NACS Magazine September 2022 by NACS Magazine

Advancing Convenience & Fuel Retailing SEPTEMBER 2022 NACS SHOW Make a plan for Las Vegas STORE SECURITY Best practices for deterring crime convenience.org OPPORTUNITIESFRANCHISEAWAIT. THE SKY IS THE LIMIT. Join our growing national network. See us at NACS Booth #6477 Scan the QR code to learn more about our franchising opportunities.

Advancing Convenience & Fuel Retailing SEPTEMBER 2022 NACS SHOW Make a plan for Las Vegas STORE SECURITY Best practices for deterring crime convenience.org

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FEATURES 36 Crafting Your ESG Story Parkland USA and Hightowers Petroleum share how they approach ESG initiatives and reporting. 47 of‘Unleader’thePack Effective unleaders view their companies and themselves from the perspective of front-line employees. 54

As retailers consider providing EV charging capabilities, choosing the right business model can mean the difference between profit and loss.

Full Speed Ahead Learn together at the 2022 NACS Show. 66

72 Model Behavior

STAY CONNECTED WITH NACS

FoodServingSafely Join food heavyweightssafetyat the Conference.NACSc-store-specificFoodSafety

AdvantageDrive-Thru Window service helps c-stores compete with QSRs but can crimp impulse sales. 92 Security Check Show potential criminals your c-store isn’t worth the risk by following these best practices. 100 The ROI Self-Checkoutof A Q&A with Crane Payment Innovations Inc. 102

A Festive Look Holiday and improveimpulsemerchandisingseasonaldrivesalesandstoretraffic. 136

Small Business, Big Voice A savvy social media strategy can make a large impact for small, independent retailers. ‘Snealing’ Is the New Word in Snacks Sweet and salty treats are cozying up to agivingmealtime,salesboost.

NACS SEPTEMBER 2022 1

The Pinch of Inflation

As consumers curb spending, retailers are developing a 2.0 plan for turbulence.forasinflationarycombatingpressuresexpectationsrisemoreeconomic 84

CommunityaCreatingCaring The fourth annual 24/7 Day celebrated the betweenpartnershipsc-stores and those on the front lines. 120 Capturing the Herd Black Buffalo offers a unique form of moist smokeless tobacco— starting with the humble leafy green. 124 Leveraging Loyalty Food and beverages play key roles in c-store customer loyalty programs. 130

ONTENTS NACS / SEPTEMBER 2022

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

2 SEPTEMBER 2022 convenience.org The presence of an article in our magazine should not be permitted to constitute an expression of the association’s view. PLEASE RECYCLE THIS MAGAZINE ImagesNovakGettyShana CATEGORY CLOSE-UP PAGE 154 IT’S A FACT $4,646 The average monthly sales per store for the general merchandise category in 2021. DEPARTMENTS 06 From the Editor 08 The Big Question 10 NACS News 22 Convenience Cares 24 Inside Washington Tobacco companies reach tobringlawmakerssettlement;signagetelltocompetitioncreditcards. 34 Ideas 2 Go After decades of working for others, Jaewon Lee branched out on his own with Le Café Market. 142 Cool New Products 152 Gas Station Gourmet The barbecue at Hog Heaven in Mississippi is out of this world. 154 Category Close-Up Tailor your specificmeetcategorymerchandisegeneraltocustomers’needs. 164 By the Numbers ONTENTS NACS / SEPTEMBER 2022

from?comingbignextisWhereMatters.Seeconvenience.org/membershipWhyNACSyouridea / SEPTEMBER 2022

POSTMASTER: Send address changes to NACS Magazine, 1600 Duke Street, Alexandria, VA, 22314-2792 USA.

KimEDITORIALStewart kstewart@convenience.org(703)Editor-in-Chief518-4279

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

Rose Johnson Audience Development and Production Manager (703) rjohnson@convenience.org518-4218

Lisa King Managing Editor (703) lking@convenience.org518-4281 Sara Counihan Contributing Editor (703) scounihan@convenience.org518-4278

PAST CHAIR: Julie Jackowski, formerly Casey’s General Stores Inc.; Kevin Smartt, TXB Stores

Subscription requests: nacsmagazine@convenience.org

KevinCHAIR-ELECT:Farley , GSP

NACS Magazine (ISSN 1939-4780) is published monthly by the National Association of Convenience Stores (NACS), Alexandria, Virginia, USA.

VICE CHAIR: David Charles, Cash Depot; Vito Maurici, McLane Company; George Ubing, E&J Gallo Winery

Subscriptions are included in the dues paid by NACS member companies. Subscriptions are also available to qualified recipients. The publisher reserves the right to limit the number of free subscriptions and to set related qualifications criteria.

CHAIR: Jared Scheeler, The Hub Convenience Stores Inc.

NACS BOARD OF DIRECTORS

CONTRIBUTING WRITERS Terri Allan, Sarah Hamaker, Al Hebert, Bruce Horovitz, Renee Pas, Jerry Soverinsky DESIGN www.imaginepub.comImagination

Ted Asprooth National Sales Manager/ Midwest, West (703) tasprooth@convenience.org518-4277

NACS SUPPLIER BOARD CHAIR: Brent Cotten, The Hershey Company

PAST CHAIR: Rick Brindle, Mondelez International; Kevin Martello, Keurig Dr Pepper; Drew Mize, PDI Technologies

StephaniePUBLISHINGSikorski Vice President, Marketing (703) ssikorski@convenience.org518-4231

Jennifer Nichols Leidich National jleidich@convenience.org(703)Manager/NortheastAdvertising518-4276

TonyMEMBERS:Battaglia, Juul Labs; Alicia Cleary, AnheuserBusch InBev; Matt Domingo, Reynolds; Mike Gilroy, Mars Wrigley; Josh Halpern JRS Hospitality; Danielle Holloway,Altria Group Distribution Company; Jim Hughes, Molson Coors Beverage Company; David Jeffco, Dirty Dough LLC; Kevin M. LeMoyne, Coca-Cola Company; Kevin Martello, Keurig Dr Pepper; Bryan Morrow, PepsiCo Inc.; Lesley D. Saitta, Impact 21; John J. Thomas, iSEE Store Innovations LLC; Sarah Vilim, Keurig Dr Pepper; Dean Zurliene, Monster Energy Company

RETAIL REPRESENTATIVES:BOARD Scott E. Hartman, Rutter’s; Steve Loehr, Kwik Trip Inc.; Chuck Maggelet, Maverik Inc.

StaceyADVERTISINGDodge Advertising Director/ sdodge@convenience.org(703)Southeast518-4211

MEMBERS: Chris Bambury, Bambury Inc.; Frederick Chaveyriat, MAPCO Express Inc.; Andrew Clyde, Murphy USA; Chris Coborn, Coborn’s Inc. Little Dukes; George Fournier, EG America LLC Terry Gallagher, Gasamat Oil/Smoker Friendly; Anne Gauthier, St. Romain Oil Company LLC; Douglas S. Haugh, Parkland USA; Raymond M. Huff, HJB Convenience Corp. dba Russell’s Convenience; Ina (Missy) Matthews, Childers Oil Co.; Charles McIlvaine, Coen Markets Inc.; Lonnie McQuirter, 36 Lyn Refuel Station; Jigar Patel, FASTIME; Elizabeth Pierce, Applegreen LTD; Glenn M. Plumby, 7-Eleven Inc.; Robert Razowsky, Rmarts LLC; Richard Wood III, Wawa Inc. SUPPLIER BrentREPRESENTATIVES:BOARDCotten , The Hershey Company; Kevin Farley, GSP STAFF LIAISON: Henry Armour, NACS GENERAL COUNSEL: Doug Kantor, NACS

STAFF LIAISON: Bob Hughes, NACS SUPPLIER NOMINATINGBOARDCHAIR:BradMcGuinness , PDI Technologies With a membership,NACS you’ll network with the best and the brightest of the convenience industry. With leading retailers, and the suppliers and manufacturers of products known and loved the world over.

The Rich,The Bold FlavoBold FlavoR ooF Our premium quality cigarettes, pipe tobacco, cigarette tubes, and roll-your-own tobacco products are all made from the finest U.S. tobacco. ContaCt us today! www.gopremier.com/contact a customer favorite — now available— in enticing NeW PacKaGiNG

Last year, Shell wholesalers and retailers donated more than $1.5 million to support over 400 children’s charities through The Giving Pump. That’s a ter rific story worth telling.

Kim Stewart Editor-In-Chief,

In “Crafting Your ESG Story,” we ex plore another kind of story that business es increasingly find themselves needing to tell investors, boards of directors and the other businesses with which they transact. We talked to executives at Parkland USA and Hightowers Petro leum, who told us how they approach reporting their environmental, social and governance initiatives.

Shell’s “The Giving forfundraiserPump”children’scharitiesrunsthroughOctober31.

Finally, I need to brag just a bit. This is our largest September issue ever! A huge thank you to our advertisers, many of whom are NACS members, for support ing our work. And a hearty thanks to you, dear reader, for spending time with us. See you next month in Las Vegas at the NACS Show!

consumers tap the brakes on spending; “Security Check,” tips for amping up the safety of your c-store; and “Small Busi ness, Big Voice,” how small retailers are making a big splash on social media.

If you’re headed to Las Vegas next month for the NACS Show, October 1–4, you’ll find lots of helpful information here to help you plan your time at the Show. Read “Unleader of the Pack,” a pro file of Scott Stratten, best-selling author and founder of the firm Unmarketing, for a sneak peek at the general session he will headline on “Unleadership.”

On a recent day, I pulled up to a pur ple-wrapped pump at my local Shell sta tion, where my fill-up helped to support Children’s National Hospital. On that day at least, I felt good about buying gas.

Tanner Krause, CEO, Kum & Go, shared what corporate social respon sibility means for the Des Moines, Iowa-based convenience retailer in this month’s Big Question interview. As Krause notes, “there’s a lot of opportunity to do good and to do better in this world.”

Also not to miss: “Creating a Car ing Community,” a recap of the NACS Foundation’s fourth-annual 24/7 Day; “The Pinch of Inflation,” a look at how retailers are managing expectations as

ThingtheDoingRight UP FRONT FROM THE EDITOR

It’s “Giving Pump” or “Spirit Pump” season at many gas stations across the U.S. as fuel retailers dedicate a portion of the proceeds of specially designated pumps to benefit nonprofits, many of which are charities focused on chil dren’s health care, literacy and welfare. Shell’s initiative, for instance, began in August and runs through October 31 at more than 6,500 stations across the U.S.

6 SEPTEMBER 2022 convenience.org

opportunityaThere’slotof to do good and to do better in this world.

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8 SEPTEMBER 2022 convenience.org UP FRONT THE BIG QUESTION

Ultimately, as we step back from the fun chaos that is retail operations and observe the increasing number of natural disasters, the ongoing inequities for minority groups, the floating barges of garbage polluting our water or any other negative side effect from the commercial boom of the last hundred years, we at Kum & Go recognize that businesses are incredibly influential in shaping the quality of life both today and for decades to come. There’s a lot of opportunity to do good and to do better in this world. No single entity can tackle it all. Yet if we all can lean in, set goals and make progress, we can be in a place where we’ve accomplished more than just budgets and bonuses. We can accomplish healthier people and a healthier planet.

How does Kum & Go approach corporate social responsibility?

 Tanner Krause, Chief Executive Officer, Kum & Go to ensure we can effectuate the social progress they hope to achieve. Krause Group breaks CSR into four pillars: Purpose, People, Philanthropy and Planet. Within each pillar, we had freedom to choose how we would make an Second,impact.weconducted a companywide associate survey with the main purpose of learning what CSR activities would make our associates most proud to work for Kum & Go. Key takeaways include: ‘We’d like to see more philanthropy in my community,’ and, ‘please help us stop throwing so much stuff in the dumpster,’ as well as, ‘financial education is incredibly important to me.’ Next, the Kum & Go senior team will publish our first-ever roadmap for our CSR activities. Our team brings an exciting intrinsic passion for doing the right thing as a business, and now we can move forward with confidence that our actions in this space will deepen engagement with our store associates and ownership. In 2023, we will empower each CSR Pillar Lead to create the strategy to successfully bring our vision to life by the end of the decade. Like anything, success in this space will largely be driven by the resources we put behind it. It’s been said the scarcest resource in a business is senior management’s time and attention, so we will hold ourselves publicly accountable to our progress. We’ve also seen a tremendous step forward in progress where we’ve added headcount and expertise to the work. Kum & Go now has dedicated associates focused on philanthropy, DEI, sustainability, energy, associate wellbeing and more.

Whether it’s corporate social responsibility or referred to by the trendy acronym ‘CSR’ or lumped together with ‘ESG,’ the business world is flush with titles for ‘trying to do the right thing.’ Whether a company has four stores or 4,000 stores, they have an impact on their community. The concept of corporate social responsibility is one that we take literally at Kum & Go. Social responsibility. As in, we have a responsibility to our society—not just our shareholders. Thus, all our CSR ambitions stretch beyond a competitive financial payback and into territories that are truly about being a good corporate citizen. At Kum & Go, we embrace this role in society and have just finished our first-ever Kum & Go CSR 2030 Vision plan. As you will see in our recently released 2021 Corporate Social Responsibility Report, we capture a multitude of practices across our business. Yet when we set our sights on how we can leverage our organization for the betterment of others, we are focused on decisions that otherwise wouldn’t happen if we weren’t conscious about our overall impact on the world. In developing Kum & Go’s CSR 2030 Vision, we started with two major influences: the direction from our parent company and the voice of our associates. As the largest of 11 operating companies owned by Krause Group, we closely coordinate our efforts with the ownership’s goals

Exceptional Retailers

The APCO 24/7 Café located in Wangaratta, Victoria, Australia, caters to the needs of its local community and has developed its convenience retail format to offer customers a quick and easy shop ping experience that allows for fill-in grocery shopping, fresh to-go foodser vice and a full barista-made coffee offer. Judges agreed that the store truly offers a one-stop-shop that delivers everyday convenience with affordable pricing.

labor through education, and developed a retail business model that combines the best aspects of convenience with the competitive value of supermarkets.

NACS recognized four outstand ing Asian convenience retailers during its NACS Asian Conve nience Retail Awards, which took place July 20 in Singapore during NACS Con venience Summit Asia. This prestigious competition recognizes outstanding achievements in the Asian retail commu nities. The awards—judged by the pillars of the convenience industry—provide some of the greatest benchmarks in Asian convenience retailing excellence.

NACS Convenience Summit Asia Awards 4

L to R: Mark Calhoun, senior director, global customers, The Hershey Company, and Peter Anderson, director, APCO, Australia, the winner of the 2022 NACS Asian Convenience Retailer of the Year Award.

When the COVID-19 pandemic tremendously affected youth access to education in 2021, CP ALL developed an online teaching and learning system for students. This new method of learning made education easier, faster and safe.

APCO has 24 retail sites throughout New South Wales, Australia, and is growing its 24/7 Café convenience retail brand.

L to R: NACS President and CEO Henry Armour; Kevin White, managing director, SEA, Gilbarco Veeder-Root Asia; and Mark Wohltmann, director, NACS Global, award the 2022 NACS Asian Convenience Retail Technology Honorable Mention to 24Seven of New Delhi India.

CP ALL also strives to work with its suppliers as partners. According to Buranamanit, CP ALL works with its suppliers to help differentiate 7-Eleven stores in Thailand by working together on communications and merchandising strategies.Blibeereceived the NACS Asian Con venience Retail Technology Award for its fully automated convenience store

10 SEPTEMBER 2022 convenience.org UP FRONT NACS NEWS

NACS President and CEO Henry Armour and Kent Montgomery, head of industry relations, PepsiCo Inc., discuss leadership and the 2022 NACS Asian Convenience Industry Leader of the Year winner, Mr. Tanin Buranamanit, managing director and CEO of CP ALL Plc, Thailand.

Tanin Buranamanit, managing direc tor and CEO of CP ALL Plc, operator of 7-Eleven convenience stores in Thailand, was named the 2022 NACS Asian Con venience Industry Leader of the Year The award was sponsored by PepsiCo. Under Buranamanit’s leadership, CP ALL dramatically grew its store count, supported expanding and upskilling

APCO received the 2022 NACS Asian Convenience Retailer of the Year Award for its APCO 24/7 Café Wanga ratta. The award was sponsored by The Hershey Company.

L to R: NACS President and CEO Henry Armour; Julio Lopez, vice president of franchise operations, Coca-Cola Indonesia; Rem Pine, mobility lubricants category manager, Pilipinas Shell, Philippines; Randy Del Valle, vice president and general manager, mobility, Pilipinas Shell, Philippines; and Mark Wohltman, director, NACS Global. Pilipinas Shell won the 2022 NACS Asian Convenience Retail Sustainability Award.

12 SEPTEMBER 2022 convenience.org UP FRONT NACS NEWS

Thank you to our NACS Asian Convenience Retail Award sponsors: concept. The award was sponsored by Gilbarco Veeder-Root. Blibee (“Convenience Bee”) cur rently has more than 2,000 compa ny-owned-and-operated stores in 20 cities in China, chiefly concentrated in business districts, and plans a major expansion push into tier-2 and tier-3 cities. The stores use cameras and sen sors that constantly send information to centralized data processors that analyze customer traffic, manage electronic shelf tags and manage in-store operations like product selection and employee sched uling, as well as food choices and menu optimization.Otherfully automated aspects of the store include automatic temperature controls and self-service checkouts. Blibee’s Convenience Bee stores carry nearly 400 proprietary products, and customer preference determines which products are sold. Pilipinas Shell Petroleum Corporation received the 2022 NACS Asian Conve nience Retail Sustainability Award for its Zero Emissions Goal by 2050 initia tive. The Coca-Cola Company sponsored thePilipinasaward. Shell is committed to manag ing emissions of greenhouse gases, using less energy more efficiently, flaring and burning off less gas during oil produc tion, preventing spills and leaks of haz ardous materials, using less fresh water and conserving biodiversity wherever it operates. The company is committed to becoming a net-zero emissions energy business by 2050. In December 2021, Pilipinas Shell launched a collaboration with Mazda Philippines to offset CO2 emissions, mak ing Mazda the first in the car dealership industry to drive carbon neutrality in the Philippines. The voluntary carbon offset program recognizes that, while the industry is trying to avoid or reduce emissions, the need for traditional fuel options remains during the transition. Through Pilipinas Shell, participat ing companies can offset their fleet’s unavoidable CO2 emissions produced by the fuel purchased from Shell-branded service stations.

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Get Global Insights

The quarterly report provides industry-leading data, macro trends and analysis across 23 countries in North America, Europe and Asia-Pacific. The data presented in the report provide global, regional and country-level views of the convenience channel.

The National Electric Vehicle Formula Program (NEVI Formula Program) provides $5 billion of funding to all 50 states; Washington, D.C.; and Puerto Rico to strategically deploy publicly accessible DC fast-charging infrastructure and establish an intercon nected network to facilitate data collection, as well as access and reliability.

All employees of NACS member companies enjoy:

14 SEPTEMBER 2022 convenience.org ImagesBlackJack3D/GettyImages.deepblue4youGetty UP FRONT NACS NEWS

With $7.5 billion on its way for zero-emissions vehicle (ZEV) infrastructure under the Infrastructure Investment and Jobs Act, the Fuels Institute Electric Vehicle Coun cil has released a summary, written in partnership with the Center for Sustainable Energy, of two programs, the NEVI Formula Program and Corridor Charging Grant Program. The summary serves to help retail businesses navigate their way through how to obtain financial support. Depending on their locations, retailers may be eligible as site hosts for both programs if they meet specified conditions.

Look for the report at www.convenience.org/NIQglobal

Don’t Forget to Renew Your NACS Membership

• Free or discounted rates to a global portfolio of events, reports and resources

• Members-only access to VIP and industryleading events, expos and education

Tap Into EV Grants

NACS is excited to partner with NielsenIQ on the NACS Global Convenience Store Industry Report, a unique convenience-industry-specific newsletter which launched in August.

The report will be updated and released quarterly, and a consolidated annual report of 2022 will be available in the first quarter of 2023.

• Personal introductions and representation through our national advocacy For member-only access events at the 2022 NACS Show, a NACS membership is something you don’t want to go without! Renew today at membershipwww.convenience.org/

Be sure to renew your com pany’s membership before attending the NACS Show in Las Vegas so you can enjoy the benefits

fitsNACSmembership.ofbenearedesigned to ensure the competitive vitality of member companies and their employees.Pluginto the latest insights, trends, tools and innovations from around the globe. NACS makes it easy for you to exchange knowl edge and cultivate partner ships with leading retailers and experts in our industry.

The Discretionary Grant Program for Charging and Fueling Infrastructure (Cor ridor Charging Grant Program) provides competitive grants totaling $2.5 billion for the strategic deployment of EV infrastructure, hydrogen infrastructure, natural gas infrastructure and propane infrastructure along alternative fuel corridors or in certain otherThelocations.Department of Energy and Department of Transportation (DOT) are jointly overseeing the planning, funding, implementation, charger utilization data collection and evaluation of these two programs. These agencies formed the Joint Office of Energy and Transportation, which will guide and oversee the NEVI Formula Program. DOT will provide guidance for the Corridor Charging Grant Program by September 30, 2022, and will oversee its implementation.

NACS welcomes the following companies that joined the association in June 2022. NACS membership is company-wide, so we encourage employees of member companies to create a username by visiting www.convenience.org/Create-Login.

NEW RETAIL MEMBERS

Five Brothers LLC Chattanooga, TN Hinckley Station LLC Hinckley, UT Kin & Rit Inc. dba Lucky Store/ Lucky II Mart Rota, MP, Northern Mariana Islands Kips Wine & Spirits Tulsa, OK Merced Mall Chevron Merced, CA Pete’s Market Portland, www.petesfresh.comOR

Ewing Oil LLC Grand Forks, www.ewingoilcstores.comND

Bill Saver USA Inc. Rochester, NY blk International LLC Calabasas, www.getblk.comCA

Fast Track Packaging Inc. Guelph, www.ftpackaging.caON Ficacci Olive Co. Castel Madama, Roma, Italy www.1964.ficacci.it Fusion Connect Inc. Atlanta, www.fusionconnect.comGA Gluon Solutions Inc. Livermore, www.petromo.comCA Gunna Craft Soda Woking, Surrey United www.gunnadrinks.comKingdom iControl Data Solutions Inlet Beach, FL International Trade Imports LL Alpharetta, GA Katysweet Confectioners La Grange, TX Kiosk Prepaid Las Vegas, www.kioskprepaid.comNV

23 & Card Liquor Shop LLC Macomb, MI 2950 Partners Bensalem, PA America Petroleum Miami Beach, FL Aurora Stores Inc. Anchorage, AK Circle C Market Sanger, CA Combanc Development I LLC Raymore, MO Comercializadora De Alimentos Maggs de RL de CV Mexicali, BC, Mexico CountryMark Indianapolis, www.countrymark.comIN

UP FRONT NACS NEWS

The Corner Store Plymouth, MA Tip Top Inc. Watertown, SD Trumbull Mart LLC Trumbull, CT NEW HUNTER CLUB BRONZEMEMBER Factory LLC Bethlehem, www.factory-llc.comPA NEW MEMBERSSUPPLIER ADS-Tec Energy Inc. Lakewood Ranch, www.adstec-energy.comFL

VOX Supply Partners Chicago, www.voxsp.comIL Wetzels Pretzels Pasadena, www.wetzels.comCA ZOLT LLC Stafford, www.zoltpouches.comTX

Southern Gas Station Inc. Mercedita, PR Sumrall Oil Services Inc. Bay Springs, www.sumralloilservices.comMS

Cambro Manufacturing Huntington Beach, CA www.Cambro.com Chico Enterprises Inc. dba Dairy Mart Foods/All Star Exp. Morgantown, www.omegabump.comWV Cleveland Kitchen Cleveland, OH COOP Bev Works Oklahoma City, www.coopaleworks.comOK D’lush Tampa, FL Eastern Infants Wear T/A Nory Footwear East Hanover, www.thenortybrand.comNJ Essity www.torkusa.com

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.

Miltek USA Waste & Recycling Sterling, www.miltekusa.comVA Morski Brands Inc. dba Dawn’s Foods Portage, www.dawnsfoods.comWI Muscle Foods USA Virginia Beach, www.musclefoodsusa.comVA Nuts ‘N More East Providence, RI Palmyra Bologna Company Inc. dba Seltzer’s Smokehouse Meats Palmyra, www.seltzerslebanon.comPA

Evolution Revolution Hudson, www.evolrevol.comOH

16 SEPTEMBER 2022 convenience.org

Parts Town LLC Addison, www.partstown.comIL Radeberger Gruppe USA Norwalk, www.radeberger-gruppe-usa.comCT Ranch House Sausage Co. Billings, www.ranchhousesausage.comMT Schneider Downs & Co. Inc. Pittsburgh, PA Speed Data LLC Dallas, www.speeddatallc.comTX Speedy Foods Commerce City, www.speedyfoods.comCO

New Members

Stone Brewing Co. Escondido, CA Straight Up Nuts Inc. Winter Springs, www.straightupnuts.comFL Swanel Beverage Inc. Hammond, IN Trulux Solutions Ferndale, truluxsolutions.comMI Veggies Made Great Rahway, service.comwww.veggiesmadegreatfoodNJ Vendors Exchange Cleveland, www.veii.comOH

Bourbon Foods USA Washington, DC Bremer Bank Rochester, www.bremer.comMN

Trion Industries, Inc. TrionOnline.com info@triononline.com 800-444-4665 Gain Facings and Cut Labor with WONDERBAR® Tray Merchandising n Increased facings from 99 to 121, a 22% increase*. n Automatically billboards and faces product. n Reduces losses from bag hook tearout. n Cuts over 1 hour/day labor for restocking. n Allows rear restocking and proper date rotation. n Dramatically increases sales in the same space. n Adjusts to accommodate various package widths. * Based upon average 8’ run by 5’ high salty snack gondola installations. Your results may vary. ©2020 Trion Industries, Inc. MODERNIZE YOUR MERCHANDISING Sell More Salty Snacks WonderBar® Tray Merchandising VS BEFORE WONDERBAR® 99 FACINGS AFTER WONDERBAR® 121 FACINGS SELL MORE IN THE SAME SPACETM

Tracey Budz Lonnie Hunt Bob Kenyon

OCTOBER2022 NACS Show October 01–04 | Las Vegas Convention Center | Las Vegas, NV NOVEMBER NACS Innovation Leadership Program at MIT November 06–11 | MIT Sloan School of Management | Cambridge, MA NACS Women’s Leadership Program at Yale November 13–18 | Yale School of Management | New Haven, CT FEBRUARY2023 NACS Leadership Forum February 08–10 | Eden Roc | Miami Beach, FL NACS Convenience Summit Asia February 28–March 02 | Waldorf Astoria Bangkok | Bangkok, Thailand MARCH NACS Day on the Hill March 07–08 | Washington, D.C. APRIL NACS State of the Industry Summit April 18-20 | Hyatt Regency DFW International Airport | Dallas, Texas NACS Leadership for Success April 30-May 05 | Virginia Crossings Hotel & Conference Center | Glen Allen (Richmond), VA MAY NACS Convenience Summit Europe May 30-June 01 | Intercontinental Dublin | Dublin, Ireland OCTOBER NACS SHOW October 03-06 | Georgia World Congress Center | Atlanta, Georgia Calendar of Events For a full listing of events and information visit www.convenience.org/events. Sybil Jandette Alex Fishkin

Bob Kenyon has

18 SEPTEMBER 2022 convenience.org UP FRONT NACS NEWS Member News RETAILERS

chief legal officer positions at Luminar Technologies Inc. and Momentus Inc. and has experi ence building world-class legal teams and scaling operations and key business partnerships.

