Convenience & Carwash Canada Sept_Oct 2018

SEPTEMBER | OCTOBER 2018

Canada’s most read Canadian owned and operated Convenience, Retail Petroleum and Carwash Publication

LIGHTING TECHNOLOGY ILLUMINATES THE WAY

REMEMBERING DISTRIBUTION HERMAN – MAKING ALTON DEAL RETAIL LIFE EASIER PAGE 5

PM41670539

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BLUEPRINT TO FOODSERVICE: DISPENSARY DRINKS

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CANNABBIZ: BUSINESS OF CANNABIS

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VIDEO TECHNOLOGY: SEE INSIDE STORAGE TANKS PAGE 63

PROFITABILITY ADD-ON: IT’S IN THE DETAILS PAGE 43

CANADA’S VEHICLE WASHING CHEMICAL & EQUIPMENT SUPPLIER Protecting The Environment

INDUSTRY LEADING: • Touchless products • Packaging • Car Wash Equipment • Chemical Monitoring • Service

TAP & WASH

PAYMENT

WWW.MONDO-PRODUCTS.COM 695 Westney Road South, Unit #1 Ajax, ON L1S 6M9 905-426-9339 / 1-800-465-5676

CONVENIENCE & CARWASH CANADA

Cover Story

Petroleum and Carwash

Industry News

Instore and Nutrition

25 48 19 15 Lighting Technology Illuminates the Way

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Publisher’s Message

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Remembering Herman Alton Deal

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Editor’s Message Paying with Cash

Checks and Balances Creating Preventative Maintenance Schedules

Distribution Making Retail Life Easier

Blueprint to Foodservice Dispensary Drinks

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Women in Carwash

WCSA Report Water Reclaim Systems

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63

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Detailing Profitable Add-On Potential

Mobile Technology Generating Revenue

Video Technology Seeing Inside Storage Tanks

Gum/Mints Popular Purchases

NACDA It’s Summit Season

Leveraging Loyalty Increasing Store Traffic

CannaBIZ The Business of Cannabis

Point-of-Sale Choosing a POS System

Negotiation Strategies for Winning

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Forecourt Insight Preparing for Winter

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What’s New

Upcoming Events October 24, 2018 ACE (Atlantic Convenience Expo) and Retail Convenience Awards Halifax Convention Centre, Halifax, NS Hind@hammoudconsulting.ca www.theaceshow.ca October 7-10, 2018 NACS Show 2018 Las Vegas, NV www.nacsshow.com

November 6, 2018 Coffee Association of Canada Annual Conference, The Craft of Coffee Steam Whistle Brewing, Toronto, Ontario www.coffeeassoc.com February 19–21, 2019 WPMA Expo The Mirage Hotel, Las Vegas, NV www.wpma.com/national-convention

April 29 – May 1, 2019 Women in Carwash™ Conference Niagara Falls, ON www.womenincarwash.com May 13–15, 2019 The Car Wash Show™ 2019 Nashville, Tennessee www.thecarwashshow.com

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SEPTEMBER/OCTOBER

Publisher’s Message

Hello everyone. I hope that you had a fabulous summer and that business was great.

As we move into fall we say goodbye to a carwash industry icon; Herm Deal. Herm was a wonderful man who was always kind and gracious. In the almost 20 years I’ve been in the industry I had the pleasure of sitting and talking with Herm for about 15 of them during the ICA shows where we’d catch up on industry news and events. Herm introduced me to some key players and helped me navigate the carwash industry. He will be greatly missed by everyone who knew him. Please take a few minutes to remember as you read the tribute to Herm on the following page.

This summer has been a great summer for many but others have been suffering the effects of fires, insufferable heat waves and dry conditions. My sister has a convenience/gas site in northern Ontario, Gramp’s Place, and for weeks had suitcases packed and one foot out the door waiting for the evacuation order to come. Thankfully that call never came but during this stress-filled few weeks their store and pumps remained open servicing the local community and the fire workers around the clock for those who stayed to wait out the fires.

In British Columbia, the fires continue to rage and in many communities residents have fled but businesses such as convenience and gas stations remain open to service those who are in need of necessities, such as fuel, ready to eat foods and beverages.

It is these folks that we need to celebrate for they remain to service you, their customer, in your community; and although they are business people, your local convenience and gas retailer are also some of our unsung heroes who provide services in your communities and who you probably never even think about for they are always “just there” when you need them.

In this our fall issue, we introduce you to our new Cannabiz section. Each issue we will bring you news and updates on the cannabis market that will keep you apprised on news and regulations, trials and tribulations as retailers navigate through this new business.

We hope that you take away some great new ideas from this issue on increasing visibility both inside and out from our lighting article and when you fret about the next conversation you must have with a sales rep you’ll be well-versed after your lesson in negotiating basics.

Every issue we strive to provide our readers with editorials to make you think, educate and inform and we welcome any suggestions that you may have about what you’d like to learn more about. Send us an email to editor@convenienceandcarwash.com or better yet, give me a call, 204-489-4215, I’d love to hear from you.

Enjoy the fall and as you gear up for the next season, keep in mind that your business is my business and our commitment to you, our reader remains stronger than ever for without you, our reader we cease to be. Take the time to call our advertisers for they support what we do and without them we cease to be. Their products and services are your products and services and together we make up the convenience, retail petroleum and carwash industry and their growth is your growth too.

Until next time,

Brenda Jane Johnstone Publisher

Remembering Herman Alton Deal (October 8, 1923–August 18, 2018)

CONVENIENCE & CARWASH CANADA

Aged 94, a longtime resident of Ann Arbor, Herman Alton Deal passed away on Saturday, August 18, 2018. He was born on October 8, 1923 in Statesboro, Georgia, the son of John and Mabel (Donaldson) Deal. Herman grew up on the family farm in Bulloch County, Georgia, raising chickens, peanuts and tobacco and working hard. After graduating from South Georgia Teacher’s High School in 1941, he enrolled in Georgia Military Academy Junior College in Atlanta. After Pearl Harbor, he completed his school year and then went to work in the shipyards building ships for the navy.

In 1942 he enlisted in the Army Air Corps at the age of 18 and was trained as a flight engineer. During his training, he was sent to Willow Run in Ypsilanti, Michigan to train on the B-24 bomber and where he met his future wife, Helen Ellis, who worked at the bomber plant as a ‘Rosie the Riveter’ and later as flight deck inspector for the B-24. During his active duty in World War II as a member of the 15th Air Force, 450th Bomb Group, 722nd Squadron, he was shot down on a bombing mission over Toulon, France, captured and imprisoned at Stalag XVII B near Krems, Austria. He was liberated by the Third Armored Division in May 1945 after nearly four months of forced marching through Austria. Seventy years later he was awarded the Military Order of the Purple Heart at a special ceremony at Yankee Air Museum.

After discharge from the army, he managed the Coca Cola bottling plant while attending Georgia Southern University in Statesboro. He moved to Michigan and married Helen Ellis on May 6, 1950. He worked for the Michigan Consolidated Gas Company in Ypsilanti and Ann Arbor from 1950 to 1964, starting as a door-to-door salesman and becoming regional sales manager. In 1964, he bought Huron Valley Sales, a water-heating equipment distributor company, from Harlan Bird, who gradually retired from the business. Huron Valley Sales thrived and eventually became a leader in the carwash industry, pioneering such applications as ice prevention and snow melting systems, radiant floor heat, recycling water and reverse osmosis. Herman served on the board of the International Car Wash Association, and in 1995, was inducted into the International Car Wash Hall of Fame. Herman never retired from work, but continued to be involved with the business and the industry.

Herman and Helen lived in Ann Arbor since 1950, where they raised their eight children.

Herman was an active member of Westminster Presbyterian Church of Ann Arbor since 1960. He was involved with Junior Achievement and the Boy Scouts while his six sons were active in those organizations. He loved to go fishing and organized an annual fishing trip with friends, family and business associates for more than 30 years. He loved to garden and always planted a big vegetable garden and lots of flowers. He loved traveling with his wife and friends – the Too Too Travel Troupe took many trips together. They were also part of the Forty Diners for 41 years. Most of all, he loved and devoted himself to his family. His wife of 62 years preceded him in death in 2012. He is survived by his eight children: Howard (Susan) Deal; Mitzi Espinosa; Jeffrey (Diana) Deal; James Deal; Alan (Suzanne) Deal; Douglas (Alona) Deal; Alice (Dominic) Ahearn; Robert Deal; 24 grandchildren and four great-grandchildren.

He is also survived by two sisters, Dorothy Greene of Miami Florida, Mxartha Horne of Savannah, Georgia, and one brother, Ralph Deal of Statesboro. He was preceded in death by his brother, Morgan Deal and his grandson, James Ahearn. A celebration of his life was held at Westminster Presbyterian Church at 1500 Scio Church Rd., Ann Arbor, MI on Saturday, September 1st at 1 p.m., with a reception following the service. In lieu of flowers, memorial tributes may be made to the Yankee Air Museum and the Larry Harrell Scholarship Memorial Fund of the International Car Wash Association.

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Editor’s Message

Paying with Cash

During a recent shopping experience at a local convenience store, when I went to the cashier to pay for a few items, I was greeted with a surprised reaction when I pulled a $20 bill out of my purse to complete the transaction.

Noticing my surprised response to her surprised reaction, the cashier commented that she doesn’t see many people who want to pay with cash any more. Feeling somewhat out-of-date with modern ways, I simply nodded my head before asking how she has expected me to pay for the items. She replied that most of their customers use debit or credit cards.

In this issue, we have an article on using mobile technology to boost carwash revenues, as well as an article on choosing a point-of-sale system. As the POS article notes, new technologies are constantly evolving.

It’s important to ensure that your business is keeping up with new technology and the expectations of your customers. Earlier in the year, I walked into a new, independently-run convenience store. I watched as customers picked up items and walked to the cashier to pay for them only to be told that their debit or credit card capabilities had not been set up yet and therefore they were accepting cash only. These customers did not have any cash on them, and ended up leaving the store empty handed, without making any purchases, after an unsatisfied experience and with annoyed expressions on their faces.

Even the use of plastic debit or credit cards is becoming a thing of the past for many modern consumers. During a recent session at the Store 2018 conference, it was noted that more people are using mobile wallets when paying for items in-store and that it is becoming less convenient for customers to carry cash.

Ensuring that your customers can successfully make purchases in the manner to which they are most comfortable, using the tools they have on them makes good business sense. Customers will return to the stores where payments can be made easily and efficiently.

Angela Altass Managing Editor

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 Diana Signorile National Sales Media Solutions 403-607-8133 diana@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 Meline Beach Dave Bowen Denell Gibson Ed Kammerer Todd Klitzke Andrew Klukas Gary McDougall Tania Moffat Alan Nawoj Kimberly Otocki Peter Sutherland Kevin Wang 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.

JUUL Labs – page 12 Taylor Food Equipment – page 17

WCSA Report

CONVENIENCE &&CARWASH 77 CONVENIENCE CARWASHCANADA CANADA

Challenges to Installing Water Reclaim Systems? Please share your experience The WCSA has been looking into regulations around water reclamation, their impact on carwash

operators and equipment suppliers, and implications for broader public policy.

One of the most glaring problems facing the world today is access to fresh water. Pressure on the resource is growing and pollution of surface and groundwater further reduces the supply.

The availability of and access to fresh water supplies has been highlighted as among the most critical natural resource issues facing the world. Thirtyone countries are facing severe water stress, over a billion people have no access to clean water; by 2025 researchers are predicting water will be shipped around the globe like gas is today, through pipelines and tankers.

Nonetheless, water use continues to increase. Between 1972 and 1996, Canada’s water usage increased by 90 per cent while the population increased only 33 per cent. US water consumption has increased six-fold since the 1900’s, twice the rate of population growth.

According to the 2011 Municipal Water Pricing Report produced by Environment Canada, water and sewer rates have risen 25 per cent on average since 2006 and will continue to climb.

Not only are rates going up but municipalities are switching over to volumetric charges vs flat rate charges, which means customers will be charged for every liter or gallon of water used and sent down the drain.

What does this mean to carwash operators? Water and sewer bills will continue to skyrocket. In 2013 it was estimated that the use of water reclamation can save an operator anywhere from $8,000 to over $20,000 a year in water and sewer costs. However, efforts to get a permit expose operators to a multiplicity of sometimes contradictory and always confusing regulations.

Back in the day when municipalities

and water and sewer districts were starting to get concerned about their ability to deliver water and process wastewater for their customers, they developed a means to collect revenue to help offset needed improvements. These were called impact fees and were calculated to charge the user that would have the most need for water and sewer services the most money.

The solution to the problems these fees were meant to address is water conservation – doing more with less.

Water reclamation systems are integral to this effort and a properly designed water reclamation system can save significantly on water and sewer bills, which can exceed all other expenses in some locations. In fact, with a properly designed reclaim, the treatment of carwash reclaim water greatly improves the quality of the water, making it safe for human exposure and discharge to the environment and putting less of a burden on the local municipality for the treatment of that wastewater.

However, the installation or upgrading of carwash equipment is subject to government approval. While some parts of the US and Canada mandate the use of reclaim in carwashes (e.g., Quebec City, most of Florida and California), other parts actually prohibit it. In the absence of provincial or federal regulations the decisions to approve or reject applications are made at the municipal level, often by health inspectors or other local officials. The WCSA has heard that this results in highly inconsistent regulatory environment and that applications to install new equipment are commonly rejected.

If you are a carwash operator, have you faced any challenges related to the installation of reclaim solutions?

Please contact Andrew Klukas, WCSA President and andrew@ conveniencestores.ca or call toll free at 1 855 734 2487 to share your experience.

WCSA Strategic Planning Phase 1

The board of directors of the WCSA undertook the first phase of a strategic planning process on May 23, 2018. The question was posed: “Should WCSA continue to exist as an organization?”

After thorough discussion and debate, the board concluded that not only was it important that WCSA continues to exist, but also that it is important to the industry that the association thrives.

Board members indicated that work needs to be done on the image and credibility of the industry and advocacy efforts need to be further ramped up when it comes to government and the public.

The WCSA should look for ways to engage and increase its membership. As well, it should look at ways it can enhance the reputation of the convenience store industry.

The board members discussed what

the core priorities are for the organization. The board members strongly agreed that the WCSA should: • Influence Western Canadian governments on matters impacting the industry • Play a leadership role in supporting the education of convenience store retailers on business standards and ethical practices in the industry • Play a role in educating the public about the safe practices of industry retailers • Govern and operate with excellence After confirming WCSA’s key priorities, the board determined that another session was required to further define the association’s strategic goals and supporting initiatives and to clearly define what success will look like over the next three to five years.

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W CN A PN E R, T S Q UE A LS I TT Y E E QR U IN PME T. N A D A’ S C A R W A S DHE E SX IG DEPENDABLE SERVICE. Q U A L I T Y E Q U I P M E N T.

DEPENDABLE SERVICE.

