Ccwc jan feb 2015 magazine_jan 26

CONVENIENCE & CARWASH CANADA

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JANUARY | FEBRUARY 2015

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In This Issue

Industry News

Staffing & HR

Food & Nutrition

Carwash Technology

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08

21

39

WCSA Continues to Sharpen the Value Equation

06

Lottery Tickets – Aren’t Child’s Play

16

Lighting Up Sales – The market in tobacco and related products is fast changing. Are you up speed?

Predictable is Preventable – Sean Sportun advises more training and caution with new hires

26

Uniforms Impress – A properly outfitted business is dressed for success

Fueling the Human Engine with premium

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Good For What Ails You – With sales of $25 million, C&G sees medicated confections as healthy opportunity

Carwash Trends 2015

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Carwash Q&A

Petroleum Technology

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Less Gas, More Performance – Vancouver’s Arcade Station is meeting high demand with the city’s first E85 pumps.

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Succeeding at the Pumps – More than just compliance

What’s New

48

News Releases

Upcoming Events February 17 – 19, 2015 WPMA National Convention Mirage Convention Centre Las Vegas, NV

http://www.wpma.com/national-convention March 10 – 11, 2015 Carwacs Toronto The International Centre, Toronto, ON April 23 – 25, 2015 2015 International Carwash Show Las Vegas, NV

www.thecarwashshow.com

May 26 & 27, 2015 Western Convenience Stores Association CS Expo Executive Airport Plaza Hotel & Conference Centre, Richmond, Vancouver, BC Contact: Andrew Klukas 778-987-4440

andrew_klukas@shaw.ca

Or Brenda Jane Johnstone 204-489-4215 bjjohnstone@

convenienceandcarwash.com June 16 – 18 June 2015 PetrolWorld Business Meeting Summit Kuala Lumpur, Malaysia 2015

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JANUARY / FEBRUARY

PUBLISHER Brenda Jane Johnstone bjjohnstone@convenienceandcarwash.com EDITOR Kelly Gray editor@convenienceandcarwash.com

Publisher’s Message

SALES Cody Johnstone 416-838-4674 codyj@convenienceandcarwash.com

Connections

Brenda Johnstone 204-489-4215 bjjohnstone@convenienceandcarwash.com

As I write this we are on a cross-country journey heading to BC for the next couple of months. Along the way we pass numerous roadside convenience stores and gas stations all of which offer a beacon of warmth on these extremely frigid days. Moose Jaw saw the temperature hit -32ºC. It was dark and we are the only light on the highway with the exception of the very bright orange full moon. The bright spot for us is that gas prices sit around 0.84 cents a litre.

From behind the wheel as we drive across the Prairies I can see how connected we are. No matter the type of site, whether it is an independent one store or a local or national chain, the products and services offered and all consistent. Sure, there are regional treats offered but generally speaking every site we’ve stopped at offers similar product and service where we have been greeted with smiles and ‘have a nice day’ each and every time.

With each stop we make we look at the site and ask ourselves, “How much better could the industry be?” We think there is always room for improvements in business and toward this end The WCSA in partnership with Core-Mark and Convenience & Carwash Canada will offer retailers a new and exciting event this coming May 26 & 27, 2015 in Richmond, BC (Western Convenience Stores Association CS Expo Executive Airport Plaza Hotel & Conference Centre). There we will build a “store” complete with both petroleum and a carwash section. This “store” will offer operators a vision of convenience perfection. Inside, expect to find the latest in plan-o-grams, safety and security, and best practices. Retailers will also have the opportunity to meet one-on-one with vendors of their choosing.

Inserted into this issue is a questionnaire for you to complete and mail back to us.

Tell us what type of vendor you’d like to meet. We’ll set you up during the event to discuss information that is important to you and your business.

We’d also like to know what industry publications you receive and what you read.

Tell us what interests you so that we can continue to offer the information that keeps your abreast of new trends and how to grow your business.

Remember, your business is my business and my commitment to you remains strong.

If you have a story you’d like us to cover in an upcoming issue please send me an email to bjjohnstone@convenienceandcarwash.com We look forward to seeing you in Richmond this May.

DESIGN AND PRODUCTION Doug Coates, Edge Advertising Keith House, Ad Production EDITORIAL ADVISORY BOARD Ian Burton, PD McLaren Scott Findlay, Core-Mark Int’l Kim Hansen, MI Petro David Hoy, Peninsula Co-Op Andrew Klukas, WCSA Dave Watson, The Chamois & Convenience Store Ltd. CONTRIBUTING WRITERS Barbara Bowes Eva Chambers Jeffrey Derevensky Rae Downing Fred Grauer Kelly Gray Lynette Gilbeau Saul Katz Lucy Sackett Stewart Schneider Sean Sportum CIRCULATION James Gordon subscriptions@convenienceandcarwash.com WEBSITE www.convenienceandcarwash.com PUBLICATION MAIL AGREEMENT No: 41670539 Return Undeliverable Canadian addresses to: Circulation Department 543 Borebank Street Winnipeg, MB R3N 1E8

Brenda Jane Johnstone

Publisher

Convenience & Carwash would like to introduce you to our new advertisers.

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WCSA Approach Adds Value Unscrupulous wholesalers are hurting consumer trust in familiar products, pose public health risks, and deprive governments of tax revenue.

This is the view of Andrew Klukas, President of the Western Convenience Stores Association (WCSA). He points to a Canadian Border Security Authority (CBSA) study that shows that sales of counterfeit and ‘grey market’ products could exceed $40 billion. Here, most of us are aware of the challenges posed by counterfeit tobacco products, but fewer of us may know that items as familiar as Pepsi or Kit Kat candy bars may be coming from unauthorized sources and may not be the product we expect in our market.

What Klukas is suggesting is that some distributors have sourced goods outside

Canada and may be offering them here to unsuspecting C-store operators that may be swayed by lower cost. “Certainly an issue exists in labeling, but other factors such as the manufacturing process may leave some consumers flat. For example, a confectionary product that nut allergic consumers have come to trust may be made slightly differently in a UK or India production facility. A customer comes into a store, purchases a familiar item and is made ill because the item is not produced in a factory that is guided by Canadian market needs. This not only harms the consumer, but it harms the brand as well,” he says, noting that this grey market has

expanded over the past five years from Southern Ontario to Western cities such as Calgary and Vancouver.

“This appears to be the result of a disconnect between the Canadian Food Inspection Agency (CFIA) and the CBSA. The solution might be increased regulation where distributors are certified and there is more on-site inspection. In the absence of enforcement, the issue is creating biosecurity challenges and presents a growing threat to the safety of the safe food chain.” For example, products approved in Canada with correct UPC codes can be tracked quickly in case of product recalls (traceability). This is not true of grey market products.

Retailers can distinguish legal from illegal products in several ways. For example, products for sale outside Canada do not have Canadian labeling (including French).

As well, Canadian products provide 1-800 numbers for customers (not always provided on grey market products) The WCSA is also working hard on the Foreign Temporary Worker (FTW) brief.

The importance of a source of quality labour to operate stores cannot be understated. Consider the impact the lack of workers had on a one small western chain that is considering closing six stores where local staff cannot be found. Klukas reports that the WCSA is planning to undertake a larger study that it will use to educate government on the challenges facing the Cstore sector. “Our plan is to provide a comprehensive economic analysis and bring in the experience of a broad range of industry groups. There is a certain amount of fog around this issue and we need to shine a proper light on the facts to create the right environment for clear decisions on this important industry challenge.”

Another important area the WCSA is working is in Saskatchewan, where Klukas and his team are working with other industry groups to participate in government consultation regarding liquor sales. He

points out that the convenience sector operates some 1,000 stores in Saskatchewan and employs over 9,000 people, generates almost $3 billion in annual sales and collects over $150 million in retail sales taxes alone. Currently, there are 190 franchisee stores already selling alcohol in place of government liquor stores. He suggests that this number should increase due to a host of reasons that are good for the economy and the consumer. “The modernization of liquor retailing in many jurisdictions across Canada is long overdue. We believe that changes can be made that can simultaneously enhance consumer choice, experience and convenience, increase financial returns to government and protect public safety,” he says.

The WCSA proposes a phased-in period where a limited number of licenses throughout the province would be issued to ensure a smooth transition. This would allow for initial monitoring while also protecting the interests of smaller retailers who cannot adapt as quickly as large chains to all the licensing requirements.

