CStore Decisions May 2023

CStoreDecisions

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Solutions for Convenience Retailers

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Dash In introduces its thirdgeneration store with an enhanced menu, new store design and refreshed branding as it sets its sights on expansion.

INSIDE

Navigating Tobacco’s Legislative Landscape ....40 Technology Ups Food Ordering Convenience .....50 Tech Innovation Awards ....................................62

May 2023

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May 2023

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National Advisory Group for Convenience Retail

Leading Through Innovation

EDITORIAL

CUSTOMER SERVICE

VIDEO PRODUCTION

EDITOR EMERITUS John Lofstock

CUSTOMER SERVICE MANAGER Stephanie Hulett shulett@wtwhmedia.com

VIDEOGRAPHER Garrett McCafferty gmccafferty@wtwhmedia.com

CUSTOMER SERVICE REPRESENTATIVE Jane Cooper jcooper@wtwhmedia.com

VIDEOGRAPHER Kara Singleton ksingleton@wtwhmedia.com

LEADERSHIP TEAM

DIGITAL MARKETING

ASSOCIATE EDITOR Zhane Isom zisom@wtwhmedia.com

CEO Scott McCafferty smccafferty@wtwhmedia.com

VICE PRESIDENT, DIGITAL MARKETING Virginia Goulding vgoulding@wtwhmedia.com

ASSOCIATE EDITOR Marilyn Odesser-Torpey

CO/FOUNDER, VP SALES Mike Emich memich@wtwhmedia.com

DIGITAL MARKETING MANAGER Taylor Meade tmeade@wtwhmedia.com

EDITOR-IN-CHIEF Erin Del Conte edelconte@wtwhmedia.com SENIOR EDITOR Emily Boes eboes@wtwhmedia.com

EDITORIAL ASSISTANT/INTERN Kevin McIntyre CONTRIBUTING EDITORS Anne Baye Ericksen Brad Perkins Howard Riell

EVP Marshall Matheson mmatheson@wtwhmedia.com

CREATIVE SERVICES

COLUMNIST Richard Crone

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

SALES TEAM

CREATIVE DIRECTOR Erin Canetta ecanetta@wtwhmedia.com

PUBLISHER John Petersen jpetersen@wtwhmedia.com

(216) 346-8790

VICE PRESIDENT, SALES Tony Bolla tbolla@wtwhmedia.com

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REGIONAL SALES MANAGER Patrick McIntyre pmcintyre@wtwhmedia.com (216) 372-8112 REGIONAL SALES MANAGER Jake Bechtel jbechtel@wtwhmedia.com (216) 299-2281

ART DIRECTOR Matthew Claney mclaney@wtwhmedia.com

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.

DIGITAL DESIGN MANAGER Samantha King sking@wtwhmedia.com

WEB DEVELOPMENT

DIRECTOR OF EVENTS Jen Osborne josborne@wtwhmedia.com

DEVELOPMENT MANAGER Dave Miyares dmiyares@wtwhmedia.com

EVENTS MANAGER Brittany Belko bbelko@wtwhmedia.com

SENIOR DIGITAL MEDIA MANAGER Pat Curran pcurran@wtwhmedia.com

EVENTS COORDINATOR Alexis Ferenczy aferenczy@wtwhmedia.com

Bill Kent, President and CEO The Kent Cos. Inc. • Midland, Texas

WEBINAR COORDINATOR Kim Dorsey kdorsey@wtwhmedia.com

EVENTS

Robert Buhler, President and CEO Open Pantry Food Marts • Pleasant Prairie, Wis.

Raymond Huff, President HJB Convenience Corp. • Lakewood, Colo.

WEBINAR COORDINATOR Halle Kirsh hkirsh@wtwhmedia.com

MARKETING GRAPHIC DESIGNER Hannah Bragg hbragg@wtwhmedia.com

EDITORIAL ADVISORY BOARD

Lisa Dell’Alba, President and CEO Square One Markets • Bethlehem, Pa.

DIGITAL MARKETING SPECIALIST Shannon Pipik spipik@wtwhmedia.com

DIRECTOR, AUDIENCE DEVELOPMENT Bruce Sprague bsprague@wtwhmedia.com

EVENTS MARKETING SPECIALIST Olivia Zemanek ozemanek@wtwhmedia.com

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

NATIONAL ADVISORY GROUP (NAG) BOARD Vernon Young (Board Chairman), President and CEO Young Oil Co. • Piedmont, Ala. Joy Almekies, Senior Director of Food Services Global Partners • Waltham, Mass.

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

DIGITAL PRODUCTION MANAGER Reggie Hall rhall@wtwhmedia.com

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

DIGITAL PRODUCTION SPECIALIST Nicole Lender nlender@wtwhmedia.com

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

DIGITAL PRODUCTION SPECIALIST Nicole Johnson njohnson@wtwhmedia.com

Brent Mouton, President and CEO Hit-N-Run Food Stores • Lafayette, La.

YOUNG EXECUTIVES ORGANIZATION (YEO) BOARD Kalen Frese (Board Chairman), Food Service Director Warrenton Oil Inc. • Warrenton, Mo.

WTWH MEDIA, LLC 1111 Superior Ave., 26th Floor, Cleveland, OH 44114 Ph: (888) 543-2447 2022

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GOLD REGIONAL AWARD

Copyright 2023, WTWH Media, LLC 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.

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Megan Chmura, Director of Center Store GetGo • Pittsburgh

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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 does not endorse any products, programs or services of advertisers or editorial contributors. Copyright© 2023 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.

Jeff Carpenter, Director of Education and Training Cliff’s Local Market • Marcy, N.Y.

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, Director of Merchandise Gate Petroleum Co. • Jacksonville, Fla. Alex Garoutte, Director of Marketing The Kent Cos. Inc. • Midland, Texas Daillard Paris, Director of Petroleum Supply and Trading Sheetz Inc. • Altoona, Pa.

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CONTENTS May 2023

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Number 5

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Volume 34

CStoreDecisions

®

FRONT END

8 Editor’s Memo: Fourteen Years of C-Store Transformation 10 NAG Conference Draws C-Store Retailers to Austin 16 NAG Announces 2023 Scholarship Recipients 18 Quick Bites: Tracking Tech Trends CATEGORY MANAGEMENT

30 Candy Continues to Flourish in C-Stores 38 Bringing Value & Innovation to the Snack Aisle 40 Navigating Tobacco’s Legislative Landscape FOODSERVICE

46 Food Packaging Considerations 50 Technology Ups Food Ordering Convenience

COVER STORY

OPERATIONS

Story: Dash In’s 20 Cover Series 3 Evolution

56 LEDs, Energy-Efficient Models Promote Change TECHNOLOGY

Dash In introduces its third-generation store with an enhanced menu, new store design and refreshed branding as it sets its sights on expansion.

62 Casey’s Undergoes a Digital Transformation 66 Parker’s Prioritizes Personalization With Rewards App 70 Automation Brings Opportunity for C-Stores

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BACK END 72 Product Showcase 77 Ad Index 78 Industry Perspective: Can Convenience Stores Still Cash in on Crypto?

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

Fourteen Years of C-Store Transformation As I step into the role of editor-in-chief, I can’t help but reflect on how much this industry has changed since I first began writing for CStore Decisions as an associate editor in 2009.

In those days, c-store retailers were focused on their core customer “Bubba,” a blue-collar, white male stopping in for cigarettes, beer and snacks, but they were beginning to ponder ways to appeal to women customers — who were less likely to shop at a c-store compared to their male counterparts — in terms of ambiance and product selection. Safety was a key consideration in attracting women, and retailers were lowering store shelves for better visibility and adding LED lighting.

At that time, my only experience in the industry was as a customer. I grew up going to White Hen Pantry in Chicago with my father in the 1980s, which was ahead of its time making fresh sandwiches at its deli. After college, I spent two years teaching English in Japan, where I was amazed at the array of fresh grab-and-go food available at c-stores.

Each morning I purchased a custard bun from FamilyMart for breakfast, and in the afternoon, I rode my bike to Lawson to buy fresh sushi and a can of green tea for lunch and marveled at the countless flavors of Kit Kat. I wondered when U.S. c-stores would start offering similar fresh graband-go offerings.

In 2009, U.S. c-stores were still struggling with the perception of “gas station food,” but were becoming aware that food sales were going to become key for revenue growth; especially as the federal cigarette tax jumped to $1.01 per pack that April as part of SCHIP (State Children’s Health Insurance Program), and the Food and Drug Administration gained the authority to regulate tobacco when the Family Smoking Prevention and Tobacco Control Act was signed into law that June. Sheetz had recently debuted its MTGo! (Made-to-Go) line of products that included salads and sandwiches. Some chains were partnering with co-brands and quick-service restaurants, but only a few were wading into proprietary offerings.

Industry consolidation, the economy, and cigarette taxes and regulation ranked among top concerns. The more things change, the more they stay the same.

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WE’VE COME A LONG WAY

Fourteen years later, c-stores are catering to a wider range of customers, as millennials and Gen Z represent the most diverse generations to date. Labor management is an increasing concern, electric vehicle charging is on the rise and foodservice development is top of mind for numerous chains. C-stores are building stateof-the-art locations with foodservice counters front and center. Dash In, featured in our Cover Story this month, is a prime example. The chain has reimagined its store experience to highlight a more food-centric vision with an elevated menu, a refreshed store design and a new visual identity.

Industry consolidation is again a major trend, and tobacco regulatory pressures continue to expand. But perhaps the biggest change is how technology is transforming the way retailers do business.

Today’s c-stores are launching self-checkout kiosks and mobile apps with order ahead and payment capabilities. Dash In, for example, is set to debut a new app this summer that features mobile ordering, payment, delivery and a loyalty program. Customers will be able to purchase fuel, convenience items, foodservice and a car wash, all through the app.

This month’s Future Tech story discusses how automation can offer customers convenience and independence, while freeing up employees so they can provide better customer service. Our Tech Innovation Awards showcase Parker’s, which has relaunched its Rewards app to offer more personalized content that can be curated to each guest’s preference and behavior, and Casey’s, which has developed an order fulfillment app and is leveraging artificial intelligence and offering delivery.

Amidst the changes, what has stayed constant through the last 14 years is that c-stores remain committed to offering convenience and customer service to their guests, adapting, as they always have, as the definition of convenience and customer expectations evolve.

Erin Del Conte

cstoredecisions.com

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FRONT END NAG Recap

NAG Conference D C-Store Retailers t A CStore Decisions Staff Report

The 2023 National Advisory Group (NAG) Conference kicked off Sunday, March 26, in Austin, Texas, at the JW Marriott with a dinner and keynote speech from Captain Chad Fleming, a war hero who was redeployed five times after becoming an amputee.

Fleming was introduced by Scot Fleck, regional director for McLane Co. Fleming, who received the Meritorious Service Medal, two Bronze Star Medals with Valor, three Purple Heart Medals and the Army Commendation Medal with Valor during his time with the Army, shared the story of his journey with attendees. He encouraged attendees to consider saying “yes” to more opportunities, to stay humble and to show leadership by remembering where they started.

Earlier in the day, attendees had the opportunity to join a golf event at Hyatt Regency Lost Pines Resort and Spa.

BURNING ISSUE SESSIONS

On Monday, March 27, the conference got underway with educational sessions on burning issue topics. This year’s conference featured speakers from more than 20 leading convenience store chains.

John Lofstock, NAG executive director, welcomed attendees to the conference.

“What makes NAG special is that this is truly your association. The educational sessions and information exchange topics were selected directly by the board of directors,” Lofstock said. “When you leave here, you will be a better retailer. The friendships and networking you do over the next few days will be building blocks as you move your company into the future.”

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e Draws s to Austin

National Advisory Group (NAG) Conference attendees gather at the JW Marriott in Austin for burning issue sessions, information exchanges and ample networking opportunities.

Left: Captain Chad Fleming, the keynote speaker for the 2023 NAG Conference, and a war hero who was redeployed five times after becoming an amputee, shares the story of his journey with attendees. Right: Vernon Young, NAG chairman, welcomes attendees to the conference.