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ROCKYVIEW INDUSTRIES INC. 7110 Fairmount Dr. S.E. Calgary AB T2H 0X4 Canada Tel: 1 (403) 293-1188 Toll Free: 1 (888) 447-2077 www.rockyviewindustries.com

NACDA

CONVENIENCE & CARWASH CANADA

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Summit Season is Upon Us: Join the Industry in Halifax in September Set along Halifax’s harbourfront, the 2018 National Convenience Industry Summit brings together retailers, distributors and manufacturers from across Canada.

During a time of industry disruption, this year’s program will focus on Navigating a Changing Channel. The 2018 summit will provide relevant research, inspiring keynotes and networking events that will offer insight into future opportunities, challenges and trends.

Once you arrive in Halifax on Tuesday September 25, join us for a night out on the town to kick things off. Meet with industry friends and network into the night. The program kicks into high gear the next day with a full day of sessions, trade exchange and close off with our gala awards event. On the final half-day of programing, our keynote speakers will leave you with some valuable insights to take back to the office.

Business Sessions

The summit program features five business sessions that focus on the matters that affect our members’ business. Speakers like: Carman Allison, who returns to the summit stage by popular demand, to share the latest trends and tell us the stories behind the numbers. With a particular focus on how to respond to retail disruption, attendees come away with some ideas on how to navigate through an ever changing retail landscape.

A local to the area, Pete Luckett joins the panel of speakers to share how the industry can create enticing customer experiences with bold displays and new product concepts to leverage consumers purchasing habits. Pete Luckett is famous for creating spaces where customers don’t shop as much as they congregate and every retailer knows the longer they shop, the more they buy.

And, Scott Stratten, president of UnMarketing, will explain what we lose in the endless quest for the next bright shiny business object. Today’s business climate is changing at an unprecedented

rate. While everything has changed, nothing is different.

Trade Exchange

The Trade Exchange is a mini-trade show where each manufacturer has a station to showcase their products.

Distributors and retailers from across Canada visit to exchange information with manufacturers.

This is a platform for developing and building business partnerships. It is an opportunity for manufacturers to meet with retailers and distributors. The primary purpose of the mini expo is to provide an opportunity for manufacturers to touch base and network with senior retailers and distributors for future business.

National Convenience Industry Awards Gala

On Wednesday, September 26, individuals and companies are honoured for industry excellence and innovation as the recipients of the Convenience Innovation Awards and the Awards of Excellence are celebrated together.

Join us in

Halifax, Nova Scotia September 25 - 27, 2018

The Convenience Innovation Awards recognize top product development in the convenience industry. The program provides a benchmark for leading innovation, recognizes those top products in the industry, and awards suppliers for outstanding research and development.

The Awards of Excellence recognize individuals and businesses that contribute to the growth of the convenience industry. The Awards of Excellence ceremony pays tribute to the recipients, acknowledges their accomplishments, and announces their induction into the NACDA Hall of Fame.

The 2018 National Convenience Industry Summit is taking place in Halifax, Nova Scotia at The Westin Nova Scotian on September 25th to 27th, 2018.

SpeakerS

Alex Chausovsky, Bob Espey, ITR Economics Parkland Fuel Corp.

Scott Stratten, UnMarketing

Carman Allison, Neilsen

Set along Halifax’s harbourfront, the 2018 National Convenience Industry Summit will bring together retailers, distributors and manufacturers from across Canada. The 2018 Summit will provide relevant research, inspiring keynotes and networking opportunities that will offer insight into future opportunities, challenges and trends.

Register online today at

nacda.ca

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Women in carwash

SEPTEMBER/OCTOBER

WOMEN IN CARWASH International Conference – Niagara Falls Canada APRIL 29–MAY 1, 2019

In the ever changing and competitive landscape of the carwash industry, women are quickly becoming an integral part of successful carwash organizations.

Their impact and leadership can be found in many facets of a carwash organization – from ownership to site management. Convenience & Carwash Canada magazine will recognize and celebrate these women by hosting the first ever Women in Carwash Conference.

FOUR DYNAMIC EVENT SPEAKERS! Dr. Peter Hansen: The Joy of Stress Nancy Schmautz: DISC Personality Testing Workshop Azadeh Yaraghi: Your “ONE IDEA”– The Key to Your Success Gary McDougall: Constructive Conflict Management–Dealing with Difficult Clients Strategic Conflict Management Offering the best in Offering a variety of cleaning solutions soft-touch, hybrid TITLE SPONSORSHIP the and featuring choices wash systems. family of vehicle care products.

FOR EVENT DETAILS INCLUDING SPONSORSHIP, PLEASE CONTACT: Brenda Jane Johnstone phone: 204-489-4215 email: bjjohnstone@convenienceandcarwash.com Andrew Klukas phone: 778-772-3057 email: andrew_klukas@shaw.ca

CONVENIENCE & CARWASH CANADA

WOMEN IN CARWASH International Conference – Niagara Falls Canada

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April 29–May 1, 2019

This is the next segment in our Women in Carwash feature, introducing and celebrating women working within the carwash industry across North America. Following are stories of more inspiring women for you to enjoy.

Gina Elachi PARKLAND INDUSTRIES

Gina Elachi has owned and operated a complex station with a car wash in her hometown of Burlington, ON., since November 2017.

She entered into this line of work several years ago when she began working in the family business. Over the past 19 years, she has worked at various Pioneer locations. She credits this time with Pioneer, (a division of Parkland Fuel Corporation), for providing her with valuable experience and the confidence to operate her station and car wash.

Gina’s advice to women in the car washing business is to remain open to gaining additional experience. “Don’t ever be afraid to get your hands dirty and don’t be afraid of operating a car wash business,” she says. “In this industry, you face many challenges, but with training, experience and perseverance you will overcome them.

It is important to love what you do,

and Gina is blessed to be doing what she loves every day. “It is always satisfying to see our customers happy and to know that I’m building positive relationships with them,” she says. “Parkland has been great to me. If I had to choose a career again, I would choose another career at Parkland every time. In fact, if I were given the opportunity to operate a bigger, more complex location, I would not hesitate.”

Jennifer Pimentel VALET CARWASH

Jennifer Pimentel began working in the car washing business 23 years ago.

Her close friend, Steven, was managing a Valet Car Wash business and was searching for someone to run the front desk. A single mom at the time, Jennifer seized the opportunity. “While it didn’t start out as a family business, we made it one,” she says.

Being hired as the site manager at the new Brantford location has been an

opportunity she will never forget. The biggest challenge she sees in her line of work is that some people still hold on to the misconception that women don’t understand cars. Although the job can be trying at times, Jennifer loves her position and wouldn’t change a thing.

When asked what advice she would give to other women in the industry, Jennifer says, “Just go for it!” For her, seeing the satisfaction on her customers’ faces makes it all worthwhile. “I see people light up when they first see their cars; it brightens my day. I love that feeling,” she says.

The future looks great for Jennifer. She is now 45 years young, married with two girls and plans on continuing to work for Valet Car Wash. After all, why leave when you are happy doing what you do?

Laura Edgmond NATIONAL CARWASH SOLUTIONS

Laura Edgmond is the associate brand manager for National Carwash Solutions continued on page 41

CannaBIZ

CONVENIENCE & CARWASH CANADA

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THE BUSINESS OF

The truth is that nobody really knows exactly what's going to happen after Oct. 17th’s cannabis legalization date.

No country in the world has done what Canada is about to do this year

CANNABIS FROM A RETAIL PERSPECTIVE

By Tania Moffat

Opening a new retail operation can be a gamble. The odds are primarily based on industry knowledge, meeting customer needs, building loyalty and a strong business plan. However, imagine that instead of having all this information to work with and base decisions on, there is nothing.

When it comes to cannabis, everyone – licensed is it? It is difficult for a retailer trying to navigate producers, wholesalers, governments, and retailers through data as the projections vary wildly and are all still somewhat in the dark. The industry there isn't always a consensus. Opposing groups is a tabula rasa and we can only wonder what make excellent and sensible arguments for entirely will happen post-Oct. 17th. Right now, so many different outcomes – even though they are in total questions remain: What should sales be? What will conflict. There's so much information out there the typical client look like? What products will they that it's almost too much, and none of it's certain buy? How many of them will buy online and how – the truth is that nobody really knows what is much? How many will switch from existing illegal going to happen after Oct. 17's legalization date. sources? Will this be as profitable as people think No country in the world has done what Canada is it will be? about to do this year.

Business plans may not have all the answers, but In the words of one soon-to-be cannabis retailer, at least they can provide educated guesses to these the road to legalization has already been a wild ride questions based on market research. However, new of unknowns. "It's an experience unlike any other," cannabis retailers are in a category of their own. says the private retailer. "It is exciting to be a part This is a new industry for Canada, and business of this brand-new industry, but it is also terrifying. plans are based on the results of similar retail busi- You know nothing, and everyone, including governnesses, of which, there currently are none. ment, is navigating this at the same time. We are all learning from each other, trying to get set up and An uncertain market ready for our customers in just a few short months."

Some information can be gathered from our American neighbours who currently have 10 states A new retail experience that legally allow the recreational sale of cannabis. To even get started in this business is not your Polls have been taken in our marketplace too, both usual retail experience. Cannabis retail is a heavily nationally and provincially, so there is information regulated industry and depending on where you to guide retailers. In fact, the amount of information live; it may not even be possible to open a private store. Each province and territory has its own out there on cannabis is staggering, but how reliable

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rules. There are jurisdictions where the There are other considerations that sale of cannabis is entirely government haven't even been touched on that are run, Nova Scotia, New Brunswick, and unique to cannabis – safety and security, Quebec are three examples. Other stopping the sale to minors, and staff jurisdictions, such as Alberta, have a and customer education are all essential hybrid public-private model to success in this business. where the Alberta Gaming There's no doubt that Legal counsel is and Liquor Commission probably the safest the cannabis industry acts as a wholesaler, course of action to will be full of even more operates some stores and unique challenges in the help navigate you online sales, while allowing through marketing days ahead. The landscape private groups to have the will constantly be changand promotions opportunity to access one ing, rules adjusted, and that comply with of the 250 retail licenses. retailers will need to be all the laws and Other provinces, like guidelines that are/ able to adapt quickly and Saskatchewan, support a have the resources to do it. will be in place. private retail, wholesale This is history in the makand online model with ing; there will never be an government overseeing licensing. While opportunity quite like this again in our even now some provincial legislation lifetimes, to be a part of this brand-new is still under development; Ontario industry. A monumental decision to recently changed its model. Even in shift what was previously illegal into areas where private retailers are allowed, the number of retail licenses are limited, and for many, the application deadline has already passed.

Normally simple decisions are also much more difficult for cannabis retailers. There just hasn't been enough time for vendors to prepare because cannabis is‌well, cannabis. The most significant problem stems from the fact that the product isn't even legal yet. Imagine trying to do simple things like banking, getting business insurance, or buying inventory. How can you open a bank account or get insurance or arrange delivery for a product that is currently an illegal substance? Sometimes what should be a quick question for your local rep becomes, "hang on; we're working on it" or, "ask us again at the end of October," not ideal situations for a business preparing to open by mid-October.

Obstacles

How does one even go about promoting a new, currently illegal business? Legal counsel is probably the safest course of action to help navigate you through marketing and promotions that comply with all the laws and guidelines that are/will be in place. As with anything new, retailers may accidentally make a misstep, unfortunately the resulting hefty fines and consequences can be a deterrent.

something that will be picked up as casually as you can pick up a bottle of wine, or a vape pen, at your local store. It's going to be an exciting ride for those lucky enough to participate.

In the months ahead, in our new column Cannabiz, we will bring you stories from the perspective of actual cannabis retail operators. Get their perspective as they navigate through this new, complex and exciting industry as Canada enters this brave new world of legalized cannabis.

Tania Moffat is a freelance writer, editor, publisher and photographer. She has spent the last 15 years in the publishing industry writing for a wide variety of B2B and consumer publications both in print and online. She can be contacted via her blog www.chiccountrymom.com.

Blueprint to Foodservice

CONVENIENCE & CARWASH CANADA

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Dispensary Drinks Pour in Big Profits

By Meline Beach

It’s all about choice and control for today’s consumer. We want it all.

That goes for dispensary drinks too. If you take a look around, more

establishments are offering customers more control over their beverage of choice – in product variety, selection in flavours and the freedom to pour it themselves.

The dispensary drinks category has expanded beyond your basic coffee and fountain drink and includes a variety of carbonated sodas, simple or specialty coffees, smoothies and milkshakes on a full-serve and self-serve basis in c-stores across the country.

Ice or no ice. Single flavour or multiple flavours combined. Hot, cold, iced or blended. Half cup, full cup. Organic, Fair Trade or Rainforest Alliance Certified.

The choice is yours.

C-stores have the competitive advantage of offering customers dispensed beverages that are quick, consistent and comparative quality, portion-controlled, reasonably priced and on the go – at the touch of a screen.

Convenience & Carwash Canada spoke with a few representatives in the dispensary drinks industry for their take on popular products, reliable equipment, industry trends, a retailer’s responsibility and what to watch out for to ensure a success dispensary drinks program in the C&G channel. We spoke with Chris Midbo, territory manager with Western Refrigeration; Amy Brown, marketing manager with Franke Coffee Systems; and Judi Saliba, senior sales executive at TFI Food Equipment Solutions Inc.

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What drink dispensary equipment do you supply to the C&G channel?

Western Refrigeration [WR]: Western Refrigeration supplies fountain beverage dispensers and FCB (frozen carbonated beverages) dispensers. These are primarily self-serve. The company we represent is Cornelius, which is the largest manufacturer of beverage equipment in the world.

Franke [F]: Franke offers a full portfolio of both semi and super automatic coffee systems, with full-serve and selfserve applications. Our A-line of super automatic coffee machines (A1000, A800 Fresh Brew, A600, A400) dispense beverages at the simple touch of a button – freshly brewed, bean to cup coffee, espressos, cappuccinos, mochas, lattes, macchiatos. Anyone can operate these machines with ease.

TFI Food Equipment Solutions Inc. [TFI]: Our network supplies Taylor FCB and Franke specialty coffee and bean-tocup equipment.

Which of the dispensary drink equipment that you supply to the C&G channel are the best selling/ most popular, and why?

[WR]: In Canada, the FCB slush dispensers are the most popular. The product is extremely popular with high consumer demand and popular with retailers because of its high profit margin of approximately 60-70 per cent profit. Fountain pop is making a resurgence in the c-store channel due to better quality equipment and some of the larger chains promoting it strongly.

We also provide non-carbonated units (FUB) that make ice coffee, available in different capacities.

[F]: The A1000 is the perfect solution for high-volume establishments that want to provide a wide variety of espresso-based beverage options to their customers. This machine can keep up with the highest demand, has the capability to offer two milk types and up to six different flavours. Its touchscreen with custom screensavers and video capabilities provides a great opportunity for operators to educate customers on available drinks and other in-store offerings.

[TFI] Taylor Model 349 FCB machine is the most popular as well as the best selling. Extremely fast dispensing, ease of operator use and unmatched field life – the average field life of that machine is 10 years of profitability.

What are the trends/innovations in dispensary drinks and how are you responding to them?

