CSN- November 2023 by ensembleiq

W H AT ’ S N E X T I N C O N V E N I E N C E A N D F U E L R E TA I L I N G

MEET THE UP-AND-COMERS OF CONVENIENCE

THE ART OF ASKING QUESTIONS RETAILER EXECUTIVE OF THE YEAR ANDREW CLYDE MAKES SURE ALL VOICES ARE HEARD AT MURPHY USA

NOVEMBER 2023 CSNEWS.COM

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EDITOR’S NOTE

Leading by Listening Ensuring the voices of others are heard is of the utmost importance to Andrew Clyde CONVENIENCE STORE NEWS’ Retailer Executive of the Year Andrew Clyde subscribes to a concept known as appreciative inquiry. This approach to organizational change utilizes questions and dialogue to help participants uncover strengths and opportunities in their organizations.

I recently had the pleasure of interviewing Clyde, the president and CEO of Murphy USA Inc., for this issue’s cover story (see page 24) and one of the topics we discussed was his leadership style, which is rooted in appreciative inquiry. “If you came in with all your prior experience and you knew all the answers, I mean, that usually doesn’t play out very well,” he told me. Asking questions and listening, however, has played out well for Clyde. He shared with me a story about how roughly a year into his tenure, he attended the company’s national leadership conference, followed by a district managers meeting, and it became apparent to him that his message wasn’t being heard in the field and their voices weren’t getting to him.

Immediately setting out to change this, he surprised his team by asking the 150 district managers at the meeting to send him 100 ideas in 100 hours. Within a week, more than 150 unique ideas poured into his inbox. Rather than taking tons of time to mull them over, he got to work right away with his team organizing those ideas into quick wins and longer-term initiatives. “That set into motion some of the earliest initiatives back in 2014, and it also reinforced my expectations around inclusion, which I define for the organization as meaning you have a voice and your voice will be included by leaders when we make decisions,” Clyde told me. Asking questions and listening seem like such simple and common-sense practices for leaders, but too often decisions are made for employees without any actual input from them. Being in a position of authority should increase one’s ability to see and hear others, not decrease it. Take it from the Retailer Executive of the Year: “You just got to be open to learning.” For comments, please contact Linda Lisanti, Editor-in-Chief, at llisanti@ensembleiq.com.

EDITORIAL EXCELLENCE AWARDS (2016-2023)

EDITORIAL ADVISORY BOARD

Finalist, Best Infographics, June 2021

2018 Jesse H. Neal National Business Journalism Award Finalist, Best Editorial Use of Data, June 2017

2023 American Society of Business Press Editors, National Azbee Awards Silver, Data Journalism, January/April/June 2022

2023 American Society of Business Press Editors, Upper Midwest Regional Azbee Awards Gold, Data Journalism, January/April/June 2022 Bronze, Diversity, Equity and Inclusion, March 2022

2016 American Society of Business Press Editors, National Azbee Awards Gold, Best How-To Article, March 2015 Bronze, Best Original Research, June 2015

2016 American Society of Business Press Editors, Midwest Regional Azbee Awards Gold, Best How-To Article, March 2015 Silver, Best Original Research, June 2015

2020 Trade Association Business Publications Intl. Tabbie Awards Honorable Mention, Best Single Issue, September 2019

2016 Trade Association Business Publications Intl. Tabbie Awards

Ruth Ann Lilly GPM Investments LLC

Laura Aufleger OnCue Express

2021 Jesse H. Neal National Business Journalism Award

Billy Colemire Stinker Stores

2023 Eddie Award Honorable Mention, Folio: magazine Business to Business, Retail, Full Issue, September 2022 Business to Business, Retail, Single Article, March 2023

2022 Eddie Award, Folio: magazine Winner, Business to Business, Retail, Single Article, March 2022 Winner, Business to Business, Food & Beverage, Series of Articles, October 2021 Honorable Mention, Business to Business, Retail, Single Article, September 2021

2020 Eddie Award, Folio: magazine

Vito Maurici McLane Co. Inc.

Robert Falciani ExtraMile Convenience Stores

Jonathan Polonsky Plaid Pantries Inc. Greg Scriver Kwik Trip Inc.

Jim Hachtel Core-Mark

Tony Sparks Curby’s Express Market

Chris Hartman Rutter’s

Business to Business, Retail, Series of Articles, September 2019

2018 Eddie Award Honorable Mention, Folio: magazine Business to Business, Retail, Website Business to Business, Retail, Full Issue, October 2017

Faheem Jamal CPD Energy Corp./ Chestnut Markets

Business to Business, Editorial Use of Data, June 2017

Roy Strasburger StrasGlobal

2017 Eddie Award, Folio: magazine Winner, Business to Business, Retail, Single/Series of Articles, May 2017 Honorable Mention, Business to Business, Retail, Single/Series of Articles, June 2016

2016 Eddie Award Honorable Mention, Folio: magazine Business to Business, Retail, Full Issue, October 2015 Business to Business, Retail, Single/Series of Articles, August 2015

Silver, Front Cover Illustration, June 2015

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VIEWPOINT

C is for Community Being the community’s store is as important as being the convenience store IT’S BEEN SAID BEFORE, but it’s worth repeating: Convenience store retailers are better positioned than any other type of retailer to be the focal point of community service in the markets they serve.

The reason why is simple. How many times a month does a person visit a Home Depot or Lowe’s? Unless they’re actively performing a home improvement project, it’s probably not more than once or twice. How about a supermarket? Most people do their grocery shopping once, or perhaps twice, a week. Now, take a convenience store, where consumers shop anywhere from three to five times weekly. Some even go to their favorite neighborhood store on a daily basis.

Convenience store retailers are better positioned than any other type of retailer to be the focal point of community service in the markets they serve.

During a general session at last month’s NACS Show, NACS President and CEO Henry Armour told audience members that c-store also stands for “community” store. “We are in every community around the country, around the world and often around the corner,” he said. The trade association has partnered with food-forward groups to enhance the nutritional offerings at c-stores, with the American Red Cross to support first responders, and with the Good Jobs Institute to address labor issues in the industry. More recently, NACS spearheaded the development of TruAge, an app for preventing youth access to age-restricted products. More than 35,000 c-stores already support TruAge to curtail illegal alcohol and tobacco purchasing by minors. It’s gratifying to see how many individual convenience store companies are also giving back to their communities in various ways. A few recent examples are:

• Casey’s General Stores Inc.’s Cash for Class program, which kicked off its third year this fall, has raised $3 million for students, families and educators through a combination of round-up donations and the retailer’s partnership with LIFEWTR. More than 250 schools in the retailer’s 16-state market area received grants. • Maverik stayed true to its Adventure’s First Stop theme by giving nearly $700,000 to the National Park Foundation through a Round Up Your Change summer donation program. • Wawa Inc. will transform a former convenience store in Philadelphia and provide more than $1.5 million in support for the next five years to Popcorn for the People, an organization dedicated to creating career opportunities for autistic individuals through the production and packaging of products. With the new space, Popcorn for the People will be able to expand its production capabilities and continue to create jobs for people with autism and other disabilities. • The Spinx Co. chooses beneficiaries based on its corporate charitable mission: “Spinx & Kids: Mind, Body, Spirit. Growing healthy kids where we live, work and play.” The retailer donated $120,000 this year across four charities in the Greenville, S.C., area that fit this mission: the American Red Cross, Greenville Free Medical Clinic, Loaves and Fishes, and Safe Harbor. These are just a sampling of some of the ways that convenience stores can and do position themselves as the “community” store. For comments, please contact Don Longo, Editorial Director Emeritus, at dlongo@ensembleiq.com. 4 Convenience Store News C S N E W S . c o m

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Minnesota File No. F-5829

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CONTENTS NOV 23

V OLUME 59 N UMB ER 11

COVER STORY PAGE 24

20 FEATURES

DEPARTMENTS

COVER STORY

EDITOR’S NOTE

24 The Art of Asking Questions Retailer Executive of the Year Andrew Clyde makes sure all voices are heard at Murphy USA.

3 Leading by Listening Ensuring the voices of others are heard is of the utmost importance to Andrew Clyde.

FEATURE

VIEWPOINT

32 Convenience’s Up-and-Comers The 2023 class of Future Leaders in Convenience is the largest yet.

4 C is for Community Being the community’s store is as important as being the convenience store.

10 CSNews Online 18 New Products SMALL OPERATOR

20 Can You Have a Seat at the Table If There Is No Table? To stay ahead of changes, you must closely observe your customers, community and competitors.

FEATURE

84 A Celebration 10 Years in the Making Before a packed house, the Top Women in Convenience program commemorated its 10th anniversary and recognized its latest class of honorees.

INSIDE THE CONSUMER MIND

92 The CBD State of Affairs Consumer familiarity has improved, but usage remains niche.

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10/31/23 11:58 AM

You can’t sell what you don’t stock. Maximize customer expectations and profit margins by keeping your ZYN inventory full.

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CONTENTS NOV 23

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8550 W. Bryn Mawr Ave., Ste. 200, Chicago, IL 60631 (773) 992-4450 Fax (773) 992-4455 WWW.CSNEWS.COM BRAND MANAGEMENT SENIOR VICE PRESIDENT-GROUP PUBLISHERUS GROCERY & CONVENIENCE GROUP Paula Lashinsky (917) 446-4117 - plashinsky@ensembleiq.com EDITORIAL EDITOR-IN-CHIEF Linda Lisanti llisanti@ensembleiq.com EXECUTIVE EDITOR Melissa Kress mkress@ensembleiq.com SENIOR EDITOR Angela Hanson ahanson@ensembleiq.com MANAGING EDITOR Danielle Romano dromano@ensembleiq.com

ASSOCIATE EDITOR Amanda Koprowski akoprowski@ensembleiq.com

INDUSTRY ROUNDUP 12 Federal Reserve Explores Lowering Debit Card Swipe Fees 14 Retailer Tidbits 14 Supplier Tidbits 16 Eye on Growth

EDITORIAL DIRECTOR EMERITUS Don Longo dlongo@ensembleiq.com

CATEGORY MANAGEMENT

ADVERTISING SALES & BUSINESS

TOBACCO

67 A Moderate Chapter for Cigars These are not the best of times, nor the worst of times, for c-store cigar sales. ALCOHOLIC BEVERAGES

TECHNOLOGY 78 Talking Technology Executives from across the channel gathered at the Convenience Store News Technology Leadership Roundtable & Dinner to share insights on today’s hot topics.

CONTRIBUTING EDITORS Renée M. Covino, Tammy Mastroberte

72 Standing Out in an Increasingly Competitive Category C-stores can leverage partnerships, trends and data to win with wine and liquor.

ASSOCIATE BRAND DIRECTOR & NORTHEAST SALES MANAGER Rachel McGaffigan - (774) 212-6455 rmcgaffigan@ensembleiq.com ASSOCIATE BRAND DIRECTOR & WESTERN SALES MANAGER Ron Lowy - (330) 840-9557 - rlowy@ensembleiq.com ACCOUNT EXECUTIVE & CLASSIFIED ADVERTISING Terry Kanganis - (201) 855-7615 - tkanganis@ensembleiq.com CLASSIFIED PRODUCTION MANAGER Mary Beth Medley (856) 809-0050 - marybeth@marybethmedley.com DESIGN/PRODUCTION/MARKETING ART DIRECTOR Lauren DiMeo ldimeo@ensembleiq.com PRODUCTION DIRECTOR Pat Wisser pwisser@ensembleiq.com SENIOR MARKETING MANAGER Krista-Alana Travis ktravis@ensembleiq.com SUBSCRIPTION SERVICES LIST RENTAL mbriganti@anteriad.com SUBSCRIPTION QUESTIONS contact@csnews.com

CORPORATE OFFICERS

Cooking Up a Game Plan

Winning With Prepared Food

Winning With Dispensed Beverages

Winning With Fresh Bakery

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CHIEF FINANCIAL OFFICER

Jane Volland

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CONVENIENCE STORE NEWS AFFILIATIONS Premier Trade Press Exhibitor

The contents of this publication may not be reproduced in whole or in part without the consent of the publisher. The publisher is not responsible for product claims and representations.

Convenience Store News (ISSN 0194-8733; USPS 515-950) is published 12 times per year, monthly, by EnsembleIQ, 8550 W. Bryn Mawr Ave., Ste. 200, Chicago, IL 60631. Subscription rates: Subscription rate in the United States: $150 one year; $276 two year; $14 single issue copy; Canada and Mexico: $204 one year; $390 two year; $17 single issue copy; Foreign: $204 one year; $390 two year; $20.40 single issue copy; Digital One year, digital $87; two year, $161. Periodical postage paid at Chicago, IL 60631, and additional mailing addresses. Copyright 2023 by EnsembleIQ. All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording, or information storage and retrieval system, without permission in writing from the publisher. POSTMASTER: send address changes to Convenience Store News, 8550 W. Bryn Mawr Ave. Ste. 200, Chicago, IL 60631.

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CSNEWS ONLINE

MOST VIEWED NEW PRODUCT

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EXPERT VIEWPOINT

AI Can Have a Lot to Say During Category Planning For convenience store retailers that want to construct strong, long-term relationships with brands, leveraging artificial intelligence (AI) powered data analytics can make category planning much more productive and results-oriented, and keep category reviews honest, writes Julian Miller, global head of retail solutions success at SymphonyAI Retail CPG. During planning, AI-powered insights can forecast an item’s performance and generate predictive models for how an item is likely to perform against unit, revenue and margin goals. During reviews, the data can do the talking, delivering precise estimations for both retailers and brands to leverage, and enabling much more productive collaboration between suppliers and category managers.

BIC presents a newly refreshed lineup for its Special Edition Party Animal Series of lighters. Meant to appeal to consumers who are looking to show off their favorite animal or who just appreciate the wordplay, the new designs feature vividly colored and realistic animals with puns. Like all BIC Maxi Lighters, the Party Animal Series lighters are long-lasting, reliable and 100 percent quality inspected. The collection comes with a suggested retail price of $2.29 per lighter.

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11/2/23 9:47 AM

INDUSTRY ROUNDUP

Federal Reserve Explores Lowering Debit Card Swipe Fees Proposed revisions would drop the base cap from 21 cents to 14.4 cents ON OCT. 25, the Federal Reserve Board of Governors voted six to one to move proposed revisions to Regulation II’s Interchange Fee Cap to a 90-day public comment period.

The proposed changes were met with positive reactions from the retail community, although some raised concerns that the revisions don’t go far enough.

The Federal Reserve set a swipe fee cap in 2011 after it was directed by Congress under the 2010 Durbin Amendment to set regulations for debit card swipe fees, which are also known as interchange fees. Under the current rule, each interchange fee received by a debit card issuer for a debit card transaction can be no more than the sum of 21 cents, the base component; plus 5 basis points multiplied by the value of the transaction, or the ad valorem component; and a fraud-prevention adjustment of 1 cent per transaction.

