Convenience & Carwash Canada mag nov web

NOVEMEBER | DECEMBER 2017

Canada’s most read Canadian owned and operated Convenience, Retail Petroleum and Carwash Publication CASHING IN WITH MOBILE PAYMENTS PAGE 26

LEGALIZATION OF CANNABIS: WHO WILL HANDLE DISTRIBUTION PAGE 35

FORECOURT INSIGHT: TALKING ABOUT TANK SUMPS PAGE 19

WASHROOM CLEANLINESS MATTERS PAGE 30

BLUEPRINT TO FOODSERVICE:

PM41670539

BREAKFAST OPTIONS FOR SUCCESS

MAKING AN IMPRESSION WITH UNIFORMS PAGE 11

LOYALTY PROGRAMS: ALL YOU NEED TO KNOW PAGE 15

For everything you need.

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Candy Coffee Cold Beverages Foodservice Fresh Sandwiches

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Calgary 1-800-242-8402

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Vancouver 1-800-663-9963

Table of Contents Cover Story

Petroleum and Carwash

Industry News

Instore and Nutrition

22 19 07 11

Blueprint to Foodservice – Options for a successful breakfast

04

Publisher’s Message – 2017 NACS/PEI Show

Forecourt Insight – Tank sumps

WCSA Report – Legalization of cannabis

Uniforms – An investment not to be overlooked

26

08

15

Mobile Payments – Benefits for carwash owners

05

NACDA Update – 2017 National Convenience Industry Summit

Loyalty Programs – All you need to know

30

35

Editor’s Message – Jump onboard the loyalty bandwagon

Washrooms – Don’t flush profits down the drain

Legalizing Cannabis – Who will handle distribution

40

POS Systems – Point of Sale data

What’s New?

Upcoming Events February 20-22, 2018 December 11, 2017 WPMA Expo (OCSA) Queen’s Park Day The Mirage Hotel, Las Vegas, NV Contact Donna Montminy donnam@conveniencestores.ca www.wpmaexpo.com March 5, 2018 (OCSA) Race is on Gala Contact Donna Montminy donnam@conveniencestores.ca

July 19, 2018 OCSA Golf tournament Contact Donna Montminy donnam@conveniencestores.ca

April 26 – 28, 2018 Int’l Carwash Association (ICA) Las Vegas Convention Centre www.TheCarWashShow.com

69 Industry Updates

October 7 – 10, 2018 NACS/PEI Las Vegas Convention Centre www.nacsshow.com

CONVENIENCE & CARWASH CANADA 3

Publisher’s Message

Hello and welcome to our last issue of the year.

A few weeks ago our team travelled to Chicago for the 2017 NACS/PEI show and were happy to meet up with old friends and some new we met along the way.

The show this year offered some great new ideas and introduced some new products. I can’t reference any companies specifically but can say that the newest and greatest products were the technology coming for the petroleum dispensing market, the loyalty program market and the biggest new products come from the healthy foods products with the largest segment being protein; protein bars, protein snacks, protein water, protein juices, protein shots and then the gluten free products. The chilled coffee products also stood out, surprisingly to me was the taste. I expected overly sweet, thick concoctions but rather was treated to a light, refreshing and delicious drink selection from a new product in the market, Califia Cold Brew Coffees who were named 2017 Convenience Store News New Product for Innovation at the NACS Show in Chicago.

If you’ve yet to travel to a NACS/PEI show, what are you waiting for? This is one of the very best opportunities to see an abundance of new products and services that can help you grow your business, increase your traffic and ultimately increase your bottom line. The 2018 NACS/ PEI will be held in Las Vegas, don’t miss it!

This issue we are offering you an editorial that will make you rethink your bathroom. That’s right, your bathroom. How many people travel, whether for business or pleasure and ultimately have to stop along the way to use a public bathroom? Do you stop at a retail petroleum site or look for a restaurant? If you, as a retail petroleum, convenience store or carwash operator aren’t stopping at one of your own type sites it may be because your site bathroom isn’t quite what you have as your own personal standard and I ask you why? If your bathroom isn’t someplace where you personally would stop and use you might want to read on and see what you can do to make your bathroom one that gets great reviews or maybe you might win the bathroom of the year award sponsored by Cintas www.bestrestroom.com/canada Remember, bathrooms matter Last issue we introduced you to a new regular feature to appear in each issue, Blueprint to Foodservice; this issue we offer you breakfast. Breakfast is one of the fastest growing categories in foodservice breaking over $30 billion with the major focus on foodservice. The first meal of the day could be the best shift in your store. Coupled with our loyalty programs, uniforms and the mobile payment options, this issue is sure to provide you with great insights on increasing your sales over the winter and making your site the best in the neighbourhood.

Go ahead, break some sales records and enjoy the read.

As always, your business is my business and my door remains open to you. Should you have comments, opinions or perhaps a story idea, please email me at bjjohnstone@convenienceandcarwash.com.

Until next time, Brenda Jane Johnstone Publisher

4 NOVEMBER | DECEMBER

Editor’s Message

PUBLISHER Brenda Jane Johnstone bjjohnstone@convenienceandcarwash.com SALES Cody Johnstone Vice President, Sales 416-838-4674 codyj@convenienceandcarwash.com Brenda Jane Johnstone 204-489-4215 bjjohnstone@convenienceandcarwash.com MANAGING EDITOR Angela Altass editor@convenienceandcarwash.com DIGITAL/SOCIAL MEDIA Eva Chambers echambers@convenienceandcarwash.com DESIGN AND PRODUCTION Doug Coates, Edge Advertising Keith House, Ad Production EDITORIAL ADVISORY BOARD Ian Burton, Istobal 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 Angela Altass Lee Barter Meline Beach David Dougherty Ed Kammerer Andrew Klukas Caleb McMillan Sarah Pritzker

Jump Onboard the Loyalty Bandwagon

Loyalty is an oft sought after characteristic that is desired by both retailer and customer alike. In this issue of Convenience & Carwash Canada, Sarah Pritzker provides insight into different types of loyalty programs and how they work.

While there might be varying viewpoints over who expresses loyalty and how, everyone seems keen on the idea.

Kitewheel-sponsored research shows that nearly threequarters of consumers believe that loyalty programs should be a way for brands to show consumers how loyal they are to them as a customer but two-thirds of marketers see it the other way around.

The 2015 Loyalty Report – Canada Edition of the Canadian Marketing Association, based on results from surveying 6,000 Canadians, found that loyalty program enrolment was up over 2014 from 9.8 programs per member to 11.1 per member.

Loyalty programs are popular and people don’t mind carrying around several loyalty cards, or increasingly, they are keeping all their loyalty information in one easily accessible place, on their smartphones. As this information becomes easier to carry and share, the expectations for businesses to provide loyalty programs will increase.

Whether you view loyalty as something to show to consumers or whether it is something you are seeking from your customers, it’s worthwhile to consider getting onboard the loyalty bandwagon, if you aren’t already there.

Angela Altass Managing Editor

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

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

Kick Stick – page 17

CONVENIENCE & CARWASH CANADA 5

Register to attend: www.registration.uniti-expo.com Amongst our numerous media partners

15 – 17 May 2018, Stuttgart, Germany

Your gateway to new markets With 425 exhibitors and 15,000 attendees from over 110 countries*, UNITI expo is the leading European trade fair for the retail petroleum and carwash industries.

As a Visitor – You will find everything the market has to offer, from the latest innovations to proven concepts for your successful future.

As an Exhibitor – At no other trade fair can you reach out to so many influential decision-makers from Europe and across the world.

Exhibitor contact: call +49 7721 98 30 60, e-mail uniti-expo@com-a-tec.de.

Forecourt design by Circle

*UNITI expo 2016

www.uniti-expo.com UNITI expo 2018 cooperation partners for on-the-go Consumption

Organized by UNITI-Kraftstoff GmbH in cooperation with WDM managment consultancy and com-a-tec GmbH. 6 NOVEMBER | DECEMBER

by Andrew Klukas

WCSA REPORT

Convenience Stores are Key to Successful Legalization of Cannabis In July 2018, the federal government will legalize the production and distribution of non-medical cannabis. Between now and then, the provinces and territories will have to decide how to adapt to this legislation. Whether or not one agrees with legalization, everyone can agree with the goal of putting an end to the illegal cannabis trade and moving products into a regulated system in which products can be taxed and where quality standards and controls protect citizens. Convenience stores and distribnutors have an important role to play in ensuring this happens.

In just a few short years much of the stigma associated with cannabis products will have disappeared because the era of prohibition will have come to an end. In order to ensure the successful transition from the existing illegal market to a controlled and secure legal market, officials need to craft regulations with a clear view to the future. This will require suitable pricing, clear and responsible product differentiation, and a sufficient distribution network for the sale of legal products.