“We recommend that convenience stores be required to meet or exceed safety standards, pass periodic safety audits and maintain a “clean” record on age-verification in order to retain and renew their liquor licenses. We believe our recommendations build on existing models and align Saskatchewan’s liquor laws with the lifestyles and values of its residents,” says Klukas who concludes that these initiatives are all about consultation and inclusion.

“When you can get everyone around a table and better learn what is driving issues and challenges, we are all in a better position to find meaningful solutions. This is part of our mandate at the WCSA and how we try to add value every day for our members.”

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JANUARY / FEBRUARY

Lottery Tickets Aren’t Child’s Play

By: Lynette Gilbeau and Jeffrey Derevensky, International Centre for Youth Gambling and High-Risk Adolescent Behaviors, McGill University

Scratch and win! Pick six numbers for a chance to win the mega jackpot! What incredibly fun concepts. For a small investment, players can experience the thrill of fantasizing about a big monetary win or exciting prizes. Dreams of exotic travel, luxurious purchases and a possible end to financial concerns drive players’ imaginations. These feelings of excitement and anticipation are universal for adult and youth lottery players alike. While legal statutes are in place to restrict youth from gambling, research indicates that the majority of adolescents gamble, with lottery play sometimes being a gateway to other gambling behaviour.

So what’s the downside of young people gambling?

There is a growing body of evidence indicating that teens gamble before taking part in other risky behaviors such as consuming alcohol or using drugs. By 12 years of age, almost 80% of youth have participated in some form of gambling with the most popular gambling activities being card playing, lottery play, sports pools and interpersonal games of skill.

In terms of lottery play, youth favour scratch cards which provide immediate gratification and are available in a myriad of formats with eye catching, colourful and appealing images including popular childhood games, beloved cartoon

characters, and renowned movie themes.

Additionally, with regard to scratch card play, young people perceive a higher probability of winning than with other forms of gambling.

Studies have found prevalence rates for youth and adolescent serious problem gambling range from 4% to 8%. By comparison, severe gambling problems among adults are lower, with approximately 1% to 2% of adults suffering from disordered gambling. Decades of research have also shown that the age individuals begin gambling and an early “big win” are associated with a greater risk for the development of disordered or problem gambling later in adulthood. Adult problem gamblers often

CONVENIENCE & CARWASH CANADA

report having started gambling as early as 9 or 10 years of age. In a recent study from Yale University, researchers found that youth who were gifted instant lottery tickets tend to begin gambling earlier in life. Also, this research supports prior findings indicating that early gambling experiences are associated with future school, personal and social problems.

Raising awareness about youth gambling

In spite of the aforementioned prevalence rates, awareness about youth gambling and the potential for problems remains low. In several national Canadian studies, parents, mental health professionals and teachers were asked to rank the seriousness of some potentially risky adolescent behaviours including drug and alcohol use, smoking, bullying, unsafe sexual practices, and gambling. Participants in each of these studies consistently ranked gambling as the least concerning behaviour. This finding coupled with the normalization, glamorization and expansion of gambling opportunities increases the need to raise awareness about the potential consequences of youth gambling.

For over 20 years, the International Centre for Youth Gambling Problems and High-Risk Behaviours at McGill University has worked to further awareness about youth gambling through research into the underlying issues compelling adolescents to gamble as well as through the development of award-winning prevention materials. Through this research, we know that most

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youth begin gambling with family members or friends, they often receive lottery tickets or scratch cards as gifts, that youth who receive scratch tickets as gifts tend to have a more positive attitude toward gambling, and that many adults are unaware of the potential harmful consequences or risks associated with youth gambling.

In an effort to increase awareness about youth gambling and the potential impact of gifting lottery products to youth, the McGill University team has partnered with the National Council on Problem Gambling (NCPG) in Washington, D.C. and lottery corporations around the world in the annual Holiday Campaign which reminds adults that when gifting lottery products, it important to keep the person’s age in mind. Lottery tickets are not child’s play.

The Role of the Retailer

In North America, specific laws mandate the age required for the purchase of lottery products. Despite these laws, several studies have shown that underage youth try to purchase lottery products without providing identification. Retailers can play an important and vital role in helping reduce the exposure of youth to certain types of gambling activities.

By working together, we can keep lottery play fun and minimize the impact of gambling on our youth.

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By: Sean Sportun, ICPS

JANUARY / FEBRUARY

Safety should be our first concern when we introduce a new hire to our work environment.

PREDICTABLE IS PREVENTABLE SAFETY FIRST – TRAINING IS KEY Speed plays a large role within our industry, impacting our operations on several different levels.

The marketing team is always looking for “speed to shelf ” with new products and new ways of grabbing the customer’s attention. The Operations folks are always looking to improve the speed of service to better serve the needs of customers while the IT organization fights the good fight in keeping up with the lightning speed of technology.

In our never stop, make-it-happen-yesterday world, we cannot lose sight of our responsibility to slow the world down enough to provide our employees with the foundation they need to work safely. Proper safety training supported by a qualified training mentor and all of the right training resources will create a solid foundation for your employees to flourish in the work environment.

It does not take long for those in the world of retail to understand the value of hiring the best qualified person possible. A store staffed with individuals with all the right skills, positive attitudes, and an understanding of the importance of safety is a low maintenance and highly productive store. Stores staffed with individuals who require a higher level of supervision and receive inadequate training demand so

8 November | December 2014

much more of your resources and usually fail to meet your expectations. Consider all the time and money invested in our recruiting efforts to find the individuals with the right skills and motivation. We defeat ourselves by investing time and money in getting the right person if we fail to provide them the safety training they need to maintain a safe work environment.

Safety should be our first concern when we introduce a new hire to our work environment. Here is where self-discipline comes into play. Due to the nature of our business, in most cases we hire based on an immediate need versus recruiting an individual as a means of improving the strength of our front line people. Our industry always seems to be reactionary in our hiring practices. We wait until we need “a person to cover third shift” before we take the proper time required to fill the spot. The formula for failure is to hire an individual out of need, and then throw the person into a checkout As Loss Prevention professionals or Operation leaders, it is important that we help our front line managers understand the value and the greater return of making sure our new hires understand what it means to work safely before we count on them to work unsupervised.

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As an industry, we must put the brakes on this “warm body” approach to filling time slots on the work schedule. The immediate return may prevent the store manager from working that specific Saturday night, but at what expense in the long run?

We need to properly equip our new hires through appropriate and timely training practices. It is a matter of culture. Organizations who teach training first versus throwing a warm body to the wolves are going to reap significant rewards. And not just for the short term. Proper training increases the odds of success and, perhaps, future advancement. You may find that person is the next employee who will rise through the ranks of your organization. If your culture is one that tends to be short sighted, and does not place a premium on safety training then plan on spending a great deal of time processing new hire paperwork. The employees with the skills needed for our industry are looking for organizations that offer the greatest potential for success. Working in a safe environment is one of the first points any qualified individual will look for when searching for a job.

Administering safety training in a timely manner stresses the importance of safety, and helps identify the specific hazards within the work environment. One of the best examples of why safety training is so important is the growth of food service. Food service exposes our employees to equipment with a lot of moving parts, sharp edges and “things” that can remove a finger or two if not properly trained. Assigning a new employee to use food service equipment without proper training can be life changing.

One wrong move with a slicer could cost an employee a finger.

Safety training also plays a role in protecting the general public.

Serving food products outside of the proper temperatures could place your organization in the headlines.

Being timely in training delivery also sends the message to your new employee you value their well-being. Remember, timeliness also includes refresher training for your long term employees. Continue the growth of your long term employees by keeping them advised of changes and process improvements. We never want to take for granted a long term employee is executing their duties in a safe manner. Plus, engaging our employees with safety training regardless of tenure is a proactive move to prevent injuries. When a person is comfortable with their responsibility they are more likely to execute at a higher level, more willing to take on additional responsibility and thereby increasing productivity.

If I were to use a slogan to make this point it would be, “Safety training, it’s not just for new hires anymore!”

It is important to establish a training schedule that aligns with your expectations for new employees. State within your training schedule what topics and tasks are to be covered on specific days during your training process. Should you find those responsible for administering your training are not following your schedule, take corrective action to ensure your employees are not short changed in their development.

Addressing “At Risk Behavior” during the training process increases the chances your new employees will better recognize the actions that put their safety, and the safety of their co-workers and customers, in jeopardy. The concept is simple. Clearly spell out your expectations and plainly state what is permitted. Ex-

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plain that anything outside of those boundaries increases the opportunity for injuries.

