Convenience Store Decisions April 2017 by WTWH Media LLC

Volume Volume28 19• •Number Number46 •• APRIL JUNE 2017 2008

Business Solutions for Retail Decision Makers

® A

HARBOR COMMUNICATIONS

P U B L I C AT I O N

Identifying the C-Store Industry’s

HR Challenges The 2017 CSD/Humetrics CSD HR Survey finds overall optimism for the year ahead, but concerns for staffing and turnover.

Adding Value via Food Variety .......38 Boosting Your Beverage Business ....46 Applying Today’s Automation ..........58

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MAKE YOUR VOIC MAKE YOUR VOICE HEARD State and local decision makers continue to target adult tobacco consumers, retailers, and wholesalers with excessive taxes and unfair policies, such as retail bans and advertising restrictions.

Our People | Our Brands | Your Success Our People | Our Brands | Our Customers’ Success

For more information, contact your AGDC Representative or visit tobaccoissues.com

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DEPARTMENTS 8 Edit Memo: Managing the Front Line 10 On Location: Ideal Market Is Growing Its

Kentucky Home

14 Front End: CSD's Quick Bites 16 Front End: Industry News 18 Front End: Kum & Go Donates Fresh Food 20 Convenience Store Solutions Blog:

Maximizing Summer Opportunities

24 CSD's Human Resources Awards:

Celebrating 20 Years of HR at Douglass Distributing

26 CSD's Human Resources Awards: Nye

Reaching New Heights at Holiday

34 Foodservice: Cooking with Flash

APRIL 2017

• Volume 28

•

Issue 4

46 Category Manager’s Notebook: Boosting

Your Beverage Business

InsidethisIssue

52 Category Manager’s Notebook: Clearing

a Path for Smokeless

28 Cover Story: Identifying the C-Store Industry’s HR Challenges

56 Technology: POS Grows With the Times

The 2017 CSD/Humetrics HR Survey finds overall optimism for the year ahead, but concerns for staffing and turnover.

62 Technology: Mac’s Crime Prevention

38 Adding Value Via Food Variety

65 Operations: Bettering Your Bathrooms

When it comes to satisfying consumers’ cravings for lunch and dinner, convenience stores have it all over traditional restaurants by offering a wider variety of fresh foods through both proprietary and co-branding programs.

66 Operations: Transitioning to Next-Genera-

Success

tion Leadership

68 New Stuff!

58 Applying Today’s Automation

72 Quick Shop

As retail channels vie for foodservice customers, the implementation of technological advances such as digital kiosks and self-checkout stations are making convenience stores even more competitive.

73 Ad Index

4 Convenience Store Decisions

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74 Industry Perspectives: Knowing How to

Apply Training Triage

April 2017

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Convenience Store Decisions

A H A R B O R C O M M U N I C AT I O N S L L C C O .

CONTRIBUTING EDITORS Anne Baye Ericksen Pat Pape

ADVERTISING

Editor-in-Chief,Vice President John Lofstock jlofstock@csdecisions.com

EDITORIAL

Senior Editor David Bennett dbennett@csdecisions.com

COLUMNISTS

President, Harbor Communications Dan Ramella dramella@csdecisions.com (440) 250-1583

Senior Editor/News & Online Erin Rigik Del Conte edelconte@csdecisions.com Associate Editor Howard Riell hriell@csdecisions.com

Jim Callahan Fran Duskiewicz Mel Kleiman

PRODUCTION Production Manager Barbra Martin bmartin@csdecisions.com

Group Publisher Tom McIntyre tmcintyre@csdecisions.com (440) 250-1583 Publisher John Petersen jpetersen@csdecisions.com (440) 250-1583

Webmaster Dave Miyares dmiyares@csdecisions.com

Vice President, Sales Tony Bolla tbolla@csdecisions.com (773) 267-1897

EDITORIAL ADVISORY BOARD

NATIONAL ADVISORY GROUP BOARD

YEO BOARD OF DIRECTORS

Robert Buhler, President and CEO Open Pantry Food Marts • Pleasant Prairie, Wis.

Peter Tamburro, Board Chairman Clifford Fuel Co. • Utica, N.Y.

Jim Callahan, Director of Marketing (Retired) Geo. H. Green Oil Inc. • Fairburn, Ga.

Tony Harris, Past Board Chairman Louisville, Ky.

Brad Call, Executive Vice President Maverik Inc. • Salt Lake City

Mary Banmiller, Director of Retail Operations Warrenton Oil Inc. • Truesdale, Mo.

Greg Lorance, Dispensed Category Manager Cumberland Farms • Framingham, Mass.

Joe Hamza, Chief Operating Officer Nouria Energy Corp • Worcester, Mass.

Kyle McKeen, President and CEO Alon Brands • Dallas

Brent Mouton, President and CEO Hit-n-Run Food Stores • Lafayette, La.

Billy Milam, President RaceTrac Petroleum Inc. • Atlanta

Robert O’Connor, President and CEO O’Connor Petroleum Co. • Hales Corners, Wis.

John Kelly, Chief Operating Officer and Vice President, Operations Mountain Empire Oil Co. • Greenville, Tenn.

John Schaninger, VP, Sales & Merch. QuickChek • Whitehouse Station, N.J.

Associate Editor Marilyn Odesser-Torpey mot@csdecisions.com

ART Creative Director Erin Canetta ecanetta@csdecisions.com

Scott Zaremba, President and CEO Zarco 66 • Lawrence, Kan.

Convenience Store Decisions is a three-time winner of the Neal Award, the American Business Press’s highest recognition of editorial excellence.

SUBSCRIPTION INQUIRIES To enter, change or cancel a subscription: Web (fastest service): www.ezsub.com/csd Phone: (844) 862-9286 (U.S. only, toll-free) Fax: (440) 333-1892 Mail: Convenience Store Decisions P.O. Box 986, Levittown, PA 19058 Copyright 2017, Harbor Communications, LLC 6 Convenience Store Decisions

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Vernon Young, President and CEO Young Oil Co. • Piedmont, Ala.

Jared Sturtevant, Board Chairman CST Brands, Director of Marketing

Alex Olympidis, Board Vice Chairman Family Express Corp., Director of Operations Alli Bixler, Assistant to the President The Kent Cos. Sharif Jamal, Corporate Training Manager Chestnut Petroleum Distributors Lindsay Lyden, Vice President, Development Truenorth Energy Dana Moloney, Food Service Director Warrenton Oil Co. Jeremie Myhren, Vice President, IT Road Ranger Bart Stransky, Executive Director, Merchandising RaceTrac Petroleum Inc.

OFFICE LOCATIONS

Headquarters

19111 Detroit Rd., Ste 201 Rocky River, OH 44116 (440) 250-1583 (440) 333-1892 (fax)

Editorial and NAG

1420 Queen Anne Rd., Ste 4 Teaneck, NJ 07666 (201) 837-2177 http://twitter.com/CStoreDecisions www.facebook.com/CStoreDecisions

Convenience Store Decisions (ISSN 1054-7797) is published monthly by Harbor Communications, LLC., 19111 Detroit Rd., Suite 201, Rocky River, OH 44116, for petroleum company and convenience store operators, owners, managers. Qualified U.S. subscribers receive Convenience Store Decisions at no charge. For others, the cost is $80 a year in the U.S. and Possessions, $95 in Canada, and $150 in all other countries. Single copies are available at $9 each in the U.S. and Possessions, $10 each in Canada and $13 in all other countries. The annual Sales Trend Handbook can be purchased for $75. Periodicals postage paid at Cleveland, OH, and additional mailing offices. POSTMASTER: Send address changes to Convenience Store Decisions, P.O. Box 986, Levittown, PA 19058. GST #R126431964, Canadian Publication Sales Agreement No: #40026880. Materials in this publication must not be reproduced in any form without written permission of the publisher. Direct requests to: Editorial Department, 1420 Queen Ann Rd., Teaneck, Suite 4, NJ 07666. Phone: (917) 601-9623. Copyright 2016, Harbor Communications LLC. All rights reserved. Circulation audited by Business Publications Audit of Circulation, Inc.

www.linkedin.com/CStoreDecisions

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EDITOR'SMEMO

Managing the Front Line

JOHN LOFSTOCK Editor-in-Chief (201) 837-2177 jlofstock@ csdecisions.com Follow me on Twitter @CSDEditor

HE CONVENIENCE STORE INDUSTRY has come a long way over the past decade in terms of recruiting, training and retaining great employees. But the results of the ninth annual Convenience Store Industry Human Resources Survey indicate there’s still quite a bit of work to be done. Among the survey's key findings is that industry turnover is on the rise and recruiting managers remain frustrated with the onerous process of finding good employees. The survey, conducted jointly by human resources expert Mel Kleiman, of Humetrics, and CSD, found once again that paying higher wages isn’t nearly as important as respecting and recognizing the hard work employees put forth daily. This is a powerful message that shows if you're simply trying to throw money at employees in the hopes of creating a great corporate culture, it simply won't work.There will always be someone else who can offer more money or a better opportunity. Without that personal relationship with your employees, loyalty is fleeting. The byproduct of a great relationship with your employees is that you are incrementally building the foundation of an outstanding corporate culture. An organization that has built its reputation on this key component has distinct advantages. For starters, a world-class corporate culture is contagious. When good people want to work for you, the recruiting process is easier, human resources costs often go down and the overall quality of your brand goes up. There really is no downside. In fact, Harvard University professor James L. Heskett once said that culture “can account for 20-30% of the differential in corporate performance when compared with ‘culturally unremarkable’ competitors.” This applies to convenience stores as much as it does the Targets, McDonald's and Amazons of the world.

GETTING TO WORK A joint study by the Disney Institute and McKinsey & Company found that creating a memorable customer experience was "not magic, but method." The study revealed that when you take an active role in making your employees feel needed, they become more engaged with 8 Convenience Store Decisions

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your organization and more committed to your service goals. It recommended companies adopt four habits to accomplish this. Listen to employees. If you want your employees to take good care of your customers, start by taking good care of your employees. But go a step further and get personally involved in their needs. Then take action. Communicate what you are doing and how long it will take, and involve the employees themselves in the solution. Hire for attitude. If you want friendly service, hire friendly people. As Jonathan Ketchum, senior vice president of retail at Alon Brands, said in this month's cover story, "the key for us was to focus on attitude and train for the skills we need at retail." Think about companies like Southwest, Disney, Apple or any company known for its company culture. They aren’t trying to change people to fit what they are doing. They are putting in individuals whose attitudes fit what they do, and then they train them on the necessary job skills. The end result is quite noticeable. Give people purpose, not rules. Front-line employees participating in infinitely varied customer interactions won’t always find the answers in manuals. The best companies supply front-line staff with common purpose backed by clear quality standards. When people are trusted to do their job and given clear expectations rather than an instruction manual, they feel more valued and empowered. Tap into the creativity of your staff. Giving front-line employees responsibility and autonomy creates a sense of ownership that inspires them to do everything they can to improve the customer experience. I was speaking with a corporate HR manager recently who was clearly frustrated with high turnover and blamed today's younger generation with a poor work ethic. This seemed to me the easy way out. If staffing is your problem, take the time to look in the mirror and identify the root cause of your frustration. It will be the first step down the path to better days.

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FRONTEND PROFILE

Ideal Market Is Growing

Its Kentucky Home

Rocket Oil Co., which does business as Ideal Market, just opened its newest store in Hanson, Ky. Going forward in 2017, the family-owned company has even bigger plans. By David Bennett, Senior Editor

HERE’S MORE TO THE state of Kentucky than fine bourbon, fast horses and the legend of Daniel Boone. There are close-knit communities, which often embrace convenience retailers that work hard to build local relations and provide value-added services. You can count the Kentucky communities Dawson Springs, Greenville, Hanson, Madisonville and Marion in that class. In those cities, one convenience retailer has been working hard to strengthen customer relationships and provide value-added services: Ideal Market. Ideal Market is a close-knit entity itself. The Madisonville, Ky.-based, 20-store chain is moving ahead with plans to grow its footprint in this western region of the Bluegrass State. The company opened its 20th Ideal Market location earlier this year in the city of Hanson, said Tom Eveland, vice president and general manager. The location features top tier Marathon fuels and a Subway restaurant with seating for 30. A third-generation family business, Rocket Oil formed its roots in the mid1970s when Vern Eveland purchased a fuel distribution company in 1972 from former Madisonville Mayor Curtis McCoy. In 1974, son Barry Eveland joined the company after college. It was during the next two decades that the company began constructing a strategy for offering Kentucky residents more—in the form of its Ideal Market retail brand. In 2005, Barry’s son, Tom Eveland, joined the company. BUILDING GOALS At 5,300 square feet, Ideal Market’s new Hanson store—its second in the Kentucky town—features a modern beer cave as well as the c-store’s proprietary coffee and beverage offerings known as Kentucky Brews. The decision to go with Subway over 10 Convenience Store Decisions

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its own proprietary food program was calculated. “We are on the interstate,” Eveland said. “I felt like Subway will draw the customer off the interstate,” Eveland said. “Though many feel our food provides more value to the customer, they typically trust the national brand over our local brand.” That local brand is the Heartland Deli, the company’s proprietary foodservice concept, which is earmarked for future sites. In addition, two legacy stores will be razed and rebuilt— with work beginning this year. Each replacement location will be larger and more spacious, featuring a Heartland Deli and Kentucky Brews. The rebuilt sites will also house a new fuel service installation and expanded cooler and beverage areas. “The buildings being replaced are nearly 30 years old, so you can imagine how customer preferences have changed in three decades,” Eveland said. “We have not

Ideal Market is fast becoming a recognized convenience retailer in Kentucky. The Madisonville, Ky.-based, 20-store chain is moving ahead with plans to grow its footprint in this western region of the Bluegrass State. The company opened its 20th Ideal Market location earlier this year in the city of Hanson. Among the c-store’s many amenities are its proprietary coffee and beverage offerings known as Kentucky Brews, part of the company’s growing foodservice program. CStoreDecisions ecisions .com

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FRONTEND PROFILE

completely neglected the old sites, but everything was not the latest and greatest either.” In 2013, Rocket Oil introduced its Heartland Deli and Kentucky Brews concepts at a new location in Marion, Ky. Working with a consulting firm, the company drew up a 3,800-square-foot store in Marion, Ky.—the pilot site for the company’s bright new concepts. Rocket Oil is also planning another new build—this time in a new community. “We will be building in Russellville, Ky.,” Eveland said.“We purchased the property a couple of years ago, but have been working through the permitting process. There have been some challenges that we are nearly through. We are hoping to begin construction soon.”

Rocket Oil had hired a consultant, who helped the convenience chain develop the logo and menus. All of Ideal Market’s sandwiches are made to order, as are the c-store’s pizzas. The program also offers fresh hamburgers, chicken sandwiches and breakfast items, including the chain’s signature biscuits and gravy. The Heartland concept was created at the same time as the Kentucky Brews program. Management toured a roaster near Louisville, tried different blends, but eventually settled on the coffee it now sells.

BEER BECKONS Since the end of Prohibition, Kentucky has been known for strict alcohol regulations, with local ordinances legalizing alcohol being decided at the city or county level. However, the argument for less restrictive laws has become HEARTLAND DELI The company’s foodservice program, Heartland Deli, more prominent recently. Senate Bill 11—signed into law was originally contrived around the concept of freshness. July 15, 2016—included the removal of several outdated “The first concept we tried was called ‘Heartland Bakers.’ regulations, allowing businesses in Kentucky more flexibility We had basically the same menu, but we baked our when it comes to selling beer, wine and liquor. “Generally, Kentucky has been slow to adopt beer sales. bread. We tweaked it a little and it’s now Heartland Deli.” In our nine county market, most of the larger towns are wet, but the counties and small communities are not.” However, a measure passed last December allowing alcohol sales in the community of Hanson ensured that beer would be available in the newest Ideal Market. “Yes, we rolled the dice and won,” said Eveland, who is also the chairman of the Kentucky Petroleum Marketers Association. “I had a sense that it would pass, so we Featuring Keynote Speaker designed and built the building with a beer cave.”

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ONE BIG FAMILY The third-generation enterprise touts store locations that are clean, bright, convenient and well-staffed. Eveland said if the c-store offers outstanding customer service, the main reason is its workforce. “I enjoy working with my father (Barry) every day, but I also consider all of our employees family. As part of employee development, Rocket Oil has strived to reshape its company culture. “In the last couple of years we have worked hard on our culture. We updated our Common Purpose and Core Values. These statements are not just fluff. We work hard to live by them.” Posted on the wall of each store, the company’s listing of core values includes maintaining the Ideal Market brand. Some are all encompassing and to the point so every team member is clear on what the objective is: 1. Everyone—our customers, our communities and each of us—has an ever-changing opinion of our company and its stores. The value of the Ideal brand is simply the sum total of those opinions. CStoreDecisions ecisions .com

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The company’s foodservice program, Heartland Deli, was originally contrived around the concept of freshness. All of Ideal Market’s sandwiches are made to order, as are the c-store’s pizza. The program also offers fresh hamburgers, chicken sandwiches and breakfast items including the chain’s signature biscuits and gravy. Newly built stores that will come on line in the next year will feature the Heartland Deli program.