[WR] The biggest trend is more options for flavour and type of drink. Like the bottled category, it’s about selection. In terms of innovation, the incorporation of new displays in product control and dispensing, with the opportunity for companies to download their own advertising, like an IPAD screen, is awesome technology. Equipment has also come a long way in terms of it being easier to use and maintain. Our Viper FCB units are fully sealed so no chance of any contamination, hence a safe, great tasting product. A longer operational lifespan with less maintenance means cost savings for the retailer.

[F]: Limited Time Offers (LTO) trend at different times of the year. Our machines can make Pumpkin Spiced Lattes, Peppermint Mochas, Gingerbread Lattes, and any other LTO an operator would like to select to satisfy those LTO cravings. Additionally, we see a trend in cold foam. The side fridges with our machines feature FoamMaster Technology, which has the capability to make both hot and cold milk foam.

Internet connectivity of our equipment enables the retailer to gather real-time sales figures, machine status, payment systems and pay per beverage option right at the machine.

[TFI]: The most successful programs are self-serve – today’s consumer likes to be in control of the purchasing experience and self-serve allows this. In case of FCB, consumers like to mix flavours for a bold and colourful beverage.

What work is required on the retailer’s part to ensure a successful dispensary drinks program?

[WR]: The biggest effort on a retailer’s part is to perform the required maintenance to ensure a quality and safe product is served, and to ensure the

CONVENIENCE & CARWASH CANADA

longevity of the equipment.

[F]: It is important to get staff support of a new coffee program to ensure success, or assign a coffee champion at your location. Operationally, the retailer should focus on store configuration and best placement for the equipment that will allow easy use. The retailer should also make a conscious effort to educate their customers on their coffee offering to gain momentum, through marketing, sampling, appropriate lighting and signage.

[TFI]: Regular maintenance for each piece of equipment is an absolute must – whether it’s daily cleaning or a quarterly tune up.

What support do you offer C&G retailers to ensure a successful dispensary drinks program?

[WR]: Preventative maintenance programs are available. Training is done at install as well if the site wants to perform the maintenance themselves.

Parts and labour are readily available with a toll-free service line covering all across Canada.

[F]: Franke offers training, service and maintenance support through a vast network of service providers across North America.

[TFI]: Every piece of equipment from TFI includes installation, start up and regular training by our factory trained technicians. All our service events carry warranties.

What should a retailer consider before committing to a dispensary drinks program?

[WR]: A retailer’s location and its demographic should be considered.

Schools, sports fields, office buildings in close proximity are advantageous. A dispensary drinks program adds profit to an existing foodservice program, such as hot dogs and deli sandwiches.

[TFI]: A turnkey specialty coffee/beanto-cup program would occupy about 36” of counter space, while a Taylor Model 349 needs 40” of floor space.

What should a retailer watch out for with a dispensary drinks program?

[WR]:

Cleanliness

around

the

equipment is always a concern. Like anything else, the area needs to look organized and be clean at all times. Eye appeal is huge.

[TFI]: Properly maintained equipment with the right marketing strategy is nothing other than a home run. There is waste and spillage with any foodservice product, but the tremendous profits (+70 per cent) and the extended field life of the equipment, coupled with the popularity of the categories, make a huge profit generator for the operator.

What advice would you offer a retailer considering a dispensary drinks program for their store?

[WR]: Self-serve is a big growth area in the c-store channel and is perfect for retailers looking to increase their profitability. My advice is to ensure cups and lids for dispensary drinks are organized and clearly marked.

17

[F]: Now is the time to elevate your traditional drip and espresso-based beverage programs to maximize sales.

[TFI]: Unquestionably, self-serve drives sales. Pay attention to your profit centre – wipe up spills and keep the equipment full so customers can buy the product.

Overall, we learned that dispensary drinks in the C&G channel is BIG – a big growth category, big in product and flavour innovation and that operators can sip and slurp a big profit margin.

Meline Beach is a Toronto-based communications practitioner and frequent contributor to Convenience & Carwash Canada. In addition to freelance writing, Meline provides communications and public relations support to businesses across Canada. She can be reached at mlb_communications@rogers.com.

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SEPTEMBER/OCTOBER

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Distribution– the Link to Stocked Shelves As a retailer, you have choices on how you stock

your shelves with the products your customers seek. You can purchase product directly from the manufacturer, shop around at wholesale and cash and carry outlets yourself, or you can work with a distribution partner who represents a number of brands and products. If your time is of the essence and you appreciate industry expertise and product guidance, working with a distribution partner can make your retail life easier.

The wholesale distribution industry is highly fragmented and consists of both small, privately-owned businesses and large, full-service distributors serving multiple geographic regions. Whether you’re just starting out as an independent retailer or have been in business for a number of years, it’s important to evaluate your distribution channels and establish the right fit for you and your business.

Convenience & Carwash Canada reached out to a number of distributors and asked them five questions about their business and sustainability practices, the value they bring to the table, a retailer’s role in a successful partnership, and what interesting or unique products they represent. Below are responses from Eric Rolheiser, president Canada, at Core-Mark International, Pat Carey, president at Wallace & Carey Inc.; and Stéphane Bouchard, vice president, Distribution at Regitan Ltd. 1. What type of distribution service do you offer C&G retailers and what ethical and sustainability practices do you incorporate?

Core-Mark [CM]: Core-Mark delivers high levels of service, innovative marketing programs, technology solutions and logistical support. We operate with a continuous improvement philosophy, with efficient buildings, reusable shipping containers where possible, and robust recycling programs. We upgraded our refrigerated capacity with chill docks and tritemperature trailers, which gives us the capability to deliver frozen, chilled and non-refrigerated goods in a single delivery.

Wallace & Carey [WC]: Wallace & Carey offers standard industry drop and go services, hybrid distribution, which includes instore order taking, and

direct to store delivery (DSD) services, with full merchandising, rotation and planogram support.

We support recycling programs for packaging and shipping material, as well as abide by all provincial environmental programs. Our network of refrigerated distribution centres, tri-temperature fleet, and dedicated teammates position as a leading last-mile distributor to deliver cost savings, exceptional service and value to our customers.

Regitan [R]: As a fourth-generation family business based out of Quebec, Regitan is a wholesale distributor, from drop ship to e-commerce. We also offer third party logistics support and deliver to locations where DSD can’t reach. We believe in sustainable practices with a focus on efficiency. We offer paperless invoices by email and online data management.

We are well organized with proper delivery fill rates and correct billing practices.

2. As someone in the middle, how do you best meet the needs of the manufacturers that you represent and the clients you work with?

[CM]: We offer increased purchasing power, the ability to service large national chain accounts, economies of scale in sales and operations, and the resources to invest in information technology and other strategic solutions, such as Focused Marketing Initiative (FMI) and SmartStock, a full-service marketing program that offers qualified Core-Mark customers the key benefits of top category management, quality racks and weekly instore merchandising services – focusing on top selling products. SmartStock specialists manage ordering, rotating, labeling and writing credits; thereby assisting the retailer in labour and merchandising, while driving store sales and profits.

[WC]: We are uniquely positioned to manage distribution and supply chain services throughout Canada in both B2B and e-commerce environments with EDI and FTP order capture and telemarketing support. We also meet regularly with suppliers and customers to assess their needs and drive true three-way communications, resulting in trust from all parties that Wallace and Carey understands their

Whether you’re just starting out as an independent retailer or have been in business for a number of years, it’s important to evaluate your distribution channels and establish the right fit for you and your business.

20

SEPTEMBER/OCTOBER

business and is best positioned to support them with solutions, such as route to market, product availability and innovation services.

[R]: We are customer service centric and believe in regular communication.

We call our customers to let them know of the deals our suppliers are proposing; we issue daily emails announcing various promotions; and mail monthly flyers that advise retailers of trending products, suggested retail prices and offer samples of new products. We don’t have restrictive clauses in working with us nor do we require any of our retail clients to sign a contract to deal with us. Our drivers are experienced, courteous and represent Regitan in a professional manner. We represent over 8,000 skus and have the best interests of our customers and manufacturers in moving product and driving profitability.

3. What interesting or unique products do you supply to the C&G channel?

[CM]: Two interesting items that we offer c-stores are bananas and novelty ice creams. They’re extremely fragile, the most difficult food item to handle and require a specific shipping temperature that we manage through thermal totes.

Also, with recent legislative changes in the vaping space, we are working on some exciting non-combustible nicotine products to support our customers as tobacco consumption habits shift to alternative products.

[WC]: We have a diverse selection of unique products across fresh food, confection and grocery categories. Wallace & Carey supplies the C&G retailer with numerous opportunities to create hot food programs, instore promotional programs and other offerings that drive retail sales.

[R]: We are proud to represent a number of products, including Canada’s own PRANA organic nuts and Bad Monkey popcorn; Kosher foods; and European products. Two brands in particular that draw a lot of attention are OSEM, one of the largest Kosher companies featuring healthier alternative foods, such as organic wines and gluten-free breads. We also sell large volumes of Kombucha drinks.

There is no product that a customer can’t

get through us – frozen, refrigerated or dry foods.

4. Are there instances where it might make better sense for the retailer to shop directly or purchase from the manufacturer directly rather than go through a distributor?

[CM]: Core-Mark’s Vendor Consolidation Initiative (VCI) targets inefficiencies in the convenience store supply chain by offering the retailer the ability to receive multiple weekly deliveries for merchandise they previously purchased from multiple direct-store delivery companies. This simplifies the customer supply chain and provides retailers with an opportunity to improve inventory turns and working capital, reduce operational and transaction costs, and greatly diminish retailer’s out-of-stocks.

Combining VCI with weekly merchandising (SmartStock) provides retailers a better value option than the multiple vendor alternative.

[WC]: It may, at times, appear that discount shopping or direct buy is advantageous. When experienced, it becomes clear very quickly that discounters do not have the product selection or the product freshness a wholesale distributor can offer. Buying direct from the manufacturer requires the retailer to take larger volumes of inventory that they can hold in their store or turn to maintain freshness.

Utilizing a wholesaler, such as Wallace & Carey, allows the retailer to place an order with our Online Ordering Processing System in a fraction of the time it would take to write an order, drive to the club, load the product, then drive back an unload at the store. It also allows you to order in various quantities. Lastly, cost is also a key consideration. As a wholesale distributor, we are also able to purchase product at discounted rates from manufacturers due to the volume we buy. We have a wider range of product mix, better costs, and are the most efficient option for retailers.

[R]: We recognize and appreciate that your time is valuable. By establishing a relationship with a wholesale distributor, like Regitan, and building a credit history, we can help you save time, effort and

energy by allowing us to focus on your product requirements. Rather than be away from your store and shop piecemeal, we can offer you great deals, advise you on industry trends and other relevant information, such as taxes on tobacco and rising costs of chocolate, for example.

5. What work is required of a retailer in working with a distribution partner?

[CM]: We need customers to partner with us in developing a comprehensive retail marketing strategy to better serve their store. The first step is to complete a Focused Marketing Initiative survey (FMI) that allows us to gather valuable category insights, optimized retail pricing strategy, demographic decisionmaking, and retail space utilization. We then develop a comprehensive retail marketing plan at store level utilizing our SmartStock program, which includes custom planograms for top moving products and weekly in store merchandising.

[WC]: We listen to our customers, then design and adapt our services to meet their changing business needs.

Depending on the type of distribution model chosen (drop and go, hybrid, and DSD), the retailer may need to place its own orders, receive and place product after delivery or utilize one of our value-add services such as hybrid or DSD that provides instore order taking, merchandising and planogram support.

[R]: Retailers are not required to sign a contract or commit to annual buying purchases. They buy what they need as they need it. We ask our customers to make room for our drivers, take the time to review their order, and be proactive with our customer service agents.

Communication is paramount. We do everything possible to make it easy to work with us and have you thrive in your business.

Meline Beach is a Toronto-based communications practitioner and frequent contributor to Convenience & Carwash Canada. In addition to freelance writing, Meline provides communications and public relations support to businesses across Canada. She can be reached at mlb_communications@rogers.com.

CONVENIENCE & CARWASH CANADA

By Angela Altass

21

CANADIANS LOOK TO CONVENIENCE FOR

GUM/MINT PURCHASES Gum and mints are popular purchases

at convenience stores across the country.

“Convenience is an important channel for gum and mint purchases,” says Tony Moussa, channel development head, Mars Wrigley Confectionery. “Roughly 15 per cent of Canadian gum and mint sales occur at the convenience channel.”

Gum and mints are a good fit for convenience with convenience channels among the fastest growing in Canada for gum and mint purchases.

“Gum and mints satisfy a need for convenience shoppers, whether it’s breath freshening or a fun pick-me-up,” says Moussa. “They are highly impulsive products and consumers are not afraid to try something new when they see a robust assortment. These products have high velocities and occupy a small footprint in stores, which make them easy to merchandise.”

Mars Wrigley Confectionery continues to innovate through product form, flavour and packaging, while also keeping focus on core items that deliver on the foundation of the category, says Moussa.

“Mars Wrigley Confectionery recently introduced relevant innovation from its leading gum and mint brands,” notes Moussa. “Under Excel, Mars Wrigley Confectionery has introduced Excel Soft Chew, a soft, larger gum pellet that’s flavourful and easy to chew. Excel Soft Chew gum is available in peppermint and spearmint flavours in both bottles and a new hard plastic singles format that won’t get damaged in

pockets or purses.”

Juicy Fruit Mixies is a new gum product that Moussa says brings fun to the category.

“This new product is a large, soft pellet, available in an assortment of fruit flavours in one pack, delivering a fun experience for the consumer,” notes Moussa.

It is important that convenience stores carry a strong assortment of top selling, core gum and mint items, while also creating space for innovation, notes Moussa.

“The convenience and gas channel typically carries a large assortment of gum and mint products,” states Moussa.

“Consumers in this channel are loyal to their products but are also open to trying new, innovative products.”

Brand recognition is critical for confectionery, which is a high impulse category, adds Moussa.

“When promoting gum and mints, having an easily recognizable brand makes the consumer decision at shelf that much easier and quicker,” says Moussa. “Offering a cross-section of core items and new items under a recognizable brand will satisfy consumers.”

Mars Wrigley Confectionery recommends that retailers in the convenience and gas channel display gum and mints in areas of the store where there are category adjacencies.

“Two areas we have found displays to be successful are the pop cooler section and the ready-to-serve coffee station,” says Moussa. “We have also seen a significant increase in sales in locations

where gum and mints are placed on the counter beside the cash. This provides an optimal position at point of purchase.”

Gum in Canada

A Gum in Canada report from market research provider, Euromonitor International, states that prospects are not bright for gum in the Canadian market. Gum, comprising of bubble gum and chewing gum, saw ongoing decline in 2017, with sales falling by one per cent in current value terms and three per cent in volume terms, according to the report. Further information is available at www.euromonitor.com or http://blog. euromonitor.com.

“Gum struggles to deal with the challenges represented by a range of factors, including competition for the attention and purchasing power of, particularly younger, consumers, both from within packaged food and beverages and further afield, in areas such as digital apps and mobile games,” says the Euromonitor report.

