NACS Magazine February 2024 by NACS Magazine

Advancing Convenience & Fuel Retailing

FEBRUARY 2024 FINDING INSIGHTS The current state of data tools C-STORE COUNT The industry is growing

LET YOUR VOICE BE HEARD Being an industry advocate can be as simple as

telling your story.

convenience.org

Unfair tobacco regulations could hurt your business. Stand up for your store. Click the button to join store owners across the country who are ﬁghting for fair tobacco policies.

CLICK HERE TO GET INVOLVED

ONTENTS NACS / FEBRUARY 2024

FEATURES

Let Your Voice Be Heard Being an industry advocate can be as simple as telling your story.

U.S. Convenience Store Count Stands at 152,396 Stores The number of c-stores has grown for the second consecutive year.

Becoming Data-Driven Data tools continue to be a catalyst for change in the convenience industry.

On the Cover: beast01/Shutterstock. This page: edhar/Getty Images

50 Power in Numbers The Greater Houston Retailers Cooperative Association is a leading example of the power of industry associations.

C-Store Diplomacy State by State It’s vital for operators to make their voices heard in their state capital.

STAY CONNECTED WITH NACS @nacsonline facebook.com/nacsonline instragram.com/nacs_online

Subscribe to NACS Daily—an indispensable “quick read” of industry headlines and legislative and regulatory news, along with knowledge and resources from NACS, delivered to your inbox every weekday. Subscribe at www.convenience.org/NACSdaily.

linkedin.com/company/nacs NACS FEBRUARY 2024 1

ONTENTS NACS / FEBRUARY 2024 DEPARTMENTS 06 From the Editor 08 T he Big Question 10 NACS News

58 G as Station Gourmet Al Herbert looks at the best foodservice ideas he’s encountered in the past year.

64 C ategory Close-Up The alternative snacks category 20 I nside Washington delivers flavors As elections approach, consumers crave. President Biden’s administration is 72 B y the Numbers pushing various labor regulations. 18 Convenience Cares

24 I deas 2 Go Duke’s Travel Plaza offers an eclectic array of services and Texasmade products. 56 C ool New Procuts

IT’S A FACT

The average sales per store of alternative snacks in 2022. CATEGORY CLOSE-UP PAGE 64

PLEASE RECYCLE THIS MAGAZINE 2 FEBRUARY 2024 convenience.org

The presence of an article in our magazine should not be permitted to constitute an expression of the association’s view.

JIANG HONGYAN/Shutterstock

$3,836

/ FEBRUARY 2024 EDITORIAL

NACS BOARD OF DIRECTORS

Jeff Lenard V.P. Strategic Industry Initiatives (703)518-4272 jlenard@convenience.org

CHAIR: Victor Paterno, Philippine Seven Corp. dba 7-Eleven Convenience Store

Ben Nussbaum Editor-in-Chief (703) 518-4248 bnussbaum@convenience.org Lisa King Managing Editor lking@convenience.org Batya Levy Editor blevy@convenience.org Leah Ash Assistant Editor lash@convenience.org

DESIGN Imagination www.imaginepub.com

ADVERTISING

NACS SUPPLIER BOARD

Stacey Dodge Advertising Director/ Southeast (703) 518-4211 sdodge@convenience.org

CHAIR: David Charles, Cash Depot

Jennifer Nichols Leidich National Advertising Manager/Northeast (703) 518-4276 jleidich@convenience.org Ted Asprooth National Sales Manager/ Midwest, West (703) 518-4277 tasprooth@convenience.org

PUBLISHING Stephanie Sikorski Vice President, Marketing (703) 518-4231 ssikorski@convenience.org Nancy Pappas Marketing Director (703) 518-4290 npappas@convenience.org

Join us at conveniencecares.org

PAST CHAIRS: Don Rhoads, The Convenience Group LLC; Jared Scheeler, The Hub Convenience Stores Inc. MEMBERS: Chris Bambury, Bambury Inc.; Tom Brennan, Casey’s; Frederic Chaveyriat, MAPCO Express Inc.; Andrew Clyde, Murphy USA; George Fournier, EG America LLC Terry Gallagher, Gasamat Oil/Smoker Friendly;

CONTRIBUTING WRITERS Shannon Carroll, Sara Counihan, Sarah Hamaker, Al Hebert, Emma Tainter

COME TOGETHER. DO MORE.

OFFICERS: Lisa Dell’Alba, Square One Markets Inc.; Annie Gauthier, St. Romain Oil Company LLC; Chuck Maggelet, Maverik Inc.; Don Rhoads, The Convenience Group LLC; Brian Hannasch, Alimentation Couche-Tard Inc.; Varish Goyal, Loop Neighborhood Markets; Lonnie McQuirter, 36 Lyn Refuel Station; Charlie McIlvaine, Coen Markets Inc.

Logan Dion Digital Media and Ad Trafficker (703) 864-3600 ldion@convenience.org

CHAIR-ELECT: Vito Maurici, McLane Company Inc. VICE CHAIRS: Josh Halpern, JRS Hospitality/BCIP dba Big Chicken; Bryan Morrow, PepsiCo Inc.; Kevin LeMoyne, Coca-Cola Company PAST CHAIRS: Kevin Farley, Impact 21; Brent Cotten, The Hershey Company; Drew Mize, PDI MEMBERS: Tony Battaglia, Tropicana Brands Group; Patricia Coe, Advantage Solutions; Jerry Cutler, InComm Payments; Jack Dickinson, Dover Corporation; Matt Domingo, Reynolds; Mark Falconi,

Raymond M. Huff, HJB Convenience Corp. dba Russell’s Convenience; John Jackson, Jackson Food Stores Inc.; Ina (Missy) Matthews, Childers Oil Co.; Brian McCarthy, Blarney Castle Oil Co.; Tony Miller, Delek US; Natalie Morhous, RaceTrac Inc.; Jigar Patel, FASTIME; Robert Razowsky, Rmarts LLC; Kristin Seabrook, Pilot Travel Centers LLC; Babir Sultan, FavTrip; Richard Wood III, Wawa Inc. SUPPLIER BOARD REPRESENTATIVES: David Charles Sr., Cash Depot; Kevin Farley, Impact 21 STAFF LIAISON: Henry Armour, NACS GENERAL COUNSEL: Doug Kantor, NACS

Oberto Snacks Inc.; Ramona Giderof; Mike Gilroy, Mars Wrigley; Danielle Holloway, Altria Group Distribution Company; Jim Hughes, Krispy Krunchy Foods LLC; Kevin Kraft, Q Mixers; Jay Nelson, Excel Tire Gauge; Nick Paich, GSTV; Sarah Vilim, Keurig Dr Pepper RETAIL BOARD REPRESENTATIVES: Scott E. Hartman, Rutter’s; Chuck Maggelet, Maverik Inc.; Tom Brennan, Casey’s STAFF LIAISON: Bob Hughes, NACS SUPPLIER BOARD NOMINATING CHAIR: Kevin Martello, Keurig Dr Pepper

NACS Magazine (ISSN 1939-4780) is published monthly by the National Association of Convenience Stores (NACS), Alexandria, Virginia, USA. Subscriptions are included in the dues paid by NACS member companies. Subscriptions are also available to qualified recipients. The publisher reserves the right to limit the number of free subscriptions and to set related qualifications criteria. Subscription requests: nacsmagazine@convenience.org POSTMASTER: Send address changes to NACS Magazine, 1600 Duke Street, Alexandria, VA, 22314-2792 USA. Contents © 2023 by the National Association of Convenience Stores. Periodicals postage paid at Alexandria VA and additional mailing offices.

1600 Duke Street, Alexandria, VA 22314-2792

1839® cigarettes are made with a high concentration of flue-cured tobacco in our blend, thus providing an exceptional aroma and flavor experience.

UP FRONT FROM THE EDITOR

Advocating for Advocacy

6 FEBRUARY 2024 convenience.org

said at the 2023 NACS Show, the c in c-store has two meanings: convenience and community. If you’re looking to up your engagement, reach out to NACS. We have many resources to help. Margaret Hardin, mhardin@convenience.org, is our government relations manager and can help get you started. Another highlight in this issue: Our story on the Greater Houston Retailers Cooperative Association. This behemoth group represents more than 2,000 sites in and around Houston, is expanding its proprietary foodservice brand and has created a c-store concept. That feature is on page 50. Be sure to turn to page 32 to check out our annual c-store count. (Quick takeaway: The industry is growing.) The c-store count is among the many pieces of information presented at the SOI Summit. Here at NACS, we’re gearing up for this annual event, which takes place this year in Chicago, April 3-5. Check out convenience.org/events/SOI to register. Hope to see you there.

Ben Nussbaum Editor-in-Chief

NACS Day on the Hill takes place in March.

The c in c-store has two meanings: convenience and community.

Master1305/Shutterstock; TriggerPhoto/Getty Images

elcome to the first-ever advocacy issue of NACS Magazine. This issue has two great feature articles on the topic. “Let Your Voice Be Heard” explores advocacy at its most essential: What is an industry advocate, and how can you become one? “C-Store Diplomacy State by State” looks at how retailers can be champions for the industry at the state level. In The Big Question (page 8), Tom Brennan, the chief merchandising officer at Casey’s, describes what being an industry advocate means from his personal standpoint and from the perspective of his company. Brennan is a graduate of West Point. During our conversation, Brennan drew a connection between serving in the military and serving as an industry advocate. Margins, fees and regulations are important … but they’re not the heart of advocacy. Instead, advocacy is about standing in the public square and being engaged. That’s true for individuals representing the industry and for companies as a whole. In many of Casey’s rural locations, the store manager becomes a sort of de facto mayor, according to Brennan. That prominence within the community creates a strong sense of responsibility for Casey’s, and with that a need to stand up and advocate for Casey’s ability to serve its customers in the best way possible. Although their specifics may vary, all retailers can relate. As Henry Armour, NACS president and CEO,

T H E

A R T

O F

M E R C H A N D I S I N G

EXTRUDED SIGN HOLDERS

DISPLAY AND SCAN HOOKS

POUCH HOOK MERCHANDISING

CLEARSCAN® LABEL HOLDERS AND STRIPS

AUTO FEED PUSHER SYSTEMS

ZIPTRACK® SHELF MERCHANDISING

CLEAR ACRYLIC DIVIDER SYSTEMS

DUAL LANE MERCHANDISING

OVERSIZE PRODUCT MERCHANDISING

WONDERBAR® TRAY MERCHANDISING

FENCING AND DIVIDERS

ENDLESS BASKETS AND DIVIDERS

HOOKS | SHELF MERCHANDISING | LABELING

UP FRONT THE BIG QUESTION

What does being an advocate for our industry mean to you?

In this industry, there’s such a frequency of interaction. We feel such a connectedness to our guests and to our communities. And so that’s why when there are things that are threatening to the industry, or that would be disruptive to a great guest experience, we’re going to passionately advocate for our position to be heard. At Casey’s, it really comes down to living our purpose, which is to make life better for our communities and guests every day. Advocacy is one of the avenues that allows us to ensure we are best positioned to do that consistently in all the different communities where we operate. We have a significant impact on the local economy, on the state economy. Given the number of transactions in our stores, the amount of revenue that our stores generate and the taxes that revenue also generates, we feel it’s critical for us to remain engaged, particularly on things that impact our ability to serve our guests in those communities. About half of Casey’s stores are in towns of 5,000 people or less. I do not think you can overstate the importance of our stores in these towns as we quite literally are the center of those communities. Our store managers become kind of de facto town mayors and that situation creates a deep sense of responsibility for that manager and for that store team because of what their service represents to their neighbors. That sense of responsibility is shared 8 FEBRUARY 2024 convenience.org

 Tom Brennan, chief merchandising officer, Casey’s General Stores throughout the entire Casey’s organization, and I think you see that in how we show up as a brand. I’m proud that Casey’s has taken a leadership position on issues that are important to the industry. We were proud to be able to host Senator Roger Marshall in one of our stores in Topeka, Kansas, and thank him for being a warrior in the fight against excessive swipe fees. His visit helped to reinforce the importance of the legislation that he’s co-sponsoring, the Credit Card Competition Act, and the impact that it can have on the American consumer. This isn’t just about Casey’s or the convenience store industry, it is about benefiting every American family. One of the things we’ve done in support of the Credit Card Competition Act is adding a QR code for the link to our voter voice website on our store tablets. Every Casey’s store has a couple of tablet devices that we use for different operational tasks, and the code makes it easier for every Casey’s team member to speak

to elected officials. We want to make sure that we’re continuing to spread the message and ensure that Casey’s, at 43,000 team members strong, is using our voice to the fullest extent. The importance of civic engagement and being a good citizen to me is certainly influenced by the fact that I am a third-generation veteran. Growing up with my dad in the service and living on Army bases and living overseas, from my earliest memories, the importance of service was ingrained in me. My four years at West Point followed by my six years on active duty in the U.S. Army only served to strengthen my commitment to living that out. Now I feel incredibly fortunate to be at Casey’s and to be on the board of NACS, where I can be directly engaged on so many important issues. I also serve on the political engagement committee at NACS, and that is truly an amazing platform to be able to continue that passion and interest that I have, and to do so in a way that is beneficial for the industry and, of course, for Casey’s.

“Our partnership with Pace-O-Matic has been the absolute best relationship we’ve enjoyed in the 43 years I’ve been here.” BILL DOUGLASS Founder & Chairman of Douglass Distributing & Lone Star Food Stores and Former NACS Chairman

Pace-O-Matic thanks you for your deep dedication and contribution to the industry.

paceomatic.com

UP FRONT NACS NEWS

Attendees at the 2023 NACS State of the Industry Summit in Dallas, TX.