“This is a significant reduction that will save money for retailers and their customers, and we welcome the progress that has been made,” said National Retail Federation Chief Administrative Officer and General Counsel Stephanie Martz. “Nonetheless, it still doesn’t get to the ‘reasonable’ level Congress sought and it isn’t proportional to banks’ falling costs.”

Under the proposed revisions, the base component cap would decrease to 14.4 cents, the ad valorem component would decrease to 4 basis points, and the fraud-prevention adjustment would increase to 1.3 cents per transaction.

“Banks have been charging more than five times their costs for debit card transactions and the Fed is finally saying that’s too much,” said MPC Executive Committee Member and NACS General Counsel Doug Kantor. “This is a step in the right direction toward the real, competitive market that Congress wanted to see, but still leaves the fees too high. Merchants and the consumers who ultimately pay these fees have been overcharged for far too long, so we need to get this right.”

Taking into account the three components, the maximum interchange fee for a $50 debit card transaction would drop to 17.70 cents, vs. 24.50 cents for the same transaction today.

The Retail Industry Leaders Association and Merchants Payments Coalition (MPC) also called it a step in the right direction, but echoed the calls for additional cuts.

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11/6/23 10:30 AM

MOVE & WITH LOVE ARE WINNERS!

Convenience Store News has awarded Coca-Cola Move as Best New Product for Packaged Beverages: Carbonated Soft Drinks and vitaminwater zero sugar with love wins Best New Product in the Packaged Beverages: Enhanced Water Category. Congrats to both!

BEST NEW P RODUCT S $:$ 5 ' 6

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INDUSTRY ROUNDUP

Retailer Tidbits

Sheetz Inc. received six grants from the Pennsylvania Department of Transportation to expand access to electric vehicle (EV) charging throughout the state. Six other grants were awarded to site hosts that plan to build EV chargers at Sheetz locations in Pennsylvania.

The convenience store operator also agreed to improve security measures via an independent assessment.

Rutter’s agreed to pay $1 million as part of a settlement related to a data security breach over a nine-month period spanning 2018 to 2019. The security breach involved 79 store locations and more than 1.3 million payment cards. H&S Energy Products LLC is integrating LottoShield’s lottery management system across its convenience store network following a successful two-week pilot. H&S Energy is projected to see cost savings of more than $1 million from reduction in labor hours, increased operational efficiencies and a decrease in theft.

Supplier Tidbits NJOY LLC filed litigation against 34 foreign and domestic manufacturers, distributors and online retailers of disposable vapor products that are being sold illegally. It seeks a nationwide injunction against the import, marketing and sale of these illicit products. McLane Co. Inc. revealed the name and branding for its new proprietary pizza program made for convenience stores: Prendisimo. Italian for “take away,” Prendisimo debuted at the 2023 NACS Show in Atlanta. Apax Partners LLP, a global private equity advisory firm, acquired Bazooka Candy Brands from Michael D. Eisner’s Tornante Co. and funds affiliated with Madison Dearborn Partners. Apax will look to stand the company up as an independent business.

Love’s Travel Stops acquired TVC ProDriver, a motor club and commercial driver’s license protection subscription service. It assists drivers and fleets in reducing or dismissing fines; preventing downtime for court; and protecting compliance, safety and accountability scores. Shell plc introduced renewable diesel fuel at 75 gas stations throughout the Los Angeles area. The move will assist the city in its efforts to reduce its carbon footprint. RaceTrac Inc. partnered with EnviroSpark to install the convenience store chain’s first EV charging station. The site in Oxford, Ala., was chosen for its convenient location near I-20 between Birmingham, Ala., and Atlanta.

KDP will also make an equity investment of $300 million in La Colombe in exchange for a 33 percent ownership stake in the company.

Keurig Dr Pepper Inc. (KDP) and coffee company La Colombe entered into a strategic partnership that includes a longterm sales and distribution agreement, as well as a long-term licensing, manufacturing and distribution agreement. Kona Gold Beverage Inc. is partnering with Cottonwood Distribution, which services more than 220 convenience stores. Cottonwood will distribute Kona’s Ooh La Lemin Lemonades to 72 Holiday stores in Utah where Kona has secured cold space.

U.S. Tobacco Cooperative and Enorama Pharma Inc. subsidiary Premier Manufacturing Inc. entered into an exclusive distribution pact for the sale of NIC-S, a tobacco-free white snus, in the U.S. market. Premier Manufacturing will lead a full marketing campaign that includes point-of-sale materials and display fixtures.

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INDUSTRY ROUNDUP

Eye on Growth

Wawa Inc. laid out plans to expand into four more states. Over the next eight to 10 years, the retailer expects to open 80 convenience stores in North Carolina, 60 stores in Indiana, 60 stores in Ohio and 40 stores in Kentucky. SQRL Fuel Stations acquired 210 locations in various regions of the country. The deal brings its total store count to 350-plus sites across 14 states: Alabama, Arkansas, Florida, Kansas, Louisiana, Mississippi, Missouri, North Carolina, Ohio, Oklahoma, Pennsylvania, Tennessee, Texas and Wisconsin.

This transaction marked Leathers Enterprises’ exit from the convenience store industry.

Sierra Enterprises Oregon Inc., an affiliate of S&S Petroleum Inc., acquired the assets of Leathers Enterprises Inc. The deal included 24 c-stores throughout Oregon, nine of which are company-operated and 15 of which are managed through dealer consignment agreements.

Family Express Corp. debuted a new, contemporary convenience store prototype ahead of a major expansion initiative that calls for 20 new-to-industry stores. The prototype places a major focus on foodservice. Foxtrot opened two new stores, one in Austin, Texas, and the other in Washington, D.C. The Austin location, located by the University of Texas at Austin, is the company’s fourth in the city. The D.C.-area site, in Logan Circle, is its sixth store there. Royal Farms opened its second location in Greenville, N.C., at the end of September. The retailer has announced plans to open several more North Carolina locations in Kinston, Lumberton and Wilson.

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11/1/23 10:32 AM

LET’S GROW TOGETHER! Collaborate with Circle K to create Award-Winning exclusive products

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NEW PRODUCTS

Simply Lay’s Veggie Poppables Frito-Lay North America Inc. introduces Simply Lay’s Veggie Poppables, a chip that combines the airy composition of Lay’s Poppables with real vegetables. The result is a light-textured, airy snack option. Available in two flavors — Ranch and Sea Salt — Simply Lay’s Veggie Poppables offer consumers the option of a tangy, zest-flavored ranch or the classic appeal of a sea salted chip. Veggie Poppables are available nationwide in 5-ounce bags with a suggested retail price (SRP) starting at $5.29. FRITO-LAY NORTH AMERICA INC. • PLANO, TEXAS • SIMPLYFRITOLAY.COM

Seagram’s Escapes Berry Mimosa The Seagram Beverage Co., in partnership with its celebrity ambassador Cynthia Bailey, created Seagram’s Escapes Berry Mimosa. The flavored malt beverage offers a grab-and-go option designed to attract consumers interested in traditional mimosas, which have seen sales growth of more than 10 percent over the last four years, according to the company. The product is available now in four-packs of 11.2-ounce bottles. In addition to in-store merchandising and packaging featuring Bailey, promotional support will include personal appearances and flavor samplings at events such as the iHeartRadio Music Festival and iHeartRadio Fiesta Latina. THE SEAGRAM BEVERAGE CO. • ROCHESTER, N.Y. • SEAGRAMSESCAPES.COM

Jackson’s Habanero Nacho Chips Jackson’s expands its kettle-cooked chip line with the introduction of Habanero Nacho Sweet Potato Chips with Avocado Oil. Like all of Jackson’s products, the new chips are made with heirloom, non-GMO sweet potatoes that are high in fiber, and kettle-cooked low and slow in avocado oil. Jackson’s sources premium oils from suppliers that are tested and proven by a third party to meet its purity standard. The Habanero Nacho Sweet Potato Chips are currently the hottest of Jackson’s spicy flavors. They are available nationwide in 1.5-ounce bags with a SRP of $1.79 or in 5-ounce bags for a SRP of $4.49. JACKSON’S • MUSKEGO, WIS. • JACKSONSCHIPS.COM

Toshiba TCx 900 Toshiba Global Commerce Solutions presents the TCx 900, a pointof-sale system that features 13th Gen Intel Core processors and a compact design. The TCx 900 works through a modular system that is built to last and evolve with retailers for the long term. According to the company, the new system offers multiple benefits, including next-generation DDR5 memory module technology that supports better bandwidth; enhanced digital security powered by Toshiba’s TCx Sky operating system; customizable ports that support various input/output systems for many configurations; a new design that is 40 percent more energy efficient than industry standards; and remote monitoring and management. TOSHIBA GLOBAL COMMERCE SOLUTIONS • RESEARCH TRIANGLE PARK, N.C. • COMMERCE.TOSHIBA.COM

EZ Oil Fresh Oil Dispensing System Foodservice equipment manufacturer Frontline International Inc. reimagines its EZ Oil Fresh Oil Dispensing System to hold more fresh cooking oil. The new 675-pound/90-gallon reservoir holds more than 19 jibs of oil, allowing most operators to refill just once monthly, the company stated. The integral pump moves oil at the touch of a button from the reservoir to awaiting fryer vats, while above the filled reservoir, the unit racks more plumbed boxed oil. The updated design is also intended to be more cost-effective and safer, with upside-down storage that dispenses every drop of oil while hands and floors are kept clean and grease-free. FRONTLINE INTERNATIONAL INC. • CUYAHOGA FALLS, OHIO • FRONTLINEII.COM

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Hot Pockets Hot Ones Sandwiches Nestlé USA’s Hot Pockets brand teamed up with First We Feast’s YouTube interview show, Hot Ones, to create a selection of the spiciest Hot Pockets the company has ever offered. The line includes four varieties: Spicy Garlic Chicken & Bacon featuring Hot Ones Classic Garlic Fresno; Smoky Green Chile Cheesesteak with Hot Ones Los Calientes Verde; Hot Habanero Pepperoni and Sausage featuring Hot Ones Los Calientes Rojo; and Fiery Hot Pepperoni featuring Hot Ones The Last Dab: Apollo — the hottest Hot Pocket on the market. The first three products come with a SRP of $3.29, while the last one will be available exclusively via Gopuff for a SRP of $5.49. NESTLÉ USA • SOLON, OHIO • GOODNES.COM/HOT-POCKETS/HOT-ONES

AMIN.O. Energy Rebranding Optimum Nutrition unveils new branding for its AMIN.O. Energy beverage line. The rebrand is designed to strengthen the taste appeal and cues of its eight fruit flavors; emphasize the drinks’ key product claims including electrolytes, 5 grams of amino acids, zero grams of sugar, and 100 milligrams of caffeine from natural sources; and create a visible brand block to improve recognition at shelf. The company noted that over the past six months, AMIN.O. Energy has gained nearly 7,000 new doors within the convenience and grocery channels. OPTIMUM NUTRITION • DOWNERS GROVE, ILL. • OPTIMUMNUTRITION.COM/EN-US

Takis Dragon Sweet Chili Barcel USA introduces its latest Takis flavor innovation, Dragon Sweet Chili. A 2022 Canadian Product of the Year winner, the new variety features the rolled tortilla chip’s classic intensity underlined with sweet heat to create a sweet and spicy flavor combination. As part of its continued partnership with TerraCycle, all Takis Dragon Sweet Chili packaging can be recycled. Customers may do so by either creating an account on TerraCycle.com, signing up for the Takis Snacks Free Recycling Program or mailing in their Takis packaging with the provided prepaid shipping label. BARCEL USA • COPPELL, TEXAS • BARCEL-USA.COM/TAKIS

P97 Digital Offer Network P97’s Digital Offer Network enables advertisers and marketers to distribute targeted offers and promotions to consumers across various digital channels. The solution aims to provide a more efficient and effective way for advertisers and marketers to engage with their target audience and drive conversions. The network enables brands to access online tools to configure or upload bulk offers at scale on retailers’ apps and other digital properties to create consumer awareness and interest; allows consumers to redeem offers via a quick scan at the point of sale; and lets the offer network facilitate rapid settlement of funds from the sponsoring brand to the retailer. P97 NETWORKS • HOUSTON • P97.COM

CPI Paypod Compact Crane Payment Innovations (CPI) debuts a new cash automation solution, Paypod Compact. The latest addition to the company’s portfolio of automated cash management solutions is equipped with CPI note and coin acceptors; automates cash acceptance; and can potentially minimize wait times for all customers, not only those paying with cash, card or digital wallet. Being a front-access solution compared to its rear-access and tabletop predecessors, the Paypod Compact can be more easily integrated into multiple applications while maximizing available floor space for retailers, according to the company. CRANE PAYMENT INNOVATIONS • MALVERN, PA. • CRANEPI.COM/EN

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SMALL OPERATOR

Can You Have a Seat at the Table If There Is No Table? To stay ahead of changes, you must closely observe your customers, community and competitors

By Roy Strasburger, CEO, StrasGlobal

YOU NEED TO VISIT BEND, ORE.

Momentous shifts in history are often memorialized in museums, on battlefields, or inscribed on historical markers along the road. For every epic triumph or success, there is usually a corresponding tragic defeat or humbled also-ran. Often, for astute students of history, more can be learned from the tragedies than from the triumphs. Bend is famously the location of the last remaining Blockbuster video rental store. In its heyday, Blockbuster had more than 9,000 locations around the world. It was, without a doubt, the behemoth of at-home entertainment and pundits predicted that Blockbuster would put movie theaters out of business. However, the Blockbuster of old is the posterchild for what happens when your industry is disrupted and you don’t adapt accordingly. Blockbuster’s dominant position was initially assaulted by Netflix providing DVDs through the mail (remember those?) and then by online companies such as cable providers, Hulu and Netflix (again) offering movies on demand. No longer did you have to wait for your favorite movie to be shown at a set time on a TV channel or rummage through the leftover video tapes and DVDs at your

local rental store — not to mention having the joy of rushing to return them to avoid late charges. The stories of Blockbuster, Kodak (camera film), Nokia and Blackberry (flip phones and communication devices), and MapQuest (personalized maps) are the punchline of often-told case studies. Looking back, we can see where these companies missed their opportunities or made the wrong strategic decision. But hindsight is 20/20. It is much more difficult to recognize these changes in real time. But what if there was something even more insidious than these examples? All of the companies mentioned above were left behind because of a change in technology that was either counter to their established business models or they felt it was just a “flash in the pan” that would never last. We can mark the day that Netflix opened for business and when the first smartphone was introduced. What about the disruption that is never announced? Let’s consider the furniture industry — I know, this is a bit off tangent, but stay with me. The manufacturers and sellers of old-style furniture, the kind you hand down from generation to generation (or at least give to your kids for their first apartment or house) are having a hard time.