When consumption is legalized, the channels of distribution must allow sufficient access to the corresponding legal products. The new legal industry must be as inclusive as possible or underground activity will persist and, potentially, thrive. If prohibition is ended for consumers, but the options to legally purchase products are too limited, the conditions for a boom in the supply of illegal products through the underground market will be created. This is precisely what the province of Ontario is inviting through its recent proposal to limit supply to 150 government-owned sites by 2020. That distribution model will be vastly inadequate for Ontario and would ensure that the illegal market thrives as the most convenient option for many consumers.

Today, it’s easy to buy cannabis. If it is hard to buy from legal sellers tomorrow, people will just continue to buy it elsewhere.

Convenience stores are served by a distribution system that supports the legal sale of a variety of controlled goods, such as tobacco, and are ready to adapt to include distribution of cannabis products as well. The stringent controls already in place to secure the collection of provincial and federal taxes on such products can accommodate any new products requiring similar controls — be they provincial or interprovincial.

Convenience stores are well-prepared to handle the variety of quality-controlled products that will soon be entering

the legal market. They successfully handle a variety of age-restricted products including alcohol in underserved or remote areas, and Health Canada studies confirm the strength of their commitment to age-testing. They are highly capable of safely handling legal cannabis products subject to the regulations federal and provincial governments put in place to control their sale. Their geographic reach ensures a ready-made and secure distribution channel to ensure taxes are collected and to maximize public safety by ensuring people have access to safe, regulated cannabis as opposed to black market products.

As well, new security technologies, protocols and training can be put in place to support responsible, legal retailing and mitigate other possible risks. The movement toward cannabis legalization in North America has created growing interest in the development of new technologies to aid in the controlled distribution of legal cannabis products. Emerging dispensing technologies can assist in both product selection and provide enhanced age verification. Regulations governing the sale of legal cannabis products must be forward-looking enough to accommodate and thus encourage the further development of such technologies.

Utilizing an already established and proven distribution chain will not only ensure broader access (and therefore the best chance to displace the illegal market) but also allow the government to achieve that goal in the most cost-efficient manner. The alternative of government monopolies for distribution would entail the high capital costs of setting stores which taxpayers would ultimately have to pay for.

The most logical regulatory path to success is one that accommodates enhanced age verification technologies and techniques through the convenience store channel. This will also address any concerns the public may have about socially responsible retailing.

CONVENIENCE & CARWASH CANADA 7

A Historic Summit in 2017 Set in one of Canada’s most historically significant cities, the 2017 National Convenience Industry Summit took place late this September in Quebec City. As Canadians celebrated Canada’s 150th year, this year’s summit also reflected upon the past achievements while bringing the industry together to look forward to the future.

NACDA

Business Sessions

Tony Chapman kicked things off with an inspiring and provocative keynote that explored what the convenience channel needs to do to capture the attention of consumers. As the industry faces ever changing competition and consumer demands, Chapman emphasized ways that our industry can provide service – simplifying and saving the consumer time and money.

Attendees also learned about new research from Kathy Perrotta and Serra Schular of Ipsos Marketing and later Carman Allison of Neilsen.

The Ipsos Marketing research walked the audience through some key trends, such as how consumers are increasingly making decisions about what to eat based on in-the-moment needs. The full report identifies opportunities for the channel to leverage quick trip moments. The report stated that over 58 per cent of all quick-trip occasions are motivated by snacking and “mini-mealing” and consumers are informing many of their eating needs through technology.

Allison spoke about the trends influencing the

8 NOVEMBER | DECEMBER

path to purchase. He looked at four key trends defining a new marketplace: Improving consumer confidence, spending power on the rise, slowing sales growth for consumer packaged goods, and continued disruption in retail.

Day two of programming kicked off with an inspirational panel discussion focusing on how our industry can tell our story about the communities we support. The first ever National C-Store Day was discussed as an important tool to demonstrate to governments the role we play in communities and how much we contribute to the economy.

The program ended with a look to the future.

Tod Maffin closed things off by providing some key trends that our industry must pay attention to in order to continue to grow their business. Delivery services, pop-up convenient stores, fully automated kiosk stores, biometrics and market research, the erosion of brand loyalty, price checking and finally; the influence of millennials. He pointed out that millennials are much more concerned with social responsibility and like to support businesses that make a social impact.

Networking and Fun

But the summit wasn’t all business sessions!

Attendees had the opportunity to meet and mingle during our opening party, which took place in the heart of Old Quebec, at a UNESCO world heritage building, alive with Quebecois history. Attendees visited with friends, old and new, at communal picnic tables, toe-tapped to talented musicians and Westin Nova Scotian rolled their own maple taffy.

We also celebrated for the first time the new Na- Closing and Looking Forward tional Convenience Industry Awards, combining The summit ended with a look forward. Attendees the Awards of Excellence and the Convenience In- left with new research to support their business, novation Awards into one night, as we honoured ideas for improving consumer experience and excellence and innovation in the industry. concepts for growing the channel.

And no summit would be the same without the And, as one year comes to an end, the Summit Trade Exchange, where distributors and retailers Planning Committee start planning for a new year. met with manufacturers to learn about what new The 2018 Summit is set for September 25-27, 2018 and innovative offerings they can bring to market in Halifax, Nova Scotia at the Westin Nova Scotian. to please consumers.

We look forward to seeing you there.

THE

SAVE

DATE join us in

Halifax, Nova Scotia September 25-27, 2018 The Westin Nova Scotian

NATIONAL CONVENIENCE INDUSTRY SUMMIT

Listen to inspiring and informative speakers, network with colleagues at the trade exchange and celebrate excellence and innovation in the industry.

Don’t miss the industry event of the year

for details visit www.nacda.ca

CONVENIENCE & CARWASH CANADA 9

The Benefits of PEI Membership Included With Your Membership

“Business consultants say 85% of all business failures occur in firms that are not members of their industry trade association. “

Join Today!

Easy Access to Additional PEI Resources

The PEI Brand

Use the PEI member logo to show customers and other associates that you are affiliated with the industry’s leading authority on fuel and fluid handling equipment and services.

x4

PEI Journal

PEI’s quarterly flagship magazine that written specifically by and for members to help you grow your business, avoid costly mistakes and stay updated on emerging fuels to new technologies.

PEI Directory

Annually published invaluable resource to your industry, featuring a complete listing of access information for all PEI members.

TulsaLetter x 24

(approx.)

x 12

x 12

Relevant news, regulatory information and updates affecting your industry and association, published and delivered to you two to three times a month.

SafetyLetter & SafePractices Monthly information delivered to you to help you protect both people and property.

Recommended Practices

x 15+

Heavily researched, peer-reviewed technical documents that address the biggest operational issues facing the industry.

Service Technician Training Course Industry Training Manuals PEI educational resources include the latest reports on wholesale distribution, sales and management.

Service Technician Skills Aptitude Test ($25 for members)

Compliance & Funding Information PEI provides a variety of industry-related technical and regulatory information of special concern to manufacturers, sellers, installers and users of petroleum marketing equipment.

PEI Member Discount Programs PEI provides our members with discount programs that offer unique opportunities and reduced rates on a variety of services and supplies. All partnerships are carefully vetted and approved by PEI. $6000

Receive valuable discounts to conferences, events, educational materials (Recommended Practices, Entry-Level Service Training Course, industry reports, etc.) and much much more.

VALUE OF INCLUDED ANNUAL BENEFITS TO MEMBERS

Business • bullet

Management essentials worth sharing delivered monthly.

www.pei.org/join 10 NOVEMBER | DECEMBER

$350 $0

TOTAL

ANNUAL DUES

Enhance Your Customer Service with a Uniform

It is important to find a uniform that reflects the proper look while being suited to the job.

Regardless of the type of business, a uniform identifies employees to customers who are looking for help. Logos and company colours aid customers in quickly identifying employees so they won’t have to scour the store to recognize someone who can help them. A uniform is the first indication of a welcoming customer experience and gives the impression of not only being served by the individual employee but by the company they represent.

Uniforms are associated with organization, with quick and effective customer service. A company that does not supply a uniform leaves room for possible unprofessional, untidy, and uncoordinated outfits being worn in the workplace. The right uniform is also the final solidifying step in creating

cohesiveness and team spirit amongst the employees by identifying them as member of a group all working towards the same goal; this can anchor the employee’s sense of pride in the service they offer. Watching a team serve in a uniform demonstrates unity, professionalism and teamwork.

It is important to find a uniform that reflects the proper look while being suited to the job. Companies must consider the following features when investing in a uniform: Comfort, quality, durability and maintenance. The uniform must be clean and tidy and in this type of industry, employees are frequently cleaning, loading and unloading trucks, and stocking products in all kinds of temperatures. The chosen uniform must have the quality and durability to withstand such working conditions.

