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Robert Buhler, President and CEO
Open Pantry Food Marts • Pleasant Prairie, Wis.
Lisa Dell’Alba, President and CEO
Square One Markets • Bethlehem, Pa.
Raymond Huff, President
HJB Convenience Corp. • Lakewood, Colo.
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Beck Suppliers Inc. • Fremont, Ohio
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Robinson Oil Corp. • Santa Clara, Calif.
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Hit-N-Run Food Stores • Lafayette, La.
Robin Hunt, Sales Hunt Brothers Pizza • Nashville, Tenn.
Kyle May, Director External Relations Reynolds Marketing Services Co. • Winston-Salem, N.C.
Tony Woodward, Manager Sr. Account McLane Company Inc. • Temple, Texas
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Warrenton Oil Inc. • Warrenton, Mo.
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Cliff’s Local Market • Marcy, N.Y.
Megan Chmura, Director of Center Store GetGo • Pittsburgh
Ryan Faville, Director of Purchasing
Stewart’s Shops Corp. • Saratoga Springs, N.Y.
Cole Fountain, Director of Merchandise Gate Petroleum Co. • Jacksonville, Fla.
Alex Garoutte, Director of Marketing The Kent Cos. Inc. • Midland, Texas
Daillard Paris, Director of Petroleum Supply and Trading Sheetz Inc. • Altoona, Pa.
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gain deeper knowledge and connections through education and networking as part of YEO.
Not only are young executives pushing their companies to implement new technology, but they’re also encouraging their businesses to adapt to new trends across the c-store landscape, whether it be in category management, labor management or modern store design.
Recognizing top talent among this cohort and investing in their training and advancement has never been more important given how competitive the c-store business has become. The leaders of tomorrow are set to face an ever-increasing number of hurdles, including growing tobacco legislation, increased foodservice demand, the rise of electric vehicles, staffing issues and rapidly changing technology that are altering the way chains do business, among many other key issues. How well companies prepare their next generation leaders in terms of personal and professional development will determine whether chains are ready and able to adapt to future demands.
When it comes to recognizing top talent, look no further than the 40 Under 40. CStore Decisions and the Young Executives Organization (YEO) are now seeking nominations for our 2023 class of 40 Under 40 Leaders to Watch, which is an annual list of the c-store industry’s upand-coming leaders whose ideas and skills, either personally or as part of a team, have been responsible for helping advance their business in a demonstrable way within the past 12 months. Nominate young c-store executives at Surveymonkey.com/r/40Under40-2023. Retailers only are featured on this exclusive list. The nomination period ends Sept. 20. This year’s class of 40 Under 40 will be announced in CStore Decisions’ December issue and in a virtual gala held in early December.
The National Advisory Group (NAG Convenience) has long offered an avenue for next-generation leaders to
Now, in partnership with Gallup, an employment consultancy firm, NAG Convenience and YEO are introducing a new benefit for NAG members called the Leadership Discover Program (LDP). Designed for young executives, the program focuses on personal and professional development for next-generation leaders. All NAG Convenience retail and allied member companies are allotted two complimentary participants. Additional seats will be made available for a fee.
Participants will be guided through the robust CliftonStrengths diagnostic, an in-person deep-dive workshop and interactive virtual workshops, all designed specifically around convenience retailing and featured throughout the year.
All convenience retailers are encouraged to tune in to a kick-off webinar on Wednesday, Oct. 18, at 2 p.m. EST. The webinar is free and encouraged for anyone who may be interested in learning about the LDP and how to become involved. Attendees will join Allison Dean, executive director of NAG Convenience, and Heather Wright, senior leadership and development consultant from Gallup, as they review the importance of leadership development and how the CliftonStrengths program is best suited for the rising leaders in the convenience retailing industry. Attendees will leave the virtual session with an overview of the Gallup leadership methodology and everything they need to know about LDP, including key dates and how to take advantage of this unique member benefit.
RSVP for the free webinar today:
Nagconvenience.com/event/yeo-leadership-discoveryprogram-overview-launch/.
As chains look to develop their leaders of tomorrow, they must consider not only their company’s current needs but also where they want their company to be 10 years down the road, as well as their plans and resources for training and retaining future leaders. NAG and YEO are here to help.
As c-stores look to grow and modernize stores with an eye toward the future, today’s young executives and next-generation leaders are driving the charge.
Casey’s works to foster an environment that encourages authentic, open and honest conversations among team members.
Erin Del Conte • Editor-in-ChiefCasey’s has been implementing resource groups to connect team members as part of its diversity, equity and inclusion (DEI) initiative.
The chain’s “Casey’s CARES” culture has been created around the values of commitment, authenticity, respect, evolving and service. The Ankeny, Iowa-based company puts service first as it cares for its guests, communities and its more than 43,000 team members.
CStore Decisions caught up with Nan Thomae, vice president of human resources — operations for Casey’s, to learn more about how the c-store chain is approaching DEI across its 2,500 stores in 16 states.
CStore Decisions (CSD): Why is DEI an important initiative at Casey’s?
Nan Thomae (NT): Casey’s recognizes the value and importance of diversity, equity and inclusion in the workplace and beyond. The Diversity, Equity and Inclusion Committee was created in line with our company values — Casey’s CARES — and our purpose to make life better for our guests and communities every day.
CSD: How is Casey’s approaching DEI today? What are some of the initiatives the company has put into place?
NT: At Casey’s, we purposefully and intentionally are creating an environment that encourages authentic, open and honest conversations. One way we are building a culture where all team members are valued and provided opportunities to have their voices heard and included is the Casey’s Resource Groups (CRGs) we have created and continue to expand. These groups help create connections for our team members who identify with a certain element of diversity or identify as an ally to a group. We continue to see growing engagement and interest in our CRGs.
CSD: Tell me about the resource groups Casey’s implemented. What are they, how do they work and when did Casey’s introduce them?
NT: We have four groups, and most have formed in recent years. iWill was our first group and has been around for several years. These groups and their focus areas include:
•iWill = Women Inspired to Lift & Lead
Mission: To educate, inspire and encourage women to set goals, to strive to move higher in the organization, to become more active in the wider community and to foster healthy work relationships.
• Military Resource Group
Mission: To provide support, awareness, education and opportunities to military team members at Casey’s.
• Pride + Allies
Mission: To purposefully and intentionally create an environment that encourages authentic, open and honest conversations among LGBTQ+ team members and allies to drive positive change for the broader LGBTQ+ population.
• Christian Resource Network
Mission: To provide space for open expression of faith and an opportunity to grow in Godly Character and Casey’s CARES Values
through prayer, book and Bible studies, group collaboration, and outreach activities.
CSD: From an employee retention and satisfaction perspective, how is DEI making a difference at Casey’s? What has employee feedback been?
NT: The feedback has been positive, and we’ve seen new CRG groups emerge, for example, as we’ve brought more attention to DEI.
CSD: If chains aren’t ready to implement a whole program, are there any small steps you’d recommend they take?
NT: It may sound obvious, but listening and learning from your team member base is a great place to start. This could include an internal survey and focus groups, for example, to help hear what’s on employees’ minds in the area of DEI and start to shape where the company can have the most impact.
In the tricky world of Las Vegas-based business, Roam N Stop is flourishing and growing. Launched amidst the COVID-19 pandemic, the chain currently operates three sites in the Las Vegas area with two new locations set to open in Colorado under the TravelCenters of America brand.
The company is also developing a mobile app and a loyalty program, and launching a proprietary foodservice program, as it plans for future expansion through both new builds and acquisitions.
Roam N Stop is owned by parent company MEQ C&G LLC, which is mostly comprised of the principles from a sister company called Mass Equities, noted Scott Lyle, Roam N Stop CEO.
Roam N Stop stores feature bright, colorful exteriors and large text that describes what can be found inside. Two sites are designed with red, white and blue colors, while the third location uses light orange and brown colors.
“Mass Equities is a small boutique private-equity firm and, historically, we had focused on commercial real estate,” said Lyle. “We’ve been doing business in the Las Vegas market for probably 12-plus years, and we’ve done over a million square feet, probably 1.2 million at this point, of neighborhood-serving retail centers in that market.”
Lyle and Mass Equities’ experience in the Las Vegas market has proven to be a huge asset for the company’s growth and success.
During the middle of the COVID-19 pandemic, the ownership group was searching for ways to incorporate new operating companies to create stabilized income streams in addition to real estate, but they wanted to do it in a way that would really tie into real estate, Lyle said. The idea for Roam N Stop convenience stores was born, and the three current locations were acquired at once.
Mass Equities also owns a Take Five Oil Change franchise in the Las Vegas area, added April VanApeldorn, vice president of operations at Roam N Stop.
The company’s three Roam N Stop stores feature a similar style with a bright, colorful exterior and large descriptive text that describes what can be found inside. Two sites are designed with red, white and blue colors, while the third location was restricted due to city code and limited to using more of a desert palette of creams, light oranges and browns.
In late spring of 2023, the chain completed a renovation of the interior and exterior of its stores, through which the layouts were refreshed for better flow. Additionally, the coffee area was also reconfigured for ease of use by customers.
Each store measures about 3,500 square feet, depending on the foodservice offerings in each respective site.
Now, the chain is turning its attention to growing through two TravelCenters of America-branded stores planned for Colorado.
“One (will be in) Larksburg, Colo., and we’re looking at a second location,” noted Lyle.