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But it is not all about the money. According to a survey done by Architectural Digest in June 2023, 39 percent of Generation Z and millennials are planning on moving in 2023 and most only expect to be in a place for two years. Because of the frequency of their moves, these people travel light. Whereas buying a bedroom set was once considered an investment in heirloom furniture, this group either rents their furniture or buys inexpensive pieces from retailers such as Ikea and disposes of them when they leave. The demand for cheap, disposable furniture puts pressure on manufacturers to lower costs, which leads to less durable furniture, which leads to it being left on the curb when the moving van leaves. I don’t know if this is going to be a long-term trend or not, but if you are the maker of fine solid pine furniture, you would not have seen the “aha” moment when things started to change. You would have noticed a gradual decline in sales, which might ultimately lead to financial straits — and becoming the Idanäs* on the side of the road. So, how does this relate to your convenience store? Both of these examples apply to your business. You are going to see when the Blockbuster-style technology shift happens. In fact, you are already seeing it. Electric vehicles (EVs) are here, and their use will continue to grow and have an impact on your business, especially if you sell fuel. It won’t happen overnight. Netflix started in 1997 and Blockbuster didn’t declare bankruptcy until 2010. The good news is that you have time to change and adapt your business. The Vision Group Network (tvgsolutions.com) has put out three Vision Reports talking about the business case around EV charging. To be successful, you need to have a charging program that is fair to you, an equipment provider that will reliably maintain the chargers, and a store offer that will attract

These changes are not the result of a change in technology. They happened because customer demand and spending habits changed. Several things are in play here. Inflation has had an impact. As fine furniture becomes more expensive, first-home buyers are feeling the pinch between interest rate increases and the reactivated burden of student loan debt. Rising house prices and rents also mean that people are living longer with their parents. All of these things make sense and are the obvious impacts of the current economic condition.

customers so that they will spend time and money in your store while they charge their vehicle.

C-

As reported in The Hustle, Hooker Furnishing, a manufacturer that sells furniture to Wayfair, Macy’s and others, reported that its second-quarter 2023 revenues fell by 36 percent. Luxury furniture brand Restoration Hardware saw a 19 percent sales drop in Q2. And Noble House Home Furnishings, which supplies furniture to Amazon and Target, recently filed for bankruptcy.

RE RES

But beware, the furniture example is much more difficult to detect. In order to stay ahead of changes, you need to observe your customers, your community and your competitors very closely and react to changes in human behavior, not technology changes. Let’s start with your customers: What are they buying? How often are they buying it? What do they ask for? And what products complement those items? For example, if your customers are buying prepackaged sandwiches on a regular basis, should you be offering prepackaged salads or pasta dishes, or even start an in-house made-to-order sandwich program? The same with coffee purchases. Are you offering flavors? Should you put in a cappuccino machine or a bean-to-cup program that makes a fresh cup each time? Or should you go out on a limb and put in a Boba Tea offer before one pops up across the road? Watch closely how your community is evolving. Are your regular customers having kids or becoming empty nesters? Are more people moving into the neighborhood and do they have different ethnic or cultural tastes? Are there more people in your area that have special needs or are housebound who would benefit from a home delivery service? Your customer base is always changing and you need to be aware of it. Targeted ads and social media influencers can change your customers’ buying habits without you being aware of it. We are no longer influenced by the same TV shows, radio stations or magazines. You have to be aware of what your customers want. Finally, watch what other businesses in your area are doing. Keep in mind that your competition is not just the convenience store across the street, but your local grocery store, drugstore, coffee shop and bakery, as well as online platforms such as Uber Eats, DoorDash and Instacart. Visit your physical competitors at least once a month to see what they are selling and promoting — they may be seeing things that you’ve missed. Check the online platforms once a week to see what specials they are promoting, what type of food or product they are spotlighting, and follow your competitors’ Instagram accounts. A good idea not copied is a good idea wasted. Change happens, but don’t be left behind. You don’t have to be that lonely Idanäs*. Skål! CSN *Idanäs is a model of table available at Ikea.

Roy Strasburger is CEO of StrasGlobal, a privately held retail consulting, operations and management provider serving the small-format retail industry nationwide. StrasGlobal operates retail locations for companies that don’t have the desire, expertise or infrastructure to operate them. Learn more at strasglobal.com. Strasburger is also cofounder of Vision Group Network, whose members discuss future trends, challenges and opportunities, and then share with all retailers and suppliers, regardless of the size of their business. Editor’s note: The opinions expressed in this article are the author’s and do not necessarily reflect the views of Convenience Store News. 22 Convenience Store News C S N E W S . c o m

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THE ART OF ASKING QUESTIONS

RETAILER EXECUTIVE OF THE YEAR ANDREW CLYDE MAKES SURE ALL VOICES ARE HEARD AT MURPHY USA BY L I N DA L I SA N T I MURPHY USA INC. President and CEO Andrew Clyde asks a

lot of questions and encourages his team to do the same. It is at the very core of his leadership style. He admits that when he first took the reins of the El Dorado, Ark.-based organization in January 2013, his fondness for asking questions took some getting used to among his new team members, but once they recognized there was good intent behind his questions and began to see how the insights gleaned formed into new ways of thinking and working, it started to become contagious. “When you sit down and ask a store manager or a district manager or someone who's been with the organization a long time how something works or how something could be better, the first thing you do is let them know you care about their opinion. Then, when you ask two or three follow-up questions, they realize, ‘Oh, you're really curious about this. You may actually do something about this.’ All of a sudden, they start telling you everything they know because they know so much about it and they've just been waiting for someone to ask,” he said. Asking questions has served Clyde well in guiding Murphy USA to impressive results since its spinoff into a standalone public company a decade ago. During his tenure, Murphy USA has seen earnings grow fourfold, leading to a 600 percent return to shareholders over the period. The company, which employs nearly 15,000 team members, had annual revenues of more than $23 billion in 2022.

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Under his leadership, Murphy USA has also expanded its network to 1,700-plus stores in 27 states across the Southwest, Southeast, Midwest and Northeast United States, growing close to 50 percent through new stores and its 2021 acquisition of 157 QuickChek stores in New Jersey and New York. Today, Murphy USA is one of the largest independent retailers of gasoline products and convenience store merchandise in the U.S. In addition to new store growth, it is rapidly rebuilding its legacy network of kiosks in front of Walmart Supercenters. This month, Clyde will be honored with the 2023 Convenience Store News Retailer Executive of the Year award, which recognizes a c-store retailer executive who exemplifies leadership, business acumen, dedication to the convenience channel and commitment to community service. The winner is chosen by a blue-ribbon panel of convenience channel executives that includes past Retailer Executive of the Year winners, and past retailer and supplier inductees in the CSNews Hall of Fame. In an industry with so much innovation and so many outstanding leaders, Clyde said “it is truly an honor” to be considered in their company, and always special to be recognized by peers. Of course, any recognition like this is really a tribute to the outstanding team that makes it happen, he noted. “Often, I like to think of my title as the chief storyteller. As a publicly traded company, we obviously have to communicate a little bit more than the private firms and thanks to our team, I always have an endless supply of accomplishments to share as we work toward achieving our ultimate potential,” he said. “So, I can't thank them enough for making it possible.”

Establishing a Shared Vision When Clyde took charge of Murphy USA 10 years ago, the company was at an inflection point. “I would describe it as having great locations mostly in front of Walmart supercenters. However, these small, undersized assets were aging, our unit costs were rising, and our traditional growth opportunities building in front of Walmarts were dwindling. The everyday low price value proposition was being

Murphy USA is one of the largest independent retailers of gasoline products and c-store merchandise in the U.S., with 1,700-plus stores in 27 states.

threatened by more competitors and promotional intensity with loyalty programs, which we didn't have. There was also a leadership challenge in that there were quite different views before the spin on what the Murphy USA strategy should be and the direction the company should take,” he recalled. Prior to joining Murphy USA, Clyde spent 20 years at the management consulting firm Booz & Co., formerly Booz Allen Hamilton, where he led the Dallas office and the North American Energy Practice. He served energy clients in more than 30 countries on six of the seven continents, while also serving multiple not-for-profit organizations.

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Over the past decade, Murphy USA has grown its network, growing close to 50 percent through new stores and its 2021 acquisition of 157 QuickChek stores in New Jersey and New York.

Those challenges, however, played into his strengths and upon becoming CEO, Clyde immediately drew on his experience as a former consultant in terms of setting strategic objectives, framing the path to achieve potential, and aligning the team toward a common set of goals. The five strategic pillars established at that time still guide the company today: • Grow organically; • Diversify merchandise mix; • Sustain cost leadership; • Create advantage from market volatility; and • Invest for the long term.

One of those clients was Murphy USA. For a few years before the spinoff, Clyde served as a consultant to the company and during that time, he recognized that the organization had “incredible potential.” Its value proposition to the customer was clear, yet it needed to be honed and refined with greater discipline and sophistication, he recounted. “You had these incredibly hardworking store associates who are working their tails off, but they lack common practices, modern technology and consistent leadership. And at the home office, this lack of a shared strategic vision and overarching purpose created a lot of uncertainty, especially in the context of the spinoff from the parent company. So, that was kind of the environment I stepped into,” he explained.

“While they've evolved, we still speak to the same core five objectives we articulated to investors when we spun off. And that continuity — a decade of that continuity — brings a level of confidence to an organization that had endured multiple changes in leadership and direction before the spin,” said Clyde, noting that the team members who led the company through its early campaigns are now the ones leading the organization, and they are resetting the company's potential through the capabilities they have developed. He acknowledges that the idea of change was “a little hard at first,” but said the early

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COVER STORY

wins helped build confidence. Today, the Murphy USA team embraces the need for continuous improvement, as well as change, given the highly competitive and volatile nature of its business. “This is a really competitive industry we're in and it's always changing and so, we have to keep up,” the chief executive remarked. “…We work hard, we play hard, and we win together.”

Winning With the Value Customer Reflecting on his tenure so far, the Retailer Executive of the Year says he’s most proud of the way the organization has embraced its differences and committed to “playing our unique game,” rather than trying to be a me-too or just following the herd. Murphy USA distinguishes itself in the convenience and fuel retailing industry with its everyday low price value proposition. From its conservative balance sheet to the promotional sophistication of its new loyalty programs to the precision with which it sets prices, the retailer’s entire business model is designed, set up and optimized to win with the value customer regardless of the current environment. “One of the things I love most about our industry is there's multiple different ways to play strategically and win, and that creates a lot of different opportunities to differentiate. Our organization is absolutely passionate about delivering affordability to our customers and doing it in the most responsible ways,” Clyde said. “It's all about affordability, and then winning with the customers helps us win with our suppliers, and that fuels employee engagement, which in turn

THE FIVE STRATEGIC PILLARS OF MURPHY USA • Grow organically • Diversify merchandise mix • Sustain cost leadership • Create advantage from market volatility • Invest for the long term

“I want people to speak up and I want to make sure their voice is heard, especially our store associates and field leaders.” — ANDREW CLYDE, MURPHY USA INC.

creates the opportunity to give more back to our communities and to our shareholders. “Unfortunately, more Americans are living paycheck to paycheck than ever before. So, I'll tell you what, I guess what I'm most proud of is leading the organization to define our unique way to play and win in that space, and doing it the right way,” he continued. Clyde doesn’t ever foresee value going out of style. “The customer segment that always grows and disrupts the industry is the value segment,” he said. “And then, the value segment finds ways to deliver the same service at the same quality and it raises the bar for expectations. So, that's really our goal. If we can deliver value with great service and great products, we're going to be able to continue to grow.”

Staying the Course As for what’s next for Clyde and Murphy USA, it’s continuing further down the path of the last decade. It’s working on a new set of campaigns to achieve the next wave of potential for the business. It’s evolving its store formats and the offers within to keep up with the times. It’s staying focused on serving that large and growing segment of customers living paycheck to paycheck. It’s also continuing to ask questions and make sure all voices are heard at Murphy USA. “I want people to speak up and I want to make sure their voice is heard, especially our store associates and field leaders. I really expect our leaders to be effective in raising the voices of their teams, while also cascading leadership messages to their teams,” Clyde said. To collect feedback, the company recently completed its annual engagement survey, which once again had record participation at well over 80 percent of the organization. But even more importantly, Clyde stresses the importance of being out in the field and asking what's working, what's not, and creating that open environment where people share. “I think we remain humble knowing that what got us here today may not be everything we need for the future,” he said. “And so we're constantly asking ourselves that question: How do we need to get better? Where do we need to grow? What do we need to do differently?” CSN

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FEATURE

CONVENIENCE’S UP-AND-COMERS The 2023 class of Future Leaders in Convenience is the largest yet By Angela Hanson, Amanda Koprowski & Danielle Romano WITH THE PACE of innovation in the convenience

The 2023 Future Leaders in Convenience are:

store industry accelerating, companies more than ever need smart, capable leaders to help their businesses meet the times. Enter, the 2023 class of Future Leaders in Convenience (FLIC). Now in its sixth year, the goal of the FLIC program is to celebrate and help develop the next generation of c-store industry leaders by providing a forum for talented young businesspeople to hone their leadership skills, while recognizing the achievements of a select few emerging leaders. The FLIC awards recognize young people (aged 35 and under) working in the convenience channel who are already making significant positive contributions to their companies and the industry at large. The winners were chosen based on nominations received from their companies and peers that highlighted achievements made between Jan. 1, 2022 and April 30, 2023.

Gretchen Akers

Category Manager, Beer West 7-Eleven Inc. • Akers supports store operations by determining product promotions that offer customers strategic pricing and assortment in the beer category. She is responsible for the largest geography and revenue contribution across the entire Alcohol Team at 7-Eleven. • She joined the company in 2020 as a product development manager for private brands, where she developed innovative products across the portfolio. Akers was promoted to her current role in 2022. Prior to joining 7-Eleven, the FLIC honoree spent seven years in the food and beverage industry in product development, marketing and merchandising. • Akers is a member of the 7-Eleven Young Professionals group and the 7-Eleven Network of Women. Additionally, she is a Level Two Certified Tea Craftsman and formerly a Certified Coffee Q Grader.

This year’s class of Future Leaders in Convenience is the largest yet, comprised of 36 rising stars from 29 convenience store industry retailer, distributor and supplier companies. These up-and-comers will be honored at the sixth-annual Future Leaders in Convenience Summit, to be held Nov. 16 in Pittsburgh.

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owned by franchisees, as well as peers across the organization. She excels in leadership, specializing in both people and project management. She collaborates closely with area leaders and franchisees, providing motivation, coaching, training and overall leadership development. • In her role, she conducts comprehensive analyses of sales data, market trends and competitive activities to formulate strategies aimed at increasing sales, enhancing profitability and elevating the overall customer experience. • Aucapina’s journey at 7-Eleven began 12 years ago as a cashier in a corporate store in Queens, N.Y. During her tenure, she successfully introduced the Made to Cook Breakfast program, implementing it in corporate stores across New York, New Jersey, Florida, Texas and California. She also orchestrated the launch of a specialty coffee program spanning more than 200 stores in California, Nevada, Utah, New York, New Jersey and Arizona, amid the challenging circumstances of the COVID-19 pandemic.