Lofstock announced that while this was his 12th NAG Conference as executive director and his 16th as an attendee, it would also be his last as executive director. “It has been my distinct honor to lead this organization and CStore Decisions for nearly 18 years,” he said.

NAG Chairman Vernon Young, president of Young Oil, also welcomed attendees to the conference. “We have a great agenda on board. NAG is a great, helpful group. One of the things I really enjoy about it is any question you’ve got, you’ll probably get a good answer. If you have a burning issue you need an answer on, someone here will be glad to help you with that.” cstoredecisions.com

In a burning issue session on “Developing and Refining Your Corporate Culture,” speakers Greg Ehrlich, president, Beck Suppliers; Kevin Smartt, CEO, TXB Stores; and Stephanie Stuckey, CEO, Stuckey’s, discussed how they have been successful in defining and developing the culture at their companies and their advice for how other chains can start the process.

In a session on “Understanding Foodservice Customers: Forecasting Future Demand,” speakers Ernie Harker, brand therapist, Ernburn Brands; Brian Scantland, vice president fresh food and proprietary beverages, BP; Derek Thurston, director of food service operations, Cliff’s Local Market; May 2023 • CSTORE DECISIONS

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FRONT END NAG Recap

Attendees participated in store tours around the Austin area, visiting TXB, Buc-ee’s and SparkCognition HyperWerx. After, attendees had time on their own to explore Austin.

and moderator Jessica Williams, founder and CEO, Food Forward Thinking, shared insights on foodservice innovation.

“In order for us to survive with the electric vehicle (EV) model, we have to turn our model upside down. What if our model now is we need to spend 30 minutes with each customer to charge? And why would they come to a c-store vs. a mall or nail salon, etc., where they already spend 45 minutes to an hour?” Harker said. “We have to come up with other reasons to get people to our stores, and that means food. … C-stores have an opportunity to have products our quick-service restaurant (QSR) competitors don’t have.”

Following the educational sessions, retailers participated in information exchanges — which are considered the heart and soul of NAG — to share ideas and gain advice on important issues from noncompeting retailers.

In the afternoon, attendees boarded buses and embarked on store tours around the Austin area, including TXB, Buc-ee’s and SparkCognition HyperWerx. In the evening, attendees had free time to explore Austin.

On the evening of March 28, attendees enjoyed dinner at Cooper’s BBQ. 12

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The educational sessions continued on Tuesday, March 28, with a presentation on some exclusive research from “The Convenience Experience Report.”

NAG partnered with Bluedot to learn what Americans think about c-stores and QSRs. Some 3,300 customers across the U.S. responded to the survey.

Judy Chan, vice president of marketing for Bluedot, and Nate Brazier, president and chief operating officer for Stinker Stores, discussed the findings of the study and how it applies to retailers. Chan pointed out that Americans view c-stores on par with fastfood restaurants. Driving customers into the store from the pump is a key challenge. The study found that seven in 10 customers enter the c-store when pumping gas, but only two enter every time. Bluedot looked at what c-stores can do differently to convince the other five to enter the store.

In a session titled “Developing Your Long-Term Fuel Strategy,” speakers Daillard Paris, director of petroleum supply and trading, Sheetz; Peter Rasmussen, founder and CEO, Convenience Energy Advisors; and Sridhar Sudarsan, chief technology officer, SparkCognition, shared insights on how the future of c-stores is being reshaped by the integration of EVs and alternative fuels.

Following the educational sessions, retailers picked a breakout session to attend, selecting from a range of topics from human resources to tobacco to foodservice and more.

In the afternoon, speakers Abigail Cerra, senior innovation and brand marketing for Refuel Operating Co.; Denise Jenkins, vice president of marketing, insights and loyalty for United Dairy Farmers; Aaron McLean, chief marketing officer for Stuzo; and Lorraine Spadaro, chief information officer for Global Partners, participated in a panel discussion on “Connecting Next-Generation Loyalty, Payments and POS Systems.”

The sessions concluded with a YEO Breakout Session on how retailers can build their political relation-

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During a dinner at Cooper’s BBQ, Peter Tamburro, general manager of Clifford Fuel, received the 2023 NAG Lifetime Award for Convenience Retailing.

Left: Tamburro (center) poses with previous award winners (left) Scott Apter, of Apter Industries and Mary Banmiller, of Warrenton Oil, and (right) John Lofstock, of NAG. Right: Tamburro (center) poses with colleagues Jeff Carpenter (left) and Derek Thurston (right), of Clifford Fuel.

ships, which discussed how young leaders can develop their own relationships in the world of politics.

Amongst the speakers were Kyle May, director of external relations for R.J Reynolds; Liz Bradford, founder and president of Bradford Public Relations; and Kalen Frese, director of merchandising and foodservice for Warrenton Oil Co. LIFETIME AWARD

On the evening of March 28, retailers enjoyed dinner at Cooper’s BBQ, where Peter Tamburro received the 2023 NAG Lifetime Award for Convenience Retailing.

Tamburro, general manager of Clifford Fuel in Utica, N.Y., operator of 20 Cliff’s Local Markets, has been active in NAG for almost 30 years.

Jeff Carpenter, director of education and training, Cliff’s, presented Tamburro with the award.

“Peter’s passion, vision and humble leadership has created years upon years of success for many companies within our industry,” said Carpenter.

He noted that Tamburro understands building a successful business is about creating a positive impact on the people who work for you and the customers you serve.

“Peter Tamburro is a true industry leader. Without question he’s made a significant impact on the convenience industry as a whole,” said Carpenter.

Conference, moderated by Erin Del Conte, editor-inchief of CStore Decisions, panelists Nick Triantafellou, director of marketing and merchandising at Weigel’s Inc.; Rachel Puepke, vice president of marketing at CEFCO; and Alan Adato, senior merchandising and procurement manager for Yesway/Allsup’s convenience stores, discussed why they are continuing to develop and expand private-label products.

The NAG Conference concluded with an ideas boot camp conducted by Brian Unrue, director of operations at Clark’s Pump-n-Shop and Lofstock. During the boot camp, topics, including company culture, wages, employee incentives and labor, were discussed with members of the audience. It also touched on how retailers are implementing self-checkout kiosks in their stores.

The next NAG Conference will take place from March 10-13, 2024, in Tampa Bay, Fla. Thank you to NAG’s sponsors:

NAG WRAP UP

On the final day of the conference, retailers attended a working breakfast session, where speakers Abbey Karel, vice president of business development, convenience retailing for Bounteous; Jerome Hunsinger, fresh food marketing brand manager at Wawa Inc.; Warrenton Oil’s Frese; and NAG’s Lofstock explored how consumers are using digital platforms to engage with c-stores and how retailers are maintaining their foodservice base with technology.

In the last general session of the 2023 NAG 14

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FRONT END NAG Scholarship

NAG Announces 2023 Scholarship Recipients This year’s scholarship — awarded to four students affiliated with National Advisory Group (NAG) member companies — is named after the late Ken McMullen, CEO of Weigel’s and longtime NAG supporter.

Kevin McIntyre • Editorial Assistant

As the cost of tuition continues to increase at universities across the country, many college students can feel overwhelmed with the financial burden. In an effort to partially ease that burden, the National Advisory Group (NAG) and the Young Executives Organization (YEO) have developed an ongoing scholarship fund specifically for employees of NAG member companies and their children.

The 2023 NAG Scholarship has been named the “Ken McMullen Memorial Scholarship” in honor of Ken McMullen, CEO of Weigel’s, who passed away on July 29, 2021. This is the second consecutive year that the scholarship has been named for McMullen. McMullen and the Weigel’s team have been a crucial and active part of NAG for more than 30 years.

This year, McMullen’s memory will 16

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be honored through four $1,000 scholarships, divided among employees or family members of valued NAG member companies. The four 2023 winners represent Kwik Star, Kwik Trip, Crosby’s and Weigel’s.

SCHOLARSHIPS MAKE A DIFFERENCE

To many students, scholarships can be the deciding factor when it comes

to choosing where to attend college.

Oftentimes, they can be the difference between continuing education or deciding against it. Scholarships can, at the very least, provide some peace of mind knowing that one’s ambitions are being supported.

While tuition is the most notable financial concern in the college application process, it is also important to note that there are unexpected expenses that can cause stress for students, such as housing, dining hall plans and more. With the availability of scholarships, many students can focus their finances on other areas that require their attention.

Most college students graduate with significant student loans, with the average being over $37,000, according to the Education Data Initiative. For private colleges and uni-

cstoredecisions.com

Falls, Iowa, for three years. Kylie — class of 2027 — will study elementary education at Wartburg College in Waverly, Iowa.

Kylie Buchholz, of Cedar Falls, Iowa

Haley Ferrier, of Sherwood, Wis.

versities, that number jumps to over $54,000. For many people applying to college, this debt would be insurmountable without help from scholarships or financial aid programs.

The Ken McMullen Memorial Scholarship is fully funded by the dues of NAG members which, each year, give deserving students financial assistance in their college endeavors. Established in the 1990s, more than $150,000 has been awarded to over 130 individuals through the scholarship.

undergraduate or graduate course of study at an accredited two- or fouryear college, university or vocationaltechnical school. Those who are current students or who have attended a school in the past three years must have a minimum 2.5 grade point average on a 4.0 scale.

This year’s winners are:

Haley Ferrier, of Sherwood, Wis. Haley has worked at Kwik Trip in Combined Locks, Wis., for the past three years. As a freshman at the University of Wisconsin-Platteville, Haley is studying mechanical engineering and sustainability & renewable energy systems.

Hailey Garrison, of Angola, N.Y. Hailey has been a sales associate at Crosby’s for almost three years. A freshman at SUNY College at Fredonia, Hailey is majoring in business administration.

Kylie Buchholz, of Cedar Falls, Iowa Kylie’s father, James Buchholz, has been employed by Kwik Star in Cedar

Jake Starnes, of Knoxville, Tenn.

Jake’s mother, Jessica Starnes, is an employee at Weigel’s in Powell, Tenn. Set to graduate in 2027, Jake is studying education at Maryville College in Maryville, Tenn.

Hailey Garrison, of Angola, N.Y.

Jake Starnes, of Knoxville, Tenn.

2023 RECIPIENTS

Recipients are selected based on Scholarship America procedures.

They are evaluated on leadership and participation in school and community activities; past academic performance; and future potential, work experience and an outside appraisal.

To be eligible, the recipients had to be employees or children of employees that work for convenience store/petroleum marketers that are members of NAG. They must plan to enroll in a full-time or part-time

cstoredecisions.com

May 2023 • CSTORE DECISIONS

17

QUICKBITES TRACKING TECH TRENDS As consumers shop both online and in stores retailers are working to improve and expand the technology used in their stores to keep consumers satisfied.

DELIVERY APP USAGE RISES In a CivicScience survey with 1,040 responses, consumers reported using delivery apps more often.

42% of respondents said they only use one delivery app.

37% of respondents said they use two delivery apps.

9% of respondents said they use three delivery apps.

12% of respondents said they use four or more delivery apps.

LOYALTY PROGRAMS ADD VALUE The majority of customers surveyed for Fiserv’s “Q1 2023 Gift Card Gauge” reported joining loyalty programs. Today’s customers are looking to get more out of their loyalty programs to reduce costs.

The ability to redeem points for gift cards is especially appealing.

78%

73%

of consumers say they would use loyalty points to buy a gift card, including over 75% of those aged 18-44

of consumers say they join loyalty programs

Source: CivicScience, 2023 Source: Fiserv, "Q1 2023 Gift Card Gauge"

DIGITAL IN-STORE EXPERIENCES When it comes to shopping in stores, consumers find digital experiences more appealing. PwC’s February 2023 “Global Consumer Insights Pulse Survey” found:

42% of consumers like the ability to use self-checkout kiosks.

41% of consumers enjoy using retailers’ store apps.

38% of consumers like using click-and-collect services from retailers.

34% of consumers look forward to using scan-and-go technology.