Lyle also noted that while the Colorado locations will not be branded as Roam N Stop c-stores, the company will still be offering its expertise and capabilities through the entire platform.
Roam N Stop features a variety of foodservice options for customers in the Las Vegas area.
Currently, one Roam N Stop location features a Don Tortaco quick-service restaurant. Don Tortaco is a popular destination for hungry customers, and it is a big regional player in the Mexican food market, Lyle noted. Customers are drawn to the program
Roam N Stop is working with Farmer Brothers Coffee to brand its coffee area with a variety of flavors and syrups for customers to choose from. It’s also rolling out a proprietary food program to all its Las Vegas stores.
because of its authentic, high-quality food, he added.
The chain also offers Sbarro pizza at two of its locations.
Roam N Stop is currently rolling out a proprietary food program to all its Las Vegas stores.
“We will have our own proprietary sandwiches for breakfast and for lunch,” said VanApeldorn. “We’ve also been working with Farmer Brothers Coffee to brand our coffee area with, not only a variation of their flavors, but we’ve also implemented their gourmet syrup programs, so that our customers can customize their coffee beverages similar to what you would find at a café in the area. So, (we’re) just giving them some more options.”
VanApeldorn noted that the chain is also leveraging Farmer Brothers Coffee’s cold-brew coffee program to drive sales in the hot Las Vegas summer.
Lyle is certain that the Las Vegas market offers an expanding and promising future for the Roam N Stop chain.
“We believe a lot in that market, and we are expecting to (build and/or acquire) probably two to three stores a year in that market,” he said.
Moreover, his strategic vision includes the expansion of the travel center enterprise, with a primary
focus on bolstering its presence within the Western market. Given that the company already owns real estate assets in the Colorado and California markets through its affiliation with Mass Equities’ real estate division, these regions have become familiar terrain where the company feels more at ease pursuing further growth.
For Roam N Stop, specifically, the future is bright. Currently, the company plans to launch a mobile app that features a loyalty program, and it’s considering the possibility of adding electric vehicle chargers to future locations.
The mobile app will help the company target its customers’ specific needs, which is something that Roam N Stop emphasizes throughout its store offering.
“We really want our stores to be stores that are
meeting the needs of our customers. Every store is different. Every store is in a different area, and (so is) your customer,” said VanApeldorn. “So, when we say we want to focus on the community for each store, each store (has) its community. We’re really trying to base what we’re doing off of the true needs of each location.”
The Roam N Stop team wants every customer to feel welcome at each location as it strives to create stores that act as hubs for their local communities.
“The concepts of community and neighborhood are core to our values,” said Lyle.
As a result, Roam N Stop always makes it a point to collaborate with and contribute to local charities and nonprofits.
“We partnered with a local charity here in Vegas. It’s called Angels of Las Vegas, and it helps families who have critical illness or any type of need,” noted VanApeldorn. “We donate time to their kitchen where they put together boxes to give food to families that are in need or to individuals who are struggling.”
When Roam N Stop was remodeling its stores, the
company also donated some of its old equipment to the charity.
“We are getting involved in a lot more of the charities that the community needs,” she added. “It’s very important to us.”
In general, the Roam N Stop team wants its convenience stores to be pillars of the community. Every innovation the chain is making is not only for the sake of innovation, but also for the sake of the community.
VanApeldorn noted she wants Roam N Stop to meet needs at all spectrums for its clientele. To that end, Roam N Stop has a multitude of innovations in the pipeline. Many of those additions, while they cannot be specified now, are going to be technology focused.
“It’s a really great opportunity, I think, for us as an organization to be participating in the community, just in another meaningful way, not just as a business, but as an employer and as a participant in the community directly,” said Lyle. “So that’s really part of our core. We like doing that.”
As inflation continues, consumers are finding new ways to save money while shopping, from selecting less expensive items to cutting back on impulse purchases.
In 84.51°'s April Consumer Digest, consumers reported how long they believe inflation will last.
Source: 84.51°'s April Consumer Digest
How long do customers expect inflation at recent high levels to last?
When eating out, more consumers are finding deals or using loyalty programs. Circana also noted:
• Customer visits to restaurants and retail foodservice outlets that took advantage of a deal rose by 8% in the quarter ending in March compared to a year ago.
• Buy-some-get-some and coupon deals were among the most popular deal types, growing 13% and 18%, respectively, compared to a year ago.
• Discounted price deals increased by 8%, and daily specials by 6%.
• Breakfast and a.m. snack periods are the most popular dayparts for loyalty points and reward redemption.
Source: Circana, May 2023
According to Circana, at-home food prices increased by 7.1%. However, consumers are finding cheaper ways to buy food. Circana also stated that:
49% of consumers say they shop at food stores that offer lower prices.
42% report they buy more store-brand/private-label food and beverages.
41% said they buy essential items only and forego impulse purchases.
Source: Circana, May 2023
Inflation has caused many consumers to change their shopping behavior and trade down when buying necessities including:
88% of Gen Z
88% of Millennials
82% of Gen X
Consumers are most frequently making changes in shopping behavior by altering the quantity or pack size of what they purchase or switching to items with lower costs.
Source: McKinsey & Co.’s April Consumer Impulse Survey
Based on a survey from Crestline, the states most obsessed with finding deals include:
65.5% Mississippi
65.0% Alabama
64.9% Indiana
64.3% Iowa
63.8% Louisiana
Source: Crestline, June 2023
Shop Rite and Tobacco Plus Group rebuilds and remodels stores while elevating the customer experience with its proprietary foodservice, loyalty program and a focus on technology.
Erin Del Conte • Editor-in-Chief
With a nearly 60-year history, Shop Rite and Tobacco Plus Group, the largest independent c-store chain in Louisiana, is drawing customers with its proprietary Bourbon Street Deli that serves up regional specialties, its Beaucoup Rewards program and mobile app, and its private-label snack line that’s created in the company’s own commissary.
As Shop Rite builds new sites and updates stores damaged by hurricanes, it’s now upgrading to a more modern look that features a new Louisiana Roots logo on the store exteriors. The family-owned chain is also testing in-app ordering, mobile payment, bean-to-cup coffee and third-party delivery.
Shop Rite began in 1966 when Founder John Dan Gielen opened his first c-store in Crowley, La. — “Shop Rite #1” — a site that’s still in operation today.
“He had a vision to build a business and serve the community in the process. That’s been the foundation of the company since the inception. We’re very community oriented,” said Mike Donahue, executive vice president of Shop Rite, who is pictured on p. 20.
Louisiana values food, family and faith, and those values are embedded in the Shop Rite business, Donahue noted.
As Gielen grew the Shop Rite brand through acquisitions and new builds, his brother, L.J. Gielen, and his cousin, Peter John Saab, joined him in the business, making it a true family venture.
In 1992, Gielen saw an opportunity to develop a cstore concept with a tobacco and alcohol presence in Louisiana.
“That concept didn’t exist here,” Donahue said. “Louisiana’s a little bit different. We don’t have state stores here, so we are allowed to sell higher alcohol content products in our stores.”
Gielen called the new concept Tobacco Plus and began building it along with the Shop Rite brand.
“They’re two different business models,” Donahue explained.
Shop Rite offers a conventional c-store model with fuel and convenience items.
“Tobacco Plus, we call it a convenience store on steroids,” he said.
Tobacco Plus features a large tobacco presence and a robust wine and liquor section, but it also features traditional c-store items such as candy, snacks and a fountain program. All but two locations have fuel.
In 2001, Gielen purchased Church Point Wholesale, which serves as a wholesaler to grocery and convenience stores in three states.
Two years later, Gielen hired Donahue as a consultant to evaluate how to take the Church Point Wholesale operations to the next level. Donahue, a graduate of West Point, brought a background in logistics, warehousing, transportation and distribution to the task.
Near the end of 2005, Gielen bought out the ownership of Shop Rite and Tobacco Plus from his brother L.J.
“At that time, he asked me to come over to the retail side and help him run the company (as CEO),” Donahue said.
Gielen’s grandson John “Cody” Gielen joined the business in mid 2009, and Gielen began preparing him to one day take the reins. Gielen’s daughters are silent owners in the business.
When Gielen passed away in 2018, Cody took the helm as chairman, president and CEO. Donahue stepped into the role of executive vice president, where he oversees the operations of the companies.
Today, the company operates 60 convenience stores: 36 Shop Rite sites and 24 Tobacco Plus locations in Louisiana.
The company also operates a number of affiliated businesses, including Trinity Graphx, a sign company that handles internal signage, embroidery for company uniforms and vehicle wraps for the wholesale business; Ambassador Wine and Spirits, a wine and liquor store; two Black Gold Casinos, a video poker casino brand; and a commissary that supplies proprietary foods to the delis and grab-and-go food and snack items to stores.
The company also operates two truck stops. Jennings Travel Center is located in Jennings, La. The
We look forward to seeing you at the show.
locals refer to the site as “Bourbon Street” because it features a full Bourbon Street Café restaurant. The site is a mixture of Tobacco Plus and Shop Rite and features both logos on the exterior.
“We have our big tobacco presence there, as well as our liquor presence. It also has one of our video poker casinos, branded Black Gold Casino,” Donahue said.
The second truck stop is located in Duson, La. It’s similar to the Jennings location and also includes a video poker casino. The company’s commissary is located on the Duson truck stop property. Additionally, this location operates company-owned Rascal’s Cajun Restaurant.