Love’s Travel Stops has hired Tracey Budz as the Boeing,Budzcommunications.offirstcompany’sdirectorcorporatecomesfromwhere she served as a senior communi cations manager for four years. Budz will oversee all communica tion efforts for the Love’s family of companies, including Love’s Travel Stops and Country Stores, Trillium Energy, Musket, Gemini Motor Transport, Love’s Truck Care and Speedco. Budz has more than 24 years of experience in corporate communications.

ofthandent.divisionIndustriesColonialSavannah-basedjoinedOilInc.aspresiWithmore28yearsexperience in fuel operations, Kenyon most recently served as senior vice president, sales and marketing for Renewable Energy Group Inc. Kenyon is also the former presi dent of Atlas Oil. SUPPLIERS Hunt Broth ers Pizza oftheannouncedsadlypassingco-founder Lonnie Hunt , who died peace fully in his sleep on July 6, 2022. Hunt was an inspirational force personally and professionally, al ways striving to embody the core guiding principles Hunt Brothers Pizza was founded upon—being a blessing to people. In 1991, Hunt and his brothers co-founded what is now Hunt Brothers Pizza, where each brother brought their own strengths to the company. Hunt’s drive, determination and innovation were critical to the now 30+ years of success of the thriving family business. Sybil Jandette has joined Excel Dryer Inc. as business devel opment manag er, Latin Amer ica. A resident of Mexico with extensive expe rience in supply chain manage ment, Jandette will be responsi ble for developing Excel Dryer’s strategy and growth in the Latin American market. Alex Fishkin has joined previouslycounsel.andchiefnologiesFreeWireCalifornia-basedNewark,TechInc.aslegalofficergeneralFishkinheld

MAPCOMillennials.was awarded Top Workplace 2022 by The Tennessean.

MAPCO was awarded a Top Workplaces 2022 honor by The Tennessean Top Workplaces. The list is based solely on employ ee feedback gathered through a third-party survey, which measures 15 culture drivers that are critical to the success of any organization.

TravelCenters of America was honored as a 2022 Top Work place in Northeast Ohio by cleveland.com and the Plain Dealer. This recognition is based solely on feedback from team members in a workplace survey conducted ear lier this year. The survey measures employee satisfaction and the drivers that achieve high employee retention. More than 640 Trav elCenters of America employees participated in the survey.

Mark

ElaineMaroszWu

Travel Centers of America was named a 2022 Top Workplace in Northeast Ohio. Sheetz came in at No. 52 as a WorkplaceBest for

SheetzKUDOS made the list for Best Workplaces for Millennials in 2022, coming in at No. 52. The Best Workplaces survey found that 90% of employees say that Sheetz is a great place to work, compared with 57% of employees at other U.S.-based companies. “Sheetz encourages employees to be themselves at work, which makes the work more enjoyable with your co-workers as well as the custom ers’ experience better because they feel they are talking to a per son not a corporate entity,” said one Sheetz employee.

20 SEPTEMBER 2022 convenience.org UP FRONT NACS NEWS Elaine Wu is FreeWire’s new vice president of strategic sourc ing and supply chain. Wu brings extensive exper tise in domestic and international sourcing as a leader across the health care, biotechnology and pharmaceutical industries. Wu will play a critical role in ensuring FreeWire navigates the supply chain landscape in unprecedent ed global supply shortages. Mark Marosz has joined FreeWire as vice presi dent of quality and ingexperiencethanMaroszcompliance.hasmore30yearsofworkalongsidethe engineering and manufacturing teams in start-ups and Fortune 500 companies. Marosz special izes in implementation, certifica tion and maintenance of quality systems for new product intro duction and overseeing efficient product manufacturing.

FITS DAY-PARTSALLFIRST ONE-OF-A-KINDEVER HOLDSHEAT HOTPROVENCASESUCCESS STUFTPROFITSWITH CUSTOMAVAILABLEFILLINGS 1.41OZ EACH FOR GRAB-AND-GO LOVESEVERYONETHEM MELTY CHEESE FILLINGS CRISPY HASHBROWNS ENERGIZE YOUR HOT CASE & PROFITS WITH STUFT SPUDS NOW! stuftspuds.com © 2022 Contact Stuft Spuds Founder, Stephen Caldwell to schedule an appointment to meet with him at the NACS Show. Stephen will demonstrate how Stuft Spuds can deliver incremental sales and proﬁts to your operation. Call 503-333-7700 to conﬁrm your NACS Show appointment. WHY ARE C-STORES HOT FOR STUFT SPUDS?

n just 48 hours, eight to 10.5 inches of rain fell in parts of Eastern Kentucky, Southern West Virginia and Western Virginia in July, leaving catastrophic damage and claiming the lives of more than 35 people. Missy Matthews, pres ident of Childers Oil Company/double kwik, which has 40 locations in Eastern Kentucky, described the situation as “beyondDoublewords.”kwikis based in Whitesburg, Kentucky, which was hit particularly hard by the historic flooding. The area is at the headwaters of the Big Sandy River, the Cumberland River and the North Fork of the Kentucky River. The river that runs through Whitesburg is normally 10 feet wide and ankle deep, but once the North Fork crested at 20.9 feet, the area downstream of the river was completely devasted for 60 miles. More than two dozen double kwik employees were deeply impacted by the flooding, with some losing everything they owned. In response, double kwik transformed its distribution center into an unloading and reloading zone for relief deliveries.

The NACS Foundation Response Relief program partners with the Amer ican Red Cross to support the urgent humanitarian needs of the American Red Cross and spotlights the convenience and fuel retailing industry’s important role in supporting local heroes and the commu nities we serve. You can donate to the American Red Cross at org/donate/cm/nacs-pub.html.www.redcross.

Benjamin Gish, editor at The Mountain Eagle based in Whitesburg, Kentucky, described the area’s situation on Facebook. “The situation is beyond awful and as a result of what has to be a once-in-a-million years flash flood,” he wrote. “The flash-flooding came without warning and caused hurricane-like de struction due to the sheer force of water from little streams that are normally six inches deep but grew to 10 feet deep in a matter of two or three hours … Nearly every person in our county of 20,000plus has been affected by this event, and more communities than not have nearly been wiped out.” To help those impacted by the devas tation, the Pine Mountain Partnership has flood relief information for those located in Eastern Kentucky, including what donation items are in need, where to drop off the items and how to volun teer as an individual or group. Donate at www.pmp-ky.com/flood-relief.

double kwik Helps After Kentucky Floods

1 GetGo Café + Market, owned and operated by Giant Eagle, was recognized as a “Best Place to Work for Disability Inclusion” by Disability:IN and American Association of People with Disabilities (AAPD). The company earned a 100% score on the 2022 Disability Equality Index (DEI) benchmark.

22 SEPTEMBER 2022 convenience.org In The Community CONVENIENCE CARES

“We are so honored by this recognition,” said Laura Karet, Giant Eagle chair and CEO. “Our core value of ‘Respect All’ is important to all of us at Giant Eagle. Being named a best place to work for people who are differently abled motivates us to continue our journey of inclusion for all our Team Mem bers, guests and neighbors.”

“Giant Eagle’s commitment to successfully employ people of all abilities is one of the best parts of our culture,” said Giant Eagle Vice President and Chief Diver sity, Equity and Inclusion Officer Jeremy Shapira. “Our work to be even more inclusive will never be done, but we’re successful because our team has heart. We care about each other and our neighbors, and we firmly believe that everyone deserves respect and equal opportunity to thrive.” Every year, the convenience and fuel retailing industry dedicates billions of dollars to advancing the futures of individuals and families in our communities. The NACS Foundation unifies and builds on NACS members’ charitable efforts to amplify their work in communities across America, and to share these powerful stories. Learn more at www.conveniencecares.org

SOCIAL SHARES NACS encourages retailers to share their giving-back news on social media using #ConvenienceCares.

The center is less than a mile from the high school, which served as the head quarters for relief deliveries.

Additionally, Kentucky Governor Andy Beshear has established the Team Eastern Kentucky Flood Relief Fund to assist those impacted by the floods. Donate at FloodRelief.gov/FormServices/Finance/EKYwww.secure.kentucky.

GETGO RECOGNIZED FOR DEI INITIATIVES

NACS SEPTEMBER 2022 23 21 3

Giant Eagle’s support of disability inclusion extends throughout all facets of the company. Some of the com pany’s initiatives highlighted on the DEI benchmark include dedicated recruiting efforts to attract people who are differ ently abled; a disability-focused, employee-led business resource group; a company-wide employ ee engagement survey; a 20+ member diversity council; and company-wide emergency pre paredness plans which address people who are differently abled.

Nittany MinitMart in Pennsyl vania raised a record $117,549 through its “Help Us Help Them” campaign that benefits local volunteer fire companies. The funds went to 36 volunteer fire departments in 11 counties and will go toward firefighter training, equipment and muchneeded supplies.

During July and August, High’s of Baltimore hosted employee appreciation initiatives to celebrate front-line staff. Beginning July 25, associates were encouraged to partici pate in employee appreciation week, which included a se ries of themed dress-up days.

NITTANY MINITMART HELPS LOCAL FIREFIGHTERS

For more than three decades, Speedway has raised more than $150 million for Children’s Miracle Network Hospitals (CMN Hospitals). This year, the compa ny, which is part of the 7-Eleven family of brands, raised nearly $3 million during the 2022 Speed way Miracle Tournament and Celebration Dinner—one of the largest charity golf tournaments in the nation—combined with the generosity of customers, vendor partners and associates. “Each year, we look forward to the Speedway Miracle Tour nament and Celebration Dinner. Not only does Speedway and its vendor partners go above and beyond to make the kids and families feel special, but the funds raised help to make sure local member children’s hospi tals are supported so that kids across the country continue to receive the best care possible, no matter life’s circumstances,” said Teri Nestel, president and CEO of Children’s Miracle Net workMoreHospitals.than50 children and their families attended this year’s event, sharing their per sonal stories and highlighting the significant impact Speed way’s donations have made in funding lifesaving treatments and services at children’s hos pitals. Nearly 600 participating golfers had the opportunity to meet and interact with them while out on the golf course, and the kids also were honored with an inspirational medal ceremony at the “Conveniencedinner. may be our focus, but serving is our busi ness, and that business extends beyond our stores and into the communities where our custom ers, employees and franchisees live and work,” said Rankin Ga saway, executive vice president and chief administrative officer for“Our7-Eleven.31-year-long partnership with CMN Hospitals allows us the opportunity to host events and celebrations that help to further their mission, and all funds raised this year will provide critical, lifesaving equipment and much needed resources to the commu nities we serve,” Gasaway said.

“Our goal at High’s is to deliver the best guest experience, and we would not be able to ac complish this without our store associates,” said Brad Chiving ton, senior vice president of High’s. “Attracting and retaining top talent is a priority for High’s. Investing in our associates with competitive wages and provid ing a clear career path for our as sociates to see their experience at High’s as a stepping stone, learning valuable skills or even as a potential career.”

Corporate staff visited stores throughout the week supporting the theme and held raffles with summer-themed gifts and prizes. High’s retail associates enrolled in the High’s Rewards program received a free meal, fuel dis counts and free treats each day such as candy bars, ice cream and packaged beverages.

“We want to thank everyone who contributed to our third annual fundraiser,” said Jim Martin, Nittany MinitMart CEO. “We are pleased to be able to step up and help these organiza tions that we all depend on in so many ways. Nittany MinitMart is a family-owned business, and we believe it is part of our respon sibility to communities to help those who help us, especially during this time of high inflation when costs for fire companies are going up.” 4

SPEEDWAY RAISES MILLIONS CHILDREN’SFORHOSPITALS2

HIGH’S CELEBRATES STORE ASSOCIATES 3

Here’s

Calling all retailers. Do you have a cigarette retail program agree ment with Altria, R.J. Reynolds or ITG Brands? If you answered yes, then keep reading because a recent court settlement will impact your stores.

agreement.thetoretailerswhatneedknowaboutDOJ

And that’s where issues arose for re tailers. DOJ wanted to require retailers to post “corrective statements” in their stores, even though they were not part of the original lawsuit or responsible for previous statements made by the manufacturers. For the past 17 years, NACS, the tobacco companies and the National Association of Tobacco Outlets (NATO) fought any signage require ment through litigation. Last year, how ever, negotiations between the tobacco companies and DOJ picked up. NACS, along with NATO, were part of those discussions to advocate for retailers.

24 SEPTEMBER 2022 convenience.org INSIDE WASHINGTON Imagesshironosov/Getty

The agreement reached during those negotiations will require the tobacco BY DOUG KANTOR AND ANNA READY BLOM

SettlementReachCompaniesTobaccoSignage

In the 1990s, the U.S. Department of Justice (DOJ) and public health groups filed a lawsuit against Altria, Philip Morris USA Inc. and RJ Reynolds. In 2006, a federal judge sided with the gov ernment and ordered the manufacturers to take a variety of actions including making “corrective statements” on cer tain topics. Since 2010, the parties have litigated the implementation of these “corrective statements.”

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As NACS noted, “Retailers were not parties to the lawsuit and should not be burdened with a court-ordered remedy, but this negotiated outcome avoids even worse results that DOJ and public health groups were advocating.”

348 The

The number of months that stores must keep signage in place under the settlement size in square inches of the main required sign, which tobacco companies will provide to DepartmentretailersSource:U.S.ofJustice

should

not

26 SEPTEMBER 2022 convenience.org INSIDE WASHINGTON companies to supply court-ordered signs to retail stores that have contracts with them. Those stores will be required to post the signs for a total of 21 months.

The agreement provides that each store under contract with one of the manufacturers will have to post at least one sign carrying one of 17 different, pre-approved health messages that will be distributed at random to retailers around the country. Tobacco companies will provide each store with a sign that will then be rotated with a new message halfway through the 21-month period. were parties to the lawsuit and not be with but this Figures 21

a remedy,court-ordered

Retailers

AGREEMENT DETAILS

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Sometimes, grass really

Come

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secure payment processing and customer engagement solutions

is greener.

the

Each store must keep the initial signs in place for at least nine months, and then there is a three-month rotation peri od where manufacturers will provide a different sign, which will need to be displayed in place of the first one for the rest of the 21-month period.

The agreement requires the main sign to be 348 square inches in size. The first choice for placement of the sign is attached to or hung above the main cigarette merchandising set. If that’s not possible due to store layout, there are other options for placement. In most cases, tobacco company representatives will post the required signs.

28 SEPTEMBER 2022 convenience.org ImagesPeopleImages/Getty INSIDE WASHINGTON

COMPLIANCE CHECKS

Retailers should be aware that part of the agreement provides that the tobacco manufacturers will hire auditors to check for compliance with the require In most

BY ANNA READY BLOM

For the first time, there is bipartisan legislation in Con gress to bring retailers relief on credit card swipe fees. It has been 12 years since Congress passed debit reform, and while that has been successful in helping retailers on debit card fees, Visa and Mastercard’s duopoly position dominating the credit card market has led to continued increases in cred it card fees. In July, Senators Dick Durbin (D-IL) and Roger Marshall (R-KS) introduced the Credit Card Competition Act (S. 4674), which is legislation that would require two unaffil iated networks to be enabled on credit cards, meaning Visa or Mastercard could no longer block their competitors from having a shot at retailers’ busi ness. Instead, Visa and Master card would have to compete with another network for this service.That’s a far cry from what happens now. Today, Visa and Mastercard prohibit banks who issue cards with their net works on them from putting another network on the card. The lack of competition on credit cards means those two brands control 87.7% of credit card volume. Without any market forces pushing down the fees, they continue to go up year over year. The convenience store industry has seen a historic jump in swipe fees, which were up 38% in July from the pre vious year. Given that credit card swipe fees are a percent age of the total cost of the transaction, they multiply with every cent of inflation. And, with 41-year-high inflation and

Tell Lawmakers to Bring Competition to Credit Cards

Full details regarding compliance with the terms of the settlement can be found at the NACS in-store signage settle ment topic page at In-Store-Signage-Settlementorg/Advocacy/Issues/Tobacco/www.convenience..

requiredwillrepresentativescompanytobaccocases,postthesigns.

Some retailers, such as those that post ads around their stores for cigarettes from the tobacco companies involved or those with large cigarette racks, will need to post a second sign. Kiosk stores will have the ability to post a smaller sign due to their relatively small size.

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30 SEPTEMBER 2022 convenience.org Anna Ready Blom is NACS director of government relations. She can be reached ablom@convenience.org.at Doug Kantor is NACS general counsel. He can be reached at convenience.org.dkantor@ ments in the agreement, and retailers can face penalties if they do not comply with the agreement’s terms. How long retailers have before the signs need to be in place depends upon the U.S. District Court for the District of Columbia. A hearing on the agreement was held on July 28, and the court must approve the agreement before it can move forward. Once the court enters an order approving the agreement, retailers will have nine months to place the signs. While retailers should not be forced to post signage for litigation that did not include them, a continued fight in the case risked even more difficult outcomes.NACSurges its members to review the terms of the agreement. NACS held a webinar for its members to explain those terms and plans to have an edu cation session at the 2022 NACS Show October 1-4 in Las Vegas to answer questions about it as well. record gas prices, these fees have skyrocketed, adding to the burdens of businesses and the financial pressures of their customers.Thecredit card market in the U.S. is unquestionably broken, which is why congressional in tervention is necessary. Thank fully, Sens. Durbin and Marshall get that and introduced their legislation as a market-based solution to bring competition into the credit card market. “When it comes to Main Street vs. Wall Street, I’ll choose Main Street every time,” said Sen. Marshall. “Con venience stores, gas stations and other small businesses in Kansas are being taken advan tage of by Visa and MasterCard on behalf of big banks in New York City at a time when they, and the communities they serve, are grappling with crip pling inflation and staring down the barrel of a looming reces sion. It’s gone on long enough. Competition is the heartbeat of capitalism, and that is what our bill will create, competition.” Routing competition isn’t a new concept. It’s in place today on debit cards because of the Durbin Amendment, which was signed into law in 2010, requir ing two unaffiliated networks enabled on debit cards. Since its implementation, retailers and their customers have not only seen savings but also improvements in security and new technologies emerge, because competition begets innovation.TheCredit Card Competi tion Act will bring this type of competition to credit cards, and it’s estimated that it will save American businesses and consumers $11 billion annually. For this reason, Visa, Master card and their largest issuers will spend a massive amount of resources to fight against it. To get this bill over the finish line, we need every member of the convenience industry to use their voice today. Using the NACS Grassroots portal, please contact your legislators and ask them to support the Credit Card Competition Act.

Imagesbernie_photo/Getty INSIDE WASHINGTON

Retailers can face penalties if they do not comply with the terms.agreement’s

Anna Ready Blom is NACS director of relations.governmentShecan be reached at convenience.org.ablom@

Retailers: Use the NACS Grassroots portal to ask your senator to (S.Competitiontheco-sponsorCreditCardAct4674).

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I’ve benefited not only from being involved in the positive results of our industry’s efforts, but I’ve made some long-lasting relationships with retailers, who see the time, effort and true concern that I have in the issues that impact their businesses. What federal legislative or regulatory issues keep you up at night? EV charging infrastructure is something that concerns me, and the industry’s opinion is highly misunderstood. Bottom line, we desire to sell any source of legal transportation energy, and whether that is motor fuels or electricity, we should be able to have the option, be con sidered and receive the same benefits as other industries. Our industry has spent the last cen tury working with all levels of government to provide the best locations, products and services to motor vehicle drivers. That will only continue in our great industry, and I’m optimistic that we will get the same oppor tunities and benefits as other industries as this infrastructure is built out in the future.

DONORSNACSPAC

32 SEPTEMBER 2022 convenience.org INSIDE WASHINGTON Terry Gallagher Gasamat Oil Corp/ Smoker Friendly Varish Goyal Loop Neighborhood Markets

S. Holmes Holmes Oil Company Inc.

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 nacspac.www.convenience.org/

Edward

James P.

Morgan J.R. Morgan Oil Company Inc. Gabe Olives Impact 21 Jonathan Shaer New England Convenience Store and Energy Marketers Association Eva Strasburger StrasGlobal Roy Strasburger StrasGlobal Don Zietlow Kwik Trip Inc.

NACSPAC donors who made contributions July 1-31, 2022, are:

What does NACS political engagement mean to you, and what benefits have you experienced from being politically engaged? To me, politically engaged means being involved in as much as possible, as often as possible, because every voice matters. Despite all issues not directly being related to our business (ATMs), anything that positively or negatively impacts foot traffic in convenience stores, impacts our business, as well as every retailer and supplier. That is very important, and something that I always keep in the back of my head.

What c-store product could you not live without?

My wife and I have two young girls, and our family is 1,000 miles away, so we often use babysitters. With cash still being king and being the preferred method of payment for our babysitters, we know we can always rely on a convenience store to have an operational ATM so we can get cash before we head home. ONE VOICE This month, NACS talks to Nick Marino, vice president, retail sales, CORD Financial Services LLC. Your voice can save your business. Scan the QR code to tell us what’s keeping you up at night and where you’re willing to lend your voice to NACS’ advocacy efforts.

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34 SEPTEMBER 2022 convenience.org IDEAS 2 GO BY SARAH HAMAKER

Name of company: Le Café Market Date founded: 2020 # of stores: 1 Website: www.lecafemarket.com

Jaewon Lee clocked 32 years managing convenience stores for others before finally taking the plunge in 2020 and buying his own location—Le Café Market in Arlington, Virginia. “I’d been looking to operate my own business for a while, and when the pre vious owner couldn’t continue with this location, I was able to buy it,” he said. Before opening Le Café, Lee had to decide what the store would offer. The location is right in front of a Metro stop in the downstairs of a residential mixed-use building, which means plenty of people pass the store.

After decades of working for others, Jaewon Lee branched out on his own with Le Café Market.

A ofC-StoreHisOwn

He’s also created an inviting atmo sphere. “I try to make sure the customer comes in with a smile and goes out with a smile,” he said. “I treat my employees as family because without their help, I cannot succeed in business. Whatever I do for the customer, I do the same with myToemployees.”thatend,he spends a lot of time talking to customers. “I listen when they ask for special items and try to fulfill that ask,” Lee said. “They spend money to buy stuff, so I try to bring in whatever they want to buy.” His goal is to make this store the best by serving the customers who come in. “My goal is not to chase money or make more business, but to make my customers satisfied with what we serve,” he said.

To see videos of the c-stores we profiled in 2021 and earlier, go to www.convenience.org/Ideas2Go

“Everything’s made fresh on site,” Lee said. “The customers view their food preparation like entertainment, as they can see it being made. That’s part of the uniqueness of our store.” Hand-crafted drinks are also on the menu, including fresh, ground-to-order coffee (and beans), specialty coffee drinks like lattes and frappés, and signature drinks, such as Sea Salt Cream Coffee and Matcha Rose. The store has an extensive selection of ice-blended green tea drinks in flavors like mango, peach and strawberry hibiscus. Cus tomers can order a wide variety of teas, including bubble tea, milk tea, fruit tea, milk tea lattes and tea smoothies. Bottled kombucha drinks are in a grab-and-go cooler by checkout. “I don’t have a lot of the ordinary beverages like other c-stores,” Lee said. “I have more unique items because this neighborhood has a lot of young people who have disposable income and want a higher quality drink. That’s my focus.”

With more than three de cades in the convenience store business, Jaewon Lee’s experience gave him an advantage when start ing Le Café Market. “This business isn’t easy, but I have more pride in this store because my heart is in every sandwich and food,” heHesaid.has made it a science of studying and interact ing with his customers to ensure he’s meeting their needs. “That’s my job— make the customer satis fied,” he said. “We have a very good review rating on Yelp—an average of 4.5 to 4.7 stars—and many people say we’re good for a small independent store.” For Lee, the reviews and repeat customers tell him he’s doing a good job. “I’m not the only convenience store in the area, so I have to do whatever it takes to stand out and to make our customers enjoy their expe rience with me,” he said.

“I added fresh foodservice in addition to groceries and snacks,” he said. “When the food business is slow, the conve nience items like wine and beer would sell. I wanted to have the operation more balanced than just foodservice or just convenience store items.”

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

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

ON THE SHELF While fresh foodservice is a large part of Le Café Market, Lee also carefully curates the other items in his store, like his personal favorites in wine and beer. “I try to figure out what this neighbor hood is looking for in beer and wine, for example,” he said. “Many people like local beer, so I bring in the best local beer I can find.” Other items include granola bars, candy, energy drinks, baked goods and ice cream. A grocery section stocks or ganic eggs, milk, soy and oat milk, fruit, bread, dish soap and laundry detergent. He also has some higher-end products like European chocolates and crackers and Asian candies. “I wanted to create a place where customers can get products they might not find in other convenience stores,” Lee said.

BRIGHT IDEAS

The menu is a mix of American-style food and Korean-style dishes, along with all-day breakfast items like bagel and croissant sandwiches with whimsical names such as “The Hangover Cure” (eggs, ham, tomato, mozzarella, pickled jalapeños and chipotle mayo) and “Sweet N Salty Croissant” (Nutella, banana and bacon). Sandwiches range from “The Crispy Fire-Bird” to burgers like “The Double Bomb Burger,” to wraps like the “Roll With the Sea.” Staff in the open kitchen also cook up rice bowls and gourmet popcorn chicken with a variety of seasonings, such as garlic soy, sweet sesame and spicy basil.

NACS SEPTEMBER 2022 35

36 SEPTEMBER 2022 convenience.org

Parkland USA and Hightowers Petroleum share how they approach ESG initiatives and reporting.

BY JERRY SOVERINSKY

M ore than 30 years ago, political journalist Michael Kinsley, writing for the New Repub lic, held a contest among the magazine’s readers to find the most boring newspaper headline. The winner: “Worthwhile Canadian Initiative.” “To this day, I think, it has not been topped,” Kinsley wrote in 2010. Substitute “provocative” for “boring,” and you have what’s inked above: anything containing the letters E, S and G (in order, mind you. Oh, and that stands for environmental, social and governance).

Imagesmarekuliasz/GettyImages;GettyMakaronProduktion/

NACS SEPTEMBER 2022 37 CRAFTING YOUR STORY

So, let’s address the controversy from the top by laying out what this piece is NOT. It is NOT pre scriptive. It is NOT judgmental. And it is NOT argumentative. Rather, it’s a matter-of-fact assess ment of what lenders, investors and the public are collectively looking for when they assess a brand today in terms of its environmental, social and governance impact.

ImagesGrizelj/GettyDaniel

38 SEPTEMBER 2022 convenience.org

ESG RESOURCES FROM NACS AND THE FUELS INSTITUTE

The includesprogramIntegrityESG ESGgeneratesdatacapturesthatapplicationanandreports.

Download “The Case for Developing an ESG Plan” white paper and learn more about ESG reporting at www.fuelsinstitute.org/Environment-Social-Governance-ESG

Listen to NACS Convenience Matters podcast episode No. 341 “What Retailers Need to Know About ESG Planning” at www.conveniencematters.com/episode/341-esg-planning , and episode No. 312 “ESG Planning” at www.conveniencematters.com/episode/312-esg-planning

Over the past several years, the major oil companies have faced growing pressures on their ESG commitments. On the legal front, for instance, a Netherlands court ordered one company to reduce its CO2 emissions by 45% by 2030. Another instance involves an activist investor that succeeded in securing seats on an oil company’s board, a concerted effort at steering the company away from its focus on fossilWhetherfuels. those members can help the company reduce its greenhouse gas emissions while still delivering palatable returns for shareholders is yet to be seen, but the message is clear: Environmental concerns are a very public matter, and corporate boardrooms ignore them at their own peril.

INDUSTRY-WIDE ASSISTANCE

Indeed, times are changing. Expectations are changing. From employees. Shareholders. And the public. And ESG reporting has become the de facto measuring stick of a company’s efforts to align with the public’s perception of what it means to be a good corporate citizen. And it does so by measuring risk. “ESG is a data-driven approach to assess an organization’s near-term and long-term risks,” said Jeff Hove, vice president of the Fuels Institute. “As we begin to look through the lens of risk management, we note that organi zations have internal risks such as workplace injuries/accidents, cybersecurity breaches and human resource risks such as sexual harass ment lawsuits. Minimizing these risks will save the organization money and, for publicly traded companies, attract more investors as a sound and proactive company.”

