Making Foodservice Your Center Stage

This is the year to elevate your foodservice program to be the crown jewel of your store

IN THE MOST RECENT Convenience Store News Forecast Study, released last month, convenience store retailers overwhelmingly said foodservice, particularly prepared food, will be the No. 1 category driver for growth and innovation in the channel in 2023.

Seventy percent of retailers surveyed said they expect prepared food to be their highest dollar growth category this year. Another foodservice category, dispensed beverages, was cited by 50 percent of c-store retailers as being their expected highest dollar growth category in 2023.

Even smaller c-store chains (with 20 stores or less) see prepared food as key to their growth this year. Sixty-five percent of small operators surveyed are anticipating an increase in their prepared food dollar sales per store this year. In line with the dollar volume expectations, c-store retailers big and small are projecting they will add more SKUs and more square footage to their foodservice areas in 2023.

All of this comes as little surprise to us. CSNews has been touting the importance of foodservice at convenience stores for years. We are proud to have helped numerous c-store retailers achieve their foodservice growth goals through our reporting on best practices and trends, interactive events like our Convenience Foodservice Exchange, community networking groups like our Convenience Foodservice Alliance, and our one-of-a-kind Foodservice Innovators Awards program that recognizes innovation in convenience foodservice each year.

I think we’ve proven that a distinctive, high-quality foodservice program is a must-have for a successful convenience store. In fact, foodservice should be the centerpiece of the business. It provides your store with an identity and should be the most profitable part of your business.

If you haven’t already made foodservice the crown jewel of your store, or even if you have but want to take your foodservice to the next level, this appears to be the year to do it. Many retailers have already lifted their programs to near best-in-class status. Many of the most advanced convenience foodservice retailers continue to evolve their offerings to meet the more demanding needs of their customers. And, according to the CSNews Forecast Study, the overwhelming majority of c-store retailers will be looking to up their foodservice game in 2023.

You can get a head start on your competition by attending the 2023 Convenience Foodservice Exchange (CFX) event this spring. I invite you to join us in Nashville, Tenn., on May 4-5 for two days of education, collaboration, networking, problemsolving, unique food experiences and store tours as we explore how to elevate your foodservice program to be the centerpiece of your business. Contact me if you’re interested in attending.

For comments, please contact Don Longo, Editorial Director Emeritus, at dlongo@ensembleiq.com.

FEATURES

COVER STORY

28 Changing the Narrative Today’s challenges in the tobacco category can become untapped opportunities.

36 Conquering Labor Challenges

C-store retailers are turning to technology to do more with less, and increasing incentives to entice new workers and retain current staff.

DEPARTMENTS

E DITOR’S NOTE

3 Be Your Employees’ Greatest Champion Today’s job seekers want an employer that invests in their professional development.

VIEWPOINT

4 Making Foodservice Your Center Stage This is the year to elevate your foodservice program to be the crown jewel of your store.

10 CSNews Online

20 New Products

SMALL OPERATOR

24 I Saw the Future & It Is Underground Elon Musk’s Las Vegas Loop offers two lessons for convenience store operators.

AN EYE ON D&I

52 Laying the Foundation

Recruiting and retaining a diverse workforce is not only the right thing to do, but also makes business sense.

INSIDE THE CONSUMER MIND

74 Trends to Watch in Beverages

Simplicity and functionality will resonate, according to this year’s predictions.

Industry

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TOP VIEWED STORIES

Wawa Ranks Among Brands to Watch in 2023

The convenience store retailer’s expansion plans, foodservice offerings and loyal customer base set it up for success this year, according to a new whitepaper from Placer.ai. Overall foot traffic to Wawa is on the rise, with average visits per store growing across its network.

2

Applegreen C-stores Coming to New York Thruway

The brand is replacing McDonald’s restaurants as part of a $450 million project to modernize the highway’s 27 service areas. Its offerings include hot meals, grab-and-go food selections, Taste NY program products and merchandise, and more.

Couche-Tard to Acquire True Blue Car Wash

The deal for the operator of Clean Freak and Rainstorm brands includes 65 car washes located in high-traffic areas in Arizona, Texas, Illinois and Indiana.

RaceTrac Eyes Expansion Into Two New States

The Atlanta-based retailer will enter the Ohio and South Carolina markets with the addition of three new convenience stores. The first location in Ohio is set to open in Delaware, while plans for South Carolina operations will begin in the city of Columbia.