Church Point Wholesale offers a novelty division, which allows Shop Rite to offer Louisiana-specific novelty merchandise geared toward travelers in its truck stops and larger locations. One of Shop Rite’s c-stores also features gaming.
Initially the Shop Rite and Tobacco Plus stores operated as separate businesses, but in the last 10 years, as the company has begun to build larger stores, it has started co-locating the two brands in some instances.
“We have one location in New Iberia, La., that was a Tobacco Plus, and we took that to the ground about 12 years ago and built a much larger facility and co-branded that location (with Shop Rite),” Donahue said. “It originally did not have fuel or food,
so we added those at that point in time and added a drive-through.”
About eight sites today feature both brands.
With over 50 years in the market, the chain’s stores range in size from island marketers to sites that are more than 8,000 square feet.
Being in Louisiana, Shop Rite is no stranger to the havoc hurricane season can bring.
It’s currently in the process of remodeling or rebuilding a number of stores, some of which were affected by hurricanes. As a silver lining, the damage caused by hurricanes offers an opportunity to redesign stores and upgrade them to incorporate modern features. Donahue estimated that the chain has recently finished six remodels in the past 24 months.
Last year, the company completely rebuilt its Lake Charles, La., site after it was badly damaged by Hurricane Laura in 2020. When the store reopened in November 2022, it featured an updated design and a modern look with high ceilings.
“I think if you drove up, the only reason you would know it might be a convenience store is because we have a large fuel operation in front of it,” Donahue said of the location.
The company experienced three hurricanes between 2021 and 2022 that have delayed construction and have also added more remodels to the docket. In 2021, Hurricane Ida damaged two stores in the southern part of Louisiana that are currently in the process of being rebuilt.
The chain is also rebuilding due to hurricanes in the Houma, La., area, where out of about 12 locations, all but one was either partially or severely impacted by the storms.
Bourbon Street Deli features wraps, as well as burgers, sandwiches, breakfast offerings and much more. It’s known for its Cajun flavors and regional specialty foods.
“As we go through those stores, we’re upgrading the look,” Donahue said. “We’ve been busy remodeling, rebuilding. We also have stores on the books in other locations that we’re getting ready to add.”
As stores are upgraded, they’re receiving a makeover with a more neutral color pallet and more wood features throughout. Stores that don’t have foodservice are gaining space for food. And all newly built sites will feature full-service deli operations. All newly designed stores feature drivethroughs. Shop Rite has offered drive-throughs for about 12 years, and today it adds drive-throughs to stores whenever it can.
At newly designed sites, Shop Rite selects something unique to the community and showcases it in the interior design. For example, a store in Opelousas, La., a town known for its sweet potato farming heritage, features images of sweet potatoes on the walls. Its New Iberia store showcases sugar cane imagery, while Lake Charles highlights shrimping. Portraits of well-known individuals from a given town are also featured.
Store exteriors are also receiving a facelift. New stores include wood, metal and brick materials on the exterior, with a neutral color scheme that draws the eye to the signage as the main feature. The chain has debuted a new trademarked Louisiana Roots logo and signage.
“We’re using that on the outside of the store as a common factor between all of our stores, since we have so many different shapes and sizes,” Donahue said.
The chain is also in the process of evaluating a potential new brand image for the Shop Rite logo. In the forecourt, Shop Rite/Tobacco Plus partners with Chevron, Exxon and Conoco, and it also features its own gas brand called Gator Gas.
For now, the chain is watching electric vehicle (EV) charging to see how it unfolds.
“We’re in a little bit different situation in Louisiana,” Donahue said. “We don’t feel pressed at this point in time to add EV charging stations. I think there’s still a lot more evolution coming in the charging business as well as the electric vehicle’s internal charging systems. There’s a lot of change coming, and we have plans to be ready when the time is right.”
Shop Rite is known for its proprietary Bourbon Street Deli foodservice program. The chain operates 28 Bourbon Street Delis, which range in size.
“We have two that are attached to the c-store, and we also have the two full-service restaurants (located at our truck stops), but the rest of them are located inside the stores,” Donahue said.
“The food here in Louisiana is amazing. You have to be really good to survive (as a restaurant) in Louisiana,” Donahue said. “Our food is southwest Louisiana food, which is Cajun food, and it’s a little bit different than the Creole food you will find in New Orleans. Obviously, spices are important, but everything we sell is geared towards the people of this part of the state.”
The menu features burgers, sandwiches, wraps, breakfast offerings and more. Bourbon Street Deli’s best-selling meals include an overstuffed shrimp po’boy. The large Catholic population in Louisiana flocks to the convenience store for the offering during the Lenten season.
Bourbon Street Deli makes its own boudin, a regional specialty made by stuffing pork casings with meat, rice and seasonings. It also features boudin balls, which is boudin formed into balls, then coated and fried until golden brown.
It also offers cracklin’ — a Louisiana specialty that’s
made by taking the fat, skin and crumbs left over after cooking chicken or pork and frying them with seasonings.
“We do something here that’s kind of like a calzone. It’s called a stuffed bread,” Donahue said. “It’s the size of a hamburger bun, but it’s one piece, and it’s stuffed and it’s baked. We have a breakfaststuffed bread. We have an Italian-stuffed bread that really tastes like a pizza. We have a Cajun-stuffed bread that has pork meat and spices in it.”
About six of the delis feature made-to-order kiosks where customers can customize their orders to their preferences. Shop Rite has offered order ahead and pickup in-store since long before the COVID-19 pandemic arrived, and now it’s branching into delivery through third-party services like Uber Eats and ASAP.
Shop Rite’s newest location features bean-tocup coffee machines. The chain is evaluating the offering before deciding whether to introduce it to additional locations.
The company’s commissary delivers a proprietary grab-and-go food brand called Rascals to the stores, as well as items that are prepared and sold through the Bourbon Street Deli. The grab-and-go items include salads, fruit cups, sandwiches, wraps, meals to go and desserts. The aforementioned
boudin balls and pork and chicken cracklin’ are among items produced in the commissary and prepared in the deli.
Through the commissary, Shop Rite also produces its own private-label pork rinds and beef jerky lines under the Rascal’s brand and offers several flavors of each.
Shop Rite features a mobile app called Beaucoup Rewards, which is also the name of its loyalty program. In addition to hosting the loyalty program, the app also helps customers find the Shop Rite location that is closest to them, and it offers them in-store deals.
The chain is currently testing mobile ordering and payment through the app, and so far customers can order from the Bourbon Street Deli menu via the app at one store.
Through the Beaucoup Rewards loyalty program customers gain points from in-store purchases, which they can redeem at the pump. For example, customers save 10 cents per gallon every time they accumulate 250 “Gator Bites” or points.
“We give two points per dollar on tobacco and alcohol and then 10 points per dollar for other products in the store,” explained Carter Ledbetter Prejean, marketing director for Shop Rite and Tobacco Plus.
The points are stackable, so the more customers spend, the more they save. Customers who reach 500 Gator Bites get 20 cents off per gallon, and those who reach 750 get 30 cents off per gallon, Prejean noted.
Shop Rite ensures it continues to evaluate technological advancements that might enhance its stores. Currently, it’s working with a third party to develop a frictionless checkout program.
Looking ahead, Shop Rite plans to expand its foodservice offerings, work to drive efficiencies through technology and continue to improve the customer experience, all while persisting in growing its footprint.
“Customer service has really been the foundation of our business,” Donahue said. “John Dan has built that into the culture of the company from the get-go.”
The company also gives back to the communities it serves. Shop Rite and Tobacco Plus Group fundraises for St. Jude Children’s Research Hospital annually and has raised over $2.3 million for the organization since 2000.
As it plans for the future, Shop Rite is focused on building one store a year over the next three to five years, while continuing to revamp stores damaged by hurricanes.
Ownership’s vision for the company is to continue to maintain Shop Rite and Tobacco Plus’ identity, uniqueness and its customer relationships and build on that foundation.
When it comes to navigating a family-owned, independent mid-sized regional chain, the competition can be fierce.
“When you don’t have the purchasing volume that some of the national chains have, you have to find other ways to compete,” Donahue said.
But relationships can make the difference.
“We’re going to focus on keeping those relationships with our customers and being known as friendly places to shop,” he said. “I believe that can help separate you from the larger competitors.”
The chain also plans to continue to work on technology to maintain an advantage in the market.
“One of the things about being a smaller company is you can turn on a dime quicker when you want to change things,” he said.
Focusing on maintaining a strong company culture can also give independent convenience store chains an edge.
“We’ve invested in people, and we have a very strong management team with a lot of varied experience in every facet of the business from fuel to food to operations,” Donahue added. “We believe in servant leadership and to do everything we can to make the people that we’re responsible for successful.”
“It’s unusual to see family-owned businesses in this industry. They’re getting swallowed up left and right, but it’s not impossible to compete with major chains,” Donahue said. “It’s not easy, but I think if you find your niche and you focus, especially on the customer service side of life, you can be successful.” CSD
The smokeless tobacco/oral nicotine subcategory remains a strong performer for c-stores, but signs indicate state lawmakers look to regulate it further.
Anne Baye Ericksen • Contributing Editor
Almost three quarters into 2023 and the smokeless tobacco category continues to post profits for convenience stores and other retailers. The strong market presence of nicotine pouches keeps that region of the backbar busier than ever.
Nicotine pouch sales continue to grow for c-store retailers.
