CStore Decisions August 2023

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EDITORIAL

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John Lofstock

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Erin Del Conte edelconte@wtwhmedia.com

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Kevin McIntyre

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EDITORIAL ADVISORY BOARD

Robert Buhler, President and CEO

Open Pantry Food Marts • Pleasant Prairie, Wis.

Lisa Dell’Alba, President and CEO

Square One Markets • Bethlehem, Pa.

Raymond Huff, President

HJB Convenience Corp. • Lakewood, Colo.

Bill Kent, President and CEO

The Kent Cos. Inc. • Midland, Texas

Olivia Beck • Operations

Beck Suppliers Inc. • Fremont, Ohio

Reilly Robinson Musser, VP, Marketing & Merchandising

Robinson Oil Corp. • Santa Clara, Calif.

Bill Weigel, CEO

Weigel’s Inc. • Knoxville, Tenn.

NATIONAL ADVISORY GROUP (NAG) BOARD

Vernon Young (Board Chairman), President and CEO

Young Oil Co. • Piedmont, Ala.

Joy Almekies, Senior Director of Food Services Global Partners • Waltham, Mass.

Mary Banmiller, Director of Retail Operations

Warrenton Oil Inc. • Truesdale, Mo.

Greg Ehrlich, President Beck Suppliers Inc. • Fremont, Ohio

Doug Galli, Real Estate/Government Relations Reid Stores Inc./Crosby’s • Brockport, N.Y.

Derek Gaskins, Senior VP, Merchandising/Procurement Yesway • Des Moines, Iowa

Joe Hamza, Chief Operating Officer Nouria Energy Corp. • Worcester, Mass.

Brent Mouton, President and CEO

Hit-N-Run Food Stores • Lafayette, La.

Robin Hunt, Sales Hunt Brothers Pizza • Nashville, Tenn.

Kyle May, Director External Relations Reynolds Marketing Services Co. • Winston-Salem, N.C.

Tony Woodward, Manager Sr. Account McLane Company Inc. • Temple, Texas

YOUNG EXECUTIVES ORGANIZATION (YEO) BOARD

Kalen Frese (Board Chairman), Director of Merchandising

Warrenton Oil Inc. • Warrenton, Mo.

Jeff Carpenter, Director of Education and Training

2011 - 2020

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CStore Decisions (ISSN 1054-7797) is published monthly by WTWH Media, LLC., 1111 Superior Ave., Suite 2600, Cleveland, OH 44114, for petroleum company and convenience store operators, owners, managers. Qualified U.S. subscribers receive CStore Decisions at no charge. For others, the cost is $80 a year in the U.S. and Possessions, $95 in Canada, and $150 in all other countries. Single copies are available at $9 each in the U.S. and Possessions, $10 each in Canada and $13 in all other countries. Periodicals postage paid at Cleveland, OH, and additional mailing offices. POSTMASTER: Send address changes to CStore Decisions, 1111 Superior Avenue, 26th Floor, Cleveland, OH 44114. GST #R126431964, Canadian

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Cliff’s Local Market • Marcy, N.Y.

Megan Chmura, Director of Center Store GetGo • Pittsburgh

Ryan Faville, Director of Purchasing

Stewart’s Shops Corp. • Saratoga Springs, N.Y.

Cole Fountain, Director of Merchandise Gate Petroleum Co. • Jacksonville, Fla.

Alex Garoutte, Director of Marketing The Kent Cos. Inc. • Midland, Texas

Daillard Paris, Director of Petroleum Supply and Trading Sheetz Inc. • Altoona, Pa.

Join the IHOP Family

Seeking multi-unit operators and developers to continue IHOP’s growth in travel centers nationwide and offering varied incentives for development.*

• Develop/operate a nationally recognized and trusted brand that will broaden your customer appeal

• 65+ years of giving guests the good comfort food they love and the updated favorites they want to try… at a great value

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• Portable menu items and digital ordering offer a convenient guest experience

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*Subject to Franchise Agreement and Development Agreement Terms.

© 2023 IHOP Franchisor LLC. This is not an offer to sell a franchise. An offer can be made only by means of a Franchise Disclosure Document that has been registered and approved by the appropriate agency in your state, if your state requires such registration, or pursuant to availability and satisfaction of any exemptions from registration.

For any questions about this issue or suggestions for future issues, please contact me at edelconte@wtwhmedia.com.

Finding Success as an Independent Operator

Family-owned and independent c-store businesses are the backbone of the convenience store industry. But running a familyowned c-store chain and successfully integrating second-generation leadership into the company all while scaling the business isn’t for the faint of heart.

When the convenience store chain is family owned, the owners also have to find ways to separate family time from the business of running a convenience store. One key is to avoid discussing the business outside of work, unless absolutely necessary, shared Hassan Yatim, chief operating officer of Marlborough, Mass.-based Yatco convenience stores. Despite the challenges, building a c-store business and creating a legacy together as a family brings big rewards.

Yatco is featured as this month’s cover story. Tarek and Khadijeh Yatim co-founded Yatco in 1993 after immigrating to the U.S. to escape civil war in Sierra Leone, Africa. Today, their three sons, Hassan, Hussein and Mohamed, are active in the family business. What started as a single store has now grown to a 13-store chain with four new-to-industry stores on the horizon. Now, as Yatco celebrates its 30th anniversary, it’s looking ahead. The chain plans to double its store count through new builds and acquisitions, develop its franchising program and integrate mobile fueling, self-checkout, delivery and more.

This month’s profile article highlights another independent c-store chain, Big Mike’s, based in Lebanon, Ohio, which operates five stores and plans to grow its footprint. Despite its size, the independent c-store chain features a competitive offering with a proprietary foodservice program and drive-throughs. It’s also eyeing future opportunities in loyalty programs and delivery.

MEETING THE COMPETITION

Like Yatco and Big Mike’s, many family-owned and/or independent chains are increasingly taking their c-store operations to the next level to compete with larger chains that are setting the bar high. They’re launching initiatives that were once the exclusive domain of much larger chains, such as building new-to-industry stores with an emphasis on modern design, adding quality foodservice programs and integrating technology from loyalty apps and delivery to self-checkout. Bean-to-cup coffee machines are providing benefits in terms of waste, labor and convenience, even for small operators.

Still, as the c-store industry steps up to meet growing customer expectations, it can be hard for smaller chains to keep pace. From sourcing products to funding electric vehicle chargers to launching a foodservice operation, it’s a lot more expensive for smaller businesses to compete. But time and again family-owned and independent chains are stepping up to the plate, and many are finding success.

The National Association of Convenience Stores (NACS) during the 2023 NACS State of the Industry Summit reported that the c-store industry is 150,174 stores strong, having grown 1.5% in 2022. That growth came from an uptick in single-store operators, which grew by 1,087 sites for a total of 90,423 stores. Many of those c-store operators likely have their eye on growth much like the Yatims did when they began by opening their first site 30 years ago. With perseverance, due diligence and a focus on customer demands for convenience, independent and family-owned chains are building a bright future in today’s market.

Big Mike’s Celebrates 15th Anniversary, Eyes Expansion

Kevin McIntyre • Online Editor

Big Mike’s Gas N Go is celebrating 15 years in business.

Headquartered in Lebanon, Ohio, Big Mike’s recently opened its fifth convenience store in the state and plans to continue expanding its footprint. The independent c-store chain features a proprietary foodservice program and drive-throughs and is eyeing opportunities in loyalty programs and delivery.

Owner Mike Schueler’s extensive business experience, customer-centric mindset and hands-on approach has helped the chain find success.

Schueler is also the chairman and CEO of real estate services company The Schueler Group, and he draws on his vast real estate experience, along with his background in the c-store industry, as he develops Big Mike’s.

BUILDING BIG MIKE’S

Schueler first started working in the c-store world back in college to pay his way through school.

He later moved into the real estate business, purchasing numerous c-store properties for a private company. When two of the locations that he rented went out of business, Schueler decided to start his own chain of c-stores.

In 2008, Schueler founded Big Mike’s Gas N Go,

taking over two sites in Troy and Tipp City, Ohio. From there, Schueler developed the Big Mike’s Gas N Go logo and brand.

In 2009, the chain expanded through its first ground-up new build in Batavia, Ohio. Schueler later added a fourth store in Landen, Ohio, when he saw an opportunity to add a large, renovated store to a property for sale there.

In April of this year, Big Mike’s introduced its latest site in Lebanon, Ohio, in the same town as its company headquarters.

“The one thing that’s a little bit different with our company is our owner is very involved in our stores,” said Judy Duchemin, director of store operations for Big Mike’s Gas N Go. “He wants to know everybody that works for him. It doesn’t matter how far he’s got to travel.”

Duchemin described Schueler’s ownership style as “old school,” with Schueler being actively involved in day-to-day operations of all the locations he owns.

“You just don’t get that anymore from small businesses to where the owner actually wants to meet everybody that works for him,” said Duchemin. “I think one of the reasons why he’s done so well is because (employees) actually know the owner and actually feel like ... they’re an important part of the company. Well, because they are.”

With five stores in Ohio, Big Mike’s delivers for customers with proprietary foodservice, ample parking and drivethroughs as it looks toward expansion.

STORE DESIGN

When it comes to store design, each Big Mike’s c-store is tailored to meet the needs of its customers, and that starts in the parking lot.

“We have really nice big parking lots because we want to be able to cater to the lawncare guys, the semis that they need to come in,” said Duchemin. “So, we always make sure that we have two different easements to where they can come in and out of.”

Two of the chain’s locations also feature spacious drive-throughs. Duchemin noted that this is an important aspect of the chain’s design because many customers have young children, and getting out of the car to go into the store may not always be easy. She also mentioned that police officers appreciate the drive-throughs when they need to stop and get a drink while they are on call.

The company is set to rebuild its Batavia location after the city altered the configuration of the roads surrounding the store. When Big Mike’s realized it needed to raze and rebuild the store so that it faced the new roads, it also saw an opportunity to add a drive-through, which will bring the chain’s drivethrough count to three.

The color scheme for each store is based off of the colors of the fuel brand offered at each location.

In the forecourt, Big Mike’s partners with gas brands BP and Shell. The first three sites — located in Troy, Tipp City and Batavia — are supplied by BP. The two newest stores — located in Landen and Lebanon — are supplied by Shell.

While the chain does not currently offer electric vehicle (EV) charging, it’s currently evaluating its stations to see if and where EV charging might be a fit.

The color scheme for each store is based off of the colors of the fuel brand offered at each location.

Schueler has been in talks with Shell about adding EV charging to its sites.

Duchemin noted that one aspect to consider with EV charging is space, as not all retailers have enough room to implement the chargers. She added that Big Mike’s Lebanon location does have enough space to potentially accommodate chargers, so out of the five stores, that is the most likely one to implement the charging stations.

FOODSERVICE FORWARD

Despite being a small chain, Big Mike’s features a successful proprietary foodservice program that includes breakfast sandwiches and pizza.

“We make breakfast sandwiches every morning, which does really well for us because we hear they’re better than McDonald’s in places,” said Duchemin. “Breakfast is one of our biggest categories compared to lunch.”

To make the program fast and easy for employees, Big Mike’s relies on frozen food products that are heated and served in-store. In addition to its break-

fast offerings, the chain also welcomes call-ahead orders for lunch products such as pizza.

Duchemin noted that many times workers from the factories near the stores will call ahead and order pizzas for lunch.