Save Your Seat for the NACS SOI Summit Registration for the 2024 NACS State of the Industry Summit is open! This year’s event takes place April 3-5, in Chicago, Illinois. The NACS State of the Industry (SOI) Summit is the only industry event that delivers data-driven and actionable insights on the latest financial, operational, categorical, regional market and consumer trends in convenience. SOI Summit attendees are the first to hear the 2023 convenience industry data, which powers the NACS State of the Industry Report®, offering exclusive industry information not available anywhere else. 10 FEBRUARY 2024 convenience.org

Attendees at SOI have direct access to experts in the field.

Retailers and suppliers rely on proprietary NACS SOI data to benchmark their performance and gauge successes and opportunities across key categories, learn what drives the consumer to enter their stores (or not) and make a purchase and spark ideas on how to take their businesses to the next level. Industry retailers and suppliers know the value of relying on NACS SOI data to improve their businesses. The SOI Summit helps attendees build new connections and is also an opportunity to upskill future leaders by developing their convenience and fuel industry knowledge.

Jon Benson, AlixPartners LLC

EXCLUSIVE INSIGHTS FOR SUPPLIERS FROM RETAILERS On Wednesday, April 3, from 10 a.m.-5 p.m., the third consecutive SOI Summit Retailer/Stakeholder Strategy Session will take place. It offers industry suppliers a unique opportunity to hear directly from five of the leading industry retailers in a closed, supplier-only format. Leadership from invited retailers will share top strategic initiatives and priorities and address supplier-generated topics. The SOI Summit Retailer/Stakeholder Strategy Session is closed to external media and other retailers to ensure actionable insights and a transparent dialogue. Separate registration and a fee of $499 per person is required for the event. This session is open to NACS supplier members only, with a limit of two seats per member company. Hunter Club Gold members can register up to four attendees, and Hunter Club Silver and Bronze members can register up to three attendees. Attendees must be registered for the NACS SOI Summit to participate in this session. Whether you’re a convenience retailer, a manufacturer or a supplier, the NACS SOI Summit gives you premier access to industry-specific benchmarking data that can inform your business strategies and objectives. Register today at www. convenience.org/SOISummit.

Annie Gauthier, CFO/co-CEO St. Romain Oil Company and Y-Not Stop

Connect Over Lunch NACS Industry Update Luncheons bring together regional convenience and fuel retail and supplier leaders for a unique experience where they connect, exchange ideas and hear industry performance trends and metrics in a casual setting. Each year, NACS President and CEO Henry Armour travels around the United States to discuss insights, issues and opportunities that are relevant to the convenience and fuel industry. Other NACS leaders also present at the luncheons. Retailers and fuel jobbers, regardless of their NACS membership status, are invited to attend. NACS Hunter Club member companies can send up to two individuals per event, as space allows. Hunter Club members can contact Leigh Walls, director, supplier relations and Hunter Club liaison at lwalls@ convenience.org. At each Industry Update Luncheon, guests will enjoy time to network casually followed by a seated lunch, including an interactive presentation of about 60-75 minutes and discussion delivered by NACS leadership. The currently announced 2024 dates and locations are: • March 5: Anaheim, CA • March 28: Grand Rapids, MI • April 11: Charlotte, NC • May 7: Houston, TX • May 14: Denver, CO • November 18: Harrisburg, PA Look for additional dates and locations at www.convenience.org/events/ Industry-Update-Luncheons. If you have questions regarding the scheduled luncheons or are interested in having an Industry Update Luncheon in your city, please contact Eboni Russell, NACS state association manager, at erussell@convenience.org.

NACS FEBRUARY 2024 11

UP FRONT NACS NEWS

Convenience Unites at the 2024 NACS Day on the Hill Join us March 12-13 for the 2024 NACS Day on the Hill to advocate for your business and, ultimately, all convenience stores across the United States. Your participation and support are key to maintaining a strong voice in Washington and protecting the industry year after year. When you participate, NACS supports you with training videos, webinars and briefings before you arrive on Capitol Hill to speak directly with lawmakers. The NACS government relations team schedules individual congressional meetings and pairs you with other convenience retailers and experienced advocates.

Not only will you gain a better understanding of current industry issues, how they directly affect the way business is conducted and how issues are being legislated, you also get an opportunity to interact with other retailers facing the same challenges.

Most importantly, Day on the Hill offers retailers the chance to educate Members of Congress. Your voice matters as a constituent—and as someone who experiences the impact of congressional decisions firsthand. By voicing your perspectives and sharing your challenges, you enhance lawmakers’ understanding of the issues they cast their votes on. Be a part of the conversation and help protect convenience stores across the country by attending this year’s conference. Learn more at www.convenience.org/events/ Day-On-the-Hill.

Calendar of Events 2024

FEBRUARY NACS Leadership Forum February 13-15 | The Ritz-Carlton Amelia Island, Florida MARCH NACS Convenience Summit Asia March 05-07 | Signiel Seoul Hotel Seoul, Korea NACS Day on the Hill March 11-13 Washington, D.C. NACS Human Resources Forum March 18-20 | Hyatt Regency Jackson Riverfront | Jacksonville, Florida APRIL NACS State of the Industry Summit April 03-05 | Hyatt Regency O’Hare Chicago Rosemont, Illinois

Conexxus Annual Conference April 28-May 02 | Live! By Loews Arlington Texas JUNE NACS Convenience Summit Europe June 04-06 | Intercontinental Barcelona Barcelona, Spain JULY NACS Financial Leadership Program at Wharton July 14-19 | The Wharton School University of Pennsylvania Philadelphia, Pennsylvania

OCTOBER NACS Show October 07-10 | Las Vegas Convention Center Las Vegas, Nevada NOVEMBER NACS Innovation Leadership Program at MIT November 03-08 | MIT Sloan School of Management Cambridge, Massachusetts

NACS Executive Leadership Program at Cornell July 28-August 01 | Dyson School, Cornell University Ithaca, New York

For a full listing of events and information, visit www.convenience.org/events. 12 FEBRUARY 2024 convenience.org

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UP FRONT NACS NEWS

Member News RETAILERS

Doug Crew now serves as director of facilities maintenance at Parker’s Kitchen, providing ongoing maintenance and support Doug Crew for all store equipment, structures and grounds. Crew brings 31 years of experience in c-store corporate maintenance management to his new position. Before joining Parker’s Kitchen, Crew served as the senior manager of corporate maintenance at 7-Eleven, where he led a team of more than 60 employees who supported the maintenance division. A longtime Speedway LLC employee, Crew previously served as a commodity manager for purchasing and commercial services, construction manager, manager for security and loss management and manager of corporate maintenance. Katie Demby is the new food service category manager at Parker’s Kitchen. She oversees food and beverage Katie Demby programs, including freshly prepared food, roller grill and dispensed beverages. Demby is responsible for implementing and organizing new product development and ensuring brand standards and safety regulations are being met while achieving budgeted revenue goals for high-quality food and beverage sales. Demby brings nine years of experience in the convenience store industry. She previously served as the foodservice category manager and assistant brand manager for Circle K. Parker’s Kitchen announced Tyler Duckworth now serves as financial analyst, providing financial insight and data-driven recommendations that support company strategy and executive decision making. 14 FEBRUARY 2024 convenience.org

Duckworth is responsible for preparing monthly financial reviews with deep-dive analytics, collaborating Tyler Duckworth with department heads to plan annual budgets, performing ROI analytics on capital projects and maintaining in-depth cash flow data. Prior to joining Parker’s Kitchen, Duckworth served as a financial analyst at Green Cubes Technology in Atlanta. Chris Everson joined Parker’s Kitchen as the senior category manager for cigarettes and other tobacco Chris Everson products, lottery and gaming, prepaid cards, health and beauty aids, propane, consignment and spirits. Prior to joining Parker’s Kitchen, Everson served as a senior category manager for Alimentation Couche-Tard, where he was responsible for inside sales. Yesway Chairman and CEO Tom Trkla shared the news that industry veteran Joseph Petrowski has passed away. Petrowski joined Yesway in 2016 as a senior advisor and member of its executive committee. From 2005 through 2013, Petrowski served as CEO and member of the board of directors of the Cumberland Farms Gulf Oil Group, a diversified petroleum and retail convenience store holding company located in 29 states with more than 7,000 employees and $15 billion in annual revenues, during which the company achieved record earnings. Beyond his impressive career, Petrowski’s dedication to community and education showcased his commitment to making a positive impact beyond the business world, stated Trkla.

SUPPLIERS

Electrolux Professional Group announced that Logan McCoy has joined the Americas Logan McCoy marketing team as corporate chef, east. McCoy will support the strategic growth and development of the full portfolio of Electrolux Professional Group products in the Americas, while also serving as culinary advisor and brand ambassador to provide sales and marketing support on the East Coast. McCoy has more than 15 years of experience in the foodservice industry, most recently as the culinary innovation chef at Nestle Professional in Solon, Ohio. Techniche announced the appointment of Daryn Edgar as its new chief executive officer. Based in the UnitDaryn Edgar ed Kingdom, Edgar takes over from Karl Jacoby, who will remain as chairman and nonexecutive director. Edgar is responsible for leading the next phase of growth for the global software business. With more than 20 years of enterprise software experience, Edgar was previously CEO at Lytt, the oil well technology firm owned by BP’s early-stage ventures arm Launchpad.

KUDOS

Marathon Petroleum received a Community Impact Award from Petroleum Alliance of Oklahoma. The award recognizes industry efforts demonstrating a commitment to local communities and neighbors.

WARNING: This product contains nicotine. Nicotine is an addictive chemical.

THERE’S MORE TO ZYN THAN MEETS THE EYE When you stock ZYN, you do more than just sell ZYN. A portion of every purchase goes back to helping communities in need — and it all starts at your store.

UP FRONT NACS NEWS

New Members

NACS welcomes the following companies that joined the Association in November 2023. NACS membership is companywide, so we encourage employees of member companies to create a username by visiting www.convenience.org/createlogin. All members receive access to the NACS Online Membership directory and the latest industry news, information and resources. For more information about NACS membership, visit convenience.org/membership.

NEW RETAILER MEMBERS Allied Ambest Inc. Brentwood, TN www.am-best.com Pak-A-Sak Inc. Amarillo, TX www.pakasak.net Road Ranger LLC Schaumburg, IL www.roadrangerusa.com

Everlast Epoxy Flooring Company Columbia, TN www.everlastepoxy.com

Shenzhen Leader Display Pdts Ltd. Guangdong, China

Fast Trak Ltd. Stockport, United Kingdom

The KFT Company Chamblee, GA www.thekftbrands.com

Advantage Fort Lauderdale, FL www.fleetadvantage.com

The Monster Group Orlando, FL www.monstergrp.com

NEW SUPPLIER MEMBERS

Fratelli Beretta USA Inc. Budd Lake, NJ www.fratelliberettausa.com

Witor’s America Camden, DE

3xLOGIC Fishers, IN www.3xlogic.com

HRS Global LLC Jeffersonville, IN www.hrsgloballlc.com

WTIwireless Calabasas, CA www.WTIwireless.com

Alium Technology Inc. Leander, TX web.cronysoft.com

International Trade Imports LLC Alpharetta, GA

Anhui KaiLai Packaging Co. Ltd. BengBu, China

LottoEdge Fort Mill, SC www.lottoedge.com

NEW HUNTER CLUB MEMBERS BRONZE

Anthem Snacks LLC Bozeman, MT www.anthemsnacks.com

Mela Water Aliso Viejo, CA www.melawater.com

BADDASS Jonesboro, AR www.baddass.com

NCR Atleos Atlanta, GA www.ncratleos.com

Brooklyn Cured Brooklyn, NY www.brooklyncured.com

OasisMade Mississauga, ON Canada www.oasismade.com

Calico Cottage Inc. Amityville, NY www.calicocottage.com

Pearl Crop Inc. Stockton, CA www.pearlcrop.com

Caro Nut Company Fresno, CA www.caro-nut.com

Ricos Products San Antonio, TX www.ricos.com

Chicken King LLC Los Angeles, CA DRINK WEIRD Austin, TX www.drinkweird.com 16 FEBRUARY 2024 convenience.org

Se-Kure Controls Inc. Franklin Park, IL www.se-kure.com

Black Rifle Coffee Company Salt Lake City, UT www.blackriflecoffee.com KeHE Distributors Holdings LLC dba KeHE Distributors Naperville, IL www.Kehe.com Farmer Brothers Northlake, TX www.farmerbros.com Fiscal Systems Huntsville, AL www.fis-cal.com Lindt & Sprungli USA Stratham, NH www.lindtusa.com SILVER OPIS A Dow Jones Company Rockville, MD www.opisnet.com

C-STORES, WE HAVE THE RESOURCES YOU NEED TO DEVELOP ENGAGING FOOD PROGRAMS TRENDS – Accessible online, updated every quarter! TOOLS – A library of guides for food prep, food safety and more WEBINARS – Weekly webinars covering trends, products and relevant industry topics

Hear directly from our members! WATCH THIS VIDEO!

Don’t miss the premier industry trade show for retail dairy, deli, bakery and foodservice.

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CONVENIENCE CARES

OnCue Raises $367,000 for St. Jude’s Children’s Research Hospital OnCue has raised $3,603,857 for the organization since 2007.

nCue raised $367,000 to fight childhood cancer during its annual St. Jude Children’s Research Hospital promotion. Throughout October, participating OnCue locations asked customers to donate at the register to support the hospital’s mission of finding cures and saving children’s lives. In exchange for contributing $1 or more, patrons received a St. Jude Children’s Research Hospital pinup to display in the store. In addition to the pinup sales in stores, OnCue’s internal St. Jude Children’s Research Hospital Committee organized several events, including a companywide St. Jude Children’s

18 FEBRUARY 2024 convenience.org

Research Hospital walk that took place in Stillwater, Oklahoma, an annual golf tournament and other internal fundraising efforts. “We’re excited to continue our partnership with St. Jude Children’s Research Hospital, and we are grateful to our wonderful employees and customers who are committed to making a difference for the families of St. Jude Children’s Research Hospital,” said Laura Aufleger, president of OnCue. OnCue also pledged to donate 50 cents for every limited-edition reusable cup sold to benefit St. Jude Children’s Research Hospital for the fifth year in a row.