There are companies that may not realize the kind of positive impact a uniform can have on both their customers and employees; IT IS AN INVESTMENT THAT SHOULD NOT BE OVERLOOKED. An employee wearing a uniform is a representation of the company’s interest to invest not only in the customer experience but also in its employees.

CONVENIENCE & CARWASH CANADA 11

This article was supplied by Town & Country Uniforms.

12 NOVEMBER | DECEMBER

UNIFORMS ALSO ALLOW EMPLOYEES TO SPEND LESS ON CLOTHING. THEY ARE A PRAGMATIC, AND USUALLY MORE COST EFFECTIVE, APPROACH TO BUILDING A WARDROBE THAT IS READY FOR EVERY SHIFT.

Easy maintenance and care are equally important as employees will be washing their uniforms on a regular basis. Despite this, such garments are also expected to have a greater life expectancy than regular clothing. The longevity of a garment is dependant upon the type of material, weight and type of weave. UTC offers a variety of garments suitable for employees of convenience stores, gas stations, and carwashes: durable work shirts and work pants, breathable and moisture wicking polos, comfortable shirts and jackets. For example, UTC’s ChillT Polo is made from a 100 per cent new generation polyester microfiber with a FIT4 moisture management finish to keep skin cool and dry, which is ideal for this kind of working environment and is easy-care for simple, frequent washing. Many of UTC’s other products are made from a poly-cotton blend, which combines the comfort of a natural fiber with the durability of a synthetic fiber, with some spandex added in for greater mobility.

Uniforms also allow employees to spend less on clothing. They are a pragmatic, and usually more cost effective, approach to building a wardrobe that is ready for every shift. This avoids employees having to worry about what to wear to work and possibly wearing an outfit that does not meet company standards or accommodate the type of work.

Some companies do not consider uniforms a priority and may view them as an inconvenience; however, supplying a uniform is a simple detail that truly enhances the customer and employee experience.

CONVENIENCE & CARWASH CANADA 13

By Tsideldel Red Stone (The Alexis Creek First Nation)

ENERGY DRINK Wild Forest Inspired . First Nations Knowledge A Refreshing Tradition

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14 NOVEMBER | DECEMBER

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Why get a loyalty card for convenience stores and/or carwashes?

Canadians are big fans of loyalty programs, with 94 per cent of us belonging to at least one.

By Sarah Pritzker

CONVENIENCE & CARWASH CANADA 15

for your own business brings people back to you to spend their reward.

CONS: • Joining with other stores risks having customers ignore your business to focus on someone else’s business.

• More complicated to set up than a membership-style loyalty card.

• A cashback program risks losing more money than you make.

Air Miles/Rewards Points Loyalty Card

ALL YOU NEED TO KNOW ABOUT WHAT A LOYALTY PROGRAM IS, THE TYPES OF LOYALTY PROGRAMS AVAILABLE IN CANADA, AND WHY YOU NEED ONE FOR YOUR STORE. Canadians are big fans of loyalty programs, with 94 per cent of us belonging to at least one.

The chances are good that you already use a loyalty card yourself personally, even if you haven’t set one up for your business yet.

There are a number of different types of loyalty programs active across Canada. This article will provide a clear explanation of what a loyalty program is, what types are available, and what the benefits are of setting one up in your store.

What is a Loyalty Program?

A loyalty program is basically a way to reward your best customers and to give those customers who don’t come so often an incentive to keep coming back.

What are the Different Types of Loyalty Cards?

Loyalty programs can be set up 16 NOVEMBER | DECEMBER

in various ways and different loyalty cards might reward users with points, cash back, or free items. Some loyalty cards are also credit cards, which reward customers for using their card no matter where they shop.

AIR MILES LOYALTY PROGRAMS ARE ALWAYS POPULAR AMONG CANADIANS AND 81 PER CENT OF CANADIAN SHOPPERS BELONG TO ONE.

Cashback Loyalty Card

Cashback loyalty cards let customers earn back money from their shopping. Often, the cashback is given as a credit slip or a reduction on the credit card bill instead of actual cash. Some cashback loyalty programs mail the customer a cheque for the chasback amount.

Cashback loyalty programs can be particularly appealing to consumers when multiple businesses join together in the same program, allowing customers to earn cashback faster. But, some smaller grocery stores run independent cashback programs, giving customers in-store credit slips once they’ve spent a particular amount.

PROS: • ‘Free money’ is always a popular choice for shoppers.

• Easily add or remove products from the program, limiting it to only money spent on gas and carwashes and not on instore products, for example.

• Rewarding with a credit slip

This type of loyalty card doesn’t give the customer in-store rewards. Instead, it links their spending in your store with an account that keeps track of how many air miles or points they earn based on that spending.

For example, customers can earn one air mile per $10, $15, or $20 spent, then they can redeem their air miles for flights. Many loyalty cards also allow shoppers to redeem points for rewards in other stores that are not travelrelated.

Air miles loyalty programs are always popular among Canadians and 81 per cent of Canadian shoppers belong to one. However, you’re not going to be able to set up an air miles loyalty program on your own.

PROS: • Air miles loyalty programs are the most popular loyalty programs in Canada.

• There are several air miles loyalty programs to choose from.

CONS: • Air miles loyalty programs are more attractive when they are coupled with a credit card that earns air miles on all purchases, but it’s complicated to run a loyalty program that includes a general credit card.

• You can’t set it up alone.

Membership Loyalty Card

This is the simplest type of loyalty card, which makes your customers members of your business community. You create

your own card design and give customers special offers and discounts when they show their loyalty card. One option is to send your members regular e-mails about special offers, provide them with coupons for discounts, or tell them about events and promotions around special dates like their birthday or your store’s fifth anniversary.

Or, for example, you can have a standing, special offer of one free coffee a month for loyalty program members.

Another variation is to make a punch card that you give to every customer. When they collect 10 punches, for example, they get the 11th purchase for free. This works well for coffee, filling the tank with gas, or for carwashes.

PROS: • Easy to set up on your own.

• Flexibility – you decide what to offer and can change it whenever you like.

• You choose the design of your own card.

CONS: • Might not be attractive enough to make new customers want to join.

• Punch cards don’t let you gather customer marketing information.

NEARLY EVERY CORNER CARWASH & BOUTIQUE COFFEE STORE HAS SOME KIND OF LOYALTY CARD.

car insurance for new drivers.

This not only gives them a good reason to visit your business again, it also strengthens their connection with your store.

Loyalty Cards are What Your Customers Expect

Today, nearly every corner carwash and boutique coffee store has some kind of loyalty card. It’s become an expected part of every business, and

those businesses that don’t incorporate one into their strategy risk falling behind the competition. Now that you understand how loyalty programs work and what the benefits are of having one, go ahead and set one up yourself!

Sarah Pritzker is a professional writer who specializes in financial markets and trends in Canada and the U.S.

Why Should I Consider a Loyalty Program?

The promise of a free gift, free money, or extra miles from a loyalty program draws shoppers to your business and builds bonds with your best customers.

Eighty-four per cent of shoppers are more likely to visit stores that offer a loyalty program.

When you give out a loyalty card, you also gather some of your customers’ personal information in exchange, like their e-mail addresses, dates of birth, or the number of drivers in their households. Then, you can join smart marketers by e-mailing patrons to let them know about your seasonal promotions, send them coupons for their birthdays, or suggest tips on finding

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CONVENIENCE & CARWASH CANADA 17

18 NOVEMBER | DECEMBER

Forecourt Insight

By Ed Kammerer

WE WILL NOW HAVE A READING FROM THE FIRST BOOK OF RETAIL FUEL STORAGE AND DISPENSING: “IN THE BEGINNING, THERE WAS STEEL…”

TANK SUMPS

HAVE KEPT PACE AS FUELING SYSTEMS HAVE EVOLVED Specifically, more than 100 years ago, and for most of the ensuing century, steel was the only material used (admittedly, because there really wasn’t another viable alternative) to construct the storage tanks, piping, containment units, valves and most other components that were integral cogs in commercial and retail refueling systems.

That began to change when it became apparent that hydrocarbons coupled with the underground environment had a corrosive effect on steel, while the bumps and bruises that underground steel storage, transfer and containment equipment would be subjected to over many years of service could also lead to environmentally harmful fuel leaks, many of which could go undetected for decades.

Rising to the Challenge

Prompted by the need to create better fuel storage and transfer equipment, much of which was driven by regulatory mandates in the United States and Canada, the incredibly intelligent and talented men and women who work for the equipment manufacturers put on their thinking caps and went back to their drawing boards. The result was a dizzying array of innovations that simultaneously made fuel storage and dispensing environmentally safer and the

equipment used to conduct the process more cost effective to install, operate and maintain.

