CStore Decisions July 2020

CStoreDecisions

®

Solutions for Convenience Retailers

2020

Chains to Watch CITGO, Charge Up and Dandy Mini Marts head this year’s class of innovative chains energizing and expanding their brands.

INSIDE Candy’s Sweet Reward Still a Big Favorite

32

Cracking the Cold Vault

40

C-Stores Expand Foodservice Programs

44

July 2020

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CStoreDecisions.com

The future of our industry is about innovation, products with the potential to reduce harm and adult consumer choice. Through our companies and strategic partners, we’ve invested in the most compelling portfolio of non-combustible products. We strive to give adult consumers the choices they want today — and invest and develop products for tomorrow.

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CONTENTS j u ly 2 0 2 0

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Number 7

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Volume 31

CStoreDecisions

20

®

EDITOR’S MEMO

10 Maintaining Your Culture in Challenging Times FRONT END

12 Understanding the C-Store CBD Customer 14 Quick Bites: Monitoring COVID-19 16 Kum & Go Takes a Stand Against Racism 18 Parker’s Named CSD’s 2020 Chain of the Year CATEGORY MANAGEMENT

32 Candy’s Sweet Reward Still a Big Favorite 36 Snackers Dive into the Big Bag 40 Cracking the Cold Vault FOODSERVICE

44 C-Stores Expand Foodservice Programs TECHNOLOGY

COVER STORY 20 2020 Chains to Watch

CITGO, Charge Up and Dandy Mini Marts head this year’s class of innovative chains energizing and expanding their brands.

48 Wired for Cash OPERATIONS

52 Marketing to C-Stores’ Strengths

36

BACK END 56 Product Showcase 61 Ad Index 62 Industry Perspective: Out and About the Industry 4

CSTORE DECISIONS •

July 2020

cstoredecisions.com

It’s time to make sure you‘re NOT stuck with other products that you won’t be allowed to sell!

Nothing is worse than having inventory that you can’t sell. With the upcoming deadline for vapor products fast approaching, it’s more important than ever to make sure you are stocked with products that you can legally continue selling.

MNGO has already begun filing Premarket Tobacco Applications (PMTAs) to the U.S. Food & Drug Administration (FDA) for MNGO Disposable Sticks.

MNGO Sticks come in the variety your customers desire.

The FDA’s PMTA process is designed to help retailers eliminate questions as to which vapor products can be legally sold past the PMTA deadline. How prepared are you? Are you confident that the products on your shelf today will remain committed to your success tomorrow?

What guarantees do you have that that your current brand will even be around post PMTA deadline?

Reach out today to your Max Distributing Representative or email mngo@maxdelivers. com.

MNGO Sticks and Max Distributing – the variety your customers desire – and the trusted partner your future deserves.

MNGO Disposable Stick PMTAs have been submitted to the FDA.

maxdelivers.com

1601 Westpark Drive | Suite 4C Little Rock, AR 72204

the CSD Group www.cstoredecisions.com

CStoreDecisions .com CStoreDecisions CStoreDecisions

CStore Decisions

®

®

Convenience Store Decisions EDITORIAL

CREATIVE SERVICES

VICE PRESIDENT, EDITOR-IN-CHIEF John Lofstock jlofstock@wtwhmedia.com

VICE PRESIDENT, CREATIVE SERVICES Mark Rook mrook@wtwhmedia.com

EXECUTIVE EDITOR Erin Del Conte edelconte@wtwhmedia.com

CREATIVE DIRECTOR Erin Canetta ecanetta@wtwhmedia.com

SENIOR EDITOR Thomas Mulloy tmulloy@wtwhmedia.com

ART DIRECTOR Matthew Claney mclaney@wtwhmedia.com

ASSOCIATE EDITOR Isabelle Gustafson igustafson@wtwhmedia.com ASSOCIATE EDITOR Marilyn Odesser-Torpey COLUMNISTS Mark Radosevich Kay Tamillow

ADVERTISING VICE PRESIDENT, GROUP PUBLISHER Tom McIntyre tmcintyre@wtwhmedia.com

(216) 533-9186

PUBLISHER John Petersen jpetersen@wtwhmedia.com

DIRECTOR, AUDIENCE DEVELOPMENT Bruce Sprague bsprague@wtwhmedia.com

CUSTOMER SERVICE CUSTOMER SERVICE MANAGER Stephanie Hulett shulett@wtwhmedia.com CUSTOMER SERVICE REPRESENTATIVE Jane Cooper jcooper@wtwhmedia.com

EVENTS EVENTS MANAGER Jen Osborne josborne@wtwhmedia.com

(216) 346-8790

VIDEO SERVICES

VICE PRESIDENT, SALES Tony Bolla tbolla@wtwhmedia.com

VIDEOGRAPHER Bradley Voyten bvoyten@wtwhmedia.com

(773) 859-1107

REGIONAL SALES MANAGER Ashley Burk aburk@wtwhmedia.com

VIDEOGRAPHER Derek Little dlittle@wtwhmedia.com

(737) 615-8452

FINANCE

REGIONAL SALES MANAGER Patrick McIntyre pmcintyre@wtwhmedia.com (216) 372-8112

CONTROLLER Brian Korsberg bkorsberg@wtwhmedia.com

REGIONAL SALES MANAGER Jake Bechtel jbechtel@wtwhmedia.com (216) 299-2281

ACCOUNTS RECEIVABLE SPECIALIST Jamila Milton jmilton@wtwhmedia.com

•

Leading Through Innovation

DIGITAL MEDIA/ WEB DEVELOPMENT VICE PRESIDENT, DIGITAL MARKETING Virginia Goulding vgoulding@wtwhmedia.com SENIOR MANAGER WEBINARS/VIRTUAL EVENTS IN MARKETING Lisa Rosen lrosen@wtwhmedia.com DEVELOPMENT MANAGER Dave Miyares dmiyares@wtwhmedia.com SR. DIGITAL MEDIA MANAGER Pat Curran pcurran@wtwhmedia.com EVENT MARKETING SPECIALIST Olivia Zemanek ozemanek@wtwhmedia.com DIGITAL PRODUCTION MANAGER Reggie Hall rhall@wtwhmedia.com DIGITAL PRODUCTION SPECIALIST Nicole Lender nlender@wtwhmedia.com DIGITAL PRODUCTION/ MARKETING DESIGNER Samantha King sking@wtwhmedia.com

CStore Decisions is a three-time winner of the Neal Award, the American Business Press’s highest recognition of editorial excellence.

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 Patrick Lewis, Managing Partner Oasis Stop ‘N Go • Twin Falls, Idaho 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

SOFTWARE ENGINEER DJ Bozentka dbozentka@wtwhmedia.com WEBINAR COORDINATOR Halle Kirsh hkirsh@wtwhmedia.com

Doug Galli, Board Chairman Reid Stores Inc./Crosby’s • Brockport, N.Y. Mary Banmiller, Director of Retail Operations Warrenton Oil Inc. • Truesdale, Mo. Greg Ehrlich, President Beck Suppliers Inc. • Fremont, Ohio

WEBINAR COORDINATOR Kim Dorsey kdorsey@wtwhmedia.com

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. Peter Tamburro, General Manager Clifford Fuel Co. • Marcy, N.Y. Vernon Young, President and CEO Young Oil Co. • Piedmont, Ala.

YOUNG EXECUTIVES ORGANIZATION (YEO) BOARD WTWH MEDIA, LLC 1111 Superior Ave., 26th Floor, Cleveland, OH 44114 • Ph: (888) 543-2447 EDITORIAL AND NAG 1420 Queen Anne Rd., Suite 4, Teaneck, NJ 07666 • Ph: (201) 321-5642

Jeremie Myhren, Board Chairman Road Ranger • Rockford, Ill. 2011 - 2019

SUBSCRIPTION INQUIRIES To enter, change or cancel a subscription, please go to: http://d3data.net/csd/indexnew.htm or email requests to: bsprague@wtwhmedia.com

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 Publication Sales Agreement No: #40026880.

CSTORE DECISIONS does not endorse any products, programs or services of advertisers or editorial contributors. Copyright© 2020 by WTWH Media, LLC. No part of this publication may be reproduced in any form or by any means, electronic or mechanical, or by recording, or by any information storage or retrieval system, without written permission from the publisher. Circulation audited by Business Publications Audit of Circulation, Inc.

CSTORE DECISIONS •

Ryan Faville, Director of Purchasing Stewart’s Shops Corp. • Saratoga Springs, N.Y. Caroline Filchak, Director, Wholesale Operations Clipper Petroleum • Flowery Branch, Ga. Cole Fountain, Category Manager Gate Petroleum Co. • Jacksonville, Fla.

Copyright 2020, WTWH Media, LLC

8

Garet Bishop, Chief Financial Officer BFS Cos. • Morgantown, W.Va.

July 2020

Kalen Frese, Food Service Director Warrenton Oil Inc. • Warrenton, Mo. Alex Garoutte, Director of Marketing The Kent Cos. Inc. • Midland, Texas Sharif Jamal, Corporate Brand Manager Chestnut Petroleum Inc. • New Paltz, N.Y.

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Editor’s Memo

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

Maintaining Your Culture in Challenging Times Top-quartile convenience store chains have recruiting and retention habits that give them a leg up on the competition.

However, attracting and retaining top-notch talent does not happen overnight. It’s the result of hard work, an excellent training plan and years of experience, and the payoff is incalculable, as we have seen during this COVID-19 crisis.

Satisfied employees are the fundamental difference between good and great convenience store chains. They work hard, keep customers loyal and stick around to help your organization accomplish its mission. And right now — just a few months into a deeply disrupted work environment, in the midst of a shaky economy, with anxiety running rampant — is not the time to slack off on making your people feel appreciated.

“

“

It’s more important than ever for employees to know you care about them, their health and safety, and their families.

“Some leaders may think building a happiness-generating culture isn’t a priority now,” said Leadership Consultant Deb Boelkes. “After all, a lot of companies are in survival mode. They’re just trying to keep the doors open and meet payroll. This could tempt leaders to think that employees are lucky to have a job at all.”

Don’t fall into this trap. It’s more important than ever for employees to know you care about them, their health and safety, and their families.

“The craziness of the current situation should cue leaders to double down on their efforts to make employees happy,” Boelkes said. “People are still anxious. They are also paying attention to how leaders behave right now. When you focus on building an environment where employees feel safe, comfortable and empowered, they’ll do a great job for you, and you’ll be able to retain them when things pick up again.”

Boelkes offered several tips to maintain a satisfied workforce:

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CSTORE DECISIONS •

July 2020

Be especially present for employees in times of trouble. Employees understand the crisis we are facing and are prepared for “the new normal.”

What they want from you is reassurance that they are part of a team that cares about them. Don’t shy away from this important responsibility. Be a visible presence in the stores and a positive influence at all times. Most of all, let the team know how much you appreciate their hard work.

Say “thank you” regularly. One of the best ways to motivate anyone is to express gratitude. It’s amazing what the simple act of saying thank you can do to get people aligned and make incredible things happen. When you, as a manager or teammate, appreciate hard work and you express gratitude when it’s due, you will likely have a far greater impact on those around you. The recipients of your appreciation will most likely be inspired to put forth an even greater effort to ensure they will be thanked again.