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It was a systematic, five-step process for Parkland and unfolded quickly. To spark en gagement, Elliott created an internal, 14-per son task force (step one) that assessed Park land’s operations and conceptualized its ESG You team.”executiveforbeitwork,makesupportboardneedtothisandneedstoaprioritythe

ESG INTEGRITY

PARKLAND USA: AN IN-HOUSE APPROACH Parkland USA is an independent fuel distrib utor with operations across the U.S., Canada and Caribbean. Over the past several years, the Canada (Calgary)-based company had been receiving mounting inquiries from stakeholders, investors and employees about its sustainability efforts. “We had actually been focusing on ESG initiatives but not telling people about it,” said Christy Elliott, senior vice president, chief sustainability officer (CSO), Parkland. “We recognized the importance of coordinating not only our ESG efforts but also our communication efforts.”

As a result, Elliott took on Parkland’s newly created CSO role, enlisting senior leaders across the company’s operations to establish sustainability reporting. “We created an inau gural sustainability report in 2021 and com mitted to following up this year with baseline data and ESG targets.” Those targets include all aspects touching on ESG, including spills, injury frequency and diversity and inclusion.

Christy Elliott, senior vice president, chief sustainability officer, Parkland USA

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As a result of this likelihood, in 2020, the Fuels Institute Board of Directors and Board of Advisors began assessing the future and potential impacts of ESG reporting demands on the transportation and fuels industries. “Following these meetings and recognizing potential business and compliance diffi culties, the boards approved the build-out of industry guidance and tools to assist the fuels and transportation industries with meeting the new ESG expectations,” Hove said. “From these discussions and stakehold er task group convenings, the ESG Integrity program was created.”

While ESG reporting is currently volun tary, the SEC is moving to codify that publicly traded organizations be required to report and attest (via third-party audits) their ESG efforts. “Under the current proposed SEC rules, this would include reporting the indirect Scope 3 emissions, which are emissions created upstream and downstream of the reporting company,” Hove said. “This means that the publicly traded company will be asking for direct Scope 1 emissions from the companies it is currently doing business with. … Based upon current proposed SEC language and existing contractual demands being made along the supply chain, all parties in the supply chain (fuel/fleet providers included) will most likely have to develop an ESG plan and report.”

The ESG Integrity program includes an application that captures data and generates ESG reports. The application is online and allows companies of all sizes to create an ESG report. It guides retailers as to what information to include, along with emis sions modeling through the open-sourced Argonne National Labs GREET model.

“By combining all of the above under one program, ESG Integrity provides a seamless third-party program that can be initiated and managed by a single employ ee while being supported by ESG Integrity staff and the professionals supporting this program,” Hove said.

While Elliott’s ESG role has been an evolv ing work in progress, she maintains little could have been achieved without top-down support. “You need board support to make this work, and it needs to be a priority for the executive team. If your boss is not engaged with an issue, employee passions and engage ment will also be less than optimal.”

As opposed to in-house ESG reports that can cost $150,000 to $200,000 to develop, “[o]ur goal was to create a program that is accessible to any size company. Costs for the ESG Integrity application are 10% of what the industry is currently paying for outside con sulting and report generation,” Hove said. Costs are only part of what goes into ESG reporting. We spoke with two NACS mem bers who shared details of their companies’ ESG reporting efforts.

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42 SEPTEMBER 2022 convenience.org strategy. “We took a half day and addressed every ESG issue—after all, you can’t boil the ocean—and came up with five issues that were the most important to us” (step two). Those five issues included: climate change, safety and emergency response, product transportation and inclusion, and governance and ethics. “The list helped us focus on what we could move the needle on.” Next came delegating the actual sustain ability reporting to specific task-force team members (step three). “After all, you can’t draft by committee.” This includes gathering data, interpreting that information, and then assembling it in a format that is digestible by the public. “It’s about telling your story as an organization—your ESG vision and what you’re doing to achieve it.” The data-gathering process (step four) was the most challenging for Parkland, especially in areas like greenhouse gas emissions, where the metrics can be difficult to measure. “We used full-time consultants for our GHG data gathering,” Elliott said. Finally, there’s the publication of the report (step five) and complementary public relations efforts. “The report is the main way that we tell our ESG story, but we do many conferences, too. It’s a great way to talk to stakeholders and our communities.” Parkland released its 2021 Sustainability Report, “Drive to Zero,” in mid-July. “When we launched our enterprise-wide sustain ability strategy last year, we set ambitious and measurable targets to help ensure longterm success,” Elliott said in announcing the report’s release. “Our pillars of People, Environment, Partners and Responsible Growth are the foundation that allows us to continuously improve and expand our sustainability practices. We are excited to share the work we’ve done over the past several months as we continue to Drive to AlthoughZero.”the company has made sig nificant progress on its overarching goals that include achieving zero safety incidents and spills, upholding zero tolerance for rac ism and pursuing a net-zero emissions goal by 2050, Elliott concedes that ESG work is never done. “It’s an immense amount of work.” And while Parkland’s management would have pursued ESG goals independently, Elliott said that upcoming SEC rules will require it anyway. “You don’t have the option today not to engage. But when you do, it can make a positive difference on your bottom line and the lives of those in the communities you serve.”

ESGembraceweand tell our stories, it’s future.”sustainablethewe’retoopportunityanshowthatleadingwaytoa

Stephen L. Hightower, president and CEO, Hightowers Petroleum

HIGHTOWERS PETROLEUM: WORKING WITH ESG INTEGRITY Midwest-based Hightowers Petroleum is a national distributor of gasoline and die sel. With much of its commercial business targeted to Fortune 500 companies, it has received increased scrutiny from its custom ers requiring alignment with ESG initiatives.

At the same time, as a private company, it lacked the bandwidth to pursue ESG report ing in-house, so it turned to the Fuels Institute and its Integrity Program for help. “It’s in the early stages, and we signed up for it. It’s a great way to organize and look at our data points that are part of our plan. At the same time, there’s a thoughtful template that prompts us

“In the past year, we began to consider ESG seriously. Especially as our customers began implementing requirements that to continue doing business with them, we had to have ESG standards and reporting,” said Stephen L. Hightower, president and CEO of Hightow ersThePetroleum.company’s ESG pursuit was not one of compulsion. Hightowers has ESG values built into its foundation. “Since our founding, Hightowers Petroleum Co. has embodied the true spirit of corporate social responsibility, and we are committed to the highest stan dards of corporate citizenship. Our culture and values are rooted in service, integrity and taking personal responsibility for our actions, outcomes and reputation. Given the large span of our clients, suppliers and partners, we recognize the global reach of our business practices and our public accountability.”

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44 SEPTEMBER 2022 convenience.org Imagesloops7/Getty

For Hightower, the Integrity Program formalized much of what the company had already begun pursuing informally. “We real ized that a lot of the things the program asked for are things that align with our company’s core values,” he said. “We’ve always commit ted to supporting our employees, volunteering and giving back.”

As a private company, Hightowers Petro leum is nimble enough to continually refine what has been a relatively new project. “We started in 2021 and got things going in early 2022,” Hightower said. “In March, we began working with the Integrity Program and measuring and sharing our information. (They’re awaiting their first report as this goes to print.) The report will include energy efficiency updates on buildings and vehicles, measurements of levels 1, 2 and 3 carbon emissions and accident reporting, among other items.”

REPORTING FOR DUTY Whether ESG reporting remains voluntary or becomes mandatory, Hove said that the pursuit is not about simply checking off an operational to-do list. “…[W]e are finding that employees appreciate the transparency and the corporate goals for improvement by their leaders.

Like Parkland, Hightowers Petroleum finds value in sharing ESG efforts with customers. “It’s important that the com munities we serve know that we are good citizens and partners,” Hightower said. Es pecially as gas prices remain high and fuel retailers are stigmatized as culprits, “it’s helpful to demonstrate what we’re doing to give back to our communities. This shows our commitment to behave ethically, while improving the quality of life of our work force and their families, along with our local communities.”Hightowersays that while his company’s customers do not expect it to be perfect [regarding ESG], they expect transparency and metrics. “If we embrace ESG and tell our stories, it’s an opportunity to show that we’re leading the way to a sustainable fu ture. Something that everyone can appreci ate and value. And like many other market place trends, if you don’t incorporate [ESG] into your business, you’ll get left behind.”

To learn more about the ESG Integrity app, visit www.fuelsinstitute.org We took a half day and addressed every ESG

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

for input before coming up with an ESG report that we can share with our customers.”

“The ESG program is a top-down initiative that can bring all employees into the dis cussion of constant improvements that not only reduce risks but also positively impact a company’s bottom line.”

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NACS SEPTEMBER 2022 47 COMPANIESVIEWUNLEADERSEFFECTIVETHEIR EMPLOYEES.OFPERSPECTIVEFROMTHEMSELVESANDTHEFRONT-LINE BY BRUCE HOROVITZ ‘UNLEADER’OF THE PACK

Show: There is no neutral brand experience.

To prove it, he will tell a tale of what he experienced at a Sheetz convenience store where he recently stopped while driving through Pennsylvania. When he walked into that Sheetz, he was immediately greeted by a salesclerk, who looked him in the eye and in a friendly voice offered: “Welcome to Sheetz!”

“Unleadership means trying to remove yourself from the pedestal of power.” Stratten does some background work in preparation for his

“That’s the moment I fell in love with the brand,” he said. “I stood there laughing out loud at the screen. They not only knew that I was secretly planning to put the hash browns inside my sandwich—but they of fered to do it for me.”

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As far as Stratten could remember, that was the first time in years that he’d actually been greeted just for walking into a store. It was 2 p.m., but Stratten had his heart set on a croissant, bacon and egg breakfast sand wich. He walked up to the touchscreen kiosk confident that he could still get it because he knew that Sheetz sells breakfast items all day. After he ordered it, a message on the screen asked if he’d like a side order of hash browns. He did. And he requested it. At that moment, he says, the kiosk asked him a follow-up question that flabbergasted him: “Would you like your hash browns on the side or placed inside the sandwich?”

It’s never been more important than right now to have that special insight of an unlead er. In a world still recovering from more than two years of pandemic-related confusion and stress, an economy hobbling toward recession and a political environment supercharged

NorthretaillargestWally’sstop,Vegas.NACSkeynote“Unleadership”atthe2022ShowinLasIowa80TruckBuc-ee’sandareamongtheconvenienceoperationsinAmerica.

S cott Stratten knows firsthand the lesson he wants to share during his keynote presentation at the NACS

DEFYING NORMS Small actions can have big results. Truly great leaders—who Stratten refers to as “unleaders” because they defy traditional norms—know this. These unleaders, he says, have the unique ability to clearly view their companies and themselves from the perspective of the em ployees on the front lines, not those on the top. These are the leaders who truly understand that whether you run a multiunit convenience store chain or you’re a single-store owner, your actions on everything from saying hello to the customers who walk into your store to offering food options that will surprise and delight them can make all the difference in customers becoming regulars or one-timers.

Scott

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UNMARKETING Stratten is no stranger to NACS. Back in 2018—before the COVID-19 pandemic was so much as a flicker of a concept—he gave a rousing keynote speech to the NACS Show au dience about “Unbranding.” That means that every single sale you make—even if it’s just for a pack of chewing gum—influences the customer’s overall perception of your brand. “Each visit sells the customer’s next visit to your convenience store,” said Stratten. “Each interaction leads to the next one.” Stratten is arguably best-known for the concept that is also the name of the company he owns: UnMarketing. Unmarketing, he says, is what happens when you stop market ing and start engaging. Unmarketing is when you focus on building trust and connection, so when your market needs your product or service, you are the logical choice. Stratten founded his company in 2002 on the belief that folks can build a better business world based on integrity, community and authenticity. In other words, sell who and what you really are and not what your mar keting says you are. Together, Scott and his wife, Alison, have taught their unconvention al practices to thousands of people worldwide and are co-authors of six bestselling busi ness “unbooks” including “Unmarketing,” “Unselling” and “Unbranding.” Stratten says that their seventh book will likely share the very same title as his upcoming NACS Show speech:Unleadership,“Unleadership.”however, can take place at many levels of the company—not just the CEO. Truly successful unleaders, whether they are shift leads, store managers or regional managers, are successful because folks choose to follow them because they admire how they lead—not just because of their job title. This is typically related to the personality, experi ence, attitude and wisdom of that person.

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Stratten and his wife, Alison, teach their books”bestsellingandpeopletionalunconvenwisdomtoworldwidehavewrittensix“untogether.

“Remember, your store branding is only as good as the next day’s Reddit post or TikTok video.”

with partisan divide, it’s critical for simple actions like a trip to the c-store to not only be worry-free but pleasurable. At the NACS Show October 1-4 in Las Vegas, Stratten’s key note speech will remind the expected 24,000 attendees that unleadership may be their key to success going “Unleadershipforward.meanstrying to remove yourself from the pedestal of power,” said Stratten. That’s because most leaders never really experience the true culture of their companies because virtually everything is filtered before they see it. If a store knows that an out-of-town owner is planning to visit, for example, it will be cleaned up before the owner arrives, and everyone will be on their bestThat’sbehavior.why, says 47-year-old Stratten, there are two critical elements to success as an unleader: self-awareness and empathy. These are the kinds of things that have long been viewed as secondary soft skills—almost as if they weren’t required. Well, the pandemic came along and instantly changed all that. If nothing else, he says, the pandemic has taught successful unleaders to listen to employees. That requires making time for the conversations and doing a lot more listening than talking. For example, he says, you might have a rule in your c-store that store clerks can’t sit during their shifts. But what about the clerk who might suffer, say, an issue with sciat ic nerves and feels leg pain when standing too long without sitting? That’s where you need to listen to employees and find flexibility because customers will instantly see and hear how your workers are being treated. “Remember, your store branding is only as good as the next day’s Reddit post or TikTok video,” he said.

Statten is no stranger to NACS. He gave a rousing keynote speech to the 2019 NACS Show audience about “Unbranding.”

Effective leaders don’t achieve success by accident. Part of it is in the positive actions they take to help others. The very best un leaders, Stratten says, are not self-defined but defined “by who chooses to follow you.”

AND VALUED

If front-line workers feel comfortable, safe and valued, they can make all the difference in store culture.SAFE

52 SEPTEMBER 2022 convenience.org Bruce Horovitz is a freelance journalist and national media training consultant. Contact him at brucehorovitz@gmail.com.

The best unleaders, Stratten says, are those who spend the most time listening to future unleaders, who are typically their line work ers. If front-line workers feel comfortable, safe and valued, they can make all the differ ence in store culture. A c-store that is staffed by three happy employees can be wildly successful. These upbeat employees not only will likely continue to work for the store with positive attitudes but also will help to attract positive-thinking future employees, he says.

In the end, acts of kindness can go a long way for any unleader at any level.

Stratten practices this daily. Nevermind that he and his wife have five kids. They also have three cats and two dogs—all of them rescues who started out as foster pets and all of which they kept. The couple’s life goal is to open their own animal sanctuary—and there’s little doubt that they’ll accomplish that.

Any leader can sell a breakfast sandwich. But only an unleader will sell it 24/7—then ask if you if want your hash browns stuffed inside of Unlead,it.and they will come.

But when employees don’t get along—or have issues between them—it’s particularly important for the best unleaders to listen and respond. If you ignore the problem, it will only fester, says Stratten. “You don’t leave a job because of a bad co-worker. You leave a job because of a manager who does nothing about it,” said SuccessfulStratten.unleaders never talk negatively about any staff members behind their backs. “That’s showing bias and favoritism and can only lead to a toxic work environment,” he said. At the same time, the pandemic has changed the equation about what qualities make the best unleaders. It was once widely believed that the very best unleaders were those who were 100% customer-focused. But the pandemic changed the way some customers treat employees. For example, some customers will blow up at any c-store employee who asks them to wear a mask. But no customer has the right to abuse any of your employees, says Stratten. And employees need to see and feel this in action. If any customer is abusive toward your staff, that customer must be told—in no uncertain terms—to leave and not come back. “Protecting your employ ees must come first,” said Stratten.

Stratten is mindful that most c-store own ers do not run big chains, but, instead, own only one or two stores. Key to their success, he says, is to embrace that small size and use it to their advantage. For example, you may have a store in Gainesville, Florida, where the University of Florida plays football. As an independent store owner, you might decide to embrace that local connection and encourage employees to wear Gator-themed clothing and even sell lots of Gator merchandise. A larger chain store might have to request per mission from corporate to do such things.

Great unleaders also encourage their em ployees to cement deep friendships. That’s be cause employees who get along well are much more likely to watch out for each other. If you have a friend at work, for example, you’re likely to cover for that friend when they’re not available—as they will for you, says Stratten.

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54 SEPTEMBER 2022 convenience.org

CUSTOMER EXPERIENCE

Promotions Customers Actually Want

Monday, October 3 8:00 – 9:00 a.m. Product procurement throughout the supply chain was a major challenge for convenience stores and their supplier partners throughout the pandemic, and it continues to challenge our industry today. However, the challenges have led to a great er level of collaboration between convenience retailers and their suppliers: 66% of supplier companies said their overall relationship with convenience retailers is better than a year ago, and 44% said their level of partnership and collaboration with the convenience retailing channel is better than other channels. Come to this session to hear a panel discussion between retailers, a distributor and a supplier as they share their insights and success stories in overcoming supply chain challenges.

Saturday, October 1 1:15 – 2:15 p.m. C-stores have limited cold box space, and beer (where offered) has a significant number of new items when factoring in craft products. The SKU rationalization process for convenience stores is massive. Come to this session for a deep dive into the ready-to-drink format, and walk away with forward-leaning insights for what is next.

LEARN TOGETHER When it comes to learning, the power of peers is unequaled. Only at the NACS Show can you connect and share with real-world industry insiders and retail superstars who are shaping the future of convenience. NACS offers education ses sions, hands-on workshops and engaging keynotes designed to make sense of this challenging business environment and put you on the path to success.

Take a look at some of the sessions that will inspire you: CATEGORY MANAGEMENT Turning Private Label Into a Powerhouse Brand

Sunday, October 2 9:15 – 10:15 a.m. Some products sell themselves, but additional marketing and promotion can take your convenience-store sales to the next level. Come to this session for a discussion on how shoppers’ habits and preferences have evolved, and walk away with fresh ideas to create more meaningful promotions your customers actually want and marketing tactics they’ll respond to.

Conference: October 1-4, 2022 Expo: October 2-4, 2022 Las Vegas Convention Center | Las Vegas www.NACSShow.com

Saturday, October 1 1:15 – 2:15 p.m. How do you get started with private-label brands? What benefits are there to making the investment to get into private label? Is my company big enough to do private label? These questions and more will be answered by retailers well into their private-label journeys. They will explain the strategy be hind their private-label brands, as well as some tips and tricks they have learned along the way.

Behind the Boom: Ready-to-Drink Cocktails Are Shaking Up the Cold Box

Building a Digitally Enabled C-Store Saturday, October 1 2:30 – 3:30 p.m. Technology has changed the world forever. Retail is the new frontier for disruption, and there’s no going back. In this session, some of the industry’s foremost thought leaders share their strategies for using digital technologies to reinvent every thing from operations to customer.

Supply Chain Success Stories

NACS SEPTEMBER 2022 55

The biggest and most coherent change for convenience and fuel retailing around the world is the move from fuel to fast-moving consumer goods to foodservice. Convenience players around the globe have either invested, are investing now or have plans for immediate investment in offering more, better, fresher and/ or healthier foodservice options. During a panel discussion, retail leaders from different continents will showcase how they have invested and succeeded with their foodservice programs. The panel will then discuss the latest trends in foodservice, followed by an audience Q&A session.

Foodservice Analytics: The Recipe for Success Monday, October 3 8:00 – 9:00 a.m.

Gulp! Reinvigorating Dispensed Beverages Monday, October 3 9:15 – 10:15 a.m. Hot, cold and frozen dispensed beverages took a profit hit during the pandemic, and the categories were a definite strain on store profits. Once pandemic restric tions eased, and it made sense for retailers to reintro duce dispensed beverage programs in their stores, many retailers and suppliers seized the opportunity to breathe new life into the category. Attend this session to hear recent trends and research in the dispensed beverages category, as well as the unique approaches that three different retailers and suppliers are taking to reinvigo rate and grow this tried-and-true category.

As more c-stores add foodservice to their operations, they are quickly discovering how important data and analytics are to running a profitable enterprise. From back-of-the-house to using technology to manage waste, report data, manage food cost, plan production and data-driven menu creations—the need to embrace technology is evident. Come to this session to hear how retailers are successfully using technology and data to support their foodservice operations.

It’s no secret that no one is currently getting rich off of installing EV chargers at their stores. That doesn’t mean however that the industry can ignore the need and future demand. During this conversation, industry veterans tasked with figuring out the philosophy and strategy for integrating EV into their footprints will discuss their cur rent EV strategy, how they are preparing for the future and ways they plan to monetize EV long term.

Global Foodservice Trends & Menus Sunday, October 2 8:00 – 9:00 a.m.

56 SEPTEMBER 2022 convenience.org FOODSERVICE Menu Optimization: Think Like a Restaurant Saturday, October 1 1:15 – 2:15 p.m. As retailers add foodservice to their operations, there are growing pains, and it often takes time to turn a prof it. However, there are learnings we can glean from the restaurant industry. Come to this session to hear ideas on how to better manage your foodservice operations and respond to the current climate.

FUELS EV Economics: Fact vs. Fiction Saturday, October 1 12:00 – 1:00 p.m.

Reality of EV Transitions Sunday, October 2 9:15 – 10:15 a.m. The expansion of the electric vehicle market is rife with forecasts and pledges that promise dramatic change in a short period of time—but how realistic are they? Accord ing to research done on behalf of the Fuels Institute, S&P Global Mobility indicates that the transition may be more gradual than declared by media headlines. In fact, their data show that electric vehicles may only account for 6% of vehicles in operation by 2030, and 73% of these vehicles will be located in just 15 states. In this session, Mark Boyadjis, global technology lead, consulting services, S&P Global Mobility, will share insights into realistic electric vehicle sales and fleet projections, the emerging demand for charging infrastructure and where retailers should be focusing their attention to ensure they take advantage of emerging opportunities at the right time.

Capitalizing on Your Liquid Fuels Offer Sunday, October 2 8:00 – 9:00 a.m. Many retailers are looking for ways to optimize their liquid fuels offer. With so many strategies to consider, it can be hard to choose one that works best for your business. Come to this session to hear a presentation from a fuels retailer and an expert from the Petroleum Equipment Institute (PEI) to help you navigate through options that can enhance your offer.

State of the Industry: Fuels Edition Sunday, October 2 9:15 – 10:15 a.m. Although fuel demand almost returned to pre-pandemic levels in 2021, supply issues during the first half of 2022—including labor and truck driver shortages—re mained a pain point for both operators and consumers at the pump. Denton Cinquegrana, chief oil analyst with OPIS, will break down the 2022 energy landscape, including the future of alternative fuels, and address the current industry headwinds in a year that’s already experienced record-breaking gas prices.

ExperienceLearnMore nacs.petrosoftinc.com the ecosystem at booth 5825 SmartPOS Giveaways • $50 Amazon Gift Cards • $100 Floor Prizes to convenience.say And

• Explore the more than 45 education sessions and speaker details, then “favorite” the sessions you want to attend.

What the New Tobacco Signage Requirements Mean for Retailers

• Research the events you’d like to attend, create a personal agenda and export it to your calendar.

My Show Planner automatically syncs with the NACS Show App, so you only need to enter your information once. Search “NACS Show” in the Apple store or Google Play for the free app or visit nacs22.mapyourshow.com. The NACS Show App also connects you with products in the Cool New Products Room. Tip: Download the app before you arrive in Las Vegas so you can hit the floor running!

Monday, October 3 9:15 – 10:15 a.m. The Department of Justice and tobacco manufacturers settled a long-standing litigation over in-store correc tive statement signs over the summer. This litigation requires tobacco companies to supply court-ordered signs to retail stores that have contracts with any of them. The settlement also requires those retail stores to post at least one sign carrying one of the 17 different, pre-approved health messages that will be distributed at random to retailers around the country. Join us as we hear details on the agreement, what it means for retail ers and how to comply with its terms.

The My Show Planner online tool helps you set your schedule. Use the planner to:

Sunday, October 2 9:15 – 10:15 a.m. Much is at stake during the upcoming midterm elec tions—all 435 seats in the House of Representatives and 35 seats in the Senate will be decided. Will there be a Republican wave like some predict, or will the Democrats maintain their control of Congress? While there remains much uncertainty, we do know there’s a tremendous amount riding on the elections this Novem ber, especially the fate of President Joe Biden’s agenda. Join us as we learn from political analyst Jim Ellis about which races to keep an eye on during this election sea son, and how these elections could impact the conve nience and fuel retailing industry.

58 SEPTEMBER 2022 convenience.org GOVERNMENT RELATIONS

HR/LABOR Make Your Employer Brand Stand Out

• Plan the most effective way to utilize your time on-site.

Monday, October 3 8:00 a.m. – 9:00 a.m. Everyone is struggling with recruitment and retention in 2022, which means that everyone is hiring. In a sea of “Help Wanted” signs, how do you make your employer brand stand out and become an employer of choice? Join five retailers in this rapid-paced lightning-round session to hear examples of how each of them are improving and showcasing their employer brands. Before You Go… NACS Show tools can help you make the most out of your time in Las Vegas.

• Browse product categories, search exhibitors and save time by adding them to a list of booths you want to visit.

Upcoming Elections and What They Mean for Convenience

SMALL WORKSHOPSOPERATOR

De-Escalate Customer Issues

Handling the Angry Customer on the Front Line: When a SNICKERS Bar Is Not the Solution

Sunday, October 2 8:00 – 10:15 a.m. Dissatisfied customers can become angry cus tomers very quickly—we have seen this lately on numerous news reports. The cashier is usually the first person an unhappy customer speaks to in a convenience store. The cashier needs to be prepared to neutralize this customer profession ally and quickly. This session will show actions needed to diffuse the escalation of a complain ing customer to an angry customer and keep the cashier safe by understanding the ways to handle the situation. Attendees will work on developing store policies and protocols for em ployees to follow.

OPERATIONS Max Your NACS

Saturday, October 1 2:30 – 3:30 p.m. When is a guest at your store no longer a customer, but someone who needs to leave due to the disruption they are causing? How are other guests impacted when someone has a loud complaint or altercation in your store? As an industry, convenience stores pride themselves on good customer service, but sometimes the customer is not always right, and their complaints and issues can nega tively impact the morale and engagement of employees. In this session, risk management and asset management professionals from Casey’s and McDonald’s will share best practices in de-escalating those issues so you can promote a safe environment for both guests and staff.

Using Data to Remain Competitive in Spite of Inflation

NACS is offering four hands-on training work shops to help solve the challenges unique to smaller operators. Small Operator Workshops are limited to the first 50 attendees on-site. These are working sessions where participants should only join if committed to staying for the full class.

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Mergers & Acquisitions Town Hall Saturday, October 1 1:15 – 2:15 p.m. Do you ever wonder what the next step will be for your business? Will you grow through acquisition, organic growth or will you sell? This town-hall-style session will start with presentations from both sides of a recent acquisition and educate you on how to get started with the process, what to expect and pitfalls to avoid along the way. The second half of the session will be an open town hall where you can ask questions of the acquirer and acquiree, as well as a broker, who helps make such acquisitions possible.

Sunday, October 2 8:00 – 9:00 a.m. Decades-high inflation has increased the importance of price competition within retail. To maintain margins, retailers must pass some increased costs onto consumers, but what is the right balance? Where are the opportuni ties? Come to this session to be inspired with ways you can become a destination through promotions, balancing price with demand and developing a pricing strategy for multi channel sales—all based on consumer data.

Saturday, October 1 12:00 – 1:00 p.m. This session will provide ideas, tips and recommendations for maximizing your time at NACS, so you can maximize your investment. An experienced group of industry pro fessionals will share tips and ideas on how to navigate the NACS Show to help you get the most out of the four-day event. Additionally, the NACS Membership team will pro vide an overview of the entire NACS ecosystem and how it is designed to help you, your business and your people thrive all year long. Whether this is your first NACS Show or perhaps it’s been a while since you attended, get off to a great start with the Max Your NACS session.