To launch the annual event, OnCue welcomed St. Jude Children’s Research Hospital patient Alexander and his mother Jillian to a meeting of all store managers to share their story. “It has been very special to hear the stories of how St. Jude Children’s Research Hospital impacts the lives of the families they serve around the country and here in Oklahoma,” Aufleger said.. “St. Jude Children’s Research Hospital has done incredible work over the years to increase resources and information about childhood cancers, which has helped the survival rate to increase.”

In The Community Every year, the convenience retail industry dedicates billions of dollars to advancing the futures of individuals and families in our communities. The NACS Foundation unifies and builds on NACS members’ charitable efforts to amplify their work in communities across America and to share these powerful stories. Learn more at www.conveniencecares.org.

1 YESWAY RAISES $600,000 FOR LOCAL AND NATIONAL NONPROFITS Yesway raised $600,000 at its annual Golf and Clays Classic charitable fundraising tournament held in Dallas, Texas. The event benefited local charities, civic organizations, school districts, military and veterans groups and first responders in the communities that Yesway and Allsup’s stores serve. Beneficiaries include Operation Homefront, Christian Outdoor Alliance and Walk In Their Shoes. Over its past three tournaments, Yesway has raised over $1.5 million for local organizations.

2 SPINX RAISES OVER $320,000 FOR THE AMERICAN CANCER SOCIETY

4 RUTTER’S CHILDREN’S CHARITIES AWARDS SECRET SANTA DONATIONS

The Spinx Company raised $324,960 for the American Cancer Society during a monthlong, statewide campaign to provide support for cancer patients and their families. The annual companywide initiative brings awareness to the American Cancer Society (ACS). ACS funds support research for people in every community in order to prevent, detect, treat and survive cancer. 3 THE WAWA FOUNDATION CELEBRATES WORLD KINDNESS DAY As part of its annual Check-Out Hunger campaign, The Wawa Foundation matched the first $100,000 in customer donations made from November 13 through December 10 as part of its four-week in-store scan campaign. The campaign invites customers to donate $1 or more at the register to support local Feeding America food banks as part of the Check Out Hunger in-store fundraising effort.

Rutter’s Children’s Charities continued its annual Secret Santa campaign during December. Rutter’s Children’s Charities donates $1,000 to eligible charities chosen by nominated employees. . One hundred Rutter’s employees were chosen to participate in 2023, totaling $100,000 in donations. The selected charities have an emphasis on children, education and local community efforts. Beginning in 2016, the effort has donated more than $450,000 to numerous local charities. 5 PARKER’S KITCHEN DONATES $100,000 TO SCHOOLS Parker’s Kitchen donated $100,000 to the SavannahChatham County Public School System in Savannah, Georgia. The check was presented in November. “We’re incredibly proud to be headquartered in Savannah and recognize that by investing in education, we’re supporting the growth of future leaders right here in our community,” said Parker’s founder and CEO Greg Parker. 4

2 3

NACS FEBRUARY 2024 19

INSIDE WASHINGTON

The Administration’s Labor Agenda As elections approach, President Biden’s administration is pushing various labor regulations.

The administration has been very active not only in the labor space, but also in environmental regulations and tobacco regulation.

20 FEBRUARY 2024 convenience.org

THE JOINT EMPLOYER RULE In October, the National Labor Relations Board (NLRB) finalized the joint employer rule, which has the potential to entirely upend the franchise business model as well as complicate many other contractual agreements and branding arrangements. The NLRB withdrew a rule finalized under President Trump that required that one employer actually enforce authority over certain essential terms and conditions of employment of another company’s worker in order

to be considered in a joint employer relationship with that other company vis-a-vis that employee. The NLRB replaced it with a rule similar to one President Obama had implemented that significantly expanded the universe of potential joint employer relationships by saying that one employer need only have the ability to influence an essential term or condition of another company’s employee in order to create a potential joint employer relationship, whether or not it had ever actually exercised that authority. This much broader definition has the potential to create many new joint employer relationships where they did not previously exist. As this article goes to press, NACS has joined a number of other business trade groups, led by the U.S. Chamber of Com-

Dilok Klaisataporn/Getty Images

ny time a presidential administration is facing an election year, it tends to ramp up its regulatory activity in an attempt to get as much of the current president’s agenda on the books as possible. This is true whether it is facing reelection, as President Biden currently is, or if it is a lame duck administration. Biden’s team is no exception. At the time of this writing, we know that the administration has been very active not only in the labor space, but also in environmental regulations and tobacco regulation. For this article, we’ll focus on the administration’s labor agenda.

depending on a number of factors. NACS filed comments opposing the change in the DOL’s stance on these workers.

merce, in filing a legal challenge to that new rule. At least partially in response to that challenge, the NLRB pushed back the effective date of the rule from December 26, 2023, to February 26, 2024. CLASSIFYING WORKERS While the NLRB was finalizing the joint employer rule, the U.S. Department of Labor (DOL) was busy proposing new rules of its own, expected to be finalized in early 2024, that could also significantly impact our industry.

First, the DOL has proposed making it much harder for a company to classify workers as independent contractors rather than actual employees. While this proposal is thought to be primarily targeted at gig economy workers such as ride share drivers and food and retail delivery drivers, it would have much further-reaching impacts. Notably, the rule could impact convenience retailers’ relationships with contractors it may use for things like landscaping, snow removal or maintenance,

RAISING THE SALARY THRESHOLD The DOL also proposed a significant change in the salary threshold of the so-called white-collar exemption to the overtime rule. The rule was last updated in 2020 to reflect current salary levels, and NACS believes the existing rule continues to do its job in that regard. DOL has proposed significantly increasing that salary level from the current $684 per week ($35,568 per year) to $1,059 per week ($55,068 per year.) DOL arrived at that number by significantly changing the methodology used in calculating the salary threshold. The DOL then went a step further, mandating that the salary be updated automatically every three years using the new methodology. Such a dramatic change in the minimum salary for this rule would have a detrimental impact on many workers in our industry and others, as companies may seek to change some workers from salaried to hourly pay or take other actions to better rein in costs associated with compliance.

This much broader definition has the potential to create many new joint employer relationships where they did not previously exist. NACS FEBRUARY 2024 21

INSIDE WASHINGTON

ONE VOICE This month, NACS talks to

Doug Beech,

Companies may seek to change some workers from salaried to hourly pay. The proposal is also similar to one attempted by the Obama administration that was ultimately struck down by a federal court before it went into effect. NACS filed comments opposing the proposal and expects to see a final version in early 2024. If the DOL doesn’t reverse course, it is likely that its rule will face legal challenges as well. ••• Beyond the NLRB and DOL, the administration is pushing for organized labor priorities in places such as the Occupational Safety and Health Administration (OSHA) with its new “walk around” rule proposal, which would allow a designated union representative to accompany OSHA inspectors during on-site visits. The Federal Trade Commission is also in on the act as it has inserted labor-focused provisions in its proposal to regulate mergers and acquisitions as well. Keep an eye on convenience.org and the NACS Daily newsletter, where the NACS government relations staff will provide frequent updates as these proposals and more move through the regulatory process. 22 FEBRUARY 2024 convenience.org

senior assistant general counsel and director of government relations, Casey’s General Stores What role in the community do you think convenience stores should play? In many ways, convenience stores are the places in communities where guests obtain their everyday needs. This is especially true in many Casey’s stores located in small communities. Casey’s stores supply the community not only with gasoline, but also with other services like the community grocery store, bakery and restaurant. The store also serves as a place where SNAP participants can redeem their benefits without traveling to other nearby communities. What does NACS political engagement mean to you and what benefits have you experienced from being politically engaged? Being politically engaged helps government officials understand the benefits of having a robust convenience store industry and lets them understand the effects their polices have on these businesses. Politicians must deal with many issues and industries—being politically engaged helps them understand the issues that are meaningful to the convenience store community. What federal legislative or regulatory issues keep you up at night (with respect to the convenience store industry)? At Casey’s, there are two issues of utmost importance to our business. Controlling ever increasing swipe fees by the passage of the CCCA will help manage the company’s second-highest expense, which also costs the average American family over $1,000 a year. We are also concerned about the possible Balkanization of the fuel supply next summer if a compromise is not found to address the summertime E 15 issue. What c-store product could you not live without? Casey’s breakfast pizza.

NACSPAC DONORS NACSPAC was created in 1979 by NACS as the entity through which the association can legally contribute funds to political candidates supportive of our industry’s issues. For more information about NACSPAC and how political action committees (PACs) work, go to www.convenience.org/nacspac. NACSPAC donors who made contributions in December 2023 are: Brian Ashburn Yesway

Barry Eveland Rocket Oil Company

Ben Nussbaum NACS

Chris Bambury Bambury Inc.

Cedric Fortemps Matrix Capital Markets Group Inc.

Tom Palombo The Instore Group

Bob Berleth Franklin Display Group

Tony Gaines

Ken Parent

Peter Garrett Volta Oil Company Inc.

Jonathan Polonsky Plaid Pantries Inc.

Derek Gaskins Yesway

Chris Postlewaite NACS

Annie Gauthier St. Romain Oil Company LLC

Dan Razowsky Rmarts LLC

Chris Gheysens Wawa Inc.

Tom Robinson Robinson Oil Corporation

Brian Hannasch Alimentation Couche-Tard Inc.

Steve Rosek Valley Petroleum LLC

Jane Hartgrove Naughty Chile Taqueria

Travis Sheetz Sheetz Inc.

Shultz Hartgrove Naughty Chile Taqueria

Darlene Stanley Johnson Junction Inc.

Tom Heinz Coffee Cup Fuel Stops and Convenience Stores Inc.

Bill Stein Core-Mark International

John Bertucci RowLogic LLC Jonathan Blakely Jonathan P. Blakely Esq. Ned Bowman Florida Petroleum Marketers Association Chet Cadieux QuikTrip Corporation Brad Call J&T Management Spencer Cavalier Matrix Capital Markets Group Inc. Andrew Clyde Murphy USA Chris Cope Pilot Travel Centers LLC Tom Cotrell Morton’s Truck Stops Lisa Dell’Alba Square One Markets Inc. Dee Dhaliwal Dhaliwal & Associates Inc.

Larry Stewart Chris Hobson Core-Mark International Bill Kent The Kent Companies Charlie McIlvaine Coen Markets Inc.

Colin Dornish

Greg Mitchell Toot’n Totum Food Stores LLP

Bill Douglass Douglass Distributing

Brendan Moyer NACS

Justin Erickson Harbor Wholesale Foods

Bill Newcomb Newcomb Oil Co.

Marc Strauch Cameron Park Petroleum Paul Suarez Casey’s General Store Inc. Eric Taylor Taylor Quik Pik April VanApeldorn NACS Lynn Wallis Wallis Companies De Lone Wilson Cubby’s Inc.

IDEAS 2 GO

Name of company: Duke’s Date founded: 2009 # of stores: 2 Website: www.dukestx.com

From Swings to BBQ Duke’s Travel Plaza sells an eclectic array of services and Texas-made products. BY SARAH HAMAKER Duke’s Travel Plaza in Mt. Vernon, Texas, wears its Lone Star State roots proudly. It’s the second Duke’s, joining a location in Canton, Texas. “We built our Mt. Vernon location from the ground up and knew we wanted it to have an even more Texas look and feel than our first location,” said Mike Hamzeh, Duke’s general manager. “We prominently feature Texas-made products, as well as lots of pictures of the Duke (actor John Wayne) as part of our decor.”

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While the Mt. Vernon location of Duke’s caters to truckers pulling off I-30, the store also has a strong local following drawn to its good food, clean location, fun atmosphere and unique novelty items. “We have a passion for people, and we love seeking new items or opportunities to delight them,” he said.

STARTING WITH FOOD Like many modern convenience stores, Duke’s focuses on offering a variety of fresh foodservice through a franchise of Taco Casa and its own barbeque restaurant, Cotton Belt BBQ, and bakery. “We serve brisket, turkey, pulled pork and different sides in the restaurant, while our bakery makes our popular fried pies, cookies, muffins and cheesecake,” Hamzeh said. A large grab-and-go section provides chicken nuggets, fried green beans, fried pickles, chimichangas, mac-and-cheese crunch, buffalo crunch and turkey legs, plus specials like Salisbury steak dinners. In addition, the cold case offers premade sandwiches and salads, like egg, tuna and lettuce. “Our drivers especially like the wide variety of options to choose from in our foodservice area,” Hamzeh said. Of course, the store has fresh brewed coffee, fountain drinks, beer and wine and frozen beverages. As part of its service to truckers, the TA Express-branded plaza has six showers, laundry facilities, an on-site barber and game room/driver’s lounge. An 80-seat dining room gives space for meals to be consumed on the premises. “We also recently added a four-bay truck service and five more diesel pumps for truckers,” Hamzeh said.