Show them you care by helping them perform.

People care about paychecks, but what they want most is a workplace that supports them and helps them feel good about their work. “Pay is important, but it’s not that important in the sense that people will leave you to go somewhere else,” Reinhold Preik, founder and CEO emeritus of Chemcraft International once said. “If you, as a leader, help them perform, then they are going to be happy themselves. Their self-worth is going to be there. If people have selfworth, they are going to be happy. If they are working in a place where they don’t feel self-worth, they don’t feel the company really cares who they are, then their attitude is going to be completely different.”

The bottom line is that when employees feel safe and appreciated, they want to do a great job for you.

When your team knows you care about them, that’s when the magic happens.

k c o t s f o L n h Jo cstoredecisions.com

Front End | CBD Column

Understanding

the C-Store

CBD Customer Brightfield Group examines the preferences of shoppers who purchase CBD products at convenience stores.

Kay Tamillow • Brightfield Group

Cannabidiol (CBD) continues to move into the mainstream with a broader range of consumers picking up products to meet a long list of varying needs.

In the first quarter of 2020, 9% of CBD consumers purchased products through a convenience store, up from 5% in 2019, according to consumer surveys conducted by CBD consumer insights company Brightfield Group. This opportunity will continue to grow as more consumers become comfortable with CBD, innovation in the industry continues at a fast pace and brands seek broader distribution through highly trafficked, mainstream channels such as convenience stores.

WHO IS THE CBD CUSTOMER?

In order to capitalize on this growing trend, c-store operators and brands looking to sell through this channel should develop 12

CSTORE DECISIONS •

July 2020

a strong understanding of who the CBD consumer is. Not surprisingly, CBD consumers purchasing through c-stores tend to skew slightly more male and younger than the average CBD consumer.

Of consumers who reported purchasing CBD at a c-store in Q1 2020, 52% are male, and over half (51%) are millennials. Most are heavy users, with 49% using CBD at least once per day — for relaxation, help with sleep and relief from physical ailments.

C-store shoppers are looking for reasonably priced CBD products, with 59% spending $30 or less per CBD product. They use a wide variety of CBD product types, most notably gummies, which are approachable, simple to use, and a great grab-and-go

cstoredecisions.com

format for the convenience channel. Over half (54%) of CBD consumers who purchased through convenience stores had used gummies, compared to 43% of all CBD consumers.

C-store shoppers also over-index in the use of CBD vape cartridges (34% of c-store CBD consumers vs. 20% of total CBD consumers) and CBD drinks (25% of c-store CBD consumers vs. 15% of total CBD consumers).

CBD vapes are often used as a substitute for tobacco products or e-cigarettes and fit well into the purchasing habits of shoppers used to purchasing these formats through the convenience channel.

CBD drinks are a small but growing part of the overall CBD market, and are popular with c-store shoppers.

CBD-infused beverages can satisfy both the desire for a cold drink and the need for after-work stress relief and relaxation with one relatively low-cost purchase.

Tinctures (CBD oil) are a strong legacy player in the CBD industry, and 33% of consumers who have purchased CBD at a c-store have used tinctures.

An easy-to-use, full dropper applied under the tongue provides consumers with desired effects over a relatively short time period, and with relatively precise dosing. While CBD tinctures can be relatively

SNAPSHOT of a CBD Customer Of consumers who reported purchasing CBD at a c-store in Q1 2020:

52% are male, 51% are millennials, 49% use CBD at least once per day — for

relaxation, help with sleep and relief from physical ailments.

cstoredecisions.com

expensive, smaller 10-milliliter pack sizes can bring prices into a comfortable range for the c-store shopper.

PRICING & EFFECTIVENESS

As with most CBD consumers, price and producing desired effects are the top product attributes that c-store shoppers are looking for when making a CBD purchase. Many brands offer trial-size or single-serve packages that are well-suited to achieve the $5 to $30 price range that most c-store shoppers favor.

In terms of desired effects, these CBD consumers are looking for relaxation on the way home from work or something that will help them wind down and sleep better later that evening. Offering consumer education through in-store collateral and displays can help communicate the correct dosage and usage for consumers to fully appreciate the effects of CBD and feel satisfied with their purchases.

By satisfying the consumer on both price and product effect, convenience stores can help these consumers make CBD a regular part of their daily routine and c-store purchases.

Kay Tamillow, research director for Brightfield Group, leads Brightfield Group’s research team, providing in-depth analysis on the CBD and cannabis markets spanning across consumer research, new product developments, market sizes and brand shares.

July 2020 • CSTORE DECISIONS

13

quickBites MONITORING COVID-19 PANDEMIC’S ECONOMIC SETBACK: HOW BIG? Global consumer spending is expected to decline based on Euromonitor International’s Economic Macro Model and information gathering of industry estimates: 5.2% 2022

Expected per capita consumer expenditure reduction in real terms in 2020 globally

Year spending is expected to return to 2019 levels, remaining far below where it would have been without the COVID-19 crisis.

Source: Euromonitor International, “How Will Consumer Markets Evolve After Coronavirus?” June 2020

COVID IMPACTING FOOD CARRYOUT & DELIVERY MARKET FORECAST Food carryout and delivery sales are anticipated to rise 5.4% annually to reach $620 billion in 2024, aided by: • increasing consumer desire for convenience,

• a growing share of restaurant and retail sales made online, • accelerated measures to offer carryout and delivery in the wake of the COVID-19 crisis.

Source: Packaged Facts, “Food Carryout & Delivery,” June 2020. Packaged Facts exclusive proprietary surveys are supplemented by Simmons’ National Consumer Study, which is based on approximately 25,000 adult respondents surveyed annually.

COVID-19 EXPECTED TO INFLUENCE PLANT-BASED “MEAT” GROWTH Global pandemic will affect meat supply chains and healthy consumer behavior, increasing plantbased “meat” market opportunities.

PANDEMIC FUELS C-STORE WINE SALES

2020-2024 • Sales: $3B • Compound Annual Growth Rate: 17% Source: Technavio Blog, “What Are Plant-Based Meat Companies Up To During COVID-19,” May 1, 2020

Shopper data collected by retail analysts Catalina and Koupon Media from February through May 2, 2020, when sheltering in place became more common vs. the same period a year ago, shows customers stocking up on alcoholic beverages. In the c-store channel, for the same 10-week period vs. a year ago: • Wine total dollar sales were up 9%, beer was up 6% and spirits up 24%.

FUEL DEMAND RETURNS,

PRICES INCHING UPWARD

• 32% of wine buyers were new to the category within c-store, and 17% of these first-time buyers have made a repeat purchase.

• For consumers buying both before and during the crisis, wine basket size was up 4%, beer up 11% and spirits up 6%.

Source: Catalina/Koupon shopping data, May 2020

14

CSTORE DECISIONS •

July 2020

Average price/gallon

JUNE 11

1 WEEK PREVIOUS

1 YEAR PREVIOUS

$2.08

+$0.09

-$0.65

Source: Energy Information Administration (EIA) and GasPrices.AAA.com, “Demand Growth Lifts National Average,” June 11, 2020

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6/1/20 2:01 PM

FRONT END News

Kum & Go

Takes a Stand Against Racism Kum & Go commits to using its platform and influence in the communities it serves to help create a more inclusive America. First step — listening.

Erin Del Conte • Executive Editor

Des Moines, Iowa-based Kum & Go, with more than 400 stores across 11 Midwestern states, was one of the first c-store chains to speak out following the killing of George Floyd by Minneapolis police.

“The killing of George Floyd is the latest tragedy in a long history of violence against people of color.

Across the country, we are seeing the dividends sown by generations of systemic racism. Today, it is incumbent upon us all to make changes that will create a better country and a better tomorrow. I stand with our Black associates, customers and communities. I kneel alongside them, too,” said Kyle Krause, chairman and CEO of Kum & Go, as part of a statement about the chain’s commitment to action.

CStore Decisions spoke with Tanner Krause, president of Kum & Go and a fourth-generation member of the family business, to learn more about how the chain is using its platform to assist in bringing awareness and change.

Kum & Go, Krause explained, is starting by listening in order to better understand the reality that people of color face in America, so it can work to be part of the push for equality.

“Listening is important because, firsthand, as white people, we don’t fully appreciate the way the world treats people of color,” Krause said.

FIRST, LISTENING As part of its commitment to listening, Kum & Go is hosting a series of speakers, via ‘lunch and learn’ sessions, on topics including unconscious bias, diversity, equity and inclusion training.

“We’re bringing members of the community into our Kum & Go family (including leaders, educators, teachers and speakers) to educate us as to the experiences of racial minorities in the country,” Krause said.

“We’re trying to increase awareness, increase 16

CSTORE DECISIONS •

July 2020

empathy in order to hopefully increase respect and the amount of justice.”

Kum & Go is also donating both time and money to the movement. “My family, myself, we’ve actively and peacefully demonstrated in support of the Black Lives Matter movement,” he said. “We’re donating our money, and we are supporting organizations like the Center for Constitutional Rights (to which Kum & Go recently made a $25,000 donation).”

Kum & Go is also donating to support bond funds to release demonstrators from jail cells, among other organizations.

“We want our stores and the important role they play in our communities to be centers for inclusion and equality in those communities,” Krause said.

BLACK LIVES MATTER The chain is also saying “Black Lives Matter” loud and clear.

“Saying ‘Black Lives Matter’ does not say that other lives don’t matter. It’s about coming out in support of our Black friends and recognizing that … Black people are not feeling like their lives matter as much as white lives,” he said. “By coming out and saying, ‘Black Lives Matter,’ we are standing in solidarity with our Black community, our Black friends, our Black associates, and saying, ‘We see you, we hear you, and we’re here for you. We recognize the importance and equality of everyone in America. … ’” “I can’t say what we’re doing is perfect, but I can say I’m proud of what we’re doing,” Krause said.

“And I remain open to suggestions as to how we can do more and do better to help solve all injustice.”

For more, check out the full podcast with Tanner Krause at cstoredecisions.com/2020/06/04/ podcast-kum-go-works-to-be-part-of-the-change/

cstoredecisions.com

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31st FRONT END COY News ®

Chain of the Year Award

Parker’s Named CSD’s 2020 Chain of the Year

The Savannah, Ga., chain is the 31st winner of the most prestigious award in the industry for convenience retailing and will be honored at the NACS Show in Las Vegas in October.

A CSD Staff Report

Exceptional leadership, great stores and unsurpassed customer service are the hallmarks of the convenience store industry’s extraordinary chains.

Following these guiding principles, CStore Decisions is proud to honor Parker’s as the 2020 Convenience Store Chain of the Year.

The Chain of the Year Award showcases the best of the best in convenience retailing, and Parker’s is certainly deserving of a place in this rich tradition. As many industry marketers are struggling to reinvent themselves and to identify a strategy that will lead them into the future, family-owned and operated Parker’s continues to blaze its own trail. The Savannah, Ga.-based company operates 66 stores in Georgia and South Carolina, and has aggressive plans to build 60 new-to-industry stores in 60 months.

