FROM THE EDITOR

Start With Heart Kim Stewart Editor-In-Chief

Employees need training on how to defuse contentious situations, especially when it comes to enforcing face mask rules.

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| SEPTEMBER 2020

O

n a late-summer stop at a Wawa near Fredericksburg, Virginia, two signs affixed to the plexiglass shield separating me from the friendly clerk behind the counter bore out dueling storylines of the pandemic. “Please do not enter this store without a mask or face covering” was taped to the top of the barrier. Below, a plea: “We need coins.

No fees for exchanging coins with us!

Requesting pennies, nickels, dimes and quarters.” To sweeten the pitch, the store offered a free coffee, fountain soda, ICEE or Shorti, depending on the amount of coin brought in. (You can see how other retailers are handling the coin shortage in our cover story, “Change Management.”)

The associate said his regular customers were helping them out, and things were improving. I asked if anyone had given him grief about the situation, and he shared that a few customers had grumbled when he couldn’t make change.

“There’s a lot of conspiracy theories out there,” he said, mainly about a coming cashless society. “The worst was when a woman threw a 40-ounce cup of soda in my face” and yelled about cash being legal tender, he said.

His story stunned me, and regretfully, I didn’t follow up to find out how it had played out. For convenience retailers who see half of America walk into their stores every day, I suspect that it’s likely one of the tamer conflicts their teams face.

In this time when everyone’s nerves seem to be frayed, empathy can go a long way. A colleague recently recommended the book “Crucial Conversations: Tools for Talking When Stakes Are High” by Kerry Patterson et al. In any high-stakes conversation, the authors say “Skilled people start with heart. That is, they begin high-risk discussions with the

right motives, and they stay focused no matter what happens.” When adrenaline starts to kick in, ask yourself: What do I want for myself? What do I want for others? What do I want for the relationship? It’s good advice when we get pulled into difficult conversations. At the store level, employees need training on how to defuse contentious situations, especially when it comes to enforcing face mask rules. In “Angry Words,” two security experts offer practical advice for handling volatile situations.

The most successful companies invest in a rigorous hiring, onboarding and training process to help staff build rewarding careers in the industry. In “Help Wanted,” QuikTrip and VERC Enterprises share how they attract and hire successful employees. NACS recently partnered with The Good Jobs Institute to launch the Good Jobs Calculator to help convenience retailers forecast the benefits that would come by increasing employee wages and implementing a Good Jobs system (see more in “Thrive by Creating Good Jobs”).

Making people feel valued is at the core of what this industry does, and there’s no doubt NACS members have big hearts. To that end, the NACS Foundation is celebrating the tremendous response to the second annual 24/7 Day. In “Thanking Everyday Heroes,” you can read about the 18 retailers, along with support from GSTV, that honored first responders, medical personnel and disaster relief volunteers in a variety of ways, while raising funds for the American Red Cross. I’m proud to be a small piece of an industry that has so much heart.

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.

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

NACS NEWS

NACS Executive Education Programs Shift to Virtual Live

N

ACS leadership, alongside its university partners, have made the responsible decision to shift the delivery of the 2020 NACS Executive Leadership Program to a virtual classroom due to the rising cases of COVID-19 across the U.S. The programs are moving from five full days of programming to nine days over three weeks.

“Taking care of our global convenience community is at the center of everything we do,” said Erin Pressley, NACS vice president of education and media. “That’s why we, along with input from our university partners, made the responsible decision to shift our 2020 Executive Education programs online.”

Treated holistically, NACS Executive Education helps forge well-rounded leaders. Each program, standing strong individually, also acts as a puzzle piece in creating nimble, adaptive strategists and thinkers that help forward-thinking organizations grow and evolve.

Each live virtual program is built to deliver a world-class experience that’s as thought-provoking and rewarding as the in-person programs. Attendees will engage in real-time

Future Leaders The NACS Foundation has announced the 2020–21 NACS Foundation Future Fund scholarship recipients. They are: •A lyssa Fawks, safety coordinator, Douglass Distributing; Southeastern Oklahoma State University •D anielle Mosley, HR coordinator, superpumper; Arizona State University •E van Johnson, quality assurance field specialist, Sheetz; Saint Francis University • I saac Johnston, application development intern, Sheetz; Liberty University • Jayden Dolechek, cashier, The Hub Convenience Stores Inc.; Dickinson State University

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interaction with professors and peers online, enjoy rich discussions about how to achieve goals in uncertain times and acquire the strategies and tools to immediately put into practice to solve pressing issues.

Each school has worked hard to transform and deliver education in a rich, new learning environment.

The live virtual programs include: • NACS Executive Leadership Program at Cornell University •N ACS Financial Leadership Program at Wharton School of Business (University of Pennsylvania) •N ACS Marketing Leadership Program at Kellogg School of Management (Northwestern University) •N ACS Women’s Executive Leadership Program at Yale University •N ACS Innovation Leadership Program with MIT Sloan School of Business To learn more about each of the Executive Education Programs and take advantage of new reduced costs, visit www.convenience.org/leadership.

•K aitlyn Mason, team member, Get Go; Chatham University •K ayla Swan, store assistant manager, Kwik Shop; University of Kansas •M egan Wood, salesperson, Sheetz; Indiana University of Pennsylvania •S ara Kendall, assistant foodservice leader, Quick Chek; Ocean County College •S arah DeMuth, associate (food prep+ cashier), Sheetz; Hagerstown Community College •M atthew McDonnell, detail customer advisor, Delta Sonic Car Wash; The University of Iowa All applicants will receive a $3,000 scholarship award. Over the next few weeks, the NACS Foundation also will recognize each recipient for their outstanding achievements on the NACS Foundation website at www.conveniencecares.org.

CONVENIENCE.ORG

This year’s recipients were carefully selected by the NACS Foundation Future Fund selection committee based on the following criteria: • Demonstration of leadership and dedication to achieving excellence in convenience retailing • K nowledge of and commitment to the convenience and fuel retailing industry • Applicants must be currently employed at a NACS retail member company and must continue working for the nominating company throughout the scholarship period • Applicants must be enrolled in/or will be enrolled in

academic study as full-time or part-time undergraduate college students throughout the fall 2020/spring 2021 terms •A pplicants must continue in school for the entire academic year without interruption, barring illness, emergency or military service. Recipients may transfer schools and retain the award • Applications should have been submitted on-time and complete with all required attachments (applicant data and questionnaire, nomination form, essay) for consideration.

MEMBER NEWS RETAILER Pilot Co. announced CEO Jimmy Haslam will become chairman on January 1, 2021, and Shameek Konar, the company’s chief strategy officer, will succeed Haslam as CEO. Founder James (Jim) Haslam will remain as chairman emeritus. President Ken Parent will become senior advisor to the CEO and the chairman.

SUPPLIER Tyson Foods Inc. announced that Dean Banks will succeed Noel White as CEO while maintaining the role of president, effective October 3. White will remain with Tyson in a new role as executive vice chairman of the board of directors.

inventories, auditing and store reporting.

Jimmy Haslam

Shameek Konar

Dean Banks Acosta announced Brian Wynne has been appointed chief executive officer. Wynne will work closely with Darian Pickett, who will remain with the company and assume the role of chief executive officer of Acosta’s North American sales agency.

Impact 21 announced that Eric Hinkle has joined the company. He will lead clients in deploying business-facing solutions by driving store automation in the areas of ordering, receiving, store

CONVENIENCE.ORG

Eric Hinkle

Gilbarco Veeder-Root named André Dhawan president, Americas. In his new role, Dhawan will lead Gilbarco Veeder-Root’s business in the Americas.

Liebherr announced Carlos Gil as head of sales, commercial customers-Americas.

Gil has been responsible for the product strategy execution and channel relationship development in multiple markets across the United States, Canada and Latin America.

Flowers Foods Inc. announced the retirement of Jeff Blalock, vice president of convenience sales, effective July 24.

Blalock was responsible for growing the Mrs. Freshley’s and Tastykake snack cake business within convenience stores nationwide.

André Dhawan

Jeff Blalock

Tony Frankenburger McLane Company Inc. named Tony Frankenberger president and CEO, effective August 28. He succeeds Grady Rosier, who retired in August after more than 36 years, including 25 years as president and CEO.

Grady Rosier

SEPTEMBER 2020 |

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NACS NEWS NEW NACS MEMBERS NACS welcomes the following companies that joined the association between June 16 and July 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 7-Eleven Sacramento, CA Aurora Liquors Niagara, WI Benny's Corner Market (HP Rochelle Operating LLC) Rochelle, IL

Fred's Fuel N Food Mobil #1 Gilman, IL

Ron's Service Black Creek, WI

KB Food & Gas Farmersburg, IN

Semmig Express LLC dba Port Rd. Circle K Harrisonburg, VA

KP Quik Stop (PCS Petroleum LLC) Troy, IL Manpreet Kokomo, IN

Bradley's Cajun Quick Stop & Deli LLC Long Beach, MS

Maribel Grain Co. Maribel, WI

BWP Express Inc. Baraboo, WI

MK Oil Washington, IN

Caulco dba Cauls St. George's, Grenada

Norm & Son Inc. dba Norm's on 48th Lincoln, NE www.normson48th.com

Circle K South Atlantic Waycross, GA Clinton Oil Crystal Lake, IL

Oneida One Stop Green Bay, WI

Dubak Electrical Group La Grange Park, IL www.duthermx.com

Kimble's Food By Design Lagrange, GA www.cornflakecandy.com

Elegance Brands Beverly Hills, CA

Laser Facility Management Tamarac, FL www.laserfacility.com

Shamrock Marina Tower, MN www.shamrocklanding.com

General Parts Group Minneapolis, MN www.generalparts.com

NEW SUPPLIER MEMBERS

Global Glove & Safety Manufacturing Inc. Ramsey, MN

BandyWorks Colonial Heights, VA

by HS Inc. dba Healing Sacrament San Diego, CA www.remedyrolls.com Charleys Philly Steaks Columbus, OH www.charleysfranchise.com Danthan Military NJ Inc. Cranford, NJ

Logo Boys Inc. Mishawaka, IN www.logoboys.net Phoenix Energy LLC Boise, ID

Global Widget LLC dba Hemp Bombs, Nature's Script, Perfect Paws Tampa, FL www.partners.globalwidget.com H&S Wholesale LLC Woodland, CA

Sunshine Nutritionals Boca Raton, FL The Bureau of Brand Management Frisco, TX

Jolt Software Lehi, UT www.jolt.com

NACS Calendar of Events

2020 FALL

NACS Show Virtual Experience www.nacsshow.com

NOW VIRTUAL!

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

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OCTOBER 12NOVEMBER 6*

NACS Financial Leadership Program Wharton School of Business, University of Pennsylvania, Live Virtual www.convenience.org/ execed/wharton

OCTOBER 27NOVEMBER 12

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

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.

*Includes two-week break for special project

NOVEMBER 1-20 OCTOBER 27NOVEMBER 5

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

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

CONVENIENCE.ORG

Trion WonderBar Tray System ®

®

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Oversize Packages

Dual Lane Merchandising

Frozen Food

Cheese and Fresh Pasta

Vac Pack Meat

Storewide Applications

Maximize Your Merchandising Space.

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Trion Industries, Inc. Toll-Free 800-444-4665

info@triononline.com www.TrionOnline.com

Our revolutionary WonderBar® Tray Merchandising System is designed and manufactured with the most innovative accessories to increase facings, maximize visibility, enhance package billboarding, ensure product rotation, and reduce shrinkage for a full range of frozen, refrigerated and general merchandise products. Easy to install and adjust, this complete merchandising system also ensures quick restocking.

Trion will help you optimize your display space, attract customers, increase sales and cut labor costs—and our products are built to last. No wonder we’re the industry’s leading manufacturer and supplier, with more than 16 million trays earning high praise from retailers and shoppers every day!

© 2020 Trion Industries, Inc. Patents and patents pending. Product photography is a simulation of a retail environment and is not meant to imply endorsement by or for any brand or manufacturer.

NACS NEWS

Contactless EMV Gains Ground During the pandemic, consumers are increasingly willing to use contactless payments, and that includes how they pay for gas at the pump. The latest Conexxus survey of EMV readiness found strong support among gas station owners/operators for contactless card payments at automated fuel dispensers (AFD), particularly after COVID-19 hit the U.S. Conexxus fielded the survey from February 27 to March 31, 2020, before the major credit card companies this spring agreed to delay the AFD liability shift date to April 16 or 17, 2021, from the October 2020 deadline. All survey responses still assumed the October date.

Among survey respondents who replied after COVID-19 hit, 74% said they have or plan to implement contactless EMV at the pump. This compares with 51% of respondents who responded before COVID-19 hit.

Are you planning to deploy contactless outside?

Respondent Pre-COVID Count (74) (43)

Post-COVID (31)

Yes, and I'm 100% deployed at sites where I have contact EMV deployed outside

14.86%

13.95%

16.13%

Yes, but I'm not 100% deployed

45.95%

37.21%

58.07%

No

10.81%

9.30%

12.90%

Undecided

28.38%

39.55%

12.90%

If you are not implementing contactless, why not?

(Respondents could choose all that applied; total doesn’t equal 100%)

34.48%

The cost is too high

31.03% Requires additional upgrades

20.69%

20.69%

13.79%

6.9%

0%

Other priorities

Not sure how to pay for it

Other

I don’t know how

Effort, complexity

Cost was the most cited barrier to implementing contactless EMV at the pump, cited by 34% of respondents, and more than 20% said they weren’t sure how to pay for the upgrade.

See the full results in the Spring 2020 Conexxus EMV Preparedness Report at www.conexxus.org/sites/default/files/Spring_2020_Conexxus_EMV_Survey.pdf.

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CONVENIENCE.ORG

GOOD WORK

Creating a Sustainability Game Plan

86%

of Americans expect companies to stand for something other than just making money

90%

of Gen Z consumers believe that companies should be proactively tackling environmental and social issues

73%

of global consumers say they are changing what they buy to reduce their environmental impact

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| SEPTEMBER 2020

S

ustainability has many definitions, but there are two common strategic goals most companies embrace: Reduce expenses and grow the business for future generations. Recognizing that every company is at a different place in their sustainability journey, NACS created an online resource that can help convenience retailers take credit for initiatives that are performing well and identify opportunities to do more.

The new NACS Sustainability Playbook is designed to help retailers advance the areas most relevant to their businesses today, while considering how other areas could transform the business for

the future. And as retailers continue to navigate “business as unusual” during the coronavirus pandemic, the NACS Sustainability Playbook can help businesses develop long-term resiliency strategies that identify ways to reduce costs, grow their customer base, create efficiencies and foster a community spirit.

The resource covers eight sections: •D efining Sustainability: Rather than focusing on profitability, businesses are also focusing on the triple bottom line: people, planet and prosperity.

•S trategic Sustainability: Sustainability has become a strategic goal for many companies to protect the long-term health of the company.

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iStock.com/everythingpossible

BY THE NUMBERS

•B usiness Drivers for Sustainability: For some convenience retailers, the business drivers for sustainability range from cost savings to enhancing brand value.

•S ustainability Opportunities in Convenience Retail: Improving operational efficiencies helps reduce costs, as well as create environmental and sustainability benefits.

•P roduct Packaging and Selection: Consumers increasingly want better packaging options and products that help reduce their environmental impact.

•A lternative Fuels: More convenience retailers are factoring alternative fuels like electric, biodiesel and natural gas into their long-term strategic plans.

•R ecycling: Implementing or enhancing a recycling program can help retailers enhance their brand and improve consumer perception.

•M arketing and Promotion: Sustainability efforts have become convenience retail’s “clean little secret”—it’s time to tell the industry’s positive story.

•N ACS Sustainability Assessment: Use this downloadable tool to rate the effectiveness of the sustainability efforts in your stores. You’ll be asked to log in to access.

•G lossary of Terms and Resources: Common terms used throughout this playbook and recommended resources for more information.

Since the early days of “green to gold” business tactics that some retailers embraced more than a decade ago, businesses are now operating in a changing world where sustainability CONVENIENCE.ORG

has evolved into long-term strategic planning. Explore the opportunities that can help transform your business with the NACS Sustainability Playbook at www.convenience.org/sustainability.

IN THE COMMUNITY The GATE Foundation, the philanthropic arm of Jacksonville-based GATE Petroleum Company, and its customers raised $45,000 for the Alzheimer’s Association. Funds were raised January 1–June 30, 2020, as part of GATE’s coin box campaign. Coin collection boxes with a description of the Alzheimer’s Association were placed at the registers of all GATE stores located across Florida, Georgia, North Carolina and South Carolina to collect donations from customers.

In their continuing support of the Crispus Attucks Association, Rutter’s donated $50,000 through the Neighborhood Assistance Project (NAP) to the local York, Pennsylvania, chapter, bringing total donations to $450,000 since 2012.

RaceTrac offered essential workers a free month of the RaceTrac Rewards VIP program to those who signed up for the program by August 31. The monthly fuel subscription program gives members a 10 cents per gallon discount on the first 40 gallons and three cents per gallon thereafter each month with each fuel purchase.

Kum & Go partnered with Budweiser to produce a limited-edition t-shirt and tank top in red, white and blue. The shirts reflect Budweiser’s partnership with Folds of Honor, a nonprofit organization that provides educational scholarships to family members of military personnel who have fallen or been disabled in combat while serving in the U.S. armed forces. All proceeds from the sales will go toward educational scholarships.

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INSIDE WASHINGTON

Stimulating Fight NACS advocates for the convenience store industry in the pending stimulus bill.

W FACTS & FIGURES

$3 trillion

Amount of new spending in stimulus bill passed by House Democrats

$1 trillion

Amount of new spending in stimulus bill passed by Senate Republicans

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hile citizens and small businesses wait for Congress to finalize the next round of fiscal stimulus in response to the economic crisis created by COVID-19, congressional leaders and the Trump Administration remain at loggerheads, at least by press time. Weekly unemployment numbers continue to show millions of Americans remain out of work and that does not seem to be spurring a sense of urgency on Capitol Hill. In fact, Congress has essentially recessed until September 14 unless they can come to agreement before then.

LEGISLATION FROM BOTH SIDES House Democrats passed legislation in May that largely amounted to their wish list for a stimulus package, which topped out at more than $3 trillion in new spending. That legislation included extending the $600 a week pandemic unemployment insurance that some c-store retailers say has made it hard to find new workers. Also included were new stimulus checks for those making up to $99,000 a year, billions

of dollars to prop up state and local governments, a grant program for essential workers and billions more in spending on other priorities that some argue were not directly related to the pandemic.

Senate Republicans have argued that time was needed to allow the funding and programs initiated by the CARES Act to take hold. Many programs and states have billions of dollars in unspent funds allocated by that law, they argue.

In late July, Senate Republicans released their version of a next round of stimulus legislation, which is significantly more modest than the House Democrat version.

Coming in at a bit more than $1 trillion, the Senate package is centered around liability protections for businesses from frivolous lawsuits, an extension of the pandemic unemployment insurance at a significantly lower amount, a revamp of the paycheck protection program and a new round of stimulus checks. Several Senate Republicans remain opposed to any significant new spending, arguing that the U.S. needs to get its spending under control.

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iStock.com/Feverpitched

BY ANNA READY BLOM AND JON TAETS

STUCK IN LIMBO After nearly two weeks of negotiations, both sides of the aisle are not closer to agreeing on the largest points of division between the two parties—unemployment insurance extension and funds for state and local governments. These key points have prevented a quick conclusion to the debate, even though significant agreement on things like stimulus checks and tax incentives exists.

Frustrated by lack of action from Capitol Hill, the president took some matters into his own hands on August 8 by issuing four executive orders. While there remains considerable debate over the legality and/or implementation of some of these orders, they are:

1. A payroll tax deferral for employees until the end of the year 2. A n extension of pandemic unemployment insurance through the end of the year at $400 per week with a 25% contribution from participating states 3. A n attempt to extend a federal prohibition on evictions 4. A n extension of the deferments on federal student loan payments until the end of the year.

NACS is working to include our industry priorities in a package if and when Congress finally comes to agreement.