Mars Wrigley Confectionery recently introduced a new form of mints that are crossing over into what consumers have traditionally sought from a gum product.

“Consumers are increasingly looking to mints to deliver on the same breath freshening as gum and we will continue to expand our offering in this space,” says Moussa. “Excel Chewy Mints toe the line between a candy and a mint,” says Moussa. “Excel Chewy Mints give consumers an instantaneous hit of cooling in a fun candy-like format. Chewy

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SEPTEMBER/OCTOBER

mints are a growing sub-segment within Consumers want choice and variety “Consumers are always looking for mints and this new offer from Excel will has become a mandate, says Kalshelia something new and exciting flavour and surely be a hit with Canadians.”

Lloyd, North America gum equity lead, texture experiences, similar to what they Consumers in the convenience and Mondelez International. are seeing in other categories, like candy,” gas channel are looking for choice and “In recent years, gum has continued to notes Lloyd. “We love that we are able to variety in regard to the gum and mints evolve and we see consumers not only bring that excitement with Trident Vibes category, comments turning to the cat- gum, which has a light crystal coating Moussa. egory for functional that turns into a smooth gum with extra Gum and mints are “Over 80 per cent benefits like breath pops of delicious flavour combinations. of gum and mint freshening, like they Being a trusted brand where consumprimarily impulse sales in the channel have in the past, but ers know to always expect a great taste are mint flavoured,” purchases, so it’s key now also for treat- and the highest quality is important to notes Moussa. “We to display and have ing themselves,” says Mondelez and our brands.” see a growing interest “With a wide “In addition, we know there are occamarketing to ensure Lloyd. in fun and enjoyment range of delicious fla- sions where gum and mints are highly gum, as evidenced by visibility at checkout, vours, gum and mints relevant, like after coffee for example, so Hubba Bubba’s perare now able to satisfy making those associations for consumsays Lloyd. formance as one of that sweet tooth in a ers should help to increase the likelihood the fastest growing way that offers a well- of purchase and basket sizes,” says Lloyd. brands in Canada. We know consum- being benefit, like sugar-free.”

“For categories that are so driven on imers in the gum and mints category are Mondelez International recently in- pulse, you always want to have something willing to try new products while staying troduced Trident Vibes, an exciting new for everyone so they can always find what loyal to their favourite brands, making gum that takes consumers on a journey they want.” it important to strike a balance between of taste and texture that brings a burst B:8.375” core offerings and innovation.” of something new, says Lloyd.

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25

LIGHTEN UP

TECHNOLOGY WILL SHOW YOU THE WAY!

Retail petroleum/c-store/carwash sites are right on the edge of becoming the new wave of new product and technology access to a large cross section of active consumers. I know this to be true as I saw this fall’s line up of new TV shows and numerous re-makes from the old days.

I don’t have a lot of time for TV but one that caught my eye coming back this fall is the Jetson’s. Many of you may not even remember this space age cartoon, or have ever heard of it, but it was full of pie in the sky unique ideas, concepts and created products and technology that we would never see in our lifetime – problem is all this is now real and passing us even faster.

You can relate this to your own retail petro/c-store carwash site or business and really give yourself a complete reality check as to why you are outdated.

So let’s take a quick overview for the lighting, image and signage on any given site and why all these technologies should all be state-of-the-art products already on your site.

Many years ago, when LED first hit the market

26 

SEPTEMBER/OCTOBER

Exciting colour changing capabilities have now since been added allowing carwash operators to initiate wow factor colour changing venues within the carwash itself as the vehicle either sits or travels through the tunnel.

This type of out of the box thinking has resulted in c-store/carwash clients realizing a plus 30 per cent increase in carwash sales.

everyone rushed to get their canopies relit with pure almost white light greatly impacting the look of their site while realizing large reductions in hydro.

It was here interior/exterior image programs started as once you begin to light your space better, than the space being lit better looks great!

New illuminated LED Edge lit and backlit signage with changeable graphics begin to bring new excitement to the entire look of your c-store location, allowing you quick graphic changes and flexibility of advertised products.

Of course, by now, all lighting/signage options had to be entertained as sites

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began to grow in size with modern lines and now the site lighting, wall packs and floods, carwash lighting and the interior c-store all needed drastic overhauls being so far behind colourful temperature and design criteria rapidly being used in the marketplace.

Once again LED lighting technology

CONVENIENCE & CARWASH CANADA

® TM

27

took over with thinner profiles for pole mount lighting and wall mounts on c-stores and carwashes and all new weatherproof interior fixtures appeared, which could quickly illuminate a carwash tunnel to a new daytime lighting effect at night. Exciting colour changing capabilities have now since been added allowing carwash operators to initiate wow factor colour changing venues within the carwash itself as the vehicle either sits or travels through the tunnel.

This type of out of the box thinking has resulted in c-store/carwash clients not only realizing a plus 30 per cent increase in carwash sales but as well sales increases at the pumps and inside the store and now a very busy site!

Now then you may think you should be done and nothing else to pursue or take on for your dream site, brightly lit with great signage and graphics, special effects and more profit. But, are you technically media friendly? Do you have the latest technology in BLUE TOOTH, do you Tweet and Facebook? So, you have media devises in your location keeping up your clients with all the latest news and in store buying specials, do you have client reward programs, local community participation, and the list goes forever?

Fortunately, the good news to all these questions is yes there are solutions and technologies already available to keep you going forward in this exciting technological time. It will all be here sooner than you think and next time you doubt a new technology – again many years ago there was a cartoon called Dick Tracy, a pretty cool detective with a lot of fancy technology for the 50’s.

The one thing he had I knew we would never see was this detective wrist watch that you could talk into, see other people and send signals and messages – coolest thing ever – sorry got a call on my Apple watch. See Ya!

Dave Bowen has been the national sales manager for Webco Lighting for 19 years, responsible for LSI LED lighting in petroleum, commercial, industrial and architectural products across Canada.

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SEPTEMBER/OCTOBER

CONVENIENCE & CARWASH CANADA

By Kimberly Otocki

29

Five Ways to Leverage Loyalty for Increased Store Traffic One of the greatest challenges of convenience store marketing is to

A strong marketing effort will bring an average of

35

per cent

of those customers into the store when they gas up.

drive guests into the store when they stop at the pump to fuel up, drawing additional revenue from a customer’s visit. Increased revenue and profit margins, for the most part, are driven by visits to the store, not at the pump. A strong marketing effort will bring an average of 35 per cent of those customers into the store when they gas up.

There are many ways to increase store traffic, from implementing a loyalty program to simple promotions for discounted fuel and in-store products. Loyalty is also the key to repeat visits – as guests establish a connection to your brand. Once a guest is registered as a loyalty program member, marketing can begin to gather data to better understand, engage and create a personalized, ongoing relationship.

What are some of the ways you can increase your store visits in the short and long-term? Here are five ways that you can attract new visitors and generate more loyalty from your customers.

1. Target millennials. Millennials in 2018 will have a global net income of 3.4 trillion dollars, making them the generation with the highest purchasing power. What can you do to get this generation into your stores? Millennials look for three main things from your brand; simplicity, a personal touch, and convenience. Connect with millennials on a one-to-one basis to ensure your promotions are relevant to the individual. To attain the customer level data needed for relevant, oneto-one offers, start by offering a loyalty program with a clear value proposition that is easy to for your cashiers to convey.

2. Run promotions at the pump. Simple promotions that are tied to products in the store such as “buy x amount of product, get x cents off per gallon” are effective at motivating fuel-only customers to step inside the box. In fact, according to a report from Coca-Cola published in CSP Daily News, 73 per cent of customers say that the best promotions are the ones that have discounted fuel with in-store purchases.

3. Go mobile. The same study by Coca-Cola found that millennials check their phone 157 times per day. There is a large opportunity to reach millennial customers on the device that they are on all the time.

Optimizing for mobile messages, such as email, in-app messages, or using geofencing is key to reaching these customers. Brands implement geofenced messages see 30 to 40 per cent of the customers who receive that message come into the store to take advantage of the offer within 24 hours, according to Paytronix data. Mobile messages provide an almost immediate lift to your store visits and sales.

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SEPTEMBER/OCTOBER

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4. Promote food service. Food service is becoming a big part of convenience stores today with prepared and made to order food being a major draw in for customers. Offering limited-time promotions tied to food items can boost visits, especially among millennials. The Coca-Cola study noted that about half of all millennials say that they are on the lookout for limited time offers.

5. Segment and target. To create a bond between the brand and its customers and maximize the impact marketers have on revenue creation, market segmentation is essential.

Within any customer base, there are segments of people with shared interests and motivational factors. When marketers develop insights into their customer base that reveal common motivators, the result is a powerful, profitable marketing strategy. By identifying

your market segments, marketing messages, offers, and message cadence can be tailored to each segment based on their common needs and behavioral patterns. The result is greater audience reach, more revenue, and higher profitability.

These five tactics to increase traffic will have a significant impact upon your short and long term store visits. Test them out and see which work best in your own competitive market.

Kimberly Otocki is a convenience store marketing specialist at Paytronix. With a passion for telling stories, she helps bolster the Paytronix brand through content creation and data analysis. For more information about Paytronix, visit www. paytronix.com.

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CONVENIENCE & CARWASH CANADA

By Kevin Wang

31

How to Choose a POS for the Future Point-of-Sale (POS) systems are at the heart of every retail business, from a single artisan at a craft fair to massive chains like Starbucks. Coincidentally, it is also one of the most neglected parts of a business, retailers will often use the same POS until it dies - if it isn't broken, why fix it? Replacing a POS system is both expensive and risky - who knows if the new system really works. Secondly, benefits of a new POS systems can sometimes seem minimal, and retailers can’t justify the expense for advanced or niche features. It is often hard to justify the benefits of a new system due to the cost, uncertainty, and risk involved.

Why Upgrade Your System

So, given the risks and expense, why should you consider replacing your POS system? POS companies will tell you it will increase your throughput, simplify management and accounting, handle ordering and inventory, and a dozen other benefits. These are all true, but the largest reason is that technological upgrades keeps your business stable and running; much like a car, POS systems require ongoing maintenance to run well. This doesn't mean buying a new POS every few years, it can be as simple as replacing outdated or problematic hardware, upgrading some software, or even just keeping an eye open for new technologies.

It is like preventative maintenance on roads, filling a few potholes each year is much cheaper than repaving the road when it finally falls apart.

The Fundamentals

When looking for a new POS system, first check the fundamentals. Innovative technologies and features are useless if

you don't have a solid front-end to make a sale and a back-end to run reports.

Retailers with unreliable POS systems often find themselves replacing their systems every three to five years. So, what should you look for in a good POS product?

First and foremost is reliability; it is the most important feature for a POS. There is a good reason why retailers choose to use an outdated POS which runs slowly and takes hours of extra management. If you can't make a sale, your business is dead in the water. Ask around and see how long the vendor’s products are typically used.

Another important factor is ease of use; feature rich and complex are two different things. This is important for the back-end, but critical on the front-end. A complex system means longer training times, more mistakes, and slower throughput. Pay attention to how long it takes to train a cashier or manager to use the system.

Lastly, you should look for high quality support. No POS is perfect, and when

issues arise you want to be able to reach your POS vendor. Many companies promise 24/7/365 support, but few deliver.

Before you buy a system, make sure they answer their phones outside business hours.

Benefits of a Modern POS

There are many benefits to a modern POS. First and foremost is increased throughput; throughput is the best way to increase business. Carwashes and gas stations are especially dependent on throughput, as most of their business occurs during a few busy hours (or seasons). Lines in the store, on the forecourt, or behind equipment, can and will drive customers away. Modern POS systems have extremely optimized and streamlined checkout processes, meaning shorter lines and fewer checkout lanes needed.

Modern POS systems also offer powerful management tools and capabilities, which save time and reduce human error. Standard tools include automated

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report generators, inventory management systems, order generators, price books, and more; these tools can save hours of work every week.

A modern POS can also interface with a large variety of different devices. Tools like scanners, signature pads, and card readers help streamline the checkout process and improve the customer experience. A modern POS system can help minimize your liabilities. Features like cashier accounts, access restrictions, and detailed transaction records helps reduce fraud and theft. Semi-integrated pin pads can reduce your store’s PCI score.

New Technologies in POS

POS systems are constantly evolving and innovating, especially with the proliferation of internet connectivity and mobile devices. Here are some new technologies you should consider.

Cloud POS: A cloud POS refers a POS system where most of systems are hosted online. This allow for little to no upfront

costs and easy setup and centralized management anywhere, making POS more accessible than ever. Companies like Square, Shopify, and LightSpeed have had tremendous success with Cloud POS systems. However, these systems typically lack the complex interfaces needed for carwash or retail gas, and struggle when internet is unavailable.

Centralized Servers: For retailers who want the centralized management capabilities of cloud, but do not want the heavy reliance on constant internet connection, some companies offer centralized aggregation and management servers. This is ideal for larger chains, and allows for the reporting and management of inventory, prices, and sales across multiple stores from anywhere in the world, whether it be a head office or a beach in Hawaii.

Mobile POS: Mobile phones and tablets have begun to replace traditional POS systems in many stores. This allows retailers to go and sell anywhere; you

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can check out a customer anywhere in a store or even at their vehicle. Mobile POS’s are often tied to cloud POS systems, but offline mobile POS systems are also available.

Software as a Service (SaaS): SaaS POS systems require a monthly subscription or service fee for the POS system. In exchange, they ensure your POS is always up to date, with improved optimizations, new features, and better security. This helps defer the hassle and cost of ongoing technological upgrades, and encourages a good product, as POS vendor’s income is reliant on the system’s reliability and their service quality.

Kevin Wang is the chief operating officer at Wiz-Tec Computing Technologies Inc., based in Calgary, AB. Wiz-Tec is a software company specializing in electronic business solutions, point-of-sale, and integrated systems. He can be reached at kevincwang@wiz-tec.com. Further information is available at www.wiz-tec.com

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By Gary McDougall

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Do you consider yourself an effective negotiator? Have you already negotiated something today? Chances are, if you spoke with your children this morning or have engaged in a conversation with a colleague or coworker today, you have probably already negotiated something.

WINNING NEGOTIATION STRATEGIES Negotiation is defined as a discussion

between at least two people, during which at least one of the people has a desired outcome or agenda. Likely, if you had any interaction with your children this morning, it involved negotiation.

“Get up and get dressed because it is time for school.” The conversation you had with your co-worker this morning may also have been a negotiation. “Where do you want to go for coffee?”

Likely, you are already an effective negotiator as most people learn negotiation skills at a very young age and have been practicing them since childhood.

Some of those strategies are effective and some, not as effective.

The purpose of this article is to build on the negotiation strategies you already employ and to offer suggestions on how to be more effective during those negotiations. Whether you are negotiating over the sale price of a new car, or negotiating a multimillion dollar contract on behalf of your organization, these skills help to create value.

The Negotiator’s Dilemma

In negotiation, one of the common challenges we face is the struggle between achieving our substantive outcome while maintaining or improving the relationship we have with our counterpart. In negotiation circles, this struggle is referred to as the negotiator’s dilemma.