Makenna Callen

Trade Marketing Manager BeatBox Beverages • Callen oversees trade marketing initiatives for the wholesale and retail channels for BeatBox Beverages nationwide. This encompasses the development, creation and execution of campaigns that highlight new markets/states of distribution, new product launches and new packaging. • Under her direction, the company has launched multiple nationwide campaigns that introduced specific versions of BeatBox to new markets and to major convenience store chains. She holds the Level 2 Award for Wine & Spirits from the Wine and Spirits Education Trust, with distinction. • Callen started her career as a sales representative before being promoted to district manager at Southern Glazer’s Wine and Spirits, where she was tasked with overseeing 7-Eleven as one of her largest accounts. From there, she expanded her levels of responsibility, becoming market development manager at Barefoot Wine prior to her current role at BeatBox.

Austyn Chivington District Manager High’s

• Chivington has direct oversight of nine High’s convenience stores, with an emphasis on

growing same-store sales, fostering a superior customer service culture, mentoring and training, and controlling expenses. In addition to these tasks, he plays a key role in loss prevention and inventory management, and works alongside the food development team to ensure his sites provide a fresh and fast food offering. • He became a part of the High’s family when he joined parent company Carroll Motor Fuels as an area manager. Having doubled the gallon output in his territory in one year, Chivington was promoted to High's as a district manager. • Within the first year of this role, he has managed to develop top performance in customer service shops, loyalty rankings and overall sales growth. He recently received his category management certification through NACS.

Jamie Cousart

Vice President, Sales & Customer Leadership, Convenience Retail, North America Operating Unit The Coca-Cola Co. • Cousart’s responsibilities fall into four main categories: managing relationships with key convenience retail customers, collaborating with system bottling partners, influencing the development of company channel strategies, and driving alignment and execution across various internal stakeholders to achieve growth and success in the convenience retail sector for The Coca-Cola Co. • He was appointed to help develop the evolution of immediate consumption packaging for Coca-Cola’s trademark brands within the convenience channel. By introducing a fresh approach and piloting occasion-based packaging lineups, Cousart helped address retailers' desire to drive recruitment and personalized experience in outlets. • During his 15-year career with Coca-Cola, he has been a multiyear “Best of the Best” sales performance incentive winner and was elected to represent the Coca-Cola Convenience Retail Team on the National Retail Sales Engagement Council.

Joshua Eggen

Director, Fuel Supply & Trading, North America Alimentation Couche-Tard Inc./Circle K • Eggen manages the longterm fuel sourcing decisions and strategies for Alimentation Couche-Tard Inc.’s (ACT) U.S. footprint — which is 800 million gallons of fuel per month — in addition to supplier

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relationships and demand forecasting. He is also the lead for fuel rebrands, overseeing the transition of more than 1,000 sites to the Circle K fuel brand. • He has nearly a decade of experience with Circle K, starting his career as a fuel pricing/supply analyst in 2014 before being promoted to fuel supply manager for North America in 2017 as Circle K established its Global Fuels Department. In 2020, Eggen was elevated to director of fuel supply and trading as ACT set up a supply hub in Houston. • Eggen has completed the ACT Leadership Development Program and NACS Executive Leadership Program. He received the Spirit of Pride Leadership Award from Circle K, as well as the US Gas and Diesel Procurement, Supply Optimization and Trading Agreement Award for helping to establish the Musket Circle K partnership in 2020.

Tyler Grubbs

Executive Director of Store Systems & Technologies RaceTrac Inc. • Grubbs is accountable for all of the technology across RaceTrac and RaceWay’s nearly 800 convenience store locations. He champions investment to solve the company’s IT challenges, is responsible for 60 percent to 75 percent of the organization’s total IT spend, and maintains the uptime of more than 60,000 devices in the fleet to create a frictionless experience for team members and guests. • Under his direction, the RaceTrac IT team rolled out a new architecture that reduced critical hardware failures by 90 percent and noncritical device failures by 30 percent. In addition to these improvements, the chain experienced a 40 percent reduction in customer support tickets related to either hardware or software in-store. And, with fewer issues arising overall, the response time for addressing these tickets was reduced by 75 percent. • Grubbs is an active member of the Emory University MBA Alumni Group, where he contributes to the mentorship and professional development of MBA candidates and alumni.

Melissa Harbeck Marketing Manager Harbor Foods

• Harbeck executes Harbor Foods’ digital marketing strategy, which represents three corporate social media accounts and six consumer-facing brand accounts. Additionally, she manages corporate brand standards and marketing

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needs and assets for five distribution centers across the West Coast. • Among her accomplishments, Harbeck established a customer journey by identifying company touchpoints and working with executive leadership to create collateral to support the overall customer experience. She won Harbor’s prestigious President’s Club Award, which is given each year to team members who had outstanding performance the previous year and lived out the Harbor values of being genuine, motivated, resourceful and friendly in their day-to-day work. • Harbeck is also recognized for establishing and leading a DEI Committee that implements and oversees diversity, equity and inclusion practices and training.

Shelby Harrison

The

Perfect Stuffer!

Regional Operations Director in Training Alimentation Couche-Tard Inc./Circle K • Harrison is the regional director of operations in training for ACT’s Florida Business Unit. In this role, she oversees the day-to-day operations of more than 80 stores, encompassing more than 700 team members. She consistently has the No. 1 region in sales lift and has helped reduce turnover by nearly 44 percent. • In her nearly seven years with Circle K, Harrison has had two relocations into two different business units, and has successfully overseen two markets with more than 30 stores, and prepared ride-along training for potential store manager development. • Harrison is active in the Diversity & Inclusion Committee for the Florida Business Unit. As a member of the LGBTQ+ community, she also belongs to ACT’s PRIDE business resource group and is a member of the ACT Women's Council.

Robinson Hunt

Vice President of Operations DBH Distributing & Hunt Brothers Pizza • Hunt is a third-generation member of the family business. After previously serving as director for the largest master distributor of Hunt Brothers Pizza, DBH Distributing, he was recently promoted to vice president of operations for both DBH Distributing and Hunt Brothers Pizza. • In his new role, Hunt continues to serve in a leadership position across sales, operations,

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supply chain, distributor support, human resources and community outreach for DBH Distributing, while also now overseeing purchasing, IT and human resources for Hunt Brothers Pizza. DBH Distributing’s geographic area spans more than 4,500 locations in nine states and eight countries, while Hunt Brothers Pizza partners with more than 9,000 locations in 32 states nationwide. • Hunt exceeded the requirement to work at least two years outside of the company prior to joining the family business by spending four years with the Nashville Entrepreneur Center. During his tenure with the organization, he managed and formalized industry-specific programs and a mentor network.

Ankush Kamboj Chief Strategy Officer KFT Holdings LLC

• Kamboj has his hands in multiple brands across different companies. He oversees site development and procurement, design, organizational development and technological infrastructure for Millbrook Markets; and is responsible for marketing and the dayto-day operations of Millbrook Markets, an Eddy Express Car Wash and two quick-service restaurant concepts. • According to his nominator, Kamboj is a connector and brings a varied skillset to the table, helping bridge the gap between foodservice and convenience to provide a different experience to customers. Through his efforts, KFT has increased its margins by roughly 15 percent on an annual basis since 2018. • Additionally, he is codirector of KFT’s Denny’s restaurant locations. His group was a runner-up for the 2019 Denny’s Franchisee of the Year award. Kamboj is a member of NACS and the International Council of Shopping Centers as well.

Eli Kaminsky

Shopper Marketing Manager, Small Format Anheuser-Busch • Kaminsky has spent the past year leading the charge on three of Anheuser-Busch’s (AB) national c-store accounts: Circle K, EG America and GPM Investments LLC. He develops retailer-specific shopper marketing program strategies, owns shopper programming on a national scale, and oversees a robust media budget to support these accounts. • According to his nominator, Kaminsky has

been critical in evolving AB’s shopper marketing program for the convenience channel, which has resulted in positive impacts across sales, volume and share. He recently earned the Effie Marketing Effectiveness Certification from the Effie Marketing Academy. • Prior to joining AB two years ago, Kaminsky spent five years at L’Oreal partnering with the brand marketing, shopping marketing, ecommerce and field sales teams to develop and lead omnichannel sell-in and sell-out strategies at key accounts across multiple channels.

Daniel Kerekes Accountant S&G Stores

• Kerekes’ responsibilities include A/P and A/R reconciliations, bank reconciliations, general ledger maintenance, rebate billing and accruals, inventory tracking, and other related duties. He also acts in a business analyst role in support of senior leadership and generates key KPIs. • He built his background in accounting and finance while working in a full-time accounting role while attending college, leading him to become the youngest person to attend S&G Stores’ regular senior executive team meetings. • According to his nominator, Kerekes has a keen eye and attention to detail when it comes to identifying key store issues, and he is well respected by both his coworkers and the executive team that frequently relies upon his reporting.

Leanna Klingensmith Assistant Category Manager Yesway

• Klingensmith oversees all aspects of beer pricing and promotions for the entire Yesway chain while managing price labels across stores, implementing electronic invoicing and collaborating closely with the merchandising team. • Having started her c-store industry journey with Allsup’s as a pricebook administrator prior to the chain’s acquisition by Yesway, Klingensmith contributed to the companies’ rapid integration post-merger and assumed a leadership role in an area important to overall profitability. • Both pricebook integrity and invoicing for beer distributors improved dramatically under her watch. Known as a quick study, Klingensmith continues to drive profitable results in category management and serves as a team player who

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Danielle LaGuardia

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We proudly celebrate our Top Women in Convenience and the integral role they play within our industry.

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works with multiple departments to ensure things run smoothly and correctly.

Pascal Kriesche Founder & CEO Smoodi Inc.

• Already a seasoned industrial goods professional with a successful career in development and consulting within the global industrial goods sectors, Kriesche cofounded smoodi in 2018 out of Harvard’s Innovation Lab. His vision is to make nutritious food both convenient and universally accessible. • Drawing from his MBA at Harvard Business School, his expertise in supply chain management and his mechanical engineering degree, Kriesche developed an innovative and proprietary automated all-fruit smoothie machine and the corresponding supply chain. Since its commercial market launch in 2021, smoodi has grown its revenue by 25 percent month over month. • Kriesche remains a key driver behind smoodi’s success, further establishing himself as a forward-thinking leader, while mentoring upcoming entrepreneurs.

Thomas Mathewes Real Estate Project Manager Parker’s

• Mathewes is responsible for site acquisition and entitlement, and negotiating contracts and leases for new development and surplus property disposition. He is currently overseeing Parker’s expansion into multiple key markets, including Augusta, Ga., and Myrtle Beach, S.C., with more than 40 sites in the pipeline for acquisition. • Since joining Parker’s in 2018, Mathewes has expertly negotiated $40 million in contracts and leases for new developments, played a critical role in the company’s strategic expansion into new and existing markets, and assisted with finding innovative ways to develop a stronger foothold in the Charleston, S.C., market. • Mathewes is an innovative and dynamic leader who builds relationships with local stakeholders while also serving as a quintessential team player who expertly juggles multiple projects, his nominator noted.

trade show planning and execution at Imperial Trading, where she also maintains the marketing budget for annual programs and is the graphic designer for all in-house design needs and trade show materials. • Known as a rising leader, she previously rolled out and led an internal initiative to attract and retain top talent, and changed the company’s overly long mission statement to a two-word mantra that employees live and breathe daily: “Bring it!” • In addition to her marketing efforts, Windon Matthews is breaking down barriers around DEI in the c-store industry. She fosters strong partnerships with Southern University at New Orleans and Xavier University of Louisiana, and is a hands-on mentor to the student interns she brings on throughout the school year.

Kyle May

Director of External Relations Reynolds American Inc. • May leads Reynolds’ customer and association management for the Northeast and Midwest regions of the country. He is directly responsible for nearly 75 trade associations and involved with multiple industrywide company initiatives, such as TruAge and WeCard. • In his current role, May is commonly required to work above his job level to ensure that prioritization of legislative activity remains at the highest level, and he regularly acts as a conduit of information for the entirety of Reynolds’ internal marketing department. • May consistently delivers above expectations and has received multiple internal awards. He is known for being dependable and trustworthy, and is someone who is not afraid to make his perspective known regardless of the audience, according to his nominator.

Adam McGowen Senior National Account Manager McLane Co. Inc.

Stacey Windon Matthews

• McGowen manages a 17-person team at McLane that handles all day-to-day and long-term projects for the Circle K account nationwide, a $6 billion customer in volume. This includes managing the nine Circle K business units serviced by 14 McLane distribution centers, with more than 5,000 deliveries each week.

• Windon Matthews oversees

• During his 10 years with McLane, McGowen has successfully managed a variety of both independent and nationwide retailers, and created

Marketing Manager Imperial Trading Co.

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It’s Only the Start. We are excited to see your careers thrive! Congratulations to all of the members of Future Leaders in Convenience on behalf of the proud founding sponsor, Reynolds Marketing Services Company.

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a robust talent pipeline that has been modeled in other departments across the company. • He runs the sales internship program and has received multiple company awards over the years. McGowen is known as a key leader at McLane who is expected to move the company forward as his career progresses.

Emily Meckstroth Category Manager Ferrera Candy Co.

• Meckstroth supports Ferrara’s largest sales pillar that is focused on convenience retailers across the country. She manages 13 accounts, including six Circle K business units and seven national retailers. Additionally, Meckstroth serves as a hands-on mentor to Ferrara’s summer interns. • She is known for delivering proactive insights that deliver category growth and elevate her c-store customers. She identifies marketplace gaps and actionable macro trends, making key assortment and merchandising recommendations and more. • Meckstroth is a crucial cross-functional team member who leads with integrity, her nominator said, and has demonstrated her commitment to helping grow young individuals within the industry. In 2023, she was recognized as a Ferrara Value Award winner for integrity, as she truly leads with this value in her work.

Justin Navolanic

National Category Manager Advantage Sales & Marketing (R Squared Solutions) • Navolanic oversees category management functions for the Mars Wrigley headquarters team consisting of 40-plus customer managers in more than 15,000 stores responsible for $230 million, with responsibilities that include planogram analysis, best-in-class merchandising implementation and data analytics creation. • His scope of responsibility has continually increased throughout his time with Advantage, where he takes the lead in developing customerfacing category management recommendations. He was named a category captain at an additional six retailers this year. • Navolanic’s nominator describes him as “the most progressive leader in the broker category manager space who offers a great understanding of the retail environment and is deeply trusted by his customers.”