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MARKETING Build a Better Brand

Benchmarking to Improve Loyalty Outcomes: Lessons From PDI and Coen Markets Monday, October 3 8:00 – 9:00 a.m. Loyalty isn’t just a program. It’s an outcome that must work equally well for both retailers and consumers. Join Todd Gulbransen, senior vice president, consumer mar keting, and Greg Crow, vice president, insights, at PDI as they explore loyalty outcomes, KPIs and benchmarking with Keith Broviak, chief marketing officer, and Colin Dornish, director of operations, Coen Markets Inc. From the successes to the challenges, learn how to measure and manage a data-driven loyalty strategy by hearing their real-life examples. What defines a “good” strategy? How does one declare success? They’ll cover this and more as they examine which KPIs and benchmarks to track, how to adapt based on actionable insights, and the overall best practices to develop deeper relationships with today’s c-store shoppers.

Monday, October 3 8:00 – 10:15 a.m. Inflated wages are the hot button issue as we move away from the COVID-19 years. Now that you have the staff in place, the task is to increase sales to cover the payroll demand. The key is to understand where you actually make the money the quickest. We will study NACS industry benchmarks and use them to compare shelf space analysis, velocity reports and category management. Participants will leave with “10 Things to Implement to Improve Sales Based on your Inventory.”

Training Managers To Be Trainers

Saturday, October 1 2:30 – 3:30 p.m. Using real-life, before-and-after examples, the presenters will take you through a fun, informative and interactive session that will show you (whether you are a small or large operator) how to discover what your brand is, how to make it better and how to promote it both within your company and to prospective customers.

When the Supply Chain Becomes Your Weakest Link to Profits

Sunday, October 2 8:00 – 10:15 a.m. Keeping your inventory fresh, new and inter esting for your customers is key to profitability. You and your customers are both frustrated by empty shelves. In the current economic cycle, the supply chain is not keeping up with demand. We will address avoiding the empty shelf, basic store layouts, merchandising tips to keep the store inviting and anticipating inventory issues by following inventory turns.

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Identifying Profit Opportunities: Offsetting Increased Labor Costs

Monday, October 3 8:00 – 10:15 a.m. In most convenience stores, the manager is responsible for training the team. It is important for the staff to perceive the manager as the ship’s captain while keeping the store dynamic on an even keel. This session will outline coaching techniques to assist you in making your manager a better leader and trainer for your store(s). We will work with better implementation of store policy and procedure manuals and establish the foundations of an effective five-day employee training program.

Supercharge Your App Monday, October 3 9:15 – 10:15 a.m. The Pareto Principle suggests that 80% of your sales come from 20% of your customers. Whether that figure is accu rate at your company, the point is that repeat customers are critical to growth. One way to increase customer loyalty is to leverage your mobile app. Successful retail ers use their apps to drive foot traffic while making the in-person shopping experience easier, safer and way more fun. Attend this “show-and-share” session to hear from three retailers as they display their apps and discuss some of the differentiating features and strategies they have taken to get the most out of their apps.

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Sunday, October 2 8:30 – 10:00 a.m. Industry consolidation, a global pandemic, elevated gas prices, record inflation and supply shortages have disrupted convenience retail operations from all direc tions. As we move forward, how can we do so in unison to serve the needs of c-store shoppers before the (next) unexpected happens? In this session, our seasoned panel answers this question through an in-depth discus sion of Unified Commerce—what it is, how retailers are investing in it and how all suppliers play a key role in delivering a seamless experience for shoppers inside the store, at the pump and across an increasingly digital environment.

SUPPLIER Supplier Session: How the Evolving Customer Journey Is Redefining Industry Partnerships With Unified Commerce

PROFESSIONAL DEVELOPMENT Industry Mentors Share Sage Advice Saturday, October 1 2:30 – 3:30 p.m. Convenience retailers eagerly soak up any information and advice that helps them grow their businesses and become stronger leaders. This is the first time in NACS Show history that several industry icons, who are wellknown and respected mentors in the retail community, will offer advice on business management, industry challenges and more. This is your chance to pick their brains and find out how they successfully developed world-class teams, pitfalls to watch out for and what success in our industry looks like.

TECHNOLOGY Self-Checkout Strategies

What Are You Waiting For?

The panel includes Bill Douglass, chairman, Douglass Distributing; Sonja Hubbard, principal, Yates Group; and Jeff Miller, CEO, Millers Energy. Jeff Lenard, NACS vice president, strategic industry initiatives, will moderate.

The NACS Show provides the most representationcomprehensiveofproducts and services for the convenience and fuel retailing industry, and you don’t want to miss it. Registration is open now. Save your spot and get the pre-show rate. Register today at www.nacsshow.com .

Saturday, October 1 12:00 – 1:00 p.m. Given the current state of labor, some stores see self-checkout systems as a way to mitigate hiring chal lenges, as low-paid employees seek better opportunities elsewhere during a period of high-quit levels. But is self-checkout really the answer? With so many different vendors and self-checkout strategies to consider, it can be a daunting area to enter (while working to mitigate your labor woes and please the customer). Come to this session to hear a discussion between retailers who have implemented self-checkout successfully and their advice for the industry.

Future Proofing Convenience: Using Search, Social and Ratings and Reviews to Drive Visibility and Growth Monday, October 3 9:15 – 10:15 a.m. Shoppers today have questions, and they expect their device to have answers. To win the convenience-minded shopper, retailers cannot rely on having the best physical location. They must take steps to develop and manage their multilocation presence on the top of the localized marketing digital channels that influence shopper buying decisions. Ensuring data is accurate and consistent across Google, Facebook, Yelp, Waze and the plethora of consumer tools applications is essential in the quest to future proof your business and meet customers when and where they are looking for solutions and discovering new options. If you are looking to grow your stores’ reach by being visible earlier in the customer journey, you’ll want to join this session and learn from the experts.

SEPTEMBER

The Personality of Success

Sunday, October 2 8:00 – 9:00 a.m. Organizations spend time, money and energy on an array of behavioral assessments and training. But does it make a difference? Discover why these sessions get rave reviews, yet overwhelmingly fail to create a lasting impact. You will learn how to infuse personality into your culture and transform the way people work togeth er and lead others. From meaningless alphabet soup to the training methodology itself, we will deconstruct today’s current personality assessment model and reinvent a new one for the future. Instead of styles and types that reside in short-term memory and create only momentary “Ahas!,” this session reveals a brain-friendly approach to rewire your employees so the styles trigger at the exact moment they are needed. Reimagine how you can drive engagement with personality. To see a list of all NACS Show Education Sessions, visit www.nacsshow.com/education.

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The New Exhibitor Area features companies that have never exhibited at the NACS Show. You don’t want to miss the opportunity to be one of the first to engage with the latest technology, products and companies entering the convenience store market, including emerging categories.

The New Exhibitor Area is open early for attendees to explore emerging products before the expoRetailersopens.and convenience distributors also have exclusive access to the popular Cool New Products Preview Room , where the hottest new products available to convenience stores are on Attendeesdisplay.use the NACS Show mobile app to capture product details and access exhibitor contact information, plus save a custom “shopping list” for a visit to the main expo. Take advantage of exclusive Preview Room hours before visiting the expo.

Merchandise,

Explore 425,000 square feet of expo space, featuring more than 1,200 exhibitors across five categories of interest: Candy & Snacks, Technology, Facility Development & Store Operations, Fuel Equipment & Services, Food Equipment & Foodservice Programs.

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NACS SEPTEMBER 2022 65

ImagesHyrma/Getty

“Food safety and protecting public health is not a competitive advantage,” said Dr. Jay Ellingson, chief scientific officer at Wiscon sin-based Kwik Trip. He believes that our industry is at a “critical crossroad” for getting as many convenience stores as possible on the same page when it comes to food protection and laying the groundwork within the global food industry that convenience stores “are major players in selling trustworthy food.”

The lion’s share of foodservice comes from prepared foods, which represent nearly 70% of foodservice sales, according to the NACS State of the Industry Report of 2021 Data. These programs include customizable and made-to-order sandwiches and salads, freshbaked pizza, prepared on-site fresh fried chicken—products that require a laser beam focus on safe food handling.

BY CHRISSY

Our industry has come a long way when it comes to food. There was a time when “gas station food” resonated like a last resort for desperate and weary travelers. Not so today.

NACS SEPTEMBER 2022 67

Foodservice programs within the conve nience store space have been evolving for decades and represent 22.5% of in-store sales, with no signs of slowing down.

Join food safety heavyweights at the c-storespecific NACS Food Safety Conference.

SERVINGBLASINSKY FOOD SAFELY

FOOD SAFETY FIRESIDE CHAT Mandy Sedlak, senior food safety and public health manager for EcoSure, a business of Ecolab, will talk about today’s food safety climate with a convenience retailer who is leading safe food-handling procedures and operations.

All of us can work together to help our colleagues get better, reduce their risks and protect their brands.”

68 SEPTEMBER 2022 convenience.org Dr. Ellingson and 12 other convenience retail food safety professionals have worked with NACS the past two years to develop an industry-specific food safety event, which is happening this year at the NACS Show on October“NACS1.members have a role to play to help push the industry in the right direction. All of us can work together to help our colleagues get better, reduce their risks and protect their brands,” said Dr. Ellingson, who will moderate the inaugural NACS Food Safety Conference.“Oneofthe unique things about this confer ence is that it’s going to be retail specific,” said Dr. Ellingson. “For those who attend and em brace this conference and enjoy the education al part, it will be very retail centric in terms of the discussions and the experienced present ers who are food safety experts,” he said. Here’s what sessions your foodservice, food safety, risk management and quality assur ance teams will be a part of at the NACS Food Safety Conference:

WHY FOOD SAFETY CULTURE?

There are well-established food safety and quality protocols and processes within the convenience retail industry. That said, there is also a greater need for leadership to foster a top-down food safety culture that protects and sustains the future of the business.

Dr. Chapman is also the project chair of FoodCoVNET, which provides science-based strategies and practices to reduce the public health and economic impacts of COVID-19 on the food sector. He’ll share ongoing research on virus persistence, inactivation and transfer.

Dr. Lone Jespersen, founder of Cul tivate and food safety culture expert, will share exclusive insights on the NACS Con venience Store Food Safety Culture Maturity Model, the first and only global convenience retail industry specific model that advances food safety culture by initially focusing on the leadership level. Dr. Jespersen will also highlight how a compa ny’s food safety culture can support, align and contribute to its vision and mission.

From recalls to managing the food supply, to the role of regulators and in-store food safety training, the global SARS-CoV-2/ COVID-19 pandemic has had a massive impact on the food safety system. Dr. Ben Chapman, a professor and food safety extension specialist at North Carolina State University, will discuss what the industry has learned since March 2020 and how we can best prepare for the future.

WHAT THE PANDEMIC TAUGHT US ABOUT SAFE FOOD HANDLING

• Nancy Wilson, director, quality as surance, risk management & safety, Wawa Inc.

• Jeremy Zenlea, director, head of health and safety, EG America Dr. Ellingson says that the inaugural NACS Food Safety Conference is the first of many as our industry contin ues to invest in the future of food and foodservice.Hebelieves, “It’s a unique opportuni ty for the entire industry. Convenience stores are one of the fastest growing food sectors—join us at the NACS Food Safety Conference and learn about how to mitigate risk as we all continue to move forward and grow our businesses with food.”

Shawn Stevens, founder of the Food In dustry Counsel , will walk you through these scenarios and questions, and help your team create a plan of action so the next time you are faced with a real-word situation, you can react in minutes—not days or weeks.

Chrissy Blasinsky is the NACS content atstrategist.communicationsShecanbereachedcblasinsky@convenience.org.

Suppliers routinely face significant food safe ty challenges that are often invisible to their customers until it’s too late. Unfortunately, your supplier partner’s challenges can get you into trouble if you are not routinely asking the right questions. In this session, Shawn Stevens, founder of the Food Industry Counsel , will help you tap into today’s complex supply-chain issues and explore best practices to vet new suppliers and identify the right questions you should be asking of your supplier partners to reduce risk. Ultimately, these conversations will lead to stronger rela tionships built on trust and transparency and serve to better protect public health.

From norovirus to E. coli, a foodborne illness outbreak can impact and, in many cases, devastate, the entire food chain from grower to retailer to end user. This interactive session will put your team on high alert as an issue arises that may require a large-scale recall. How quickly should you act, what is your risk of regulatory exposure if you make the wrong call, and what is your civil or other exposure?

Registration for the NACS Show is required to attend the NACS Food Safety Conference. The conference is open to both retailers and suppliers; suppliers must be exhibiting at the NACS Show. Register today at www.nacsshow.com/register.

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VENDOR FAILURE? WHAT YOU DON’T KNOW CAN HURT YOU

A panel of convenience retail food safety pro fessionals will talk about what’s keeping them up at night regarding food safety within their companies, followed by audience Q&A.

• Dr. Jay Ellingson, chief scientific offi cer, Kwik Trip Inc.

THE HIDDEN DANGERS OF RECALLS; NAVIGATING (AND AVOIDING) REGULATORY, CIVIL AND CRIMINAL EXPOSURE

WHAT’S NEXT FOR OUR COMPANIES?

One of the unique things about this conference is that it’s going to be retail specific.”

BehaviorStayingaheadofEVtrends

has proven elusive for many re tailers, and it’s little wonder why. A decade ago, just over 100,000 electric vehicles were sold worldwide each year. Last year, that number had surged more than 50-fold, with 10% of global car sales electric, a four-fold jump from just two years prior. You know this, of course, as you scan the roadways each day and see lanes swelling with Teslas, Rivians and even Ford F-150s. NACS Magazine’s forecast from just a few years ago in these pages was one of cautious investment (“staying ahead of a potential shift in fuel type consumption could provide longterm benefits”); however, that tepid prescription has taken on a more critical urgency today. The question is not whether EVs will happen or what their impact could be. It’s whether you’re prepared for a fuel transition that’s growing exponentially with a momentum that promises to sideline those who … well … remain on the sidelines. With that in mind, we reached out to Blink Charging to deter mine the business opportunities associated with EV charging, and the available options should a retailer decide to join the EV (r)evolution and implement chargers at their station.

BY JERRY SOVERINSKY

Model

72 SEPTEMBER 2022 convenience.org As retailers consider providing EV charging capabilities, choosing the right business model can mean the difference between profit and loss.

At a very high level, the U.S. government is now actively involved in stimulating an EV charging infrastructure. The bipartisan Infra structure and Investment and Jobs Act (IIJA) allocates $7.5 billion to help build 500,000 electric vehicle chargers, with $4.75 billion of that total to be allocated to the states as part of the National Electric Vehicle Infrastructure (NEVI) Program ($2.5 billion will be distrib uted through a competitive grant program). The NEVI program is designed to help states create a network of EV charging stations along interstate highways. “The president’s bipartisan infrastructure law will help us win the EV race by working with states, labor, and the private sector to deploy a historic nationwide charging network that will make EV charging accessible for more Americans,” said U.S. Transportation Secretary Pete Buttigieg in announcing the plan. States applied individually to access funds from NEVI (the deadline was August 1, 2022), and any convenience store that installs su per-fast chargers along designated interstates or major highways could apply for funding.

“Applying for funds from your state’s NEVI allocation can be complex,” said Brendan Jones, president of Blink Charging. “To maximize a station’s share of proceeds, we encourage owners to work with their charging representative. Most should be deeply in volved with each state’s planning committee and understand their application process.”

NACS SEPTEMBER 2022 73

MONEY MAKERS Federal funding can no doubt help ease the financial burden associated with EV charging deployment, though due diligence is still nec essary to ensure practicality and a sustainable ROI. “While all forecasts point to increased adoption across the U.S., stations located in rural areas face numerous challenges,” Jones said. “For instance, a lot of rural locations don’t have extra electrical capacity with the utilities.”

This article is brought to you by Blink Charging, a NACS member.

De minimis: Some retailers choose to assess modest fees that simply cover their operational costs. This can be viewed as a loss leader, as the retailer seeks to lure customers to their store with the hope that they will generate in-store sales revenue while customers recharge their vehicles.

STIMULUS CHECKS

PICK A MODEL. ANY MODEL. “The first thing we look at is infrastructure,” Jones said. “We need to understand space and the physical wiring that needs to be done. That’s a reflection of the physical layout, but that assessment also goes toward understand ing the type of charging technology.”

There are two main charger types: Level 2 chargers, which work best for workplaces and residential units, and which can take five hours or more to reach a usable charge level; and DCFC, or fast chargers, which can charge a car over 80% in as little as 15 minutes.

Ka-ching: Others may look to charging stations as a stand-alone profit center, with fees that align with energy consumption. If you’re looking to beef up your bottom line, keep in mind that DC fast chargers can be costly to operate. The success of each depends on the unique factors associated with each store, such as location, customer demographics and more.

While the investment is sizable for any location, that’s not to say that your station must assume those costs. For that—and for any EV infrastructure deployment—a retailer will work with a charging service provider that offers electric vehicle service equipment (EVSE), selecting a business model that aligns with their EV goals.

Commensurate with each business model are separate considerations for customer fees.

Money Matters

Brendan Jones, president, Blink Charging

Plan logistics are still being finalized, with more information expected by September 30.

Additionally, it’s imperative to understand current and future demand trends to see if the financial investment makes bottom-line sense. That investment includes myriad hard and soft costs, including legal (it’s critical to understand your state’s public utility regula tions), construction, maintenance, promotion, real estate, hardware, software, cable, grid upgrades, regulatory compliance and labor, among dozens of others.

Gratis: In the free model, customers pay … well … nothing. The service is offered free to lure traffic or serve a larger customer need.

“After that top-level assessment, we present to the operator three operating models. The first is where the EVSE owns the equip ment (third-party owner-opera tor). The second is where the host owns the equipment (owner-opera tor). And the third is where the EVSE and host share ownership (this model is not available from all EVSEs).

Third-party operator In a third-party operator model (TPO), the EVSE takes care of nearly all costs associat ed with the installation and operation of the charging station. It develops the site, works to secure all necessary permits and typically leases space in the operator’s parking lot to operate the station. Any fees (see sidebar on page 73) are collected by the TPO, who shares revenues or pays a fee to the station owner. This model relieves the retailer from most build out and maintenance costs, as well as from cumbersome interactions with utility companies. With such an agreement, the retailer cedes a certain amount of control over the customer experience, which is assumed by theAdditionally,EVSE. with the TPO calling the oper ating shots, the retailer gives up the majority of the revenue potential of the charging sta tion. NOTE: This model is not available from all EVSEs.

Shared owner-operator In a shared owner-operator model, the EVSE and retailer split the investment costs while sharing in the revenues. “It’s not a standard model, but it’s one we offer to retailers, as it offers a generous balance of risk and reward,” Jones said. It’s just one way that Blink demon strates its commitment to finding flexible solutions that help each retailer achieve indi vidual success. “While some companies sell their equipment and make money solely from networking fees and maintenance, our options incorporate sustainable buy-in from the EVSE.” It’s an approach he says that promotes the long-term operation and maintenance of EV charging infrastructure while avoiding stranded assets.

“Any useful ROI projection must look at the various business models to determine the right fit. For an operator with multiple stores, different models may be more practical depending on their size and location.”

Owner-operator In an owner-operator model, the retailer purchases the EV equipment from a EVSE and then hires a contractor to install it. As such, the retailer assumes nearly all costs for con struction, operation and maintenance. In such an arrangement, the retailer retains full control over pricing and the customer experience, as well as revenue derived from the stations. “While the retailer assumes a majority of the responsibility associated with running the charging station, the EVSE should be a primary point of guidance in working through the issues associated with the de ployment, such as utility usage and regulatory compliance,” Jones said.

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Jerry Soverinsky is a Chicago-based freelance writer and NACS Magazine contributing writer. For more information NACS and the Fuels Institute offer numerous resources for retailers as they consider investing in EV charging infrastructure. Visit the NACS Electric Vehicle topic page atElectric-Vehicleswww.convenience.org/Topics/ and the Fuels Institute Electric Vehicle Council at Councils/Electric-Vehicle-www.fuelsinstitute.org/Council

BACK TO THE FUTURE With the EV marketing growing exponentially, the wait-and-see game (for most) is no longer an option. More important today is selecting a model that makes (dollars and) sense, thereby fully leveraging the opportunities that an electrically charged customer base presents for your company.

FUEL VEHICLESALLINMINUTES BlinkCharging.com Attract new drivers in all EV driver maps Fast electric charge from 30kW to 360kW Offer convenience with flexible solutions Get Started Today EVFuel@BlinkCharging.comChargingSolutions Visit us at the NACS Show Booth 7377

PinchThe

The Convenience Group umbrella totals nine stores in Washington state, including Quick Shop Minit Mart, La Center Marketplace, Felida Store and Paradise Truck Stop, with a standard store footprint of about 3,000-4000 square feet. Merchandise skews more toward grocery than is traditionally found at c-stores, with stores taking more of a superette approach to convenience. As curbconsumersspending,retailersaredevelopinga2.0planforcombatinginflationarypressuresasexpectationsriseformoreeconomicturbulence.

NACS SEPTEMBER 2022 77 T he pace of inflation seems unwilling to cease its mete oric rise. The U.S. Department of Labor reported the Consumer Price Index increased 9.1% for the 12 months ended in June, marking the largest 12-month increase since the end of November 1981. There has been contin ued upward momentum in nearly every index, including food away from home (up 7.7% vs. last year) and food at home (up 12.2% over the past 12 Economistsmonths).across the board have been sounding the recession alarm, and inflation has been a continued top story in the media. “Inflation is one of the most vexing issues facing economists and government policy makers and is a factor raising the risk of U.S. recession,” declared The Wall Street Journal. Fortune suggested “the economy is headed towards stagflation—a combination of slowing economic growth and high inflation—depending on which expert you speak with.” While no one holds the crystal ball on a recession, the subject continues to make its way into daily conversations in every industry, and of course, convenience store executives share a concern about the pending headwinds. “I can tell you that in the 30-plus years that I have been in business, the stars have never lined up like this before,” said Don Rhoads, president of The Convenience Group. “Labor issues, supply chain issues, inflation—all of it is hitting us at the same time. We are in for an interesting ride here, I think, for the next two years.”

Spicca/ShutterstockStefano

BY RENEE PAS

Families are making choices today based on what’s left in their pocketbook, Rhoads said. Across his stores, customers are trading down, trip count is flat and basket size has declined—“not in double digits, but worth watching.” The optimistic side of him wants to factor in a wet spring in the Pacific Northwest as the cause of changing shop ping patterns, but he knows inflation is also taking a “Normallytoll. we have a basket size around $13,” Rhoads said. “We’ve lost somewhere in the neighborhood of 7% of that in the last six months.” He notices that customers are buying down and likely doing more destination shopping because of higher gas prices. The goal now, he said, is to “balance our portfolio so that the three- to four-minute trip is still important.”Rhoadscontinues to see a huge long-term opportunity in foodservice growth. The Convenience Group operates its own commis sary, so it produces most of the food it sells at stores itself. The chain now also works with a third-party foodservice provider in an effort to circumvent the ongoing labor shortage.

78 SEPTEMBER 2022 convenience.org ImagesChaluk/Getty

“Our core customer knows we are working very hard for them when it comes to the craft beer and wine category,” he said. “It comes down to the dollar ring for us in the category.

Another solution deployed at Coen Markets has been to trim out an item from the meal to maintain pricing. For instance, transitioning from always including dinner rolls with meal purchases to making them an optional add-on item is one approach. It’s a slight variation on a tactic employed by packaged goods manufac turers dubbed “shrinkflation”: Reduce pack age size/ounces yet maintain the price point.

Yet another strategy playing out at Coen Markets is expanding its proprietary product line with more value-centric items. For exam ple, adding to its proprietary pepperoni rolls— its hero product—by way of a pretzel stick and bread stick rollout, which are “much more of a value line,” Dornish said.

CONSUMER BEHAVIOR SHIFTS

Smaller basket sizes and more frequent visits mark the new normal when it comes to cus tomer shopping patterns at many retail stores, including Parkland USA’s network of c-stores, said company president Doug Haugh. “Many customers are not filling up; they are filling in just enough to get by, and the average in-store basket has downshifted to economy brands or smaller size items,” he said.

When I think about where we sit changed.”tagsallyear,versustodaylastalmostourpricehave

“That doesn’t mean we are reducing our commitment to foodservice,” Rhoads noted, adding that the shift is more about scale. He plans to supplement his commissary space to increase production of sandwiches and sides from the additional space. He’s even working on a wholesale partnership model, focusing on gourmet grab-and-go items for other retail establishments. In addition to foodservice opportunities, premium beer and wine are key segments for The Convenience Group. The chain pays close attention to beverage pricing outside the c-store segment as part of its effort to keep stores relevant for customers, going so far as to post point-of-purchase information comparing pricing to nearby grocery stores.

It’s not always about margin; it’s about a value offering and remaining our community’s store of choice.”

Customers at Coen Markets, a 60-store chain that operates in the Pittsburgh region, have certainly shifted habits toward looking at prices, said Colin Dornish, senior director of operations for Coen Markets Inc. “The sticker shock for customers is happening every where—grocery stores, QSRs, c-stores—every one in unison is raising prices.” Coen Markets stores routinely receive weekly, sometimes daily price changes now. “When I think about where we sit today versus last year, almost all our price tags have changed,” he said.

In the face of higher prices and consumer purchasing shifts, Coen Markets is focus ing heavily on positioning toward value. In the foodservice arena, that translates to the retailer setting a price for a full meal instead of raising the price of just one singular entree.

There is a purchasing shift happening with consumers to be certain, said Jason Zelins ki, client director, convenience and growth accounts, NielsenIQ. “Upticks are happening with smaller sizes across the board,” he said.

The decline in the all-outlets combined bar reflects customers leav ing categories altogether due to price increases, said Jason Zelinski, client director, convenience and growth accounts, NielsenIQ. That leaving-the-category shift is more common in the grocery segment, he said, pointing to fresh seafood as one example. Fresh seafood is experiencing the highest price increase of any department, prompting customers to switch to frozen alternatives, he said, which have not yet experienced the same price increase. The same trend is being seen in consumers moving from fresh-to-frozen meat.

Understanding shopper shifts also means realizing how behavior shifts back once consumers get money in their pockets again. “During a recession, private label strengthens, but that tide shifts back to national brands as In the 30plus years that I have been business,in the stars before.”upneverhavelinedlikethis

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Add to that a mind-shift change with private label, Zelinski said. That shift started even before the pandemic, but with infla tionary pressures today, consumers are even more receptive to private-label items, he explained. “There’s an enhanced trust with private-label brands today,” he said. “Gro cery and mass merchandisers caught on to that during the last financial crisis, doubled down on private label, and it’s now paying dividends for those segments.” Some retailers are even adding tiers to their private-label lines, with a base price, midrange and premium-level private-label options.

“People have a brand loyalty to that chain, and because of that they are willing to try new products,” Zelinski said. “If you have great brand loyalty, it can extend to private label.”

Source: NielsenIQ RMS Data Latest 13 Weeks Ended June 11, 2022

Unit % Sales Change

In c-stores that is happening with milk. If smaller sizes are not available the consumer is opting to leave the category. The consumer is shifting dras tically on pack sizes, Zelinski noted, with purchase habits changing from buying a full gallon of milk, for example, to a half gallon.

Zelinski realizes smaller c-store retailers may find scale a barrier to entry for private label. If that’s a factor, he suggests considering adding generic, or white label, products to at tract those buyers seeking lower price points. “Not every c-store has the negotiating power for private label, but there are a lot of generic options today, and consumers are more open to those than ever before,” he said.

Trader Joe’s is an example of a chain that is largely built exclusively around private label.

Private-label items are trending better than national brands across the board, according to data from NielsenIQ. Total U.S. convenience unit sales for private label increased 1.5% by mid-June, compared with a 2.8% unit sales decline of national brands.