The Trump Administration had expressed a willingness to support short-term legislation on these items, but congressional Democrats rejected that offer, preferring to avoid a piecemeal approach to the stimulus.

ONE VOICE This month, NACS talks with AJ Jha, president of Tustin Arco. AJ is not only an engaged NACS member but also is running for city council in Tustin, California.

need to understand our concerns and understand the type of contributions our businesses make to communities and to keep America on the go. Our industry is often overlooked, and we need to make sure we stay at the forefront of being a valued member of the communities we operate in.

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

C-stores are essential AJ Jha businesses that keep America fueled and moving forward. As an essential part of our economy, we provide valuable sources of tax dollars for our communities and work hand in hand to help keep our economy afloat.

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

Living and working in California, there are too many to name. The California State Senate recently passed a bill that will create the country’s strongest restrictions on flavored tobacco products that have been legal for adults for decades. If this bill is enacted, it would be detrimental to our businesses and will make California’s historic budget deficit worse. It would cost the state billions and threaten jobs and small businesses across the state.

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

NACS political engagement is essential because we need to make sure our voices are heard. Our elected officials

CONVENIENCE.ORG

What c-store product could you not live without?

My go-to Starbucks Doubleshot Espresso.

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INSIDE WASHINGTON

NACS has been a leading voice for liability relief for essential businesses that have taken precautions to protect their employees and guests from the spread of the virus.

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

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

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A BATTLE WORTH WAGING Despite the stall in meaningful discussions in Washington, NACS is working to include our industry priorities in a package if and when Congress finally comes to agreement. Our main priorities through this process are liability protections for essential businesses and federal tax benefits for essential workers who have remained on the job.

NACS has been a leading voice for liability relief for essential businesses that have taken precautions to protect their employees and guests from the spread of the virus. Convenience stores and other essential businesses face the threat of unfounded lawsuits alleging that someone contracted COVID-19 on their premises— the costs of which would be crippling to fight. For this reason, NACS organized a coalition of essential industry associations this spring to advocate for legislation that would protect businesses who have acted in good faith from legal claims related to COVID-19. This position has been supported by Senate Majority Leader Mitch McConnell (R-KY), who stated publicly that the Senate will only consider a fourth package if it has liability relief in it. As part of Senate Republicans’ proposal, he and Senator John Cornyn (R-TX) introduced the SAFE TO WORK Act, which provides liability protections for all businesses that made reasonable efforts to comply with government guidance. The legislation does not seek to protect bad actors that failed to take reasonable efforts to comply and acted with gross negligence or committed intentional misconduct.

For liability to make it into the next stimulus package, members of Congress from both sides of the aisle will have to give it a stamp of approval. While issues of tort reform have historically been partisan, NACS has been working to build bipartisan support for limited and reasonable liability relief specific to the coronavirus. This is why NACS activated the convenience store industry using our grassroots portal. To date, our members

have sent more than 4,000 letters to their legislators and 140 tweets that have the potential of reaching 18,000 people using the hashtag #ProtectConvenience.

Our second priority has been federal tax benefits for essential workers who have remained on the job during the pandemic.

Convenience stores have remained open even while much of retail was forced to close by government orders. C-store workers have continued to ensure that those who needed to get to work had the food, fuel and essentials they needed to help the country stay afloat. Many convenience store operators provided an increase in hourly pay or implemented bonus programs to recognize the sacrifices these essential workers were making by showing up to work every day. Unfortunately, while certainly meaning well, Congress created a disincentive for some Americans to work when it provided pandemic unemployment insurance, making it often more profitable to collect unemployment than to continue to work. The NACS government relations team has worked with Democrats and Republicans to build support for legislation that would exempt wages earned by frontline workers in essential businesses from federal income and payroll taxes for at least some period during the crisis. This would have been a more effective way for the federal government to appropriately recognize the work done by essential workers in a way that would directly and immediately impact their paychecks.

In addition to these priority items, NACS has also advocated for tax incentives to help cover the cost of measures businesses have taken to protect employees and customers, the ability for PPP loan recipients to continue to deduct normal businesses expenses, clarity on things like mask mandates and a number of other items aimed at helping our industry weather this crisis.

NACS will continue to advocate on the industry’s behalf so it can continue to recover from the economic crisis.

CONVENIENCE.ORG

INSIDE WASHINGTON

A Close Shutdown DAKOTA ACCESS PIPELINE REMAINS OPEN—FOR NOW.

BY PAIGE ANDERSON AND DOUG KANTOR

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

Doug Kantor is a partner at Steptoe & Johnson and counsel to NACS.

In July, NACS filed an amicus brief on the Dakota Access Pipeline with four other trade associations representing the entire fuel supply chain, including oil producers, refiners, pipeline operators, fuel retailers and end users. The brief was in response to a District Court judge’s order to shut down pipeline operations, empty it and keep it closed while the U.S. Army Corps of Engineers (ACOE) conducts an environmental review.

Earlier in March, the U.S. District judge had ruled that the federal government had not studied the pipeline’s effect on the environment and ordered the ACOE to conduct a new environmental impact review.

The Dakota Access Pipeline is 1,172 miles long and runs underground from the shale fields in North Dakota through South Dakota and Iowa to an oil terminal in Illinois. The oil running through this pipeline is then either refined at a facility in Illinois or transferred to the Energy Transfer Crude Oil pipeline, which runs from Illinois to refineries in Texas. Since it began its operations in June 2017, the pipeline has transported about 500,000 barrels of oil per day. Before the pipeline, most of the oil had been transported by rail, which is more costly and less reliable than moving through pipelines.

A potential shutdown of the Dakota Access Pipeline until the ACOE’s completed environmental review will significantly disrupt the supply chain in the oil and gas markets. The environmental review will likely take more than a year to complete. Accounting for the shutdown process, emptying the pipeline and the time needed to complete the review, the Dakota Pipeline could potentially be inoperable for 18–20 months. The shutdown could cost an estimated $2 billion and reduce oil production in North Dakota by at least a third, mostly because of transportation constraints. A supply disruption would have such an impact on fuel prices and at the retail level that NACS advocated against it by filing an amicus brief.

After the NACS amicus brief and the other briefs in the case were filed, the D.C. Court of Appeals ruled that the Dakota Access Pipeline can remain open.

In its ruling, the appeals court stated that it was up to the ACOE to decide if the pipeline should be permitted to continue operations while the environmental review is prepared. The ACOE will now decide whether to allow the pipeline to remain operational as it conducts its court-mandated review.

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 July 1-31, 2020, are: Thomas Brennan Casey's General Stores Inc.

Dave Caruso Stewart's Shops

Jane Hartgrove Tres Picosos LLC

James P. Morgan J.R. Morgan Oil Company Inc.

Rahim Budhwani 6040 LLC

Brent Cotton Hershey Company

Luther W. Lott Jr. Lott Oil Inc. dba Shop-A-Lott

Jonathan Shaer New England Convenience Store & Energy Marketers Association

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CONVENIENCE.ORG

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IDEAS 2 GO

A Small Store With Big Ideas

Dia’s Market bills itself as a micro-grocery-convenience store with a curated collection of products.

BY SARAH HAMAKER

I like to have harder-to-find items that aren’t readily available all over town.

Dia's Market, founded in 2016 in Austin, Texas, doesn't bill itself as an organic store, but it stocks small-batch products and specialty foods made with fewer preservatives and healthy ingredients.

S

mall doesn’t mean blah— at least, that’s the way owner David Hopper views his micro-grocery-convenience store, Dia’s Market, in Austin, Texas.

“We wanted to offer our neighborhood

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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| SEPTEMBER 2020

an alternative to mass market products,” Hopper said. “Our small footprint—3,000 square feet total—allows us to showcase our handpicked specialty gourmet foods without overwhelming our customers.”

THE BASICS Dia’s—the name comes from the first initials of Hopper’s three children—sticks with the key categories, such as deli, dry goods, frozen and fresh. “Either myself or my staff choose the products we carry, and we try to go beyond the well-known name brands,” he said.

With a background in both grocery and specialty foods, Hopper was wellpositioned to merchandise his store.

CONVENIENCE.ORG

ABOUT

Name of company Dia’s Market

Store owner David Hopper says Dia's small footprint allows him to showcase handpicked, locally sourced products, including craft beers and fresh produce. A deli and on-site kitchen serve up made-to-order sandwiches, salads and soups.

“Whenever I’ve traveled, I’ve always noticed the abundance of local or regional selections at smaller concept stores,” he said. “That’s what I wanted for Dia’s Market, too.”

Once Dia’s opened in 2016, local and regional specialty food manufacturers began to approach him about carrying their products. “It’s not always a good fit, but I find it’s worth my time to talk with them and see how their products might work in my store,” Hopper said. “I like to have harder-to-find items that aren’t readily available all over town.”

His store focuses on products with fewer preservatives and more natural and real ingredients. “We’re not an organic store, although we do have some organic products,” he said. “We instead focus on small-batch products and specialty foods made with healthy ingredients.”

While not every product Hopper brings in resonates with customers, a few have surprised him by taking off.

“Jeni’s Splendid Ice Cream—a gourmet ice cream with amazing flavors and textures—has done extremely well, despite the higher price point,” he said.

“Unisoy vegan jerky is a pretty awesome product our customers love, as well as a nut mix called Shar Snacks, which is a local product.”

CONVENIENCE.ORG

Date founded June 2016

Like many retailers these days, Dia’s Market also has a deli and kitchen.

“Society has less time to cook because of work schedules, etc., so I wanted the ability to grow that side of the business over time,” Hopper said.

Currently, Dia’s has a deli that slices meats and cheeses, as well as makes madeto-order sandwiches, salads and soups.

“Over the last four years, people would

# of stores 1 Website www.diasmarket.com

BRIGHT IDEAS For David Hopper, owner of Dia’s Market in Austin, Texas, the best way to get ahead as a retailer is to set up your employees to succeed. “We know our employees are a major reason why people stop at our store,” he said. “It’s so important to give our staff the best training tools possible and to empower them to answer customer questions.”

He also strives to instill confidence in each staff member. “Whether they’re veterans or brand new to the work, helping them feel they can do the job means they will be more able to meet our customers’ needs,” Hopper said. “I can’t be at the store all the time—I need my employees to be able to make the customer experience great.”

SEPTEMBER 2020 |

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IDEAS 2 GO

rather have someone else make food, although people are definitely buying more groceries during the last three months because of COVID-19. The idea of a grocery store still has viability, as does the need to have fresh, prepared food,” he said.

THE CONNECTION Hopper keeps his marketing focus local in keeping with the idea of a neighborhood store. “We live nearby and advertise in the neighborhood quarterly newsletters,” he said. To give back to the community, Dia’s donates to local food pantries on a monthly basis and often participates in fundraisers at the elementary, middle and high schools. “Our children go to those schools, so we want to support them when we can,” he said.

Social media also plays a role in getting the word out, with Hopper posting

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

Visit her online at www. sarahhamakerfiction.com.

ELP_July_half_Virtual.pdf

1

8/18/20

photos of store items on Facebook and Instagram. “We often partner with manufacturers and will tag them when we talk about their products, and they usually tag us back,” he said.

Dia’s used to hold events at the store, such as a semi-annual market featuring African-American vendors and live music on the patio Thursday nights, plus numerous on-site fundraisers. But because of the coronavirus pandemic, those events have been put on hold for now.

Overall, Hopper hopes each customer leaves thinking what an amazing experience he or she had at Dia’s Market. “I want them to come in and feel the store is very inviting, inclusive, clean and organized, that they can get what they need,” he said. “We do our best to accommodate customer requests as best we can because our customers come first.”

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JUUL

$2.35 Billion

Mtn Dew Amp Game Fuel $86 Million

G Zero $136 Million

Vuse Alto $225 Million

Red Bull Coconut $141 Million

Vuse Ciro

Marlboro Ice

$136 Million

$189 Million

Myblu $91 Million

White Claw $344 Million

Bang $723 Million

JUUL revenue outpaces strongest convenience brands.

JUUL products were the number one c-store product on IRI’s Top Ten New Product Pacesetters for 2019. JUUL generated more revenue than the rest of the list combined and was four times as much as other new vapor category products.

Source: The IRI 2019 New Product Pacesetters report was compiled based on insights from IRI’s New Product Innovation Practice’s suite of analytical and decision-making tools, as well as the 2020 IRI New Product Survey.

2020

To become a JUUL retail partner, send an email to retailers@juul.com.

Global — Brand Guidelines

Age restriction symbols

The sale of tobacco products to minors is prohibited by law.

This is an age-restricted product and age verification is required at sale.

CALIFORNIA PROPOSITION 65 WARNING: This product contains chemicals known to the State of California to cause cancer and birth defects or other reproductive harm.

TM and © 2020 JUUL Labs, Inc. All rights reserved.

CHANGE

MANAGEMENT Amid a national coin shortage, the convenience industry once again proves adept at innovation.

BY JENNIFER BULAT

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CONVENIENCE.ORG

A

s the second half of this unprecedented year began, retailers were finally finding their footing. They were back in stock with items that had been in demand at the beginning of the pandemic. Employees were set up with personal protective equipment, plexiglass barriers and disinfectants. Things were settling down a bit. Many retailers felt they could finally move out of crisis mode.

And then they realized they were running out of coins.

More than any other industry, convenience stores have felt the effects of the national coin shortage.

C-store purchases often are smaller rings, which in turn leads to many cash payments—about 40% of in-store purchases, according to NACS State of the Industry data. But when a customer buys a candy bar for $1.49 and the employee at the register doesn’t have 51 cents to hand back to her, then what?

The coin shortage is yet another consequence of the pandemic that no one saw coming, and it has been fed by many factors. Many banks closed or limited services at the height of the crisis, and the U.S. Mint cut staffing and slowed production of coins. People severely curtailed their driving, so they weren’t throwing change into toll booth bins or feeding parking meters. An increase in online orders for food and countless other items meant people were using

CONVENIENCE.ORG

credit cards more often. Some operators stopped accepting cash altogether.

Because many banks simply didn’t have enough coins on hand, they limited the amount retailers could pick up. And so, many retailers found themselves earlier this summer with a severe lack of quarters, dimes, nickels and pennies.

A June 30 release from the Federal Reserve laid out the situation: “While there is adequate coin in the economy, the slowed pace of circulation has meant that sufficient quantities of coin are not readily available where needed.” In response, NACS organized two joint association letters to the Federal Reserve and the Department of Treasury urging them to work swiftly to resolve the crisis and to launch a public awareness campaign to encourage Americans to use and redeem their coins.

In the meantime, the convenience industry isn't waiting for others to fix the problem.

By asking customers to help replenish their stores’ change,

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Many retailers asked customers to round up and donate what would have been coins in their pocket to a charity. calling for donations and even working with other operators to find coins, retailers have risen to yet another challenge during these turbulent times.

BUDDY, CAN YOU SPARE …

Across the industry, as coins began staying on people’s dressers or in unused wallets, retailers began asking customers to pay with exact change, a credit or debit card or mobile app. Many retailers asked customers to round up and donate what would have been coins in their pocket to a charity.

Tulsa, Oklahoma-based QuikTrip, which has 820 stores in 11 states, offered customers multiple options. It put up signs informing customers about

GIVING WHAT YOU GOT

Here’s how other retailers have dealt with the coin shortage: • Enon, Ohio-based Speedway is donating rounded-up money to Children’s Miracle Network Hospitals, a longtime charity partner of the chain, a spokesperson said. Love’s Travel Stops & Country Stores, Oklahoma City, also donated its rounded-up change to Children’s Miracle Network Hospitals.

• Sheetz is asking customers to use not only plastic but also the chain’s SHcan & Go app, plus it’s offering the option of donating to its employee-driven charity, Sheetz for the Kidz, according to Nick Ruffner, public relations manager for Altoona, Pennsylvania-based Sheetz.

• Whitehouse Station, New Jersey-based QuickChek hosted a coin drive “to help its ongoing efforts to support local community food banks and people in need during the pandemic,” said spokesperson Russ Mensch of Mensch & Co. The funds were slated for distribution to six area charities.

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the coin shortage. It asked customers to pay with exact change or use a debit or credit card. If they paid with cash and had change coming back, they could put the remaining balance on a gift card or have a barcode printed on their receipt that applied the change to a future purchase. Or they could round up their transaction and donate the balance to Folds of Honor. QuikTrip also asked customers to bring in extra change in exchange for bills.

Mike Thornbrugh, manager of public and government affairs for QuikTrip, said customers have “really reacted and have been helpful.

“Nobody foresaw the possibility of [the coin shortage],” Thornbrugh said. “But this is one of those things that if everybody works together, we can solve it. I’m amazed by the amount of people coming in with coins that are helping out.”

Some chains went to their employees first in asking for coins. Diane McCarty, president of Douglass Distributing Retail Co., Sherman, Texas, sent an email with this request: “If you’re ready to break your piggy bank, Lone Star would be happy to turn your pennies, nickels, dimes and quarters into cold, hard cash.”

McCarty, whose company runs 23 Lone Star Food Stores, said employees also asked customers

• Wawa, Pennsylvania-based Wawa asked customers to round up and donate change to The Wawa Foundation, which benefits local charities and local chapters of the USO. Customers who brought in $5 of rolled or separated coins could get a free coffee or fountain beverage; those who came in with $10 could get a free Shorti 6-inch sub.

• Pilot Co., Knoxville, Tennessee, donated its rounded-up funds to the Call of Duty Endowment and Boys & Girls Clubs of America.

As Jeff Lenard, NACS vice president of strategic industry initiatives, recommended, “On a communications level, the coin shortage is a good opportunity to use media interviews as a platform to also talk about solutions related to the store’s community giving via round-up programs or to encourage digital platform/apps.”

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“ Nobody foresaw the possibility of [the coin shortage], but this is one of those things that if everybody works together, we can solve it.” to exchange their coins, whether loose or rolled, for bills. “Everybody knows about [the coin shortage] and has heard about it,” McCarty said, so her customers weren’t surprised when they were asked to pay with exact change or a credit card. And anecdotally, she said, people in her stores’ area seem to keep a lot of coins in their homes or on hand, so it wasn’t as severe of a problem for Lone Star.

“We’re faring fine so far,” McCarty said.

ROLLING ALONG Convenience stores being deemed an essential business at the onset of the pandemic has been a boon for some operators. Kent Couch, owner of the Stop and Go Mini Mart in Bend, Oregon, which also has a Growler Guys beer concept, said his sales have “skyrocketed.” They’re up more than 34%, he said. That’s great—though it would help to have enough cash on hand to give customers change.

As many other retailers have done, Couch encouraged customers to pay with a credit or debit card. “Never in my history did I ever want a customer to use a credit card,” he said. For small

MACHINE LEARNING

More than 55 years ago, another coin shortage happened— but back then, it was about demand outstripping supply for a different reason.

According to an April 5, 1964, story in the New York Times, retailers and banks reported a severe coin shortage due to the rapid introduction of vending machines, coin-operated laundry, parking meters, pay telephones and newspaper boxes into society. People were feeding coins into those mechanisms faster than the U.S. Mint could produce coins.

“The skyrocketing demand for coins for ordinary use could not have been anticipated,” the story said.

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businesses especially, credit card swipe fees are a formidable expense. NACS CSX data indicate that credit card fees rose more than 6% in 2019 to $9,383 per store per month. And year to date, industry credit card fees are about even with profits, according to NACS. Convenience retailers paid an estimated $11.8 billion in card fees in 2019, according to NACS State of the Industry data. Card fees are the second largest direct store operating expense for a retailer following employee wages.

So Couch made a bold move, posting this on Facebook: “We will pay you $1.05 for every $1 of ROLLED coins you bring us. We need everything you got! Make money with money!” He posted signs in the store, too. Some customers did take advantage of the offer. The largest amount of coins brought in was $460, he said.

Couch also began asking customers to round up their purchases to the nearest dollar and donate the balance to Habitat for Humanity. About onethird of customers did it. “We don’t like asking people to round up,” he said.

But that didn’t solve the problem. He asked for help from his vending partners and even the guy who handled the air machine for tires on his lot, although he declined to sell Couch any quarters.

And Couch’s bank couldn’t supply him with the coins he needed. “I get $81 a week from [the bank] if I go every day,” he said. It wasn’t enough.