Opinions, resources, and your organization’s general approach in facilitating training will determine how you execute your training. The age old debate of Computer Based Training Modules (CBT) versus live facilitated classes or on-line training will continue to spark debate. Following the fundamentals of training will help provide the foundation of safety first no matter the delivery method. Assign a training mentor to help guide your new hires through their initial safety training. Those that serve as your training mentors should be individuals that have performed at a high level for an extended period of time. Training mentors should be individuals who have demonstrated their ability to work safely and take appropriate actions to guard the safety and well-being of others at your location. The individual must possess strong communication skills and the ability to work with others at varying levels of development. Your trainer must have the ability to address negative situations, and be willing to step up when others fail to follow your established safety protocol.

To be effective, safety training must incorporate an instruction phase, a time for live “hands on” demonstration form a wellqualified and experienced employee with time where the trainer and the trainee complete tasks together. Allow for an observation period, where the new employee completes the task on their own under the supervision of their trainer. Follow up with an assessment to determine if the new employee fully understands the instruction they were given throughout their training.

Hands on demonstration allow for the individual to see the task completed as intended. By observing and listening to their trainer the new employee should begin to recognize the potential negative results if something is not executed correctly. This takes the pressure off the new hire by allowing them to see and hear the instructions from their trainer.

Allowing the new hire to team up with their trainer provides them the opportunity to experience the tasks without the fear of failing, or the fear of getting hurt. Plus, this allows the trainer to evaluate the ability of the new employee to follow directions.

Let the new hire experience the process for them self. Give them the feeling of accomplishment, by allowing them to complete the task knowing a qualified individual is nearby should they need assistance.

Assessing or testing a new hire’s ability to execute their duties in a safe manner is one of the most underutilized methods in the training process. The assessment process can be completed online, through a CBT or an actual written document. More importantly, you have a system in place to determine if the person has truly retained the information provided throughout their training.

Remember, the training process belongs to the individual! It is their responsibility to follow your programs, your processes, and know what you expect from their performance. A person that does not embrace your safety training process, and does not take your safety training seriously will likely not work safely when working unsupervised. Demonstrating a willingness to execute their duties in a safe manner will also tell you how serious that individual takes their commitment to your organization.

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JANUARY / FEBRUARY

By Barbara J. Bowes

Older Workers HAVE YOU EVER THOUGHT ABOUT THE ATTITUDE OF YOUR MANAGEMENT TOWARD THE CONCEPT OF AGEISM IN YOUR WORKPLACE? HAVE YOU HEARD COMMENTS SUCH AS:

Yesterday’s Man > Over The Hill > Tiresome > Unable To Change?

Do you silently question whether or not a candidate is close to retirement and therefore should not be hired?

Are you assuming that older workers resist and/or are afraid of your new technologies?

At the same time, are you favouring younger people in how you assign projects? Are you failing to promote older workers?

All of the elements mentioned above deal with one’s attitude toward ageism. Ageism is a means of stereotyping people which results in discrimination against individuals based on age. While many times this type of discrimination is casual and subtle, it also can soon inadvertently creep into company policies and procedures which in turn results in systematic discrimination against older individuals.

On the other hand, according to Statistics Canada, employees over 50 years of age, are staying in the workforce at minimum of 3.5 years longer.

The statistics also show that 60% of those employees that left a long-term job at age 55 to 59, were re-employed within the next 10 years and now comprise 22% of the workforce.

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While many older workers identify that they cannot afford to retire, the majority enter the workforce to continue being productive and enjoying a sense of accomplishment.

So, what do these statistics mean for employers in your industry sector? In

my view, it suggests there is a large, untapped pool of candidates that you could seek out. So check your attitude, fight off the hangover of age-old negative stereotypes and myths, put ageism out of your mind and examine some of the benefits of hiring older workers in appropriate jobs within your company.

However, at the same time, whereas we know that myths and stereotypes about older workers do indeed exist, your organization will need to provide support to managers in order to ensure a welcoming environment for older workers. Some of these supports include the following: • Identify the issues and attitudes within your organization that might cause problems for older workers; prioritize them and begin dealing with them so

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er hand, some of the performance criteria and attributes of older, mature workers includes the following: • Interest in filling work gaps where young people are not available • Offer core skills often found in most businesses • Experienced in working in a variety of organizations and under various operational systems; they expect and easily abide by rules and regulations • Experience in providing quality customer service • Positive personal work attitude and stability • Dependability and eagerness to provide support and guidance to young people • Accustomed to applying different communication skills for different purposes • Demonstrate resilience accompanied by a greater sense of emotional intelligence • Ability to work with a mature clientele • Strong work ethic; punctuality; experience in working through changing conditions • Willingness to work flexible work assignments such as on-call, short term assignments, term positions; • Focus on job satisfaction rather than worrying about moving up and out • Personal self-confidence and a knowledge of what they know and don’t know

that you are not at risk for challenges related to discriminatory behavior; • Provide both management and staff training on the value of older workers, help them to dispel the myths and to rethink and change their attitudes; • Include training on the different values and needs of each generation in your workplace and how to best work together; • Review your recruitment and selection policies and procedures to ensure they

Got Change?

According to studies supported by the American Association of Retired Persons (AARP), many of the myths of hiring older workers has been debunked. On the oth-

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WPMA KEYNOTE SPEAKER

hrough

Comedian/actor/impressionist

Frank Caliendo

Wednesday, February 18

Wednesday, February 18, Ladies’ Luncheon

Hats Off to the Women of WPMA!

Create and bring a vibrant original head piece, don an old hat with a good story, or borrow from our wide array of lovely lids during our social. Join WPMA’s first lady Sue Poulton and her special guests Lara Poulton and Danni Schneidt-Hill for a light-hearted lunch, while exploring the history and the celebration of all the “hats we wear.” As it may be “picture perfect,” it is also a nice way to be recognized for the many things you do. Come join the FUN!

at the Las Vegas, Nevada, USA

Go to www.wpma.com/national-convention to register online or call (888) 252-5550 for information

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JANUARY / FEBRUARY

are not inadvertently discriminating against older workers; this could include items such as rigid scheduling; • Train hiring managers on the Canadian and provincial human rights codes with special attention to items related to older workers, and; • Establish a diversity task force within your organization and make certain older workers are included on committees and discussions.

Most of the research these days places an emphasis on the needs of older workers as being different than younger workers, yet I know from experience that there are also many similarities and these must be taken into consideration. For instance, both younger and older workers are more focused on life work balance; they want to spend time with family and/or set their own hours. With this in mind, flexible work schedules then become suitable to both the younger and older generations.

Both the younger generation and older workers want to be treated fairly, they want to understand the mission and vision of their employer, and work in an ethical and professionally oriented workplace.

They both are comfortable and desire to work in a team environment. Finally, they both want to feel valued and appreciated and be able to relate well to their leadership.

In addition, you might be surprised to learn that older workers have quickly adapted to the high technology available today, both at work and at play. While the younger generation might be communicating with each other, the older workers are not only sharing information with their colleagues but they are engaging with grandchildren and family members.

The first responsibility of a manager in any organization in today’s world is to create a highly diversified workforce inclusive of different generations and different cultures. The second responsibility is to mold the workforce into a respectful, supportive, cohesive and productive team. That means recruiting, selecting, orienting, and developing a team that is eager to maximize their learning and skills so that each and

every employee contributes to the organization and is valued for their contribution.

Everyone in today’s marketplace needs good employees. While many companies are making an effort to recruit foreign workers, be sure to tap into your local market of older workers. As well, now, all across Canada, there is an agency called the Third Quarter with the goal of assisting older workers return to the workforce.

Check out the agency in your district and give them a call. There are plenty of older workers who are ready, willing and able!

Source: Study: Employment transitions among older workers leaving long-term jobs, January 29, 2014, Statistics Canada Barbara J. Bowes, FCHRP, CMC, CCP. M.Ed is president of Legacy Bowes Group located in Winnipeg and is also president of Career Partners International, Manitoba.

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LIGHTING UP SALES

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The market for tobacco and related products is undergoing a shakeup with new products changing the retail landscape.

Tobacco related products are big business. Items such as cigarette papers, lighters, cigars and e-cigarettes are seeing sales close to $270 million at Canada’s C-store operations. This segment represents roughly 17 per cent of total store sales.

Overall, operators report sales of tobacco related items are steady with small but respectable gains. “The market in this area is changing very rapidly,” says Chuck Arcand, Corporate Director of Canadian Marketing, Core-Mark International, a broadline full service distributor with significant presence across Canada. He sees products such as E-cigarettes flattening as their market matures and operators face heightened competitive pressures from unregulated shops selling ‘vape’ products of which some contain nicotine.