In addition, Duke’s has four charging points for electric vehicles. “We’re one of the first outlets along I-30 to offer charging stations, as part of our desire to be first with the things our customers want,” he said. Even man’s best friend has a dedicated space at Duke’s, with a dog park and dog wash. “We installed a stateof-the-art dog wash and fenced park with picnic tables for our customers,” Hamzeh said. “It’s been a very popular part of the plaza.” TEXAS PRODUCTS Duke’s prides itself on carrying locally made and unusual items. For example, the store stocks handmade swings, windmills and firepits. “There are a lot of lakes with summer homes near us, and people love to pick up a bench swing from our store to use in their vacation homes,” Hamzeh said. The store also sports Texas gifts and novelties, including souvenirs and an entire line of clothing for men, women and kids. Duke’s has t-shirts, jackets and hoodies with its own logo, as well as a line of branded beef jerky. “Our customers like Texas-made products. Carrying such items adds value to our store,” he said. To connect with the community, the store gives sponsorships to local school sports teams and donates to area food banks. “We have quite a budget for sponsorships, because we believe in giving back to the community as much as we can,” Hamzeh said. For the future, Duke’s plans on expanding with a new location this year to bring the Duke’s experience to even more customers. “We love our customers and our employees, whom we consider part of our family,” Hamzeh said. “We go overboard to ensure we’re carrying the products they want, and if they ask for something we don’t have, we’ll do our best to get it in as soon as possible.”

BRIGHT IDEAS As part of looking for new technology and products for Duke’s Travel Plaza in Mt. Vernon, Texas, General Manager Mike Hamzeh heads to industry shows. “We go to explore new items for our store as well as new technology, both to accommodate the needs of our customers and to make our jobs easier,” he said. For example, at the 2023 NACS Show in Atlanta, his team explored back-office technology as well as freeze-dried candy. “We also love to see what’s new for products, as we like to be first in our area with the new items,” he said. “Anything that makes our jobs easier and our business more friendly to customers is what we look for at these shows.”

For Hamzeh, the best compliment a customer can give is to notice how clean and organized the store is. “We want our customers to see we care about them through how clean our bathrooms are and how friendly our employees are,” he said. “We’ve created a very comfortable atmosphere that feels like home.” Sarah Hamaker is a freelance writer, NACS Magazine contributor, and award-winning romantic suspense author based in Fairfax, Virginia. Visit her online at sarahhamakerfiction.com.

Ideas 2 Go showcases how retailers today are operating the convenience store of tomorrow. To see videos of the c-stores we profiled in 2023 and earlier, go to www.convenience.org/Ideas2Go. NACS FEBRUARY 2024 25

Let

o v 26 FEBRUARY 2024 convenience.org

e C i o Your

Be Heard

Being an industry advocate can be as simple as telling your story.

beast01/Shutterstock

BY SARA COUNIHAN

oes one office visit to your Member of Congress really matter? How about a social media post about an industry issue—is that just another drop in the sea of internet noise? Advocating for the industry, even in seemingly low-impact ways, can and does make a difference.

DEFINING AN INDUSTRY ADVOCATE When you think of an industry advocate, who comes to mind? Is it someone who is constantly calling up their Members of Congress, asking them to support an issue? Someone who has spent hours researching every issue that affects the industry? Not according to Margaret Hardin, NACS government relations manager. “Being an industry advocate does not have to be all-consuming,” Hardin said. “The best way to be an advocate for the industry and for yourself is to tell your story and be the face of the industry. That is what makes the most impact.”

NACS FEBRUARY 2024 27

Matthew Durand, vice president of corporate affairs at Westborough, Massachusetts-based EG America, said there are three key aspects of being an industry advocate. Like Hardin, he said the first key is embracing your story. “You can bring to the table the unique story of your business, the impact you have on the community and the impact an issue has on you,” he said. “You don’t have to be an expert in … the political process …. You can supplement that by explaining how [an] issue impacts you in the real world. That can be really compelling to lawmakers, the general public or whoever your audience is when you’re telling your story.” Durand’s second key to being an advocate for the industry is to do your homework on the issues but don’t be afraid to say, “I don’t know.” “It’s important to know the general background on an issue,” he said. “But if you catch a question from a staffer that you maybe weren’t expecting or forgot the answer, that’s OK. Just say that and promise to get back to them.” Durand added that not knowing all the ins and outs of an issue can actually be a way to stay top of mind with the legislator: “It gives you a great excuse to follow up and keep the conversation going.” His third key is understanding your coalition and your opponents because industry issues “don’t operate in a vacuum.” “It’s important to appreciate that context and understand that there are other perspectives out there,” Durand said. “It can help with identifying and building a coalition of supporters across different industries or different interest groups, which can make your issue much harder to ignore.” HOW TO ADVOCATE FOR THE INDUSTRY There are myriad ways to be an industry advocate, Hardin explained, from a simple social media post to attending NACS Day on the Hill in Washington. For Steve McKinley, CEO and founder of Urban Value Corner Store, which has multiple locations in and around Dallas, volunteering is at the heart of being an industry advocate, and NACS Day on the Hill is how he feels that he has the most impact. 28 FEBRUARY 2024 convenience.org

“[Day on the Hill] gives me an opportunity to interact with my peer group but, more importantly, really feel like I’m making a difference on the bigger picture,” McKinley said. NACS Day on the Hill allows convenience store retailers to meet with their congressional leaders and tell them directly how the policies they vote on can affect their businesses. NACS schedules the meetings and guides retailers through the issues and meeting process. “You can’t really beat that face-to-face interaction,” Hardin said. “We need as many voices as possible because we’re advocating for major issues that have a huge impact on our industry.”

beast01/Shutterstock

Don’t feel like just because you only have one or two stores you don’t have a voice. You do.”

You can bring to the table the unique story of your business, the impact you have on the community and the impact an issue has on you.”

Another way retailers can interact with their regulators is through the NACS In Store program, which gives elected officials the opportunity to experience how convenience stores serve the public in their home districts. During the event, a Member of Congress works behind the counter and interacts with members of the local community. McKinley recently hosted one of his legislators, Congressman Keith Self, at one of his locations. McKinley said, “It gave me about 20 or 30 minutes of one-on-one time with Congressman Self, and it’s different when it’s in your setting versus on Capitol Hill. You have [their] attention. … I really felt that he was sincere in the interaction and gave me an opportunity to voice [my concerns].” EG America also uses the program and has hosted Members of Congress several times in its stores. Durand said, “Sitting in an office and talking in the abstract is one thing, but being able to actually walk through the store and point out the underground storage tank system or point out the fresh foods … that we’re talking about when we say we have an issue with SNAP, being able to draw that connection right there in the store is powerful.” Durand also said that visiting Members of Congress when they are in their district office is an “underappreciated” opportunity to advocate for the industry. “Often, it’s a lot easier to have a productive conversation back home when you’re outside the craziness and distraction of the D.C. bubble,” he said. “If we have a particular issue or we have a Member of Congress where we have stores in their district … having those meetings outside D.C. can be a great way to supplement the conversation.” Advocating for the industry isn’t limited to the federal level. Doug Yawberry, president at Weigel’s, based in Powell, Tennessee, with 79 locations, said the company is heavily engaged with local and state elected officials. “We are very much engaged, and not engaged just when we need something, but we’re engaged … on a regular basis,” he said. “There’s enough of a relationship there that [we] can pick up the phone and call one of them and have … a very easy conversation.” NACS FEBRUARY 2024 29

Sitting in an office and talking in the abstract is one thing, but being able to actually walk through the store and point out the underground storage tank system or point out the fresh foods … is powerful.” Weigel’s is also a member of the Tennessee Fuel Marketers Association and is “very much involved” in that group, Yawberry said. “Once you step in and you get involved in some of those functions … you understand that you can have a voice and you can help the voice of the industry,” he said. Durand also encourages attending industry events, including the NACS Show, not only to meet and network with other colleagues in the industry but also to learn. “I’m never going to be an expert in any one issue in our business,” he said. “But understanding all the issues, from labor to technology to the grocery business to fuel, [and] opportunities like the NACS Show and other industry events to see what’s new and what’s going on in those areas makes me a better advocate.” Social media is an easy way to advocate for the industry, according to Hardin. It’s as simple as posting and tagging a Member of Congress. “A lot of folks might not think that it’s effective, but staffers track these engagements,” she said. “If you get enough people tweeting or posting and commenting on Facebook, it can make a difference.” 30 FEBRUARY 2024 convenience.org

McKinley said he often leverages LinkedIn to promote awareness of an industry issue, posting to his personal account. “It’s really getting people exposed to [issues] and talking about [them],” he said. “It’s about being vocal where I find opportunities to do that and then educate people within and outside the industry.” WHERE TO START? There are multiple opportunities for you to use your voice for the industry, so where should you start and how do you take the first step? Durand recommends starting by leveraging industry groups. “[Retailers] should definitely put that at the top of their list because whether it’s state associations or a federal association like NACS, [associations] have staff whose job it is to help,” he said. “They really have that infrastructure in place to help you be an advocate without you having to take that on all by yourself and start from scratch.” McKinley encouraged retailers who are taking their first step into advocacy to be inquisitive, volunteer, build a network of industry colleagues and be a resource. “Don’t feel like just because you only have one or two stores you don’t have a voice. You do. And that voice is very, very important in the big scheme of things,” he said. “For single-store operators, two-store operators, if they’re looking for a way [to] make a bigger impact, I can’t think of another industry, another association, that’s going to provide a better road map.” According to Yawberry, the first step to being an industry advocate is just getting started. “Once I jumped in, I was hooked, because I felt valuable and my voice was heard,” he said. “The first step is the hardest step. It’s taking the courage and the time … but once you do that, it all just falls in place.” Sara Counihan is contributing editor of NACS Magazine and NACS Daily. She can be reached at scounihan@convenience.org.

West (region 6)

23,048 stores

152,396 U.S. CONVENIENCE STORE COUNT STANDS AT

STORES

South Central (region 4)

24,435 stores

The number of c-stores has grown for the second consecutive year.

There are 152,396 convenience stores operating in the United States, according to the 2024 NACS/NIQ Convenience Industry Store Count. That’s an increase of 2,222 stores from last year. For thesecond straight year, the industry recorded site growth of 1.5%.

32 FEBRUARY 2024 convenience.org

This year’s c-store count marks the highest number of stores since 2019, when there were 153,237 convenience store locations. The c-store count peaked at 154,958 in 2018.

The industry saw 1,383 new sites that sell fuel and 839 that do not sell fuel. Retailers with between 50-100 sites saw 9.7% growth, opening 423 sites.

U.S. Convenience Store Count

Central (region 5)

13,277 stores

Midwest (region 3)

23,851 stores

Northeast (region 1)

31,497 stores

The Southeast,

(region 2) has the most stores at

36,288.

It is also the fastest-growing region, with a

2.1% increase in store count.

120,061 convenience stores sell motor fuels vs. 118,678 stores that sold motor fuels in last year’s count. The number of c-stores that do not sell fuel is 32,335, up from 31,496.

A-size companies (1-10 stores) account for 63.1% of all convenience stores. E-size companies (501+ stores) make up the next-largest share with 21.6%. Maverik’s acquisition of Kum & Go, finalized in August, created a new, combined E-size company, resulting in fewer D-size locations.

With the U.S. population at an estimated 336 million, according to the U.S. Census Bureau, there is one convenience store per every 2,204 people.

Source: 2024 NACS/NIQ Convenience Store Count

NACS FEBRUARY 2024 33

U.S. Convenience Store Count Change in Store Count, Past Three Years Company Size by Store Count

2024

2023

2022

A (1-10)

96,156

94,928

93,994

B (11-50)

9,157

9,047

9,296

C (51-200)

9,033

8,791

8,051

D (201-500)

5,186

5,747

5,795

E (501+)

32,864

31,661

30,890

Top 10 States by Store Count as of December 31, 2023

Texas

16,304

North Carolina

5,797

California

Ohio

The top 10 states

Bottom 10 States by Store Count

remained the same, in the same order.

as of December 31, 2023

The state with the fewest convenience stores, Alaska, has 187 sites, which is fewer than Washington, D.C.’s 209.

Alaska

Vermont

Wyoming

Hawaii

187

12,177

5,742

Florida

Michigan

Delaware

Montana

New York

Pennsylvania

Rhode Island

South Dakota

Georgia

Illinois

North Dakota

Idaho

9,686 7,994

4,953

6,920

4,901 4,757

348

508

351

432

460

536

554 631 817

Source: 2024 NACS/NIQ Convenience Industry Store Count

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Thapana Onphalai/Getty Images

BECOMING

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DATA TOO L S CO NTI N U E TO B E A C ATALYST FO R CHAN G E I N TH E CO NVE N I E N CE I N DU STRY. B Y B E N N U S S B A U M A N D B AT YA L E V Y rik Ogren, president of loyalty solutions provider Patron Points, grew up in convenience retail. Back then, the best way to determine if an item was selling was to check how much supply was left. “Our backroom was bigger than our retail space,” he recalled. Even as more data started to get captured, the industry didn’t necessarily excel at using that data, Ogren said. “For years, we’ve had this information. But it was so much information that we didn’t know what to do with it. But now, our knowledge of what to do with this data has evolved.” There’s a slow-motion evolution happening with how the industry approaches data tools, even if what exactly constitutes a data tool isn’t well defined. The goal for this article is simple: Let people who know a lot about harnessing data share their take on where the industry is heading. THIS MOMENT IN DATA TOOLS Ogren suggested that there is an urgency to figuring out how to maximize in-store sales, a nod to the industry evolving from its reliance on fuel sales. “We really have to as an industry start to find who we are,” he said, adding, “We’re not just a petroleum industry anymore.” Ogren cited data about product affinity as most valuable for many retailers. “When someone buys coffee, what are the five things that are purchased with that cup of coffee? I think that really drills down to the simplicity of what’s important. The number one purchase with cofNACS FEBRUARY 2024 37

IT’S NOT HARD TO GET OFF THE GROUND RUNNING, BUT DON’T DO IT BLINDLY.”

fee is an energy drink. People are purchasing it for later in the day, because at 3:00 p.m. they need a lift. So that’s where there’s a bigger chance to drill down further and say, how do we set our stores accordingly? How do we promote accordingly?” Donnie Rhoads, director of business development at Vancouver, Washington-based The Convenience Group, noted that there are many vendor options available for retailers, regardless of size. “It’s not hard to get off the ground running, but don’t do it blindly.” Too many suppliers, too much software and data for the sake of data are some of the pitfalls to avoid, he said. Jason Zelinski, vice president North American Convenience retail at NIQ, said that many retailers “have come on what’s basically a full-circle journey. The 1970s way of doing things was keeping your own books, probably on paper and then eventually with an Excel database. That was first-party POS data showing the top-selling items, which helped retailers to make basic assortment decisions. Some of our smaller retailers are probably still doing that today. The second stage of that is when they started going to second-party data, market data.” This allowed retailers to not only see what they were selling, but to see what everybody else was selling.