Each store is also equipped with a wide variety of coffee options, from Columbian to House Blend and the popular Highlander Grogg flavor.

CUSTOMER SERVICE

As all retailers know, customer service can be a key point when it comes to building relationships with communities and encouraging loyalty from customers. At Big Mike’s, this is a point of emphasis when it comes to the operations of each store.

“We really are very picky about the people that we hire because we want our main goal to be customer service,” said Duchemin. “Our customers are very important to us. So, if we get people that don’t provide that, then we find somebody else.”

In addition to having exceptional customer service, the chain makes cleanliness another top priority.

“I truly believe that’s our leverage over some stores because we always hear how clean our bathrooms are, how clean our stores are and how friendly our people are,” said Duchemin.

THE FUTURE FOR BIG MIKE’S

Big Mike’s has plans to expand further throughout Ohio in the future.

“(Schueler) has a couple more stores on the horizon after we rebuild our Batavia location,” said Duchemin.

While expansion is top of mind, other plans for the future include introducing new technology, particularly a proprietary loyalty program. Currently it offers the Fuel Rewards Network program through Shell.

Additionally, the chain has been in talks with DoorDash and is considering the possibility of adding delivery to its offerings soon.

While the chain continues to expand and grow, one thing that is certain is that with hands-on, active involvement from Schueler, the chain’s future is in good hands.

Each store is equipped with a wide variety of beverage and coffee options from Columbian to House Blend and the popular Highlander Grogg flavor.

Two Big Mike’s locations feature spacious drive-throughs, which is an important aspect of the chain’s design.

QUICKBITES

ONLINE ORDERING CONTINUES TO RISE

The COVID-19 pandemic pushed online ordering to all-time highs and instilled new shopping habits in customers that remain even as the pandemic has subsided. Convenience stores are responding to the trend, adding order ahead, e-commerce and delivery options to meet this ongoing customer demand.

ONLINE SHOPPING INCREASES

According to Adtaxis’ “2023 E-Commerce Survey,” shopping online is at an all-time high. Adtaxi found:

• Nine in 10 online adults (93%) engage in e-commerce during the typical month, compared to seven in 10 back in 2017.

• Entering 2023, one in four online shoppers engage in e-commerce on a daily basis, compared to just 5% in 2017.

MEASURING ONLINE SHOPPING FREQUENCY

In Jungle Scout’s “Consumer Trends Report,” the company surveyed 1,000 U.S. consumers to poll shoppers’ online ordering frequency. The report found:

11% of consumers shop online once a week.

shop even greater

• Two-thirds shop online weekly, compared to one-fourth (27%) six years ago.

• The frequency with which Americans shop online is posting even greater gains and will drive further growth moving forward.

Source: Adtaxis’ “2023 E-Commerce Survey,” June 2023

WILL LOAN REPAYMENT IMPACT FOOD DELIVERY?

When student loan repayment restarts in October, some shoppers might have less disposable income for food orders. CivicScience data found 52% of borrowers who order food delivery at least weekly are “very concerned” about paying back student loans.

16% of consumers shop online two to three times a month. 21% of consumers shop online once a month or less. 7% of consumers have never shopped online.

Source: Jungle Scout’s “Consumer Trends Report,” May 2023

MOTIVATIONS FOR ONLINE SHOPPING

Consumers shop online for many reasons. Adtaxis’ “2023 E-Commerce Survey” found:

Source: CivicScience, June 2023

Source: Circana’s “The Snacking Supernova,” April 2023

MOST POPULAR PRODUCTS BOUGHT ONLINE

PwC found 35% of consumers purchase food and beverages online.

Source: PwC’s June 2023 “Global Consumer Insights Pulse Survey”

DIGITAL ORDERS TREND UPWARD

• 52%

• 51%

• Year after year, convenience remains the most cited reason why U.S. consumers shop online (79%) of consumers shop online to look at price comparisons. of consumers shop online for consumer reviews.

• 46% of consumers shop online to find coupons.

Source: Adtaxis’ “2023 E-Commerce Survey,” June 2023

Digital orders now consistently make up 25–30% of all orders, compared to less than 10% in late 2019. Those placing digital orders are increasingly members of that brand’s loyalty program.

Source: Paytronix, “Online-Ordering Report 2023”

YATCO CELEBRATES 30 YEARS

Yatco, a second-generation, family-owned c-store chain, eyes expansion through acquisitions, new-toindustry stores and a franchising program, while updating its look and investing in technology.

industry stores and a

Erin Del Conte • Editor-in-Chief

company

As Yatco celebrates 30 years in business, the family-owned, second-generation c-store chain has aggressive plans to double its company-operated stores and grow its franchising program. The Marlborough, Mass.-based company is currently building four new-to-industry (NTI) stores, updating its exterior branding and investing in technology from mobile payment to self-checkout kiosks.

“Currently, we are in a build phase,” said Hassan Yatim (pictured left), chief operating officer and a second-generation member of Yatco, which operates 13 c-stores in Massachusetts, Connecticut and Rhode Island.

Yatim’s parents, Tarek and Khadijeh Yatim, co-founded Yatco. Tarek helms the company as CEO and knows exactly what he wants when it comes to building stores today.

“He’s 30 years in the business, and building stores is what he loves to do at this point; finding prime estate, building beautiful stores with beautiful foodservice and quick-service restaurants available,” Yatim said.

30 YEARS OF GROWTH

Yatco can trace its roots to the early 1990s when Tarek and Khadijeh immigrated to the U.S. to escape civil war in Sierra Leone, Africa.

“When they were in Sierra Leone, my (paternal) grandfather owned a little wholesale business. When he passed away, my dad had to take it over to support his family when he was 16,” Yatim said. Tarek’s two older brothers were in the U.S. at the time, studying at Suffolk University in Boston.

As the civil war broke out in Sierra Leone, Tarek and Khadijeh married.

“My eldest brother, Mohamed, was born in Africa. (My father) had to send my mother to Lebanon during the war while she was pregnant, and she had to give birth there to the second brother, Hussein,” Yatim said.

In 1991, the family immigrated to the U.S., and moved to the Roslindale neighborhood in Boston.

“There, my parents’ work history started in retail,” Yatim said. “My mom was working at a Dunkin’ making about $4 an hour.”

His father found work at a gas station in Boston pumping gas for customers at a full-service station.

But it wasn’t long before they set out to create a business of their own.

In 1993, they acquired an abandoned Exxon gas station on Lincoln Street in Worcester, Mass., and worked in the store 16 to 18 hours a day to grow it into a successful business. One year later, the Yatims opened a second store in Worcester, on Park Ave., and then a third in Marlborough, Mass.

“They just kept working and building, and my dad’s brothers got involved at the second and third acquisitions, and the company just kept growing from there,” Yatim said.

The family formed Yatco Distribution in 2012 to supply its fuel locations as well as external customers in the New England market.

The company’s first NTI store was built in Norfolk, Mass., around 2013.

In 2021, the chain expanded into Connecticut when it acquired a single store there, and in October 2022, it grew its footprint into Rhode Island with the acquisition of a site in Chepachet, R.I.

Three years ago, the family restructured the

Top left: Tarek Yatim, CEO of Yatco, and his wife Khadijeh Yatim, who handles human resources for the chain, co-founded Yatco in 1993.

Bottom right: Brothers Hussein, Hassan and Mohamed represent the second generation of the family business.

business. Yatim’s uncles exited the company, leaving Tarek, Khadijeh and their three sons as the primary business owners.

Today, Khadijeh handles talent acquisition and oversees human resources. Hussein, the middle brother, is the vice president of marketing. Mohamed, the eldest brother, is a principal engineer at Boston Scientific but still finds time to help with the family business.

“He’s written a lot of our policies — our dress code policies, the onboarding handbook — that have helped keep us in compliance,” Yatim said.

Yatim started helping out with the family business during the summers starting when he was only 12 years old.

“I gained a mastery level understanding of a point of sale and a cash register at that time,” he said.

Even though he went on to gain a degree in chemical engineering from Northeastern University, Yatim always expected he would work in the family business one day.

“I got my MBA from Northeastern as well. Working in gas stations and convenience stores was always in the family blood, from both of my grandfathers down to us.

Yatim officially joined Yatco as chief operating officer after finishing his MBA in 2021.

Craveworthy FRANCHISING

“Many brands spend so much time and energy trying to build themselves up to then get bought out,” Majewski says. “We believe that with access to our resources and restaurant expertise early on in their journey, we can help brands reach their potential faster.”

While the franchisor is looking for all types of franchisees, Craveworthy Brands is unique in that it values first-time franchisees—and not just in theory. Majewski has set up several incentives to help those who want to achieve their dream of owning a restaurant: anyone who stays with Craveworthy Brands in a management role for three years earns the right to open up their own store. The franchisee is then entitled to two royalty-free years of operations.

“The great thing about the franchise model is that it allows people to achieve the American Dream,” Majewski said. “However, it’s painful to me where the franchise model has gone. Most brands won’t franchise with you if you don’t have experience doing it, and that means you have these huge groups that own all these different brands. We want to create a system that helps make the American Dream more accessible.”

The following pages contain details on three of the concepts currently owned by Craveworthy Brands and why they might be attractive opportunities for seasoned franchisees—and aspiring ones as well.

CRAVEWORTHY BRANDS was founded in 2022 by Gregg Majewski, former CEO of Jimmy John’s. His goal was to build a portfolio of brands with craveable food and significant white space within their category—and to provide the resources necessary to streamline their growth via franchising.

The Budlong Hot Chicken: a Chicago-Area Favorite, Now Franchising

Brand has developed a ‘cult-like’ following at its four locations.

BY CHARLIE POGACAR

NASHVILLE HOT CHICKEN HAS TAKEN the country by storm. Soon, The Budlong Hot Chicken will be doing the same—the chef-driven concept originated in the Chicagoland area in 2016 and quickly became known as the area’s go-to spot for Nashville hot.

Basing his recipes on those from famous Nashville establishments like Prince’s Hot Chicken and Hattie B’s, The Budlong Founder Jared Leonard developed an original menu that would capture authentic Southern flavor. The brand features a full menu of Nashville hot sandwiches that range from mild all the way up to “berserk!!!”, designed for only the bravest connoisseurs of spice.

Diners can choose from several different versions of Nashville hot sandwiches, including the Southern Style, smothered in pimento cheese and pickles, or the Yo Momma’s, served with black-pepper pickle relish mayo, lettuce, tomato, red onion and Budlong pickles. Other menu items include Southern staples like buttermilk biscuits, creamy mac ‘n’ cheese, scratch-made farm slaw, popcorn chicken, and a Southern-style salad.

The Budlong caught the eye of Craveworthy Brands CEO Gregg Majewski when it first opened. He became a devoted follower of the brand and its mouth-watering menu items and eventually acquired it in 2021 after COVID-related restrictions put the brand in a tough position. Majewski’s goal was to scale the brand while keeping the authenticity that makes it so unique.

LOCATIONS: 4

FRANCHISE FEE: Single Unit - $30,000; additional units$20,000 each; development fee$10,000, credited to franchise fee.

TOTAL START-UP COSTS: $178,000 to $989,500/store

“The Budlong Hot Chicken truly has a cult following in the city,” Majewski says. “Who doesn’t love fried chicken and Southern-style food? And The Budlong blows the competition out of the water.”