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If the relationship you share with the telling them you would like to schedule person with whom you are negotiating is a meeting to negotiate a deal. What asnot an issue, for example you will never sumptions do you think they are likely see the person again, then this is not to make? a significant consideration. Typically, when you purchase a home, the rela- Traditional Positional Bargaining tionship you share with the vendor will A position is defined as: The stance that both parties take respecting a not be an ongoing relationship. When particular issue or point you engage in a negoof discussion. Negotiating tiation with a person at based on positions creates a flea market, the chance sub-optimal outcomes that you will share an and this is a concept that ongoing relationship is is worth exploring in some remote and, therefore, detail. you can focus more on One of the deeply emthe substantive outcome bedded patterns we often than on the relationship. fall prey to during our neBeing a hard bargainer gotiations is the practice with someone you will known as traditional posinever see again is less tional bargaining. This necostly than being hardThe mere mention gotiation style subscribes nosed with someone you of negotiation often to the practice of entering frequently interact with. conjures up images the negotiation by opening In the context of busiof mistrust, slippery with an extreme position ness negotiations for extactics and suband operating under the ample, there is a stronger optimal outcomes. assumption that our counlikelihood that you will terpart will do the same. engage in a long-term reFor example, we enter lationship with the perthe negotiation knowing son with whom you are negotiating. In many business negotia- that we would be willing to pay $10 for a particular item. Assuming $10 is the tions, relationships last for many years price we are willing to pay, we often and in some cases, decades. Relationship build in a small cushion and our openin the context of these negotiations is ing offer is $5. We take a position that is therefore, more significant. not reflective of how much we value the The Negotiator’s Mindset item, but we know we must start low as Hand-in-hand with the negotiator’s we expect the other side to start at $20. dilemma is a concept called the We have the expectation that they will negotiator’s mindset, which refers to also build in some negotiating room and the assumptions we make when we accordingly, they artificially inflate their perceive we are engaged in the process price to allow for this carefully choreoof negotiation. When we refer to this graphed dance. process as negotiation, many of us make One side knows the other side is going a number of assumptions including the to start high, so they start low and the assumption that the other side is going games begin. One side expresses their to try to take advantage of us, they are extreme position and the other side exnot to be trusted and we had better be presses a contrary extreme position. One careful. side makes a small concession, and the The mere mention of negotiation of- other side reciprocates. One side makes ten conjures up images of mistrust, slip- an additional concession and the other pery tactics and sub-optimal outcomes. side reciprocates. This process goes Perhaps there may instead be value, in back and forth until both sides arrive referring to this process as problem solv- at a price they are satisfied with. This is ing, brainstorming, or just discussion. referred to as positional bargaining or in Imagine calling a business associate and some circles as distributive bargaining.

Sound familiar?

There are many shortcomings associated with engagement of this kind of positional bargaining process, yet we seem inclined to continue with this kind of strategy. Clearly, it sets up an oppositional relationship between the negotiating parties. Engagement of positional bargaining also incents people to artificially inflate their positions in order to accommodate the negotiation.

Basically, this process is based on lies, as neither party actually believes their opening position is fair. The additional downfall of this process is that it takes far more time to reach an outcome. Try this the next time you go to purchase groceries at your local supermarket; you will be there a lot longer than normal.

It is interesting to note that these kinds of negotiations do not just take place at flea markets; rather they take place during many negotiations here in our culture. If you have ever purchased a house or a car, there is a strong likelihood that you engaged in this process.

Interest Based Negotiation

If traditional positional bargaining is a sub-optimal way in which we negotiate outcomes, could there be a better way of getting to a solution that meets both parties needs? Absolutely. Instead of focusing on positions of both parties, there may instead be value in looking at the interests of both sides.

An interest is defined as: The reason or motivation a person has or holds that supports their position or drives their behaviors. In essence, interests are defined as: What is truly important to both sides and include: concerns, hopes, expectations, assumptions, perceptions, beliefs, fears, values and needs.

Consider the example of a prospective tenant looking to move into an apartment and engaged in a negotiation with the potential landlord. The tenant insists on moving into a groundlevel apartment and the landlord advises there are no ground-level apartments available. The tenant suggests the landlord evict one of the existing tenants from the ground floor to create a vacancy. The landlord flatly refuses, advising it would compromise their integrity

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to evict a tenant. The tenant escalates and departs. This is an example of a positional negotiation, with both sides focusing on the what.

Shift now to an interest based negotiation between the same two participants. The tenant insists on moving to a ground-level apartment and the landlord advises there are none available. The landlord then asks why that is an important consideration, thereby shifting from a positional negotiation toward an interest-based discussion.

The prospective tenant advises that they are deathly afraid of fire and don’t want to live any higher than the ground floor for ease of escape in the event of a fire. The fact remains there are no ground level apartments available, however, knowing the underlying interest of the tenant and the motivation for insisting on a ground-level apartment, allows the landlord to come up with other options that meet both parties interests. One such option might be to rent an apartment on another floor to the tenant, with close proximity to the fire escape.

The point to be made is this: When we remain positional, our potential outcomes become limited. When we focus on the what we miss the why. Interests (the why) are powerful motivators behind our behaviors and seeking to understand the interest behind the position, is an outstanding way to create value.

Options

To be an effective negotiator, it is important that one understands the difference between options and alternatives. An option is something that both parties can do together; if the negotiation is successful, what options are available to both parties. What are the things both parties can agree upon that meet their collective interests? If this negotiation is successful, what are the potential solutions or outcomes that are available? A simple way to remember this difference is this: Options are the things that are on the table.

One efficient way of generating and identifying the various options is to

engage in a brainstorming session with the other party and identify as many options as possible. Once the long list is complete, it is prudent to evaluate the list of options against the interests of both parties and determine which option meets those identified interests.

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slightly less money. Given the new information and the opportunity to purchase the car for a more attractive price, your bargaining position became stronger.

While it is a good idea to present your BATNA during the negotiation, it may be wise to avoid presenting it as a threat. “I just want you to know that I Alternatives have discovered a similar car at another In simple terms, alternatives are those location and the price is slightly lower outcomes that are available to both than you are asking. It is my preference parties, in the event the negotiation to do business with you, so to that end fails. If a suitable solution is not reached is there anything we might do to reach and the parties decide to abandon the an agreement?” negotiation, the It is also imporalternatives are tant to understand those outcomes that the differences the parties will walk between a bottom away to. Alternatives line and a BATNA. are characterized A person’s bottom as away from the line represents the table. (Options are maximum amount on the table whereas they would be willalternatives are away ing to pay, or the from the table.) minimum amount When evaluating they would be willalternatives, it is iming to accept. When portant to recognize we are discussing a and understand the bottom line, we are value of each alterstill in negotiation To be an effective negotiator, native and to have a and at the table it is important that one good sense of which and, therefore, still understands the difference alternative is your exploring options. between options and best alternative. This The BATNA, alternatives. process of evaluahowever, represents tion is referred to the walk-away opas identifying your tion that both parBATNA (best alternative to a negotiated ties will defer to if the negotiation is not agreement). successful.

Identification of your BATNA beWhile many books advocate our abilcomes important as, in many cases, your ity to negotiate anything and get to yes, BATNA represents your negotiation le- there are times at which a negotiator verage. If this negotiation is not success- must evaluate their BATNA and if that ful, you will defer to your best alternative. represents a better option, walk away.

If a BATNA represents a better alternative than what you might hope to achieve Benchmarks during the negotiation, it may be a good The final consideration in the idea to exercise the BATNA and walk negotiation process is the concept of the benchmark. In short, the benchmark away from the negotiation.

For some, understanding the concept is an independent assessment of a fair of the BATNA is difficult and perhaps outcome or solution. Benchmarking is an example may be helpful. You are in another way in which one party in the negotiation with a car dealership in pur- negotiation can validate the position suit of purchasing a new car and during they are holding. A person negotiating your negotiations you discover a similar the sale of their car holds a strong car for sale at a different dealership for position if they bring to the table other

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examples of similar cars for sale and at the same price point.

In order for the benchmark to be credible, it must come from an independent and disinterested source. The benchmark of “my friend told me this is what my car is worth” does not qualify as a strong and credible benchmark.

Conclusion

As noted in the opening paragraphs, we spend much of our personal and professional time engaged in negotiation. Sometimes we don’t realize we are in this process, yet so many of our interactions are really negotiations. If we can effectively find the balance that exists between getting our substantive needs met during this process, while maintaining or improving the working relationship, we have truly created value.

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Gary McDougall is a retired police officer who served with the Calgary Police Service for 25 years; the last eight years of his career, Gary was a member of the Hostage/Crisis Negotiation Team. He served as both a team leader and training coordinator for the Calgary Hostage Negotiation team and upon retiring in 2006, Gary formed a company called Conflict Solutions. He is currently on the speaking circuit, delivering training in a number of disciplines which include effective negotiation skills, conflict management, dealing with difficult clients, ethics in the workplace and workplace violence issues.

Gary is also a member of the Canadian Speakers Bureau as well as a lead instructor for the National Tactical Officer’s Association and in that capacity, he travels around North America teaching crisis intervention and hostage negotiation skills to law enforcement agencies.

Gary is a graduate of the FBI Hostage Negotiators Training School and has also served as an instructor at the FBI Training Academy in Virginia, assisting in the training of new FBI Hostage Negotiators.

Further information is available by visiting www.conflict-solutions.ca.

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continued from page 11

and resides in Des Moines, IA. She has a bachelor’s degree in marketing and management. Her professional background includes three years in the retail industry and two years in the carwash industry.

“I was seeking a position in a company with rapid growth and this is an exciting time to be in the car washing industry. It is constantly evolving and growing,” she says. Her position gives her the opportunity to travel to car wash events and tradeshows and gain knowledge from experts in the field. In her first year, she had the opportunity to plan and organize the ICA show presence for National Carwash Solutions. “It was a great time for me. Managing a trade show exhibit is hard work, but it feels great to watch it all coming together,” shares Laura.

One piece of advice she would like to give other women in the industry is to never let a male-dominated field intimidate you. The important thing is to find something you are passionate about and pursue it, even if it's not a “glamourous” industry. “As I look back, I would honestly not change anything about my experiences in the industry. I think a retail background was a great experience for me straight out of college. I grew and learned a lot. Now that I am in the car wash industry, I can take my background and experience and let it help me grow in the marketing position that I am currently in,” she says.

Car washing is a very complicated beast, from types of systems to business models. Laura also advises women to “never turn down a learning opportunity, always search for answers and don’t be afraid to ask questions”. As she continues her career, she would like to learn and grow in her current position, for new and innovative ways to help NCS and herself.

Megan Reuteman

university at Grant MacEwan with a bachelors in management. She and her sister, Hayven Granger, partnered up to run the family business which consists of a full-serve fuel bar, vehicle and cylinder propane, convenience store, automatic touchless carwash, and three hand-wash bays for their parents.

While this was never her first choice for a career growing up, she is glad she chose to stick with it. The business has provided her and her family with everything they need to live and more.

While the family has received a few awards and recognition over the years through Petro-Canada and the local community, their best moments occur every day when a customer compliments them or tells them why they love their store and carwash. “That is the best feeling and validates that we are doing something right,” she says.

“My main advice for other women in the carwash industry is to make sure everything is in working order. Even if you have the oldest carwash in town or your carwash isn’t technologically advanced, customers will continue to use your carwash if they know that it is reliable,” Megan shares. Whether it is your family, spouse, or a trusted supplier, it is essential to have someone that you can call for a helping hand.

If she had to start or open another carwash, Megan says she would make sure that it is up-to-date with modern technology as their car wash doesn’t have much of that in place. A water recycling unit would complement their environmentally friendly products and reduce water waste.

In the next five years, Megan hopes to start a family of her own and perhaps have a future generation to take over. She and her sister will also continue to focus on ways to improve the business and continue to appeal to their customers' needs and wants.

MOOSE COUNTRY PETRO-CANADA

Sue Chapppell

Megan Reuteman has been working at the Moose Country Petro-Canada in Whitecourt, Alberta since she was 12 years old. In 2012, after finishing

Sue Chapppell is the marketing manager for MacNeil Wash Systems, a leading full-service fluids and systems provider

MACNEIL WASH SYSTEMS

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to the vehicle care industry and division of National Car Wash. She has held several management positions over the course of her career in a variety of sectors from agriculture to national retail, and prior to MacNeil had spent 10 years in the marine industry.

Getting into the car wash industry was a lucky accident. Sue accepted the position at MacNeil in 2011, looking forward to working for a Canadian manufacturer.

She soon discovered how extensive and exciting the carwash industry was.

Having worked in primarily maledominated workplaces, this was the first opportunity Sue had to promote, educate and mentor fellow women actively.

She was very proud to have been a panel member at the 2018 Southwest Car Wash Association’s Women in Carwashing Seminar.

“Women bring many unique, valuable skills and character traits to the workplace. In the past, the industry was very hands-on, labour and maintenance intensive, which was discouraging for many women. Today's computerized, high-tech equipment is well-engineered, so they need not feel intimidated by the mechanics. There’s a lot of opportunity and room for advancement as managers and owner/operators, and it can be a wonderful career for women,” says Sue. Sue speculates that if she knew years ago how lucrative and satisfying owning a car wash would be she would have invested in the express tunnel car wash model, and either owned a chain of washes or a marketing firm that specialized in the car wash industry by now!

Her biggest challenge has been learning all the technical aspects of the business - types of car washes, equipment specifications, chemicals, water reclaim systems, etc. “It’s much more sophisticated, computerized, and better engineered than I ever expected,” she says.

Sue sees lots of opportunity for growth, especially in the Canadian market, and plans to stay on at MacNeil to continue connecting with the wonderful people that make up this business. When it comes down to it, this is a people business and, Sue says she has met some of the best people she has ever had the privilege to be in business with, in the carwash industry.

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Maximizing the Car Wash Ticket with Professional Detailing New systems are organizing equipment, personnel, and materials to dramatically enhance sales, productivity, and quality while minimizing waste

For carwashes looking to significantly boost their average ticket, detailing can be one of the

techniques. By adding professional detailing systems in a compact footprint, they are managing most profitable add-on services today. Yet, with the equipment, personnel, and materials to optimize minimum wage rising and about 25 per cent of the productivity, workflow, and quality while also minifull serve budget and up to 10 per cent of the flex mizing waste. With this approach, they can cut 25 serve budget dedicated to labour, operators need per cent or more of the time and labor needed, and to reduce the cost of their labour and materials as save several dollars per vehicle in chemical and material costs for approximately a one-year ROI. much as possible in the available space.

“With our new detailing system, we are able to The problem is that for too long traditional carwash detailing has been surprisingly inefficient, charge about 30 to 40 per cent more per car while utilizing non-standardized, even messy approaches getting more referrals and repeat business,” says that not only waste labour, time and materials, but Chris Skoglund, owner of Skogie’s Auto Spa in Kelowna, BC, Canada. “Our revenue from two detailalso scare off customers.

Now, however, top carwash owners are taking ing bays is 25 per cent higher than we anticipated, a page from the auto industry’s lean production up to $250,000 [Canadian] a year.”