Help came from an unexpected source: a competitor. He’s able to buy coins through a neighboring convenience store that uses an armored-car service.

Although retailers have had to get creative in finding them, the coins are out there.

“It’s like a circulatory problem,” said Jeff Lenard, vice president of strategic industry initiatives, NACS. “You have enough blood—it’s just in the wrong spots.”

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

CONVENIENCE.ORG

THRIVE BY CREATING GOOD JOBS The Good Jobs Strategy encourages investing in employees and making key operational choices to decrease turnover, improve service and boost your bottom line.

By Jerry Soverinsky 40

| SEPTEMBER 2020

CONVENIENCE.ORG

T

he convenience retailing industry is beset by high turnover and increased competition for employees, who may not necessarily view an entry-level associate’s job as a path to a rewarding longterm career. The non-profit Good Jobs Institute (GJI) offers an intriguing proposition: Invest in employees and make key operational choices that leverage that investment to increase productivity and contribution, CONVENIENCE.ORG

and businesses will decrease turnover and boost their bottom line. In some ways it seems counterintuitive, yet the strategy has produced tangible performance and operational improvements.

“There are so many options for people today … and increased competition,” said Varish Goyal, CEO of California-based Loop Neighborhood Markets. “A key [to success] is to have employees who are well trained on your front lines.”

SEPTEMBER 2020 |

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“ AT A MINIMUM, A GOOD JOB MEETS PEOPLE’S BASIC NEEDS SUCH AS PAY AND BENEFITS, OFFERS A STABLE SCHEDULE AND ENABLES A GOOD LIFE CAREER PATH TO HIGHER POSITIONS AND PROVIDES SECURITY AND SAFETY.”

Industrywide, convenience retailers are grappling with climbing direct operating expenses and rising turnover rates. Wages, taxes and benefits rose 12.4% between 2018 ($53,222/store/month) and 2019 ($59,839/store/month) for the industry’s top quartile performers, according to NACS State of the Industry (SOI) data. What’s more, the average turnover rate for sales associates has surged from 83% (2010 data) to 123% (2019 data) in less than a decade, with more than one in three full-time store associates bidding their employer adieu in less than 30 days, according to the NACS State of the Industry Compensation Report of 2019 Data.

Require Motivated Capable People

OPERATIONAL CHOICES

INVESTMENT IN PEOPLE

Need Return on People Investment “The conventional wisdom is that many companies have no choice but to offer bad jobs, especially retailers whose business models entail competing on low prices,” wrote Zeynep Ton, professor at MIT’s Sloan School of Management and co-founder and president of the GJI, in Harvard Business Review. “If retailers invest more in employees, customers will have to pay more, the assumption goes.”

But nearly 20 years of research have revealed to Ton that companies can be successful by paying their employees more without increasing prices and produce better customer service outcomes and stronger operations and execution. It’s dependent on creating good jobs, which is a combination of investment in people and operational excellence.

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“At a minimum, a good job meets people’s basic needs such as pay and benefits, offers a stable schedule and enables a good life career path to higher positions and provides security and safety,” Ton said during a recent segment of the NACS podcast Convenience Matters. “It also creates a sense of belonging for people where they feel proud of working for a company.”

But it’s not a matter of simply increasing wages to produce better employee outcomes, Ton stresses. “If you are Costco and you’re going to pay $23 an hour, your employees need to be able to contribute to more than $23 an hour or you’re not going to be profitable.”

A good job also gives employees the tools and resources to be productive, contribute to the business and shine in front of the customer every day.

In Ton’s 2014 book, “The Goods Jobs Strategy,” she outlines what some of the best companies do to create jobs that provide high employee satisfaction, customer loyalty and productivity. Companies like Costco and QuikTrip invest in people, paying higher wages and offering better training and career opportunities. But they also make key operational choices that allow them to leverage that investment and ensure employees can contribute to better service and continuous improvement.

THE FOUR OPERATIONAL CHOICES GOOD JOBS COMPANIES MAKE ARE: 1. Focus and Simplify Good Jobs companies have clarity on the ideal customer experience and what problem they are solving for their customer, and make strategic trade-offs consistent with that focus. With their strategic focus in mind, they simplify their operations, applying real rigor around new products, services, promotions, communication, processes and/or tools to maximize customer satisfaction and employee productivity. Paramount to developing a successful plan is for the company to understand its customers, “figuring out why they CONVENIENCE.ORG

“ IF YOUR EMPLOYEES ARE WELL-TRAINED AND HAPPY, THAT WILL SHOW IN EVERYTHING THAT HAPPENS IN YOUR STORE.”

CALCULATING CHANGE

The Good Jobs Scorecard shows how well your company is delivering value to customers, employees and investors. You can use this scorecard to clarify financial, competitive and moral reasons for change. You can also set goals and targets and track progress. Once you determine your performance gaps, the Good Jobs Diagnostic will help you identify what you need to change.

As part of the Good Job Institute’s work with NACS, an additional tool—the Good Jobs Calculator—was created specifically for the convenience industry and allows retailers to forecast the impact of increasing employee wages and assess the benefit of implementing a Good Jobs system.

“It can be hard to calculate benefits of creating good jobs because they come over time, across many budget lines,” said Sarah Kalloch, executive director of the institute. “The calculator will show how better training, lower turnover and more productive employees can impact revenue.”

This tool will help companies assess how good jobs could help them reduce costs, increase revenue and improve labor productivity, helping build the business case for good jobs in the convenience store industry.

Visit convenience.org/goodjobs for more information and to access the tools.

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come to you and for what offerings,” said Sarah Kalloch, executive director of the GJI. “Then, companies can simplify based on what adds value to customers. For instance, there are a lot of tasks that waste employees’ time. One retailer gave employees 170 tools they were expected to use. Of course they won’t use them all, and there will be uneven execution.”

2. Standardize and Empower Good Jobs companies standardize routine processes, communication and management practices—with employee input—while empowering their employees to make decisions that improve customer service, reduce cost and improve the business. “Retail is detail, so strong standards, set with frontline worker input, is critical. But you can’t legislate every customer interaction, so empowering your staff to solve customer problems and identify ways to improve the business is important,” Kalloch said.

3. Cross-Train Cross-training involves training every employee to undertake both customer-facing and non-customer facing tasks. This allows them to respond to variability in customer demands, increasing productivity, employee motivation and the speed and quality of customer service. “If you train an employee to be a cashier only, they’re not going to be as productive as they could be during downtime,” Kalloch said.

“It’s important to train them flexibly with both customer-facing and non-customer-facing work.”

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“ WITH COVID-19 AND NATIONAL DISCUSSIONS ABOUT RACIAL INJUSTICE, PEOPLE ARE ASKING MORE OF BUSINESSES.” 4. Operate With Slack Once a company has removed waste, standardized work so everyone knows how long tasks should take and empowered and cross-trained employees to promote flexibility, they can staff with more labor hours than the expected workload so they can always meet peak demand. “Staff more hours of labor than you expect, making sure your stores are [well-serviced] no matter when customers come in, especially as traffic can be uneven,” Kalloch said.

The Good Jobs Strategy shows that providing good jobs is a “dynamic combination of operations and HR, creating a virtuous cycle of great jobs, great customer experiences and more financially sound business,” Kalloch said.

Operate with Slack

Focus & Simplify

INVESTMENT IN PEOPLE Cross-Train

Standardize & Empower

Values: 100% commitment to customers, employees & improvement IMPLEMENTING THE GJS Ton’s work caught the attention of NACS during the 2018 NACS Innovation Leadership Program at MIT. A multifaceted partnership was created to roll out the GJS approach to NACS member retailers.

“I’m a huge believer that customer experience is grounded on great employees,” said Henry Armour, NACS president and CEO. “If you don’t have the right people behind your counter serving your customers, you’re not going to have a good customer experience. Implementing the Good Jobs Strategy is essential to your long-term success.”

“We think the c-store industry can find great value in the GJS,” Kalloch said. “There is high

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employee turnover, which can be incredibly challenging to operational excellence and customer service. And if you’re the corner store, you want relationships and you need loyalty. We think the GJS answers those [challenges].”

A c-store-specific calculator to help forecast the impact of increasing employee wages and assess the benefit of implementing a Good Jobs system is available for retailers (see the sidebar “Calculating Change”). In addition, to help propel good jobs adoption, NACS and GJI are searching for companies ready to make a real commitment to good jobs in the convenience store industry. (See more at “Be a Good Jobs Champion” on page 48.)

VERC Enterprises “We’ve always tried to put our employees first,” explained Courtney Buckley, head of marketing for VERC Enterprises, which operates 34 stores in Massachusetts and New Hampshire. “If they’re happy, they’ll make our customers happy.”

With such an employee-centric focus, it’s little wonder that VERC decided to explore the Good Jobs Strategy to see how they could profitably enhance their offerings to employees.

Earlier this year, GJI staff led a webinar for Buckley and other VERC team members. “That struck a chord for me because it highlighted the things we are asking [our staff ] to do, and I saw that many tasks are now outdated,” she said. “[The GJI] is looking to increase productivity, getting rid of processes and procedures that are unnecessary.

You don’t want to pay people more if they’re still doing things that don’t need to be done. We want to hire the best employees, and if they don’t need as much guidance, our other costs will decrease.”

Buckley and VERC executives are piloting the GJI Good Jobs financial calculator, developed for the convenience store industry. This tool helps them determine what cost savings and revenue uplift they could see by offering good jobs, and how much that would allow them to raise wages to hire and retain the best employees.

VERC is committed to the underlying philosophy of the GJS. “We want to pay our employees more because the cost of living here is high,” Buckley said. “Right now, we pay more than minimum wage, but how much higher can we go while remaining profitable is what we want to find out.”

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Buckley anticipates “doing this slowly,” increasing employee pay by perhaps $1 an hour “and seeing what happens.” VERC and the Good Jobs Institute will stay in touch so they can discuss the results and offer ideas for challenges specific to VERC’s operating system. “We’ll be presenting a NACS Show education session and going over our experience, too,” Buckley said.

Loop Neighborhood Markets California-based Loop Neighborhood Markets includes 130 sites, a diverse mix of urban, suburban and highway properties. After hearing Ton speak at a leadership program, Loop CEO Goyal was hooked.

“There’s a lot of turnover in our industry, and it felt like no matter how high wages were rising in our area, we couldn’t resolve the issue,” he said.

He reached out to NACS and GJI to get their perspective on how he can achieve two goals.

“First, I want to help the industry figure out how to improve. Nobody grows up saying they want to work in a c-store; it’s not a dream job. But it doesn’t have to be something that people look down on.” To that end, Goyal is hoping that his involvement will help his company with recruiting and finding the best long-term employees.

Second, Goyal is looking to reduce his employee turnover rate. “At the end of the day, it’s about providing good customer service and increasing your sales, becoming the destination of choice for the consumer. If your employees are well-trained and happy, that will show in everything that happens in your store. That’s what we’re trying to do.”

But it’s not just about boosting the company’s productivity that has prompted Goyal to explore good jobs and operational excellence. “There is a moral obligation to help people and provide them with a job that they can support themselves with.

We have businesses that can do that, and I hope we can do that over time. If we can develop the right processes, improve our sales, that will in turn benefit our employees.”

CREATING A BETTER FUTURE Kalloch believes “good jobs and strong operations can pay dividends for the industry and our country.”

The case for good jobs is multifaceted and touches on both economic as well as ethical principles.

“First, there’s a strong financial case for good jobs.

Retaining highly trained and motivated employees can help reduce costs, drive revenue and increase labor productivity,” Kalloch said.

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“Second, there’s a strong competitive case for the GJS,” she continued. “COVID has shown just how fast companies need to adapt to changing business conditions. Having a more engaged, longer tenured staff can help companies adapt faster to new business conditions and technologies, increase customer loyalty and boost market share.

“Finally, there is a strong moral case for good jobs.

With COVID-19 and national discussions about racial injustice, people are asking more of businesses,” she said. “Convenience stores can make real investments in the vibrancy of local communities and economies by offering better jobs.” erry Soverinsky is a J Chicago-based freelance writer and NACS Magazine contributing writer.

BE A GOOD JOBS CHAMPION

The Good Jobs Institute has partnered with NACS to explore how the Good Jobs Strategy can drive performance in the convenience store industry. We are talking to a handful of leading companies, including VERC Enterprises and Loop Neighborhood Markets, that would like to explore integrating GJS into their company strategy. Our goal is to identify 2-3 companies interested in providing better jobs and support them through the process. The Good Jobs Institute will do a deep dive on the strategy via a workshop, and provide support to build a roadmap and thought partnership as the retailer implements the strategy.

If you are interested in participating, please reach out to Erin Pressley, VP of Education & Media, at epressley@convenience.org.

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ared Scheeler has discovered an effective way to ensure that the new products he stocks in his convenience stores not only resonate with his customers but also drive sales of existing product offerings. Scheeler, CEO of the six-unit Hub Convenience chain in North Dakota, features new and established salty snacks and candy bars in dump bins, backed with aggressive pricing.

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d pr op

e s al s l u p m i el s

“We put them in prominent walking areas of the store,” Scheeler explained, noting that the bins, which are supported with promotional signage, are successful in garnering impulse sales of both the new products and the “tried-and-true” ones. “I’m a big fan of innovation and new products,” Scheeler said.

“I like for my company to be known for highlighting new products in sets.”

For Scheeler and other convenience retailers, new products can serve as a point

We want our customers to know they can expect new things at Rotten Robbie.”

In addition to customer retention, c-store operators say new products can be useful in bringing in new shoppers. “This industry is all about trips,” commented Don Rhoads, president of The Convenience Group LLC, with 11 stores in the Pacific Northwest. “New products can drive impulse buys and attract new customers.” of differentiation, while for many product categories they’re a lifeblood, renewing consumer interest and often lifting category sales. “In a limited-assortment environment, innovation can freshen up the assortment on the shelf and replace lower-performing SKUs,” remarked Jessica Gardeck, associate channel manager at General Mills Convenience. The new entries also appeal to consumer demand for variety. According to Scott Ward, group vice president, convenience, at Hostess Brands, “New products keep c-store offerings fresh and satisfy consumers’ desire to try new flavors.”

To be sure, new brands also can aid a retailer’s bottom line. “Stores that embrace new products develop a reputation with shoppers for being a destination for new brands and unique varieties,” said Kevin Martello, vice president, convenience retail, at Keurig Dr. Pepper. That innovation, in turn, provides an opportunity for incremental sales. What’s more, stores known to stock the latest brands and flavors command a high degree of loyalty. “New products create excitement, drive trial and establish a reason for shoppers to keep coming back to see what’s new,” remarked JC Harvey, director of retail channel strategy and commercialization at Coca-Cola North America.

In a limited-assortment environment, innovation can freshen up the assortment on the shelf and replace lower-performing SKUs. Daniel Moran, category manager at 35-unit Rotten Robbie, agrees that new products can be important to loyal customers. “Consistently offering variety brings customers back,” the California retailer said, “and it keeps things fun and fresh.

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MAKING ROOM Despite myriad benefits that new products provide c-stores, operators concede that a major challenge is deciding what products to remove to make room for the new labels. Space, of course, is a major challenge for c-stores when it comes to rotating in products. “C-stores are cursed with small space, so operators have to use it wisely,” remarked Liza Salaria, principal consultant at Impact 21. And that applies to the cold vault, as well, according to Coca-Cola’s Harvey. “The key to managing shelf space is to find out exactly what product assortment appeals to the shoppers at a specific store and tailoring offerings accordingly,” said the marketer, noting that data analysis aids decisionmaking on which products to add and delete.

C-stores also must compete against other trade channels—namely grocery stores—when it comes to new products. General Mills’ Gardeck explained that the grocery channel “inherently has higher, planned traffic, which makes it easier to launch new items and drive trial.” Moran called the habit of c-stores being passed over by groceries “frustrating” but noted that direct-store-delivery purveyors, such as beverage companies, often look to work closely with c-stores on new products.

Rhoads agreed and added that it’s critical that convenience retailers have strong relationships with those suppliers to ensure early access to new products. Convenience Group stores, for example, were among the first retailers in the area to stock White Claw hard seltzer, Rhoads said, a brand that has gone on to take the beer category by storm.

Indeed for some categories, c-stores are ideal for new product launches. “Convenience is a great channel for new product rollouts,” said Harvey.

“By design, c-stores feature far more immediateconsumption, single-serve beverages than most grocery stores. Shoppers may be reluctant to try CONVENIENCE.ORG

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new products in larger, multi-serve packs due to the risk of paying more for something they may not like.”

Moran and Rhoads believe that independent c-stores can be a great model for new product launches. “As a small chain, we can pivot so it’s easier for us to test products than a large chain,” explained Moran. And Rotten Robbie empowers store managers to make quick decisions based on a product’s performance. “As long as a product is authorized, they can swap it out,” Moran noted.

Similarly, Rhoads said, “We have the ability to maneuver new products without the bureaucracy that others face,” and that can be alluring to some suppliers. “My suppliers know that I want to be first to market, and that at my stores, there aren’t a lot of barriers,” he said.

RAVE RESPONSES Several notable new brands have been introduced into c-stores in the past year, and according to suppliers, they’ve been well received. Earlier this year, Coca-Cola North America launched Coca-Cola Energy, and Harvey reported that trial and repeat purchase rates have exceeded the company’s benchmarks. “People have responded well to Coca-Cola Energy, which has even brought new customers into the energy category,” the marketer said.

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Elsewhere in the cold vault, Keurig Dr. Pepper unveiled Dr. Pepper & Cream soda and Adrenaline Shoc in c-stores in early 2020. According to Martello, the new carbonated soft drink is the first permanent flavor addition to the Dr. Pepper portfolio in more than 10 years, while Adrenaline Shoc appeals to consumers in search of “healthier and more functional alternatives to traditional energy drinks.” To support the introductions, Keurig Dr. Pepper has partnered with c-stores on digital activations by offering product coupons via the stores’ mobile apps.

In the packaged sweet snacks category, Hostess recently rolled out Iced Lemon CupCakes following a strong response as a limited-time offer.

According to Ward, the lemon flavor differentiates the snack cake from its competitors. “We’re constantly innovating across the year,” he said, revealing that new entries from Twinkies and Ding Dongs are also on the way. Tastykake, meanwhile, recently launched the ice-cream inspired Tastykake Scoop Shop line of products, as well as new flavors for its Tastykake Juniors line. “Crosscategory mashups are on trend, and we leveraged that to create something fun for consumers,” said Ashley Hornsby, Tastykake brand manager, of the Scoop Shop line.

Some new products are even exclusive to c-stores. General Mills, for example, introduced Gardetto’s Crisps last year. The bite-sized crisps, seasoned with Gardetto’s flavors, “were designed to meet a specific c-store consumer need—to deliver on salty cravings,” Gardeck explained.

In fact, the company often uses c-stores as a starting point for innovation, she continued, as “c-store consumers are making purchases based on impulse and are open to trying new flavors and brands.”

This year, General Mills introduced a new Chex Mix MAX’D flavor—jalapeño chili—exclusively for c-stores. And when it came time to relaunch the Dunkaroos brand this summer, the company partnered with 7-Eleven for first-to-market rights.

“General Mills has had a tremendous response to the relaunch of Dunkaroos at 7-Eleven stores,” Gardeck remarked. “We look forward to bringing the product to additional c-stores in the coming months.”

Among other companies, Core-Mark International, which serves more than 42,000 c-stores, recently CONVENIENCE.ORG

Leveraging in-store displays or a secondary display near the cash registers is a great place to promote new items.

announced the launch of Core-Mark Curated, an initiative that will “identify, nurture and help develop the best new brands” for inclusion in the company’s distribution channel.

As in virtually every aspect of store operations, the COVID-19 pandemic this year has disrupted many product introductions. “The launch of Coca-Cola Energy hasn’t been immune to the effects of the pandemic,” remarked Harvey.

“The rollout has been slowed due to delayed shelf resets, and key marketing plans—including sampling and in-outlet promotion—have been delayed and pivoted to online only.”