Over the past two years, company Founder and CEO Greg Parker has pushed the needle forward with a host of projects that have made the chain a force in the Southern market. Parker’s expanded into the metro Charleston, S.C., market with eight new stores and plans to build 32 more units in the area over the Greg Parker, Parker’s founder and CEO

18

CSTORE DECISIONS •

July 2020

next four years. It has significantly enhanced its focus on foodservice, operating 42 Parker’s Kitchen locations serving Southern-inspired food prepared fresh on-site daily.

“Being named the 2020 CStore Decisions Chain of the Year is an incredible honor that validates our team’s hard work and ongoing commitment to serving Parker’s customers and giving back to every community where we operate stores,” Parker said. “Since our founding in 1976, we’ve been focused on delivering the ultimate customer experience. In recent years, we’ve strategically expanded our commitment to high-quality food service, cutting-edge technology, charitable giving and customer loyalty. We deeply appreciate this recognition and will continue to set the bar even higher in the future.”

Over the past two years, Parker’s has also implemented cuttingedge technology to enhance the

customer experience and digitize operations. Upgrades include foodordering kiosks, self-checkout lanes, a new Parker’s Rewards app and investing in internal “smart applications” to increase efficiencies.

The company’s goal is to have at least 40% of all transactions be completed through the Parker’s Rewards program, Parker said.

“For many years, the entire team at Parker’s has been recognized as one of the hardest-working groups in the industry. Their dedication to detail, outstanding customer service programs and constant evolution as a convenience retailer make them the perfect choice to join the elite list of Chain of the Year honorees,” said John Lofstock, vice president and editor-in-chief of CStore Decisions.

“For its commitment to convenience retailing, customers and its team members, Parker’s exemplifies the spirit of the Chain of the Year award, and we are proud to recognize them with this coveted honor.”

Parker opened the first Parker’s c-store in Midway, Ga., 44 years ago. “Fast, Fresh, Friendly” is more than just a slogan at Parker’s. It’s a promise it makes to every customer it serves every day.

cstoredecisions.com

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2020 Chains to Watch

2020 CHAINS to WATCH

CITGO, Charge Up and Dandy Mini Marts head this year’s class of innovative chains energizing and expanding their brands.

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2020 Chains to Watch • Charge Up

CHARGE UP Kicks Growth

Into Hyperdrive Charge Up reimages stores, expands foodservice and upgrades technology — including electric vehicle charging and a new loyalty program — as it races toward 50-plus locations.

Erin Del Conte • Executive Editor

In just 10 short years, Charge Up has grown from a singlestore operation to a 40-store chain with locations in Texas and Louisiana, with a goal of reaching 50 sites by 2021.

Irfan Tejani, the founder, president and CEO of Tejani Holdings, the parent company of Charge Up, eyes expansion.

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Young executive entrepreneur Irfan Tejani, the founder, president and CEO of Tejani Holdings Inc., the parent company of Charge Up, has his eye on extensive growth through 2021 and beyond.

Having arrived at 40 locations through a series of acquisitions, Charge Up is now set to reimage and renovate its stores, while continuing to grow organically through acquisitions and setting its sights on ground-up builds. Simultaneously, the chain is planning to expand its foodservice offering, launch a new loyalty program, delve into electric vehicle (EV) charging, brand its deli program and car washes, and innovate with new technology. For all this and more, CStore Decisions is recognizing Charge Up as a Chain to Watch in 2020.

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BEGINNINGS

Tejani arrived in the U.S. in late 2009. After finding a job at a gas station, he volunteered as an as“We’re a family-owned company, and so we do everysistant manager in return for learning the ins and outs thing,” he said. “I’ve changed trash bags, cleaned toilets, of the c-store business. By 2010, he had acquired and run the register, hooked up the pump. … ” The 18-hour opened his very first convenience store. days of hard work paid off. Today, at only 36 years of age, Tejani’s wife, Salma; his sister, Sultana; and his late Tejani helms a successful chain set for rapid growth. brother Usman, who passed away in 2019, joined him in After expanding through single- and multi-unit acquisirunning the business. “We’re a family-owned company, tions, Charge Up’s stores vary from 1,200 square feet to and we take a lot of pride in that,” he said. “Usman was a 10,500-square-foot truck stop. Now, it’s renovating its super talented and is always in our hearts.” locations to bring acquired sites under the same banner By 2013, the Tejani family began to acquire additional image, while also expanding the footprints of some stores. locations, and by 2015 the chain had branched into new “There’s a big branding expense that we’re incurring by towns. Initially the chain was called “Fuel Guys,” but the next year to get all our stores into one umbrella, unified family knew they needed a name that went beyond fuel, and maybe also with the (same) color scheme, too,” Tejani especially with EV charging on the horizon. said. “Currently, we are under contract on more than a few “We wanted a name that can relate to the future as well,” sites. “By December 2020, we’re looking at acquiring anTejani said. “So that’s where we came up with the name other seven to eight assets. (It’s) going to be a big year for Charge Up. Tomorrow, if we have electric chargers at our us because we’ll be going over 50 (locations) very soon.” sites along with fuel, the Charge Up (name) goes with Charge Up also has its sights set on expansion via everything — Charge Up Your Thirst, Charge Up Your Fuel ground-up builds. In that phase, Charge Up expects to — it’s a very multipurpose name.” develop a precise design and store size. Tejani expects cstoredecisions.com

July 2020 • CSTORE DECISIONS

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2020 Chains to Watch • Dandy

Charge Up plans to increase its fleet of stores, renovate existing locations and grow its foodservice offering in the year ahead.

It’s also launching a new loyalty program, delving into electric vehicle charging, branding its deli program and car washes, and innovating with new technology.

the offering to continue to vary between locations. Some stores will offer a branded food option, for example, while others may include a car wash.

FOOD CENTERED

Charge Up locations feature a variety of foodservice.

Ninety percent of its Louisiana sites, and some Texas stores, feature delis. Charge Up delis offer a set menu with chicken, beef, vegetarian and rice options.

“We do have about 10-15 items on the menu, and we take that specific menu and implement it everywhere else,” Tejani said. “Then later on, based on customers’ feedback, we changed it around. But we do work off some basic guidelines tested internally.”

Tejani sees food as an essential component for a c-store to master as today’s shopper seeks a place to fuel up and buy tobacco, essentials and food all in one location.

“We have one store over in East Texas where we do about $20,000 worth of deli (sales). It’s unbranded, and it’s very busy,” Tejani said. Among its plans for the year, Charge Up will brand all of its delis under one name.

In addition to delis, some Charge Up locations provide co-branded concepts like Hunt Brothers Pizza and Krispy Krunchy Chicken, as well as local food concepts.

“We’re also looking into venturing into a co-branding option, which is connecting with the tier-one quick-service restaurants, and having a full-branding option within our stores, too,” he said. In addition, the chain plans to introduce a cold case grab-and-go food option, and it’s working to create a dine-in concept with an extended menu.

TECH FORWARD

On the technology front, Charge Up is busy refining its back-office capabilities and preparing to launch a new loyalty program by early 2021. Meanwhile, the onset of COVID-19 impressed upon the chain the importance of integrating pickup and delivery capabilities.

“Our first mission is to focus on loyalty right now, and then later on, going towards how we can offer services like curbside pickup,” Tejani said.

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Charge Up is currently working through the approval process with cities to roll out EV charging, which it will test initially at five of its sites. “The average time for a car charge is about 30-45 minutes, and that gets the customer to come in and check out the Charge Up brand,” Tejani said.

Charge Up also features 15-plus unbranded car washes at its c-store sites. As it looks to reimage its acquired stores under the Charge Up banner and brand its deli program, it’s also looking at branding its car washes and building additional car washes to help grow traffic to sites and capture a larger customer base.

FUTURE VISION

“Charge Up is a brand that we grew from a grassroots level,” Tejani said, highlighting the chain’s rapid 10-year expansion. “When someone looks at the Charge Up brand, I want them to get inspired by the brand; if we have done it, you can, too.”

The key to success, he said, has been a driven, focused and hands-on commitment to the business.

“What Charge Up has done over the years, is that we have listened to our customers, and it has really worked for us,” he said. “I can assure you that in the next 10 years, we’ll be working even harder to grow, and we want to be recognized as one of the top 10 players in the industry — that’s the plan.”

While COVID-19 has impacted business, especially in Louisiana where strict lockdown measures were enforced, Tejani noted, “This has given us an opportunity to take a step back and understand how we can make this business even more service-friendly for our customers.”

Charge Up aspires to create a destination stop where all individuals feel welcome.

“You need to be obsessed with what you do in order to achieve what you want to achieve,” Tejani advised other young leaders. “Work smart, but work hard — extremely hard — and have faith. You must work hard in order to achieve your goals and dreams, and anything is possible — that is what I believe. If Elon Musk can sell you the moon, then you can certainly build a brand on earth.”

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2020 Chains to Watch • CITGO

CITGO

Still Going Strong The iconic retail brand is refreshing its image to celebrate the landmark 110-year anniversary and connect with a new generation of customers.

John Lofstock • Editor-in-Chief

Not many retail brands survive for 110 years, but CITGO has not only weathered the competition, it is refreshing its brand image to meet the challenges of a new generation. Today, the Texas-based oil company operates more than 4,600 stores coast to coast and has its sights sets on growing its marketer program over the next 12-24 months.

As CITGO continues to evolve and upgrade, CStore Decisions is recognizing the CITGO brand as a Chain to Watch.

CITGO first introduced its current “Centennial Image” in 2010, in celebration of its 100-year anniversary. Through the Illuminate Reimage Program, the iconic CITGO brand image is being illuminated with sleek, brushed aluminum cladding; eyebrow lighting; and under-canopy reflective paint.

“By illuminating that brand image, we are upgrading our trusted brand and strengthening the visual appeal 24/7. The fresh look will make CITGO stations stand out, especially at night, and will create an added element of comfort, 26

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safety and cleanliness at each location,” said Kevin Kinney, general manager of brand equity development for CITGO Petroleum.

These upgrades to the Centennial brand image reflect the constant innovations and improvements that have defined CITGO for 110 years. The new imaging elevates the existing CITGO Trimark symbol and channel letters customers recognize whenever they drive to a CITGO station.

LONG HISTORY

CITGO was founded on Sept. 2, 1910, as Cities Service Co. by a young entrepreneur and pioneer oilman, Henry Doherty. The original cstoredecisions.com

Cities Service logo featured the company name inside of a trefoil shape with a green and white color scheme.

Fast forward to 1965, Cities Service debuted its new marketing brand, CITGO, and the familiar red “Trimark” logo — retaining the first syllable of its long-standing name and ending with “GO,” symbolizing energy and progressiveness.

Today, every CITGO station is locally owned and operated, and, as such, local offerings range from hot biscuits in Maine to fresh-made peanut squares in Wisconsin to monster trucks in Florida.

One core tenet they all have in common, however, is cultivating a legacy of blending business with purpose, a prime example of which is the company’s collective work with the Muscular Dystrophy Association (MDA). For more than 30 years, money raised has helped fund research, provide equipment and send kids to summer camp.