2. Every experience each customer has with an Ideal Market or Rocket Oil Co. team member impacts his or her opinion of us, for better or for worse. 3. We will build the Ideal brand and make fans of our customers by making sure that each of those experiences is positive. Eveland said the perception that customers have of Ideal Market usually starts with the store manager and the overall store experience. “We recognize that our managers are the most important folks in our company,” Eveland said. “Our customers do not know the office staff—they know our managers. Our customers’ experience in our stores is what makes our brand. It’s our job to remove road blocks that negatively impact their ability to serve our customers.” To improve the everyday customer experience, Rocket Oil partnered with the local community college to offer customer-service training. The company also rolled out an employee bonus program for every company associate—not just mangers—if they meet certain performance objectives. Such initiatives have improved the chain’s overall operational performance. Still, being a key decision maker of a family business is a unique opportunity, said Eveland. “Being a small company we are more nimble and able to analyze situations on a case-by-case basis,” he said. “Everything is more personal in small companies.” CStoreDecisions ecisions .com

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Convenience Store Decisions 13

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FRONTEND

CSD’S QUICK BITES In Most Retail Circles, Loyalty Continues to Attract 95%

of c-store operators agree mobile apps are considered critical for successful loyalty programs.

62%

believe loyalty programs are too complicated or confusing for members to understand and use.

84%

say that up to five vendors are involved in developing, deploying and managing their loyalty program.

78%

agree loyalty programs create more store revenues.

51%

convey loyalty programs drive higher foot traffic.

60%

proclaim loyalty programs encourage shoppers to increase store visits and spend more.

Source: Excentus, a loyalty solutions company, polled 40 c-store operators in December 2016 about challenges and opportunities in loyalty.

Digital Use Spikes

Frozen Food Sales

• Frozen food products had overall sales of $22 billion in 2016.

• 90% of consumers buy packaged frozen meals for heating at home— up 15 percentage points in two years. Source: Packaged Facts “Frozen Foods in the U.S.: Hot Meals, Sides, and Snacks, 6th Edition.”

CSD/NAG Idea of the Day: Food Truck

Consider partnering with a local food truck. In today’s increasingly competitive market it is crucial for c-store retailers to move into foodservice. But not all stores have the capacity for a foodservice operation. If you want to bring in foodservice but lack the space at some locations, consider partnering with a local food truck that might drive business by parking in your lot and serving customers during key lunch or dinner daypart hours.

The use of mobile apps, text messages, and the internet to order food from foodservice outlets grew by 18% last year and now accounts for 1.9 billion foodservice visits. Source: The NPD Group

s Snacks Aeals Main M k food occasions

, f all snac ain meals • 24% o ten for m o. a e ks c a are sn ars ag 1% five ye a up from 2 umption per capit cons is ls a e m • Annual in a food at m y 2024. of snack w 12% b ro g to t s foreca

Source: NPD “Generation Study: The Evolution of Eating.”

Seasonal Customers’ Cravings 67% of consumers enjoy being able to consume specific seasonal ingredients year round.

78% 42% 27% 45% consider seasonal dishes to be a treat.

are willing to pay more for a seasonal dish when dining out.

of Americans consider seasonal flavors to be nostalgic.

are most likely to consider seasonal flavors and ingredients to be fresh.

Source: Mintel,“Seasonal Dining Trends – U.S. - January 2017”

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INDUSTRYNEWS Staffing Changes at QuickChek

Wawa Set to Hire 5,000

Whitehouse Station, N.J.-based QuickChek Corp.—Convenience Store Decisions’ 2016 Convenience Store Chain of the Year Award winner—is celebrating its 50th anniversary with new hires and internal promotions. The company recently opened three new stores, creating 135 new local jobs, including John Schaninger 24 management positions. Rob Easley joined the company in February in the newly-created position of senior vice president of merchandising & marketing, bringing nearly 25 years of retail experience in marketing, strategy and operations. Don Leech, who has been with the company for 31 years, including the last 14 as a director of operations, has been promoted to vice president of real estate & development. Robert Porcelli has been promoted to director of operations for region 2. Matt Murphy, Jennifer Quiles and Kevin Woodring were also internally promoted as district leaders. John Schaninger, vice president of sales and marketing, left the company last month after a 38-year career. “John has played a vital role in the growth of QuickChek,” said QuickChek CEO Dean Durling. “He felt the time was right to pursue other opportunities. We thank him for his many years of service and all the contributions he has made.”

Wawa Inc. is set to begin its Spring hiring campaign with the goal of hiring more than 5,000 new associates during the next three months, within all of Wawa’s 750 stores across its six-state operating area—including both customer service and management level positions. Some stores will host open houses called ‘Wawa Career Wednesdays’ on every Wednesday for four straight weeks, beginning March 29 running through April 19, where potential associates can receive a brief first interview, learn more about Wawa’s culture, explore career opportunities and discover the role Wawa associates play in their community.

App-Controlled, Staff-Free C-Store Opens in Shanghai Swedish company Wheelys has opened the first appcontrolled, staff-free convenience store in Shanghai. New Atlas Online reported that customers download an app, which allows them to access/enter the store. The customer selects their desired items, scans the barcode of each item and their credit card is charged. To prevent theft, a security camera monitors the store. As customers are logged in through the app on entering, they can be identified easily if theft does occur. New Atlas reported that Wheelys’ ultimate goal is to license the technology, allowing retailers to add it to pre-existing stores.

Sheetz Grows Beer Business Altoona, Pa.-based Sheetz now has nine stores in Pennsylvania that feature beer sales, including the recent debut of a fully-stocked beer cave at its Claysburg, Pa. location. Additionally, wine is offered at six Sheetz locations in Pennsylvania and will soon be offered at the Claysburg location. Sheetz currently sells beer in the five other states located in the company’s footprint. 16 Convenience Store Decisions

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Senators Urge the President to Keep Point of Obligation Last month, U.S. Senators Chuck Grassley (R-IA) and Amy Klobuchar (D-MN) led 23 senators in a bipartisan letter urging President Trump to maintain the point of obligation under the Renewable Fuel Standard (RFS) and reject petitions to upend the current system. The senators outlined the detrimental effects of changing the point of obligation from refiners to blenders, marketers or retailers, as one prominent refiner is suggesting. Shifting the point of obligation would give refi ners little incentive to produce necessary fuel blends, making it difficult for downstream entities to comply, the senators wrote.

Yesway Preparing To Expand Des Moines, Iowabased BW Gas & Convenience, which does business as Yesway, recently acquired seven Midwest-based convenience stores. Yesway has acquired the Krueger’s Convenience Stores location in Grimes, Iowa and the Pronto Market location in Kanawha, Iowa, as well as five Pic Quik stores in Hutchinson, Kan. The company plans to acquire, improve and rebrand approximately 500 convenience stores as Yesway convenience stores in selected regions of the U.S. over the next several years. CStoreDecisions ecisions .com

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FRONTEND News

Kum & Go Donates Fresh Food A pilot program that delivers fresh food to Colorado residents in need has the potential to become prevalent in other communities the convenience retailer serves. By David Bennett, Senior Editor

ONVENIENCE RETAILER KUM & Go is exploring the power of fresh food as part of a program that targets a whole different group of consumers. The West Des Moines, Iowa-based convenience chain and Care and Share Food Bank for Southern Colorado on Jan. 17, 2017 announced a food rescue pilot program at a grand opening at one of Kum & Go’s Colorado Springs stores. Through the food rescue program, Kum & Go is donating safe, prepared excess food for distribution to partner agencies. Items donated include breakfast sandwiches, hot and cold lunch sandwiches, salad and produce, fresh packaged bread and mini bakery items. SO FAR, SO GOOD In the first six weeks of the program, Kum & Go donated 2,568 individual food items worth $7,000. Those numbers will continue to climb as foot traffic rolls into the spring months. “This is our first formal endeavor into food rescue with fresh food, said Kristie Bell, Kum & Go’s director of communications. “We have, from time to time, donated excess packaged products but only on an ad hoc basis. This is the first formalized program that is designed to scale to all of our Colorado Springs stores by the end of the year, and hopefully to all of our stores in the coming years.” Kum and Go currently operates more than 50 stores in Colorado. It was a proposal by the Colorado charity that piqued the interest of Kum & Go stakeholders. “Care and Share had submitted a grant proposal to us in 2016 and we were so impressed with their programming, our director of philanthropy, Carrie Clogg, decided to engage with them to learn more about all their great work,” said Bell. “After learning of their expertise with food rescue, Clogg engaged our sustainability manager, Derek Nelson, and one thing led to another. This seemed like a perfect fit for our excess food. Care and Share has been an incredible partner, really helping us every step of the way.” The food earmarked is distributed to local agencies via Tri-Lakes Cares, a partner agency to Care and Share. These agencies then distribute the different products to hungry residents. Nelson said the company is encouraged by the early results of the fresh food rescue program. Expansion plans 18 Convenience Store Decisions

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Through the food rescue program, West Des Moines, Iowa-basedKum & Go is donating safe, prepared excess food for distribution to partner agencies. Items donated include breakfast sandwiches, hot and cold lunch sandwiches, salad and produce, fresh packaged bread and mini bakery items. In the first six weeks of the program, Kum & Go donated 2,568 individual food items. are currently underway for additional Colorado Springs stores to begin participation in April. “By the end of June we anticipate adding stores throughout the greater Colorado Springs area,” said Nelson. “Once the Colorado Springs program has been fully implemented, we will conduct an evaluation to streamline the process and make improvements if necessary. From there, we look to roll out additional food rescue programs in other markets.” CAUSE AND EFFECT Like many convenience store chains, Kum & Go embraces any opportunity to give back to the communities they operate in. However, few c-stores boast a wider array of charitable causes than the Iowa retailer. “We have a strong philanthropic and sustainability focus, and this project is a perfect intersection of the two,” Bell said. “We are giving back to the communities where we operate, while at the same time reducing the amount of food and food packaging that ends up in the landfill. Among a host of other volunteer programs, which the company participates in, Kum & Go has built a long tradition with its participation in Habitat for Humanity. States such as Colorado, North Dakota and South Dakota have proven ample grounds for Kum and Go employees to put hammers to nails in project houses that have been constructed over the last few years. CStoreDecisions ecisions .com

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Convenience Store Solutions

Maximizing Summer Opportunities Often, the difference between great sales and mediocre sales is attention to detail.There are certain tasks that c-stores can accomplish that will generate a positive impression in the mind of a customer. By Jim Callahan

TRONG RETAIL SALES GROWTH in January and February indicate that consumers are still confident in the U.S. economy. Indicators of consumer confidence are hitting highs not seen in a decade and should bolster the U.S. economy even more in 2017, according to a recent Kiplinger report. While it may feel a bit premature to begin forming— then executing—a summer plan that begins with the long Memorial Day weekend and ends with the Labor Day weekend is, be assured most of the major players in retail have already mapped out their plans for the entire year and are thinking beyond summer and looking at holiday strategies. But, let’s tackle one season at a time. Now is the time to prepare your stores—inside and out. That might include everything from new windshield squeegees for motorists who pull in to fill up; to a new beer cave with an automatic temperature control that keeps the product at a steady temperature.

THINGS BIG AND SMALL

Of course, squeegees are a lot more economical then a beer cave. In the end, your operational budget will dictate the level of upgrades. Still, the point of this article is to remind retailers to keep their eyes on the details, no matter how big or how small. Here are just some of the items to consider: • Employees: Make sure to inspire each of your team members by letting them know how critical their appearance, attitude and involvement is to the business. If there are some performance shortcomings that should be addressed, now is the time to handle it. • Vendor Participation: Get with the top supplier of every popular, key category and offer to trade key display space for discounts, free goods, advertising money, giveaways and other considerations. Then, start to work with secondary suppliers. If these major operational components are in hand, then you can begin digging into the nitty gritty aspects that directly impact store appearance and customer perception. Some things to review include: • Advertising/Signage/Flyers/Specials/Prizes: Invest dollars to advertise and give space on flyers/signage to top vendor partners. 20 Convenience Store Decisions

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• Uniforms/Name Badges: Make sure they are clean and attractive—every day. • Paint/Touch Up: This includes the forecourt and outside amenities. Your petroleum supplier can help. • Air Machine/Water: Ensure that air machines are working well and vacuums cleaned out and hoses checked. • Drive Area/Parking/Sidewalks: Traffic areas should be clean, uncluttered and clearly marked. • Lighting: Good lighting is important so all customers feel comfortable and safe. • Canopies, Dispensers: Fix canopy leaks if needed and wipe dispensers daily. Remember the squeegees. • Interior floors, Ceilings, Lighting, Walls, Base board: Ensure all of these important surfaces are clean. Don’t forget to clean the corners. • Gondolas/Counters/Shelves/Merchandise: All should be dusted and clean, especially before any sale. • Coolers: The doors and the interiors should be cleaned, and merchandise should be accessible. • Deli Area/Equipment: Well-cleaned, well-stocked stores with fresh product draws traffic. Use “sell by” dates and strictly abide by them. • Restrooms: Bathrooms should be graffiti free, deodorized, squeaky clean, well stocked and well lit. • ATM: Your cash machine should be working properly and stocked extra well to accommodate those summer travelers. • Lastly, review all policies with your employees including safety and security measures, emergency phone number and the importance of checking IDs. That’s a lot to accomplish, not to mention you will find other things unique to your store. I strongly suggest you start now especially to get vendors on board, providing them ample time to get you the best product deals possible. Nothing is truer than the old song, “Ain’t it funny how time slips away.” Instead, the song to be rehearsing should be, “Feels like summer again.” Jim Callahan has more than 40 years of experience as a convenience store and petroleum marketer. His Convenience Store Solutions blog appears regularly on CSDecisions.com. He can be reached at (678)485-4773 or via e-mail at jfcallahan1160@gmail.com. CStoreDecisions ecisions .com

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Human Resource AWARDS

Celebrating 20 Years of HR

at Douglass Distributing Tamra Bragg has a passion for helping people reach their potential. By Erin Rigik Del Conte, Senior Editor

F EXPERIENCE MEANS ANYTHING, then Tamra Bragg knows human resources (HR). Bragg has 40 years of total experience in the field and is celebrating her 20th anniversary this April with Sherman, Texas-based Douglass Distributing where she is the vice president of HR for the company and its c-store chain Lone Star Foods. Convenience Store Decisions is honoring Bragg as an industry leader in human resources as part of our 2017 Human Resources Awards. Bragg began working as an HR manager for Douglass Distributing in 1997. At the time, the company had six c-stores and 110 employees. “After a few years, Bill Douglass (the owner of Douglass Distributing) approached me to be VP of HR and VP of Store Operations. I told him ‘Bill, I’ve never even touched a cash register!’ He said ‘You’ll do just fine,’” Bragg recalled. After 10 years linking operations and HR, which she called a “great experience,” Bragg moved back into HR full time. Today, the company has grown to 22 c-stores, eight quick-service restaurants and 406 employees. Bragg’s role involves recruiting, onboarding, workers’ compensation, benefits, organizational effectiveness, training, employee relations, compliance and team building. While she recently hired an assistant, Bragg has primarily been an “HR of One.” In 2015, Bragg spearheaded the automation of the HR process, partnering with People Matter/PDI for the role out of an applicant tracking sys24 Convenience Store Decisions l April 2017

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Tamra Bragg tem (ATS) and payroll interfaces. In 2017 she expects to rollout a new payroll and time tracking system to the entire company. Under Bragg’s leadership, the company has also revamped its paid-time-off policy to make it more attractive for the younger generation, and plans to automate it into the payroll system. “This is a major change as we are still using the same system as we started with 36 years ago,” Bragg said. LEARNING THE ROPES Like most career paths, Bragg’s trajectory zigzagged on the way to the top of her field. Bragg worked at a bank in high school and college. After completing two years of community college, she moved to Topeka, Kan. for a banking position. Following a record cold winter, the 21-year-old returned to sunny Texas and began working in human resources for Texas Instruments. For the next several years she worked in a variety of positions before taking a position at Folger Coffee Co./Procter & Gamble. “During my 16 years with Folger Coffee, I held several positions in the HR team, ranging from compensation and benefits, safety, employee relations, product line startup, training and organizational effectiveness,” she said. One day she received a call from Douglass. He was expanding and seeking his first “bona fide” HR manager. His friend had suggested her. While retail was a “totally different animal” than her legal and manufac-

turing background, Bragg said she was up for the challenge. Within her first six months, Douglass opened a 10,000-square-foot travel center with a Subway, Baskin Robbins, Burger King, convenience store and car wash. “I hired 75 new folks within a four-week period of time to be our start up team,” she said. SHAPING TOMORROW “What I enjoy most about my role is that I have a passion for seeing people rise to their potential.To have been a part of someone’s growth, development and achievement of their potential through opportunities we have available at our company provides provides me great satisfaction,” Bragg said.“A desire of mine from day one was to have processes in place to grow our people and provide them careers as opposed to just jobs.” Bragg also serves as president of the local Society for Human Resource Management (SHRM) chapter and spoke at the SHRM Volunteer Leaders’ Summit last November. “I have a passion for building the HR Brand in our community as well as in our company,” Bragg said. In addition to celebrating 20 years with Douglass, Bragg is also celebrating 30 years of marriage and will soon welcome her ninth grandchild. “My biggest goal is to train my replacement so that when I do finally retire somewhere down the road, the passion I have had for this position and Douglass Distributing will be in the heart of my successor, and the transition will be absolutely seamless,” Bragg said. CStoreDecisions ecisions .com

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Human Resource AWARDS

Nye Reaching

New Heights at Holiday In his 41 years at Holiday Cos., Robert Nye has been critical to bolstering the workforce programs that have made Holiday Stationstores a major convenience store player.