TECH TRENDS AT RETAIL INCISIV’s “2023 Connected Retail Experience Study” found deployment of new technology is expanding across retail segments.

• The use of artificial intelligence to improve operations is projected to increase times nine by 2025.

• Mobile point-of-sale (POS) and curbside pickup sensors will significantly increase deployment across all retailers, particularly among specialty and department stores.

8% • While the deployment of robotics for associate tasks is still relatively low, it will increase over the next few years, particularly among grocery and general merchandise retailers.

Source: INCISIV, “2023 Connected Retail Experience Study”

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Source: PwC, “Global Consumer Insights Pulse Survey,” February 2023

AUTOMATION EXPECTED TO GROW

The INCISIV’s “2023 Connected Retail Experience Study” also shows the majority of retailers anticipate an increase in automation.

100% of retailers believe mobile shopping apps will increase.

92% of retailers believe store technology will grow.

71% of retailers believe applications in the cloud will rise.

67% of retailers believe intelligent video applications will increase.

Source: INCISIV, “2023 Connected Retail Experience Study”

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Cover Story l Dash In

Dash In’s SERIES 3 EVOLUTION

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Dash In introduces its third-generation store with an enhanced menu, new store design and refreshed branding as it sets its sights on expansion.

Erin Del Conte • Editor-in-Chief

Dash In recently unveiled its thirdgeneration (Series 3) c-store format, showcasing its evolution into a food-centric one-stop shop, complete with an elevated made-to-order menu, a revamped layout and a transformed visual identity.

The 55-store chain with 41 franchise locations and 14 companyoperated sites in Maryland, Virginia and Delaware plans to aggressively build 15 more Series 3 stores in the next 24 to 30 months.

It’s also delving into technology with self-checkout stations and a mobile app launching this summer that includes a new loyalty program, mobile ordering, delivery and payment capabilities. cstoredecisions.com

February 2022 • CSTORE DECISIONS

21

Dash In’s Series 3 prototype includes a black-and-white color scheme and exposed wooden beams on the decking for an organic look, as well as outdoor seating.

With its new Series 3 prototype, the evolution of Dash In’s brand strategy is on full display as it looks to deliver an ecosystem with convenience retailing, transportation fuels, food, beverage and car wash all in one spot.

The first new-to-industry (NTI) Series 3 site celebrated its grand opening on March 31 in Loudoun County, Va. Julian “Blackie” Wills III, president and chief operating officer of The Wills Group, Dash In’s parent company, noted that the Series 3 store represents a five-year journey that included the goal of reimagining the store experience.

“In 2017, we were still focusing on pieces of the store without the overall plan for, ‘What do we want to be as a brand? What does Dash In want to stand for, and how do we want to show up to our guests?’” Wills said.

From 2017 to 2018, Dash In set about answering those questions by embarking on a full brand strategy review that included consumer research. The findings showed that Dash In was viewed as a destination for gas and general convenience vs. prepared food and beverage, and that the Dash In brand was being overshadowed by the gas brands in the forecourt. The feedback set Dash In on a mission to grow its brand awareness.

“It started with brand strategy work,” noted Wills.“That led to things like brand positioning and customer journey or touchpoint mapping. Building that out then ultimately fed into things like visual identity development, menu development, facility development and architectural design and interior design.”

Dash In’s new visual identity is a large part of the c-store 22

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May 2023

chain’s transformation.

Both the Series 3 Dash In and the co-located Splash In car wash feature an updated look and new logos to differentiate them from competitors in the marketplace.

The new Dash In logo is a wordmark-style logo with ‘Dash In’ scrawled in marker script. It also includes a map maker symbol that resembles a Google Maps pin.

“We wanted to bring the Dash In and Splash In brands closer together so they were more complementary,” Wills said. “They were different in terms of color palette and typeface. And now, we have very similar color palettes and typefaces, so it feels much more like sibling brands.”

Over time, some legacy Dash In sites are expected to receive the new logo.

“But we’re only going to do it where we start to integrate the other brand elements,” Wills said. “We would have to integrate the menu as part of that shift because we don’t want to create confusion. We want this visual identity of the brand to provide consumers certain cues about what they’ll be able to expect inside the store.”

HOW IT BEGAN

Julian Wills, and his brother Joe Wills, executive vice president of fuels marketing and real estate & development, are fourth-generation members of their family business, The Wills Group, which the family has owned and operated for 97 years.

The Wills Group was founded in 1926 by Wills’ greatgrandfather Jim Wills and his business partner Harold

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Cover Story l Dash In

Swann, who had been road engineers.

In the late 1920s, the partners saw an opportunity and entered the fuels transportation business. They became Texaco motor oil distributors and began building Texaco service stations, while also distributing Texaco heating oil and kerosene.

“They had a partnership agreement that said the surviving member of the partnership would buy out the other family’s interest,” Wills explained.

After Swann passed away, Jim Wills continued running the company, and later his wife Julia Wills took over the running of the business when he died.

“Julia ran it until my grandfather, Blackie, could run the business. Then it was handed down from my grandfather to my father, Lock. And now, it’s been passed down to the fourth generation,” Wills explained.

Wills noted he is celebrating 16 years with the business this month.

The Wills Group founded Dash In in 1979, and the first store opened that same year in Annapolis, Md. The first fullsize Dash In Food Store on Route 198 in Laurel, Md., opened on May 1, 1981, and was a standalone c-store without fuel and the first c-store in Maryland to feature a foodservice program, serving up fried chicken and potato wedges.

“We literally were food stores where we had deli, bakery and food. … That business was really separate from the fuels business. We had the service station business and the standalone convenience business,” Wills said.

In the late 80s into the 90s, The Wills Group began combining Dash Ins with fuel stations. In the 90s, Dash In began partnering with co-brands and quick-service restaurants on the foodservice end.

“Then in the early 2000s, we started to migrate away from that back to a Dash In proprietary menu, and we

Dash In continues to offer its all-day breakfast menu, featuring freshcracked eggs, and now, at the Loudoun County Dash In, fresh-baked biscuits, croissants and mini doughnuts are available too.

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really got into franchising at that time,” he said.

Following several major oil acquisitions with Shell Oil predominantly in the early 2000s, Dash In became a “rejuvenation brand.”

“We went into these old, tired convenience stores that were in need of some investment and used the Dash In brand to modernize and add category management, pricebook, a dispensed beverage program and a smallformat foodservice program,” Wills said.

Over the last decade, Dash In has been reintegrating prepared food and beverages.

In 2014, Dash In launched its Neighborhood Store format that included made-to-order food offerings, and in 2017 it introduced its second-generation stores that brought advancements to the menu, as well as the kitchen and beverage equipment package.

Over the past six years the company has been focused on growing its company-operated stores. Its Series 3 store is now set to lead it into the future.

WELCOMING DESIGN

Dash In’s Series 3 site features a modern look with organic materials, such as concrete, brick and hardwood — including exposed wooden beams — to give the store an organic feel. The floors are made of polished concrete.

The color scheme includes muted hues, with the primary colors being black and white.

The store’s exterior also features a black-and-white color scheme with white brick piers and black along the roofline.

Wooden beams are visible on the decking of the roof.

“We wanted to make sure that the environment felt welcoming and organic for guests,” Wills said. “We think we’ve been able to raise the bar overall for the industry in terms of what a convenience store environment could look like.”

The 5,600-square-foot store features 17 fueling stations, much larger than the chain’s traditional sites that span 3,200 square feet to 3,400 square feet.

The biggest design change occurred inside the store within the center store merchandising area, where Dash In brought down the height of the gondolas to 48 inches to improve sight lines.

“We wanted to allow the guests to be able to see completely across the store,” he said.

Dash In was also intentional about providing wayfinding throughout the store, employing a significant amount of directional signage, as well as headers around the store to identify products and amenities.

Historically, Dash In stores have not offered seating, but most of the planned Series 3 stores, including the Loudoun County site in Virginia, provide both indoor and outdoor seating.

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Fresh-made, craft-made burgers are part of Dash In’s commitment to a fresh and elevated menu.

Foodservice acts as the centerpiece of the store’s design.

“The food is very much front and center when you first walk in,” Wills said. “We’ve got a big wayfinding sign that says, ‘Fresh Eats,’ and has this chevron (patterned) wooden backing to it, and you can see the open kitchen there.”

Dash In first introduced the open kitchen concept, where customers can see the food being prepared, in its second-generation store.

The company has planned three versions of its Series 3 prototype. The Loudoun County store features the largest version of the design, which includes alcoholic beverages, a beer cave and a wine merchandiser. A 4,500-square-foot version excludes alcoholic beverages, while a 3,400-square-foot version will be used sparingly and excludes indoor seating. All three feature the full food and beverage menu.

The Series 3 prototype offers unbranded fuel, as Dash In prioritizes brand awareness in the forecourt. Dash In’s other sites have partnerships with Shell and Exxon, which will remain in place.

“We have extensive relationships with Shell and Exxon outside of Dash In,” Wills noted. “The Wills Group has another 225 locations that operate under the legacy gas station model; predominantly, the Shell flags, some Exxon and some other major oil brands. But at least for Dash In, particularly in this (Series 3) model, it’s always going to be private label.”

Out of the 15 Series 3 stores planned over the next 24

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Cover Story l Dash In

Dash In’s Smokehouse burger features a fresh beef patty, carnitas, cheese, fried onions, pickles and barbecue sauce.

Sweet potato waffle fries are also available as a side.

to 30 months, half are expected to be raze-and-rebuilds and half are planned as NTI stores.

ELEVATED MENU

a fresh, minimally processed type of foodservice offering,” Wills said.

Other fresh-prepared menu items include griddle-pressed burgers, which are available as a single, double or triple. The new Dash In also features a Smokehouse burger. All burgers are fully customizable with toppings and cheeses. Dash In also offers the Impossible Burger for customers who prefer a meat-free meal, as well as Impossible Sausage for breakfast.

The Dash In menu features all-day breakfast that includes fresh bacon, sausage and shaved ribeye steak cooked inhouse. Those fresh-cooked meats are also available across the lunch and dinner menus on sandwiches.

The menu also includes flatbreads as a signature item, as well as quesadillas, Stackadillas, salads and bowls.

“Those bowls can be breakfast bowls — with bases like tater tots — to lunch and dinner bowls with field greens

When it comes to brand identity, most of the top cstore retailers are known for their menu, Wills noted.

“We really knew we needed to lean into prepared food and beverage and become known for something,” he said.

The food and beverage program at Dash In has historically offered a combination of made-to-order and graband-go foods.

As Dash In embarked on its Series 3 design, it focused on building its own foodservice identity as it reworked the menu to feature elevated versions of c-store staples. The concept centered on the idea of putting a restaurant inside a c-store.

“We have line cooks, prep cooks and dishwashers,” Wills noted. “It’s kind of new for us, but it’s been very exciting, and we’re very bullish about where we think we can take this new brand concept.”

Today, Dash In is frying doughnuts and baking cookies, brownies, biscuits, croissants and pastries in-store. The pastries include both sweet and savory options, including a Spinach and Feta Danish and a Parmesan and Leek Danish.

“We’re also bringing in sliced potatoes, and then we’re frying those and making house-made chips, so you’re able to get a fresh product. That’s really been the big Dash In’s main course salads are made in-store and include options such as the Southwest shift, moving towards less of a consumerSteak, Crispy Chicken Cobb and Garden Greens. Optional salad additions include carnitas, packaged goods offering to much more of chicken tenders and chicken or tuna salad.

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cstoredecisions.com

different areas of the store.

“We really wanted to put that all together as one continuous run,” Wills said.

A team member is stationed by the beverage tap wall to assist customers and explain the drink menu.

“We have a concierge team almost set up in this new store, where someone’s role is to literally just float

around the store and talk to guests and help guests,” he said.

TECHNOLOGY FORWARD

Technology is also a key component for Dash In moving forward.

This summer, Dash In is set to debut its new app complete with mobile ordering, mobile payment, delivery and a loyalty program.

as a base or even quinoa as a base,” Wills said.