CONVENIENCE & CARWASH CANADA

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JANUARY / FEBRUARY

ACCORDING TO VANCOUVER-BASED TVC LIQUIDS, A COMPANY MARKETING A RANGE OF VAPOUR PRODUCTS, HEALTH CANADA HAS NO BUSINESS REGULATING THIS PRODUCT AND ADVISES RETAILERS TO DISREGARD THE ADVISEMENT OF THE FEDERAL GOVERNMENT AGENCY.

Indeed, the biggest news in tobacco-related accessory products is Ecigarettes. Invented in China in 2003, these products heat infused liquids to create a smoke-like vapour that can contain nicotine in levels similar to standard cigarettes.

Since introduction these products really took off.

Just look at the exhibitor list for the recent NACS show in Las Vegas where it seemed that every second booth offered digital smokes.

Here in Canada some project that this form of ‘smoking’ will dominate the market with-in a decade.

Given the early gains in sales and market

presence of E-cigarettes it comes as some surprise to discover there is some fogginess regarding regulation here in Canada where the traditional tobacco smoker is looking for an alternative to their unhealthy practice.

“E-cigarette products, including E-liquids, that contain any amount of nicotine or have a health claim fall within the scope of the Food and Drugs Act and require approval by Health Canada before they can be imported, advertised or sold in Canada,” says Health Canada spokesperson Michael Volerio. He points out that Health Canada has not approved any E-cigarette with nicotine for sale.

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Indeed, the biggest news in tobaccorelated accessory products is E-cigarettes.

Invented in China in 2003, these products heat infused liquids to create a smoke-like vapour that can contain nicotine in levels similar to standard cigarettes. Since introduction these products really took off.

Just look at the exhibitor list for the recent NACS show in Las Vegas where it seemed that every second booth offered digital smokes. Here in Canada some project that this form of ‘smoking’ will dominate the market with-in a decade.

Given the early gains in sales and market ing smokers kick the tobacco smoke habit, technology and enforcement of existing presence of E-cigarettes it comes as some surprise to discover there is some foggi- they are simply not interested in expensive rules. “We really need a more level playing legal challenges and the possibility that field. As it stands now, these Vape Shops ness regarding regulation here in Canada the government could fine stores or can- can sell nicotine-based products and may where the traditional tobacco smoker is looking for an alternative to their un- cel permits to sell tobacco. Presently Mac’s only get a letter from Health Canada asksells 19 SKU’s of E-cigarettes that include ing them to stop. If we did the same thing healthy practice.

“E-cigarette products, including E-liq- disposable and rechargeable items that of- our penalties could be very severe,” he says. fer pleasant fruity and flavoured vapours uids, that contain any amount of nicotine that are considered legal under Health Leading Brands or have a health claim fall within the scope The current market leader in E-cigarettes Canada guidelines. of the Food and Drugs Act and VAPE SHOPS At issue with both distribu- is Vapur, a product introduced in 2012 require approval by Health Canada before they can be imported, ARE GROWING tor and retailer is the preva- by Casa Cubana here in Canada. “Vapur advertised or sold in Canada,” FASTER THAN lence of Vape Shops that are is seeing gains in the market place given selling nicotine products and its branding, its different flavouring, its says Health Canada spokesperCOUNTERFEIT taking customers away from distribution and the way Casa Cubana son Michael Volerio. He points TOBACCO those who are abiding by supports it through its sales team,” out that Health Canada has not SALES AND what many see as government says Patrice Beauchemin, National approved any E-cigarette with HURTING THE regulations. These shops have Corporate Account Director Casa nicotine for sale.

According to VancouverCONVENIENCE become ubiquitous across the Cubana / Spike Marks Inc. He reports based TVC Liquids, a company RETAIL SECTOR, country as have the people that Casa Cubana introduced the Vapur standing outside office build- rechargeable line at the beginning of Q4 marketing a range of vapour ings and residences holding 2014. “The rechargeable line consists of products, Health Canada has vape pipes and exhaling clouds a rechargeable pack (including a battery, no business regulating this of liquid vapour. Informal accounting sug- a USB Port and two flavour customizers) product and advises retailers to disregard gests specialty vape shops are taking in be- and packs of flavour customizers (flavours the advisement of the Federal Government tween $5000 and $15,000 in sales per day. of CLASSIQUE originale, MENTHOL burst, agency. “The truth of the matter is that electronic cigarettes and e-liquid contain- According to Arcand, many of these Vape CHERRY bomb and GRAPE sensation). ing nicotine are completely legal under Ca- Shops are selling nicotine liquids and other The rechargeable line is designed for products not currently deemed authorized ‘loyal’ consumption and offers the most nadian Law,” the company says, suggesting nicotine laced liquids are more appropri- for sale in Canada. “This takes away from competitive consumer proposition on a ately regulated under the Consumer Chem- legitimate business that are hamstrung by stick basis,” he says.

Another brand to watch is Smoke NV. regulations that are not keeping up with icals and Containers Regulations, 2001. technology. Vape Shops are growing faster Owned by physicians and developed as a All this said, majors such as Mac’s and than counterfeit tobacco sales and hurting powerful smoking cessation tool, Smoke Core-Mark have wisely decided to wait for NV is marketed by House of Horvath and the convenience retail sector,” he says. the right paperwork before they enter into Mac’s Category Manager, Western Divi- is one of the top selling E-cigarette brands the nicotine E-cigarette and liquids marsion, Dave Clark wants firm regulations in the country with 32 SKU’s. According ket. Its not that they see a problem with the vapour brands that many claim are help- that take into account recent advances in

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JANUARY / FEBRUARY

• Grab ‘N Go Convenience • Quick & Easy • Great Taste • Great Quality • Unique New Flavours

Canadian Trade House 1-800-829-4098 www. canadiantradehouse.com

By: Saul Katz – President of SoLo GI Nutrition

Sustained energy anyone? Fill up your tank with premium “slowrelease-carbs”!

The most serious concern today among on-the-go consumers is not having enough energy to do what they “want” and “need” to do. We certainly eat enough, but it is the choice of fuel that is key. The wrong type of food sends the body into metabolic chaos causing a roller coaster of blood sugar and energy swings. Knowing what foods to select is the solution to sustaining energy, managing weight and preventing disease.

We know that energy follows blood sugar. We also know that carbohydrates (carbs) are nature’s preferred source of energy for the body and the brain, not fat or protein. Science is now teaching us that the key to sustaining energy for physical and mental performance is to fill up the tank with low glycemic carbs that convert to blood sugar (glucose) on a slow and steady basis, like fuel injection.

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JANUARY / FEBRUARY

Eliminating carbs is like trying to run your vehicle without gasoOverweight, sick and exhausted Canadians are in search of fuel to rev-up their health and performance. In today’s fast paced life- line. By switching from a low-carb to a slow-carb mindset we can fuel the human engine efficiently, as nature intended. style they are reaching for more snack foods than ever before. As a Savvy retailers will use this information to generate higher sales result there has been an explosion in the energy market for drinks, by selecting more healthful slow-carb products and tag them as bars, shots and supplements.

The trouble is the vast majority of these snacks contain rapidly “better for you”. digested carbohydrates, which is driving the epidemics of obesity and diabetes. Others contain unwanted ingredients such as alter- Spike, Crash and Crave – No More The infamous “spike, crash and crave cycle” is actually a survival native sweeteners like aspartame and sugar alcohols that simply mechanism that helped our ancestors store fat during times of don’t supply energy for good human performance. abundance to survive the lean times, much like a bear fattening up After twenty-five years as a pioneer in functional food research for winter. Ironically, this same process is now compromising our and development, one thing is certain. The common link between health and driving diabesity and the energy deficit. better energy, mental concentration and solving the epidemics of Food processing technologies and the pervasiveness of refined “diabesity” is related to the impact of carbs on blood sugar. carbs in our food supply is at the root of the energy deficit, and disOur body is like a high performance vehicle. You can think of ease states such as type 2 diabetes, heart disease, stroke and forms of carbohydrates as gasoline for your brain, central nervous system cancer. The milling (pre-digestion) of whole grains into fine powders and muscles.

If you maintain it and use premium fuel (slow carbs), you can ex- and syrups accelerates the digestive process causing blood sugar to spike. The pancreas responds with a flood of insulin to quickly clear pect superior performance and longevity. On the other hand if you the high levels of sugar from the blood causing the “crash” and fat are hit and miss with servicing and fill up the tank with the wrong storage. Hunting hormones are released which cause the “crave” to fuel (fast carbs), you will cancel your warranty and can expect poor eat, raising blood sugar levels back up. In this way the “spike, crash performance and a broken down vehicle.