LENDING SUPPORT To maximize the benefits of new products, suppliers recommend that retailers consider

Anytime Access Visit the Cool New Products guide online at www.convenience.org/coolnewproducts.

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best-practice tactics such as special displays and placement, signage, promotional pricing and staff awareness. “Leveraging in-store displays or a secondary display near the cash registers is a great place to promote new items to bring awareness to the product,” said Gardeck. Signage touting that a product is new, such as that used by Scheeler at Hub stores, also can garner attention. According to Harvey, “C-stores can draw fuel customers inside by teasing new offerings on the digital screens at the gas pumps.”

Jeannie Amerson, principal consultant at Impact 21, said that when it comes to new products, “discounts are important, too. Buying a new product is a risk for consumers. They need help with the initial purchase.” And suppliers and retailers agree that staff education and engagement can have a big impact on product introductions. Lonnie McQuirter, owner of 36 Lyn Refuel Station in Minneapolis, said he likes for his staff to tour supplier facilities “to get a better product knowledge that we can pass on to our customers.”

With new products as important as ever to a c-store’s success, Martello advises retailers to “take advantage of the innovation early” and the related promotional support that comes with it. Moran from Rotten Robbie, for one, is a big advocate of new products. “They can be essential for bringing people into the store,” he said.

“For c-stores, it’s important to embrace them and take risks.”

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.

CONVENIENCE.ORG

NACS SHOW C A N C E

L L E

D

VIRTUAL OFFER ANNOUNCED

A

s part of regular communications with the Las Vegas Convention and Visitors Authority (LVCVA), NACS was informed in early August that the 2020 NACS Show, scheduled for October 11-14, can’t be held in Las Vegas due to the ongoing pandemic.

“It is with a heavy heart that we make this announcement,” said NACS President and CEO Henry Armour. “We had worked closely with the health department with

STAY IN TOUCH

Beyond in-person events, NACS has a comprehensive suite of communications platforms to share knowledge with members and industry stakeholders, from our online NACS Daily e-newsletter to our weekly Convenience Matters podcasts to our monthly NACS Magazine. NACS also has a robust set of playbooks and toolkits at www.convenience.org plus on-demand webinars and shares news via social media: Follow NACS on LinkedIn, Facebook, Twitter and Instagram.

Visit our platforms today to have the most up-to-date information on NACS Show happenings.

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jurisdiction, the LVCVA, our official partners, vendors and other stakeholders to develop a world-class ‘city within a city’ that prioritized safety for our attendees and staff. At the same time, there are issues beyond our control that led to this decision,” he said.

“We know that this decision is disappointing to our entire community of retailer and supplier attendees, as well as our NACS Show supporting partner organizations PEI, PMAA and Conexxus,” Armour added. Since the announcement, NACS has been directly communicating to registered attendees and exhibitors to quickly facilitate full refunds for the event.

NEW VIRTUAL OFFER “Given all the disruption we have faced in 2020, it’s also essential to keep our industry moving forward,” said Armour, who announced a new virtual experience.

“We invested in new platforms that we intended to roll out in 2021 to supplement our robust education and networking offer. We have fast-tracked implementation of this comprehensive series of virtual offerings 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,” said Armour.

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The NACS virtual experience will take the three most important elements of the in-person event—education, new products and retailer-supplier connections—and incorporate them into innovative digital anytime-access tools.

“The NACS Show is where we come together to share ideas, make each other better and plan for the coming year. 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 this fall, will include on-demand education with real-time interactions, a virtual product showcase and direct appointment settings—designed to fit your busy schedule.

The virtual experience, available this fall, will include on-demand education with real-time interactions, a virtual product showcase and direct appointment settings—designed to fit your busy schedule.

“More than anything this year, our industry demonstrated that it is an essential business for what we sell and how we serve our communities. 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 our virtual 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.

For more information about the online NACS Show experience and registration information visit www.nacsshow.com.

CONVENIENCE.ORG

WHAT YOU CAN LOOK FORWARD TO…

At the time of this writing, the NACS Show online experience is still being developed, and more details are coming together. Yet while some of the smaller details are still unknown, we know the Show experience will embrace these key elements: Education Sessions Access to 50+ on-demand and live education sessions and general sessions with an emphasis on engagement and interactivity. Attendees can look forward to Zoom rooms, live Q&A and real-time interactions with speakers.

EV Pavilion EV-focused education and digital driving experiences from EV automakers.

Special Events Chats with retail leaders, NACSPAC events and special networking occasions.

Cool New Products A robust 365-day marketplace for showcasing Cool New Products that allows retailers to search for new products, watch product videos and capture information and then reach out to suppliers. Think: Cool New Products Room at the NACS Show—but virtual!

Buyer’s Guide/Exhibitor Listings An opportunity for NACS supplier members-exhibitors to share their contact info and offers and enhance their listings with video and other interactive elements. It’s a year-round resource for supplier information—at retailer fingertips whenever they are searching for a product or vendor.

SEPTEMBER 2020 |

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THE

WORLD NEEDS HEROES Heroes are extraordinary people like you, who—by their own actions— choose not to be ordinary.

BY BRUCE HOROVITZ

M

ost of us grew up thinking that heroes are found in the colorful pages of comic books, the fastpaced scenes of action films and in the starting lineups of professional sports teams. Most of us would be wrong.

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CONVENIENCE.ORG

That’s because true heroic acts rarely involve saving someone’s life or hitting a game-winning home run in Game Seven of the World Series. Our day-to-day heroic acts—particularly for those in the c-store industry—mostly involve showing up at work each day, even during the pandemic, and not only greeting customers with a smile but also finding small ways to make each store visit somehow memorable. And for convenience retailers in particular, it’s about adopting that same heroic philosophy with every employee to make them feel as if they truly matter, too.

Heroes serve people at a very high level with no strings attached.

“Convenience stores rank among the most competitive businesses on the planet,” said Kevin Brown, a general session speaker at this year’s NACS Show virtual experience. “The way we differentiate in this space is how we lead and the environment that we create. We should never treat the people on the outside better than those on the inside.”

His topic, “The Hero Effect,” could not be more relevant to a NACS audience urgently seeking guidance in this most challenging time.

If ever there was a time for c-store heroes to step up—and that can be any and all of us—it is right

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now, amid a pandemic that just won’t seem to let go and a social justice moment that is touching America at its core. In a confusing era of face masks, hand sanitizers, social distancing and social protests, c-store customers are simply seeking moments of comfort. Each one of the nation’s 152,720 c-stores represents a potential beacon of hope—and harbor of heroism—to the millions of customers who walk through the doors daily.

Brown, who is a self-professed expert on heroism, said American culture needs to totally flip its definition of heroes. Heroes are not ordinary people who do extraordinary things, he said. Instead, he insists, it’s the opposite: Heroes are extraordinary people who—by their own actions—choose not to be ordinary. “Everyone has special talents and gifts and abilities as unique as their own fingerprints,” he said. It’s just a matter of using them.

What makes a hero? According to Brown: Heroes help. They serve people at a very high level with no strings attached. In the c-store world, that means keeping an eye on every customer who walks in the door. Do they have a disability and need extra help? Are they regular customers who should be greeted by name? Are they a bit older and might need help getting something down from a shelf? “This isn’t about going the extra mile but taking just one extra step to help someone else.”

Heroes create a special experience.

From the minute customers walk into the store, their experience must be “world class” or they have zero reason to return. What does the store look like and smell like? Is it clean? What’s the music like? Is it pleasing to walk into the store—or do customers want to get out as soon as they can? “In the absence of a special experience, you’re only competing on price.”

Heroes take responsibility. Heroic bosses, in particular, take 100% responsibility for everything that happens with their companies and their stores. Instead of blaming the weather, the government or your employees, look in the mirror. “As an owner I have to look at what I can do to create the very best experience for my customer. Heroes never show up and start blaming. Superman never blames Batman.”

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said Brown. “Whatever behavior you are modeling is what you’ll get back from your employees.”

In a COVID-19 era, the need for heroes becomes even more critical.

“The crisis does not create heroes, it reveals them,” said Brown. “The c-store clerks are everyday heroes who have always been there.” But it’s not just showing up to work daily that makes them heroes in this era—but the actions they take once they’re there.

“The time that a clerk takes to make me feel like this moment in time matters means everything to me,” said Brown. “It’s about taking it beyond the notion that we’re just blowing through each other’s space exchanging dollars.”

Heroes are optimistic. Heroes see life not as it is, but as it should be. They go through life looking for possibilities. For heroic bosses, that means providing career paths for employees and helping them get there. For heroic c-store employees, that means recognizing that every customer who walks in the door is carrying a burden of some sort.

“Everyone walks in dragging baggage. I can add to the baggage, or I can lighten the load with a little bit of kindness. Coming to the c-store doesn’t have to be yet one more hassle they have to face today.”

“ The c-store clerks are everyday heroes who have always been there.”

How can a c-store employee making minimum wage even begin to relate to being a hero?

It’s all about the team culture, said Brown. It’s a culture that fast food’s Chick-fil-A tries to ingrain in each employee. “It’s all about the leader creating an environment where you feel respected and you get recognized when things work out well,”

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WHY DOES THE WORLD NEED MORE HEROES RIGHT NOW? We need them because heroes bring a sense of calm and hope in a world so lacking in both, said Brown. For a c-store clerk, the very first step toward showing a sense of calm, and even hope, is to smile at each patron who walks in the door.

“Better for your smile to pull them up, then for their frown to pull you down,” said Brown. A smile, after all, is not some random act of kindness—it’s intentional. That requires showing up at work with a sense of joy—and kindness.

Beyond the smile, it can simply be a greeting.

When Brown walks into his favorite c-store in central Florida, where he lives, the clerk, Billy, not only knows Brown’s name, but has nicknamed him Mr. B. “Nobody else calls me that, but I love it. He knows I’m coming in to get a coffee and a Power Bar, and he remembers it,” said Brown. It’s all about validation. Each of us likes to feel needed, wanted and remembered. “Would Billy lay down in front of a train for me? No. But at least he gives me the perception that he sees me, he hears me and that I matter.”

Most of the time, the small acts of being heroic cost nothing, but the return on investment is extraordinary. That, for example, is why Brown will go out of his way to stop at the c-store where Billy works.

Heroic acts don’t require headline-grabbing feats, such as the 2009 “Miracle on the Hudson,” when US Airways pilot Chesley “Sully” Sullenberger lost all CONVENIENCE.ORG

Visit www.nacsshow.com for more information on how the NACS Show is transforming into a digital platform this fall.

“ Everyone walks in dragging baggage. I can add to the baggage or I can lighten the load with a little bit of kindness.” engine power on his flight and still managed to glide the plane to a soft landing on the Hudson River, with all 155 people on board rescued. “Everyone has the capacity to land on the Hudson every day, but it just doesn’t look like you’ve landed on the Hudson. When you help someone take the stress out of their lives, you just landed on the Hudson,” said Brown.

AH, BUT HOW TO RETAIN THESE HEROIC EMPLOYEES? Brown, who particularly admires the work habits of Chick-fil-A employees, makes references to a study the chain did on how to retain the best workers. It advises: •B e a great boss. People want to work for bosses who will mentor them. And if you’re a boss who is not training your employees enough or paying them too little, you must find a way to improve on both counts.

•O ffer a career path. Every employee wants to know: What does the future look like for me here? Show them the possibility of that path early on and make it attainable.

•M ake them feel important. Most people want to be a part of something bigger than themselves that helps to contribute to the greater good of the world. Through philanthropy or community service, make that path possible for all employees at your stores.

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Being heroic is about not buying into stereotypes. You can be a stereotypically unclean c-store that focuses on selling cigarettes and beer, or you can decide that you are something bigger and better than that stereotype and be known, instead, for all the positive things you do for the community, Brown said. “Instead of living down to stereotypes, be the one to set a new standard.”

WHO WAS BROWN’S C-STORE HERO? Way back when he was a kid growing up in Muskegon, Michigan, Brown made money cutting grass, then headed straight to the local c-store, where owner Mr. Lack would not only sell him Red Hot Dollars penny candy and a Coke, but he always tossed some extra Eucalyptus candies in the bag, at no extra charge.

“That was my reward for going to a place where they knew me,” Brown said. “Mr. Lack was a hero.”

You can be one, too. ruce Horovitz is a freelance B journalist and a national media training consultant. Contact him at brucehorovitz@gmail.com.

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THANKING EVERYDAY

HEROES This year, 18 retailers joined the NACS Foundation’s 24/7 Day to celebrate frontline workers who work around the clock serving our communities and supporting disaster relief efforts.

BY SARAH HAMAKER 68

| SEPTEMBER 2020

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The American Red Cross name, emblem and copyrighted materials are being used with its permission, which in no way constitutes an endorsement, express or implied, of any product, service, company, opinion or political position. The American Red Cross logo is a registered trademark owned by The American National Red Cross. Should you require a receipt, please donate by calling 1-800-RED CROSS (1-800-733-2767), or give online at redcross.org

H

ow do you thank a hero?

While big gestures often grab headlines, it’s the little things that mean a lot to first responders, medical personnel and disaster relief volunteers. That’s the idea behind the NACS Foundation’s second annual 24/7 Day—a day to spotlight our industry’s important role in supporting the communities we serve, and where convenience stores can show these frontline workers they care in small, tangible ways. On July 24, 2020, 18 retailers, with support from GSTV as the 2020 official media partner, honored these everyday heroes in a variety of ways, while also raising awareness and donations for the American Red Cross.

“In our inaugural year, we had three retail partners to help us celebrate those who give back so selflessly, 24/7, in our communities,” said Stephanie Sikorski, executive director of the NACS Foundation. “This year’s 24/7 Day had a 500% increase in participation from 2019, thus extending our industry’s thanks to hometown heroes in local neighborhoods across the entire United States.”

Retailers both large and small partnered with the NACS Foundation on 24/7 Day to give away free beverages and food and offer fuel discounts to their communities’ local heroes. The retailers also collected customer donations for the American Red Cross, as well as giving generously themselves. This year, these 18 retailers with 20 unique brands honored everyday heroes— and their own associates—at 30,000-plus store locations across the United States.

“The 24/7 Day is a signature event under the NACS Foundation’s Response Relief Program,” Sikorski said. “Convenience is about being there when we’re needed most, and that’s why we wanted to help

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our retailers give back to those community heroes on a special day.”

Alongside these 24/7 Day partners, the NACS Foundation continued an ongoing social media campaign across NACS and the NACS Foundation social channels and all 24/7 Day retail partners, with assistance from the American Red Cross, GSTV and the National Emergency Number Association (NENA). Ahead of July 24, the foundation’s press release

“ Convenience is about being there when we’re needed most, and that’s why we wanted to help our retailers give back to those community heroes on a special day.” about the special day appeared in 106 U.S. media outlets, including Forbes, and some global publications. “Our total combined potential audience for hearing about the good our industry does on 24/7 Day reached 57 million—that’s in addition to the thousands of people who heard about it through video ads at the pumps with GSTV,” Sikorski said.

Here are a few of their stories. For a complete list of what each partner did, visit www.conveniencecares.org/24-7-Day.

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oe r e

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eH #W

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NACS 24/7 Day Participants

This year, 18 retailers and GSTV joined together to raise awareness and donations for the urgent humanitarian needs of the American Red Cross, while spotlighting the convenience retailing industry’s important role in supporting local heroes and their communities. “When communities need essentials after natural disasters or other emergencies, convenience stores and gas stations are often among the only retailers that remain open to help both first responders, volunteers and medical personnel, as well as their neighbors. That’s why so many retailers were eager to participate in this year’s 24/7 Day,” said Stephanie Sikorski, executive director of the NACS Foundation. “We’d like to give a special thank you to Sheetz for supporting 24/7 Day as a Community Leader for the second year with a generous donation to the NACS Foundation and the American Red Cross.”

Here’s the full list of all participants in the 2020 NACS Foundation 24/7 Day:

COMMUNITY LEADER

GETTING THE WORD OUT As the first official media partner, GSTV worked with the foundation to connect its 24,000 convenience retailers with 24/7 Day. “At a high level, the objective and work of the NACS Foundation aligns with GSTV’s corporate responsibility goals,” said Dan Trotzer, executive vice president of GSTV. “We’ve worked with the Red Cross before and wanted to help bring awareness to their mission, while saying thank you to those in our communities who can’t take a break from serving.”

“ Our total combined potential audience for hearing about the good our industry does on 24/7 Day reached 57 million —that’s in addition to the thousands of people who heard about it through GSTV.” Specifically, GSTV ran promotional pieces at participating retailers on July 24 to inform first responders of the free offer and the public to solicit Red Cross donations. “These retailers have been tested lately, responding to operational changes because of the pandemic, as well as relying on community members to support their business,” Trotzer said. “We were able to help them get this message to customers about how they help their communities stay safe and how they give back.”

Overall, Trotzer said the event gave GSTV a focal point to work on together with its retailers. “We need to continue to get the word out to customers and communities about all the important work the

NACS FOUNDATION MEDIA PARTNER

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convenience and fuel industry does,” he said. “You can lose sight sometimes about how important certain business channels like convenience stores are in our communities, and we want to do what we can to support that message.”

SHOWING APPRECIATION For Rutter’s, participating in 24/7 Day was an extension of its core mission. “At Rutter’s, we’ve always believed in supporting the communities in which we operate,” said Chris Hartman, director of fuels, forecourt and advertising. “Participating in 24/7 Day was an easy decision because it fit with our company values.”

Rutter’s expanded its participation beyond a single day. During the entire month of July, the chain utilized its ongoing monthly cannister program to support the American Red Cross, which allowed customers to make in-store donations. In the week leading up to July 24, Rutter’s donated $1,000 each day to local frontline workers. On July 24, the company made a $5,000 donation to a local chapter of the American Red Cross.

“For 24/7 Day, we wanted to truly show our gratitude to our frontline workers,” Hartman said. “With the help of some outstanding vendor partners, we provided a free meal to both first responders and our store employees, for what we called, ‘Feeding the Frontline.’”

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For Rutter’s, showing its appreciation to frontline workers for all they do for their communities, especially during the pandemic, resonated with both essential workers and customers alike. “We had a tremendous customer response to our Feeding the Frontline initiative,” Hartman said. “While 24/7 Day was a great opportunity to shine a light on the efforts of frontline workers, Rutter’s will continue to support our communities in multiple ways throughout 2020.”

EXPANDING THEIR REACH Yesway viewed participating in 24/7 Day as a way to partner with other retailers and the NACS Foundation “to amplify our collective voices,” said Derek Gaskins, chief marketing officer. “Our people on the frontlines in our stores, and in society in healthcare, police, fire, first responders, etc., deserve the collective recognition. There is strength in numbers, and with the NACS Foundation, we were able to reach more people.”

On July 24, Yesway offered free dispensed beverages to first responders, police, fire, military veterans, health practitioners and American Red Cross and United Way volunteers. The chain also gave its team members working in stores a full week of free beverages “as part of the campaign to show our appreciation,” Gaskins said.

The response from the community was, in a word, “tremendous. We received solid feedback in stores and social media from

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“ Our people on the frontlines in our stores, and in society in healthcare, police, fire, first responders, etc., deserve the collective recognition. There is strength in numbers, and with the NACS Foundation, we were able to reach more people.” customers and essential heroes,” Gaskins said. “24/7 Day gave us a great foundation to build something even stronger. We’ll incorporate this into our loyalty program, so the impact is more enduring, and will look to promote it even earlier next year to drive awareness.”

CELEBRATING HEROES Last year, Wawa joined Sheetz and RaceTrac in the inaugural 24/7 Day. This year, the retailer stepped up its participation with check presentations for recent grants from The Wawa Foundation to support disaster relief efforts, as well as recognition of funds raised during February to April from the chain’s in-store customer donation campaign.

In addition, the retailer gave away 15,000 free coffee and 15,000 free donut coupons to American Red Cross staff members. Wawa also revealed a rendering of an American Red Cross Bloodmobile to be funded by The Wawa Foundation and, it’s expected to be in operation next year.

“We’re honored to participate again in the second annual 24/7 Day that unites our industry to recognize everyday heroes working around the clock to help our community,” said Chris Gheysens, president

and CEO of Wawa, in a press release. “We remain committed to supporting our partners as they serve our community.”