T.J. Noonan

Head of Business Development Alimentation Couche-Tard Inc./Circle K • Noonan leads strategic partnerships and acquisitions at Circle K, where his work includes building comprehensive plans to identify acquisition opportunities that complement both existing geographies and the company’s core capabilities. • He enjoys collaborating with colleagues and shaping the company's future alongside leadership. Since joining Circle K, he has already worked side by side with senior leadership to acquire numerous businesses, develop strategies, and gain the respect and trust of many key stakeholders across North America. • According to his employer, Noonan is a true testament to the company’s “growing together” vision as he strives to fulfill the retailer’s mission to become the world’s preferred destination for convenience and mobility.

Zachary Parr

Convenience Operations Supervisor Lassus Bros Oil Inc. • Parr began his career with Lassus Bros Oil as a customer service representative before quickly making his way up the ladder to his current role, where he directly oversees operations and leadership of eight managers and one district coordinator. • Since his most recent promotion, Parr has grown his district’s sales, improved its turnover, and “done a phenomenal job developing his team,” according to his nominator. He has developed many new managers and was instrumental in the success of the company’s most recent newbuild store. • Parr strives to operate in his position through servant leadership, expressing to his team that he works for them rather than the other way around.

Wilson Raetzsch

Purchasing Manager/ Operations Support Specialist Lyons Specialty Co. • A fourth-generation member of the Lyons family, Raetzsch has spent nearly a decade learning the business from the ground up. As part of the purchasing department, he works as a buyer and

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category manager for cigarettes and tobacco. • Known as a knowledgeable observer, Raetzsch is able to easily recognize opportunities for improvements and make recommendations to improve efficiencies while reducing operational costs. Recently, he improved day-to-day processes in the warehouse. • Raetzsch believes patience and flexibility are important qualities of a leader. According to his nominator, he provides an example of hard work and commitment to everyone he interacts with and is destined to be a true leader for years to come.

Jade Reddington Vice President of Sales, Convenience & Specialty Channels Ferrara Candy Co.

• Reddington develops and executes Ferrara’s channelspecific strategies for the company’s largest sales pillar. She has more than 14 years of experience in the convenience channel, having worked in different organizations and multiple roles in areas such as analytics, category management, sales, strategy and customer marketing. • According to her nominator, Reddington’s contributions to not only Ferrara, but the entire confectionery category, are what make her qualified for this award. She builds trusted relationships with internal and external partners by trying to drive the category for all. • Reddington views three qualities as essential for future leaders: determination, character, and maintaining a vision of the future to ensure one keeps asking for more while bringing everyone else along on the journey. The FLIC honoree will earn her MBA at the Northwestern Kellogg School of Business by the end of 2023.

Jenna Reiman

Director, Human Resources Business Partner Casey’s General Stores Inc. • Reiman provides human resources support and partnership to the nonstore field operations side of Casey's, which encompasses service, construction, distribution, real estate, transportation, fuel and other functions. • As her nominator pointed out, Reiman and her team continue to steadily build year-over-year advancements in the team member experience across functions that have traditionally been underserved. She was honored with the Store

Supper Center Partner of the Year award at Casey’s 2023 Annual Conference for her contributions in 2022. • While her career has been consistently rooted in people operations, Casey's is the first c-store company Reiman has worked for, having spent most of her career in hospitality. She relies on her guest service background to strengthen her impact with the variety of leaders she partners with to improve the team member experience at Casey’s.

Clint Sherwood

Data Engineering Manager Casey’s General Stores Inc. • Sherwood is responsible for enterprise data platforms, data engineering, data architecture and data governance in support of Casey’s stakeholders across the business. His role encompasses acting as a people leader, a strategic partner, a technical advisor to his peers in data and technology, and a mentor to those on his team. • He started his career at Casey’s as an individual contributor before rising through the ranks to become one of the company’s thought leaders and technical experts. As his team has matured, he has grown into his leadership position and helped shape the data landscape for Casey’s, according to his nominator. • Sherwood is a graduate of Casey’s Leadership Excellence Program and was selected to represent the Data & Analytics Team as part of the Casey’s Commitment Conference, held earlier this year.

Michael Silver

Payments Fraud Strategy Analyst, Treasury 7-Eleven Inc. • Silver, who served five years in the U.S. Marine Corps, joined 7-Eleven in 2020. He acts as the principal analyst leading efforts for payments fraud strategy at 7-Eleven stores across the United States and Canada. • Not only has he established himself as one of the brightest minds in digital payments, driving dynamic new approaches to payments fraud management internally at 7-Eleven, but he is also recognized as a leading voice for a new generation of payments professionals in the convenience and merchant industries, his nominator noted. • Silver is an active Certified Fraud Examiner.

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He is also a member of the International Association of Financial Crimes Investigators, National Petroleum Card Association, and co-merchant leader for Pay-Tech, a special interest group within the Merchant Advisory Group. He was a speaker at the 2023 Merchant Risk Council Conference.

Corey Stump

Category Manager & Regional Director Childers Oil Co./Double Kwik • Stump began his career in the c-store industry as a Double Kwik associate while attending the University of Pikeville. A combination of hard work and determination led to his promotion to manager, and eventually to his current position as regional director and category manager for the company. • According to his nominator, Stump’s influence and contribution to Double Kwik can be found in every department and positively impacts every employee. • He is a member of the 2023 class of the Patton Leadership Institute, a program designed to develop and enhance the leadership skills of emerging and existing leaders in southeast Kentucky. By the end of this year, Stump will also earn his MBA from the University of the Cumberlands in Kentucky.

Aubrey Thornock Senior Category Manager Maverik — Adventure's First Stop

• Overseeing the cigarettes, tobacco and kratom categories at Maverik, Thornock is known as a subject matter expert on loyalty with agerestricted items. During her tenure, she has executed formal schematics and streamlined pricing structures, which created significant positive impacts on operations. • She was recognized as a 2023 Category Manager of the Year for demonstrating innovative and growth-oriented leadership while working within a continuously changing landscape of legislation for her categories. • Thornock — who previously held management positions at The Coca-Cola Co., Keurig Dr Pepper Inc. and Juul Labs — is a member of Maverik’s Loyalty Experience Committee and a member of the retailer’s Limitless employee resource group (ERG).

Justin Tisch

Senior Business Analyst National Convenience Distributors • A data-driven person by nature and passionate about solving complex problems, Tisch has been a part of the team at National Convenience Distributors (NCD) for two and a half years, moving into his current position in 2023. • Tisch, who received a B.S. in Mathematics, is credited with the implementation and success of a new product portal that has allowed the company’s procurement, sales and operations teams to analyze product information and measure product performance more easily. “This type of project is where Justin excels — being the bridge between technological design and function, and the real-world business demands they seek to meet,” his nominator said. • Tisch emphasizes the need for future leaders to actively listen to others while collaborating, understand the multiple perspectives and ways a problem can be solved, and visualize an idea before a framework is formed.

Elly Villescas

Business Development Manager, Convenience, National Accounts The J.M. Smucker Co. • Villescas currently focuses on the development of national and strategic accounts at J.M. Smucker, and is responsible for developing and leading business activities across the food, beverage and foodservice categories. When she accepted this role, she moved from the tobacco business to an influential role in food, demonstrating the versatility of her abilities, her nominator said. • Passionate about collaboration and strategic planning with customers, Villescas strives to lead with a coaching mindset in order to motivate, inspire and engage her team and deliver winning results for J.M. Smucker’s customers. • In December 2022, she joined the leadership team for the company’s Raíces ERG. She is also a member of the Women’s Foodservice Forum and NextUp’s Dallas chapter.

Katie Wetzel

Assortment Manager, Packaged Beverages Wawa Inc. • Wetzel joined Wawa in 2017

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Cheers to the top women in convenience Congratulations, Kathy and JoBeth! Thank you for dedicating your expertise, time and care to making our customers shine.

Kathy Williams Vice President National Retail Sales at The Coca-Cola Company WOMAN OF THE YEAR

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after working in the grocery channel and nonprofit sectors, and has risen quickly at the convenience store chain in just under five years. After spending a year supporting the retail space planning team as a category space planner, she transitioned to a category management role. • In her current position, Wetzel is responsible for managing and implementing procedures that help Wawa achieve its financial goals in her managed categories, which include nonalcoholic packaged beverages. • Wetzel is the membership and mentoring lead for the Women’s Alliance Wawa Innovation Network, an ERG focused on empowering women through professional development and networking opportunities. She also supports initiatives for the Wawa Associates in Need Fund.

Chad White

Foodservice Category Manager Rutter’s • White’s responsibilities encompass vendor management, contract negotiations and spearheading strategic initiatives for Rutter’s foodservice and dispensed beverage program. Under his direction, the program has achieved exceptional expansion while receiving recognition from the industry, including being named a 2023 Best Gas Station for Food by 10Best and the 2021 Foodservice Innovator of the Year and 2022 Cold & Frozen Beverages Innovator of the Year by Convenience Store News.

company. This included a stint as regional director of operations, where he led his team to achieve top company performance while improving work culture and reducing turnover. • During the past year, Woods received Casey’s Leader Excellence Certification. His nominator credits him with mentoring team members to their potential.

Mathew Wright

Director of Sales for Convenience That's it Nutrition LLC • Wright has worked on both the retail and manufacturing sides of the convenience store business, including holding roles in operations and support. In 2014, he joined Love’s Travel Stops, where for the next eight years, he climbed the ladder to become category manager of multiple categories. Taking that experience into his current role at That’s it Nutrition, he turned around the better-for-you company’s convenience business from declining sales to double-digit growth, outpacing category averages in just eight months. • Wright maintains interpersonal relationships with buyers and distributors, building strategic relationships and partnerships within the convenience store community, according to his nominator. • He anchors his leadership in three principles: honesty for accountability; confidence in decision making and adaptability; and active listening for effective communication. CSN

• White joined Rutter’s in 2013 with a degree in culinary art and restaurant management. Since then, he has taken on several roles within the company, including restaurant manager, foodservice quality assurance and dispensed beverage category manager. • The FLIC honoree was integral to developing Rutter’s online ordering platform, and is the chain’s lead chef for developing innovative limited-time offers.

Caleb Woods

Foodservice Commercialization Manager Casey’s General Stores Inc. • Woods oversees the implementation of new food programs, kitchen technology systems, equipment simplifications, and operational efficiencies including kitchen layout and process development. Additionally, he is responsible for leading kitchen acquisitions and coordinating Casey’s store support center and the field team. • Prior to taking on his current position in 2022, Woods served in various leadership roles within the 48 Convenience Store News C S N E W S . c o m

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GUIDE TO FOODSERVICE

COOKING UP A GAME PLAN

Success in convenience foodservice requires strategic thinking for today and years into the future By Angela Hanson IT’S NO SURPRISE that foodservice is critically important to success in the convenience store industry today — some even say it is the channel’s most important category. But as more retailers invest in prepared food and dispensed beverages and competition heats up, c-store operators everywhere are being pushed to define and refine their foodservice identities. Do they stand out from the crowd? Are their goals realistic? What’s the plan for the future?

There’s no turning back when it comes to foodservice, which has experienced two years of roughly 20 percent sales growth. But that growth won’t automatically benefit retailers that only make a token effort. C-store operators should already be strategizing for the future of their foodservice programs and

if they haven’t yet started, the next best time to do so is right now. “The future belongs to those who prepare for it today,” National Restaurant Association (NRA) President and CEO Michelle Korsmo said during her keynote speech at the 2023 NRA Show, which highlighted themes that apply equally well to retail foodservice as a whole and c-store foodservice in particular: Where is the industry now? Where is it going? How will it get there? Convenience stores everywhere — from small operators to large chains, from rural to urban markets — face numerous challenges as they seek to make a foodservice name for themselves and compete not just with each other, but also with fast-casual, quick-service

NOVE MB E R

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GUIDE TO FOODSERVICE

and other foodservice retailers for share of stomach. These challenges only grow when taking into account a tight labor market, rising ingredient costs and other difficulties. No c-store chain is above these challenges, but industry leaders have built their identities by identifying what they’re good at and leaning into that hard. This can be seen in the winning lineup of Convenience Store News’ 2023 Foodservice Innovators Awards, honoring a slate of retailers that carefully developed and decisively executed their foodservice plans. Foodservice Innovator of the Year Kum & Go, headquartered in Des Moines, Iowa, crafted a creative, cohesive new menu that met its goals for freshness and health before its acquisition by Salt Lake City-based Maverik — Adventure’s First Stop, while Prepared Foods Innovator of the Year Dash In Food Stores, based in La Plata, Md., pursued innovation across all dayparts while working within its operational limits. C-store operators that haven’t yet determined what they want their foodservice identity to be can look to a reliable source of inspiration: their customers. “Retailers who are looking to develop a distinctive foodservice identity should always start with the consumer,” said Kevin Smartt, CEO of Spicewood, Texas-based Texas Born (TXB). “You will quickly identify community needs, preferences, and ultimately gain their trust.”

Ongoing Innovation Advancing a foodservice agenda requires both clever strategy and operational practicality as c-stores balance what they want to do with what they currently can do and what their customers want them to do. One way that Tulsa, Okla.-based QuikTrip Corp. achieves this is through careful pursuit of innovation, which the company defines as “the process through which we turn strategy into new products or services,” Stephanie Hurt, head of food innovation and development for the convenience store chain, shared at the 2023 NACS Show. Hurt discussed how operational innovation can prompt “deep change” that can serve as a powerful competitive weapon in a way that mere operational improvements can’t. “Excellence in execution can win a close

game, but it can’t break the game wide open,” Hurt said. She advised c-store retailers to start new projects at the top, identifying overall purpose and vision before moving to specific goals, strategic plans, department strategy and objectives. “If you think about how you build a house, your house needs to be on a sturdy foundation and whenever you work on a project, you really need to link it all the way up, right? Because if not, when you get down to the end and it doesn’t fit your company’s strategy and sometimes it feels like it’s a little off, it’s probably because it is,” she said. “So, start high when you’re working on a project like this.” C-stores also can build their foodservice identities by focusing on offering a concise selection of high-quality, popular products rather than a menu that tries to be everything to everyone. Utilizing effective inventory management practices not only reduces waste and controls costs, but also reduces operational complexity and ensures faster service, Chad White, foodservice category manager at York, Pa.-based Rutter’s, said during the same NACS Show session. White offered a three-step approach to evaluating a c-store foodservice menu: • Reduce — Look at items in the top and bottom 20 percent of sales. Even popular items may not be worth keeping if they are overly complex to prepare and could be replaced by simpler, quality products. • Reuse — Proper cross-utilization of ingredients, such as deli meat in a Caesar salad, can both add sales and reduce waste. • Repurpose — Consider that certain ingredients might fit better in a different menu item than where they were originally introduced. In addition to their permanent foodservice offerings, c-stores can benefit from occasional limited-time offers (LTOs) and seasonal specials to generate excitement, customer interest and trial. These temporary menu items can be tests for permanent additions as well, but that isn’t necessary to achieve positive results. LTOs use urgency and scarcity to generate higher average checks and boost brand loyalty as consumers associate a c-store with novelty and variety. CSN

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GUIDE TO FOODSERVICE

WINNING WITH PREPARED FOOD

More and more, c-stores are centering their operations on fresh food CONVENIENCE STORES are becoming increasingly accepted as dining and snacking destinations, but the rise in consumer expectations requires retailers to offer food that consistently meets those expectations. Above all else, that means c-store operators must invest in prepared food as the focal point of their foodservice programs.