CONVENIENCE & CARWASH CANADA

and crave cycle” has led to the crisis of obesity, diabetes and overall poor energy and performance.

The solution is to prevent the blood sugar roller coaster ride by switching to low glycemic (low GI) carb-containing foods that give up their energy slowly, keeping blood sugar levels nice and steady.

The SLOW Down on Carbs

Carbohydrates are arguably the most misunderstood nutrient of today. It is important to remember that carbs are the essential and preferred fuel for your brain, central nervous system and muscles. All carbs, including starches and sugar, are converted to “glucose”, which is blood sugar. It is the rate at which your body converts carbs into glucose that is key. The lower and slower your body raises blood sugar and insulin levels, the better for managing your weight, sustaining your energy and preventing disease.

Just as consumers learned not all fats are bad, they are learning not all carbs are created equal. The answer is not to eliminate carbs but rather to manage them. Substitute rapidly digested, blood sugar spiking (high glycemic) carbs in favour of slow release carbs that lift blood sugar more gently (low glycemic).

This recommendation is supported by health professionals and the Canadian Diabetes Association 2014 Clinical Practice Guidelines.

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The Glycemic Index

The notion of simple and complex carbs has been debunked by the invention of the Glycemic Index. Developed by Dr. David Jenkins at the University of Toronto, the Glycemic Index is the only true scientific measure of how fast and how high a carb-containing food raises blood sugar.

High GI foods contain carbs (“gushers”) that break down quick¬ly giving a quick boost in energy that soon fades, followed by a craving to gorge on more food to keep you going.

Low GI foods contain slow release carbs (“tricklers”) that are converted to glucose more slowly, fueling the body and brain with lasting energy and reducing cravings.

Selecting snacks with a lower glycemic response helps to stabilize blood sugar levels. Retailers should source products that carry the service mark of a qualified laboratory such as Glycemic Index Laboratories ( ) that certifies the product has been clinically validated low GI. Convenience & Carwash Industry Opportunities

Many convenient snack foods such as crackers, granola bars and most energy bars are loaded with rapidly digested, high glycemic carbs. Other low-carb snacks and food bars are formulated with non-caloric alternative sweeteners such as aspartame and sugar alcohols, which don’t appeal to many health conscious consumers and don’t supply carb energy for today’s fast-paced lifestyle.

Armed with this knowledge consumers are rejecting snacks that offer a “quick lift” and empty calories, in favour of quality snacks that provide sustained energy and are nutrient-dense. Energy bars are the fastest growing category through both traditional retail and convenience channels.

This presents a tremendous market opportunity for knowledgeable retailers to offer consumers quality energy bars and snacks that are slow-release and nutrient-rich.

Based upon this understanding and my desire to move society to “raise the bar” in the food industry, I developed SoLo Bars as a nutritious and gluten-free snack alternative.

Packed with low-carb energy Solo’s lower glycemic response provides consumers with energy that sustains, without the spike, crash and crave. Each delicious flavor is clinically validated very low glycemic between 23-35 (under 55 is low). Solo Bars are disruptive to the snacks and bars that are contributing to diabesity and the energy deficit. They are designed to help consumers manage their blood sugar and energy levels throughout the day, without having to sacrifice on the indulgence, do the math or understand the science.

As an industry armed with this information, we have an opportunity if not the responsibility to move society to a healthier place. I invite you to join the slow-carb evolution, to turn back these interlinked epidemics and help your customers finish strong and live long.

Saul Katz is President of SoLo GI Nutrition, Kelowna, BC; Developers of award winning SoLo GI Bars. skatz@solo-gi.com; www.soloenergybar.ca

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By Rae Downing, National Sales Director, Town & Country Uniforms

JANUARY / FEBRUARY

Uniforms for an Impressionable Service With coordinated outfits that reflect the company’s colours, customers can feel that they have entered an organized environment that will satisfy their needs in a quick and effective manner.

Running a convenience store, gas station or carwash requires outstanding personnel that are both knowledgeable and friendly. They need to be properly outfitted for business as well.

Employee recognition is the first advantage of wearing uniforms. For cus-

tomers who require any sort of assistance, employees are more likely to be noticed if they are wearing clothing that bear the colours and/or the logo of the company.

By doing so, customers can experience better service due to the fact that they did not have to spend a large amount of time distinguishing employees from other clientele. Consider walking into a gas station’s convenience store and seeing staff wearing uncoordinated and, possibly, untidy outfits at the cash or refilling stock. As customers, on top of having to find what they need, they now have to figure out who is who if they need help.

Now, imagine the same scene with uniformed staff. With coordinated outfits that reflect the company’s colours, customers can feel that they have entered an organized environment that will satisfy their needs in a quick and effective manner. In addition, because clients generally remember businesses’ through their logo or brand image, having employees wear the colours that reflect them can only reinforce that memory. Recognition is critical to a company as it also cultivates familiarity and a tendency to return.

Another advantage of implementing a uniform program is to foster a sense of pride and teamwork amongst staff. By

providing an employee with a uniform, especially one with the company’s logo, they then take on the responsibility of representing the brand and might feel a sense of pride by doing so. In addition, the employee could simply consider the wearing of their uniform as their indication of being at work. Putting on their uniform can translate to turning on their

“professional switch” and they can focus more on serving the customer. Besides giving employees a tangible indicator of being at work, being easily identifiable can also play into increasing a sense of teamwork amongst staff. Everything from acknowledging new employees to being able to ask for help during rushes can be improved with uniform-wearing co-workers, therefore creating stronger team spirit amongst staff. This, in turn, can have a positive effect on how

CONVENIENCE & CARWASH CANADA 

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Uniforms are made to be easily washed and are to be worn on a regular basis and are most often made from polyester materials or polyester blends.

made to be easily washed and are to be worn on a regular basis and are most often made from polyester materials or polyester blends. In addition, because of the demanding job descriptions of business and industry, comfort, breathability and durability are qualities that most uniforms have. These attributes tend to entice employees to wear the uniform provided rather than wear their own personal gear. The ease of having a uniform can also help employees with wardrobe decisions.

they perceive the business’ products and services and they might have a stronger desire to better reflect the company by providing an improved customer service.

Uniforms are meant to be worn and washed frequently. Their life expectancy is different from regular articles of clothing and should be perceived as separate from a personal wardrobe. Uniforms are

Uniforms benefit companies by reproducing logos on business clothing and reminding customers of the brand. In ad-

dition, uniforms can establish a sense of belonging in those who wear them. They also aid in improving team work and are an easy way for staff to come to work prepared to face the industry’s demands. All these features of uniforms will help the company leave an impressionable service that will help build customer loyalty and brand recognition.

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By: Stewart Schneider, Marketing Manager TFB & Associates Limited

Good for What Ails You The medicated confectionery market in Canada is currently estimated at $114 million dollars in retail sales nationally with about $13.5 million of that going through Convenience and Gas Banner =Chain Convenience outlets and likely another $10 million of that going through the independent convenience outlets. The lion’s share of this market is controlled by the Grocery Drug and Mass Merchandiser outlets however they do not have a 100% lock stock and barrel on the market.

How do you capture a bigger share of this market for your outlet ?

Merchandise the category properly

If you are going to grow your sales in the category you should know what to stock and where to stock it.

Historically cough drops are merchandised on the top one or two shelves of the cough gum mint rack. Consumers expect to find their cough drops there…so if they come into your store with a cough or cold coming on this is where they will take a quick look and hopefully find a good selection with the brand and flavour they prefer. A good selection will require about 10 to 12 options to cover the market and a good rule of thumb is to have the top three or four items from each brand available. Depending on your store’s fixtures you can provide additional selection. One of the silliest things I have seen is some stores with extensive racking is

the duplication of their display on two sides of the cash. If you have additional space you should add more variety not double up on a limited selection. Do not go overboard on adding selection but provide as wide a brand and flavour assortment as is possible within the space you have available.

Your biggest advantage over the mass retailers is the frequency with which you see your regular customers and the personal service you can provide them at the cash. People do not plan to catch a cold or cough and if you are the first point of contact with a solution to their problem you can beat the mass retailer to the sale. To do this you have to have the category covered with a viable assortment and the customer has to find it quickly.

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JANUARY / FEBRUARY

Typically the cough drop market index falls to about 80 in the summer months with and index of about 120 in the peak season.