GOING FORWARD The 2020 NACS 24/7 Day expanded on last year’s inaugural event both in the number of retailer participants and in what those partners did. “We encouraged these retailers to share their #WeHeartHeroes stories using our official campaign hashtags: #WeHeartHeroes, #conveniencecares and #247Day,” Sikorski said. “We had a wonderful response during July with so many retailers and supporters sharing heart-warming stories across many social media channels.”

The foundation is already eyeing next year’s 24/7 Day (July 24, 2021). “We hope to expand on the ask from 2020 and can’t wait to see how many more retail partners and others who will join us in celebrating our first responders,” Sikorski said. “The NACS Foundation 24/7 Day is a way to highlight how important convenience stores are to their communities and to amplify our industry’s collective power to positively impact disaster response efforts while honoring our frontline heroes.”

To learn more/participate in next year’s 24/7 Day, contact Lindsay Buchanan at (703) 518-4222 or lbuchanan@convenience. org or visit 247day.org.

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

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RETAILERS HAVE SO MUCH TO FOCUS ON THESE DAYS SINCE THE PANDEMIC HAS CREATED NEW PRIORITIES, WHY SHOULD THEY BE FOCUSING ON SUSTAINABILITY? We’d like to challenge retailers to think of sustainability not as its own bucket but as part of a problem-solving mindset that will put them in the best position for success, both during and after the pandemic.

Sustainable business practices create long-term value and help retailers thrive as consumer behavior shifts rapidly.

We are finding retailers that champion sustainability experience measurable increases across several key business metrics. Across the sustainability programs we manage for retailers, we’re seeing increases in: • Brand Loyalty: NPS scores increased >10 points • Engagement: Website sessions up 63% • Sales: 4.4% outperform (client volume vs. OPIS market) Incorporating sustainability practices is a way for retailers to reassure customers that their health and well-being are not just temporary concerns. Retailers can demonstrate they are actively doing their part to improve the lives of their employees, consumers and their communities—not just now but for the future.

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IN MANY WAYS, SUSTAINABILITY HAS BEEN CATALYZED BY RECENT EVENTS, IS THAT RIGHT? Yes! A growing body of research shows an accelerated shift in consumer behavior toward sustainability. While these shifts aren’t new, what’s surprising is the scale and pace—compressed into a matter of weeks are big changes that would likely have taken years. A global study by Accenture discovered specific consumer behavior changes resulting from the pandemic, including: •6 4% focusing more on limiting food waste • 45% making more sustainable choices when shopping.

We also see these behavior shifts toward sustainability, with consumers spending more on seeds for home gardens and baby chicks for fresh eggs, and an increased enthusiasm for hiking, camping, biking, kayaking and appreciating the outdoors.

Just as with COVID-19, the dangers of climate change are invisible, and the consequences sometimes can feel distant. We need solidarity in small behavioral changes today to prevent troubling outcomes in the future. But instead, for short-term safety reasons, there has been a rollback on plastic bag

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restrictions, higher consumption of single-use plastics and a reduction in carpooling and public transit.

Retailers can and should reduce the disconnect between institutional action and consumer preference for sustainability. And they can gain business in the process—roughly 9 in 10 consumers stay loyal to brands that share their values.

SO, WHAT CAN CONVENIENCE RETAILERS ACTIVELY DO TO SHOW THEY ARE SUPPORTIVE AND COMMITTED TO SUSTAINABILITY? Where a retailer is on their sustainability journey will dictate the most appropriate actions, but here are three things most retailers can incorporate: 1. Make it relevant: In the sustainability industry this is called materiality.

Address what is most relevant to you and your customers. This can be done through a series of formal surveys or even through social media polls for an instant pulse check.

2. B uild awareness: Your customers won’t know what you’re doing unless you tell them. Promote sustainability efforts, including positive impact metrics generated, at the forecourt.

Sustainably marketed products grew 7.1x faster than conventionally marketed products and continue to grow despite COVID-19, according to an NYU Center for Sustainable Business study.

3. Tout community support and partnerships: Feeding America, the nation’s largest network of food banks, reported a 98% increase in demand due to the pandemic.

Consumers want to do business with brands that have proven themselves to be good corporate citizens.

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Retailers can illustrate their commitment through partnerships with local nonprofits.

SINGLE-USE PACKAGING HAS RETURNED DUE TO SAFETY REASONS, BRINGING EXTRA WASTE. HOW CAN RETAILERS STILL BE SUSTAINABLE? The pandemic is unleashing a tidal wave of plastic waste. Retailers can still be sustainable if they are able to adopt one or all of the following: •E xplore compostable/biodegradable alternatives to replace plastic items, especially cutlery and straws.

•R euse/recycle: Bring any current recycling efforts to the forefront with simple and clear consumer education. (Even if retailers are already recycling, now is the perfect time to make sure consumers are aware, making it easier for them to reduce what ends up in a landfill.)

•O ffset: Retailers can implement plastic offsets immediately without supply chain or operational disruptions.

Through plastic collection credits, plastic waste is removed from the environment proportionate to what is sold, resulting in a net-neutral or net-negative impact.

“ We are finding retailers that champion sustainability experience measurable increases across several key business metrics.”

The world changed overnight. And now it’s not just about returning to normal, but returning to better. Retailers have an opportunity to appeal to consumers’ shifting desires by weaving in long-range, sustainable strategies that align with customer behaviors. Messages should be clear and express the shared values between retailer and consumer. There’s mounting evidence that we could be returning to a healthier world in the wake of coronavirus, and retailers can reset, rebound and do well by doing good!

This interview was brought to you with support from GreenPrint, a NACS Hunter Club member.

SEPTEMBER 2020 |

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HELPWanted Two leading retailers share how they attract, hire and retain successful employees.

BY PAT PAPE

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T

he day after Liz Lord turned 16, she started working as a sales associate in a QuikTrip store in her hometown of Tulsa, Oklahoma. “It was such a fun environment, and they’re so flexible with part-time people,” said Lord, who stayed on the job until she left for college, where “I realized that I’d have better opportunities if I worked at QuikTrip full time and attended school part time.”

Lord was right. Today, 23 years later, she is manager of infrastructure engineering for the Tulsa-based retailer, supervising the team that builds the network and security systems for the 800-store chain. “The money drew me in originally, but once I was here, it was the people,” she said. “When you go into any store, you’re immediately accepted into that team, and you’re treated like family. That’s why I stay.”

There’s no argument that salary and benefits are key to recruiting and retaining competent staff members. Currently, the average convenience store manager earns $47,429 a year. Full-time sales associates are paid $11.75 hourly, and the average part-time sales associate earns $10.83 hourly, according to the NACS State of the Industry

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AddingUp Average cost to replace an employee earning $30,000: 16%, or $4,800 Average cost to replace a mid-range employee earning $40,000: 20%, or $8,000 Source: The Center for American Progress

The cost to hire, train and equip… …a c-store manager averaged $3,213 …full-time associates averaged $1,716 …part-time associates averaged $1,421 Source: NACS Compensation Report of 2019 Data

Compensation Report of 2019 Data. In addition, about 75% of convenience store operators offer some type of medical coverage to hourly employees.

“It’s probably a bit obvious, but separating hourly sales associates by full time and part time sheds a spotlight on the difference in turnover, with part-time associates turning over 160% compared to only 81% for full-timers,” said Jayme Gough, research manager for NACS. QuikTrip is known in the industry for offering high salaries and generous benefits. The average QT manager makes “close to $90,000 a year,” said Brady Walker, who started working in a store 15 years ago and is now manager of corporate personnel. “They work hard and earn every penny of it.”

The company is privately insured and offers medical, dental and vision insurance, plus tuition reimbursement for employees and scholarship opportunities for dependents. “We have a tremendous 401(k) profit-sharing program, but that’s a long-term incentive,” he said. “We also have customer service bonuses, referral bonuses, anniversary bonuses and rewards.”

But money and benefits alone won’t keep employees working at jobs they don’t enjoy.

“We want to make sure employees are valued and have a voice,” said Walker, referring to regular opinion surveys that are distributed to the team. “We try to get a sense of what do we do that works well. We ask them, ‘What are you forced to do that doesn’t make any sense?’ Some tasks may look good on paper. But maybe there’s a better way

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to do something, or maybe they don’t need to do it at all. When Chet [Cadieux, president and CEO, QuikTrip] is out in the stores, one thing he does is find the part-time clerks and ask them, ‘What are we doing that’s stupid?’ It’s a good thing. There’s a lot of trust involved in that.”

HIRING RIGHT Even during times of unemployment, finding good applicants to hire can be a challenge.

QuikTrip representatives attend occasional job fairs and post openings on social media, but “the best recruiters we have are store employees and signage in the stores,” said Walker. QT hiring managers take special notice of those applications with an employee recommendation, and employees receive monetary rewards when they recommend an applicant who is hired.

Employee recommendations also are important at VERC Enterprises, which operates 31 convenience stores and car washes in Massachusetts and New Hampshire. “Our best employees are referred to us by current employees, and the person making the referral and the new hire both receive a bonus,” said Courtney Buckley, manager of training, development and fun at VERC. “Besides referrals, we post online and attend job fairs, and we work with the state’s Re-Entry program to provide employment opportunities for former inmates who have been rehabilitated.”

It’s hard to tell from an interview if an applicant will be a successful, long-term employee. QuikTrip interviews include behavioral questions, such as, “Give me an example of a time you faced a conflict.”

At VERC, “We then ask about previous jobs, how long they worked there and why they left,” Buckley said. “We ask what they liked most about a previous job and what they didn’t like to determine if our company is right for them. If there is something they didn’t like, but it’s a requirement for our job, that’s a red flag,” she said. “If someone changes jobs every couple of months, that’s another red flag. The internet is a great tool. Google and Facebook are free and help us learn more about the applicant.”

Every QuikTrip applicant completes an assessment survey by answering “agree/disagree” questions on a graduated scale. The company can look at survey responses of proven, tenured employees to see if there are common factors that indicate CONVENIENCE.ORG

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an applicant’s future success. “We use data a lot more than we used to just because we have it available,” said Walker. “If we can hire two or three out of every 10 interviews, that makes us more efficient.”

Like other convenience operators, QuikTrip seeks “that person who is high energy, has a good personality and who isn’t afraid to roll up their sleeves and get dirty. Everybody takes part in all the tasks whether that’s dumping trash, cleaning restrooms or stocking coolers,” he said.

TOP-NOTCH TRAINING Training for success begins as soon as the job offer is made and accepted.

At VERC, novice employees go through a five-day “training checklist,” which “starts with something fun, like a store lunch, to welcome the new hire,” said Buckley. “The checklist covers everything that an associate needs to know, and it’s reviewed over the course of five shifts at the store.”

Initial training includes operating the POS and the lottery machine, learning fuel pump safety

Success

Hire foR

QuikTrip has a rigorous hiring, onboarding and training process.

The chain only hires about 1% of everyone who applies. Once on board, every new hire is assigned a trainer who shadows them in the store. Trainers’ success is intertwined with those of the employees they are showing the ropes.

“We’re big believers in performance-based pay,” President and CEO Chet Cadieux said at this past year’s NACS Leadership Forum. “So those trainers are on a reward system that rewards them for generating good employees,” but “they aren’t punished for pulling the plug on somebody” who isn’t working out. “They are also compensated based on the turnover of that employee,” he added.

Additionally, Cadieux talked about QuikTrip’s embrace of the Good Jobs Strategy—a system that creates superior value for employees, customers and investors by combining investment in employees with operational choices that increase employee productivity, contribution and motivation.

For more on the Good Jobs Strategy, read the article in this issue, and listen to the Convenience Matters podcast No. 205 Good Jobs Strategy.

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procedures, stocking, cleaning and what to do during down times. Once the checklist is complete, the associate leaves with a $25 gas card that they must ring up themselves.

VERC offers continuing education, including leadership, supervisory skills, English as a second language, time management and more. “Almost everyone in the company is involved in this training, from the support center to team leaders to associates,” Buckley said. “These extra classes help our stores run more efficiently and further the education of our employees.”

QuikTrip’s onboarding starts with orientation at the division office and then moves to the store, where newbies work beside a designated trainer for several days, learning tasks and receiving feedback. Because the chain is growing rapidly, video training modules often are used to inform store staffers about new food offerings and updated procedures.

Opportunities for promotion are another tool that motivates employees to take more responsibility and stay on the job, and both VERC and QuikTrip are committed to promoting internally.

“Our associates make the best leaders because they are familiar with our culture and how our company works,” said Buckley. “Associates can apply to be a shift leader by meeting with our president and vice president of operations. If they think it’s a good fit, then the associate will train for a couple months, which involves learning paperwork and other tasks of a store leader. After that, they take the Shift Leader Evaluation, and if they pass, they officially become a shift leader.”

Retailers can’t grow a winning business singlehandedly. Some may try, but every famous entrepreneur has built a flourishing company with great employees by his or her side. “If you hire the right people, it makes a whole lot more sense to take care of them and invest in them, then go out and find more of them,” Walker said. at Pape worked in the P convenience store industry for more than 20 years before becoming a full-time writer.

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

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SAFE

GUIDANCE Queue management systems ensure safe interactions at every stage of the customer journey.

Perry Kuklin Director of Marketing Lavi Industries

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QUEUING IS AN OFTEN UNDER-CONSIDERED ELEMENT OF C-STORE OPERATIONS AND CAN BE THE LAST THOUGHT FOR MANY RETAILERS WHEN BUILDING A STORE. WHY SHOULD RETAILERS PAY MORE ATTENTION TO LINE MANAGEMENT? The checkout queue is one of the most highly visible customer touchpoints in the store. Customers typically experience its effect as soon as they walk inside, sometimes even before. An unplanned, unorganized waiting line can wreak havoc on the customer’s experience and the retailer’s bottom line. An unmanaged queue can impact profits by causing waiting customers to block access to profitable merchandise or areas, confuse and frustrate customers as they try to figure out who’s next in line, and even cause customers to leave without purchasing, rather than deal with a long wait.

On the other hand, a well-planned checkout queue—one that accounts for the ebb and flow of traffic—can prevent serious bottlenecks at the store entrance and other key areas, improving customer flow throughout the store space.

Implementing queue management best practices, such as a single-line queue, can improve efficiency, reducing both real and perceived wait times, ultimately increasing customer satisfaction. It also has the added benefit of enabling

in-queue impulse merchandising, which can very easily turn the checkout line into a profit center for the retailer.

This small area—the checkout queue— really does have a large, lasting impact on a retailer’s business. Paying attention to it and leveraging its opportunities can improve the customer experience and increase profits.

NOW, MORE THAN EVER, MANAGING THE FLOW OF CUSTOMERS INTO AND WITHIN A STORE IS CRITICAL, IN PARTICULAR, FOR HEALTH AND SAFETY. Yes, in these unprecedented times it is critical for businesses to take proactive steps to safeguard the health and safety of their customers and employees. Public guidance and queue management systems play an important role in enabling safe interactions at every stage of the customer journey.

Customers waiting outside to enter the store should have a clear indication of where and how to wait. Outdoor stanchions, sign stands and floor stickers help keep customers at safe distances and informed of store protocols. Once inside, visual cues such as floor stickers and signage reinforce physical distancing, and sneeze guards keep customers and employees safe where physical distancing is not possible. As an example, our Queue Guard® acrylic protective barriers sit atop our CONVENIENCE.ORG

merchandising fixtures, enabling retailers to maximize the physical space for queues by providing a shield from people standing or walking in adjacent aisles.

Equally important is clear and concise messaging that helps customers identify the checkout queue and reinforce physical distancing protocols. This not only helps reduce customer confusion and frustration but also eases the burden on employees to remind customers of store policies.

AND IT’S NOT JUST ABOUT CHECKOUT LINES—ANYWHERE CUSTOMERS CONGREGATE IN YOUR STORES IS AN OPPORTUNITY TO MANAGE CUSTOMER FLOW AND GENERATE REVENUE, IS THAT RIGHT? Exactly. There are many areas, both in and out of the store, that can benefit.

Tight spaces such as dining and prepared food areas can be outfitted with sneeze guards or protective barriers to maximize capacity and improve safety for customers and employees. Beverage bars, kiosks and prepared food areas can benefit from mobile merchandising fixtures to generate additional revenue. Outdoor signage and retractable belt stanchions can provide high-visibility messaging and help customers quickly identify parking spaces reserved for curbside pickup.

Additionally, technology solutions can be employed to remove the physical line completely. These solutions work well in limiting and regulating the number of customers in the store at any given time.

They’re also a good solution for orderahead, takeout or table reservations in a dining area.

With virtual queuing technology, customers add themselves to a waiting line by scanning a QR code or sending a text message with their smartphone.

They can then wait for service outside, or in the safety and comfort of their CONVENIENCE.ORG

car, tracking their wait on their phone.

When it’s their turn, they receive an alert or text with instructions. This contactless queuing technology can be integrated into a businesses’ online ordering or curbside pickup system.

There’s even an appointment and scheduling feature that allows customers to make advance reservations.

This interview was brought to you with support from Lavi Industries, a NACS member.

WE’VE ALL LEARNED THAT THE EXTERNAL ENVIRONMENT AND CUSTOMER PREFERENCES CAN CHANGE ANY TIME. HOW CAN YOU HELP RETAILERS BE NIMBLE ENOUGH TO ACCOMMODATE ANY NEW CHALLENGE? We’ve been helping companies safely control crowds and guide people in, through and out of their facilities for over 40 years. We understand how essential it is for today’s product solutions to be able to meet tomorrow’s demands, so we build flexibility into everything we make.

In these unprecedented times it is critical for businesses to take proactive steps to safeguard the health and safety of their customers and employees.

For example, the same stanchion used for queuing is also used for merchandising fixtures, signage systems and Queue Guard® protective panels, providing a modular solution that enables companies to repurpose systems as their needs change. And all these solutions integrate seamlessly, creating a holistic system that works across the entire customer journey. As a manufacturer and software developer, we’re able to quickly respond to specific customer needs, creating solutions as unique as each individual company we service.

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N E D .

E A C O I R V B R E O S T D N O O O F TI F U L O O H S C Y A R E A R C E S H T O S T A NO PE T PA A P BY

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C

OVID-19 has devastated the restaurant industry. The pandemic closed thousands of U.S. dining rooms—everything from swanky eateries to casual coffee shops— and it remains a threat heading into fall.

Even in restaurants currently open, the dining experience has changed. On top of guests worrying about strangers and sanitation, they are forced to “social distance” and deal with servers attired like medical technicians. “It’s not the same experience,” said Phil Lempert, author and food trends editor for NBC’s Today show.

The National Restaurant Association says the U.S. restaurant industry lost $120 billion in sales from March through May 2020. The organization’s mid-May survey found that U.S. foodservice operators expect that number to be $240 billion by year-end.

But people still need to eat, and there’s one business that’s picking up: food delivery. That service—along with the fact that everyone has a smartphone—has given ghost kitchens a big boost.

who may choose to share ingredients, equipment and staff members or manage those resources individually.

These no-seat food operations are “much more economical than running a [brick-and-mortar] restaurant, and you can focus more on the food,” said Lempert. “They’re usually in lower rent districts because they don’t have to rely on passersby on the street or having a nice destination. You don’t have to invest $1 million to make it look great.”

With a ghost kitchen and a reliable delivery platform, your restaurant isn’t a single building. It’s your entire neighborhood or city, Lempert said. “A ghost kitchen is a more profitable venture for a restaurateur, and we’re going to see more ghost kitchens doing their own delivery.”

“The trend toward off-site dining experiences via delivery and pickup is shaking up the entire restaurant industry,” said Hagop Giragossian, a partner in Dog Haus, franchiser of gourmet hot dog and burger restaurants. The chain has 130-plus locations but also has partnered

“ “ TThis his isis something something c-stores c-stores could could get get involved involved inin easily easily and and add add to to their their bottom bottom line.” line.”

GHOST WHAT? Ghost kitchens began popping up with zero fanfare in 2017. A ghost kitchen (aka virtual kitchen or dark kitchen) is a commercial foodservice operation with no dining room or wait staff. It can be located most anywhere—in a warehouse, office building or under-used hotel kitchen. Customers order food via a smartphone app, the staff prepares the order and the finished product goes directly to the customer via a delivery platform, such as Grubhub.