Private Label Showing Growth Amid Inflation

Private Label 1.5 -2.8

Total U.S. Convenience Total U.S. xAOC -1.9 -3.5 National Brands

xAOC = All Outlets Combined (club, dollar, drug, food, mass, military channels)

Vendor price changes have come through across the board for both Coen Markets and The Convenience Group. Where vendors might have once been a bit timid in imple menting price changes and often validated the changes by explaining the need for them, Dornish said today vendor price changes have become a normal pattern of life. “No one is remorseful or shy about pushing along price changes anymore,” he said. In an effort to be more proactive with the imminent vendor price changes, Rhoads anticipates adjusting his purchasing pat terns, particularly if he’s aware of a pending price increase on an item. That’s one way he feels he can prepare for what’s coming and take advantage of any buy-ins. He’s also tapping supplier relationships to know what to expect. When chocolate supply came into question last year, for example, he worked with the vendor to come up with a roadmap to be ahead of what was happening. “I have the ability to get on the phone and call in one of my suppliers, including my main wholesaler, and discuss what’s happening on their end and how it will affect me coming into the next quarter,” he said.

ImagesKurbatova/GettyOlga 82 SEPTEMBER 2022 convenience.org the economy shifts,” Zelinski said. “We saw that even last year before gas prices started spiking, when the government was sending money to households. Private label took a dip. People started trading back up with the influx of money; now that trend has reversed.”

Rhoads’ strategy looking forward is to “control the controllables,” and find a way to balance inflationary pressures. “Inflation does not treat every category equally,” he said. Food-related inflation, particularly with pro teins, has been a focal point for him and has taken the brunt of inflation. Foodservice was one of the first places retail prices increased at The Convenience Group stores, impacting sandwiches, sides and grab-and-go items.

The flip side is understanding when not to react too quickly, which in Coen Markets’ case became evident when the team started to re-evaluate packaging. Since customers tend to purchase food items for immediate con sumption, the thinking was the retailer could switch out its take-home-style packaging in favor of something less expensive. It made sense, said Dornish, until the team started to work through the details on how long it would take to implement. “Transitioning quickly would have meant stores might have a backlog of packaging in their back rooms,” he said. “We want to avoid inconsistencies in our food presentation. It just means diligently thinking through an exit strategy when mak ing some changes.”

PRICING AND THE SUPPLY CHAIN

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Coen Markets has likewise been contend ing with food prices. “We are reacting quickly to pricing and supply chain issues; we’ve dialed into what we can change quickly and what will change diligently,” Dornish said. On the nimble side of things, Dornish pointed to the transition to a QR-code-based menu as an example. Coen Markets had his torically printed a menu for its food program, then as commodity changes happened with chicken, the retailer printed its menu three or four times in a short period of time because of protein price increases. The move to a QR code allows Coen Markets to have a more agile pricing strategy, he said.

PROMOTIONS PROMPT PURCHASES

The impact of inflation on consumer spend ing is apparent in nearly all households, with 95% of consumers reporting inflation has impacted their finances, according to New Realities & Routines, a study by Numerator. The most common adjustment has been stocking up on sale items (51%) and search ing for coupons, promotions and sales (50%).

Those same money-saving approaches are expected to continue in coming months, according to the report. The same message rings true in c-store specific data, where the number of shoppers noticing promotions showed an uptick of 10 points in the 2021 NACS Convenience Voices survey. The percentage of shoppers reporting they noticed a promotion on their visit was 30% in 2022 data, compared with 20% in 2021. “People are noticing more promotions, and that is prompting them to make a purchase,” said Lori Buss Stillman, vice president, research, NACS. “Shoppers are incredibly aware that promotions might help them stretch their dollars.” Because accelerated food prices and inflation have both been heavily covered in the news, she believes con sumers are even more aware of store prices today and will be discreet in their choices. For instance, perhaps a family will watch a movie at home instead of going to the theater, Stillman suggested, but they may still stop at the c-store for the same fun candy they would have normally bought at the movies. Or, perhaps a shopper will try a brand they would not have purchased in the past because of a lower price. Inflation will continue to change the way consumers shop, she said. “We have to continue to offer the consumer reasons to come inside, consider how the trip missions are changing, and make sure our strategies can withstand the test of time.”

Shoppers are

dollars.”stretchhelpmightpromotionsawareincrediblythatthemtheir

NACS SEPTEMBER 2022 83

Renee Pas ’ writing draws from both her c-store background and her more than 20 years writing about various retail channels. She can be reached at reneepas4@gmail.com

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Imagesvichie81/Getty

ADVANTAGE

BY TERRI ALLAN

NACS SEPTEMBER 2022 85 sales.crimpQSRscompetec-storesserviceWindowhelpswithbutcanimpulse

ach of the three stores opened by Oklahoma’s Jiffy Trip chain in the past three years has a drive-thru window, and according to Alex Williams, COO, that’s likely to be the model going forward. “We’re committed to them,” he said, pointing to drive-thrus’ popularity in the QSR channel, as well as changing con sumer demands. “Whether it’s families with children or people in a hurry, fewer custom ers want to go in store. A convenience store with a drive-thru has an advantage over those without one. It’s a differentiator.”

DRIVE-THRU

Texas’s Fuel City, meanwhile, has oper ated a c-store with a drive-thru window for 22 years. According to Joseph Bickham, president, “whether it’s the weather or people A WILL DRAW CUSTOMERS TO YOU.”

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NO LOOKING BACK

Several c-store operators with longestablished drive-thrus, though, report they’ve been successful. Jiffy Trip opened its first drive-thru in 2018, and in recent years the model has evolved. The company’s app, for example, has helped speed up transac tion times with foodservice orders placed in advance. Today, five of its 26 stores offer the windows—with no limits on the products sold. “Sales at our drive-thrus are growing,” said Williams. “We’re seeing a lot of repeat business.” In fact, Jiffy Trip plans to include a drive-thru at its first Arkansas store, slated to open later this year or early 2023.

86 SEPTEMBER 2022 convenience.org Jiffy Trip is far from the only c-store com pany enamored with drive-thrus these days. “The pandemic has been a gamechanger,” explained Howland Blackiston, principal at King-Casey, which advises restaurants and c-stores on store design. Noting that pandem ic lockdowns often meant that “drive-thru was the only option” for consumers to pur chase foodservice items, Blackiston said con sumers increasingly expect that convenience.

DRIVE-THRU IS ALL ABOUT SPEED.”

Jiffy Trip’s three newest stores in Oklahomadrive-thrus.include

Indeed, Ilyas Munshi, group commercial director at EG Group, a U.K.-based c-store powerhouse that operates numerous drivethrus in Europe, remarked that the com pany’s investment in the concept “has been fundamental to the success of our foodser vice brand partners,” including Starbucks, KFC and Burger King. As pandemic lock downs in Great Britain eased, “the impor tance of drive-thru engagement became even more prevalent as customers weren’t comfortable accessing traditional in-store seating facilities,” Munshi said. Operators of drive-thru c-stores in the U.S. report similar results. Victor Arechaveleta, vice president, business development, at Farm Stores Fran chising LLC—whose 48 franchised stores are exclusively drive-thru—said that at the peak of the pandemic, individual locations saw sales double.

To be sure, for QSR operators drive-thrus have emerged as a lifeline, accounting for 50% and more of store sales. But for c-stores, drive-thrus are a more complicated propo sition. Joseph Bona, president, Bona Design Lab, a retail design consulting firm, said c-stores have lagged behind QSRs in embrac ing drive-thrus due to the nature and scope of products sold. “QSR outlets sell maybe a couple dozen items,” he explained. “But for c-stores, with so many items stocked, the question becomes, what do you run through your drive-thru?” Blackiston recommends that c-stores limit drive-thru orders to foodservice items. “Drive-thru is all about speed. Food is highly profitable. Why push other things?” he asked. Other considerations for c-store operators include site location in the midst of fuel pumps, parking and even a car wash, as well as legalities related to age-restricted products.

DRIVE-THRU

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While drive-thrus for major c-store chains may be a new development, community-focused drive-thru markets have abounded for years. TJ’s Drive Thru in Bloomville, Ohio—literally a drive-thru as vehicles enter the door into the build ing—opened in 2008, and according to Jim Price, who owns the store with his wife, Toni, annual sales top $3 million, with half coming from the drive-thru. The only business in the town of 900 residents, TJ’s sells a full line of grocery items, as well as beer, wine and tobacco products via the drive-thru. Fast lane Drive-Thru in Chipley, Florida, a rural farming community, is set up similarly. “On a busy day, we may serve 250-300 vehicles,” said co-owner Melissa Lane, noting that items like beer, soft drinks, snacks, cigarettes and lottery tickets are popular. “We also do a good business for breakfast and lunch,” she said.

Fuel City takes a

COMPETITIVE EDGE

Individual stores serve between 200 and 400 vehicles a day.

The biggest benefits of c-store drive-thrus, according to retailers and channel experts, are the competitive and incremental business opportunities they provide. “A drive-thru will draw customers to you,” remarked Bona. “They’ll go next door if the option isn’t there.”

tureddrive-thruapproachwhimsicaltoanearDallas,Texas,alocationfeainthe2017NACSIdeas2Goseries.

Sheetz has several stores with drive-thru service, including this one in Manassas, Virginia.

just not wanting to get out of their cars, our drive-thru has been popular,” typical ly serving a few hundred vehicles a day on weekends, and accounting for about 5% of store sales. “Generally higher volume items pass through it,” Bickham continued, such as packaged beverages, beer and tobacco products. While “we don’t encourage” sales of all store items via the drive-thru, he said, Fuel City staff will fulfill customers’ orders at the window. Like Jiffy Trip, Fuel City plans to open a new location soon—its eighth—com plete with a drive-thru. On the East Coast, Wawa’s recent foray into drive-thrus has received quite a bit of attention. The Pennsylvania-based chain opened its first store with a drive-thru win dow in New Jersey in late 2020, followed by a drive-thru-only store in the Keystone State early last year. Bona sees opportunity for the latter model. “A drive-thru-only [model] may very well be the best approach for c-stores,” he remarked.

Williams and Bickham agree. “We’re seeing a lot of business we may not have gotten,” noted the Jiffy Trip executive of his win dows. “We’re blurring the lines a little bit with QSR.” Drive-thrus may even provide some cost savings, Bickham suggested. “With drive-thrus, customers bring their own air-conditioning and chairs. We’ve seen fewer requests for condiments, and there’s no clean up,” the retailer said.

A CONVENIENCE STORE WITH A DRIVE-THRU HAS AN ADVANTAGE OVER THOSE WITHOUT ONE.”

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Miami-based Farm Stores, meanwhile, are designed with an open doorway, and a store associate walks up to a vehicle, takes the order and delivers it. In-store traffic isn’t permitted. About 600 SKUs are typically offered, and according to Arechaveleta, baked items are the chain’s top-selling products.

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training of drive-thru personnel is impera tive. “You can’t have a new employee working the drive-thru,” he said.

Bickham expects that drive-thrus will become a bigger part of the c-store business in the years to come. “With air-condition ing, comfortable seating and Bluetooth, people love spending time in their cars,” he explained. It’s even possible that drive-thru c-store sales could grow to account for a substantial portion of store sales. “Post pandemic, there’s no doubt that drive-thrus offer a significant value to consumers,” said Arechaveleta, noting, “they already account for 100% of our sales.”

Terri Allan is a New Jerseybased freelance writer. She can be reached at terri4beer@aol.com and on Twitter at @terriallan.

C-store operators who have been successful with drive-thrus advise retailers considering the model to visit and study other drivethrus, build from the ground up, rather than add on to existing stores, and to complete site research. Well-planned layout and design is also a must. “It’s imperative to acknowledge the importance of drive-thru design and the subsequent operations resourcing as poor drive-thru execution, especially speed of service, can impact brand perception and sub sequently sales,” remarked EG’s Munshi.

Wawa made a big splash when it unveiled plans for its first drive-thru-only store in Morrisville, Pennsylvania. The focus of the new prototype store, which opened in January 2021, is on Wawa’s most popular food and beverage items.

Perhaps the biggest impediment to c-store expansion into drive-thrus is the loss of impulse sales that are a big driver for in-store sales growth. “C-stores remain a mostly impulse-driven industry, whereas QSRs are almost exclusively based on a defined pur chase,” said Bona. For retailers, “providing choice is part of the impulse mission and a key reason why drive-thrus may be somewhat limiting for c-stores and therefore not a good fit.” At Farm Stores, which has no walk-in traffic, employees are trained to suggestively sell, such as a lighter to a customer purchas ing a pack of cigarettes. “Our staff is more like waitstaff when it comes to upselling,” said Arechaveleta. Williams agreed that proper

IMPULSE SALES IMPACT

But drive-thrus may not be a good fit for every c-store, depending on customer, market and real estate conditions. St. Romain Oil Co.’s Y-Not Stop in Louisiana operated a drive-thru at one of its stores for two years, before shut ting it down in the spring of 2020. According to Annie St. Romain Gauthier, co-owner, while at its peak drive-thru sales reached 14% of in-store sales, staffing was a big challenge, and “the dedication of space and redundant inventory wasn’t working for us. Operational ly, it felt like an albatross around our necks.”

90 SEPTEMBER 2022 convenience.org 5 TIPS FORCONSIDERINGRETAILERSDRIVE-THRUS Do your research— visit and study other GetgroundBuilddrive-thrus.fromtheupinsteadofaddingontoexistingstores.Focusonhighervolumeitemslikefoodservice,beerandpackagedbeverages.Mobileappsspeeduptransactiontimeswithfoodserviceordersplacedinadvance.staffingright—usetrainedemployeeswhoknowstoreinventoryandcanupsell.

Since shutting the drive-thru down, “we’ve continued to grow sales at that store at a fast er pace than other stores,” remarked Gauthi er, adding, “we’ve since built two new stores without drive-thrus with no regrets.”

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CHECKSECURITY 92 SEPTEMBER 2022 convenience.org SMARTSAFE VISIBILITYGOOD

Show potential criminals your c-store isn’t worth the risk by following these best practices.

BY SARAH HAMAKER Twice a year, The PRIDE Stores Inc. management double checks its door locks. With all 16 locations open 24/7, “it’s one of the security things that can easily be overlooked,” said JT McGlynn, director of opera tions for the convenience chain owned by Parent Petroleum Inc., based in St. Charles, Illinois. “It’s part of our overall safety procedures that we have in place to ensure customers and employees both are comfortable in our stores and forecourts.” Whether your store is open overnight or only during the day, reviewing security measures on a regular basis can keep shoppers and workers safe while serving their needs—all within any retailer’s budget. “When you look at effective crime prevention, it doesn’t have to be expensive,” said Jeff Lenard, NACS vice president of strategic industry initiatives. “But you do have to be proactive in taking preventive steps.”

NACS SEPTEMBER 2022 93 WELL LIT

Visibility into the store itself also signals whether or not the location is high risk to would-be criminals. “Having minimal signage on the windows and doors provides

Some stores have gone cashless as a way to reduce potential crime. “Our cashless, self-service-only retail transactions have lowered theft at Platte Street Mercantile because there is no cash to take,” said Janine Williams, CEO/founder of Impulsify and co-owner of the Denver store. “There’s also a ‘successful transaction’ sound to our self-service kiosks to give our attendants au dio awareness a transaction was completed.”

MINIMIZE THE REWARD

The No. 1 way to prevent crime at your loca tion is to make it not worth the effort. That can be tricky given that convenience stores are one of the few retail places still handling a lot of cash transactions, and “cash is of most value to would-be robbers,” Lenard said.

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“Having a plan to limit the amount of cash in the drawer is vital.” Many retailers solve that potential problem by having a drop safe inaccessible by staff.

Visibility is a

“By putting deposits in a time-delayed or smart safe, employees no longer have access to funds,” said Donny McKay, vice president of marketing and engineering for American Security. “Many retailers put up stickers on the entrance doors and near checkout notify ing everyone that employees don’t have access to safe McKayfunds.”pointed out the higher the dollar value being stored in a safe, the higher the safe’s security should be. “Your safe should always be bolted to the floor,” he said. “Since no safe is 100% impenetrable, it’s also a good idea to have a burglary alarm in place, as well as surveillance cameras positioned so that the safe and anyone accessing it are in plain view.”

For a safe to work for you, retailers must train clerks how to use it. McGlynn noted POS systems now remind cashiers when it’s

“Your theboltedalwaysshouldsafebetofloor.”

MINIMIZE THE RISK

time for a money drop into the safe, such as having an alert when the till reaches a certain amount. “That has been great to helping our employees keep the money in the safe, thus reducing the available cash amount,” he said.

One key to crime prevention is to show po tential criminals your location isn’t worth the risk. Dr. Read Hayes, research scientist at the University of Florida and director of the Loss Prevention Research Council, recommends starting with the outside. “The parking lot is the first and last place employees and custom ers encounter, so make sure it’s well-lighted, neat and clean,” he said.

theintoobscuredoorsonandinteriortool.crime-preventionkeyUsebrightlighting,limitsignagewindowsandthatwouldviewsandoutofstore.

getzipline.com/cstore

As in the forecourt, interior lighting should be bright throughout the store to both encourage purchases and to discourage any criminal activity. “Some stores have lighting get brighter when someone moves to a partic ular area of the store, which is quite effective as a deterrent for shoplifting,” Hayes said.

More and more retailers are simply allowing merchandise theft to happen these days. “It’s all about keeping the customers and employ ee safe,” Hayes said. “We’ve also seen some retailers, like Walgreens in San Francisco, shutting down locations because of high inci dents of theft.”

At Platte Street Mercantile, attendants are not encouraged to “accuse or address poten tial item theft for their own safety,” Williams said. “A Gatorade just isn’t worth it. However, we do provide our staff with hospitality train ing on nonconfrontational ways to address an unpaid-for item.”

PERSONAL SECURITY

Some retailers also hire their own security guards to bump up store safety. “This can be effective in crime prevention if the guards have visible radios and microphones to call for help—you want to create the impression that the guard will be capable of reporting ayourisandtheandnighttimebelightingForecourtshouldbrightforsafety,keepingareacleanunclutteredasignalthatstoreissafeone.

Artificial intelligence has whetherofincreaseddramaticallytheusecamerasatretail,forcashierless checkout or recording customer movement throughout the store. “AI is playing a larger role in crime deterrence at self-checkout than previously possible,” said Dr. Read Hayes, research scientist at the University of Florida and director of the Loss Prevention Research Council. Within the past five years, The PRIDE Stores upgraded its surveillance system to motion-activated cameras and switched to digital instead of analog. “This allows us to zoom in on certain things, like license plates or in-store displays,” said JT McGlynn, director of operations for the chain owned by Parent Petroleum Inc. “One of the newer features is a 360 camera that blends eight to 12 cameras together to get an orbital view of the store, which we use to watch customer travel patterns.” good visibility for those entering and exiting the store, something many criminals would shy away from,” Hayes said.

96 SEPTEMBER 2022 convenience.org ImagesPalilai/GettyPornyot

THEFTS HAPPEN

“Some stores have lighting get brighter when someone moves to a particular area of the store, which is quite effective as a deterrent for shoplifting.”

Smile! You’re on Camera

The PRIDE Stores have a “no confrontation and no chase” policy when it comes to shop lifters. “The safety of our employees comes first, and their well-being is more important than any items in the store,” McGlynn said. “We emphasize that during our extensive onboarding training, and each year review it as part of our overall refreshers. We also regularly discuss any area incidents—whether at our stores or nearby retailers—and go over what the employees did right and what they should have done instead.”

For low traffic times, it can be tempting to reduce the staff to a single cashier, but these retailers and experts say that can invite trouble. “While most of our locations are busy around the clock, there are some that aren’t,” McGlynn said. “We still staff all stores with a minimum of two employees at all times.”

“Allowing police and other law enforcement space to fill out paperwork or use the restrooms during a shift can provide an additional layer of security at your stores.”

The PRIDE Stores have a “no con frontation and no chase” policy when it comes to shoplifters. And the andfountainstoppoliceretailerChicago-areawelcomesofficerstobyforfreedrinkscoffee.

accurately to the police what happened in the store,” Hayes said. Off-duty law enforcement often make ideal private security guards for retailers.TwoPRIDE stores, one in downtown Chicago and the other in Cicero, Illinois, have private security guards 24 hours. “We hired off-duty Chicago police officers for those lo cations a few years ago because of altercations in the parking lot and other nearby incidents that created an unsafe atmosphere for our employees and customers,” McGlynn said.

As Lenard said, “Allowing police and other law enforcement space to fill out paperwork or use the restrooms during a shift can provide an additional layer of security at your stores.”

For more information on robbery deterrence, check out the NACS Crime Prevention Through Environmental Design approach at https://bit.ly/3unOjcg

98 2022 convenience.org

SEPTEMBER

STAFF IT RIGHT

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

The Platte Street Mercantile attendants roam the store, assisting customers and overseeing self-service transactions to ensure items have been logged correctly. “This means the attendant isn’t distracted by a single transaction and has more awareness of what’s going on in the store,” Williams said.

“Our No. 1 job is to make people feel safe in our stores,” Lenard said. “Achieving that can be as simple as installing a time-release drop safe and improving lighting and visibility into the store—those are steps any retailer can implement and see immediate results.”

The retailer also encourages on-duty law enforcement and firefighter personnel to stop by for free fountain drinks and coffee anytime. “You want them to hang out at your locations as that makes your employees and customers feel safer,” he said.

By following these simply steps, conve nience retailers can create a safe and secure location for both employees and customers.

We’ve found that we can provide additional value to our customers by leveraging our history and expertise in cash management to improve cash management practices in stores in general. Focusing on OEMs as well as retailers helps optimize retailers’ cash management practices. Because we also have other equipment in our portfolio—like back-office cash counters and cash and coin automation at the point of sale—we have many proven ideas on how to make the whole process seamless. We ensure that the system we sell to each operator suits their needs and is not a “one-size-fits-all” configuration. We can streamline implementation and provide c-stores—and all retailers—with a complete range of support and services. CPI develops integrated technologies that keep customers moving. In addition to self-checkout, our full portfolio includes everything from attend ed lane automation to coffee kiosks, cash processing, vending and fourth-wall revenue solutions. CPI can assist retailers by work ing with them to ensure a successful trial, followed by a successful rollout.

Q: SELF-CHECKOUTS ARE FAST, FLEXIBLE AND COST-EFFECTIVE. HOW CAN CRANE PAYMENT INNOVATIONS HELP RETAILERS SUCCESS FULLY DEPLOY THE TECHNOLOGY?

Bassam Estaitieh Director of Strategic Marketing – Retail, Crane Payment www.cranepi.com/enInnovations

Q: SHOULD RETAILERS START OFF BY PILOTING SELF-CHECKOUT IN JUST ONE STORE, OR DO WHOLESALE IMPLEMENTATIONS WORK BETTER? Most retailers already understand the potential positive impact self-checkout can have on their operations, and our customers have found the quicker they can implement at least 1-2 self-checkout units per store, the faster they can achieve their desired results.

We encourage retailers to try self-checkout technology at a limited number of locations to understand the parameters for a success ful deployment, and then roll out en masse. Obviously every store is unique, so using a few machines in a trial or pilot will make the mass implementation more likely to be seamless.

Here are a few lessons that we or our custom ers have learned about implementation:

1. Don’t roll out without cash. You can’t eliminate lines or achieve the desired ROI without both cash and cashless at the self-checkout.

4. The most important thing to do is to work with a technology provider that also serves as a trusted partner. CPI works one-on-one with c-store operators to create a self-checkout configuration that will accommodate their current and future needs, as well as plan a streamlined imple mentation that will work for them. We’ve developed a suite of preventive mainte nance and other services to meet individual

2. The self-checkout should be front and center. You need people to easily find it and check out! By the entrance/exit or near the assisted cashier stations is best practice.

3. Employees and customers need train ing. Moving to self-checkout is a big change for your store, and both employees and cus tomers need to get on board. Store owners and managers need to facilitate this—they need to position an ambassador at the ma chines at first to train and encourage their customers to use their self-checkouts, they can add signage around the store, and they can ask regular customers to help advocate.

Q: WHAT ARE SOME THINGS TO CONSIDER WHEN ROLLING OUT SELF-CHECKOUT?

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Here are some best practices to consider to best meet the needs of your customers and stores.

The ROI of Self-Checkout

c-store operators’ specific requirements and can recommend the right plan for each of our customers depending on what those and their transactions have 81% higher value compared to those who don’t interact with an associate. This interview is brought to you by Crane Payment Innovations Inc., a NACS member. butcustomerlimitedbenefitsSelf-checkoutarenottobetterservicecouldalso

“Most convenience stores are open 24/7, which is especially important during times of need, like wildfires, torna dos, hurricanes or snowstorms. These are the times when communities not only rely on their local c-store for essen tials but also the first responders and American Red Cross volunteers who are dedicated to keeping our communities safe,” said Stephanie Sikorski, NACS vice president of marketing and director of the NACS Foundation.

The fourth annual 24/7 Day celebrated the partnerships between c-stores and those on the front lines.

hat better way for the industry to build on that caring culture than through the NACS Foundation Response Relief’s 24/7 Day? The fourth annual event, which took place July 24, celebrated and recognized the first responders, medical and emergency professionals, and American Red Cross volunteers who are there for their communities during times of need.

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BY SARAH HAMAKER

The event unified the collective efforts of tens of thousands of convenience stores, which honored and thanked these workers with free beverages and sandwiches and other forms of appreciation.

CommunityCreatingaCaringW

NACS SEPTEMBER 2022 103

“Every disaster is different and will prompt unique needs for a community,” said Nathan Measom, director, cause marketing, Amer ican Red Cross. “Historically, convenience stores have been among our most valued cause marketing partners.”

Learn more about 24/7 Day and how convenience stores care for their communities on July 24, and every day of the year, in the NACS Convenience Matters podcast episode No. 342: “How Retailers Support Local Heroes Around the Clock ” at support-heroes.com/episode/342-retailers-www.conveniencematters.

For Keurig Dr Pepper, supporting its com munities has long been part of the company culture, and 24/7 Day was a natural fit. “This was our first year participating in 24/7 Day,” said Kevin Martello, vice president, national retail sales convenience retail and industry relations, Keurig Dr Pepper. The company provided Yesway stores with a special offer for first responders on CORE Hydration water, supported with in-store signage and displays. “We also provided Keurig Dr Pepper beverage coupons to fire departments to redeem at their local Yesway as an addition al thank you,” Martello said. “Partnering with Yesway and the NACS Foundation on 24/7 Day was an important opportunity for us to continue providing front-line support, while engaging with our customers and consumers.”

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In 2018, NACS launched the first 24/7 Day with three retail partners—RaceTrac, Sheetz and Wawa. By its third year, participation had blossomed by more than 1,000% with 30,000plus convenience retail locations in the U.S., showcasing how the convenience retailing industry is stronger together. This year, the event grew even bigger, extending the reach to more than 50 convenience retailers repre senting more than 30,000 stores.

THE WHY Convenience retailers give back for myriad reasons, but one undergirds them all: They want their communities to know they care and are there for them 24 hours a day, seven days a week. Here’s why some convenience stores participated in this year’s 24/7 Day.

NACS Foundation’s 24/7 Day has expand ed to include supplier partners, too. “GSP is always focused on helping retailers commu nicate to their consumers,” said Kevin Farley, COO, GSP. “Convenience stores are an om nipresent, integral part of society. 24/7 Day gives us a chance as a part of that community to say thank you to a specific group of people that, like the convenience stores themselves, are just always there when we need them.”

• “It’s important to honor those who, just like convenience stores, are on the clock 24 hours, seven days a week to provide essential services,” said Anna Felz, marketing brand manager, TXB Stores. This is the third year TXB participated. “The people we see every day are our friends and neighbors, and we want to give back as much as we can to give our communities the support they need.”

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• “We’re grateful for all first responders and the services they provide to our nation,” said Steve Hostetter, CEO, Tri Star Energy, the parent company of Twice Daily and Sudden Service. “Now it was our turn to serve our local first responders in the middle Tennessee and greater Huntsville, Alabama, areas on 24/7 Day.”