“We think we’ve got a little something for everyone, and (they’re) very friendly and familiar foodservice items for the segment,” he added.

The beverage area also received a facelift in terms of design and product selection. Dash In offers bean-to-cup coffee across its footprint, but Series 3 stores will also incorporate a tap wall for both traditional and craft sodas.

“We partnered with Tractor Beverage to offer several organic sodas,” Wills said. Among the many options are organic root beer, organic cherry cream soda and cucumber lime soda, which Wills noted are new flavors to Dash In’s market area.

Dash In has also added an extensive tea program that features a line of proprietary limeades, lemonades and aguas frescas beverages, as well as three natural energy drinks that include green coffee and guaranas.

The dispensed beverage area features a 22-foot wall, along which all beverage products from the coffee to the bubbler machines to the tap wall are displayed.

The design is a significant change from older Dash In locations where the coffee, fountain and frozen sections are positioned separately in cstoredecisions.com

May 2023 • CSTORE DECISIONS

27

Cover Story l Dash In

Dash In’s Breakfast Bowls include a base of tots, two eggs, cheese and veggies or protein. Baked-in-house biscuits or croissants are also available.

While Dash In had an app several years ago, Wills noted it wasn’t a good value proposition for the customer, so they retired the app and went back to the drawing board.

This new app is set to feature a wide range of capabilities. Customers will be able to purchase fuel, convenience items, foodservice and a car wash, all through the app.

The mobile ordering and payment features will be available on the first day of the launch.

Dash In partnered with Punch on the loyalty program, where customers can earn points across fuels, convenience and car wash and redeem them across all three segments as well.

“After the launch, we have a roadmap of additional features that we’re going to launch over time,” Wills said.

The next round of app features is expected to debut three to four months following the initial launch, with more features added each quarter after that.

The delivery feature isn’t new for Dash In, which has been offering it at select stores, but now it will become more widely available through the app.

“We’re partnering with Olo, and the big third-party delivery companies — Grubhub, Seamless, DoorDash and Uber Eats. We’ll turn that on as we roll out the app market-by-market, store-by-store,” Wills said.

Dash In is also in the midst of a back-office and ERP (enterprise resource planning) implementation. And, it’s rebuilding the e-commerce website for its car wash membership program.

“We eventually want to take the car wash membership e-commerce website and migrate toward car wash membership within our mobile app. That’s the next step,” Wills said.

Dash In also plans to expand its self-checkout service going forward. Dash In first introduced self-checkout in 2019, in partnership with NCR, and a total of six Dash In locations include self-checkout kiosks today. The new Loudoun County site offers three self-checkout lanes and two full-service lanes.

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“In some ways, we’re trying to create what we feel is a fairly frictionless experience, but a high-touch experience,” Wills said. “We want our associates to interact with our guests. We want to build relationships. The new Dash In brand is really about creating the sense of local, personal connection with our guests.”

As the Loudoun County store is a neighborhood site as opposed to an interstate location, it does not feature electric vehicle (EV) chargers, but Dash In is testing the technology. A second-generation site that at press time was set to open in late April in Richmond, Va., includes four direct-current fast chargers.

“There, we thought it made good sense because we’re immediately off of Interstate 95. We’re a quarter mile off the interchange. So we are starting to test EV charging, but we’re really focused more on interstate locations as opposed to more of a neighborhood or urban location,” he said.

SPLASH IN EXPANSION

Car wash remains an important initiative for the company, which operates 54 Splash In ECO Car Washes — 51 are traditional rollover car washes and three are largeformat tunnel conveyor washes.

“We’re going to be building more tunnel conveyor washes in the future, including co-locating those tunnel washes with the (Series 3) Dash In store and fuel,” Wills said. “We offer car wash memberships today at our tunnel locations. We’re eventually going to be offering memberships across all car wash locations.”

The car wash membership may one day be directly available through the Dash In app.

The company is currently building a standalone Splash In tunnel car wash that is not co-located with a c-store.

“That’s a test for us. We want to see if that is a viable business model for us. Could we have standalone car washes?” Wills said.

Over time, existing Splash In locations will be converted to the new Splash In logo.

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LOOKING AHEAD

In 2023, Dash In plans to complete three remodels, six to eight rebuilds and open four NTI stores. While most NTI stores and several of the new builds will feature the Series 3 design, the three remodels won’t include the new prototype, but they will incorporate elements of the new brand and menu.

With the first Series 3 site up and running, Dash In is now evaluating how it can best integrate the concept into legacy sites.

“I think based on the initial experience, everyone is now eager to say, ‘How do we accelerate this? How do we get this into more stores quickly?’” Wills said. “We can’t rebuild every site, but at least let’s take core components of the brand offering and the menu, and let’s start to integrate that over time. Over the next, call it, three to five years, I want to take what we can of this brand concept and incorporate that across all locations.”

Dash In also aspires to double the size of its network within the next seven years.

“We think there’s a lot of opportunity to expand

cstoredecisions.com

within our current footprint in the Mid-Atlantic,” Wills said. “We also are considering potential geographic expansion. That’s under review right now.”

As it expands, Dash In continues to prioritize employee engagement and customer satisfaction.

Dash In, and its parent company The Wills Group, were recognized in 2022 as a Great Place to Work for the second consecutive year and offer a strong benefits package and paid-time-off policy. The chain also has a concept called “genuine care” as part of its culture that empowers store teams to do everything possible to ensure customers are having the best experience possible.

“We’re very focused on customer experience metrics, customer satisfaction scores, online reviews, brand reputation ratings,” Wills said. “We’re trying to constantly elevate our customer experience, our customer engagement, as well as our employee engagement.”

“We’re trying to raise the bar in terms of what the offering in the store can look like,” Wills continued.

“We’re hopeful we can raise the bar on customer service as well.” CSD

May 2023 • CSTORE DECISIONS

29

Category Management | Candy

Candy Continues to Flourish

in C-Stores

The candy category at convenience stores is seeing strong sales growth so far in 2023, with segments experiencing double-digit increases.

Zhane Isom • Associate Editor

While chocolate dollar sales grew 14% for the four weeks ending Jan. 28, 2023, according to NielsenIQ, consumers have been especially gravitating toward non-chocolate confections, including gum, mints and gummy candy.

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Category Management | Candy

Non-Chocolate Sales Climb Candy sales continue to thrive even as inflation drives prices higher. Confection dollar sales grew 21.4% for the four weeks ending Jan. 28, 2023, while gum saw the biggest increase, up 37% for the same four-week period.

Dollar Sales

Dollar Sales % Change

Description

Four Weeks Ending Jan. 28, 2023

Four Weeks Ending Jan. 28, 2023

Confection

$211 M

21.4%

Gum

$67 M

37.0%

Mints

$17 M

24.9%

Source: NielsenIQ Total U.S. Convenience data for the four weeks ending Jan. 28, 2023

Confection dollar sales were up 21.4%, while gum sales increased 37% and mint sales ticked up nearly 25% for the same four-week period, per NielsenIQ. S&S Petroleum Inc., which operates 80 locations throughout Washington, Idaho, Oregon and California, is one c-store seeing a tremendous increase in candy sales so far this year.

“We are seeing an increase in the candy category as a whole because more and more consumers are out traveling and stopping for candy and snacks,” said Mike Jones, category manager for S&S Petroleum Inc. “Also, candy sales are increasing because consumers can buy their favorite candy and still be in their budget range.

So in consumers’ minds, they can splurge on candy and still be in the $3, $4 and $5 range which is critical, especially with inflation.”

The Rutter’s Cos., which operates 83 locations in Pennsylvania, West Virginia and Maryland, is another c-store chain seeing a rise in candy sales.

“The candy category is off to a hot start so far in 2023, seeing increases in both dollar and unit sales,” said Joseph Bortner, senior category manager for The Rutter’s Cos. “I’d anticipate units to see some softness in the second half vs. the first half of this year after another round of pricing from suppliers, but overall, it should be a strong year for confection.”

BIG CANDY BAGS ARE BACK

Despite inflation, customers are increasingly selecting larger bags of candy that offer greater variety. Jones has also noticed customers gravitating toward big bottles of mints and larger packs of gum.

“As far as anything else, bag candy is on fire,” he said. “It really has to do with the different flavor innovations out now, including anything sour. I also think the reason consumers are going for larger bag sizes is because the price has decreased, allowing them to get more bang for their buck.”

But even with candy sales on the rise, c-store retailers must work to ensure they’re keeping candy customers engaged with the offering.

“The biggest hurdle for retailers will be how we can create value for our customers,” said 32

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Category Management | Candy

Consumers have been gravitating toward non-chocolate confection, including gum, mints and gummy candy.

Bortner. “With inflationary pressure all around, we need to ensure we’re creating offers that resonate deeply with our consumer base. As suggested retail prices rise, this will continue to be our biggest challenge to find what works best in the days ahead.”

S&S Petroleum and Rutter’s are continuing to enhance their candy categories by stocking new products and adding promotions to keep customers intrigued by their candy offerings.

FAST FACTS: • Gum sales have increased 37%, while mint sales increased 25% in the four weeks ending Jan. 28, 2023, per NielsenIQ. • Consumers are starting to go for bigger bags of candy instead of smaller bags since prices have decreased.

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“We are looking at different ways to promote our candy offerings,” said Jones. “So we are trying to do things like buy one get one for a dollar or some variation of that. We are also looking at opportunities to bundle our candy offerings with other categories, whether it’s with coffee or fountain drinks.”

What’s more, Rutter’s has even started incorporating candy into a few of its proprietary foodservice offerings.

“A staple of our foodservice option is to find new and unique ways to capitalize on the brands our market loves,” said Bortner.

“Through the years, we’ve done this by incorporating our favorite confection items into shakes prepared in the kitchen. Thus far in 2023, we’ve taken it even further by creating a sweet and savory peanut butter burger.”

All-in-all, retailers are bullish on the candy category for the year ahead.

“We expect to see significant growth in the candy category as consumption continues to outpace per year, even with higher price points,” said Bortner. “If that pace continues through the rest of the year, we’ll see a record year in confection.” CSD

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2023

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Knowing the average c-store trip lasts 3 minutes2, on-the-go shoppers already know what snack brand they want before setting foot in a c-store. When shoppers have a specific craving, generic alternatives simply don’t satisfy3.

THE SNACKS THEY’RE LOOKING FOR:

Given its near 17% increase in sales from last year4, salty snacks like potato chips and cheese snacks5 are still #1. Crave-worthy flavors and brands are most important6, specifically Kellogg’s® brands like Cheez-It® the #1 cracker brand7 and Pringles®, with its variety of flavors in a resealable, portable can.

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STOCKING SHOPPER FAVORITES STOP THEM FROM GOING ELSEWHERE

By prioritizing those favorite brands, you could be more likely to win a shopper’s business. The average consumer will shop at a c-store at least once-a-week11 because they trust that you can satisfy their cravings.

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Sources: 1. CRC Kellogg K-12, Healthcare Retail, and C-Store Operator Path to Purchase, Dec 2022 - Jan 2023 2. Video Mining, Shopper confidence chasing away C-store “blues”, Sept 2021 3. Mondelez, 2022 Global Consumer Snacking Trends Study 4. C Store Decisions, Snack Sales Outlook, 2023 5. Snacking: Emerging, Evolving and Disrupted (October 2020) | © 2020 The Hartman Group, Inc. 6. Statista, Salty snacks sales in U.S. convenience store (c-stores) in 2021, by type 7. Nielsen C-Store 52 Weeks ending 7/16/22 8. Mintel Convenience Store Foodservice 2023 9. Frito-Lay, US Trend Index, 2022 10. Nielsen Connect, Total US Conv, YTD w/e 9/17/22 11. CSP, Americans are in love with c-stores’: survey, 2022 May 2023 • CSTORE DECISIONS

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Category Management | Snacks

Bringing Value & Innovation

to the Snack Aisle From sweet to salty, snack sales are trending up at c-stores. Retailers are tracking customer preferences and offering promotions to entice shoppers.