Robert Nye

By David Bennett, Senior Editor

HUMAN RELATIONS SPECIALIST PLAYS a c r i t i c a l ro l e i n determining adequate levels of employee satisfaction, re s o l v i n g s ta ffi n g c o n fl i c t s, maintaining workforce management costs and devising plans to measure individual performance. Convenience Store Decisions is honoring Robert Nye as a leader in human resources (HR) as part of its 2017 Human Resources Awards. In his 41 years at Holiday Cos., headquar tered in Bloomington, Minn., Robert Nye has been critical to helping implement programs that have accomplished all of the aformentioned tasks. For the last 31 years, Nye has led the company’s human resources department, a vital generator that drives the chain’s success. Company subsidiary Holiday Stationstores operates 522 convenience stores in 10 states including Michigan, Washington and Alaska. For the first decade of his career, Nye worked in retail operations. “ I s ta r te d i n a n e n t r y - l eve l management position in a retail division of Holiday, which is no longer part of our business,” Nye said. “I worked my way up through store management and became the head of operations for that division before moving into human resources.” CULTURALLY SPEAKING Often, it’s a joining of traditional values, guiding principles and modern workplace concepts that help a company’s culture achieve success. So it is at Holiday Stationstores. 26 Convenience Store Decisions

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Since Nye took the HR helm at Holiday, the retailer has worked to nourish its company culture.The result has been a business that’s more productive and operates more efficiently. Within its geographic footprint, that culture has given the company a leg up on the competition. “A respectful environment with opportunities for growth and competitive wages all add to the likelihood of an employee choosing to stay,” said Nye. “Through the years, countless employees have landed at Holiday at various points in their working life and have chosen to make us their career destination. Employee turnover is simply part of the c-store industry, but our tenure rivals the best-of-breed companies and we have many employees with over a quarter-century with the company; in fact, we have had several who have exceeded the 50-year mark.” To support its company culture, Holiday boasts rigorous-hiring processes. Once an individual is on board, training commences. TRAINING DAYS Early on, employee training at Holiday Stationstores was achieved largely through paper-based workbooks, accompanied by a series of proprietary training videos. “In 1997, we launched our comp u te r- b a s e d t ra i n i n g ‘ H o l i d a y University,’ which covered most of the skills needed to perform work in the stores,” said Nye. “At that time, keeping training programs current was a challenge, especially given the fre-

quent changes in (point of sale) systems.” The company in 2014, implemented a Learning Management System (LMS), utilizing a blended learning approach similar to those earlier learning strategies. “The LMS-generated reporting is used to identify opportunities and strategize solutions, especially as it relates to store turnover and employee satisfaction,” Nye said. Store managers are also afforded educational opportunities. Holiday has a staff of cer tified-training managers who work with new managers upon promotion or hire. “Manager training consists of multiweek in-store training with a mix of live coaching, video training, reading material, classroom and knowledge quizzes,” said Nye. “This is all hosted in the LMS and reportable from the corporate office. Following in-store training, a field trainer spends time with the new manager helping implement what has been learned.” D u r i n g h i s l o n g te n u re a t Holiday, Nye can point to many accomplishments. “The growth of our benefits plans to enhance our employees’ security, well being and preparedness for retirement, is among the most significant contributions we have made to our team members,” said Nye. “Also, I am very pleased we have managed to reach a truly paperless employment process, from application, assessment, onboarding, training and ultimately paperless payroll for 100% of our employees.” CStoreDecisions ecisions .com

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COVER STORY

Identifying the C-Store Industry’s

HR Challenges

The 2017 CSD/Humetrics HR Survey finds overall optimism for the year ahead, but concerns for staffing and turnover. By Mel Kleiman, President, Humetrics and John Lofstock, Editor

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ONVENIENCE STORE DECISIONS AND

Humetrics have collaborated on our ninth annual Convenience Store Industry Human Resources Survey. The results reported here are based on the respondents’ recent experiences and expectations and will give you some industry-wide insight as well as a number of useful benchmarks. A few of the findings of particular interest are: • Staffing is perceived as by far the greater challenge than technology, government regulations or the competition; • Employee turnover is on the rise; • Staffing levels rose modestly in 2016, but are forecast to stay at current levels for the balance of 2017. DEMOGRAPHICS This year’s survey asked 53 questions (some about general business conditions and the majority about specific human resource issues). We collected responses over a six-week period from Feb. 1 through mid-March. Respondents’ employers ranged in size from 25 or fewer employees (22%) with less than $1 million in CStoreDecisions ecisions .com

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COVER STORY annual revenue (11%) to more than 500 employees (27%) and $500 million in annual revenue (11%). The majority of respondents (59%) were almost equally divided between the two larger employee ranges while 65% reported revenues between $1 million and $50 million.

Number of Employees

26.83%

29.27%

n 1-25 n 26-50 n 51-100 n 101-500 n Over 500

21.95%

14.63% 7.32%

Participating Companies’ Annual Revenues 10.81% 10.81% 5.41% 8.11% 37.84% 27.03%

n Under $1M n $1M-$10M n $10M-$50M n $50M-$100M n $100M-$500M n Over $500M

When we asked:“On a scale of 0 – 5, how engaged and motivated are your employees?” 53% ranked their people as “average,” while 28% rated their staffs as “above average” and 2% gave their people “excellent” marks.

employee engagement/motivation at 40%. Retention, at 36%, narrowly edged out employee selection at 32%. When asked about what respondents plan to do to meet these staffing challenges, a preponderance of the responses included:

1. We as a company have reducing turnover as the No. 1 goal for the year—much emphasis on it—and much to support lowering it. 2. Starting employee engagement initiatives, including an employee survey and exit interview process. 3. Better compensation, paying attention to what’s going on with benefits packages. 4. Be diligent in the hiring process, check references. 5. Develop more in-depth retail training programs. 6. Try to inspire staff.

Looking at the respondents by job title, 38% were corporate HR personnel; another 38% were “corporate other,” while store managers accounted for nearly all of the remaining 24%. THE CHALLENGES When asked: “What are the biggest challenges facing your organization today,” the results were:

Staffing

89%

Government regulations

56%

Technology challenges

44%

The competition

38%

As for the specifics of the staffing issues, 77% cited recruiting as their most frustrating challenge (as has been the case for each of the survey’s nine years), followed by CStoreDecisions ecisions .com

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7. Promote having fun at work. 8. Focus on our culture. 9. May just sell the business. 10. Focus on value-added customer services, employee participation in reducing expense. 11. Cut hours/raise costs to cover wage increases. 12. Increase sales. 13. Create more internal opportunities to recognize outstanding performance and create internal growth opportunities. 14. Move the process from HR back to the stores. 15. Just added ZipRecruiter. 16. Contact the Office of Veterans Affairs, staffing agencies, state disability offices. Possibly also contact unemployment office. 17. Create a new position to deal with human resources issues. April 2017 l Convenience Store Decisions 29

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COVER STORY EMPHASIZING ATTITUDE AT ALON BRANDS WHILE THE 2017 CSD/HUMETRICS HR SURVEY found c-store retailers are concerned about staffing, Alon Brands is beginning to find its groove. The Dallas-based chain operates 304 7-Eleven stores in Central and West Texas and New Mexico, with a high concentration of units in the Permian Basin. This is significant because for many years the Permian Basin attracted a transient group of oil field workers which made retail retention a challenge. For a time, retention hovered near 400%. That's when Jonathan Ketchum, senior vice president of retail at Alon Brands, began emphasizing retention programs that helped dramatically reduce turnover to a record low of 121% last year. "The key for us was to focus on attitude and train for the skills we need at retail," Ketchum said. "Once we find the right attitude, we invest in employee training and turn the discussion to how we can help create a career path that will allow employees to grow within our organization. A lot of our leaders and future company leaders have come up through the retail ranks and we're very proud of that." Another key aspect of employee retention has been recognizing outstanding service.The company has a mystery shopper program with its uniform provider, iWear. Employees providing great service, who are wearing the proper uniforms and maintaining a clean store are awarded gift cards immediately following the random inspections. "We have found that this instant recognition is greatly appreciated," Ketchum said. "Frontline employees have the hardest job in the company.They are the face of our retail operations so the more we invest and value our people, the greater service we provide our customers."

EMPLOYEE STAFFING & TURNOVER When we asked: “On a scale of 0 – 5, how engaged and motivated are your employees?” 53% ranked their people as “average,” while 28% rated their staffs as “above average” and 2% gave their people “excellent” marks. The chart below summarizes the responses to the question: “When it comes to motivating and retaining your best people, which one strategy or tool seems to work best?” Our Personal Relationship Compensation Recognition Awards Flexible Hours/ Family-Friendly Bonus/Incentive Pay Education/Training

drug testing are more often handled by corporate HR. While only 27% of last year’s respondents expected staffing levels to increase in 2016, 36% of this year’s reported that, in fact, they did, and 11% expect them to rise again this year. Increased or expected to increase

Stayed or expected to stay about the same

Decreased or expected to decrease

Don't know

2016

36.17%

48.94%

12.77%

2.13%

2017

10.87%

47.83%

30.43%

10.87%

EMPLOYEE RECRUITING & SCREENING When we examined the recruiting methods used to attract both hourly and salaried employees, the tools deemed “most effective” were:

Most Effective Recruiting Tools Hourly

Salaried

1. In-store ads/outdoor signage

1. Internet job boards

2. Referrals

3. Internet job boards

3. Re-recruiting former employees

4. Craigslist

4. Company website

5. Company website

5. Job fairs & LinkedIn (tied)

This is first year internet job boards made the “Top 5” list, but, with the exception LinkedIn for salaried employees, the effectiveness of other social networking sites as recruiting tools isn’t yet significant. When asked about the tools employers use to screen applicants, those most widely in use (other than employment application forms and resumes at 98%) are reference and background checks (90%), criminal records checks (87%), prescreen telephone interview (87%), drug testing (79%) and skills testing (61%). In spite of the fact that most employees are fired for attitude problems (statistics follow), in 2015, only 26% of respondents used pre-employment attitude assessments as a screening tool, but, this year, 65% report doing so now and the other 35% expect to add this tool in 2017. Though 70% have provided best-practice interview training to their hiring managers, 30% have not.

EMPLOYEE TURNOVER When we look at employee turnover, 35% of respondents reported an increase in 2016 and an overall hourly employee 0% 20% 40% 60% 80% turnover rate of 68%, which is significantly higher than last year’s rate of 55%. Much the same as last year, average turnover Regarding staffing activities, the most labor intensive of for corporate staff and managers was 7% and 15%, respectively. When asked what percentage of hourly employee these responsibilities continue to be handled primarily by store managers, while pre-screening, reference checks and separations were voluntary (quits), nearly half fell in the Time Off

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COVER STORY 71-100% range. Nearly half of the respondents thought about 25-50% of those employees who quit or were fired in the past year stayed in the convenience store industry.

Reasons hourly employees most frequently give for leaving Opportunity for advancement Number of hours available Return to school Scheduling conflicts Family-related reasons

In this year’s HR survey, 35% of respondents reported an increase in 2016 and an overall hourly employee turnover rate of 68% which is significantly higher than last year’s rate of 55%. Much the same as last year, average turnover for corporate staff and managers was 7% and 15%, respectively.

Manager Moving More money

20%

40%

As mentioned, attitude issues are the reasons hourly employees are most frequently fired and, in this survey, account for approximately 83% of involuntary terminations. This is in spite of the fact that when asked: “Of the following attributes, which one is most important to you when making a hiring decision?” 75% of respondents said “attitude.”

Approximately 50% reported that training programs stayed about the same in 2016, but 70% expect to increase training in 2017 with a heavy emphasis on customer service (80%), followed by foodservice safety/sanitation (54%) and manager/district manager training (54%) and, finally, teamwork and onboarding (46% each).

LABOR COSTS & BENEFITS Approximately 79% of those reporting start new hires anywhere from 10 cents to $10.50 above minimum wage with an average of about $4.15 an hour above the legal Reasons for involuntary terminations requirement. Currently, for this reporting group, store managers’ salDrug use aries range from $24,000-$68,000 annually with an average of just over $53,000. Assistant managers’ salaries range from Could not meet performance standards $20,000-$45,000 per year with an average of $27,000. The hourly wage for full- and part-time employees Tardiness ranges from $7.25 - $13.50 per hour. The full-time average is Would not meet $10 and part-time is $9.60. performance standards When asked: “Which statement best describes your curDishonesty rent pay policies,” over the years, there’s been a shift from Absenteeism “across-the board raises” and “selective raises” over the past four years to more “pay for performance” schemes for hourly employees whereas both “pay for performance” 0% 20% 40% and “across the board raises” are frequently used for salaried personnel. TRAINING In response to the effects of Obamacare, most (49%) said Sixty-four percent of respondents say they have some sort of formalized, hourly employee training program the program has had no effect on staffing levels or their and those range anywhere from 1-90 days (with an aver- employee mix, but 37% believe it has had a negative effect age of four days) and an average budget of $675 per on growth plans. Should the Affordable Care Act (ACA) be person, per year. Forty-three percent have standardized repealed or amended, more than 50% expect it will have management training programs that averaged $1,745 per a positive effect, especially if, as two respondents pointed out, the changes include a reduction in administrative and person, per year. 32 Convenience Store Decisions

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COVER STORY reporting responsibilities to the federal government. There have been no significant changes in the array of benefits offered to full-time staff as compared to the responses given in 2016 although the order of the top four has changed as more people have medical coverage now. Most frequently cited now are: Medical (82% up from 68% last year), Paid vacation/sick leave (77%), Bonuses (64%) and Dental (59%).

Technologies Added in 2016 Out-sourcing some 83.3% services and/or functions

New training technology

68.8%

We had/have plans, but have put them on hold

80%

Scheduling program

63.2%

New payroll system or supplier

75%

Automated hiring/ applicant tracking system

60%

I9 compliance system

66.7%

Self-service benefit program

57.1%

New, automated hiring system

61.5%

New, automated hiring system

53.9%

Pre-interview screening tests

60%

Pre-interview screening tests

46.7%

Scheduling program

52.6%

I9 compliance system

44.4%

New training technology

50%

We had/have plans, but have put them 40% on hold

Automated hiring/ applicant tracking system

46.7%

New payroll system or supplier

33.3%

Self-service benefit 100%program

42.9%

Outsourcing some services and/or functions

33.3%

Self-checkout

0.0%

Self-checkout

0.0%

Components of employee benefits packages Company-matched IRA Credit union Eduction benefits Wellness programs Profit sharing Incentive pay Paid personal time off On-going training Life insurance 401K Dental Bonuses Paid vacation/sick leave Medical

20%

40%

60%

80%

The majority expect benefits packages to stay about the same in 2017, while about 33% think salaried benefits will increase and 16% expect hourly benefits will do so as well. Nearly 67% saw healthcare costs increase last year and also expect them to rise in 2017. Just over 60% said employee-related lawsuits “were at about the same levels” as 2015; while 60% reported levels for worker’s compensation claims were about the same and expect them to be the same again this year. When asked: “Has you company been audited for any labor-related issues in the past year, only 8% of respondents answered “yes” (down from 10% last year and 21% the year before). When asked if any efforts are underway to unionize employees, 73% said “no,” 2% said “yes,” and 24% responded “don’t know.” Just over 17% said their minimum wage had been raised in the past year, 32% said efforts are underway to effect such a raise, 37% said no such effort was being made in their area, and 12% answered “Don’t know.” MEETING THE TECHNOLOGY CHALLENGES As for new technologies acquired to improve the hiring process and/or increase productivity, approximately 80% reported the addition of some kind of out-sourcing in 2016 and 68% plan to add new training technology 2017. CStoreDecisions ecisions .com

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Planning to Add in 2017

PROGNOSIS FOR THE YEAR AHEAD Finally, when asked: “How was business in 2016 and how do you think 2017 will compare in each of the three categories listed below,” most think 2017 will be a more prosperous year than we’ve seen in quite a while.