A sincere

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• “NACS Foundation 24/7 Day shows our support for front-line workers, including our great store employees,” said Chris Hartman, senior director, fuels, forecourt, advertising and construction, Rutter’s. “It’s great to be part of the event because it keeps with the core values of our company. We continually seek out ways to support those who keep our community safe, healthy, happy and thriving, like our frontline workers.”

• “NACS Foundation’s 24/7 Day astutely aligns with efforts most convenience retailers already take,” said Derek Gaskins, chief marketing officer, Yesway. “Like many other retailers, Yesway gives police, military, fire and others on duty in uniform free dispensed beverages across our stores every day. Coordinating with the NACS Foundation for 24/7 Day helped amplify that impact beyond just our stores and operating regions.” Participants thank you 2022 NACS Foun dation 24/7 Day, as well as GSTV as the official media partner:

NACS Foundation 24/7 Day

to all participants in the

• 1 Stop • Admiral • Allsup’s • Apple Market • BreadBox • California Fuels and Convenience Alliance (CFCA) • Casey’s • The Convenience Group LLC • Delek • ExtraMile • E-Z Mart • Fas Mart • Fast Market • Golden Pantry • Golden Pantry Market • GPM Investments • GSTV (official media partner) • Handy Mart • High’s • Holiday Station Stores • Horizon Fuel Center • The Hub Convenience Stores • Huck’s • Jiffy Stop • Jiffi Stop • Latitudes • Li’l Cricket • Loop Neighborhood Market • Mickey Mart • Minit Mart • Next Door Store • Pilot Company • Quik Stop • R-Store • RaceTrac • Rapid Refill & Garrett’s Family Market • Roadrunner Markets • Rutter’s • Scotchman • Sheetz (Community Advocate Sponsor) • Shore Stop • Spinx • St. Romain Oil • Sudden Service • SunStop Stores • Town Star • Twice Daily • TXB Stores • Village Pantry • Wawa • Wakepoint • Yesway • ForYoung’sacomplete list of how each partner embraced 24/7 Day, visit www.247day.org.

• “It’s an honor to participate in the NACS Foundation’s 24/7 Day and give back to those in our communities who give so much of themselves,” said Michael Bloom, executive vice president and chief mer chandising and marketing officer, GPM Investments, a wholly-owned subsidiary of ARKO Corp. “This initiative brings the en tire industry together in support of a great cause.”

• Twice Daily and Sudden Service gave free medium fountain drinks or coffee to all first responders in uniform or who showed their badge.

While a verbal thanks is appreciated, conve nience stores know the power of providing something tangible to show appreciation for front-line workers. This year during 24/7 Day, participating convenience retailers gave a va riety of products and donations to show their support to first responders.

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

Measom added, “Partners at all levels are essential in supporting those needs, in addi tion to building resiliency before a disaster strikes. … These companies understand the power of their place in the community and the tremendous impact they can have when people need help the most.”

THE WHAT

• Chains in the GPM Investments portfolio handed out free fountain or coffee drinks to fire, police and EMTs with a valid badge or ID. The company also encouraged com munity members to share real stories and appreciation for hometown heroes on social media using the hashtags #247Day and #conveniencecares.

• Rutter’s gave a meal to any front-line worker or truck driver on both 24/7 Day and July Convenience25. stores know the value of giving back all year long, and many actively highlight and provide offers to different community members making a difference in the everyday lives of their customers and communities. As Felz with TXB put it, “NACS Foundation’s 24/7 Day is part of our larger initiative to ‘Leave ‘em Better.’ We are deeply committed to supporting the commu nities we serve each day.”

How to Get Involved Next Year

• TXB Stores offered first responders, medical professionals, law enforcement, 911 dispatchers and American Red Cross volunteers a free bag of TXB beef jerky and a TXB premium electrolyte one-liter water.

• Yesway gave police, fire, first responders and Red Cross volunteers a free hot or cold beverage, as well as partnering with Keurig Dr Pepper to sell its CORE Water for $1.

Now more than ever, we must come together to support those who work around the clock to take care of our communities. Learn how you can get in volved and partner with the NACS Foundation’s 24/7 Day in 2023 by visiting www.conveniencecares.org/get-involved

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Learn how to drive better results in-store and support your team with fast, data-driven merchandising: Combat shortageslabor timeROIDemonstratewithreal-insights Attending the NACS Show Connect with our team in-person Retail has changed. Your merchandising should change too. Scale to your needs Mobilize in days, not weeks

NACS SEPTEMBER 2022 111 Sweet and salty treats are cozying up to mealtime, giving sales a boost.

BY TERRI ALLAN

Africa/ShutterstockNewImages;Dazeley/GettyPeterImages;TShum/Getty

Greg Hetfield, director of sales, conve nience, at Hormel Foods, the marketer of Planters nuts, also noted that early 2022 sales trends in the channel were cause for opti mism. “We’re seeing the positive trends from the snack category throughout 2021 continue into 2022 and expect that to keep going so that this will be another positive year in the convenience channel,” he said.

Indeed, according to CSX data, monthly sales for salty snacks, sweet snacks, candy

Craveable Flavors

Purchasing trends for salty snacks, packaged sweet snacks, candy and alternative snacks were largely favorable for the first half of 2022, they reported, as store traffic continued to rebuild toward pre-pandemic levels. At Rutter’s, snack foods are “off to a great start,” noted Joseph Bortner, center-store category manager, at mid-year. “We’re seeing nearly all categories perform well, both in units and dollars, versus the previous year,” with the highest growth contributions coming from candy, sweet snacks and salty snacks. Improved store traffic is helping to drive the gains, said Bortner, adding, “We’re seeing huge rebounds for some categories that were hurt by the pandemic,” including gum, mints and protein bars.

Africa/ShutterstockNewImages;Hagiwara/GettyBrian

The brands with the best in-stock positions are reaping the benefits.”

35% stated innovativethatflavorsaremostlikelytoinfluencewhattheyselect.

44% said trying new snack flavors led them to try more foods with those same flavors. 58% of 18-34 year-olds have eaten more foods featuring a flavor they had initially experienced in a snack. 59% select innovative flavor andincludingmostcombinationsoften,sweetsalty,spicyandsweetandtangyandsalty.

42% would choose flavor combinations such as sweet and spicy, or tangy and salty over familiar, regional flavors (21%), texture (21%) andflavorsinternational(15%).

Source: Frito-Lay 2022 Summer Snack Index; www.fritolay.com/snack-index

The Frito-Lay 2022 Summer Snack Index uncovered how Americans view snacking.

espite inflationary and supply-chain challenges, convenience store operators and suppliers are cautiously optimistic that the 2021 recov ery in snack food sales will continue this year.

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A new year, opportunities.tremendousoffering With a full line-up of programming in 2023, NACS has something for everyone. convenience.org/events Signature Event NACS Show October 3-6, 2023 Atlanta, GlobalGA NACS SummitConvenienceAsia February 28-March 2, 2023 Bangkok, Thailand NACS SummitConvenienceEurope May 30-June 1, 2023 Dublin, RelationsGovernmentIreland NACS Day on the Hill March 7-8, Washington,2023DC NACS In Store Throughout 2023 Leadership NACS Leadership Forum February 8-10, 2023 Miami Beach, FL NACS Leadership for Success April 30-May 5, 2023 Richmond, VA NACS Financial Leadership Program* July 16-21, 2023 The Wharton School University of Pennsylvania Philadelphia, PA Endowed by: Cash Depot NACS Marketing Leadership Program* July 23-28, 2023 Kellogg School of Management Northwestern University Evanston, IL Endowed by: Keurig Dr Pepper, Nielsen NACS Executive Leadership Program* August 2023 Dyson EndowedIthaca,CornellSchoolUniversityNYby:Reynolds NACS Innovation Leadership Program* November 5-10, 2023 MIT Sloan School of Management Cambridge, MA Supported by: Gilbarco, Mondelez, Shell NACS Women’s Leadership Program* November 2023 Yale School of Management New Haven, CT Endowed by: Altria, Frito Lay Staff | Operations NACS Human Resources Forum March 20-22, 2023 Savannah, IndustryGA Insights & Data NACS State of the Industry Summit April 18-20, 2023 DFW Airport, TX *PLAN NOW! Achieve the Master of EducationthecompletingdesignationConvenienceby3of5Executiveprograms.

In tough economic times, consumers seek out little, inexpensive ways to treat themselves.”

THE RISE OF ‘SNEALING’

114 SEPTEMBER 2022 convenience.org Imagesstudiocasper/GettyImages;/Getty and alternative snacks for the first quarter of the year were all generally higher than the comparable period in 2021, positioning the categories to capitalize on last year’s rebound.

In 2021, average per store, per month sales for all four categories surged at double-digit rates compared with 2020, according to the NACS State of the Industry Report of 2021 Data. “Center-store categories thrived in 2021 as a result of more shoppers’ back-to-normal routines and life getting back to normal compared to 2020,” explained Jayme Gough, NACS research manager. While some pack aged sweet snack subcategories that rely on strong morning traffic remained subdued, most snack products thrived, she said, including meat snacks, bagged candy and all salty snacks subcategories. Alternative snacks—which include health and energy bars, as well as meat snacks—“significantly outperformed monthly sales of both 2020 and 2019,” Gough noted.

In addition to recovery from the pandem ic, snacks in c-stores are benefiting from several underlying consumer trends. For starters, snacking now rivals mealtime consumption in popularity. According to Hetfield, “consumers’ affinity for ‘snealing,’ or eating snacks as meals, already trending pre-pandemic, has continued to acceler ate.” Tina Lambert, vice president, head of marketing, center of excellence at Hostess Brands, added, “Morning snacking is on fire. Today, more people are snacking their way through the morning instead of sitting down for what’s thought of as a traditional breakfast.” As a result, portable, grab-andgo snacking options that require little to no preparation are growing in demand. Trendy flavors are also contributing to increased snack food sales. At Basecamp Wilson, a full-service c-store and restaurant in Wilson, Wyoming, Mike Patton, compli ance manager, remarked that when it comes to salty snacks, “we’re seeing good trends for bold and spicy flavors, particularly among our Hispanic customers.” Younger consum ers also prefer bold and spicy flavors, accord ing to Kent Montgomery, head of industry relations at PepsiCo, parent of Frito-Lay, marketer of the Doritos and Lay’s brands. In addition, regional and international flavors continue to grow within the salty snacks category, Gough said, pointing to spices like Old Bay in the Maryland area and tajin, a chili-lime seasoning invented in Mexico and popularized in the U.S. more recently. While many snacks are considered in dulgent, healthier options also have their place. Gough noted that while the pandemic drove many consumers to comfort foods, others were inspired to eat healthier. “There continues to be a lot of buzz around healthy snack items,” she said, “whether that’s due to diets like paleo, keto, vegan or lifestyle choices and preferences.” Hetfield added that protein-based snacks, such as nuts, “are also trending up in today’s market.”

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ImagesBurrell/GettyMichaelImages;Tarasenko/GettyInna

INNOVATION FILLS VOID

Consumers are always on the lookout to try something new, but they still like their stand by snacks. “New products and innovation play an integral part in driving excitement and engagement in any particular category,” remarked Rutter’s Bortner. “You win by maximizing your core, all the while intro ducing a few new consumers into a category through new products and innovation.” Basecamp Wilson’s Patton said that although new flavors and brands often garner excite ment at launch, “after a while, people always go back to SNICKERS. It’s the classics that have staying power.” For that reason, Gough recommended that category managers strike a balance between top sellers and new prod ucts. Among the new snack foods recently introduced in c-stores are Lay’s Layers Sour Cream and Onion, Doritos 3D Crunch Chili Cheese Nacho, Planters Sweet & Spicy dry roasted peanuts and caffeinated Hostess Boost Jumbo Donettes. For Rutter’s, new snack items are helping to fill the void left by established brands facing supply challenges. “The brands with the best in-stock positions are reaping the benefits,” Bortner said. He and other convenience retailers noted that in addition to supply issues, rising inflation is a concern in 2022. “With gas prices so high, we’re seeing a slow down in snack food sales,” remarked Tracy Auger, owner of River Valley Convenience in Houston, Minnesota. Gough agreed that higher prices for fuel and other goods could indeed negatively impact snack sales. “Snacks are ‘nice to have’ purchases versus ‘need to have,’” she explained. While suppliers concede that the current economic conditions are challenging, snack items are among the goods consumers are loathe to part with when cutting back, they said. “As shoppers continue to prioritize ways to cut costs, especially on discretionary spending, they’re being more diligent in trip planning,” Montgomery noted. “However, salty snacks are still at the forefront of their shopping lists, especially at convenience stores.” Lambert, meanwhile, said packaged sweet snacks provide comfort to consumers during troubling times. “Research shows that during times of uncertainty and stress, con sumers turn to brands they know and trust,” she remarked. Moreover, “in tough economic Morning snacking is on fire.”

for dayparts and trip missions, the supplier added. Afternoon c-store trips, for example, are often driven by demand for snacks and softTodrinks.thatpoint, bundling snack items with other in-store purchases—whether it’s chips with a deli sandwich, breakfast pastry with coffee, or candy with packaged beverag es—can go a long way in growing sales of the products and driving up basket ring. “Snacks aren’t your typical big profit center, such as fuel or prepared foods,” remarked Gough. “But they do allow stores to offer innovation and fun through new flavors and packages. They help to raise the incremental basket.” By bundling with other items, snacks can help enhance “the profit generators” of those other categories, she said.

Rutter’s is already on board with that strategy. Bortner sees opportunity in finding “more creative ways to deliver value through bundling offers of complementary goods and new ways to take brands consumers know and love and twist into new offerings.” Efforts like that can help minimize the sting from current supply-chain and inflationary chal lenges and keep last year’s momentum behind snack foods going.

times, consumers seek out little, inexpensive ways to treat themselves,” the Hostess ex ecutive continued. “Sweet snacks are seen as a small affordable indul gence by 63% of consumers.”

Imagessanatgen/GettyImages;Dazeley/GettyPeter

C-store efforts to further boost sales of snacks range from benign to assertive. Patton said that at Basecamp Wilson, snacks “sell themselves. If someone wants a candy bar, they’re going to come in and buy a candy bar.” At River Valley Convenience, Auger reported, “Displays on the counter definitely help push sales.” And at Rutter’s, Bortner pointed to big success in engaging team members with different incentives and contests. Coupled with queue merchan dising, the incentive programs typically result in 300% sales growth on featured brands, he said. PepsiCo’s Mont gomery recommended that retailers consider targeted instore messaging and tactical merchandising to further drive sales of salty snacks. “Use storeheinsmessaging,”occasion-specificsuchastie-tofootballtailgating,suggested.Andoptimizeanddisplaylayouts

You win by maximizing your core, all the while introducing a few new consumers into a category through new products and innovation.”

TARGETED, MERCHANDISINGTACTICAL

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Terri Allan is a New Jerseybased freelance writer. She can be reached at terri4beer@aol.com and on Twitter at @terriallan.

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BYleafywithtobacco—startingmoistalternativeuniquetosmokelessthehumblegreen.SARACOUNIHAN

Every good story starts at the beginning, and the story of Black Buffalo starts with edible leafy greens (think kale, collard greens, or cabbage)—yes, the same kind you chop up for a salad or throw into your smoothie. Leafy greens are not the typical start to most stories, and certainly not a typical start to a moist smokeless tobacco (MST) alternative product, but that edible leafy green is what makes Black Buffalo’s origins so unique, and its products a standout in an increasingly crowded category.

120 SEPTEMBER 2022 convenience.org Images2630ben/Getty Black Buffalo offers a

Mark Hanson, co-founder of Black Buffalo, had a dilemma. Like many adult tobacco consumers, he found he was dipping MST too often, and he wanted to quit. He surveyed the market to find an alternative product to the hard stuff and, ultimately, found the industry to be woefully lacking in both quality and variety, so he decided to make his own alternative to MST.

After five years and over 20,000 of hours of research and development, Han son, with the help of his co-founder Jeffery David, finally landed on a variety of edible leaves in the cabbage family, and this plant species, when grown, har vested and processed according to Black Buffalo’s methods, behaves just like tobacco across every important dimension—texture, aroma, color, flavor—except Black Buffalo’s leaves have no naturally occurring nicotine or other unwanted compounds specific to the tobacco plant.

Capturing the Herd

LET’S START AT THE BEGINNING

“We have replicated the very best of what people love about traditional dip, which is the flavor, the aroma, the pack, the nicotine, and we’ve eliminated what people don’t like about it, which is the tobacco leaf material. Black Buffalo is offering a better product without sacrificing the ritual or experience of tradi tional products,” said Hanson.

Average sales for other tobacco products in c-stores grew 7.2% per store, per month last year, and smokeless tobacco increased 8.5% in gross profit over the previous year, according to NACS State of the Industry data. Why did Black Buffalo wait to tap into this lucrative market? Hanson explains the biggest reason was be cause, before early 2022, Black Buffalo simply wasn’t ready for convenience.

“MST is a crowded category that seemingly differentiates itself just by brand alone, so a new brand was important, but we also knew product quality was important. Product dif ferentiation in this market is exceptionally im portant, and that’s where we differ,” said Matt Hanson, chief growth officer, Black Buffalo. Black Buffalo’s green leaves start by being flue-cured, which means they are dehydrated under humidity and forced air, which turns the leaves from green into the same gold en color as a dehydrated tobacco leaf. The flue-cured leaf has sensory properties that are amazingly close to those of a dehydrated tobacco leaf, said Hanson. “Looks like it, smells like it, handles like it, even tastes like it, and importantly, our leaves are not fire-cured,” he said.

Fire-curing is a method that many other to bacco manufacturers use to create their MST products. This method imparts a dark brown color and campfire aroma to the tobacco; however, it can introduce unwanted constitu ents to the leaves. Black Buffalo achieves the same look and aroma as traditional tobacco by adding food-safe color and flavor, and then adds to its products pharmaceutical-grade, tobacco-derived nicotine.

NACS SEPTEMBER 2022 121

“There are dozens, if not hundreds, of deci sions you have to make across wholesale and re tail to execute properly, and we were only going to launch into c-stores when we were ready,” he said. “We realized that, if we didn’t measure up to expectations for supply chain, logistics, demand forecasting and sophisticated go-tomarket strategies, we may not get in again.”

So Black Buffalo waited for the oppor tune moment to enter the convenience store industry. That moment was the 2021 NACS Show, and Black Buffalo signed its first c-store partner—Yesway/Allsup’s, which began selling Black Buffalo’s products in January 2022.

FEEDING THE ‘HERD’ Harder said that, in addition to meeting the Black Buffalo team, the company’s products also drew him in.

“A high-quality, unique product, with unrivaled taste and texture, an appealing packaging and product messaging, as well as an intriguing brand story and an already loyal This article is brought to you by Black Buffalo Inc., a NACS Hunter Club member.

COMING AT YOU, C-STORES Black Buffalo was founded in 2015, but the company’s foray into the convenience store industry didn’t happen until January 2022.

Prior to attending last year’s NACS Show, Kevin Harder, a senior category manager at Yesway/Allsup’s, had extra space in the company’s OTP sets, and he wanted to fill the void with a “tobacco/nicotine alterna tive product that wasn’t just another white pouch,” he explained. “While doing research, I came across Black Buffalo and saw that they only had online distribution but was truly intrigued by their story and the unique appeal of their product,” he said. “I was even more impressed after meeting the Black Buffalo team in person at the NACS Show and witnessing their passion for their product.” That in-person introduction between Black Buffalo and Yesway/Allsup’s is what Hanson says is one of the most important benefits of attending the NACS Show.

“The NACS Show is really important for that brand expression because people get to see what the products are all about,” said Han son. “[Brands] get to shake hands with retail ers, wholesalers, brokers and people who are decision makers that can’t be done over Zoom, can’t be done over a phone call, certainly can’t be done over e-mail.”

Sara Counihan is contributing editor of NACS Magazine and NACS Daily. She can be reached at convenience.org.scounihan@

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The Pritzker Organization was an owner of the company formerly known as Conwood, a smokeless tobacco manufactur er with brands including Grizzly and Kodiak (and now known as The American Snuff Company). Conwood was sold to Reynolds American Inc. in 2006 for a multibillion-dollar priceHansontag. said, “To have The Pritzker Organi zation back us as our lead investor was a very important marker for us. They have an excel lent reputation for investing in best-in-class companies with strong management teams and rapid growth prospects.”

customer base combined with a passionate team is a recipe for success,” he said. That loyal customer base is affectionate ly called “the Herd,” and Harder said the feedback from Yesway/Allsup’s customers has been extremely positive.

“You don’t need to give up what you love about dip,” Hanson said. “You can have the best of all worlds just by starting with a different leaf and by using different methods of Hansonprocessing.”said Black Buffalo’s products sit between two different areas within the other tobacco products category: MST and modern oral nicotine, the latter of which consists primarily of white pouches filled with pow dered, nicotine-containing mixtures.

Although Black Buffalo’s core demograph ic is the long-cut MST buyer, the company’s MST pouches “sell like crazy, too,” according to Hanson, and their sales are nearing half of Black Buffalo’s business.

“We are solidly anchored in the soil that is the millions of consumers who love MST as a category, and yet we are in many ways a modern oral nicotine company because our delivery mechanism for nicotine is not the tobacco leaf,” he explained.

Hanson said the company is capturing a substantial demographic of people who have attempted to switch from using traditional MST products and tried modern oral nico tine as a potential off-ramp but weren’t suc cessful due to factors such as lack of flavor, no long-cut option or an inability to replicate the experience and ritual of traditional to bacco—a nod back to why Black Buffalo was founded.“Ourstores service a lot of smaller towns with adult smokeless tobacco customers looking for alternatives to their current products,” said Harder. “Black Buffalo provides the premium look and feel, the pack and the taste of traditional smokeless tobac co just without the actual tobacco leaf, and our customers are taking notice.”

“Our store employees regularly share inter esting stories of customers who have enjoyed the products so much that they are becoming loyal members of the Black Buffalo ‘Herd,’” saidHansonHarder.said what really sets Black Buffalo apart from other smokeless tobacco alterna tive products is its ability to replicate the longcut MST “Long-cutexperience.isnaked to the world. It reveals all of its flaws … and it’s very difficult to replicate,” said Hanson. “You’ve got dozens of different characteristics that make up a tin of long-cut moist smokeless tobacco, and we have figured out a way to replicate that through a whole variety of proprietary processes.”

IT’S ALL THE SAME

What Black Buffalo prides itself most on is its ability to replicate the ritual and experi ence of MST products.

LOOKING FORWARD The future appears bright for Black Buffalo. During its last capital funding round, The Pritzker Organization joined as Black Buffalo’s leadThisinvestor.isbignews.

“Ritual and tradition for us are extremely important, and that’s what we’re trying to deliver to the consumer,” Hanson said.

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LoyaltyLeveraging

studio/ShutterstockWAYHOME

Food and beverages play key roles in c-store customer loyalty programs.

BY TERRI ALLAN F or last year’s Spinxmas pro motion, Spinx convenience stores offered members of its loyalty program one free candy item every week during December. The effort, supported by confectionery vendors, was so successful that according to Hayley Thrift, director of marketing and advertising, the chain’s Spinx Xtras loyalty initiative added 4,000 new members during the month. Moreover, the year-end loyalty reward promotion drove store traffic with many members purchasing items like bottled water and coffee when they came in for their free treats. “The promotion really resonat ed,” said Thrift, “and it didn’t take a lot on our end to implement.” A similar program will be offered later this year at the South Carolina-based chain, she added. Similarly, at Onvo travel plazas in Pennsylvania and New York a “Free Coffee Friday” feature in February was a big con tributor to enlisting members to the chain’s new Onvo Rewards program while building awareness about its bean-to-cup coffee ma chines. Onvo Rewards, launched in Decem ber in conjunction with the Onvo app, is “the start of a new chapter for us,” said Harman Aulakh, marketing manager. The new re wards program is “more dynamic” than the chain’s previous offer, he noted. “It provides more rewards based on customer shopping habits and preferences,” including frequent buyer clubs for items like coffee, the roller grill and fountain drinks. “Response has been better than expected, especially for the coffee club,” Aulakh said. Like other trade channels, c-stores are finding that customer loyalty programs have become a necessity in the battle to stand out among competitors and retain valued shoppers. Increasingly, consumers expect the programs. According to Newsweek, the average U.S. household is enrolled in 18 different loyalty programs. And as c-store loyalty programs evolve, food and beverages are playing a bigger role than ever.

NACS SEPTEMBER 2022 125

One of the goals of our foodserviceexpandprogramloyaltyasweinistogetfoodintocustomers’mouthsandtokeepthemengagedwiththeprogram.”

With so many c-stores investing in foodser vice today, loyalty programs are the perfect tool to drive awareness and purchases.

126 SEPTEMBER 2022 convenience.org studio/ShutterstockWAYHOME

According to Rourick, the &Rewards program will play “an integral part” in communicat ing with customers about Kum & Go’s new fresh food menu, as well as aiding the chain with knowing “what’s working and what’s the opportunity.” Added Ryan Lindley, vice president, digital technology, at Kum & Go, “One of the goals of our loyalty program as we expand in foodservice is to get food into customers’ mouths and to keep them engaged with the program.” Multiconcept operator GPM Investments also leverages foodservice as part of its fas Rewards program. According to Ruth Ann Lilly, vice president, merchan dising and marketing, members can receive extra savings on items such as pizza, roller grill items, coffee and fountain drinks. Indeed, Stout noted that customer loy alty initiatives can be impactful in getting members to try new food offers. “If you have a customer who purchases exclusively vegetarian items, send them an SMS or push notification to let them know about your new plant-based breakfast sandwich,” she advised. The programs can also provide ex clusive foodservice offers to members, Stout continued. “Loyalty program members are the perfect audience to try new foodservice items before the general public,” she ex plained. “Not only does it offer an exclusive

Discounts and even free food and beverage items are popular inducements of c-store loyalty programs. With 7-Eleven’s 7Rewards program earlier this year, for example, mem bers could purchase any muffin and any size coffee for $2. Under Onvo’s frequent buyer clubs, meanwhile, after customers purchase five coffees, roller products or fountain drinks, they get the sixth item free. While members embrace the opportunity to save and be rewarded, the offers also provide re tailers with higher customer visits and often important data and insights about shopper preferences and buying habits.

INCENTIVES AND BENEFITS

Food and beverage products can also play a role in getting consumers to join loyalty programs in the first place. Kum & Go’s &Re wards program recently added a “welcome bundle” for new registrants, Blaine Rourick, brand marketing manager, reported. The bundle of five items valued up to $10 features a slice of pizza, a bakery item, a piece of fruit, a small coffee and a 16-ounce packaged bev erage. “Sign-up rewards are a tried-and-true way to entice loyalty participation, engage lapsed customers and start to gather infor mation about consumers that you can use to begin the important process of building a 360-degree consumer profile,” remarked Lori Stout, vice president, marketing at Punchh, a loyalty and engagement platform that works with c-stores and restaurant operators.

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Another frequent tactic driving participa tion in c-store loyalty programs is partnering with food and beverage suppliers. “We’re seeing more c-store brands thinking about how they can use vendor funding from CPG partners as a key part of their loyalty pro grams,” said Jeff Hoover, director, c-store data insights, at Paytronix Systems Inc. Onvo, Kum & Go and Spinx have all tapped into these resources. At Onvo, which operates nearly three dozen travel plazas, beverage, candy and baked goods brands have been in corporated into its rewards program, Aulakh said. “When our category managers negoti ate with vendors, there’s often promotional dollars involved,” Kum & Go’s Lindley noted, some of which can be used toward loyalty programming. And taking that support one step further, the chain often tries to offer “bundle promotions with our own products as part of a larger collaboration,” he said.

While Thrift said that Spinx isn’t yet per sonalizing offers to its 45,000 Xtras mem bers, that is a goal of the program. The chain can ascertain “which customers respond to offers for a free bag of M&Ms, for example, versus a free energy drink,” she said. “The data is helping to provide insights into the habits and preferences of our customers.”