“The philanthropic DNA of helping improve people’s lives is built on a solid foundation of CITGO history, vision and values — all of which have stood the test of time,” said CITGO’s Vice President of Supply and Marketing Karl Schmidt. “Blending business with purpose demonstrates that after all these years, CITGO still specializes in ‘cities service.’”

For more than 30 years, CITGO has focused its supply efforts on the wholesale channel of trade, which allows for significant diversity in its marketer and retailer operations programs to deliver increased brand value.

“Every one of the more than 4,600 stores flying the CITGO flag is locally owned and truly unique,” said Chris Kiesling, general manager of light oils marketing for CITGO. “We’ve set our sights on clearly demonstrating cstoredecisions.com

the many advantages of operating under the CITGO brand. Quality of fuel is increasingly important to motorists, so all three grades of our CITGO TriCLEAN gasoline are rated TOP TIER and available at every pump. Our Club CITGO loyalty and rewards app is super easy to implement and helps add loyal customers while increasing profit margins for the store.”

In addition, contactless payment methods such as Apple Pay at NFC- (near field communication) compatible pumps and increased security of EMV transactions give consumers peace of mind about their transactions.

“Many CITGO-branded store owners have made substantial investments in payment technology with the assistance of our POS and Dispenser Incentive programs.

This foundation allows CITGO to build the next generation of payment and loyalty opportunities that we’ll announce at our fall roundtable meetings,” Kiesling said.

“The Illuminate image boosts the appeal of our iconic brand with consumers. And store owners appreciate the improved lighting features, maintenance-friendly materials and seamless conversion process.”

Kiesling credited CITGO marketers for making a big difference in the retail offering. “Our customer service, flexible programs and educational opportunities help store owners overcome operational challenges and move ahead of the competition,” he said. “We’ve dedicated an entire website to helping store owners succeed, mycitgostore.com.”

For more on CITGO, including its COVID-19 response, view the full story at cstoredecisions. com/2020/07/02/citgo-still-going-strong/.

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Chains to Watch • Dandy

DANDY MINI MARTS

Embraces Innovation Dandy Mini Marts is growing in store count, technology and foodservice options, while maintaining its values as a family-owned and operated c-store, dedicated to helping its customers and communities for nearly 40 years.

Isabelle Gustafson • Associate Editor

Amid challenges including a global pandemic, Dandy Mini Marts is not only moving forward but innovating on the daily — opening new stores, adding a loyalty program and app, and continuously updating its foodservice offering.

All the while, the chain is staying true to its core values as a family-owned and operated c-store. For all this and more, CStore Decisions is recognizing Dandy Mini Marts as a Chain to Watch.

“Dandy has been in this business a long time, and we’ve continued to grow and innovate throughout the years,” said Marketing Director Bill Bustin.

Founded in 1983 with the opening of its first store in Covington, Pa., the c-store chain now operates 65 locations in the Twin Tiers region of Pennsylvania and New York.

Among its values, the company works to ensure customers receive prompt, friendly and courteous service, while providing quality products at a fair price in safe, clean and convenient locations.

Dandy also gives back to its communities through philanthropy programs, ranging from local Little League sponsorships and Girl Scout cookie tables at its stores to annual campaigns.

The Dandy Canes campaign, for example, has raised more than half a million dollars over the past 15 years for more than 100 local organizations during the holiday season.

And Dandy’s Pink Cups campaign, which takes place each October, has raised more than $50,000 for the Guthrie Clinic Breast Care Fund.

“Our customers know that Dandy is here for them, and we’re proud to be a member of their communities,” said Bustin.

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cstoredecisions.com

• Effective communication is a key ingredient in personalizing the loyalty experience.

• Collecting and effectively implementing data are two crucial steps in creating a loyalty program personalized to each customer.

CLASSIC MEETS MODERN

Dandy operates a variety of stores across the region, from small, rural communities, to major interstate highways, next to shopping centers, and near colleges and universities.

At just over 5,500 square feet, Dandy’s current generation of stores maintains a balance between classic convenience and modern quickserve restaurant (QSR), said Bustin.

“We certainly have design principles we maintain throughout multiple generations of builds, but we are always flexible to how our stores fit within the communities they are located in,” he said. “Consistency is valuable, but we’re not applying a ‘one-size-fits-all’ (approach) every time.”

The Dandy in Wysox, Pa., is a prime example.

Originally built by Victor Piollet in 1872, the building was in the Piollet family until the late 1930s but changed hands several times, most recently operating as a general store. Dandy recognized an opportunity to restore the historic building, and in October 2019, the company celebrated the completed historic revitalization with a community grand opening and ribbon-cutting ceremony.

As part of the redesign, Dandy constructed an addition to the original building that now holds most of the new c-store, including its kitchen, coolers and

shelves. The beer cave, seating area, store offices and restrooms are located in the original Piollet Mansion.

Dandy worked to preserve elements of the original mansion, from restoring the original doorway moldings, exposing more original interior brick and adding new walls with original exterior brick.

But the Wysox Dandy is just one example of Dandy’s design innovation.

“With almost 40 years of c-store industry experience, we’ve honed in on a spacious store footprint that packs in 28 cooler doors, large hot and cold beverage bars, kiosk-ordering stations, dine-in seating, a full kitchen and other amenities, all within an open and inviting atmosphere,” said Bustin. “The finishing touches on both the interior and exterior make a bold statement and showcase our brand’s potential as we look forward to future expansion and store refreshes.”

Its newly opened store in Elmira, N.Y., also features Dandy’s largest parking lot and fueling area, with 20

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Chains to Watch • Dandy

pumps and a variety of fueling options, including E85 and E15 flex fuels.

“This Dandy is one of only a few locations offering flex fuel in the entire region,” said Bustin. “We also offer compressed natural gas (CNG) at our Dandy in North Towanda, Pa., and a stand-alone CNG station in Sayre, Pa.” FOODSERVICE INNOVATION

Along with its design, Dandy has also been working to update its foodservice, adding new flavors and styles to keep pace with consumer trends, such as breakfast wraps, loaded fries and Dandy’s new Chicky Bisky — a fried chicken filet on a homestyle biscuit with honey and hot sauce.

“We’re always looking to innovate — whether that’s new products on the shelves and in the coolers, or brand-new Dandy menu items that come from our foodservice team’s test kitchen,” said Bustin.

Select locations, such as its new store in Elmira, N.Y., offer freshly ground, bean-to-cup coffee, along with other features like a flat-top grill for burgers and cheesesteaks and an extended line of specialty coffee drinks including lattes, macchiatos and chai, along with coldbrew coffee, fruit smoothies and milkshakes.

Dandy has also increased its number of beer caves and beer offerings to include hard seltzers and local craft beers, for example. And it’s piloted alcoholic, ‘Adult Slushies’ at one store in Athens, Pa., which has seen “super strong” results, Bustin said.

The menu also includes an array of c-store classics, ranging from subs, burgers, pizza, chicken, roller grill and more. And every quarter, the chain features a few different menu items as part of its Dandy Value Deals, so there’s always a low-cost, high-quality option available for breakfast, lunch or dinner.

“Our hand-pressed Dandy pizza is one of our customer favorites, along with our Dandy Deli line of subs, wraps and sandwiches,” said Bustin. “Cheesesteaks are always a big hit, and although we’re a few hours north of Philadelphia, our cheesesteaks are made with products from the Original Philly Cheesesteak Co. And of course, our regulars always come back for our Dandy coffee every morning.”

Dandy’s regulars will be happy to hear that, this month, the c-store chain is launching a new loyalty program, Dandy Stache Rewards + Pay, which features a new mobile app along with physical cards and key tags.

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Customers will be able to to earn and redeem points for free Dandy menu items, products from the shelves and coolers, as well as prizes. They’ll also save on fuel when using Dandy Stache Pay, and be able to pay for their in-store purchases using the app.

Part of what makes Dandy a Chain to Watch is its high standards, from foodservice to technology and more, said Bustin. And these standards start from the top.

“Our leadership team avoids complacency at all costs, and that filters down throughout all of our functional teams, field ops teams, and store managers and associates,” he said. “When a new campaign or initiative is launched, it’s ‘pedal to the metal’ until we’ve executed to our Level 10 standard.”

COVID-19 RESPONSE

The “pedal to the metal” approach has proved effective in all areas of Dandy’s business, including its response to the COVID-19 pandemic.

From the start, Dandy increased its cleaning frequency in-store and at the pumps, closed its dining areas and added extensive signage encouraging social distancing, hand-washing and mask-wearing.

Like the industry as a whole, it’s been a challenging time for Dandy, Bustin said, made more complicated by its geography.

“We have the added challenge of operating in both Pennsylvania and New York, so we are dealing with two separate sets of guidelines,” said Bustin. “That can get confusing for customers, specifically for the stores we have directly on the Pennsylvania/New York border.”

He said the credit goes to Dandy’s employees, who have been the driving force to keep its stores clean and communicate its new operations to customers.

“Our amazing store managers, associates and field operations teams are taking the COVID-19 operational challenges in stride.” CSD

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July 30 @ 2PM EST

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Make plans to join the National Advisory Group (NAG) and the Young Executives Organization (YEO) as the conference moves to an online format.

2020 NAG/YEO CONFERENCE AGENDA INCLUDES: •

Burning Issue Sessions

• • • • • •

Executing a Safer Retail and Foodservice Program Data Privacy Requirements: What Convenience Stores Need to Know Effective Leadership: The Best Ways to Manage People Employee Recruiting and Retention Strategies Emerging Trends in Foodservice What is Blockchain, and How Will It Affect You?

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Virtual Store Tours

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• • • • • •

Fuels Technology/Loyalty Programs Local Lobbying and the Legislative Process Foodservice Human Resources Leadership for Young Executives (YEO)

Category Management | Candy

CANDY’S SWEET REWARD STILL A

BIG FAVORITE

Annual sales on a steady track as consumers look to both chocolate and non-chocolate for a small indulgence during trying times.

Thomas Mulloy • Senior Editor

While COVID-19 has caused upheaval in multiple product markets across the economic spectrum, consumer demand for candy’s spark of enjoyment has held steady with both chocolate and non-chocolate lovers.

“Yeah, chocolate’s doing well,” said Tim Young, category manager, center store, for Holcomb Oil’s Five Star chain with 85 stores in Kentucky, Indiana and Tennessee. “Now I will tell you, though, that the peg candy set has really, really done well. … That’s definitely seen a tremendous amount of growth.”

Sales data from Nielsen for the Total U.S. Convenience channel supports that observation. Despite a dollar sales drop-off of 7.8% during the 13 weeks ending May 23, 2020, roughly paralleling the arrival the COVID-19 crisis and lockdown measures nationwide, chocolate sales for the 52-week period were up by a half percent.

Non-chocolate confections performed even better, with a 13-week dip of just 0.8% and a surprisingly strong increase of 3% for the year.

It’s an especially bright outlook, considering the National Confectioners Association told CSD that, with so many convenience store consumers staying home in response to 32

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coronavirus pandemic concerns, overall trips are down at c-stores and on the rise at grocery stores.

