JAMILLE AND JACOBA TAYLOR AMPLIFY THE EXPERIENCE AT JJ’S EXPRESS CAR WASH & OIL CHANGE WITH A CARNIVAL-LIKE VIBE HOW CAN GOOD LIGHTING BOOST YOUR BOTTOM LINE? USE FORECOURT MARKETING TO DRIVE FOODSERVICE SALES INVESTING IN DRYERS? HERE’S WHAT YOU NEED TO KNOW INSIDERS DISCUSS THE CANADIAN TIRE GAS+ REBRAND
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BY TOM VENETIS PHOTOGRAPHY JESSA
ROBB SISTER ACT
At
JJ’s Express Car Wash & Oil Change, Jacoba and Jamille Taylor
amplify the car wash experience with carnival-like vibe
ACAR WASH is traditionally a mundane affair.
A customer takes their vehicle to a car wash, it is guided into the tunnel, the car gets washed and dried, then the customer drives away hopefully satisfied with the wash, but likely not thinking any more about it until they decide to bring their car for another wash.
Sisters Jacoba and Jamille Taylor, owners and operators of JJ’s Express Car Wash & Oil Change in Saskatoon, Sask., are aiming to change that by making the car wash—and oil change—friendly and fun.
That seems an unlikely combination, but it should not be a surprise. The sisters learned a lot from their mom and dad. Dad worked in the concrete business and mom worked the carnival circuit and managed three booths around Manitoba, Saskatchewan and Alberta. They helped their mom in the summers at the booths, doing everything from the day-to-day operations, to helping serve food and shaved ice. It was an exciting opportunity for two early teenage kids.
“We travelled around the exhibition circuit with mom,” says Jacoba, who, along with her sister, chuckle about the fun they had as kids being ‘carnies.’ In fact, the excitement and fun of working the circuit with their mom helped them understand how important it is to inject some fun into their business.
Embarking
on a new business adventure
They launched their car wash after both found themselves back home after university and without work during the COVID epidemic and lockdowns.
Jamille studied urban planning and marketing management, while Jacoba has a degree in kinesiology and psychology—the duo proceeded to learn all they could about the business before breaking ground on their first location.
When they opened in 2021at 803 51st St. in Saskatoon, Saskatchewan, the operation stood out from its competition with its carnival ride atmosphere.
Setting the tone with chemicals and lights
When entering, a vehicle owner has their car washed with scented and coloured soaps (soap and chemicals from Prestige Chemical) and enjoys a light show that can change depending on the season: For example, at Christmas, the lights are green and red for a festive feel; they switch things up to orange at Halloween; and for Valentine’s Day, the sisters offer a pink, red and white ambience.
“We loved travelling about the exhibitions with Mom and we liked the fun lights, the coloured and scented soaps we came across and the rides and everything,” Jacoba says. “It is something we grew up with and enjoyed, so we wanted
Sisters Jamille (left) and Jacoba Taylor opened the first JJ’s Express Car Wash & Oil Change in 2021, with the vision of bringing a sense of fun to the traditional car wash
The Taylor sisters offer a fast and friendly oil change service as well as a car wash. “We want to provide a ‘no-BS’ oil change. Our employees are there to provide you with a high-quality service and they will make suggestions for other services, only if you need them. They are not there to push things onto you, as some other places often do,” says Jacoba
to add something like that to a car wash, add a twist to what is too often the same boring car wash you come across. We wanted something fun and exciting.”
You can see this fun and enjoyment on their social media feeds, where employees create Tik Tok videos and other videos to give a behind-the-scenes look at how the car wash operates and what goes into an oil change.
Investing in the right equipment
One reason they can add this fun element is that the location does not use the more traditional pulley system for moving a vehicle through a wash. A pulley system uses a
chain system to grab a vehicle’s wheels and pull the vehicle along. Instead, Jacoba and Jamille invested in a Duro Trac conveyor system from MCE Inc. Staff guide the vehicle owner onto the conveyor and the system uses plastic chains, which move vehicles (and a greater number of vehicles at a time) more efficiently, while eliminating the need for tire guide rails. As a bonus, all the surface area of the wheels are exposed and cleaned during a wash. And because the system uses plastic chains, they are better able to handle the environments of a car wash and operate in the kind of sub-zero temperatures experienced in Saskatchewan during the winter months.
“That was a big factor for us,” says Jacoba. “Here in Saskatchewan, we can get temperatures that dip down to minus 35 to 40 degrees, and we need to be able to operate during such cold weather.”
Jamille explains that the conveyor system also worked better with the design of their car wash, which was built using precast concrete that provides greater protection from the elements; keeps warmth inside during winter months; and allows for a larger footprint so that there’s more room for staff to work.
Protection from the cold is enhanced by the folding doors provided by Findoor, which are used at the inaugural site, as well as a second car wash and oil change location, which opened in December 2023 at 2726 Lorne Ave. These sideways opening doors provide greater protection from the cold and are more suited for work environments where there is moisture and water.
Expanding the business model
While having an oil change facility alongside a car wash might seem to some unusual, as they are two distinct types of businesses, but the sisters see a synergy. They say the same principles that they use to operate their car wash business—providing a high-quality, customer focused service that make the car wash something that can be used often and with no hick-ups for the customer, such as monthly car wash memberships and touch-free debit and credit card payments—is the same for an oil change.
No appointment is needed. One simply rolls up to the oil change facilities, located on the same lots as the car wash, and trained technicians will do a complete oil change, using Castrol oil and Wix filters, while one waits.
“With every oil change, you also get a free car wash, so it gives someone who just comes in for an oil change a chance to try our car wash,” Jacoba adds. “We want to provide a ‘no-BS’ oil change. Our employees are there to provide you with a high-quality service and they will make suggestions for other services, only if you need them. They are not there to push things onto you, as some other places often do.”
Recently, the sisters added an Express Interior Clean service to the operations. While not a full detailing service, the 20-minute express service involves a technician doing a thorough vacuum of the vehicle, cleaning all windows, door jams, mats, panels, vehicle dashboard, added vinyl and leather protection and detailing of the tires.
With two sites now up and running, the sisters are busy, but the fun never stops. OCTANE
Ask the expert
OCTANE talks with Erin Noonan of G&G Industrial Lighting about how the right lighting at the forecourt and car wash not only improves customer satisfaction, but also drives profitability BY
TOM VENETIS
SOME PEOPLE DON’T think too much about the lighting that goes into their forecourt or car wash. Most are satisfied if the lighting provides adequate illumination at a reasonable cost.
However, G&G Industrial Lighting’s director of marketing, Erin Noonan, believes that is a mistake. Lighting provides more than illumination. When the right lighting is chosen that lighting can help a car wash operation and a gas station increase traffic to their operations and increase profits.
The case for car wash lighting
Take the car wash as an example. Noonan says that most car wash operations, if they are not standalone operations, are often tucked somewhere behind a gas station or convenience store operation. In most instances, nothing is done to make the car wash itself stand out to a customer who is either coming to the location to purchase gasoline or to use the convenience store.
That is why over the years car wash operators have approached G&G Industrial Lighting to incorporate more dynamic and colourful lighting to make the car wash stand out.
“[Dynamic] car wash lighting is by far the simplest, easiest and most impactful thing that a car wash can do to differentiate themselves,” Noonan says. “As an example, you can use customized lighting inside the car wash that differentiates the different functions of the wash cycle to the customer as they go through the wash. You can say use one colour in the prep area of the wash and another as the foam is being applied to the vehicle and another as the wash is happening, and another colour for when the car is done being washed and is being dried and to tell the customer to begin moving out of the car wash. There is a lot you can do with lighting, and we realized that there was a specific need in the marketplace for operators to be noticed, to help differentiate themselves
from the competition and to create a unique customer experience that helps build repeat business.”
G&G Industrial lighting has several lighting technologies for car washes. One is its Edge: Outdoor Color LED Luminaire technology can be used on a car wash exterior to create dynamic and changing colour schemes using
Erin Noonan
Customized lighting inside the car wash is not only fun, but also it can differentiate the various functions of the wash cycle for customers as they travel through the tunnel
a ColorWash app, allowing the car wash—or even convenience store exterior—to stand out at night. The RGBW Harsh Environment LED Luminaire is a full-spectrum light system made to be used inside the car wash during operations so the operator can create customized lighting for the interior and light shows to enhance the customer experience.
“Conventional light sources in the past typically used aluminum cast iron housing and plastic lenses,” Noonan says. “Those are the ones you often see with moisture inside over time and if you try to put that in a car wash, they won’t last very long. The lens is going to crack, the plastic housing will become brittle, and it will fall apart with all the chemicals used in a car wash. These new lights can take high temperatures, high pressures and you can put them right next to the water jets and sprays and they will survive making them ideal for car wash operations.”
Lighting the way at the forecourt
When it comes to forecourts, Noonan explains the trend over the last few years is towards LED fixtures. One reason is that LED lights, as compared to older technologies like incan-
descent bulbs, last far longer and can produce more light using less electricity.
“Say you are going from about 250 watts for one light bulb to 50 watts for an LED fixture that is going to last you four times as long, that is going to give you a huge savings on your electrical bill and add to that the lower maintenance and upkeep of the LED fixture,” Noonan says. “Another advantage is that today’s LEDs are brighter, produce a crisper and cleaner light.”
Proper illumination at night is crucial for bringing in business during the evenings. Noonan says that poor lighting of forecourts and car wash operations makes them unattractive to customers during evening hours. Customers will see the operations as less safe and tend to avoid them. Having proper lighting to illuminate the forecourt and to add colour to the car wash tends to put people at ease and encourages them to use the operations.
She says some studies find that with proper forecourt, car wash and convenience store lighting, there is a marked increase in sales, with some locations saying that improved lighting generated 70% more traffic at night, compared to locations that did not have strong lighting. OCTANE
JUST TAP N GO!
Dynamic lighting can help make a convenience and service operation stand out and attract customers in the evening
Proper lighting adds a sense of security, helping make people feel at ease coming to your operation during the evening hours
National Shopper Study
Forecourt Marketing Report: Drive fuel customers in-store with promotions that focus on prepared foods and value
TECHNOLOGY HAS ITS advantages, but with 70% of c-gas shoppers saying they opt to regularly mobile pay at pump, it means less shoppers are going in-store to pay for gas, which also means a decrease in incremental or impulse spending.