“Fresh prepared and assembled onsite is the future,” said foodservice consultant and c-store industry veteran Jerry Weiner. “Madeto-order and/or some level of hot and cold grab-and-go is where this goes in the near future and for the long run, dinner plates of a complete meal will be part of this. Snacktime offerings will also encompass high-end foods and sides that can be a snack or an add-on to a meal.” The industry is collectively in a good position. The prepared food segment built on a significant post-pandemic bounceback to grow 24.6 percent in average sales per store

in 2021 and 20.9 percent in 2022. Prepared food now accounts for nearly 75 percent of all foodservice sales. “Our No. 1 focus is our foodservice,” said one respondent in the 2023 Convenience Store News Foodservice Study. “We held true to our commitment of using only the best products and didn’t cut costs by cutting portions. Of course our prices went up, but our sizes and good quality product never changed.” Crafting a quality menu, though, is never a one-and-done effort. Intouch Insight’s “2023 Convenience Store Trends Report” found that overall satisfaction with prepared food from c-stores rose 7 percent year over year, but also that there was an 11-point drop in the percentage of consumers who reported being “extremely” satisfied with c-store food quality. “For many years, convenience stores have made significant investments in their prepared and made-to-order food options, aiming

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GUIDE TO FOODSERVICE

High's took a crawl-walk-run approach to developing its proprietary prepared food program.

to earn more interaction and loyalty with convenience-minded customers,” said Cameron Watt, president and CEO of Intouch Insight. “This shift to the middle in reported satisfaction from extremely satisfied to satisfied indicates to us that expectations are evolving, competition is increasing, and complacency is not an option.” C-stores are leaning into centering their store operations on food. In September, Media, Pa., Wawa Inc. unveiled a first-of-itskind prototype store in Henrico, Va., that showcases its expanding off-premise offers, built-to-order beverages and pizza. This store reflects its current “best thinking” for design and efficiency, according to the retailer. Additionally, the Nashville, Tenn.-based Twice Daily convenience store chain debuted a made-to-order prepared food offering in August that lets customers at select stores personalize their favorite hot menu items. A full rollout is slated for later in the year. C-stores that are uncertain about their ability to offer reliably delicious food, or are new to the prepared food space, may find success by working with a branded partner. Options for this are only increasing as more brands recognize the increased sales opportunities in the convenience channel. For example, Krispy Krunchy Chicken has mapped out an “aggressive” growth plan for 2024 and beyond, particularly among independent c-store operators, while Bojangles recently announced plans to open restaurants inside 10 TravelCenters of America franchise locations as its first set of nontraditional sites. Advantages of these partnerships include the ability to leverage an established brand, use

existing training programs and procedures, and offer consistently good food. However, downsides include being locked into a menu, the inability to negotiate food and equipment costs, and having to promote a brand other than your own. “You just have to figure a way to make your brand stand apart from their brand and have its own story,” Sherryn Diamond, foodservice director at Baltimore-based High’s, advised during a presentation at the 2023 NACS Show. Retailers who want to develop a proprietary prepared food program but are unsure of what steps to take should consider who they want to be and how they might get there, Diamond said, sharing how High’s Kitchen took a crawl-walk-run approach to its concept development that involved careful planning for multiple stages rather than trying to do everything at once. “Create a timeline for success,” she advised. “What does success look like in one year? Three years? Five years?” To craft their identity in prepared food, c-stores should look at the competition and opportunities that exist in their area, and brainstorm how they can deliver a better product. Program pillars such as chicken, pizza or tacos should be defined early on, and the menu and recipes built out from there. Once a program is past the beginning stage, it’s time to build a companywide culture of food by including the foodservice team in recruiting efforts, and developing higherquality food items that truly differentiate the brand from competitors that offer similar menu items. CSN

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GUIDE TO FOODSERVICE

WINNING WITH DISPENSED BEVERAGES This segment presents varied opportunities to increase check size COFFEE AND CARBONATED soft drinks are stalwarts of the dispensed beverage business at convenience stores, but that doesn’t mean c-store operators need to stick to more of the same.

Curby’s Express Market, a Lubbock, Texasbased concept that devotes 50 percent of its space to quick-service restaurant style food and beverages and the other 50 percent to standard c-store offerings, has struck a chord with its customer base by offering a dynamic lineup of made-to-order beverages. The selection ranges from coffee drinks to energy drink refreshers to custom tea drinks, craft sodas and more. Its Zoomies line of energy drinks add fun visual flair by stacking layers of colors in a transparent cup. “I sell twice as much made-to-order beverages as I do food. We do craft sodas, we do two different types of energy drinks,” said Tony Sparks, head of Customer Wow! at Curby’s. “It’s not popping up everywhere but, in certain parts of the U.S., it’s exploding.”

Speaking at the 2023 NACS Show, Sparks highlighted the current growth and future growth potential of beverages, noting that the average Chipotle customer visits the chain nine times per year, while the average Starbucks customer visits six times per month — or 16 times per month if they are a Starbucks Rewards member. “The velocity in beverage retail is so much higher than it is in food retail,” he said. Fresh-brewed tea and dispensed energy drinks are on the rise, according to Sparks. He also pointed out that coffee chains are seeing increased sales from cold drinks, indicating a growing appetite for alternative coffee and coffee-adjacent options. Within the coffee segment itself, bean-to-cup units are expanding from a somewhat niche offering that provides labor savings to a signifier of freshness and quality to customers who are wary of stale drip coffee. When it comes to roasts, c-store operators should pay

Curby's Express Market sells twice as much made-toorder drinks as it does food.

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GUIDE TO FOODSERVICE

The Coca-Cola Co. found basket size is 16 percent larger when a beverage is included in a prepared meal.

close attention to the preferences of their market — and keep in mind that customer satisfaction doesn’t require gourmet beans or complex flavor profiles. “A quality cup of coffee. That’s all that matters to our guests,” said Paul Servais, foodservice director at La Crosse, Wis.-based Kwik Trip Inc. “Problem is, coffee is very personal and every person describes their quality cup of coffee differently.” According to research from The CocaCola Co., when a beverage is included in a prepared meal, the basket size is 16 percent larger. So, dispensed beverages can be key to boosting check size. Beverage-focused promotions and bundling offers remain strong purchase incentives, especially when offered through loyalty programs, as this enables customers to get a deal and earn rewards at the same time. Retailers with strong brand recognition may also be able to boost their beverage business and overall foodservice sales by experimenting with subscription services, which have grown in popularity in recent years. Fast-casual restaurant brands led the way with programs like Panera Bread’s unlimited Sip Club subscription. But as c-stores raise the quality of their programs, subscriptions could be a logical next step. “Convenience stores are trying to become more like restaurants. They are going to have to become more dependent on what their in-store items are, as opposed to gas,

in the future,” said Jeff Hoover, director of c-store data insights at Paytronix, a provider of customer engagement solutions and loyalty programs for convenience stores, restaurants and retail chains. “I think it only makes sense that they’ll look to restaurants for common technology and practices, and see where they need to compete; where those restaurant brands that they’re effectively competing with for that inside business are having benefits.” In 2023, Savannah, Ga.-based Parker’s rolled out Chewy’s Drink Club, a dispensed beverage subscription program that allows members to redeem one large fountain drink per day at any Parker’s or Parker’s Kitchen store across the company’s operating footprint. Meanwhile, Laval, Quebec-based Alimentation Couche-Tard Inc. has spent the last few years building up its Circle K banner’s Sip & Save subscription, which lets members enjoy any kind of dispensed beverage, including iced tea, iced or hot coffee, Polar Pop or Froster, in any size cup daily. These subscription programs lean into the brands’ strengths, highlighting Parker’s famous Chewy Ice and Fancy Lemonade, and leveraging Circle K’s reputation for extensive beverage offerings and endless flavor combinations. Additionally, the low store cost of beverages and the high likelihood that customers will pair their subscription beverage with another menu item makes it easier for such subscription programs to pay for themselves and lift the entire foodservice program up. CSN

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GUIDE TO FOODSERVICE

WINNING WITH FRESH BAKERY

C-stores can drive more impulse purchases with attention-grabbing treats COMPARED TO CONVENIENCE store staples like

packaged beverages, coffee and fuel, the bakery case may not be frequently listed as a primary trip driver, but fresh bakery can be a surprisingly effective basket-builder for retailers that know how to smartly leverage their offering. Consumers are taking note when retailers invest in craveable, high-quality baked goods. For instance, when Kwik Trip Inc. won Best Gas Station Brand in USA Today’s annual 10Best Readers’ Choice Awards, the retailer’s company-owned bakeries, which make and ship fresh-baked items daily, were cited as a factor. C-stores are successfully generating buzz by utilizing colorful, unique flavors and seasonal promotions in their bakery offerings. This year, Maverik — Adventure’s First Stop invited customers to celebrate the company’s 95th birthday with actual cake — a confetti cake doughnut with birthday cake sprinkles on top of white frosting. Meanwhile, Baltimore-based Royal Farms capitalized on the annual fall pumpkin spice craze by offering Krispy Kreme pumpkin spice doughnuts to go with pumpkinflavored coffee. Turning fresh bakery items into attentiongrabbing, decadent desserts can increase this segment’s ability to boost impulse, add-on purchases. Sheetz Inc., headquartered in Altoona, Pa., targeted gourmet tastes at c-store prices in September with its new doughnut collection, designed by master baker Lee Ann Adams. Featuring varieties like Turtle Brownie, Strawberry Shortcake and Coconut Chocolate, the premium items are designed to combine the charm of classic doughnuts with “a sense of refinement, elegance and innovation that cannot be found anywhere else,” according to Adams. Placement can make a positive difference without changing anything about the actual items. Ankeny, Iowa-based Casey’s General

Stores Inc. reported success after resetting category locations with more appropriate adjacencies, including moving bakery goods close to the coffee station. Operators who are concerned about excessive waste and stale items in the bakery case at the end of the day should discuss their needs with their supplier partners and seek out recent products that offer an extended shelf life. Additionally, in a post-pandemic world, demand is growing for individually wrapped treats in clamshell or other packaging that extends freshness. Rich Products Corp. Customer Marketing Manager Alyssa Barrett recommends that c-store retailers follow five key steps to create a successful fresh bakery program: know your shopper; create ambiance; offer variety; co-locate impulse drivers; and leverage loyalty. Variety doesn’t just mean offering both doughnuts and muffins. According to Barrett, the three types of anytime treats c-stores should offer in their bakery case are snackable breakfast and mini-meal items that are portable; fun, flavor-forward items that can satisfy snack attacks later in the day; and a delicious, better-for-you snack that features an enticing, unique twist or flavor. “Rather than focusing on one shopper opportunity, c-stores should develop longerterm roadmaps to develop, innovate, measure and refine strategies,” Barrett said. CSN

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A Moderate Chapter for Cigars These are not the best of times, nor the worst of times, for c-store cigar sales By Renée M. Covino WERE YOU LUCKY enough to be a tobacco

retailer during the cigar boom of the 1990s? Chances are, you experienced the more recent boom during the pandemic that found the industry comparing and reminiscing about the turn-of-the-century stogie phenomenon. In 2020 and 2021, premium cigar sales soared for the first time in decades, with shipments up 50 percent by some industry estimations. The effect trickled down throughout the category, touching cigarillos and little cigars, too. Americans were reaching for affordable pleasures they could enjoy at home, and convenience stores were more than happy to oblige their new cigar customers and existing loyal base. Fast forward to 2022 and naturally, the momentum could not be sustained as life began to return to normal. Mostly double-digit declines put the category in the red. The boom had reversed. Now in 2023, volumes are starting to stabilize, translating to moderate declines or flat sales. And there has been some positive news for premium cigars on the

regulation front that may or may not affect convenience channel sales, while other pending cigar regulations that will affect the channel remain in waiting. Here is a look at the current dynamics shaping the category:

Cigarillos Are Stabilizing Cigarillos — longer, slimmer versions of large cigars — are predicted to post a flat to slight decline this year, according to data from Management Science Associates Inc. (MSA), a Pittsburgh-based company focused on analytics and informatics. While this segment was down in sales volume in the convenience/gas channel by more than 5 percent in 2022, it is on track this year to post declines of only 1 percent to 3 percent. “The slight decline in cigarillos reflects somewhat of a reduction in the pre-price and other promotions offered in this category over the past couple of years,” Don Burke, senior vice president of MSA, told Convenience Store News. During a recent National Association of Tobacco Outlets (NATO) webinar, Burke discussed “the jagged line” of the cigarillos category in recent years. “They had some strong periods in 2021, not so great in 2022, and are picking up a little bit as we got into 2023,” he explained. As a side note, in an MSA state-by-state comparison

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TOBACCO

chart showing cigarillo growth in the second quarter of 2023 vs. the 52 weeks prior, one state — Alaska — posted enormous growth of 49 percent. No other state came close. Only 11 other states showed a positive growth change with most in the low single-digits to low double-digits. According to Burke, Alaska was impacted by a particular retailer adding cigarillo SKUs to its mix. So, the state’s growth was impacted by new distribution, not yearover-year growth. Still, it is significant volume added in a state that seems to recognize the segment’s growing value to cigar consumers.

Little Cigars Are Harder Hit Little cigars — those that are packed like a cigarette, have a filter and are smoked similarly to a cigarette — are not bouncing back in sales volume like their larger counterparts. In fact, MSA research shows they are continuing to decline at a greater rate. Recent data showed declines in the 12 percent range for convenience stores in the second quarter of 2023 compared to the same timeframe a year ago. And that number is predicted to drop for the remainder of the year. “Little filtered cigars are hit harder than cigarillos because, in general, their price advantage over cigarettes has dropped,” Burke noted. “The advantages they once had are declining because many states and municipalities are figuring out that because consumers smoke them like a cigarette, they should be taxed like a cigarette. It’s hurt them in many markets where there is no longer a big price gap.” Interestingly, the “discount” retail channel tracked by MSA showed sales volume gains of over 3 percent in little cigars for the same second-quarter period vs. the prior 52 weeks; a strong contrast with the double-digit declines seen in most channels, including convenience stores. This channel includes dollar stores, which Burke said have cracked the code on little cigars. “They figured out what to do with them — they started to stock up on little filtered cigars in the past year and promote them as a value to their consumers. It’s clearly working,” he said.

Flavored Cigars Are in Waiting Most convenience stores have a pretty large investment in flavored cigars.