Majewski says one thing that sets The Budlong’s food apart is the fact that the brand gives diners the option of selecting thighs for their hot chicken sandwich—a chef hack that creates differentiation in the saturated fried-chicken segment. “It’s more of a Southern

fried chicken than it is a Nashville Hot Chicken,” Majewski says. “But you’ve got different flavor profiles and levels of spice in there to choose from. We’re going to own the Southern chicken segment because we’re differentiated from everyone else.”

The brand is still in its initial stages of growth, with four locations open. Majewski sees a world where The Budlong Hot Chicken grows across the Midwest and all over the country thanks to its craveable, standout menu and its ease of operation. Like many Craveworthy Brands’ concepts, The Budlong Hot Chicken requires very little square footage or operational complexity. Franchisees can open locations for under $200,000 in some cases.

“This is the perfect brand,” Majewski says. “This is truly the one to jump in on if you want to live the American Dream. The food is incredible, there’s so much room to grow, and the buildouts are right on the money in terms of price point.

“ THE BUDLONG BLOWS THE COMPETITION OUT OF THE WATER.”

Wing It On! Award-WinningRidingRecipe to Growth

BY CHARLIE POGACAR

UNTIL 2022, THERE HAD NEVER been a fast-casual restaurant to win a “best wing sauce” category at the annual National Buffalo Wing Festival in Buffalo, New York. That changed when Wing It On! secured the top prize for the traditional medium sauce category in September 2022.

Wing It On!’s best-in-class wing sauces are part of the reason why Craveworthy Brands purchased the brand with intentions of scaling it.

not just because of its mouth-watering food, but also due to the wing category’s white space. Majewski calls it out: his goal is to give Wing It On! all the resources it needs to grow into the second-biggest brand in the category.

With 14 locations, including a food truck, currently open and 17 more agreements signed, Wing It On! is a real contender to achieve that goal—in 2022, Wingstop was the only wing concept that appeared in the QSR Top 50. Majewski says Craveworthy’s current projections show Wing It On! checking in at 200 units within the next five years, with “100 or more in the pipeline at all times.”

“And that’s a scaled down version of our projections,” Majewski says. “That’s the sure-thing bet of locations we’ll have open by 2028. I think the sky’s the limit with this brand, because the product is there and now we’ve got the infrastructure built up around it.”

“That gave me proof of concept,” Craveworthy Brands CEO Gregg Majewski says. “Usually you see mom-andpop restaurants win in contests like that. Wing it On!’s sauce is that much better than other brands trying to grow out there. I knew we could build a Craveworthy type of experience with it.”

The Wing It On! menu also features chicken sandwiches, tenders, dumplings, french fries, and more. All of the food is built to travel—Wing It On! boasts up to 90 percent off-premises orders at its stores.

Wing It On! fit the Craveworthy Brands playbook

LOCATIONS: 14

FUTURE LOCATIONS

SIGNED: 17

FRANCHISE FEE: $30,000 for single unit, $22,4500 for second, $14,500 each additional unit

TOTAL START-UP COSTS: $210,500–$440,000/store

One of the key upsides of Wing It On!’s model is the fact that it requires minimal up-front investment—estimated between $210,500 and $440,000 per store—and very little square footage. It’s a brand that a franchisee can really run with, too: Craveworthy Brands charges a $30,000 franchise fee for a single unit, $22,500 for a second unit, and just $14,500 for each additional unit.

“This is a brand that scales everywhere,” Majewski says. “We are aiming to grow all throughout the northeast, up and down the eastern seaboard, and even into the midwest, in places like the Dallas-Fort Worth area, and we’ll soon be opening up corporate stores in Chicago. But we’re really open to a lot of different places right now.

The wing nut’s kind-of-wing joint takes aim at 200 locations in the next five years.

“ THIS IS A BRAND THAT SCALES EVERYWHERE.”

SAY HELLO TO THE WING NUT'S KIND OF WING JOINT

AMERICA'S #1 BUFFALO SAUCE

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An innovative menu to keep fans coming back for more. Our mix of classic wings, boneless tenders, chicken sandwiches, dumplings, fries and unique sides brings a diverse menu offering not seen in other“wing-joints”.

Genghis Grill is King of Its Segment

The legacy brand has a new look—and unlimited white space.

BY CHARLIE POGACAR

IN MANY WAYS, GENGHIS GRILL was before its time. Long before other brands were leaning into customization and menu items with a health halo, Genghis Grill was founded in 1998 as a design-your-own bowl concept beloved by all different types of diners.

Guests at Genghis Grill come in and select from over 80 of the freshest ingredients—from proteins to handcut veggies to signature sauces and spices. Genghis Grill has also always offered a variety of chef-curated bowls for every type of eater and dietary lifestyle.

“Genghis Grill is a really fun concept that has absolutely no competitor in the space,” says Craveworthy Brands CEO Gregg Majewski. “We are the king of this

of having to wait too long.

Under Majewski’s leadership, the brand transitioned from a full-service restaurant model to a fast-casual concept, cutting staffing from 15–20 team members during peak hours down to 5–7. Suddenly, fresh bowls were coming out in a maximum of 3–5 minutes during those peak hours. With streamlined operations, the brand is now a 50-plus unit concept and has already sold 24 franchise agreements in 2022.

“Genghis Grill is by far the easiest concept that we have,” Majewski says. “Guests come down the line and point to what they want and it’s cooked in the time it takes to cook a burger.”

When taking a look at the brand’s menu prices, it’s easy to see another reason why guests love Genghis Grill. The concept offers 20 of its bowls for under $10—Chef Bowls and Fried Rice Bowls are available for $9.99 or less. The brand recently launched a new “VALUEBOWLS” lineup with bowls priced under $8. There’s plenty of margin left for the operator, too: the COGS for VALUEBOWLS run between 18–23 percent, while Chef Bowls’ COGS average between 15–30 percent.

space already. We have so much white space because nobody does it like we do.”

When Majewski and his team acquired Genghis Grill in 2021, Majewski put his Jimmy John’s hat on. As the former CEO of the “freaky fast” sandwich concept, Majewski saw a world where Genghis Grill customers could have all of the upside of customizing their own bowl and watching it get cooked to order with none of the downside

Another area where Genghis Grill continues to grow is its off-premise ordering channels. Genghis Grill locations currently do about 30 percent of their orders to-go, with goals to grow that number to 50 percent at future stores. Best of all, Genghis Grill’s intentional move away from solely Asian stir-fry and push towards more global influences has showcased the capacity of the ingredients—and franchisees benefit from the new menu with boosted productivity, reduced complexity, and increased profitability.

“The white space is all ours in this category,” Majewski says. “The way customers are eating now, everything is customized, they want food on the go. This is truly the perfect concept to fill both of those needs.” CF

“GENGHIS GRILL IS BY FAR THE EASIEST CONCEPT THAT WE HAVE.”

A TRUSTED BRAND

Today, Genghis Grill has more than 50 locations open across the country, serving 3.2 million customers annually. We’re on our way to offer customization, freshness and fun in more communities across the nation.

OPERATIONAL EXPERTISE

Genghis Grill owns and operates over 50% of our current locations. You can say we're a brand built by operators for operators and we'll pass our knowledge and insight to you to ensure your success.

SUPPORT FROM DAY 1

We're not successful unless you are. Genghis Grill offers personalized and comprehensive start up and on-going support to franchise owners from day one. Whether it's real estate selection, marketing or on-the-job training, we have your back.

SATISFY

FRANCHISING CRAVINGS

LEGACY AND EMERGING BRANDS!

Yatco is building four new-to-industry stores and updating the interiors of its existing sites with a unifying color scheme. Its new builds feature laminate wood floors for a modern look.

DESIGN PLANS

Yatco stores vary in size, but the chain’s goal is to build sites that are 4,000 to 5,000 square feet.

At press time construction was underway on an NTI store in Leicester, Mass., and construction was expected to start soon on a location in Uxbridge, Mass. Yatco also recently acquired the license to build its fifth c-store in Worcester, Mass. Yatim anticipates construction should begin on that store in three to four months. Yatco also has plans to build a site in Taunton, Mass.

“The new builds have really nice floors. They look like laminate wood. They look very elegant,” Yatim said. “We’re using materials that are easy to update, so if there’s a crack or if anything breaks, you’re not having to redo the entire floor.”

Legacy sites are getting a refresh as well. Yatco shortened its name from Yatco Food Mart to Yatco in 2021. Ever since then, Yatco has been reimaging the exterior of its stores to feature the updated branding. The store exteriors now feature a “Y” at the top of the front door that is made up of blue, green and white LED lights.

“That really pops out,” Yatim then continued. “It’s very bright.”

Yatco has also been busy updating the interiors of its locations over the past two years. It’s working on unifying the color scheme inside its stores, transitioning stores to its colors, white, blue and green. The foodservice areas are also receiving a facelift that includes the addition of granite counters and whitetiled walls.

“The tile is all one piece. It’s white, and it looks really clean,” Yatim said. “You want your foodservice area to represent cleanliness.”

Yatco also installed LED TVs, which hang from the ceiling in its foodservice area to highlight promotions on food and beverages. The TVs are also situated between the gondolas on the sales floor to alert customers to deals on snacks and candy.

“We’re trying to future-proof the store as much as we can,” Yatim said, an idea that informs how it

approaches NTI stores as well. Yatco is building new stores with similar layouts and features, which will make the business easier to scale going forward. That includes having a set outline for where each section of the store is situated, so as Yatco grows it can copy and paste that formula from store to store.

“It’s a much quicker way for us to scale up and get these builds done,” Yatim said.

Yatco is looking to model future stores off the best features of its Boylston, Mass., store, and its Webster Square site in Worcester.

The Boylston site is one of the chain’s premier stores and measures 5,000 square feet. It features a full foodservice section and a Dunkin’. In the forecourt, it includes a diesel island. The site’s gas sales by volume are on par with major cities, Yatim noted.

“(Webster Square) has the best register area. It’s huge, where the two sales associates have a lot of room. There’s enough space for all the tobacco and all the lottery. We don’t really need to decide on what needs to be cut out,” Yatim said.

In the Webster Square store, which measures 4,500 square feet, the office storage and the cooking area are located behind the front counter. The isolated area helps prevent theft as customers can’t accidentally wander into the office, and because the office is close to the front counter, the manager is nearby if the cashier needs assistance.

In the forecourt, Yatco partners with Gulf at all Massachusetts sites and its Connecticut store. Its Rhode Island site is branded Sunoco. The chain also distributes fuel through its Yatco Distribution arm to five states in New England.

While Yatco doesn’t currently offer electric vehicle (EV) charging, it plans to add it in the next year.

“There’s a lot more adoption for it, and it’s just another market that we need to cater to,” Yatim said of EV charging. “It’s coming, for sure.”

FOODSERVICE OFFERING

Yatco’s Leicester site, which is currently under construction, is set to feature a full-service, 2,400-squarefoot Burger King.

Yatco partners with several quick-service restaurants, including Gourmet Donuts in two stores, Dunkin’ in eight locations and Subway in two stores. All of the Dunkin’s have drive-throughs.

Additionally, Yatco has a Pizza Mike’s at its Chaplin, Conn., site.

“Their second site is in our store, and it’s one of the best pizzas in Connecticut, and it’s now known,” Yatim said. “People drive from pretty far to our store to get Pizza Mike’s.”

Yatco also features a Mighty Chicken program through its main wholesaler at several locations. It also serves up burgers, taquitos, quesadillas and Tornados through its wholesaler. Its Webster Square and Boylston sites feature a Smoodi machine, which serves up smoothies with all natural ingredients.