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Traditional Detailing Inefficiencies

“With the Detail Plus workstations, all the equipment and supplies are right there within easy reach,” says Skoglund. “We often have two technicians detail a car together so customers don’t have to wait. We detail faster with more consistency and professionalism.

Now detailing is one of the most profitable areas of our business.”

The challenge is that the quality of traditional detailing is often poor due to a lack of a standardized process, materials and management.

Most detailing operations store equipment, supplies and chemicals in a disorganized manner and inadequately control the process.

Yet, when the operation is a mess, customers are hesitant to trust their vehicles to detailers who cannot keep their own operation clean and presentable.

Spray bottles, chemicals, buffers, pads, and materials may be in different locations, requiring detailers to leave the service bay to retrieve the items before work can proceed. The detailing steps may be followed, but often not in a systematic order.

Furthermore, the process is usually inconsistent, with chemical concentrations varying depending on how much of each chemical is put into the bottle and who is diluting it. Too much time is wasted filling bottles, mixing chemicals, looking for this, and waiting for that. Chemical and supply costs also increase due to spills and theft in such operations.

According to Skoglund, when Skogie’s Auto Spa had previously been a full serve wash, its add-on detailing service needed greater throughput, consistency, and quality control.

“We had one guy doing the detailing in the parking lot, so he had to run around to get supplies as well as mix and fill spray bottles,” says Skoglund.

“We spelled out chemical mixing directions for our staff, but over time these weren’t followed so we’d get uneven mixtures. The detailing was inconsistent and not really professional because we didn’t have a system in place.”

Greater Control Improves Productivity and Quality

Following the lead of the auto industry’s implementation of lean production, popularized

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by the Toyota Production System, top auto dealers are now learning how to cut the waste from their detailing operations while optimizing workflow, quality, turnaround, and customer value. This is turning underperforming detail operations into significant revenue sources.

What this approach requires is organizing and controlling the detailing process via centralized stations that anticipate every need and put it all at the fingertips of the person doing the work. This includes the organization of materials at fully supplied workstations with controlled chemical delivery and dilution, along with racks and carts.

One example of this approach involves the use of ChemSpense workstations by Detail Plus Car Appearance Systems, a Portland, Oregon based manufacturer of car detailing equipment. The system puts all the tools and supplies needed by detailers within easy reach so they never have to leave the vehicle or service bay. The workstations are placed on both sides of the vehicle to allow multiple technicians to work independently at once. This increases productivity so more vehicles are detailed per day.

When Skogie’s Auto Spa expanded to include an automatic tunnel wash, self serve bay barn, and flex serve area, Skoglund also set up a two service bay detailing shop, which includes several ChemSpense workstations along with a variety of other equipment.

The workstations dispense up to 12 necessary cleaners, shampoos, and treatments through color coded, chemical lines, eliminating the waste, distraction, and mess of squeeze and spray bottles. The system also dispenses more viscous chemicals, such as waxes, polishes, and compounds, which further expedites paint finishing.

“With the Detail Plus workstations, all the equipment and supplies are right there within easy reach,” says Skoglund. “We often have two technicians detail a car together so customers don’t have to wait.

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CONVENIENCE & CARWASH CANADA

We detail faster with more consistency Chemical Dilution and Dispensing and professionalism. Now detailing is System. This automatically dilutes all one of the most profitable areas of our water-based chemicals to exact proporbusiness.” tions, which improves safety and quality Because each workstation includes a while eliminating chemical waste and powerful wet/dry vacuum, this eliminates improper mixing. All chemicals, includthe need for clumsy portable shop vacu- ing ready-to-use products, are delivered ums, which are prone to bump into and to the workstations installed in the demar vehicles when dragged around the tailing center. shop.

“The chemical distribution center For cleaning and shampooing carpets helps ensure detailing quality and conand fabric upholstery, each workstation sistency by eliminating improper chemialso has an internal heated soil extrac- cal mixing,” says Skoglund. “It makes it tion system. Two coiled air lines are avail- easier to train employees as well. We able for operating pneumatic tools such know that even new detailers are using as buffers, shampooers, and orbital wax- chemicals at the correct concentrations ers as well. and not making mistakes.”

One key to making the system function more productively than shops us- Greater Sales and Profitability ing spray bottles is an accompanying The bottom line for carwashes looking

to add detailing as an efficient, high profit margin service (particularly full and flex serve washes) is enabling everyone to work smarter, not harder.

According to Skoglund, his advanced detailing equipment has also given him a sales edge. Instead of one guy in a parking lot waiting for business, he typically leaves the doors of his detailing bays open in a busy foot traffic area, which gives customers the confidence to add his detailing service.

“We are doing a significantly better job detailing now, so we charge a premium price,” concludes Skoglund. “When customers see our professional operation, it spurs them to add the service. As a result, we are keeping four detailers busy largely through [impulse buys], referrals, and repeat business.”

For more info, call 503-251-2955, email detailplus@detailplus.com, visit www.detailplus.com, or write to DETAIL PLUS Car Appearance System at 527 S. Dooley St, Grapevine TX 76051, U.S.A.

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By Todd Klitzke

CREATING A CHECKLIST-BASED PREVENTATIVEMAINTENANCE SCHEDULE CAN HELP CARWASH OPERATORS REAP THE BOTTOM-LINE BENEFITS OF A FULLY FUNCTIONAL SYSTEM

Checks and Balances Operating a carwash requires overseeing a plethora of moving parts, both literally and figuratively. Employee schedules, many unique pieces of equipment, a constant stream of customers and daily business duties can fill any carwash owner’s schedule and create the potential for headaches.

Compound those concerns with the risk that costly breakdowns and time-consuming repairs will occur, and it is understood why mechanical issues can be a wash owner’s worst nightmare. One way of ensuring that the potential for equipment failure and downtime is minimized is through the use of a preventive-maintenance schedule.

Before proceeding, it is important to know the distinction between preventative maintenance and reactive repairs. Too often, putting off carwash maintenance is looked at as an easy way to decrease costs. This can be a

foolhardy idea - while maintenance is an additional cost to the business, reactive repairs that are caused by damaged equipment can end up costing much more than overall preventative maintenance, as well as resulting in profits that are lost during the time the carwash is inoperable.

Although most manufacturers recommend regular maintenance intervals for their equipment, the majority of breakdown-related issues continue to arise from a lack of proper care and consideration for the wash’s preventative maintenance needs by the operator. The root of this failure can often be attributed to an inability to perform uniform procedures and complete documented tasks on a consistent basis.

Maintenance Checklists

One way of making sure all service requirements are covered with regularity is by establishing a maintenance

checklist. Creating checklists for various timelines is key, as operational requirements and maintenance schedules can vary based on different equipment types and their unique needs. Having daily, weekly, monthly and semiannual checklists will ensure that both everyday tasks and more serious maintenance needs are met.

While some maintenance tasks need to be performed on a regular basis, others can be less common, due to factors such as time of year, geography or overall robustness of the equipment. It is important for each carwash operator, regardless of the size of the facility, to tailor each maintenance checklist to the specific business or location. Even carwashes that use the same equipment and are under the same ownership can have different needs based on location, customer base, average daily throughput or workforce size

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and experience. Regardless of Daily Checklist shutdown-causing failures. specific tasks, having a docu- The daily checklist is at the • Check for liquid leaks mented checklist will increase heart of business operations, throughout system, includmaintenance accountability, and is central to the wash’s ing in chemical pumps and as well as create a roadmap mechanical needs, as well hydraulics. This extends that will streamline the work as its cleanliness and the to the bay, as well as the process for the employees of appearance of both the equipment room. the carwash. building and wash bay to • Make sure the equipment A great starting point when customers. and building are clean and putting together a checklist Daily tasks should be done free of dirt. Customers for a carwash operation is at the start of the day, as well find a carwash that is tidy reading and reviewing the as during the closing process. and clean much more apmanufacturer’s equipment This will ensure that any damproachable than one that is manual. This will give car- ages that can occur throughdirty. Also, if equipment is wash operators a reference out the day are attended malfunctioning due to lack point regarding which items to as quickly as possible. of cleanliness, the business need to be checked when and Alternatively, these checks can is harmed through profitwill give an idea of any best be made between shift changhampering downtime. practices that will help ensure es to ensure that the carwash Remember the rule: less that any maintenance activi- equipment is fully operational dirt means less potential ties are completed correctly. throughout daily work hours. for issues.

While the manufacturer’s Things to consider when • Check that all blowers on manual is a great reference doing daily checks: the dryer assembly are to start the checklist-writing • Run a test wash. This will working and pointed in the process, know that there are help give a first impression proper direction other factors to consider that of operational standing will be determined by each Weekly Checklist each day, and indicate if all specific location, and that a Weekly checklists generally equipment is functioning site-specific checklist will be take a closer look at the for proper operation. most beneficial.

• Ensure floors are free of de- electronic system that When building this list of facilitates carwash operation, bris, especially the dirt and tasks, it is often most benand the necessary steps grime that can accumulate eficial to write a checklist for needed to ensure that these after a number of washes various intervals of time; speparts are kept in working have been performed; this cifically, daily, weekly, monthly order. While daily checks tend buildup can be mitigated and semi-annual checklists. by checking that drains are to focus on cleanliness and Below are a few common and stocking of essential items not clogged. Also, know essential tasks that should such as cleaning fluids and that loose debris such as be considered when creating waxes, the weekly checklist garbage can fall out of each type of list. Remember, encourages owners and staff truck beds or cars durthere is no such thing as a to inspect and maintain ing the wash cycle. This one-size-fits-all checklist, and the mechanical pieces of debris can get caught in tasks should be added or modthe cleaning system. When the equipment, causing ified as needed. creating a weekly checklist, damage and potential

CONVENIENCE & CARWASH CANADA 

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remember to consider the following: • Inspect all lines – air, water and electrical – for wear and secure connections • Inspect the Motor Control Center box for loose connections or ground shorts, as well as moisture leaks • Check the operations of the rollover arches, and bleed down and reset all air regulators that are used on the rollover. Adjust and repair as necessary.

• Inspect all fittings for wear and repair, including brush-arm bearings and mountings, as well as check that all moving components are in proper alignment, which will lessen the chances that vehicle damage will occur • Check any operational or customer-visible signage.

If bulbs are burnt out, replace them and clean the signage.

• Check for compliance with OSHA regulations, and check that all safety equipment, such as fire extinguishers, is in working order Monthly Checklist

When administering monthly checks, it is important to note that depending on the location of the carwash, seasonal measures may need to be taken to keep the cleaning system in proper operational standing. For

maintaining as necessary.

This includes items such as gearbox crank arms, and parts of the high-pressure pump in the equipment room.

• Check oil and fluid levels throughout system and refill if low • Do a run-through of hydraulic systems at full speed range by adjusting the flow example, most carwashes control valve; check for in northern, colder climates abnormalities or any operahave doors that are lowered tional issues during winter months. These Semi-Annual Checklist doors are often kept open The purpose of semi-annual throughout the summer, checklists is to look at the causing a buildup of dirt and maintenance and replacement debris, as well as excess soap. of heavy-wear items, such as Other considerations that hydraulic pumps, crankshafts, should be taken include: drive trains and chains.

• Check all hardware for Because of the infrequent tightness and repairing/ nature of these routines, it is important to look at each

item in great detail and know that if something needs to be repaired or replaced, it should be done immediately. Items to incorporate on a semi-annual checklist include: • Drain, flush and refill fluids as needed. This includes all hydraulic power packs, as well as high-pressure pumps and gearbox oil for mitters.

• Grease all electric motor bearings in air dryers and pumps.

• Review OSHA regulations.

These regulations are updated with regularity (even as often as weekly) and can lead to compliance issues if they are not followed properly. This is also a good time to check additional safety features again, such as fire extinguishers.

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Maintenance Guidelines

Once a checklist is perfected for the specific carwash operation it should be documented and placed in an area that is easily accessible to employees. Each member of the staff should be given tasks and responsibilities from the daily, weekly, monthly and semi-annual lists that they are required to perform.

When these tasks are completed, documentation should be made, including completion of the task, date of completion and whether further repair or inspection is needed. If additional repairs are required, they should be handled by the appropriate channels, ideally through a certified maintenance professional.

No matter what amount of service is needed, it is always recommended to use a certified maintenance technician.

Certified technician programs, such as the PDQ University Factory Certification Program, guarantee that only certified technicians with complete knowledge regarding a specific cleaning system and its components are able to complete the work, demonstrating an expertise in repairs and troubleshooting. This ensures that the correct repairs are made immediately, in a safe manner, saving both cost and downtime.

Conclusion

Making a commitment to regular, effective maintenance is a task that – while necessary

and recommended – can still seem daunting to carwash operators. But the stresses and commitment of these tasks can be simplified and made more manageable with the use of regular maintenance checklists. By staying abreast of these tasks, unexpected closures will be kept to a minimum, and the expense

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will be far less than the costs associated with equipment repair or replacement, excessive downtime and lost revenue. When all of this is taken into consideration, it’s clear to see that preventative maintenance is not only helpful to the carwash operator, but profitable, as well.

Todd Klitzke is the technical support manager for PDQ Manufacturing, Inc., De Pere, WI. He can be reached at todd. klitze@pdqinc.com. PDQ, a Dover company, is recognized as a technological leader in vehicle-wash systems. Products are sold and supported worldwide through an authorized distribution network. For more information, visit pdqinc.com.

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CONVENIENCE & CARWASH CANADA

Boosting Carwash Revenues Through Mobile Technology

55

By Alan Nawoj

It’s no surprise that many carwash owners are eyeing mobile apps and mobile technology as an innovative way to reach their customers and generate more revenue for their operations, but understanding what makes a carwash mobile app successful is a critical first step before introducing a product like this to your own market.

Just like not all cars are created equal, not all mobile apps are created equal either, and it’s important to identify what separates the ones that will position you for success versus those that could tarnish your brand and leave your customers frustrated.

Big Opportunity for ForwardThinking Carwash Brands

Recipe for Carwash Mobile App Success

When done correctly, a mobile app is a powerful marketing and sales tool that can generate significant revenue for a carwash owner that would be very hard to match with any other form of marketing. Big brands in many industries understand this, and Starbucks, for example, has one of the most successful mobile apps for a business of all time. Despite being around for decades and having a mobile app for just a few years, Starbucks expects roughly 50 per cent of their multi-billion-dollar revenue for U.S. stores to come directly through their mobile app within the next year, which is an astounding number. Wash owners can reap these same benefits on their own scale using similar technology and strategies that are proven to work.

Many carwash mobile apps on the market today, unfortunately, are not well positioned for success because they don’t contain the features or customer engagement hooks that offer a lot of value to their end users, nor are they built into a bigger picture marketing strategy for the wash. For example, offering a mobile app to your carwash customers that just offers loyalty reward points, information on your services, or driving directions to your locations is not going to generate the kind of success you are seeking. Most people who download such an app likely won’t use it very much or will eventually delete it because it just doesn’t offer much value.

Not to mention, an app must load very quickly, be reliable, easy to navigate, and offer a great user experience, otherwise it will likely meet the same end.