2015 Much Better

Better

The Same

Worse

Much Worse

Don’t Know

Our company

4.2

46.8

34.0

10.6

4.2

Our industry

2.1

46.8

36.7

10.6

4.2

U.S. economy

2.1

34.0

48.9

12.7

2.1

2016 Our company

23.4

57.5

14.8

2.1

Our industry

14.9

51.1

29.8

2.1

U.S. economy

10.6

48.9

27.7

8.5

4.2

One survey respondent had “optimism for 2017 because of a new pro-business President.” Another added, “We are doing company-specific initiatives in an attempt to outperform others in the industry.” Overall, the industry seems poised to deal effectively with its many human resources challenges. Our thanks to all those who took time out of their busy schedules to participate. CSD April 2017 l Convenience Store Decisions 33

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FOODSERVICE

Cooking with Flash

As foodservice garners a greater focus in c-stores, new equipment upgrades are making the category hotter. By Anne Baye Ericksen, Contributing Editor

According to the “What’s in Store 2017” report by the HEN PARKER’S RECENTLY RENOVATED Parker’s Market Urban Gourmet, its flagship store in International Dairy-Deli-Bakery Association (IDDBA), less downtown Savannah, Ga., one of the primary than half of grocery and consumable product sales in 2015 objectives was to create the space to showcase its took place in grocery stores. Mary Kay O’Conner, IDDBA vice president of education, recently told Food Business expanding foodservice offerings. “We listened to what our customers wanted, and we News that convenience stores are responsible for part of that obliged,” said Amy Lane, chief operating officer for the migration away from traditional shopping practices. Moreover, the IDDBA reported recently that food sales convenience store company based in Savannah. Parker’s owns and operates 49 retail sites throughout Georgia and in the convenience store channel are projected to reach $89 South Carolina. “We added a double panini grill and a full- billion by 2025, a 3.5% increase over today’s figures. service Hussmann brand salad bar. We also upgraded our hot grab-and-go display warmer to a Vendo double-door FOCUSING ON FUNCTIONALITY This momentum shift has prompted many in the industry hot merchandiser.” In addition to panini, menu highlights now include to devote more retail real estate to foodservice. But such customized, freshly-made salads, jumbo chicken tenders, commitments extend beyond just adding items to hot and and the Southern classic comfort food, macaroni and cheese. cold menus. These decisions also must calculate for the type, Making more room for foodservice continues to be a top size and functionality of the equipment required to serve trend for convenience stores as owners and operators seek hungry customers. Not that long ago, the typical cadre of foodservice equipment ways to capitalize on people’s changing dining patterns. “Consumers have changed how we shop. There are still common to c-stores consisted of roller grills, microwaves, box stores and warehouses for the staples and standard coffeemakers, carbonated beverage dispensers and frozen items, but we’re finding more people are buying actual beverage machines. Now, in order to provide customers with meals on a shorter-term basis instead of shopping for a fresh meals, businesses are incorporating everything from full week’s worth of meals. Convenience stores are where grab- kitchens to fryers or high-tech ovens to cold displays as well as and-go is the top function,” said Deirdre Flynn, executive soft serve ice cream and milkshake machines. “We need to be able to prepare and sell more food in vice president for the North American Association of Food less space,” said Paul Servais, retail food service director Equipment Manufacturers (NAFEM). 34 Convenience Store Decisions

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FOODSERVICE “WE NEED TO BE ABLE TO PREPARE AND SELL MORE FOOD IN LESS SPACE. CURRENTLY, WE ARE TESTING NEW HIGH-SPEED OVENS. HIGH-SPEED OVENS THAT USE LESS SPACE IN THE KITCHEN AND DISPLAY CASES THAT TAKE UP LESS SPACE ON THE SALES FLOOR ARE IMPORTANT.” -PAUL SERVAIS, RETAIL FOOD SERVICE DIRECTOR, KWIK TRIP

“There is equipment available now, Ovention Ovens being one brand, that allows you to cook various types of foods, such as pizza, sandwiches and proteins in a very short time without sacrificing the quality and taste of food. This equipment helps with giving fast service that convenience store customers expect.” Many new design features incorporate modern controls, including the Internet of Things (IoT) that enables remote monitoring or sensors to optimize energy usage. Other controls offer memory or presets. The NAFEM Show also revealed that manufacturers are keying in on specialties, such as breakfast or cold treats. For example, the Dual Egg Station, from Antunes, was named to NAFEM’s “What’s Hot! What’s Cool! List.” MARKET REACTION The compact station uses heat and steam to cook eggs But convenience stores are not just smaller restaurants. It’s not solely a matter of shrinking existing technology to in less than three minutes in a patty shape, for breakfast fit into the smaller footprint. C-stores’ foodservice require- sandwiches. It also boasts a griddle to warm meats. ments have become more specialized, and according to Conversely, Carpigiani’s 153 Plus model is a countertop Flynn, equipment manufacturers are responding to this soft-serve machine than can also be used to dish out sorbet for customers looking to satisfy a sweet craving in a market segment. “I think the industry has caught up with the understanding healthier fashion. Indeed, foodservice equipment designers are addressing that all the ancillary businesses, such as convenience stores and colleges and universities, are a completely unique the growing demand for better-for-you options. Numerous experience,” Flynn said. “Manufacturers are focused on market research efforts have concluded younger consumers those experiences and how to make experiences better for in particular are pushing retailers to diversify their food operators so their customers are happier. Manufacturers are offerings to include healthier selections. The NPD Group addressing how they could try something new to change estimates that fresh food consumption by Gen Y and Gen Z should increase by 7.5% and 11.1%, respectively, by 2018— the equipment in the c-store environment.” Some of those adjustments were on display at the annual compared to 2013. “There’s less focus on frying, and less oil on the products NAFEM Show this past February. “Electronics and technology are key components to all that are fried. Technology is focusing on various cooking newly-designed equipment. Greater energy efficiency is a methods and how to bring out flavors,” said Flynn. focus, such as allowing the machine to start/stop, especially with equipment that has to come to temperature, so it’s not OTHER CONSIDERATIONS Besides size, use and output, durability is a key zapping energy at peak hours. Also, the equipment design is multi-use and multi-functional,” said Flynn. “[C-stores] consideration. “Maintenance, ease, speed of cleaning and minimal want flexibility so if they need to change items to respond to customer requests or needs in the market, they do not want downtime [are very important],” said Servais. Arguably the most important component of a solid foodto retool their entire kitchen.” An example of multi-function is the hot grab-and-go service program is the staff that makes it function. “Every industry and every business has a certain amount design Parker’s selected for its recent remodel. According to Lane, the machine features six heating zones that can be of turnover, so the ability to train employees on how to individually adjusted and low-airflow, dual circulation fans use it and clean it [should be of concern] when looking at equipment,” said Flynn. “The more complicated a piece to help maintain even temperatures. “These well-lit, attractive display cases have plenty of equipment, the longer it takes to use and clean, and the of room for custom graphics or logos that increase the more time it takes staff away from customers. C-stores want aesthetic appeal and ‘impulse buy’ sales,” Lane said. something that is going to withstand a lot of use.” CSD

for Kwik Trip. Based in La Crosse, Wis., the c-store chain operates 515 stores in Wisconsin, Iowa and Minnesota. “Currently, we are testing new high-speed ovens. Highspeed ovens that use less space in the kitchen and display cases that take up less space on the sales floor are important.” In fact, size is one of the top criteria of whether a certain type of foodservice equipment will pay off for a specific site. “It must make sense in terms of how it is laid out in the traffic flow,” added Flynn. “Convenience store space is smaller and customers are quick in and quick out, so you have to make sure people have the room to work and the equipment has room to function.”

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FOODSERVICE

Adding Value via Food Variety When it comes to satisfying consumers’ cravings for lunch and dinner, convenience stores have it all over traditional restaurants by offering a wider variety of fresh foods through both proprietary and co-branding programs. By Marilyn Odesser-Torpey, Associate Editor

to variety of fresh food offerings, the be ordered baked or deep fried. superstar of convenience store more the better.” Flatheads’ also S e v e n o f h i s s t o re s o ff e r a sales, but Lance Harris, owner of nine Leebo’s Get ‘n Gone proprietary program called Flatheads’ features a $7.99 “plate lunch,” locations in Louisiana, recognized its Fried Chicken. “Our fried chicken program has which includes an potential as a business builder as far given us a better marketing presence entrée-size porback as 40 years ago. That’s when he opened his first and has become associated with tion of chicken, Leebo’s Get ‘n Gone two sides and a store, complete with a full-service deli Leebo’s in these areas,” he said. is growing food For this concept, everything from the biscuit. Sides are sales, said owner and fried chicken offering. And for the past 20 years, he has also been growing chicken to the sides is prepared fresh rotated in and out Lance Harris. the quick-service restaurant compo- daily in the stores’ kitchens. Tenders on a daily basis are a consistently popular meal- and except for some nent of his stores. “ B a c k w h e n I s t a r t e d w i t h snack-time item. A new enthusiasti- standards, which include red beans foodservice, people thought I was cally-received offering is a jalapeño and rice and mashed potatoes. Five of the Leebo’s stores co-brand crazy,” Harris said. “But I have found pepper stuffed with cheese wrapped through the years that, when it comes in a chicken tender and bacon. It can with Naughty Chile Taqueria, which OODSERVICE MAY BE THE new

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Join us for the 2017 National Advisory Group conference!

September 10 thru13 th

The National Advisory Group (NAG) is an association of small, mid-sized and family-owned convenience store chains and the executives that run them. This group meets at an annual conference to exchange ideas with the motivation to improve their business performance and ultimately their bottom line. The setting of this conference encourages an extremely educational, yet highly social environment. The schedule consists of top-notch industry speakers, retailer information exchanges, opportunities to address the burning issues within your business, a chance to get to know your peers in similar size operations and much more!

THANK YOU TO OUR SPONSORS:

Nashville Downtown Hilton

Visit www.nagconvenience.com for more information. 2017 NAG 4-pager.indd 1

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Sunday, September 10, 2017 1:00 – 7:30 pm: Registration

10:30-10:45 am: Break 10:45 – 12:15 pm:

7:00 – 8:00 am: Breakfast

INFORMATION EXCHANGES PART 1 The Information Exchanges are the heart and soul of what makes NAG so unique. Attendees will be formed into small groups of non-competing chains to discuss relevant business issues. We all want uninterrupted time with people who “do what we do,” but rarely do our busy lives allow us the luxury of benchmarking what we do and how we do it with other professionals. As you listen, learn and share with your small group of retailers, you will find that what you are doing right will be validated, what you might be doing wrong will be challenged, and how you might do things better will be encouraged. The relationships formed in this intimate setting will last a lifetime and be firmly measured in increased profitability and decreased legal liability.

8:00 – 8:15 am: Welcome/Conference Overview by

12:15 – 1:15 pm: Lunch

1:00 – 4:00 pm: Pow Wow Room Open 4:00 – 5:00 pm: NAG/YEO Board Meeting 6:00 – 7:00 pm: NAG Welcome Reception Hosted by

the Young Executives Organization 7:00 – 9:00 pm: NAG Dine-Around at the Hilton Nashville Downtown 9:00 – 12:00 am: NAG Hospitality Room

Monday, September 11, 2017

NAG Executive Director John Lofstock

12:45 – 5:00 pm: NAG Golf Outing, Hillwood Country

Club Nashville (boxed lunch will be served)

8:15 - 9:15 am

BURNING ISSUE 1: The Impact of Family Business on Convenience Retailing: Since the inception of the modern convenience store industry more than 75 years ago, c-stores have provided the foundation for retailing excellence. This commitment to excellence begins with an outstanding corporate culture and an unwavering loyalty to employees and customers. So while bigger corporate entities have their sights set on family-owned chains—as much for their superior culture as for their balance sheets—they cannot replicate the value family businesses have in the communities they serve. In this session, hear from three of the convenience store industry’s most respected chains about their commitment to employees, customers and the tradition of family-owned business.

1:15 – 5:00 pm: Free Time/Spouse Events 6:30 – 9:00 pm: Retailer/Supplier Dinners to

Experience Nashville

9:00 pm – 12:00 am: NAG Hospitality Room

SPEAKERS:

• Joseph Sheetz, President and CEO, Sheetz Inc. • Jeff Miller, President and CEO, Miller Oil Co. Moderator: John Lofstock, Executive Director, the National Advisory Group 8:46 am: Moment of Silence in Observance of 9/11 9:15-9:30 am: Break 9:30-10:30 am:

BURNING ISSUE 2: Navigating Stafﬁng: Attracting, motivating and Retaining Millennials. Words used to describe Millennials: entitled, lazy and spoiled as well as tech-savvy and smart. As the largest generation in the workforce, they aren’t going away. Those retail organizations that learn how best to lead Millennials will have a competitive advantage in the marketplace. The process begins with understanding why they are different from prior generations and what motivates them in the workplace. The answers may surprise you. SPEAKER:

• Cherrie Clay Clark, Professor of the Practice of Management at the Owen Graduate School of Management, Vanderbilt University

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Tuesday, September 12, 2017 7:00 – 8:00 am: Breakfast 8:15 – 9:15 am:

BURNING ISSUE 3: Competing On Fuel: Understanding RIN’s, alternative fuels and declining gallon sales. The Renewable Fuel Standard (RFS) is changing fuel economics across the country and not for the better. Credits for renewable identiﬁcation numbers (RINs) are escalating and convenience store chains are having a harder time competing on price and in some cases they are being forced to retail fuel at a loss. Combined with these regulatory requirements, enhanced fuel-efﬁcient vehicles and alternative power sources are muddying gasoline’s future. Learn what you can do to protect fuel sales to remain competitive in the gasoline business.

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SPEAKERS: • Stanley Roberts, President & CEO, Capital Oil Inc. Moderator: Suzanne Murray, Partner, Haynes and Boone, Lead Counsel for the Small Retailers Coalition 9:15 - 9:30 am: Break 9:30 - 10:30 am:

BURNING ISSUE 4: The Future of Fresh Foods in Retail: As consumers increasingly seek fresh options in convenient formats, retailers are rising to meet the demand. While customers have a tendency to talk healthy and eat otherwise, there is a clear need for quick, healthy foodservice solutions and convenience stores are in a prime position to meet this demand. Driven by the consumer’s demand for convenience, food retail concepts, formats and locations are converging. Today’s shoppers are pushing convenience retail businesses to expand, invest in fresh foods and provide a consistent brand experience. SPEAKER: • Matt Lally, Manager, Analytics & Insights, Nielsen Perishables Group 10:30 - 10:45 am: Break 10:45 am - 12:00 pm:

BURNING ISSUE 5: Developing Real Estate: How to Find and Invest in Great Locations: The retail industry is more dynamic than ever. Retailers must evolve to succeed over the next decade. However, the cost of real estate continues to rise so convenience store operators must make wise decisions about how to develop properties. This includes capital investments, site selection, store design and layout and the service offered. Other strategies, such as sale-leasebacks, can help c-stores access capital to acquire new locations. This session will explore the best practices of real estate development to help retailers stay ahead of the competition.

SPEAKERS: • Jack Kofdarali, President & CEO, J&T Management Inc. 12:00 - 1:00 pm: Lunch 1:00 – 2:30 pm: Information Exchanges Part 2 2:30 - 2:45 pm: Break 2:45 - 3:45 pm:

YOUNG EXECUTIVES ORGANIZATION (YEO) BREAKOUT SESSION: What does omnichannel mean to convenience retail? Omnichannel retail is a multichannel approach to sales that seeks to provide customers with a seamless shopping experience whether the customer is shopping in-store, online or from a mobile device. What distinguishes the omnichannel customer experience is that there is true integration between channels on the backend. Using an omnichannel approach means retailers know and respond to their customers’ shopping preferences and can tailor marketing efforts to meet their needs. Presenting a uniﬁed physical and digital customer expe-

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rience in the age of Amazon is an essential requirement for today’s convenience stores. SPEAKER: • Pat Lewis, Partner, Oasis Stop ‘N Go, Twin Falls, Idaho 5:30 – 6:30 pm: NAG Reception Hosted by the Young

Executives Organization (YEO)

6:30 – 9:00 pm: NAG Conference Dinner & Awards

Ceremony

9:00 pm–12:00 am: NAG Hospitality Room

Wednesday, September 13, 2017 8:00 – 9 am: Breakfast 10:45 am - 12:00 pm:

BURNING ISSUE 6: Foodservice: Delivering the goods. UberEats and Amazon have muscled into the foodservice market and are changing how consumers purchase their meals. Other services like Doordash and Instacart are also gaining momentum, keeping customers away from convenience stores in favor of home delivery. Emerging services such as Munchery deliver food directly from commissaries, bypassing the brick-and-mortar stores altogether. To remain competitive, convenience store operators must keep pace to maintain sales in this crucial category.

SPEAKER: • Ed Burcher, Chief Operating Ofﬁcer, Coen Markets 10:15 –10:30 am: Break 10:30 am –12:00 pm: IDEAS BOOT CAMP:

Game-changing ideas retailers can take home with them that are guaranteed to boost retail proﬁtability.

12:00 pm: Conference Wrap Up and Takeaways (Speakers booked through March 25)

3/25/17 7:13 AM

As the convenience store and petroleum industry continues to evolve, training the leaders of tomorrow is more important than ever before. To help young executives have a group that is solely focused on exchanging personal experiences with peers in their age group, the National Advisory Group (NAG) is proud to announce that it has relaunched the Young Executives Organization (YEO). YEO’s mission is to cultivate young talent in the convenience store and petroleum industry through implementation of education and networking. YEO accomplishes this mission by leveraging the experience of NAG members to help foster superior leadership skills. YEO members are industry leaders who are approximately 40 years of age or younger. Members are entrepreneurs, leading top businesses and actively pursuing a higher level of professionalism in the convenience store and petroleum marketing industry. Membership in YEO provides young convenience store and petroleum industry executives with an opportunity to network with other NAG members and inﬂuential industry leaders. It also gives young executives a platform to express their ideas, leadership abilities and vision for the future of convenience retailing. Membership in YEO is open to all NAGmember company employees at no cost. If you are not a NAG Member, join NAG now at www.nagconvenience.com. If you are a young executive or if your operations has a young up-and-coming executive please join us in Nashville! For additional information, contact John Lofstock at jlofstock@csdecisions. com or YEO Board Chairman Jared Sturtevant at jared.sturtevant@ cstbrands.com.