Howard Riell • Contributing Editor

Trends across a trio of popular snack categories — meat, salty and sweet snacks — point to continued growth throughout 2023, powered by customers’ love of snacking and their desire for value and healthier options.

As CStore Decisions recently reported in its annual Trends Handbook, the meat snack segment saw sales of nearly $2.2 billion, up 0.3%, for the calendar year ending Jan. 1, 2023, according to Ryan Stredney, senior public relations specialist, marketing for Chicago-based market research firm Circana, formerly IRI. At the same time, sweet snacks such as snack bars, granola bars and clusters rolled in at $819 million in 2022, a 9.5% gain. As for salty snacks, sales are projected to rise, fueled in large part by spicy flavors, sweet and salty combinations and better-for-you options.

GENERATIONAL PREFERENCES

Snacking preferences differ among generations, including among Gen Z and millennials.

“Gen Z has a slightly larger lean toward sweets, while millennials prefer salty snacks,” said Abigail Bencio, account strategist for Quench Agency, a food trends analysis and marketing firm.

Chips are the most preferred snack by Gen Z and millennials, followed by cookies and chocolate. When bored at home, Gen Z prefers to eat cheese and crackers, whereas

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Customers are finding value in the snack category at convenience stores and product innovation and promotions are helping to drive sales.

millennials prefer to snack on cookies and crackers, Bencio added.

“When they’re on the go, Gen Z prefers to eat granola bars, jerky and hard candy,” said Bencio. “Millennials prefer to eat granola bars and snack mixes on the go.”

GENERATING VALUE

While some suggest that inflation may have hurt snack sales, Mike Jones, the category manager for 80unit operator S&S Petroleum Inc. in Mukilteo, Wash., said he feels it is just the opposite.

“We believe that the customer is finding great value in the snack category as it compares to other options in the c-store channel,” Jones said. “The exception, however, would be in the larger bags of jerky.”

Indeed, when it comes to meat snacks Jones said that he and his colleagues are seeing more migration to the stick product versus the larger bagged jerky.

“Thoughts are that this is due to rising retails and price elasticity. However, the 3.25-ounce bags are still a viable option at this point,” he said.

With salty snacks, he added, “We have seen huge gains in salty, especially when it comes to flavor profiles that include heat/spicy or other types of innovations.”

As for sweet snacks, Jones pointed out that his company has seen a nice gain. “With candy retails continuing to rise, it would seem that more customers are choosing to go more with a different sweet option,” he said.

Promotions remain key for driving interest and value in the category.

“Two-fer mix-and-match deals for us have proven most successful,” Jones said. “We look for about a 50% take rate to ensure we have an appealing enough offer without giving up too much gross-profit percentage.”

Management is also looking at bundle deals to tie in with the foodservice and cold-vault categories, he added. “We are trying to leverage the success we are cstoredecisions.com

seeing in the snack category while attempting to bump up the other categories.”

CLEAN LABEL DEMAND

While well-known brands are expected to remain key sales drivers, clean ingredient trends are offering an opportunity for innovation in the category.

“Consumer demand for clean labels and a focus on wellness will continue to influence the industry and fuel further expansion of functional foods that provide on-the-go healthy snacking solutions,” said Dragana Ilic, buyer III, consumables for the Army & Air Force Exchange Service (AAFES), which operates more than 580 Express c-stores. “(Since) the pandemic, body nourishment has become increasingly more important to consumers, and therefore there is more focus on better-foryou brands, clean labels and quality ingredients.”

Sustainability is another trend that is progressively becoming important, as awareness of climate change continues to grow, Ilic added.

“Consumers will continue to shift dollars to brands and products that mirror their personal values and belief systems,” Ilic said. “Brands taking on climate change, supply-chain transparency and fair trade are expected to grow faster than those just competing on more traditional claims like organic or gluten-free ingredients.” CSD

FAST FACTS: • Promotions help drive interest and value for

snack customers.

• Spicy snack flavors are popular with customers.

• Despite inflation, customers see the value in c-store snacks.

May 2023 • CSTORE DECISIONS

39

Category Management | Tobacco Legislation

NAVIGATING

TOBACCO’S LEGISLATIVE

LANDSCAPE From states to the federal government, lawmakers continue to target tobacco and nicotine with new regulations, but some state lawmakers are seeking to curtail restrictions.

Anne Baye Ericksen • Contributing Editor

On the heels of Californians voting to enforce a statewide ban on flavored tobacco and nicotine products, including menthol, legislators introduced a bill that aimed to eventually outlaw tobacco sales. Assembly Bill (AB) 935 looked to prohibit anyone born after Jan. 1, 2007, from buying tobacco products in the Golden State.

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cstoredecisions.com

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Category Management | Tobacco Legislation

The California Association of Retail Tobacconists (CART) publicly opposed it. CART argued the proposal was overburdensome for c-stores and other retailers and expressed concern regarding the state’s capacity to enforce another new regulation.

“Since the enforcement date (for the flavor ban) of Dec. 21, 2022, neither the State of California nor the Department of Health and Human Services (the agency responsible for enforcement) has issued a list of banned products to retailers,” stated Charles Janigian, president of CART. “With no official list of banned products, distributors, wholesalers and retailers have been stuck with vast amounts of inventory pulled from shelves out of an abundance of caution. This has caused additional economic losses for our members on top of the losses in sales.”

AB 935 was ultimately put on hold in mid-April and amended to focus on the state’s flavor ban, but it shows the intensity of the tobacco legislative environment today and could set the stage for other states to attempt similar legislation.

Likewise, Nevada AB 294 looked to remove flavored tobacco products and restrict cigarette purchases from people turning 21 as soon as January 2024, while banning all cigarette sales by 2030, but it failed in committee in mid-April.

“So far during the 2023 state legislative sessions, 14 states have introduced bills to ban the sale of all flavored tobacco products, including menthol cigarettes, flavored smokeless products, flavored pipe tobacco, flavored cigars and flavored electronic cigarettes/nicotine products,” said Thomas Briant, executive director, National Association of Tobacco Outlets.

On the East Coast, the South Carolina Legislature is weighing two laws. S.414 would exclude local governments from creating and enforcing rules on tobacco and nicotine products. Senators sponsoring the bill assert statewide enforcement would better serve businesses and citizens. S.514 says minors will not be physically allowed to enter retailers that primarily sell tobacco products. Although that portion of the bill pertains almost exclusively to vape and smoke shops, it also creates a tobacco retail sales license for any store selling tobacco or nicotine. At the moment, South Carolina does not have a license mandate.

A few other state highlights include: • Arkansas HB 1725 — Requires a directory of vape products that have Premarket Tobacco Applications (PMTAs) and the prohibition of any product not in the directory by July 1, 2024. The bill is still in committee.

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Category Management | Tobacco Legislation

The U.S. Eighth District Court of Appeals ruled against R.J. Reynolds and in favor to uphold the 2020 ban on flavored tobacco.

• Idaho HB 330 — The new cigar tax cap of 50 cents per cigar was signed into law on April 4 and will be implemented July 1.

• Oregon HB 3090 — A ban on flavored tobacco and vapor products takes effect July 1, 2024. Hookah lounges remain exempt.

Also this spring, the U.S. Eighth District Court of Appeals ruled against R.J. Reynolds and in favor of the city of Edina, Minn., to uphold its 2020 ban on flavored tobacco. Lang’s One Stop Market was one of the two local convenience stores that signed onto the lawsuit against the city. “(One of the) reasons I was frustrated enough to participate in the lawsuit was because the ordinance was passed without public input,” said Anita Lang, owner, Lang’s One Stop Market.

During the legal proceedings, Lang watched customers cross city lines to buy e-cigarettes, vapes and other flavored tobacco options.

“I was anticipating a loss of revenue of about 50–60% and that has proven to be accurate,” she said. “We made adjustments back then by pulling all flavors and bringing in a few more products that we didn’t have the room for before. I am also now selling CBD products and have applied for a license to sell THC as another revenue source.”

“Now, Democratic leaders are trying to ban all flavored tobacco in Minnesota, not just in certain cities,” added Lance Klatt, executive director for the Minnesota Service Station & Convenience Store Association.

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FEDERAL FINDINGS

A roundup of tobacco and nicotine legislation wouldn’t be complete without an update of the outstanding PMTAs sitting with the Food & Drug Administration (FDA).

To date, FDA has released 23 Marketing Granted Orders for e-cigarette devices and nicotine cartridges, of which none were for flavored items or synthetic nicotine products.

“The FDA has also issued an announcement that it intends to finalize its review by Dec. 31 of the remaining PMTAs for those products with more than 2% market share,” said Briant.

Finally, as of mid-April, the FDA still has not released any new information on its intent to lower nicotine levels. Industry watchers anticipate an update on the proposed rule change this year. CSD

FAST FACTS: • A South Carolina bill would exclude local governments from creating rules on tobacco and nicotine products.

• A Nevada proposal sought to restrict tobacco purchases from people turning 21 as of January 2024, but was not successful.

• Idaho passed a cigar tax cap of 50 cents per cigar. cstoredecisions.com

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Foodservice Column | Packaging

Food Packaging CONSIDERATIONS As the demand for on-the-go foodservice grows, retailers are seeking packaging that offers flexibility, is easy to use, prevents product tampering and is eco-friendly.

Erin Del Conte • Editor-in-Chief

The Foodservice Packaging Institute (FPI) recently published its 14th annual Trends Report, which pointed to convenience stores as a growth segment for food packaging as they continue to widen their foodservice offerings.

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FPI noted that survey respondents are seeing growing interest in off-premises dining, including demand for drivethrough and curbside pickup. Having the right type of packaging can help on-the-go foods better appeal to customers, preserve freshness, ensure safety and make sure food products hold up well during delivery or dashboard dining.

CStore Decisions spoke with Natha Dempsey, the president of FPI, to learn more about today’s foodservice packaging trends.

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CStore Decisions (CSD): What are the top trends you see in on-the-go packaging for 2023 that might be relevant to convenience stores?

Natha Dempsey (ND): The top trends we continue to see in foodservice packaging are geared around safety and sanitation, ease of use and sustainability.

Packaging types in the foodservice space are being designed to reflect these core needs.

CSD: The FPI report mentioned that more packaging items are multipurpose today. Why are we seeing this trend and how can c-stores incorporate multipurpose packaging? What are the benefits?

ND: I think this trend comes from foodservice operators asking for greater flexibility when it comes to their packaging. Being able to use one package vs. two or three can help save time, space and resources. Our industry is always innovating and looking to meet the needs of our customers.

I would encourage c-stores to get creative. There are so many different types of foodservice packaging that can help promote a new product or help breathe new life into an old staple.

CSD: As more convenience stores move into delivery, what are some packaging considerations that should be on their radar?

ND: Safety and security are top of mind in the delivery space. Making sure items can’t be tampered with — we’ve all heard of the horror stories of delivery drivers helping themselves to some fries — and keeping items from spilling or leaking.

Also, as delivery becomes more prevalent in the c-store space, packaging can be vital to the customer experience. Through both brand promotion

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and food quality, packaging becomes an essential piece of the puzzle.

CSD: I understand more chains today are moving toward offering compostable packaging and working to be more eco-friendly. How should cstores be looking at this trend and what do they need to consider?

ND: One of the major factors to consider when selecting packaging with end of life in mind is availability of infrastructure. Foodservice packaging that is compostable or recyclable may have the infrastructure available in one locality, but not another.

Foodservice packaging usually doesn’t stay where it is generated and is highly mobile, especially when it comes to the c-store space, when customers may be transient and want to be in and out as quickly as possible. Just because one city has recycling and/or composting doesn’t mean the next town over does.

In areas where recycling and/or composting are available, we’re seeing more recovery of foodservice packaging. We work to increase recycling/ composting options through FPI’s recovery groups, which has made it possible for more foodservice packaging to be recycled in more communities than even five years ago.

CSD: How are supply chain issues and inflation impacting packaging today?