“Then the next stage is actually back to first-party data, analyzing basket composition, internal price elasticities, loyalty switching and supply chain position,” Zelinski said. “First-party data got richer.” The fourth stage—the stage Zelinski said many top retailers are in now—is to “take the first-party data and enrich it with the second-party data. Bringing in market trends, enhanced product attributes, locational demographics and such.” Tim Tang, director at Hughes Network Systems LLC, offered a different version of the evolution of data tools, with an eye towards larger retailers. For Tang, the baseline is scan data, particularly around tobacco, and being able to monetize that POS data. “It’s shocking to me, actually, in this day and age, that so many store operators are not monetizing that,” he said. The problem, according to Tang, is that these operators are gathering data that is not properly formatted. Next, Tang pointed to retail media networks. The biggest operators capture data about their own customers and then can work with large CPG companies. According to Tang, these operators “can go to the CPG manufacturers and tell them, ‘I have this many visitors every month, 15% of them are

NACS STATE OF THE INDUSTRY ENTERPRISE For over 50 years, the NACS State of the Industry Enterprise has been the trusted source of convenience benchmarking data. NACS’ toolkit offers multiple platforms for different data needs, including insights on consumer behavior and financial, HR and compensation data. NACS State of the Industry Report®: The convenience and fuel retailing industry’s premier benchmarking tool, with the most comprehensive collection of data and trends for all convenience companies, from single-store operators to companies with thousands of stores in multiple states and countries. NACS SOI Talent Insights Dashboard: The largest repository of convenience-specific HR data, powered by an interactive database that allows users to drill deep into benefit, wage and recruitment data trends. Convenience Voices: Collects real-time decisions and opinions from your shoppers, providing the deep and rich insights into shopper behavior that convenience operators need to drive profits and success. Let NACS help your company plan its growth strategies. Contact Chris Rapanick (crapanick@convenience.org) to learn more. 38 FEBRUARY 2024 convenience.org

AI AND A NEW INTEREST IN DATA TOOLS Bill Ivers is the CEO and co-founder of Taiga Data Inc. As the company was getting off the ground in 2019, he did a lot of the initial outreach to retailers. “Back then, the reception I would get if I used the word ‘data analytics,’ it was almost like, ‘Whoa. I’ve heard nightmarish things about that.’” Retailers were hesitant because they had heard stories about companies snarled in an expensive tangle of third-party products, integrations and dashboards. “If you compare that reaction with where we are today, it’s unbelievable,” Ivers said. Retailers are past the point of hesitancy, he said, and are instead searching for the right tool. Tang also noted a renewed sense of urgency. “It’s more expensive to run a store in today’s environment than it was before. And that makes your opportunity for profitability more narrow.” Tang pointed to the emergence of AI as another factor contributing to a renewed interest in mastering data. Retailers are working towards using AI to be able to “put personalized and appropriate deals in front of the consumer.” But the major focus the past year or two has been on using AI to “control the stuff that happens inside your shop. … Cleaning up the inventory management, the back-office operations and the like, being able to understand what products should be sold and how much I should be carrying.” Ogren also pointed to AI. “If somebody can go park in the street, put their credit card in a charger on the sidewalk, go to dinner and 40 FEBRUARY 2024 convenience.org

THE VIEW FROM CONEXXUS David Ezell is the director of new initiatives at Conexxus. His top advice for retailers: “Number one on the list for best practices is make absolutely sure you have 100% free and clear no charge for your data. It’s your data.” Another key: “I would build my tech stack, things like POS, back office, credit card processor, all the sources and use of your data, the input of your supplier, as standard space as possible.” Conexxus has a vital back-end role tying together the technology in the c-store industry, allowing different programs to speak the same language by writing application programming interfaces—most often called APIs—and maintaining an API Data Dictionary with IFSF. “The dictionary saves a lot of additional work,” Ezell said. Without Conexxus maintaining standards for the industry, “it becomes kind of a crapshoot whether your analytics are going to work well or if you’re going to have to write a lot of code to translate your data into a format that your tools use.” Conexxus has many free resources for developers available at conexxus.org.

THEY CAN’T EVEN BEGIN TO FATHOM THAT THOSE THINGS CAN BE TIED TOGETHER.”

come back—how are we going to drive people to our stores? … We need this data. We need this AI technology to help us determine what our future is.” “Every single company is thinking of the newest integration for whatever new tech is popular outside our industry,” said Rhoads. “But I still think our industry is behind the eight ball,” he added, pointing to the complex technical structure and abundance of legacy tech. “If you go into virtually any other retail setting, they can be set up with a tablet on day one. And they are done. Check that box, and they have so much information on the back end and plug-and-play integrations. And I think we all know that’s just not the case when you have fuel in the mix.” Tang said that understanding the “technology debt” is going to be huge for the industry, and also pointed to the additional complexity

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teenagers, 25% of them are mothers with young children and another 50% or so are young professionals coming in at these times. And what would you like to do, Mr. or Ms. CPG manufacturer, in terms of promoting your products in this space?’” After that comes operationalizing POS data. “All these things that you could do with data, in terms of AI, anticipating customer needs, and the like, are wonderful,” Tang said. “But the big challenge is how to get started. Most specifically, I think the question is, ‘How do I take advantage of these capabilities with my existing tech stack.’”

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of fuel as part of the reason. “You have an industry that is basically serving a highly combustible product through a self-service mechanism. That fundamental part of the business limits how quickly you can evolve on that side of the house.” IMPLEMENTING DATA TOOLS Just purchasing a tool, or many tools, doesn’t mean insights start to flow. According to Rhoads, “You can get lost in ways to set up the different results that you want to get, just because there’s so much data that’s being collected. Build out a dashboard that captures that raw information and presents it to you in a way that’s not a foreign language. It’s really easy to get a tangle of different third-party services.” “If you’re having to manage the data more actively, and it becomes more of a headache than a solution for you, that’s a problem, obviously,” Rhoads said. “So just making sure that it works for you in the first place is half the battle.” 42 FEBRUARY 2024 convenience.org

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WE DO HAVE STRONG INDUSTRY ORGANIZATIONS AND RESOURCES TO HELP WORK THROUGH A LOT OF STUFF TOGETHER.”

Ivers of Taiga said a focus should be making sure the tools aren’t just shiny objects but instead are used as intended. “The digital transformation is about moving how you operate to be assisted by data and the technology tools that you’re using. They key there is getting staff adoption. When we think about our process for installing new software, it’s about 90% customer education and focusing on customer adoption.” John Oakley, president and co-founder of Taiga, echoed that thought. “Most of the effort is on the change management side of the transformation. How do I utilize data to do things differently, more efficiently, to drive profit, to optimize my sets.” Each person in the organization, Oakley noted, has different needs for data. Oakley said that for some retailers, “The mountain of data is just so cumbersome that they can’t even find the place to start, and others have the perception that there’s no way that they can be helped.” “Maybe they’ve grown through acquisition,” Oakley said. “They might have three or four different POS systems or a couple different back-office systems and each one is managed differently. They can’t even begin to fathom that those things can be tied together,” he said. “It takes a little bit for that to become believable.” Oakley noted that a key step is talking to other retailers that were in a similar place that have already gone through the process. Data hygiene is key. According to Zelenski, “The best-in-class players are making sure their own house is clean. Because even if you’re going to build an analytic and insight solution in house, you need clean data, or if you’re going to work with something you’re going to buy it off the shelf, you need clean data. I’ve seen some companies struggle where they try and do both at the same time. They’re trying to clean their data and they’re trying to build internally. And they find it doesn’t work. Maybe it could have, it’s just that their data was backwards.” Rhoads emphasized that retailers don’t have to do it alone. “We do have strong industry organizations and resources to help work through a lot of stuff together. And I think that’s really important.”

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It’s vital for operators to make their voices heard in their state capital. BY SHANNON CARROLL

hen new neighbors move in, maybe you bring brownies to introduce yourself and set the relationship off on a sweet note. After all, you never know when you might need a cup of sugar or a couple of lemons. For c-store operators who may eventually ask state leaders for a hand, the approach is similar. Eva Rigamonti, RaceTrac’s associate general counsel and executive director of public policy, said educating and connecting with lawmakers is key. “You need to make friends before you need them,” she said. “It can be a mistake to wait until you have a problem to get engaged. … You need to get to know lawmakers and their staff before you actually need them.” Rigamonti said reaching out early on can be a kind of “defensive action” because you never want to put the business in a position where—either because of ignorance or inaction—a legislator helps pass a law that drastically and negatively affects your business.

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C-Store

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macy State by State

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Most legislators don’t want to make life difficult for businesses.” “Most legislators don’t want to make life difficult for businesses,” she said. “They just don’t understand the nuance, the ins and outs of a particular business. So you have to educate them. You have to help them understand that doing ‘X,’ which seems like a small thing, is actually a really big thing.” Although c-stores need to be careful because of antitrust laws, they are permitted to collaborate on public policy. “What I think is wonderful about this industry is that we all compete on the street for business, but when it comes to policy, we tend to collaborate,” Rigamonti said. “We all want to row in the same direction. What’s good for the goose is good for the gander. It’s rare that companies truly disagree on policy because certain things impact us all similarly.” Alessandra Magnasco, the governmental affairs and regulatory director for the California Fuels and Convenience Alliance (CFCA), said every c-store owner should know their state legislators and make it a goal to meet with them once a year. That way, there’s a preexisting relationship, and the legislator will already know your name when an issue arises that you want to share your perspective on. She said to reach out to your representative’s district office (not their Capitol office) and tell them you’re a constituent who would like to request a meeting with your representative to discuss specific topics. Make sure, she said, to include any relevant addresses—such as your home address and all your business locations. “By getting involved and meeting with your representatives, you are giving yourself a seat at the table; [it’s] an opportunity to tell your story as a con46 FEBRUARY 2024 convenience.org

stituent and employer to the folks who were elected to represent you,” Magnasco said. “Being able to explain how policies will play out in the real world, and how they affect your business, your customers and your employees is invaluable knowledge to share.” While it can be intimidating to reach out to state legislators, Magnasco said that shouldn’t be the case: “You are the subject matter expert, not them. … You are their constituent—and a voter—[so] they should want to hear from you.” A call or meeting is good, she said, but bonus points if you can get your representative to visit your business or store so they can get a feel for your operation and the issues that exist or could arise. WORKING WITH STATE ASSOCIATIONS CFCA meets regularly with state legislators and regulators, testifies at hearings, submits comments on bills and regulations and sets up opportunities for its members to engage with their representatives. Magnasco said c-stores should reach out to their state association and ask if there are legislators whom they should prioritize meeting with or if there are topics that should be highlighted. Rigamonti is RaceTrac’s in-house advocate overseeing all federal and state policy. In addition, she is on the board of directors for the Florida Petroleum Marketers Association. She relies on state associations, too, because RaceTrac operates in many states. RaceTrac is a member of almost every relevant association in the states where it operates, though, and, regardless of whether Rigamonti gets involved in the specific policy, the company always works in tandem with the state association.

RaceTrac has even hired lobbyists in certain states. “We’ve made that choice because we believe that certain states, from a business perspective, are really important,” Rigamonti said. “And it’s hard for one state association lobbyist to stem the tide of a really big policy issue. You need boots on the ground. You need people to be there and paying attention.” DRILLING DOWN INTO STATE ISSUES CFCA’s Magnasco said, “States tend to be much more active than the federal government, which means a lot more [legislation] gets passed in a single year. If you are looking for an avenue for change, the state level can, oftentimes, be an easier hurdle to overcome because you have to convince a lot fewer people. Depending on the topic, there may be more regional support for a particular idea, which allows you to be more successful in getting the legislation across the finish line.” For example, at the moment, CFCA is working to allow ready-to-drink (RTD) cocktails in all c-stores and grocery stores. Right now, those stores need a unique and expensive license to be able to carry the product. Magnasco added that, on the flip side, you have to pay close attention to the state level, “because a lot more gets done in a single year.” For example, the California state legislature introduced over 2,600 bills in the 2023 legislative session. Rigamonti has found that “state legislators really want to get things done. It’s a shorter legislative calendar, so there’s a much more direct connection to constituents. So in some ways, even though [the legislature can be] polarized by party, they all can get more done, and they do work across the aisle better.” Amanda Gray, the executive director of Arizona Petroleum Marketers Association (APMA), said current congressional gridlock is pushing more and more policy down to the state level. But the strategy for working with

state legislatures varies depending on the particular issue and what legislative opportunities there are. “One of the reasons why advocacy is so interesting is because every issue is unique,” Gray said. “And there are a lot of, I’ll call them ‘colorful,’ personalities at the state capitol. Navigating even the same issue from year to year can look very different just because of the different mix of people involved.” She said flexibility is key. “There are some groups of lawmakers who we’re very aligned with on some issues and not on others,” Gray said. “So you have to be willing to say, ‘We’re together on this, and we part ways on that.” APMA works to build a coalition to show lawmakers that issues aren’t limited to c-stores, that there’s a broader impact for consumers or other businesses. Gray said an important aspect of influencing state policy is “partnering with like-minded groups.” Because there’s disparate legislation across all 50 states, Gray thinks it important to pay attention to what policies are being enacted elsewhere and what strategies are being used to do so. Likewise, she said it’s helpful to know what bad legislation is taking off in other areas, because it “gives you a chance to contemplate arguments and strategies to defeat those bad ideas in advance.”