Looking in particular at fuel transfer piping, the improvements came fast and furious. Steel begat fiberglass, which was non-corroding and durable, with a seemingly limitless life span. But while fiberglass eliminated corrosion problems, fiberglass piping was still required to be buried underground with glued joints where one piece of pipe was connected to another. These CONVENIENCE & CARWASH CANADA 19

EVEN THOUGH THESE SHINY POLY AND FIBERGLASS SUMPS CAN COMPLETELY CONTAIN FUEL AND KEEP WATER OUT WHEN THEY LEAVE THE FACTORY, AS SOON AS THEY SHOW UP ON A JOB SITE, THEY ARE IMMEDIATELY COMPROMISED BY THE ELECTRICIANS WHO DRILL HOLES IN THEM TO ALLOW ELECTRICAL CONDUIT PENETRATIONS.

BEFORE

AFTER

buried joints soon became problematic.

That begat the next innovation – corrosion-free flexible pipe that could be used as part of an integrated fuel transfer system without requiring rigid connection points.

These integrated “loop” systems were specially designed to place all of the valves, fittings and pipe connections within a polyethylene or fiberglass box (dispenser sump) that was accessible from grade level at the fueling site, eliminating the need to break concrete if the system needed maintenance or repair. The final step in this evolution of a retractable piping system contained between two sumps was in the dispenser sump itself. This change occurred when the dispenser sump was made conduit-less.

Conduits could be run outside the sump and into the frame of the dispenser, eliminating the need to drill holes in the sump for electrical conduit entry fittings. This practice solved multiple water intrusion issues inside the dispenser sump.

was to simply create a barrier from the backfill with wood or steel. The pump itself was placed in an open bottom box that was surrounded by the backfill. Then, the need to capture fuel leaks and allow the operator easier access to the STP and its components eventually prompted the development of the tank sump, which would function as a liquidtight isolation and secondary containment unit that would provide a convenient means for housing a multitude of piping connections, tank fittings, valves and submersible pumps. This has led to the development of the corrosion resistant polyethylene and fiberglass tank sumps with which we have become familiar.

Realizing that there was still more ground to be plowed in the evolution of tank sumps, the industry’s engineers continued to push the evolutionary envelope. That brings us to the stage where we find ourselves now, what many may call the final frontier in tank sump development. Even though these shiny poly and fiberglass sumps can completely contain fuel and keep water out when they leave the factory, as soon as they show up on a job site, they are immediately compromised by the electricians who drill holes in them to allow electrical conduit penetrations. These non-watertight conduits and entry fittings are notorious leak points.

Hence the search for the unicorn or the holy grail of petroleum containment: The conduit-less tank sump. Well, folks, the search has ended. OPW has developed the latest in tank sump innovation by offering the industry’s first entirely conduit-less tank

“Tanks” for the memories

The improvements in fuel storage and transfer systems and components also set the stage for the development of new pieces of equipment. Chief among them was the submersible transfer pump, or STP. The earliest STPs were mounted on the tank and simply buried under backfill, which made accessing them and their components problematic as there was no easy access path for the operator. This practice also allowed fuel to leak directly into the environment.

The initial means to gain access to an STP 20 NOVEMBER | DECEMBER

The new ElectroTite sump features an integrated electrical junction box that no longer requires contractors to cut holes in the sump and fabricate field installed electrical conduit penetrations.

sump. The new ElectroTite sump features an integrated electrical junction box that no longer requires contractors to cut holes in the sump and fabricate field installed electrical conduit penetrations. The factory installed, UL-listed, explosion-proof junction box allows electricians to use a single component for conduit seal-offs and wire connections for both high voltage and communication wires.

The result eliminates multiple unnecessary leak points at installation and creates a tank sump that will not be susceptible to any type of fuel leakage or water intrusion, which provides the highest level of protection ever for

both the fueling system’s components and the environment. The new ElectroTite sump will provide a maintenance-free and environmentally sound system for many years below ground.

Ed Kammerer is the director of Global Product Management for OPW, based in Cincinnati, OH, USA. He can be reached at ed.kammerer@opwglobal.com. For 125 years, OPW has been leading the way in fueling solutions and innovations worldwide. For more information on OPW, please go to www.OPWGlobal.com.

CONVENIENCE & CARWASH CANADA 21

Blueprint to Foodservice

By Meline Beach

A Convenient Breakfast – Options for Success 90 PER CENT OF CONSUMERS SAY THEY DRINK COFFEE AT BREAKFAST, 60 PER CENT OF WHOM DRINK COFFEE BEFORE GETTING TO WORK.

22 NOVEMBER | DECEMBER

Deemed the most important meal of the day, eating breakfast keeps our body’s rhythm in check and leads to good health. However, our busy

lifestyles with limited time to prepare meals, dual income families and longer commute times have done away with what was once known as a leisure breakfast. As a result, more consumers are grabbing breakfast on the go – be it from cafes and bakeries to convenience stores. It is one of the fastest growing categories, breaking over $30 billion, and a major focus in the foodservice industry.

It only makes sense that c-stores, who are relied upon and known for their convenient location and speed of service, would want to gain market share in this category.

It’s never too late to boost your profits with an effective breakfast foodservice offering for your customers. If you’ve ever wondered how to go about it but thought it was more effort than it’s worth – you’re wrong. An effective breakfast program can range from simple to complex and just depends on what you’re willing to put into it to further meet the needs of your customers.

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www.core-mark.com carcand@core-mark.com CONVENIENCE & CARWASH CANADA 23

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How to launch an effective breakfast foodservice offering: A simple hot beverage program with quality coffee and tea is a good starting point.

Designate an area of the store where you can dedicate a counter to brew coffee and tea with applicable condiments. A self-serve barista station can be low maintenance. However, the area must be kept clean and free of clutter, with a clear and intuitive path within the store that naturally directs and welcomes foot traffic.

According to the Packaged Facts report, 90 per cent of consumers say they drink coffee at breakfast, 60 per cent of whom drink coffee before getting to work. A quality coffee and tea program, tailored to serve the needs of its customer base, including perhaps cultural options and a variety of flavours, can attract market share and open opportunities for breakfast food sales.

Low-cost, express breakfasts appeal to on-thego consumers.

A variety of prepackaged breakfast items, such as sandwiches, croissants, and danishes can speed up service and sales.

“Our everyday value pastries are great prepackaged breakfast items,” says Kathy Rowland, director of sales – Eastern Canada at Maplehurst Bakeries Inc. Distributed through Core-Mark International, Maplehurst pastries, such as Annette’s Honey Buns, serve as a successful grab-and-go item, especially when paired with a coffee at a promotional price.

Pairing, location, and applicable equipment serves as the perfect storm for an effective breakfast foodservice program.

“From countertop warmers to display cases and coolers, our findings show that hot and ready breakfast sandwiches achieved higher sales than traditional cold sandwiches from a cooler,” says Marc Rex, director, Fresh and Foodservice-Canada at Core-Mark, one of the largest distributors in North America, which carries an assortment of packaged and bulk baked goods; frozen, thaw and serve sandwiches; fresh breakfast sandwiches and wraps; fresh whole fruit; cut fruit; yogurts; bars; and breakfast beverages. “While it’s not a ‘one-size-fits-all’ solution, breakfast items displayed within reach of the coffee offering always shows positive sales results.”

In addition to location and prominence, McCain Foodservice Director of Marketing Greg Boyer advocates simplicity with familiar brands that are craveable, have mass appeal and are easy to heat, hold and serve as advantageous to c-store operators.

“Be it hash brown sticks, French toast sticks or potato bites, our products are very versatile and most perform well in the fryer and all types of ovens, including Turbo

Chef and Rationale ovens,” says Boyer. “Many convenience stores have developed coffee programs over the last 10 years and offering customers on-the-go breakfast and snack options is a natural extension for both the c-store operators and their customer.”

The next level up: Made-to-order, customized breakfasts offers the greatest choice and fulfills a perception of fresh.

One way to go about this is to partner with a recognizable brand that provides experience, expertise and strong operational support. A retailer’s role would be to ensure available space and a commitment to quality and professional execution.

Country Style, which has over 400 express kiosks across Canada, offers coffee and fresh food programs designed specifically for gas stations and c-stores.

“Our Country Style Express locations have a reduced breakfast menu compared to traditional Country Style locations,” says Karen Weldman, vice-president, new business development – Express Brands. “A tailored menu with a reduction in skews ensures the program is profitable and waste is manageable.”