According to NielsenIQ data, reported by Goldman Sachs, ZYN recorded increases in year-over-year unit volume of more than 40% for the 52 weeks ending July 29. While that’s an impressive performance, two-, four- and 12-week activity showed even better results: 47.5%, 47.7% and 48.8%, respectively. On! topped that with a 52-week unit volume gain of 69.1% and peaked at 70.1% for the four-week comparison. Newcomer Rogue registered 30%-plus gains in unit volume for each period. Conversely, snuff and snus registered mixed
results, with a number of brands seeing volume declines. Longhorn, Starr and Navy pulled out positives for most of the periods measured.
“Our nicotine pouches are growing — ZYN is doing extremely well, while Rogue is doing okay,” said Peter Tamburro, general manager of Clifford Fuel in Utica, N.Y., operator of 20 Cliff’s Local Markets.
Most nicotine pouches post impressive dollar and unit sales during Q1 and Q2.
While c-stores certainly value the sales pouches produce, category managers realize regulations can turn that tide. State legislatures in the most recent session introduced, or reintroduced, a variety of bills to ban flavors, including menthol. According to the Consumer Advocates for Smoke-free Alternatives Association (CASAA), most bills did not progress to a full vote in state houses or senates.
“Starting Sept. 1, there is a new excise tax on cigarettes and little cigars in New York, an increase of $1 per pack. Our concern is that the state will figure out it hasn’t been taxing smokeless like it has vape, and they will do the same thing to pouches, which are, after all, a nicotine delivery system,” said Tamburro.
“In recent years, we have seen state legislatures identify nicotine pouches as their own categories, particularly for nicotine pouches that do not contain tobacco or which contain non-tobacco nicotine,” said Agustin Rodriguez, partner at Troutman Pepper, a law firm that advises manufacturers, distributors, retailers, suppliers and others on tobacco regulatory matters.
This year, Louisiana passed a new law imposing age-verification, delivery sale and brand certification requirements on alternative nicotine products, Rodriguez pointed out.
“It gets a little tricky because some states have
just expanded ‘smokeless tobacco’ or ‘snuff’ to include white pouches,” added Alex Clark, CASAA’s CEO. “The key language to look for will be anything with ‘alternative nicotine product,’ which has become a catch-all for non-tobacco nicotine products.”
Clark also pointed out that at least one state has taken a friendlier stance. “Tennessee passed a bill (SB 143) in April that exempts ‘smokeless nicotine products’ (white pouches) from the state's tobacco wholesale tax and cigarette tax.”
Then there’s the likelihood of new federal regulations, such as a national ban on menthol, which
Many tobacco users are already looking for alternatives. They want real tobacco satisfaction from a premium product. General Snus delivers on all of the above—and it’s the first to receive a Modified Risk Tobacco Product Order.
most likely would affect revenue from traditional moist snuff and snus. Also, Clark and Rodriguez cited recent statements from the Food and Drug Administration (FDA) as a signal the agency has a growing focus on products.
“FDA recently has taken a strangely harsh stance toward innovative tobacco products in the vapor segment, and I worry that the agency will treat nicotine pouches similarly harshly by, for example, requiring manufacturers to meet scientific standards that are either ridiculously expensive or simply impossible to satisfy,” said Rodriguez. “Basically, the agency now will refuse to approve any flavored variant that cannot show that it has a greater chance of promoting ‘complete switching or significant cigarette reduction compared to tobacco-flavored products.’ It’s imposed this seemingly impossible standard because it’s been criticized by certain health advocates for not doing enough to stop youth addiction to vaping.”
Last year’s National Youth Tobacco Survey concluded more than a quarter of high and middle school students used e-cigarettes daily. The
• On! posted a 52-week volume gain of 69%, ending July 29, per NielsenIQ.
• Tennessee exempts smokeless nicotine products from the state’s tobacco wholesale and cigarette taxes.
• Less than 2% of youth use nicotine pouches or smokeless tobacco products.
research also indicated less than 2% of students use either nicotine pouches or smokeless tobacco products.
“We've already seen attempts at creating a moral panic around nicotine pouches, but youth use of these products remains low,” said Clark. “Our concerns are mostly around the indelicate way in which legislatures propose to regulate tobacco and nicotine without regard for the continuum of risk.” CSD
Alcoholic beverages are convenience store staples, with readyto-drink cocktails leading the charge.
Emily Boes • Senior EditorThe last few years have shown a saturation of innovation and emerging brands in the alcoholic beverage category. The popularity of non-alcoholic beers and cocktails has been steadily rising, and growth in the ready-to-drink (RTD) cocktail segment has yet to taper off. Additionally, beer remains a stable seller for c-stores.
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Whereas beer and spirits dollar sales increased by 4.9% and 16.3% respectively, wine dollar sales dipped by 0.9%. Case sales for beer and wine dropped, but spirits case sales jumped by 25.2%.
“Hard seltzer has gone through a shakeout over the past 18 months, with signs that the category is beginning to stabilize,” said Brian Sudano, managing partner for Beverage Marketing Corp. “The strength of low-carb/low-calorie offerings in beer, along with spirit- and malt-based seltzers, continues to be on track with consumer trends.”
For the 52 weeks ending June 18, beer at convenience stores has seen a 4.9% increase in dollar sales to reach $25 billion and only a 2% decline in
case sales, despite a 7% price per case jump, according to Circana, a market research firm.
Beer-centric seltzers, however, dipped by 8.7% in dollar sales and 12.9% in case sales for the same period. Flavored malt beverages are trending opposite of this with a 20.9% rise in dollar sales and 12.9% uptick in case sales.
“RTD cocktails continue to lead growth in the adult beverage market, with seltzers beginning to show some life, primarily in spirits, but also improving in malt-based (beverages),“ said Sudano.
TravelCenters of America (TA), which operates over 270 locations in 40-plus states, is seeing this consumer shift to canned cocktails, as well as fullflavored malt beverages, although it’s also noticing the pendulum budge further away from seltzers.
At Tiger Fuel Co.’s The Market, which has nine locations in Virginia, seltzers have also “fallen back the past year,” but Nick Rogers, the chain’s retail merchandising manager, recommended making sure White Claw is still readily available to customers.
Sudano has seen hard tea and vodka-based RTDs attract attention in the category.
Although no one particular flavor stands out among adult beverages at TA, “there are various flavors the entire industry gathers around at certain times (i.e Watermelon, Mango, Passion Fruit),” said Adam Chonko, senior category manager — alcohol, tobacco, beverages, store food and sunglasses at TA.
At The Market, “the (alcoholic beverage) category continues to grow overall even with the
Beer dollar sales increased 4.9% at c-stores for the 52 weeks ending June 18 and dipped 2% in case sales.
continued rising costs. Ciders and other flavored beverages are on the rise, and singles are doing really well,” according to Rogers.
Rogers said he believes inflation has impacted how customers shop, and because beer singles have seen huge growth, The Market is looking for opportunities to expand in this area.
For beer, Michelob Ultra sales have picked up at The Market, and Modelo, Corona and Twisted Tea are top sellers.
The chain has not seen much success with nonalcoholic beer, however.
TA’s Chonko, conversely, has noticed a rise in the non-alcoholic segment, particularly in those under age 30.
New brands are appearing within non-alcoholic mocktails and beer, according to Sudano, but the segment is still relatively small in comparison to other areas.
In fact, “mocktail variety packs are showing life,” Sudano said, “but (variety packs) overall are no longer driving the alcoholic beverage market.”
At c-stores in general, non-alcoholic beer dollar sales have bumped up by 22.5%, with case sales increasing by 12.9%. These increases are in spite of an 8.6% uptick in price per unit.
• Beer dollar sales increased 4.9% at c-stores for the 52 weeks ending June 18 and dipped 2% in case sales, per Circana.
• Ready-to-drink (RTD) cocktails are top sellers, with vodka-based RTDs specifically growing in popularity.
• Wine sales trend down; however, canned wine shows potential.
Whereas the demand for RTD cocktails is strong, and beer remains a critical segment, wine has a softer presence in the c-store space.
The segment remained flat (-0.9%) in dollar sales for the 52 weeks ending June 18 at c-stores, while dropping by 5% in case sales with a 4.4% rise in price per case, per Circana.
Specifically, non-alcoholic wines fell by 9.2% in case sales, and sparkling wine case sales decreased by 7.7%.
Wine-centric seltzers plummeted by 44.8% in case sales for the same period at c-stores.
“We do sell some wine, but the best-selling items in this category for us are BuzzBallz, Fireball and Stroyski products,” said Rogers. “I think we need to expand our tetra pack and canned wine selections to capture the on-the-go customer similar to single beer.”
At TA, while there is interest in canned wine, canned cocktails outperform them. CSD
Salty snack sales are on the rise at c-stores, and healthy snack options are a top motivator for snack purchases.
Emily Boes • Senior Editor
Snacking is an American pastime; whether snacks are shared among family and friends or eaten solo, served as a filler in between meals, or are purchased impulsively, snacks are an everyday part of most people’s lives.
Our Bavarian Pretzel Bites are on track to be one of the most profitable products for menus everywhere. A delightful taste, these bites have the versatility to fit on any menu and be served in every daypart. Oh, and they’re good at making customers smile.
So it’s no surprise that snack sales at c-stores continue to climb, driven by the salty snack segment. As health consciousness continues to grow as a trend, some c-stores are adding healthier snack options to meet increased customer demand.