Tell your story as a constituent and employer to the folks who were elected to represent you.” NACS FEBRUARY 2024 47

TIMING CAN BE KEY APMA’s Gray said, “Generally, regulations are not made to be quickly altered.” So it takes an extended effort to get a package through a state agency in Arizona. It can take 12 to 18 months.” Part of that time is because Arizona agencies have a robust stakeholder process, which gives APMA a chance to weigh in on legislation during the rule-making process. It took three years for the legislature to pass a program Gray is particularly proud of: an underground storage tank revolving fund program. “Some legislative efforts can get done in one session,” she said. “Sometimes it takes more than one year to get a bill through if there’s opposition or if the politics align against you.” Rigamonti noted that in the states RaceTrac operates in, there are different windows in which legislatures operate—it might be January to March, or it could be January to May. “You have a very short amount of time for your objectives, so you have to make the most of it,” she said. “A lot of times, stuff doesn’t happen because the clock runs out.” If the clock runs out in a state such as Texas, with a state legislature that meets only in odd-numbered years, and you haven’t achieved what you want to, you have to go back to the drawing board and wait until the session convenes again—although that means, Rigamonti said, you have a chance “to really make it right.” LOOK LOCAL Gaming has primarily been a state issue, and every state has different gaming laws. Utah has no gaming or lottery (although recently a state

One of the reasons why advocacy is so interesting is because every issue is unique.” 48 FEBRUARY 2024 convenience.org

representative proposed changing the lottery law). South Carolina allows no gambling but does have the lottery. Pennsylvania has the second-largest gaming market in the nation. Pace-O-Matic Inc., a software company that produces skill games found in c-stores, has had to navigate that. The company has its ears to the ground across the country. Michael Barley, the chief public affairs officer, said, “It depends on the state, and that’s really where we start. We look at state laws, we see how our games fit in. We approach the states where our games are legal, and then it’s a matter of education for prosecutors, for law enforcement and for legislators to let them know that, ‘Hey, we have a legal product, and we understand why there may be confusion or concerns. Here’s what we suggest, and here’s how we think we could get to a settlement that would put us in a regulated market.’” While no two approaches in states have been the same, Pace-O-Matic has honed its message over time. Barley said the organization has had success when it shows its potential impact on small businesses. “Bringing those stories up is important for the legislators,” Barley said. “We’ve really leaned on working with the small businesses and other folks in the industry [such as] some of the major players who are involved with us and who have our products or are benefiting from them.” He added, “Using our customers to help us push that up, as well, is really helpful.” Barley said, “It’s difficult to stand out sometimes” because legislators are seeing so many issues every day. “I think the best thing we can do is just continue to talk about how we do it and then also have constituents directly reach out to them to say, ‘Look, I know you’re working on a lot of things, but here’s something that works.’” Barley said, “Quite frankly, you could hire every government relations professional and have the best one in the world come in, but if the local person down the street passes the Kevin Bacon test where [a legislator goes], ‘Yeah, I know that person,’ it makes a big difference because those are their constituents.” “I tell them to tell their story,” Barley said. “That will be enough.”

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HOUSTON

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POWER IN NUMBERS The Greater Houston Retailers Cooperative Association is a leading example of the power of industry associations. BY SHANNON CARROLL rian Trout, the CEO of the Greater Houston Retailers Cooperative Association (GHRA) says his organization is “one of the best-kept secrets in retail”—and thinks it’s time the secret got out. “[In Houston, Texas,] we’re the fourth-largest market in the U.S.,” he said. “We represent close to 40% of the [c-store] marketplace where we operate. And people don’t know about us.” Trout thinks part of the reason the organization has had success is because Houston is a huge independent market that, as a result, large national retailers have found difficult to permeate. GHRA has over 1,100 members and 2,100 independent convenience stores in 37 counties in southeast Texas. The organization has around 240 employees, about 30 at the corporate level and the majority in its warehouse. Associations and cooperatives are common in the c-store and fuel retailing industry. The basic concept is easy to understand: strength in numbers. “We are the largest buying group in the industry in Houston,” Trout said. “So all the vendors, they want to get their product on our shelves. They know that we’re kind of like a Walmart, if you will, from an outlet perspective, and [the vendors] recognize that, and they lean in on it.”

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Kudos ribbon-cutting ceremony on September 28, 2023. GHRA developed this c-store concept and hopes to grow additional locations.

Hussain Karovalia, who owns six convenience stores and seven smoke shops and has been a member of GHRA since 2003, said he joined the organization because it brings all the vendors to one place. That allows him to get bargains on rebates and promotions that he can use to drive sales. Karovalia also said GHRA provides negotiating power, which gives him an advantage against competing businesses. The organization also helps him stay up-to-date with the market, negotiates with local entities and agencies on his behalf and makes it easier to obtain and maintain licenses and permits. “GHRA thrives, I would say, because of helping individual mom-and-pop stores to better leverage things,” Karovalia said, adding that the organization is “a group effort that helps the individual at the end of the day.” The GHRA board of directors are active members of the cooperative who volunteer their time—limited three-year terms—to serve the larger community of association members. Tanvir Ali, the former honorary secretary of GHRA’s board of directors and current advisor to the board, said the core value of GHRA is “the sheer negotiation advantage

The organization is designed first and foremost to help the members compete in the marketplace.” 52 FEBRUARY 2024 convenience.org

that you receive as an independent operator by using GHRA, and that’s something that all of us on an independent basis would not be able to do. Our members span from a single store owner to a 100-plus store owner, yet when you have 2,000-plus stores in a negotiation agreement, it makes a substantial difference, as you can imagine.” According to Imran Ali, the president of GHRA, “Being unified is the biggest strength that we have.” He highlighted GHRA’s promotions and planograms on how to sell product and maximize revenue within a particular cooler door, and its access to service agreements (particularly insurance) and electricity aggregations that individual stores or small groups don’t have access to. FIVE PLATFORMS “The organization is designed first and foremost to help the members compete in the marketplace,” Trout said. “Independent operators are wearing every functional hat under the sun, and GHRA provides resources across several of those functions to support our members’ ability to operate, keep cost of goods low and grow their businesses.” For what Trout called a “nominal membership fee each year,” GHRA gives back “oodles of money” to its members (forecasted in 2024 to be close to $30 million this year— which works out to an average of nearly $15,000 per store). There are five key platforms that define GHRA and how the organization provides value.

All members are required to participate in the first platform: the direct service delivery (DSD) platform, where the organization negotiates space allocation and rebates for shelf space by vendor, negotiates supply and commercial marketing agreements with vendors and conducts product assessment management. The association also puts on monthly promotional campaigns and a variety of extra programs members can participate in. The remaining platforms are optional. In 2016, GHRA rolled out its second platform, the warehouse—which Trout said “adds a significant competitive advantage”— and kicked it off in earnest in 2019 when the organization became a direct stamper of cigarettes (becoming the first group in Texas in 23 years to hurdle those requirements). “All the profits that a grocery supplier would make on cigarettes, we now pass those on to our members,” Trout said. The third platform GHRA offers is a foodservice program—Big Madre Tacos y Tortas—and the fourth is its first Kudos convenience store concept. (Both are explored later in this article.) Finally, GHRA has a fuels platform that kicked off last year when the organization started delivering fuels. “The whole idea is to aggregate, as best we can, our members’ purchases of fuel so that we can pass on the cost savings that the middleman is getting today,” Trout said. GHRA continues to try to add services that are important to its members. The organization advocates for its members, partners with a variety of vendors to support community events, engages with the city’s mayor and task forces, tries to shape policy and laws, leans in heavily with trade associations and supports advocacy groups. KEEPING IT RUNNING With 2,100-plus c-stores in the organization, communication is key, according to Trout. So GHRA conducts town hall meetings with its members around the counties the organization operates in, educating members on what changes are coming, what the rebate structures will look like the following year, what the reset schedule is (and who will be doing it) and what their planograms and promotional activities will be for the year.

GHRA has 38 Big Madre Tacos y Tortas locations, with 16 others planned. The Tex-Mex eatery was developed by GHRA.

The organization has member service representatives who visit stores monthly and who help operators stay compliant with commercial marketing agreements. Over a year ago, GHRA created a call center to better serve its members. Trout shared that GHRA employees also sit down quarterly with vendors and conduct a business review, asking questions such as: How’s it going? Where are some opportunities, and what can we do next? How do we enhance value? What are some of the challenges we need to dive in on and try to overcome? How can we help you sell more stuff tomorrow than you did today? COOKING UP SUCCESS Two ways GHRA is helping its members and growing the organization are through its Big Madre Tacos y Tortas offering and Kudos, its new concept store, the first of which launched in September 2023. “With all the competitors coming into our market, specifically in the Houston surrounding areas, we need to set ourselves apart,” Imran said. “We want to kind of align all of our members to make sure that if we need to compete against any of these big players or competitors, we’re all on the same page.” NACS FEBRUARY 2024 53

While some stores might offer the full Kudos platform, GHRA is looking into developing Kudos-lite stores.

An annual trade show allows GHRA retailers and suppliers to connect.

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Big Madre Tacos y Tortas is a Tex-Mex brand that was developed in-house by GHRA and that can be added to any member store. It was designed to make things easy on store operators—a couple of people can manage the whole kitchen. And while the proteins are cooked in-store, the produce and other items are prepackaged and delivered in ready-to-use fashion. GHRA licenses the offering to its members. The contractual relationship includes buying from GHRA’s authorized vendors. The organization does the advertising and manages Big Madre Tacos y Tortas on Uber Eats and DoorDash. At the moment, GHRA has 38 Big Madre Tacos y Tortas locations, with 16 others in the pipeline. The Kudos concept came from a similar desire for GHRA to compete on a larger scale. Kudos is a gas station, c-store and kitchen built around three things: a delicious, high-quality food and beverage program designed to position the store as a restaurant destination; customer connection; and improving local communities through work on various social causes.

In a press release announcing the Kudos launch, Trout said the store’s customers “are good, honest people, and we want to celebrate them and treat them like the heroes that they are. We are determined to make people feel good when they walk into our stores and to improve the communities we serve.” Hand-breaded chicken tenders and chicken sandwiches are Kudos’ main offerings, but the store also offers breakfast items, including biscuits, as well as tacos, wraps, salads and bakery items. Kudos will offer a line of private-label sweets and snacks from local artisans and will include a full-service espresso bar. Trout said the Kudos kitchen is a “highbrow food offering that is very, very good” that “may evolve into something more robust.” The organization partnered with Impact 21 on brand development and is leaning on industry experts to formulate and develop the Kudos offering. The Kudos platform has adopted a coffee barista program, and GHRA is looking into remodels and adding new-to-industry stores. While some stores might offer the full Kudos platform, GHRA is looking into developing Kudos-lite stores that come with the food platform but may not be what Trout called “the full monty,” with a barista, freshly squeezed lemonades, teas, etc., because of space or equipment constraints. Trout’s goal is to rapidly grow Kudos in the greater Houston area within the next few years. “If we grow Kudos in the future as we plan, that will make us the largest branded group in Houston,” he said. “We are very large anyway—we saturate the market with our network—but the consumers don’t know us the way that the vendors do, so the Kudos brand is a way for us to communicate with the consumer and try to drive additional repeat traffic to the stores, sophisticate the

offers, provide intelligence around consumer behavior and promotional activity, leverage technology and more.” Naveed Ali, a GHRA board member who owns numerous convenience stores with different partners, said, as of press time, he was launching a Kudos store in New Caney, Texas, in January 2024. “What made me open [the store] is because I believe [the Kudos] concept was missing,” Naveed said. “The whole concept came along three years back with the thought that, ‘Hey, we need our own brand that can stand up against chain-like stores.’” Trout hopes Kudos can achieve that for GHRA. At the moment, “with 2,100 disparate branded locations, there’s no one voice.” Naveed added, “This concept is for the multistore owners who can bring multiple stores under one concept. So I’m looking at it in a way that if I build one store … word will spread, and then we’ll have a domino effect.” FUELING GROWTH Where does GHRA want to go next? Tanvir said, “The next big step for GHRA is: How do we take what we’ve grown for the last 25 years and leverage that and provide the same value to members on a national level?” He highlighted the need for constant evolution: “If we’re not putting the right pieces in place for [our members], downrange, come five years or 10 years, competition—whether it be national or local—is going to provide a significant impact. For [our members] to compete, we need to be ahead of the game at all times.” Part of keeping its members engaged, Trout said, is that growth. The organization is investing a lot in its warehouse and is refreshing its vehicles. The warehouse operation has been growing so quickly that GHRA is also looking for an additional warehouse space to expand into, and the space will become available to nonmembers. “We could do a lot more if we had the right resources,” he said. “There’s no shortage of ‘Hey, we could do this’ or ‘Hey, we can do that.’ Everybody’s leaning in and coming up with ideas. You can’t advance every idea, so it’s probably more important to say what we won’t do than it is to say what we will do, because the ideas are just tremendous.”

Representatives of GHRA presented a $40,000 check to the Houston Food Bank at the 2023 GHRA trade show.