ND: We see a “do more with less” approach, which speaks to the demand for flexibility of foodservice packaging I mentioned earlier. While we don’t see the supply chain disruptions as we did early last year, inflation and costs have continued to increase, and our industry has been impacted just as everything else has. CSD

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Foodservice | Delivery & Order Ahead

Technology Ups

Food Ordering Convenience Advance ordering, delivery and subscription services are making shopping at convenience stores more attractive than ever.

Marilyn Odesser-Torpey • Associate Editor

As foodservice continues to climb in importance at convenience stores, retailers are taking advantage of technology to allow customers more options when they order.

At GetGo Café + Market, headquartered in Pittsburgh, customers can place foodservice orders via the company’s website or the GetGo app on iOS and Android up to 24 hours in advance, according to Chris Edwards, director of GetGo technology.

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Retailers are starting to take advantage of technology to allow customers more options when they order. Quality Mart, for example, introduced online ordering and delivery in February at five of its Winston-Salem, N.C., stores.

The chain’s entire expansive, fresh, made-toorder menu is available, as well as full customization options to add or remove ingredients or modify how the dish is prepared, he explained.

“A theme you’ll see carried throughout all aspects of GetGo’s business is the ability to customize,” added Brandon Daniels, the company’s manager of public relations. “Whether it’s adding their favorite ingredients to a fresh-made sub or choosing to place an order on the GetGo app, we put technologies in place to allow guests to customize their experience.”

Putting the technology for advance ordering in place has been a “top priority” for GetGo, Daniels said. Each store with a made-to-order kitchen, about half of GetGo’s more than 260 locations throughout western Pennsylvania, Ohio, northern West Virginia, Maryland and Indiana, offers the service.

Made-to-order kitchens are a staple of the GetGo Café + Market brand, and they will be included in the numerous new stores the chain 52

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plans to add, including one in Mentor, Ohio, which opened in February, and one in Mars, Pa., in May. Since the kitchens are already set up for made-to-order food, there were no additions or changes necessary to accommodate orders placed ahead of time, he noted.

The option to place orders in advance is “heavily included in our marketing efforts,” Daniels stated. Additionally, the company’s website and app both prominently display an “order now” button on their home screens.

If customers want to enjoy GetGo made-toorder menu items without leaving their homes or offices, the company has partnered with thirdparty delivery services.

In February, Quality Mart introduced online ordering and delivery in five of its Winston-Salem, N.C., stores out of a total of 60-plus stores located in North Carolina, Virginia and Tennessee.

Delivery is available within a 20-mile radius.

The online ordering segment is powered by local startup SWIPEBY’s platform. Quality Mart

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Foodservice | Delivery & Order Ahead

FAST FACTS: is using signage, a QR code and video at the fuel pumps to demonstrate to customers that it’s easy to place an order for pickup or delivery.

“This is an added level of convenience that we think will help us stand out from the competition and make our customers even more satisfied,” noted Sam Metzler, a senior vice president with Quality Oil Co., the parent company of Quality Mart convenience stores, in a statement.

DELIVERY ENTICES CUSTOMERS

EG America, the Blackburn, U.K.-based parent company of numerous U.S. convenience store chains, including Cumberland Farms, Certified Oil, Fastrac, Kwik Shop, Loaf N’ Jug, Minit Mart, Quik Stop, Sprint, Turkey Hill and Tom Thumb, partners with DoorDash for delivery of a wide variety of foodservice items. Customers can order anything from sandwiches to snacks and pizza to coffee through DoorDash’s app and website.

Ninety percent of Cumberland Farms’ 58 locations in New England, New York and Florida work

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• The option for customization can convince consumers to use online ordering at c-stores.

• Delivery services allow convenience stores to adjust to the buying habits of guests.

• Successful subscription programs can encourage daily store visits.

with DoorDash to offer delivery, said Stephen Skidds, Cumberland Farms’ director of food service. The company plans to add the delivery option “accordingly” as it opens new stores and as DoorDash expands its store coverage.

Cumberland Farms launched the pilot program with DoorDash in the fall of 2021. The service was rolled out chainwide in the summer of 2022.

“It has helped produce incremental sales in food and beverage and has created convenience for our guests to be able to place their order from home and have it delivered,” Skidds remarked.

The delivery service, he said, was introduced to allow Cumberland Farms to “adjust to the buying habits of guests since the pandemic and give our guests more convenient options to purchase.” Offering the service has had “very little operational impact” on the stores, he pointed out.

To inform customers about the delivery option and encourage trial, Cumberland Farms uses in-app promotions, in-store signage and other digital channels.

Another convenience option some chains are introducing is a subscription program. Circle K, for instance, offers a Sip and Save subscription which entitles enrolled customers to one drink every day for 30 days for $9.99 (less than 35 cents per day).

The program includes any size hot and iced coffee, cappuccinos, Polar Pop, hot and iced tea and aguas frescas. Refills up to 64 ounces are also included. Customers can enroll online or in the store. CSD

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Operations | LEDs / Energy Efficiency

LEDs, Energy-Efficient Models

Promote Change

C-store retailers are inspired to use more LEDs and other energyefficient opportunities as they upgrade and design stores.

Emily Boes • Senior Editor

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Convenience store retailers are increasingly considering energy-efficient options when looking to renovate existing sites or build new locations, and installing LEDs is a popular method to accomplish this. In fact, many chains are looking to move even farther forward with their alternative energy goals.

TXB, which operates 48-plus locations in Texas and Oklahoma, uses LED lighting in every store.

cstoredecisions.com

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Operations | LEDs / Energy Efficiency

“Early in the design process for our new TXB-branded locations, like the one in Georgetown, Texas, I came across these round, suspended light fixtures in Europe and loved the statement they made,” said Kevin Smartt, CEO of TXB. Smartt brought that concept to the design team, which resulted in a square version of the light fixtures from Solera Corp. The shape aligns with the square elements in TXB’s branding.

“These are now placed in the sales floor area

as this location has high ceilings, and it highlights our offerings nicely,” continued Smartt.

When it comes to the design of the physical site, details such as lighting affect customer foot traffic, according to PDI and GasBuddy’s “Tracking Convenience Report: From the Pump to the C-Store,” which analyzed fuel and convenience retail trends.

The report indicates that foot traffic increased by 5.3% at sites with an above average rating in outdoor lighting. A below average rating caused an 8.5% decrease in foot traffic. One likely reason is more well-lit spaces give customers a greater sense of safety, especially if they are traveling in an unknown area.

At TXB, in addition to LED lighting, the chain capitalizes on natural day lighting.

“While it’s not a light fixture, it’s a great light source and makes the store more energy efficient overall,” said Smartt.

Both LEDs and natural lighting lower energy costs and greenhouse gas emissions.

They use less energy, and lightbulbs are replaced less, which lowers product costs.

To compound the benefits of its lighting, TXB also uses its lights to encourage community engagement and connection by having the lights change colors during times of celebration.

TXB, in an effort to compound the benefits of lighting, uses it to encourage community engagement and connection by having the lights change colors.

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Operations | LEDs / Energy Efficiency

“When designing, we wanted to make sure our lights were customizable for each location.

This allows for the store to represent school colors for game days or change colors for specific holidays and local events. This is another way TXB connects with the local community we serve,” said Smartt.

Pete’s Convenient Stores, operating 50 stores in Missouri, Kansas and Oklahoma, uses LED lighting in 90% of its stores in the ceiling, fuel canopy, perimeter lot and elsewhere.

Eventually, all lighting will be converted to LEDs, said Brenda Elsworth, chief operating officer of Pete’s Convenient Stores.

“LED fixtures run cooler and usually come with a five- to 10-year warranty,” she explained.

It offers a cleaner, crisper light for more pleasant surroundings, Elsworth continued.

There is also much less maintenance required with LEDs. ENERGY-EFFICIENT OPTIONS

In addition to LEDs, there are multiple other methods for convenience stores to bring about greater energy efficiency.

Stewart’s Shops uses hydropower through a partnership with Gravity Renewables. The cstore chain purchases hydroelectricity that the Comtu Falls project in Springfield, Vt., generates. This is used to offset the power used to 60

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run all nine Vermont shops.

Stewart’s Shops operates 357 locations in upstate New York and southern Vermont.

Stewart’s works well with Gravity Renewables and Comtu Falls because its landscape pattern is similar to hydropower facilities. A large number of sites are located in original hydropower towns.

In addition to hydropower, Stewart’s also uses solar power. Thousands of solar panels are used to offset electricity used not only at its manufacturing plant, but also at more than 50 shops. This is especially beneficial in the summer, as Stewart’s is known primarily for its ice cream, and the panels can help offset the electricity used to power the stores and keep them cool. CSD

FAST FACTS: • Well-lit stores can increase a c-store’s foot traffic.

• LED lightbulbs last longer than others and lower energy costs.

• Solar energy and hydropower can offer alternative options.

cstoredecisions.com

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2023 Tech Innovation Awards

Casey’s Undergoes a Digital Transformation Casey’s boosts sales and betters the guest experience with technological innovations.

Emily Boes • Senior Editor

Convenience store retailers are taking action to implement new technology programs that are changing the c-store business, and Casey’s is among the chains leading the charge.

Casey’s General Stores, which operates 2,400-plus stores in 16 states, has been increasingly innovating with technology, including developing an order fulfillment app, leveraging artificial intelligence (AI) and offering delivery. For this and more, CStore Decisions is awarding Casey’s with one of our 2023 Technology Awards.

FIVE YEARS AGO

Just five years ago, Casey’s loyalty program Box

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Tops involved ordering a pizza, tearing off a piece of cardboard and, once a customer had 10, turning them in for a free pizza.

“A lot of our ordering was done through telephone where customers would call us, we’d take the order, write it down on a notebook, tape it to a wall …” said Art Sebastian, vice president of digital experiences, Casey’s. “And then we’d put (the pizza) in a box and hope the guests would pick it up and pay appropriately at the register.”

At that time, Casey’s had just celebrated its 50th anniversary.

“We took a moment to reflect and looked at ourselves deeply and asked, ‘How do we stay relevant for the next 50-plus years?’ And one of the answers … was that it was time for a digital transformation,” said Sebastian.

cstoredecisions.com

DIGITAL UPGRADES

Casey’s decided to install an Application Programming Interface-led technology stack and brought in user-experience and user-interface teams to design the interfaces. It also partnered with companies to create “a tech stack that is world class,” according to Sebastian.

The chain launched a new website, mobile app and loyalty program, as well as a marketing stack to reach customers through emails, in-app messages, etc. In addition, Casey’s centralized and unified its data through a customer data platform, which it uses for personalized marketing.

“And the results are we’re selling a whole lot more pizza,” said Sebastian. “Our rewards members have surpassed 6 million members, and 50% of them are active each month. So a lot of goodness there.”

On a different track, Casey’s is piloting self-checkout and further developing its retail media network, Casey’s Access.

ORDER FULFILLMENT

A year and a half ago, Casey’s piloted its order fulfillment app, which then launched companywide six months ago.

“So just like a grocer, the items show up on the app, and then you go pick the item, you scan it, you stage it, and it helps us ensure order accuracy with our

cstoredecisions.com

guests,” said Sebastian. “So Ben & Jerry’s ice cream, your Casey’s bag of chips, your Mountain Dew, all of that is accompanied with the pizza, and technology has enabled that to be an accurate order.”

Store team member utilization of the app has increased, and order accuracy has improved dramatically, according to Sebastian.

Since the technology guides the picking and staging of items, items aren’t forgotten. This has led to greater overall satisfaction scores (OSAT) and net promoter scores (NPS) from customers.

“Ultimately … when you see good OSAT and NPS, the virtual cycle continues, and the guest continues to order with us. So we get to earn their business,” said Sebastian.

Casey’s also now offers delivery through DoorDash and Uber Eats, and it launched curbside pickup, too.

Additionally, Casey’s has its own delivery drivers.

“We’re sort of agnostic to delivery drivers. … we’re flexible with whatever way we can serve our guests,” said Sebastian.

Further, in the kitchen, Casey’s has an order management system (OMS), which serves as the “brain of the kitchen.” When an order comes in, it prints a May 2023 • CSTORE DECISIONS

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2023 Tech Innovation Awards

ticket for the kitchen team members, letting them know to prepare the order. The OMS also orchestrates Smart Promise Time.