Driving fuel customers in-store has long been a challenge (and opportunity) for the channel, but fortunately, retailers have at
BY MICHELLE WARREN
their disposal an array of valuable tools.
One way to influence and change shopper behaviour is via forecourt communications, from video displays to nozzle ads, audio, coupons and more.
In 2024, we know that the way to c-gas shoppers’ hearts is through their wallets: 68% of shoppers say price is number one in terms of a positive shopping experience at
Aspects that influence decision to shop for in-store products on gasoline trip
convenience (that’s up 8 percentage points from last year), according to the 2024 C-store IQ National Shopper Study
In addition, 45% of shoppers tell us price and value remain the most important factor when purchasing prepared foods, with economic pressures making this even more significant.
In turn, 20% of shoppers say the reason
Reasons choose not to shop in-store
65% of shoppers say they are very satisfied/satisfied with the mobile pay at pump service, while 22% are neutral and 14% report being unsatisfied or very unsatisfied.
they rarely or never go in-store is because “items are too expensive/better prices at other stores.”
Using forecourt marketing to communicate value through pricing and promotions is a sure-fire bet for driving shoppers from the forecourt to the backcourt.
Digging deeper into the C-store IQ data reveals younger shoppers (millennials and generation Z) are more open to and influenced by forecourt communications than older shoppers (generation X and boomers).
• Video displays on pump: 10% vs. 5%
• Nozzle display ads: 14% vs. 10%
• Audio music feed: 9% vs. 2%
• Coupons dispensed at pump: 16% vs. 11%
• Mobile app promotions 22% vs. 14%
• Ability to order at pump 13% vs. 8%
• Ability to order by mobile 11% vs. 3%
Another reason shoppers tell us they “rarely or never go in-store” is because there are “no healthy items/avoiding junk food.” Forecourt communication tools offer another opportunity to break such misconceptions and showcase better-for-you options.
In addition, more than a quarter of all shoppers say they have been influenced by a loyalty program prompt to shop in-store when making a fuel stop. In fact, uptake of mobile app promotions increased significantly vs. last year.
With nearly half (46%) of shoppers visiting a c-gas operation to purchase gas, a significant increase over last year (likely due to new post-pandemic routines), incentivizing customers in-store is key for boosting the bottom line.
Once in-store, shoppers say that shelf signage, checkout counter signage and freestanding floor/aisle displays are the most effective at impacting purchase decisions.
Again, pricing and promotions are key to motivating value-driven customers to part with their hard-earned dollars. OCTANE
Canadian Tire and Petro-Canada to rebrand 19 retail fuel sites by year-end
Former Canadian Tire Gas+ retail fuel sites get a fresh look, while keeping close ties to parent company BY
TOM VENETIS
WHEN CANADIAN TIRE Corp. and PetroCanada announced they were coming together to enhance each other’s loyalty programs for a better customer experience, both companies also emphasized they would strive to improve the customer experience at the gas pump.
In turn, more than 200 Canadian Tire Gas+ retail fuel network sites are being rebranded to Petro-Canada stations, while still being under Canadian Tire ownership.
The first of these rebranded stations was unveiled in July at 1080 Victoria Street in Kitchener, Ont. The site features an updated and refreshed design for the forecourt, giving the operation a sleek, modern look. Nineteen more locations are planned to be rebranded by the end of 2024 and will feature that updated design.
“When you pull up, you’ll notice that the site has been refreshed with new canopy cladding and includes updated signage and elements to promote the Petro-Canada brand,” says Michael Magennis, senior vice-president, petroleum and strategic initiatives at Canadian Tire Corporation.
“The scope of the rebrands covers the frontcourt, which includes adding Petro-Canada branding to the canopy, street sign, store front, and fuel dispensers,” adds Shannon Wing, general manager, retail sales and operations for Petro-Canada, a Suncor business. “The updated canopy design is our exciting new look, which is being implemented at all new Petro-Canada locations.”
The sleek design also retains long-standing Petro-Canada elements, such as the curved profile along the sides and the Petro-Canada leaf, she adds: “Once sites are rebranded, guests will experience the consistent look and feel of a Petro-Canada.”
While the sites have a new name and look, Magennis emphasizes this does not mean that Canadian Tire has relinquished ownership of the sites. “The location, like all rebranded sites, remains owned and operated by Canadian Tire Corporation, which means customers can look forward to receiving the same great service from the same friendly team who are
excited to continue serving their community.”
Petro-Canada’s Wing explains the thinking behind the deal: “Our partnership with Canadian Tire Corporation brought together two trusted and iconic Canadian brands to provide more value and convenience to Canadians by expanding the Petro-Canada brand to more locations and offering more value through our linked loyalty programs.”
Indeed, Petro-Points and Triangle Rewards members can now earn rewards from both programs when visiting more than 1,800 PetroCanada and Gas+ locations across Canada, then redeem rewards on such things as free gas, car wash and convenience store items.
As well, members in both programs who link their Petro-Points and Triangle Rewards
accounts will be able to earn more rewards more quickly, including 20% more Petro-Points on every fuel purchase, according to Wing.
One interesting bit of news is that with the opening of the beverage alcohol sales in Ontario, several of the rebranded locations will soon be carrying beer, wine, cider and RTD drinks among its offerings at the convenience side of the operations.
“Customers can expect to see the same great selection of snacks and drinks at our rebranded sites,” says Magennis. “As we continue to evaluate the product assortment at our stations to ensure we are providing value and relevance for our customers, we will also offer wine and beer at some Ontario locations starting this fall.” OCTANE
This site in Kitchener, Ont. is the first of more than 200 Canadian Tire Gas+ retail fuel sites being rebranded as Petro-Canada stations, while still being owned by Canadian Tire
Doing more with less
Car wash drying systems are advancing to be quieter and more effective, while using less power
BY TOM VENETIS
WHEN IT COMES to the car wash, drying the car is just as important as washing the car. And while the innovations on the washing side of the business have in the last decade or more been quite dramatic—advancements in cleaners and coatings, giving cars a more complete and ‘eye-popping’ shine while also being more environmentally-friendly—the changes on the drying side have been more subtle.
It’s “more about the nuances,” says Arthur Stephens, president of National Carwash Solutions (NCS). “What we are seeing now are systems that are quieter and enhancements on the velocities and volumes of air that can be put out, and where it can be put on a vehicle, all the while being more energy efficient.”
Adjusting the volume
The push for quieter car wash dryers comes from several factors. Car wash operations tend to be noisy, with noise generated from vehicles (although with the adoption of electric vehicles this is becoming less of a factor), as well as the constant hum and clang of dryers, vacuum stations, rolling doors and moving brushes.
And that noise can be a problem if a car wash happens to be near homes and other businesses: No one wants a noisy neighbour. As well, such noise can be hazardous to the staff working at the car wash, as prolonged exposure can potentially impact a person’s hearing. So, it is not surprising that the manufacturers of such equipment have spent time and effort working to reduce the noise produced by car wash equipment.
None more so than dryer makers, who have worked diligently to make dryers that are more quiet, while at the same time not diminishing their effectiveness in drying a vehicle.
Saving electricity
Stephens said he spent several years developing what NCS has termed its Stealth Pred-
ator Drying System, an energy efficient, ultra quiet dryer system. “It is a powerful unit that is smaller than our earlier Stealth systems, but it can produce more air, more air velocity, is even quieter and uses less energy as well.”
Stephens likens the new Stealth Predator Dryers to Apple’s newest iPhone compared to a model several generations older.
Compared to other older dryer technologies being used right now by many car wash operations, the Stealth Predator can produce over 11,000 cubic feet per minute of air flow with a 10HP motor, while only producing some 65 decibels of noise. Most older dryer motors and systems produce up to 87 decibels. And because the Stealth can produce that much cubic feet per minute of air flow using its high-efficiency motor, it uses 20 to 30% less electricity.
That electrical savings should grab everyone’s attention.
“That is a big deal as a typical car can spend up to $20,000 a month on electricity,” Stephens adds.
Timing matters
Kyle Martin, a regional sales manager at Oasis Car Wash Systems, says that companies have also moved to creating dryer solutions that can be configured with different horse powered motors, or with multiple motors with different capacities. This allows car wash operations to have greater control over how much air is blown and where, and these motors are then coupled to controls that can adjust the timing of the motor’s operation.
“For example, you can have a dryer timer system which will tell a customer how long they have in the drying bay before the blowers shut off, or you can have a dryer shutoff kit where a set of optics monitor the vehicle and
if the vehicle leaves the bay before the allotted time, it will shut the motors off so as not to be running in an empty drying bay and thereby using electricity,” Martin says.
He adds that another feature becoming more common now is the use of ‘air knives’, designed to more precisely direct high-velocity air generated by a dryer system’s centrifugal blower. These can be positioned so that as a car passes them, or the knives are passed over and beside the vehicle, the air will be directed in such a manner as to remove water more effectively before the vehicle exits the drying bay. In this way, one can use less powerful motors, as the knives will more precisely and efficiently strip the water off the vehicle and leave it looking shiny and dry at the end of the wash cycle.
Oasis offers two dryer systems to meet a variety of car wash operator needs.
“Our GaleForce and GaleForce ST-Series dryers are our stand-alone, traditional drying systems for in-bay application,” Martin says. “They are designed for easy entrance and exit without fear of damage, offer a high volume of velocity and air flow, protection from aggressive car wash environments, are quiet and efficient running at 3,600 r.p.m. The enclosed motors and blower housings are constructed of high-density polyethylene and offer full car wash controller integration and programming.
“Our Eclipse dryer can be installed with our touch-free or soft-touch units and offers the ability to wash and dry two cars simultaneously. It is an automated dryer that is part of one long car wash bay (at least 60 ft.). When the wash is complete, the customer drives into the dryer bay, puts their vehicle in park, and the Eclipse dryer moves in both directions, drying the car.”
OCTANE
Today’s car wash dryer systems are quieter and more energy efficient, while innovations also ensure a more complete drying of the vehicles
NOVEMBER 2024
DEDICATED TO SHARING KNOWLEDGE AND BEST PRACTICES IN THE CARWASH INDUSTRY
Check out our upcoming webinars
We are excited to invite industry experts to share their knowledge and insights at our upcoming CARWACS Car Wash Education event, held as part of The Convenience U CARWACS Show.