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CONVENIENCE & CARWASH CANADA

Real-world data has shown that with marketing it and getting it into the carwash mobile apps that are built on hands of as many customers and future rock-solid infrastructure and have the customers as possible. Clear and effective right set of features can greatly exceed signage at your wash facilities, targeted average wash revenues regardless of online ad campaigns to drive downloads, location. Incentives, entertainment and use of smart links in strategic online features, fleet account management, locations are just some of the techniques and the convenience of purchasing a that lead to a successful app. By wash code directly inside the app are recognizing that your carwash mobile app just some of the ingredients for a suc- is the most critical asset in your digital cessful carwash app. The right tool ecosystem, you’ll be able to leverage your for the job can make all the difference other digital assets, such as website, social in the world, and this type of mobile media feeds, review sites, e-mail list, SMS app can easily be the secret weapon list, and more to drive traffic to this tool. for carwash owners when it comes to After all, a carwash mobile app is the most boosting sales and staying relevant in active form of marketing available to wash today’s digital economy. owners today.

The Bigger Picture for Carwash Marketing

Future Carwash Software Innovations

When publishing a mobile app that is branded to your wash, it is also important to work with a company that has lots of experience not just with the technology itself but also

When we look at the trends of the carwash industry and the economy as a whole, it’s no surprise that innovative software and technology is becoming a key differentiator between successful

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merchants and those that are falling behind. We are also seeing the smartphone become the primary controller for many systems, including the latest vehicles on the market. With this in mind, the carwash owners who embrace mobile technology sooner rather than later will reap the greatest benefits when apps can be used to activate the carwash directly from the vehicle’s dashboard. Sound a bit too far-fetched? These capabilities are already becoming a reality, and it’s a matter of time before they become second nature, much like the ability to order groceries from the comfort of your home.

Alan Nawoj is the founder and CEO of Beacon Mobile, headquartered in San Diego, California. Beacon Mobile is a global leader in innovative carwash mobile technology solutions. For more information, visit www.beaconmobile. com. Alan can be reached directly at alan@beaconmobile.com.

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Forecourt Insight

CONVENIENCE & CARWASH CANADA

59

By Ed Kammerer

Six Areas to Target When Winterizing Your Fuel Site There can be no half measures taken when it comes to preparing for the cold temperatures and inclement weather of winter. Think about it, you wouldn’t head out into a blizzard wearing a hat and scarf with sandals, or shovel the driveway in snow boots and a tank top.

The same holds true for fuel retailers as a reliable provider of motor fuel to the they prepare their sites for the inevitable driving public, no matter the weather onslaught of winter’s chill. The ones who conditions. Here are six areas to evalusuccessfully emerge in spring with a site ate now: that has stayed operational throughout the cold, dark winter months are those 1. NOZZLES that have taken every precaution to Let’s start with the most obvious ensure that the equipment used in their manifestation of the driver-retailer fuel-dispensing systems is capable of relationship: the fueling nozzle. Granted, nozzles are subject to abuse no matter withstanding the extreme conditions.

This means that completing a thor- the conditions, but as the temperatures ough top-to-bottom or above- to-below- tumble there is an increased risk that ground – evaluation of the equipment they will malfunction. Winter gasoline to determine whether or not it will be formulations can also contain different able to handle whatever Mother Nature additives than the summer version, intends to dish out is critical prior to which will affect nozzle operation. the harsh winter months. Any interrup- That’s why nozzle manufacturers have tions in service will be detrimental to the developed what are known as extreme bottom line and the site’s reputation as cold versions of their products. These

nozzles are UL Canada (ULc) listed and approved for use with winter fuel formulations and in temperatures as low as -54ºC (-65ºF). They also maintain the operational benefits that denote a reliable, durable and versatile nozzle, including compatibility with gasoline, diesel and 10 per cent ethanol blends, no fuel flow allowed until the system is properly pressurized, automatic shutoff, and advanced hold-open-clip technology.

2. SWIVELS AND BREAKAWAYS

Like nozzles, swivels and breakaways are under constant assault from the elements. Therefore, it is recommended that retailers use ULc-listed swivels and breakaways that have also been

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approved for use in cold-weather climates. A recent advancement in breakaway design and operation is the reconnectable model. In the event that the breakaway should disconnect, such as during a drive-off incident, it can be easily reconnected through push-twistclick technology: simply realign the valve, push in and twist until you hear the audible click. This simplifies the reconnection process, which means less time spent in the cold by the operator, while also increasing safety since fuel flow is stopped automatically when the breakaway separates.

3. EMERGENCY SHUT-OFF VALVES

A pulled-over or dislodged dispenser will likely result in damage to the unit’s emergency shut-off valves. In extreme cold, frost heave can cause movement of dispensers and piping, which can lead to the formation of hairline cracks in the valve’s body, which will create potential leak points. Newer emergency shutoff valve designs surround the valve body with a bladder that is designed to contain any fugitive fuel. This capability helps reduce the risk of fire, explosion, personal injury, property damage, environmental contamination, product loss and cleanup costs, all of which can occur no matter the weather conditions.

4. MANHOLE COVERS AND MULTIPORTS

When the snow falls, the snowplows roll, and while they play an important role in ensuring that the fuel site is accessible to drivers, they can also do significant damage to the manholes and multiports that dot the forecourt’s surface. A new generation of manhole covers and multiports can eliminate the potential for snowplow-caused damage.

These components have been designed to be entirely flush with the forecourt surface when installed, which lowers the risk that a plow blade can catch on them. Their watertight seal also reduces the chance that there will be ice buildup on the lip or frame where the cover sits, which will prevent water from intruding into the spill-containment area.

Manufacturers have also found great success in constructing their newer manhole covers of lightweight fiberglass composites, instead of traditional steel.

One of the major benefits of fiberglass

is that it has a lower coefficient of thermal expansion than steel. In other words, after many years of use in widely varying weather conditions, steel covers will tend to become bowl-shaped. In the winter, this allows water to gather on the cover and freeze, creating a slip-and-fall hazard. With fiberglass composites, on the other hand, the coefficient of thermal expansion is much more forgiving, with every change in temperature of 1ºC resulting in a negligible expansion or contraction of the cover by 0.0000054 centimeters. This makes fiberglasscomposite covers ideal for use at fueling sites with temperatures as low as -50ºC (-58ºF).

5. SPILL CONTAINERS

Next-generation double-wall spill containers have obvious benefits in preventing fuel leaks or spills from turning into catastrophes. Their design also gives them advantages when

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used in cold-weather installations. If damaged by a snowplow, the ring that supports the container’s sealable cover at the forecourt surface can simply be removed and replaced with a new one in a matter of minutes, rather than forcing the operator to replace the entire spill container, which is the case with older technologies.

6. UNDERGROUND FUELING SYSTEMS

New fueling sites will continue be built in winter and existing ones will need to be maintained or upgraded. This creates opportunities for site owners to consider installing a completely integrated, environmentally secure underground fuel-delivery system.

These so-called loop systems feature pre-fabricated, factory-assembled components that require dramatically

61

less labor time (hence, less time spent in the cold) and associated costs, while reducing the chances that installation errors will occur. The integrated piping-system design facilitates easy inspection, identification and repair of any problems that may develop, which also creates enhanced leak-prevention capabilities.

consider upgrading their systems with components that have been designed to ward off winter-based attacks, whether they be from an Alberta Clipper storm or an overzealous snowplow driver.

CONCLUSION

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. OPW is leading the way in fueling solutions and innovations worldwide. OPW delivers product excellence and the most comprehensive line of fueling equipment and services to retail and commercial fueling operations around the globe. For more information on OPW, please go to OPWGlobal.com.

The task for fuel retailers is the same no matter what time of year: keep the site operating at its highest level of efficiency, effectiveness and availability.

It can be harder to achieve that state of operational nirvana during the winter, when the weather can undoubtedly affect the operation of above- andbelow-ground fuel-dispensing equipment and systems. Therefore, it would be wise for fuel-site operators to

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63

Out of Sight Out of Mind WHY GUESS WHEN YOU CAN ACTUALLY SEE USING NEW VIDEO TECHNOLOGY?

In 2016, the EPA conducted a study to investigate the corrosion effects of storing ultra low sulphur diesel in underground tanks. They conducted random internal video inspection of 46 tanks and identified that 83 per cent of steel tanks inspected showed significant corrosion.

There are several colloquialisms about

the value of being able to see something.

Sayings like “seeing is believing” or “you have to see it with your own eyes” describe the value of visual clues. I have a unique perspective on this after many

years of reviewing precision leak test results on underground storage tanks with a technology that relies heavily on sounds created inside of a tank when you apply a vacuum. I would always be trying to imagine what a leak or hole in a tank looked like by the sound it produced. As I came to understand, cracked fibreglass tanks sound much different than a hole caused by corrosion of a steel tank. That is why I was so excited to see a new use of video technology that allowed you to see exactly what was happening inside of a

storage tank, even being able to observe the inside of the tank while it was under vacuum. This allowed for conclusive visual verification of the size, location and nature of a leak. As it turns out that was only the tip of the iceberg in terms of what can be done with storage tank internal video inspection.

Cameras and borescopes have been commonly used for sewer and pipe inspections for many years. The problem with UST inspection has been sourcing a powerful light that could be used in an explosive environment. Now with high

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SEPTEMBER/OCTOBER

This picture shows a large crack in the side of a single wall fiberglass tank with water entering through the crack.

This is a picture of a 25-year-old DW Fibreglass tank with a brine filled annular space in Florida. When water was poured into the annular space with the tank empty we were able to see with the video camera that there were several cracks and water was seen entering the tank through three of these cracks. It was also noted that there was a section of the bottom of the tank that was deflected inward.

This picture shows a single walled steel tank that was coated with an epoxy liner. The liner is cracked at several points and delaminated from the tank.

intensity LED technology this hurtle has been overcome. As the use of cameras has become more common in storage tanks we are discovering many things, some expected and others surprising.

In 2016, the EPA conducted a study to investigate the corrosion effects of storing ultra low sulphur diesel in underground tanks. They conducted random internal video inspection of 46 tanks and identified that 83 per cent of steel tanks inspected showed significant corrosion. This study showed that there is something surprising going on with steel and FRP tanks that contain ultra low sulphur diesel (ULSD). Brad Hoffman, an engineer involved in this study said: “I have been an engineer in the petroleum industry for my entire career, first with Exxon and for the last 23 years with Tanknology. I have never in my life seen corrosion of this magnitude in a fuelling system.” It is affecting steel as well as fiberglass tanks – attacking the metal components in the vapour space – bungs, risers, caps, plugs, STP shafts, ball float assemblies and flapper valves. The EPA is still trying to determine what is causing this corrosion. One theory is that when ethanol based fuels cross contaminate the ULSD fuel this may make the ULSD much more corrosive. Regardless of the cause, the scope of this problem could not have been discovered without the use of video inspection.

Another more common use of this technology is to identify and document

leaks in tanks. This is useful either to changing. In the recent past, this meant assist in a warrantee claim or to know that when higher concentrations of the most cost effective way to remedy ethanol were used in gasoline we saw the situation. Early in 2018, we found compatibility issues with seals in pumps. three separate cases of double walled We also saw that as more ethanol was tanks with a crack in the primary wall added the gasoline now became much of the tank. In two of the cases a very more soluble in water and led to unexsmall amount of brine pected problems when Another application of was migrating into the water entered storage tank over a period of video inspection is during tanks. When the fuels the tank cleaning process weeks. The third crack industry experimented to verify that all areas that we discovered was with biodiesel fuel there of the tank have been in a tank with a dry anwere some severe comcleaned. It is possible nular space. This caused patibility issues with to actually watch the an intermittent bubsteel tanks. This process bling sound when the cleaning process while it is of constant change will being conducted to give tank was placed under continue into the future feedback and assist the vacuum and a slight as retailers and regulacleaning technician pressure was created in tors look for ways to the dry annular space. make better and more Testing and confirming these leaks environmentally acceptable fuels. took multiple site visits and significant The common factor that is overlooked downtime and lost revenue on the tanks. in the development of these new chemiThe pictures shown here highlight how cals is the liquid handling equipment easy these failures would be to identify such as pumps, product lines and storby emptying the tank and using a video age tanks. As has been found in the past inspection while water or air was intro- it is likely that some of these innovative duced into the annular space. new fuels will not be compatible with Another application of video inspec- the storage equipment but the tanks tion is during the tank cleaning process are buried and out of sight and out of to verify that all areas of the tank have mind. It is not realistic to assume that been cleaned. It is possible to actually we can prepare for any possible outcome, watch the cleaning process while it is but tools like video inspection should being conducted to give feedback and definitely be engaged to monitor for assist the cleaning technician to get all unexpected results and to be used as an areas of the tank bottom. effective verification tool for any type of The chemistry of vehicle fuel is always leak or maintenance issue.

CONVENIENCE & CARWASH CANADA

This picture shows a much smaller and more subtle crack in the wall of a single walled fibreglass tank. The tank had failed a precision leak test and the subsequent internal video inspection located some small cracking on the tank wall.

Severe corrosion on the top half of this single walled steel tank.

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This picture shows severe corrosion and tuberculation on the top of a single walled steel tank in Texas.

Peter Sutherland is vice president, Testing and Calibration, Englobe Corp. He has worked for and managed Tanknology Canada for over 25 years. In the early 1990’s he started the USTMAN Statistical Inventory Reconciliation business in Canada. Over his career, he has been responsible for the introduction of several new technologies such as closed loop meter proving and ultrasonic robotic inspection technology for large bulk storage tanks.

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What’s New

Get it Clean and Keep it Clean. Tips to maintain a showroom shine on your ride.

TORONTO, Ont. — Getting your car clean is one thing; keeping it clean is something else entirely.

Road grit and grime quickly dulls your shiny finish, brake dust gathers on your rims, bug splatter mucks up your windshield — and that says nothing about the disaster kids can be in the car, leaving their little fingerprints on the windows, food crumbs on the seat, mud on the seat back and floor mats and who knows what else they are stashing in seat pockets or hiding under the seat.

“There is a lot of time and effort that goes into cleaning a car, so you want to make sure it stays looking neat and tidy for as long as possible,” says Megan Currie, Marketing Manager for Armor All for Spectrum Brands Inc. “Thankfully, you don’t have to do a full inside-and-out, top-to-bottom clean every time you get a speck of dust on the hood.”

To keep your car looking like it just rolled off the showroom floor, try the following: Clean the bugs — One of the first things to get messed up will be your windshield and front end as it plows through clouds of bugs. Bug splatter is inescapable, and leaves an unsightly mess that your wipers just can’t clean off.

Specially formulated bug and tar remover is ideal for clearing this mess away. Simply spray on, let it soak for one minute and wipe off with a clean cloth.

Wipe on, wipe off — Portable and easy to use, Armor All’s wash and wax wipes ideal for keeping your car clean on the go. No need for a bucket and hose. Pull a wipe out of the dispenser and simply wipe the paint to clean and wash your vehicle in record time. Convenient flat pack Wipes are also available to clean your interior trim, windows and GPS display.