PGA Class A Head Professional Mike Lathrop oversees the 18-hole, par 72 golf course at Hillwood Country Club. Originally designed by legendary golf architect Dick Wilson, the 7,000+ yard course opened for play in 1957 and was renovated by Bruce Hepner of world-renowned Renaissance Golf in 2003 & 2011. HOW TO REGISTER Go to: www.nagconvenience.com. NAG will conﬁrm your hotel room and your meeting registration. A credit card number must accompany your registration. HOTEL PRICING

A block of rooms has been reserved for the NAG Conference at the special rate of $249/night, inclusive of guest room, high speed Internet and exclusive of taxes. Your hotel costs are NOT included in the cost of the conference and should be booked through the NAG registration site. Please make your room reservation by 8/7/17. It is NOT necessary to call the hotel. Please contact the NAG Event Coordinator for suite pricing and availability at NAGRegistration@mocandco.com.

CONFERENCE REGISTRATION RATES Member Super Saver available until July 11th: Super Saver Price, $549 Early Bird July 12th - August 11th: Early Bird Price, $699 Standard August 12th onward: $749 Non-Member Super Saver available until July 11th: Super Saver Price, $649 Early Bird July 12th - August 11th: Early Bird Price, $799 Standard August 12th onward: $849 Spouse/Guest $499 Registration for the conference is open to retailers only at this time. Suppliers interested in attending should contact info@nagconvenience.com.

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SAVE THE DATE! The convenience store industry’s exclusive organization for next-generation leaders and up-and-coming decision makers will be held May 24-25 at Maverik’s Base Camp headquarters in Salt Lake City. A team-building Habitat for Humanity project will take place on May 23. In addition to networking and a firsthand tour of Base Camp, Maverik’s test kitchen, training facilities and convenience stores, YEO’s will hear how the chain nurtures its outstanding retail culture, communicates with customers through its industry-leading loyalty program, tackles foodservice, staffing and developing its convenience store operations.

Registration for the 2017 YEO Roundtable is now open! http://www.nagconvenience.com/maverikroundtable Thank you to our sponsors:

For information on NAG and YEO membership or to reserve a space in the the 2017 YEO Roundtable, contact NAG Executive Director John Lofstock at (201) 837-2177 or jlofstock@csdecisions.com.

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FOODSERVICE Six of the stores co-brand with Hunt offers a menu of made-to-order tacos, burritos and burrito bowls. Brothers Pizza. The pies, which arrive at “We studied our market areas and the stores already sauced and sprinkled found that consumers, especially with cheese, are topped to order. Leebo’s Millennials, want more variety,” Harris sells the pizza as a 12-inch whole and by said. “Co-branding partners like the one-quarter “hunk.” Naughty Chile allow us to keep add“Hunt Brothers has the flavor profiles ing to and enhancing our foodservice.” that our customers like best,” Harris said.

Some of the stores have multiple foodservice operations, depending on their square footage and what other options exist in the surrounding market areas. Harris said he is also open to adding more quick-service partners in sites that have the space and market demand. “Over the past 18 months, we’ve been seeing really nice growth during lunch across all three concepts, especially with our Flatheads’ plated lunches,” Harris said. “For dinner, we emphasize our family-size chicken dinners and Hunt Brothers pies.”

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MIX & MATCH SUCCESS After a slow start to fresh dinner foodservice over the years, Swiss Farms Stores, which has 12 (soon to be 13) drive-through markets in suburban Philadelphia’s Delaware County, hired Justin Vignola as director of fresh food/new product development last July. After putting together a team, including graduates of some of the nation’s top culinary schools, the chain debuted an extensive selection of mixand-match, heat-and-eat entrees and sides in January. “Our market area is mostly made up of busy families with parents having little time to make a full meal at home,” Vignola explained. Customers can choose from 10 main dishes for $7.99 and side dish for $4.99 each. Most of the entrees are large enough to feed two people. Among the best-sellers so far are slow-roasted pulled pork covered in Swiss Farms’ Signature Tea Cooler barbecue sauce, bacon-wrapped meat loaf and chicken vegetable lo mein. CStoreDecisions ecisions .com

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FOODSERVICE Cubby’s Convenience Stores offers its popular signature Junction Burger, which, instead of being served on a bun, is wrapped in a mini pizza crust and baked. Customers can get the specialty burger with bacon, Swiss and mushrooms and “angry” with jalapeños, 1,000 Island Dressing and chili cheese.

CONSISTENCY SELLS A combination of co-branded and proprietary offerings allows Cubby’s Convenience Stores to offer a variety of foods for lunch and dinner. There’s a Godfather ’s Express in 20 of 36 Cubby’s stores, which are located in Nebraska, Iowa and South Dakota. In nine stores that are located in market areas where Godfather ’s is already established, Cubby’s offers its own ALTHOUGH MANY RESTAURANTS ARE reporting declining lunch and brand of fresh-made pizza. dinner consumer visits, snacking occasions grew by 2% in 2016, according to “Our first choice is Godfathers; our a CREST report from The NPD Group, a market research firm. And while some store brand is our back-up,” said De of that might mean munching on a bag of chips, an order of French fries or ice Lone Wilson, Cubby’s Convenience cream, a big part is chowing down on burgers, chicken tenders and sandwiches, slices of pizza and breakfast sandwiches throughout the day, explained Bonnie Stores president. “Godfather’s started Riggs, restaurant industry analyst for The NPD Group. and is based in Nebraska, so it has “Consumers are describing these eating occasions as ‘snacking,’ but they’re very high consumer recognition and actually eating many foods that are usually eaten at traditional meal times,” a loyal following. The company also Riggs noted. provides a solid program to follow In the ongoing report tracking the restaurant behavior of 3,000 consumers, NPD found that 22.3% of snack occasions occur between 11 a.m. and noon, and a lot of support.” 48% between 2 p.m. and 4 p.m. and 29.7% in the late afternoon or evening. In most of the stores, customers also have the choice of bone-in pieces or tenders from the Chester’s Fried Chicken program. “Chester ’s also has great brand “We wanted to make the pricing back-lit menu boards at the driveconsistent, so it would be easy for through as well as sampling outside recognition, especially on highways customers to mix and match items,” of the stores. The strongest days for that see a lot of truck traffic,” said dinner sales to date are Friday and Wilson. “More important, it’s a good he said. product—I’d stack it up against Sales of the dinner entrees started Saturday. Lunch at Swiss Farms still revolves anybody’s.” out slowly as customers got used to Many of the stores offer hamburgers, seeing such an array of fresh, in- around fresh, made-to-order hoagies, home replacement meals at Swiss composed salads, hot melt sandwiches cheeseburgers and a popular signaFarms, Vignola said. But over the and the company’s hand-cut regular or ture Junction Burger, which, instead first month, volume increased 150% cranberry chicken salad. Vignola said of being served on a bun, is wrapped and sales rose from between $16,000 he is also working on expanding the in a mini pizza crust and baked. The and $17,000 per week up to over selection of heat-to-order items that specialty burger also features such offerings as bacon, Swiss and mushcustomers can eat on the go. $26,000. Vignola noted that since the meal rooms and “angry” with jalapeños, To give the program a boost, Swiss Farms has been using a variety of program has been available, incre- 1,000 Island Dressing and chili cheese. Last October, in all of the locations media, including mailers, radio and mental sales of tea coolers and other high value coupons (e.g. $2 off any drinks along with other incremental that serve food, Cubby’s introduced a purchase of two entrees on family items such as milk, bread and cereal daily lunch special featuring a rotating roster of store-made items. On night meal deals every Thursday); have increased.

SNACKS VS. MEALS

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FOODSERVICE

LUNCH/ DINNER TIPS

1. Consumers want variety when considering foodservice offerings. 2. Good food builds incremental sales. 3. Co-branding can bring instant recognition to a c-store operation. 4. Have food ready when customers want it to better meet expectations.

Mondays, for example, the special is tacos served with either Mexican rice or seasoned tater tots, while on Tuesdays it is a pork tenderloin sandwich with mashed potatoes and green beans. The price is $7.99 and includes a 32-ounce fountain drink or bottle of water.

“As much as people love their pizza, about two years ago, is “very popular” chicken and burgers, they also want and is constantly attracting new fans, he said. more variety,” Wilson said. So far, the daily special program Wilson explained that the convenience stores were offering lunch is doing “pretty well,” according to specials everyday anyway with the Wilson, who expects that sales will foodservice managers choosing the pick up even more in the warmer months when more people are out and items on the specials menu. “We just made it more consistent about. The stores promote the foodserfor them by featuring the same items vice program on digital menu boards on the same days every week,” he and on Facebook. As for the dinner daypart in said. “This way the managers know in advance what they have to order and general Wilson feels that “our biggest customers get used to coming in for challenge is ourselves.” “Retailers are so scared of waste, but their favorites on specific days.” Cubby’s also does barbecue, with you can’t say you offer chicken, be out two pit masters that bring smokers to of it when the customer comes to in stores in Nebraska and Iowa once or to get it and expect that customer to twice a week to prepare pork, brisket come back again,” he said. “A certain and smoked mac and cheese. The amount of waste is healthy. It’s a sign program, which was first introduced that you’re not missing sales.” CSD

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CATEGORYMANAGER’S NOTEBOOK

Boosting Your Beverage Business

Whether it’s a modest combination deal or full promotional blowout, c-stores are finding the best methods to churn cold and frozen dispensed beverage sales. By David Bennett, Senior Editor

MARCH 2016 SURVEY BY Mintel Group Ltd. showed tions to push product. Frozen beverages often came out of a that convenience store visitors want a wider variety 7-Eleven Slurpee machine. However, convenience retailers of fresh food and beverages as part of their shop- today provide U.S. consumers a vast selection of cold and frozen dispensed beverages including fruit-infused slushes, ping experience. As part of the report, 912 internet users aged 18 or older milkshakes, iced coffees, novelty soft drinks and frozen bevwere asked: “Which of the following made-to-order or fresh erage concoctions. The result is a category that continues to foods/beverages have you purchased at convenience stores provide momentum when it comes to in-store sales. in the last three months,” 48% of respondents said fountain beverages, which was the top choice among food and bev- EXTENDING FOODSERVICE SALES C-store foodservice programs generated more than erage offerings. Some years ago, the fountain category and the con- one-third of in-store gross-profit dollars in 2015, with cold cept of fresh appeared contradictory. C-stores were known and frozen dispensed beverage sales being key contribufor a limited dispensed drink selection, with few promo- tors, according to the National Association of Convenience Stores (NACS) 2015 State of the Industry report. By gross margin sales, cold beverages per store, per month grew to 50.86% in 2015. Frozen beverages weren’t that far behind with a gross margin percentage of 46.05%. NACS’ preliminary State of the Industry report for 2016 will be out soon. When it is published, cold and frozen beverages will likely be strong performers again. Arguably, the c-store channel has already earned the title as the cold dispensed beverage destination champ. Now, convenience retailers are adding some polish to the title in the form of new product offerings and flavorful deals to keep customers coming back—and not just to the cold vault. “The thirst occasion is one of the primary reasons customers come to a c-store and a cold beverage is a great way to quench that thirst,” said Steven Montgomery, president of b2b Solutions LLC, a convenience store consultancy based in Lake Forest, Ill. “The question is: are they going to buy a beverage from the cooler or a dispensed beverage. The answer lies in the consumers’ personal preferences and how they perceive the retailer’s dispensed offers.” Steve Magestro, president of Saukville, Wis.-based Mad Max Convenience Stores, counts dispensed beverages as a significant contributor to the company’s in-store profits and is looking to extend its advantage. Mad Max at the beginning of 2017 began installing a new generation, Pepsi Spire machine that offers consumers multiple drink selections at the touch of a button. 46 Convenience Store Decisions

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CATEGORYMANAGER’S NOTEBOOK

48% said in a 2016

The chain operates 12 locations in Wisconsin, which in Pepsi products, plus another 18 the winter, can be natural barrier to cold and frozen dis- frozen offerings. The retailer also pensed beverage sales. With the new machines, Magestro has a private label frozen beveranticipates a big uptick in category sales when the weather age brand, Numb Skull. The c-store chain has begins to get warmer. “Cold and frozen beverages always increase for us from expanded upon the model of a April through September,” Magestro said. “Because of the destination with its annual protemperature difference in our region, cold and frozen slow motion known as Sodapalooza. way down because of the cold weather. I think it will be flat Sodapalooza is RaceTrac’s most popular annual summer founfrom previous (winters).” tain and frozen marketing event. Customers who purchase a reusQSR COMPETITORS However, for the upcoming summer season, which able Sodapalooza cup receive is often marked by road trips and consumers on the go, unlimited free refills on a variconvenience stores also benefit from the high margins ety of fountain drinks, teas and energy drinks at nearly 450 produced by salty snacks in the bag, or fresh and healthy stores in the southeast. Sodapalooza has become a favorite among RaceTrac prosnacks in grab-and-go portions. And where there are snacks, motions because of the timeliness of the promotion, as well there are cold drink purchases. “An advantage the c-store maintains is the tremendous as the exclusive access it provides, said Marianne Simpson, selection of snacks that we offer that can be bought to go promotions manager for RaceTrac. 2016 was the fifth year RaceTrac has hosted Sodapalooza. with the beverage,” said Montgomery. “Our guests are able to come into a RaceTrac like Though snacks provide a natural boost to c-store dispensed beverage sales, the channel will continue to a VIP and refill their cup for free during the hottest experience pressure from quick-serve restaurants (QSRs), months of the year, no questions asked,” said Simpson. which in the last few years, have positioned hot and cold “Additionally, in recent years, the cups have included general and regionally-specifi c coupons that add even dispensed beverages as stand-alone sales generators. “Their strategy has shifted from being focused on selling more value to their refi llable cup (e.g. all cups include the protein with the accompanying drink being an ancillary Coca-Cola coupons while Atlanta guests may have a buy sale to one that understands that drinks can be a destina- one, get one free Braves ticket, and Orlando area guests tion driver,” Montgomery said. “An example from the hot could receive discounted Sea World tickets). Finally, our beverage category is shown to be McDonald’s emphasis store teams look forward to this promotion each year we on coffee. To date the only QSR that has already made the have executed it, and team member engagement drives increased guest excitement.” change for cold dispensed drinks is Sonic.” While the success of the beverage campaign is meaSonic Drive-In in the last few years has successfully marketed itself as premium place for dispensed beverages, surable, the planning that the annual promotion entails is where consumers can mix and experiment with drink com- demanding. “It’s not always a guarantee that Sodapalooza will occur binations between its fountain drinks and slushes. Currently, the fast-food chain is promoting half-price shakes and ice each year,” said Simpson. “Once a campaign ends, our marketing team works closely with our fountain category slushes after 8 p.m. That’s not to say the c-store channel isn’t concocting its team to determine if the promotion was successful from a own beverage strategies. Anymore, c-store channel surfers sales and brand-building perspective. If our internal teams can find popular beverage options such as Jolly Rancher determine the year’s campaign was a success, we will begin Frozen Beverages, Hershey’s Freeze Frozen Beverages and planning for the next year’s campaign in September, with plans to launch in the April or May of the coming year.” Sour Punch Slushes. Last year’s campaign ran from May 4-July 31, 2016. Chilly coffee drinks have also gained traction in a Accompanied by clever advertising and social media growing number of c-stores. campaigns, the beverage promotion has been a boon to RaceTrac in terms of attracting new customers. PROMOTING SODA “Social media is an integral part of the Sodapalooza proStill, carbonated soft drinks continue to generate a bulk of cold and frozen dispensed beverage sales in the motion, as it allows us to leverage paid and earned tactics to increase awareness and drive purchase of the cups while c-store channel. For instance, Atlanta-based RaceTrac Petroleum offers up engaging with our guests with channel-specific activities,” to 30 fountain options including Coca-Cola, Dr. Pepper and Simpson said. CSD

survey that a fountain drink was their top foodservice purchase.