Ghost kitchens function in various ways. For example, several food brands can be produced in a single kitchen by one or more foodservice operators,

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with Kitchen United and CloudKitchens, two ghost kitchen companies that provide professional kitchen space for the preparation of delivery-only meals.

Dog Haus opened its first ghost kitchen in 2019, but “with the current pandemic, our timeline has accelerated, and we’re working diligently to open as many as possible in the coming months,” Giragossian said.

Ghost kitchens offer flexibility.

“Companies like Kitchen United and CloudKitchens provide substantial data, allowing us to optimize our offerings within key markets, creating tailored menus to satisfy the demand in each CONVENIENCE.ORG

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“ “ IIff you you want want to to capture capture frequency, frequency, you’ve you’ve got got to to create create excitement. excitement. And And the the excitement excitement won’t won’t be be inin the the restaurant—it restaurant—it will will be be with with the the food.” food.” community,” said Giragossian. “We can expand our geographic footprint through off-premise centers with little overhead required and double our delivery sales, plus simplify our marketing efforts.”

The concept also could work for c-stores wanting to generate more revenue, he said, and “owners would need to strategize on how to get the word out about their additional services. Targeting local media and influencers would also be a new idea for convenience and corner stores, but it sounds like a runway that has yet to have been walked.”

STRONG PARTNERS Kitchen United based in Pasadena, California, provides fully equipped professional kitchen space to restaurants that prepare delivery-only meals. Each has its own dedicated space, equipment and employees. Its staffers manage the pickup center, deal with delivery providers and

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handle cleaning and maintenance. “Our model offers a cost-effective way to grow off-premise reach,” said Jim Collins, CEO. “Startup costs in a Kitchen United are significantly lower than building a standalone brick-and-mortar location, and a significantly reduced staff allows greater profitability for delivery/pickup-only operations and a more easily managed location.”

Today, Kitchen United facilities offer several brands in densely populated areas of Pasadena; Chicago; Scottsdale, Arizona; and Austin, Texas. “The consumer cares about their food being delivered fast, and that means the location has to be central and accessible,” he said.

Currently, the company has no c-store partners, but “we see synergies, and we are having discussions with industry operators,” Collins said. “C-stores have begun to operate similarly to restaurants in that their consumers are increasingly demanding freshly prepared food options.

While our focus to date has been on partnering with restaurants, we believe there’s a good fit for the right kind of c-stores as we move forward.”

Denver-based Nextbite operates differently by partnering with existing restaurants and commercial kitchens.

“Most restaurant operators are good at procuring and preparing food, but they may not be as good at marketing, driving awareness or creating concepts beyond what they already have,” said Geoff Madding, CEO of Nextbite.

To help drive business, Nextbite has developed several brands with proprietary menus. The restaurant partners determine which brand(s) they’ll offer and team with Nextbite through a revenue-sharing arrangement. “They provide their existing staff, existing occupancy and utility costs. We are responsible for the third-party delivery platforms, the technology and the marketing expenses to drive the business,” he said. “The restaurants get additional revenue. On average, our restaurant CONVENIENCE.ORG

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partners have four of our brands, in addition to their own.”

A big challenge of food delivery is managing the individual technology from the various delivery platforms.

Nextbite provides technology from Ordermark, which allows restaurants to manage all online orders and delivery platforms through a single printer and tablet instead of juggling separate tablets for each delivery provider. Madding describes the operation as “a virtual restaurant in a box that can be up and running in as fast as a week.”

Currently, Nextbite operates more than 140 virtual restaurants in 30 states and expects to have 500 to 1,000 by year-end.

The company offers more than 10 brands and continues to research new concepts.

“There is no upfront or ongoing cost [to the foodservice operator],” Madding said.

“Everyone has a month-to-month contract. If they don’t make money, we don’t make money.”

Madding said he has talked to some convenience retailers about the opportunity, but so far, no agreements have been finalized.

GHOSTLY C-STORES? If any U.S. convenience stores are running a ghost kitchen, they’re keeping that news under wraps. However, c-stores have been quick to adapt to on-demand delivery prior to the pandemic and saw interest surge during the lockdown. A ghost kitchen operation is not an unreasonable next step.

Two Northeast c-store chains, Sheetz and Wawa, partner with national delivery providers Grubhub, Uber Eats and DoorDash. 7-Eleven works with Postmates, DoorDash and Google, as well as Flavor, a Texas delivery service, to serve customers who don’t want to leave their sofa.

Kyle Lore, corporate executive chef for Maverik stores, based in Salt Lake City, sees potential in the ghost kitchen concept. Currently, a couple of Maverik stores are testing online ordering and

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third-party delivery, and “then we’ll see how far we want to go,” said Lore.

Kwik Chek, based in Spicewood, Texas, near Austin, offers food delivery in several areas and has seen mixed results. “We’re in rural or suburban markets, and I think there’s a different mindset in those markets compared to the Dallas or Austins of the world,” said Kevin Smartt, president and CEO, Kwik Chek. “It will be interesting to see the impact this has on QSRs and fast casual in general.”

Mike Lawshe, owner of Paragon Solutions, the retail design consultancy in Fort Worth, sees a growing interest in food pickup, delivery and drive-thru. “Some is COVID-related, but people are becoming accustomed to the wonderful convenience of not having to get out of their car,” he said.

“This is something c-stores could get involved in easily and add to their bottom line,” said Lempert of NBC's Today show.

But one red flag he sees is establishing a set menu. “Keep it simple. Have one or two items per day and change daily,” he said. “If you want regular customers who used to come to your restaurant once a week, change it up. Have barbecue one night, Italian another night and seafood another. If you want to capture frequency, you’ve got to create excitement. And the excitement won’t be in the restaurant. The excitement will be with the food.”

Collins of Kitchen United predicts strong growth in remote kitchen operations moving forward. “However, to say this is the future for restaurants probably goes too far,” he said. “We believe strong demand for in-house dining will also re-emerge. So, this is a new growth area as opposed to something that will ‘replace’ restaurants.” at Pape worked in P 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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S D R !

O W

More than ever, workers need training to handle customers who refuse to wear face masks.

BY STEPHENIE OVERMAN

U

nlike human resources professionals who are trained to handle a range of workplace conflicts, all retail employees don’t instinctively know how to deal with irate customers who refuse to comply with requirements to wear face masks in stores.

Working on the front lines of the coronavirus pandemic, “employees are being left to ensure [mask-wearing] compliance. It’s a new thing for them. Oftentimes that does not work very well,” said Oscar Villanueva, managing director of security services for Minneapolis-based R3 Continuum.

As an example, Villanueva cites a recent video of an unidentified man without a face covering meeting resistance from employees. The Orlando Sentinel reported that the video shows the man trying to enter a Florida Walmart, “but a mask-wearing employee of the store spreads his arms to attempt to block his entrance. The man then attempts to push the employee out of the way, falling to the floor, but persisting and then making his way into the store with the employee continuing his efforts to ask him to leave or put on a face mask, while the video taker comments, ‘Everybody got on masks, man.’”

As Villanueva points out, “Employees are not prepared to do this. There can be arguments, violence. It’s not a good position to put employees CONVENIENCE.ORG

in,” he said, calling for conflict-resolution training. “There are ambiguities. It’s also become a politicalized problem. It makes enforcement difficult—it’s a formula for additional problems,” Villanueva said. “I don’t think this is going to get any better. There’s rising infection. Mask wearing is going to continue for a long time.”

At the federal level, the U.S. Centers for Disease Control and Prevention (CDC) recommends wearing a face covering in public settings to prevent infection from the coronavirus, but there is no nationwide mandate. States and municipalities are increasingly requiring masks, and the list changes as new hot spots develop around the country.

Walmart, Target and Starbucks are among a growing number of national retailers with mandatory mask policies for customers, in addition to employees. Many convenience stores also ask customers to wear face masks inside their stores and post signs at store entrances as reminders.

ENFORCING AMBIGUOUS POLICIES Travis R. Blankenship, president and senior consultant for Threat Assessment Consultants LLC, based in St. Louis, said companies first need to understand who is responsible for issuing any relevant face-covering order and who is responsible for enforcing it. “If someone violates that mandate,

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TIPS FOR DEFUSING SITUATIONS

Oscar Villanueva, managing director of security services for Minneapolis-based R3 Continuum, offers tips that managers can give frontline employees to help them handle volatile situations.

If an employee encounters a customer who does not want to wear a mask, “the first thing is to communicate concerns professionally.

Keep it professional and don’t think of it as a personal argument. It’s in people’s nature to make it personal, but it’s not.”

It is important to “meet the customer where the customer is. What are they feeling and doing? You should reference the safety needs of both parties. You should comment about ‘keeping us both safe.’”

Work to understand the other person’s position—show empathy, Villanueva continued. “There is a reason why an individual is not wearing mask. Understand where they’re coming from. For example, the employee might say, ‘I understand wearing a mask is uncomfortable. It takes a while to get used to it.’ That helps defuse the situation.”

Seek the customer’s help in resolving the issue. “Say, ‘We appreciate you choosing our store. How can we resolve this so you can go on shopping?’ Asking the other party for help is important in de-escalating.”

Let employees know they can go to managers for assistance, he added. “If it’s not working, they should contact the manager.”

A bonus tip from Villanueva: “Consider having an extra supply of masks. They’re not that expensive. If you have some on hand it can help to de-escalate the situation. You can say, ‘I happen to have an extra one, would you mind wearing one today?’ Present them with an alternative.”

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what do you want me to do about it as a business in the community? If they are not going to issue a summons, it ties the hands of management,” he said. “Have that conversation in advance, so you have a good understanding of what’s expected.”

A potential violation of a mask-related ordinance is not a felony, and many law enforcement offices have not been actively enforcing violations, Blankenship said. “Keep that in perspective when you are trying to enforce it.” But knowing when to enforce the rules is especially difficult since most of the policies exempt children and people with underlying health conditions.

Virginia Gov. Ralph Northam in mid-July reminded businesses that they can refuse to serve customers who aren’t wearing a face mask—or call police for help. After lawmakers and business groups expressed concerns about putting businesses in the difficult position of enforcing a government mandate and opening the door to lawsuits, Gov. Northam clarified that businesses need only enforce mask requirements for their employees.

Businesses have a right to refuse service to a customer who will not wear a mask, but Blankenship warned against it. “Don’t refuse to serve the customer—that’s where it puts the employee and business at risk. It’s better to rely on law enforcement, and if they are not going to enforce it, the business does not have a leg to stand on. Do your best to enforce it, but it’s not something I would suggest engaging in a controversial manner.”

If employees feel they are forced into dealing with angry customers, they could file a stress claim against the company, he added. “In the current world, it’s so litigious. You need to de-escalate any situation. You need to protect your employees. You need to keep a balance. This affects your relationship with the community.”

Employers can require their own employees to wear masks, Blankenship said. “PPE (personal protective equipment) is something that is the right of the employer to require as part of the job description.

If someone is claiming immunity, contact a lawyer.”

Michael Raisbeck, chief people officer of CEFCO Convenience Stores, said the company has taken the stance “that if someone is without a mask, we don’t confront them. We serve them.”

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“ Don’t refuse to serve the customer —that’s where it puts the employee and business at risk.”

“Confronting people can be dangerous. You want to get them in the store, take care of them, and get them out,” he said.

The company is based in Temple, Texas, and also has stores in Alabama, Arkansas, Florida, Louisiana and Mississippi—many in areas hard hit by the coronavirus. CEFCO stores have signs posted about mask-wearing where required, and employees must wear masks, Raisbeck said. “It’s company policy, no matter the jurisdiction. If we hear ‘I just don’t want to wear it,’ we say it is part of the company uniform now.”

COMMUNICATE AND TRAIN CAL’s Convenience Inc., based in Frisco, Texas, has about 3,000 employees working at more than 200 Stripes locations in New Mexico, Oklahoma and Texas.

Texas Gov. Greg Abbott had resisted calls for Texans to wear masks in public and at one point banned local governments from requiring masks.

On July 2, he issued orders for people in most counties in the state to wear masks. More than half of U.S. states now require face masks in public when social distancing isn’t possible.

Dealing with the different rules in different municipalities—and with frequently changing rules—requires constant communication, said Jill Spencer, vice president of human resources for CAL’s Convenience. Special communications come twice a week from the corporate office, she said, and “when it’s urgent I will get on the phone to area managers and regional directors and give them specific information and send it directly to the stores.”

In return, “they don’t hesitate to call. They call me 24/7. The bottom line is that managers are swamped” by the COVID crisis, she said.

Listening is an important part of the communication process, she added. “We should always listen to our customers if there is a problem. In my profession, I’ve learned that when you try to defend yourself, a lot of times things escalate.

Listen. Follow up. We follow up with every customer complaint.”

CAL’s Convenience uses Ready Training Online to teach how to deal with potentially aggressive situations such as robbery, she said, but “this has CONVENIENCE.ORG

been a little bit different. We try to talk to individuals about what we need to do and why we do it. We have weekly training for area and regional managers.”

The message everyone should take from their training is this: “Always stay calm, and don’t take it personally. If you feel your life is in danger call the police—period.”

Villanueva recommends that all employees receive basic training on how to respond to customer hostility and other threats in the workplace.

Managers and supervisors should receive more comprehensive training to better understand why conflicts occur and to teach employees how to defuse them. “An essential component of training is that humans are human. When people interact you are going to have conflict,” he said. “It’s masks now, but it could be any situation. It could be about terminating an employee [so, it’s important] that they walk away at least feeling like they were treated fairly.” tephenie Overman is a S workplace writer and author of Next-Generation Wellness at Work.

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Trusted

Connections In an age of physical distancing, the need for reliable, remote connectivity is greater than ever.

Daryl Woodard CEO SageNet

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WITH SO MANY OPERATIONAL TASKS TO PRIORITIZE THESE DAYS, WHY SHOULD RETAILERS PLACE ADDED EMPHASIS ON MANAGED NETWORK SERVICES? The events of the last six months have forced retailers to adopt and adapt. The physical challenges are tremendous: from social distancing to masks to plexiglass to floor stickers, from keeping goods on the shelf to getting employees back in the store.

The other side of the equation is technological. Many changes forecast for the coming five years have been compressed into as many months. Managing this rapid change while wrestling with the challenges on the ground can be daunting for even the most sophisticated organization. This is where a trusted managed network services partner (MNSP) can be a force multiplier.

Particularly in an age where nearly every technological advance is dependent on a reliable, secure network, processing credit cards, managing inventory, monitoring fuel levels or kitchen sensors all require connectivity you can count on, without question.

YOU WORK WITH MANY DIFFERENT VERTICALS— C-STORES, DOLLAR STORES, QSRs AND OTHERS—WHAT PARADIGM SHIFTS HAVE YOU SEEN AMONG THEM AS A RESULT OF THE COVID-19 PANDEMIC? Great question. As you mentioned, SageNet customers tend to be large, multisite retail operations with locations numbering in the hundreds, thousands, even tens of thousands. As soon as the pandemic began to impact the U.S., we put together our SageFORWARD™ initiative to evaluate COVID-19’s impact on our customers’ business operations. What we discovered across all our verticals were six common paradigm shifts: 1. Health and safety concerns are raised to the top of the corporate priority list.

2. Financial uncertainty is now a certainty.

3. The pace of technological change has accelerated exponentially.

4. T here is no status quo. Agility and adaptability are paramount.

5. Technology is the cornerstone of transformation.

CONVENIENCE.ORG

This interview was brought to you with support from SageNet, a NACS member.

6. T he challenge is too big to go it alone. One needs calm leadership from a trusted advisor.

HOW CAN RETAILERS BEGIN TO ADDRESS THESE PARADIGM SHIFTS IN THEIR BUSINESS? With all these shifts, the fundamental business objective remains the same. The retailer still wants to attract and retain a loyal customer base by profitably providing quality food, fuel or merchandise in a welcoming, safe, familiar environment.

That hasn’t changed.

However, the path to that objective has changed. And the foundation of the new path is all about leveraging the latest technology to provide a very human outcome. In this new environment, technology is one of the few factors within the retailer’s control.

We’ve identified six essential tools, across all verticals, that help large multisite retailers forge this new path: 1. P op-up Connectivity: The ability to quickly, practically instantly, deploy secure broadband anywhere.

2. W i-Fi Everywhere: From curbside to expanded outdoor dining, strong, secure Wi-Fi for guests and staff is essential.

3. I ntegrated Digital Signage: Both inside and outside the store, both consumer and staff facing, front and back of the house. Digital provides up-to-the-minute information in an engaging format.

4. Expanded Cybersecurity: The increase in connected devices, expanded network footprint and speed of deployment comes with a dramatic increase in network vulnerabilities.

5. IoT/Analytics: Contactless, frictionless interaction relies on countless CONVENIENCE.ORG

sensors and devices. IoT technologies and analytics transform raw data into actionable intelligence.

6. A nd wrapping it all together, a managed network services provider who understands and supports all these tools as a whole, across hundreds, if not thousands of locations.

Candidly—it all starts with first really listening to the retailer, which typically results in helping the retailer ascertain “what to do next”—in order for them to meet their business objectives. During this pandemic, we’ve seen many different business challenges, but, in all cases, the solution starts with first truly understanding our customers’ needs.

In an age of physical distancing, remote connectivity is the path to building closer human connections.

WHAT IS THE COMMON DENOMINATOR THAT RETAILERS CAN FOCUS ON TO SATISFY THESE NEEDS? It all begins with secure connectivity.

Ironically, in an age of physical distancing, remote connectivity is the path to building closer human connections.

The consumer must trust the connection he or she has with the retailer. So, too, must the retailer and MNSP share trusted connections, network- and partnership-wise. Things like 24/7 redundant network operations and security operations centers and a strong field support organization help ensure assistance is available whenever and wherever needed. But of equal importance is knowing that your MNSP truly understands your business and your industry and has the technological and financial resources to help build the new path to achieving your objectives.

Now, more than ever, it is all about trusted connections.

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A TRUSTED RESOURCE A quarter-century after its launch, the age-verification program continues to train and educate.

BY SARAH HAMAKER

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B

ack in 1995, no national unified program existed to help retailers responsibly sell tobacco products. Government studies around that time showed a 40% violation rate, which meant four out of 10 underage buyers were successful in buying tobacco. “We Card set out to correct that by educating the retailer and consumer,” said Doug Anderson, president of We Card.

That year, the Coalition for Responsible Tobacco Retailing—made up of tobacco retailers and wholesalers, manufacturers and other industry groups—established the We Card Program to train and support retailers in responsibly selling tobacco products. “Now, the latest government study in 2018 found that only one out of 10 underage buyers were successful in buying tobacco—that’s evidence of the positive impact We Card has had,” Anderson said.

For the past quarter century, We Card has provided retailers with a comprehensive program to help them succeed in selling age-restricted products. The iconic red and yellow logo adorns stickers at checkout counters, posters on breakroom walls, tip sheets for managers and training materials for associates. “Every day, convenience stores check more IDs than the Transportation Security Administration, and We Card set the foundation for our industry to be an in-person, age-checking industry,” said Lyle Beckwith, senior vice president of government relations for NACS. “We Card has been a key partner to ensure retailers comply with age-verification requirements to keep all tobacco products, including vapor, out of the hands of those underage,” added JUUL Labs Chief Regulatory Officer Joe Murillo.

good, simple, effective way to ensure all of our associates have quick, easy tools and training in order to maintain compliance,” said Toni Doran, organization and operations training manager for Casa de Montecristo Inc., a 20-unit chain. “The dashboard tools allow us to see who has completed training, which helps us make sure we’re doing everything we can to prevent underage sales of tobacco products.”

David Gaudet, president of The Bars Program, which conducts compliance shops at retail locations, sees the positive results in We Card’s training on a daily basis. “We Card has given retailers a platform from which to legally sell tobacco products,” he said. “Their refresher course offers retailers a convenient way to retrain staff to ensure consistent compliance.”