Put on the brakes — Brake dust does more than dull the shiny metals of your rims — it can cause physical damage to your car, corroding aluminum and chrome. After cleaning the brake dust off with a rim cleaner, use a protective spray to repel brake dust, dirt and grime. Just spray it on after washing — preferably on a hot, dry day, and let sit for one hour before driving.

Aromatic and stress free — When your car is sitting in the hot sun all day, it doesn’t take much for the air to smell musty and stale. New Armor All & Essential Blends air fresheners can rejuvenate your car’s interior with long-lasting, fresh fragrances. The Essential Blends brand are made with stress-relieving essential oils that destroy typical summer car odours like food, pet and smoke with more zen-like fragrances like Citrus Pomegranate and Pink Grapefruit.

For more information, visit armorall.ca and essentialblends.ca. Get all the latest updates by following Armor All on Facebook and watching its videos on YouTube.

The Twist Eco line of steam carwash machines are now available in North America.

Using high-pressure jetted steam, the Twist Eco System can clean and sanitize any vehicle: exterior, interior, wheels, engines, even the HVAC system.

Twist Eco steam cleaning system is ecological as it does not require any chemicals and uses approximately 10 per cent of the amount of water of a standard power washer set-up.

The process uses micro-fiber towels for wiping the surfaces after they have been steam cleaned.

Manufactured in Italy, the Twist Eco System has been designed by a world leader in the development of steam cleaning technology. With a custom nozzle and 6 or 10 BAR of steam pressure, virtually any area of a vehicle can be cleaned and sanitized.

Upholstery looks like new again, headliners return to the original color, HVAC systems are cleaned and sanitized, even salt satins are effectively removed. The steam vapor will not harm electronics enabling it to be used anywhere on a vehicle.

Units range from a 1.7Kw Twist 10 to the multi-purpose 10 Kw Twist 60 and two deisel powered models providing maximum movability.

KDetail Plus, the North American distributor of the Twist Eco System, opened a retail detailing and corporate training facility in the Toronto area to test the equipment under North American conditions. The facility provides a hands-on training location for purchasers of the units. The Twist Eco System machines are put to the test, six days a week, proving capabilities and acting as an on-going demonstration of the power of steam.

The company is now actively engaged in showcasing the machines to automotive dealers and dealer groups across North America.

CONVENIENCE & CARWASH CANADA

Bike Racks to Keep Store Exteriors Tidy Featured in NACS Booth #3075

traditional designs, and provide years of maintenance free functionality. Available as stand-alone items or with complementary site furnishing such as benches, waste & recycling containers, planters, shade structures, picnic tables, and more. Paris Site Furnishings’ bike racks are ideal for convenience stores, retail environments, schools and universities, parks and recreational facilities, urban areas and streetscapes, green spaces, sports venues, transit facilities, retail and corporate settings, or wherever bike travel is common.

Princeton, ON – Paris Site Furnishings presents a full range of bike racks which can keep store exteriors tidy and accessible, in NACS booth #3075. Available in a multitude of sizes, styles, materials, colors and mounts, so customers can choose the ideal bicycle parking for their location. These durable components can be selected as pedestal, m-style, coil, horseshoe, loop, ground loop, grid, and

Manufactured in Princeton, ON and available factory direct or through distributors and dealers throughout North America.

Paris Site Furnishings and Outdoor Fitness manufactures a broad range of aesthetically pleasing, comfortable, functional and durable site furnishings. Their benches, waste and recycling receptacles, picnic tables, shade structures,

planters, bollards, and bike racks, are available in varied materials including steel, hardwood, aluminum, and recycled plastic. In addition to standard products and designs, custom designs are available to suit any need. Whether custom or standard, Paris Site Furnishings create lasting impressions within parks, streetscapes, schools and universities, retail or corporate environments, public venues, transit facilities, sports venues, green spaces, and more. In addition to site furnishings, they manufacture a full line of outdoor fitness equipment, providing a revolutionary way to exercise outdoors. All products are manufactured with a combination of modern technology and personal craftsmanship, using the finest materials and adhering to strict standards.

Visit www.PEML.com, call (800) 387-6318, or or e-mail sales@peml.com.

Self Cleaning Water Reclamation Systems Reverse Osmosis Systems High Pressure Pump Stations Prep Stations 403.243.1312

1-866-973-2524

www.reclaimequip.com

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SEPTEMBER/OCTOBER

National Carwash Solutions Partners With TSS Car Wash Services

Anthony® Announces the Automatic Hold-Open for all 401 Door Models The Automatic Hold Open makes restocking of merchandise easier and faster Sylmar, CA, USA – Aug 6, 2018 Anthony® is pleased to announce the addition of the Automatic Hold-Open feature to its 401 Series (Models 401E and 403E) commercial cooler and freezer doors.

401 Series doors, part of Anthony’s Rugged and Robust Line of doors, are the economical choice for entrylevel doors, offering high-quality design, construction, and premium features typically found only in more exclusive door models. The Automatic Hold-Open feature will replace the current manual holdopen function, allowing retailers to restock merchandise more efficiently.

The Automatic Hold-Open will also make it easier for customers to prop open refrigerator and freezer doors, enhancing the overall shopping experience.

Benefits of the Automatic Hold-Open feature: • Enhances shopping experience • Reduces costs - faster merchandising restocking for improved operational efficiencies • Left and right hinge reversible decreases parts maintenance and parts inventory “We understand the needs of our customers and their shoppers,” said Uri Rainisch, Senior Product Manager for Dover Food Retail. “It’s our mission to always offer the best solutions to them. Adding the Automatic Hold-Open as a standard feature to our 401E Series doors helps retailers restock their shelves faster, offers them the flexibility they need with a universal hold-open for left- or righthinge doors, but most importantly, it provides the shopper a more pleasant experience.”

For more information on Anthony and its various product lines, please visit www.anthonyintl.com.

Grimes, Iowa (August 8, 2018) – National Carwash Solutions (NCS), the world’s premier provider of car wash systems, cleaning solutions and maintenance services is very proud to announce its strategic partnership with TSS Car Wash Services (TSS). TSS is the industry’s leading customized carwash design solutions supplier located in Warren, Michigan. TSS provides the very best in car wash consultation, LED lighting, creative design, customized signage and systems, wash package solutions and marketing services to their car wash customers.

National Car Wash Solutions is the parent company of the industry’s leading brands including MacNeil, Ryko and Clean Touch.

NCS has also partnered with the very best car wash distributors in North America including Hi-Performance Wash Systems, Auto-Clean, Arizona Car Wash Systems, Complete Car Wash, NuLook and Badger Land. These partnerships have strengthened NCS’s dominant positon offering the nation’s only direct service network to meet the business needs of car wash operators.

TSS adds considerable fire power to NCS’s arsenal of bundled product and service offerings. TSS recently tripled the company’s footprint moving into a new 100,000 square

foot facility to accommodate increased demand and future growth. TSS also invested into new technologies to continue to offer world-class innovation. TSS will continue to provide the same great sales, service and support to all customers as they have since 1990.

“We are constantly looking for the right strategic partners to join the NCS family” said Michael Gillen, CEO of NCS, “TSS is a perfect fit to our brand portfolio. We couldn’t be more thrilled to partner with such an innovative company. TSS is the leading provider of customized car wash solutions, marketing products and services.

TSS has made a long-term commitment to quality custom products, resulting in over 28 years of continued growth. We’re very excited to join with TSS and their management team.”

“We’re convinced that NCS is the right strategic partner for us with resources and market leadership that will expand our capabilities. We couldn’t be happier to become part of the NCS family,” said Bobby Jones, Vice President at TSS. “We both share a vision to make our car wash customers more profitable through exceptional innovative products and service,” adds Abe Basha, Vice President at TSS.

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CONVENIENCE & CARWASH CANADA

LSI Industries Unveils Reorganization Plan to Deliver Customer-Engaging Retail and Commercial Environment Solutions to Strategic Markets

Each ISTOBAL rollover saves over 1,800,000 litres of water per year thanks to their recycling systems

wash equipment, 40 per cent on the latest rollovers, and 33 per cent on jet washes.

Similarly, the ISTOBAL esens chemical product range is certi• If this water were not reused, it would compare to a tap running fied with the ‘Swan Ecolabel’ of Nordic countries, one of the for 106 days.

• ISTOBAL physical and biological most important and demanding recyclers reuse up to 80 per cent sustainability certifications in the of the water used in each service world.

ISTOBAL calls for responsible and prevent contamination water use by car washes. The of the water used in the wash company reminds us that washprocess. ing your car at home with a hose • ISTOBAL has pointed out that requires much more water, 500 rollovers and jet washes are a litres approximately according to best choice for low water consumption compared to a manual ECODES (Spanish Foundation for Development and the vehicle wash using a hose.

Environment).

USA (6th August 2018).- ISTOBAL, the Spanish leader in car wash and ISTOBAL has pointed out that rollovers and high-pressure jet car care solutions for the automowashes are the best choice to tive industry saves almost two save water. The technology used million litres of water per year on each rollover thanks to its recycling at jet washes -high pressure water systems. Committed to the environ- spraying- ensures an average consumption between 40 and 60 ment, the company is a pioneer litres for a full program. Rollovers in the development of sustainable solutions aimed at reducing the use in turn use 160 litres of water of water and energy and minimising on average for the full service, and 80 per cent of that water is environmental impacts. reused thanks to the recycling The firm's environmentally friendly system. car wash technologies include recycling systems that allow rollovers ISTOBAL is a Spanish leader in the design, manufacture and to save an average of 128 litres marketing of car wash and car of water every full service. The care solutions for the automotive company has underlined the fact that, if that water were not reused, sector. Since 1950, the company has contributed innovative it would compare to a tap running products to the industry for excelfor 106 days. lent vehicle care, guaranteeing a ISTOBAL physical and biological positive user experience. recyclers reuse up to 80 per cent The company has exported of the water used in each service its products to more than 75 in the following wash program, countries thanks to a worldwide and prevent contamination of the water coming out at the end of the network of distributors. It has 10 subsidiaries and three manufacprocess. turing and final assembly plants Committed to responsible water in Spain, the US, and Brazil. use in their car wash and car care International sales currently solutions, ISTOBAL has managed account for 75 per cent of its to reduce water consumption by production.

45 per cent for commercial vehicle

Cincinnati, Ohio, August 17, 2018: LSI Industries Inc. (NASDAQ: LYTS), a leader in visual image and engagement solutions, including lighting, graphics, and technology for national brands and retailers, today announced that it will reorganize operations to better serve customers’ needs across market verticals with integrated, innovative business solutions.

The alignment with customer needs will offer strategic markets: • One source for solutions designed to enhance retail and commercial environments.

• Coordinated lighting, graphic and technology products and services, including new product development, to optimize and advance functionality and performance.

• Distinctive approaches for developing, implementing and maintaining the customer experience in the physical environment.

“Over the years, LSI has grown rich with solutions for retail and commercial environments, from products to support brand image programs, such as graphics and lighting, to technology solutions to increase engagement, like digital signage, controls, proximity marketing and analytics. All of these products and services, as well as market expertise, are converging to help clients implement and maintain the customer experience in the built environment like never before. And now, these implementations can be achieved with one source and one streamlined solution,” said Crawford Lipsey, president & COO LSI Industries.

As part of the reorganization effort to streamline services and deliver the full scope of LSI’s capabilities to customers, LSI is: • Merging operations, including Leadership, Sales, Marketing and Product Development functions, previously segmented by product type (i.e. Lighting, Graphics & Technology), around key markets and customers.

• Introducing a new chief commercial officer role, which will be responsible for leading LSI’s total sales organization and market channels for all LSI products and services. This role will be assumed by Jeff Croskey, who has served as president of LSI’s graphics segment since 2015.

• Launching a search for a chief marketing officer, a new role for the company, to implement marketing strategies and communications that support customers evolving needs, and will include leadership of new product development.

• Naming a senior VP of Product Development & Management who will oversee development of all lighting, graphic and technology products to ensure maximum optimization of integrated solutions for customers.

Ron Brown, CEO of LSI Industries commented, “We are committed to becoming more focused on our customers’ needs through progressive changes in how we service the customer as well as investments in right fit emerging technologies and offerings. Packaging and delivering the full scope of LSI’s capabilities, including technology, products and services, as one, coordinated operation, will allow us to create further value for our customers.”

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SEPTEMBER/OCTOBER

Ad Index

Aerodry Systems Inc................................................................ 27

P.D. McLaren Limited...................................... 26, 32, 47, 61, 62

Air-Serv Canada Inc................................................................. 65

PDQ Manufacturing................................................................. 42

Belanger Carwash Equipment, Inc.......................................... 44

PetroClear Filters...................................................................... 30

Bulloch Technologies Inc......................................................... 57

Petroleum Equipment Institute................................................. 34

Cardtronics............................................................................... 72

Reclaim Equipment Company................................................. 67

Core-Mark Int’l.................................................................... 38, 49

RockyView Industries................................................................. 8

Dsitribution Regitan.................................................................. 33

Steamericas Inc....................................................................... 23

Erie Brush & Mfg Corp............................................................. 58

Tanknology Canada Inc. a division of Englobe........................ 53

Gourmet Chips......................................................................... 71

Taylor Food Equipment............................................................ 17

Innovative Control Systems...................................................... 24

The Great Canadian Meat Company........................................ 39

Int’l Drying Corporation............................................................ 52

United Distribution Network..................................................... 40

Istobal USA.............................................................................. 18

Washtech Vehicle Wash Systems............................................ 67

JUUL Labs................................................................................ 12

Wayne Fueling Systems........................................................... 54

Modernwash............................................................................ 28

Western Refrigeration............................................................... 14

Mondo Products Company Limited....................................... IFC

White Castle Food Products..................................................... 22

Nestle Waters Canada........................................... 26, 32, 47, 61

Women in Carwash™............................................................... 10

North Shore Tobacco............................................................... 56

WPMA....................................................................................... 70

Oasis Car Wash Systems......................................................... 46

Xpress Wash............................................................................ 51

OPW Fuel Management........................................................... 60

The

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MONDAY, February 18

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NEW 7 - 9 a.m. ........................................... WPMA Breakfast Café OPEN 7 a.m. - 4 p.m. ........................................................... Registration OPEN 8:30 - 10 a.m. .............................................................KEYNOTE SESSION 10 a.m. - 3:30 p.m. ......................TRADE SHOW OPEN with Buffet Lunch 12 - 2 p.m. .......Ladies’ Luncheon: Marilyn Sherman, Front-Row Leadership 3:30 p.m. . .............................................................. Brand Meetings 5 p.m. ...................................................................Cardlock Meeting Evening Open ............................................................Suppliers Hospitality

THURSDAY, February 21 7 - 9 a.m. ........................ WPMA Breakfast Café OPEN 7 a.m. - 12 p.m. ...................................... Registration OPEN 8 - 9 a.m. .............................EDUCATIONAL SESSION: Eric Fisher, NEW

!

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9 a.m. - 12 p.m. ...TRADE SHOW OPEN with Buffet Breakfast 11 a.m. .............. Silent Auction CLOSES Subject to change

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