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CATEGORYMANAGER’S NOTEBOOK

Clearing a Path for Smokeless

Despite unexpected challenges, smokeless tobacco sales continue strong gains. By Howard Riell, Associate Editor

and usually with lower tax rates; and consumer perceptions the smokeless tobacco category, which has been per- that chewing is a less harmful alternative to smoking.” Nor are the trends influencing the growth of smokeforming strongly since last year. Bonnie Herzog, managing director–equity less tobacco likely to abate any time soon, Burke suggested. research beverage, household & personal care, tobacco & “Management Science Associates predicts that the growth c-stores for Wells Fargo Securities LLC, reported recently rate will continue to be consistent with the past few years, that smokeless tobacco dollar sales are a “bright spot” as likely in the 3-6% range.” Chewing tobacco represents approximately 8% of the consumers continue to respond positively to recent line total tobacco/vapor category, snus about 2% and dissolvextensions. According to Information Resources Inc. (IRI) data for ables less than that, Burke added. “These are important categories, and are becoming even the 52-week period ending Feb. 19, 2017, sales of smokeless tobacco products in c-stores generated $6.5 billion, an more important, but retailers should not over-SKU with increase of 5.86% over a year ago. Of that, chewing tobacco these products at the expense of the larger tobacco categories,” Burke said. “Equally important is to maintain the and snuff were nearly $6.2 billion, a hike of 5.56%. Spitless tobacco sales were nearly $283 million, an right product balance between the premium and discount chew categories, depending on their customer preferences.” increase of 12.68% during the same period. “The chewing tobacco category has been consistently growing over the past decade, with annual growth rang- RECALL FALLOUT This past February, U.S. Smokeless Tobacco Co. (USSTC), ing from 3-11%,” said Don Burke, senior vice president of Management Science Associates Inc., a diversified informa- a unit of the Altria Group Inc. and the company that martion management company. “It appears that many factors kets Skoal, Copenhagen and other smokeless tobacco likely have contributed to this growth, including anti- brands, issued a recall after complaints that foreign metal smoking regulations that more recently have often been objects were found in some smokeless products across Texas, re-written to include vapor; lower cost versus cigarettes, Wisconsin, Indiana, Ohio, North Carolina and Tennessee. XPECTATIONS ARE HIGH FOR the long-term health of

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CATEGORYMANAGER’S NOTEBOOK unable to transition his smokeless customers to other products, although at least one manufacturer has tried. “R.J. Reynolds was clever. As soon as they heard about (the recall) they sent out something saying, ‘Here are comparable products in Grizzly, why don’t you order them?’ Of course, they weren’t prepared to have extra stock, either,” said Johnson. “They did a little bit, but they were not prepared to replace all the missing products. I got a little extra According to IRI data, of it, and that was it.” for the 52-weeks ending Johnson has little interest in doing so even if he were Feb. 19, 2017, sales of able to. “I’d hate to take a Copenhagen guy down to Grizzly smokeless tobacco because it’s premium-tier to mid-tier. I don’t want them to products in c-stores generated $6.5 billion, discover Grizzly.” an increase of 5.86%. The Speedee Mart chain carries two brands of snus: Camel and General, which is produced by Swedish Match. Moreover, geography is proving lucky for tobacco-sellThe recall affected more than Skoal, Copenhagen, Cope and ing retailers in Las Vegas. “The big thing coming is the California tax change,” Husky-branded products. “Last year, for me, (smokeless) was my best tobacco cate- Johnson said. While taxes in that state will rise to $2 per pack of cigagory and I was up over 20%,” said Ray Johnson, operations manager for Speedee Mart Inc., based in Henderson, Nev. rettes and to 28% on vape products on April 1, the pertinent “And this year, they had that big recall—disaster. It dropped change for smokeless tobacco (and cigars) is scheduled for to nothing; only 4% so far this year. I’m out of stock badly.” July 1, when taxes jump from 28% to 66%. When that hapEach week, Johnson added, suppliers are listing which pens, Johnson added, Speedee Mart figures to make back some of the monetary ground it lost to the recall. products are available and which aren’t. “It should increase,” Johnson said. “The No. 1 tourist is “The problem is that they are shipping what they have, and everybody gets a percentage of what they order until it the guy who drives from California. (Speedee Mart) should gets evened out. They have downplayed it quite a bit, but get a nice benefit.” In turn, the Nevada chain is doing what it can to preit is severe.” Wells Fargo’s Herzog reported in early March that pare for the added business. “We’re just going to have extra smokeless tobacco restocking was taking longer than stock—if we can get it by then,” Johnson said. “The problem is that we can’t get any stock. We were hoping before expected. “We’ve recently learned that USSTC has not yet been this recall happened to be extra-stocked, knowing that those able to fully restore its inventory pipeline of select recalled people were going to come over, because that is a huge smokeless tobacco products in late January and is in fact jump in price for them.” Johnson has instructed store employees to be honest and limiting the volume that wholesalers can purchase at this time. Apparently, demand for MO’s (Altria’s) smokeless up front with disappointed customers. “We tell them that it was a recall that is affecting everyproducts is exceeding the amount they’re able to produce.” The recent recall has had an impact in other Western one,” Johnson said. “That’s about all you can say.” He dismissed the use of signage to explain the situation states. “We are seeing dramatic drop in usage here,” reported Ed to consumers. “Nobody reads signs,” said Johnson. “You Pollock, a principal of Grasslands Market, based in Douglas, put it on the door and they are going to walk out and not Wyo. Concurrent with that, he added, has been a general buy anything, so we don’t want to do that.” He suggested that the smokeless segment should be fine drop in all demographic categories. Copenhagen and Skoal overall, in terms of popularity and sales. Regulatory meacontinue to be his best-selling product lines. Grasslands’ Pollock opines that in-store merchandising sures in other tobacco categories have an undue, popular lacks the ability to generate any kind of sales bump. “We impact. “It keeps going because of all the laws about smoking,” display prominently at the counter. Beyond that, I don’t think that given the current trend, money spent here is Johnson said. The most crucial thing for c-store operators to do is simworthwhile.” ply to keep shelves filled. “You don’t really have anything else. As the cigarette usage keeps declining, you are going VARIABLES IN VEGAS Speedee Mart’s Johnson said that he has been largely to have more people move to smokeless.” CSD 54 Convenience Store Decisions

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TECHNOLOGY

POS Grows With the Times Point of sale innovation will continue to improve the customer experience. By Pat Pape, Contributing Editor

replace traditional payment choices by 2020. Comparably, As manager of marketing technical services for the Nielsen Co. reports that 84% of shoppers are more likely Sinclair Oil Corp. of Salt Lake City, Gibson is aware to patronize stores that reward them for being a loyal patron. “C-store retailers have a large opportunity to partner of the latest tech trends in most retail channels. But he was wowed recently at a restaurant in San Diego, with manufacturers to leverage marketing, couponing when the server brought the bill to his table, along with a and in-store promotions,” said Perry Kramer, vice preshandheld credit card machine, and his companion paid on ident and practice lead at BRP, a Boston-based retail consulting firm. “C-stores can integrate their loyalty systhe spot with his Apple watch. “I don’t know if the restaurant was using Bluetooth or tems to consumers’ payments with a mobile wallet or a near-field communication [two forms of wireless commu- mobile application. This can be as simple as introducing nications over short distances],” Gibson said. “But I can a QR-type code or barcode on the phone that can be used see in the future where somebody—rather than use their instead of a physical loyalty card. “The challenge most c-stores have in this area is cenphone—will use their watch to start a fuel pump and pay tered around a loyalty system that adds enough value to for the gas.” keep customers engaged,” Kramer continued. “The initial way, and probably the most memorable way c-stores have PROGRESSIVE POS Although point of sale (POS) was once a system for ring- done this, is through rewards and discounts on fuel and ing up sales, tracking the movement of merchandise and beverages.” Some retailers work directly with vendors to provide managing inventory, the tech industry continues to create new POS tools to improve store management and customer customers with special offers and move more products. service. The same POS platform that processes sales can eas- Speedway stores of Enon, Ohio, partners with numerous ily operate a loyalty program and present consumers with suppliers, such as Coca-Cola and Lance Crackers, to give loyalty club members extra points when they buy the venattractive promotions. Mobile payments were slow to take off, but according dors’ featured products. “Leveraging marketing relationships with the manufacto a recent survey by Pew Research Center in Washington, D.C., nearly 66% of participants think that smartphones will turer to add value beyond fuel rewards is key to keeping USSELL GIBSON KNOWS TECHNOLOGY.

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TECHNOLOGY customers engaged,” said Kramer. “The largest c-stores are already leveraging a strong marketing relationship with the many direct-store-delivery partners. In some cases, the value-add to the manufacturers, in addition to top line sales, is the c-stores sharing promotional results, including customer demographic data.” MOBILE SOLUTIONS Today, approximately 68% of U.S. adults own a smartphone, and for many, that phone is a mandatory shopping accessory. Consumers use their phones to locate nearby stores and merchandise, study product information and compare prices from different retailers. While mobile payments were slow to take off, more than 114 million U.S. consumers now say they’ve made at least one mobile payment. There are many other ways that retail POS systems can connect with consumers’ phones to help boost sales. “Complicated software can also be linked to beacon technology that alerts consumers’ phones of targeted coupons and flash deals while they are at the pump or as they enter the store,” said Kramer. “The c-store is a very difficult environment to drive incremental sales at the POS, as one of the cornerstones of a successful c-store POS is speed. An underleveraged opportunity to increase sales and speed is to allow customers to order beverages and meals at the pump.” Mobile tablets with a POS connection are convenient for taking payments from customers in a restaurant or department store, but tablets remain rare in traditional convenience outlets. “You aren’t going to have someone walking outside or coming from around the counter to take a payment [on a tablet],” said Gibson. “Maybe it makes sense for Wawa or Buc-ees that have much bigger stores. We do have some Sinclair dealers using them, especially at truck stops. They may deliver a pizza directly to a truck parked on the lot and have the customer pay on the tablet.” While early POS was aimed at handling store logistics in real time, future POS enhancements will emphasize the shopper. “The next generation POS and in-store technology will be focused on improving the customer experience by identifying the customer and delivering frictionless payments and a personalized experience with coupons, offers, rewards and discounts,” said Kramer. “Much of this new innovation will be tied directly to the consumers’ mobile device.” Tech experts believe retailers should think ahead to future opportunities that combine mobile payment with loyalty programs and strategic marketing efforts in order to give customers the best possible in-store experience.

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EMV requirements in-store and at the pump. “The focus is still on EMV because some of the manufacturers don’t have hardware and software available for the stores now,” said Gibson. “Then it will be EMV for fuel dispensers. There is going to be staggering of implementation as various POS manufacturers get it done.” Pushing back the EMV fuel pump deadline to 2020 has been a relief for many operators, “but by that time, it’s entirely possible that mobile will have taken root,” he said. “I think customers will find that mobile is going to be faster and more secure.” After EMV implication, what is next for POS technology? Kramer expects to see a range of new tools to help retailers set planograms, manage schedules, start and pause training courses, produce signage and execute tasks on the sales floor instead of in the back office. “These will improve efficiency and help managers more effectively manage the sales floor,” he said. “It’s going to be all over the board, and some retailers will be quicker to market with these technologies,” said Gibson. “Of course, it’s a lot easier for a new, ground-up facility to EXERCISING EMV Currently, most convenience retailers are concerned less offer something new. They don’t have an investment in an with sci-fi payment technology and more fixed on meeting existing system they need to replace.” CSD CStoreDecisions ecisions .com

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TECHNOLOGY

Applying Today’s Automation As retail channels vie for foodservice customers, the implementation of technological advances such as digital kiosks and self-checkout stations are making convenience stores even more competitive. By David Bennett, Senior Editor

Moreover, such automation will eventually be the rule, HE STORY OF HOW Ray Kroc grew McDonald’s into an assembly line service model—a mass producer of not exception, George said. Other automated innovations cheeseburgers and milkshakes—is the crux of the new such as self-checkout stations—a regular sight in grocery movie “The Founder.” Since its beginnings, the quick- stores—and mobile-wallet technology tied to payment tools service restaurant (QSR) has gained international popularity such as Apple Pay, Samsung Pay and Android Pay are sure based on the assurance that customers know exactly what to attract even more followers. “The future is going to be more of this—global ordering they are going to get when they go to a McDonald’s—no and global paying,” George said. “This is the way the world matter where the restaurant is located. The fast-food giant is making headlines again—this time is going.” Zebra Technologies Corp. recently released the results of skirting its legacy by promoting personalized food orders through touchscreen kiosks, which are now being rolled out its “2017 Retail Vision Study,” which addressed anticipated retail automation trends, including: in different U.S. regions. • To speed check-out lines, retailers are planning to invest Not to be outdone, it was recently reported that Wendy’s will add touchscreen kiosks in 1,000 locations (about 16% in mobile devices, kiosks and tablets to increase payment of its restaurants) by year’s end, according to the Columbus options. At least 87% of retailers will deploy mobile pointof-sale (MPOS) devices by 2021, enabling them to scan and Dispatch. Richard George, professor emeritus of food marketing accept credit or debit payments anywhere in the store. at Saint Joseph’s University’s Haub School of Business in Philadelphia said the two power QSRs are realizing what a REMEMBER ME AT RUTTER’S York, Pa.-based Rutter’s Farm Stores in the last few years growing number of convenience chains already know: that food ordering kiosks allow customers to accurately order food has been honing its corporate vision for the level of foodserin a speedy manner, while enjoying more customized control. vice it can deliver to include speed, reliability, quality and 58 Convenience Store Decisions

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TECHNOLOGY For almost two years, Rutter’s Farm Stores has offered select customers a unique food ordering kiosk system that combines convenience and customization at the touch of a finger. Customers designated as VIP Club members can enter their phone number, ID and passcode into the food order kiosk. By pushing the Remember Me button, the digital kiosk will then show them the last 12 orders they’ve chosen to have remembered. These same customers can reorder their favorite orders any time.

Even for just a regular burger, customers can choose from 50 different toppings, eight different breads and eight different cheeses. As promised, the VIP kiosk system remembers those preferences for next time. Of course, Rutter’s also relies on human capital. The company recruits employees at Chipotle and Panera Bread personalized service. The last attribute is reflective in its because the c-store wants individuals who can come in with restaurant experience. unique Remember Me program. More and more, the Rutter’s is assimilating its mobile For almost two years, the convenience store chain has offered select customers a unique food ordering kiosk strategy to include apps and kiosks, supported on system that combines convenience and customization at smartphones. Marketing, loyalty and customer engagement efforts tied to such devices will eventually link to almost all the touch of a finger. Customers designated as VIP Club members can enter facets of the chain’s retail operation, Gaskin said. “We are also rolling out NCR optic kiosks to our pumps,” their phone number, ID and passcode into the food order kiosk. By pushing the Remember Me button, the digital Gaskin said. “Our thought is: our omnichannel is to be able kiosk will then show them the last 12 orders they’ve cho- to deliver a consumer experience and quality food that sen to have remembered. These same customers can reorder (patrons) can order through all of those interfaces when they want, wherever they want; so our technological roadtheir favorite orders any time. Remember Me kiosks are available in 53 of 66 Rutter’s map clearly has those milestones on it and whether it’s adding mobile ordering and payments, in-car ordering and locations in Pennsylvania. Derek Gaskins, chief customer officer for Rutter ’s, payments and at-the-pump ordering and payments—all of explained it’s an innovative step toward the c-store’s strate- these are paths that we are boldly going down.” gic theme of “mass-customization.” “Oftentimes people ask: ‘What are you famous for?’ LOUISIANA PURCHASE Not all c-stores that have installed food ordering kiosks We’re famous for letting customers choose what they want,” Gaskins said. “If you want pastrami on your pizza boast a large geographic footprint. St. Romain Oil Co., which operates 10 Y-Not Stop locations or shrimp on your pizza, we have created a way that you can do that and then we have a loyalty platform that will throughout central Louisiana, has enjoyed a high degree of remember those orders so the next time it’s easier to pull up, success and increased sales with its touchscreen devices. Annie Gauthier, chief financial officer and co-owner of building on the speed and convenience aspect.” The company’s app and rewards programs are tied to the St. Romain, said the automation upgrades have enabled system, recognizing VIP patrons and will add any rewards the c-store chain to meld its capacity for speedier service and its employees, pointing out that a human face is also or discounts applicable to any transaction. Ryan Krebs, director of food service at Rutter’s, said not an essential ingredient of the overall customer experience. “We are committed to pioneering a friction-free environonly have the customized kiosks bolstered Rutter’s pizza program, they have spurred a higher degree of diversity and ment for our team members and guests, so the kiosk is a key innovation at the c-store chain, which has revamped how component for us,” Gauthier said. “However, we operate in Rutter’s approaches foodservice, by rethinking its various the rural south, so we also allow guests to order at our regofferings and how they lend to even more customized service. isters by speaking with our associates.” Six of St. Romain’s 10 stores currently have kiosks, while “It allows us to cross-utilize items that create a different experience for each customer. I can take a cheesesteak and two more remaining locations will have them added in the make a breakfast item out of it, a dinner item, an appetizer, next year. According to Gauthier, the ordering kiosks offer a quesadilla, and because it’s on the kiosk, I don’t have numerous benefits. “It’s much easier to offer more options to our guests and to limit myself on a menu board that says ‘here are the 12 options in their final form that you have to choose from,’ to upsell more easily and be a focus for customization in this have-it-your-way world,” said Gauthier. similar to a McDonald’s or a Wendy’s.” 60 Convenience Store Decisions

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TECHNOLOGY CHECK IT OUT Adding kiosks is a major convenience for customers. Getting them out the door after their order is filled is another consideration. To accomplish this, some c-stores have invested in self-checkout stations that can speed up the time that customers have to stand in line. QuickChek, a Whitehouse Station, N.J.-based convenience chain that operates 148 stores in New Jersey and New York, has been using self-checkout terminals since 2008. John Schaninger, who until last month was vice president of sales and marketing for QuickChek (QC), explained that implementing a self-checkout system is a large investment for retailers. In order for there to be a suitable return on investment, self-checkout terminals should be intuitive and user-friendly. If the equipment meets those customer needs, speedier transactions aren’t far behind. “We know that speed is one of the most important attributes of a great convenience retailer. The Fast Lane selfcheckouts were installed to offer time-starved customers the opportunity to check out faster,” said Schaninger. “We also continue to offer staff-manned registers for those who like our typical, QC hospitality.” Currently, 40 QuickChek locations are equipped with

“IT’S MUCH EASIER TO OFFER MORE OPTIONS TO OUR GUESTS AND TO UPSELL MORE EASILY AND BE A FOCUS FOR CUSTOMIZATION IN THIS HAVE-IT-YOURWAY WORLD.” - ANNIE GAUTHIER, CHIEF FINANCIAL OFFICER AND CO-OWNER, ST. ROMAIN OIL CO.

self-checkout stations. Similar terminals will be featured in future QuickChek sites as well, Schaninger said. Because of its self-checkout offering, QuickChek has enjoyed speedier check-out times at those locations in addition to another unexpected operational improvement— reduced merchandise shrinkage at some locations. “When you think through it, if a customer plans on stealing, they would probably do that in a more hidden area of the store, not by a traditional manned register,” said Schaninger. CSD

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TECHNOLOGY

Mac’s Crime Prevention Success As Mac’s works to deter theft, Harvard University is studying the convenience store chain’s approach to crime prevention. By Erin Rigik Del Conte, Senior Editor

AC’S CONVENIENCE STORES IN central Canada is well known for having a multi-faceted approach to fighting crime and maintaining store security. CSD spoke with Sean Sportun, ICPS manager, security & loss prevention for Mac’s Convenience Stores, about the many initiatives the chain is using to combat crime, and how a Harvard Business Study is assisting its efforts.