Young agreed that his chain felt that pain in March and April. “But May,” he said, “we came storming back in May — had a just absolutely great, great month.”

There may be a simple explanation for the resurgence. With all of the difficulties that consumers faced in the wake of the pandemic, many might have felt that they’d earned the right to treat themselves.

“There’s definitely a little bit of indulgence taking place,” said Nicolette Jaeger, director of merchandising and loyalty for the The PRIDE Stores, which operates 16 locations throughout the Chicagoland area. “We’re going through something that we haven’t experienced before, and everybody’s trying to find the new normal and trying to cope with it; and sometimes we turn to food or snacks and sweets, especially.” cstoredecisions.com

fast facts:

• Innovation in both novelties, classics drive candy sales. • King size, share size still stand tall.

Category Management | Candy

Despite a decrease in foot traffic at c-stores due to COVID-19 lockdowns, candy dollar sales data is still tracking at an annual increase, especially for non-chocolate items and peg candy.

INNOVATION PIQUES CONSUMER INTEREST

The confection industry is doing its part to keep consumer interest sweet.

“The innovation this year has been insane,” said an impressed Jaeger. “We saw a lot of sales start to pick up with ... have you heard of the Finders Keepers? Those little chocolate eggs with the toys inside of them? Yeah, those. (And) the Kinder Bueno bars are great.”

And while novelties and upscale offerings generate excitement, candy makers haven’t overlooked old classics — instead, they’ve freshened them up with new packaging. Successfully, according to Young.

“So, Hershey came out two or three years ago with some of the snack tubes. Ferrara (a related company of The Ferrero Group) came out with, I guess, more of the traditional candy — like the Lemonheads, Red Hots — in more of a tube-type package,” Young said. “So we’ve definitely seen that do well for us. A little better price point for a value consumer.”

Jaeger said that there is a bit of a larger packaging trend with non-chocolate candy, “but it’s not as dominant as chocolate,” she noted.

And attention-grabbing signage like danglers that simulate a 3D-popout effect help pique the interest of browsers in the candy aisle.

“That segment as a whole, they’re just continually, continually bringing in new innovation and that’s why they do so well,” Jaeger said. “Whether it’s new product, or new packaging, they find fun and creative ways to make their products stand out.”

While that innovative attitude drives manufacturers to do things outside of the mold, smart c-store operators are making the most of sound merchandising principles to keep satisfying the sweet-toothed shopper.

“

There’s definitely a little bit of indulgence taking place. We’re going through something that we haven’t experienced before, and everybody’s trying to find the new normal and trying to cope with it; and sometimes we turn to food or snacks and sweets, especially.

“

– Nicolette Jaeger, director of merchandising and loyalty, The PRIDE Stores

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“Like the traditional candy bar,” Young said. “We are still running a solid number with candy bars. And we’re heavily, heavily skewed in king size. We still carry standard.

But most of your promotions are driven off of king size.”

The PRIDE Store’s Jaeger echoed that wisdom. “Our strategy is to place share size and king size on the top racks — more of an impulse buy — and then to definitely work novelty candy as close to the registers as possible.”

Five Star also does suggestive sell competitions every month, Young noted. “I try and rotate it around different parts of the store.

Any time we do that, we see a tremendous amount of success,” he said.

VARIETY IS ESSENTIAL

Five Star employs the same planograms for all of its stores, which helps to simplify as much as possible, according to Young. He has been working on a display extension plan, as well. Its candy display is the fairly standard five-feet height, but Young asked for a bar across the top that allows for more peg candy display space.

“I picked up 16 SKUs,” he said. “So I definitely feel that when I looked at the data, we’re definitely seeing an increase in variety, and people are gravitating to that selection.”

Plus, the added room allows smaller stores to offer more variety. “I think, from what I’ve learned, people like that,” advised Young.

“They really enjoy having an opportunity to kind of pick what they want and not just take what you have to offer.” CSD cstoredecisions.com

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Category Management | Snacks

Snackers Dive into the

BIG BAG

Salty snacks keep savory numbers while retailers do their part with innovative merchandising and promotions.

Thomas Mulloy • Senior Editor

As the COVID-19 pandemic depressed foot traffic in convenience stores across the nation, sales of snack foods performed surprisingly well in the midst of the economic downturn.

Some snackers kept right on munching — albeit out of a different sized bag.

“COVID has certainly shifted consumer buying through the first half of 2020,” said Joseph Bortner, center store category manager for the Rutter’s chain, which operates 78 stores in Pennsylvania, Maryland and West Virginia. “Within salty, we’ve seen a dramatic shift from single-serve packages to larger, take-home-sized bags.”

Bortner believes the change in packaging preference was primarily due to the number of consumers traveling far less frequently because of stayat-home orders in Rutter’s home states.

“They were planning for meals/snacking at home vs. on the road,” he added.

While the coronavirus pandemic sent c-store dollar sales down nearly 10% for both salty snacks (-9.8%) and sweet snacks (-9.2%) for the 13 weeks ending May 23, 2020, salty snacks’ performance over the course of the previous year held steady, seeing a negligible decline of just 0.3%, according to Total U.S. Convenience data from market analyst Nielsen.

Sweet snacks didn’t fare as well, dropping 4% for the 52 weeks ending May 23, 2020. Store operators noticed packaging preference remained unchanged, as sales matched the dip in store foot traffic.

Peter Kempton, category manager for Westlake, Ohio-based TravelCenters of America (TA), operating more than 260 locations nationwide, said his chain is finding ways to adapt to the pandemic’s effects.

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fast facts: “We’ve recently just put in some big bags (of) salty (snacks), and that started out pretty well,” said Kempton. “That’s something that typically we do a little bit better in — larger pack types — with the travelers we have. It’s usually over-theroad drivers or people traveling to vacation spots, things like that. So, we benefit a little bit from larger pack types than maybe some.”

Kempton said larger cans of Pringles, Goldfish and ready-to-eat popcorn are also selling well.

Sometimes the key to maintaining those sales is simply good ol’ merchandising strategy, Bortner noted. “Overall, a rule of thumb would be to make sure it’s placed in a high-traffic area of the store,” said Bortner, “with signage properly calling out the product and pricing. I also find engaging consumers often helps sell product.” cstoredecisions.com

July 2020 •

• Home snacking spurred shift to larger packaging.

• Retailers trying in-house display and promo innovation.

CSTORE DECISIONS

37

Category Management | Snacks

Snack consumers are choosing larger packages, especially for salty snacks, to enjoy while homebound during the COVID-19 pandemic.

Bortner advised posting signage asking if the customer has tried “xyz” product or a reminder that “xyz is two for one right now,” or whatever your current promotional price is.

STRATEGIZING SNACK SETS

Meanwhile, Kempton said TA has been strategizing space planning around adjacencies in product display. While so much of TA’s customer base is the professional driver, he said the chain is also trying to mix things up a bit more to attract the automobile traveler.

“Normally we do have a lot of four-wheel traffic, and we really need to start catering to those guys — just as far as what sets we have in,” he said.

“One thing we are trying to do is grow the salty category. What different things can we do that we haven’t done in the past to try to drive that?”

Finding the answers sometimes means reaching out to customers before they enter the store.

Kempton said TA has been using email blasts

“

“

COVID has certainly shifted consumer buying through the first half of 2020.

Within salty (snacks), we’ve seen a dramatic shift from single-serve packages to larger take-home-sized bags.

– Joseph Bortner, center store category manager, Rutter’s

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and other marketing to appeal to those fourwheel drivers. He’d like to do more — including bundling across categories.

Kempton is interested in testing an indulgence snacking set that would include “things like a Reese’s snack mix or Werther’s popcorn,” he said. In other words, taking products that might fit in both salty and the bagged candy section and “make a home for some of those oddball items that could fit in multiple places.”

That kind of merchandising innovation on the part of retailers may make a big difference in minimizing the effects of the COVID-19 downturn that is still affecting multiple industries across the economy. As with any business, it’s crucial to continually assess the markets, plan and adjust.

“Everyone’s taking a hard look at their business right now and formulating plans to make the most out of the remainder of the year,” Rutter’s Bortner said.

Taking action to address the pandemic’s effect on c-store fortunes is smart business. It’s probably a strong reason why Bortner is optimistic that the economy is on its way back.

“COVID’s effects were felt across retailers the last few months, and I’ll likely believe we’ll see lasting impact for months to come,” said Bortner. “But I believe we’re through the worst of it. Consumers are coming back more and more each week as we become more comfortable with the new normal.” CSD cstoredecisions.com

“WHEN YOUR DRIVERS ARE NO-SHOWS, I GRAB MY KEYS.” RANDALL RHODES MARKET LEAD DRIVER

You can’t sell produce you don’t have. These days, retailers either have too many trailers or too few drivers, delaying perishables from delivery.

So when a retailer had 10 truckloads of fresh produce and no drivers, Randall and his team quickly subbed in for their drivers, letting the retailer avoid delays and empty shelves.

The produce was all delivered, ripe and on time.

CanDoDoneDaily.com for the full story Del Monte word mark and the Del Monte Shield Logo are registered trademarks used under license from Del Monte Foods, Inc. © 2020 Del Monte International GmbH . All rights reserved.

Category Management | Beverage

CRACKING THE COLD VAULT As state lockdown orders subside, c-stores look to the provide value and the best beverage mix for their regions to drive cold vault sales.

Erin Del Conte • Executive Editor

The arrival of the COVID-19 pandemic in March altered plans and beverage resets and impacted sales at convenience stores — for better or worse, depending on a store’s location.

“As COVID-19 began to restrict, or entirely eliminate, daily routines, convenience sales and trips declined,” said Greg Doonan, communications manager of Nielsen.

“Within the beverage space, sales shifted from single-pack — or smaller-pack — offerings to larger package sizes as consumers stocked their pantries.”

At convenience stores, total beverages dollar sales dipped 4.3% compared to the same period a year ago for the 23 weeks ending June 6, 2020, according to Nielsen’s Total U.S. Convenience measurement. Energy drinks and bottled water saw the largest declines.

Total beverages account for about 20% of Nielsen-tracked convenience store retail (UPC-coded) dollar sales, explained Doonan. Energy drinks account for more than 30% of those beverage dollar sales, while water accounts for 6.7%, sports drinks just over 9%, ready-to-drink (RTD) coffee just over 4%, and kombucha and club soda both less than 1% of dollar sales.

Sports drinks, kombucha and club soda comprise the ‘Top 3’ growth drivers in c-store beverages — contributing the largest numbers of dollars vs. the same time period a year ago, according to Nielsen.

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cstoredecisions.com

Compared to the same period a year ago, RTD coffee dipped 1.3% at c-stores, but despite total RTD coffee declines, cold-brew coffee offerings were up 49.1% and account for more than 10% of total RTD coffee dollar sales, Doonan said.

three weeks. “We’re a c-store, so of course we’re going to be open, but they shut down all the liquor stores and nonessential businesses,” Wallace said.

“We have four stores down there that also sell beer, wine and spirits. Their water sales were up. Their CSDs (carbonated soft drinks) were up. Their whole beverCOVID CHANGES THE GAME age category was just going up through the roof.”