Event Details:
Date: Tuesday, March 4, 2025 – 8:00 a.m. to 12:00 p.m.
Location: The International Centre, Mississauga Session Length: 30 minutes (25 minute talk, 5 minutes Q & A) Audience: Carwash owners, operators, and professionals from across the industry
In addition to live sessions, we are also looking for virtual speakers for our CCA Webinar Series, which offers a great platform to engage with our members throughout the year.
<<<<<< Follow the link in our QR code to register.
BOARD OF DIRECTORS - 2024/2025
PRESIDENT: Karen L. Smith - Valet Car Wash
Travis Braithwaite - ClearWater CarWash
Jason Hands - Parkland Fuels
Karla Hewitt - Suncor Energy Inc.
Michael Howe - WashLinks
Mike Jacques - National Car Wash Solutions
Michael Saunders - Mark VII Equipment
Rudy van Woerkom - Belvedere Technical Services
Matt Verity - Matt Verity Consulting
Tim Walker - Soapy Brushy
NATIONAL OFFICE
Heidi Loney Executive Director
Brynne Wrigley Director of Events
Our Contact Info
3228 South Service Road, Suite 109 Burlington, ON L7N 3H8 (905) 331-1768 office@canadiancarwash.ca
The Canadian Carwash Association is looking for Volunteers to work on the following committees**:
**Please note, you must be a CCA member in good standing to volunteer.
Membership Committee - Assist in the attraction and engagement of new members and participate in retaining existing members.
Programming Committee - Play a key role in shaping our events by brainstorming innovative ideas, and creating professional development opportunities for our members and identifying engaging speakers.
Carwash Toolkit Ad Hoc Committee - We're looking for enthusiastic volunteers to help us update our essential toolkit, last revised in 2012.
<<<<<< Follow the link in our QR code to register.
www canadiancarwash ca
CHEERS TO BOOSTING WINE SALES
THEFT PREVENTION STRATEGIES
SEASONAL CHOCOLATE TRENDS
Crime management: With shoplifting costing Canadian retailers a staggering $5 billion annually, convenience stores are on the front line of a growing theft crisis. Experts discuss security measures, including AI-enabled surveillance and loss prevention technology, to help operators protect their businesses and staff
A hidden gem: With signature cuisine from the Flaming Stove, fresh retail innovations, and now the introduction of beverage alcohol, find out what makes this familyowned Hasty Market in midtown Toronto is a must-visit for foodies and locals alike
Cheers to holiday wine sales: Experts chime in with top picks, trends to watch and insights into customer buying habits for the peak wine-buying season
The perfect pairing: From a foodservice perspective, adding beverage alcohol to the menu provides a valuable opportunity to meet customer needs and increase incremental sales
Foodservice Report: Foodvenience means any time is meal time
CSNC EDITORIAL ADVISORY BOARD
Comprised of leading retail executives and convenience operators, this volunteer group of industry champions offer advice, key insights and on-the-ground perspectives that serve as an invaluable resource to ensure content is relevant and meets the needs of the industry. Want to join? Reach out to Michelle Warren!
Robbie Broda, Little Short Stop Stores
Marc Goodman, 7-Eleven Canada
Leslie Gordon, Circle K
Laurie & Randy Ure, Ure’s Country
Costa Warwar (left) and Azmi Farah at the Flaming Stove takeout counter in their Toronto Hasty Market
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2024 WILL GO down as a milestone year for the channel, particularly in Ontario. There was no shortage of major news stories, from acquisitions (and potential acquisitions) to issues around inflation, regulatory upheaval on the tobacco front, the rise of zero-emission vehicles, the ubiquity of AI and, of course, the much anticipated, yet surprising, announcement that stores in Ontario could sell beverage alcohol as of September 5th (the news wasn’t so happy in Alberta, where the government nixed the idea).
We watched retailers, vendors and other stakeholders work incredibly hard to meet deadlines and make this a reality—congratulations! While it’s early days, anecdotally, participants tell us they are happy with the rollout, with many retailers reporting that sales of beer, wine, cider and RTD beverages are beyond expectations and that, as hoped, it’s driving foot traffic and lifting sales across other categories.
One of those areas is foodservice, and we are delighted to bring you our fifth annual Foodservice Issue. I remember writing about this topic back in 2019, with some naysayers lamenting that c-gas foodservice in Canada would never become a beacon like it is in the U.S. or Europe.
How things are changing: These days the focus on food is a cornerstone for major retailers across the country and a point of differentiation for savvy independent operators.
One such trailblazer is Azmi Farah who, with his brother-in-law and chef Costa Warwar, operate the Flaming Stove in the back of their Hasty Market store at Yonge and Davisville in Toronto. I popped in one day on the way home from work to experience firsthand what all the fuss is about and find out why this convenience store with takeout counter is a viral sensation. What I found (besides an amazing shawarma) is a story of reinvention: Now the business partners are at it again, reinventing their offering with a renovation to accommodate an impressive beverage alcohol set up—perfect for customers to grab and go along with their chicken shawarma, falafels and other inspired dishes.
Farah tells me beer, wine and other beverages were flying off the shelves Thanksgiving weekend and he’s not alone. I witnessed a huge lineup outside one c-store, as customers rallied to stock up at 10 p.m. Sunday to mitigate the LCBO being closed on Monday.
As we move into the holiday season, it will be interesting to see if the momentum continues and here’s hoping it does: With the Convenience Industry Council of Canada reporting that Ontario lost 25% of its rural stores in 2023, for many operators help can’t come fast enough.
While retailers say the margins leave something to be desired, the overarching goal is that beverage alcohol will offer convenience and choice to customers, while providing an important lifeline for those operating not only in rural areas, but also small towns, the suburbs and urban centres. Ideally, it’s the gift that keeps on giving year-round.
Speaking of gifts, as 2024 draws to a close, we thank you for trusting us to tell your stories, for sharing your expert insights, for supporting important awards programs, for partnering with us and for being part of the Convenience Store News Canada + OCTANE community. CSNC
Wishing you the very best of the season.
MICHELLE WARREN Editor & associate publisher
THE BUZZ
CROSS-CANADA ROUND-UP / PEOPLE / PLACES / NEWS & EVENTS
We asked Ontario retailers: How are sales of beverage alcohol going at your store?
17%
SALES AND FOOT TRAFFIC ARE AMAZING—COULDN’T BE HAPPIER!
50%
SLOW BUT STEADY—FEELING OPTIMISTIC 11%
DISAPPOINTING—BUT WE WILL STICK WITH IT FOR NOW 22% IT’S A
Sea salt is the most popular flavour in the North American savoury and salty snack market, followed by barbecue, cheddar cheese, chili and milk chocolate, according to Innova Market Insights.
The Convenience U CARWACS Show March 4 & 5, 2025: Toronto Future Leaders in Convenience + Car Wash Awards March 5, 2025: Toronto
Manpreet Hayer joins Centex Petroleum as business development and retail expansion specialist. She started in the business in 2013 as a manager at 7-Eleven in Vancouver, then moved into an area manager role in 2016.
Michael Helash is now director, key accounts, at Juul Labs. Based in Calgary, he joined Pratts as director of convenience and gas in March 2024, after more than 25 years with Rothmans, Benson & Hedges.
Dean Madill is director of foodservice and convenience at North Sun Energy. He spent close to eight years as a foodservice manager for Wilson Fuels.
Marc-Andre Martin is promoted to regional sales lead – Ontario at JTI-Macdonald Corp. He joined the business in 2005 and has held several increasingly progressive roles, most recently commercial strategy and planning lead.
Tia Natalia Medeiros is now district sales manager for Gordon Food Service – Canada. She joined the company in August after two years with Quebec-based 2.0 Food.
Paul Meyer moves into the role of manager, dealer sales & network operations at Cenovus Energy. He spent the last four years at McDougall Energy and before that Mac’s Convenience.
Cynthia Moscato is promoted to senior manager, brand & POP, Canada, for Alimentation Couche-Tard | Circle K The 2023 Future Leaders in Convenience + Car Wash winner and 2021 Star Women in Convenience winner joined the company in 2015 and her most recent role was senior marketing manager, Eastern Canada Division.
Gordon Small is promoted to category and shopper development manager at Nestlé Canada. He joined the company in 2016 and has held several increasingly progressive roles.
Kristin Valles is now account executive, route to market at Coca-Cola Canada Bottling Limited. Most recently, the 2022 Star Women in Convenience winner was with BG Fuels and before that, Greenergy. Valles also spent almost five years as a national category manager with Core-Mark International.
Eric Wallace moves into the role of manager, network and site planning with Parkland. He joined the company as manager of foodservice operations in 2021 after nearly two decades with Suncor.
1. Alex Miller, Alimentation CoucheTard’s new CEO, is cognisant of the past, focused on the future
2. Operational Excellence Column: Enhancing customer service and the importance of listening
3. Decoding Trends Column: What’s trending in snacks?
4. Big Picture Column: Product changes for the changing consumer
5. The Ozempic effect and what it means for the convenience channel
6. Build momentum in the lead up to Christmas, the biggest sales period for candy and chocolate
7. Beverage alcohol Q&A with Gabriel Moreau, VP, NielsenIQ
8. Q&A with Steam Whistle Brewing president Bromlyn Bethune
9. Alimentation Couche-Tard, Parkland challenge Health Canada nicotine pouch rules
10. Frito-Lay Canada CMO Jess Spaulding discusses scoring FIFA World Cup sponsorship
Lighting the way
Highlights from the 2024 Star Women in Convenience Awards Event
THE ROOM WAS filled with good vibes and energy, as the industry came together for a sold-out event to celebrate the 2024 Star Women in Convenience winners.
The seventh annual awards honoured a record-breaking 52 exceptional women from across Canada.
Nearly 400 attendees travelled from far and wide to the International Centre in Toronto on October 1st to champion the career achievements of their colleagues, clients, business partners and friends. As an added bonus, all former SWIC winners in attendance were invited to stand and recognized with a resounding round of applause–it was a lovely moment.
The morning kicked off with touching remarks from Marc Goodman, vice-president and general manager with 7-Eleven Canada, who introduced keynote speaker, Chantalle Butler, president of Molson Coors Canada: She celebrated the winners,
as well as the advent of beverage alcohol at convenience in Ontario. The audience also heard moving and authentic words from several key industry leaders and SWIC supporters, including Caroline Evans of JTI-Macdonald Corp., Shirley Mukerjea from PepsiCo. and Anne-Laure Coussot, who was with Mondelēz Canada.