Take Advantage of Seasonality

The time to expand your offerings in the medicated confectionery category is from about November 1st through the end of March when cough cold and flu season is at its peak. Typically the cough drop market index falls to about 80 in the summer months with and index of about 120 in the peak season. Over the summer months, people still get colds (sometimes the worst cold to have is a summer cold) and also feel the effects of seasonal allergies of which the number one symptom is nasal congestion which is relieved by the high concentrations of menthol in cough drops.

The time to add additional secondary displays in the category is during the peak season. These can be a small counter display (available from the manufacturer through your wholesale distributor) or, at minimum, you can place an additional shelf box on the top of the counter as a purchase trigger for your customers.

Communicate with your Customers

The biggest merchandising tip and sales booster can be a simple suggestion at the cash register. If you notice your customer has a stuffy nose or stubborn cough make a suggestion to help them out. This is a perfect opportunity to build a better relationship with your customers and also to build add on sales.

Say “bless you” if they sneeze they will smile and then you can say, “Could you use something for that cold/ cough? We have sugar free Cherry ones right over here.”

Personal service is your magic weapon, something the giant mega stores cannot deliver. As you get to know your customers better you can also build your stock selection to suit their preferences and become their “go to” outlet in times of need.

Your biggest advantage over the mass retailers is the frequency with which you see your regular customers and the personal service you can provide them at the cash.

If they sneeze they will smile and then you can say, “Could you use something for that cold/cough?

We have sugar free Cherry ones right over here.”

CONVENIENCE & CARWASH CANADA

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By Eva Chambers

Less Gas, More Performance

Performance Enthusiasts and Flex Fuel Customers Meet at Arcade Station

By: Eva Chambers

Until Arcade Station opened their doors in July 2014, there were no fuel stations that sold E85 west of Ontario. An ethanol

Vancouver’s Only E85 Station One of Arcade’s co-founders also shares his customer’s passion for great automotive performance that further motivated him to get into the gas station business. While Arcade also sells diesel and regular fuel, they opened the site primarily to offer E85 to customers that were looking for a higher performance fuel and those who had flex fuel requirements.

“For vehicles that either come from the manufacturer E85ready, or for those modified in the aftermarket, E85 provides the higher octane and lower engine temperature necessary to extract more performance from a vehicle’s engine than would be possible using a traditional petroleum gasoline”, says Arcade Station co-founder Devin Redlich. “While the numbers vary by vehicle, a 20% performance improvement is typical when comparing E85 to even premium gasoline while CO2 emissions are reduced by 30-40%.”

In order to offer the E85 fuel, Arcade’s owners needed to make some changes to their existing site and equipment. They wanted to keep the iconic retro

fuel blend of 85 per cent denatured ethanol fuel and 15 per cent gasoline there was a high demand for E85 from a local Vancouver community of performance enthusiasts who were willing to drive all the way to Washington State to buy the fuel and bring it back in jerry cans. This is why Devin Redlich, Amir Nazary, Conal Campbell and Rob Goehring partnered to open up a much-needed E85 gas station in the Vancouver, British Columbia area.

Innovation >> the patented turbo-sweeping system The patented Haaga turbo-sweeping system was awarded the gold medal and the president‘s prize of honour at the 2009 Inventor Show in Strasburg. Haaga is the only producer of sweeping machines that has ever been awarded such a commendation.

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CONVENIENCE & CARWASH CANADA

look of their station and minimize costs.

So they retrofitted their existing pumps and some of the underground delivery systems to be E85 compatible. This was neither simple nor inexpensive, but it was more cost effective than buying entirely new pumps and other equipment. With their new site ready to serve E85 fuel, the next step was to let customers in the area know they were open for E85 business.

To help them with their marketing, they reached out to the experts at The Canadian Renewable Fuels Association (CRFA) for guidance on how to build awareness around their station. In addition to assisting Arcade Station’s owners with their awareness campaign, The CRFA also congratulated Arcade Station on their site opening, and had this to say, “Canadian consumers deserve more choices at the fuel pump, and Arcade Station has delivered,” states CRFA President Andrea Kent.

“E85 is a high octane fuel needed to run today’s smaller, high-performance engines that simultaneously reduces harmful tailpipe emissions from our air.”

Fuelling infrastructure turnover requires significant time to build out properly. The CRFA recommends that governments encourage existing pump turnover and new market entrants by providing tax incentives to those individuals who want to offer consumers these alternative fuels.

“The production of ethanol used in Arcade Station’s E85 blends is an economic

growth engine, creating jobs in rural communities and supporting Canadian farmers,” says Kent.

We contacted Michelle Aron, the Communications Advisor for Natural Resources Canada to find out what the regulations around ethanol fuel are. He told us that the 2010 Federal Renewable Fuels Regulations require fuel producers and importers to have an average renewable content of at least 5% based on the volume of gasoline that they produce or import. Ethanol is a renewable fuel because it is produced from biomass and burns more cleanly and completely than gasoline or diesel fuel and can reduce greenhouse gas emissions (GHG) in transportation. Ethanol reduces GHG emissions because the grain or other biomass used to make the ethanol absorbs carbon dioxide as it grows. Although the conversion of the biomass to ethanol and the burning of the ethanol produce emissions, the net effect can be a large reduction in GHG emissions compared with fossil fuels such as gasoline. The reduction depends on the feedstock and the production processes used to make ethanol.

Educating people about the pros and cons of using E85 fuel is at the core of Arcade’s marketing plan. Many people who own flex fuel or high performance vehicles may not be aware of the pros and cons of E85 fuel. To help promote E85 fuel usage, they partnered with the local E85 performance enthusiasts to build awareness and

35

ultimately convert more flex fuel customers to E85. An important part of the educational process is providing helpful and easy to access information around flex fuels. To find out more about ethanol we have provided several sources at the end of this article for your information.

While Arcade Station’s performance enthusiasts were elated over the availability of E85 locally. The local E85 community continues to provide the necessary education and missionary work to persuade additional performance enthusiasts to try E85 and see what it can do for the performance of their vehicles. While it’s not an overnight process, they want to reach out to the tuners as well, but that’s not the reason we’re in this business.

Since Arcade Station has been open for several months now, we asked Devin Redlich how their customers have reacted to the availability of E85 in Metro Vancouver. He told us that the reaction has been universally positive. “Primarily, our E85 customers are automotive enthusiasts and tuners who recognize that running E85 provides among the greatest bang-for-thebuck performance modifications that they can make to their vehicles. Beyond the tuner crowd, we also serve customers who own vehicles that come standard with E85 compatibility.” Arcade’s customers’ motivations to use E85 fuel are a combination of improved performance and environmental concern, but again, the availability of the product has drawn consistent praise from this group as well.

If you’d like to visit Arcade Station, they are located at 4370 Marine Drive in West Vancouver. Arcade Station is also focused on providing full service for self-serve prices. Come visit the station and talk to their friendly staff. They are knowledgeable about flex fuels and always interested in talking to customers about their fuel requirements.

For more information about Arcade Station, visit • http://arcadestation.ca • Facebook at http://fb.com/ArcadeE85, and • Twitter at @ArcadeE85.

For additional information on the Renewable Fuel Regulations and the benefits and applications of ethanol, please visit the following websites: • http://www.ec.gc.ca/energie-energy/default asp?lang=En&n=0AA71ED2-1 http://www.nrcan.gc.ca/energy/alternative-fuels/fuel-facts/ethanol/3493 Canadian Renewable Fuels Association (CRFA) website: • http://greenfuels.org/

OPW Nozzles Won’t Leave You Out in the Cold!

36

JANUARY / FEBRUARY

OPW ULC Listed Nozzles are Compatible to -54°C [-65°F] Tough, durable and reliable under the most extreme cold weather conditions. OPW cold weather nozzles including the OPW 11A®, 11B®, 7H™, and 7HB™ are ULC listed, compatible to -54°C (-65°F).

For additional information on OPW ULC listed nozzles, please visit: www.opwglobal.com

So when your application requires your equipment to perform in severe arctic type conditions, trust the nozzles found in more locations worldwide than any other brand—OPW… the brand that won’t leave you out in the cold.