“The demand for healthier snacks is very strong across all categories. We saw exponential growth last year and expect the category to continue its growth in the future,” said Mike Gilligan, owner of Gilligan’s Retail, which operates 12 stores in Arizona and Montana. “The categories we see customers trending toward for a healthier option are salty snacks and grab-and-go cold food.”
The healthy segment is showing steady growth at Gilligan’s even despite inflation. “Price-conscious customers are looking to spend their money on a snack that is good for them and has substance to maintain them between meals throughout the day,” he added.
Englefield Inc.’s Duchess’ 120 locations in West Virginia and Ohio are also seeing a number of customers looking for healthier snacks.
“We continue to see demand for the classic snacks, but a segment of consumers are looking for something that follows a diet trend. For instance, keto, paleo and low sodium or sugar,” said Nathan Arnold, director of marketing at Englefield Inc.
At FriendShip Stores, which operates 31 loca-
tions in Ohio, some customers are coming to favor healthier snacks too. Products that are gluten free, high protein, low sugar or with better-for-you ingredients are gaining traction.
With salty snacks, the better-for-you trend is leading the growth of the segment at Gilligan’s.
“Customers are looking for healthier, no-sugar or low-sodium salty snacks,” said Gilligan. “We are seeing more and more products labeling themselves as added protein, plant based and gluten free. Customers are more health conscious and want a snack that aligns with their diets.”
Salty snack dollar sales rose by 18.6% at convenience stores for the 52 weeks ending June 18, according to the market research firm Circana. Unit sales also ticked up in sales by 3.2%, despite a 14.9% jump in price per unit.
At FriendShip, spicy is trending with salty snacks, as well as new flavors.
“We are noticing popularity in items with heat/ spice,” said Natalie Goldsmith, category manager at FriendShip Stores. “Consumers like flavor, so any new flavor sells well, as people want to give it a try. Some items are also bringing citrus/fruit flavors with heat/spice. For example, Doritos Pineapple Habanero.”
Salty snacks rose in dollar sales by 18.6%, with the corn snack segment leading at 24.3%. The salty snack category’s price per unit rose by 14.9%, and unit sales still increased by 3.2%.
Along with FriendShip, Duchess is showing salty snack purchases leaning toward hot and spicy flavors. “We also see unique flavor combinations being trendy right now,” added Arnold.
Gilligan’s, too, is noticing its customers searching for new flavors and designs. Innovations and limited-time offers are chief snack drivers.
Due to inflation, however, manufacturers are decreasing pack sizes, according to Gilligan.
• Salty snack dollar sales rose by 18.6% at convenience stores for the 52 weeks ending June 18, per Circana.
• Healthy snacks are in demand as customers try to find options that align with their diets.
• Hot and spicy flavors, as well as new flavors, are appealing to customers.
Although family-sized packs are also showing growth “as it offers a better price point for its size,” he continued.
At FriendShip, on the other hand, the singleserving size is gaining traction, since it’s easy to grab and go, has many options to choose from and still has a manageable price point.
Both private-label purchases and the singleserving size are strong for Duchess as well.
“While during COVID the family or share sizes became instantly popular, we are seeing most customers choosing an individual size,” said Arnold.
It seems that outside factors, though they may alter certain preferences, aren’t diminishing category sales for either salty or healthy snacks.
“Salty and healthy snacks continue to remain strong and a core part of our business. While units on individual subcategories may be waning, overall, the category remains strong,” Arnold said.
The same holds true for FriendShip. “Items that are quick grab-and-go options for consumers are in demand and sell,” Goldsmith said. “Whether it is a snack for work, school, sports, etc. The salty and healthy snack (segments) in convenience have options for everyone.” CSD
“The fountain remains the king of cold and frozen beverages,” said Jamie King, vice president of deli and food operations for Pilot Travel Centers based in Knoxville, Tenn. “Our guests love the variety available at our travel centers’ soda fountains.”
Pilot’s dispensed beverage offering also includes raspberry tea, root beer and frozen coffee. Smoothies and juices are also popular purchases.
Pilot values innovation, King continued, especially when it comes to creating food and beverage choices for guests.
“There has been tremendous expansion into frozen offerings, including coffee and functional beverages. Guests can enjoy our French vanilla frozen coffee, mocha frozen coffee and a flavorful range of ICEE flavors,” he said.
Overall, iced coffee remains a top choice among c-store consumers.
“Our guests can make each cup uniquely theirs by combining our refreshingly smooth cold brew with their choice of add-ins from the wide variety of seasonal creams and flavors offered at our travel centers’ coffee stations,” said King.
Along with beverage customization, consumers focus on freshness. To ensure freshness, Pilot uses beanto-cup machines, which allows guests to brew their own cup on the spot, and also brews coffee through traditional drip machines fresh every hour.
Options include cold brew, iced coffee, specialty cappuccinos and custom-created blends.
“Our in-house innovation team brings decades of culinary experience into each hand-crafted recipe,” King noted.
Each new item goes through multiple rounds of research, taste testing, focus groups and sourcing to produce the best possible option for guests.
To pump up sales, Pilot focuses on consistency while providing a clean and friendly environment.
Innovation, from new equipment to unique drink offerings, is helping c-stores elevate their cold and frozen dispensed beverage programs.
Flavor innovations, new equipment and variety are all driving c-store customers to the dispensed beverage section.
Howard Riell • Contributing Editor
To ensure freshness, Pilot uses bean-to-cup machines, which allows customers to brew their own cup on the spot, whether it’s cold brew, iced coffee, specialty cappuccinos or custom-created blends.
At Yatco, based in Marlborough, Mass., fountain soda, f’real and slush programs are all selling well.
“This time of year, with the warmer weather and more people on the road, beverage sales in general increase,” said Hussein Yatim, vice president of Yatco, which operates 13 stores in Massachusetts, Rhode Island and Connecticut.
Key to fueling greater sales, Yatim added, is investing in a wide variety of offerings in the category. “That way, when a customer walks into the store, they are drawn to an extensive beverage area that is attractive to the consumer,” he said.
Yatco recently added Smoodi machines in some of its locations. The units offer a healthy, self-serve, selfcleaning, self-sanitizing, blended-to-order product with no added sugar and all-natural ingredients.
“Customer preferences vary,” said Yatim, “but we believe the key to a successful dispensed beverage program is testing exciting new and trendy beverage varieties to attract customers’ attention to the category. We believe that customers are looking for new and healthier options.”
Yatim said he has found that food offerings can serve as a big driver to a convenience store’s dispensed beverage programs.
“As customers come in for food, being able to run programs that couple-in a dispensed beverage adds sales to the category,” he said. “Also, offering ample amounts of flavors and drink options adds sales.”
• Freshness and variety are key motivators for consumers when choosing to purchase a dispensed beverage.
• Healthy options, such as teas or drinks with all-natural ingredients, can appeal to convenience store consumers.
• C-store retailers should continuously research new dispensed beverage equipment entering the market.
Allison Engroff, buyer — snack avenue/food services for the Army & Air Force Exchange Service (AAFES), said that Express convenience stores’ top two frozen dispensed beverages are uncarbonated Jolly Rancher Cherry and Blue Raspberry.
“Jolly Rancher is a known brand, which resonates with shoppers. The Exchange has also seen growth in the iced coffee and cold brew segments,” she said.
Express stores have introduced frozen coffee and frozen Hershey beverages. There are plans to add PURE Craft Beverages, including Blackberry Lemonade, Grape Elderberry Juice, Raspberry Hibiscus Tea and Pineapple Papaya. The Exchange is seeing growth in non-carbonated dispensed beverages, according to Engroff.
“We are focusing on rotating flavors and keeping barrels full,” she continued.
Management is working on introducing bubbler dispensing machines into some of the system’s larger locations, with healthier, more natural options including teas, lemonades and juices.
“The advantage of bubblers is that the PURE Craft Beverages products being introduced can be used in both bubblers and non-carbonated frozen machines,” she said.
The other new equipment being added is the nitro cold-brew coffee machine, as younger shoppers tend to enjoy specialty coffee drinks and place more importance on quality, Engroff noted.
“Convenience stores can build sales by staying in touch with the evolving market, whether it be new equipment or new flavor profiles,” she said. “Summer promotions are a great way to drive customers into stores.” CSD
Owned by a cooperative of proud American farmers using the best U.S.-grown tobacco blends among their competitors, Premier provides high-quality, value-priced cigarette brands for the adult consumer. C-stores across the country are buying in.
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like loaded french fries, Conaghan said. BaskinRobbins introduced a mango with chili Mangonada slushy, bringing some heat into the dessert beverage category.
Hispanic foods are “in high demand” and one of the fastest-growing foodservice categories at Rutter’s convenience stores, according to Chad White, foodservice category manager for the chain, which has 85 locations in Pennsylvania, Maryland and West Virginia. He noted that a recent Taco Tuesday promotion (buy one, get one free) that began as a limited-time offer (LTO) has been so “wildly popular” that it is set to remain on the menu for the foreseeable future.
In addition to seven varieties of Ultimate Tacos with a choice of taco meat, shrimp, pork or chick-
en, as well as build-your-own options, Rutter’s offers tornados, quesadillas, empanadas, burritos and a “walking taco.” The walking taco is a portable meal or snack comprised of taco meat and jalapeños topping Cool Ranch Doritos served in the chips’ bag. The company is also planning to roll out a Monterey Jack chicken roller bite.