Another highlight was the SWIC Winners Retail Panel, which included Caroline Bibeau, territory manager with Petro-Canada; Isabelle Jacques, owner/operator of La Station Ville Marie – Shell Voisin; Michele Lown vice-president of administration at INS Markets; and Maryline Vuillerod, director, dealer business with McDougall Energy.
The Convenience Stores News Canada team thanks everyone who nominated, attended and supported the event. Congratulations to all the winners! CSNC
Scan for full coverage of the event, including speaker highlights, panel insights and more photos.
BRONZE
SAMPLE
LANYARD BADGE BAG
TOP OPS
BY CHRIS DANIELS
Crime management
With shoplifting costing Canadian retailers a staggering $5 billion annually, convenience stores are on the front line of a growing theft crisis. Experts discuss security measures, including AI-enabled surveillance and loss prevention technology, to help operators protect their businesses and staff
FIVE BILLION DOLLARS. That is the staggering amount the Retail Council of Canada estimates shoplifting costs retailers every year. And while there is no breakdown by sector, theft is a massive problem for c-stores—and getting worse. In Winnipeg, 7-Eleven Canada this fall closed four of its 45 stores in the north end after 987 incidents of theft in the first quarter of 2024—close to the 1,098 total for all of 2023. One location, at Salter Street and Flora Avenue, calculated losses from customer theft of more than $323,000.
In September, Petro-Canada and 7-Eleven announced all customers must prepay for fuel at its sites nationwide—a new policy aimed at mitigating gas and dash. (No more filling up first and paying for fuel in-store alongside, say, your lottery purchase or morning cup of coffee.)
Subscribe to Google Alerts for convenience stores and expect your daily feed to be inundated with articles about thefts, often with weapons, at convenience stores of all sizes and ownership structures. From rural outposts to small towns, suburbs and city centres—operators across the country are on high alert.
Theft is on the rise
Stephen O’Keefe, president of Georgetown, Ont.-based Bottom Line Matters, a retail loss prevention advisory service, says customer theft has risen to levels retailers can no longer absorb in their product pricing. “Shrinkage in retail—the book value of your inventory versus the actual physical value—has increased,” he says. “We’ve been doing surveys about shrinkage over the past 35 to 40 years—it’s at an all-time high, both in Canada and the U.S.”
While other factors cause shrinkage— employee theft and paperwork errors, like mislabelling items or data-entry mistakes— customer thievery is very concerning for another reason. “Incidents of crime including armed robbery are being reported in higher numbers at c-stores and other retailers,” says O’Keefe.
Alcohol and cigarettes are targeted by organized crime groups, while he notes some c-stores in parts of the U.S. have had to lock up products like deodorant and toothpaste.
Employee and customer safety must be priority number one in dealing with this problem.
Proactive and predictive with tech
Fortunately, there are actions c-stores can take focused on detection and deterrence, not confrontation or apprehension. Some are simple practices (see sidebar). AI technology, meanwhile, is creating a new suite of smart strategies that don’t add pain points to the shopping experience (like asking an employee to unlock a hygiene product protected behind plexiglass).
Instead of being reactive forensic investigation tools, modern surveillance systems are being empowered today by AI to be proactive and predictive.
Security solutions provider Axis Communications, for instance, embeds video analytics software into video cameras to alert stores when a theft looks likely to take place. “If a person comes into a store and is spending an unusual amount of time in a high-value goods area, our cameras will detect that and send an alert to staff members and someone can come over and ask if the customer needs assistance,” says Jason Chiu, professional services group manager, Canada at Axis.
aggressive—you don’t want to turn off honest customers—both responses let a would-be thief know they’ve been noticed, a key deterrent to shoplifting.
Two-for-one solutions
AI-enabled anti-theft measures can seem expensive, particularly for independents with limited cash flow. However, Axis’ security solution features different analytic scenarios, including heat mapping that illustrates customer flow in store, as well as intelligence that can help inform merchandising and marketing decisions. A store can see its most valuable endcaps for brand awareness (through measurement of the percentage of shoppers who pass in front of it) and charge brands for this position accordingly. Or decide on promotional signage positions based on in-aisle dwell times.
“Retailers don’t need to view surveillance systems as a system with slow ROI in their expense sheet,” explains Chiu. “They can share the budget with marketing or operations, given they can drive further sales, improve customer experience, and enhance operational efficiency while also using the cameras to help reduce shrink from theft.”
Rather than over a PA system, which is disruptive to everyone in the store, the message is delivered to an employee via mobile or earpiece.
Alternatively, the alert can trigger a voice message over a nearby speaker that says, “We’ve noticed you might need some help and are sending someone over to assist you.” While he says the message shouldn’t be
License plate recognition
One in two people who commit a retail crime do so with a vehicle, reports Auror, a global retail crime intelligence and loss prevention platform whose clients in Canada include Walmart. With that in mind, it’s integrating license plate recognition (LPR) technology into stores’ existing video cameras and video management systems.
“Whether grocery, fuel or convenience, retailers can be alerted if a vehicle has a history of being associated with offending in their sites, or is linked to violent incidents,” explains Auror CEO Phil Thomson. “This
Jason Chiu, Axis
allows retailers to take appropriate actions, which can include informing law enforcement.”
In the case of fuel pumps, LPR tech allows sites to put a car on pre-pay only if that vehicle has been involved in a drive-off or fraud event previously. This avoids a blanket pre-pay policy, which impacts all customers, makes the service less convenient and can be very transactional rather than community focused.
In New Zealand and Australia, where Auror’s LPR platform has been widely adopted by gas stations and c-stores, crime in forecourts has plummeted by 70%. “So, stores are preventing the crime themselves with early alerts on known offenders before police even need to be involved,” says Thomson.
Reporting made easy
Auror has also a retail crime intelligence platform, enabling retailers to quickly report incidents of theft and produce detailed proper police reports directly and immediately to authorities. More than 3,000 law enforcement agencies worldwide use the platform, including police forces in major cities across Canada, with Toronto having the largest representation presently.
Thomson notes the platform addresses the fact that “less than 20% of retail crimes are reported to police globally. Traditionally, retailers have handled incidents internally with outdated methods like simple spreadsheets, pen and paper, or even photos of individuals taped to the cash register. We’re the digital pipe between retailers and police.”
This pipeline is especially critical in helping police connect the dots across different stores of repeat offenders, a group four times more likely to be aggressive or violent towards front-line workers.
7 SIMPLE STEPS TO DETER THEFT
“The most effective way to prevent thefts is to remove the opportunity for a crime to take place,” according to the Halton Regional Police Service in Ontario. HRPS was one of the first municipalities in Canada to establish a Retail Crime Unit, led by the late Superintendent Robert Gourley, who unexpectedly passed in August. Its Retail Crime Unit, which was recognized by the Retail Council of Canada with its 2024 prestigious Law Enforcement Recognition Award, recommends these low-cost tips:
1. Advertise against shoplifting and discourage loitering
2. Greet customers as they enter the store and provide them with the best customer service possible—shoplifters shun attention
3. Keep valuable merchandise away from store exits
4. Locate mirrors so all areas of the store can be seen a glance
5. Avoid tall display counters that obstruct views and avoid narrow, cluttered aisles
6. Have a well-lit store
7. Be extra alert during peak hours, store openings, closings and shift changes CSNC
Executing performance-driven category management has never been easier. Core-Mark’s smartstock® Category Management solutions program equips independent c-store retailers with the tools to compete with larger chains by delivering data-driven insights and strategic plan-o-grams. With more than 180 vendors and 4,000 guaranteed products, retailers can streamline product sales through detailed analysis of category sets, inventory management, product rotation, and shelf tag accuracy.
Core-Mark provides advanced expertise through real-time data analytics and tailored insights. Dedicated sales representatives partner with retailers, leveraging historical store performance and seasonal trends to drive smart business decisions. These efforts lead to effective merchandising strategies and plano-grams that enhance profits in key categories like candy, salty snacks, meat snacks, ice cream, beverages, and fresh foods.
Retailers participating in the SmartStock® Category Management Solutions Program in Canada have experienced greater operational efficiency, stronger sales performance, and increased profitability.
position your C-store as a top CoMpetitor in the ConvenienCe Market today! for more information on the smartstock® program, contact your Core-Mark s ales representative or visit Core-Mark.com.
Phil Thomson, Auror
CATEGORY CHECK
BY MICHELE SPONAGLE
Sweet success
Chocolate-obsessed Canadians push sales higher for convenience stores, as vendors innovate to meet consumers’ evolving needs
WHILE IT’S TRUE that most Canadians (about 60%) say they try to eat healthy, they want sweet indulgence, with chocolate ranking high on the list. It’s the most consumed confectionery in Canada. In fact, we are one of the top consumers of chocolate in the world. The numbers over the last seven years have been creeping higher. In 2023, the average Canadian ate 6.4 kg (the equivalent to 160 bars), according to data from the market research firm Mordor Intelligence.
As we head toward the holidays— Christmas, Valentine’s Day and Easter down the road, it’s prime time to look at the trends shaping chocolate, and most importantly, how to maximize c-store profits based on them. The good news for seasonal chocolate sales is that Canadians are prepared to spend more.
“As inflation is easing, consumers are not planning on cutting back as much as they had last year,” points out Nicole Pageot, market intelligence & strategy, seasonal confec -
tionery, Nestlé Canada. “Ultimately, emotional connection in seasons drives willingness to make the list, with favourite trusted brands driving choices.”
Data for Mordor Intelligence shows that sales of chocolates in convenience stores are anticipated to grow from 2022 levels by as much as 28.7% by 2026. That growth outpaces the overall chocolate business in Canada, growing at a CAGR of 6.23% for the forecast period of 2024-2030 to reach a total market size of US$5.24 billion. It’s confirmation that chocolate is big business and now is the time to maximize sales.
With so many types of chocolate available, the question c-store operators are asking is, “What should I stock?” For guidance, let’s follow the trends.
Big on value
Economic factors influence chocolate-buying behaviours, so many consumers are looking
for larger formats that offer value. For example, in November 2023, Reese’s Milk Chocolate King Size Peanut Butter Cups added a version with caramel to its roster.