EDUCATION, EDUCATION, EDUCATION The backbone of We Card is its training initiatives for retailers. Beckwith was one of the first We Card classroom trainers. “We knew we needed to train our members on how to comply with verification for age-restricted products, and We Card provided excellent training that moved from classroom to VHS to DVD to interactive online modules throughout its history,” he said. “That shows how We Card is constantly evolving to keep up and ahead of technology.”

Retailers say We Card’s training makes compliance easier. For example, We Card provides a “very

“ In 2018 only one out of 10 underage buyers were successful in buying tobacco—that’s evidence of the positive impact We Card has had.”

A NIMBLE ORGANIZATION During its 25 years, We Card has always been quick to respond to industry needs. Whether it’s developing interactive online training or investigating automated age-verification technology, We Card has embraced change. “We’ve never been one to rest on what we’ve done in the past, and retailers lead us to the best hands-on solutions,” Anderson said.

One example of how We Card pivoted fast was helping retailers across the United States comply with the federal Tobacco 21 law, which took effect December 20, 2019. “Usually, we’d get a lead time of months to prepare for such a sweeping law change, but once the legislation was signed, it became effective immediately,” Anderson said.

“While some states already had Tobacco 21 laws on the books, many others weren’t prepared.”

We Card moved fast, sending out email blasts alerting its retailers and the broader stakeholder community about the change and posting downloadable signage and decals, as well as training materials while it worked to restock its Tobacco 21 inventory. “Many retailers had ordered the 18-year

BY THE NUMBERS

In its 25-year history, We Card has gone from an unknown non-profit to the go-to organization for training materials and age-verification tools for retailers. During that time, We Card transitioned from a logo to an action verb, a retail company policy and a corporate social responsibility program. Overall, We Card was one major reason retailers moved from a 40.1% violation rate in 1997 to a 9.6% violation rate in 2018.

Here are some of the indicators of the far-reaching program: More than 1.1 million We Card kits distributed

500,000+

90%

of retail locations selling tobacco have We Card signage

We Card has provided retailers: •4 .3 million age-calculation tools •7 million training tools

retail employees trained directly—who in turn generally train an additional 11 co-workers

version of our kits and tools, and we had to replace all of those as soon as possible,” Anderson said.

“We Card anticipates the changes in the regulatory landscape, and they’re always ready with the tools retailers need in order to make the transition and ensure compliance,” said Jim Calvin, president of the New York Association of Convenience Stores.

“We Card has been exceptionally good at monitoring state and local laws, and keeping retailers informed and updated,” Beckwith added.

THE NEXT 25 YEARS We Card continues to innovate by adding more online training and working with the industry and retailers on solutions to social sourcing of tobacco products. “Minors are getting adults to purchase tobacco and vaping products for them, and as retail compliance continues to improve, social sourcing will continue to increase,” Anderson said. “Part of We Card’s future will be about how to raise awareness of social sourcing and how to find approaches to bring those numbers down.”

We Card helped retailers across the United States comply with the federal Tobacco 21 law, which took effect December 20, 2019.

We Card offers retailers free downloadable resources for complying with the new Tobacco-21 purchase age. In-store signage options, the We Card Age Checker app, a 10-minute training booster course and a digital We Card eCalendar are available at www.wecard.org.

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For Beckwith, We Card’s decision to support ID checking and minimum purchase ages on vapor products before the U.S. Food and Drug Administration (FDA) shows the organization has what it takes to succeed well into the future. “We Card got ahead of vaping, putting in a training module before the FDA said e-cigarettes fall under the same rules as tobacco,” he said. “If We Card hadn’t done that, there would have been more confusion at the store level.”

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As an organization, We Card works hard to stay ahead of any age-verification issues. “JUUL Labs hopes to continue its support of We Card for the next 25 years and beyond, particularly as we explore new technological solutions for age verification to restrict underage access to tobacco and nicotine products,” said Murillo.

Wawa has been a happy We Card customer for years. “We find We Card’s resources extremely helpful in making sure we are getting the full picture of our compliance needs,” said Jason Homola, Wawa director of category management. “It’s great having a trusted partner that is only a phone call away.”

These industry groups and manufacturers all agree the secret to We Card’s longevity and positive impact has been its willingness to engage in constant communication with retailers,

manufacturers, trade associations and others on the issues surrounding age-restricted products.

“We Card has its ear to the ground and keeps the changing needs of retailers in mind,” agreed Kimberlee Pepple, senior director of corporate responsibility for Altria. “They’ve stayed relevant— and will continue to be relevant—by developing tools and training in response to what they’re hearing from retailers.” arah Hamaker is a freelance S writer and NACS Daily and NACS Magazine contributor based in Fairfax, Virginia.

Visit her online at www. sarahhamakerfiction.com.

“ Part of We Card’s future will be about how to raise awareness of social sourcing and find approaches to bring those numbers down.”

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3rd Square.indd 1

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The COVID-19 pandemic brings full-service fueling out of retirement.

BY

BY SAMANTHA SAMANTHA OLLER OLLER

he COVID-19 pandemic has highlighted full-service fueling—as either a tool to differentiate or as an obstacle to staying open. And the end result all depends on a retailer’s location.

In March, social media posts warned of the dangers of catching the coronavirus from touching contaminated dispensers. While health experts have not ruled out the possibility of surface transmission, there are no confirmed cases of someone contracting COVID-19 by touching a gas dispenser.

Retailers have responded by offering disposable gloves and hand sanitizer and stepping up forecourt cleaning regimens. In the 48 states that allow consumers to pump their own gas, some retailers have gone a step further by offering customers the option to have someone else do it and avoid touching the gas pump altogether.

In April, Kum & Go began offering full-service fueling at all 398 stores in 11 states, tapping existing technology: the call button. Signs posted at the fuel island direct customers to press the call button at any pump or phone the store to request fueling. An employee comes out to handle the fill-up and the transaction—both cash and credit are accepted.

Full-service fueling is available at all pumps to simplify the customer experience.

“Wayfinding is always challenging, whether it’s inside a supermarket or out of the parking lot of a store,” said Reed Rainey, COO of Des Moines-based Kum & Go, of the decision-making process. “We didn’t know what the take rate would be on this service. We didn’t know if 50% of customers would be interested, 75% or 5%.” Kum & Go chose an CONVENIENCE.ORG

approach that could provide the service for as many customers at the same time.

Hy-Vee Inc. added full-service fueling in April to its 169 grocery and Hy-Vee Fast & Fresh stores in eight states. Like Kum & Go, Hy-Vee uses call buttons and a dedicated phone number for assistance and accepts cash and credit cards. “Cash is more steps for us, because if the customer wants to have a receipt, we’ll have to go back and go in the store, and come back out,” said Curt Sills, group vice president of convenience stores for West Des Moines-based Hy-Vee. “But it’s taking care of the customer.”

Both retailers have safety protocols for employees, including masks and gloves that are replaced with each transaction. They limit full-service fueling to daylight hours, or 7 a.m. to 7 p.m.

“ We didn’t know if 50% of customers would be interested, 75% or 5%.”

Rainey said the biggest unknown for Kum & Go was if its current workforce could support fullservice fueling. “Where we landed was, let’s stand this up and understand the public’s reception and ultimately the take rate,” said Rainey. “And if we had to add labor to support this business, that’s a good thing.”

As of late June, Kum & Go had seen fewer than 100 full-service fueling transactions per day, which it has been able to manage under its

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existing payroll. Hy-Vee also has seen a small take rate, or about five transactions per store per day.

Despite the relatively low usage of full-service fueling, the retailers have been pleasantly surprised by the positive reaction from customers. Anecdotally, most who use the service are older customers, Sills said. Hy-Vee plans to continue offering full-service fueling through the end of 2020.

Kum & Go expects to make full-service fueling, along with curbside delivery, regular features as it aims to remove even more contact points. In May, it added the Fuel Better tool to its app, enabling customers to activate the pump and pay for fuel from a smartphone. This could be connected to curbside and the full-service offer. “Done well, combined with retail, potentially delivering this could be a differentiator,” Rainey said. “There is a place post-COVID.”

THE NEED FOR SELF-SERVICE Full-service fueling has been a relatively easy way for some operators to address a pandemic stress point. But in the two states that require it—Oregon and New Jersey—it has added to the stress for retailers.

Oregon has outlawed self-service fueling since 1951 over safety concerns about consumers spilling fuel. In 2016, the state loosened restrictions to allow retailers in low-population counties dealing with employee shortages to offer self-service fueling during overnight hours. Then this spring, the pandemic triggered a labor crisis for fuel retailers across the state.

“When the governor issued her stay-at-home order in Oregon, we and the Oregon Fuels

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“ Done well, combined with retail, potentially delivering this could be a differentiator.

There is a place post-COVID.” Association started receiving just a massive amount of emails from retail stations, gas station owners, across the state saying, ‘My employees are not available; I can’t keep the station open; we’re going to have a fuel availability issue,’” said Danelle Romain, a partner with The Romain Group and a lobbyist for the Oregon Fuels Association (OFA), based in Salem, Oregon.

Retailers said employees were either ill or staying home to take care of children or sick relatives.

Star Oilco, a fuel distributor based in Portland, Oregon, has one retail location outside of the city.

President Mark Fitz had to man the pumps himself after an employee with a baby at home refused to work. “He was really scared about the disease, so he didn’t show up,” said Fitz, noting that the employee eventually returned to work. While Starco pays above the $12-per-hour state minimum wage and offers bonuses, Fitz also believes generous state and federal unemployment benefits hurt recruitment efforts.

Radwan Akroush, co-owner of two Fastrak Fuel Mart stores in Portland, Oregon, had to temporarily close the sites after employees left and never returned. “A lot of them quit,” said Akroush.

“They’re like, ‘I live with my mother, she’s elderly.

I don’t want to get her sick.’” One of the stores is located near a hospital; when it closed, it eliminated a fueling option for health workers there, he said.

According to the Oregon Department of Energy, the number of actively employed gas station attendants fell by as much as half as the pandemic flared in March. After getting feedback from Oregon fuel retailers, the state’s fire marshal agreed to temporarily lift the self-service ban. Beginning in late March and extending through late May, Oregon allowed all gas stations to offer self-service as an option if they couldn’t fill job vacancies. Romain said most retailers were able to take advantage of CONVENIENCE.ORG

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“ If we had self-serve in New Jersey, we’d be able to lower our price, probably about 15 cents a gallon.” the measure and adopted an attended self-service model. At Starco Oil’s Portland store, an employee would approach a vehicle, maintaining six feet of distance, and offer customers the option of fullservice or self-service. Employees cleaned nozzles and pumps with each self-service transaction.

This relaxation of labor requirements allowed Akroush to reopen his stores. “We were able to keep [employees] in the store as opposed to going outside,” said Akroush. “And it was quicker. A lot of the customers actually liked it. They’re like, ‘I always prefer to pump my own gas.’”

NEW JERSEY’S CULTURE WAR While Oregon temporarily lifted its self-service ban, New Jersey stuck to its prohibition, which dates back to 1949. This was even as the pandemic worsened to give the state the second-highest number of COVID-19 cases in the country this past April.

In March, Sal Risalvato, executive director of the New Jersey Gasoline, C-Store, Automotive Association (NJGCA), based in Wall Township, New Jersey, wrote to Gov. Phil Murphy asking for retailers to have the ability to offer self-service as an option during the pandemic. He cited workers’ health concerns and conflicts with customers, who insisted on handling the transaction themselves.

The governor did not budge.

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Risalvato said full-service fueling is part of New Jersey’s culture. A 2015 Rutgers-Eagleton poll found that nearly 75% of New Jersey residents— including 84% of women—prefer it. “It is something that New Jersey wears as a badge of honor,” he said, and he believes that lawmakers view lifting the ban as “political suicide.”

Risalvato argues that allowing self-service fueling would benefit consumers. Today, New Jersey’s fuel tax sits at 41.4 cents per gallon, making it the 10th highest in the country. It is poised to increase again due to a state law mandating that fuel tax revenues, which support New Jersey’s Transportation Trust Fund, meet a minimum threshold. This is as the pandemic has walloped fuel demand. Operators also have the higher labor cost of a full-service-only model, which they either absorb and/or pass along.

“If we had self-serve in New Jersey, we’d be able to lower our price, probably about 15 cents a gallon,” said Risalvato.

Meanwhile in Oregon, the pandemic has flared up again, hitting a record number of daily cases in midJuly. With the self-service ban reinstated, operators’ labor issues also have returned. Romain told of one retailer who had to close sites after an employee tested positive for COVID-19, which forced all of the employee’s teammates into a two-week quarantine.

Because the retailer had employees working at different stores to cover shifts, “that basically wiped out their workforce,” she said.

“It’s been very difficult to find people that will work at gas stations right now,” Romain said. “If the state starts to close again, as these numbers of COVID cases increase, we could see the need for self-service again.” amantha Oller is a ChicagoS based journalist with 17 years’ experience covering retail and fuels. Follow her on LinkedIn or Twitter at @OllerWriter.

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GAS STATION GOURMET

Monster Fish, With Fries For locals angling for snakehead or scrapple, fishing gear or mail, Woolford Store is the spot.

BY AL HEBERT

T

he Woolford Store in Woolford, Maryland, has been the hub of this Eastern Shore community since the 1890s. Owner Eddie Bramble grew up in the c-store business.

“My father owned numerous c-stores. He bought this store in the early 2000s, and I bought it from him in 2013.”

Customers find a little bit of everything, from snacks to prepared food, at Woolford’s, but the store is also a destination for people who enjoy outdoor sports. “I made quite a few changes over the years. Dad was more into hunting, and I was more into fishing, so I added more tackle,”

SOCIAL MEDIA STRATEGY When it comes to competition between the small, individually owned store and the corporate giants, social media is the great equalizer. “The name of the game is content. The more you post, the more people see. The bigger the online presence the better,” said Eddie Bramble, owner of the Woolford Store.

“We took it a step further. I started a side business centered around the outdoors. We do a weekly podcast and share it on the store’s page. I don’t actively promote it in the podcast, but it’s a way to keep the store in people’s ears and faces.”

Bramble recently tried Snapchat. “It didn’t quite work out, but we’re always trying to expand the audience. You have to keep trying,” he said.

Bramble said, adding, “In recent years we had an influx of snakehead anglers.”

ON THE MENU Movies on the Syfy Channel like “Snakehead Terror” or “Snakehead Swamp” introduced this frightening-looking fish to a wide audience.

“Snakeheads are a highly invasive Asian species that has decimated the perch, bass and other native fish,” Bramble explained. “They were introduced in Maryland in 2002 as exotic pets. People didn’t know how big they grew in aquariums, and they released them into the wild.”

Snakeheads also reproduce at an alarming rate, and just like in the movies, these fish can crawl on land. It’s a nightmareish fish that breathes air and has sharp, dagger-like teeth. There is, however, good news. “They’re delicious,” Bramble said.

Woolford Store’s Charlotte Bramble shows off a snakehead she caught that topped 13 pounds.

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Customers love Woolford’s snakehead tenders—a local specialty in this Eastern Shore area—and sirloin beef cheesesteaks served up on fresh bread. For breakfast, scrapple is a staple. Eddie Bramble and his wife, Charlotte, and son, Eddie Jr., love the c-store’s community roots.

“It tastes like bass but without the fishy aftertaste.” A customer favorite is snakehead tenders dipped in cornmeal and spices and deep fried, and then served with fries or on a sub roll.

In particular, mornings are special in the Woolford Store. Since the 1890s, it’s also served as a U.S. Post Office, so starting one’s day here is part of the community DNA. Bramble and staff arrive early for the breakfast crowd. “We open at six, but we’re there at five. We turn the grill on, we do bacon, scrapple and ham,” Bramble said. “If you serve breakfast and don’t have scrapple, you’re behind the 8-ball—game over. It’s on par with bacon in popularity. It’s served on rolls or bread or toast.”

The store’s cheesesteaks also draw customers. “We use top sirloin beef, put it on the grill, chop it and use provolone cheese, then serve it on sub rolls. We get bread deliveries twice a week, so it’s always fresh,” he added.

OUTFITTING ANGLERS The tackle section at Woolford’s was initially geared to fishing out in the bay, but the store soon began to stock bait for anglers going after the snakeheads.

As more people arrived wanting to fish for snakehead, Bramble realized a store-sponsored fishing tournament would be good for business. “We’re near the water, just outside the Blackwater National Wildlife Refuge, and that water is full of snakeheads. There’s no limit; you catch as many as you want,” he said.

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In 2019, the store sponsored four tournaments, which drew hundreds of people, and catering to snakehead anglers has helped increase food sales.

Most of our customers order to-go. They’re outdoorsmen and take the food to the boat.

PANDEMIC IMPACTS Bramble shared: “We were the first business in the county to offer curbside service.

Delivery is not feasible here because we’re a rural area.” At first, the store shut down indoor dining but has since reopened a limited number of seats inside as Maryland eased restrictions. “Most of our customers order to-go. They’re outdoorsmen and take the food to the boat,” he said.

Breakfast used to be the time for indoor dining, but things have changed.

“The crowd still comes, but they don’t hang around.” And when it comes to menu items, Bramble said, “We tried to keep it as close to normal as possible. If there was a price increase [on supplies] we ate the cost, we stayed so busy.”

Keeping prices steady paid off. “Knock on wood,” he said. “We’re still as busy as we can be. One: We were one of the first to go to curbside service. And two: We catered to the outdoorsman. What do people do when they’re not working?

They’re fishing. If you’re fishing in our area, you’re gonna stop by our store.”

The Woolford Store is one of those places that holds on to the past, while remaining nimble enough to maneuver through a global pandemic. Whether it’s trappers bringing pelts to the parking lot or connecting with customers on Facebook, this store is positioned for another 130 years of business.

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

Robots Deliver

In the pandemic’s wake, retailers are increasingly investing in technology to deliver autonomous and contactless service.

BY FIONA BRIGGS

Retail technology company AiFi partners with retailers, such as Albert Heijn, to deploy autonomous stores, which range from 800-square-foot convenience stores and travel shops to 10,000-square-foot stores.

C

OVID-19 has accelerated many trends already apparent within retail—not the least is the consumer’s dramatic shift to shopping online and at convenience and neighborhood stores.

With many industry observers stating the pandemic has triggered a fundamental “reset of retail,” new technologies including robotics, machine learning and AI also are being more rapidly deployed to enable operators to respond to the “new norm.”

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Crucially, these solutions help enable contactless and, where applicable, safer, physical “store” environments. That’s key given a study by C&R Research that showed 60% of shoppers were fearful of shopping at a grocery store, and a similar number felt a sense of panic or anxiety when shopping.

Robotic solutions are being rolled out around the world—in Asia, Australia, Europe, South America and the U.S. In the United Kingdom, the Co-op has expanded same-day autonomous robot deliveries to more CONVENIENCE.ORG

communities and eight stores following a trial. The retailer reports increased consumer demand for “robo-shopping,” with the number of customers using robot deliveries more than doubling since the start of the lockdown and the value of transactions increasing fourfold as shopping habits changed. Originally intended to offer additional choice, ease and convenience for time-pressed shoppers, the delivery service, which uses small battery-powered robotic containers on wheels from Starship Technologies, has become a “lifeline” for vulnerable or housebound members of the community.

Co-op also has focused on developing the range of products available through robot delivery, with shoppers now able to select from around 1,000 everyday essential products. Delivery fees range from £1.49 to £2.49 ($1.90 to $3.17), according to the distance traveled.

Jason Perry, Co-op head of online development, said, “Quality, ease and convenience is at the core of our approach, and we continue to innovate and expand access to our products online in order to offer greater flexibility and choice to meet consumer needs in our communities.”

CLICK-AND-COLLECT GROCERY Three retailers in Estonia—Coop Estonia, Selver and Prisma—have become some of the first grocers in the world to deploy Cleveron’s robotic grocery pickup solution, Cleveron 501, to hand over online orders without human-to-human contact.

The stand-alone units are installed in parking lots in the Estonian capital, Tallinn, and serve as quick and convenient drive-thrus. Customers place their grocery order online, choose a pickup time, receive an order code, and the grocery robot presents their order after the client enters the PIN on the user console.