Convenience Store Decisions (CSD): Mac’s is known for its partnership with the Crime Stoppers program—including using social media to identify robbery suspects. When did you first begin the partnership and what results have you seen? Sean Sportun (SS): Our partnership with Crime Stoppers across Canada spans almost 10 years and has helped significantly as part of our crime prevention strategy. The introduction of the MacsCrimeBusters social media initiative in 2012, where we work with the police and Crime Stoppers to identify suspects who have victimized our stores, has definitely enhanced our partnership. Through this initiative, we push viewers to contact Crime Stoppers if they have information that can assist in identifying suspects. Since inception, we have posted 499 suspect images, resulting in 419 suspects being arrested— that’s an 84% clearance rate! Mac’s reimburses Crime Stoppers for the tips they pay out to the tipsters, which has only been $4,500. CSD: What type of technological equipment does Mac’s use to curb criminal activity? SS: Out of our Toronto office, we have a 24/7 Security Monitoring Room that has the ability to remotely dial into all our stores in Ontario and western Canada to view live realtime video and recover video when investigations develop. 62 Convenience Store Decisions

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Significant funding has been provided to grow this resource with the upgrade of hi-definition IP cameras at our locations, which provide higherresolution, quality images.

CSD: About the video monitoring room—when did Mac’s first start this and how does it work? SS: The Monitoring Room was created back in 2006 and has grown into an Sean Sportun, ICPS important piece of our Loss Prevention manager, security & Department. We are able to remotely loss prevention for connect to the in-store DVR system Mac’s Convenience to view live real time video. The core Stores in Canada. function of the Monitoring Room is to identify areas of risk and provide operational support to stores, with the secondary function to provide support to police when it comes to recovering video/images. The Loss Prevention Operators (LPO) who work in the Monitoring Room complete what we call Virtual Inspections, where they will randomly observe a store and the movements of an employee looking for compliance to safety/security standards. After observation, the LPO will call the store and go through a series of inspection questions with the store employee—after this the LPO will complete the Virtual Inspection by sending the results to the operations team. If the LPO observe suspected dishonest behavior, they will terminate the Virtual Inspection and transition into an active investigation. As a result of the Monitoring Room, we are seeing a decline in internal incidents, but also a decline in employee injury incidents. CStoreDecisions ecisions .com

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TECHNOLOGY CSD: Mac’s encourages communities to assist in painting pect/employee behavior and murals on Mac’s convenience stores as part of its crime have already provided some prevention strategy. What benefits have you seen and how suggestions as it relates to training that we’ve impleis the program evolving? SS: The Mac’s StreetART Program—launched in 2012— mented. We have been able strengthens the relationship between the community and to enhance our security/safety each Mac’s store. It builds a community-based shared training for our employees using responsibility to prevent crime—such as graffiti, shoplifting the information from Harvard. and robbery incidents—not only at the store, but on the property as well. CSD: Can you give an example of changes you’ve made to This forward thinking concept has seen positive results, training based on observations from the study? not only in the reduction of crime at the locations where the SS: We always encourage our employees to keep busy during murals have been painted, but also in the beautification the their night shift; be out on the sales floor and complete duties, mural has within the community. As a result of this initia- such as clean up the store, replenish the items and so forth. tive, graffiti crime and overall crime at these locations have That in itself can be a crime deterrent, meaning the suspect been virtually eliminated, with these stores (and the overall wants the employee behind the register because it’s easier for property) receiving a positive community response, exten- them to get the money and get out. What we were seeing sive media attention and exposure to new customers. was a trend where employees were mopping or sweeping the Not only is the crime going down because of the murals, floor as required, but when a robbery occurred during this but our sales are increasing. time, the suspect(s) were (in most cases) introducing violence Mac’s Loss Prevention is currently being studied by almost immediately. The experts from Harvard suggested Harvard University, with the report due out this summer. that when a suspect enters to commit a robbery their anxiety The Harvard Business Study gave us a grant that allowed level is high and if they observe an employee with something us to complete 11 murals last summer, which included our in their hands—like a broom— they consider that a threat first mural in western Canada (Calgary). We now have 17 because it’s perceived to be a weapon, which could explain murals total, and we have another 6-10 murals planned for the immediacy of the violence. this coming summer. As a result, we added a new portion to our training to emphasize if an employee is out doing daily or nightly CSD: Does the Harvard study only focus on the murals or duties and a robbery does occur, to immediately drop what they have in their hands, and put their hands up as one way the company’s overall crime prevention program? SS: The initial focus was on the StreetART Program, but to de-escalate the situation and signal compliance. it has since expanded to encompass our entire platform, including what our training looks like to what happens CSD: In 2016 Mac’s offered a free comic book about when an incident does occur. The behavioral team at fighting crime. What was the intention behind the comic Harvard is analyzing videos of incidents to determine sus- book and what results did you see? Any plans for more? SS: Captain Canuck is a very popular superhero in Canada. We are working with Crime Stoppers to develop a second edition of the “Captain Canuck meets Crime Stopper” comic book, which was a huge success last year. The purpose of the initiative was to generate awareness about the Crime Stoppers program into the many communities across Canada. Through our Mac’s locations, we provided 50 comic books in each one of our stores to promote the initiative, at no charge to our customers and within 2-3 days we were out of them.

Mac’s has a 24/7 Security Monitoring Room that has the ability to remotely dial into all its stores in Ontario and western Canada to view live real-time video and recover video when investigations develop. An upgrade to hi-definition IP cameras has resulted in higherresolution, quality images with which to better identify suspects. 64 Convenience Store Decisions

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CSD: Last year we spoke about Mac’s tobacco tracker that tracks cigarette cartons stolen from Mac’s c-stores. What results have you seen? SS: The Tobacco Tracker initiative continues to be a huge success for us at Mac’s, with a 100% success rate. Since the program’s inception in June 2014, we have had 25 robbery incidents where the tracker was deployed, with 37 suspects being arrested—resulting in full asset recoveries. CSD CStoreDecisions ecisions .com

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OPERATIONS

Bettering Your Bathrooms Get your loo in top shape with some helpful tips, and meet some of the c-stores already succeeding.

By Erin Rigik Del Conte, Senior Editor

NY C-STORE CHAIN WITH foodservice knows customers often judge the quality of your food by the cleanliness of the

store—including, or one might even say “especially,” the restrooms. To drive home a feeling of “sanitation” some c-stores are using airport style bathroom entrances without doors and touch-free fixtures, such as sinks, soap and towel dispensers, and hand dryers.

CLEANEST RESTROOMS OUT OF 526,702 TOTAL restroom ratings using GasBuddy’s mobile app, the following brands were ranked the best for a pit stop by millions of GasBuddy app users: 1. Kwik Trip 2. QuikTrip 3. Hy-Vee 4. AAFES (Army & Air Force Exchange Service) 5. Sheetz Source: GasBuddy, March, 2017

RESTROOMS DRIVE VISITS

Consulting asked customers,“What was the reason for your last visit to a convenience store?” as part of its 2016 C-Store Customer Survey. • 18% of customers said “to use the restroom.” • 3% of customers who went to a c-store specifically to purchase prepared food, also stopped to use the restroom.

RESTROOM PAIN POINTS The “2016 Healthy Hand Washing Survey,” by restroom fixture manufacturer Bradley Corp. revealed restroom pain points. Here are the top six: 1. Americans take cell phone breaks in restroom stalls—not a sanitary practice. 2. Individuals have an aversion to touching certain restroom surfaces. 3. They use their bodies to avoid touching germs, i.e. flushing with their foot, or using a paper towel when handling doors or faucets. 4. Most find certain restroom problems more aggravating than others.The most aggravating restroom situation is empty or jammed toilet paper dispensers. 5. Consumers think poorly of businesses with dirty restrooms. 6. They report having more negative restroom experiences lately: almost 70% had had an unpleasant experience due to the conditions in a public restroom—up from 51% in 2012.

CLEANLINESS MATTERS

86%

of U.S. adults equate the cleanliness of a restaurant’s restroom with the cleanliness of its kitchen, according to a 2010 Harris Poll survey. What’s more, 75% of U.S. adults would not return to a restaurant with dirty restrooms.

BEST PRACTICES FOR RESTROOM CLEANLINESS

1. Develop a restroom maintenance program. 2. Frequent attention is key. In addition to daily cleaning, assign specific employees to spot clean the restroom frequently. 3. Equip staff with the right tools and chemicals. 4. Deep clean restrooms on a routine basis. Many businesses only perform a spot and daily clean; a deep clean that includes all walls and surfaces on a routine basis is essential. 5. Need help? Partner with a facility services provider that can develop a customized program to meet your specific needs.

BUC-EE’S BATHROOMS

When Bon Appétit magazine named Buc-ee’s the “Best Rest Stop in America,” in September 2016, among the attributes it listed that made Buc-ee’s, which has 37 locations in Texas, stand out was “the bathrooms are clean.” Buc-ee’s is well-known for its clean restrooms. In 2012, its New Braunfels, Texas location with 83 toilets won Cintas’“America’s Best Restroom” contest.

Source: Cintas Corp. CStoreDecisions ecisions .com

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OPERATIONS

Transitioning to

Next-Generation Leadership Thinking about a change in leadership can be intimidating, but planning ahead can save your business from turmoil should the unexpected occur. By Erin Rigik Del Conte, Senior Editor

HEN PREPARING NEXT-GENERATION LEADERS work’ also helped us focus on the within a convenience store company, the process future and others just as we needed of transitioning leadership can be challenging at to. The business challenges focused best—especially when it’s a family-owned busi- around assuring employees, suppliness. Savvy retailers are planning ahead so that they are ers and creditors that the company prepared when the time comes. Sonja Yates Hubbard, CEO would remain an ongoing operation. of E-Z Mart convenience stores, with 285 stores in Arkansas, Then we had to make sure it did. The transition went well because Louisiana, Oklahoma and Texas, has experience on both sides of the equation—in taking over a company from her everyone was committed to the same ultimate goal of perpetuating and father and planning for a future leadership changeover. CSD spoke with Hubbard recently to get her insights on growing E-Z Mart. It did take lonSonja Hubbard has ger and more mistakes were made learned many lessons how to prepare for a switch in leadership. than if we’d have had a completely about transferring Convenience Store Decisions (CSD): You took over as CEO of thought out and documented transi- leadership during her E-Z Mart after your father, Jim Yates, died suddenly in 1998. At tion plan, but then we also learned a tenure at E-Z Mart. the time, there wasn’t a complete transition plan in place. What lot more along the way that I hope were the challenges of this sudden/unexpected transition and benefits us even today. how did the transition play out? Sonja Hubbard (SH): : Without a formal transition plan in CSD: You have called the transition to next-generation place, and to some extent, even if one had been, the biggest leadership “the evolution of influence,” can you elaborate challenge was emotional. Myself, family and staff were in on what you mean? shock, mourning and yet had to carry on. It’s hard not to be SH: ‘Evolution of Influence’ was a tongue in cheek term I distracted during times of crisis, but the focus on ‘necessary tossed out to make ‘Transitioning of Leadership’ a less scary and intimidating phrase. It is funny how inherently resistant to change most people are. I guess it is the unknown, which is why planning is important and even necessary. Evolution is change, a slow and steady adaptation to the environment and hopefully improvement. Leadership is • It’s normal to want to resist change. influence. Influence in the form of communicating, inspir• Plan ahead so you’re not caught in an unexpected ing and encouraging people to act; and influence in the transition. form of tactical and strategic business plans and ideas. So, • If individuals will be moving into new roles when the the ‘evolution of influence’ is simply planning for that next transition occurs, prepare them so they are ready when phase, that next leader. the time comes.

POWER TRANSITIONING TIPS

• Be transparent about your plans to put employees at ease. • Remember leadership styles differ and the next-generation leader won’t always make the same decisions as the leader before them.

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CSD: At last year’s National Advisory Group (NAG) conference, you noted there are three ways to transition a company: suddenly/unexpectedly, strategically and a planned transition. What are the differences between the CStoreDecisions ecisions .com

3/27/17 9:21 AM

OPERATIONS last two models? Do you feel one is more successful or does it depend on the company? SH: Sudden and unexpected leadership transitioning is pretty self-explanatory and generally indicates little or no transition plan. Strategic transitioning would imply a plan that has been thought out at a high level with planning given as to the specific qualities and skills needed for future leaders, the organizational structure desired and other components of the broad view for what the next phase of leadership should be to maintain or even transition the company. Finally, planned transitioning takes that a step further and gets it out of the clouds and into the business. It is an actionable plan of the developed strategy that names individuals or positions to fill specific roles during this transition. This plan should also be open, shared and communicated to the extent it makes good business sense. If the individuals expected to move into new roles are not prepared both professionally and mentally or employees are not ready to embrace the change then the shock of the unknown could be the equivalent of an ‘unexpected transition.’ Effective leadership transition plans should ‘planned.’

CSD: How are you preparing for the next transition in leadership when you eventually retire as CEO? SH: We are at a place between ‘strategic’ and ‘planned’ with differing plans for a crisis or more unplanned departure than there would be down the road under a retirement scenario. We have do have a ‘planned transition’ action plan that would effect change in the near future and are more at the ‘strategic’ phase for the future with ongoing discussions. CSD: What advice do you have for other retailers on planning ahead for a leadership transition to the next generation? SH: Do it. Planning for our own departure isn’t something we like to think about but that transition is inevitable and for most leaders actually hard earned. Time spent planning also seems to get in the way of real day to day work and operations, but the reality is that it could be one of the best investments made for your convenience store business’ future. It could mean that the company not just survives, but thrives with the next generation and beyond. CSD

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CStoreDecisions ecisions .com

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3/27/17 9:22 AM

NEWSTUFF Creations & Innovations to Convenience Products and Services

CORONA EXTRA LIMITED EDITION SUMMER CAN

GOURMET OLIVES Gaea Gourmet Olives are the newest innovation from Gaea. They are handpicked from cultivated trees, offered in green and Kalamata varieties, in a super-mammoth size (famous for being plump and fleshy) and marinated in Gaea Extra Virgin Olive Oil and herbs. They are packed in a protected atmosphere—resealable, liquid-free packaging that keeps the olives fresh and full of authentic Greek flavors—with window-view packaging that allows consumers to see exactly what they are purchasing. Available in two varieties: Green (marinated with garlic, orange peel, red bell pepper, basil, coriander, lemon, extra virgin olive oil or EVOO); and Kalamata (marinated with oregano, thyme, Florina pepper, orange peel, EVOO). SRP: $4.99

For More Information From Gaea North America (954) 923-7723 www.gaeaus.com

TWINKIES CAPPUCCINO

For More Information From Corona (800) 949-7837 www.coronaextrausa.com

NEW MILKSHAKE FLAVOR F’real Foods is introducing a new limited time offering: Red Velvet Milkshake. Decadent chocolate mixed with rich cream cheese frosting makes this milkshake a luxury for customers’ taste buds. And they deserve luxury, my friend. Oh, yes they do. The Red Velvet Milkshake is available for order now.

For More Information From F’real Foods (877) 367-7325 customersupport@freal.com

Hostess Brands, in partnership with Kerry Convenience, has launched Twinkies Cappuccino, available now for the c-store channel. The parties have entered a license agreement through which Kerry will manufacture and distribute the new products under the Hostess brand. Inspired by Hostess’ classic Twinkie, the delicious cappuccino beverage combines creamy milk, sponge cake flavor and a hint of coffee for a delightful twist on this all-time favorite. It is available now at Sheetz, and will be available in convenience stores nationwide in the coming weeks. This first-time entry for Hostess into the hot dispensed category closely follows on the launch of Deep Fried Twinkies and the release of several Hostess ice cream products, both of which were also new categories for the brand.