Ernesto Rivera, associate manager corporate communications, Hershey Canada, says the Reese’s Caramel Big Cup has been a huge success in c-stores: It’s ranked as the number one innovation item, demonstrating strong consumer acceptance. It also achieved the number 10 position among all everyday chocolate items, “indicating its rapid rise to become a consumer favourite…. it’s ranked as the third fastest-turning king-size bar, showcasing its popularity and high sales velocity.”
Seize the trend: Super size your chocolate selections and offer them at a price point that attracts value-minded consumers. Create special promotions where buying two or three inspires customers to stock up when they see a good deal.
Think small
Health-conscious customers look for betterfor-you treats, but are aware of how much they consume. That has fuelled the popularity of smaller, portion-controlled formats, such as minis, bites, squares, and blocks.
Over the last five years, the number of snack occasions has increased significantly, with chocolate emerging as a top choice, notes May Zeibak, market intelligence & strategy manager, confectionery, Nestlé Canada. “Gen Z is the largest generation of snackers and they’re driving snacking trends. They want the brands they love served up in novel ways that fit their lifestyle. Convenience stores have become their go-to destination for discovering what’s new and exciting.”
Last year, Mondelēz International introduced in Canada the Cadbury Dairy Milk Gift Box, featuring individually wrapped treats. It was named the 2024 Product of the Year Canada winner in the chocolate category.
Seize the trend: Chocolate is often an impulse buy for consumers. Stock those small format sizes near your cash registers so they can grab and go at check-out time.
New and novel
Consumers certainly have their favourite go-to
chocolate brands and formats, but they will switch it up when something new captures their attention. U.S. data shows that flavour is a bigger driver for chocolate sales than price.
Peanut butter isn’t new, but it’s having its moment in the spotlight as a desirable sidekick to chocolate.
“One of the biggest trends we’re seeing in the chocolate category is the strong growth of peanut butter flavours,” says Ellen Thompson, general manager, Mars Wrigley Canada. “We’re continuing to invest in this flavour partition— one of the fastest growing in Canada—and expanding our offerings to meet consumer demand for familiar, yet indulgent experiences.”
Given the U.S. success of the company’s M&M’s Mega Peanut Butter, it bodes well to introduce that product in Canada.
Building on consumers’ love of all things peanut butter and chocolate, in 2025, Hershey Canada is launching Reese’s + Nougat, inspired by data that shows afternoon snacking is on the rise. The launch will be supported by a high-profile NBA partnership campaign.
Seize the trend: While you need to make sure those tried-and-true bestsellers are front and centre, mix it up by adding new formats
and chocolate flavours to your offerings.
Milk chocolate still rules for Canadians who prefer their selections to be on the sweeter side, but dark is coming on strong for its touted health benefits.
Some like it hot
Remember when everyone was losing their minds over hot chocolate bombs? It’s still a thing. Hot chocolate sales have a projected growth of 7.4% between 2023 and 2033. Perhaps that inspired Laura Second to jump into that market with its 3D Hot Chocolate Mixes, featuring cute-as-button miniature bears that turn a cup of hot milk into a tasty treat. And just in time for the holidays also comes Hershey’s Hot Chocolate Bomb with Mini Marshmallows.
Seize the trend: Especially during the colder winter months, c-stores can highlight their hot chocolate lineup, placing them on end aisles and high visibility spots. If your c-store has coffee and tea making capabilities, have instant hot chocolate mixes and chocolate bombs on hand for the grab-and-go customers.
Ellen Thompson
HIDDEN A
WITH INSPIRED CUISINE FROM THE FLAMING STOVE, FRESH RETAIL INNOVATIONS, AND NOW THE INTRODUCTION OF BEVERAGE ALCOHOL, THIS HASTY MARKET IN MIDTOWN TORONTO IS A MUST-VISIT FOR FOODIES AND LOCALS ALIKE
BY MICHELLE WARREN
PHOTOGRAPHY SUECH & BECK
A new enclosed space is desiged for baking the Flaming Stove’s signature saj bread
ACULINARY MUST-VISIT on TripAdvisor, number two on blogTO’s list of best shawarma in the city, a falafel bowl celebrated by the foodies at Toronto Life, the Flaming Stove, an unassuming take-out counter tucked at the back of a Hasty Market at Yonge and Davisville, is the ultimate convenience foodservice success story.
Since store owner Azmi Farah (brother of Hasty Market founder, Joe Farah) partnered with chef Costa Warwar (his brother-in-law) to introduce takeout food 14 years ago, their store has become a destination for affordable, high-quality Mediterranean and Middle Eastern cuisine. Known for its signature chicken shawarma and falafels wrapped in made-in-house saj bread, Flaming Stove built its reputation by adapting and evolving its menu, which now includes an array of fresh salads, pastries, samosas and beautifully presented better-for-you grab-and-go prepared food options that put the humble roller dog to shame.
Competing with food
It all started with Farah looking for a way to differentiate. Up until 2012, half of the store was a laundromat, and they operated a traditional convenience store in the other half.
“We had a competitor that moved in behind us. So, we thought, why not? We’ll expand as well,” recalls Farah of the decision to build a kitchen and get into foodservice to compete and grow.
For Warwar it was the opportunity for a fresh start. After working on the retail side of the family business, he was looking for a creative outlet and decided to go back to school to train as a chef.
The Flaming Stove wasn’t an immediate hit, however. In fact, it floundered and went through several iterations.
“We knew we wanted something different, but it took a long time to figure out,” Farah recalls. “We kept changing the menu, then tweaking it until we got to the final menu that we have right now, with the bread—that was one of the most important parts.”
Warwar calls it “a journey of trials and errors,” explaining that they tried various formats and foods.
At one point they experimented by offering different types of cuisine on different days, but soon found that when they did shawarma and falafel wrapped in their now-famous saj bread, they began generating lineups; from there, the vision took shape.
“In the beginning, it was more for grab and go, and just for the lunch crowd because we had a lot of offices next to us,” Warwar recalls. “But we kept an eye on what the customers were buying. And as we developed the understanding of what they were looking for, which is more healthier choices, things that are more on-the-go, we started going back to our roots with Mediterranean Middle Eastern food.”
Soon, the foodservice offering completely changed the business, driving unprecedented foot traffic and sales. It started with a handful of positive reviews from food bloggers and grew from there.
“Everybody was talking about how you come in and it’s like a discovery, you’re discovering something amazing hiding in the back of a convenience store,” says Farah, adding that with word of mouth propelled by social media, followed by a few profiles in mainstream media, they became a viral sensation. “It was a dream, and the food sold itself, we didn’t have to advertise or do any marketing.”
It’s not unusual to see 15, 20, even 30 people lined up at the food counter at lunch time. During a recent visit, CSNC observed a group of men, friends, jostling each other and rubbing their hands in gleeful anticipation, as they watched their shawarmas being assembled.
“This place is a hidden gem–I have been coming here for 10 years. In my opinion it’s the best shawarma in the city,” one customer told CSNC. Another explained that even after moving out of the neighbourhood, he still makes the trip back every few weeks to visit his favourite lunch destination.
Serving a diverse community
After 14 years, as the city and neighbourhood evolve, with new condos springing up and a more diverse demographic moving in, people continue to discover this hidden gem tucked away at the back of a convenience store.
Farah works hard to ensure the store evolves, too, meeting the changing needs and tastes of its community.
“We try to be unique in several areas,” he says. “We started adding different ethnic foods that are now becoming mainstream, like Korean noodles and kimchi, and expanded that. We started getting into European chocolates and cookies that are well known by Europeans, but not as mainstream here. And, we have a section for our Yugoslavian community. As well we added some Southeast Asian snacks that sell really well…. People tell me, hey, try this, and we do. And the best thing about owning your own place is you don’t need a head office approval. I can approve it on the spot and get it the next day for delivery.”
His is a unique ownership model within the Hasty Market group; while Farah benefits from some of the retail chain’s resources, this
is an independent operation. Farah didn’t set out to get into the convenience business. But, after he graduated university in the 1980s to a lukewarm job market, joining the family business in Hamilton, Ont, and working with his brother, who he calls his best friend, was a natural segue.
Farah eventually migrated to Toronto and opened the Davisville store, where he’s found listening to customers’ feedback and being willing to experiment, then adapt accordingly, is a recipe for success.
Warwar observes that they are meeting the needs of a new era of customers, who want healthy meal options. “We are busy people. I love cooking, but I don’t have time to cook at home all the time. I think that people recognize that what we do here we do from scratch, and it works for their budget and for their health sensibility.”
Welcoming beverage alcohol
Now, with the advent of beverage alcohol in Ontario, it’s time for the business to adapt again. This time it involves a store makeover designed to accommodate lineups at the food counter and encourage visitors to pick a cold beer, RTD cocktail, cider or bottle of wine to enjoy with their take-out meal.
During a recent visit, Farah gave CSNC a tour and spoke about the vision for the 5,000sq.-ft. space.
“We’ve been operating like this for several years and I think a store should be renovated within 10 years,” he explains. “A facelift is good and because this industry is changing quite a bit, we need to keep up—improve the service, improve automation, the equipment. It’s because of the neighborhood, too—it’s a nice area and we wanted to reflect that here.”
Up front, near the window to catch the eyes
of passersby, is the store’s new beverage alcohol section, which is cleverly cordoned off with glass walls and a door so that staff in the 24/7 store can efficiently cut off sales at 11 p.m., as stipulated by the province.
“We wanted to build a nice area where people come in and browse so we did the glass enclosure, which is easy to lock, but at the same time, it still looks good and people are drawn to it,” says Farah. “[Beverage alcohol] is an extremely important addition to our business and I hope, later on, we can allow people to sit outside and enjoy a drink with their food.”
He’s referring to a simple outdoor seating area where tables fill up, especially during the busy lunch hour, with people enjoying their takeout shawarma and falafel sandwiches. Foot traffic surges again between 5 p.m. and 7 p.m., with customers stopping by for essentials or to pick up dinner on their way home from work.
The beverage alcohol business is booming. The store has a well-curated selection that’s a hit with customers, new and old. They were well stocked going into the Thanksgiving weekend and sold more than expected. Farah says they are learning as they go and now have a system in place for ordering to ensure that the shelves are ready for weekend surges.