“Mass-market cigars sold in c-stores are split fairly evenly between flavored and unflavored,” said Alex Morrison, senior business analyst for Wilton, Conn.-based Cadent Consulting Group. MSA data confirms this, with flavored large cigars comprising 56 percent of the category for c-stores vs. 44 percent made up of tobacco flavor. But that could all drastically change depending on the U.S. Food and Drug Administration (FDA). In late April 2022, the FDA proposed two product standards: one to prohibit menthol as a characterizing flavor in cigarettes and the other to prohibit all characterizing flavors (other than tobacco) in cigars. As of press time, the FDA had submitted final product standards for both to the White House Office of Management and Budget (OMB) for final review. The OMB reviews potential regulations to assess their economic impact — a necessary step before an FDA rule can be implemented.

“Adopting these regulations that ban two of the most popular tobacco products in the United States will push a portion of current smokers to the illicit market and severely injure the convenience store industry.”

— NACS

“There’s a lot of FDA attention being paid to flavored cigars and menthol and with the flavored representation, if there is regulation, that’s going to have a very significant impact on the cigarillo category,” maintained Burke. “In little filtered cigars, menthol also plays a part, it’s about a third of the category, so it will play a big role here as well.” Convenience store industry association NACS told the FDA in comments sent to the agency last year that “adopting these regulations that ban two of the most popular tobacco products in the United States will push a portion of current smokers to the illicit market and severely injure the convenience store industry.” Two states did not wait on the FDA to ban flavored products: In 2020, Massachusetts became the first state to ban all flavored tobacco products, and California’s flavored ban went into effect at the end of last year. R.J. Reynolds and other tobacco companies sued to stop California’s ban, but federal courts have allowed it to stay in place. From research that MSA conducted on the flavored ban in California, much of the business went to surrounding states. Burke also suspects a good amount went to the black/gray market. While the latter is “very difficult to measure,” he said, “there was research conducted on cigarette packages thrown away and almost half were not stamped. So, we know people are buying menthol from places other than traditional/legal classes of trade.”

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Premium Cigars Score a Victory As of press time, premium cigars are not regulated by the FDA. This came about in August after a U.S. District Court judge issued a final memorandum in the Cigar Association of America v. FDA, vacating the decision of the FDA to deem premium cigars subject to its regulatory authority — meaning it took that authority away. Premium cigar manufacturers and associations were exuberant and hoping to get back to focusing on innovation. However, in late September, the FDA appealed the decision. Still, there are still positive vibes flowing that could potentially affect c-stores. “The premium cigar industry has a decision they think was correct in all respects; there is still reason for lots of optimism,” said Bryan Haynes, a partner specializing in tobacco with the national law firm of Troutman Pepper. “As we sit here right now, the category is not under federal regulation and in fact, the FDA has acknowledged that.” Like most appeals, a decision will not come quickly. “The appeal will definitely go into next year. … The industry has some freedom,” he added.

The reason all this matters to the convenience store industry is that “it may give manufacturers of convenience store brands inspiration to look at adding premium offerings to their portfolio, which could provide them opportunities in a post-FDA environment,” said Jay White, senior brand manager, Garcia y Vega, for Swedish Match. “It also gives premium cigar manufacturers more confidence to move forward with innovation in their category.” As for c-store retailers, “those that have a tobacco humidor and currently emphasize a premium cigar selection will likely benefit,” added Burke.

Cigars & C-stores Remain a Good Partnership Overall, the outlook for cigars in the convenience channel is cautiously optimistic. “The commanding share of the OTP category occupied by cigarillos means that this category will be a significant contributor to c-store tobacco sales for many, many years,” stated Burke. “The little cigar category will eventually level out with a dedicated consumer following that appreciates the characteristics of this product.” As previously mentioned, a ban on menthol and flavored cigars could propel a big movement from c-stores to the black and gray market, but it could also grow alternative products and tobaccoflavored options, according to Burke. The way Cadent Consulting’s Morrison sees it, “cigar dollar sales in c-stores will continue to grow at a slow rate, driven by price increases, while units will decline.” CSN

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ALCOHOLIC BEVERAGES

Standing Out in an Increasingly Competitive Category C-stores can leverage partnerships, trends and data to win with wine and liquor By Angela Hanson EARLY IN THE COVID-19 PANDEMIC, alcohol

sales underwent a sea change as shoppers sought to consolidate trips and turned to convenience stores for their purchases. Wine and liquor sales in the channel rose by an incredible 30.9 percent in 2020. Fast forward three years and consumers could return to their old habits, but convenience store retailers and their supplier partners are working to make sure they don’t. C-store operators are increasingly leaning into wine and liquor as a means of differentiating themselves and delivering more value to their customers — and it’s working. In 2022, the category kept a firm grip on the top 10 spot it gained during the pandemic, based on in-store sales. Average per-store sales of wine and liquor increased 6.4 percent last year. Laval, Quebec-based Alimentation Couche-Tard Inc. launched its first

collection of private label wine at more than 3,000 Circle K stores in the United States last spring. Curated specifically for shoppers in search of both convenience and quality, the bottles come in a range of prices, from the under-$8 Sunshine Bliss line to a selection of six fine wines priced at $10 to $25 each. Casey’s General Stores Inc., headquartered in Ankeny, Iowa, is another c-store chain looking to differentiate itself in alcohol. The retailer is not only the No. 3 chain on the 2023 Convenience Store News Top 100 list, but it is also the No. 4 U.S. chain in total liquor licenses held. “Even before the pandemic, we saw our guests moving from beer to liquor and while beer still represents the majority of our alcohol sales, we don’t want to give our guests any reason to have to shop anywhere else for their alcohol needs,” said Chris Stewart, vice president of merchandising for Casey’s, which operates more than 2,500 stores. Casey’s plans to increase its off-premise liquor licenses to better deliver for its guests, according to Chief Merchandising Officer Tom Brennan. However, the retailer has been getting involved more deeply in liquor

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for some time now. In 2021, it collaborated with Buffalo Trace Distillery to develop a single barrel bourbon to be sold at select Casey’s stores in central Illinois. And earlier this year, Casey’s expanded its Single Barrel Select program by partnering with Sazerac to offer Myers’s Rum at 90 of its stores. “We think partnerships with industryleading brands like Sazerac and Buffalo Trace help us build credibility in our guests’ mind and make Casey’s top of mind when they are deciding where to shop for their alcohol needs,” Stewart said.

“Due to being so different from grocery, mass and club, it is important to better understand what the consumer is looking for when shopping for spirits in convenience.” — Jay Hornback, Beam Suntory

Crafting an Effective Assortment To succeed with wine and liquor, c-store operators must invest in active category management. This includes gathering and analyzing store-level data, as well as seeking out consumer insights pertaining specifically to the convenience channel.

of convenience channel sales for Beam Suntory, the 2023 CSNews Category Captain for wine and liquor. “In addition, learning about key trends earlier to help share our finding to retailers can help them influence their future assortment and features.”

“Due to being so different from grocery, mass and club, it is important to better understand what the consumer is looking for when shopping for spirits in convenience,” explained Jay Hornback, manager

Retailers may benefit from promoting the category based on holidays, seasonality and other recurring catalysts for purchases as they do with other in-store merchandise, but they must bear in mind that sales of wine and liquor products don’t always shift in the ways other categories do.

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“Seasons do play a role in the types of wine that succeed, in addition to regional preferences that already exist across the country, but in my experience, the wine category experiences less seasonal volatility than other alcohol categories,” noted Capri Brixey, executive vice president of strategy consulting at Insite AI, an artificial intelligence (AI) enabled category and revenue growth partner for major consumer brands.

“Even before the pandemic, we saw our guests moving from beer to liquor and while beer still represents the majority of our alcohol sales, we don’t want to give our guests any reason to have to shop anywhere else for their alcohol needs.” — Chris Stewart, Casey’s General Stores Inc.

Brixey recommends c-stores take advantage of new ways to analyze data that is specifically relevant to them and the markets in which they operate, as opposed to acting based on broader category shifts only. “The opportunity now is for brands to maximize growth in a channel where consumers have more recently established buying habits by identifying granular insights to deliver on region-specific preferences in assortment and improve execution in on-shelf availability,” she said. “That ensures brands meet the needs of their shoppers and continue to take advantage of growing trends.” Trends on the rise in the liquor category include tequila, according to Hornback, who reports growing demand for more offerings beyond the typically limited assortment in c-stores.

“As tequila in general is a very hot segment in c-stores, it is now playing catchup to the general retail market,” he said. “Our recommendation due to limited space for assortment is to focus on the leaders within each price tier.” Sales of ready-to-drink cocktails are also on the rise, possibly as a result of consumers growing accustomed to preparing and enjoying mixed drinks at home during the pandemic and wanting to continue to enjoy them conveniently now. “Ready-to-drink cocktails continue to show huge growth, but on a very small base,” Casey’s Stewart reported. “We do see guests trading up from seltzer to this higher-alcohol option and expect them to continue to do that throughout the remainder of the year.” As convenience store retailers take steps to differentiate their stores through wine and liquor, Beam Suntory’s Hornback offers four recommendations: • Ensure consumers know you sell wine and spirits by making them visible, as many times this segment is an added purchase to already selected items. • Keep pricing competitive with your local grocery and liquor stores. • Where legal, include wine and spirits in your loyalty programming. • Utilize your mobile app and in-store signage for new and featured items. The growing use of AI provides another option for retailers to optimize their wine and liquor offering, but to do so effectively requires a data-based mindset, according to Insite AI’s Brixey. “There are a lot of practical uses of AI for c-stores. However, there is still a lot of confusion around it,” she said. “Before consumer brands can fully benefit from AI, they need to embrace a culture of data-driven decision making and be willing to adapt their business processes and strategies to effectively integrate AI insights and recommendations into their operations.” For in-store merchandise in general, AI-enabled capabilities can optimize assortment, pricing, trade promotions and spaces in real time, helping consumer packaged goods brands (CPGs) and their retailer partners understand historical and current performance, and project the expected performance of potential category range scenarios and strategies. “With wine and liquor specifically, there are wide-ranging regional preferences and price points. AI can help brands understand price elasticities across these categories with incredibly diverse price points, in addition to providing a more localized assortment across regions — based both on preferences and regulatory standards that vary from state to state,” Brixey said. “AI can make precise recommendations that CPGs can then bring to c-store retailers, effectively increasing sales and meeting consumer demands.” CSN

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TECHNOLOGY

Yesway Vice President of Marketing Darrin Samaha joined the discussion around the future of technology.

Talking Technology Executives from across the channel gathered at the Convenience Store News Technology Leadership Roundtable & Dinner to share insights on today’s hot topics By Melissa Kress TECHNOLOGY IS TAKING over the convenience channel and, rightfully so, tech leaders now lend a critical voice to every discussion that touches all four corners of the store and beyond.

Mobile services — from ordering to payment to proprietary apps — are among the most relevant technology advances among convenience store shoppers today, according to the 2023 Convenience Store News Realities of the Aisle Study. Additionally, contactless payment and in-app promos saw year-overyear usage growth, and loyalty programs are cited by c-store shoppers as the No. 1 element that influences their decision to visit a specific convenience store. To say it is an exciting time to be in convenience retail technology is an understatement. In an effort to take the pulse of the channel, convenience store executives gathered at the annual CSNews Technology Leadership Roundtable & Dinner in Atlanta on Oct. 3. Taking place on the opening night

of the 2023 NACS Show, the event provided a forum for c-store tech leaders to share current innovations and discuss the future technology needs of the industry. The pinnacle of the event was the presentation of the CSNews Technology Leader of the Year award to bp. The Houston-based company is embracing innovative tech solutions to meet the changing needs of the motoring public. Among the highlights, bp is investing in talent and capabilities to deliver a best-in-class digital experience across its two convenience store banners, ampm and Thorntons, and its newly acquired TravelCenters of America (TA) network. The goal for bp is to meet the evolving needs of its guests and provide multiple avenues to transact with its guests digitally. The company is also putting a focus on electric vehicle (EV) charging as one of its five strategic transition growth engines. By 2030, bp intends to put $1 billion into EV charging in the United States, and the TA network is slated to play a big role in this, putting bp in an ideal position to reduce range anxiety for EV drivers.

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TECHNOLOGY

For these reasons and more, CSNews selected bp as the 2023 Technology Leader of the Year. Lisa Blalock, president of bp’s Retail Operating Organization; Greg Franks, senior vice president of mobility and convenience, Americas at bp; and Debi Boffa, CEO of TravelCenters of America accepted the award on behalf of the company. "We've been on this journey for many, many years and we had a great chat at our table [on] just how difficult the journey can be, right? And I think we're all at different stages," said Blalock, noting that retailers across the convenience store landscape have all faced hurdles, embraced them and overcome them in different ways. "We are very gracious to accept your award."

Hot Topics in C-store Tech Every convenience store retailer's technology journey may differ, but the challenges and tools to help them navigate that journey are similar. For example, c-store retailers are all-in on mining data to understand each guest at a more granular level. During the roundtable portion of the event, attendees also discussed how frontline associates in the stores need to be advocates for the brand when it comes to building enrollment in a loyalty program. With those loyalty insights, operators can break through "the app noise" and engage their customers with more personalized offers. Without loyalty data, according to one attendee, "you are flying by the seat of your pants." Other areas top of mind are: • The EV consumer and what that basket looks like; • Machine learning and artificial intelligence (AI); and • Omnichannel commerce. "Generally speaking, everyone is preparing for omnichannel, but it is a moving target," another attendee noted. As for the overall state of convenience retail technology today, one word comes to mind: fragmented. Questions swirl around what to pay attention to, where to put your investment, and what may be a fad vs. what is here to stay.

Houston-based bp accepted the 2023 Technology Leader of the Year award as c-store technology executives gathered to share insights on the latest in retail innovation.