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By: Fred Grauer, Exec VP Vacutech LLC

CONVENIENCE & CARWASH CANADA

CARWASH TRENDS 2015 I THINK IT’S INTERESTING. HOW CAR WASH OPERATORS SOUTH OR NORTH OF THE USA/CANADIAN BORDER VIEW THEIR FELLOW OPERATORS. UNLESS AMERICANS TRAVEL TO CANADA, AND OR CANADIANS TRAVEL SOUTH, READ APPLICABLE TRADE PUBLICATIONS OR VISIT WITH OPERATORS ON EITHER SIDE OF THE BORDER AT TRADE SHOWS THEY REALLY DON’T HAVE A CLUE. HOW SAD IS IT THAT THERE ISN’T MORE EXCHANGE OF KNOWLEDGE SHARED BETWEEN OUR TWO MARKETS. IN THE SPIRIT OF EXCHANGE THERE ARE A FEW ITEMS OCCURRING ON EITHER SIDE OF THE BORDER THAT WE CAN ALL BENEFIT FROM?

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JANUARY / FEBRUARY

AMONG THE MANY ITEMS THAT THE CANADIANS HAVE DONE TWO COME IMMEDIATELY TO MIND. Among the many items that the Canadians have done two come immediately to mind. The first is your “under one roof ”, single entrance/ exit “barn” style selfserve washes. What a great way to manage a site and provide a really pleasant environment for your customers. Stay as long as you want, pay by the minute, use whatever is offered, absolutely brilliant.

The other that is a game changer, “tap and go”. What a great way to speed up the financial transaction. Move customers in and out at a faster pace without people scrambling for cash. At this point there is rumor that “tap and go” will make its way south. Hopefully soon! As we all know speed, production, and financial management are key ingredients to the successful operation of your business.

The USA car wash market has certainly had its challenges. Beginning in 2007 the USA economy took a real nose dive. As you can well imagine rising petroleum costs, the financial crisis, high unemployment, and the ensuing reduction of expendable money put a real crimp on the entire car wash market. The car wash community had been severely impacted. Wash volumes were down, expenses were up, and everybody was scrambling for the few dollars that were on the street. Added to this was the additional impact of no lending, rising labor cost, more government intervention and oversight, all in all the perfect storm. It has been said that in every seed of adversity there is an equal or greater seed of opportunity. Never could a more truthful statement been said! People weren’t spending, out of necessity and survival there evolved a number of new and exciting business models.

One of the challenges was, how do we get the consumer back to our facilities

after the downturn? Has the value equation changed? What do we know about the consumer? What have we been doing that is no longer has the perception of value?

Is it price, service, convenience? Just what is it we need to do to attract the customer back as well retain that person.

From the ashes came two business models. The first is the “express model”. The customer remains in the vehicle, does their own interior cleaning, payment transactions are automated, and you deliver a clean dry shiny car, quickly, with minimal human intervention and contact. Easy in easy out!, perfect for the pressures of today’s busy customers. The second is the flex model, a combination of the express (keep the customer in the car) and a full service. After riding through the wash the customer has the option to pull the vehicle into an express finishing area to receive selected additional services.

For these two models to be successful it needed at least two major attractors. But before they could be developed you needed to ask the question of what didn’t the customer like about the previous model?

In the case of the full service car wash the biggest complaint was interior cleaning, the inconvenience of exiting my vehicle, entrusting someone other than “me” being in “my” space”, speed, and cost. Wow those are some serious objections and as such great opportunities.

So what are the attractors? The first was to acknowledge the failure to meet expectations on the interior; the second was to acknowledge the need to provide service, convenience, safety and speed at an affordable price. In other words a brand new value equation!

“Free Vacuums”, provide the customer the most powerful vacuums in the world and let them take the responsibility for the interior. They are in and you are not, a win, win! Less labor fewer complaints, happier customers, and its “Free” “Unlimited club memberships”. Provide the opportunity for your customers to join the club, provide them a discounted price incentive, and bill them monthly for the membership. Regardless of rain or shine

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CONVENIENCE & CARWASH CANADA

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JANUARY / FEBRUARY

Easy, Efficient, Affordable And Reliable Washing Equipment To Wash Your Fleets!

Istobal USA is proud to introduce its Drive-Thru car wash for Fleets and Dealers. Durable 5 component system available in multiple configurations. Washes up to 100 cars per hour with our Link It foam brush material. Low maintenance, low cost per car, powder coated all aluminum frame available in multiple colors. Several other options available.

TECHNICAL DATA - Water supply: 18 gpm @ 40 psi 1” incoming service - Air supply: 90 psi at the compressor 1 CFM min - Electrical: 3 phase 208/480 volt 30 amp circuit - 60 hertz 110v control power 15 amp circuit

SPACE REQUIREMENTS Wet wash: 29’ length x 15’ width x 12’ height From humble origins, ISTOBAL has grown into a force to be reckoned with worldwide, exporting Vehicle Wash Equipment to more than 68 countries and employing more than 800 workers. Contact us today for more information or to find the distributor in your area.

Istobal USA - 1100 Page St. Bristol, VA 24201 (800) 336.8795 - www.istobalusa.com - info@istobalusa.com

CONVENIENCE & CARWASH CANADA

you have a guaranteed monthly income from your club members. Add the convenience of RFID (radio frequency identification tags) and the customer doesn’t even have to use their credit card or cash to activate the wash.

What a wonderful solution to meeting the competitive environment. You have a guaranteed monthly revenue, you have reduced your labor cost, minimized complaints , provided a convenient low cost solution to keeping a costumers car clean, eliminated employee involvement in the vehicle, except for flex, and have basically attacked those areas that were complaints. The bottom line an investment in hardware, training of customers and employees, rerouting of traffic patterns, investment in central vacuums, signage and improved profit picture.

How do we validate the above? Do they really produce the results? Ask an operator who has moved to an express, flex, unlimited wash program and or free vacuums would they change back? Reports of 25-30-40% growth in sales and profits are normal. One operator who has a side by side in-bay installed four “free vacuum” positions with a central vacuum system reported greater than a 20% monthly return on investment. Now if that isn’t incentive I don’t know what would be!

The final question, are these programs applicable to all car washes? You be the judge! It’s not the plan that fails it’s the execution.

Fred Grauer is the Executive Vice President of Vacutech LLC and can be reached at fgrauer@vacutechllc.com

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JANUARY / FEBRUARY

Q&A CONVENIENCE & CARWASH CANADA

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Sponsored by

What is the most important item of a carwash door to keep cleaned and why?

It is a good idea to clean all of your door and operator components regularly.

The main reason for this is that the door is constantly being sprayed with chemical and soap that is used to clean the vehicles. Although the chemical is washed off the vehicle, it does not get washed off of the door. Therefore, excess soap and chemical can dry and form layers on your door panels and hardware.

Cleaning all of the door and operator components is important, but in my opinion the two most important items to keep clean are the door sections and the operator trolley on pneumatic openers. The sections are important because chemical will rinse off easily until it dries and hardens. Over time, multiple layers can form on top of each other and it becomes more difficult to break down the layers and get the sections back to their original appearance. Keeping your sections clean will prolong the life of the product and also keep your building looking new and well maintained.

The second most important item to keep clean is the operator itself. If you are using a direct drive trolley operator, the dirt and chemical that is sprayed off of the vehicles is sprayed onto the opener as well creating the same buildup and layers as on the door sections. This buildup can result in slower door travel speed or cause the door to open and close with a jerky motion. Keeping the tube and carriage clean on your opener will ensure that the door is operating smoothly and quickly.

Why is it important to remove snow from around vacuums and the air centres. It sounds basic but we’ve all been to sites that don’t do a great job of keeping their carwash sites clean and free of obstructions?

The reason to keep snow and ice cleared away from around the Vacuums and Tire inflators is mostly for safety...so people can safely access them to use them. Some sites do a great job of keeping this area clear....and others don’t do anything. It’s always been that way. As a consumer...I’m going to use Vacuums that are cleared of snow and easily/safely accessible.

One of the issues is the snow plow contractor....often they push feet and feet of snow up against this equipment. The site operators don’t always discuss with their plow contractors...where they want the excess snow piled....so they...just put it anywhere they choose...and sometimes that’s in a bad place.

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By Peter Sutherland

JANUARY / FEBRUARY

Measuring Success at the Pumps To increase profits you must do more than just comply with the regulation.

Measurement Canada’s new regulation requiring that all meters be tested by a Measurement Canada authorized service provider can be good for your service station business. The most efficient and profitable service station operators have known for years that incorrectly calibrated meters are the leading cause of unexplained fuel inventory shortages and lost profits. In a recent program that Tanknology implemented on a series of service stations that did not have a regular meter calibration program in place, the average annual savings that could be directly attributed to the meter calibration was over $2000 per site. By forcing retailers to address potential problems with meters, Measurement Canada may actually be helping the bottom line of service station businesses.