Investing for growth
The renovation also includes a new storage room (necessary for the beverage alcohol category), fresh fixtures and shelving for groceries; as well as an enclosed oven area for baking Warwar’s famous saj flatbread, which has become so popular they’re now selling it as a product until itself, the perfect pairing with his in-house hummus. [Go online via the QR code for a video of Warwar making saj bread.]
The partners are big believers in investing
FROM THE LEFT: Customers eat with their eyes first, says chef Costa Warwar of the colourful and well-presented items on the grab-and-go menu; Warwar carving Flaming Stove’s famous shawarma; Food is prepared fresh in the store’s small kitchen; Azmi Farah showcases the store’s new beverage alcohol section, which is surrounded by glass to entice customers visually from 7 a.m. to 11 p.m., while keeping the space secure during off hours
in the business and changing things up (Farah estimates they buy new foodservice equipment every three or four years, shopping around for the best prices).
Although the operation has a stellar foodservice manager and several dedicated staff, Farah and Warwar are very hands-on: To watch the duo in action, constantly straightening products on the shelves or advising employees about food presentation, is to witness pride and passion in action.
You can find Farah on-site six days a week, working on the business with incremental improvements designed to keep those who live in the neighbourhood, as well as nearby office workers, coming back for more: “It’s about innovation, plus we have a great community and that does the advertising for us.”
While this is very much a community convenience store, where people can pop in for staples, a treat and a bite to eat, it’s also a destination for foodies, who travel from far and wide to “discover” this hidden gem in the heart of Canada’s largest city. CSNC
More exclusive photos and videos online. Visit CCentral.ca or scan the QR code
CHEERS TO HOLIDAY WINE SALES
Experts chime in with top picks, trends to watch and insights into customer buying habits for the peak wine-buying season
BY MICHELE SPONAGLE
WITH CONVENIENCE STORES ramping up the selling of beer, wine and ready-to-drink cocktails, ’tis the season to think about prepping for the holidays—prime time for wine sales. December is the highest revenue month of the year for wine sales with consumers willing to spend 10% more on a bottle versus January to September.
Though wine sales fell overall for 2022/2023 by 3%, according to Statistics Canada, there are reasons to feel jolly. Sparkling wines rose by almost 6%, while white wines increased by 3.8%. Rosés slipped 2.7% from its record high the previous year and reds lost 2.5% in sales after peaking during COVID. Red still dominates—the choice of 52% of wine-buying Canadians, followed by white (33%).
Looking ahead to the holidays, CSNC reached out to some top experts for their best advice on selling, promoting and stocking wine. Here’s what they shared:
SUZANNE
GARDINER,
GENERAL MANAGER, COMMERCIAL OPERATIONS, MARK ANTHONY GROUP
“Older consumers (boomers) tend to be loyal to their go-to, well-known big brands, while younger, as well as established and new wine drinkers, are more open to exploration. Millennial and younger consumers often seek wines they have seen on social media through advertising or with celebrity endorsements. Brands with attractive, photo-worthy packaging also appeal to this demographic.”
STOCK TIPS Gardiner says that convenience stores’ wine sales will be more about the convenience of consumers being able to find their favourite brands than it will be about exploration, so listing the top selling and highest awareness brands is likely the best strategy. Mark Anthony’s top-selling import wine brands with high-awareness include, Josh Cellars Cabernet Sauvignon, Josh Cellars Chardonnay, Beringer Main & Vine Pinot Grigio, Wolf Blass Yellow Label Shiraz, Barefoot Cellars Pinot Grigio, Merlot and Moscato, Freixenet Cordon Negro and Mionetto Prestige Prosecco.
SAVVY PROMOTION Cross promotions with other, non-alcoholic products in the store are a great way to promote wine. White wines with popcorn or salty snacks and red wines with chocolate are successful examples. Take advantage of what suppliers can offer, like high-res digital bottle shots to use for in-store signage. Placing “We Sell Wine” signs outside and inside of c-stores is a good way to inform consumers.
WHAT’S NEW Must stocks include Josh Cellars Seaswept (a Pinot Grigio and Sauvignon Blanc blend), Vista Point Pinot Grigio and Quarisa Johnny Q Shiraz.
BUYING INSIGHTS Over 60% of wine purchases are impulse buys, so wine should be merchandised in a high-pass, high-pause area of the store. As Gardiner notes: “Once wine is in a consumer’s basket, the overall basket size can increase as much as 30% as consumers seek pairing options for occasions.”
“Convenience store customers are looking for big recognizable brands that they have experience with in the past. The consumption occasion is likely within an hour of purchase so keep white, rosé and sparkling wines chilled for this reason.”
STOCK TIPS Consider focusing on more premium wines (above $15) during the holidays when consumers tend to spend more. Top picks include Tom Gore Cabernet Sauvignon, Jackson-Triggs Sparkling Reserve VQA and Inniskillin Late Autumn Riesling VQA.
SAVVY PROMOTION C-stores should think about seasonality. Red and white wines sales stay fairly static year-round; however, there’s a jump over summer for rosé. During the holidays, sales of sparkling wines increase substantially. Companies can support their efforts
Suzanne Gardiner
Nathan O’Brien
SPECIAL REPORT
by providing category insights on top selling wines, seasonal trends and food pairing recommendations.
WHAT’S NEW Think big with 3 litre formats, like Jackson-Triggs Proprietors’ Selection Pinot Grigio and Cabernet Sauvignon. They’re value priced at $39.95.
TREND WATCH Better for you or lower sugar wines are in great demand. Brands, like Bask with its 0g of sugar per serving, have been hugely popular already in convenience store channels.
BUYING INSIGHTS Shoppers looking to make a quick decision are likely to gravitate towards a brand or SKU they’ve purchased before. Carrying recognizable brands is the best plan.
STEPHEN MITCHELL
, PRESIDENT, SPRUCEWOOD SHORES ESTATE WINERY
“We have been receiving a lot of interest from convenience store operators,” he says. “Many are excited about the sales they are already seeing in their stores. Many like the direct delivery option that small Ontario suppliers are providing since it’s provided by the supplier at no extra cost to the store.”
STOCK TIPS Ensure popular varietal coverage—Cabernet Sauvignon, Pinot Grigio, Sauvignon Blanc and Merlot. Remember shelf space rules and include VQA products and craft local producers. When selecting, choose producers who operate their business close to your location for increased customer familiarity.
SAVVY PROMOTION “A lot of rules have been relaxed, which will be helpful,” says Mitchell. “Cross promote with paired snacks. Work with suppliers that come into your stores. Ask your supplier for pointof-sale materials, like stands or shelf talkers to introduce products.”
WHAT’S NEW Perfect for the holidays, the best-selling Warm N Cozy mulled wine is premade in the bottle. Customers can simply pour, heat and enjoy. Another standout is the beautifully crafted Beach Glass Wine series (red—Cab Franc, white—Chardonnay/ Riesling) and rosé), ideal for gifting.
TREND WATCH Lower alcohol, white wines, lighter red wines and different pack sizes (small bottles, cans, or boxes) are all growing trends in wine right now.
DANIEL SPECK, CO-OWNER, SENIOR VICE-PRESIDENT, SALES, HENRY OF PELHAM FAMILY ESTATE WINERY
“Local is a hot trend. At least 40% of a convenience store’s shelves should have Ontario grown wine. The only way to be sure is to look for the VQA logo, or terms like ‘Ontario’ or ‘Niagara Peninsula’ on the label. Sustainability is also trending. Ontario wineries are leading in this space.”
STOCK TIPS Choose VQA Ontario wineries, like Henry of Pelham (also makers of the popular Family Tree and House Wine Co. brands). Speck says c-stores should stock top-selling Ontario grape varieties, like Pinot Grigio, Chardonnay, Sauvignon Blanc and Riesling for whites and reds, such as Baco Noir, Cabernet-Merlot and Pinot Noir.
BUYING INSIGHTS Speck says his winery is learning what customers want and will buy at convenience stores in real time. “What we are seeing initially is that brand matters a lot and there’s room for higher price points, probably up to about $20. And that means better margins for stores.” Sparkling wine is a must stock, with Speck noting that 40% of sales happen in the last two months of the year.
WHAT’S NEW Henry of Pelham Sparkling Wine is ideal for holiday toasts or for mixing in an Aperol Spritz. Put this sparkling wine, or another top pick like Cuvée Catharine Rosé Brut, with the components of popular cocktails together on a shelf, Speck suggests. Place near soda water (for Aperol Spritz) or orange juice for Mimosas.
TREND WATCH VQA Ontario red wines are hot, especially Baco Noir. Sparkling wine is also having a moment as a mixer in cocktails.
PETER ZIELINSKI, ONTARIO SALES MANAGER, ANDREW PELLER WINERY
“There is a lot of experimentation across brands in the wine category. We see this through sales in other retail channels. However, when in a grab & go situation, like convenience, it is good to have trusted brands on your shelf that speak to quality.”
STOCK TIPS Zielinski suggests stocking Ontario Sauvignon Blanc, Chardonnay, or Riesling. “Ontario wineries produce terrific wines from each of these grapes and they complement both turkey and fish.” Top picks: Wayne Gretzky Riesling and Peller Estates Chardonnay.
SAVVY PROMOTION Make wines easy to find and communicate offers clearly. C-stores could use signage like, “Goes well with turkey” to help consumers with pairing decisions. Suppliers can lend support by providing wine knowledge, pairing recommendations and training staff.
WHAT’S NEW This year, Andrew Peller features its Honest Lot wines that have zero grams of sugar per serving. Zielinski says they’re “practically flying off the shelves.”
BUYING INSIGHTS “Through some early sales results, we’ve found customers choosing wine based on price, package format and occasion,” he says. “It’s important to have products that meet those needs, as is having value-priced products, especially for customers making impulse purchases.” CSNC
Daniel Speck
Peter Zielinski
Stephen Mitchell
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While Beer has been accessible in other provinces for years, Beer is officially here in convenience stores in Ontario, starting September 5, 2024.