Siva Theeban, who owns and operates two gas stations in Ontario, one with a Country Style kiosk and one without, appreciates the turnkey solution a branded foodservice supplier offers and the opportunity it creates to cross promote.

“I find it easier to promote sales both ways,” says Theeban. “When customers come in for gas, I use this as an opportunity to promote sales at the Country Style counter.

And when customers come in for Country Style, I’m able to advise them of special offers at the gas station.” Theeban recognizes that while the two entities may be different, they work in tandem. “The only downside is if we fail to provide exceptional service, we risk losing customers on both sides.” Having said that, Theeban doesn’t find the risk prohibitive. “We make every effort to deliver exceptional service at both counters and follow franchise standards.”

While convenience is a c-store’s strength, consistency is equally important. People appreciate consistency.

If your coffee is good one day and bad the next, there’s a risk you’ll lose that customer. If the counter is clean one day and dirty the next, no matter how good your coffee is, there’s a chance you’ll lose that customer. Even with the advantages a c-store holds, like location, convenience and speed of service, if the service delivery and experience are not consistent, there’s a good chance your foodservice program will not survive. Consistency is key – as in consistently good, consistently clean and well-stocked and consistently fast and friendly.

CONVENIENCE & CARWASH CANADA 25

CARWASH OWNERS CASH IN WITH MOBILE PAYMENTS

Venmo a friend for tickets to the game. Use Apple Pay to buy snacks for a road trip. Even if you haven’t scanned your phone for a morning coffee, there’s a strong chance you’ve used a mobile wallet. “Mobile wallet” simply means that you’re carrying some sort of payment information digitally, instead of physically.

Two types of mobile payment options have grown at a rapid rate. In fact, a recent report by the United Nations predicts that mobile payments will overtake credit cards by 2019. But one thing is for certain. Mobile payments show no signs of slowing down, especially in the carwash industry.

26 NOVEMBER | DECEMBER

By David Dougherty

CONVENIENCE & CARWASH CANADA 27

BUSINESS INSIDER RECENTLY REPORTED THAT WHILE JUST 16 PER CENT OF THE GENERAL POPULATION HAD USED A MOBILE WALLET, 35 PER CENT OF MILLENNIALS HAVE ALREADY ADOPTED THE TECHNOLOGY. by: David Dougherty

Types of Mobile Payments

PDQ Car Wash Owner

There are two types of mobile payments, both of which are popular with carwash owners.

The first is true mobile payments with NFC technology. NFC stands for near-field communications and allows data to be read by compatible machines without contact. This technology is behind mobile payment solutions like Apply Pay, Samsung Pay and Android Pay, and eliminates the need to swipe or insert a physical credit card.

The second type of mobile carwash payments is through a specialized app, such as PDQ’s Drive Clean app. The app allows you to purchase and redeem car washes directly through your phone.

Connected with the carwash terminal by Bluetooth, there’s no need for customers to even roll down their window.

While there are clear customer benefits with mobile payments, there are plenty of incentives for carwash owners as well.

28 NOVEMBER | DECEMBER

How Mobile Payments Benefit Carwash Owners

The biggest benefit of mobile payments is that it accelerates throughput. Credit card processing takes much longer than a tap and pay solution.

The quicker a car gets through, the quicker the next customer can enter. Mobile payments help to optimize throughput at any carwash.

And even quicker than an EMV processing charge, an in-app purchase allows customers to preload desired washes on their phone. Then once they’re at the terminal, all they have to do is select their wash and drive through, saving significant time and increasing throughput. Thanks to the Bluetooth feature there’s no need to even open a window, which is ideal for cold Canadian conditions.

In addition to purchasing car washes, apps like Drive Clean allow customers to earn loyalty reward points towards free washes and other CONVENIENCE & CARWASH CANADA 28

promotions. They can also find the nearest local carwash with the “find a wash” feature. The program also tracks and reports on user activity and buying habits, while keeping all information safe and secure.

In this digital age, security is a large concern of consumers across the globe.

While credit card information can be stolen and used for fraudulent charges, solutions like Apple Pay store and encrypt credit card information. Security checkpoints are established to prevent unauthorized charges.

The efficiency and convenience that mobile payments provide customers doesn’t go unnoticed. The seamless experience builds customer loyalty and a positive reputation across the communities you serve.

Mobile is the Future of Carwash Purchasing

Business Insider recently reported that while just 16 per cent of the general population had used a mobile wallet, 35 per cent of millennials have already adopted the technology. That’s a significant jump and it will only increase as young millennials and generation Z gain spending power.

Canadian e-commerce company Shopify reported that mobile payments are the most preferred payment options among millennials, citing that 98 per cent of millennials use a smartphone.

The devices have become an integral part of their daily lives and mobile payments add another level of convenience.

Mobile payments are the future of the carwash industry and will play a key role in your future success.

David Dougherty is the senior product manager for in-bay automatics at PDQ Manufacturing Inc. in De Pere, Wisconsin. PDQ Manufacturing is recognized as the technological leader in vehicle wash systems, providing superior quality, outstanding support and products that contribute to its customers’ profitability. For more information, visit www.pdqinc.com or call (800) 227-3373. David can be reached at David.Dougherty@pdqinc.com.

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www.pdmclaren.com CONVENIENCE & CARWASH CANADA 29

DIRTY WASHROOMS FLUSH POTENTIAL PROFITS DOWN THE DRAIN

By Angela Altass

CUSTOMER RETENTION IS DEPENDENT ON VARIOUS FACTORS AND WASHROOM CLEANLINESS IS ONE OF THE MOST IMPORTANT, says Candice Raynsford, marketing manager, Cintas Canada.

30 NOVEMBER | DECEMBER

Each year, Cintas sponsors a nationwide as toilet paper, soap and paper towels, contest to find Canada’s Best Bathroom. should be restocked in the washroom as Further information on the contest is part of a regular cleaning routine.”

The Cintas Signature Series is an available at www.bestrestroom.com/ exclusive line of designer restroom canada.

“To date, we have had two truck dispensers and Cintas also offers a stops win the title: Valleyview Shell cleaning chemical system that controls Superstation, Valleyview, Alberta in dilution proportions.

“In addition to regular maintenance, 2013, and Whitecourt Esso Superstation retail businesses with high foot traffic in Whitecourt, Alberta in 2016,” says Raynsford. “These establishments may want to consider the Cintas understand that customer satisfaction UltraClean service,” says Raynsford. goes beyond offering a smile as patrons “This is a high-pressure process, which pay for their vehicle services and uses a chemical to perform a deep cleaning, which removes soil and convenience store products.”

Businesses should always have plenty bacteria that mops and brushes cannot of restroom cleaning and hygiene reach.”

Businesses should consider developing supplies on hand to provide customers with a comfortable washroom experience, a restroom maintenance program that meets the needs of their establishment says Raynsford.

“It’s important that the correct cleaning and washroom users, says Raynsford.

“A good rule of thumb is to spot clean supplies are used and that air fresheners are always stocked and functioning,” every 15 minutes during peak periods,” says Raynsford. “Hygiene products, such says Raynsford, “this includes sweeping,

Businesses should consider developing a restroom maintenance program that meets the needs of their establishment and washroom users.

wiping down surfaces, and restocking partnered with Bunzl to provide a dispensers. Thorough cleaning and washroom program for its clientele. disinfection should be done daily during “We recognized that convenience low traffic periods, including cleaning stores across Canada are getting their surfaces with disinfectant, sweeping, supplies from a myriad of different removing trash and mopping the sources and we have come to the table floor. Spot cleaning and daily cleaning with a full solution of everything from activities can easily be handled by the mop & bucket and cleaning agents employees. However, facility managers to trash containers, garbage bags, foam often partner with a service provider soap and paper towels,” says Arcand. to take care of cleaning details such “People typically don’t like to touch door as inventory management and deep handles as they are one of the critical cleaning, which includes more extensive points of germ transfer. In washrooms procedures, such as dusting and where there are hand dryers, you’ll see scrubbing walls, toilets, fixtures, floors, toilet paper on the floor because people etc. as well as repairing any broken are using the toilet paper to open fixtures. the door. As most convenience store The cleanliness of your washroom, in washrooms have doors, I’d say paper a consumer’s mind, will typically reflect towels are better than blow dryers.” the cleanliness of your store, says Chuck Updating a washroom might be as Arcand, corporate director of Canadian simple as adding a fresh coat of paint, marketing, Core-Mark International Inc. notes Arcand.

“If your store is clean and inviting and “Along with having a fresh coat of you have a nice washroom that’s also paint and a nice floor, one of the things clean, then typically your sales will be to focus on is aroma,” says Arcand. “You higher, particularly in the food service can get various aroma sprays that don’t categories,” says Arcand. cost a lot of money that can remove any Core-Mark International recently negative scents.”

