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Financing Moves Signal Growth for the C-store Industry

Refuel gets a $511-million capital infusion, while Foxtrot receives $100 million

THE CONVENIENCE STORE industry is grabbing the attention of the investor community.

Charleston, S.C.-based Refuel Operating Co. LLC received a $511-million capital infusion as the operator of more than 175 convenience stores in North Carolina, South Carolina, Texas, Mississippi and Arkansas continues its growth strategy.

First Reserve, a middle-market private equity firm focused on the energy and industrials sectors, tapped Sixpoint Partners to close the transaction, named the First Reserve Refuel Fund. Refuel entered into a partnership with First Reserve in April 2018 to form FR Refuel and bring enhanced capitalization to support an aggressive, acquisition-based growth strategy.

The First Reserve Refuel Fund acquired Refuel from a legacy First Reserve fund. The new fund also provides additional “dry powder” for Refuel to continue pursuing its growth strategy.

“Given the increasing selectivity we are seeing in the market around single-asset transactions, we view robust demand for the fund as a testament to First Reserve’s reputation and the strength of the underlying Refuel platform,” said Shawn Schestag, partner and head of capital solutions for Sixpoint Partners. In addition, Chicago-based Foxtrot Market announced $100 million in new Series C funding led by D1 Capital Partners. This brings the company’s total funding to date to $160 million, which Foxtrot will use to open 25 new stores in 2022.

The new locations will include its entrance into Boston’s Back Bay neighborhood; its debut in Austin, Texas, with two stores on South First and The Drag; plus notable openings in Chicago’s iconic Willis Tower, Tribune Tower and near Wrigley Field.

In 2023 and beyond, Foxtrot plans to continue expanding into additional markets, such as New York City, Nashville and Miami, while simultaneously expanding its presence in existing areas of operation. The retailer first expanded to the East Coast in March 2021.

With the new funding, Foxtrot also will focus on scaling its merchandising model, which seeks to meld the best of local artisans with core pantry essentials, favorite treats, and handpicked wines, spirits and local beers. Driven by customer demand, Foxtrot is investing in a deeper private label assortment around mealtimes, doubling down on its core offerings of coffee, ready-to-eat cafe meals and wine — all optimized for both delivery and pickup.

New Year Ushers in Minimum Wage Hikes

More than half of U.S. states will increase their hourly wage in 2022

THE NEW YEAR BRINGS new minimum wage rules in several states and cities across the United States. Twenty-six states will hike their minimum wage in 2022, according to Wolters Kluwer Legal & Regulatory U.S. The lion’s share — 22 — implemented the change on Jan. 1.

“These minimum wage increases indicate moves toward ensuring a living wage for people across the country,” said Deirdre Kennedy, senior payroll analyst at Wolters Kluwer Legal & Regulatory U.S. “In addition to previously approved incremental increases, the change in presidential administration earlier this year and the ongoing coronavirus pandemic have also contributed to these changes.”

The firm’s analysis of state minimum wage changes found several key takeaways. Notably, West Hollywood, Calif., now has the highest minimum wage rate in the country at $17.64 per hour for hotel workers. The change went into effect Jan. 1. In addition, California has the highest state minimum wage at $15 per hour.

Parts of New York, including New York City and Nassau, Suffolk and Westchester counties, also have a $15 rate. Close behind are Oregon’s Portland metropolitan area at $14.75, effective July 1, and Washington State at $14.49, effective Jan. 1. Washington, D.C.’s minimum wage is $15.20.

Ten more states have scheduled incremental increases that will bring their minimum wages to $15 per hour within the next few years. These states include Connecticut and Massachusetts by 2023; New Jersey by 2024; Delaware, Illinois, Maryland (large employers) and Rhode Island by 2025; and Florida and Maryland (small employers) by 2026. Pennsylvania will also reach $15 per hour for employees under the governor’s jurisdiction by 2024.