Canadians are seeking for a healthier lifestyle. In the Beer category, total beer volume has declined year over year, however the category has seen a surge in lighter options. The Above Premium segment continues to grow, lead by shoppers searching for these alternatives. In total beverage alcohol, beer remains the highest household penetration rate amongst cider, coolers, wine, and spirits. Along with penetration rate, Beer in 2024 has on average the highest servings per drinker
Shoppers stopping into convenience stores to purchase beer typically also buy cigarettes, chips, soft drinks, and energy drinks. Beer becomes a destination for convenience stores, with each basket per trip including beer is 20% higher than the average convenience store without beer.
BEER HAS THE HIGHEST PENETRATION IN TOTAL BEVERAGE ALCOHOL
BEER HAS THE HIGHEST SERVINGS PER DRINKER TOTAL BEVERAGE ALCOHOL
BEERS TRENDING UPWARDS
Source: IPSOS ACT CANADA
CANDY & NOVELTY ITEMS
Canadians are increasingly seeking moments of indulgence and excitement in their daily lives, turning to Candy and Novelty Candy items as a source of joy and comfort. As consumer preferences evolve, the demand for unique and innovative candy products is on the rise.
A significant portion of Canadian consumers regularly purchase Candy and Novelty items, viewing them as essential treats for themselves or as gifts. This trend highlights the growing importance of the Candy and Novelty category in driving impulse sales and profit growth in the convenience and retail sectors.
The market continues to expand, offering consumers a wide variety of choices in flavour, format, and experience (gummies, sour candies, novelty items, and more). Product innovation, combined with the desire for both nostalgia and new experiences, will continue to fuel the growth of the Candy and Novelty sectors in Canada.
The Candy/Novelty category thrives on variety, offering consumers a wide range of options from classic candies to innovative novelty items that cater to different tastes and occasions. Products that blend nostalgic flavours with contemporary twists are resonating well with consumers, creating a balance between comfort and excitement. Candy and Novelty items are often purchased as small indulgences, making them a key driver of impulse buys and incremental sales.
VAST MAJORITY OF CANADA SHOPPERS BUY CANDY OR GUM
A GROWING TREND: CONVENIENCE SHOPPERS SEEK OUT NEW CANDY AND CHOCOLATE
Over One Third of Canada Convenience Store Shoppers Bought Candy in the Previous Month
90% of Canada shoppers report purchasing a candy or gum product in a typical month.
Source: Convenience Store News CanadaC-StoreIQ 2024.
In 2024, 35% of Canada convenience store shoppers purchased candy in the previous month, a significant increase vs. 2023 (32%).
Source: Convenience Store News CanadaC-StoreIQ 2024.
WHY CANADA CONVENIENCE SHOPPERS MAKE IMPULSE PURCHASES
The #1 reason Canada convenience shoppers cite for a recent impulse purchase is “to treat myself”; 42% made an unplanned purchase for this reason vs. 27% that made an unplanned purchase because it was “on sale.”
TREAT MYSELF
TOP REASONS
Sources: Convenience Store News Canada - C-StoreIQ 2024.
Almost 1 in 5 (18%) of convenience store shoppers specifically seek out new candy and chocolate when considering new products to purchase.
Source: Convenience Store News CanadaC-StoreIQ 2024.
TOTAL SALES IN CANDY & GUM
Total NCC* sales in the C&G channel last 52 weeks (ending May 18, 2024) was $160M.
*NCC: Non Chocolate Confections include bagged candy, novelty, pops, pressed candy, fruit chews and edible entertainment products
Sources: Convenience Store News Canada - C-StoreIQ 2024; NeilsonIQ, week ending May 18, 2024.
A family-owned business with more than 5,700 diverse employees coast to coast, we operate in every province through more than 50 sales and distribution centres and five manufacturing facilities. Our Vision is to be the Greatest Bottling Company Built by the Best People and our Daily Mission is to build a better future and deliver optimism to our employees, customers, consumers and communities. We have close, local connections with the communities in which we operate. We proudly make, distribute, merchandise, and sell the most loved beverages Canadians enjoy. We are determined to make a positive difference in our local communities and responsibly manage our footprint while we build a multi-generational business that is focused on the future.
COLD BEVERAGES
NON-ALCOHOLIC READY-TO-DRINK (NARTD)
Cold beverages are a key segment at Gas & Convenience. An important driver of in-store sales and shopper traffic, the broad interaction across categories and occasions is vital to helping build baskets at the channel
• Non-Alcoholic Ready-To-Drink (NARTD) Beverages are a key component to C&G success:
Cold Beverages are the 2nd largest category in C&G (after General Merch) contributing $1.2B in sales in the last 52 Weeks and providing 15% of all in-store sales.1
NARTD drives the most In-Store trips to the channel with 135.9M Trips. 2
• NARTD Overindexes in C&G (22.3 $ Shr3) with 3.9x the importance to Beverage dollars vs Total Scanned Sales (5.7 $ Shr1).
• Purchases of NARTD Occasions at C&G heavily skew towards Meals-at-Home (Lunch/Dinner) and Relaxing/Screentime4 – capturing the majority of day parts.
11% of baskets with Alcohol contain a NARTD2 – meet all your shoppers’ beverage needs by ensuring a strong NARTD offering to complement and grow your Alcohol baskets.
• Energy, Carbonated Soft Drinks, and Isotonics make up 78.5% of NARTD $ sales5 at C&G and will be instrumental to driving both dollars and units.
Sources: 1 Nielsen MarketTrack; Nat’l C&G; Total Tracked Sales; L52W to June 29, 2024
2 Numerator; Nat’l C&G; Projected Trips; L52W to Aug 11, 2024
3 Nielsen MarketTrack; Nat’l C&G; NARTD; L52W to June 29, 2024
4 BEACH Occasions Dashboard Canada Small Store (excl Alc) ; Rolling 12MMT December ‘2023
5 Nielsen MarketTrack; Nat’l C&G; NARTD Categories; L52W to Aug 20, 2024 vs L52W 2YA
Source: BEACH Occasions Dashboard SMALL STORE (excludes Alcoholic drinks and Tap water)
BEACH Proprietary Survey (Canada) • Rolling 12MMT December ‘2023
Innovation is delivering 39% of category dollar growth in Canada! 2
Dedicated sampling, retailer & media support to disrupt in market And drive excitement within the set!
PROTEIN SNACKS
Canadians are turning to snacks with protein in their quest for healthier food options.3
Snacking continues to increase in frequency and importance
• With increased focus on satisfying daily nutritional priorities, Canadians are turning to snacks with protein in their quest for healthier food options2
• 46% of Canadian consumers agree that they can’t get enough protein without animal meat1.
Product Innovation is driving growth of the Meat Snack category
• Loyal Jerky consumers continue to indulge in more of their favourite brand when it is offered in bold new flavours, but product innovation is critical to attract new consumers to the Meat Snack category, driving trial and purchase incidence.
Disrupt the shopping trip to drive purchase incidence
• By merchandising top performing items and innovative new items with multiple points of availability, retailers can grow sales of core jerky flavours and drive trial of new and trendy protein snack solutions.
Trends in product innovation, coupled with consumers’ focus on prioritizing nutritional snacking, will continue to fuel the growth of Meat Snacks in Canada.
CONTINUES TO GROW IN IMPORTANCE
PROTEIN
When eyeing snacks at the store, consumers cite protein as the most important attribute. An overwhelming 79% of consumers admit it’s more critical than ever for protein to take center stage
Sources: 1. Mintel, Future of Animal Proteins, 2024; 2. Healthy Hits the Spot, Canadian Grocer, Sept 9,2021 3. Mintel snacking motivations, 2024.
Source: Mintel Salty Snacks Report, Feb 27, 2024.
Source: NielsenIQ MarketTrack. National All Channels. Total Meat Snacks Trended sales L52W period ending July 13, 2024. * Projected Sales.
The RTD category continues to grow in volume year over year. Similar to Beer, more and more Canadians are seeking for healthier options, turning to ReadyTo-Drink beverages. Now that the RTD segment has existed for a few years, Seltzers/Soda make up 38% of the RTD category, with coolers, Iced Teas, Cocktails, Caesars, and all others, making up the rest of the category. While Seltzers/Soda comprise the greatest proportion of RTDs, it has recently declined slightly in proportion of the total, while Cocktails and Iced Teas are increasing their proportion of RTDs. The category has also seen 8% growth in household penetration from 2019 to 2024 from 16% to 24%.
TOTAL RTD VOLUME IS GROWING RTD PENETRATION HAS SEEN GROWTH SINCE 2019 Volume In HL Penetration (% Drinkers)
SELTZERS COMPRISE THE GREATEST PROPORTION OF RTDS, but have declined recently in proportion of total, while Cocktails and Iced Teas have increased their proportion of RTDs
Cooler Seltzer/Soda % of Total RTD Iced Tea
All Other Caesar Cocktail (without Seltzer/Soda)
Source: ACD (Association of Canadian Distillers), Beer Canada Market Share Data, Provincial Point-of Sale Data Sources
Source: ACD (Association of Canadian Distillers), Beer Canada Market Share Data, Provincial Point-of Sale Data Sources
Source: IPSOS ACT CANADA
YOUR NEW PRODUCT LAUNCH
The monthly New on Shelf e-newsletter features products carefully selected by our editors, as well as sponsored product placement.
From confection to snacks, beverages and more, we’re spotlighting product innovation.
Sponsored products will:
• be featured in our New on Shelf enewsletter – you choose the date
• live on ccentral.ca- so retailers have access 24/7
• be promoted through brand social channels
Specifications
• 1 product shot (655 x 368, 1MB, JPG file)
• 1 product write-up (50-75 words)
• Click-through URL featuring the product
Contact your sales consultant to spotlight your product!
OPERATIONAL EXCELLENCE
BY WENDY KADLOVSKI
Enhance customer service by listening
The first step is training and empowering customer service representatives to actively engage with customers and solicit their feedback
CUSTOMER SERVICE IS not just about addressing inquiries and resolving issues; it is equally about listening to customer feedback. A recent interaction I observed between a customer and a customer service representative (CSR) highlighted this crucial aspect.
During the conversation, the CSR informed the customer that he could have used a promotional code for a significant discount on his online order. The customer quickly countered that he had found the website too cumbersome to navigate and that is why he chose to attend the store in person. Rather than exploring the customer’s concerns, the CSR proudly declared that she had created the website and that it was perfect, effectively shutting down the dialogue. This missed opportunity could have provided valuable insights that organizations typically seek through surveys and focus groups. Do not miss out on this valuable information; capture it!