GHRA’s board has a number of younger members who are focusing on concepts such as technology, data utilization, AI, machine learning and automated replenishment to help streamline operations and take costs out of the system. Because GHRA licenses its brands and doesn’t franchise them, the Big Madre Tacos y Tortas and Kudos offerings have high potential for rapid growth. The organization is looking into expanding both beyond its members—with a goal of 150-200 Big Madre Tacos y Tortas and 200-300 Kudos stores under GHRA’s umbrella over the next few years. “We’re leaning in and continuing to add value to the membership,” he said. “Our net trajectory is growth, right?” GHRA’s fuel program is going to be a “huge” focus for the organization, according to Trout, and is expected to grow rapidly over the next few years. “It’s kind of the chicken and the egg thing,” Trout said. “Our members are not contractually required to buy fuel from us. We’re working to set up those fuels supply commercial contracts because it’s commercially advantageous for them, which will help us buy better, which in turn gets them better pricing because we pass all the profits on to the members.” He added: “It’s an evolution and a journey, not a sprint, but we’ve got some pretty audacious goals.”

It’s an evolution and a journey, not a sprint, but we’ve got some pretty audacious goals.”

Shannon Carroll is a contract writer/editor for NACS. NACS FEBRUARY 2024 55

Cool New Products Guide This advertorial-style guide of services and packaging appears monthly and is an information-packed tour of ideas and approaches that can change how consumers view your store or choose your brand. It spotlights the newest thinking in convenience and fuel retailing and gives you an advance look at ways of staying in front of industry trends. Products are categorized the same way we organize the Cool New Products Preview Room at the NACS Show each year in October— New Design, New to the Industry, New Flavors, Health & Wellness, Green (EcoFriendly), New Services and New Technology. Products are considered “new” this year if they’ve been introduced since October 2023. The products featured here also can be seen in the Cool New Products Discovery Center at www.convenience.org/coolnewproducts.

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GAS STATION GOURMET

February

Looking Back for Future Ideas Al Hebert looks at the best foodservice ideas he’s encountered in the past year.

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thought this was the perfect time to look back at 2023. Were there ideas in last year’s Gas Station Gourmet that you could implement in your store in 2024? Let’s look back.

BUILDING A GREAT TEAM In February, this column profiled The Old Koke Plant in Brookhaven, Mississippi. It’s no surprise that hiring the right cooks is key to great food. Passion is crucial. Cathy Pigott, retail operations manager, has a simple strategy. “I had them tell me about cooking,” she said. “Do you like to cook? We hired no one who liked to cook—we hired the ones who loved to cook. The interviews were personal. We wanted to know where they learned to cook. How did they learn to

cook? What made them love to cook? The ones who love it have a history.” Cooks are creative, and they all have different styles. Pigott gives them the freedom to do what they love. “This is a challenging environment to retain workers, especially cooks,” Pigott said. “The Old Koke Plant has experienced almost no turnover.” Once you hire staff, how do you keep them? Pigott said, “It’s a lot about hugs.” For the July issue, I talked with Chase Wilmoth of Ozarks Travel Center in Mount Vernon, Missouri, and learned he focuses on the person and not the job history. “In my mind, it’s people skills, not past experience. If you can talk to people, be friendly and carry on a conversation, it’s better than experience. We can train people to be good employees,” he said. “We don’t want to be the place where people are working and they’re looking for a job that pays better, we want to be the place that pays better,” he added.

July

April CREATING SIGNATURE FOOD A customer’s passion for your menu items often comes from painstaking attention to detail. For the March issue, I had a chance to talk to Chef Robert Scott at America’s Street Food in Little Rock, Arkansas. His thoroughness is key to bringing customers back again and again. “Customer like our sandwiches,” Scott said. “The burger we use is fresh-ground rib-eye. We make our own corned beef and Thousand Island dressing for the Reuben. We smoke our pulled pork for 14 hours.” He added, “I had a guy come in from North Carolina. He was a doctor, and someone told him to come check us out. He said it was the best Reuben he’s ever had.” Customers can tell the difference. In the April issue, Alan Shepherd at the Rocket Market in Spokane, Washington, shared a few things that set his store apart. He said his foodservice is all about “cool or interesting food.” Again, this is about taking those extra steps that will take your menu items to the next level. To many, bread seems simple. Not here. Shepherd has a friend who makes the bread for the store. Shepherd said, “He uses the sourdough method. He only uses heirloom grain from within a 100-mile radius. They’re old native varieties that might have gone away. They’re super interesting. We sell his bread—it’s $10 a loaf. “This is the best bread I’ve had. It’s all made by hand. He knows his

March grains. No one scoffs about the price. It’s incredible bread. These are highly unusual ancient grains.” He added, “It’s all sourdough. People who are gluten-sensitive can eat his bread. His whole bakery is wood-fired. It’s super unique. We are wildly fortunate to have this guy. It’s a true art form to use this oven.” Deep in the heart of Cajun Country, Hebert’s Mini Mart created a buzz with chicken salad. In September, owner L’ree Gates Hebert told us how something as simple as chicken salad can make a store a destination. Simple? Maybe it’s not so simple. What sets this chicken salad apart? “I really think it’s the chicken we use,” Hebert said. “We’re a Krispy Krunchy store. We’ve been Krispy Krunchy almost since the beginning. The tenders are marinated with their (Krispy Krunchy) seasoning. It’s what NACS FEBRUARY 2024 59

GAS STATION GOURMET

makes the chicken tenders so good. Because they’re marinated, that flavor profile shows up in our chicken salad.” Customers can buy a chicken salad sandwich, but here, the chicken salad is sold by the pound. “When customers go on road trips, they bring this along,” Hebert said. “We just had a group of people going to the beach stop in and buy it so they can make sandwiches. Every time we’re invited to a party, we’re asked if we’re bringing chicken salad.” She added, “Consistency and simplicity make our food what it is. We don’t try to overdo things. If you eat chicken salad from us today and you eat it a year from now, it’s going to be the same.” Chris Cornelis had a successful food truck called Birria Boys. He was looking around Elk Grove, California, for a brickand-mortar location and ran across a deserted Blimpie in a Shell station and saw the potential. Gas station food in this part of California is uncommon. “We brought life to it,” he said. In the October issue, Cornelis explained that the star of this food show is birria, a traditional Mexican soup or stew made with beef short rib. Preparing this popular birria is a process. First, it is seasoned with 20 spices. “It takes about an hour and a half of prep prior to cooking,” he said. “We cook it for nine hours. By the time it’s done, there is no bone, no cartilage, and it is shredded on a taco.”

October

60 FEBRUARY 2024 convenience.org

September A common theme is a relationship to the community. Cornelis feels strongly about giving back to the people who have helped him become a success. “A big thing for us is community service,” he said. “Our first year in the food truck, I teamed up with my friend who had a car shop. We collected toys for Christmas and got about 1,000 toys. This year at the store, we teamed up with our local fire department and helped raise money for the local burn unit.” MAXIMIZING SOCIAL MEDIA Store operators wear a lot of hats. Social media may be low on their list of priorities, but a little time goes a long way. In the January issue, this column introduced you to The Corner Grocery in Loreauville, Louisiana. During the pandemic, social media was a lifeline to its customers. Co-owner Mandi Pooler said, “During Covid, I came in and started working the page. I said, ‘Let’s post a picture of the plate lunch every day at 10:30 a.m. We noticed if we didn’t post a picture,

sales might not be as good. During the pandemic, we’d post pictures of hardto-get items, and immediately you’d see people walking in the doors.” She added, “In this rural town, people follow social media. Word travels fast. People call each other to let them know the items are available. We’ve also done some employee spotlights. We post more during the holidays—things that are relevant to the season.”

January

May

BUILDING COMMUNITY CONNECTION If you want to know how important your store is to your community, just wait until a natural disaster. On August 27, 2020, Hurricane Laura made landfall in Lake Charles, Louisiana. It packed 150-mile-per-hour winds and came with an 18-foot storm surge. The community was devastated. ShopRite/Tobacco Plus No. 20 was destroyed. Two days later, a small group from the management team was implementing a plan to help the community get back on its feet. Director of Food Services Angelle Cloud talked about that in May. “Everything was out,” Cloud said. “I didn’t see any power coming or going. There was a lot of debris in the road. You were trying to drive around phone poles and roofs. We were down here before the road crews. “The community was in shock, but so were the employees. Taking care of the staff members directly impacted was a priority. The company tried to find places for employees to stay or get generators to power their homes if they could stay in them.” If you’ve never seen a community after a hurricane, it looks post-apocalyptic. The ShopRite/Tobacco Plus team brought in a food truck and started cooking hamburgers. Residents came in droves. “It felt like we were the only people selling food,” Cloud said. “We could hardly walk out of the truck because so many people were there for food. For us to offer a hot meal was huge. They would say, ‘My kids just want a hamburger.’

People were so kind even though things were so broken. They would pull up and ask us if we needed anything.” The hard work paid off in goodwill. People knew ShopRite/Tobacco Plus cared. Cloud recalled the day cheese slices arrived: “When I told a lady she could have a cheeseburger, she almost cried. It was so simple, but it meant everything. We offered everything we could. We wanted to live up to the love we built with them in the food truck.” If you’re a regular reader, you’ll find that so many successful c-store food programs don’t just include food but also a genuine, meaningful experience for the customer.

June At Geaux Fresh in Broussard, Louisiana, it starts the moment a customer opens the door. When I walked through the door, the employee behind the counter, Kim, made eye contact and offered a warm greeting: “Welcome, can I help you?” I was so happy to be there, and it only took five words. Those words are no doubt heard thousands of times each day in gas stations across the country. But it was not just the words but the way Kim said them. She made me feel welcomed. It felt sincere. Working with employees to accomplish this might be worth the effort. In June, owner Marlo Faucheaux gave me a little insight into how her team creates that special relationship with customers. Before she began ex-

plaining, I saw it firsthand when a man walked up to the counter. “That’s Dwayne,” Faucheaux said, pointing to the deli counter, “Every day, he orders red beans and rice with an extra piece of sausage. He knows all of the girls, and they know him. … We know about 75% of our customers.” The staff was talking to Dwayne as they fixed his plate. Does he feel valued? Yes. Does he feel like this is his place? Indeed he does. I saw this happen again and again. Keep in mind that this doesn’t just happen. You have to create and foster this environment in your store. Faucheaux said, “We are extremely blessed with the team we have. They are the faces of Geaux Fresh and one of the most important reasons our customers love our store.” PRESERVING A SENSE OF FUN You want to serve great food in your store. You want to offer a good value. You want customers to feel good about your staff. What if you have a fun place and customers just like being there? The Hoagland sisters own Red Dirt Jack’s in Medicine Lodge, Kansas. The food is very popular with customers. They’re serving Grandma Eva’s recipes—who wouldn’t love grandma’s meatloaf? There is one question, though: Who is Jack? He is a life-size, stuffed miniature donkey that’s brought that sense of fun to the store, and customers love him.

August NACS FEBRUARY 2024 61

GAS STATION GOURMET

The sisters brought him on trips, and he became well-known through blog posts and social media. He’s on t-shirts sold at the store. When customers go on vacation, they take photos wearing Red Dirt Jack t-shirts. This is no ordinary stuffed animal. He has a steel skeleton, so kids come into the store and jump on his back. If you talk to the Hoagland sisters—Marsha, Rhonda and Diane—it doesn’t take long for their fun spirit and zest for life to come over you like a wave of marshmallows and sprinkles. Customers of all ages pick up on this. Diane said a customer told her that her 12-year-old son said he wanted to go to the store. He told his mother, “I feel good when I go in. I don’t know what it is, but I like it.” CREATING FOOD THAT’S AFFORDABLE AND LOCAL Keeping your ingredients local can go a long way when it comes to flavor and freshness, as Calloway’s Tennessee Kitchen in Maryville, Tennessee, knows. In the November issue, Calloway Oil Company Vice President Trenton Langston put it simply: “We’re a family business. We want to have the best ingredients and feed other families as we would feed our own. We try to stick to a simple pantry of ingredients that you

November 62 FEBRUARY 2024 convenience.org

December might have in your own home but use them in a way that celebrates the quality of the food and creates fun experiences right in our gas stations.” Calloway’s Tennessee Kitchen had a great idea. The team spent a couple of months working with the Tennessee Department of Agriculture, the Nourish Knoxville Farmers Market and the University of Tennessee Culinary Institute. “We met with the local agriculture extension agent to see how we could go 100% local but then realized we would need to start with a few key items and work on expansion,” Langston said. “We don’t claim to be local all the time, but we are continuing to try.” Simple food always seems to work. One of my favorite quotes of the year came from this story. Langston said, “A good burger doesn’t have to be outlandish. Our goal is to present you with a great all-American cheeseburger with fresh ingredients and local produce whenever available.”

suggested visiting Che Butter Jonez in Atlanta. You will feel the vibe in this unique eatery. Husband-and-wife team Malik Rhasaan and Detric Fox-Quinlan own this unique eatery located next to a Chevron station. Rhasaan knows people are deeply connected to food. Successful chefs often tell me their secret ingredient is love. There is something to this. “I’m sharing a piece of me in every entree I create,” Rahsaan said. “It’s been great introducing people to flavor profiles they never knew they needed.” He added, “Food should be comforting and have nostalgia attached. Food is connected to people’s emotions, and luckily for me, our customers find comfort in my food. Many come to decompress, and I watch them let all of the pains of the day disappear through a great meal. It’s satisfying for them and for me. We’re providing a service that taps into a need of our customers.”

HONORING THE ROAD TRIP I took a little drive with two great American road trippers, Stephanie Stuckey (chair, Stuckey’s Corp) and Stafford Shurden (creator of Gas Station Tailgate Review), and Stuckey

Al Hebert is the Gas Station Gourmet, showcasing America’s hidden culinary treasures. Find him at www.GasStationGourmet.com.

CHEERS TO THE BIG GAME The biggest game in sports is about more than sports – it’s the first nationwide party occasion of the year. Ensure your store has a full roster of fan favorites such as Smirnoff, Captain Morgan, and Crown Royal. As your customers gear up for the big game, they’ll be seeking out these Super Bowl-worthy brands on your shelf. So stock up now and score a win for your bottom line! For additional details, please get in touch with your local Diageo Distributor.