1 3 4 5

Majors Management Acquires Davis Oil

EXPERT VIEWPOINT

How Convenience Store Owners Can Combat Meltflation

The standard 10-pound bag of ice has quietly been reduced to 7 pounds over the last few years. Customers are getting less product but paying the same price, if not more, leading to “meltflation.” This means convenience store owners are paying 30 percent more for the same — or less — amount of product than before, depending on the delivery service, writes Ben Gaskill, co-owner and director of sales and marketing for Ever est Ice and Water Systems. He suggests operators consider a more accessible, cost-effective and environmentally safer alternative that dispenses 10 pounds of ice per purchase, eliminates the need for third-party distribution, restocks automatically and has the poten tial to significantly reduce the use of plastic bags.

Turning Down Turnover

In addition to wages, there are numerous factors that retailers should take into account when considering what employees really want and what will keep them at their current job or send them searching for a new one, according to a recent webinar presented by Convenience Store News and sponsored by Legion Technologies. Sixty-nine percent of managers list staff shortages as a reason to feel stressed. This means it must be a priority to give employees a good experience and not add to their own stresses as part of avoiding turnover. Scheduling is particularly important to employees, who often work multiple jobs but still want to spend time with their families.

For more exclusive webinars, visit the Events & Webcasts section of csnews.com.

MOST VIEWED NEW PRODUCT

Pillsbury Funfetti Popcorn

General Mills Convenience is bringing a new offering to the ready-to-eat popcorn category with Pillsbury Funfetti Popcorn. Coated with Funfetti glaze, the popcorn features tiny rainbow-colored flecks that boost the visual eating experience and fun factor, according to the company. The 2.25-ounce bags will carry a suggested retail price of $2.29 when the product hits store shelves nationwide in May. General Mills also introduced cereal-flavored popcorn, available in Cinnamon Toast Crunch and Cocoa Puffs flavors, earlier this year.

generalmillscf.com

Shell USA Takes Big Stake in Electric Vehicle Charging Space

SHELL USA INC. continues to prepare for the changing mobility landscape with a recent deal to acquire electric vehicle (EV) charging and media company Volta Inc.

The all-cash transaction, valued at approximately $169 million, is expected to close in the first half of 2023 pending regulatory approvals and customary closing conditions.

Volta’s assets include an existing public EV charging network of more than 3,000 charge points at destination sites — such as shopping centers, retail stores and pharmacies — across 31 U.S. states and territories; a development pipeline of more than 3,400 additional charge points; and capabilities to continue developing, operating and monetizing EV charging infrastructure.

Beyond providing a charging service, Volta also specializes in generating advertising revenues from screens embedded into the charge points.

“The shift to e-mobility is unstoppable, and Shell recognizes Volta’s industry-leading dual charging and media model delivers a public charging offering that is affordable, reliable and accessible,” said Vince Cubbage, interim CEO at Volta. “While the EV infrastructure market opportunity is potentially enormous, Volta’s ability to capture it independently … was limited. This transaction creates value for our shareholders and provides our exceptional employees and other stakeholders a clear path forward.” when a coffee to go becomes an experience that stays.

The acquisition continues a trend toward renewable resources and cleaner transportation development that Shell’s various subsidiaries have undertaken over the last two years. In 2021, Shell New Energies closed an agreement to acquire energy storage developer Savion from Macquarie’s Green Investment Group. In March 2022, Shell Energy North America joined the Retail Energy Advancement League, an advocacy organization dedicated to energy consumer choice with a special emphasis on green options.

Houston-based Shell USA is an affiliate of Shell plc, a global group of energy and petrochemical companies with operations in 70-plus countries. In the United States, Shell operates more than 14,000 Shell branded stations across all 50 states.

Despite labor challenges, consumers continue to expect fresh, high-quality coffee whereever they go. Automatic, bean-to-cup coffee machines are the perfect solution for operators wanting to elevate their coffee program without added labor.

The award-winning A400 Fresh Brew is our latest innovation in hot coffee. This fully automatic bean-to-cup coffee machine grinds whole beans fresh for each cup delivering on consumer demand for quality with a simple touch. Creating fresh taste with less waste has never been easier.

Eye on Growth

TA also acquired seven existing travel centers and three standalone truck service facilities last year.

TravelCenters of America Inc. (TA) signed 30 new franchise agreements by Dec. 31, 2022, successfully reaching its annual target. The travel center operator plans to open an additional 20 franchised locations in 2023.

As of Dec. 31, Getty Realty Corp. had a committed investment pipeline of more than $100 million for the development and acquisition of convenience stores and car wash properties. In 2022, the real estate investment trust invested approximately $157 million across 52 properties.