“When you order a pizza from us, Smart Promise Time is looking at everything in the order — pizzas, pop, ice cream, complexity of pizza — and then it’s looking at

Casey’s has piloted automated voice ordering using artificial intelligence at many of its stores.

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labor hours assigned to the store, and it kicks back what we call a Smart Promise Time (an estimate of how long the order will take). So that’s technology doing the work,” said Sebastian.

AI AT WORK

Casey’s also piloted automated voice ordering using AI at many of its stores. AVA (Automated Voice Assistant) will interact with the customer and take their order. At this point, the order goes into the OMS. With AVA, Casey’s has been able to shift labor toward pizza-making as opposed to answering phone calls.

Prior to AVA, Casey’s leveraged AI to optimize its marketing techniques. For different segments of customers, email blasts are sent out based on the times the customers typically engage with email. Even better, the AI helps determine which platform customers are more likely to use and will target its messages accordingly.

This AI can also alter emails that have already been sent based on real-time data to optimize the open rate.

“We serve rural communities; half our stores are in smaller towns. And so, in one way, I think we bring things that happen in Silicon Valley, and we bring it here to the rural heartland of America,” said Sebastian.

cstoredecisions.com

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713-435-6700

2/15/23 9:36 AM

2023 Tech Innovation Awards

Parker’s Prioritizes Personaliz Parker’s recently relaunched its Rewards app with a new look and more personalized content to fit customers’ needs.

Zhane Isom • Associate Editor

As technology continues to improve, convenience store retailers are coming up with new ways to incorporate technology into their stores or to enhance the technology they already have.

Savannah, Ga.-based Parker’s Kitchen, which has 74 stores across Georgia and South Carolina, is one c-store that is always working to improve its technology, especially when it comes to meeting the needs and wants of its customers.

CStore Decisions is recognizing Parker’s as part of our Tech Innovation Awards for its drive and dedication to enhancing its technology to better connect with customers and provide them with the services that best fit their needs.

IMPROVED REWARDS APP

Parker’s launched its Rewards app in 2016, and since then, the company has been ahead of the game when it comes to exploring contactless and frictionless payments.

As the company grew and more customers began using the app, Parker’s wanted to be able to better connect with customers, which led the company to spearhead the new app.

“Parker’s strives to constantly be at the cutting edge of technological advances where it makes the most sense as a benefit to the guest,” said 66

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May 2023

Nick Hand, loyalty and brand manager for Parker’s.

“There was a large disconnect between Parker’s and the guests with the previous app experience, and we’re excited to see how this new app will increase personalized engagement.”

With its customers in mind, Parker’s relaunched the Rewards app with a new user-friendly design that allows users to have a better experience with coupons and rewards that fit their needs, along with increased security.

“The app update’s primary focus was to provide a cleaner, updated look that is not only more userfriendly but also allows for much more personalized content that can be curated to each guest’s preference and behavior,” said Hand.

Since the app’s relaunch, Parker’s has even seen an increase in customer interactions inside its stores.

“We’ve seen a dramatic increase in engagement

cstoredecisions.com

nalization With Rewards App

Parker’s relaunched its Rewards app with a cleaner, updated look. The user-friendly app allows for more personalized content and a better experience with coupons.

and coupon awareness even in the short time the app update has been live — having control over where and how the coupons are made known is a key factor in bringing the best value to the guest,” said Hand.

With the new Rewards app, coupons, rewards and messaging can be updated instantly and require no development efforts to change them. The new platform will also allow for future integrations, including gamification, native online ordering, subscription management and more.

“We are also adding more items to the center store for mobile ordering. We are even going to partner with delivery services like Uber Eats, Grubhub and DoorDash to allow people to get delivery from the Rewards app as well,” said Scott Smith, senior director of information technology for Parker’s. cstoredecisions.com

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The Tech Innovation Awards

Parker’s has rolled out self-checkout kiosks at 38 locations and plans to continue adding the service to additional stores.

Parker’s really emphasized establishing personalization for customers when improving its coupons and rewards offerings.

“Our rewards and coupons are now smarter than ever,” said Hand. “Our offers are generated based on a guest’s typical purchase behavior, so we understand who they are and what they want at a much greater level.”

When it comes to security, Parker’s has improved its protocols on the app to ensure customers’ information stays safe and secure.

“Updated security protocols and cutting-edge technology are at the forefront of the latest app development, while maintaining required PIN code verification and device-use fraud protection by incorporating a text verification step upon sign-up for the app,” said Hand.

TECH AT THE PUMP

Along with improving the Rewards app, Parker’s also enhanced its pump activation process.

“Our pump activation process has been greatly improved with more accurate location detection and a streamlined payment process, and now includes a maximum price cap during a fill-up if the guest chooses to apply it,” said Hand. “We are working on integrating more payment options into the contactless methods.”

Also, while at the pump, customers can use the 68

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Rewards app on their phones to order items instead of going inside to order.

“We allow people to go into the mobile app and order directly from the app for in-store pickup,” said Smith. “We made the decision that most people pull out their phones while they’re waiting to fuel up, so we figured we would allow them to order from their phones and walk inside to pick their order up.”

In addition to ordering on the app at the pump, Parker’s has added Pump Pal, which is Parker’s proprietary ACH debit card that allows customers to receive a 10 cents discount when they fuel up their vehicle with the card.

For customers who prefer a more contactless experience in-store, Parker’s has rolled out self-checkout kiosks at 38 locations and plans to continue adding the service to additional stores.

As technology continues to evolve, Parker’s plans to continue improving its Rewards app and other technology the company has in its c-stores to allow customers to have the easiest experience possible while in the stores.

“From the technology standpoint, we are trying to ease the customers’ experience when they come in the store,” said Smith. “Whether, that’s through digital signage, tap to pay or any other technology we offer.” CSD

cstoredecisions.com

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Technology | Future Tech

Automation Brings

Opportunity for C-Stores

Technology is helping retailers enhance the store experience, making the shopper journey easier for customers.

Brad Perkins • Contributing Editor

Automation is offering new ways for convenience stores to cater to customers, and it’s expanding at a rapid pace.

From robotic fresh smoothie kiosks at Love’s Travel Stops & Country Stores (pictured right) to self-checkout and checkout-free stores to mobile apps that provide customized deals, retailers are embracing technology as another way to connect with shoppers and improve operations. Today, connected devices warn of inventory levels or issues with doors and coolers. And new artificial intelligence tools like ChatGPT give stores the opportunity to connect at the push of a button.

With so many new ways of attracting and serving customers and operating the stores it may seem like technology is taking over. But it’s not about replacement; it’s about enhancement.

ENHANCING THE STORE EXPERIENCE

“People look at the future and make the mistake of thinking it’s either this or that,” said Daniel Burrus, CEO of Burrus Research Associates, which monitors global advancements in technology. “Will artificial intelligence (AI) replace humans? It will replace humans with humans using AI. We live in a human world and a technical world.”

Customers not only return to stores because they have the products they need, but also because they see a smiling face, Burrus pointed out.

A recent survey by CivicScience showed that a whopping 60% of customers would prefer to interact with an employee during checkout.

“We live in a technological world, but we also live in a human world,” Burrus said. “It’s still about people and relationships. They’re coming into your store because it’s convenient and local. These tools are freeing us up to create a relationship and create trust.”

Those relationships can build loyalty, so when customers think about running out to get something, they think of their local store. Stores can use technology to provide more products, faster service and greater customization and to free up employees to spend more time on customer service. While mobile apps remain vital, the real relationship building begins once customers enter the store.

“Our goal is to create a seamless digital experience that is personalized for our guests and team members,” said Mike Rodgers, chief technology officer, Pilot Co., which operates more than 800 locations, 750 of which are part of its Pilot Flying J Travel Center network, in 44 states and five Canadian provinces. “We look at technology through the lens of the end user to better understand how we can cstoredecisions.com

best serve their needs and make their lives easier.”

That’s the key — adopting technology that makes life easier.

“We’ve found that our guests appreciate technology that gives them more freedom along their journey and have seen increased usage of digital tools that provide convenience and independence, such as mobile fueling, parking and shower reservations, and digital payment options,” Rodgers said. “We are also installing self-checkouts as we remodel our stores to offer more options for our guests to get in and out quickly.”

Technology doesn’t only cater to customers. It can help employees work more efficiently, giving them space to help customers.

“For our team members, we are implementing technology such as handheld scanners, tablets and automation for recurring tasks to help make their jobs easier and give them more time to focus on providing excellent service to our guests,” Rodgers said.

That service doesn’t have to solely cater to in-store purchases either. As electric vehicles become more prevalent and cheaper, more drivers will need a place to stop and charge. Having charging stations at the store could entice customers to spend time in the store while they charge.

Meanwhile, nearby companies using autonomous or semiautonomous vehicles will need a place to fill them up — no matter what type of fuel they use.

Regardless of whether it’s in the store, in the forecourt or behind the scenes, the increasing availability and better ease of use of technology for everything from sales to marketing to checkout to product offerings will only become more in demand.

“One thing that continues to grow more powerful and cheaper is technology that can make your store look intelligent to help the customer and yourself,” Burrus said. CSD May 2023

• CSTORE DECISIONS

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PRODUCTShowcase

Roller Grill Hot Dogs and Brats Johnsonville offers a full lineup of brats and hot dogs made with quality ingredients for retailers’ roller grills. The company offers delicious classic flavors like the Ultimate Brat or Smoked Polish in addition to trending flavors like Cheddar Jalapeño, with a branded merchandising program to help retailers share the company’s trusted name with customers. Additionally, Johnsonville offers craveable menu ideas, from roller grill and grab-n-go solutions to recipe and topping suggestions, giving retailers all they need for roller grill success.

Johnsonville

www.johnsonvillefoodservice.com

Nicotine-Free Tobacco Naturally Flavored Grapefruit and LemonLime Waters The Clearly Food & Beverage Co. added a new portfolio offering to its lineup: Clearly Canadian Essence. Launching with two fresh and bright flavors, Grapefruit and Limon, Essence is bottled at the source from an aquifer deep within the Canadian wilderness. Essence contains only sparkling Canadian spring water and natural vegan flavors.

The new flavors are available for distribution nationwide.

The 11-ounce bottles will be line priced to the current “Originals” portfolio. Clearly Canadian Essence is one of the first major additions to the brand since it was reintroduced to mass distribution.

The Clearly Food & Beverage Co.

Kretek International introduced nicotine-free Djarum Bliss as the next wave of clove enjoyment. The tobacco-free 20-packs offer clove smokers the taste they love without nicotine or hemp. Djarum Bliss distribution to date has been focused on California as c-stores and tobacco shops cope with the removal of flavored tobacco. Initial sales of Djarum Bliss clove smokes show that even with restrictions a year away, it’s not too early to start showing tobacco-free alternatives.

Kretek International Inc.

www.kretek.com

Blueberry and Banana Nut Muffin Varieties Prairie City Bakery has added Coffee House Muffins to its lineup of offerings. The new muffins come in two classic flavors — Blueberry and Banana Nut. Made with real fruit, the Blueberry flavor is bursting with juicy, plump blueberries, while Banana Nut is loaded with sweet banana puree and is crunchy. Individually wrapped and weighing in at four ounces each, Coffee House Muffins are the perfect size for a satisfying snack or light breakfast option. With a 45-day shelf life from thaw, they offer extended shelf stability without sacrificing quality.

Prairie City Bakery Inc.

www.pcbakery.com

www.clearlycanadian.com

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PRODUCTShowcase

Lottery Tracking System LottoShield has launched a new lottery tracking system that eliminates the manual, time-intensive process of lottery reconciliation and provides retailers with strong protection from all kinds of lottery theft. The LottoShield scanner allows cashiers to audit inventory in just seconds, without entering ticket or bin numbers manually. LottoShield is also the only system that automatically tracks invoices and reports from the state lottery to monitor confirmed packs, activations, online lotto sales, payouts and more.