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With Benjamin Moore’s scruff-resistant technology in a new Scuff-X product, even high traffic areas like commercial washrooms can have that freshly painted look and feel much longer.

washroom, the first consideration is the installation method to be used, says Rosalind Daschuk, marketing coordinator, Water Systems, Franke Kindred Canada Ltd. Will sinks be wall mounted or installed into a counter?

“Franke’s WHB5222-7 is a dual station stainless steel sink with a strong angular design aesthetic, while the smaller WHB2221-7 would serve as a single use wall hung wash station,” says Daschuk.

“No countertop is required for either of these models and an optional shroud may be purchased to prevent access Paint colour is the most highly a better choice than paper towels. to the plumbing. This vandal resistant transformational finish you can add to Manufacturers are continually feature is key for public wash places.” any room, says Benjamin Moore Colour innovating with respect to both the Acklands Grainger’s new Ekcsoscreen and Design Expert Sharon Grech. efficiency and design of hand dryers, says technology prevents splash from “The paint colour in any space will Dan Storto, president, Word Dryer. urinals, making it safer and heathier look best if coordinated with the other “Today’s high speed hand dryers use for customers, says Blake Sandham, finishes in the room,” says Grech. “In a much less energy and offer much faster communications coordinator, Acklands washroom, it’s important to coordinate dry times than those of just a few years Grainger. with the counters, tiles, flooring, etc. ago,” says Storto. “Other innovations, such “Additionally, it reduces the amount of If these finishes are neutral, then a as HEPA filtration systems, antimicrobial cleaning required, which can save both lively paint colour can go a long way technology and sound adjustments are money and time,” says Sandham. to bringing some energy to the room. improving the experience for end users A customer’s overall impression of a With Benjamin Moore’s scruff-resistant and the bottom line for owners of stores business is informed by everything that technology in our new Scuff-X product, and other facilities.” they experience and washrooms are no even high traffic areas like commercial World Dryer’s newest model, exception, says Sam Bernard, global washrooms can have that freshly painted VERDEdri, is an all-in-one high speed category director, Dyson Professional. look and feel much longer.”

“Issues such as empty paper towel hand dryer that is energy efficient, using Commercial washrooms have evolved only 950 watts of power, while still dispensers, overflowing trash cans, or dramatically over the last 10 years, notes featuring a 12-second dry time with heat. frustratingly slow hot air dryers can Julie Rago, office manager, Specialty It is equipped with a HEPA filtration create a bad impression that lasts,” says Product Hardware. system and antimicrobial technology Bernard. “Retailers should consider how “Touchless faucets, soap dispensers and is surface mounted. their washroom technology choices and hand dryers are commonplace Hand dryers are helping facilities create a positive user experience, but these days,” says Rago. “Washrooms become more sustainable, says Storto. also how they help them to meet their are showing unexpected influence on “Customers and employees continue to cost and sustainability targets. Well the design and appearance of the whole be sensitive as to how environmentally engineered technology should help business. They are now becoming a key friendly a store conducts business,” says to cover all of these areas and require expression of the facility aesthetic and Storto. “One hand dryer, over its lifetime, minimal maintenance once installed.” atmosphere.”

Last year, Dyson introduced an will produce three tons less CO2 than Rago recommends using accessories the production of the paper towels it updated Airblade V hand dryer, which with stainless steel finishes for durability replaces. Producing a single ton of paper is engineered to be 30 per cent quieter and ease of cleaning and she thinks hand requires 7,000 gallons of water and 158 than its predecessor. dryers, such as the XLERATOR product million BTUs of energy.”

“Sound can be an issue, particularly that can dry hands in eight seconds, are When choosing fixtures for a retail in smaller washrooms,” notes Bernard, 32 NOVEMBER | DECEMBER

FRANCIS WIGHT Office 403.266.5558

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CONVENIENCE & CARWASH CANADA 33

Dyson Airblade dryers can cost up to 80 per cent less to run than some conventional dryers. Similarly, using sensor taps and dualflush toilets can help achieve cost savings by reducing water use.

“so our engineers were tasked with achieving the noise reduction without compromising on performance or hygiene. They achieved this by finetuning the size of the air apertures, redesigning the motor impeller and inner diffuser, and reprograming the Dyson digital motor V4 that powers the dryer. The machine’s slim profile means that it doesn’t take up much space in the washroom and it can be mounted at different heights to meet accessibility requirements.”

Instead of relying on heat to evaporate moisture from hands, Dyson Airblade hand dryers use 430mph sheets of air to scrape water from hands, much like a car windshield wiper, says Bernard.

“This means that hands are dried in less than 14 seconds, with HEPA-filtered air,” notes Bernard. “Beyond speed, Dyson Airblade dryers can also help washroom owners achieve cost reductions and carbon savings compared to other hand drying methods.

Paper towels, for example, cost up to $1,460 per year to run and produce 13.9 grams of CO2 per dry. The latest Dyson Airblade V hand dryer costs $31 per year to run and produces 2.4 grams of CO2 per dry. Dyson Airblade dryers can cost up to 80 per cent less to run than some conventional dryers. Similarly, using sensor taps and dual-flush toilets can help achieve cost savings by reducing water use.”

Protecting restroom users from scalding is critical in commercial applications, says Veronica Ryan, manager, marketing & corporate communications, LIXIL Canada Inc., which recently launched its new American Standard NextGen Selectronic

faucet line, featuring SmarTherm technology that incorporates a ASSE 1070-certified thermostatic hot water temperature limiter. SmarTherm eliminates the need to specify and install a separate thermostatic mixing valve. The electronics are incorporated into the spout of the touchless faucet.

The biggest change in commercial washrooms is in the design and efficiency of faucets and fixtures, says Ryan.

“In efforts to minimize surface touch points in public washrooms to reduce the transmission of germs and diseases, offering hands-free faucets are in the best interests of the consumer,” states Ryan.

THE BIGGEST CHANGE IN COMMERCIAL WASHROOMS IS IN THE DESIGN AND EFFICIENCY OF FAUCETS AND FIXTURES

34 NOVEMBER | DECEMBER

Updating old toilets and faucets to new water efficient models will save money in the long run as well as enhance the customers’ experience and avoid costly plumbing issues caused from outdated technology, notes Ryan.

Washrooms in retail locations are a very important part of the overall customer experience, says Ryan.

“The cleanliness of a public washroom can send a message to the consumer on how the facility treats the rest of their business,” states Ryan. “A clean washroom reassures the customer that hygiene is important and is reflected in other aspects of their service.”

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By Caleb McMillan

Speculation Grows Regarding Legalized Marijuana CANNABIS GROWERS OF CANADA ESTIMATED THE EXISTING INDUSTRY WORTH BETWEEN $2 TO $7 BILLION. With the federal government planning to legalize cannabis by next summer, distribution responsibilities have been handed to provincial jurisdiction. Many pro-

vincial leaders are considering restricting the emerging legal cannabis market to an exclusive government monopoly.

This means a loss of opportunity and profit for retailers, particularly western Canada’s convenience stores. Across Canada, tobacco is sold privately by retailers without major issues.

Government education campaigns, rather than restrictions on business, have proven effective at deterring teen use.

When it comes to cannabis legalization, Andrew Klukas, president of the Western Convenience Stores Association, says: “We’ve been handling age-restricted products for just about forever. Health Canada has done studies over numerous CONVENIENCE & CARWASH CANADA 35

36 NOVEMBER | DECEMBER

Health Canada has done studies over numerous years that have shown the high level of commitment of the convenience store sector to do age testing. years that have shown the $7 billion. There are endless high level of commitment opportunities for western of the convenience store re-tailers and this cannabis sector to do age testing, so market in a province that has we’re prepared to handle normalized cannabis. these products.” When the “It would be good for our products are packaged and businesses,” says Klukas, standardized so the public “people aren’t going to have has “some assurance in the a whole shelf full of cannabis level of quality and what they product, but there’ll be some.” are ingesting,” then nothing After all, an entire product but social stigma and restric- category is yet to be explored. tive government policies keep While medical dispensaries the convenience sector out of cater to patients, recreationthe market. al weed shops cater to many Currently, the British connoisseurs, like speciality Columbia government is ex- cigar shops do for tobacco ploring its options on how to users. Convenience store redistribute cannabis. But BC tailers could sell pre-rolled already has medical dispen- joints to age-appropriate saries regulated by municipal consumers. “What I’m thinkauthorities, supplied by grow- ing about is prepackaged, ers hoping to become licensed. standardized, quality-conGiven its illegality, the exact trolled products that I’m sure size of BC’s cannabis mar- are going to be out there,” so ket is hard to determine but long as “they can’t be easily a study commissioned by the counterfeited.”