At Idaho Falls, Idaho-based Good 2 Go Stores, with Other Good 2 Go locations in New Mexico without 62 c-stores in Idaho, New Mexico, Wyoming, Coloraalcohol sales were still trending up, but not as high as do, Utah and Montana, Beverage Category Manager the other four.

Waldo Wallace saw a major difference in beverage In Arizona, sales remained steady, with a slight sales from state to state as regions responded differbump despite some supply issues from a couple of ently to the COVID-19 pandemic. the large brands; and in Wyoming, which is a big Overall, being an essential business during a pantourist destination, beverage sales were a little slower demic has resulted in increased traffic to the stores. than usual. Meanwhile, “up here in Idaho, sales were “Our sales are fantastic,” he said. just phenomenal. We sold a ton of Gatorade, PowIn New Mexico, in April, when the state shut down erade. We were selling a lot of water. CSDs were sodue to COVID-19, Good 2 Go saw a big rush on so due to out-of-stocks (due to supply chain issues),” 24-packs of water, but the surge slowed after the first Wallace said. cstoredecisions.com

July 2020 •

CSTORE DECISIONS

41

Category Management | Beverage

West Des Moines, Iowa-based Yesway sees premium enhanced water, functional energy and CBD/Hemp trending in the cold vault.

TRENDS AHEAD

In 2020, Yesway has reduced the size of innovation in its sets, focusing on the innovation items that fit its consumer needs and profiles in both the Yesway and Allsup’s sets.

“It has been very successful so far this year,” noted Dana Renfro, category manager for West Des Moines, Iowa-based Yesway, which operates more than 450 locations in nine states. “It has also allowed us to focus on the categories that are trending and showing growth, while remaining true to our current consumers and fulfilling their needs.”

Premium enhanced water, functional energy, and CBD/Hemp are the three categories that stand out when it comes to growing trends in the beverage category.

“Consumers are wanting to get some sort of health benefit out of what they are drinking,” Renfro said. “Most consumers are not as focused on price alone. Instead, they are more focused on value, and the benefits the beverage can bring to them and the environment.”

That value, Renfro noted, is a key driver, which Yesway delivers through a broad assortment, loyalty offers and promotions.

fast facts: • Total beverages dollar sales dipped 4.3% compared to the same period a year ago for the 23 weeks ending June 6, 2020, per Nielsen.

• Sports drinks, kombucha and club soda comprise the ‘Top 3’ growth drivers in c-store beverages.

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Innovation is also crucial, “but with that being said, you have to focus on the right innovation for your market.”

Yesway sees both cold-brew coffee and kombucha doing well in the cold vault.

“They are great offerings for the segment of consumers who are looking for that new, better-for-you item, that is very trendy in the beverage category,” Renfro said.

Good 2 Go tested kombucha before it peaked but didn’t find success with it in the markets it serves. “I think, for our stores in our area, it’s probably pricing itself out of the market. … It’s hard at a c-store to get a $5 ring on a kombucha,” Wallace said.

Due to COVID-19, resets remain on hold at the stores, Wallace explained, “so we do have cold brew in the sets, but not currently in all of our stores.”

The chain has been seeing average sales on cold brew, but it’s selling better than some other RTD coffee products in the cold vault.

Good 2 Go recently added a product called Liquid Death, which has piqued customer interest. What is Liquid Death, you ask? It’s water. Customers can select the sparkling water or mountain water variety. “I think the packaging is what’s driving the sales,” Wallace said. “I’m seeing it over in Wyoming. I’m doing pretty good with the product, and we brought it in maybe three weeks ago.

We’re selling about a case to a case and a half per week per store.”

“Packaged beverages continue to be a strong consumer destination,” Renfro said. “Partnering with the key suppliers is a great way to better understand consumer insights and ensure you align your assortment to meet their everchanging needs.” CSD cstoredecisions.com

MORE

LESS

SAVES

MORE

CHOICE

WASTE

MONEY

EFFICIENT

Foodservice | Co-branded & Proprietary

C-STORES EXPAND

Foodservice Programs While the COVID-19 pandemic has presented numerous challenges for retailers, many foodservice programs, both proprietary and co-branded, are going strong — even growing — as customers look for quality options on the go.

Isabelle Gustafson • Associate Editor

Whether it’s proprietary or co-branded, made to order or grab and go, foodservice is an increasingly important part of the convenience industry. Retailers consider their options and work to expand foodservice menus and availability.

To date, Wisconsin-based Kwik Trip has rolled out its new proprietary chicken program to 450 of its 600-plus locations, with plans to offer the program at all stores by October.

“We felt the timing was right to take our food program to the next level,” said Kwik Trip Retail Food Service Director Paul Servais.

He noted that there were more than a few factors that went into that initial decision back in November 2018 — namely, Kwik Trip’s in-house resources: strong foodservice teams and leadership in all stores, a robust food safety program and training department, great corporate infrastructure, a chef to create the recipe, procurement to find and secure chicken suppliers, its own distribution to move the fresh chicken to stores, design teams and buyers to find the right equipment and get it installed.

The recipe was nailed down in February 2019, and the program was added to the first Kwik Trip store. Nine more stores were added in March and April 2019. By June 2019, there were 25 stores with the program and a plan in place to roll out to all stores by October 2020.

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“Customer response has been unbelievable,” said Servais. “... Chicken has given our whole food program more credibility, and instead of cutting into sandwich sales (burgers, pizza, etc.), we are selling more of this, too.”

FOOD FOCUS

While not all of its 26 locations have the space for new programs, Cruizers Director of Food Service Chris Postlewaite, who joined the North Carolina-based chain in May from Texas-based CEFCO, foresees expanding Cruizers’ chicken program to all future locations.

He said the chain is “still trying to develop a brand and identity around foodservice” but will focus primarily on chicken and pizza.

“I would say of the 26 stores today, we probably only have maybe six that are heavy in foodservice, and we want to be able to expand that,” said Postlewaite.

Currently, Cruizers operates a fresh, hand-tossed pizza program in four of its stores, which Postlewaite plans to roll out to more locations “as soon as possible.” As for chicken, the focus will be on grab-and-go convenience, but Postlewaite’s not ruling anything out. cstoredecisions.com

Kwik Trip developed a proprietary fried chicken program, including white and dark meat, tenders, whole chickens, meal deals and more, with plans to roll out to all of its 600-plus locations by October.

July 2020 •

CSTORE DECISIONS

45

Foodservice | Co-branded & Proprietary

Cruizers Director of Food Service Chris Postlewaite said the chain is working on developing a brand indentity around foodservice, but will focus primarily on pizza and chicken. He foresees expanding Cruizers’ chicken program to all future locations.

“We’re going to concentrate more on tenders than we are bone-in chicken, but we also don’t want to limit ourselves in some locations where bone-in chicken may be an opportunity for us,” he said. “I’m going to sit back and evaluate and figure out exactly what Cruizers is best at and expand on that offer.”

Kwik Trip’s best-sellers are the three-piece tenders and two-piece bone-in dark meat. But the chain also added a meal deal — eight-piece chicken and family side — as well as rotisseriestyle whole chickens, with plans to expand to all locations by October.

“We offer these hot in our cases during afternoon drive time and have a $9.99 whole bird and family side combo that is gaining strength,” said Servais.

While he sees a proprietary program as the best option for Kwik Trip, Servais recognizes that cobranded programs can be a great alternative for other retailers.

“These companies have a plug-and-play program and the expertise to help you be successful,” he said. “If I were out on my own, I would not hesitate to use a branded program — a much shorter learning curve.”

Cruizers operates a Subway at one of its locations, and Postlewaite has experience with numerous other quick-serve restaurants (QSR).

Like Servais, he believes branded foodservice can be a great option for some c-stores, “when you’re getting started, but even if you’re a larger chain.”

“I’ve mocked a lot of my training materials that I’ve used in the past from Subway because they’re the largest franchise, I guess, in the world. They pretty much have it down pat,” he said. “Modeling things around what some of the national brands have done can be very beneficial.”

Mike Singhani, manager of Homerville, Ga.based One Trip, which operates two stores, chose to partner with Krispy Krunchy Chicken back in 2015 because of the quality of the food, first and 46

CSTORE DECISIONS •

July 2020

foremost, and the lower startup cost.

“Having a brand image always helps,” he said. “It’s the benefits of having a bigger franchise, but not the cost. … It just works for us because we didn’t want to start our own restaurant.”

He said the most popular Krispy Krunchy products among customers are the wings and the tenders.

COVID-19 CHANGES

Among other operational challenges, COVID-19 has affected many retailers’ foodservice programs. But Servais said Kwik Trip’s chicken has remained strong, along with an increase in larger orders.

“With so many food options closed, guests quickly found our fresh fried chicken and have supported it,” he said.

Cruizers temporarily suspended some foodservice options, including roller grills and self-serve drink refills.

But, like Kwik Trip, its chicken program has been growing, along with other grab-and-go items, Postlewaite said.

And while, on a personal level, starting a new position during a global pandemic has been “a little isolating,” he remains optimistic, for his role and the industry overall.

“Being in convenience stores, things change every day, every month, every week, every year, so you just roll with it,” he said. “I think that there will be some adjustments that we’ll have to make, but in c-stores, I don’t think it’s going to have quite the impact that it may have in other environments.” CSD

fast facts: • COVID-19 is bringing new challenges to c-store foodservice operations.

• Co-brands offer plug-and-play programs and the expertise to help retailers achieve success.

cstoredecisions.com

Technology | Cash Management & ATMs

WIRED for

Ca$h

Technology is making cash management easier as efforts rev up to make the ATM more than just a cash machine at c-stores.

Thomas Mulloy • Senior Editor

For most retailers, the process of keeping cash safe has evolved since the days when c-stores spent hours counting dollars ahead of nightly bank drops.

The principle is the same — minimize the window during which the cash is vulnerable — but technology is changing how retailers manage money.

Joseph Bickham, president of Fuel City, with seven stores in the Dallas-Fort Worth metroplex, is enthusiastic about the system he uses.

“You go ahead and deposit into the safe, and then (you get) a provisional credit at the end of the day, and so it’s no longer your money, and you don’t have to fiddle with it,” Bickham said.

At that point, none of Fuel City’s people need to count that money. Only the armored carrier has access to open the safe. Any discrepancies are handled when the bank performs a physical count of the cash.

For store employees, that’s a safer drop. No pickups. No deposit drop-offs at the bank.

From a cashflow angle, the system is nearly instantaneous. Fuel City’s safes feature dispenser cassettes that hold smaller cash denominations to be dispensed when employees need to make change.

“You can buy five pennies,” joked Bickham. “It’s hard to buy five pennies, but you can.”

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Butte, Mont.-based Town Pump updated its cash and retail inventory control systems last year, according to Michelle Arthur, the 103-store chain’s loss prevention director and tobacco buyer.

Town Pump uses a PIN-code system with a paper trail. “So if you need access to that store fund, we have a paper trail as to what time and who accessed it,” Arthur said, “instead of leaving it locked in a drawer or locked in a safe that doesn’t have a paper trail.”