“You take the cup out of the fridge with the flavor you want — you see all the ingredients inside, all the

vegetables, all the fruit. You put (the cup) inside a closed compartment, and you see the water mixed in, you see the blending. It’s all (mixed) in front of you, and then it pops out your cup,” Yatim said.

Yatco also sells fresh-baked cookies, which are available in the foodservice section and also at the front counter.

The company’s Rhode Island site features a beanto-cup coffee program.

“That store does really well with coffee,” Yatim explained. “That site is in the center of a town. It’s a very tight-knit community, and there are no other restaurants or coffee shops in the area. So, we sell a lot of coffee there. People come there strictly for their coffee.”

All stores feature open-air coolers with grab-andgo sandwiches, burritos, breakfast sandwiches, fruit cups, hard-boiled eggs, and packages of higher-end meats and cheeses. The stores feature microwaves where customers can heat up the sandwiches.

TECHNOLOGY FOCUSED

Yatco’s Yatco Rewards app debuted 16 months ago. Already the chain has 10,000 members on its app.

“Through this app, you can build up points through your purchases, get gas discounts, get discounts on in-store purchases and get free stuff in-store around holiday time,” Yatim said. “We do special things, like on Super Bowl Sunday, we’ll do buy a bag of Tostitos, get dip free. Last Easter we did 30 cents off a gallon, and that was a big deal when the gas prices were almost $6.”

Customers receive a 15-cents-per-gallon discount on their first fill-up following signing up for the loyalty program.

Yatco is preparing to offer order ahead and delivery through its Yatco Rewards app. All items in the c-store including food but excluding tobacco and lottery will be available for delivery. Customers will order through the app, and Yatco employees will collect the order, which will then be delivered by a third-party delivery service like Grubhub or Uber Eats. Yatco is currently developing the infrastructure to support the rollout, including testing iPads for employees that alert them when a customer places an order. The iPads are expected to roll out to stores by the end of this year.

Yatco is also investing in self-checkout kiosks, which are expected to roll out to its Boylston and Webster Square locations by the end of 2023.

In 2024, Yatco plans to integrate mobile payment into its app.

Yatco shortened its name from Yatco Food Mart to Yatco in 2021. Yatco is now reimaging the exterior of its stores to remove the words “Food Mart” from its name.

Yatco introduced its Yatco Rewards app 16 months ago. Now Yatco is preparing to launch order ahead and delivery through its Yatco Rewards app. All items in the c-store except for tobacco and lottery are expected to be available for delivery.

“It’s similar to the Starbucks model. You load your credit card or money straight onto the app,” he said.

Also, in 2024, Yatco is set to launch mobile fueling via its Yatco Rewards app, which will allow customers to select their pump number and type of gas and pay right from their phone.

“They won’t have to touch the buttons on the screen,” Yatim said.

Since the COVID-19 pandemic began, a lot of customers don’t want to touch the screens or buttons at the gas pump, Yatim pointed out.

“Customers use wipes to wipe the screen,” he said. “It can cause damage, if people are using certain chemicals to wipe down the pump screen.”

The mobile fueling option is expected to be popular with customers, but it’s also expected to protect the longevity of the dispenser screens.

COMPANY CULTURE

A big part of Yatco’s company culture is ensuring employees are treated well, and the chain has been rewarded with loyal long-term employees.

It offers an incentive program for employees through its Yatco Rewards app, which gives them 25 cents off per gallon on one gas fill-up per week. Yatco also awards bonuses to associates when a store sells a winning lottery ticket and offers an aggressive bonus structure for sales associates.

“We aggressively incentivize employees because our success is on our people, and the people who run the cash registers or who clean the bathrooms are the most important people,” he said.

The family spends time working in the stores and training employees.

“I actually trained stores on cleaning the bathroom myself because when the owners are out there on their hands and knees cleaning or ringing up customers at the register … then employees know that they’re working for people and for a chain that cares and practices what they preach,” Yatim said.

The average tenure for Yatco managers is above 10 years, with its two longest managers celebrating 21 and 20 years with the business. One general manager has been with the business for 25 years.

“The last two to three years, we’ve had about

10 associates cross the one-and-a-half to two-year mark. In the sales associate workforce, that’s not common,” he said.

Yatco also pays above the minimum wage, including sign-on bonuses in some instances, and offers employees a path from the associate level up to management.

“I would say you get better people applying potentially when you’re raising your store’s minimum wage and you train them a little more hands on. And you get the retention because you incentivize them through the bonus structure, through the ability to grow, because I don’t consider working at Yatco a job for anybody. It’s a career.”

Within the next five years, Yatco is looking to double in size. To prepare, Yatco is opening new roles as it expands its office staff and builds out its back-office infrastructure.

“People want to work for us now, so we’re investing in these positions in our backend office, and we’re getting successful individuals in this industry to join us, whether that be in pricebook, in marketing, in sales,” Yatim said.

“That’s helping us get bigger because you can’t scale without having that backend infrastructure taken care of and the manpower on the backend,” he added.

GROWTH OUTLOOK

As Yatco looks ahead to the future, it plans to grow through franchising, acquisitions and new store builds.

After growing through single-store acquisitions, it’s now looking at five- or six-site portfolios, but it hasn’t found the right fit yet.

Yatco’s franchising model is also a focus going forward. It currently has one Yatco franchisee in Orange, Mass., and it leases a second site to an unbranded operator. It’s currently developing standards of operations for its franchisees so it can scale the program.

“Going forward with our franchising, we want to make it a bit more stringent where we do score our franchisees,” Yatim said.

As part of that initiative, Yatco developed an internal mystery shopper program for all of its locations, with tough criteria to motivate managers to raise the bar. Yatim sees the franchising model as a way for the company to acquire sites quickly.

Through the distribution business, Tarek knows hundreds of gas station owners in New England, and when mom-and-pop operators are looking to sell, he often gets a call.

“We can’t just buy (and run) 20 stores at once at the size we are currently,” Yatim said. But he sees an opportunity in purchasing stores but leasing them out to other operators.

Yatim noted Yatco is looking to lay the ground-

work now to allow it to expand into more states and still have a good eye on the operations of the convenience stores.

“We want to make sure that as we expand, we don’t lose that quality,” he said.

NAVIGATING A FAMILY BUSINESS

Navigating a family business can have its challenges, but Yatim said that the key is to avoid discussing the business outside of work unless it is absolutely necessary.

“Having family time is important,” Yatim elaborated. “Certain things, you have to (discuss), but it can consume you. If you’re doing it outside of work, your relationship becomes business. There’s no separation.”

Yatim also noted transparency in the information you’re relaying to family members is particularly important to avoiding confusion or conflict.

But being a part of a family business also has great benefits.

“You grow something together as a family,” Yatim said. “There’s always beauty in the struggle, and with struggle comes accomplishments as well. My parents went through immense struggle when they were younger trying to start this business, and they’ve grown it into what it is today. I’m very proud of what my parents have done and appreciate everything they did.” CSD

Yatco is looking to expand through a combination of new-to-industry stores and acquisitions, and it also plans to start growing its franchising program.

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Smoking cigars casues lung cancer, heart disease, and emphysema, and may complicate pregnancy.

Keeping an Eye on Vape, Cigars

Cigars in particular are a question mark with c-stores as they wait on the FDA to make a decision regarding a flavor ban this fall and how consumers might respond. Additionally, vape is constantly on retailers’ radars since FDA is still issuing marketing denial orders to brands and cracking down on those who sell and market those products.

The FDA served warning letters to 30 retail-

ers in May for selling Puff and Hyde brand disposable e-cigarettes as part of a nationwide effort to halt the sale of unauthorized vape products. In June, FDA issued 180 warning letters to retailers for selling Elf Bar and Esco Bars e-cigarettes illegally.

“It’s getting tougher for our industry to survive; we need everyone to work together and overcome obstacles, such as government regulations, by getting involved with a form of advocacy,” said Lance Klatt, executive director of the Minnesota Service Station & Convenience Store Association.

Minnesota proposed a statewide ban of flavored tobacco in February, with some cities already having bans or restrictions on flavored tobacco in place.

Massachusetts was the first state to ban flavored tobacco, followed by California.

C-store retailers await the FDA’s fall verdict on the potential cigar flavor ban, while monitoring FDA vape product marketing decisions, all while continuing to stock customer favorites at the backbar.

Emily Boes • Senior Editor

Concern for the tobacco category isn’t new among retailers, and as the Food and Drug Administration (FDA) proposes regulations and issues marketing decisions, c-store operators are continuously assessing inventory.

Vape, Cigar Unit Sales Fall

While cigar dollar sales remained relatively flat, electronic smoking device dollar sales increased by 4.3%. Unit sales for both categories dropped — 8.9% for electronic smoking devices and 1.3% for cigars. The price per unit for both categories saw increases.

VAPE AND CIGAR TRENDS

For the latest 52 weeks ending June 18, cigar dollar sales remained flat at convenience stores (down 0.3%) at $4 billion, according to Circana, a Chicago-based market research firm. Unit sales dipped a slight 1.3%.

At Grub Mart’s 11 stores in Alabama, flavored cigars are leading the tobacco subcategory.

“Cigar (smokers) seem to be a little bit more fluid in what they will smoke. It could be strawberry this week, kiwi or whatever the next week. It could be different,” said Brian Young, vice president of Young Oil, operator of Grub Mart.

So far, Alabama has not experienced any flavor bans at the state level. However, FDA’s crackdown on certain vapes has kept the chain on its toes. For example, Grub Mart carried Elf Bar products, many of which are now no longer legal.

Vuse is a top seller for the chain, however, with the tobacco flavor being the most popular. “We’re over a hundred a week or so in (pods),” said Young. “… It’s really been a good mover for us.”

Electronic smoking devices saw a 4.3% uptick in dollar sales at c-stores for the 52 weeks ending June 18, reaching $7.09 billion, per Circana. Unit sales, on the other hand, dropped 8.9% to $419 million. This is likely due to a 14.5% increase in the price per unit.

At Grub Mart, however, Young believes inflation, particularly the higher cost of cigarettes now, is driving customers to vapes.

“Our vape business has continued to grow. We have not really had (price) increases in it. We’ve had (increases) in the others, and it may be driving people to the vapes more. … It seems like in our marketplace, our Newports have really hit the wall in what people will accept on the price,”

Young said. He added that Grub Mart has seen a pretty large decrease in two of the biggest fullpriced cigarette brands that it sells.

Trends have clearly been influenced by inflation, which is leading many c-store retailers to take stock of their backbars.

“Retailers cannot absorb higher costs of goods and increases in labor. That’s always a factor. Minnesota just passed a gas tax increase tied to inflation, not the consumer price index. It may hurt inside store sales, including tobacco sales,” said Klatt.

In Minnesota c-stores, vape represents a small portion of sales, although they do sell a variety of closed systems.

Cigars are also becoming a smaller part of the tobacco business at Minnesota c-stores due to higher taxes as well as pack restrictions and flavor bans. CSD

FAST FACTS:

• Cigar dollar sales stayed flat, but unit sales decreased 1.3% for the 52 weeks ending June 18, per Circana.

• Vape unit sales saw an 8.9% drop for the same time period and a 14.5% uplift in price per unit.

• The Food and Drug Administration is expected to make a decision on the proposed flavored cigar ban in the fall.