CONVENIENCE.ORG

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U.K.'s Co-op says the number of customers using robot deliveries has more than doubled since the start of the COVID-19 lockdown.

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The deployment comes as online shopping has seen unexpected growth due to the pandemic, and research shows that shopping habits will most likely not return to pre-COVID-19 behaviors.

“We’ve always felt that e-commerce and online grocery shopping is the future, and that is why we created our grocery robot,” said Cleveron CEO Arno Kütt. “The crisis brought the future to us sooner. We had a product that was just what the grocers needed, and so we approached the Estonian grocery chains with an offer.”

Kütt said his company had seen a spike in interest for its automated clickand-collect delivery products, especially the grocery robots, “which are helping companies to serve their clients in this challenging situation businesses are facing.”

Coop Estonia was the first to deploy Cleveron 501. Development director Asko Pukk said AI solutions are an integral part of today’s commerce.

“The stores are becoming smarter, and the grocery robot can change the grocery game significantly in the near future. Just think about it—several thousand items available for you to pick up from a solution taking up only 25 square meters. And the goods are stored in perfect condition both in the winter and summer [the units have

The crisis brought the future to us sooner.

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GLOBAL TRENDS

With the onset of COVID-19, the need is even more urgent for a contactless and autonomous retail store where you can shop and feel safe.

two temperature zones for fresh and frozen goods]. It is an ideal solution for overpopulated areas where there is not enough space but also in rural areas that otherwise would not have such a selection available,” Pukk said.

While the Cleveron 501 also is being tested in Denmark, the U.K. and U.S., retail technology company AiFi reports it is on track to deploy 330 of its autonomous stores by the end of 2021. These include publicized partnerships with Albert Heijn, Carrefour, Loop Neighborhood and abka, plus other leading national and international grocery retailers.

The AiFi stores range from 800-square-foot convenience stores and travel shops to 10,000-square-foot stores, with the top platform offering a checkout-free experience, including flexible payment methods, an enhanced shopping journey design and operational tools for smart inventory management.

“With the onset of COVID-19, the need is even more urgent for a contactless and autonomous retail store where you can shop and feel safe in a physical environment,” said Steve Gu, CEO and co-founder, AiFi. “The deployed stores are operational or in advanced stages of testing. These stores have proven to be stable, accurate and popular among shoppers, who love the lightning speed and fluid retail experience.”

AUTONOMOUS CLEANING Walmart and Kroger are reaping the benefits of robotics and AI through their partnerships with Brain Corp, based in Amsterdam and San Diego, and its autonomous fleet of 10,000+ cleaning robots, now launching in Europe.

Driven by “the new value of clean,” U.S. retailers increased their usage of robotic floor scrubbers by 24% during April 2020, compared with the same month last year, and by 18% during the first four months of the year. Of that 18%, more than two-thirds (68%) occurred during daytime hours, according to Brain Corp network data.

“People want to see that stores are being cleaned, and our customers want to show the public that they are cleaning when their stores are open,” states Michel Spruijt, vice president and general manager, Brain Corp Europe.

Walmart now has 1,000 robotic units across its stores, sending out strong cleaning signals but also enabling store associates to focus on other tasks and spend more time serving customers.

“Technologies like this prove to be a valuable tool in the support of our retail associates,” said John Crecelius, Walmart’s senior vice president of central operations. “We are excited to expand upon our floor cleaning fleet as we continue to integrate the power of robotics

Three Estonian retailers have become some of the first grocers in the world to deploy Cleveron’s robotic grocery pickup solution, Cleveron 501. Customers place their grocery order online, choose a pickup time, receive an order code, and the grocery robot presents their order after the client enters the PIN on the user console.

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CONVENIENCE.ORG

People want to see that stores are being cleaned, and our customers want to show the public that they are cleaning.

AiFi’s autonomous stores offer a checkout-free experience, including flexible payment methods, an enhanced shopping journey design and operational tools for smart inventory management.

and AI into our daily operations, freeing up associates to serve our customers better.” Retailers benefit from remote software updates and troubleshooting, plus a cleaning record enables stores to optimize operational processes and have proof of their efforts.

As well as targeting European retailers with its three robotic models—20-inch and 26-inch floor scrubbers plus a small vacuum—Brain Corp is developing new applications for the robots, including in-store deliveries and shelf scanning, eliminating more time-consuming and manual processes.

LAST-MILE DELIVERY Within the logistics industry, meanwhile, startups offering innovative last-mile delivery services such as robots, drones, autonomous vehicles and shipments to parcel lockers, are winning the most venture capital funding, McKinsey reports.

“This trend suggests that investors see an opportunity for unconventional last-mile services to complement companies with traditional delivery fleets as they anticipate the next normal in last-mile parcel delivery,” researchers state.

McKinsey cites Nuro as one unconventional startup. It designs, manufactures and CONVENIENCE.ORG

operates delivery robots and is partnering with Kroger to deliver groceries for a fee via R1 driverless delivery vehicles in pilots in Arizona and Texas.

Another unconventional player is the Shenzhen-based Hive Box. Established in 2015, it now operates more than 150,000 parcel lockers located across China, which receive more than nine million parcels per day.

“There are a lot of machines that are being talked about. There are drones.

There are droids: small robots walking the streets. Then there could be parcel lockers—not stationary ones, but ones that are mounted on top of autonomous vehicles and circulate 24/7 in residential areas,” said partner Ludwig Hausmann.

Partner Florian Neuhaus agreed: “What parcel delivery could look like is that you have a central place—maybe for all communities—and there’s a street, and you have one drop-off place. There will be robots that basically pick up the stuff from there, bring it to our homes, and put it in our fridges, because we’ll all own robots that make our bed, do the laundry, whatever.”

Given the recent advancements in robotic and autonomous tech in retail, that doesn’t sound too far-fetched.

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

SEPTEMBER 2020 |

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CATEGORY CLOSE-UP / ICE CREAM/NOVELTIES

A Self-Starter Ice cream/frozen novelties is a category that sells itself.

BY SARAH HAMAKER

JUST THE FACTS According to 2019 NACS State of the Industry data, ice cream/frozen novelties’ average gross margins of 50.33% make it one of the highest merchandise category margins.

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the ice cream box right up front near the checkout,” said Davis Clark, vice president of Mac’s Food Stores, a fourunit chain based in Aberdeen, North Carolina. “The bright, colorful freezer catches the eye of customers, which helps sell the category.”

Since most ice cream sales are impulsebased, the location of the chest freezer can have a big impact on sales. “Having ice cream options in the front of the store during the summer months when children are out of school and families are doing significantly more traveling can help drive impulse purchases,” said Jayme Gough, NACS research manager.

SIZZLING SALES While the category makes up a small percentage of in-store sales (0.5% in 2019), ice cream/frozen novelties’ average gross margins of 50.33% in 2019 make it one of the highest merchandise category margins, according to 2019 NACS State of the Industry (SOI) data. “Because of these high margins, ice cream is a good profit generator in the summer months,” Gough said.

However, this summer was anything but normal, with many parts of the country slowly reopening after the coronavirus pandemic lockdown. Darin Copeland, public relations manager for Prairie Farms CONVENIENCE.ORG

iStock.com/banusevim

W

alk into any convenience store, and chances are, one of the first things you’ll see is a chest freezer with a clear plastic top full of ice cream novelties, like ice cream sandwiches, drumsticks or popsicles.

“We don’t have a freezer section and put

Industry Sales % of In-Store Sales 2018

2019

0.52% 0.50%

% of Stores Selling

Avg. Sales/Store 2018

2018

2019

2019

92.7% 93.0%

$14,041 $13,728

iStock.com/baibaz

Source: NACS State of the Industry Report of 2019 Data

Dairy Inc., predicts that frozen novelties might experience a resurgence of interest as the pandemic continues. “Single-serve items which are individually wrapped are probably more appealing than handmade, scooped foodservice type items that were previously trending at c-stores,” he said.

At Accord Kwik Mart in Accord, New York, ice cream/frozen novelty sales have fluctuated. “COVID-19 has made things a little crazier, and some weeks, our sales are up, and other weeks, sales are down,” said associate Jane Smith.

“Our ice cream sales are down because of COVID-19,” said Clark.

“During the summer, we usually have very good sales in the category, but with traffic down a bit at our stores, sales haven’t been as robust. For example, our volumes in April and May were about half as normal and only started to pick back up in July.”

Ice cream/frozen novelty sales at Busti Country Convenience Store in Busti, New York, have been rockin’. “We’ve had good sales, probably because we’ve been busier, and the summer weather has been hotter,” said owner Barb Nygren.

COLD INNOVATIONS While customers return again and again to the tried-and-true ice cream flavors CONVENIENCE.ORG

and frozen novelties, the overall ice cream category has been experimenting with dairy-free versions in particular.

“The ice cream category saw some interesting innovations last year, including vegan and protein-enhanced varieties,” Gough said. Dairy-free, coconut, almond, soy and even avocado-based ice creams have come on the market, while fruit and peanut bases for sorbet also have debuted. Alcohol-infused ice cream has appeared in some regions of the country as well.

Busti Country Convenience Store sells dairy-free ice cream in pints, which have sold well enough that Nygren will keep stocking the ice cream alternative. “We don’t have any alcohol in the store yet, but we will probably consider offering

The ice cream category saw some interesting innovations last year, including vegan and proteinenhanced varieties.

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.

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CATEGORY CLOSE-UP / ICE CREAM/NOVELTIES

PER STORE, PER MONTH SALES

2017

$1,900

2018

2019

$1,841

$1,800 $1,700 $1,600 $1,500 $1,400 $1,300 $1,200 $1,100 $1,000 JAN

FEB

MAR

APR

MAY

JUN

JUL

AUG

SEP

OCT

NOV

DEC

Source: CSX; csxllc.com

alcohol-infused ice cream in the future if it’s allowed,” she said.

“While the demand for better-for-you ice cream has grown assortment in grocery and other retail outlets, the category is not seeing the same level of demand in the convenience channel,” said Dave Wilcox, vice president of out of home

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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sales for Wells Enterprises Inc., which makes the Blue Bunny ice cream brand.

“Convenience store customers gravitate toward highly indulgent products, like our Blue Bunny Load’d Sundaes. … Indulgent novelties dominate dollar share in the convenience industry.”

Each spring as the weather begins to warm up, Nygren scouts out the new flavor trends at area supermarkets to see what she might want to add to Busti Country Convenience Store’s inventory.

“I don’t have a lot of room in the ice cream freezer, so I want to be sure I have good sellers,” she said. She keeps up with the character-themed frozen novelties, such as SpongeBob SquarePants Popsicle Bars, Minions Ice Cream Bars and Despicable Me Minion Ice Pops. “These CONVENIENCE.ORG

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CATEGORY CLOSE-UP / ICE CREAM/NOVELTIES

Subcategory Performance ICE CREAM/NOVELTIES

% of Sales

Avg. Sales/Store

Avg. GP$/Store

Gross Margin %

2018

2019

2018

2019

2018

2019

2018

2019

Premium Ice Cream

48.0%

46.6%

$6,744

$6,404

$3,276

$3,177

48.58%

49.62%

Frozen Novelties

27.9%

27.2%

$3,920

$3,735

$2,026

$2,087

51.69%

55.88%

Ice Cream

12.9%

15.5%

$1,810

$2,127

$963

$1,166

53.18%

54.82%

Frozen Yogurt/Sherbet/ Sorbet

11.2%

10.7%

$1,566

$1,463

$580

$479

37.02%

32.73%

100.0%

100.0%

$14,041

$13,728

$6,845

$6,909

48.75%

50.33%

TOTAL

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

Source: NACS State of the Industry Report of 2019 Data

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800-837-2881

Join us today. conveniencecares.org @TheNACSFoundation

@NACS_Foundation

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| SEPTEMBER 2020 8/14/2020 10:00:39 AM Quarter Page_Revision.indd 1

8/18/20 2:40 PM

cream alternatives. “We stay away from specialty ice cream because our customers haven’t asked for it,” Clark said. “We stick with our popular sellers, like ice cream sandwiches, drumsticks and pints.”

Indulgent novelties dominate dollar share in the convenience industry.

A COLD SELL While ice cream sales rise and fall with the outside temperatures, retailers can push interest with category promotions. “Due to their nature of immediate consumption, novelties tend to have a seasonality that leans toward the warmer months,” Wilcox said. “We recommend having a mix of both

iStock.com/Kuzmik_A

are very popular with kids and sell out fast,” she said.

Flavor mash-ups also are popular in ice cream. For example, Wells’ Bomb Pop with its three flavors in one stick “continues to be a leader in c-store novelties, in addition to being a nostalgic favorite,” Wilcox said. Wells also recently launched a mashup of cheesecake and ice cream with The Cheesecake Factory Ice Cream pints, which has proved popular in the convenience store channel.

Customers at Mac’s Food Stores haven’t embraced any of the trendy flavors or ice

CONVENIENCE.ORG

3rd Square.indd 1

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CATEGORY CLOSE-UP / ICE CREAM/NOVELTIES

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Accord Kwik Mart puts its chest freezer in the center of the first aisle to catch the attention of customers entering the store, “We don’t do any specials,” said Smith. The store’s best sellers in the category include half gallons, pints, sandwiches and drumsticks.

ICE CREAM FUTURE While generally small in terms of store footprint, the ice cream/frozen novelties category can boost a store’s bottom line.

“Percentage-wise of total sales, ice cream/ frozen novelties is pretty small, but the margins are good enough that it’s a category we’ll keep,” Clark said.

“It’s a good category, margin-wise, so we definitely want to keep it,” Nygren added.

For many customers, ice cream/frozen novelties at convenience stores appeal to their need for an immediate indulgent treat on a warm day. “Americans love ice cream, and they also love convenience, which makes this category a win for retailers,” Wilcox said.

CONVENIENCE.ORG

iStock.com/Sezeryadigar

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

Visit her online at www.sarahhamakerfiction.com.

novelties and packaged ice cream to offset potential shifts to take-home packages during the cooler months.”

“With the summer travel season tapering off into the fall, retailers have an opportunity to advertise back-toschool promotions, sponsorships of local sports teams and fall seasonal flavors in the ice cream/frozen novelties category,” Gough said.

Busti Country Convenience Store positions its ice cream/frozen novelties freezer near the front of the store and stocks it with a dozen or so sandwiches, bomb pops, drumsticks, pints and 1.5 quarts. “We don’t have many choices, and the category basically sells itself,” Nygren said.

Mac’s Food Stores sometimes offers two-for deals, which are popular with families. “When we run those promotions, families tend to get the bundle because it’s a better value,” Clark said.

“While we have ice cream year-round, we haven’t done a lot of promotions in the winter, but we may this year.”

ADVERTISER INDEX Contact Information

Page

ADD Systems.............................................................................................71 www.addsys.com A ltria Group Distribution Company................ Inside Front Cover AGDCTradeRelations@Altria.com www.altria.com Arrow Lighter Inc....................................................................................47 www.mklighter.com B IC Corporation...........................................................................49 www.biclighter.com

Contact Information

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

Page

S wedish Match North America (Game Leaf)..............................53 (800) 367-3677 www.smna.com

Lavi Industries.........................................................................................35 (800) 624-6225 sales@lavi.com www.lavi.com/store-fixtures

S wedish Match North America (Zyn)..........................................17 (800) 367-3677 www.smna.com

L iggett Vector Brands Inc...........................................................23 (877) 415-4100 www.liggettvectorbrands.com

Bob’s Red Mill..........................................................................................67 www.bobsredmill.com C ash Depot.....................................................................................3 (800) 776-8834 sales@cdlatm.com www.cdlatm.com

Lucky Scratcher......................................................................................125 (716) 333-5223 www.luckylotteryscratcher.com

Cheyenne International LLC....................................................................65 (866) 254-6975 contactus@cheyenneintl.com www.cheyenneintl.com Chicago Bar Company LLC (RXBAR).......................................................55 www.rxbar.com

Lux Vending dba Bitcoin Depot..............................................................83 MasonWays Indestructible Plastics LLC................................................124 (800) 837-2881 www.masonways.com M cLane Company Inc................................................... Back Cover www.mclaneco.com

NACS Executive Education Programs.............................................. 112-113 www.convenience.org/NACSExecEd

ClickIt Inc.................................................................................................25 www.clickitinc.com

NACS Executive Leadership Program....................................................28 www.convenience.org/ExecEd-Kellogg

DMF Bait Company.................................................................................. 81 (800) 332-2248 orders@dmfbait.com www.dmfbait.com

NACS Foundation............................................................................... 6, 124 www.conveniencecares.org

Electrolit USA...........................................................................................29 www.electrolit.com Essentia Water LLC..................................................................................43 (877) 293-2239 sales@essentiawater.com www.essentiawater.com Heritage CBD........................................................................................... 57 (800) 674-3671 www.HeritageCBD.com I TG Brands.................................................................................... 37 www.itgbrands.com Johnsonville Sausage LLC.......................................................................75 www.johnsonville.com J UUL.........................................................................................30-31 retailers@juul.com

CONVENIENCE.ORG

S wisher International Inc.............................................................9 (800) 874-9720 S wisher International Inc.......................................................10-11 (800) 874-9720 TravelCenters of America.......................................................................111 franchising@ta-petro.com www.ta-petro.com/franchising Trion Industries Inc..................................................................................15 (800) 444-4665 info@triononline.com www.triononline.com Vitamin Energy LLC......................................Front Cover Tip & Pgs. 38-39 (800) 420-3106 Orders@VitaminEnergy.com www.VitaminEnergy.com

NACS Emergency Planning................................................................... 109 www.convenience.org/preparedisaster

Christy & Main Inc................................................................................. 105 (800) 382-5394 andy@christyandmain.com

E & J Gallo Winery....................................................................... 61 www.gallo.com

Page

K rispy Krunchy Foods LLC...........................................................89 (800) 290-6097 www.krispykrunchy.com

L iving Essentials LLC (5-hour ENERGY)........................................7 (866) 960-1700 www.5HErewards.com

C hester’s International, LLC.............................. Inside Back Cover www.chestersinternational.com

Contact Information

NACS Magazine........................................................................................93 www.nacsmagazine.com/instant NACS State of the Industry Compensation Report.................................4 www.convenience.org/CompReport NACS State of the Industry Report........................................................123 www.convenience.org/SOIReports2020 NACS Virtual Experience...................................................................94-95 www.nacsshow.com/virtual Ocean Spray Cranberries Inc.................................................................. 73 www.oceanspray.com Premier Manufacturing Inc..............................................................5 & 63 www.gopremier.com S mithfield Foods......................................................................... 91 www.smithfieldfoods.com S wedish Match North America (Game)......................................45 (800) 367-3677 www.smna.com

SEPTEMBER 2020 |

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BACK PAGE

$

Making Memories Appear Who doesn’t love seeing a proud grandparent? A viral video shows a grown man impressing an elderly woman—we are assuming his grandmother—through a classic magic trick that makes a ball disappear under two cups. What makes this video standout is the cups are Wawabranded coffee cups. Many commentators said the video reminded them of happy memories with their grandparents. Some even speculated that the grandmother played along to make her grandson feel special, despite the fact that he’s a grown, bearded man. Another simply stated, “I’m just here for the Wawa cups.”

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| SEPTEMBER 2020

Regular Kindness

One convenience store regular received a nice surprise from a store associate. The clerk noticed that the customer was having a rough week and couldn’t afford much gas after paying for his kids’ snacks for school.

After the man left the store to pump the gas, the clerk went into his own pocket to add an extra $14 to the man’s fill-up. Once he realized that his fill-up was over what he paid, the man rushed inside to find out what happened, and the associate explained how he’d chipped in for gas.

The regular was extremely appreciative and told him how much that act of kindness helped him. There is still lots of good in the world.

Blinded by the Sauce Police in Shippensburg, Pennsylvania, are seeking three men accused of assault.

Their weapon of choice? Sheetz Boom Boom Sauce. The incident occurred around 1 a.m. when the trio threw the sauce at a passerby. Police said the sauce got into the victim’s eyes, causing irritation and temporary blindness. (Cayenne pepper is one of the ingredients in the Sheetz fan favorite Boom Boom Sauce.) The sauce hurlers are still at large.

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

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