Most of the items are made to order with tornados and roller bites available for grab and go. In stores that have the equipment, these two items are deep fried. If no fryer is available, they are prepared on the roller grill.
While lunch is the busiest time for Hispanic foods, Rutter’s has worked with an Australian company to expand its morning offerings with a Southwest Travelers breakfast pastry filled with egg, three bean mix and spicy salsa topped with a creamy cheese sauce, White noted.
Rutter’s offers seven varieties of Ultimate Tacos with a choice of taco meat, shrimp, pork or chicken, as well as build-your-own options.
He suggested that retailers planning to add Hispanic foods to their menus have a choice of preparing the items from scratch themselves or purchasing high-quality finished goods. Rutter’s has chosen to offer a combination of the two to allow for customization or grab-and-go convenience.
Over the past few years, spicy foods, particularly items made with jalapeños, have become increasingly popular, especially among collegeage and rural customers at Nittany Oil/MinitMart convenience stores based in State College, Pa., reported Angela Gearhart, the 28-unit Keystone State chain’s foodservice category manager. The stores’ menus include hard- or soft-shell tacos, nachos, nachos grande and taco salad.
A unique item MinitMart features is a taco pizza, a regular pizza crust topped with taco meat, crushed taco shells, salsa, sour cream, lettuce, tomato and onions. This fusion item has been a popular selection since it was introduced about a year ago, Gearhart stated. She added that the company is looking into additional Hispanic specialties such as enchiladas.
She advised retailers to try adding Hispanic foods to their menus, whether as LTOs or permanent items.
“Our sales prove that they’re well worth the time and effort it takes to add them to their foodservice mix,” she said. CSD
• Younger consumers are favoring Hispanic foods.
• C-stores are showing menu creativity through fusion.
• Combining scratch and finished goods can help c-store retailers grow their menu.
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With coffee always in demand, retailers are finding new ways to increase their coffee sales while keeping up with new coffee trends.
Zhane Isom • Associate EditorCoffee remains a hot commodity in convenience stores. Whether they’re buying a regular hot coffee, opting for their favorite seasonal flavor or selecting a cold-brew option, customers want their brew fresh, and they want it fast.
To keep coffee sales rising, c-store retailers are finding new ways to update their coffee segments to keep customers coming back for more. Here are five tactics c-stores are using to improve their coffee offerings.
when a coffee to go becomes an experience that stays.
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ADDING/UPGRADING
Bean-to-cup dispensers allow consumers to access freshly brewed coffee in minutes while freeing up time for c-store employees during busy hours. With the demand for coffee continuing to rise, more retailers are either adding bean-to-cup dispensers in their stores or upgrading the dispensers they already have.
GetGo, which operates over 260 locations in western Pennsylvania, Ohio, northern West Virginia, Maryland and Indiana, recently upgraded its bean-to-cup dispensers at all of its self-service beverage areas.
"The new bean-to-cup dispensers make freshly brewed hot or iced coffee in less than a minute," said Brandon Daniels, public relations manager for GetGo. "All the customer has to do is choose a couple of preferences on the touchscreen, and the machine does the rest of the work."
Freshness is one of the main factors customers look for when deciding whether to buy a cup of coffee from a c-store. Adding bean-to-cup dispensers ensures consumers receive fresh coffee every time.
INCLUDING COLD-BREW COFFEE
During the summer, retailers notice a rise in customers wanting more cold coffee options. To keep up with this interest, more c-stores are adding cold-brew coffee products.
GetGo has seen an uptick in coffee sales since adding nitro and cold-brew coffee to its stores.
"We decided to add these products because we started to see a rise in customers' interest in cold brew," said Daniels.
Cliff's Local Market also provides customers with different cold-brew coffee options to choose from, which has helped boost overall coffee sales for the c-store chain.
"As soon as Memorial Day hits, we tend to see a large uptick in cold-brew purchases. For all stores that have the space to offer cold brew, they carry a premium black cold brew, and then either a saltedcaramel or French vanilla-flavored cold brew," said Derek Thurston, director of foodservice operations for Cliff's, which has 20 c-stores in New York. "We keep flavor shots near the cold-brew dispensers, so customers can enhance their cold brew if they like."
Lubbock, Texas-based Curby’s Express Market has seen declining interest in hot coffee drinks.
“We focus on iced and frozen coffee drinks, along with our made-to-order energy drinks,” said Tony Sparks, head of customer wow for Curby's.
3.
With inflation continuing to drive prices higher across categories, consumers are increasingly looking for deals or promotions. When retailers pair their coffee with a breakfast sandwich or offer deals on coffee alone, they gain even more traction toward their coffee offering.
"We offer a combo deal where we offer any breakfast sandwich with a medium coffee for $4.49. This bundling is attractive to our customers and provides a value incentive to continue to return more frequently," said Thurston.
In April, for a limited time, GetGo offered customers a free self-serve coffee on Mondays when they used their Advantage card.
"After we started the Free Coffee Monday promotion, we introduced Summer Coffee Fridays," said Daniels. "On Fridays, all nitro and cold-brew products are 99 cents, and made-to-order coffee is $1.99."
Sparks also noted that Curby's offers customers a free any-sized hot coffee in September and October with no purchase necessary.
Along with promotions, c-store retailers are starting to send coupons to their customers, encouraging them to come in and buy coffee to help improve coffee sales.
"Additionally, we send out monthly coupons to our email subscriber base. We offer a 49-cent medium coffee or a $1.49 any size cold brew every month," said Thurston. "We will also do physical mailers with aggressive price points that get delivered in the mail to all households in our trade area. The free coffee coupon is always the highest redeemed coupon we offer, encouraging customers to continue coming in and getting a coffee, thus building habits."
Not only do consumers love coffee, but they also want more options to choose from when it comes to coffee brands and creamer options.
Sparks mentioned that Curby's is considering a couple novel coffee additions as it looks for unique and true points of differentiation and marketing position within its coffee segment.
Cliff's offers customers a wide variety of creamers to keep up with the demand for customization.
"We dedicate a lot of counter space in all our stores to ensure customers have plenty of space to add their creamers, sugars and flavor shots. All stores offer a variety of creamers and flavor shots, which helps to enhance customers' beverages and make them their own," Thurston elaborated. "We will also offer seasonal creamer varieties to create additional seasonal excitement."
Different avenues exist for creating a high-quality cup of coffee. While some retailers focus on developing their own private-label coffee brand, others bring in established coffee brands or partner with local roasters to help them deliver new and exciting options for their customer base. The trick is determining which path works best for your chain.
Earlier this year, GetGo introduced a new signature blend of coffee beans that features a hand-blended, full-bodied mix of four premium beans from around the world and delivers hints of smokiness, cocoa, citrus and cherry.
Meanwhile at Curby’s, "we are working on co-branding with a coffeehouse-style roaster," said Sparks.
Cliff's has partnered with Ultra Coffee, a local coffee roaster in its market area, to introduce new and exciting coffee flavors.
"Through this partnership, we introduce a new flavored coffee every two to three months," said Thurston. "This drives some additional demand and excitement." CSD
In a recent Coresight Research survey, customers expressed concern about how increases in theft could impact their local stores. The survey found that 48% of consumers are concerned that stores serving their community could be closed due to retailers experiencing high levels of theft. The survey also noted that 75% of consumers are worried that retailers will raise prices to cover the cost of increasing retail theft.
Theft continues to pose a significant challenge for retailers in 2023. In response, retailers are finding new ways to reduce shoplifting and to keep customers and employees safe.
As theft rises and technology improves, c-store retailers are finding new ways to manage loss prevention at their stores.
Zhane Isom • Associate Editor
Trust the hook-makers at Trion to invent creative solutions to prevent individual item theft as well as mass “sweeping” of merchandise. Easy-to-use, ScanLock® is an inexpensive key-lock system that secures most common scan hooks — and even retrofits existing hooks in place!
■ Install locks alone to retrofit your existing hooks in-store, or full lock-and-hook combinations in your choice of hook and label holder styles.
■ Secures scan hooks up to 1/4" diameter, with 1" wire spacing.
■ Secure all items or display some unlocked. Display 1 or 2 items unlocked for easy customer access while balance of stock is locked and held secure.
■ Simple swing-aside access. No need to remove the lock to access & sell items.
■ User-friendly design re-locks without a key. Open several hooks for hands-on selling to customers, replace items and re-lock in an instant without fumbling for the key.
■ Optional Security Plate secures hook to pegboard to provide additional theft deterrence.
To avoid raising prices on items, experts predicted some retailers might start locking up products that are likely to be stolen.
“Convenience stores are likely to pursue similar loss-prevention measures as many other affected retailers: locking up merchandise with high valueto-weight ratios that are easy to steal,” said John Harmon, senior retail and technology analyst for Coresight Research. “We have seen this among drugstores and bodegas, with their locking up everything from ice cream to jugs of Tide to beauty items. These items are generally shelf-stable commodities that are easy to resell.”
While putting high-value items under lock and key could prevent shoplifting, Harmon warned it could possibly cause consumers to purchase their items elsewhere.
“Retailers can lock up merchandise or use other means to protect it. However, this friction hurts the customer experience, and inconvenienced customers are likely to go to a different store or shop online,” Harmon elaborated. “A recent Coresight
survey found that regarding retail theft, 26% of consumers would shop elsewhere, and 26% would move online if their local store put items under lock and key.”