Source: Circana Total U.S. Convenience data for the 52 weeks ending June 18, 2023

Lifting Beverage Sales Into Autumn

Beverage sales are heating up as c-stores prepare for the summer-tofall transition. Popular fall flavors, new products and promotions can help keep customers returning for drink purchases as summer ends.

Summer came early for much of the nation this year when heat domes settled over cities from the Pacific Northwest to the Eastern Seaboard as early as May and stuck around for most of the season. For convenience stores, hot temperatures typically translate into increased sales of cold beverages — packaged from the cold vault as well as dispensed carbonated sodas and frozen blended drinks.

Anne Baye Ericksen • Contributing Editor

For c-stores, hot temperatures typically translate into increased sales of cold beverages — packaged from the cold vault as well as carbonated sodas and frozen blended drinks.

“On the dispensed side, guests are continuing to move back toward fountain beverages after the impact of the pandemic over the last few years. Convenience retailers are once again investing in aggressive fountain promotions as a traffic-driving tactic this summer. At Casey’s, we are offering an 89-cent medium fountain or frozen dispensed beverage across our footprint this summer selling season,” said Chris Stewart, vice president of merchandising for Casey’s. The Ankeny, Iowa-based convenience store chain operates more than 2,500 stores across 16 states.

With September around the corner, does it pay for c-stores to turn their attention to fall beverages before the temperature outside drops?

MARKETING VARIETY

An industry review released by Goldman Sachs in June, based on NielsenIQ data, revealed carbonated beverages in all retail channels, including convenience stores, racked up more than $39 billion over the previous 52 weeks ending June 3. Energy drinks also brought in more than $19 billion, as did

Drinks Up

bottled water. Sport drinks posted a respectable $10.1 billion. Tea, coffee and sparkling flavored waters also earned billions. Although some volumes were down, several subcategories experienced double-digit growth for the same period, including low-calorie carbonated beverages as well as energy and sport drinks.

Retailers enjoy sales gains across beverage product families.

Of course, category managers hope a prolonged hot summer this year means hot sales, but fall spices things up for the beverage category too. It’s the time of year when consumer desire for warm flavors kicks in. However, Stewart noted that in-store traffic tends to cool off somewhat in autumn, which puts more onus on beverage promotions to grab consumers’ attention.

“In relation to preparation, we will focus on fall flavor favorites, like pumpkin, along with ensuring our equipment is calibrated to be ready to serve the increased guest interest,” he explained.

Pumptoppers, bright oversized posters and other signage certainly highlight beverage deals, but loyalty programs create lanes to send marketing messages directly to customers. A growing population of c-stores have

Source: Goldman Sachs, Americas Beverages: NielsenIQ data through June 3 — Non-alcoholic beverage sales strong and accelerated sequentially, driven by improved volumes, received June 13, 2023

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revamped their programs to deliver more personal incentives, such as announcing deals on individuals’ favorite thirst quenchers.

“Leveraging loyalty to drive differentiation continues to be an important tool for retailers in an increasingly competitive market,” said Stewart.

“Given the daily sales volume of beverages (both non-alcohol and dispensed), it creates an opportunity to drive traffic and repeat business.” The Casey’s Rewards program boasts more than 6.5 million members.

Loyalty programs also offer a prime platform to introduce new beverage products. According to

FAST FACTS:

• Twenty percent of consumers either closely or occasionally follow a sober-curious lifestyle, per NielsenIQ.

• Favorite fall flavors and promotions can boost beverage sales heading into autumn.

• Loyalty programs also offer a prime platform to introduce new beverage products.

the NielsenIQ “Sip Into Summer” report, some of the hottest trends in drinks right now have less to do with flavors and more to do with purpose. For example, the authors found that more than 20% of consumers either closely or occasionally follow a sober-curious lifestyle, thus promoting the emerging field of mocktails. What’s more, people are interested in creating their own mocktail recipes, and therefore, are keen on buying juices, tonics and mixers. Another trend highlighted is the demand for plant-based products poured from biodegradable packaging.

“Most of the successful new products coming into the marketplace are healthier, and in many cases, offer functional benefits as well,” noted Gary Hemphill, managing director of research for the Beverage Marketing Corp.

He also emphasized the unique role c-stores play in piquing consumer curiosity and why it pays to focus on new-product promotions any time of year.

“Convenience stores in particular are a key channel for new products because consumers are more likely to experiment with different drinks sold single-serve,” Hemphill explained. “Convenience store consumers are often more likely to experiment with their product choices than consumers in more take-home oriented channels like grocery stores.” CSD

Health and Beauty Product Sales Soar

The demand for self-care products and over-thecounter medication in c-stores keeps health and beauty sales rising.

Zhane Isom • Associate Editor

Now that the days of wearing face masks and using large amounts of hand sanitizer are over, consumers are getting back to their normal routines of using self-care products and over-the-counter medication when needed. With demand rising for self-care products and medicine, retailers are finding new ways to rearrange their store shelves to meet these requests.

Revenue in the beauty and personal care market amounts to $92.79 billion in 2023. The market is expected to grow by a compound annual growth rate of 2.52% from 2023 to 2028, Statista stated in its 2023 Markets Insight Report. However, the report also noted that personal care is the market's largest segment, with a market value of $42.18 billion in 2023.

“Health and beauty is one category that is up for us this year. Both dollar and unit sales are up, with dollar sales up 16.92% and unit sales up 7.75%,” said Jennifer Whitman, category manager for Rotten Robbie, which operates 37 stores in northern California. “Most of our center of store categories, with a few exceptions, are down in unit sales this year, but health and beauty is booming in all of our locations.”

The Army and Air Force Exchange, which operates more than 580 Express stores, has also seen an increase in health and beauty product sales.

Kye Corn, Army and Air Force Exchange Service divisional merchandising manager, also mentioned that self-care products have been driving sales in stores.

“Sales are trending up year-to-date. The Exchange expects to see health and beauty sales increase in the high single digits for the year,” said Corn. “Self-care, immunity support and respiratory treatment products are among the top gainers year-to-date in 2023.”

HEALTH AND BEAUTY TRENDS

Retailers are seeing smaller sample sizes specifically flying off shelves.

“Customers seem to be waiting until they need something before purchasing it. They’re not taking advantage of sales on larger sizes at a larger price point and stocking up,” said Whitman. “Trial-sized everything is up in units. Regular-sized items such as hand and body lotions, medications and deodorant are down in units.”

Whitman also noted that she anticipates this trend to continue partly due to the unstable economy and consumers’ reluctance to spend a lot of money.

TACKLING CONSUMER DEMANDS

Supply chain issues that began during the height of the COVID-19 pandemic have largely resolved, which means the biggest challenge for retailers now is making sure they have the right products and enough space on their shelves.

“Finding the space to expand is the real challenge,” said Whitman. “With an uncertain economy,

it is more important than ever to take a hard look at your product assortment across center store and really hone it in. Whether more space for health and beauty care is available remains to be seen. For us, that will probably be a mid-2024 decision.”

Both Army and Air Force Exchange and Rotten Robbie are taking a second look at their health and beauty section to make changes to offset demands.

“The Exchange offers a broad assortment of products in all health and beauty categories. In addition to leading national brands, we also offer Exchange Select, a private-label brand that typically saves shoppers money,” said Corn. “The Exchange keeps its assortments fresh with new products while continuing to offer top-selling brands.”

Rotten Robbie offers most of its health and beauty products in trial sizes, including gastrointestinal, hand sanitizer and mouthwash. The c-store also provides an assortment of cough drops, which are top sellers, according to Whitman.

“Every year, we tweak our product assortment based on sales/trends,” she said. “We didn’t change much in 2023, but I’m considering eliminating or severely cutting back SKUs in vitamins/ supplements for our 2024 planogram in the spring. They are just not selling at all. I will most likely expand cough drops and feminine hygiene.”

Nonetheless, retailers should continue to pay attention to trends and stock their shelves accordingly to see health and beauty sales rise.

“I’m anticipating that this upward trend in units for health and beauty products will continue through the year until the economy stabilizes and retailers can go back to stocking up on larger sizes,” said Whitman. “I believe that the category growth can be as much as 10% compared to last year.” CSD

Revenue in the beauty and personal care market amounts to $92.79 billion in 2023 and is expected to grow by a compound annual growth rate of 2.52% from 2023 to 2028.

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Building Dynamic Foodservice Dayparts

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Marilyn Odesser-Torpey • Associate Editor

Which daypart drives the most sales for a c-store often depends on the market, but innovation, promotions and offering hot-ticket items throughout the day can help retailers lift foodservice sales across breakfast, lunch and dinner. The breakfast daypart in particular offers a big opportunity for c-stores, and operators are finding ways to capitalize on this trend.

Lunch has traditionally been the hero at Kwik Stop’s c-store locations in Nebraska and Colorado. But over the past two years, the company has been achieving great success with building its breakfast business, according to M. David May, director of food service, Kwik Stop, which operates 27 locations, 13 of which offer foodservice.

breakfast, lunch or dinner is prime time for foodservice sales, c-store retailers are creating opportunities to grow other dayparts as well.

SETS UP FAST PAYS OFF FASTER

To have a successful daypartspanning foodservice program, retailers should consider the program in its entirety rather than focusing on individual items.

“In 2020 I started to look at where we could expand and saw that we had high traffic counts in the morning as customers would get gas and come into the stores for coffee, juice and energy drinks,” May stated. “At that time, we had one breakfast burrito and three store-made sandwiches in our cold case for customers to heat up in the microwave.”

May decided that customers might prefer items that were already warm and a wider range of choices, so he bumped up the breakfast burrito offerings to three and sold them from the hot case. Between 2021 and 2022, breakfast sales jumped about 15%, he reported.

Buoyed by customer response, Kwik Stop introduced biscuits and gravy; slices of breakfast pizza; a chorizo empanada; and a sausage, egg and cheese crispito. The most recent addition to the chain’s breakfast menu is a waffle, egg and cheese sandwich.

From 2022 to 2023, the morning daypart experienced another 5% increase in sales, May revealed. For 2023, sales are on track to grow an additional 10.5%.

Before the morning initiatives, breakfast accounted for only 2-5% of the stores’ total deli sales. Now it brings in 12-13% of sales.

Breakfast items can get 65% gross profit margin (GPM) even with inflation, so “convenience stores that don’t have a strong morning daypart are losing out,” May emphasized.

To have a successful daypart-spanning food-

service program, c-store retailers should consider the program in its entirety rather than trying to assign a specific GPM on every item, he suggested. He gave the example of mozzarella sticks, a lunch item that sells at $4.99, but should cost a dollar more.

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“The GPM on the mozzarella sticks is lower than it should be, but I know I won’t sell very many of them at the higher price,” he explained. “However, the higher GPMs for the morning items make up for that.”

FURTHERING FOODSERVICE EXPANSION

At three c-stores in Minnesota operated by Montevideo Falls Cenex, daypart strength in foodservice depends on each store’s individual market area.

“At our 212 Travel Plaza breakfast is available all day, while at our Highway 7 and Granite Falls stores, midday is our strongest time,” explained Robin Enevoldsen, general manager, Montevideo Falls Cenex.

But, she added, recently even the two lunch-centric stores are seeing a surge in breakfast sales.

“At one store we now go through four bags of wings and nine whole pizzas before 9 a.m.,” she pointed out.

To meet the breakfast demand, the stores put all their food offerings out in the warmer for customers to grab and go first thing in the morning. Hunt Brothers Pizza is an integral part of all three stores’

FAST FACTS:

• C-store operators should look at gross profit margins across all dayparts rather than focusing on individual items.