Like at Fuel City’s stores, safes operate like vending machines for making change — associates insert a large bill into a feeder on the safe, and it spits out the smaller denominations or coins.

“It keeps track of everything they put in that safe, everything that they removed from the safe,” she added.

“And then as people account the next day, there isn’t any freedom there to cook the books.”

Town Pump also employs multiple security cameras, which allows for matching video and paper trail time stamps when investigating any large cash or inventory shortfalls. cstoredecisions.com

July 2020 • CSTORE DECISION

49

Technology | Cash Management & ATMs

fast facts: • Tech minimizes paperwork, enhances people work.

• Cash management systems mean faster, safer deposits.

• More ATM functions could drive c-store foot traffic.

Cashiers at Dallas-area Fuel City stores make physical cash drops into an electronic safe that, once recorded, are accessible only to the armored carrier and bank personnel. The virtual deposits are credited to Fuel City’s account with discrepancies adjusted later.

The system keeps money and employees safe while improving cash flow for the company.

For Fuel City, the process of instituting the new technology and practices took some time, Bickham said. Probably a year and a half of planning, and the same amount of time for installation and implementation, Bickham noted. “And, a lot of time; a lot of thought; a lot of preparation — but super worth it,” he said.

ATMS EVOLVE

But what about the frictionless payment trend?

Will that make cash systems obsolete? According to David Tente, executive director, USA, Canada & Americas, for the ATM Industry Association (ATMIA), rumors of cash’s demise have been greatly exaggerated.

“Cash is still alive and well,” said Tente.

The very same technology making cashless retail possible is also improving the relevance of ATMs, bringing ease of use and wider functionality. ATMIA is spearheading the Consortium of Next Gen ATMs, a group of more than 300 ATM makers, retailers and tech companies on the verge of remaking the cash machine.

With the desire for touchless experiences, more secure transactions and lower operating costs, personal handheld devices will play a significant role in the ATM of the future.

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“So you might actually have ATMs out there that don’t even have a monitor,” Tente said. “Because they don’t need one — or keypad, because all that can be done through the mobile device of the customer.”

And while new software will improve security for the machine itself, customer mobile device security is an added piece of the puzzle.

Tente cited the success of Walmart’s money services business inside its stores. “Well, if you can do that on an ATM, in a smaller c-store, for example, that’s another revenue opportunity and another thing that might bring somebody into that store,” Tente said.

Beyond simple cash dispensing, added functions could include purchasing event tickets, money orders, money transfers, bill pay, check cashing. The list is long, but the goal is the same — to make purchasing easier for consumers.

One thing hasn’t changed: The focus is on the customer.

“So we’re trying to use technology, leverage technology, as best as we can so that we can shift our key assets and our time and attention from paperwork to people work,” Bickham added.

“And that’s why we spend money and invest in technology.” CSD

cstoredecisions.com

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2/21/20 9:15 AM

Operations | Loyalty & Forecourt Marketing

Marketing

to C-Stores’

STRENGTHS C-stores promote products and build loyalty with app-based rewards programs while adjusting to customers’ evolving needs during the COVID-19 pandemic, in-store and at the forecourt.

Isabelle Gustafson • Associate Editor

“Loyalty is built through convenience and a sense of appreciation,” said Friendly Express Director of Marketing & Foodservice Gary Sellers. “The challenge is to address both in overall marketing strategies including loyalty platforms.”

Friendly Express, which operates 34 stores in southeast Georgia, debuted its new loyalty program integrated with private-label debit in March, developed in partnership with ZipLine, which was recently acquired by PDI. The Express Rewards program gives customers incentives like fuel discounts, clubs and ‘Surprise & Delight’ offers, which Sellers considers a “fresh spin on rewards.” Based on the cumulative amount spent inside the store, customers are rewarded with free items.

The clubs, he said, are more of a traditional loyalty offering, which reward customers with a free product after a certain amount is purchased.

The key, he added, is having great vendor support.

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fast facts: • C-stores benefit from marketing their strengths, like convenience and options.

• Adding contactless, touchless payment options can help draw customers during the COVID-19 pandemic.

“We have vendors fully funding a club inside a category while being assured exclusivity in the category,” Sellers said. “Surprise & Delight is also a great way for vendors to push new items — a fresh spin on sampling.”

Also upping its loyalty game is York, Pa.-based Rutter’s, which recently launched a new app in partnership with Paytronix. The app was designed to give Rutter’s Rewards customers more personalization, like the ability to connect to their Facebook profile picture and receive VIP offers.

The Rutter’s Rewards program enables customers to earn cents off on fuel with in-store purchases, in addition to an everyday three cents off. Members can also view their fuel rewards, monthly promotions and VIP-only offers, as well as search for store fuel prices and amenities.

Rutter’s Director of Fuels, Forecourt and Advertising Chris Hartman said the goal with the new app was to adapt to technology trends.

“We were the first c-store chain to create an app, over 10 years ago, so we knew what we wanted and knew it was time to move on to our 2.0 mobile app,” he said, adding that the chain has “big plans for additional features.” cstoredecisions.com

July 2020 • CSTORE DECISION

53

Operations | Loyalty & Forecourt Marketing

Friendly Express’ goal was similar: adapt to the current technology in order to reach a more diverse group.

Considering the current climate and challenges, Sellers said, customer response has been very good.

“Almost all of today’s customers have one thing in common,” he said. ”Technology.”

POSITIONED FOR SUCCESS

fuel rewards earned between March 1 and May 31 were given a 120-day redemption period, versus the usual 60 days.

Rutter’s is also continuing to promote cleanliness, value and convenience, while adjusting its offering to fit customers’ needs. For example, it’s focusing on products that come in larger quantities, such as take-home meals and its Spiked Slushie Party Bags, as well as other in-demand products like hand sanitizer.

“When customers change their needs, we have to adjust our marketing to let them know we can satisfy those needs,” said Hartman.

Ultimately, he sees the convenience industry as well positioned for success, with customers looking for things like convenience, limited exposure and fewer total stops. But marketing to their We must take advantage of our strengths through strengths is what will set conveour marketing. The key points to focus on are nience stores apart.

“We must take advantage of cleanliness, convenience and options. If we can our strengths through our marmarket and execute on those three things for our keting,” said Hartman. “The key points to focus on are cleanliness, customers, the convenience industry should be convenience and options. If we able to find sustained success in the post-COVID can market and execute on those three things for our customers, world. the convenience industry should be able to find sustained success — Chris Hartman, director of fuels, forecourt and advertising, Rutter’s in the post-COVID world.” CSD Technology provides advantages across all aspects of the business, from the store to the forecourt, especially during COVID-19.

With current forecourt promotions focused on cents off per gallon for Express Debit users, Friendly Express is able to provide “completely touchless transactions inside and out, with the exception of the fueling nozzle.”

At Rutter’s, NCR Optic screens enable the chain to advertise and provide contactless payment at the pump.

In an effort to help its customers during the pandemic, Rutter’s extended the redemption period on fuel rewards for Rutter’s Rewards members. All

“

“

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cstoredecisions.com

CStoreDecisions.com is geared toward C-Store retailers, convenience store suppliers, and distributors looking to stay abreast of industry trends, new product offerings and category management best practices.

CStoreDecisions .com Making Connections that Drive Business

We use the latest media technology, delivering content the way you want it: print issues, digital issues, enewsletters, and videos.

Use CStoreDecisions.com to help you strengthen your peer network with social engagement through Twitter, LinkedIn, Facebook, YouTube, Pinterest, and Google+.

Browse, bookmark, share and interact with the most relevant industry content and people in the market.

Thank you to our Key Partners:

PRODUCTShowcase

Virgin Unbleached Cone Packs Consumers who choose OCB products for their quality and craftsmanship will be excited to see Virgin rolling papers in a new form: pre-rolled and equipped with a tip to offer an easier way to pack, fill and enjoy. As part of the OCB Virgin product line, the cones feature a natural brown hue and always-sticky natural acacia gum adhesive. The cones are made of unbleached, chlorine- and dye-free fibers that are responsibly harvested. Vegan and GMO-free, the paper is ultra-thin and lightly porous for a slow burn and truer taste, with minimal ash.

The Republic Group

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Fried Food Packaging

Hybrid Lighter The new Scripto Hybrid lighter is the perfect crossover of a multi-purpose lighter and pocket lighter. The Scripto Hybrid lighter features a refillable tank, extended nozzle for safer lighting, adult-friendly push button ignition and adjustable flame. Available in five colors: blue, green, red, white and black. The Scripto Hybrid lighter is available in a 50-count display-a-tray and one-pack open stock with a manufacturer suggested retail price (SRP) of $1.99 per lighter.

Calico Brands Inc.

marketing@calicobrands.com

www.calicobrands.com

Jalapeño Cheddar Sausage Johnsonville’s new Ultimate Jalapeño Cheddar Sausage is a great addition to cstore foodservice options and can be used to increase roller grill profits or used for a made-to-order concept. The new Ultimate Jalapeño Cheddar Sausages have a four-hour hold time, come fully cooked, are frozen for storage convenience, are available 10 pounds to a case and are made with fresh cuts of premium pork, real diced jalapeños and melted cheddar cheese. All products in the Ultimate Sausage line can be prepared with multiple cooking methods, such as the roller grill, microwave, flat top griddle, gas grill, steamer and convection oven.

Fry Baby hinged 6”x 3” clear base and lid joins the award-winning Crisp Food Technologies line. Perfect for french fries, chicken strips, nuggets, wings and more at a cost less than coated paperboard box. All Crisp Food Technologies containers keep fried foods hot and crispy for 30 minutes in transit for rapidly growing delivery and takeout across all foodservice channels. The unique, patented, convection cross-flow design relieves moisture and condensation while maintaining food temperature.

Through-the-closure ventilation and raised airflow channels in the bottom of the container combine with venting in the lid to ensure fried foods remain both crisp and hot.

Anchor Packaging

www.anchorpackaging.com

Johnsonville LLC

(800) 837-5391 • www.cstore.johnsonville.com

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PRODUCTShowcase

Smart Label Solution Grab-and-go food purchases have grown in importance for your c-store’s bottom line as all foodservice providers look to adapt during this challenging time. The Date Code Genie makes labeling for grab-and-go meals easy, safe and efficient. Centrally managed, cloud-based software controls multiple locations; easy to design and print a variety of labels for prep, grab and go, branding, promotions and more; SecureIt tamperevident, reusable, permanent and dissolving adhesives available; quick set-up, simple operation and professional support.

National Checking Company (NCCO)

(763) 202-9719 bcardinal@ncco.com

www.ncco.com/date-code-genie

Commercial Coffee Brewer Collectible Pouches Swisher Sweets Original Red collectible summer pouches are available only for a limited time. With four unique Fourth of July-themed designs, this seasonal, limited-time offer is destined to be in high demand. The timeless taste and the festive pouches will provide many reasons for adult consumers to embrace the Summer is Sweet lifestyle. Swisher Sweets Original Red collectible summer pouches are available in a variety of market-driven price points, but only while supplies last.