A full background of events leading up to the regulation can be found at; http://www.gazette.gc.ca/rp-pr/p1/2013/2013-11-02/html/ reg1-eng.html#archived

Measurement Canada certificate plate put on all pumps.

The testing of your meters is done on behalf of Measurement Canada by an Authorized Service Provider (ASP), a contractor who has gone through a process of training and testing before being listed by Measurement Canada as capable of testing on their behalf. When choosing an ASP it is important to know the difference between a Measurement Canada Certification and a regular meter calibration; one being an inspection and the other being an actual adjustment if necessary.

A standard Measurement Canada Certification will involve the ASP completing a number of checks on your dispensers based on the notice of approval for your particular pump. This series of test procedures is designed to protect consumers from meters that either do not dispense the correct amount of product or through some other fault short change consumers when buying fuel. The tests are not designed to protect fuel retailers or save them money. Below is a link listing all of the checks that will be done during the certification of your meters.

pump you can look up all of the specific requirements for your particular device at the following link; Notice of Approval list: https://strategis.ic.gc.ca/ scripts/mcprod.wsc/noa-ada-eng.w If any of these items are not exactly as they should be you will receive a notice of non-compliance which is also forwarded to Measurement Canada so that they can follow-up to make sure that the necessary corrections and repairs have been made. The ASP certifying your meter does not have any authority to either assess fines or lock out your equipment. That is done only by Measurement Canada and only when the circumstances require it. The ASP works for you and cannot show up on your site unless invited and or hired by you. You have the choice of choosing any certified ASP that you would like to use that is certified and trained to do the work. While completing a Measurement Canada Certification the ASP must complete a notice of non-compliance when one of the test procedures is failed and cannot be rectified before they leave the site. Once a notice of noncompliance is produced the site owner has 10 working days to complete all required repairs necessary to put the non-compliant dispenser in compliance.

There are penalties that Measurement Canada has the authority to assess in cases where the requirements are not being followed.

The potential administrative monetary penalties and fines are listed at the following link; http://l aw s-loi s.ju sti ce.gc.c a/eng/regul ation s/ C.R.C.,_c._1605/page-74.html#h-109

This new regulation will be implemented over the next two years. The due date for your particular meters to be tested is determined by the postal code of your site. Once the meters have been tested a Measurement Canada Sticker will be placed on the front of your dispenser clearly showing a date when the next meter test is required. A list of the due dates for each postal code can be found at;

http://www.ic.gc.ca/eic/site/mc-mc.nsf/eng/lm04396.html

http://l aw s-loi s.ju sti ce.gc.c a/eng/regul ation s/ C.R.C.,_c._1605/page-76.html#h-116

If you know your pump make and model which is on the Measurement Canada plate attached to your

Once you have had the meter certified by an ASP that does not necessarily mean that you have got-

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Tanknology Ad:Layout 1 05/12/13 3:46 PM Page 1

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JANUARY / FEBRUARY

CONVENIENCE & CARWASH CANADA 

ten the maximum value out of the calibration service unless your ASP has adhered to more stringent standards. This is the major difference between a Measurement Canada Certification and a meter test that will result in identifying and adjusting meters that are giving away product. The Measurement Canada regulation only required that meters dispense with an accuracy of plus or minus one half of a percent of the true volume. This means that your meter could be within their tolerance but still give away up to five thousand litres for every million litres that you sell.

Most service stations dispense more than three million litres per year so you can see that the potential fuel give away can be very costly.

There are many things to be considered when deciding on how to address this. With the complexity of computerized fuel dispensers, retailers need to be sure that the calibration is being done properly.

Today’s new technologies allow meters to be corrected extremely accurately but caution is required to assure that costly mistakes are avoided. For example, with some technologies it is not required to measure and minimize the effects of temperature

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during a meter test, however, for every single degree of temperature change that is not accounted for the potential error could lead to hundreds of litres of fuel being given away with the cost coming directly off your bottom line. Even though you can get the meter certified you will not get the full value of that work unless these issues are considered.

In order to get the most out of this program you will need to be aware of how meter calibration fits into a total fuel management program so that you will know when your meters are an issue and how to minimize fuel losses. This process involves constant monitoring of your inventory records and being able to identify when loss trends fall outside of an acceptable range. Over the past two decades it has become clear that businesses that pay attention to these details are more profitable. The secret is not in simply complying with Measurement Canada’s certification requirement but in understanding the entire fuel management process and how it will make the difference between a profitable business or one that struggles to keep their head above water.

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JANUARY / FEBRUARY

What’s New

Hershey Acquires Allan Candy Company The Hershey Company has announced that it has completed the purchase of The Allan Candy Company, a leading North American manufacturer of quality confectionery products based in Ontario, Canada.

Allan Candy is well known across Canada for its iconic confectionery brands, including Allan, Big Foot, Hot Lips and Laces. Allan Candy is also a leader in the Canadian Easter novelty chocolate segment and the Canadian Candy Cane market. More than half of Allan Candy’s current manufacturing capacity is used to make Hershey Sweets & Refreshment products such as Jolly Rancher hard candy and Lancaster caramels for North America. The acquisition of Allan Candy builds on The Hershey Company’s long-standing business in Canada and its commitment to the Canadian market. In 2011, The Hershey Company acquired British Columbia-based Brookside which today is its sixth global brand alongside Hershey’s, Kisses, Reese’s, Jolly Rancher and Ice Breakers. With the purchase of Allan, Hershey operates three confectionery-manufacturing facilities in Canada, including Allan Candy’s 170,000 sq. ft. facility located in Granby, Ontario, which is part of the acquisition. Hershey’s operations in Canada now total approximately 900 employees across the country that work in the company’s second largest sales market in the world.

Hershey has approximately 13,000 employees around the world. The company, which has more than 80 brands around the world that drive over $7.1 billion in annual revenues, includes such iconic brand names as Hershey’s, Reese’s, Hershey’s Kisses, Twizzlers and Ice Breakers. The Allan Candy Company Limited is a leading North American manufacturer of quality sugar confectionery and chocolate products with approximately 400 employees.

Convenience & Carwash Canada Magazine (CCCM), announces the appointment of Eva Chambers to lead their digital and social media efforts.

In her role she will work with the magazine’s publisher, Brenda Johnstone to bring readers an enriched and interactive experience by increasing the magazine’s digital presence using a variety social and mobile platforms. Digital strategies will also focus on driving revenue and results for advertising clients and affiliated industry association partners.

Additionally, Chambers will be a contributing writer for the publication.

“Eva will be working hand in hand with our publishing team as we develop an even more compelling digital presence in 2015. Her skills and knowledge of the Convenience & Petroleum Equipment Industry, combined with her expertise in the constantly evolving digital landscape, are key to ensuring CCCM continues to provide the best editorial experience for our readers.”

Chambers comes to Convenience & Carwash Canada with a B.A. Corporate Communications and is completing her M.S. Interactive Media.

Ad Index Airlift Doors................................................. 39 Bulloch Technologies Inc............................ 47 Canadian Trade House.............................. 22 Casa Cubana ............................................ 19 CoreMark Int’l....................................... 10, 29 Direct Cash............................................. OBC General Mills ........................................... IFC Gourmet Chips......................................... IBC Havana House............................................ 15 House of Horvath....................................... 17 Innovative Control Systems........................ 31 Istobal USA................................................. 40 Jasper and Jasper ..................................... 18 Lustra Professional Car Care Products...... 39 McCowan Manufacturing.............................. 7 MI Petro / MacIntosh Petroleum ................ 34 OPW Fueling Components......................... 36 PDQ............................................................ 44 PEI................................................................ 9 Scholtens.................................................... 25 Solo Protein................................................ 24 Tankology .................................................. 43 Turltle Wax.................................................. 41 WPMA........................................................ 13

Sales Position Available at Blendco Systems Blendco Systems, a division of DuBois Chemicals, is looking to hire a proven sales professional proficient in all types of car washes to join our sales team. This individual will be responsible for helping Blendco grow within Canada. In helping to grow in the Canadian provinces, this individual will be expected to work both independently and with distributors as needed. Responsibilities include providing service and support to existing distributors while helping Blendco grow the distributor channel.

Candidates must reside in Canada.

Requirements: Previous experience in the carwash industry Previous sales experience Reside in Canada Computer proficiency and basic knowledge of MS Office Bachelor’s degree or better is preferred.

To apply for this position, please email your resume to bmccurdy@blendco.com.

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