• Thinking outside the box for products and promotions can increase sales.

• Expanding offerings to span dayparts can fulfill customer demand.

foodservice programs.

“Customers buy the pizza for breakfast, lunch and dinner,” Enevoldsen noted. “Retailers shouldn’t be afraid to try something different; for example, giving customers chicken wings and strips for breakfast if they want them.”

She stated that the stores are constantly exploring different marketing strategies such as coupons and other incentives.

DISTINCTIVE OFFERINGS

At Dandy Mini Mart, which operates 65 c-stores — 60 with foodservice — in Pennsylvania and New York, the entire menu, including breakfast items, is available all day. The hot case is always stocked with pizza, the stores’ No. 1 selling food item, and grab-and-go sandwiches, said James Fry, Dandy’s foodservice director.

“Lunch is still the strongest daypart, but breakfast does well too because we offer fresh food at good value,” Fry noted.

To help continue to build morning sales, Dandy offers promotions such as two-for-$5 sandwiches and breakfast sandwich with coffee value bundles. Fry added that the dinner daypart is fueled by purchases of whole pizzas.

Innovative spins on popular items keep Dandy’s food offerings distinctive and “outside the box,” he said. Pizza toppings, for example, include four cheese, ultimate garlic and pickle.

Limited-time offers, such as a recent barbecue brisket topping, can earn spots on the permanent menu if they become customer favorites. CSD

Expanding offerings to span dayparts can fulfill customer demands.

May Delivers Delicious Eats at Kwik Stop

M. David May discusses the ins and outs of producing high volumes of quality fresh food fast and in a small area.

Erin Del Conte • Editor-in-Chief

Mastering foodservice in a small space like a convenience store is no easy feat, but c-store foodservice directors and chefs continue to make it look easy as they cook up innovative menu items. CStore Decisions caught up with M. David May, foodservice director at Kwik Stop, which operates 27 stores in Nebraska and Colorado, to learn more about how he maximizes success when cooking in a small footprint.

CStore Decisions (CSD): How long have you been the foodservice director at Kwik Stop and what attracted you to the position?

M. David May (MDM): I have been the foodservice director for over four years at Kwik Stop. I have been with Kwik Stop since October 2015, working in operations as a store manager and then a district manager. I was offered the position (of foodservice director) in February 2019 by our CEO and president, Dan O’Neill. When he offered the position to me, I was excited about the challenge of implementing a new chicken franchise into six of the stores, making the foodservice program profitable, (creating) consistency of product offerings between all foodservice stores and exceeding customers’ expectations of being able to get quality, fresh food from a convenience store.

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CSD: What’s your favorite thing about overseeing foodservice for a convenience store?

MDM: I love going out to the stores on a daily basis and seeing the directives that were given actually being implemented and providing training and development when needed to new deli managers or deli clerks.

CSD: Tell me a bit about your background in foodservice. How does that background serve you in a c-store setting?

MDM: At the time of accepting the position, I had not been in foodservice for over 30 years. When I was 13 years old, I started as a dishwasher in my hometown café and then moved up to be a fry cook at the age of 16. A lot has changed in foodservice since then. For the majority of my working life, I have been an executive in the customer service/sales business. My past experiences enabled me to move into the retail setting in the convenience store industry with very little acclimation. My main goal every day is to make every customer experience a great one. Taking this goal and applying it to foodservice is important as it will translate to repeat customers and make Kwik Stop c-stores a food destination versus just a place to fill up with fuel and get something to drink.

CSD: Tell me about the food offering at Kwik Stop.

MDM: Kwik Stop currently offers foodservice at 13 of its 27 stores, and then we have a centrally located commissary that makes breakfast items for six additional stores in North Platte, Neb. At six foodservice stores, we have Krispy Krunchy Chicken (KKC). At 10

foodservice stores, we have PC Pizza (formally known as Piccadilly Pizza). At 12 of the stores, we have our Kwik and Fresh proprietary program. And at four stores, we have our Kwik and Fresh Mexi proprietary program, which is a made-to-order (MTO) program. We have a variety of options at each of our stores, including breakfast burritos and sandwiches, storemade 100% ground-beef burgers, fries, chicken nuggets, mozzarella sticks, jalapeño poppers, macand-cheese bacon bites, tater kegs etc. At the Kwik and Fresh Mexi stores we offer MTO tacos, burritos, salads and loaded nachos. At our KKC stores we offer tenders, bone-in fried chicken, party wings, boneless wings, chicken sandwiches, fish, shrimp and biscuits, plus an assortment of sides, including mac and cheese, mashed potatoes and gravy, and french fries. At our PC Pizza stores we offer large pizzas, take-andbake pizzas and slices of pizza.

CSD: Are you adding anything new to the foodservice offering?

MDM: I am always on the hunt for new ideas. Currently I am testing a Pork Loin and Bacon Kabob and a Store-Made Waffle Breakfast Sandwich that is made with maple syrup-infused waffles with savory sausage, black pepper, egg and cheese. In the near future, I plan on expanding the Kwik and Fresh food offerings with store-made deli sub sandwiches that we will premake and place in our cold grab-and-go cases.

CSD: What are the biggest challenges when cooking/preparing food in a convenience store?

MDM: Space. The majority of our stores have a small

Kwik Stop currently offers foodservice at 13 of its 27 stores, including a centrally located commissary that makes breakfast items for six additional stores in North Platte, Neb., along with a Krispy Krunchy Chicken at six foodservice stores and PC Pizza at 10 c-store locations.

space dedicated to the deli. We have been very creative on where and how we place equipment to maximize our cooking space and prep space.

In your opinion, what are some of the musthave kinds of equipment for a c-store foodser-

The must-have equipment for a successful foodservice operation in a c-store setting includes a deep fryer with built-in filtering capabilities, rapid cook convection oven, steam table, cold prep table,

What are some of the things you look for in convenience store foodservice equipment?

First, I determine the amount of room that we have to allocate to the piece of equipment. Then I look for the most efficient piece of equipment that can handle the high volume of food. After I have found the model I am interested in, I check out the reputation of the company by asking for customer references. The last thing I want to do is invest financial capital into a piece of equipment that starts needing service after limited use.

WhyWhat do you wish you had known when you were first getting started in c-store foodservice?

I had no idea how many things you have to manage in order to grow foodservice at a profitable rate. This includes supply chain interruptions, recipe costs, labor costs, gross profit margin percentage, waste percentage, monthly foodservice inventories and, most importantly, making sure each and every customer is highly satisfied with the food they purchased from our delis. It is like running a full-service restaurant in a 100-square-foot space.

Anything you want to add?

Foodservice in a c-store is fun but challenging every day. When you are not at a particular store, you have to have trust that the employees working at that store are doing the right thing every time, from providing great customer service to providing high-quality food options. CSD

It is like running a fullservice restaurant in a 100-square-foot space.“

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Convenience Drives Contactless Payments in C-Stores

When COVID-19 arrived in March 2020, retailers rushed to implement contactless payment options to keep shoppers and employees safe. Three years later, customer demand for contactless payment continues to increase given its speed and convenience.

To accommodate the increased use of contactless payments, retailers are enhancing or upgrading their systems while taking data security into consideration to keep customers’ information safe.

It is estimated that the global contactless payment market will be valued at $90.6 billion by 2032, up from $22.4 billion in 2022. It is expected to exhibit a compound annual growth rate of 15.4% during the forecast period 2023 to 2032, according to Market. US’s Global Contactless Payments Market Report.

Technological advances and retailer adoption are expected to help spur growth in the segment.

“Simplicity, which goes hand in hand with speed, is the most important feature for customers,” said Perry

Kramer, managing partner for retail management consulting firm Retail Consulting Partners. “This is often best facilitated by allowing the customer to tap before the conclusion of entering the items, and by minimizing the excessive questions that many retailers clutter their payment terminal with at the time of checkout.”

At Pete’s Convenient Stores, which has 53 locations in Missouri, Kansas and Oklahoma, more customers are using its Express Lanes for self-checkout because they’re convenient and get them out the door faster. The Express Lanes accept cash, credit and EBT (electronic benefit transfer). The c-stores also feature scanand-go, which customers can use to scan and pay for their purchases through their smartphones. Both offer a contactless solution in the sense that customers don’t have to interact with employees.

“We found that the customer likes to have both cash and credit options. They also want to have the capabilities to pay for fuel through the Express Lanes,”

As the demand for contactless payment continues to grow, retailers are enhancing their systems while keeping an eye on data security.

Zhane Isom • Associate Editor

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said Brenda Elsworth, chief operating officer for Pete’s Convenient Stores. “In some of our stores, a second and third Express Lane were installed as customers preferred the Express Lanes.”

Elsworth has also seen an upward trend in customers’ use of contactless payment and a downward trend in lines at the point of sale, which has caused the convenience store to enhance its contactless payment systems.

“We are banking our Express Lanes together at the main pay spots, and we are also running more promotions online to incentivize the customers to use our online payment system,” said Elsworth.

THE NEW NORMAL

Now that contactless payment is offered in most convenience stores, customers are more frequently seeking it out over more traditional forms of payment at the register.

“We have reached a tipping point with customers that they now see some type of contactless payment as a default process,” said Kramer. “It could be a contactless credit card, QR code on a phone, Apple Pay or Samsung Pay. This has been driven by the expansion of contactless hardware and software into almost all retail locations.”

Nonetheless, Kramer noted that even though

most stores have contactless payments, some retailers still have not fully adopted the technology. Some retailers have been slow to adopt the technology because they want to get every use out of their payment hardware and have little desire to deal with the challenges that new highly complex software brings, he suggested.

CONSIDERING DATA SECURITY

Since contactless payment has become customers’ go-to source of payment, retailers have to start considering improving their data security to keep customers’ information secure when using contactless payment.

“All of our credit information is run through our P66 processor, which allows our customers’ card information to stay safe and secure whenever they use one of our contactless payment systems,” said Elsworth.

Kramer suggested retailers should focus on using payment tokens whenever possible and invest in modern payment systems at every point in the payment ecosystem. He also noted that retailers should avoid building custom solutions and leverage mature products.

“Like most software and products, there is a need to maintain operational efficiencies to support the security process,” Kramer said. “This includes patch-

Pete’s Convenient Stores offer customers Express Lanes, which accept cash, credit and EBT (electronic benefit transfer), along with scan-and-go that allows customers to scan and pay for purchases through their smartphones.

ing and maintaining upgrades for all software and hardware and showing endless due diligence.”

“Take data security seriously,” added Elsworth. “Have a security analyst run tests and ensure you are protected, as well as your customers.”

THE FUTURE OF CONTACTLESS

Contactless payment is expected to continue to rise in popularity at c-stores as consumers continue to prioritize speed and convenience while in the store.

“We think contactless payments, whether through online, mobile devices or express lanes, will only grow,” said Elsworth.

Overall, convenience store retailers should continue to improve their contactless payment systems and data security to keep up with technology and customers’ needs.

“Contactless payments will continue to evolve in the quick-service restaurant and convenience store vertical faster than in other areas due to the ever-increasing need for speed and convenience in these verticals driven by labor shortages and

FAST FACTS:

• It is estimated that the global contactless payment market will be valued at $90.6 billion by 2032, up from $22.4 billion in 2022.

• Simplicity, speed and convenience make contactless payment appealing for customers.