Swisher International

Curtis announced the nationwide availability of the GemX IntelliFresh Commercial Coffee Brewer with FreshTrac. Curtis FreshTrac replaces audible alarms and mechanical timers with a simple, intuitive and customizable system of three LEDs that glow and flash, letting operators track coffee freshness from across the room. Operators can choose from two proven Curtis operating systems: G3 GemX with its universal control module and easy-to-read, true-green LED display; or G4 technology with its large 4.3-inch icon-driven interface, onscreen instructions for fast, intuitive training and real-time feedback on the brewing process, and a USB port that easily transfers recipes from store to store.

Wilbur Curtis

(800) 874-9720

www.wilburcurtis.com/microsite/gemx

www.swisher.com

Single-Dose Medicine Bottles Coming to P&G Convenience October 2020 — Vicks 1 Dose Bottles. Designed for convenience only, Vicks DayQuil and NyQuil will be available in single-dose, one-ounce bottles and are expected to drive incremental sales of $11 million. Shipping Oct. 1, 2020. Convenient, portable and great for consumers on the go, these pre-measured single-dose bottles are made for immediate use and have lower cash outlay versus today’s liquid outlets. Vicks 1 Dose Bottles have strong retail margins, a great entry price point and fast turn, eliminating expiration concerns.

Procter & Gamble, P&G Convenience

www.pgconvenience.com cstoredecisions.com

July 2020 • CSTORE DECISIONS

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PRODUCTShowcase

Smokeless Tobacco Alternatives Following the successful closing of a substantially oversubscribed $9.75 million growth capital raise including investors Pendyne Capital, Watchfire Ventures and Open Pantry Food Marts, Black Buffalo will expand its marketing presence, upgrade its manufacturing capacity, increase its online distribution and launch into c-stores and other retail outlets nationwide. Black Buffalo was founded in 2015, and the company has invested over 20,000 hours of research and development into creating Black Buffalo’s eight products, which include five long-cut and three pouches varieties, all of which contain pharmaceutical-grade nicotine but no tobacco leaf or tobacco stem.

CBD Muscle Rub

Black Buffalo Inc.

www.blackbuffalo.com

Experience the warming and cooling sensation of the Forth CBD Muscle Rub as it soothes your muscles. This lotion helps nourish your skin with the added benefit of providing comfort for larger area applications on the body. Made with more than 10 oils and thoughtfully selected balms and extracts, it contains full-spectrum CBD, which promotes wellness and balance where applied. Featuring a total of 200 milligram of full-spectrum CBD in each one-ounce tube, Forth CBD Muscle Rub is available as a two-pack with a suggested retail price (SRP) of $39.99 or a four-pack with a $79.99 SRP.

Forth CBD

www.forthcbd.com

Valve Guard Lancer Worldwide’s accessory line, The L-Guard System, was developed to ensure hygienic protection throughout the beverage dispensing experience. The first product in the series is a Valve Guard designed to protect the valve, lever and dispensed beverages from contamination throughout frequent daily use. The new Valve Guard retrofits easily with existing Lancer Worldwide machines. It’s a quick and simple install and requires no tools to set up. The guard can be removed easily for cleaning and meets NSF standards.

Lancer Worldwide

wwww.lancerworldwide.com

Sous Vide Egg Bites Introducing Nellie’s Free Range Sous Vide Egg Bites, the first and only Certified Humane egg bite in the country. With no fillers like cottage cheese or cream, Nellie’s egg bites are prepared using a gentle sous vide cooking method for superior, extra-fluffy texture and excellent flavor. Available in a convenient, two-count pack in three flavor combinations, it’s a delicious snack that’s sure to delight.

Nellie’s Free Range sales@nelliesfreerange.com

www.nelliesfreerange.com 58

CSTORE DECISIONS •

July 2020

cstoredecisions.com

PRODUCTShowcase

Nostalgic Brand Relaunch Dunkaroos, the beloved cookie and icing combo of the ‘90s, are making a comeback at convenience stores nationwide beginning this summer. General Mills announced the relaunch of the nostalgic brand earlier this year, creating buzz and anticipation for the dunkable cookies available this summer in the most requested flavor: Vanilla Cookies and Vanilla Frosting with Rainbow Sprinkles. Dunkaroos originally hit the market in 1992 but left U.S. shelves in 2012. Following countless requests from celebrities and nostalgic millennials, the brand returned to 7-Eleven stores in late May and began rolling out to other retailers soon after. Individually packaged in 1.5-ounce trays, 12 units per carton, with a suggested retail price (SRP) of $1.99.

General Mills Convenience & Foodservice

www.generalmillscf.com

Limited-Edition Beer Cans Dos Equis limited-edition cans are uniquely designed and will include a national version as well as a Texas-specific version. In an integrated on- and off-premises promotion, Dos Equis will reward one consumer and three friends with a grand prize trip to an Airbnb destination of their choice. The promotion offers comprehensive marketing tools to encourage shoppers to snap a picture of Dos Equis limited-edition summer cans and upload to dosequis. com/SummerofDos through Aug. 15.

Dog Treat Display

Dos Equis

www.dosequis.com

Ice Cream Flavors Velvet Ice Cream, a fourth-generation ice cream maker founded in 1914, introduced a variety of new flavors across its product lines this season. The new, fruit-forward flavors celebrate the tastes of spring and summer with a nod to classic summer fruits and desserts. Velvet’s 56-ounce ice cream, which is available in 30 signature rich flavors, is now available in Blueberry Cheesecake and Blackberry Cobbler. Velvet Ice Cream Sandwiches not only have two new flavors — Choc-Full-O-Mint and Whole Lotta Chocolate — but also have a brand-new package design.

Velvet Ice Cream

www.velveticecream.com cstoredecisions.com

Cosmo’s Snack Shack is a one-of-a-kind display featuring a wide variety of treats at a grab-and-go price point. All items are made and sourced in the U.S. Quality matters, and consumers care about what they feed their dogs.

Create a destination within your store that’s unlike any other. All items are conveniently displayed for the impulse purchase.

The average retailer sees sales of $50 per week with placement of this floor display.

Cosmo’s Snack Shack

www.cosmossnackshack.com July 2020 • CSTORE DECISIONS

59

Classifieds/Ad Index ADD Systems

19

Kooler Ice Vending Machines

17

Brakebrush Brothers, Inc.

25

Krispy Krunchy

47

Loomis Armored US, LLC

51

800.922.0972 / www.go.addsys.com 800.933.2121 / www.makeitwithchicken.com

CB Distributors

888.824.3256 www.gcbprices.com / www.hempbombs.com www.naturesscript.com

Click It Inc.

www.clickitinc.com

Del Monte

www.CanDoDoneDaily.com

Gulfcoast

727.449.2296 / www.gulfcoast.com

Hoshizaki

www.hoshizakiamerica.com

ITG Brands

www.itgbrands.com

JUUL

www.juul.com

6-7

800.858.3025 / www.koolerice.com 800.290.6097 / www.krispykrunchy.com www.loomis.us/SafePoint

Max Distributing 9 39 3 43 63 15

5

www.maxdelivers.com

North American Bancard

60

Perfetti Van Melle

35

Philip Morris USA

2

Swedish Match

11

866.481.4604 / www.nynab.com 800.283.5988

www.marlboro.com

800.367.3677/www.zyn.com

Swisher International

21, 64

800.874.9720 / www.swisher.com

EVERY THURSDAY BEGINNING

July 30 @ 2PM EST

Register Online Today cstoredecisions.com

July 2020 • CSTORE DECISIONS

THE 2020 NAG/YEO CONFERENCE IS GOING

VIRTUAL

61

IndustryPerspective

Out and About the Industry C-stores have demonstrated resilience during the COVID-19 pandemic.

Outside advisers can help c-stores identify and maximize their strengths.

Mark Radosevich • Contributing Editor

No longer a retail stepchild, convenience stores have held up remarkably well during the COVID-19 pandemic, while other “non-essential” retail sectors have faltered.

Exceedingly high rack-to-retail fuel margins mitigated reduced fuel demand and helped insulate our industry from the ugly situation faced by quick-service restaurants, casual dining and general retail. For investors and lenders, the c-store industry continues to represent one of the safest bets for deploying capital. This will continue to foster a strong mergers and acquisition climate, while helping to maintain high valuation multiples.

As the country seeks to find some sense of normalcy after the tedium of the lockdowns, store operators have a unique opportunity to step up their game and make a lasting impression in their respective markets.

Now more than ever, marketers that strive for operational excellence will not only set themselves apart from competition but will help ensure longterm profitability and business value.

Marketers should pragmatically ask themselves the following questions about their store operation: • Is it performing to its highest potential?

• Can we succeed in an increasingly sophisticated competitive environment?

• Can it withstand the test of time?

No matter how well one believes 62

CSTORE DECISIONS •

July 2020

their stores perform, there’s always room for improvement. The fragmented nature of our industry is a testament to the independent nature of retail petroleum operators.

Many are reluctant to seek advice from outside their organizations. Yet given the imperatives for operational excellence, pragmatically accepting support from a qualified independent resource is smart business.

CONSIDER AN OUTSIDE OPINION

A professional c-store operational adviser can provide an arm’s length assessment of store operations, focusing on all facets of the business including product, personnel, merchandising, marketing, advertising, loyalty and the interface with forecourt fueling. The adviser will also outline competitive strengths and weaknesses, highlighting sites for raze and rebuild consideration.

The adviser then provides a comprehensive report outlining areas of improvement to increase store or chain performance, competitiveness and overall profitability. Just one unique recommendation can more than pay for the cost of the assessment.

Retaining the services of an adviser begins by contacting industry references to confirm the person’s experience and industry credentials. Most advisers have a structured process for both single site and chain review.

Understand this process, including information to be provided in advance of any site visits. A comprehensive

review of this information will enable a general understanding of the business and provide a basis for the field work to follow. To minimize internal disruption, assign a point person knowledgeable of store operations to assemble and provide requested information.

Communicate with the management team that cooperation is paramount to ensure the most reliable recommendations, while stressing that the assessment process is a positive tool, not something negative or intended to find fault with anyone on the team.

Depending on the scope of the assignment and workload of the adviser, the entire engagement should take around 90 days, including pre-visit data review, store assessment, followed by a post-visit period where the report and recommendations are formulated. A subsequent visit will generally be made to report the findings, reach consensus on next steps and develop an action plan for the deployment of accepted recommendations.

Retaining the services of a qualified c-store operational adviser will help ensure continuous improvement of store performance, while supporting brand relevance, customer loyalty, profitability and business value. These long-term benefits will far outweigh the nominal cost for these services. .

Mark Radosevich is a 40-year petroleum professional and active industry advocate. He is president of PetroActive Real Estate Services LLC, offering confidential mergers & acquisition advisory support and financing services exclusively to petroleum wholesalers. Contact him at mark@petroactive.net, (423) 442-1327 or visit www.petroactive.net.

cstoredecisions.com

In uncertain times, you need a true business partner that you can depend on for products and support. As always, Swisher Sweets is committed to our partners and focused on growing your business.

The #1 and #2 SKUs in the category, Swisher Sweets Original

swisher.com 800.874.9720

and Diamonds, are ready to satisfy your customers today and every day.

Swisher International, Inc. - MSAi Database updated through 4/18/2020