Nonetheless, some retailers are taking a different approach to keep down theft in their stores. Englefield Oil Co.’s Duchess, which has 120 cstores throughout Ohio and West Virginia, is focusing on technology for its loss prevention tactics.
“Mitigating crime is our goal, and we are continually investing in new camera systems; upgraded, bright LED lights; enforcement of towing and loitering; and partnering with local law enforcement agencies,” said Nathan Arnold, director of marketing for Englefield. “We recently upgraded the camera systems in many of our locations and plan to continue to invest in these upgrades to ensure that we are using the best technology.”
Harmon agreed that using technology is one of
Technology is rapidly advancing, offering new ways for retailers to combat theft from computer video to RFID tags.
the best ways to help decrease theft in stores.
“Stores can use a combination of radio-frequency identification (RFID) tags, which identify what items left the store and when, and video footage to help collect evidence to build a case against the perpetrator,” said Harmon. “Computer video can also detect other customer behaviors such as loitering, sweeping an entire shelf into a bag and threatening behavior.”
Harmon explained that autonomous stores can also expect a lower theft rate. These stores see lower theft rates because the consumer must log in by scanning a QR code or swipe a credit card to enter the store, encouraging shoplifters to go somewhere else.
Keeping security systems up to date is essential when dealing with theft, but retailers should also ensure their employees are involved and informed on any new tactics being implemented in the stores.
• Technology is advancing, offering new ways for retailers to combat theft from computer video to radio-frequency identification tags.
• Some 75% of consumers are worried that retailers will raise prices to cover the cost of increasing retail theft.
Englefield Oil’s Duchess has made keeping its employees involved in loss prevention its main priority when making any changes to security.
“Store security is always a priority of ours,” said Arnold. “Our team members are continually trained on safety and security measures, plus weekly communication through operations is occurring so our team can be knowledgeable of any possible issues or patterns of issues.”
Duchess employees also receive hands-on training from professionals in order to handle any incident in the store.
“All team members and sites have security training and work closely with our safety and IT departments on continual training and resolution for any incident,” Arnold said. “We consider this a top priority for our team.”
All in all, retailers should continue looking into more ways to improve loss prevention in their stores, whether locking up certain items or adding more cameras. Theft will continue to be an issue for c-stores, but with the improvement of technology, loss prevention tactics will become better, hopefully resulting in lower theft rates.
“Security should be a top priority for all retailers, and I think this will continue to be for the convenience store channel,” Arnold said. “Technology is advancing quickly, and I think in the future it will be commonplace for artificial intelligence and other systems to assist with reviewing tapes for possible shrink, notifying authorities automatically of issues and being able to capture much-needed documentation without the laborious task of reviewing video footage.” CSD
When buying or selling a convenience store, considering the key steps to achieving a successful sale upfront can help prevent problems at closing.
Remember that acquiring a convenience store isn’t as simple as going to a store and buying something off the shelf. And if you are divesting a convenience store, it is not like selling a car or a house. Selling a business is a complex process. Here are a few of the top items you will want to pay attention to before you engage in a sale.
Be prepared to kiss a lot of frogs. You may have to look at a lot of stores to find the right one for you. Some won’t take much time to toss out. Others, as you
whittle down the list, will require much deeper investigation.
There is no such thing as a perfect business because all businesses have warts. Your goal is to find the one that comes as close as possible to your ideal situation and has an upside. If there is no upside, then don’t buy it.
Once you have determined which store or stores you are interested in buying, be sure to do your due diligence. By due diligence I am referring to checking the income and expense statements of the business. Have the numbers been prepared by the owner’s accountant or were you just given an excel sheet where the numbers could have been manipulated? If it is a single store, get a copy of the tax return to compare the income and expense statements as to what they told the IRS the sales were. If they don’t match, then there is a good chance the store isn’t making the amount of money
Attendance for convenience retailers is complimentary.
RSVP today at https://COY2023. eventbrite.com
TXB features a state-of-the-art store design and restaurant-quality food, while celebrating the diversity of Texas and its values of authenticity, hospitality and integrity.
Today TXB operates over 50 locations in Texas and Oklahoma, with plans for many more new-to-industry builds on the horizon. Over the past three years TXB has been aggressively remodeling all existing Kwik Chek sites to the TXB brand, while also growing through new builds and integrating technology, including an updated loyalty program and mobile app, self-checkout stations and electric vehicle charging.
CStore Decisions’ Convenience Store Chain of the Year Award annually honors a convenience store or petroleum chain that has established itself as a superior retailer and innovator in the c-store industry.
CSD’s first Chain of the Year award was Wawa Inc. in 1990. TXB follows the 2022 Chain of the Year Winner Nouria Energy. Past winners of this prestigious award include Sheetz, Maverik, RaceTrac, 7-Eleven Inc., Kwik Trip, Alimentation Couche-Tard, QuikTrip, Rutter’s and Family Express.
Wednesday, October 4, 2023 5:30 - 9:00pm The Fox Theatre Atlanta, GA
For sponsorship information, contact: John Petersen • jpetersen@wtwhmedia.com
THANK YOU SPONSORS
CSTORE DECISIONS HONORS TXB STORES AS THE 2023 CHAIN OF THE YEAR!
the seller told you it was making.
Evaluate the status of the store’s environmental condition. Are there any outstanding environmental issues that you would be assuming? What are the ages of the tanks and are there any new requirements forthcoming from the state that will cost additional money that you may be liable for?
Check with the local and state authorities to see if there are any changes planned for construction or changing of the roadways that will affect the convenience store.
Be sure to get an ALTA (American Land Title Association) survey, which will tell you what you are buying and if there are any encroachment issues. (It is not uncommon for the price sign of a store or the tanks to be located on state property because the road was expanded and now part of the store is on state property).
Find out if there is a fuel agreement with a jobber, and if so, are you agreeable with the terms of the agreement and is it assumable or do you need to sign a new agreement?
When purchasing the inventory make sure you are only buying inventory that is not out of date and that you’re not buying inventory that you don’t want to sell in your store.
To ensure you are getting full value from the store you are selling, the first thing is to find out what the store is worth. The No. 1 mistake business owners make is attempting to sell a convenience store without knowing the store’s worth.
What you need is a market valuation — not a real estate appraisal — from an industry expert who sells convenience stores. Do not price the store based on what you read or what you heard someone else got
for their stores. Each store is valued differently. Most people know what their cars and homes are worth but valuing a convenience store’s worth is more difficult to determine.
Do your due diligence on your store or stores as if you were a buyer. Check the title work of the real estate to see if there are any outstanding liens or blemishes. Are there any environmental issues that are outstanding? What is the condition of the tanks? Do you have a current survey of the property? Are there any outstanding legal or employee issues that would affect the sale of the property? Do you have a fuel agreement that is assumable? If the store is branded, how much time is left on your obligation to the brand in case the new owner wants to change the brand?
Make sure all your financial numbers for the store are correct. Nothing will kill a sale faster than giving a buyer incorrect numbers.
List the assets that will be included in the sale of the store. The last thing you want is a misunderstanding as to what is being sold.
Find someone to represent you as an intermediary who is knowledgeable about the c-store business, whether it be a business broker or an investment banker, because the process is too involved to attempt to do on your own. There is a reason celebrities and sports stars use intermediaries, and that is because they help them get more money for the sale.
If any readers are interested in a sample copy of a due diligence list, contact me at the email below.
Terry Monroe is the president and founder of American Business Brokers & Advisors and has been involved in the sale of more than 880 businesses and worked with over 1,000 buyers and sellers in the buying and selling of convenience stores. He can be reached at terry@terrymonroe.com. For more visit www.terrymonroe.com.
Ocean Spray has launched its latest product offering — Snack Medley, a dried fruit mix of sweet and tangy dried cranberries perfectly paired with other premium fruits. Available in three varieties, Cran-Blueberry, Cran-Pineapple and Cran-Mango, Snack Medley is an ideal choice for an afternoon pick-me-up, post-soccer or -baseball practice snacking, weekend adventures, or any time a quick and satisfying snack is desired.
Ocean Spray
www.oceanspray.com
Mantis BBQ will debut a new Sweet Heat BBQ Dust that is for more than barbecue and can be used as an ingredient or topping for nearly any dish. The newest Sweet Heat Dust starts a little sweet and then finishes with some heat. It can be used as a rub, seasoning, in dips, on chips and popcorn, and even on the rim of a Bloody Mary or Margarita. The Mantis BBQ dust seasoning portfolio includes two varieties — Original BBQ Dust and the new Sweet Heat Dust.
Mantis BBQ
www.mantisbbq.com
Dot’s has introduced its new Homestyle Pretzels Cinnamon Sugar. Braided and dusted with Dot’s Cinnamon Sugar seasoning blend, each pretzel twist envelops the taste buds in a delightful swirl of sweet and toasty flavors. Originally a limitededition release, this snack can now be enjoyed all year round in five-ounce and 16-ounce bags.
The Hershey Co.
www.thehersheycompany.com
365 Retail Markets has unveiled its new MM6 Mini, which balances flexibility and consumer experience with any dining cafeteria or micro-market location. The MM6 Mini is a compact point of sale with a 15.6-inch display that offers unlimited placement flexibility with wall and countertop mount options. The mini self-service kiosk also offers a thoughtful, frictionless self-checkout experience for both dining and micro-market applications.