• The hassle and cost of replacing hardware and integrating complex software have prevented some retailers from adopting contactless payment.

the consumers’ need for a frictionless experience,” said Kramer. “Retailers will continue to try and use mobile applications, (QR codes and near field communication on phones) to link payment tokens with customer rewards, memberships and basic customer relationship management identification, merging tendering and customer capture into a seamless and rapid process.” CSD

WHY YOUR TECH SHOULD BE as Craveable as Your Snacks

Convenience stores have a long track record of providing highquality, craveable products that are easy to grab and go.

Certain products, which are different for different people, provide customers with an instantaneous feeling of pleasure and satisfaction. When we finally get that thing we’ve been craving — whether it’s a favorite snack, a lottery ticket or a strong cup of coffee — our bodies release a chemical called dopamine that elicits feelings of contentment and euphoria. The same “feel good” chemicals can be released from a vigorous workout, a hug from a loved one, a cold slushie on a hot day or a thumbs up on social media.

Consumers seek physical products like snacks and beverages to add a moment of joy to their day; the same is true for digital. People engage with digital experiences that are personalized, friction free, intuitive

and fun. Like a walk through your physical store, a brand’s digital experience should be clean, uncluttered and straightforward, giving guests the opportunity to explore and discover new products and offerings along the way.

SERVING UP EXPERIENCES

Here are some ways c-stores can serve up both in-store and digital experiences that keep customers coming back to satisfy their brand craving.

Put delicious, unique food items on the menu. Convenience store food has come a long way from the days of overcooked hot dogs and soggy pizzas. One way cstore brands can differentiate themselves is to offer customers unique food options that they can’t find anywhere else. Craveable and unique offerings create a sense of excitement and anticipation that keeps customers coming back for more.

Abbey Karel • Bounteous

A well-designed digital experience can help c-stores boost brand loyalty.

For instance, Wawa’s flagship summer campaign, Hoagiefest, invites customers to try their fresh, builtto-order hoagies and sandwiches — which can’t be purchased anywhere else — for a promotional price. Thirty percent of respondents in a November 2022 NCSolutions study said they purchase prepared foods from convenience stores, which presents a monumental opportunity for c-stores to grow their foodservice footprint.

Maintain a clean, well-organized store. A welcoming, easy-to-navigate environment creates a prepurchase dopamine hit that can be as pleasurable as that first sip of a customer’s favorite beverage. Thirty percent of respondents in the NCSolutions study said they find new products and flavors to try at c-stores, and 28% said they intentionally roam the aisles looking for new products.

A well-organized store helps customers find what they’re looking for quickly and easily, which minimizes frustration and maximizes satisfaction. Additionally, it creates opportunities for shoppers to discover new things. Apps and online ordering platforms can do the same, expanding shoppers’ cravings to products and offerings they didn’t even know existed.

Combine new offerings with the convenience of delivery. Online ordering and delivery services re-

move the barrier of needing to physically go to the store, providing yet another channel of convenience and an addictive way to satisfy cravings. Combining a well-designed digital experience with cross-sells and upsells for unique products or food offerings unlocks exponential value.

The most effective digital/loyalty experience, however, goes beyond offering an incentive for a product a consumer already buys. It creates a threedimensional dopamine effect that rewards customers with the convenience of having their cravings delivered to their door — along with the added rush of tasting new products they may not have considered before.

A well-designed digital experience can create a parallel dopamine hit that reinforces customer loyalty to your brand. When paired with unique food offerings and an easily navigable store, the digital interaction that is intuitive, friction free and personalized is the ultimate tool that helps brands deliver the engaging and satisfying user experience customers crave.

Abbey Karel is vice president of business development for convenience at Bounteous. With a background in mobile product management in retail, Karel’s focus is on deeply understanding clients’ needs to optimize global teams throughout the product lifecycle and driving strategic, long-term partnerships centered around co-innovation.

IMPROVING SUPPLY CHAIN PRACTICES

Emily Boes • Senior Editor

A few years ago, during the height of the COVID-19 pandemic, the supply chain proved a constant source of stress for convenience store retailers. With out-of-stocks aplenty and hardships maintaining inventory in a timely manner, c-store operators had to be creative with solutions.

“Overall, the pandemic brought about significant changes in the supply chain, prompting companies to rethink their strategies, embrace digital transformation and prioritize resilience and flexibility in their operations,” said Nick Triantafellou, director of marketing and merchandising, Weigel’s, which operates 74 c-stores in Tennessee.

Now, supply chain issues aren’t as prevalent, but they haven’t quite gone away.

“Supply chain for many items had been constricted (during the pandemic), with many items not available or only certain sizes or flavors available,” said Fred Faulkner, director of sales and marketing

for Jaco Oil Co., which operates 55 Fastrip stores in California and Arizona. “The inventory levels started to improve in late 2022, and now in 2023 they are better; however, they are not 100%.”

Judy Wall, purchasing/product analyst and marketing for Corner Store, agreed that the supply chain could still use improvement, although it has been getting better with time.

Based in Seminole, Texas, Corner Store broke ground on its fourth location in June. Recently, the chain has noticed a change in product supply.

“Various items that were gone for months are back in production, and we’re able to make our customers happy by bringing them back,” said Wall.

For Weigel’s, the pandemic led to the chain adopting practices that it still maintains to allow for stronger business.

“It took great partnership, staying nimble as a company and communication skills to get through

C-store retailers are still navigating the supply chain postpandemic, learning which strategies lead to success and focusing on struggling categories.

the pandemic. In the past year, we have come out stronger with our vendor partners due to what it took to get out of the pandemic,” said Triantafellou.

SUPPLY CHAIN STRUGGLES

At this time, Fastrip is still struggling with the supply chain for confectionary and grocery items such as pet food, dry goods and condiments.

Corner Store, on the other hand, is still experiencing issues with supply for bottled drink and mineral water products.

For Weigel’s, supply chain issues are occurring with primarily center store categories.

“It pops up randomly with things you wouldn’t expect like marshmallows. Or as products start to bounce back from their pandemic dip (i.e. gum) with significant growth over the last year, our top manufacturers can’t keep up and have caused huge holes

in regrowing subcategories,” said Triantafellou. “We closely watch commodity reports to try to gain any insight we might be able to gain about future issues in our supply chain, like the cocoa shortage the world is entering.”

Weigel’s is currently preparing for potential shortages in products that rely on cocoa beans, readying helpful strategies.

INVENTORY SOLUTIONS

Convenience stores have experimented with different methods to find solutions for out-of-stocks.

Recently, Fastrip has explored alternative supply sources, either as secondary or primary sources depending on the category.

“And of course (we have been) staying on top of situations when needed or applicable to encourage prompt delivery or supply,” Faulkner continued.

When the situation is dire, Fastrip acquires inventory even if it means purchasing from a competitor such as Costco, Walmart or Sam’s Club.

“The bottom line is we try not to be out of stock at any time on anything,” said Faulkner. “We may also on occasion substitute sizing to accommodate our customers — 24 ounces vs. 16 ounces, etc.”

Faulkner said he believes the best way to manage the supply chain is to stay ahead of changes in the marketplace. He encouraged convenience store retailers to anticipate challenges and follow instincts. “You have to make decisions and then react quickly. Sometimes you win, sometimes not, but you have to react,” he said.

Triantafellou concurred that reacting and staying nimble are key to finding solutions for out-of-stocks.

For example, Rebecca Gregory, Weigel’s center store category manager, adjusts planograms (POGs) on the fly to fix holes by filling them with similar products that Weigel’s is able to source from its wholesaler. She also sends out new POGs and tags to all stores, weekly if necessary, Triantafellou said.

“She has stayed on top of her merchandising principles and makes sure stores always have a solution to issues we are seeing,” Triantafellou said. “Instead of throwing up her hands when an item all of a sudden hits a supply chain issue, she stays nimble and acts fast.”

Weigel’s deploys a seven-step process for top supply chain management.

With all vendor partners, Weigel’s enhances vis-

FAST FACTS:

• Communication with vendors and adaptability are essential for managing inventory levels well.

• C-store retailers need to keep an eye on the marketplace to predict potential future supply shortages.

• Finding secondary suppliers and ordering additional supply from the start are possible solutions for out-of-stocks.

ibility, diversifies the supplier base, strengthens collaboration with suppliers, prioritizes inventory management, embraces technology and automation when possible, invests in omnichannel capabilities like Vroom and Uber Eats, and continuously assesses and improves.

“We are always looking at ways to collaborate and communicate with our vendors more while following our best practices,” said Triantafellou.

Corner Store’s Wall emphasized the importance of having backup vendors and establishing good relations with the companies and representatives they work with.

Additionally, Corner Store built more storage space to hold extra items. If a product is struggling to be stocked, the chain will order an additional case of that product when it places the order.

When it comes to out-of-stocks, “unfortunately there is no perfect solution,” Wall noted.

“Whenever we notice we’re struggling to receive a certain product, we reach out to our additional vendors to see if they are able to supply us with that item,” Wall said. “One of the downsides is that the secondary vendors are normally not able to match the cost price of the original vendor.”

This then results in either the company’s reduction in the gross profit margin or a new change in price for the consumer.

Triantafellou also stressed that in the c-store industry there will never be a “perfect, no-issue” day.

Therefore, he continued, adaptability, resilience and leveraging technology effectively are the keys to best supply chain management post-pandemic.

“By implementing these best practices, you can enhance efficiency, mitigate risks and meet the evolving demands of the convenience store industry. It is the ability to react quickly and find solutions that will see your stores through any challenges they face,” said Triantafellou.

He noted that the best partnerships are built on growing the overall category’s business.

“Increase focus on building strong relationships with suppliers, logistics partners and customers to address challenges and find innovative solutions. Collaboration platforms, video conferencing tools and real-time data sharing become essential for effective supply chain management with your partners,” Triantafellou advised. CSD

Attendance for convenience retailers is complimentary.

RSVP today at https://COY2023. eventbrite.com

TXB features a state-of-the-art store design and restaurant-quality food, while celebrating the diversity of Texas and its values of authenticity, hospitality and integrity.

Today TXB operates over 50 locations in Texas and Oklahoma, with plans for many more new-to-industry builds on the horizon. Over the past three years TXB has been aggressively remodeling all existing Kwik Chek sites to the TXB brand, while also growing through new builds and integrating technology, including an updated loyalty program and mobile app, self-checkout stations and electric vehicle charging.

CStore Decisions’ Convenience Store Chain of the Year Award annually honors a convenience store or petroleum chain that has established itself as a superior retailer and innovator in the c-store industry.

CSD’s first Chain of the Year award was Wawa Inc. in 1990. TXB follows the 2022 Chain of the Year Winner Nouria Energy. Past winners of this prestigious award include Sheetz, Maverik, RaceTrac, 7-Eleven Inc., Kwik Trip, Alimentation Couche-Tard, QuikTrip, Rutter’s and Family Express.

CSTORE DECISIONS HONORS TXB STORES AS THE 2023 CHAIN OF THE YEAR!

PRODUCT Showcase

Sustainable Cutlery Dispenser System

Hoffmaster has launched the Earthwise Wood Cutlery Dispenser System. Developed in response to growing single-use plastic bans and the company’s dedication to developing sustainable alternatives, the system combines the need for convenient, hygienic dispensing with renewable, compostable cutlery. The sleek, modern dispenser streamlines operations with its easy-to-load refill packs. Reliable dispensing also helps reduce waste and ensures patrons only take what they need. The system also features composter-accepted wood cutlery, and the cutlery is housed in an enclosed dispenser ensuring the patron only touches the utensils they plan to use.