PLEASE DRINK RESPONSIBLY. Diageo, New York, NY

CATEGORY CLOSE-UP ALTERNATIVE SNACKS

A Better For You Alternative The alternative snacks category delivers the unusual flavors consumers crave. BY SARAH HAMAKER

ave you tried a freeze-dried mango? What about mushroom jerky or taro bites? These and other alternative snacks are pushing category sales and interest, although jerky remains the alternative snacks workhorse. “Alternative snacks are an important category for convenience stores, as it’s one where suppliers can experiment with new flavors,” said Emma Tainter, NACS research analyst/writer. According to Mark Falconi, vice president of sales and strategy for Greenridge Naturals, “Shoppers are moving away from traditional c-store snacks to healthier snacking options within the c-store channel.” ALTERNATIVE SALES Alternative snacks dropped slightly in terms of its percentage of in-store sales to 1.63% in 2022 from 1.91% in 2021, according to NACS State of the Industry 2022 data. “The alternative snack category is a bit of a mixed bag on performance,” said Dan Meyer, consumer insight manager for convenience stores at General Mills. “Shoppers are 64 FEBRUARY 2024 convenience.org

making clear choices in snack spending, and we’re seeing c-store shoppers buying more bulk items in mass and club channels more recently (and taking it with them).” But that doesn’t mean c-store sales are stale. The averages sales per store increased 5.1% year over year, from $3,650 in 2021 to $3,836 in 2022. At Mighty Moose Mart in Keene, New Hampshire, the “alternative snacks category products generate more excitement than our traditional offerings,” ac-

46.53% the average gross margin for alternative snacks in 2022

Source: NACS State of the Industry Report® of 2022 Data

Industry Sales

% of In-Store Sales

1.91% 1.63% 2021

2022

Avg. Sales/Store

$3,650 $3,836 2021

2022

% of Stores Selling

99.1% 99.7%

JIANG HONGYAN/Shutterstock

2021

cording to owner Chris Rietmann. “The category has higher price points and better margins, too.” Last year, Mighty Moose Mart opened a second location bordering a college campus. “[Students] want these alternative and healthier options—and our sales numbers support this,” he said. At the more than 100 locations for Duchess Convenience Stores, the alternative snack category is doing well overall. “However, the price point for these items is often a little higher than tradi-

tional snack category items, so we are seeing the category soften a little bit,” said Nathan Arnold, director of marketing for Englefield Oil, the parent company for Duchess, which has locations in and around Ohio. “Alternative snacks play into two different demographics in our stores—those customers looking for a quick, on-the-go item or a bundle to a sub or sandwich. Plus, there’s another group of individuals who are sourcing these items for a specific dietary need as their whole meal.”

2022

Source: State of the Industry Report® of 2022 Data

ALTERNATIVE TRENDS Overall snack trends affecting alternative snacks include permissible indulgence and unusual flavors. NACS FEBRUARY 2024 65

CATEGORY CLOSE-UP ALTERNATIVE SNACKS

NACS CSX Benchmarking Database, Per Store, Per Month Sales

n 2020

n 2021

n 2022

n 2023

NOV

DEC

$3,136

$3,500

$3,000

$2,500

$2,000

$1,500 JAN

FEB

MAR

APR

MAY

JUN

JUL

AUG

SEP

OCT

The Power of CSX Data CSX, the engine behind category metrics and NACS State of the Industry data, provides current and customizable tools for financial and operational reporting and analysis in the convenience industry. Retailers can measure their company by any of the myriad metrics generated via our live database. Contact Chris Rapanick at (703) 518–4253 or crapanick@convenience. org for a complimentary executive walkthrough.

66 FEBRUARY 2024 convenience.org

“We’ve seen consumers become more unashamed in their snacking as they look to reinforce joy and reprioritize well-being coming out of the pandemic and inflationary environments as a coping mechanism,” Meyer said. “Alternative snacks are the primary go-to for consumers looking to snack.” Last year, hot new flavors with Korean, Indian and Mexican influences appeared in meat snacks, nuts and other snacks throughout the category. “Alternative snack suppliers used unexpected flavor combinations and limited time offers to induce impulse shopping in the category,” Tainter said. “Looking forward this year, some new flavors include floral, Spam, spicy

ranch and shawarma. New ingredients popping up in alternative snacks include sweet potato, mushroom jerky, taro bites, freeze-dried mango and legumes as a base for chips.” In addition to new flavors, Mighty Moose Mart’s Rietmann sees low carb/ high protein as the desired characteristics in snack products for the category. Meat snacks continued to dominate category sales, with 50.6% of sales in 2022, nearly double the next subcategory, other alternative snacks, which accounts for 25.5% of category sales, according to NACS SOI 2022 data. Greenridge Naturals’ Falconi sees the meat stick subcategory pushing many of the category trends, such as meat sticks in jalapeño cheddar and spicy chili flavors. “Beef sticks increase basket rings as well as provide healthier snacking options for c-store shoppers,” Falconi said. At Platte Street Mercantile, protein-forward products leads the alternative snack category. Said Janine Williams, CEO and founder of Impulsify, which runs mini convenience stores inside hotels, and co-founder of Platte Street Mercantile in Denver, “Much like the

Ansonsaw/Getty Images; Domnitsky/Getty Images

Source: NACS CSX Convenience Benchmarking Database

From the freezer To The Fryer To The Customer Hold time of up to 4 hours under heat lamps FLAVORS: - Bacon Cheddar & Chive - Crab Feast - Bacon Jalapeno - The Reuben - Buffalo Chicken - Chorizo Burrito - Breakfast Skillet - Cheese Bomb Request Samples Today!

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CATEGORY CLOSE-UP ALTERNATIVE SNACKS

Subcategory Data Same-Firm Sample, Per Store, Per Month Alternative Snacks

Percent of Sales

Avg. Sales/Store

Avg. GP$/Store

Gross Margin %

2021

2022

2021

2022

2021

2022

2021

2022

Meat Snacks

53.5%

50.6%

$1,953

$1,941

$891

$921

45.61%

47.45%

Other Alternative Snacks

24.2%

25.5%

$883

$979

$356

$391

40.30%

40.00%

Health/Energy/ Protein Bars

17.4%

19.2%

$635

$738

$322

$402

50.68%

54.44%

Granola/Fruit Snacks

4.9%

4.7%

$179

$66

$71

36.64%

39.70%

Total

100%

$3,650

$3,836

$1,634

$1,785

44.77%

46.53%

Source: NACS State of the Industry Report® of 2022 Data

Another trend we’re seeing in alternative snacks is a focus on adding energy to common breakfast items.”

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low-carb craze of the early 2000s, the ever-growing 25-, 35-, and 45-gram protein packaging attracts consumers wanting to lose weight, gain muscle, stay fit or just mimic their Instagram celeb favorites.” Duchess customers are still snapping up low-carb and keto snack offerings. “Another trend we’re seeing in alternative snacks is a focus on adding energy to common breakfast items, such as cereal or granola bars,” Arnold said. Williams pointed to the growing popularity of sleep-friendly snacks for evening treats, especially in Platte Street

ALTERNATIVE INTEREST “Co-promotions can help extend alternative snacks as an add-to meal, such as bars plus coffee or snack mix and hot food,” Meyer said. “We’ve seen some back-and-forth growth in lunch and dinner more recently, especially as QSR prices are rising, making convenience stores more competitive.” In Duchess’ new prototype stores, the alternative snack category has been moved to more prominent areas. “New merchandising fixtures give these items better space and visual presence,” Arnold said. “Plus, we focus on promotional opportunities in this category, as it tends to perform well for us.” Mighty Moose Mart merchandises the category at checkout or with prominent end cap displays. “We also utilize twofer promotions to increase volume, and the higher margins in this category justifies those promos,” Rietmann said. “Traditional offerings remain at the forefront of consumers’ minds, but they sometimes see the alternatives as an offsetting positive decision to their basket.”

Juanmonino/Getty Images

Mercantile’s hospitality and multifamily stores. For example, customers have been flocking to snacks rich in healthier ingredients that support sleep, such as B6, calcium, magnesium and zinc.

CATEGORY CLOSE-UP ALTERNATIVE SNACKS

“We see the alternative snacks category as continuing to grow and integrate more with established categories,” Rietmann said. Meyer added, “We believe this category will continue to be critical to the future of in-store success for c-stores. … This, along with chips, will likely be where continued innovation will come in, with more and more lines blurred, like mashing up candy in snack mixes or new bold flavor profiles.” In hotel locations, Williams said Platte Street Mercantile carves out “dedicated shelf space in all of our grab-and-go store designs and [creates] product assortment strategies for these categories to ensure hotel guests have access to snacks that meet special dietary needs as well as health and fitness goals.”

ADVERTISER INDEX Contact Information

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Altria Group Distribution Company...........Inside Front Cover AGDCTradeRelations@Altria.com www.altria.com www.tobaccoissues.com Buzzballs LLC...................................................................................... 41 (972) 242-3777 www.buzzballz.com Cash Depot .............................................................................. 3 (800) 776-8834 www.sales@cdlatm.com www.cdlatm.com

Cool New Products Guide............................................................56-57 www.convenience.org/Media/NACS-Magazine/Cool-New-Products

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Thank you to these advertisers who have demonstrated their support of the convenience and fuel retailing industry by investing in NACS Magazine.

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International Dairy Deli Bakery Association.................................... 17 www.iddba.org MIPOD..................................................................................................57 www.mipodwholesale.com Liggett Vector Brands Inc............................Inside Back Cover (919) 990-3500 www.liggettvectorbrands.com Monster Energy Company..................................................... 31 www.monsterenergy.com NACS Convenience Matters Podcast................................................. 56 www. conveniencematters.com NACS Day on the Hill.......................................................................... 71 www.convenience.org/events/Day-On-the-Hill NACS Talent Insights Dashboard.......................................................57 www.convenience.org/Research

Diageo Beer Company USA............................................................... 63 www.diageo.com Ganymede Technologies Corp dba J3POS........................................ 69 (888) 600-5522 sales@j3pos.biz www.j3pos.biz Goya Foods Inc................................................................................... 13 www.goya.com/en/

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Sarah Hamaker is a freelance writer, NACS Magazine contributor and award-winning romantic suspense author based in Fairfax, Virginia. Visit her online at sarahhamakerfiction.com.

Pace-O-Matic........................................................................... 9 (770) 441-9500 (877) 448-4263 www.paceomatic.com Polar King International Inc............................................................. 39 (866) 576-7645 www.polarking.com www.polarleasing.com www.polarkingmobile.com

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Premier Manufacturing.................................................. Back Cover, 5 (636) 537-6800 www.gopremier.com Ready Training Online...........................................................43 (800) 247-8514 www.readytrainingonline.com Shipley Do-Nuts................................................................................ 56 www.shipleydonuts.com Stone Gate Foods...............................................................................67 (952) 445-1350 www.stonegate-foods.com Swedish Match North America LLC (Game Leaf)................. 49 (800) 367-3677 www.Gamecigars.com Swedish Match North America LLC (ZYN)............................. 15 (800) 367-3677 www.smna.com Trion......................................................................................................7 (800) 444-4665 www.triononline.com Xcaliber International............................................................35 www.xcaliberinternational.com

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We see the alternative snacks category as continuing to grow and integrate more with established categories.”

March 12-13, 2024 Washington, DC

Convenience

United

Join us as we unite as an industry on Capitol Hill to advocate for your business and—ultimately—all convenience and fuel retailing establishments across the United States.

BY THE NUMBERS

Do Your Customers Want Fries With That? According to 2023 Convenience Voices data, American consumers are most likely craving burgers and fries after their trip to a convenience store. When c-store shoppers were asked what type of quick service or fast food they planned to purchase somewhere else within the next 30 minutes, 28.6% of respondents said they would purchase burgers (and 27.1% said they would purchase fries). The pursuit of burgers and fries is a uniting theme across generations. There was little variation between age groups when it came to the top choices of foodservice options, which included Mexican and chicken. An appetite for burgers and fries was highest among Gen Z (56.1% combined), Millennials (58.4%) and Gen X (49.6%)—and if you

are wondering where Boomers are, they are headed to the nearest fried chicken place and pairing their poultry with fries (48.3% combined). These survey results highlight a longtime challenge for convenience retailers: food leakage. Customers purchasing food at another location, usually a QSR, after visiting a c-store has been a well-known problem for years. The West (Region 6) has the highest food leakage rate (31.9%), followed closely by South Central (Region 4) at 29.7% and Southeast (Region 2) with 26.9% of customers purchasing their meals elsewhere. The national c-store foodservice leakage rate is 25.7%. With more than a quarter of customers leaving to purchase food elsewhere, it seems like a huge opportunity for convenience store operators to offer exactly what customers are looking for—before they walk out the door.

WHAT TYPE OF QUICK SERVICE OR FAST FOOD WILL YOU PURCHASE SOMEWHERE ELSE WITHIN 30 MINUTES? 35% 30% 25% 20% 15% 10% 5% 0%

Gen Z

Millennials

Gen X

Boomers

National

Generation CV Fries

Burgers

Chicken (mixed pieces, wings, fingers, etc.)

Mexican (tacos, burritos, empanadas, etc.)

Italian (pizza, calzones, mozzarella sticks, etc.)

Breakfast Food

72 FEBRUARY 2024 convenience.org

ameriCan grown • manufactured • owned

ThaT’s The Premier advanTage Premier Manufacturing, Inc. is owned by U.S. Tobacco Cooperative, a cooperative of proud American farmers who grow the finest flue-cured tobacco in the U.S. to make high-quality, value-priced cigarette brands for adult consumers.