RETAILER REWARDS

Given the current environment, Thrift cautioned that any customer loyalty promo tion with food and beverage tie-ins requires retailers to remain flexible. “With so many supply-chain issues these days, when plan ning a promotion, we have to be cognizant of food item availability,” she said. Despite any short-term challenges, conve nience retailers and loyalty program experts see long-term opportunity to gain knowledge about consumers and target their specific needs and preferences. “The more we know about customers, the smarter we can be about marketing to them and helping to grow the business,” noted Hoover. Thrift couldn’t agree more. “Customers expect you to know their names and habits,” said the Spinx executive. “Now, as we’re coming out of the pandemic, it’s even more important. Personalization will separate the winning programs from all others,” she said.

foodservicetomembersprogramLoyaltyaretheperfectaudiencetrynewitemsbeforethegeneralpublic.”

128 SEPTEMBER 2022 convenience.org Terri Allan is a New Jerseybased freelance writer. She can be reached at terri4beer@aol.com and on Twitter at @terriallan.

For consumers, the benefits of using a retail er’s loyalty program include reduced prices and free items. For merchants, the rewards come in the way of data and insights about individual shopper’s purchasing habits and preferences. “We’re using artificial intelli gence to better understand the shopping hab its of our marketable members and to nurture them to drive both trips and baskets,” said GPM’s Lilly. While many other c-stores have yet to fully analyze and act upon the data, the opportunity is vast, particularly when it comes to personalizing offers and incentives for members. “Because loyalty program data tracks preferences, patterns and locations, brands can leverage past buying behaviors to decide which food and beverage items to offer as an incentive,” said Stout. Hoover added that Paytronix, which provides loyalty program software to retailers, is able to create AI-driven recommendation engines from loyalty program data that “are similar to what tech companies like Netflix and Amazon do when they serve up suggestions for retail items or videos.” With the AI trained on historical data, programmers can identify the category from which a customer is most likely to buy next, he explained, as well as under stand what he or she is unlikely to buy. So, if a customer typically purchases gas, coffee and a pack of gum, salty snacks, for example, could be the category suggestion, he said. Personalized messages are even being uti lized in real time at point of sale. Stout notes that the Huck’s convenience chain, via its loyalty app, offers “personalized messaging at the fuel pump” via text messaging or push notifications. “A customer could receive a message to come in now and get 50 cents off a soda or coffee,” she explained.

VIP experience to the program member, but it allows the brand to test new products or menu items to see if they will resonate before making a brand-wide investment.”

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ImagesDustyPixel/Getty

Just as with the iconic Hess toy trucks, unique merchandise offers can trans form c-stores from roadside stops into destinations. For the past three years, Stewart’s has offered its own holiday tree ornaments that have appealed to customer nostalgia. “People have grown up with the Stewart’s brand and want to adorn their holiday trees with ornaments that depict it,” Komorske said. “The ornament usually sells out by mid-December.”

NACS SEPTEMBER 2022 131 ImagesGetty or St. Patrick’s Day this year, Stewart’s Shops unveiled the Shenanigan Shake, a limited-time-onlymint-flavored ad dition to its Refresher line of packaged dairy drinks. “It was wildly popular,” said Erica Komorske, director of public affairs at the convenience store chain, which boasts more than 350 loca tions in New York and Vermont. “People went crazy for it.” In fact, thanks to the strong response to Stewart’s first-ever holiday-themed Refresher, it likely won’t be the chain’s last, Komorske revealed. Despite the challenges of space, logis tics and most recently supply, c-stores are embracing the opportunity to drive im pulse sales through seasonal and holiday merchandising efforts. “We typically see an 8 to 10% lift in candy sales while selling seasonal items,” remarked Michele True love, vice president of operations at High’s convenience stores in the Mid-Atlantic, pointing to items like Reese’s Eggs for Easter and Reese’s Trees for Christmas. And when it comes to tying general mer chandise into seasonal promotions, such as holiday gifts and stocking stuffers, the chain often experiences gains of more than 10%, she said.

It’s not just stores that benefit from holiday merchandising. According to Ruth Ann Lilly, vice president of merchandis ing and marketing at GPM Investments, which operates c-stores in more than 30 states and Washington, D.C., “seasonal merchandising makes it easier for our customers who want to purchase gifts to celebrate holidays. C-stores offer the last-minute ease of picking up a seasonal offering without the hassle of going to a mall or department store.”

At Country Corner Grocery & Deli in Eastsound, Washington, manager Liz Longworth said that while her shop ben efits from customer impulse buys around holidays like Christmas, Halloween and Valentine’s Day, the merchandising “is fun for our staff, which is so important these days. It can be special to see our crew get excited about something, do something new and to work as a team.”

Holiday and seasonal merchandising drive impulse sales and improve store traffic.

BY TERRI ALLAN

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According to Carole Gibbons, retail buyer and manager, The Thumb also celebrates Christmas, Thanksgiving, Halloween, Inde pendence Day, Father’s Day, Mother’s Day and Valentine’s Day with elaborate displays. “We incorporate as much everyday merchandise as possible” into the displays, Gibbons noted, and promote the holidays on social media.

The Thumb convenience store in Scotts dale, Arizona, meanwhile, pulls out all the stops when it comes to holiday and seasonal merchandising. A display in the spring, for example, featured a large truck adorned with stuffed and ceramic bunnies, silk flowers and other items designed to fill Easter baskets.

The Thumb includes “as much everyday merchandise as possible” in its holiday displays, says Carole Gibbons, retail buyer and manager.

quarters.”previousofthanbetendspurchasesonspendingquarterFourth-impulsetohigherthatthe

Multiunit operators tend to focus on more limited queues. For High’s, it’s seasonal items like stocking stuffers, Hostess snack cakes and its own Heritage eggnog and eggnog ice cream, which Truelove described as having a “cult following.” At GPM, select stores sold Valentine’s Day novelties earlier this year, such as glasses, jewelry, plush toys, key chains and cards. Easter, Mother’s Day and Christ mas additionally receive support via special merchandise, Lilly said. “We also offer beach wear and fishing gear during the summer and winter clothing during the colder months,” she added.

Holiday and seasonal décor—ranging from simple to extravagant—helps retailers set the tone for the periodic merchandising programs. Stewart’s Shops dresses up its windows with decorations like hearts for Valentine’s Day and painted artwork from the stores’ own staff for the winter holidays. Last year’s ornaments were merchandised as part of holiday displays just inside the front doors, Komorske said, so that planned purchases were supplemented with impulse buys. “Peo ple may have seen the ornaments promoted on social media and came to the store to purchase,” she explained. “And once they were there, they also picked up some milk, ice cream or a sandwich.”

Country Corner gets decked out for Christ mas, Halloween and Valentine’s Day. In De cember, garland and icicles adorn the store’s windows, while a holiday tree is merchan dised with giftware items including coloring books, crayons, stuffed animals and winter wear. “We decorate like crazy for Halloween with creepy things like spiders and skele tons,” Longworth said. For Valentine’s Day this year, the store featured a large display at the counter that merchandised items like red wine and roses. “We tried to cater to the con struction worker coming into the store after work,” she explained.

A Christmastime display at The Thumb c-store in Scottsdale, Arizona, showcases seasonal merchandise.

DÉCOR AND DISPLAYS

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FOODSERVICE TIE-INS

There’s no better way to drive margins around holiday-themed merchandising than with foodservice tie-ins. Specialty coffees such as pumpkin spice flavors and pumpkin lattes are featured at Stewart’s and Country Corner. High’s promotes a mint chocolate chip milkshake around St. Patrick’s Day, and “during Lent, we have an increased seafood offering,” Truelove said. The Thumb’s exten sive foodservice features include an in-house bakery and dine-in barbecue restaurant, al lowing for a variety of seasonal treats. “On the Fourth of July, we do burgers and hotdogs,” Gibbons remarked, “and on Thanksgiving, we roastForturkeys.”chainsthat offer LTO food and bev erage items, consistency across locations is imperative. “You want to be sure that the pumpkin latte that a customer purchases at his local store is the same one he gets when traveling,” said David Karel, chief marketing officer at Zenput, a technology firm that pro vides a platform to help retailers execute op erational programs and whose clients include GPM, Timewise, Stinker Stores and MAPCO. With Zenput technology, store managers receive detailed descriptions, menus and photos via tablets to help undertake seasonal programming. With any type of chainwide holiday or seasonal promotion, good com munication is vital. “Don’t take anything for granted,” advised Tom Hart, industry special ist, convenience, at Zenput. He recommends operations executives “over communicate. Lay out the plans and provide as many visuals as Goodpossible.”planning is also critical. According to Max Wunderle, chief commercial officer at Toysmith, marketer of impulse toys, conve nience retailers should be reviewing and fi nalizing holiday offers by mid-summer. When placing those orders, he advised retailers, “Don’t be afraid of high price points,” noting that fourth-quarter spending on impulse purchases tends to be higher than that of the previous quarters. “Don’t leave money on the table.” Proper forecasting is also necessary, Wunderle added. “Don’t commit to buying in heavy on merchandise you can’t sell in Janu ary,” he High’ssaid.Truelove agreed that planning and timing are big factors when it comes to seasonal programing. “We have a very short window to sell these items,” she said. “Trying to make sure we get the items in early and they’re out on the sales floor has become more challenging due to the pandemic.” For High’s and other c-stores, selling through the merchandise is always the goal. When they fall short, discounting or repurposing may be necessary. Longworth will sometimes donate overstock items to local daycare facilities. With the success of seasonal and holiday merchandising on the rise, convenience retailers see expanded opportunities ahead. Lilly sees potential in promotions tied to Thanksgiving and back-to-school shopping, occasions rarely highlighted by c-stores. “Customers seem to be looking for more reasons to celebrate,” added Truelove. “It seems like pumpkin spice season starts earlier and earlier every year. We see opportunity in taking advantage of extended seasons.” 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. 10% seasonalsellingitems.”

lift in candy sales while

A savvy social media strategy can make a large impact for small, independent retailers.

136 SEPTEMBER 2022 convenience.org Imagesoatawa/Getty BIG

SMALL BUSINESS, I

V ICE

For many small-business owners, the idea of running social media accounts is daunting and an added burden to an already full plate. But a social media presence is worth it, according to Ariel Norwood, senior director of marketing engagement at Bounteous, a digital marketing agency that counts Wawa as a client. More than 60% of consumers believe brands need a strong social presence to succeed in the long run, and nearly 80% are willing to make a purchase after having a positive experience on social, according to data from Bounteous’ partner Sprout Social.

ndependent convenience store retailers wear multiple hats and are constantly juggling roles—they’re the operations manager, the human resources director, marketing coordinator, lead merchan diser … oh, and somehow, they need to fit an effective social media strategy into the mix.

NACS SEPTEMBER 2022 137

GIVE US YOUR ONE SOCIAL MEDIA TIP.

Mike Flebotte, partner with The Busi ness Accelerator Team, a consultancy providing marketing, strategy and business consulting to the convenience industry, agreed. “Most customers are having conver sations about [a retailer’s] brand whether they’re following them or not, and I think it’s important for smaller retailers especially to be part of that narrative,” said Flebotte.

SMALL FOOTPRINT, BIG IMPACT

138 SEPTEMBER 2022 convenience.org “A good social media presence is a grow ing consumer expectation,” said Norwood. “Social is one of the easiest and fastest ways to connect with consumers one on one, en abling direct, immediate access to a brand’s loyalist fans.”

For Lisa Dell’Alba, president and CEO, Square One Markets, being on social media is important for her company’s brand and also for forging a deeper connection with her“It’scustomers.important to be at the table with social media to bring about brand awareness but also to communicate with folks,” she said. “I think social media really exposes the human side of what we do. It’s not profes sional advertising—it’s saying, ‘hey we’re people, and we’re connecting to the people we serve.’”

So how can a small convenience retailer make a big impact on social media? Flebotte said that having a large social media presence doesn’t require a robust social media team. One person can be sufficient, he“It’ssaid.more about [the] consistency … of pushing messages about the brand’s role in its community and what kinds of values

Lisa Dell’Alba “For a small business, you can’t be afraid to start. I think you have to be willing to take the risk. It’s a conversation, and it’s about being human and really con necting with people in a social environment.” Mike Flebotte “It’s acknowledging that your brand on social media isn’t just what you say it is. It’s also what your custom ers contribute to it.” Ariel Norwood “Give yourself time! Plan ahead, and align your content calendar with key campaigns and relevant cultural moments.” Anthony Perrine “I mix up my strategies on the different social media platforms. For anybody using social media you have to know your audience.” Babir Sultan “Don’t be afraid. … Just get started some where. Don’t worry about the views and engagement. … Just keep showing up every day, and you have to enjoy it.”

P s

Just about every brand has a voice on social media, including your competitors, and consumers are watching to see how you stack up. Flebotte said that consumers are comparing small retailers to bigger ones based on an evolving expectation of what a social media presence should offer.

“Instead of trying to be so edgy and get everybody talking, I can accomplish the same thing by being a little bit tamer.”

FlebotteMike

“Most customers are having conversations about [a retailer’s] brand themthey’rewhetherfollowingornot.”

THE COMPETITION IS FIERCE

WHAT ABOUT TIKTOK?

Perrine’s strategy on social media has evolved over the years. He admits that in the beginning, he cared most about getting followers and engagement.

Because Sultan sees value in TikTok, he hired a freelancer to take on the job of editing videos. He found the editor through the website The Editors Connection. “It’s been a welcome change,” he said. “Between running operations and doing videos, it’s quite a bit of work.”

and promotions they’re offering to their customers.”AnthonyPerrine, owner of Lou Perrine’s Gas and Groceries, which has two stores in Kenosha, Wisconsin, agrees that consistency is key.“To have a successful social media cam paign as a little guy you need content,” he said. “You have to just do it, do it, do it and be OK with a lot of posts or tweets or pictures that don’t get a lot of likes, but you’re con stantly staying in front of somebody.”

“For smaller retailers, [social media] can be a very cost-effective tool that helps them compete with larger brands from the perspective of sharing voice,” he said.

Lou Perrine’s Gas and Groceries also has a TikTok account, and Perrine admits it’s the account the business has the most fun on. Perrine said he typically is the one to come up with an idea for a video and then his employees will film it, though

your brand can step in and do something different or Dell’Alba,better.”whose company has 12 locations in Pennsylvania, said she also looks to the competition for inspiration.

“A lot of it is seeing what they do, and if they’re not a direct competitor of yours, I think it’s OK to emulate them and look at the way they go about it,” she said.

Three years ago, Perrine decided he want ed his brand to have a different image—one that is more family friendly and welcoming.

“I was able to gain a lot of traction by being edgy and risqué, and I realized that, sure, I got a lot of followers …, but I was also offending a lot of people,” he said. “I was creating a customer base of people that were edgy and liking it, but if they’re edgy and like it on social, they’re edgy, and they act a different way inside my store.”

“Instead of trying to be so edgy and get ev erybody talking, I can accomplish the same thing by being a little bit tamer,” he said.

According to Norwood, the brands that make the largest waves on social media develop content that reflects who they are and fearlessly speaks to their audience, and small businesses shouldn’t be afraid to look at the “Havecompetition.aworking knowledge of what your competitors are doing in social media,” she advises. “Identify what you love about their work, what you don’t and where you think

FavTrip, which has three locations in the Kansas City, Missouri, area, has 46,000 followers on TikTok after about a year on the platform. FavTrip’s president, Babir Sultan, said the original intent of joining TikTok was to build brand awareness, and it’s paid off, but it can be time consuming.

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Dell’AlbaLisa

“I think social media really exposes the human side of what we do.”

AnthonyPerrine

NACS SEPTEMBER 2022 141

be creative each day for 30 to 45 minutes,” heDell’Albasaid. asked one of her employees if he would post to social media for the company and paid him per post. She said she created the position around the individual.

GETTING IT DONE

“If you’re going do a video worthwhile, it’s going to take you a good 30 minutes by the time you do the music, edit it … versus a Tweet, Facebook post or Instagram, which takes two seconds,” he said.

“Sometimes it’s about finding the right person to do it,” she said. “There’s a lot of people out there that really understand the pulse of the brand and are the ones having the conversations with customers. Sometimes it’s easier to trust them to do it.”

Sultan concurred. “With TikTok, as soon as I allowed our employees to start engaging or creating content, that was a big relief for me. I should have done that a lot sooner,” he said.

Sara Counihan is contributing editor of NACS Magazine and NACS Daily. She can be reached at convenience.org.scounihan@

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his employees do come to him with ideas, which he will either green light or red light. However, like Sultan, Perrine also said creating TikToks is time-consuming.

Perrine said that each Sunday, he would list what he wanted to post on social media for the week ahead, and he would preload the corresponding images into his phone. Then he would post to his accounts throughout the week based off his schedule. “You’re literally spending 15 minutes of your week getting the content needed, knowing what you’re going to post about and then just spending a couple minutes a day posting instead of trying to do it all or Learn more at addsys.com 800-922-0972

This advertorial-style guide of services and packaging appears monthly and is an information-packed tour of ideas and approaches that can change how consumers view your store or choose your brand. It spotlights the newest thinking in convenience and fuel retailing and gives you an advance look at ways of staying in front of industry trends. Products are categorized the same way we organize the Cool New Products Preview Room at the NACS Show each year in October— New Design, New to the Industry, New Flavors, Health & Wellness, Green (EcoFriendly), New Services and New Technology Products are considered “new” this year if they’ve been introduced since October 2021. The products featured here also can be seen in the Cool New Products Discovery Center at www.convenience.org/coolnewproducts

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Cool New Products Guide

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W hen you stoc k up on DJEE P lighters, you’ll benefit from increased consumer rea ch and a hig her price point as shop p ers trade up. Light up your sales with the long-lasting quality your shoppers are looking for. Learn more at djeep.com

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REQUEST 50 F REE SAMPLES. New tobacco- free singles a re individu ally sealed fresh i nside a hard plastic shell. Product delivers P.O.S. ready o ut of the box, no OTP. Ea ch skew holds 25 high-margin singles and come in two flavors, Original a nd Mango (Menthol coming soon). NO HEMP AROMA WHEN PACKAGED OR SMOKED. Does not co ntain more than 0.3% TH C by weight, i s 2018 Farm Bill compliant. Visit CBD Singlz.com/N ACS or call (949) 468-711 0. Copyright 2022, 1606 C orporation. This product h as not been reviewed or approved f or sale by th e U.S. FDA and it is illega l to sell this product under the laws of some state s

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M asonWays keeps you and y o ur family saf e when refueling at the p ump with our new A menity Refu s e Bin. Availa b le with a Pu rell ® Sanitizing Ge l Dispenser a nd Glove Dispenser to protect customers from g e r ms. Towel Dis penser comes with a three-gallon windshield fl uid bucket t hat attach es on one or two sides of th e unit. S e p arate forty-f ive-gallon i nner trash li ner is removable for easy cleaning. L i ner has s pecial engineered bag holder to grip bag tightly an d prevent trash bag colla p ses. Unit i s UPS shipp a ble and avai lable in col ors. Towel Dispenser Wate r Bucket so l d separately. DNEWESIGN

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Designed for customers looking for a rich, up-scale Italian styling for maximum visual appeal, that will drive product sales. Available as a floor standing model with base, or as a drop-in countertop installation. The new Italian Glass heated merchandiser elegantly displays hot foods, including deli and prepared foods. Electronic temperature and optional humidity controls, help food stay fresh longer, which means less waste and maximum profits. Also available in refrigerated & non-refrigerated models, and designed for seamless line-up applications. Visit us at www.federalind.com

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-Cords available in a variety of colors -USB 2.0 compatible port -Heavy duty cord stretches up to 8 feet -Master case comes prepacked with merchandise in an easy to assemble floor display Cord stretches up to 8 feet!

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Rubicon’s sma r t waste and recycling man agement prod ucts help retailers increa se recycling and diversion rates at every step of the s upply chain . Enhanced vi sibility into your operatio ns means deeper insight into your wa ste streams, informed de cision making, and i ncreasingly efficient act i on taken acros s locations. A cloud-ba sed p latform enables you to c ut costs by improving process efficiencies, drive transparency through data v isibility, a nd achieve su stainability goals. Visi t Rubicon.com or email h e llo@rubicon.com to get sta rted. GREEN

Krispy Krunchy® now has all dayparts covered! Our NEW Sunrise Breakfast menu allows operators to build a professional turnkey program with the support of our Krispy Krunchy ® field team members. Our aim is to help reach additional consumers with easy-to-serve products that can be oven-baked or merchandised in retail cold space. Breakfast items include breakfast sandwiches with egg, cheese, and your choice of sausage , bac on, or Canadian-st yle bac on, breakfas t Crispit os ® , empanadas, blueberry-flavored biscuits, & honey biscuits. NEW FLAVORS

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Krispy Krunchy Chicken ® Sunrise Breakf ast Sandwiches

At BIC, we’ve been committed to sustainable productio n at our factories for years. And now we’re sparkin g change once again—with BIC Ecolutions . Our new l i g hters are made with 55% recycled meta l s, have a 30 % carbon off set by invest i ng in clim ate projects and, like all BI C lighters, are made in factories wit h a mix of renewable energy.

In addition to being more eco-friendly, BIC Ecolutions lighte rs offer the s ame number of lights and th e same quality you know, love and h ave come to exp ect from BIC Lighters. To learn more, visit newrequest.bic .com GREEN

NACS SEPTEMBER 2022 145

High

Tailgate

Grapefruit Flavored Beer Salt Flavors Twang Partners FLNEWAVORS

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A refreshing blend of coconut water and a burst of tropical, refreshing flavor, Vita Coco Coconut Juice is a thirst-quenching, convenient on-the-go boost. Vita Coco Coconut Juice is available in two bold flavors, with a sweet, unexpected taste that demands one more sip. It is gluten-free and non-GMO, and 50 calories for Original with Pulp (per 8 fluid ounces) with 10 grams of sugar, and 80 calories for Mango (per 8 fluid ounces) with 17 grams of sugar. CONTACT: info@vitacoco.com, 855-526-0778.

Great on beer and seltzers! New and exciting flavors from Twang, makers of the Original Beer Salt, since 1986. These flavors are designed to also complement seltzer flavors. Visit Twang. com or visit us to taste and see merchandising options that fit your needs at NACS in the North Hall Booth #438. Need info now? Call 1-800-950-8096. your concept your seltzers!

Cucumber Chili Lime &

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Introducing High Noon’s limited-edition Tailgate with High Noon Pack! Featuring two new flavors - pear and cranberry, exclusively available within the variety pack. In tandem with a national partnership with Barstool Sports, High Noon is connecting with your consumers this Fall by aligning with a key target consumer passion point (College Sports) to High Noon’s key consumption occasion (Day Drinking). Tailgate with High Noon!

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146 SEPTEMBER 2022 convenience.org

T he BIDI ® Stick has a unique sys tem that deliv ers a consistent experie nce in every d raw. Embedde d in the dev i ce is techno l ogy that e ns ures that each drag cons istently provides an experience f o cused on the needs of adult consumers. The BIDI ® Stick has also been awa rded a UL 8 1 39 certification for its battery and electrical systems’ durability, d e monstrating B idi Vapor’s commitment to p roviding a quality vape d evice. Contact us at support@bidivapor.com o r (833) 367-2434; (833) FO R-BIDI. NEW TO INDUSTRYTHE Please contact Peter Olbrys at 630.432.3329 or polbrys@tymail.com about bringing Ty into your locations. Want to carry our product? Squishy Beanies Ty Inc. NEW TO INDUSTRYTHE

Our Self-Serve Order Kiosk is a labor-reducing solution that allows customers to place orders without having to wait for an employee to help. Our kiosks are fully customizable to meet the needs of your location and utilize captivating menu templates, optimized to drive sales of profitable items. The dynamic digital display sets your menu in motion to create an engaging and frictionless experience for the consumer that drives traffic through your store quickly and raises brand awareness in busy environments. For more information, reach out to us at info@olmfoods.com.

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Tamper-Evident for Grab ‘N Go

Introducing Safe Pinch ® 8” x 9” 48o z and 64oz co ntainers, p erfect for sa lads, meals, and more. The flat lid design controls portions and includes low-profile rail s for stable s tacking. The crystal-cle a r lid and b a se provide visibility for high-impact merchandising. Pinching the tamper-evid e nt hinge crea tes an audi b l e snap, qui ckly c onverting it to easy-openin g tabs that r emain highly visible, ale rting store operations a nd consumers to any tamperin g . Safe Pin ch ® packages in corporate a n i ntuitive, con sumer-preferred design wit h no loose tear strips or sharp edges. Request free samples toda y !

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KISS - Caribbean Mango Pineapple Papaya Black Tea Blend Revolution Tea NEW TO INDUSTRYTHE cb dM D In c. cb dM D D elta 9 T H C Gummi es - 2 F l avors including Cherry & Blue Razzberry

NACS SEPTEMBER 2022 147

NEW TO INDUSTRYTHE

NEW C-Store PROFITABLE hemp-derived cbdMD Delta 9 THC Gummies cbd M D h e mp d e rived De l ta 9 T HC Gu mm i es a re t he p erfec t combo of highly effectiv e a nd hig hly a ffo r d a b le. Del ta 9 THC i s very similar to the “raw” THC found in the hemp plant, altered on ly slig ht ly b y th e he at appli ed in t he e x tr a ct i o n process. O ur Del ta 9 THC f o r mu la co mbi ne s he mp-de r i v ed TH C w i th th e po w e r of CBD, a nd e verything else hemp has to o ffer . A s al ways, all cbdM D De l ta 9 p ro d uc ts a re m an uf a ct ure d fr o m Fa r m B i l l com p lia nt US G ro w n H e mp an d o ur 10 mg Del ta 9 TH C G um mie s cont a i n le s s than 0.3% THC on a dry we ig ht b a s i s + 5 0 m g o f C BD p e r gu mm y . Availa b l e in 5 co unt p a ck e ts - 2 fl avors; Fast growing C BD p r o d uc t segme nt ; Tested by i nde p e ndent ISO 17025 certified labs f o r q uality a nd co nsi s te nc y . Ta k e adv a nt a g e to fin a l l y s ell r e a l , D e l ta 9 THC i n yo ur s to r e a nd e l evate INCREMENTAL profits. For more inform a ti on contact Brian Marks - Chief Customer Officer, cbd M D v i a e mail at b r i a n. ma r k s @cbdmd. c o m - OR- s to r eh e l p@ cbd md.co m Ope n your m i nd an d profits with cbd M D $9.99 Ret a i l / +50% Margins / $ 1 1 9 Ret a i ler Profit Per Sq Ft . Th i s pro duct h a s not been r evie w e d o r ap pro ved fo r sale by the U.S. F DA a nd it i s illeg a l to s e l l th i s product un d er t he laws of some states. You sh o uld chec k t he appl i ca b l e s tat e an d local r ules before engaging in th e re ta i l sale o f th is p r odu ct

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Snacking Made Fancy E levate on-th e go snacking for your custo mers with this resealable, portable, p rotein-centric salame sna ck. Hillshire® Snacking Ch arcuterie Cups feature high-quality Italian salam e medallion slices in an i ndividual, 2. 5-oz. serv i ng cup. Each cup contains 15g of prote i n, which appeals to custo mers looking for a hearty and delicious on the-go optio n. And with its convenie nt, resealable lid, freshness can be s ealed in all day. For m ore product information, v i sit www.tys o nfoodservice.com.

NEW TO INDUSTRYTHE

Today’s labor market positions convenience retailers against QSRs and other retail channels in the race to attract, hire and retain talent. To compete, c-stores must keep up with the rapid pace of change by developing and implementing competitive compensation strategies. A data-driven strategy can inform decision making and execution. This year’s report covers the latest industry data, trends and insights on salaries, benefits, turnover, recruitment & retention—plus: New Positions (Director of Food Safety and Social Media/Marketing Manager); New Benefits (career development planning, bonus/incentive programs, in-store discounts, severance); Cost to Hire & Cost to Train; Productivity (number of days to full productivity and number of training hours in the first 90 days). Order your digital copy at www.convenience.org/CompReport.