Ho master

www.hoffmaster.com

Caramel Peanut Protein Bars

Customizable Kids Juice Drink

good2grow has launched BIGGER, a larger, 10-ounce size of its juice that is compatible with its hundreds of collectible licensed character tops. The new beverage features 65% more juice than the brand’s six-ounce products in two kid-requested flavors, Raspberry Lemonade and Orange Mango. Customers can expect the same nutritional benefits the brand is known for, as BIGGER juices are a good source of vitamin C, zinc and calcium and contain no added sugar. The product features good2grow’s signature spillproof tops featuring 350-plus characters from kids’ favorite shows and movies.

Wind Point Partners

Kind has released a new Caramel Peanut Protein Bar, which is a soft-baked bar with a crispy exterior, featuring five super grains and diced peanuts. The snack is great for on-thego customers and is made with plant-based ingredients and whole grains. The protein bars are also an excellent source of protein and fiber. Kind Caramel Peanut Protein Bars are available online and at retailers nationwide.

Mars Inc.

www.mars.com

Limited-Time Spiced Popcorn

Smartfood has collaborated with Doritos to launch the limited-time-only Smartfood Doritos COOL RANCH. Every bite packs a familiar burst of COOL RANCH tanginess with flavors of onion, garlic, tomato and spice — all layered on top of Smartfood’s air-popped, ready-to-eat popcorn. Smartfood Doritos COOL RANCH is available nationwide. Fans can pick up the latest Smartfood flavor in two sizes through September: 6.25 ounces for a suggested retail price (SRP) of $5.19 and two ounces for an SRP of $2.49.

PepsiCo

www.pepsico.com

an

Online Ordering POS System for Kitchens

Paytronix announced a new integration with Square, which allows sellers using any point-of-sale platform, including Square for Restaurants, to be able to incorporate Paytronix Online Ordering and Loyalty programs directly from the Square App Marketplace. Benefits of the Square integration with Paytronix include:

• Customization of the first-party ordering experience

• Feeding orders directly from Paytronix Online, Ordering to the Square POS and Kitchen Display System,

• Aggregation and control of the third-party ordering channel, syncing menus across all of the platforms,

• Full integration with Paytronix Loyalty, coming soon.

Paytronix www.paytronix.com

Square www.squareup.com

Salted Caramel Candy

Morinaga America Inc. has launched HI-SOFT, a rich and creamy salted caramel chew that provides consumers with a decadent snacking experience. The new chewy candy is a sweet, velvety treat that is rich in flavor with a balanced hint of salt. HI-SOFT will begin to roll out in select retailers nationwide in fall 2023. The chewy candy will be offered to retailers in a three-ounce peg bag for a suggested retail price (SRP) of $3.59 as well as a 10.59-ounce stand-up pouch for an SRP of $7.69.

Morinaga America Inc.

www.morinaga-america.com

Sugar-Free Fruit Snacks

Welch’s ZERO SUGAR Fruity Bites are chewy, fruity and 100% sugar free, with 25% fewer calories than the original Welch’s Fruit Snacks but all the same taste. The new treats are fat free, gluten free, aspartame free and contain no preservatives. Consumers will begin to find Welch’s ZERO SUGAR at retailers nationwide and on Amazon in Mixed Fruit, Berries ‘n Cherries and Island Fruits varieties. The snack will have a suggested retail price of $3.99 for threeounce peg bags with other packaging formats also to roll out later in the year into early 2024.

PIM Brands

www.pimbrands.com

Low-Calorie Light Beer

Modelo has announced the launch of its latest product innovation, Modelo Oro. Modelo Oro is a time-crafted beer that seals in the golden flavor of Modelo to deliver an exceptionally smooth, elevated light beer with a crisp, clean finish. Modelo Oro is:

• Brewed for those looking for a light option without sacrificing the traditional Modelo flavor they know;

• Available nationally in 12-ounce 12-packs and 24-ounce single-serve cans;

• 90 calories, three grams of carbs per 12-ounce serving and 4% alcohol by volume.

Constellation Brands

www.cbrands.com

PRODUCT Showcase

Mini Cupcake Assortments

Café Valley has debuted its new line of 12-count and 24-count everyday mini cupcake assortments. The flavors of the mini cupcakes include Vanilla (12-count), Chocolate (12-count), Cookies and Crème (12-count), Red Velvet (12-count), and Chocolate and Vanilla Checkerboard (24-count). The new everyday mini cupcakes are sold nationwide.

Chocolate Chip Fudge Cookies

Velvet

Café Valley Bakery www.cafevalley.com

Limited-Edition Soda

Keebler has launched Chips Deluxe Fudgy cookies. The new cookies are crafted with sweet chocolate chips and indulgent fudge chunks. These cookies are great options for anyone, both adults and kids. Keebler Chips Deluxe Fudgy is rolling out across retailers nationwide for a suggested retail price of $4.80.

Ferrero

www.ferrero.com

The Coca-Cola Co. has introduced its new limited-edition Sprite Lymonade Legacy. Created through inspiration from Sprite fans and culture, the flavor is a twist on the lemon-lime soda featuring a splash of lemonade and strawberry — Sprite’s take on strawberry.

Consumers can purchase Sprite Lymonade Legacy in stores now while supplies last. The limited-edition flavor is available at retailers in 12-ounce 12-packs and 20-ounce bottles.

The Coca-Cola Co.

www.coca-colacompany.com

Secure Order Pickup Lockers

Apex Order Pickup Solutions announced its new NextUp series of indoor/outdoor smart lockers. NextUp Smart Pickup Lockers ensure secure order pickup with minimal employee labor while providing customers with quick, convenient and secure access inside or outside of the store 24 hours a day. This new series uses proprietary ApexIQ software, which offers easy integrations with popular enterprise resource planning systems, point-of-sale software, mobile apps and more. ApexIQ software also offers features specifically designed to enhance efficiency, such as a visual loading guides, directional pickup guides and an easy-to-use portal.

Apex Order Pickup Solutions

www.apexorderpickup.com

Bite-Sized Meat Sticks

Country Archer Provisions Mini Sticks are a line of bite-sized, mini meat sticks that are available in three flavors: Original Grass-Fed Beef, Teriyaki-Style Pork and the new Rosemary Turkey. The snacks are made with clean, real ingredients and contain low to no sugar and no preservatives; they are free of nitrites and nitrates. Mini Sticks are individually wrapped and available in a variety of multipacks ranging from 12-count to 36-count packs. A bag of 16-count Mini Sticks is sold at a suggested retail price of $14.99.

Country Archer Provisions

www.countryarcher.com

Mini Snack Cakes

Entenmann’s has added Baker’s Delights to its portfolio of sweet baked goods. Available now in a variety of classic flavors ranging from Crumb Cake and Brownie Chocolate Chip to Apple Snack Pies, Baker’s Delights are high-quality snacks that are ideal portion sizes. They were developed for the busy customer on the go. Each box comes with six to eight individually wrapped mini snacks. Baker’s Delights are available now at most major retailers.

Bimbo Bakeries USA

www.bimbobakeriesusa.com

Cinnamon-Flavored Cookies

General Mills Convenience has added Cinnamon Toast Crunch-flavored cookies to its portfolio of new mini soft-baked cookies. The bite-sized, ready-to-eat cookies deliver a soft-baked texture from Pillsbury. Individually wrapped, the Cinnamon Toast Crunch-flavored mini soft-baked cookies appeal to shoppers looking for an indulgent snack they can eat on the go. The cookies are available now in three-ounce bags in a 54-count case or a six-count sleeve for a suggested retail price of $2.39.

General Mills

www.generalmills.com

Stackable Countertop Displays

ClearCor Displays released new stackable, modular acrylic countertop displays for liquor bottles, vape, cigarillos, CBD and smokeless tobacco. Standard sizes are available for each category. Sold in single-tier units, they are also offered in halfwidths so that two smaller cubes can be stacked on top of a wider unit. The displays feature pull-out trays with dividers and removable category headers that can be purchased separately. Custom displays are available and can be custom imprinted with store names and logos.

ClearCor Displays

www.clearcordisplays.com

Making Connections that Drive Business

How to Achieve Consistent Menu Execution

Consistency in menu execution is key for c-store foodservice success. Here’s why it matters and how to ensure you’re hitting the mark.

Bruce Reinstein • Kinetic12 Consulting

C-stores looking to drive repeat business with their foodservice program should focus on consistent menu execution as their top priority.

Consistency outweighs quality when it comes to foodservice. As much as the consumer wants the best quality at the best price, if they can’t get it that way every time, they are more inclined to get it somewhere that meets their expectations consistently. Here are six steps to consistent execution.

1. Simplify the menu and reduce total SKUs. A great menu is not about variety. Variety usually results in great execution of core items and mediocre to poor execution of everything else. It’s an impossible task to be everything to everybody. Menus became bloated prior to the pandemic, and many companies simplified their menu offerings. Now, an appealing, simplified menu that allows for quality food and beverages almost 100% of the time is a winning formula. In conjunction with that, reducing the number of ingredients and avoiding single-use SKUs makes it much easier for foodservice staff to execute.

2. Make the kitchen and prep process easier and more efficient. Great productivity and efficiency in the kitchen will lead to more consistent execution of the end product. Most companies, in the past, focused on being either a scratch kitchen or one that ordered ready-to-use (RTU)

products. Today’s foodservice is typically a hybrid. There is a place for both some scratch and some RTU, but the middle ground is ready-toinnovate products. They are speed scratch products, and the prep focus is about baking off or adding finishing touches to products that come in more consistent than if you did them on your own.

3. Create a culture of meeting or exceeding brand standards. Just getting the job done is not the answer for how you generate consistent execution. Great leaders develop a culture of doing things right. It doesn’t take any longer to meet or exceed customer expectations. It is all about the basics. If a product does not meet brand standards, it should not be served, and this holds true for every customer. Meeting or exceeding brand standards starts with making sure that the entire team knows what those standards are and takes pride in consistently executing.

4. Improve staff training and develop a team that is certified in multiple areas. A particular employee preparing food or beverages should have no bearing on whether the finished product meets consistent standards. The odds of having consistent execution go way up when there is a quality training program that is technology based as well as a certification program that encourages team members to be trained and competent at multiple

stations. The goal is to have team members who are interchangeable. Customers’ expectations remain the same regardless of the day or time.

5. Identify ingredient subs that are readily available to avoid supply issues. Expecting the unexpected provides a path to maintaining foodservice consistency. Once an operator becomes reactive, they are forced to cut corners. A proactive approach is a winning formula to keeping consistent execution business as usual. Working closely with manufacturers and distributors to have approved subs for spec products avoids stock outs and ensures that brand standards are maintained at all times.

6. Understand consumers’ expectations and avoid being everything to everybody. Consumer expectations will vary considerably, and it is difficult to consistently execute if you don’t know what these expectations are. Having a social media platform as well as a loyalty program promotes an important dialogue between foodservice operators and their customers. It is not possible to be everything for everybody, which makes this consumer feedback so important. Building a menu that meets consumer expectations and can be consistently executed will result in loyal, repeat customers.

Bruce Reinstein is a partner with Kinetic12, a Chicago-based foodservice and general management consulting firm. He can be reached at Bruce@Kinetic12.com.

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