LottoShield

www.lottoshield.com

Specialty Meats and Snacks Fiorucci is a leading producer of Italian-inspired specialty meats and snacks, using old-world techniques through innovative, modern ways to delight families across the world.

Customers can enjoy the brand’s signature flavor with its finest snacking offerings.

Sigma Alimentos

www.fioruccifoods.com

Jamaican-Style Ginger Beer Goya has released a new flavor of ginger beer — Goya Jamaican Style Ginger Beer. The refreshing beverage delivers a unique ginger kick and is perfect for enjoying with family and friends on any occasion. The beverage can be used on its own or in a variety of cocktails. The non-alcoholic drink comes in a four-pack with sevenounce bottles for a suggested retail price of $4.99.

Italian Lemon Spritz Zonin has launched a new Spritz collection with Coastal Lemon Spritz to join the newly rebranded Zonin Prosecco portfolio. The new addition is a refreshingly modern twist inspired by the Italian lifestyle and iconic Italian Limoncello liqueur. The sparkling wine is blended with all-natural lemon, giving it a bold, refreshing and zesty taste. The product is sold in 200-milliliter and 750-milliliter bottles.

Zonin USA

www.zoninusa.com

Goya Foods Inc.

www.goya.com

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PRODUCTShowcase

Plant-Based Sushi Rolls Highly anticipated brand Konscious Foods is making its U.S. debut with offerings like the all-new plant-based sushi rolls. The sushi rolls are available in four varieties, including California Roll, Spicy California Roll, Rainbow Roll and Tuna Avocado Roll. The product has a suggested retail price of $8.99 for eight pieces. All of the brand’s products are made with high-quality, clean ingredients and are non-GMO Project Verified, gluten free, 100% plant-based, organic where possible and made without any carrageenan or titanium dioxide.

Konscious Foods

www.konscious.com

Chocolate Milk-Filled Kisses The Hershey Co. has introduced its new Hershey’s Kisses Milklicious candies, which feature a creamy chocolate milk filling packed into the center of a rich, milk chocolate Hershey’s Kisses candy. The treats build on the Kisses portfolio with a distinct light blue foil wrapping that is adorned with little glasses of milk, providing playful cue to the new flavor. The candy is available nationwide in a nine-ounce share bag.

a

The Hershey Co.

www.thehersheycompany.com

South Asian-Style Ice Cream Heritage Kulfi revitalizes traditional approaches to kulfi, South Asia’s treasured style of ice cream. Churned minimally and made with ample cream like the original dessert, Heritage Kulfi’s decadent ingredients are slow cooked and cooled overnight, yielding a dense, creamy texture and rich dairy notes. A proprietary steeping process is responsible for the complexity and depth of Heritage Kulfi’s signature flavor profiles: Alphonso Mango, Cardamom Chai, Coconut, Earl Grey, Pistachio, Rosewater, Saffron and Vanilla Bean. Along with using certified sustainably sourced packaging, all flavors are egg free, non-GMO, gluten free, halal and kosher.

Heritage Kulfi

www.heritagekulfi.com

Heat-Sealable, Recyclable Packaging Solution ProAmpac offers the ProActive RP1000, which is the first in a series of curbside recyclable paper-based packaging solutions that are heat sealable with good moisture barriers and excellent directional tear properties. An ideal replacement for non-sustainable conventional multimaterial laminates, RP-1000 is suited for frozen food applications such as ready-to-eat meals and vegetables.

Pre-qualified for curbside recycling, RP-1000 can be recycled in both paper and mixed streams. RP-1000 series are available in rollstock, stand up and three-side seal pouch formats and are also available in natural kraft or bleached versions for brand elevation and customization.

ProAmpac

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PRODUCTShowcase

CMA-Approved Clamshell Container One of Eco-Products’ nine-inch, three-compartment Vanguard clamshells has earned CMA-W approval from the Compost Manufacturing Alliance (CMA), making it the first molded fiber item made with no added per-and polyfluoroalkyl substances (PFAS) to be approved by CMA. Vanguard is a groundbreaking line of compostable plates and containers made from molded fiber. The products use a proprietary chemistry to achieve grease resistance without the addition of PFAS, part of a class of materials sometimes referred to as “forever chemicals.” The Vanguard line includes plates, bowls, trays, containers and portion cups. They are microwave friendly, cut resistant and work for takeout and delivery.

Novolex

www.novolex.com

Bloody Mary Mix and RTD Zing Zang just introduced the first new Bloody Mary mix line extension in the company’s 25-year history, Zing Zang Blazing Bloody Mary Mix, as well as the new Zing Zang Blazing Bloody Mary Ready-to-Drink (RTD) canned cocktail.

Zing Zang Bloody Mary mixes are made from a proprietary blend of seven real vegetable juices and a complex array of bold spices and seasonings. The Zing Zang Bloody Mary RTD is made with the respective Zing Zang Bloody Mary mixes and premium six-times distilled vodka. Each 12-ounce slim RTD can contains 9% alcohol by volume and offers the equivalent of two cocktails in every can.

Zing Zang LLC

www.zingzang.com

Sea Salt & Pepper No-Shell Pistachios Wonderful Pistachios has revealed its new Sea Salt & Pepper No Shells. The new Sea Salt & Pepper No Shells variety joins the current cast of flavors, including Sea Salt & Vinegar, Smoky Barbecue, Chili Roasted and Honey Roasted.

Wonderful Pistachios No Shells Sea Salt & Pepper combines bold sea salt and spicy black pepper.

Sea Salt & Pepper will be available in 5.5-ounce, 11-ounce, 22-ounce and 2.25-ounce bags throughout the U.S. and Canada. It will also be available as part of a 72-count display with Wonderful Pistachios No Shells Sea Salt & Vinegar.

The Wonderful Co. www.wonderful.com

Nacho Cheese-Flavored Snack Takis announced the introduction of Takis Intense Nacho, the brand’s first non-spicy salty snack offering, alongside a partnership with Grammynominated, world-renowned artist Steve Aoki. The new flavor captures the classic intensity of Takis without the spice. The snack comes in several forms, including Takis Pop!, Takis Rolled Chips and Takis Waves varieties. Takis Intense Nacho is available now in different sizes between 2.5 ounces and 9.9 ounces in local stores at a suggested retail price of $2.19 and up to $4.49.

Grupo Bimbo

www.grupobimbo.com cstoredecisions.com

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Classifieds/Ad Index

Abbott

15

ADD Systems

25

https://pedialyte.com 800-922-0972 / www.addsys.com

Anchor Packaging

49

American Business Brokers

27

Terry@TerryMonroe.com

Liggett Vector Brands

13

Loomis Armored US, LLC

65

Modern Store Equipment

59

MOJO Balanced Energy Pouches

43

North American Bancard

76

NRS Petro

29

Mars Wrigley

31

McLane Company, Inc.

79

Perfetti van Melle

33

713.435.6700 / sales@us.loomis.com www.loomis.us 877.532.8433 / info@modernstoreonline.com modernstoreonline.com/cstore

BlueTriton Brands, Inc.

9

www.GrabMojo.com

E-Alternative Solutions

23

866.481.4604 / www.nynab.com

5, 61

888.260.0112 / www.nrspetro.com

844.841.1847 / SaratogaWater.com www.EalternativeSolutions.com/Leap

Haleon

Chapstick: John.L.Hankins@haleon.com Nicorette: Scott.F.Breisinger@haleon.com

www.mars.com

Kellogg's

35

Kretek - Cuban Rounds

41

www.kelloggsawayfromhome.com KretekSales@Kretek.com

www.mclanegrocery.com

www.perfettivanmelle.com

Placon

47

Premier Manufacturing, Inc.

53

Recuerda Brew

3

Southern CaseArts / Royston

57

800.541.1535 / www.placon.com

877.415.4100 2

www.anchorpac.com

51

800.290.6097 / www.krispykrunchy.com

Altria Group Distribution Company Marlboro 1.877.968.5323

Krispy Krunchy Chicken

www.gopremier.com

sales.us@recuerdacafe.com www.recuerdacafe.com 800.552.6283 / www.southerncasearts.com

Swedish Match

800.367.3677 www.zyn.com www.whiteowlcigar.com www.generalsnus.com www.gamecigars.com

7 19 55 80

TransAct Technologies

69

www.transact-tech.com

Trion Industries, Inc.

36-37

VLN

Cover

800.444.4665 / www.TrionOnline.com 800.225.1838 / sales@XXIICentury.com

Making Connections that Drive Business

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.

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.

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IndustryPerspective

Can Convenience Stores Still Cash in on Crypto?

Despite a difficult winter for cryptocurrencies, c-stores can still profit from this growing segment through crypto ATMs or branded cryptocurrencies.

Richard Crone • Crone Consulting LLC

Cryptocurrencies are evolving and becoming more relevant despite ongoing market fluctuations and the “crypto winter of 2022,” during which the value of popular cryptocurrencies plummeted.

Technological innovation, decentralization, censorship resistance and growing adoption rates contribute to the continued prominence of cryptocurrencies. As a result, convenience stores have the opportunity to integrate cryptocurrencies into their operations, attracting a broader customer base and offering additional services.

Some potential opportunities for c-stores include accepting cryptocurrency payments, installing crypto ATMs and kiosks, offering international remittance services, creating loyalty and rewards programs, adopting cryptocurrency-compatible pointof-sale (POS) systems and exploring blockchain technology for supply chain management.

WHY CRYPTO?

Cryptocurrencies are built on blockchain technology, which is constantly evolving. Blockchain has numerous potential applications beyond cryptocurrencies, such as supply chain management, voting systems and decentralized finance.

The underlying technology and its ongoing advancements maintain the relevance of cryptocurrencies and the broader blockchain ecosystem.

One of the core tenets of cryptocurrencies like bitcoin is decentraliza78

CSTORE DECISIONS •

May 2023

tion. This aspect makes them resistant to censorship and control by any single entity, such as governments or financial institutions.

As a result, cryptocurrencies can serve as an alternative financial system for people in countries with unstable currencies or limited access to banking services.

Cryptocurrencies offer a way to transfer value across borders quickly and with relatively low fees. This makes them an attractive option for remittances and digital payments, especially in areas where traditional banking services are expensive or inaccessible.

Some cryptocurrencies offer enhanced privacy and security features that are not available through traditional financial systems. These features can be particularly appealing to individuals concerned about data privacy and the security of their financial transactions.

ADVANTAGES FOR C-STORES

Branded cryptocurrencies, or custom tokens, can provide new opportunities for c-stores to engage customers, build loyalty and create new revenue streams similar to private-label prepaid debit and gift card programs.

C-stores can use branded cryptocurrencies for customer loyalty and rewards programs, gamification, customer feedback incentives, crosspromotions and alternative payment options. However, factors such as regulatory compliance, technological infrastructure, customer adoption,

volatility and security must be considered before adoption.

Crypto ATMs and kiosks can offer significant benefits for c-stores, such as additional revenue streams, increased foot traffic, competitive advantage, catering to the unbanked or underbanked and enhancing brand image. However, challenges include regulatory compliance, security, initial investment and maintenance costs, and customer education and support.

Despite the potential impact of closures or interruptions in services like the Silvergate Exchange Network (SEN) and Signature Bank’s cryptocurrency network Signet, the integration of cryptocurrency services remains a promising opportunity for c-stores.

Coin ATM Radar data highlights the substantial earning potential of cryptocurrency ATMs compared to traditional ATMs, with a single-purpose crypto machine generating up to $36,000 in top-line revenue per unit.

However, the closure of these services could lead to reduced access to banking services, liquidity constraints, increased operational costs, slower transaction times, increased regulatory scrutiny and market consolidation. C-stores must stay informed and adapt to the changing landscape to capitalize on the opportunities presented by cryptocurrencies.

Richard Crone is the CEO of Crone Consulting LLC, an independent advisory specializing in mobile strategy, autonomous checkin/checkout and personalized payments for c-stores, restaurants, supermarkets and other retailers. Follow him on Linkedin.com/ in/richardcrone/.

cstoredecisions.com

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