For More information From Hostess Brands LLC www.hostesscakes.com

www.freal.com

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April 2017

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FULL-FLAVORED LIGHT BEER HEINEKEN USA has introduced Amstel Xlight, available March 1 in Arizona, Texas, and Boston. With only 90 calories, two grams of carbs, 4.2% ABV, and four IBUs, Amstel Xlight sets the new standard for a sessionable, premium quality light beer with a full-beer flavor you wouldn’t expect from a light beer. For domestic light beer drinkers looking for a crisp, low calorie and low carb beer, Amstel Xlight offers an upgrade by delivering a premium imported beer taste for an active, balanced lifestyle. The new product will be available in six-pack bottles, 12-pack cans and bottles, and a 24-ounce, single-serve can. The three-market launch of Amstel Xlight will be supported with a fullyintegrated marketing program to drive consumer awareness and trial and generate store traffic. Consumer sampling, participation in active lifestyle events, and alignment with key influencers, will give consumers their first taste of Amstel Xlight. At retail, impactful merchandising will provide instore visibility with display, shelf, and cooler materials to promote planned, impulse and repeat purchase.

For More Information From HEINEKEN USA (800) 358-8100 www.heinekenusa.com

SPECIALTY SNACK PACKS Yumami Food Co. is shaking up the healthy snack category with its new line of Go-Dip snacks that offer American-grown, bean-based dips paired with nori rice chips popped in Brooklyn, N.Y. Launching first in over 30 Whole Foods Market stores in the Northeast as well as Cibo Express locations in the three New York metro airports, Yumami will bring modern Asian flavors from the dinner menu to grab-n-go snack packs. Yumami Go-Dips are available in four sophisticated and authentic Asian flavor profiles: Adzuki Bean with Ginger and Ponzu, Black Bean with Yuzu and Chili, Edamame with Green Pea and Wasabi, and Lentil with Roasted Onion and Shiitake. Each savory, grab-n-go snack also includes a handful of Yumami’s signature Popped Nori Chips, which are prepared with only seven simple ingredients including superfoods: chia, flax, and quinoa. Popped Nori Chips are also currently available in single servebags. The products are all non-GMO, gluten-free, vegan, nut free, dairy free, with no sugar added and certified Kosher. All four Go-Dip varieties are good sources of dietary fiber and protein stemming from the inclusion of adzuki beans, edamame, black beans and lentils. SRP: $4.99.

For More Information From Yumami Food Co. (954) 923-7723

ENERGY BOMBS GUM Customers can kick their energy and focus into high gear with new Spearmint-flavor Energy Bombs Chewing Gum. Energy Bombs Gum is the ideal alternative to liquid caffeinated products—no more carrying endless cups of coffee or spilling energy shots everywhere; no need to make multiple stops on a long road trip. At only five calories per serving with 40 milligrams of caffeine, one piece of Energy Bombs Chewing Gum provides the same amount of caffeine as a half-cup of the leading eight-ounce energy drink. Now available in three delicious flavors—NEW Spearmint, Cinnamon and Blue Rush Mint, it quickly absorbs in the body, and also contains essential vitamins including Vitamin B12, Vitamin B6, and Taurine to keep people powered up. Energy Bombs Chewing Gum (SRP $2.99 per 10 piece pack) is available at convenience stores across the U.S.

For More Information From Energy Bombs www.energy-bombs.com

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www.yumamifood.com

CLEVER LID DISPENSER

Vollrath Co.’s LidSaver 2 delivers savings, convenience and improved hygiene by simply dispensing a single clean lid when you open its door. The LidSaver 2 dispenses more kinds of lids than any other single lid dispenser and eliminates the messy, unsanitary and wasteful pile of lids that you often see at quick-serve operations. A simpleto-use design allows customers to fill beverages and put on lids using only one hand. Each LidSaver 2 holds approximately a full sleeve of lids making frequent restocking unnecessary. LidSaver 2 can be field converted from the factory calibration to just about any size or type in a matter of minutes. Its high-tech appearance can add to the aesthetics of any presentation.

For More Information From Vollrath Co. www.vollrath.com April 2017

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3/25/17 7:39 AM

NEWSTUFF Creations & Innovations to Convenience Products and Services

ORGANIC POPCORN CITRUS Americans are prioritizing both VARIETY PACK More health and taste when reaching for Shock Top is shakin’ things up this year starting with the brand’s first ever refresh or “full bottle” makeover. The new look and feel will still embody the vibrant, carefree spirit that is authentic to Shock Top, but with a fresh, youthful optimism and spirited energy. As part of the rollout, Shock Top will be launching a new campaign, featuring its new tagline, “Cheers to What’s Ahead,” and will introduce new SKUs throughout the year, each packed with tons of delicious citrus and creative, unexpected flavors. To kick things off, Shock Top is rolling out its new Spring Citrus Variety Pack starting today. Flavors include Holy Citrus, Ruby Fresh, Lemon Shandy and Belgian White.

For More information From Shock Top www.shocktopbeer.com

DONUT BREAKFAST SANDWICH Land Mark Products’ Day’n Night Bites, a provider of pizza and sandwiches to the convenience store industry, has introduced the successful fusion of two American breakfasts: “Eggs’n Sausage” and “Donuts.” They’re not joking. Again (just to prove this is no typo) Day’n Night Bites created a single breakfast sandwich by combining real eggs, savory sausage and mmm-melty cheese with a…cake donut. The Donut sandwich was sampled at the world-famous National Association of Convenience Stores (NACS) Show last October to rave reviews. Currently,The Donut sandwich is being rolled out at savvy and smart convenience stores nationwide. Distributors are welcome to contact Day’n Night Bites directly.

For More Information From Land Mark Products (800) 338-4340 info@boyds.com https://youtu.be/K3w88YBuHdI

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snacks, according to research by Mintel, and G.H. Cretors’ Popped Corn has a delicious answer in its three new organic varieties of its handcrafted popcorn: Organic White Cheddar, Organic Honey Butter Kettlecorn and Organic Salted Butter. All three of G.H. Cretors’ new varieties debuted at the Natural Products Expo West. G.H. Cretors Organic White Cheddar, Organic Honey Butter Kettlecorn and Organic Salted Butter popcorn will be available in retailers nationwide this summer and are welcomed additions to the brand’s creative and bold family of flavors.

For More Information From G.H. Cretors www.ghcretors.com

ALL-IN-ONE DESSERT Carpigiani, a global innovator of frozen dessert equipment, showcased the all-in-one versatile batch freezer, the READY, at the NAFEM Show earlier this month. READY by Carpigiani is the perfect application for a coffee bar, pizzeria, pastry shop, bakery, quick-serve restaurant or gelateria. READY technology completes the full frozen-dessert production process in just one machine, saving capital that might be spent on numerous machines. READY is a synthesis of Carpigiani technology by processing both hot and cold mixtures to create fresh, quality artisan gelato or premium ice cream. This unique machine is capable of mixing, heating and freezing all in the same cylinder. For liquid mixtures both fresh and long life, the READY features three automatic programs: soft and creamy milk-based gelato, cool water-based fruit sorbets, perfect fruit slushes and Italian ice.

For More Information From Carpigiani www.carpigiani.com/usa

CStoreDecisions ecisions .com

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SANDWICH PREP UNITS

HEATED SHELF MERCHANDISERS Alto-Shaam’s newest merchandiser product line now includes individually-controlled heated shelves that keep food warm for hours at the highest level of quality. Featuring exclusive Halo Heat fanless technology for precise, even temperature, these merchandisers hold a variety of grab-and-go products, including rotisserie chickens, pizza, sandwiches and more. Convenient, fresh meals are displayed to sell to customers in the aesthetically pleasing and customizable merchandiser. The customizable banner (available through Alto-Shaam’s third-party supplier) can enhance a company’s brand image while the shelves include LED lights to draw attention to the food. Countertop models are available in 24-inch and 36-inch widths. Floor-standing units are offered in widths of 24, 36 and 48 inches. The merchandisers can be purchased separately or as part of a full system package to cook, hold and merchandise rotisserie chickens, pizzas, sandwiches and more. Available now, the heated shelf merchandisers began shipping in mid-March.

Nor-Lake introduced the enhanced AdvantEDGE NLSP-A sandwich/ salad prep units at the NAFEM Show in February. The NLSP-A series is designed to optimize space and function while providing ample food preparation space for operators. The NLSP-A series features a new front-breathing design that allows for zero-clearance installation on both the sides and back of the unit. The standard condenser filter screen is easily removed without tools for easy condenser coil cleaning. Users easily remove the screen, rinse with water and replace. The mesh screen filters incoming air to ensure the condenser coil is free of dirt and debris, extending the life of the unit and increasing efficiency. Fans inside the unit’s drop-in section force cold air into the enclosed area keeping stored food items consistently cold. The stainless steel divider prevents food from spilling into the storage area while the locking adapter bars hold pans in place. The NLSP-A series’ drop-in section is designed to accommodate standard 1/6 size drop-in pans.

For More Information From Alto-Shaam

For More Information From Nor-Lake

www.alto-shaam.com

UNDERCOUNTER REFRIGERATORS Master-Bilt introduced the enhanced Fusion Series MBURG-A glass door undercounter/worktable refrigerators at the NAFEM Show in February. The glass door undercounter/worktable line offers a new design to capitalize on available workspace, energy efficiency and stress-free maintenance. The new glass door undercounter/worktable refrigerators are equipped with dual pane self-closing glass doors featuring a full-length handle for functionality and visibility. The series includes five models that offer one, two or three doors providing operators with options designed to meet their unique needs and space requirements. The MBURG-A series features a condenser coil filter screen that is easily removed without tools for easy condenser coil cleaning. Users simply pull the screen out, rinse with water and replace. The mesh screen filters incoming air to ensure the condenser coil is free of dirt and debris, extending the life of the unit and increasing efficiency. The undercounter/worktable’s front-breathing design allows for zero-clearance installation on sides, back and top.

For More Information From Master-Bilt Teresa Todd, (800) 647-1284, ext. 4236 ttodd@master-bilt.com CStoreDecisions ecisions .com

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www.norlake.com

‘CLICK AND VAPE’ TECHNOLOGY E-Alternative Solutions (EAS), a sister company to Swisher International, has launched a national advertising campaign for the patent-pending Cue Vapor System. Cue is vaping made simple, providing fulfilling satisfaction in a premium-performance, stylish device that any adult smoker can operate with just the click of a cartridge and the push of a button. The closed system enables consumers to sidestep the complicated, and sometimes messy, process of using typical vaping devices. Cue Vapor System currently comes in four flavor categories—tobaccos, mints, desserts and fruits—in pre-assembled, disposable cartridges that easily click into the Cue device and are available in three nicotine levels (zero, three or six milligrams). Cue devices are smaller and lighter than a smartphone and come in a variety of vibrant colors. Cue uses a unique sub-ohm vaporization technology. Unlike most traditional e-cigarettes that have a resistance of approximately 1.5 to 2.8 ohms, Cue’s vaping system has a total measurable resistance that is less than 1.0 ohm. Lower resistance means more vapor production, which translates to more flavor and more satisfaction.

For More Information From E-Alternative Solutions LLC www.cuevapor.com or www.ealternativesolutions.com April 2017

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Altria Group Distribution Co. ...............2 www.tobaccoissues.com

Apter Industries ..........................11 800.441.7146 / www.apterindustries.com

Axis Communications ......................61 www.axis.com/small-systems

Brakebush ................................43

Gulfcoast Software Solutions, Inc. .......3

NRF Protect .....................................12

Home Market Foods ........................37

Phillips 66 ...................................55

727.449.2296 / www.gulfcoastsoftware.com www.RollerBites.com

Hoshizaki ...................................35

www.hoshizakiamerica.com

ICEE ...............................................47

800.933.2121 / www.brakebush.com

800.423.3872 / www.icee.com

Calico Brands ..................................13

Kretek ........................................9

800.544.4837 / www.calicobrands.com

Cash Depot ....................................44

www.djarumcigar.com

Krispy Krunchy ........................25, 45

800.776.8834 / www.cdlatm.com

800.290.6097 / www.krispykrunchy.com

CB Distributors .................................31

KT&G ........................................17, 19

888.824.3256 / www.cbdistributorsinc.com

www.ktngusa.com

Coca-Cola .........................................7

Mason Ways ....................................73

Crown Imports ...............................15

McLane Company ...............................5

E-Alternative Solutions ................50-51

M-PACT 2017 ...................................63

Giant Snacks ...............................21

North American Bancard .....................72

www.CokeSolutions.com/retail www.crownimportsllc.com

800.628.4675 / www.cuevapor.com/business 877.442.6870 / www.giantsnacks.com

Trash • Recycle Bins

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800.837.2881 / www.masonways.com www.mclaneco.com/goto/produce www.M-PACT.org

866.481.4604 / www.nynab.com

Dunnage Racks

Storage • Display Bases

Waste • Windshield Centers

www.nrfprotect.com

844.736.8427 www.Enhance.Phillips66gas.com

R.J. Reynolds ......................................75

www.EngageTradePartners.com

ClassifiedAds

ADVERTISER INDEX

Southwest Fuel & Convenience Expo ...67 www.sw-expo.com

Subway ......................................40

203.877.4281 / www.subway.com

Swedish Match .....................22-23, 53 www.swedishmatch.com

Swisher International .......................76 800.874.9720 / www.swishersweets.com

Texas Pete ...................................27 336.661.1550 www.TexasPeteFoodservice.com

Tillamook Country Smoker .................49 800.325.2220 / www.tcsjerky.com

Tyson ..............................................41 www.tysonconvenience.com

Stair Steps

Merchandisers

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3/27/17 9:06 AM

INDUSTRYPERSPECTIVES

Knowing How to Apply Training Triage Some individuals entering the convenience industry lack certain educational skills. As a result, worker training must be shaped to address such deficiencies. By Fran Duskiewicz

HERE’S A REAL, PRACTICAL reason I was hired by reading skills have greatly diminished. Many college John MacDougall, founder of Nice N Easy Grocery students now must take remedial courses to even have a Shoppes, which launched my long career with shot at continuing with their coursework. Many of these same individuals are entering the the company: I was an English teacher who had workforce and are working in the convenience industry. handled accounting for a family business. Apparently, that was an attractive combination for A portion, however, don’t read or speak English that someone who was looking to create a full-blown training well. This is problematic as our industry becomes more program for his new convenience chain with a fledgling sophisticated, with many more critical functions that must be mastered. franchise division. I know there are many companies out there doing a During my first 10 years at Nice N Easy, I created and executed training—both written and in the classroom—for fine job with training. They couldn’t be as successful as new employees, new managers, experienced managers they are if they were not. And I’m sure there are many and district managers. I believe that the concentrated examples of how they’re getting it done. Still, I believe, based on my own experience as a push of training at all levels, comprising all necessary skills, shopper, that training in all areas of retail is lacking, most played a major role in the success of our company. In the mid-1990’s, I was asked to create a computer- of it caused by not understanding how people learn and based training program. We had done much research how they might learn differently from each other. Some and found that, while consultants could create fancy will understand by reading your written materials; others graphics and pretty screen shots, their product, as a by watching and observing. With so many new employees entering a company’s means of training, was sub-par. If you don’t understand how people learn, no amount of whiz-bang screen workforce at so many varied educational levels, and conwizardry will hide that. So, I wrote a complete computer- sidering that there are so many different ways in which based training program—possibly the first in our industry. they learn, how can one-size, fit-all training program work? It worked out because as a teacher, I could write well, It can’t. I go back to my corrective reading days and the and I knew the subject matter. I also knew how to target specific reading levels. I chose a reading level akin to an California Reading Test that helped educators determine 8th grade level and it worked. It seemed logical since I learning deficiencies. Adapting the same mindset to your had previously worked in a corrective reading program company’s curriculum, which might be coined ‘training triage,’ we must identify how best to train our people for 7th and 8th graders for many years. We gave all middle school students the California and what methodology is most effective. If it needs to be Reading Test at the beginning of each school year. bilingual, so be it. Or maybe show and do is the best route. If you are currently using a computer-based training Test results not only provided the grade level at which each student could read, but also in which skills they product, make sure that as the training manager, you’re might be weak—maybe following directions or basic comfortable with the readability of the material. There comprehension. We then brought them in for specialized are programs that will do it for you. It will enable you to tutoring in those problem areas, retested and set them maintain an adequate level of comprehension among your employees. In addition, I recommend not going free if they improved. more than three instruction screens without asking a Almost all improved. question, to ensure they understand. It’s sad to think that so many are exiting the U.S. ADAPTING TO THE WORKPLACE I believe in the subsequent years since my training educational system so ill-prepared, but that’s the hand days, general education in the U.S. has regressed, while we’ve been dealt and we need to respond properly. 74 Convenience Store Decisions

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April 2017

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3/25/17 7:40 AM

DELIVERING RESULTS

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CIGARETTES, SNUS, MOIST SNUFF

3/23/17 2:39 PM

Tangy sweetness has never tasted so good. Customers will go mad for Swisher Sweetsâ&#x20AC;&#x2122; smoothest and sweetest blend yet, with the popular pricing options of 2 for 99Â˘, Save on 2 and 2 for $1.49 pouches. swishersweets.com 800.874.9720

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3/23/17 2:44 PM