NACS State of the Industry Compensation Report® of 2021 Data Bird, Sr. Mgr. brent.bird@scooterscoffee.comAccounts

Grab ‘N Go Lattes Available Now! Scooter’s Coffee Grab ‘N Go Almond Milk Lattes Scooter’s Coffee NEW TO INDUSTRYTHE

National

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NACS NEW TO INDUSTRYTHE Grab one for now, for later, for anytime you crave our world-class 100% arabica coffee blended with smooth, dairy-free almond milk and all-natural flavors! Brent

148 SEPTEMBER 2022 convenience.org

True North goes beyond the average seltzer (also known as sparkling water). Our plant-based energy blend is infused with natural caffeine from plants such as Guayusa, Ginseng, Guarana, and Green Tea. But we didn’t stop there. We wanted to give you the added benefit of an immunity boost so you could feel good about fueling your body with everything it needs to keep you going on your journey. We kept all the stuff out that you don’t need, so you won’t find any sugar, nor sweeteners of any kind. We also stayed away from artificial flavors or colors. When we say natural, we mean it. Our products do not contain any chemicals or GMO’s. True North gives you the purest of energy for your next adventure. For more information, call (844) 538-7742 and visit www.truenorthenergy.com

NEW TO INDUSTRYTHE

PHONE: (877) 235-6466 | EMAIL: info@sunnyskyproducts.com

Flavored Sauces – 64 oz Bottles Sunny

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ProAmpac HandRap HandRapProAmpac

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Enjoy the rich and decadent taste of UPOURIA Flavored Sauces. Elevate your beverage program by adding convenience and quality with our versatile sauces, increasing scope of application in various types of end products. Our multi-purpose sauces are great for use in hot, cold, and blended drinks, or as a topping for desserts. With Foodservice friendly packaging and compatibility with 1 oz pumps, you can efficiently measure and cleanly dispense during peak hours.

HandRap and Hot HandRap are ergonomic solutions ideal for fresh-food-to-go products. Available for hot hold and chilled cabinet applications. A combination of film or paper adhered to a profiled carton board, the carton board in handraps is recyclable in paper streams when film is removed. HandRap provides maximum product visibility and branding opportunities with a fog resistant film. Ergonomic design aids in eating on the move. Visit us at NACS Show booth 3875, https://www.proampac.com/ fresh-food-to-go or email us at info@proampac.com.

Introducing True North Pure Energy Seltzer

True North Beverage

UPOURIA Sky Products

NACS SEPTEMBER 2022 149

150 SEPTEMBER 2022 convenience.org Expert guidance. InformedBetterdecisions.business. From EVs, diesel and renewables to fuel equipment and supply chain, we connect you to real-time insights and analysis to propel you forward. What can FMN do for you? Learn more + subscribe at fuelsmarketnews.com Subscribe to our weekly newsletter and receive OPIS data at fingertips.your PUBLISHED BY INDEX NEW DESIGN 1606 CORPORATION 143 BIC LIGHTERS 142 FEDERAL INDUSTRIES 143 FLASH SALES 143 MASONWAYS INDESTRUCTIBLE PLASTICS...... 143 GREEN BIC LIGHTERS 144 RUBICON 144 NEW FLAVORS E&J GALLO WINERY 145 KRISPY KRUNCHY CHICKEN 144 TWANG PARTNERS 145 VITA COCO ..................................................................... 145 NEW TO THE INDUSTRY ANCHOR PACKAGING 147 CBD MD ............................................................................ 147 NACS 148 PRO AMPAC 149 REVOLUTION TEA 147 SCOOTER’S COFFEE 148 SUNNY SKY PRODUCTS 149 TRUE NORTH BEVERAGE 149 TYSON FOODS ..............................................................148 NEW TECHNOLOGY OLM FOOD SOLUTIONS 146

4 Understand the ‘big picture’ with data and analysis 4 Maximize effectiveness and profitability with access to data from more than 27,000 convenience stores across the United States. 4 Benchmark against top performers in the industry and determine key drivers to their success. What’s next convenienceinand fuel retailing and how can you build on the future? For more than 50 years, the convenience and fuel retailing industry has relied on the NACS State of the Industry Report® to answer this question and more. BUY YOUR DIGITAL LICENSE TODAY! convenience.org/SOIReport of 2021 Data

“The previous owner didn’t want to fight the construction, which lasted three or four years,” he said. “We started serving food to feed the construction workers on the highway, and that turned thingsDevelopingaround.”a great food program was important to the survival of the c-store.

The first customer capture point is the food truck sitting in front of the store. “It’s like a sign. The cooking is done in pits behind the store. The truck is more for delivering. The store is the commis sary for the food truck, and we retail it out of the store also,” he said.

The second point is the reader board in front of the station right under gas prices.

“When they’re pumping gas, they’re smelling the smoke. If you can get in their minds that they need to come eat, they’re going to come in. When they step in the door, they smell it, it’s over. You’ve sealed the deal,” he explained.

The third is the pump monitor. “I program it inside the store and send it out to the pump. I have a couple of messages, and I advertise beer and lottery tickets,” he said, adding, “You have to have three capture points to get in [customers’] minds that they want to eat. The more it happens, the more the impulse grows.”

152 SEPTEMBER 2022 convenience.org GAS STATION GOURMET

The barbecue at a convenience store in Mississippi is out of this world. “Barbecue is big in this part of Mississippi, especially gas station barbecue. I would say you have a lot of guys who just want to cook barbecue. Then they team up with the store operator. It’s an easy marriage,” said Jeff Puckett, pitmaster and CEO of Hog Heaven BBQ. Before Hog Heaven BBQ was born, there was a four-lane highway that ran in front of a convenience store that was soon to expand to six lanes. The owner of the c-store didn’t want to deal with the problems the construction could bring, so Puckett leased the c-store and began operating in 1998.

Jeff and Marla Puckett run Hog Heaven BBQ in a Flowood, Mississippi, gas station.

Over the years, Hog Heaven’s menu continued to expand. “We do pork, steaks, ribs, chicken, sausage, pulled pork and pulled chicken along with demand in Flowood, but it has another purpose. It serves as a rolling billboard that is part of what Puckett calls his “Three Capture Points.”

In addition to the visual capture points, there is an olfactory strategy.

Besides barbecue, “Chicken and sau sage gumbo is one of the most popular menu items. It’s the Monday special,” said Puckett.

BY AL HEBERT

HOG HEAVEN ON WHEELS

The community responded well to the food, and Puckett was looking for anoth er opportunity to bring in new revenue, so he added a food truck in 2015. “There were only a handful of them in the beginning. We were gobbling up the market. There’s a lot of them now. They come and go. Only the strong survive,” he explained.Thefood truck is not on the road every day, as there’s simply not enough

Eatin’ in Hog Heaven

eight different sides. It’s straight carryout; you’re not clogging up the parking,” said Puckett.

Puckett looked around and saw what was happening in c-stores around the area. “We copied someone who was doing only ribs and chicken. Then, we started doing breakfast sandwiches and lunch plates,” he said.

“Word of mouth has been covering me. A lot of people count too heavily on social media. You have to talk to people and get in their ears. You have to get to know the customers. If they feel they know the owner, man they’ll keep coming there. They like that personal connection.”

Al Hebert is the Gas Station

NACS SEPTEMBER 2022 153

DIVERSIFICATION

“There were four gas stations within this block, and now there’s only two of us left. I attribute that to me just staying around and being there,” Puckett said. There’s something special about when the restaurant owner visits with customers to see if their meals are going well. It’s personal and diners feel special. Puckett does this and sees his personal attention to customers as a critical part of his success. “I’m just interacting with customers. The food is only as good as the smile that serves it,” he said. “Every plate that gets made is me and my wife putting it together and handing it to customers. It’s me, her and two other employees. We’re always with the customers. You can’t put someone between the owner and customer. They want to know you. We’ve tried it other ways. We’ve hired other people to do this, that and the other, but it didn’t work. You have to be there,” he said.

GasStationGourmet.com.FindculinaryAmerica’sshowcasingGourmet,hiddentreasures.himatwww.

STAYING POWER

In the intensely competitive foodser vice industry, being nimble and quickly seizing opportunities is important, and Puckett did that with the local Veterans Affairs hospital. It all started when the hospital decid ed to bring food trucks in to offer more choices for the veterans. A number of food trucks responded, but Hog Heaven BBQ stood out. “I call it the three-headed monster: the store, the food truck and the hospi tal. The meat is cooked at the store. The sides are done at the store,” he said. “They liked our food and invited me to bring in more options for the veter ans. I was competing with other food trucks, and my numbers blew them out of the water,” he said.

The menu features a range of barbecued meats, chicken and sausage gumbo plus sides, all of which are cooked on-site.

Puckett’s wife, Marla, is special to customers. “They love my wife. She’s al ways smiling and talking to them. They like me OK, but if Marla’s not here, they want to know where she’s at,” he said.

When Hog Heaven’s food truck is not out on the road, it’s parked out front to help draw in customers.

Social media has not been a priority with Puckett, a controversial stance.

154 SEPTEMBER 2022 convenience.org ImagesNovak/GettyShana

Nothing General About It Tailor

BY SARAH HAMAKER

specificmeetcategoriesmerchandisegeneralyourtocustomers’needs.

Source: NACS State of the Industry Report of 2021 Data

The Hub Convenience Stores stocked personal protective equipment early in the pandemic. “But here in North Dakota, they just weren’t in high demand,” said Jared Scheeler, owner of the five-unit chain based in Dickinson, North Dakota, and Gross margins for the general merchandise category rose 1.26 points in 2021 to average 44.90%.

Walk into any convenience store and you’ll notice something different in each one. Some stores emphasize packaged beverages or the beer cave, while others focus on foodservice or grab-and-go, with offers often localized to a specific region. That attention to detail is most evident in how retailers stock their gen eral merchandise category.

CATEGORY CLOSE-UP GENERAL MERCHANDISE

“General merchandise consists of everything from cellphone accessories to batteries to school office supplies,” said Jayme Gough, research manager, NACS. “In 2020, many retailers added COVID-19-related items, including masks and hand sanitizer, which boosted sales for the category starting in April 2020. Going into 2021, sales stayed high but dropped below 2019 levels starting in May as COVID-19 concerns continued to wane and consumers bought fewer masks and hand sanitizer.”

you

convenient payment processing

POWERFUL HOMETOWNBRAND.FEEL.RUNNINGYOURBUSINESSYOURWAY.POWEREDLOCALLY.Anameyourcustomerstrust,abrandyoucancounton–visitcenex.com/businessopportunitiestolearnmore.

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NACS chairman. “Even though we were prepared, we sold through 10% of our supply of PPE items, so we have no plans to proactively prepare for another wave of LastCOVID.”year, the general merchandise category grabbed 1.93% of inside-store sales, down from 2.06% in 2020, accord ing to the NACS State of the Industry Report of 2021 Data. “This tracked with data showing sales dropping below 2020 monthly figures for all but four months of the year,” Gough said. Average monthly sales per store fell 4.1% last year compared with 2020, hitting $4,646 per store for the general merchandise category, according to the NACS SOI Report of 2021 Data. Gross margins for the category rose 1.26 points in 2021 to average 44.90%, compared with 43.64% in 2020. “Despite this, gross profit declined 1.3% year over year, and average monthly gross profit per store for the category averaged $2,086,” Gough said.

CATCHALL CATEGORY General merchandise has long been a category for items not fitting into other store sections. In 2021, the subcategory of “other general merchandise” was the biggest, capturing 47.2% of category sales for items like fans, candles, trash cans, personal protective equipment and flash lights, according to NACS SOI data.

156 SEPTEMBER 2022 convenience.org CATEGORY CLOSE-UP GENERAL MERCHANDISE Source: NACS State of the Industry Report of 2021 Data 2021 99.1% 2020 98.4% % of Stores Selling 2021 $4,646 2020 $4,845 Avg. Monthly2021Sales/Store 1.93% 2020 2.06% % of In-Store Sales Industry Sales

BIC relies heavily on shopper market ing data, category management insights and syndicated data analysis to be a resource to help retail partners acquire a profitable merchandise mix for their locations. “With certain subcategories, such as HBC, stationery or automotive, it’s often not needed to have more than one SKU offering to meet the needs of the consumer,” Vondran said. ‘TIS THE SEASON Convenience stores make good use of the general merchandise category by stocking seasonal favorites. The second largest subcategory was seasonal last year, which had 9.5% of category sales in 2021, but that number is lower as a per centage of sales contribution year over year, according to NACS SOI data. “Sunglasses and t-shirts are always popular in the summertime,” said Cox. The company keeps in close contact with its convenience retail customers to “ensure they have ready access to the season’s hot merchandise.”

Because North Dakota weather expe riences extremes in all four seasons, The Hub Convenience Stores stock appro priate seasonal products. “Our stores sell an incredible amount of winter hats and gloves, hand and feet warmers, and winter automotive accessories,” Scheeler said. “In the summer, that transitions to the expected items like charcoal and lighter fluid but also to sun dresses and trendy hats.” BIC has seen an evolution from seasonal to include holiday-specific merchandise. To meet that seasonal and holiday customization need, BIC has designed more than 100 different lighter series. “For instance, in addition to summer merchandise, consumers

ImagesMaxxa_Satori/Getty

“At The Hub, we’ve really focused on high-end flashlights and utility tools,” Scheeler said. “I continue to be surprised at how many sales we register for a $30 multipurpose flashlight. These are all incremental sales on top of what we’d typically expect at our stores.” With the category having so many options, finding the right merchandise mix can be key to maximizing profits. “We stay in close contact with our con venience retail customers to discuss how our wide variety of products in the gen eral merchandise category can work for them,” said Brian Cox, CEO, SurgePays, a technology and telecommunications company focused on underbanked and underserved communities. “Convenience stores operate on a frac tion of the footprint of other general mer chandise retailers, with the majority of sales coming at the pump but the majority of profits coming from inside the store,” said Christine Vondran with BIC Con sumer Products. “Therefore, it’s all about meeting the consumers’ needs, wants and desires at the point of purchase.”

NO REVERSE. Conference / October 1-4, 2022 Expo / October 2-4, 2022 Las Vegas Convention Center | Las Vegas MOVEFORWARD.WE ONLY STREAMLINE YOUR ONSITE EXPERIENCE BY PREPLANNING! Utilize the NACS My Show Planner and download the official NACS Show App. nacsshow.com/plan NACS SHOW LAS CENTERCONVENTIONVEGAS SessionsGeneralEducationSessions PEI SESSIONS Registration (Room N258) Shuttle Buses TaxiDropOffResortLasWestgateVegas&Casino Entrance SKYWAY TO WESTGATE LAS VEGAS RESORT & CASINO (Room N251) Booths:CENTRAL3500-7500 ■ Me chandise, & Snacks Exhibits ■ Foodservice ■ Technology ■ Fuel ServicesEquipmentExhibitsNORTH HALL Booths: 100-3200 ■ Facility Operations Exhibits ■ Merchandise, Candy & Snacks Exhibits ExhibitorNewArea NORTH HALL (2nd Floor) NORTH HALL (1st Floor) InformationCoolEVENTSPEINewProducts CENTRAL HALLPRODUCTSSCAN My Show PlannerSchedule of Events Education SessionsExhibitor/Booth Search This Year’s ShowMaps

The Hub also has a small selection of branded merchandise, namely branded

“When analyzing our general merchan dise sales, our unit volume is dominated by smoking accessories,” Scheeler said. “BIC lighters make up seven of our top 10 general merchandise SKUs when measur ing by unit volume.” The chain stocks a wide variety of lighters in countertop dis plays to snag impulse sales at checkout.

CATEGORY CLOSE-UP GENERAL MERCHANDISE

The Power of CSX Data CSX, enginethe behind category metrics and NACS State of the Industry data, provides current and customizable tools for financial and operational reporting and analysis in the executiveorgcrapanick@convenience.atContactviametricsbymeasureindustry.convenienceRetailerscantheircompanyanyofthemyriadgeneratedourlivedatabase.ChrisRapanick(703)518–4253orforacomplimentarywalkthrough.JANFEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC $4,000$8,000$7,000$6,000$5,000$3,000 Source: CSX LLC; csxllc.com Per Store, Per Month Sales n 2019 n 2020 n 2021 n 2022 $7,311 ImagesCavus/GettyKubraImages,Floortje/Getty

At The Hub, telecom hardware carries the general merchandise category. “We have a heavy selection of both lower-end and OEM-equivalent hardware, and sales continue to grow year over year,” Scheeler said. “We have plans to double down on telecom in the near future because of its popularity with our customers.”

Smoking accessories (7.5% of category sales) snagged the fifth-biggest slot last year, according to NACS SOI data. BIC works to keep its products interesting to consumers. “The lighter [segment] has seen more innovation in the last two years than it has seen in over 20 years,” said Vondran. For example, last year, BIC launched EZ Reach, a pocket lighter with an extended wand to keep thumbs away from the flame when lighting hard-to-reach spaces. To add to the momentum on EZ Reach, BIC added Djeep Lighters in July to its portfolio.

SurgePays partners with convenience stores on promotional materials. “For ex ample, our prepaid card racks are easy to set up and provide marketing collateral to catch customer attention and lead to sales directly at the counter,” said Cox.

may also be encouraged to purchase Americana-inspired designs for Memo rial Day, July Fourth and Labor Day,” Vondran said.

ACCESSORIZE ME Telecommunications hardware (9.2% of sales) and propane exchanges (7.6%) were the next biggest subcategories, accord ing to NACS SOI data. Sales of propane exchanges rose in 2020 because people were home and using their outdoor grills during the first year of the pandemic.

41.89% 42.90% Propane Exchanges 8.1% 7.6%

160 SEPTEMBER 2022 convenience.org

41.59% Batteries 2.0% 1.8%

52.14% Wearables/Apparel 5.6% 5.7%

A GENERAL FUTURE

General Merchandise

With general merchandise, convenience retailers have a lot of room to branch out and try new items and products. “Though this category provides many opportunities for creativity, at the end of the day, it’s the necessities our customers continue to want,” Scheeler said. “We’ll focus on merchandising those items well, which include batteries, cellular hard ware and smoking accessories, as well as take advantage of any seasonal opportu nities that come our way.”

“The future of general merchandise, especially in convenience stores, is to maintain and grow the core, while bringing in new customers through innovation,” said Vondran. “The key will be to strike the right assortment balance in these two segments to satisfy the consumer but not carry more facings or items in the category than needed.”

ImagesKalachevsStockStudio/Getty $482 $439 $302 $249 $410 $426 $172 $183 $393 $355 $147 $129 $349 $346 $184 $181 52.74% $273 $266 $93 $99 33.90% $142 $149 $54 $62 38.08% $97 $85 $59 $53 61.33% 62.22% 1.7% $113 $77 $22 $9 19.77% 12.23% Cards 1.1% 1.6% $54 $74 $19 $37 36.23% 49.95% 1.4% 1.6% $68 $73 $29 $31 42.87% 43.00% Supplies 0.3% 0.4% $14 $18 $4 $10 32.38% 57.07% Tapes 0.1% 0.3% $5 $13 $2 $5 37.12% 34.71% 0.1% 0.1% $6 $7 $1 $2 12.77% 27.60% Total 100.0% 100.0% $4,845 $4,646 $2,115 $2,086 43.64% 44.90%

Video/Audio

Film/Photo

62.61% 56.67% HardwareTelecommunications 8.5% 9.2%

Floral 2.3%

Trading

37.39% 36.30% Smoking Accessories 7.2% 7.5%

HousewaresHardware/Tools/

CATEGORY CLOSE-UP GENERAL MERCHANDISE Source: NACS State of the Industry Report of 2021 Data Subcategory Performance General Merchandise % of Sales Avg. Sales/Store Avg. GP$/Store Gross Margin % 2020 2021 2020 2021 2020 2021 2020 2021 Other General Merchandise 50.3% 49.9% $2,439 $2,317 $1,025 $1,037 42.05% 44.76% Seasonal 10.0% 9.5%

The ininnovationseensegmentlighterhasmore the last two 20seenthanyearsithasinoveryears.”

coffee and fountain mugs. “We’ve been fortunate to sell five figures’ worth of mugs in an average year at our five loca tions by focusing on quality, variety and purchasing in quantities that will allow for solid profit margins,” Scheeler said.

School/Office

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

37.06% Toys/RecGreeting/Gift/Novelties/Equipment 2.9% 3.2%

The2022© CardWe reserved.rightsAllInc.Program, WE CARD makes a difference! Easy online ordering at wecard.org or, call 1-800-934-3968 Order 2023 Materials Refresh your retail locations with updated, effective We Card materials. Train employees Get trained at WECARD.ORG

NACS Membership 4 NACSwww.convenience.org/membershipShow 25 NACSwww.nacsshow.com/save150Show 157 NACSwww.nacsshow.com/planSOIReport 151 www.convenience.org/SOI Report OLM Food Solutions 107 www.orderhotstuff.comPerfettiVanMelle USA 19 www.perfettivanmelle.com(Mentos)PetrosoftLLC 57 www.petrosoftinc.comPIMBrands 115 (800) www.pimbrands.com369-7391

ImagesMicroStockHub/Getty

Beam Suntory (Truly Vodka) 159

Innovativewww.huntbrotherspizza.comControlSystems 53 Invencowww.icscarwashsystems.com 27 www.invenco.com/nacsITGBrands 59 Johnsonvillewww.itgbrands.comSausageLLC 69 www.johnsonville.comJonnyAlmondNut Company 13 www.werebetterthannothing.comKrispyKrunchyFoodsLLC 71 www.krispykrunchy.comLiggettVectorBrandsInc. 49 www.liggettvectorbrands.comMarsWrigley 117 MasonWayswww.mars.com 65 (800) www.masonways.cominfo@masonways.com837-2881MatrixCapitalGroup

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

Contact Information Page Contact Information Page Contact Information Page 5-hour ENERGY 7 (866) www.5hourEnergy.com/trade960-1700

Inside Front Cover

162 SEPTEMBER 2022 convenience.org

Inside Back Cover www.matrixcmg.comMcLaneCompany Back Cover www.mclaneco.com

Modern Store Equipment 105 (877) NACSwww.modernstoreequipment.com/cstore532-8433Events 113 www.convenience.org/worldNACSwww.convenience.org/eventsGlobal 163

Placon 39

Cool New Products Guide 142-150 www.convenience.org/cnp Core-Mark & Eby-Brown 97 www.eby-brown.comwww.core-mark.com

Diageo Beer Company 81 (Lone River Ranch Water Hard Seltzer) DMFwww.loneriverbevco.comBaitCompany 99 (800) www.DMFBAIT.comorders@dmfbait.com332-2248

ADD Systems 141 (800) ADS-Techwww.addsys.com922-0972EnergyInc. 51 https://go.ads-tec.de/us/hpc/whitepaperAltriaGroupDistributionCompany

ADVERTISER INDEX

E&J Gallo 133 www.gallo.comHuntBrothersPizza 89

www.tobaccoissues.comwww.altria.comAGDCTradeRelations@Altria.comAnchorPackaging 43 www.anchorpackaging.com

Premierwww.placon.comManufacturing Inc. 5 & 45 Republicwww.gopremier.comBrand 127 www.republicbrands.comREVTEAAcquisition LLC 63 www.revolutiontea.comRich’s/f’real 119 (800) http://info.freal.com/NACS483-3218 Rosti Stuft Spuds 21 (503) www.stuftspuds.com333-7700SEBProfessional 29 Southernwww.wilburcurtis.comwww.schaererusa.comwww.wmf-coffeemachines.comChampion(BuzzballzLLC) 129 StarKistwww.southern-champion.comCompany 61 www.starkist.comSunnySky Products 79 (877) www.sunnyskyproducts.com235-6466SwedishMatchNorthAmerica (Game) 31 (800) www.smna.com367-3677SwedishMatchNorth America (Zyn) 9 (800) TransActwww.smna.com367-3677Technologies 33 TRAXwww.transact-tech.comRetail 109 Tweakerwww.traxretail.comEnergyDrink Co 15 Travelwww.tweakerenergydrink.comCentersofAmerica(TA) Bellyband Ad Trionwww.ta-petro.comIndustriesInc. 17 (800) Tywww.triononline.com444-4665Inc. 139 www.ty.comTyson Convenience 91 www.tysonfoodservice.com/your-channel/convenienceTheVitaCocoCompany 46 info@vitacoco.com We Card 161 Ziplinewww.wecard.org 95 www.getzipline.com

www.beamsuntory.comBlackBuffalo 123 wholesale@blackbuffalo.com Blink Charging 75 BPwww.blinkcharging.comNorthAmerica(ARCO) 11 CalicoARCOampmfranso@marathonpetroleum.comARCOampmfranchisingnorth@bp.comBrandsInc.(Scripto) 83 (800) Capitalwww.calicobrands.com544-4837SalesCo. 135 (Breeze www.breezesmoke.comSmoke)CashDepot 3 (800) www.cdlatm.comsales@cdlatm.com776-8834 cbdMD 110 www.cbd.com/d9storehelp@cbdmd.comChester’s 87 (205) www.chesterschicken.com949-4690CHSInc.(CENEX) 155 www.cenex.com/businessopportunitiesTheCoca-ColaCompany 41 www.coca-colacompany.com

Thought leadership. Powerful commercial connections. Forward looking innovations and insight. Count on NACS to bring our global industry together in more places around the world. convenience.org/world As Convenience Grows, the World is Getting Smaller February 28-March 2, 2023 Bangkok, ThailandOctober 1-4, 2022 Las Vegas, NV 31 May – 02 June 2023 Dublin, Ireland

Convenience retailers have been scrutinized for much of 2022 amid record-high fuel prices. Thanks to outreach efforts by NACS and other groups, most consumers and industry stakeholders seem to understand that retailers are generally not to blame for the price of gasoline. What’s not as clear, though, is an understanding of how the inflationary environment has affected the convenience have, in fact, been hit by both sides of inflation—trips to the inside of the store de clined significantly in the first six months of the year, likely due to high fuel prices, and operating expenses grew at an alarming rate during that same timeframe.

Convenienceindustry.retailers

The two main expenses for retailers are wages and ben efits and credit card fees. In January to June 2022, wages and benefits expenses grew 13.0% versus the same period in 2021 and 30.3% compared with 2018. Card fees eclipsed that, increasing 28.9% over 2021 and 36.4% over 2018’s figure for the same period. Total direct store operating expenses rose 15.8% compared with 2021 and 30.0% compared with 2018.

It’s easy to assume that retailers are raking it in, but most are feeling the squeeze of higher expenses more than ever before. Consider that on average, each retailer is paying about $8,000 more in operating expenses per store per month than they were in 2021 and $13,000 more per store per month than 2018.

BY THE NUMBERS Are You Feeling the Squeeze? Considered an essential guide for HR professionals for more than 40 years, the NACS State of the Industry Compensation Report ® is the industry’s premier compensation benchmarking report for the convenience channel. The digital report provides the latest data, trends and best practices on compensation, benefits, recruitment and turnover as reported by retail companies. The report can be purchased at www.convenience.org/store. 164 SEPTEMBER 2022 convenience.org Source: CSX Time Period Difference Report TOTAL DIRECT STORE OPERATING EXPENSES $40,000$60,000$50,000$30,000$20,000$10,0000 Jan.-June2018 Jan.-June2019 Jan.-June2020 Jan.-June2021 Jan.-June2022 Imagesmalerapaso/Getty

© 2022 McLane Company, Inc. All rights reserved. For more than 127 years, McLane has been building our nationwide distribution network to fulfill the needs of businesses of all sizes. Whether you’re a single store, an emerging chain, or a nationwide operation, our world-class infrastructure, unrivaled buying power, and proven technology can be utilized to diversify your offerings and grow your business. To learn more about McLane’s solutions for businesses of all sizes, visit mclanegrocery.com From the Store on Main, to the Nationwide Chain, McLane Has You Covered FOODSERVICE MERCHANDISING PRIVATE LABEL TECHNOLOGY