Cannabis Growers of Canada Klukas envisions a conveestimated the existing in- nience store sector serving dustry worth between $2 to consumers who are fine

with a person behind the counter without “deep expertise about different types of cannabis product.” With physical attributes similar to tobacco, consumers of convenience store cannabis products would “just need to know that it’s a standard product and that we’re licensed to sell them.”

But acquiring this hypothetical license may be harder than expected. Recently, the Ontario government announced their plans to open new government-owned and operated pot shops. And although the finer details have yet to be completed, convenience stores are not being considered as a distribution point for now.

While Ontario may be a lost cause, British Columbia and its unique history with cannabis is less settled. While John Horgan’s NDP government has referred to working groups and public-opinion

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surveys to gauge the best course of action, this hasn’t stopped the Responsible Marijuana Retail Alliance of BC (a coalition of public and private liquor stores) from expressing their interest in cannabis sales. Of course, so long as the market is open to everyone, there is no issue. But often, as in the case of convenience stores wishing to sell wine and beer, there are other factors to consider.

Says Klukas: “Why can’t convenience stores carry those products? Well, because there’s an established private liquor industry and they lobby against us. It’s kind of unfortunate because that hurts business. Whenever we’re not allowed to sell legal products that local customers want to buy that makes it harder and harder for convenience stores to stay in business.”

Other barriers to entry include a restrictive approach to branding and advertising.

Like with tobacco, the federal government doesn’t want cannabis promoted. Again, this harms consumers who rely on packaged cannabis products to differentiate between their favourite growers, strains, and other interests like terpene flavour, or, most importantly, how strong the psychoactive component is.

Klukas fears that plainpackaging, whether it’s cannabis or tobacco, encourages counterfeit products. “I think it’s very important that they have brand markings to make them harder to counterfeit otherwise, if their goal is to transfer the products into the legal market, then don’t make it easy, and don’t create incentives for people to keep going in the underground market.”

But this isn’t the road governments are taking, says Chad Jackett, president of the Cannabis Growers of Canada.

“We’d love to supply pre-rolls to convenience stores, that’s

CONVENIENCE & CARWASH CANADA 37

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KLUKAS FEARS THAT PLAINPACKAGING, WHETHER IT’S CANNABIS OR TOBACCO, ENCOURAGES COUNTERFEIT PRODUCTS.

part of what we’re about, but if legalization doesn’t legalize us, the craft growers, then there’s really nothing John Horgan can do.”

Jackett is also convinced that the large licensed producers (LPs) of medical cannabis can’t keep up with demand, “There are going to be lines of people waiting for cannabis like people waiting for bread in a communist dictatorship.

That’s why they have to open the market to everyone. If we walked away the LPs wouldn’t be able to handle the market and some people don’t want to go with them because they’ve been caught spraying their medicine. There is greed on the side of the government.”

Allowing convenience stores to sell cannabis will

likely help the local “BC Bud” supply that may otherwise be cut off in a stricter retail environment. As Klukas says, “Some of the big distributors that service this industry are all over the place. They potentially can make it possible for these small craft producers who have a really good product to get their product out to market and grow quickly.”

Retailers stand to lose a great deal if the federal government’s hardline approach influences how provincial governments decide to distribute cannabis. If BC’s normalization of cannabis fails to persuade the NDP government, convenience stores may miss out on profitable opportunities.

“We stand to lose something

that should be part of our future,” says Klukas. “Any product that attracts customers is important because that creates spin-off, that creates other sales in other product lines, food, and beverages, things like that. It’s not just about the cannabis. Cannabis may be a small portion of the actual sale, but nonetheless, anything that gets people in the front door is very important to us. That’s what we live on.”

Caleb McMillan is a writer living in Vancouver, BC. He holds a Communications Media diploma from Mohawk College. His writings have appeared on ZeroHedge, the Ludwig von Mises Institute, the Cannabis Life Network and BotaniQ.

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CONVENIENCE & CARWASH CANADA 39

Point of Sale (POS) Systems –

Why You Need Data The following is from Bill Scott in his Retail is Detail book:

By Lee Barter

“So 10-15 per cent of your stock is dead, 30 per cent is making you a profit, and who really knows what’s going on with the other 2,200 items?

You need to go through your store, pick up each little item and shout “what in the hell have you done for me today?” I’ll bet you’ve got $50,000 worth of junk in every store that doesn’t need to be there. Can you really afford to keep caring for it anymore? Nonselling stock is responsible for over 50 per cent of your cost. It would serve you better in a big hole in the ground behind your store.”

40 NOVEMBER | DECEMBER

Harsh words? Yes. The reality is that today’s retail marketplace is a tough environment. Shoppers have unlimited options and your competition is tempting them every single day with aggressive pricing and persuasive offers.

They demand compelling experience both in-store and at the pump. Their loyalty to you is either renewed or withdrawn with each transaction.

Your pricing strategy and what your customers value requires that you respond quickly and effectively. If you do not, then your ability to improve margins, increase your profits and increase your customer count is lost.

The system must have the following major attributes: • Pricing accuracy by using integrating barcode scanners and credit/debit card authorization ability with the POS system • The capacity to analyze sales data, figure out how well all the items on your shelves sell and adjust purchasing levels accordingly • Real-time product inventory control • The ability to maintain a sales history to help adjust your buying decisions for seasonal purchasing trends • Dynamic product sales capacity • Supply of customer sales data

So how does the above effect the point of sale system that you are using or considering to purchase?

Features in the system include the following: • Ease of use. Software that has a userfriendly graphical interface.

• Entry of sales information. The system should allow you to enter inventory codes either manually or automatically via a barcode scanner.

The system should allow sales manually when needed by letting you search for inventory codes based on a partial merchandise number and description.

• Product Pricing. Systems generally offer a variety of ways to keep track of pricing, including add-on amounts, margin percentage, etc. For example, if you provide volume discounts, you should be

The point of sale system your business uses must have the ability and capacity to make it easier to sell the products that your customers want and demand. You need to be using a modern integrated system with back office capabilities that will allow you to improve and widen your margins, increase your basket size and attract new customers. The system must have the ability to supply you with actionable data so that you can make pricing and product decisions that will increase your customer loyalty and your profits.

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able to set up multiple prices for items.

The system should also allow for future pricing so that you can update prices in advance of when you want them to take place.

• Sales tracking options. If you have customers on account you will need to ensure that the system you choose has this capacity.

• Security. In order to keep tight control over cash receipts to prevent theft. The system you choose must provide audit trails so you can trace problems.

• Integrated options. Pump control from the sales scree, calling card sales, loyalty program, digital advertising, foodservice.

Retail is changing quickly. Your ability Special reports can include sales for each In order for you to gain better control of hour of the day or for any time period. to better manage your operation to meet your business, you must have reporting Additional reports include day-end cash the changing retail landscape is vital and features. You can slice and dice sales data reconciliation work sheets and inventory should not be feared. You need the capacin a variety of ways to determine what management. Examine a variety of POS ity to manage your inventory effectively, products are selling best at what time packages to see which comes closest to you need to be scanning your products and you must audit your items to curtail theft. and to figure out everything from optimal meeting your needs.

You have to collect the minute details Every business is unique; you may find ways to arrange shelves and displays to what promotions are working best and that none of the off-the-shelf systems meet of every sale, every receiving, audit and your requirements. Industry-specific POS analyze them. If you do not, you will not when to change seasonal promotions.

Reporting capabilities should include packages are available for both gas sta- survive. sales, costs, and profits by individual tions and convenience stores. In addition, inventory items, by salesperson, or by cat- some POS system manufacturers will tai- Lee Barter is senior vice president of egory for the day, month and year to date. lor their software to your needs.

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P.D. McLAREN LIMITED

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www.pdmclaren.com 42 NOVEMBER | DECEMBER

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What’s New

Califia Nitro Cold Brew Mocha named 2017 ‘Convenience Store News Best New Product for Innovation’ at NACS Show, as convenience store sales of Refrigerated RTD Coffee grow +110 per cent More than ever, consumers are seeking products that are lower in sugar and Califia’s Cold Brew Coffees help convenience stores deliver this to their customers.

Califia Farms, the #1 selling RF RTD Coffee brand in US Natural and Specialty Channels, and a leading brand in Mass/Grocery(1), has received the “2017 Convenience Store News Best New Product Award” for Innovation for its Nitro Cold Brew Mocha in Single-Serve (SS), Readyto-Drink (RTD) format.

Cold brew is on fire at convenience stores – refrigerated RTD coffee sales grew +110 per cent year-over-year.

Califia offers a wide range of SS RTDs, in its iconic packaging that stands out on grab-and-go shelves, for nearly every consumption occasion, including XX Espresso, Triple Shot, Cocoa Noir, Salted Caramel, Black Label Cold Brew and Nitro Cold Brew.