It’s essential to recognize that no matter how well we believe a product or service is designed, if customers struggle with it, their perceptions will differ from ours. Imagine if the CSR had asked, “What improvements would you suggest for our website?” This simple question could have sparked a constructive dialogue, allowing the CSR to understand the customer’s experience better. Listening is a vital communication skill, and both parties would have benefited from a more open exchange. The customer, taken aback by the CSR’s initial defensiveness, likely felt discouraged from sharing further feedback—and perhaps even from returning as a customer. No one enjoys being dismissed, especially in a customer-service scenario.
Capturing customer insights
As operators, we face the challenge of capturing the valuable information that customers provide during interactions. The first step is training CSRs to actively engage with customers and solicit their feedback. Empowering CSRs to ask questions like,
“What do you think of our new coffee blend?” can lead to more meaningful interactions. It’s crucial that they are prepared for honest feedback and have appropriate responses ready. For instance, they might ask, “Would you prefer a stronger or milder blend?” This not only shows that you value their input but also encourages further communication. Further, engaging the CSR in this manner allows them to feel like they are engaged in the business. A survey by NACS indicated that employees feel that they are not heard by their leadership. By engaging the employees in capturing these customer insights, the employees will understand more clearly why decisions are made and feel that their perspectives are important.
Responding to customer needs
Additionally, documenting requests for products or services in the feedback log can highlight trends that warrant investigation. If multiple customers express interest in a particular item, it’s worth considering adding it to your offerings. Customers appreciate a store that recognizes and caters to their preferences, which reinforces their loyalty.
Effective feedback channels
Customer feedback must be effectively relayed to managers or operators to ensure it results in actionable insights. One practical solution is to maintain a customer comment logbook
where CSRs can document feedback—both positive and constructive. This log should be regularly reviewed by management, as timely responses are essential. Feedback from a week ago may already be outdated, so addressing concerns promptly is crucial.
When CSRs and customers see their feedback taken seriously, it fosters a culture of open communication. Increased dialogue will enable your business to better meet customer needs, ultimately boosting sales and enhancing customer loyalty. Therefore, an effective customer feedback system can lead to increased profitability.
In conclusion, an effective customer service approach involves not just responding to inquiries but actively listening to feedback. By fostering open communication, training CSRs to engage meaningfully, and implementing systematic feedback mechanisms, businesses can enhance their customer service experience, drive customer satisfaction, and ultimately improve their bottom line. CSNC
Wendy Kadlovski’s professional journey is a dynamic blend of roles in the oil and gas industry, entrepreneurial ventures, and academic leadership. She serves as a Professor at the Seneca College School of Business and is also the principal at Wise Strategic Management, a consultancy specializing in operational excellence and change management.
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FOODSERVICE FUNDAMENTALS
BY JEFF DOVER
The perfect pairing
From a foodservice perspective, adding beverage alcohol to the menu provides a valuable opportunity to meet customer needs and increase incremental sales
ALCOHOL IS THE most exciting new product category for convenience stores in my lifetime.
With convenience stores in Ontario now selling beer, cider, wine and ready-to-drink alcoholic beverages, there’s huge potential to significantly increase revenues and foot traffic, not to mention provide additional convenience to consumers.
Such revenues are welcome news for convenience operators, many of whom have been struggling financially since the pandemic.
As an added benefit, alcohol sales at convenience stores will require little, if any, advertising and could provide additional peripheral and impulse sales in other product categories.
Combos and promos
From a foodservice perspective; beer, wine and ready-to-drink beverages provide a myriad of options with respect to combination specials. For example, common menu items in convenience stores are pizza and chicken wings, both of which pair well with beer. The addition of new beverages allows for more combination and promotion opportunities.
The primary market indicator for foodservice sales and traffic is consumer confidence, which is relatively low in Ontario at the moment.
As a result, consumers are dining out less and, when they do, ordering less.
However, convenience stores with foodservice have a built-in cost advantage over quick-service restaurants (as discussed in many of my previous columns). The availability of alcohol sales adds to this advantage, allowing convenience stores to provide takeout meals that include an adult beverage, whereas many quick-service restaurants are not licensed. Plus, c-stores can likely do so at a lower price than many licensed restaurants.
Product lines can be rotated and tailored to local consumer preferences. Many ready-todrink alcoholic beverages and craft beers are increasing in popularity and a rotating stock of unique items could provide an advantage over licensed restaurants.
Liability factor
The major challenge with selling alcohol is the liability involved. In Ontario, like many jurisdictions, anyone who is involved in serving alcohol may be held responsible for injuries or other damages that occur in cases where alcohol impairment is considered a causal factor: Ensure your insurance covers your store selling this new category.
Convenience stores are; however, experienced with respect to regulated sales as most stock tobacco and lottery products. Cashiers will be required to have one of the Alcohol and Gaming Commission of Ontario (AGCO)
liquor retail training certifications, which means they will be trained in effective and safe alcohol service. Like tobacco, service to minors could result in fines and restricted ability to sell the products. The difference; however, is the liability if there is an accident because someone is overserved. Such liability could result in financial challenges that would be extremely difficult to overcome.
Like many industries, labour recruitment and retention at convenience stores is a challenge. One must be 18 years of age or older to sell alcohol in Ontario. This restriction reduces the part-time labour pool that has historically filled many convenience store shifts.
While c-stores are ready to welcome a new clientele, it’s worth keeping in mind that some of these customers may be challenging to serve. Sales of alcohol in convenience stores, for example, must cease at 11:00 p.m. Some customers may ask employees to sell alcohol outside of permissible hours and may do so aggressively. Most convenience stores regularly deal with intoxicated customers; however, with alcohol available in the stores, a new dynamic is created (an intoxicated customer wishing to purchase alcohol). Security, staff training and security camera placement will be important.
The bottom line
A license to sell beverage alcohol is $500 annually. However, the incremental sales potential vastly outweighs this new expense.
The sale of wine, cider, wine and ready-todrink alcoholic beverages is a great opportunity and convenience store operators should take advantage. Served safely and responsibly, beverage alcohol’s impact on your store’s revenues and profitability can potentially be significant.
Take a strategic approach to pairing beverage alcohol with foodservice and reap the rewards of improved operating results for your store. CSNC
Jeff Dover is president of fsSTRATEGY, a consulting firm specializing in strategic advisory services for the hospitality industry, with an emphasis on food and beverage. Jeff is a Certified Management Consultant and a member of both the International Society of Hospitality Consultants and Foodservice Consultants Society International.
National Shopper Study
Foodservice Report: Foodvenience means any time is meal time
NEARLY HALF OF CONVENIENCE STORE shoppers purchased prepared foods during their most recent visit, with purchases peaking at lunch and dinner occasions—no great surprise there—however late-night nosh runs are on the rise and a trend worth noting.
According to data from the 2024 C-store IQ National Shopper Study, 49% of shoppers say they are purchasing prepared food at a convenience store, an average of two times per month, however that number dropped notably compared to the previous year when 55% of shoppers reported making a food purchase an average 2.77 times. (That 55% in 2023 was a significant jump compared to the 2022 study, when 46% of shoppers purchased prepared food at a c-store, an
Purchased
BY MICHELLE WARREN
average of 1.6 times. In 2019, pre-pandemic, the number was also 46%.)
The reason for the most recent dip is, likely, economic pressures, as people reign in discretionary spending, which includes eating out.
Working with the research team at EnsembleIQ, Convenience Store News Canada surveyed more than 2,000 convenience shoppers across the country to examine their wants and needs at retail, specifically convenience and gas. Data shows that when it comes to prepared foods, c-stores are meeting the needs of shoppers, overall, but there’s opportunity to capture market share by focusing on value and the eating habits of younger shoppers.
For the first time, the data reveals late-
night consumption habits as an area to watch. Those purchasing prepared foods after 10 p.m. significantly increased over last year. Young people—think generation Z (and Y)—are driving this trend. Unlike older generations, they don’t adhere to set meal times, instead eating when the mood strikes, often after 10 p.m. Younger shoppers tend to focus less on meal prep at home, valuing convenience above all else.
For all other demographics, there’s an increased focus on cost: Price and value remain the most important factor for shoppers when purchasing prepared foods, but economic pressures have made this even more significant in 2024.
Reasons why did NOT purchase prepared food at convenience store in past month
Occasions where prepared foods purchased from convenience store to share with household
Types of prepared foods purchased at convenience store
One-in-three shoppers sharing a household regularly relies on convenience store foods for snack, dinner and lunch occasions.
Satisfaction with most recent prepared foods purchase at convenience store
Place where last purchase of prepared food from convenience store was consumed
continued from page 38
Attempts to cut costs have likely helped fast food in growing its lead as the top prepared foods alternative to convenience stores, while home delivery and casual dining lost market share. The good news is convenience store foodservice is rated as similar or better by a majority of shoppers across all alternative channels.
At convenience, shoppers report that nearly three-fourths (72%) of prepared food purchased included grab-and-go items, with made-to-order items decreasing compared to 2023.
Overall preferences appear to be evolving, with packaged, refrigerated items having more appeal than made-to-order for the first time in this survey. Perhaps this is a reflection of the shift in post-pandemic routines, with more people on-the-go and looking for a quick meal solution.
This makes sense, too, with the data showing prepared food consumption continues a post-pandemic shift to locations outside the home, with 59% of people eating in their car, at work etc. (Note the jump in those purchasing breakfast items.)
That’s not to say people aren’t looking for healthy solutions on-the-go. While half of shoppers do not consider special dietary needs when choosing where to purchase prepared foods, for the other half lowsugar, gluten-free and low-carb are the top concerns. Still, pizza leads the list of items purchased, followed by sandwiches (note the growth this year) and hot dogs.
Foodservice at convenience serves the bottom line in more ways than one. Prepared food trips are lucrative, with more than two-thirds of shoppers buying other items during the same visit. Lottery tickets, candy/gum and packaged water or pop are commonly purchased with food.
Vaping/e-cigarette products
As c-gas operations increasingly rely on foodservice to drive foot traffic and revenues, it will be interesting to see how things unfold with beverage alcohol now available in convenience stores in Ontario— ideally, shoppers will see the channel as a truly full-service solution where they can grab essentials and a bite to eat, while pairing that meal with beer, wine, cider or an RTD cocktail. CSNC Most