Piloting a Technology Journey Mike Rodgers, executive vice president and chief technology officer for Pilot Co., is very familiar with these hot topics in tech. In March 2022, Knoxville, Tenn.-based Pilot Co. embarked on a $1 billion New Horizons initiative, a program aimed at overhauling hundreds of its travel centers across the country and improving the Pilot experience for customers and employees alike. The project is the company's largest investment in store modernization yet and includes full remodels of more than 400 Pilot and Flying J locations, and upgrades at several more locations. Now, nearly two years into the initiative, Rodgers talked about Pilot's journey up to this point during a fireside chat at the event. "Technology really is at the center of just about everything we're doing," he said, pointing out that the most important part is the guest experience. Based on feedback from customers and team members, the company designed complete store overhauls that include remodeled showers and restrooms, improved driver-focused amenities, expanded kitchen and dining areas, expanded digital engagement, and the installation of the latest in fueling and retail technology. "We're putting a lot of investment into the facility itself. But along with that, we're investing in assisted checkout. People call them

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TECHNOLOGY

SCOs, or self-checkout, but I call them assisted checkout because they're actually a better customer experience because somebody is assisting the transaction or essentially doing three or four point-of-sales at one time," Rodgers explained. To date, Pilot Co. has implemented assisted checkout in roughly 170 locations and the goal is to have it in every location when New Horizons wraps up. Customer utilization ranges anywhere from 40 percent to 80 percent depending on the location. "We average around 50 percent of eligible transactions and it really helps the service in that location. It actually increases sales," Rodgers said. "The sales go up, service scores get better, and we have a more efficient workforce." Relative to that, the travel center operator is installing new cameras in every store with edge computing. Once the cameras are installed, edge computing gives Pilot Co. the ability to do things like determine if there's a line or if products are out of stock and send alerts. "We've got the new cameras in probably 30 or 40 locations, but over the next couple of years, we'll get them in all the locations," he said. The New Horizons initiative aside, Pilot Co. is also leaning into omnichannel to create a seamless customer experience — connecting all its customer touchpoints, from a kiosk to a point-ofsale to a fuel dispenser. As the operator of more than 800 travel centers, Pilot Co. is digitally focused on the professional driver, which accounts for a high portion of the company's revenue but only a third of its traffic. That being said, personalized interaction at the pump based on a professional driver's preferences is where the operator will win on conversion, according to Rodgers. "As we've developed that technology, we’re doing the same thing on the gas side," he added. Seventy percent of Pilot Co.’s gas traffic is traveling the country or going on vacation — not local market customers, which “creates a little bit of a challenge for us in developing that relationship,” Rodgers told the group. To reach that customer, the company is using tools like text-to-join for its loyalty program. "You are not going to

Pilot Co. Executive Vice President and Chief Technology Officer Mike Rodgers spoke about the operator’s efforts around digital innovation and omnichannel.

"Technology really is at the center of just about everything we're doing."

— Mike Rodgers, Pilot Co.

get someone who is just going to visit twice a year to download your app, but they still want to play in the program," he pointed out. Pilot Co.'s team members are looking for the same seamless, frictionless interaction. To this end, the company has rolled out an app that each team member must download. Now, through their phones, team members are able to clock in for their shifts, receive fuel and food discounts, and access their pay information. "Any type of resource they need with respect to how they manage their life at Pilot is on the app," Rodgers said. "And we are driving more and more capability and utility onto the employee app." With changes continually happening across all aspects of the business — including marketing, human resources, in-store operations and the fueling experience — technology touches all corners of the organization at Pilot Co. and thus, the tech team has a seat at every table. "There's a technology lead that is sitting in all the staff meetings; everything related to strategy for each of [Pilot Co.'s eight] business verticals, whether it's supply and distribution for fuel marketing, [Vice President, Chief Merchant] Brian Ferguson's group that runs all the marketing that's in the stores, or food. There's somebody from technology embedded with them," Rodgers explained. "They've got a seat at the table from the very beginning and in some of these cases, technology's driving the initiative like in loyalty. You can't participate in our loyalty program at a significant level unless you're engaged digitally through the technology." Looking down the road, Rodgers called out AI as an emerging technology trend that excites him, notably around the role it can play in upgrading legacy systems and hyper-personalization. Sponsors of the 2023 Convenience Store News Technology Leadership Roundtable & Dinner were Altria Group Distribution Co., Legion Technologies, PayiQ, Paytronix and Stuzo. CSN

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FEATURE

A CELEBRATION 10 YEARS IN THE MAKING Before a packed house, the Top Women in Convenience program commemorated its 10th anniversary and recognized its latest class of honorees By Danielle Romano WHAT BEGAN 10 YEARS AGO as a simple breakfast in the basement of the Las Vegas Convention Center to recognize 30 deserving women in front of a crowd of less than 100 attendees evolved into the 2023 Convenience Store News Top Women in Convenience (TWIC) Awards Gala, where an extra-special 10th anniversary ceremony recognized 86 honorees in front of a sold-out crowd of 450 attendees.

The 10th class of Top Women in Convenience comprises 86 established and emerging female leaders in the convenience store industry. The honorees were selected from an extremely competitive pool of nominees based on their innovative corporate initiatives, extraordinary financial and strategic accomplishments, astute problem-solving acumen, exceptional performance, mentorship work and selfless charitable participation, along with other attributes that go above and beyond the call of duty. The 2023 TWIC class of five Women of the Year, 39 Senior-Level Leaders, 35 Rising Stars

and seven Mentors from across the industry's retailer, distributor and supplier communities were honored the evening of Oct. 4 at an awards gala and party at the Omni Atlanta Hotel at CNN Center, against the backdrop of the 2023 NACS Show. "The Top Women in Convenience program has evolved into a robust recognition and education program and community that facilitates networking, amplifies important conversations and celebrates achievement. It's very exciting tonight to recognize a new group of exceptional women and to reflect on 10 years of outstanding achievements," said Paula Lashinsky, senior vice president and group publisher, U.S. Grocery & Convenience Group, for EnsembleIQ. "It reminds us of something we've always known, which is there's power in numbers and strength in collaboration." Keynote speaker Ina Strand, chief people officer at Alimentation Couche-Tard Inc./Circle K (ACT), spoke to the power of the TWIC program, noting that it was a mere decade ago that women's contributions to the convenience store industry were going unnoticed. "Now, look at our numbers and what a difference we are

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The 7-Eleven Inc. team showed support for its female leaders who were recognized as part of the 2023 TWIC class.

making to our businesses, our customers and each other," said Strand, who was previously honored as a Woman of the Year in the 2020 TWIC program. She shared with the audience how the morning after the 2018 TWIC Awards Gala in Las Vegas brought together past and present Circle K Top Women in Convenience winners who were inspired to create winning conditions for women across the organization. After several hours of courageous conversation, that meeting provided the foundation for what would become ACT's Women's Council. On International Women's Day in 2019, the group became official. Now, ACT's Women's Council meets annually the morning after the TWIC awards ceremony. "We get together with our new honorees as well as our male allies to continue exploring how we can create better pipelines for advancing and for advancement and winning conditions for women in our business and in the industry. I can proudly say that what started in Vegas didn't stay in Vegas," Strand said, adding that ACT now has seven business resource groups, including the Women's Council.

Five Women of the Year shared stories of triumph, while Yesway was honored with the 2023 TWIC Corporate Empowerment Award.

Words of Wisdom From the Women of the Year Each year, five women are selected as the Women of the Year for their positive impact not only on the success of their own companies, but also on the convenience store industry at large. The 2023 Women of the Year are Treasa Bowers, senior vice president of human resources, 7-Eleven Inc.; Kathy Cunnington, senior vice president of global shared services, Alimentation Couche-Tard/Circle K; 86 Convenience Store News C S N E W S . c o m

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A sold-out crowd of attendees celebrated TWIC honorees during an awards gala, followed by an after-party.

Kellie Janssen, president, Henry's Foods Inc.; Eva Rigamonti, associate general counsel/executive director of public policy, RaceTrac Inc.; and Kathy Williams, vice president, National Retail Sales, East, The Coca-Cola Co. Upon receiving her award, Bowers reflected on her nearly 40 years serving the convenience channel at 7-Eleven and said she expects the best is yet to come. "I have had really great opportunities, but I think what's been more magnificent and wonderful is all the people that I've been able to experience," she said. "I'm more inspired and energized for building the future of convenience. And, looking at all of the leaders here tonight, I can honestly say it is clear that the future is really, really bright." Cunnington, who has been a part of the industry for nearly three decades, shared that while she has had strong role models and sponsors both personally and professionally, the most impactful role model she had was her father, Dr. Harry Arthur. When debating whether to be a marketing major or an accounting major, he once told his daughter, "You can do anything you set your mind to. Your biggest problem is deciding what that is." "I've often reflected back on my dad's wisdom. We make choices. We make choices that make us happy. Those choices turn into the paths we take, and that's how we define success. We need to own those decisions," Cunnington said. She and her husband Jeff use this insight as a guide to raising their three daughters by showing them the world, and encouraging them to make their own decisions and do what inspires them. Cunnington believes this is the most important pointer that all women need to remember. "I smile proudly when I look to the future of women in this industry. We've made hard choices, but we've made tremendous progress," she told the audience. "We have more sponsors, male and female. They help us navigate career paths, and we need to be those

leaders for them. My most important thing: this is a marathon, it's not a sprint." Echoing the theme of making choices, Janssen recognized that all of the TWIC honorees are doing what they do each day to make an impact, and that impact will continue for years to come. Although she didn't know much about the distribution side of business when she accepted the offer from Henry's Foods to join 12 years ago as its first president who was a nonowner and female, she did it to make a difference. "I didn't know what that looked like or how I could do it, but I knew if I created pathways to find a way to make a difference, I would," she said, explaining that part of Henry's Foods' mission statement is to exceed expectations and to make that a living statement, it can't be just words, but action. "And action is what got me on this stage. You have to do something to make an impact and to make a difference. You have to be intentional." Calling the convenience store industry "exciting" and "never boring," Rigamonti applauded the channel, where she said it is commonplace for an entry-level employee to rise through the ranks to the top. While she acknowledged that it is still a male-dominated industry, Rigamonti also said it is an industry where women have "a real chance" to grow, develop and flourish. "It is my great honor, and on most days my great pleasure, to work in this industry and represent RaceTrac before the federal and state governments," Rigamonti said. "The beauty of my role is that even though I'm standing in a room full of fierce competitors, my world, the policy world, is one where competition takes a backseat, where we always come together and collaborate to push the policies that benefit the entire convenience store industry and the customers that we serve." In her acceptance speech, Williams extended her gratitude to her team and thanked the "exceptional

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FEATURE

leadership" at Coca-Cola, where she has worked with and for leaders who don't just understand the power of diversity, but embrace it. "In the convenience retail business, you are given the extraordinary opportunity to interact with millions of people each and every day," she said. "I'm so proud to represent Coca-Cola in this channel and to work with many of you." This year's TWIC Awards Gala also honored Yesway with the 2023 TWIC Corporate Empowerment Award. Now in its second year, this award honors a convenience retail company that commits to gender equality, paves the way to empower women in leadership roles and is a champion for the inclusion of women in the goals and vision of the enterprise. “This award recognizes a commitment that runs deep within our organization, a commitment to gender equality that we believe is not just the right thing to do, but also the central success of our business,” said Yesway Chairman and CEO Tom Trkla. “We have always understood that diversity, inclusion and equity are the cornerstones of the thriving workplace and community. And yes, we have made it our mission to create a culture that fosters diversity of thought, challenges the status quo and promotes gender equality at every level.” Giving women a voice at every level of the organization is a big part of that culture, he added.

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“From the front lines serving our customers to the most senior level of our senior leadership team, women have an active and substantive role in shaping our strategies and our decisions. We actively seek input from women across the organization, creating an environment where all voices are heard and valued,” Trkla said. “This commitment has led to improvements in morale, employee retention and customer engagement.” Supporters of the 2023 Top Women in Convenience program include: founding and presenting sponsor Altria Group Distribution Co.; platinum sponsors ITG Brands, PepsiCo Inc. and Reynolds Marketing Services Co.; gold sponsors BIC USA Inc., The Boston Beer Co., The Coca-Cola Co., Core-Mark International, Juul Labs, Mars Wrigley, McLane Co. Inc., Mondelez International, The Proctor & Gamble Co., Swedish Match North America and Tyson Convenience; silver sponsors Anheuser-Busch InBev, BeatBox Beverages, Constellation Brands, Glanbia Performance Nutrition, PDI Technologies Inc. and Premier Manufacturing Inc.; bronze sponsor Zebra Technologies Corp.; and Corporate Empowerment Award sponsor The Hershey Co. CSN

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INSIDE THE CONSUMER MIND

The CBD State of Affairs Consumer familiarity has improved, but usage remains niche In the past, CBD sales have been hindered by a lack of consumer knowledge, but today a majority of convenience store shoppers say they are familiar with CBD, according to the 2023 Convenience Store News Realities of the Aisle Study, which polled 1,500 consumers who shop a c-store at least once a month. CBD — an active ingredient in cannabis that is derived from the hemp plant but does not have any psychoactive properties — is being marketed for treating anxiety, inflammation, insomnia, pain and more. While familiarity is on the rise, usage is increasing more slowly. The c-store shopper research also revealed:

Familiarity Level With CBD Overall, more than seven in 10 convenience store shoppers are aware of CBD.

• Extremely/very familiar 36% • Somewhat familiar 35% • Not at all/not very familiar 29%

Store Types in Consideration Set for CBD Purchases Up 7 points year over year, convenience stores are gaining ground on CBD retailers/dispensaries as the preferred spot for purchases.

52%

CBD retailer/ dispensary

About a quarter of surveyed shoppers said they bought CBD products at a c-store in the past month. The prevalence was highest among millennials at 35%.

45%

Convenience store

31%

27%

Online retailer

Vitamin & supplements store

31%

Grocery store

28%

Drugstore

Most Purchased Types of CBD Products 1. Gummies

The top reasons cited by c-store shoppers for why they don’t purchase CBD products are:

2. Vape cartridge

• Not appealing

3. Vape oil

• Price is too high

4. Chocolate

• Not comfortable using CBD

5. Beverage

• Concerned about side effects • Concerned CBD products don't work

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DHALIWAL DISTRIBUTING PUTS COMMUNITIES FIRST Giving the community what it wants and needs— and giving back, too—is the mantra Monroe, Louisiana-based Dhaliwal Distributing, LLC has followed since 1982, when Karl Dhaliwal opened a single Now Save c-store with one employee. The company’s passion for serving the community remains strong across what is now a 22-unit chain that includes 17 76®-branded fuel stations serviced by fuel distributor and marketer Motiva Enterprises LLC, Houston, Texas. CSN sat down with Dhaliwal’s daughter Simran Dhaliwal Emaus, a recipient of a “Top 20 Under 40” award presented by local Chambers of Commerce; CEO, Dhaliwal Distributing and ZARCO Transport; and vice president, operations, Now Save Stores, to discover more. CSN: What differentiates Now Save stores from others in the area? SE: We tailor stores to individual communities’ needs. For example, the City of Monroe requested we open a store in an under-served location where it was difficult for people to find the type of items that are sold in a grocery store. That store offers meats, poultry, cheeses, and deli items as well as ready-to-cook food and hot food. It’s our Now Save 8 store. Additionally, our café-delis serve an extensive menu of fresh, hot food, and two stores smoke meats in-house for barbecue. We also try to add items when customers or the community ask. Tiger Mart, our flagship store in Monroe where we recently held our Grand Opening with 76® gas for 76 cents a gallon, was the first c-store in the region to have a beer cave. We also carry a large selection of wines, including vintages people can’t find elsewhere. CSN: What else has helped to spur Now Save’s growth? SE: Community involvement. Kids are our future, so we do everything we can to encourage them to do well in school. Every nine weeks, students who earned As and Bs, and those whose performance improved the most, are rewarded with gift cards.

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