365 Retail Markets
www.365retailmarkets.com
The team behind the popular fruit-infused vodka water, Mom Water, announced the official launch of its newest offering — Dad Water. Dad Water comes in four non-carbonated, fruit-infused tequila water flavors, each with a unique name and persona. Now available across select states, Dad Water is sold in eight-can variety packs featuring two of each flavor in ready-to-drink 12-ounce standard cans. The beverages have 5.25% alcohol by volume and are sold for a suggested retail price of $19.99 per pack.
Dad Water
www.drinkdadwater.com
Cintas Corp. has partnered with Rubbermaid Commercial Products to announce new trash can liner options, called “Perfect Fit,” to help facilities minimize litter and stay clean. Cintas’ by-the-roll service allows facility operators to purchase fitted trash can liners that can support various trash can sizes, ranging from desk-sized all the way up to 55-gallon cans. The Perfect Fit liners will help Cintas partners keep facilities’ inventory stocked while facility operators will only be charged for what they use. The liners come in black and clear, supporting many manufacturing, foodservice and hospitality facilities.
Cintas Corp.
www.cintas.com
Rubbermaid Commercial Products
www.rubbermaidcommercial.com
Gummy supplement manufacturer TopGum launched Gummiccino, its new line of high-dosage caffeine gummies. The gummies are made with the company’s proprietary microencapsulation technology designed to enhance flavor and boost absorption. The functional gummies are infused with an extract of robusta coffee beans that capture the genuine aroma, flavor and color of coffee. TopGum offers a choice of three popular, out-of-the-box flavors: espresso, cappuccino and mocha. Each serving of two coffee gummies contains 40 milligrams of caffeine, which is equivalent to a standard espresso shot.
TopGum Gummiceuticals
www.topgummiceuticals.com
Talenti has unveiled its new DairyFree Chocolate Fudge Brownie Gelato Layers. This new treat starts with a rich layer of chocolate non-dairy gelato, then a layer of brownie pieces, followed by a rich fudge chocolate sauce, another layer of chocolate non-dairy gelato, followed by a bottom layer of chocolate sprinkles for the ultimate chocolate-lover dessert. Made with cashew butter, this indulgent and sophisticated treat is 100% dairy free. Talenti dairy-free gelato is available in major retailers nationwide for a suggested retail price of $5.29-$5.99.
Unilever
Takis unveiled a new addition to its snack portfolio with Takis Dragon Sweet Chili. This latest offering introduces a new avenue of flavor, all while staying true to its spicy roots. Having already launched in Canada, Takis is now bringing this sweet and spicy snack combination to U.S. consumers. As part of its continued partnership with international recycling leader TerraCycle, all Takis Dragon Sweet Chili packaging can be recycled via TerraCycle.
Grupo Bimbo
www.grupobimbo.com
OPW Vehicle Wash Solutions introduced a new LaserGlow Arch option — LaserWash 360 Plus. One of the most advanced lighting options currently available to the vehicle wash industry today, the LaserGlow Arch technology provides easy-to-understand guidance during the loading process that visually communicates to drivers when they should pull forward, back up or stop as they enter and position their vehicles in the wash bay. This creates a safer, less stressful wash experience for drivers, while their ability to more quickly and efficiently position their vehicle reduces the idle time spent in the bay, resulting in optimized throughput rates.
OPW Vehicle Wash Solutions
www.opwvws.com
Campbell’s has unveiled its two new condensed gluten-free cooking soups. The Cream of Chicken soup is made with chicken meat with no antibiotics and farm-fresh cream, while the Cream of Mushroom soup is made with mushrooms, garlic, farmfresh cream and no preservatives. The gluten-free soups are rolling onto shelves nationwide throughout the summer and have a suggested retail price of $1.99.
Campbell Soup Co.
www.campbellsoupcompany.com
Rich Products has introduced its new On Top Oat Milk Whipped Topping. This new topping is plant based with stability to easily mix, fill, layer or top customizable creations with a swirl. The topping features sustainably sourced whole grain oat milk as the hero ingredient and is simple for c-store operators to use, requiring no special equipment. The topping is easily customized, perfect for layering and incorporating into various menu items such as cold brews, teas, sodas, smoothies and energy drinks. Each case contains 12 ready-to-use 12-ounce bags for easy handling.
Rich Products
www.RichsConvenience.com
Harvest Snaps has released its new organic Artisan Sea Salt Baked Green Pea Snacks. These USDA-certified organic snacks feature whole organic green peas milled in-house as the first ingredient, plus a bold sprinkle of sea salt. The baked snacks are packed with plant protein and a good source of fiber; plus they are certified gluten free and vegetarian friendly. Sold in three-ounce bags, Harvest Snaps’ organic Artisan Sea Salt Baked Green Pea Snacks are available for retailers nationwide and sold at selected stores.
Calbee North America
www.calbeena.com
BeatBox has partnered with singer, songwriter Avril Lavigne to unveil its new ready-to-drink (RTD) Pink Lemonade Cocktail. This pink cocktail packs a punch with a delightful fusion of tangy lemons and a little bit of sweetness. With 11.1% alcohol by volume, it’s like a lemonade stand for adults. Consumers can find the Pink Lemonade RTD Cocktail now at thousands of retail locations nationwide.
BeatBox Beverages
www.beatboxbeverages.com
CandyRific introduced Disney100 Limited Edition Collectible Dispensers. The classic round dispensers are topped with Disney Mickey Mouse or Minnie Mouse characters and are 12 inches tall. Each dispenser is filled with 0.63 ounces of assorted fruit-flavored dextrose candies that use natural flavors and colors. Each silver gift box features special metallic accents. The dispensers are shipped in six one-count displays per case for a suggested retail price of $16.99.
CandyRific www.candyrific.com
OREO has partnered with Nintendo to introduce limited-edition cookies inspired by the world of Super Mario. The new limited-edition OREO x Super Mario cookies feature 16 embossments, including Super Mario characters and Power-ups, such as iconic heroes Mario and Luigi, a Super Star, and enemies like a Goomba and Bowser Jr. The OREO x Super Mario cookies began rolling out at retailers nationwide in July and will be available for a limited time only.
Mondelēz International
www.mondelezinternational.com
Nintendo
www.nintendo.com
Local store marketing opportunities can help c-stores drive customers to their stores.
John Matthews • Gray Cat EnterprisesOne of the questions I ask audiences when I deliver presentations on retail marketing is “How many did a grand opening celebration for your store?”
I am generally amazed that usually only one in five attendees raise their hands. With all the investment that was done in the physical location, it was a missed opportunity to tell the customer trade area that you were alive and kicking. But just because you may have missed that opening opportunity doesn’t mean that you can’t try again.
What retailers must consider is how to re-energize their customer base — both existing and new customers — on an ongoing basis.
Think about all the Local Store Marketing (LSM) opportunities that a retailer can put into motion throughout the year to help drive customers into their store. From events to product sampling to anniversary celebrations, the ideas are endless, and retailers that become relevant again with their customers grow their business.
Be Buttoned Up: First, be smart when you select your event date, avoiding holidays and other conflicting events. Develop a budget that provides enough investment to raise maximum customer awareness — and make sure you comply with local ordinances and obtain any necessary permits. Don’t be shy; the goal is to simultaneously rejuvenate your existing customer base and attract new customers to your location.
Understand Your Trade Area: To
get a leg up on your competition, you need to know everything about them, and your local marketing planning is your chance to differentiate your store from theirs. In addition, identify key businesses and residential areas to promote and position your store for its greatest success. There are countless potential customers that come to your area or strip center that have never stepped foot in your location — get them to cross the threshold because they are already in the parking lot.
Overcommunicate: When you are the new kid on the block, it is common to be overzealous telling the world you exist. Don’t forget that customers have lives outside of their relationship with your store, and it is up to you to overcommunicate your LSM event with signage, public relations, social media and especially word-of-mouth advertising. This is your chance to scream from the mountaintop. Don’t be timid.
Plan Weeklong Activities: If you want to go big, say an anniversary celebration, your LSM events should be more than a day, so consider having a weeklong celebration with activities planned throughout. Give back to the community by contributing a charitable donation during your anniversary celebration; plan a local celebrity appearance to attract crowds; and include daily events that draw a cross section of different target-customer demographics.
Get Known: Make the rounds at local chamber of commerce meetings and other community events
to network. While it is great to create and precisely communicate your brand through advertising and local media coverage, building a localized network of contacts can produce long-lasting sales drivers. Business leaders relish the opportunity to work with their established colleagues, and these bonds can keep the competition at bay.
Make It Last: Re-energizing your customer base is not a one-and-done endeavor — you need to be consistent and proactive to establish routines with your customers. This is not a time to rest on your laurels. Continue to add value with the base and your sales will see a steady climb.
Most store owners get into retail because they have a love for both people and the products they sell. They build their stores, hire friendly staff, unlock the doors and wait for the world to come in. It’s easy to get excited when your store first becomes visible to customers during your grand opening, but it’s another thing to generate this customer excitement some two years later. Don’t fall for “the new guy” syndrome. Develop strong local store marketing strategies to maintain your store’s sales momentum well beyond your initial period.
John Matthews is the founder and president of Gray Cat Enterprises Inc., a Raleigh, N.C.-based management consulting company. Gray Cat specializes in strategic project management and consulting for multiunit operations, interim executive management and strategic planning. Matthews has over 30 years of senior-level executive experience in the retail industry. For more information: Graycatenterprises.com.