“RTD coffee has the fastest growing dollar share of all nonalcoholic beverages in C-Stores, with increasingly more consumers looking for product attributes that Califia Farms provides: delicious, ready-to-drink, minimally processed and clean labeled,” said Dan Mader, SVP of Sales for Califia Farms. “This is an enormous opportunity for convenience stores and we’re pleased to play a key role in helping them serve these customers.” Mader added that Califia Farms, which is one of the fastest growing natural beverage companies in the US with dollar sales CAGR of 161 per

cent 2013-2016, has recently expanded its production capacity to meet soaring demand.

And, more than ever, consumers are seeking products that are lower in sugar and Califia’s Cold Brew Coffees help convenience stores deliver this to their customers. For example, Califia Farms award winner Nitro Cold Brew has less than 50 per cent of the sugar and calories per ounce when compared to the leading coffee chain’s dairy-based mocha blended drink - and, like all of Califia’s RTD Cold Brews, Nitro Cold Brew is completely dairy-free, gluten-free and non-GMO. According to a recent Nielsen survey, low sugar tied with low fat as a top priority among consumers, with 65 per cent of consumers saying they are trying to eat healthier and 72 per cent saying that they try to eat healthy, but can’t always do it.

Califia Farms Barista Blend, a favorite among consumers and coffee houses alike, was also a winner of the “2017 Convenience Store News Best New Product Award” in the Foodservice – Condiments category. Barista Blend is one of a line of innovative nut milk creamers produced by Califia that are striking a chord with the growing number of consumers who want a non-dairy, plant-based creamer option, without artificial ingredients or excessive sugar. In addition, Califia Farms Tangerine Juice won the “2017 Convenience Store News Best New Product Award” in the Packaged Beverages/Juice Drinks Category.

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www.pdmclaren.com 44 NOVEMBER | DECEMBER

OPW Showcases 125 Years of Innovation at PEI-NACS Global Leader Launches New Products & Hosts a Virtual Reality Experience Hamilton, OH, October 5, 2017 — Hosted at McCormick Place on October 18-20, OPW welcomed attendees at Booth 4120 for a look at the past, present and future of fluid-handling solutions worldwide. Here are the top features expereinced at OPW’s booth.

Innovative Products: A full line of innovative products on display including all-new products such as the Matador Composite Cover.

Virtual Reality: OPW is “Defining What’s Next” and gave attendees a look at the future of retail fueling through an immersive virtual reality experience.

The History Wall: An elaborate display chronicling 125 Years of “Leading the Way” and honoring the partners that have helped OPW achieve this milestone.

Since 1892, OPW has led the way in fluid-handling solutions worldwide. Through state-of-the-art research and development, world-class manufacturing and an unwavering commitment to quality, OPW has revolutionized fluid-handling operations.

“Our 125th Anniversary is a tribute to our employees and distributors across the globe,” added Keith Moye, VP of Global Marketing. “This celebration wouldn’t be possible without their dedication and partnership.”

For more information on OPW’s 125th Anniversary, please visit www.opwglobal.com/125-years.

Excentus Introduces Tools to Give CPG Manufacturers Direct Access to Convenience Retail Shoppers and Their Data at NACS 2017 DALLAS – October 19, 2017 – Excentus, a provider of loyalty technology and marketing solutions to national and regional brands, convenience retailers, grocers, and consumer packaged goods (CPG) manufacturers, launched new products and solutions to increase sales and improve promotions for CPG manufacturers at the recent National Association of Convenience Stores (NACS) Show.

Through Excentus’ retail programs, CPG brands will have unparalleled access to millions of shoppers, helping them better understand exactly who their customers are through sku-level data and personally identifiable consumer information. CPG manufacturers can in turn identify new opportunities to deliver the right branded offers and promotions to the right audiences and drive product movement. According to Excentus’ internal program data, customers spend 2x more inside c-stores when they belong to a loyalty program, and nearly 6x more if they are engaging with valuable offers.

Excentus provides flexible CPG-funded offer constructs that include cents-per-gallon fuel discounts, free items and rewards clubs, and product discounts. CPG brands can leverage Excentus’ direct-to-consumer communication channels through the Fuel Rewards program and other Excentus-supported retail programs.

Further information about the company’s solutions for CPG manufacturers is available by calling 305-749-5342.

Moyle Petroleum Partners With Gilbarco to Complete Forecourt EMV Upgrades GREENSBORO, N.C., Sept. 25, 2017 (GLOBE NEWSWIRE) -Applause TV is a turnkey digital marketing solution designed to entertain and engage customers while they’re on the forecourt driving them into the store. The entertainment and promotional content varies by time of day, promoting high-margin in-store items. According to Jonathan Kemp, I.T. Systems Manager at Moyle, “We are excited to bring the Applause consumer engagement technology across all of our locations. It will certainly boost our business inside the store. We also look forward to protecting our customers’ credit and debit cards from fraud with the additional security of EMV on the forecourt. Upgrading to EMV inside the store was a pretty painless process and aligns with our mission, while giving us a competitive edge.” Moyle uses Gilbarco’s Passport Point-of-Sale system inside the store.

Gilbarco’s VP of Marketing for North America, Mark Williams, says that consumer expectations have really pushed retailers to focus on EMV. “We launched EMV software for our Passport point-ofsale system more than a year ago. We expect to see EMV ‘turn on’ at the fuel dispenser rapidly as well when the software is available later this year. Retailers are anxious to retain their securityconscious customers, who understand that fraud will be highest at those sites that haven’t yet upgraded.”

Applause TV can be factory-installed to support media in Gilbarco’s new Encore 700 S dispensers or in FlexPay II retrofit kits for existing Encore 300, 500 or Advantage models. It leverages the same high-speed communications equipment required for EMV, making one upgrade a logical extension of the other.

For further information, contact (336) 547-5121 e-mail: patricia.stancati@gilbarco.com.

One Brands Introduces Comprehensive Rebrand At NACS Fast-Growing Protein Bar Unveils New Packaging at Chicago Trade Show CHICAGO (October 4, 2017) ONE Brands unveiled their brand-new look at the NACS trade show in Chicago recently.

While the delicious recipes that make ONE Bar so crave-worthy will stay the same, ONE packaging will now feature new mouthwatering photography, engaging tag lines and disruptive color schemes to delight old and new fans alike.

“After months of creative and strategic teamwork, we are eager to introduce a modern brand that communicates the better-for-you messages that are unique to ONE; most importantly that our bars always offer just ONE gram of sugar and at least 20 grams of protein per serving,” said Peter Burns, CEO of ONE Brands. ONE’s guilt-free, yet indulgent, bars are available in flavors including Birthday Cake, Cinnamon Roll, Chocolate Chip Cookie Dough, Peanut Butter Pie and more will continue to be sold at One1Brands.com.

CONVENIENCE & CARWASH CANADA 45

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Michael von Knorring retires from Washworld; Rick Lancelle New European Sales Support DEPERE, WI - Washworld, Inc. would like to officially congratulate Michael von Knorring on his retirement. Michael joined the Washworld team in 2011 as the European Sales Manager. Since then, Michael’s industry knowledge has contributed to Washworld’s global growth. He was an integral part in establishing strong distributor and customer relationships internationally. We would like to thank Michael for all of his accomplishments and wish him the very best.

Washworld is dedicated to growing our mutually beneficial partnership with all of our distributors. Rick Lancelle will be the point of contact for our European Distributor Network. Rick is fully prepared and equipped to handle any questions and support needed associated with Washworld equipment. He has been with Washworld for nearly 14 years and has a vast knowledge of our products. Rick will make an excellent addition to the European sales and support effort.

For more information visit Washworld’s website at www.washworldinc.com.

Dover Fueling Solutions Appoints New Managing Director Of Europe, Middle East And Africa Austin, Texas USA - [September 21, 2017] – Dover Fueling Solutions (“DFS”), is pleased to announce the appointment of Jeroen de Gruijter to the role of Managing Director of Europe, Middle East and Africa (EMEA). Reporting directly to David Crouse, the President of DFS, de Gruijter will be based in the DFS manufacturing center in Dundee, Scotland.

A Mechanical Engineer, de Gruijter joins DFS from Xylem, a water equipment manufacturer, where he served as Managing Director for Europe, Middle East, India and Africa.

Crouse said, “Jeroen’s experience in implementing market strategy and his knowledge of the business landscape within the EMEA region will be vital as DFS continues to work to deliver to customers worldwide a greater range of choices by providing a combined product portfolio that represents the industry’s only truly global end-to-end fueling solutions and world-class support.”

For more information about DFS, go to www.doverfuelingsolutions.com.

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